Monday, October 15, 2007

Fargo Economic Forum: Economic Insights: Banking On Our Entrepreneurial Spirit

The Midwest has always been a place of self-reliant people, pioneers who overcame all kinds of hardships and challenges through their own devices, pull-yourself-up-by-your-own-bootstraps kinds of people.

Over the years, a sort of natural selection made sure of that; anyone who couldn’t make a go of it didn’t last. “Can’t” was a dirty word for those who did and, for the most part, we’ve inherited their outlook and drive.

But we aren’t just survivors; we’re inventors, leaders and, when necessary, risk takers. From the beginning, we have controlled our own destinies and taken initiative to make our situations better. We’ve known all along no one was going to do it for us.

When you get right down to it, we’re entrepreneurs. As we work to design an advanced economy, we’re banking on it.

Regular readers of this column know the GFMEDC and our many partners are engaged in a strategic planning process to develop a technology-based economy for Greater Fargo Moorhead. Short term, the goal is to enhance infrastructure in a variety of areas – technology, education, transportation, telecommunications and others – to make Greater Fargo Moorhead more attractive to high-tech companies and more competitive in the global economy.

I’ve discussed the metaphorical three-legged stool that supports economic development in this space before. The three legs are creation, expansion and recruitment. Building a healthy economy requires the retention and growth of existing companies, attraction of new companies from outside the community, and entrepreneurism, or the formation of start-up ventures. That’s been true for years, and remains so in today’s global, technology-based economy.

I’ve also discussed the phenomenon of strategic convergence in economic development. Strategies that attract outside companies also enhance potential for existing business expansion and entrepreneurism. So, as we make Greater Fargo Moorhead more attractive to outside businesses, we also make it more fertile ground for entrepreneurs.

Long-term, that’s the real goal. Greater Fargo Moorhead needs to be a place where high-tech entrepreneurs can turn ideas into marketable products and services and go on to found enterprises that contribute to our local, regional and state economies.

This is important for a couple of reasons. First, attracting outside companies and their leaders is a hit and miss proposition. Greater Fargo Moorhead is only one of many blips on their radar screens. Second, the best, longest lasting and most profitable economic development is homegrown, initiated by someone who believes in and has a vested interest in the community.

We are fortunate to have Tony Grindberg, executive director of the NDSU Research & Technology Park (RTP), chairing our Entrepreneurism Working Group. He leads a team that is developing recommendations for how Greater Fargo Moorhead can make itself more fertile ground for entrepreneurs and converting their talents and ideas into viable businesses.

The working group is discussing issues such as technological and telecommunications infrastructure; improving access to capital; the role of the Center for Technology Enterprise (CTE), the high-tech business incubator at the RTP; improving programs and offerings in key science disciplines at our local universities; enhancing government-university-private sector collaboration; and others.

Fortunately, we already have a great start. The CTE is an excellent example. The facility already has two exceptional anchor tenants, and the goal is for it to house eight to 10 new high-tech start-ups on an annual basis.

In August, the U.S. Department of Commerce, Economic Development Administration presented the RTP its Award for Excellence in Technology-Led Economic Development. The RTP was selected from among 20 finalists from across the nation, and the CTE was a major reason.

The Excellence in Economic Development awards recognize innovative economic development strategies of national significance and are designed to showcase best practices and highlight outstanding results. The EDA evaluated nominees based on how effectively they support technology-led economic development and reflect the important role of linking universities, industries and technology transfers.

I congratulate Tony, NDSU President Joseph Chapman and their teams. They deserve the majority of credit, not only for the EDA honor but for their leadership in developing our potential for technology-based entrepreneurism.

The award is only the culmination of a vision, one that incorporates Greater Fargo Moorhead’s intellect, work ethic and self reliance. Someone – or in this case, many someones – turned that vision into a reality that continues to improve.

So here we are, discussing more ways to create more visions, to enable more individuals with good ideas to influence our economic future. And “can’t” still isn’t part of our lexicon.

Walters is the president of the Greater Fargo Moorhead Economic Development Corporation. He can be reached at 701-364-1900 or bwalters@fmedc.com.

Fargo Economic Development; Economic Insights: We’re Going to Have to Pay to Play

My father used to say you have to invest money to make money. Put another way, you have to pay to play.

In economic and workforce development, Greater Fargo Moorhead is capable of becoming a global player. To become one, we are going to have to invest in improvements attractive to businesses that will drive our country’s future prosperity. How we make those investments remains to be seen.

A few weeks ago, a front page headline in The Forum proclaimed, “Half-cent sales tax on priority list.” The story discussed the possibility of Cass and Clay counties implementing a half-cent sales tax to fund economic development initiatives. The story was accurate in terms of the discussions that are taking place regarding how to fund economic development initiatives, but it was somewhat premature.

The Greater Fargo Moorhead Economic Development Corporation (GFMEDC) is engaged, with business, education and civic leaders, in a community strategic planning process. The goal is to transition to a stronger, tech-based economy.

We are now competing in national and global economies where, beginning today and into coming decades, businesses in high-tech sectors will create the majority of high-paying jobs. We want to make certain Greater Fargo Moorhead is well positioned to participate.

I’ve made the case numerous times in this space for the need to improve our business, education and communication infrastructures. Greater Fargo Moorhead needs to stay ahead of competing communities, or at least keep pace with them, or our population and job growth will slow dramatically; good, high-paying jobs will become even harder to come by; and we will be in an even weaker position for retaining our young people and attracting professionals from outside the region.

The community strategic planning process is ongoing. Good, workable ideas are evolving objectives supported by action plans. As we’ve have progressed, it’s become clear that it will cost money to make the necessary infrastructure improvements. There is just no way around that.

Naturally, then, recent discussions have included possible funding mechanisms. These are appropriate conversations, not only for an economic development entity such as the GFMEDC, but also for business, education and government leaders who have a stake in our collective future. We absolutely should be talking about improving our communities’ economy and what needs to happen to make it happen. If we weren’t having these conversations, we wouldn’t be doing our jobs.

Most communities, and certainly those we now compete with, fund economic and workforce development initiatives through sales tax, property tax, incentives from their states or a combination of all three.

With that said, I want to make it clear that no decisions have been made, by the GFMEDC Board of Directors or anyone else. We have a long way to go before we determine what will be the most effective way to fund the infrastructure improvements we need to become a hub of high-tech business. A sales tax is just one is one of several options we have an obligation to consider.

The GFMEDC and our partners take seriously our responsibility for creating good, high-paying jobs and positioning our communities for future prosperity. The results we desire won’t come about without focused and deliberate efforts that include discussions regarding funding.

It would be a wonderful political world if we could promise continuing prosperity at no cost. Unfortunately, that would be a fantasy world.

The high-tech economic development game is anything but a game, and communities have to pay to play. The stakes are high, with future economic health and prosperity of both citizens and communities hanging in the balance.

This won’t happen overnight. Re-engineering an economy is a long-term process that takes years of planning, guidance and execution. Fortunately, we have a great start. Once we’ve determined exactly what needs to be done, next steps will include figuring out the best way to pay for it.

All of this is about creating opportunities in Greater Fargo Moorhead for our children and grandchildren. In my judgment, those are priorities worth investing in.

Walters is the president of the Greater Fargo Moorhead Economic Development Corporation. He can be reached at 701.364.1900 or bwalters@fmedc.com.

Fargo Economic Forum: Economic Insights: Getting Our Universities Connected

In the global business environment, telecommunications infrastructure isn’t just an afterthought, it is fundamental. So much so, in fact, that the GFMEDC’s community strategic planning initiative has identified telecommunications infrastructure as one of the five building blocks that Fargo Moorhead must develop to transition to a technology-based economy.

Today there are two different forms of telecom infrastructure that we need to distinguish. The first is telecom build out within the community. This type of infrastructure allows us to get internet access in our homes and businesses, and is delivered by local providers like IdeaOne, Qwest and others. The other form of telecom infrastructure is an advanced fiber optical backbone that is capable of transporting huge amounts of data efficiently and cost-effectively, and is available only to research universities, federal research laboratories and their partners.

Right now, this advanced broadband information services network connects research and educational institutions across the United States – except, unfortunately, North Dakota and a handful of other states in the upper Great Plains and Northwest. That’s why North Dakota and Minnesota have partnered with universities, federal research labs and network organizations to create the Northern Tier Network Consortium, whose mission is to bring the next generation of connectivity to this area. Since the consortium’s inception, advanced fiber optic connectivity has spread and the original gap between Chicago and Seattle has been shortened to the distance between Minneapolis and Billings, Mont.

Fargo-Moorhead needs its local universities – North Dakota State University (NDSU), Minnesota State University Moorhead (MSUM) and Concordia College – on the Northern Tier map. Being connected to institutions around the country will empower our universities to participate in world-class collaborative research and will empower our community to participate more profoundly in the nation’s technology economy.

I have commented on the marriage of higher education, research, and the private sector in this column in the past. Technology companies choose their locations based on access to talent, intellectual capacity and intellectual infrastructure. This means hiring world-renowned scientists and researchers and recruiting the best and brightest students to our universities. These are the elements that growing technology companies demand in a business location.

Bonnie Neas is the Associate Vice President of Federal Government Relations and Director of the Center for High Performance Computing at NDSU. She is currently on sabbatical to lead the North Dakota University System’s ConnectND project and also devotes a great deal of her work to the Northern Tier consortium. She sums up the importance of Northern Tier’s mission well. “This type of networking is becoming a requirement for our scientists to compete successfully for federal grants. It is a resource to support collaborations between educational institutions, and between research universities and their private sector partners in developing new technologies and products. Last, but not least, this capability is needed for us to be able to recruit students and recruit and retain top research faculty. It is an economic driver.”

Neas is currently working with officials from a number of states to connect Fargo Moorhead to the University of Minnesota-Twin Cities on the east, and the University of Montana at the Montana border on the west. This means securing money for equipment, implementation and recurring costs. It is no small task. Neas works tirelessly and deserves much credit.

U.S. Senator Byron Dorgan also deserves big thanks for securing $3.25 million of federal money to begin the implementation of the network connecting NDSU and UND to the University of Minnesota. State funding has been requested from North Dakota to complete the other Northern Tier Network segments within the state. Local leaders will continue to work with both states, Minnesota and North Dakota, to secure the operating funds needed to maintain the network.

When we successfully finish what Bonnie Neas, the Northern Tier Network Consortium, and Senator Dorgan started, we will be empowering our universities to collaborate and compete on the national level. The telecommunications infrastructure building block of our community strategic planning initiative will be in place and we will be further on our way to a technology economy.

Walters is the president of the Greater Fargo Moorhead Economic Development Corporation. He can be reached at 701-364-1900 or bwalters@gfmedc.com.

Fargo Economic Development; Aldevron Announces Expansion to Vaccine Testing Facility

Aldevron, LLC is expanding its Genetic Immunization and Antibody (GIA) facility to accommodate an increased volume of vaccine screening contracts. Aldevron’s proprietary GIA technology is used to make antibodies and to rapidly screen potential vaccine candidates via DNA-mediated immunization.

Research labs in over 20 countries worldwide utilize Aldevron’s technology for innovative disease research to develop vaccines for such targets as HIV, Influenza and cancer. An Aldevron milestone project was the production of the West Nile Virus DNA Vaccine used to immunize endangered species. This was the world’s first DNA vaccine to be used outside of a trial setting.

The current 3,500 square foot facility will grow to 6,500 square feet to house the GIA services. Although the facility will be filled to capacity immediately, Aldevron will be working with new contracts to schedule for openings beginning in the third quarter of 2006.

The unique design of Aldevron’s GIA™ facility combined with Aldevron’s proprietary gene delivery technology allows the company to rapidly screen a large number of vaccines in parallel. A support lab is also being constructed which will allow exploration of vaccine delivery methods.

“The growth of the GIA facility diversifies the services to our client base and reaches to new clients. It also enables Aldevron to capture both screening and production elements of vaccine testing,” states John Ballantyne, Chief Scientific Officer.

In 2005, Aldevron and its partners announced over $14 million in vaccine development contracts and grants. The GIA platform is being used for contracts with organizations such as the Department of Defense, HIVRAD, IAVI and USAMRID.

“This facility expansion will support the contracts we have received over the past year. The expansion will also allow us to increase our workforce,” says Aldevron’s CEO, Michael Chambers. “We would like to thank Senator Dorgan for setting up key meetings with scientists from NIH and the Department of Defense that have helped make this expansion possible.”

Founded in 1998, Aldevron provides products and services to academic, government, and industry biotechnology labs. Aldevron’s core services are production of plasmid DNA manufacturing and Genetic Immunization and Antibody production (GIA™). More information can be found at www.aldevron.com.

Fargo Economic Development; DakTech to Introduce Video Surveillance Solution

Pre-assembled, complete security solutions for schools and businesses

Fargo, ND—DakTech Computers Inc. is teaming up with Wren Associates, the leading supplier of video surveillance cameras, to deliver a turn-key video surveillance solution for small and medium businesses and schools.

DakTech Computers, a computer manufacturer with headquarters in Fargo, was founded in 1990 and serves business and educational markets in all 50 states. Wren is the security camera provider for global retailers that include Wal-Mart, Target and Walgreens.

DakTech and Hewlett-Packard are the only two computer brands that are certified to work as servers with Wren security solutions. DakTech earned the rare certification after successfully passing exhaustive testing and evaluation by Wren engineers.

Wren cameras carry a five-year warranty which is the longest in the video surveillance industry. DakTech’s seven-year warranty is the longest in the computer industry, according to Steve Shark, National Sales Director at DakTech.

“Wren is excited to partner with us,” said Shark, “since we both provide our respective industry’s longest warranties, as well as manufacture products that are made and supported in the USA.”

The DakTech/Wren security offering is based on business requirements and solves real-world application needs. The system is comprised of professional-grade, pre-configured security kits that are IP (Internet Protocol) based. The kits are flexible, scalable and cost-effective security solutions, designed to integrate easily with existing network environments. All products use MPEG4 compression and come with Wren’s browser-based network video recording software. The system records surveillance video, via the network, and provides instant remote access for viewing, recording and playback. Because the systems are IP based, remote access is available via any internet connection in the world. The kits come ready to be installed by the customer or by one of DakTech’s certified installers, available nationwide.

For more information about DakTech products, including the new video surveillance solution, contact Steve Shark, National Sales & Marketing Director, at 701.282.6686.

Fargo Economic Development; Chamber Announces Ten Top-Ranked Area Businesses

The Chamber of Commerce of Fargo Moorhead announced the names of the ten top-ranked area businesses at a reception sponsored and hosted by Wells Fargo Bank. The ten represent the top-ranked businesses in the Business of the Year, Small Business of the Year and Not-For Profit of the Year categories.

All ten companies will receive 2006 ChamberChoice Awards. The award recipients in each category also are finalists in the competition to be named the number-one, top-ranked business within that category.

The ChamberChoice Award recipients were selected from among 68 businesses nominated for the annual awards. Selections were made by a panel of independent judges from the Fargo Moorhead business community, who evaluated accomplishments in the areas of business growth, innovation, creativity, community involvement and unique achievements relating to a specific business or industry.

The name of the top-ranked business in each category will be announced at the Chamber’s Annual Awards Luncheon to be held on Wednesday, May 24, at the Holiday Inn of Fargo.
Business of the Year Category
2006 ChamberChoice
Award Recipients

Christianson’s Business Furniture Plus is a provider of efficient and ergonomic work environments with a commitment to quality, value and customer service. Christianson’s recently introduced “modular interior construction,” which is sustainable office furniture that can be moved, reconfigured or added on to without having to throw anything away and start over. To learn more, visit www.cbfplus.com.

Home Heating, Plumbing & A/C, Inc. is one of the leading and fastest growing mechanical contractors in the region. For more than 60 years, Home Heating has provided environmental equipment and systems that keep residential and commercial buildings warm, cool, healthy and safe. Visit Home Heating online at www.homehtg.com.

IdeaOne Telecom Group is a competitive local exchange carrier, offering state-of-the-art voice and data communication services with a wide variety of options and features for residential and commercial customers. IdeaOne provides these services through its own fiber optic and switch-based facilities. To learn more about the services offered by IdeaOne Telecom Group, visit www.ideaone.com.

Vogel Law Firm provides a breadth of services to businesses, including employment law, secured transactions, securities and franchising, corporate formation and counseling, intellectual property law, and mergers and acquisitions. With 41 lawyers on staff, the Vogel team is dedicated to providing prompt, personal attention; efficient, skilled representation; and sound, practical legal advice. Steady growth has made Vogel the largest law firm in northwestern Minnesota and North Dakota. Learn more at www.vogellaw.com.

Small Business of the Year Category 2006 ChamberChoice Award Recipients

Arrow Payroll Services, Inc. provides quality and confidential payroll services at a reasonable cost to its clients. Arrow is the exclusive licensee of Execupay Payroll Software in the Fargo Moorhead region. This software allows clients to transmit payroll data by fax, e-mail, phone or Internet from anywhere in the world. Read more about Arrow’s services at www.arrowpayroll.com.

Breadsmith is an artisan bread bakery. Breadsmith bread contains only the finest ingredients and has no preservatives or artificial flavorings. Breads are hand-mixed six days a week, started the evening before and come out of the oven just after midnight on the day they are to be sold. Breadsmith is continually introducing new breads and you can read about them at www.breadsmith.com.

ProSweep, Inc. provides comprehensive and efficient outside maintenance services tailored to retail, municipal and state operations. ProSweep removes sand and debris from parking lots and construction sites, and, with its pick-up sweepers, is able to clean entire city or state roadways. Recently, ProSweep built a three-broom sweeper with a variable width frame to speed up operations and increase safety. Learn more at www.prosweepinc.com.

Not-For-Profit of the Year Category 2006 ChamberChoice Award Recipients

CHARISM is a neighborhood-based family resource center serving the needs of at-risk and underserved families living in the McCormick Park and Stonebridge neighborhoods of South Fargo. The center’s mission is to create opportunities for individuals and families that increase their strengths and potential and build self-sufficiency. Learn more about the programs and services of CHARISM at www.charism.org.

F-M Ambulance Service has served Cass and Clay counties and the surrounding area for more than 40 years, providing emergency medical care and transport for the sick, injured and disabled; emergency medical education for all levels of health care providers and the public; and sales and service of medical products and safety equipment to the public, businesses and emergency medical service organizations. Visit F-M Ambulance Service online at www.fmambulance.com.

United Way of Cass-Clay’s primary purpose is creating lasting change within our community. The organization provides funding to health and human service programs that address the community’s most pressing issues and dedicates resources to initiatives that have been identified as community priorities. United Way researches the root causes of the problems that our citizens face and focuses its efforts on making measurable changes to those causes. Visit the United Way online at www.uwcc.net.

Fargo Economic Development; Brian Walters: Gearing Up For Our High-Tech Future

There’s good news, bad news and more good news for Greater Fargo Moorhead and our economic prosperity.

First, the good news.

Greater Fargo Moorhead is doing better than ever. We have an exceptional base in primary-sector industries that, over the past two decades, have made our economy strong. New and existing companies are creating jobs, our unemployment rate is consistently among the lowest in the country, retail sales are at all-time highs and incomes are rising.

Now the bad news.

Despite everything we’ve done, national experts project deceleration in population, job and income growth in the Fargo-Moorhead metropolitan statistical area (MSA) by the end of the decade. They categorize our economy as mature, meaning we lack a significant base of technology-oriented businesses that will create the majority of US jobs over the next ten years.

Three emerging sectors will be driving that growth: information technology, life sciences and physical sciences. We have started to build a modest base in related industries, thanks to the vision, hard work and cooperation of entrepreneurs, our elected officials and higher education and community leaders. Consider the development of the NDSU Research and Technology Park, the existence here of several high-tech companies, the selection of our community by Alien Technology and the fact that one of Microsoft’s largest campuses is here. All prove that high-tech companies can and do conduct profitable business in Greater Fargo Moorhead.

Even so, today the FM MSA does not compare favorably to other MSAs in most categories that high-tech companies consider when selecting locations. The FM MSA does not even appear in a ranking of the top 127 technology economies in the country.

Fortunately, there’s more good news: We can and are doing something about it.

The GFMEDC recently launched a strategic planning initiative to position our communities to compete for companies in emerging industries. The process includes working groups in the three targeted sectors, existing industries and entrepreneurship; a survey of business, community and education leaders; and meetings with economic development groups throughout Cass and Clay counties.

Each of the working groups will be composed of experts from the private sector, government and education who will closely examine opportunities and develop action plans for exploiting them. The survey will incorporate information and insights gathered through the working groups. It will help fill in the picture of our strengths and weaknesses, as well as opportunities we can pursue to enhance economic potential.

The outcome will be realistic objectives, strategies and tactics for achieving them, and recommendations for infrastructure improvements necessary to make it happen. We expect to present a completed plan to the public later this year.

As we move forward, we will continue to work as hard as we always have to support, strengthen and grow industries and companies that have built our economy.

Two months ago I dedicated this space to the fact that Greater Fargo Moorhead has moved up to a higher level of competition; we’re now up against bigger, better funded communities around the country and the world. We’re in the big game now, I wrote, and it’s time to suit up.

We have recruited big-time players who are putting together a strategic game plan. But it won’t mean a thing without action and that’s what this initiative is all about.

Walters is the president of the Greater Fargo Moorhead Economic Development Corporation. He can be reached at bwalters@fmedc.com.