HRSR INFORMATION 06-09-2003 TechTrends e-Newsletter I March 2003 Page 1 of 6
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Minnesota rechnolu Inc,
Volume 4, Issue 3 March 2003
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Losing Proposition
Will Minnesota lose its primary source of technology-based economic development?
Over the past few months, Minnesota Technology, Inc. has been facing a state
budget proposal that eliminates all funding for this organization. If the budget
passes, we will be forced to close our doors and cease operation by July of this year.
And if that happens, Minnesota will lose its primary source of technology-based
economic development, one that has brought huge returns to the state over the
past decade.
Since its inception in 1991, Minnesota Technology has helped more than 5,000 state
• manufacturing- and technology-related companies boost profits, cut costs, find new
sources of supply, and the like. The result: nearly $1 billion in aggregate economic
impact over that time span. In the last two years alone, we've assisted 1,474
companies and helped generate more than $26.4 million tax revenue for Minnesota.
As the budget proposal has been debated in the legislature, a number of key
observers have noted the crucial role that this organization fulfills for Minnesota-and
the equally crucial need to keep Minnesota Technology alive. An editorial in the
March 11, 2003 edition of the Star Tribune called MTI a "potent asset for rural
business development" and urged Gov. Pawlenty to "keep Minnesota Technology
alive."
State Rep. Bob Gunther (R-Fairmont), chairman of the Minnesota House's Jobs &
Economic Finance Committee, voiced his support in a recent interview with the
Fairmont Sentinel. "Minnesota Technology is a big benefit to industry in Greater
Minnesota, and that is documented by many, many people telling us so," he noted.
"There is no other group doing that technical stuff in Greater Minnesota."
In a similar vein, Manufacturing & Technology News recently described MTI as "one
of the strongest manufacturing assistance organizations in the country." And, in a
recent issue of Politics in Minnesota, D.J. Leary, longtime political analyst and the
newsletter's coeditor, hailed MTI's long-term track record, noting how important it is
to maintain the organization's funding given the current gloomy economic climate.
As these and other observers also can attest, MTI's benefits extend beyond the
companies that we've helped; they also improve the lives of the citizens who work
at those companies. Manufacturing- and technology-based firms form the bedrock
of many Minnesota communities. Our state needs to continue to nurture and
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TechTrends e-Newsletter I March 2003 Page 2 of 6
support those companies and the citizens who rely on them. In a March 24th article
in the Detroit Lakes Tribune, Darrin Grubb, a senior manager at Sunrise Machine
and Tool, summed up the value of MTI: "It's a good program that's more important
to Greater Minnesota. We don't have access to new talent or new ideas like they do
in the larger cities. If we're not exposed, we're going to get lost in the dust."
['Ted] Notes
Technology business news from around Minnesota.
Duluth, Ga.-based AGCO Corp. recently announced that it will close its DeKalb, Ill.,
facility and move the production of its line of Challenger track tractors to its
AGCO/Ag-Chem facility in Jackson. Production is expected to begin in July, and the
move is expected to add nearly 150 jobs to the Jackson site, with the possibility for
future additions, according to the company.
Microsoft Corp. Chairman Bill Gates, through his Cascade Investment vehicle, has
increased his stake in Fergus Falls-based Otter Tail Corp. to 5.9 percent, according
to the U.S. Securities and Exchange Commission. Cascade is the Otter Tail's largest
• institutional stockholder.
Duluth-based electrical contractors Lakehead and Thompson Electric recently
announced that they are merging operations to form a new entity, APi Electric. Both
• firms are owned by the APi Group Inc. of St. Paul. The merger will create the largest
commercial electrical contracting firm in the Duluth area.
International Steel Group Inc. (ISG) recently signed a $1.5 billion purchase
• agreement to acquire the bankrupt Bethlehem Steel Corp. As part of the deal, ISG
would acquire Hibbing Taconite Co. of Hibbing, which had been owned by
Bethlehem. The deal, which is still subject to a U.S. Bankruptcy Court review in late
April, would transform ISG into the nation's largest integrated steel producer.
Sun Patio Inc., the corporate parent of Warrior Boats, recently completed a new
22,000-square-foot boat trailer production area at its Maple Lake boat factory. The
new facility replaces space that the company had leased in Annandale.
The Aggregate and Ready-Mix Association of Minnesota, Burnsville, and the
American Concrete Institute, Farmington Hills, Mich., recently awarded Northshore
Mining Co. of Silver Bay with their 2002 Environmental Excellence Award. The
award recognizes a Northshore ash management program that turns flyash, a coal
burning byproduct that is typically dumped into landfills, into a concrete enhancer.
• Nordic Aseptic Packaging, an Alexandria soymilk packaging firm, reports that its
sales have quadrupled in the last year. The company, which is a division of Hope,
Minn.-based Sunrich Food Group, produces and packages a variety of food products
primarily for private labels.
Missota Paper Co. of Brainerd recently purchased the closed Brainerd mill formerly
owned by Potlatch Corp. of Spokane, Wash. The deal included a $2 million loan
from the Minnesota Department of Trade and Economic Development (DTED).
Missota planned to start paper production in March.
• MMSI Inc., a for-profit subsidiary of the Rochester-based Mayo Foundation, has
been awarded a contract by the state of Arkansas to provide a smoking cessation
helpline for the state's residents. The contract is the second such agreement for the
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TechTrends e-Newsletter I March 2003 Page 3 of 6
service, which is known as the Mayo Clinic's Tobacco Quitline. The organization also
has been providing the same service to New Jersey for the past two years.
Hutchinson Technology Inc., the Hutchinson-based supplier of computer disk drive
suspension assemblies, recently reported its fifth consecutive profitable quarter.
According to the company, it shipped more than 135 million suspension assemblies
during the first fiscal quarter of 2003-a 21 percent increase over the previous
quarter, and more than 45 percent higher than a year ago.
The city of Kenyon has received official status as being "E-Commerce Ready." The
certification is granted by a DTED program which attests that the community has
met a number of basic conditions that will help pave the way for its businesses and
citizens to conduct e-commerce.
Uuteridal
April 9-10
Medtech Investing Conference
Topic: Private Equity Investing in Medical Devices and Healthcare Technologies
Location: Marriott City Center, Minneapolis
For more information: www ibfconferences.comjmedtech2003.htn.
April 8
West Central Initiative Fund Seminar
Topic: Preparing Your Workforce for the Demands of a Recovering Economy
Location: Alexandria, Minn.
For more information: 800-735-2239 or http://www.wcif.org/workforce/index.html
• April 16
Minnesota Technology, Inc. Technology Awareness Forum
Topic: Winning at New Products-Increasing Revenues through Successful Product
Development.
Presenter: Dr. Robert Cooper, creator of the "Stage-Gate" product development
process.
Location: Bloomington, Minn.
Contact: Terresa Svoboda, 800-325-3073 or
www mi nnesotatechnolog y..org/eventslTechForums
April 17
Minnesota Technology, Inc. Technology Awareness Forum
Topic: ISO Root Cause Analysis
Location: St Cloud, Minn.
For more information: www.minnesotatechnologyorg/events/TechForums
April 25
Hands-On Leadership Seminar
Topic: How to Get More Done with Less
Location: Jackpot Junction Convention Center, Morton, Minn.
Cosponsored by Minnesota Technology, Inc.
For more information: 507-537-7051; 800-576-6728, e-mail:
jilld @ms,mnwest.mnscu.edu
• April 25
Minnesota Technology, Inc. Technology Awareness Forum
Topic: Marketing Tools for Manufacturing Companies
Location: Owatonna College & University Center, Owatonna
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TechTrends e-Newsletter I March 2003 Page 4 of 6
For more information: www.minnesotatechnolocy.org/events/TechForums
• May 7
Minnesota High Tech Association Partnering &Collaboration Conference
Topic: Partnering and collaboration in today's business environment
Location: Minneapolis
For more information: 952-230-4552, e-mail: tvolpe @mhta.orq
www.mh ta.org
May 19-20
Minnesota Venture Capital Conference
Location: U of M Radisson Hotel, Minneapolis
Cosponsored by NetSuds and Minnesota Technology, Inc.
For more information: www.mnvcc.com, e-mail: matt(@mnvcc.com
May 21-22
International Business Development Conference
Location: U of M Radisson Hotel, Minneapolis
Cosponsored by NetSuds and Minnesota Technology, Inc.
For more information: www.ibdconference.com, e-mail: matt @mnvcc.com
Pet .,atet ve
Customer Loyalty-An Emotional Subject
By Kim Rock
Holding onto a customer has never been harder-or more important.
• According to a recent Gallup research study, the key to wooing
customers isn't price or even product. It's emotion. You've probably
read that the cost of acquiring new customers can be five times the
cost of servicing established ones. Well, today's challenge is to move
customers from being simply satisfied to being rationally loyal and
finally to being emotionally engaged with your product. By doing so,
you create deeper and far more profitable relationships with your clients.
Here are the Gallup questions that cut to the heart of customer loyalty:
• Overall, how satisfied are you with (brand)?
• How likely are you to continue to purchase (brand)?
• How likely are you to recommend (brand) to a friend?
• (Brand) is a name I can always trust. T/F
• (Brand) always delivers on what they promise. T/F
• (Brand) always treats me fairly. T/F
• If a problem arises, I can always count on (brand) to reach a fair and
satisfactory resolution. T/F
• I feel proud to be a (brand) customer. T/F
• (Brand) always treats me with respect. T/F
• (Brand) is the perfect company for people like me. T/F
• I can't imagine a world without (brand). T/F
In short, brand loyalty is more than a simple preference for one product over
• another.
Gallup's research has revealed three powerful ways managers can create passionate
customers:
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TechTrends e-Newsletter I March 2003 Page 5 of 6
1. Create products that are as flawless as possible. Of course, this one goes
without saying. And yet, many industries lost sight of this essential rule of
• thumb over the past few decades; one-the U.S. auto sector-lost billions in
market share to better-made products from foreign competitors before it
upgraded its quality initiatives.
2. Train employees, especially front-line staffers, to act as ambassadors of the
brand. Equip them with the tools, skills, and key messages that they need to
promote your company's brand.
3. Transform problems into opportunities to please customers. Is one of your
clients unsatisfied with a product or service? Address the problem head-on
and show the customer that you value his or her satisfaction. If they believe
you sincerely care, you've gone a long way toward creating a happy
customer-and one who will probably come back to your business in the future.
For more information on the poll, visit www..gallu..pjournal.com.
—Kim Rock is a manufacturing specialist at Minnesota Technology's Fairmont office.
You can reach him at krock @mntech.org.
Q St at Boy
Employer Ratings of Greater Minnesota Employees
According to a recent DTED report, workers in Greater Minnesota are reliable,
productive, and willing to learn. The study, which was compiled from a survey
conducted from more than 800 outstate employers, ranked employees' work-related
attributes on a four-point scale (with 4 being the top score). While the results were
generally good, the survey did point out potential needs for upgrades in such areas
as computer skills and flexibility. A sample of the report's results:
•
• Work Ethic 3.30
• Reliability 3.28
• Productivity 3.23
• Willing to Work Extra Hours 3.20
• Basic Literacy (Reading) 3.20
• Willing to Learn Skills 3.15
• Basic Math Skills 3.05
• Skill Level 3.04
• Cost of Benefits 2.94
• Problem-Solving Skills 2.91
• Innovation 2.84
• Creativity 2.84
• Education Level 2.77
• Ability to Deal With Diversity 2.76
• Adaptability to Change 2.75
• Cost of Training 2.73
• Wage Level 2.71
• Computer Literacy 2.68
• Absenteeism (lower is better) 2.41
• Turnover Rate (lower is better) 2.41
For the complete report results, go to
http://www.-dted.state.mn,us/PDFs/G.rM Nworkers.pdf
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