5.0. EDSR 09-08-2003 ITEM # 5.
City of
Elk
River
MEMORANDUM
TO: Economic Development Authority
FROM: Heidi Hall, Economic Development Assistant -01--
DATE: September 8, 2003
SUBJECT: Strategic Industrial Marketing Activities Update
Attachments
• Elk River Ad Featuring Tescom,MN Leasing Guide,Third Quarter 2003
• Technical Assistance& Operations Consulting Program Direct Mail Piece
• "Finance and Commerce Names Innovators of the Year", Finance and Commerce
• Newspaper Web Site, September 2003
• "Winning=Innovation-Whining", Twin Cities Business Monthly,July 2003
I. Product Offering Strategy
Industrial Land Issue
The Director of Economic Development has provided a separate report regarding this issue.
Available Industrial Lease Space
Below is an updated list of the City's available industrial lease space:
Building Location Available SF
Alltool Pinnacle (Former Roma Tool) Industrial Blvd 30,000
Decker East Hwy 10 5,000
Elk River Business Park Hwy 10 & 169 15,000
MN Fabrication&Machine Twin Lakes Rd. 2,600
Ripplinger Joplin St 1,200
R&W Investments York St. NW 10,500 (6,000 &4,500)
M&A York St. NW 7,000
I I. Competitive Strategy
• The Competitive Strategy is directly related to the above Product Offering Strategy report
regarding the industrial land issue.
Strategic Industrial Marketing Activities Update
September 8,2003
Page 2 of 3
• I I I. Key Account/Lead Generation Strategy
Event Sponsored by Manufacturers Alliance &MN Technology
On August 14`h, staff and Matt James of M&M Precision Machining attended an event
sponsored by the Manufacturers Alliance and MN Technology entitled"Responding to
Foreign Competition". The event prompted Mr.James to inquire of MN Technology's
services and he has made contact with MN Technology to discuss assessments for plant
layout,marketing,and product quality. Mr.James indicated that he is very interested in
applying for the Technical Assistance and Operations Consulting Program to assist with the
technical assistance that MN Technology may provide.
Meetings with Local Bank Key Accounts
Staff is meeting with local banks to provide information on the MN Community Capital
Fund and the Technical Assistance and Operations Consulting Program.
IV. Promotions &Advertising Strategy
August Inquiry
Staff received an inquiry in late August from a company interested in leasing 15,000 SF of
light industrial space. The company is a designer and manufacturer of innovative fishing
products for recreational anglers. A packet of information was sent to the company and
staff continues to follow up with the company.
Advertising
2003 ads featuring E& 0 Tool&Plastics,Metal Craft Machine &Engineering,Cymbet
• have been presented to the EDA in previous months. The attached Tescom ad was featured
for the first time this year in the third quarter MN Leasing Guide.
V. Public Relations Strategy
MN Technology Partnership Program
The attached direct mail piece announcing the Technical Assistance and Operations
Consulting Program was recently sent to a targeted list of about 700 manufacturers put
together by staff and MN Technology.
Energy City
The next Energy City event recognizing Rogers High School as a high performance school is
scheduled from 7:00-9:OOpm on Tuesday, October 21st. Tours of the school will be held
before and after an 8:00 program. Staff is currently working on marketing materials for the
event.
VI. Strategic Partnership Strategy
Downtown Revitalization Project-August Activities
At the August 25th HRA meeting, city staff reported the status of their research regarding
the follow-up issues requested by the HRA and members of the public. Following the HRA
meeting,members of the public expressed their concerns to the City Council regarding the
project. No new action was taken by either the HRA or Council in August. The final
development agreement is expected in 30-60 days.
4110
Strategic Industrial Marketing Activities Update
September 8,2003
Page 3 of 3
• Communications
The September edition of the City newsletter, The Current,included an article on the
Downtown Revitalization Project.
VII. Business Retention Strategy
Business Retention&Expansion Program
Staff will contact EDA members individually to schedule future Business Retention&
Expansion visits.
Cymbet to be Honored as Innovator of the Year
Cymbet is among the winners of the second annual Finance and Commerce Innovator of
the Year Awards (see attached article). Staff attended the award ceremony held on
September 5th in downtown Minneapolis. Other winners include Cargill and 3M. A future
article is also expected to appear in the Elk River Star News.
Manufacturers &Technology Week. October 20-24,2003
Staff is working with the Elk River Area Chamber of Commerce to plan Elk River's
recognition of Manufacturers &Technology Week. Preliminary plans include plant tours of
Cymbet and Marketech and a luncheon with keynote speaker, Mark Sheffert who is the
Chairman& CEO of Manchester Companies, Inc. (see attached article written by Mr.
Sheffert). The event will be advertised in the October Elk River Area Chamber of
Commerce Newsletter and on the Economic Development Web page.
• In addition, staff is working with Tammy Miller Design on a"Thank You" advertisement,
similar to last year, that will be placed in the October 22nd issue of the Elk River Star News
in recognition of all Elk River manufacturers.
Also, Economic Development's display booth recognizing Elk River manufacturers will be
rotated among the local banks each week in October.
110
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Data for this publication is gathered by
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Commercial REALTORS®and the - "1.'1 ' I r -•
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2002. All rights reserved. ' � G ‘4:),'4-
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Minnesota Leasing Guide
Minnesota Real Estate Journalm , <'"
is 9555 James Ave. S. #240 MN
iiii
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A division of Law Bulletin Publishing Company
Location. "Our visitors can stay in Minneapolis if they like, and then
they get a more rural atmosphere here. "
a The Minnesota Leasing Guide is published by
Law Bulletin Publishing Co..415 N.State Street, --Mark Cramer,general manager, Tescom Corporation
# i Chicago,IL 60610. Send address changes to Min-
nesota Real Estate Journal,9555 James Ave.S.#240, For more information about business opportunities in.Elk River,
Bloomington,MN 55431.Lanning Macfarland,Jr., (763) 635-1040,
chairman.Sandy Macfarland CEO,Brewster Mac- or visit us on the Web at wwww.ci.elk-river.znn.us.
farland president Single copies$50.00.
02001 Law Bulletin Publishing Co.No part of
this publication may be reproduced without the writ-
ten permission of the publisher.
While the Minnesota Real Estate Journal believes City of
information in this Leasing Guide to be accurate,we E11
cannot be responsible for omissions, changes in n Ri „
rentals or other conditions,prior sale,leasing or with- ver
drawl without notice.
r The Light Industrial Hub of the Northwest Metro
4 l; Minnesota Leasing Guide August/September 2003 5
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6 y MARK SHEFFERT
Winning = Innovation -Whining
HOW CAN MANUFACTURERS MAKE IT?
Asked to facilitate a roundtable discussion recently with 70 manu- process side—which is how to do it faster,
better, and cheaper. But so what! Nobody
facturing CEOs, I said I'd be glad to do it. I suggested that we call the should underestimate our ability to innovate."
I thought I had permanently alienated myself 1
session "Winning in Today's Global Manufacturing Environment." from this group by calling them whiners,but 1
the room was abuzz for the rest of the session.
The association president agreed,and when manufacturing in the federal government, Then guess what? I was invited back some
the day came, I began by asking the CEOs telling you what products to produce, how weeks later to pick up where we left off.Be-
what issues they are dealing with in light of many to make,and at what price to sell them, fore they all got on the whining bandwagon
the global operating environment. To my as the government does for farmers?" again, I suggested that we make a list of the
surprise,they all stared at their shoes. Boy,that got their combative juices flowing! things out of their control.It was an exhaustive
0 With more encouragement,one CEO mus- But I went on,"How many believe that it is the list,including items from the previous session.
tered up the courage to talk first. Soon they CEO's job to create jobs in America?"Nobody When we were done, I tore the list off the
were all discussing why they can't compete on raised a hand.I asked,"How many believe it's easel,ripped it into pieces,and stomped on it.
a global level because of excise taxes,foreign your job to make a profit for your company?" "There.These issues are out of our control,
exchange rates, NAFTA, the unpatriotic use Hands went up all around the table. and we're not even going to talk about them," 1.
of cheap overseas labor. One even said our I continued, "Isn't the average pay for I said. For the remaining three-and-a-half
country needs a secretary of manufactur- hours,we had a fruitful discussion about
ing, like the secretary of agriculture, to 4V the things within their csntwl including
protect manufacturing in America. The best innovators start marketing,selling,developing new prod-
After what seemed like an eternity(al- with an existing product rather ucts and applications, and making
though my watch said it was only 13 min- than free-for-all brainstorming, process improvements. We also dis-
utes)I said,"Time out.I think you've got cussed strategic alliances, partnering,
the wrong guy to lead this discussion." and merging to leverage strengths, all
"What do you mean?"they asked. skilled labor in the U.S. about $2,200 per under the umbrella theme of innovation.
I replied,"Well,when your president asked month, while in China it's about $100 per (—
what I thought our discussion should be month? Why should I as a consumer be la ow don't get me wrong; I have a heart-
named, I said `Winning in Today's Global forced to buy your products when I can buy felt respect for this group of hard-
Manufacturing Environment.'But there must theirs cheaper?What the hell is so unpatriotic working entrepreneurs. They simply needed
have been a typo in your invitations. You all about that? America is all about free enter- to hear the message that they will go the way
seem to think it said`whining'not`winning'!" prise,isn't it? of family farming and smoke-stack industry if
Many present were gray-hairs and no-hairs, "Can we conclude that in the next 10 to 20 they don't innovate.
as mature as myself. "Let me ask you folks years, the government is not going to inter- We had a productive session, but usually
some questions," I said. "Most of you will vene, and cheap foreign labor is not going to when the word"innovation"is mentioned,im-
probably not be running your companies in 10 go away,but that your responsibility to create ages of out-of-control brainstorming sessions
or 20 years. How many of you believe that profits will stay?"Heads were nodding. at off-site meetings come to mind.You know
our government will intervene to equalize for- "So let's stop this stinking thinking, and fo- the ones—everyone is supposed to think"out-
eign currency rates during that time? Or im- cus on what you can do instead," I said. side the box" or of "new paradigms." After
plement protectionist measures against unfair "America is the land of innovation. Recently a few days of brain frying, though, everyone
excise taxes?And do you really want a czar of we haven't always been the best on the returns to the same old routine. A few ideas
JULY 2003 TWIN CITIES BUSINESS MONTHLY
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survive,but are eventually mangled and Orville Wright,but few realize lyzed and categorized more than While there's obviously a lot
to death when people fight over that their competition, Glen Cur- 200,000 patents, identifying corn- more to their process, the point is
who gets credit,become scared that tis,was the first to sell an airplane, mon templates in the creative that these researchers start the in-
change will make their jobs obso- to fly from one city to another,and process.His students further devel- novation process with an existing
to or require them to learn a new to obtain a pilot's license. The oped his ideas and today the TRIZ product, rather than a free-for-all
,or argue over whose budget it Wright brothers spun their wheels technique (that's a Russian acro- brainstorming session about cus-
should come out of. for five years, being so afraid to nym for "theory for inventive tourers and their unmet needs.The
Besides, innovation doesn't just share ideas that they wouldn't al- problem solving") is widely used researchers have found that peo-
happen overnight or once a year at low anyone to see theirs. Curtis by engineers throughout the world. ple work best within the con-
some mystical off-site manage- believed in shared success and col- Altshuller's templates of innova- straints of a defined problem.Fac-
ment meeting. It is the CEO's re- laborated with others to solve tion are the basis for work done by ing a blank slate with the label of
sponsibility to create an environ- problems and make improvements researchers in Israel, who have "innovation"paralyzes most of us.
ment in which innovation is just to his airplane, eventually becom- found that most successful product So let me challenge you, like I
part of what people do. CEOs can ing more commercially successful innovations fit into at least one did my manufacturing CEO
do that by communicating a clear than the Wright brothers. of five patterns: 1) subtraction- friends: Solve your problems by
picture of some?uture state of the In the same manner, people in removing components or attribut- forgetting the things you can't con-
organization, and helping every- organizations today hold their in- es from a current product;2)mul- trot. Instead, limit your efforts to
one understand how their job fits novations tightly to their chests, tiplication—copying one or more the things you can control by being
into the bigger picture of the corn- fearing that sharing them will rob existing components and altering more innovative. And stop whin-
pany's goals and mission.If all em- them of recognition. Unmeasured them in some way; 3) division— ing so you can start winning! •
ployees are in touch with the big damage is done in terms of lost op- dividing an existing product into
picture,they'll be able to come up portunity. its component parts; 4) task unifi- Mark Sheffert (mark.sheffert@
with better ways of doing what cation—assigning new tasks to manchestercompanies.com) is
they do,strengthening the innova- 'recently read about some inter- components to unify their func- chairman and CEO of Manchester
tion process. esting research conducted by tions; and 5) attribute dependency Companies, Inc., of Minneapolis
CEOs should also promote tak- Genrich S. Altshuller(1926-1998), change—creating new dependen- which provides corporate-renewal,
ing,realistic risks and sharing a Russian engineer who formalized cies between a product and its im- investment-banking, and manage-
ideas. History is kind to Wilbur a process for innovation. He ana- mediate environment. ment-advisory services.
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TWIN CITIES BUSINESS MONTHLY JULY 2003 29
III