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EXTENSION CENTER FOR COMMUNITY VITALITY

Menahga Business Retention and Expansion Strategies Program

RESEARCH REPORT June 2012

Menahga Business Retention and Expansion Strategies Program 1

Partners/Sponsors: City of Menahga Initiative Foundation Minnesota Department of Employment and Economic Development

Menahga Business Retention and Expansion Strategies Program RESEARCH REPORT June 2012 Authored by Brigid Tuck and Michael Darger, University of Minnesota Extension and Nathan Dorr, Minnesota Department of Employment and Economic Development Editors/Contributors: Adeel Ahmed Melinda Dontje

© 2012 Regents of the University of Minnesota. All rights reserved. University of Minnesota Extension is an equal opportunity educator and employer. In accordance with the Americans with Disabilities Act, this material is available in alternative formats upon request. Direct requests to the Extension Store at 800‐876‐8636. Printed on recycled and recyclable paper with at least 10 percent postconsumer waste material.

Menahga Business Retention and Expansion Strategies Program 2

Table of Contents 1. CHAPTER ONE Tab 1 Background of the Project 1 The Importance of Business Retention and Expansion 1 Menahga BR&E Project 2 People Involved in the Menahga BR&E Project 5 2. CHAPTER TWO Tab 2 A Brief Profile of the Menahga and Wadena County Economy and Demographics 1 3. CHAPTER THREE Tab 3 BR&E Survey Results, Strategies, and Potential Projects 1 Characteristics of Businesses Visited 1 Strengths, Weaknesses, Opportunities, and Threats 7 Overview of Business Retention and Expansion Strategies 8 Strategy One: Improve Labor Force Availability Through Enhanced Recruitment and Training Opportunities 10 Strategy Two: Assist Local Businesses via Strengthened Retention Efforts and Infrastructure Development 20 Strategy Three: Improve Retail Trade and Tourism Opportunities in Menahga 31 4. CHAPTER FOUR Tab 4 Hints on Successful Implementation of BR&E Projects 1 5. CHAPTER FIVE Tab 5 Menahga BR&E Survey with Summary of Data 1 6. CHAPTER SIX Tab 6 Additional Information Related to BR&E Potential Projects 1 7. CHAPTER SEVEN Tab 7 Implementation Planning Documents 1 8. CHAPTER EIGHT Tab 8 Menahga and Sebeka Market Area Profile, 2010 1

Menahga Business Retention and Expansion Strategies Program Chapter 1 – page 1

Chapter I. Background on the Menahga Business Retention and Expansion Project

The purpose of this chapter is to provide an overview of the Menahga Business Retention and Expansion Strategies Program. The first section of this chapter briefly explains the role of Business Retention and Expansion (BR&E) as an economic development strategy. The second section addresses the Menahga BR&E Program’s objectives and sponsorship and highlights the key steps involved in conducting the program. The third section includes the names of the many people involved in the Menahga BR&E Program. The people involved in organizing the program, visiting businesses, and setting priorities are an important strength of a BR&E visitation program. The final section describes the technical and research assistance provided by the University of Minnesota Business Retention and Expansion Strategies Program.

Importance of Business Retention and Expansion (BR&E) Business Retention and Expansion has become a key element of local economic development efforts. The BR&E economic development strategy focuses on the retention and expansion of existing businesses to assist them in navigating today’s global economy. While the attraction of new business start-ups is an important part of an overall economic development strategy, many communities now recognize that helping existing businesses to survive and grow is vital. An expansion or contraction is defined as a change in employment at an existing plant or business location. A start-up or dissolution is defined as the creation or closing down of a separate plant or business location. This “churning” of business creation, dissolution, expansion, and contraction is a natural part of a local economy. The BR&E challenge to a community is to capture the expansions while taking preventative actions to reduce the number of dissolutions and diminish the contractions. Commonly, more jobs are created by business expansions than by new business start-ups. Menahga, in launching this BR&E visitation program, has the potential to improve the climate for existing businesses and therefore benefit from the continued presence and growth of those businesses. Another benefit of a BR&E visitation program is the information provided by the survey on the community’s strengths and weaknesses. The strengths can be highlighted in community promotional material, while the weaknesses give the community an opportunity to make important changes and show businesses it is responsive. By acknowledging its weaknesses, a community also shows businesses it is trustworthy and will take a realistic look at its situation. A final benefit of a BR&E visitation program, like the one being conducted in Menahga, is how the process enhances the team of local leaders. The team is much broader than many other local economic development teams since it includes representatives from education and government in addition to business and economic development leaders. This diverse membership allows the local BR&E task force to bring in more resources, ideas, and contacts to address problems identified in the survey. Quite often, this local team will continue to interact in addressing other community concerns that arise long after the official program has ended.


Overview of the Menahga BR&E Program The Menahga Business Retention and Expansion (BR&E) Program is an on-going community effort. This section of the report details important milestones that have been achieved and details future plans of the program. Program Objectives The Menahga BR&E Program has five objectives:

1. To demonstrate support for local businesses 2. To help solve immediate business concerns 3. To increase local businesses’ ability to compete in the global economy 4. To establish and implement a strategic plan for economic development 5. To build community capacity to sustain growth and development.

Program Sponsors The Menahga BR&E Program is sponsored by the following organizations:

City of Menahga Initiative Foundation Minnesota Department of Employment and Economic Development University of Minnesota Extension

Program Organization

Organizing and launching a BR&E program in a community typically takes initiative from a core group of community members who are interested in seeing the program implemented. As community members begin planning for the program, they identify five to eight individuals willing to serve on the Leadership Team. Each member of the Leadership Team has a clearly defined role to play in the BR&E process. The Menahga Leadership Team recruited volunteers, identified businesses to visit, gave input into the survey, and performed business visits. The Leadership Team is also responsible for the coordination of the milestone meetings and for building community awareness of the program. The Menahga Leadership Team held its first meeting on September 8, 2011, thus officially launching the program. The Leadership Team met on September 27 to select firms and finalize the survey instrument. The Leadership Team is responsible for the recruitment of the Task Force. The BR&E Task Force serves as a guide for the BR&E process. The Task Force helps the Leadership Team to complete the business visits. The Task Force also attends a retreat where the group is provided the overall results of the surveys and sets priorities for how to respond to the survey results.


Volunteer Training Volunteer Visitor training sessions were held on October 13 and October 20, 2011. The Volunteer Visitor training sessions orient volunteer visitors to the BR&E process and train them on delivering the survey. Volunteers work in teams of two during business interviews. One person holds primary responsibility for asking the questions while the second person records the responses. Business Selection Participants in the Menahga BR&E Program visited 53 businesses. The Menahga Task Force used a comprehensive method to select businesses targeted for visits. The team assembled as complete a list of businesses in the Menahga area as possible. Businesses did not have to be within the city limits to be visited. The Task Force then eliminated businesses that were both: 1) remote from the city limits and 2) extremely small in nature. Following this process, the Task Force had a list of 103 businesses. The Task Force set the goal of visiting all the businesses on this list. Out of 103 businesses targeted to participate in the Menahga BR&E program, 53 completed the survey visits. This represents an overall response rate of 51%, which is considered a strong response rate. The strong response rate is likely due to a variety of reasons, including: 1) The program’s reliance on volunteer visitors, instead of mailing the survey; 2) The involvement of community leaders, which demonstrates the program’s commitment to businesses and action; 3) the promotion of the program in local media sources; and 4) the dedication of the visitation coordinator. A 53 percent response rate could also be considered strong given that Menahga set the goal of visiting as many businesses as possible, rather than selecting a smaller sample. Business Visits The Menahga Task Force conducted business visits from mid-October to early March of 2012. Two members of the Task Force participated in each business visit, effectively capturing the information shared by businesses during the visits. Warning Flag Review The Warning Flag Review session is an opportunity for the Task Force to identify individual business concerns that need immediate attention. The Task Force held a Warning Flag Review session on December 14, 2011. Campus Research Review While the Warning Flag Review identifies individual business concerns, the Campus Research Review meeting identifies overarching, universal themes in the survey results. Once these are identified, the Campus Research Review participants suggest ideas for projects the Task Force might undertake to address these themes. Campus Research Review participants typically include members of the Leadership Team, economic development professionals, such as representatives from the Department of Employment and Economic Development, and


University of Minnesota faculty. The Menahga BR&E Campus Research Review was held on April 12, 2012. Research Report Development Following the Campus Research Review meeting, University of Minnesota Extension prepares the research report. The goal of the research report is to detail the overarching themes identified by the Campus Research Review team and to put forth potential projects. Potential projects are ideas the Task Force might use to address the larger themes identified by the survey. The Research Report also summarizes the survey data, gives a history of the BR&E project, provides context on the local economy and demographics, and contains the raw survey data. The Menahga BR&E Leadership Team sent copies of the surveys to the University of Minnesota for tabulation and analysis. A summary of the data was prepared for the Campus Research Review meeting. This research report was then drafted based on the input of the review panel and other ideas. Task Force Retreat A five-hour Task Force Retreat is scheduled for June 5, 2012. At this retreat, the Menahga Task Force will be presented with the overall results of the survey, overarching strategies for addressing the universal issues identified, and potential projects for addressing these issues. The Task Force will then set priorities on the major projects it will implement. The Task Force is free to adopt any of the projects listed in this report, to revise and then adopt any of the projects, or to develop its own projects. Quite often, a community will do all three of these in the process of adopting a final list of three to five priority projects. A project is not considered as a priority project unless at least three people on the Task Force are willing to take responsibility to see that steps are taken to implement it. The people who agree to work on each project do not need to be experts on the topic and can recruit others from outside the Task Force to work on the project. During the last part of the meeting, each group will meet to begin planning the implementation of its project. Implementation Resources Meeting Following the retreat, the Menahga Task Force and/or the project groups meet with individuals from outside the Task Force who might have projects similar to theirs. The group will usually ask these resource people three questions: 1) Is your group doing any work similar to our proposed project that benefits businesses in our area?; 2) If yes, what are you doing and to what degree are you reaching businesses in Menahga?; and 3) Would you be willing to collaborate with us and/or how could our BR&E Task Force help your program? The priority projects might be modified after this meeting to account for additional resources identified.


Community Commencement Meeting This is the meeting to celebrate the end of the BR&E visitation and planning phase and the beginning of the Menahga BR&E implementation phase. This should be a community-wide event. All of the Task Force members, volunteer visitors, local media, and visited businesses are invited. Other local government, business, and community leaders are also invited, as well as regional and state agency representatives and members of the community. A report summarizing the BR&E program and the priority projects selected for implementation will be prepared by University of Minnesota Extension for the commencement. Quarterly Implementation Meetings After the community commencement meeting, the Task Force meets quarterly to discuss progress on the projects and how they might overlap. Each project work group reports on their progress and solicits input from other Task Force members. Often, Task Force members from outside a project work group are able to troubleshoot by offering useful suggestions or assisting in some aspect of the project. They also can encourage fellow Task Force members to sustain forward momentum toward accomplishment of the stated goals.

People Involved in the Menahga BR&E Program

Three groups of people have been very important to Menahga’s success to date in its BR&E program. These include: 1) the Leadership Team, 2) the Task Force, and 3) the businesses visited. The Campus Review team also deserves acknowledgement for their participation in the process. BR&E Leadership Team The Leadership Team coordinates the BR&E program as well as participates in everything, including business visits. The team will lead the group into the implementation phase once the retreat is completed. The Leadership Team is part of the Task Force. Menahga BR&E Leadership Team Members Overall Coordinator – Pat Foss, Mayor Business Resource Coordinator – Walt Salo, City Administrator Milestone Meeting Coordinator – Tracy Tomperi (current), Menahga City Council and Maxine

Norman (former), formerly of the Menahga City Council Visitation Coordinators – Liz Olson, Civic and Commerce Association Media Coordinator – Rick Pinnick, Civic and Commerce Association/Business Owner Menahga BR&E Task Force and Volunteer Visitors Many community members participated as Task Force members. This group addressed the warning flag issues, will set priorities for action, and will lead implementation of selected


projects. Task Force members also participated in business visits. Volunteer visitors are not serving on the Task Force, but did help to complete business visits. BR&E Task Force Members Steve Bruer, First English Lutheran Church Sue Burlingame, Trustar Federal Credit Union Roger Henstorf, Menahga City Council and Planning Commission Mary Klamm, Menahga Public Schools Deb Lenzen, Menahga Public Schools Pam Mahling (J.B. Sherbenske), West Central Economic Alliance Bernice Ollanketo, Menahga Civic and Commerce Association Marlene Salo, Greenwood Connections Lloyd Sporre, Horizons Program Tara Weaver, City of Menahga Sylvia Wulf, Horizons Program BR&E Volunteer Visitors Kari Gravely, Ted’s Hardware Mary Hanninen, Community Member Bev Hepokoski, Kenmark Green Printers Mark Hepokoski, Kenmark Green Printers Sandy Kilbo, Menahga Area Historical Museum Steve Koehne, United Methodist Church Scott Koenikke, Chief of Police Peg Kumpula, Community Member Ralph Kumpula, Community Member Dave Lindquist, Menahga Public Schools Tracy Lindquist, Community Member Dorothy Ollanketo, Bren Mar Rose B&B Linda Peterson, Kettle River Ironworks Steve Peterson , Kettle River Ironworks Darlene Salo, Community Member Pat Slifer, Greenwood Connections Brad Snyder, Shell Sport & Bait Marlene Snyder, Shell Sport & Bait Durwin Tomperi, Omega Hardwoods Carol Waaraniemi, Cottage House Café Jean Weyer, Menahga Public Schools


Businesses Visited as Part of the Menahga BR&E Program The following 53 businesses graciously agreed to be interviewed as part of the BR&E visitation process. While survey responses are confidential, it is important to acknowledge the effort of participating businesses. Anderson Custom Graphics Blueberry Pines Golf Club Bob and Jan’s We Got Shoes Bren Mar Rose B&B Cardini Pearson Funeral Home CENEX/Lakes Area Cooperative Chuck's Country Foods Cooperative Network Services Cottage House Café Farmers Union Insurance Flowers Boutique First National Bank / Insurance Gateway Upholstery Greener Tomorrows Greenwood Connections Howard’s Driveway Inc. JP Structures Jan's Hair Attitude Jewel of the Northwoods B&B Kenmark Green Printers Kettle River Ironworks L & B Construction Mantrap Roofing Menahga Bake Shop Menahga Concrete Products Menahga Insurance Center Menahga Marine and More Menahga Public Schools Menahga V.F.W. NAPA Auto Parts Naturale Alternatives Noffsinger North Manufacturing Northbound Spirits Northland Trucking Omega Hardwoods Pederson & Pederson Pinoneimi Chiropractic Renneberg Hardwoods Restamayer Family Dentistry Rose Haven Alt. Family Living


Salo Manufacturing Scissor Sisters Family Hair Care Shell Sport and Bait Spirit Lake Lumber Spirit Lake Resort Motel Subway Ted’s Hardware Torvinen’s Auto Body Trout’s Service and Repair Trophy Rack Reproductions TruBilt Industries Trustar Federal Credit Union West Central Telephone Association

Campus Research Review Team The Campus Research Review panel was comprised of university faculty, Minnesota Department of Employment and Economic Development (DEED) specialists, economic development professionals, and Menahga Task Force members. A list of participants in the Campus Research Review follows. Campus Research Review Attendees Menahga BR&E Task Force

Pat Foss, Mayor Roger Henstorf, City Council and Planning Commission Liz Olson, Civic and Commerce Association Walt Salo, City Administrator

Minnesota Department of Employment and Economic Development

Tim Qualley, Business Services Specialist Kyle Uphoff, Labor Market Information

Economic Development Professionals

Marc Nevinski, City of Coon Rapids, Community Development Director University of Minnesota

Adeel Ahmed, Extension Center for Community Vitality Michael Darger, Extension Center for Community Vitality Kent Gustafson, Tourism Center Jodie Kaden, Extension Center for Community Vitality Matt Kane, Extension Center for Community Vitality


Ward Nefsted, Applied Economics Brigid Tuck, Extension Center for Community Vitality

Assistance from the University of Minnesota and Other Organizations

University of Minnesota Extension has helped over sixty communities, counties, or clusters of cities or counties to implement BR&E visitation programs. Using research on earlier BR&E programs, Extension developed the approach used in the Menahga BR&E program. The University of Minnesota and other organizations are providing the Menahga BR&E Program with a variety of technical assistance. Adeel Ahmed, University of Minnesota Extension, is serving as BR&E consultant for the Menahga BR&E program. This includes coaching and advising the Leadership Team, conducting Volunteer Visitor training, assisting the Leadership Team in business selection, facilitating the Warning Flag Review meetings, and participating in the Campus Research Review meeting. Brigid Tuck, Universty of Minnesota Extension, and Nathan Dorr, Minnesota Department of Employment & Economic Development, prepared this research report, which will be presented at the Task Force Retreat on June 5, 2012. Michael Darger, University of Minnesota Extension, will facilitate the Task Force Retreat. Brigid Tuck will prepare a summary report based on the Task Force’s selected priorities. Melinda Dontje provided valuable technical support for the program.


Chapter II: A Brief Profile of Menahga and Wadena County Economy and Demographics

Menahga is one of seven cities in Wadena County, Minnesota. Menahga is located in central Minnesota and is home to 1,306 people. Unlike many other rural areas of the state, population is expected to grow in the county in the next 20 years. Population growth will be driven by school age children and the elderly. The overall employment situation for Menahga appears to follow larger national and state trends. With the Great Recession hitting in 2008 and 2009, employment began to drop off and only recently started rebuilding. Self-employment was also down with the recession. Farms in the county tend to be smaller in size, averaging 230 acres. Hourly wages in the region generally are lower than state and national averages which corresponds to lower per capita personal incomes as well.

Population and Labor Force Analysis

In the 2010 US Census, Menahga had 1,306 people with a median age of 41.6. Racial composition in Menahga was made up by 97.8 percent white, with 0.5 percent listed as American Indian and 0.5 percent as African American. The city had 569 households. Just over half (53 percent) were in family households, and about 41.5 percent were households with individuals 65 years and older. Of the 569 occupied housing units, 66.4 percent were owner-occupied. Menahga residents made up only 9.4 percent of Wadena County’s population in 2010. Yet it’s good to look at population and labor force projections for the county. This county level projection by age grouping is the closest level of detail available for projections by the Minnesota State Demographic Center. As shown in Table 2-1, the overall population of the county is expected to grow by 8.6 percent from 2010 to 2030. There are population losses in the birth to preschool ages, as well as with all components of the working age cohorts. The projected population increases outweigh the losses however, and are concentrated among school age children, and retired and elderly people. Compared to Minnesota projected changes, the county is more similar to other rural areas where families and adults tend to out-migrate to larger metro areas for work. Minnesota level data is often dominated by the larger metro areas of the Twin Cities, St. Cloud, and Duluth, which often attract a variety of college students and workers.


Table 2-1: Population Projections for Wadena County

Meaningful Age Group

Age Group

2010 2015 2020 2025 2030

2010 to 2030

Change % WADENA

CO

2010 to 2030 Change %

MINNESOTA

Birth to Preschool 0 to 4 940 900 880 860 840 -10.6% 3.9%School Age 5 to 14 1,750 1,860 1,900 1,860 1,800 2.9% 14.3%

High School 15 to 19 870 810 860 900 880 1.1% 9.6%Mobile & College Age 20 to 24 840 770 720 760 750 -10.7%

1.5%

Young Family 25 to 39 2,210 2,260 2,240 2,160 2,040 -7.7% 3.2%Tenured Workers 40 to 59 3,620 3,460 3,180 2,990 2,970 -18.0% -1.6%Retired 60 to 74 2,110 2,500 3,000 3,300 3,180 50.7% 64.9%Elderly 75 and up 1,740 1,890 2,050 2,400 2,830 62.6% 84.7%Total All Ages 14,080 14,450 14,830 15,230 15,290 8.6% 15.6%

Source: Minnesota State Demographic Center Again, following the Wadena County trends is a good substitute for measuring what’s happening in Menahga, but it’s not going to capture all the unique and specific trends in and around the city. Wadena County has a much lower median household income when compared to the Minnesota and national level (see table 2-2). This is mostly because higher earnings in metropolitan areas boost income levels for the state and national numbers. Poverty rates in the county are slightly higher than the US level, and over five points higher than Minnesota. This gap is widened when looking at the poverty rate of children under 18 years old. An estimated 2,250 people overall in the county are in poverty, otherwise stated as being at 100% of the Federal Poverty Guidelines. Often this number is a low estimate of the actual measure of people considered poor or working poor. Table 2-2: Median Income and Poverty Comparisons

Median Household

Income Poverty Estimate

Poverty Rate

Poverty Rate, Children under 18 yrs

old United States $50,046 46,215,956 15.3% 21.6% Minnesota $55,422 595,485 11.5% 15.0% Wadena Co. $36,412 2,250 16.8% 24.1%

Source: US Census, Small Area Income and Poverty Estimates, 2010 Per capita personal incomes in Wadena County further reflect the poverty trends. In 2010 dollars, the per capital personal income of residents in Wadena County was $19,344, far below the state average of $29,852 and the national average of $27,334. Per capital personal income estimates are from the United States Census Bureau.


The school district of Menahga enrolled 812 students in 2012 as shown in table 2-3. Most were in the elementary schools, which had a higher rate than Minnesota of free-reduced price lunch eligibility at 61.6 percent. The free-reduced price lunch eligibility count is another measure of poverty. These numbers are notably higher than the Minnesota level at 37.3 percent. Table 2-3: Menahga School District Enrollment and Free-Reduced Price Lunch

K-12

Enrollment

Free-Reduced

Price Lunch Count

Free-Reduced Price Lunch

Rate

Free-Reduced Price Lunch

Rate -

MINNESOTA -

Elementary School 503 310 61.6%37.3%

Secondary School 312 149 47.8%Source: MN Department of Education, 2012 data Educational attainment is also a good indicator of economic sustainability. Many other indicators like volunteerism, productivity, and poverty are linked to educational attainment. Table 2-4 shows how Menahga compares to the county, state, and national level in educational attainment. Half of all residents in the city have a high school degree or below, compared to 43.9 percent of US and 36.5 percent of MN residents of the same age group. This educational attainment is parallel to the lower number of people in the city and county with a college degree versus MN and US levels. Table 2-4: Educational Attainment Comparisons

US MN Wadena

Co Menahga

City Population 25 years and over 199,726,659 3,450,999 9,548 812 Less than 9th grade 6.2% 3.6% 4.4% 7.1% 9th to 12th grade, no diploma 8.7% 5.1% 7.9% 5.9% High school graduate (includes GED) 29.0% 27.8% 37.1% 37.1% Some college, no degree 20.6% 22.4% 23.4% 21.2% Associate's degree 7.5% 9.7% 12.4% 13.4% Bachelor's degree 17.6% 21.3% 9.6% 9.4% Graduate or professional degree 10.3% 10.1% 5.2% 5.9%Percent high school graduate or higher 85.0% 91.3% 87.7% 86.9%Percent bachelor's degree or higher 27.9% 31.4% 14.8% 15.3%

Source: US Census Bureau, ACS 2006-2010 5-year Estimates (this is a rolling annual average)


Industry Analysis The overall employment situation for Menahga appears to follow larger national and state trends. With the Great Recession hitting in 2008 and 2009, employment began to drop off and only recently started rebuilding. All businesses, nonprofits, and governmental organizations operating in the city limits of Menahga employed a total of 550 workers in 2011. This equals 9.7 percent of Wadena County’s total 5,665 jobs. The average annual employment for Menahga and Wadena County for the last ten years is shown in chart 2-1. Chart 2-1: Wadena County and City of Menahga Employment Trends

Source: MN DEED, QCEW, Second Quarter data for each year shown The annual employment change allows us to compare local municipalities to regions, states, and national employment. The end of the 2008-2009 recession can be seen in the chart 2-2 showing year-to-year employment change. The numbers for smaller areas like the city and county level often fluctuate more than larger state and national numbers. The trends are another signal that the recession is over, but the local area is maybe recovering slower than the US and state level.

6,230

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City Em

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ent

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ent

Wadena County Menahga, Wadena


Chart 2-2: Year-to-Year Employment Change Trends

Source: MN DEED, QCEW, Second Quarter data for each year shown Looking at the industry mix gives us clues to what areas of the local economy recently grew or shrunk. Table 2-5 below shows employment changes by industry, as well as the number of firms, size of payroll, and the average weekly wage for each industry sector. Overall, the county had 5,665 jobs, which was down 5.3 percent from five years ago. The 431 firms paid out $43.8 million in payroll wages with an overall average weekly wage of $594. The employment losses in manufacturing and construction follow national and regional trends over the last five years due to the recession and financial credit crunch. Education and health services is the largest employment sector making up just over 43 percent of the county’s employment.

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Table 2-5: Wadena County Industry Mix and Employment Trends

2Q 2011

2Q 2006 to 2Q 2011 2Q 2011

Industry Jobs Job Change % Firms Payroll

Ave Weekly Wage

Total, All Industries 5,665 -5.3% 431 $43,814,158 $594 Education and Health Services 2,453 5.6% 58 $21,154,077 $663 Trade, Transportation, Utilities 1,361 NA 107 $10,311,389 $582 Manufacturing 507 -27.5% 33 $3,970,825 $602 Leisure and Hospitality 411 NA 39 $1,085,325 $203 Public Administration 290 5.8% 22 $2,835,745 $752 Financial Activities 163 -12.4% 30 $1,400,876 $661 Construction 158 -19.4% 63 $1,238,751 $603 Other Services 142 -4.7% 37 $548,294 $297 Information 92 4.5% 11 $757,081 $633 Professional and Business Srvcs 62 -41.5% 24 $387,056 $480 Natural Resources and Mining 22 29.4% 7 $124,739 $436

Source: MN DEED, QCEW, Second Quarter data for each year shown. Some industry data suppressed due to data privacy rules. Again, Menahga makes up 9.7 percent of Wadena County’s overall employment with its total of 550 jobs. The 61 firms in Menahga accounted for $3.3 million in payroll during the second quarter of 2011. At this focused level of geography and industry detail, data often gets suppressed due to data privacy rules. So if a large company in construction, accommodation, or food service makes up a large majority of the jobs in the city, then the data is withheld so other firms cannot determine what wages a specific company may be paying. This means table 2-6 is not fully complete. It does show enough detail to get an idea of how some sectors are performing.


Table 2-6: City of Menahga Industry Mix and Employment Trends

2Q 2011

2Q 2006 to 2Q 2011 2Q 2011

NAICS Jobs Job Change % Firms Payroll

Ave Weekly Wage

Total, All Industries 550 -8.6% 61 $3,305,611 $462 Education and Health Services 235 NA 7 $1,129,371 $369 Trade, Transportation, Utilities 115 NA 18 $611,891 $409 Manufacturing 49 -10.9% 4 $292,745 $459 Financial Activities 32 NA 4 $253,896 $610 Public Administration 23 NA 1 $382,080 $1,277 Other Services 18 -41.9% 8 $34,490 $147

Source: MN DEED, QCEW, Second Quarter data for each year shown. Some industry data suppressed due to data privacy rules. Self-employment in Wadena County (see table 2-7) overall went down between 2006 and 2009 by 77 firms (seven percent) to 1,051 firms. Sales receipts totaled roughly $37,476,000 in 2009. This is $6,776,000 lower than in 2006. This is due to the fact that 2009 was in the heart of the Great Recession. Data for 2010 and beyond will show improvements in firms and sales receipts. Construction and Other Services rated as the highest self-employment areas, making up over one third of the county’s self-employment segment.


Table 2-7: Wadena County Self Employment by Industry, 2009

Industry Firms Receipts ($1,000)

Total for all sectors 1,051 $37,476 Construction 189 $9,891 Other services (except public administration) 180 $3,707 Retail trade 117 $4,570 Transportation and warehousing 100 $8,098 Health care and social assistance 96 $1,434 Professional, scientific, and technical services 80 $1,903 Administrative and support, waste management, and remediation services 69 $621 Real estate and rental and leasing 43 $1,720 Agriculture, forestry, fishing and hunting 38 $2,460 Arts, entertainment, and recreation 34 $254 Finance and insurance 27 $397 Manufacturing 26 $1,161 Wholesale trade 20 $765 Accommodation and food services 14 $354 Educational services 12 $89 Utilities D D Information D D

Source: US Census, Non Employer Statistics, 2009 Agriculture is another area to consider when accounting for economic activity. The USDA’s Census of Agriculture mostly recently completed in 2007 shows Wadena County at 657 farms, which was down 10 percent from 2002. The county had fewer acres in farmland as well, with 151,212 acres total. The average size of farms came in at 230 acres, slightly higher than in 2002. Value of sales amounted to $39.9 million and averaged $60,798 per farm. Government payments totaled $1.4 million and averaged $3,613 per farm, a noticeable increase from 2002. Chart 2-3 shows the 2007 US Census of Agriculture numbers for Wadena County land in farms.


Chart 2-3: Wadena County Farm Size and Type of Land in Farms

Source: USDA, 2007 Census on Agriculture, Wadena County Unemployment rates in Wadena County remained higher than regional, state, and national rates until recently, as shown in chart 2-4. The county came in just under the US level in 2011 at 8.8 percent. The county had an estimated 571 people unemployed that year, which is up from ten years ago. The graph below shows unemployment growth from the end of the 2001 recession to 2011. The recent recession maxed out unemployment rates in 2008 and 2009 for all areas, and is slowly coming back down. Spikes in unemployment in the area are connected to the industries with recent employment losses, as shown in the previous tables. Chart 2-4: Unemployment Rate Comparison

Source: MN DEEP, LAUS, Annual Average Unemployment Rate

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2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

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WadenaCoEDR 5

MN


Regional wage scales by occupational grouping is another way to assess the local labor market. In rural areas like Menahga and Wadena County, wages are often lower than state, national, and even regional markets. The North Central Region includes companies and organizations in Cass, Crow Wing, Morrison, Todd, and Wadena Counties. Below is a breakdown of the occupational wages in the region. The region had 58,250 estimated jobs paying an average of $17.45 an hour. The region had lower than US and MN level average hourly wages for all occupational groupings except for the Personal Care and Service and Farming, Fishing, and Forestry categories. Table 2-8: Regional Occupations and Wage Comparisons Occupation Grouping Area Employment

Average Hourly Wage

Total, All Occupations

North Central Region 58,250 $17.45Minnesota 2,595,450 $22.48U S 128,278,550 $22.03

Management North Central Region 2,350 $38.86Minnesota 149,220 $51.25U S 6,183,820 $52.23

Business and Financial Operations

North Central Region 1,870 $25.20Minnesota 146,120 $31.12U S 6,178,070 $33.43

Computer and Mathematical

North Central Region 580 $28.50Minnesota 81,240 $37.24U S 3,406,720 $38.34

Architecture and Engineering


Life, Physical, and Social Science


Community and Social Services


Legal Occupations North Central Region 260 $29.69Minnesota 17,200 $45.53U S 1,002,330 $47.92

Education, Training, and Library


Arts, Design, Entertainment,

Sports, and Media


Healthcare North Central Region 3,670 $34.63


Practitioners and Technical

Minnesota 153,140 $37.39U S 7,514,980 $35.43

Healthcare Support North Central Region 2,710 $11.73Minnesota 95,650 $13.57U S 3,954,070 $13.30

Protective Service North Central Region 1,120 $19.40Minnesota 43,370 $20.37U S 3,202,500 $20.76

Food Preparation and Serving Related


Building and Grounds Cleaning and Maintenance


Personal Care and Service


Sales and Related North Central Region 5,560 $13.67Minnesota 267,270 $18.86U S 13,646,450 $18.32

Office and Administrative

Support


Farming, Fishing, and Forestry

North Central Region 120 $14.93Minnesota 4,910 $13.70U S 409,590 $11.76

Construction and Extraction


Installation, Maintenance, and

Repair


Production Occupations


Transportation and Material Moving


Source: MN DEED, OES, Wage Data from 1Q 2012, Employment Data from 2011


Chapter III: BR&E Survey Results, Strategies, and Potential Projects

This chapter presents survey results from the 53 businesses visited by the Menahga BR&E Leadership Team, Task Force, and Volunteer Visitors from October 2011 to March 2012. The chapter begins by describing the types of businesses visited and their characteristics. General survey results are highlighted and discussed. The chapter then introduces three strategies for addressing the issues and opportunities identified by the businesses in the survey. Under each strategy, the survey results relevant to that strategy are reported and a set of potential local projects is given. The potential local projects were developed by the author based on feedback from the Campus Research Review meeting and on general economic development theory and practice. University of Minnesota faculty and Menahga BR&E Task Force members participated in the Campus Research Review meeting hosted at the University of Minnesota on April 12, 2012. The potential local projects are suggestions for meeting business concerns and community needs for the Task Force to consider. The final priority projects will be selected and developed at the June 5, 2012 retreat of the Menahga BR&E Task Force. The Task Force might use the suggested projects, they might modify them, or they might adopt new projects developed locally. By the end of the Task Force Retreat, the Menahga BR&E Task Force will have selected three to five projects to move into implementation. Other projects will be handled if time and resources permit.

Characteristics of Businesses Visited

Participants in the Menahga BR&E program visited 53 businesses. The Menahga Task Force used a comprehensive method to select businesses targeted for visits. The team assembled as complete a list of businesses in the Menahga area as possible. Businesses did not have to be within the city limits to be visited. The Task Force then eliminated businesses that were both: 1) remote from the city limits and 2) extremely small in nature. Following this process, the Task Force had a list of 103 businesses. The Task Force set the goal of visiting all the businesses on this list. Of the 53 businesses visited, 90 percent are locally-owned (see Chart 3-1). Five percent are not locally-owned. Interestingly, 19 percent of the surveyed businesses reported moving to Menahga from another community. Menahga attracted businesses from Wadena, Sebeka, Greely, Park Rapids, St. Cloud, New York Mills, and Minneapolis. Just over one-quarter of the businesses have multiple locations, primarily in northern Minnesota.


Menahga visited a breadth of businesses representing various industries in the city. The businesses most commonly represented in the survey are “other services”. Other frequently visited businesses operate in the retail trade and manufacturing industry. The Menahga Task Force did not visit any agricultural operations, government institutions, or wholesale trade businesses. A full listing of the industries visited is shown in Chart 3-2.

Yes89%

No5%

No Response6%

Chart 3‐1: Is Your Business Locally Owned?

Other Services

Retail Trade

Manufacturing

Food & Beverage

Construction

Transportation & Utilities

Finance & Insurance

Lodging

Other

Tourism & Recreation

Mining

Education

0 2 4 6 8 10 12 14

Number of Businesses

Chart 3‐2: What Industry Classification Best Describes Your Business?


Surveyed businesses in Menahga currently employ 852 individuals. This is up slightly from three years ago, when businesses employed 846. The survey data indicates that most businesses in Menahga are small businesses, employing on average 6.5 full-time staff, 6.5 part-time staff, 6.9 seasonal hires, and 6 temporary hires. Three years ago, businesses reported no temporary employment. Economists have predicted with the slow economic recovery that businesses would hire more part-time and temporary workers until they feel certain the economy is improving.

Table 3-2 shows total full-time, part-time, seasonal, and temporary employment. Total full-time employment has increased by 10 jobs over three years earlier. Part-time and seasonal employment dropped by an equal amount. Businesses are also reporting using temporary employees. Table 3-2: Surveyed Business Employment: Total by Type Full-Time Part-Time Seasonal Temporary Currently 472 298 76 6Three years ago 462 302 82 0 Employment data can also be analyzed by industry category. Chart 3-3 shows employment by industry broken down by employment type. Businesses classified as “other” reported the highest total number of employees in the survey. The “other” category includes all businesses that defined themselves as other, plus businesses from industries that had only one business responding (education and mining). The manufacturing businesses responding to the survey reported the highest total number of full-time employees. The businesses providing “other services” employed the most part-time employees. Not surprisingly, the service industries as a whole tend to rely more on part-time employees; the manufacturing, finance and insurance, and transportation and utilities industries more on full-time employees; and the construction, retail trade, and tourism/recreation industries on seasonal/temporary individuals.

1 The trimmed mean is calculated by removing the highest reported number and the lowest reported number and then averaging. This helps to remove any major distortions that might be in the data due to the presence of outliers.

Table 3-1: Surveyed Business Employment: Total and Trimmed Average by Type Total Employees Trimmed Average Number of Employees Per

Business1 Full-Time Part-Time Seasonal TemporaryCurrently 852 6.5 6.5 6.9 6.0Three Years Ago 846 6.2 7.8 7.5 0.0


The median starting wage for all businesses ranges from $7.25 an hour for youth employees to $60 an hour for engineers (Table 3-3). For unskilled workers, the median starting wage is $10 an hour. These rates translate into weekly starting wages for full-time employees of $400 for unskilled workers to $2,400 for engineers. Table 3-3: Median Hourly Starting Wages Paid by Local Businesses Classification Median Wage Engineers $60.00 Professional and Management $23.50 Information Technology $18.00 Temporary and Contract $15.75 Precision Production/Specialty Skills $15.00 Clerical/Secretarial $13.00 Other $11.50 Unskilled labor $10.00 Sales $9.00 Youth Employees $7.25 Slightly under half of the surveyed businesses (42 percent) have no plans for location change in the next three years, see chart 3-4. The most common change being considered is expansion at the business’ current location (19 percent of businesses). Other changes being considered include selling of the business (11 percent) and expanding at a new

0 50 100 150 200 250 300

Lodging

Transportation & Utilities

Finance & Insurance

Tourism & Recreation

Food & Beverage

Retail Trade

Construction

Manufacturing

Other Services

Other

Number of Employees

Chart 3‐3: Employment by Industry Category

Full‐time

Part‐time

Seasonal/temporary


location (8 percent). When asked why the business was considering downsizing, selling, moving or closing, the most frequently selected responses were retiring (13 percent), high local taxes (8 percent), and high state taxes (4 percent).

Overall, the interviewed businesses are satisfied with their current labor force, as shown in chart 3-5. When asked to rank their employees with respect to their attitude towards work and their productivity, Menahga employees earned high marks. On a scale where 5

0 5 10 15 20 25

Other changes

Downsizing

Moving

Merging with or acquire

Expanding, new location

Selling

Expanding, this location

None of the above


Chart 3‐4: Are You Currently Considering?

Fair = 310%

Above Average = 438%

Excellent = 552%

Chart 3‐5: Rate Employees Attitudes Towards Work

Average = 4.42


equals “excellent” and 1 equals “poor”, the average rating for attitude towards work was 4.42 (see chart 3-5). The average rating for productivity was 4.35. No business selected “below average” or “poor” on either measure. Finally, businesses shared their opinion of Menahga as a place to do business and as a place to live. On average, businesses feel Menahga is a better place to live than to do business, which is common in a University of Minnesota BR&E. Given a scale where 5 equals “excellent” and 1 equals “poor”, the city as a place to conduct business earned an average score of 3.58. As a place to live, the city earned a 4.02.

Chart 3-6 depicts the responses to the inquiry regarding the county as a place to do business. Forty-three percent of businesses assigned a score of “fair” to the question. Thirteen percent of businesses said it was “excellent” while six percent said “below average”. The average score was 3.58 or “fair”. In comparison, non-metro counties that have previously participated in University of Minnesota BR&E’s have assigned an average of 3.83 to this question. Thus, Menahga businesses gave scores that are below the average rural community.

Below Average = 26%

Fair = 343%

Above Average = 438%

Excellent = 513%

Chart 3‐6: What Is Your Overall Opinion of Menahga as a Place to Do Business?

Average = 3.58


Strengths, Weaknesses, Opportunities, and Threats During the Campus Research Review meeting, participants were asked to look critically at the survey results and identify any strengths, weaknesses, opportunities, and/or threats in the data. Overall, quality of life and place shine in Menahga. Businesses report strengths in the city’s natural amenities, the strong K-12 education system, the high quality nursing facility, and low crime rates. Other strengths for the city include a continued growth in population despite trends of population decline in rural Minnesota, strong connectivity and internet usage, and ease of highway access. In terms of jobs and economic growth, businesses are not expecting to downsize and report a potential increase in demand for precision, unskilled, and professional/management positions. The business survey did reveal potential for improvement in the community. Businesses are concerned about tax rates and in particular water and sewage rates, which have risen in the last three years. Businesses also report that transportation is an issue, with limited access to rail and air transportation. Finally, businesses indicated that access to employee training and education is an issue. As a community, the Task Force noted retirements by existing business owners and a general feeling of maintaining the status quo, as opposed to looking for growth, as potential areas to address. Opportunities identified by the Campus Research Review panel include the attractiveness of Menahga as a place to live, the potential to capitalize on online sales and marketing, and tourism. Retail improvements and lodging facility expansion/development could also be opportunities in the city. Competition for employees and for retail customers are potential threats for Menahga. Business retirements, tax rates, and complacency were all identified by the panel as additional threats. After identifying strengths, weaknesses, opportunities, and threats, the Campus Research Review panel then suggested potential projects that might be undertaken to address these issues. Those potential projects are incorporated, where appropriate, into the remainder of this report.


Overview of Business Retention and Expansion Strategies

Profits are the key to the retention and expansion of businesses. A community may be a nice place to live or raise a family, but business owners must make a profit in order to remain in business. Loyalty to the community alone cannot keep businesses in a community. In a free market economy, such as the United States, making a profit is the responsibility of business owners and managers. Government and community groups cannot singularly make a business profitable. However, to the extent that government and community groups can influence the business environment in their community, they can help businesses survive and grow. The next section of this report details three strategies and twenty-five potential projects Menahga community members can consider undertaking to help businesses become more profitable and therefore remain in and contribute to the community. The potential projects included in this report are intended to be ideas the community can consider during its Task Force Retreat on June 5, 2012. They were developed by the author using projects suggested at the Campus Research Review meeting and on standard economic development theory and practice. The projects reflect the results of the business survey. None of the projects included in this report will address all of the businesses’ concerns or serve as a key to prosperity for all businesses and the community. However, they are all feasible options that can help strengthen the business sector and the local economy. Once the Task Force has selected the projects it wishes to pursue, the Menahga BR&E program will move into implementation. Implementation will require collaboration among various sectors in the community. This collaboration is a benefit in itself to the local businesses since it provides a forum for addressing important issues, efficiently links businesses to policy makers, helps minimize the duplication of services, and helps inform a cross-section of the community about economic and business issues.


Business Retention and Expansion Strategies for Menahga

1. Improve Labor Force Availability Through Enhanced Recruitment and Training Opportunities

2. Assist Local Businesses via Strengthened Retention Efforts and Infrastructure Development

3. Improve Retail Trade and Tourism Opportunities in Menahga Process for Setting Priorities For each of the above strategies, we will use the following process at the Menahga BR&E Task Force Retreat on June 5, 2012:

1. Survey results from the BR&E business visits will be reviewed 2. Task Force will review the suggested projects for responding to the businesses’

concerns 3. Task Force members will nominate projects they feel fit the local area the best

(including new suggestions or modifications of the potential projects in this report)

4. After final discussion, each Task Force member will vote for three projects.


Menahga BR&E Strategy One: Improve Labor Force Availability Through Enhanced Recruitment and Training Opportunities Overview of the Strategy Businesses owned and operated by skilled, well-trained individuals can achieve a greater level of efficiency. This efficiency can then translate into higher productivity and eventually higher profits. In addition, a qualified pool of applicants for job openings can ease the costs of hiring and training for businesses. Qualified applicants can be recruited to the area or current employees can be trained to increase efficiency. Businesses, and communities, have an incentive to establish and sustain a qualified employment pool. Survey Results Related to the Strategy As businesses seek to grow and expand following the end of the economic recession, they will be looking to hire new employees. The survey results reflect this, indicating that businesses do intend to increase hiring in the next three years in critical positions. Nineteen percent of the surveyed businesses plan to hire in the next three years. They expect that 66 new jobs will be added to meet those hiring needs. Businesses indicated the types of employees most in demand will be precision production and specialty skill workers, professional and management workers, and unskilled laborers, see table 3-4.

Table 3-4: Do You Expect the Number of Employees You Have in Each of the Following to Increase, Decrease, or the Stay the Same Over the Next Three Years? Increase Stay the

Same Decrease By How

Many? Precision production/specialty skills 13% 28% 2% 33Unskilled labor 11% 40% 2% 10Professional/management 13% 38% 0% 5Clerical / secretarial 9% 42% 2% 4.5Sales 8% 34% 0% 3Information technology 6% 25% 0% 1Youth employees 4% 30% 0% 1Engineers 2% 25% 0% 0Temporary/contract employees 4% 26% 0% 0Other 0% 21% 2% 0

Currently, surveyed businesses are generally satisfied with their workforce. On a scale where 1 equals “poor” and 5 equals “excellent”, the surveyed businesses rated current employees’ attitudes towards work an average of 4.42 and productivity a 4.35. These scores are both above the average when compared to other previous University of Minnesota BR&E communities. However, when asked to expound on why they have trouble recruiting, 17 percent of businesses said it was due to “inadequate labor skills” and 15 percent due to “poor work attitudes”.


Businesses were questioned about their ability to recruit employees in a series of different employment categories. The responses are depicted in chart 3-7. The most frequently cited employment categories of concern were professional/management and precision production/specialty skills. Also frequently selected were other, sales, and temporary and contract employees. When asked to elaborate on the “other” category of employees, businesses included accounting, commission-based, self-employed, and part-time bartender.

Businesses further identified the most important reasons for their recruiting problems. The most frequently selected reason for recruiting problems was inadequate labor skills followed by poor work attitudes and competition from other employers (see chart 3-8). The responses to this question indicate how the Menahga BR&E Task Force may be able to assist businesses in recruiting employees. The “other” responses included: lack of employment opportunities for spouses, shopping, a lack of motivation, and the work environment.

0 1 2 3 4 5 6 7 8

Clerical/secretarial

Engineers

Youth employees

Unskilled labor

Information technology

Temporary/contract

Sales

Other

Precision production/specialty skills

Professional/management


Chart 3‐7: Does Your Business Have Problems Recruiting the Following?


Survey results reveal that Menahga has several key strengths that could be marketed to potential employees. Natural amenities are a clear advantage for Menahga. Businesses were asked to evaluate a list of community features as having a positive (+2), negligible (0), or negative (-2) impact on their business. Hunting (1.31), fishing (1.25), seasonal tourism (1.19), and natural environment (1.08) received the highest ratings. When asked which community services affected the desirability of Menahga as a place to do business, the K-12 school system, nursing home, and assisted living facility were rated highest. In terms of community factors that make Menahga competitive, businesses gave high marks to accessibility of high speed internet, availability of land, and cost of land. Survey results also indicate a need for additional training. Thirty-six of the 53 businesses surveyed (68 percent) responded that they had a need for one of the 32 training topics listed on the questionnaire. Common training categories included sales and marketing. Further, 32 percent of businesses indicated there were major technical innovations on the horizon for their industry. These changes will require retraining of the labor force for 21 percent of the surveyed businesses. Table 3-5 reports the five most commonly selected training topics sorted by the number of businesses interested. Twelve businesses were interested in sales training, eleven in marketing and in web design and maintenance, ten in customer service, and nine in employee management training.

0 1 2 3 4 5 6 7 8 9 10

High cost of training employees

Workers cannot pass screening

High wage rates for labor

Other

Workers will not migrate

Competition from other employees

Poor work attitudes

Inadequate labor skills


Chart 3‐8: Most Important Reasons for Recruiting Problems?

(Select All That Apply)


Table 3-5: Top Training Topics Requested Sorted by Number of Businesses Selecting Topic Number of Businesses

Interested Number of People Needing

Training Sales 12 27Marketing 11 31Web design & maintenance 11 11Customer service 10 42Employee management 9 23 Table 3-6 reports the five most commonly selected training topics by the number of people needing the training. Businesses report 73 employees could use diversity training, 48 interpersonal communication training, and 42 customer service training. Table 3-6: Top Training Topics Requested Sorted by Number of People Needing Training

Topic Number of People Needing Training

Number of Businesses Interested

Diversity 73 3Interpersonal communication 48 5Customer service 42 10Marketing 31 11Sales 27 12 Businesses also reported on the type of training they currently use. The results are depicted in Chart 3-9. The most common training method (38 businesses) is in-house training, which includes one-on-one training by a supervisor or co-worker and training department classes. Self-taught training, which includes manuals, videos, and training materials, is used by 27 businesses. Sending employees to workshops is the third most used training method.


Potential Projects for Local Consideration The following projects are designed to help the Menahga BR&E Task Force enhance recruiting and training opportunities in Menahga. These projects were developed by the author based on the Campus Research Review meeting, general economic development theory and practice, and responses to the survey. The Task Force may choose to adopt one or more of these projects, modify one or more of the projects, choose to do nothing, or design an entirely new project to address these issues.

1. Strengthen Connections among Menahga Businesses and local Minnesota State Colleges and Universities Campuses.

While Menahga is not home to a Minnesota State College and Universities (MnSCU) campus, there are several campuses within reasonable driving distance of the city. Minnesota State Community and Technical College (M State) has campuses in Wadena, Detroit Lakes, Moorhead, and Fergus Falls. Central Lakes College has campuses in Brainerd and Staples. Combined with online learning opportunities, Menahga has the potential to access resources of the MnSCU system. These resources could be used both for recruitment and for training. One training resource available through MnSCU and the Department of Employment and Economic Development (DEED) is the Minnesota Job Skills Partnership. The Job Skills Partnership provides funding for individual businesses to connect with MnSCU institutions to offer customized training opportunities. To learn more about the Job Skills Partnership, the Task Force can visit:

0 5 10 15 20 25 30 35 40

On the Job Training

Other

Public Vendor

Apprenticeship

Private Vendor

Distance Learning

Send to Workshops

Self‐taught

In‐house


Chart 3‐9: How Do You Currently Train Your Employees?


http://www.positivelyminnesota.com/All_Programs_Services/Minnesota_Job_Skills_Partnership_Program/index.aspx or contact the Minnesota Job Skills Partnership Office at 651-259-7514 or by email at [email protected]. For recruitment, the Task Force may wish to investigate opportunities to recruit on local campuses. For instance, many college campuses have an employment office that may post job openings. They may also host career and job fairs. The City of Menahga could consider sponsoring a booth at a job fair and encourage local employers to attend. Business resources available through MnSCU can be found via the MnSCU “Open for Business” portal. This portal is designed to help Minnesota businesses connect with MnSCU. The portal can be accessed via the web at https://mnscubusiness.org. Potential partners for this project include DEED, Minnesota State Community and Technical College, Central Lakes College, and the Menahga Civic and Commerce Association. A potential resource at M State in Wadena is Joanne Bokinskie (218-631-7811, [email protected]).

2. Connect Menahga Businesses with Minnesota Workforce Centers Minnesota Workforce Centers help job seekers find employment, help businesses find workers, and help people at any stage find and explore career opportunities. Workforce and business service specialists can help businesses find, and train, the right workers for the job. Businesses can use Minnesotaworks.net for free to advertise open positions. There are Workforce Centers located in Fergus Falls, Brainerd, Bemidji, and Moorhead. The Task Force could organize for a community-wide business event to learn about Workforce Center resources. The Task Force could arrange for a business service specialist to visit Menahga and present to the business community. The Task Force would engage the speaker, find a location, invite local businesses, and arrange for refreshments to be served. To learn more about services available to help businesses locate employees, the Task Force could contact Tim Qualley, Business Service Specialist, at (218) 333-8227 or [email protected]. Tim is located in the Bemidji office and works throughout northern Minnesota. He attended the Campus Research Review meeting, so he is familiar with the issues identified in the Menahga BR&E process.

3. Conduct Follow-up Research to Identified Requested Skills The BR&E survey results reflect that current employees of Menahga businesses have good attitudes towards work and strong levels of productivity. However, businesses indicate an impending need for precision production and specialty skilled workers. If the employee base has strong skills, the question becomes, what additional skills will they need?


To answer this question, the Task Force could undertake follow-up research to identify specific skills. A two-pronged approach could be taken to the research. The Task Force could start by examining the wealth of data available at Occupations on Demand. This website, operated by the Minnesota Department of Employment and Economic Development, highlights careers that are currently in demand in the region. The Task Force could enhance this research by visiting with select local businesses to further explore what skills the businesses are seeking. Armed with this information, the Task Force could explore options for offering training related to these skills. Those options may include ideas outline in potential projects 1-3 of this report. For assistance in completing this project, the Task Force could consider employing a University of Minnesota intern through the Center for Urban and Regional Affairs (CURA). The Community Assistantship Program provides applied research to community organizations, citizen groups, and government agencies in Greater Minnesota. The program would provide 200 hours (260 during the summer) of student time to research a particular issue in the community. A student could review the Occupation in Demand data and follow-up with local businesses to create an inventory of skills needed in Menahga, and even the region. For more on CURA and the Community Assistantship Program, the Task Force can visit: http://www.cura.umn.edu/assistance/government. To learn more about Occupations in Demand, the Task Force can go to http://www.positivelyminnesota.com/apps/lmi/oid/. Partners for this project might include DEED, business owners, and the Menahga Civic and Commerce Association.

4. Use Research-Based Strategies to Actively Recruit Professionals and Families to Menahga

Research by the University of Minnesota and by the University of Nebraska points to a “brain gain” phenomenon in rural America. Population statistics document that high school graduates are leaving rural America, which is often distressing to communities. For instance, chapter II of this report shows the population projections for all working age, age brackets as declining over the next couple decades. This accords with the decline of the baby boomer generation in the workforce. However, recent examination of population data reveals that individuals in the 30-44 age cohort are starting to move into rural areas. Menahga, with its high quality of living and abundant natural amenities, is suited to attract these workers. Ben Winchester, of University of Minnesota Extension, recently published “Regional Recruitment: Strategies to Attract and Retain Newcomers”. This document lays forth nine strategies rural communities can consider implementing to attract these educated, skilled workers to their region. The strategies are drawn from interviews with local Realtors, focus group interviews, and surveys of newcomers. While newcomers cite the “typical” reasons for moving to outstate Minnesota (such as short commutes and family-


friendly atmospheres), there were a few surprising responses. The surprising reasons included the opportunity to own and operate a business, perceived health benefits, and the ability to reinvent oneself. Strategies for recruitment of newcomers fall into three broad categories. They are: “On the Map”, “Employment”, and “Newcomer Support”. “On the Map” strategies focus on ways to make the region stand out and rise to the top when newcomers are considering moving. Being visible as a community and providing personal connections are among the proposed strategies. “Employment” strategies focus on ways to help newcomers use and enhance their skills. Suggestions include building connections to improve telecommuting, building on newcomer skills, and integrating succession planning. “Newcomer Support” strategies aim to provide support to newcomers soon after they arrive in the region. The Task Force could review these strategies and select a strategy for implementation. For additional support, the Task Force could turn to Ben Winchester, University of Minnesota, Extension who conducted the referenced research. He can be reached at 320-589-5033 or [email protected]. His report can be viewed at: http://www.edacenter.org/downloads/Ben_Winchester_Report_2.pdf. Task Force members may also wish to speak with Dawn Hegland of the Upper Minnesota Valley Regional Development Commission (UMVRDC). The UMVRDC was an active partner in this research. Other community members who may wish to be engaged in this project include local Realtors, chambers of commerce, the regional development commission, and employment agencies.

5. Coordinate Recruitment and Advertising Efforts

Employee recruitment issues are not unique to one business in Menahga. All businesses within the city face the same set of potential challenges. At the same time, Menahga has a wealth of positive attributes to attract potential employees. Putting these positive attributes together into a joint marketing campaign could be helpful to local businesses. The Task Force could consider organizing a recruiting effort. This effort would focus on attracting educated and skilled employees to the region. Potential attributes to be featured include: strong public schools, short and easy commutes, safe small town living, and a beautiful natural environment. All of these items, except the commutes, are highly rated by the visited businesses as key attributes about Menahga. The Task Force could also consider addressing some of the misconceptions about small town life. The BR&E survey identified content (positive attributes) for the marketing campaign. One goal of the Task Force could be to help identify the target audience for the campaign. Would the goal be to try and attract alumni back to their home region? Or to attract students graduating from nearby technical colleges and universities? Or to try and encourage the underemployed in neighboring communities (including the Moorhead and


Brainerd areas) to consider job opportunities in Menahga? Identifying a target market would be a critical task of this project. The marketing effort could be organized and executed using several different methods. It may be possible that local businesses, with assistance from the Task Force, would be willing to take a federated or cooperative approach and take out advertising together. The campaign could include brochures, web content, print, and television copy. A witty YouTube commercial could potentially be effective. Potential partners for the Task Force include: civic and commerce association, school board, local businesses, and the regional development commission.

6. Actively Participate in Events to Education Local Youth and Young Adults about Employment Opportunities

Recruitment efforts can be more successful if a large pool of trained workers is available. Once students graduate from high school, it would be beneficial to local businesses if more of the graduating students remained in the area or were drawn back upon completion of a higher degree. The Task Force could explore ways to be more active in making students aware of employment opportunities in the local economy. Menahga is home to a quality K-12 public school system (as rated by businesses). The Task Force might wish to host events and activities to encourage students to become employed in the community upon graduation or come back once further education has been completed. Events might include a career day or job fair at the high school. The Task Force could host such an event. This would include: coordinating with the school to select a time, date, and place; recruiting businesses to participate; advertising; and encouraging students to attend. Activities might include field trips or visits to local businesses. Students would be encouraged to learn more about the local business community, about the types of businesses in Menahga, about the array of job opportunities available, and about the required skills for these jobs. Once students learn more about their opportunities locally, perhaps they will be more willing to invest in the community and perhaps return when they have acquired additional qualifications. If local businesses are interested in this project, perhaps a few would be willing to host student interns, either after school or during the summer. This would also strengthen ties. Internships also allow employers to know a particular employee better before hiring them permanently. In addition to Task Force members, representatives of the K-12 education system, community education, the local civic and commerce association, and even students could be involved in the planning and execution of this project.


7. Sponsor At Your Service Customer Training

Businesses that participated in the survey indicated a need for training in customer service. Given this demand, the Task Force could consider sponsoring At Your Service training from University of Minnesota Extension. At Your Service training is provided at a variety of levels of community effort. The basic training is a ½ day event that is aimed at front line workers and service providers in the community. The community can go deeper into customer service training efforts and sponsor a community-initiative. The community-initiative program is a one-year effort that brings the entire community together to improve customer service across the community. To learn more, the Task Force can visit http://www.extension.umn.edu/AtYourService/. Task Force members could coordinate a community-wide effort to bring this program to Menahga. This would include organizing volunteers and arranging for the training events to take place. Support could come from local Extension personnel, such as Ryan Pesch, Community Economics Extension Educator.

8. Assist in the Provision of Adult Basic Education Classes Surveyed businesses indicated a future need for unskilled workers. While workers may not need to possess a specific skill, potential employees will need to have basic educational skills. The Minnesota Department of Education offers some adult education through the Adult Basic Education (ABE) program. While the core program offered is the General Education Development (GED) test, the Adult Basic Education program also offers workforce literacy and basic skills enhancement. Currently, Adult Basic Education is available to citizens of Menahga through a partnership between Minnesota State Community and Technical College and Menahga Community Education. The Task Force could consider ways in which it could enhance and enrich the current offerings. First, while GED services are offered, it is unclear whether or not workforce literacy and basic skills enhancement classes are offered. The Task Force could work to get these classes offered locally. Further, the Task Force could work with local businesses and residents to confidentially enroll students into these classes. For more information on current offerings, the Task Force could call Stephanie Drange at (218) 632-2450 or email her at [email protected].


Menahga BR&E Strategy Two: Assist Local Businesses via Strengthened Retention Efforts and Infrastructure Development Overview of the Strategy Businesses spend a considerable amount of time and resources preparing plans for the future. Both moving and expanding require a business to be proactive. Often, during the planning process, businesses encounter obstacles that make their planned move and/or expansion difficult or impossible. By developing local capacity to assist businesses in these transition periods, communities can increase their ability of retain and grow local businesses. In certain cases, infrastructure may be a limiting factor to growth or continued business. To the extent that communities can remove infrastructure barriers, businesses can be assisted. Finally, some businesses may be reluctant to make change. By fostering an atmosphere where change and growth are valued, the community can encourage business growth. Survey Results Related to the Strategy Surveyed businesses in Menahga express mixed opinions about upcoming plans for change. Sixty-four percent of businesses responded that they had no plans for changes in their operations. However, 58 percent indicated they were considering a change in location. Thirty-eight percent plan to modernize or expand their present building and/or equipment and 32 percent foresee major technical innovations that will affect their company. Chart 3-10 depicts business’ responses to a question regarding their future location decisions. Forty-two percent of businesses (22) are not planning any location change. Nineteen percent are considering expanding at their location. Notably, a quarter of all surveyed businesses are planning to downsize, sell, merge, or move. Eleven percent of businesses are planning to sell, eight percent to add another location, and six percent to merge with or acquire another business. No business is planning to close. When asked why they were considering downsizing, selling, moving or closing, the most common response was “retiring” with 13 percent of businesses selecting this reason. Other common responses were “high local taxes” at 8 percent and “high state taxes” at 4 percent.


As mentioned, 64 percent of businesses are not contemplating changes in the business plan in the next three years. For those businesses that are considering changes in the business plan, the most common type of changes being considered are changes in the product mix and adding or subtracting a product line, as shown in chart 3-11.

0 5 10 15 20 25

Closing

Other changes

Downsizing

Moving

Merging with or acquiring

Expanding ‐ adding another location

Selling

Expanding at this location

None of the above


Chart 3‐10: Are You Currently Considering the Following Location Decision?

0 5 10 15 20 25 30 35 40

Change production technology

Other

Add or subract product line

Change in mix

No Change


Chart 3‐11: Business Plan Changes in the Next Three Years?


Nearly 1/3 of businesses (32 percent) anticipate technological innovations in their industry that will affect their company. Chart 3-12 shows the business responses. When asked in an open-ended question to identify what those changes may be, many responses focused around computer and telecommunications changes. For example, mobile banking, use of smart phones to make appointments, automation, and broadband.

One-quarter of businesses have used technical assistance from local, regional, state or federal programs. They unanimously recommended that other businesses use the resource. Businesses were asked to rate a slate of community services on their role in the desirability of Menahga as a place to do business. The scale used in the question ranged from 1 equaling “poor” to 5 equaling “excellent”. Top ratings were assigned to the nursing home (4.06) and to the assisted living facility (4.04). Meanwhile, low scores were assigned to the public library (2.33), cultural opportunities (2.74), and child care (2.85). It is common in University of Minnesota BR&E surveys for cultural opportunities to receive a relatively low score. Low scores for public libraries and child care are more unusual.

Yes32%

No42%

Unsure17%

No Response9%

Chart 3‐12: Technological Innovations on the Horizon?


Finally, businesses expressed some disgruntlement regarding water and sewer rates in the city. On the slate of community services ratings, water earned a 2.91 and sewer a 3.13, which are relatively low scores compared to other ratings on the survey. Businesses further mentioned the issue when asked “we have covered many issues, please help us set some priorities on how we can help your business or what we should work on to help all of our existing businesses grow and expand”. Six businesses cited taxes and the cost of water and sewer. Businesses were asked “what is the key tipping point preventing you from expanding your business?” Table 3-7 represents the open-ended questions grouped into categories. The most common response from businesses was around the lack of a market or customer base. The second most common responses focused on company specific needs, such as a specific production component. Businesses also cited government (including taxes and regulation) and the economy as reasons for not expanding at this time. Table 3-7: What is the Key Tipping Point Preventing You from Expanding Your Business? General Category Number of Businesses Responding Lack of market or customer base 10Company specific reasons 9Government (including taxes and regulation)

6

Economy 6No need/current situation is good 5Costs 4Finances of company 3Workforce 1 Finally, businesses were asked to “help us set some priorities on how we can help your business or what we should work on to help all of our existing businesses grow and expand.” Thirty-seven businesses (70 percent) provided a response to this question. The most common responses focused on attracting new residents, customers, and foot traffic to the city. One business summed it up this way, “I thought if we could get more age diversity, we could get a big business to employ people.” Other common responses were around the concept of improving and expanding retail, lodging, and eating establishments in Menahga. A summary of the open-ended responses is provided in table 3-8.


Table 3-8: Please Help Us Set Some Priorities on How We Can Help Your Business or What We Should Work on to Help All of Our Existing Businesses Grow and Expand General Category Number of Businesses Responding Attract new residents/customers/foot traffic 12Improve/expand retail, lodging, eating establishments 10Other 8Water/sewer/taxes 7Attract new industry 5Need labor/train labor 3Improvements to Highway 71 and 87 3EDA/Chamber/Tourism 3Develop tourism opportunities 3Improve signs 2 Potential Projects for Local Consideration The following projects are designed to help the Menahga BR&E Task Force strengthen retention efforts and develop infrastructure. These projects were developed by the author based on the Campus Research Review meeting, general economic development theory and practice, and responses to the survey. The Task Force may choose to adopt one or more of these projects, modify one or more of the projects, choose to do nothing, or design an entirely new project to address these issues.

9. Partner with the Menahga Civic and Commerce Association to Counter Business Apathy

Survey responses appear to indicate that Menahga businesses are somewhat apathetic. Many businesses are not planning for any change in their business model. Five see no need to consider expansion or growth. Apathy is defined by Merriam-Webster’s dictionary as the “lack of interest or concern”. Business literature suggests one way to address apathy is to break the normal routine. Therefore, the Task Force may consider partnering with the Menahga Civic and Commerce Association to host events and activities to create excitement and enthusiasm in the business community. Recently, the community of Hugo, Minnesota, reinvigorated its civic and commerce association following its BR&E Strategies program there. The results and enthusiasm have been noteworthy. One suggested technique for creating excitement and enthusiasm would be to host “Eggs and Ideas” meetings. Local business owners and managers could gather for breakfast at a local restaurant. Task Force members could organize a topic for discussion, perhaps chosen from the list of concerns expressed in the survey. The focus would not be on solving particular issues, but rather opening the conversation and encouraging businesses


to suggest creative solutions. If appropriate, the Task Force could invite a local or regional expert in to provide insight. Another suggestion would be for the Task Force to host a motivational business speaker. The Task Force could arrange for the speaker to come to Menahga. If the speaker has written a book, the business community could be encouraged to read the book and come together for a discussion. In addition to Task Force members, the Menahga Civic and Commerce Association, the regional development commission, and local business owners could be resources for this project. The school district may be a strong partner if a motivational speaker is selected.

10. Host Field Trips to Regional Businesses Menahga businesses are part of a larger regional economy. Connecting local businesses to the regional economy and demonstrating the success of other businesses in north-central Minnesota may help to spark enthusiasm with Menahga businesses. The Task Force could consider arranging for Menahga business owners and managers to tour other businesses located in the region. This would give Menahga owners and managers an opportunity to observe what other businesses are doing in the area. Following the tours, the Task Force could consider hosting a panel discussion. Regional business owners could give an overview of their experiences operating in the region and answer questions for Menahga owners and managers. The Minnesota Manufacturing Association, the Central Minnesota Manufacturing Association (in Elbow Lake, MN), the regional development commission, DEED, and countywide economic development professionals may be able to assist the Task Force in planning and execution of this project.

11. Advertise Business Ownership Opportunities As the survey results show, eleven percent of the businesses surveyed are planning to sell, commonly due to retirement. Research by Ben Winchester, University of Minnesota Extension, demonstrates that newcomers to rural areas are interested in business ownership opportunities. In fact, a survey of nearly 100 new residents in West Central Minnesota revealed that one-quarter of those respondents moved, in part, because they could own a business. Menahga has a strong quality of life which could also draw new residents. The Task Force could consider methods to advertise business ownership opportunities. First, the Task Force would need to inventory the businesses that are currently “for sale” or will be “for sale” in the near term. In small towns, there can be a sense of secrecy around business transitions. While respecting business owner confidentiality, the Task Force could speak to business owners about the need to ensure a smooth transition to a new owner and the value of keeping the business operating in the community.


The Task Force will need to investigate ways to advertise ownership opportunities. This might include working with local educational institutions. Students at the high school or collegiate level may be interested in operating their own business upon graduation. It may also include working with entrepreneurial or small business organizations. For example, Minnesota State Community and Technical College offers a “small business management certificate”. Graduates of that program are future business owners. To help with this project, the Task Force could consider working with the Small Business Development Center, local educational institutions, local realtors, and local media outlets.

12. Coordinate the Offering of the “Small Business Management Certificate” in Menahga

Eleven percent of Menahga business owners reported that they are looking to sell their business. For these businesses to remain open and viable in the community, new owners will need to be found. Furthermore, employment data collected from the businesses visited indicate that Menahga businesses are typically small businesses. Finally, the businesses indicated a fair amount of need for training of employees in managerial, sales and marketing and computer skills categories. The Task Force may wish to look at ways to strengthen the skill sets of local business owners. Central Lakes College, with campuses in Brainerd and Staples, offers a small business management program. According to the Central Lakes College website: “The Small Business Management Program is designed for business owners, managers, and key employees who value increased efficiency and improved profitability.” The program is flexible, allowing participants to begin the coursework at any time during the year. The curriculum is designed to help business owners/managers improve their management skills, organization, and operation of their business. The Task Force could explore the possibility of offering the program and coursework in Menahga. The coursework is primarily offered at the business with classroom activities enhancing the experience. If several current or potential business owners/managers enroll in the program, the college may be willing to offer the classroom sessions in Menahga. The program is designed for current business owners, managers, and key employees, however, individuals currently starting a small business may also enroll. Participants in the program may choose from a 12 credit option or a 25 credit option, resulting in the earning of a certificate. For those who wish to continue, there is an option for 39 credit diploma program in Small Business Management. To learn more about the Small Business Management program, the Task Force can visit the Central Lakes College website at: http://www.clcmn.edu/programs/sbm.html.


Potential partners in this project might include Menahga Public Schools, the Civic and Commerce Association, and MnSCU.

13. Meet with Individual Businesses to Address Immediate Concerns and Issues

With 25 percent of businesses planning to downsize, move, sell, or merge; nineteen percent considering expanding in place; and eight percent contemplating adding a new location, businesses in Menahga are indicating the potential need for assistance. As businesses move through these transitions, they will require resources. To the extent that the Task Force can assist individual businesses to identify and access these resources, the Task Force will help ensure a smooth transition for the business and thus help the community. The Task Force may wish to form a special “SWAT” team with the purpose of visiting one-on-one with businesses that indicated a need for assistance (and signed the release waiver) in the BR&E interview process. The Task Force should be intentional in forming the team. The team should include a person who specializes in workforce issues, someone with economic development experience, a representative from the school system, and a person with ties to the city (either an elected or appointed official). Members of the team could meet with the businesses to follow-up on stated needs and concerns. Care should be taken to match the team members selected for specific visits with the business’ concerns. Team members should come to the meeting prepared with materials and resources related to the identified concerns. Unlike the BR&E visits which focused on learning about the business and covered a wide range of topics, these meetings would focus on one or two issues, go in-depth with the business, and aim to help the business solve an identified issue. The Minnesota Department of Employment and Economic Development (DEED) has often been a strong partner in these kinds of activities. Local economic development authority members and city officials would also be good partners.

14. Expand on Success of Nursing Home/Assisted Living When asked to contemplate a list of community services and “rate the desirability of this location as a place for your company to do business”, businesses in Menahga assigned the highest overall scores to the nursing home and assisted living facility. This indicates that Menahga businesses feel the presence of the nursing home and assisted living facility enhances the community. It also speaks of the relative success of the facility and the respect it has earned in the community. The Task Force might look at ways to leverage this success and respect to increase enthusiasm in the business community. A relatively small project related to this might be to encourage the nursing home and assisted living facility’s management team(s) to talk about their successes. This could be done in a variety of ways. The local paper might run a story highlighting the nursing


home and assisted living facilities activities. Or the Task Force might host a panel discussion and bring the team in to share their stories. The Task Force could also look at ways to capitalize on the success of the facilities by encouraging them to reach out into the community. For example, some communities have designed programs when seniors and students in the schools pair to share knowledge. An older adult may teach a student to knit and in return the student helps the senior with computer problems. This would strengthen community ties. Partners for this project might include the local media, the public schools, and the nursing home and assisted living facility.

15. Explore Methods to Expand Economic Development Efforts Menahga is a relatively small community. Given city budgets and resources, devoting a full-time staff person to economic development efforts may not be feasible for the City of Menahga. However, businesses indicate they would appreciate access to professional economic development assistance. In open-ended responses, one business asked “who is the local economic developer?” The Task Force could explore options to expand their connections to economic development professionals and services. Some cities have had success in hiring an intern to specifically address economic development issues. The City of Hugo hired an intern to assist in executing the business retention and expansion program. Upon completion of the program, the intern was hired full-time in their parks department. Another option may be to tie more strongly into regional economic development efforts. For example, the county or other regional economic development organization may have an economic development staff person. The Task Force could meet with that person and share the results of the Menahga BR&E. The Task Force may wish to share the BR&E summary report with other regional economic development organizations, such as the Region Five Development Commission and the Initiative Foundation, as this report will highlight what businesses in the city need. This may help those regional organizations focus their efforts and provide partnership opportunities with the city. Partners in this project may include county officials, the regional development commission, and DEED.

16. Provide Education Around Sewer and Water Rates Businesses cited concerns about rates for sewer and water services in Menahga. In speaking with Task Force members, rates have increased in recent years based on a need for higher rates. It may be that businesses need further explanation of the need and reasoning behind the rate increases.


The Task Force could explore options for further educating businesses and the public about rate increases. A simple way to do this might be through educational pieces in the local paper and through other local communication channels. The Task Force may consider authoring a short article for the local paper. If the city has a city newsletter, an article could be published there as well. If the Task Force feels the issue needs further clarification, they could consider hosting a Town Hall meeting on the subject. This would be an opportunity for city staff and city council members to explain the rate changes and the justification. City officials could make a short presentation on current rates, recent rate changes, and the need for the changes. A question and answer time could follow. In addition to participation by city staff, the city council, and planning and zoning commissioners may also wish to listen to public feedback regarding water and sewer rates. Clear communication with businesses would need to occur to ensure this meeting is conducted as a listening session for both businesses and the city. The Menahga Planning and Zoning Commission, along with City of Menahga staff would be critical partners in this project.

17. Enhance Library Services in Menahga When asked to contemplate a list of community services and “rate the desirability of this location as a place for your company to do business”, businesses in Menahga assigned the lowest overall score to the public library. This is not surprising as Menahga does not have a public library. It is served by a mobile library that operates under the Kitchigami Regional Library system. According to their website, the mobile library is scheduled to visit Menahga on two Tuesdays per month from April to August. There is a branch library located in Wadena. The Task Force may wish to explore options for enhancing the library services currently located in Menahga. With tight county and city budgets, locating a permanent, physical library in Menahga would be a challenge. Many libraries in Minnesota are supported by strong “Friends of Library” organizations. These organizations raise money to support library services and advocate in the community on behalf of the library. The Task Force may consider working with interested community members to form a Friends of the Library organization. Another approach might be to encourage interested citizens in Menahga to join the Friends of the Library in nearby Wadena. This organization might be willing to work with people in Menahga. Another approach might be for the Task Force to approach the Kitchigami Regional Library services about the expansion of services in the city. With increased use of the internet and wireless devices, more and more people are using alternative ways to access the library. The Task Force could speak to the library system regarding ways to increase service via their website. Promotion of services is also important. If more online resources are developed, the Task Force could work to advertise the availability of these services to the businesses in Menahga.


Strong library supporters would be essential to this project. The librarian/media resource person at the Menahga Public Schools would be a good partner. Community education may also be willing to work on this project.


Menahga BR&E Strategy Three: Improve Retail Trade and Tourism Opportunities in Menahga Overview of the Strategy Businesses thrive in attractive, accessible communities. These communities draw resources the businesses require, whether those resources are quality employees, tourists, or desired goods and services. Businesses need these resources to be successful and profitable. By working together to position Menahga as an attractive, accessible community, the Task Force can assist businesses in prospering. Survey Results Related to the Strategy The surveyed Menahga businesses identified many community strengths. When asked “do the following community features have a positive impact (+2), negligible (0), or negative impact (-2) on your business, businesses in Menahga rated hunting, fishing, and seasonal tourism as the most influential (1.31, 1.25, and 1.19 respectively). See chart 3-13.

‐0.40 ‐0.20 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40

Freeway access

Lodging facilities

Distance from metro

Historic buildings

Meeting facilities

Community diversity

Arts and cultural events

Eating estabilishments

Activities for children/teens

Museums/historic sites

Farm landscapes

Festivals or events

Campgrounds

Public beach

Parks

Small town atmosphere

Natural environment

Seasonal tourism

Fishing

Hunting

Chart 3‐13: Do the Following Community Features Have a Positive Impact (+2), Negligible (0), or Negative Impact (‐2) Effect on Your

Business?


Community features with negative impacts on local businesses include freeway access (-0.17), lodging facilities (-0.16), and distance from large metro areas (-0.08). Historic buildings and meeting facilities also ranked fairly low. A follow-up question asked businesses to select three of the community features to be the focus of a marketing image for the community. The most commonly selected features were small town atmosphere, seasonal tourism, hunting, and the natural environment. Eighty-three percent of businesses think promoting the area to visitors is in the best interest of their individual business. Businesses were also presented a series of questions about the retail industry in Menahga. Businesses were asked, on a scale where 1 equals “poor” and 5 equals “excellent”, to rate the overall atmosphere of the local shopping area. As shown in chart 3-14, the average rating was 2.92, just below “fair”. The majority of businesses rated the shopping area as “fair”, a few did assign a score of poor, while no businesses rated it as excellent.

Businesses were provided with a list of retail factors and asked to rate each one of the factors. The most highly rated factors were technology infrastructure (3.96), feeling of safety (3.73), and knowledge and friendliness of local personnel (3.65). The lowest scores assigned were all related to hours of operation – evening hours (2.34), coordinated

Poor = 16%

Below Average = 2

12%

Fair = 366%

Above Average = 4

16%

Chart 3‐14: Rate the Overall Atmosphere in Your Local Shopping Area

Average = 2.92


store hours (2.47), and weekend hours (2.49). Other factors receiving low scores include group advertising (2.55), variety of businesses (2.64), and variety of merchandise (2.67). Businesses were then asked to select up to three of the retail factors that were most important to be improved. The most frequently selected answers were variety of businesses, exterior atmosphere, and special events and promotions. As a follow-up to the need for additional businesses and industries in Menahga, the survey asked participants to select three businesses from a list of fourteen that the participant would like to see attracted to Menahga. Clothing and apparel stores were the most common choice, selected by 55 percent of businesses. Other top choices include lodging (51 percent) and companies integral to the supply chain (38 percent). Finally, businesses were asked about internet availability, accessibility, and use in Menahga. The majority of businesses in Menahga are using the internet in their operations. Eighty-seven percent of businesses have internet service. The majority are on fiber and DSL telephone connections. A small percentage of businesses are using WiFi and cable. See chart 3-15. Businesses are generally satisfied with their current internet service (85 percent).

Provided with a list of community factors, businesses were asked to rate the factors as “more favorable, less favorable, or about the same as your direct competitors from other

None8%

Cable5%

DSL telephone33%

T‐11%

Fiber39%

WiMAX1%

WiFi12%

Satellite1%

Chart 3‐15: Which Type of Internet Service Does Your Business Use?


communities” on a scale from 1 to 5. Five is equal to “much more favorable” and one equal to “much less favorable”. Accessibility of high speed internet was the most highly rated factor which an average score of 3.47. Potential Projects for Local Consideration The following projects are designed to help the Menahga BR&E Task Force improve retail trade and tourism opportunities. These projects were developed by the author based on the Campus Research Review meeting, general economic development theory and practice, and responses to the survey. The Task Force may choose to adopt one or more of these projects, modify one or more of the projects, choose to do nothing, or design an entirely new project to address these issues.

18. Collaborate with Local Businesses to Offer a “Groupon” The retail factors of store hours, advertising, and prices all received relatively low scores from surveyed businesses. One way the Task Force may address these concerns is to collaborate with local businesses to offer a “Groupon”. Groupon is a company name, derived from the words group and coupon. The basic premise of a groupon is that the customer gets a deal-of-the-day, discounted certificate valid for a good or service. While the term is specific to a company, the idea has caught on with many online advertising firms participating in one way or another. For example, the (Minnesota) Star Tribune runs “Steals Daily Deals”. The Task Force may wish to collaborate with Menahga businesses to assemble a bundle of goods and services that could be marketed as a groupon. An example might include a night at the local bed and breakfast combined with a boat rental and a box lunch from the local café. Or it might be a cross-country ski outing complete with ski rentals, hats/gloves from the local retailer, and a meal at a restaurant. The idea is to create a package that would attract new tourists into the area at a discounted price. The Task Force would also need to explore where and how to advertise the groupon. There are specific websites that target specific markets (such as Groupon) and there are more general website that advertise (such as the Star Tribune). Or, perhaps the Task Force wishes to work with local media outlets. The Task Force could also consider working with resorts in neighboring communities, perhaps advertising packages to their guests. In addition to Task Force members, local media outlets, retailers, and the civic and commerce association would be potential partners for this project.

19. Arrange a Visit with the Minnesota Design Team Surveyed businesses indicated some concerns about the overall appearance and atmosphere of the shopping area in Menahga. As mentioned above, the overall shopping


atmosphere was rated as below average to fair. To address this, the Task Force could consider hosting a visit with the Minnesota Design Team. The Minnesota Design Team works to translate a community’s unique sense of place and values into sustainable ideas the area can implement. The team believes that physical planning and design can be an integral component of a community’s quality of life. In a Minnesota Design Team visit, the community shares its history, problems, and hopes for the future with experts in the field of design. The Design Team then recruits an interdisciplinary team of 12-20 volunteers who work in the community development field to create a plan to respond to the needs of the community. A typical visit lasts three to four days and culminates in a presentation of 10 to 20 poster-sized drawings to interpret the community’s shared vision. After the visit, the community plans for action and implementation. For more information, the Task Force could interview community leaders in Wadena and Crosby. Both of those communities participated in a Minnesota Design Team visit in 2010. More can also be learned at: http://www.minnesotadesignteam.org/. This project could also include the civic and commerce association, economic development authorities, and other local leaders.

20. Explore Options for Expanding Retail in Menahga When asked to identify which businesses or industries the city should pursue to attract to Menahga, the most commonly selected choices were clothing and apparel, lodging, companies integral to the supply chain, and a barber/hair salon. In 2010, Menahga participated in a University of Minnesota Market Area Profile (MAP) program. The MAP revealed demographic details that indicate customers in Menahga belong to one of four major tapestry categories: prairie living, rural resort dwellers, rooted rural, and heartland communities. These tapestry categories help describe the type of customer in the Menahga area. To learn more about these groups, the Task Force can review the MAP found in tab 8 of this report. Retail gap analysis is another analytical tool to help communities understand the demand and supply of retail in their community. Retail gap analysis identifies specific retail categories that are undersupplied in a community. According to the retail gap analysis done as part of the MAP, there is an undersupply of women’s clothing and barber shops in Menahga. A starting place for the Task Force would be to consider current local options. Are there opportunities for a current business to expand and fill a needed niche? Or, are there local folks who are considering starting a new retail business and could use a little encouragement? The Task Force could visit with these individuals and offer assistance and guidance, if possible. The Task Force could also coordinate with local economic development authorities and professionals to determine if any incentives or financial assistance could be provided.


If no local business opportunities are identified, the Task Force could work to develop a marketing campaign to potential investors, franchise owners, etc., on the opportunities in Menahga. Beyond Task Force members, this project might involve local economic development professionals, the civic and commerce association, and local retailers.

21. Attract a New Hotel/Restaurant/Event Center on the Lake Businesses in Menahga indicated that eating and lodging establishments were a weakness in the community. In addition, the Campus Research Review panel indicated that a larger community or event center could be a draw into the community. Given the attractiveness and the central location of the lake in Menahga, locating a new lodging and restaurant development on the lake would be logical. The Task Force could look into the possibility of the construction of a hotel, restaurant, and event center on the lake. Perhaps a local restaurateur would be interested in offering services in the new facility. In addition, the hotel could expand recreational opportunities in Menahga by offering the promotion of outdoor recreation, such as snowmobiling, fishing, and hunting. The Task Force can find examples of successes in developing lodging facilities from other small cities in Minnesota. Springfield, Minnesota (population 2,113) started a motel with community investment. Hoffman, Minnesota (population 620) has a 1-room hotel that the city opened in a former retail store. Menahga city officials would need to be involved in this project. Other possible resources include hotel chains, Realtors, lodging associations, and Explore Minnesota Tourism.

22. Conduct a Tourism Assessment Program Menahga clearly has features that appeal to tourists – natural amenities, good fishing and hunting, and a lake in town. However, these features alone are not enough to foster a tourism industry. Businesses and residents must work together to create an atmosphere that continues to attract and retain visitors. To get an honest assessment of the current tourism climate in Menahga, the Task Force could consider participating in a University of Minnesota Extension Tourism Assessment Program (TAP). The Tourism Assessment Program brings local residents and business owners together with University of Minnesota faculty and staff to take a broad look at tourism opportunities, advantages, and drawbacks for the community. Benefits for participants include community tourism development consulting expertise, a community tourism assets inventory, a community tourism presentation and facilitated discussion, and community tourism follow-up assistance and consultation.


Lindstrom, located in Chisago County, is a recent participant in the TAP program. To learn more about TAP and Lindstrom’s experience in the program, the Task Force can contact Liz Templin (612-360-4532 or [email protected]). If the Task Force selects this project, potential resources for the project might include local tourism-related businesses, residents, and city officials.

23. Form a Tourism Exploratory Committee Businesses identified hunting, fishing, and seasonal tourism as community features with the highest positive impact on their business. These are all features that could be used to attract additional tourists to the area. When asked what features should be used as the focus of a marketing image for the community, businesses selected small town atmosphere, seasonal tourism, hunting, and the natural environment as the top priorities. Given these results, the Task Force may wish to work in a coordinated way to promote tourism and thus foot traffic in Menahga. One way to accomplish this would be to form a Tourism Exploratory Committee. Potentially, this committee could be a sub-committee of the Menahga Civic and Commerce Association. The committee could examine ways for Menahga to work together on tourism efforts. The committee might look to recent research by the University of Minnesota Tourism Center regarding recreational experiences with parks and trails in northwest Minnesota. The report provides insight into the types of recreational experiences northwestern Minnesotans prefer. The report can be viewed at http://www.tourism.umn.edu/ResearchReports/ResearchReportsbyYear/index.htm. If the exploratory committee identifies festivals or events as a key initiative, the University of Minnesota Tourism Center may be of assistance. The Tourism Center offers training in festival and event management. For instance, St. Urho and the prominent statue of him in Menahga may provide an opportunity for a regional or even a national event. A little town in southern Indiana has a maple syrup producer (i.e. a farmer). They discovered that no place had created a national maple syrup festival, not even in Vermont. So they created one and the fame and economic impact it has created is remarkable. They get 3,000+ visitors from all over America. http://nationalmaplesyrupfestival.com/. The exploratory committee could look at ways to expand the current St. Urho Day festival. The festival and event management training provides event staff, festival organizers and volunteers with the essential knowledge and organizational tools to successfully operate. To learn more about the Certificate in Festival and Event Management, contact Ryan Pesch (218-998-5794 / [email protected]), or visit http://www.tourism.umn.edu/prod/groups/cfans/@pub/@cfans/@tourism/documents/asset/cfans_asset_212960.pdf .


Potential resources for this project include the Minnesota Heartland Tourism Association, a division of Explore Minnesota Tourism (Carol Altepeter, 888-629-6466), and the University of Minnesota Tourism Center (Cynthia Messer, 612-624-6236).

24. Deepen and Develop Links and Connections to Neighboring Cities In our increasingly global marketplace, goods, services, and people flow easily between communities. Shoppers, tourists, and residents increasingly view their choices and options from a regional context. One community may be appealing for its shopping options while another more appealing for its recreational opportunities. Communities can work together to build on their strengths and refer customers to one another. The Task Force may want to explore ways to deepen and develop links and connections to neighboring cities. For example, one small town in southern Minnesota is home to a state historic site. Tourists come to visit the site and express an interest in antique shopping and a unique dining experience. They are then referred to a neighboring town that boasts these amenities. These connections can help both towns to be successful. If the Task Force wishes to go more in-depth, it could look at additional physical ways to connect the cities. For example, could a trail system be developed among several of the neighboring cities? A successful example would be the Lanesboro bike trails that attract people to Lanesboro and its neighbors. Depending on how the Task Force approaches this project, partners could include retailers from neighboring communities, the regional development commission, land owners, and the Minnesota Department of Transportation.

25. Build on the Momentum of the Minnesota Intelligent Rural Communities Initiative

Menahga has been an active community in the Minnesota Intelligent Rural Communities (MIRC) initiative offered through University of Minnesota Extension with funding from the Blandin Foundation. Through this program, local business owners have received training in online marketing and sales. Survey results also reveal positives related to the internet. Most businesses view the accessibility of high speed internet as about the same or more favorable than the communities where their direct competitors operate. Eighty-seven percent of the responding businesses have internet service. The Task Force can consider activities to build on the momentum of the MIRC initiative. For example, the Task Force could work with local businesses to demonstrate the value and benefits of using the internet in daily operations. This could be done with case studies from other Minnesota businesses. Another way to encourage businesses to continue developing internet savvy might be by promoting the survey results related to high speed internet. This may be a competitive advantage for Menahga. Promoting it via local communication outlets could help to raise awareness and curiosity about the possibilities of online sales and marketing.


The Task Force may want to take this one step further and investigate the possibility of fiber-to-the-home infrastructure. Several rural communities in Minnesota, such as Sibley County, are working to build the infrastructure as a community project. The goal of these projects is to bring high speed connectivity to all residents and businesses in the local area. Potential partners for this project include the local MIRC coordinators (Steve and Linda Peterson), Enterprise Minnesota, local media outlets, the local telecommunications company, and city officials. Also, the Blandin Foundation is creating a new grant program, the Blandin Community Broadband Program (estimated release of RFP is August, 2012) that may be a resource for Menahga to build on its MIRC momentum.

Chapter IV. Hints on Successful Implementation of BR&E Projects

The Menahga BR&E Task Force Retreat completes the planning and visitation phase of the program. Implementation of the projects selected by the Task Force at the retreat is the next phase. The following tips for successful project implementation come from two sources: 1. the experiences of more than 200 communities that have carried out BR&E programs in the past. These tips are reprinted, with permission, from the BR&E program booklet entitled “Local Leadership Team Manual”.1 2. the experiences of nine Minnesota communities as well as a literature search of published articles about BR&E successes (see bibliography below). The major tips are: 1. Follow sound strategic planning processes. 2. From the beginning, stress that the BR&E Visitation Program is a two or three-year effort. 3. Projects that have an economic development professional or other staff person involved with

a percentage of their time allocated to it are correlated with greater success. 4. At the BR&E Task Force Retreat, ask Task Force members to indicate one of the projects on

which they will work. Accountability for implementation is correlated with greater success. Even more success is correlated with projects that are done in teams rather than done by an individual.

5. Set up a special implementation panel to help the Task Force oversee project implementation progress.

6. Meet at least quarterly to monitor implementation progress. 7. Set a date for the first quarterly Task Force meeting before the community commencement

meeting. 8. Plan each quarterly meeting well. 9. Contact the priority project teams between quarterly meetings of the Task Force to encourage

them to meet regularly and make progress on their projects. 10. Elect a new Leadership Team at the first quarterly Task Force meeting. 11. Keep in touch with your state sponsor – the University of Minnesota BR&E Strategies

Program. 12. Invite regional and state agency personnel to your quarterly meetings. 13. Frequently distribute one page outlines or bulleted lists of projects. 14. Keep publicizing the projects, especially the successes. 15. Select some priority projects that are easier to accomplish (i.e. “winnable”) among the other

more difficult, long-term projects. Sports teams build momentum by having little victories as they move forward. Sport commentators often comment on who has the momentum in sporting events. In the same way, the BR&E Task Force can build momentum by celebrating its accomplishments as it moves forward toward full implementation of all its priority projects. Thus, picking some “low hanging fruit” among the projects can build the team’s spirit and confidence.

16. Ensure that the projects selected do not have major opposition.

1 Loveridge, Scott and George Morse, “Local Leadership Team Manual,” in the series entitled Implementing Local Business Retention and Expansion Visitation Programs, Northeast Regional Center for Rural Development, NERCRD Publication No. 72 (pages 16-18).

17. Adequate funding is necessary. Details on these tips are provided in the “Local Leadership Team Manual” and/or are cited in the bibliography below. Design Priority Projects Getting from the Prioritize Step 2 of the BR&E process to Implement Step 3, and being successful in implementation, takes effort and planning. Once the priority projects are selected at the BR&E Retreat, the next step is to design specific, measurable, attainable, realistic, and timebound projects (i.e. “SMART”, see http://en.wikipedia.org/wiki/SMART_criteria). Extension can help the community with this process if it wishes by convening the priority project teams at a joint meeting (i.e. where all the teams are there simultaneously) and facilitate SMART project planning. Regardless, the priority projects need to be designed and a summary description created to go in the BR&E Summary Report that Extension staff writes for the Community Commencement Meeting. Community Commencement Meeting At this meeting, the results of your BR&E survey and your priorities will be shared with community leaders, community members, the businesses, state representatives & senators, et al. The meeting is a “commencement ceremony” that celebrates the end of the Research and Prioritize, Steps 1 & 2, and the beginning of the Implement Step 3 of BR&E. At the same time, it honors the significant contributions of participants, including the leadership team, task force, volunteer visitors, the businesses, and others. It is important, of course, to recognize volunteer contributions for their own sake, but also because it reinforces the credibility of the BR&E visitation process as stemming from the breadth and depth of community involvement. This meeting is both a celebration and it is informational. The results of the survey and the conclusions of the task force are presented to those attending. After the meeting, participants are encouraged to ask questions of task force members individually or discuss ways in which they can participate in implementation of priority projects. Several Minnesota communities have successfully used a process where they ended the large group session by breaking up into small groups led by the priority project teams. In this way, those in attendance that are interested in a particular project can get more in-depth information, offer their insights, and possibly become involved in it. Details on this meeting are given on pages 13-15 of the “Local Leadership Team Manual.” Continuing BR&E Visits Communities need to continually reach out and communicate with their existing businesses by making in-person BR&E visits. The University of Minnesota Extension BR&E Program is constantly refining its capacity to assist with BR&E Visitation programs in Minnesota. In the near future, Menahga may wish to do some additional BR&E visitation and follow-up action. If

needed, Extension will be able to help. At the time of this writing there are several projects underway by BR&E staff that will improve program services: 1. benchmarking the BR&E data to share insights on what has been learned working with many community BR&E projects since 1990 2. adding more free BR&E Tools to its website 3. developing a BR&E course that will include both in-person learning and online components -- launching in winter, 2013 for Minnesota economic development leaders 4. evaluating, updating and streamlining its basic BR&E survey instrument The Minnesota Chamber of Commerce offers the Grow Minnesota program to communities through local chamber offices. This is a time-tested BR&E resource for communities wishing to do some annual business visits using a B2B (business to business) approach. The Minnesota Chamber and University of Minnesota BR&E offices are in dialogue to determine ways that mutual cooperation can help communities use the most appropriate resource to meet their needs. Bibliography of Literature Pertaining to Successful Priority Project Implementation

1. Bosma, Linda. “From BR&E Theory to Practice in Minnesota: Lessons Learned from Local Community Modifications in Implementation”. A nonpublished program evaluation of the University of Minnesota Extension Business Retention and Expansion Program. Abstracted “A-Ha’s” synthesized by Michael Darger, (March, 2012) on the program website, http://z.umn.edu/bosma (scroll down and choose Program Evaluation (2006-2007))

2. Allanach, Christopher and Scott Loveridge. “An Assessment of Maximum-Training Business Visitation Programs.” Economic Development Review 12.n2 (May 1998): 125(2).

3. Phillips, Philip D. “Business Retention and Expansion: Theory and An Example in Practice” Economic Development Review. 1996. 14(3) pp. 19-24.

4. Bradford, Richard. “Elements of a BEAR Program.” Economic Development Review. 07423713 June 1996. 1413.

5. Loveridge, Scott, Thomas Smith and George Morse. “Immediate Employment Effects of Business Retention and Expansion Programs.” St. Paul: Department of Applied Economics, University of Minnesota Staff Paper 1992.

6. Morse, George and Inhyuck Ha. “How Successful are Business Retention and Expansion Implementation Efforts?” Economic Development Review: 1997 pp8-13.

7. Maples, Melissa. “Business Retention: The Basics and Beyond.” Economic Development Review. 1996 14(3) 4-8.

SWOT Worksheet (used in the BR&E data analysis) Strengths, Weaknesses, Opportunities, Threats

Business Retention and Expansion Strategies Program

Review the survey results from this BR&E program and then answer the following questions based both on this data and your knowledge of the region and businesses. 1. What appear to be the firms’ or the community’s primary strengths and/or weaknesses?

(When basing your answer on the data from the survey, please note the question number to help us in preparing the research report.) [Internal issues]

Strengths: Weaknesses: 2. What appear to be the primary opportunities and/or threats to these businesses? (Again,

please note the question number.) [External issues] Opportunities: Threats:

Potential Local BR&E Projects

(used in the BR&E data analysis) Review of Survey Results and Development of Potential Projects

for Community of ________________________________

Based on the SWOT analysis, what are some potential projects which the community might initiate to help local firms take advantage of their strengths and opportunities or to overcome their weaknesses and threats? Please use one sheet for each project. 1) What is a key issue or finding from the survey results? (Could be an opportunity, a

strength, a weakness, or a threat.) 2) What data from the survey shows the nature of this finding? (List question number(s)

and give a short explanation of the connection.)

3) How might the community leaders address the issue outlined in questions 1 and 2?

4) Which local leaders should be involved in the planning and implementation of this project? (Be as specific as possible – even listing names when possible.)

5) Which non-local public or private agencies, colleges, or firms should be asked to help with the planning and implementation? (Be as specific as possible – even listing names when possible.)

Name of Person(s) Making the Suggestion: ______________________ Phone: ___________

The report writers sometimes need to check with those making the suggestions.

RESEARCHStep 1

IMPLEMENTStep 3

PRIORITIZEStep 2

DBusinessRetention&ExpansionStrategiesProgram

UniversityofMinnesota

FLOW CHART

Inform community about BR&E

Organize the Leadership Team

Organize the Task Force

Practice visiting businesses

Finalize the survey instrument

Train visitors

Visit businesses

Tabulate survey data

Review warning flags

Respond to individual concerns

Analyze survey data

Write research report

Retreat to set priorities on

systemic issues

Design priority projects

Write summary report

Commence to implementation

Work on project teams

(continuous)

Sustain Leadership Team

Update on projects – 1st quarter Task Force

Update on projects – 2nd quarter

Task Force

Update on projects & plan to sustain BR&E – 3rd quarter

Task Force

Evaluate results

Prepare evaluation report(s)

Update on projects – 4th quarter Task Force

Sustain or conclude BR&E


Business ID: _________ Supplied by Coordinator: Also record on first page of survey

MENAHGA BUSINESS RETENTION AND EXPANSION STRATEGIES PROGRAM

BUSINESS NAME: ______________________________________________________________________________

Address:_______________________________________________________________________ ______________________________________________________________________________ City _______________________________State ______________Zip Code_________________ Phone _______________________ Website__________________________________________ PERSON INTERVIEWED:

Job title: __________________________________________________________________ Date of visit: ______________________________________________________________ Email ________________________________________________________________________ OTHER KEY OFFICIALS IN THIS ESTABLISHMENT: Owner________________________________________________________________________ Chief Exec. Officer _____________________________________________________________ Plant Manager_________________________________________________________________ Personnel Officer______________________________________________________________ VOLUNTEER VISITORS: ___________________________________________________________________________________ Note to Coordinator: After placing the ID number on this cover sheet and on first page of the survey, remove the cover sheet and file separately to ensure confidentiality of results.


MENAHGA BUSINESS RETENTION AND EXPANSION STRATEGIES PROGRAM Background We believe our existing businesses are our best prospects for future growth. The purpose of this program is to

see how we can help them grow. I. This program is sponsored locally by the following organizations: City of Menahga Initiative Foundation Minnesota Department of Employment and Economic Development

University of Minnesota Extension II. Technical and research assistance for this program is provided by the University of Minnesota Extension. III. Business, government, and educational leaders have agreed to help us work with our local businesses on this

program. IV. The survey is a cooperative effort involving volunteers drawn from other businesses, local government, and

educational institutions. V. The objectives of the program are:

1. To demonstrate support for local businesses 2. To help solve immediate business concerns. 3. To increase local businesses’ ability to compete in the global economy 4. To establish and implement a strategic plan for economic development. 5. To build community capacity to sustain growth and development.

VI. Confidentiality - Your individual answers to this survey are confidential and will not be released. Your

response will be summarized with those of others to produce an overall result in percentages or averages. If we find an issue in your survey response in which a certain individual or individuals may be able to respond to your concern in a beneficial way, you will be asked at the end of the survey whether you authorize us to release your survey information to them.

VII. The "Skip It Rule" - If there is a question that you feel might be best to skip, we will do that; just let us know.

There is no need to explain your reasons. VIII. Copy of Final Report - Copies of the summary will be provided to all businesses that participate in this survey. © 2011 University of Minnesota Extension, St. Paul, Minnesota 55108


MENAHGA BUSINESS RETENTION AND EXPANSION STRATEGIES PROGRAM Interview Guide

N=53 Community or township: ______________________________________________________ Date: 1a. Is all the information on the cover sheet complete and correct? (Circle ONE answer) 89% Yes 4% No 1b. If No, make the necessary corrections. 2a. Did your business begin its operation in this community? (Circle ONE answer) 77% Yes 19% No 2b. If No, where did you move from and when? Community State Year _______________ _____ ______ 2c. If Yes, what year? ________ 3a. Is your business locally owned? (Circle ONE answer) 89% Yes 6% No 3b. If No, where is your corporate headquarters located? (Please identify city, state, & country) ____________________ 4a. Do you have multiple locations? (Circle ONE answer) 26% Yes 72% No 4b. If Yes, where are they located? ___________________________________ 5. Which of the following industry categories best describes your business? (Circle ONE answer)

0% Agricultural Production 6% Lodging

2% Mining 4% Tourism/Recreational Services (i.e., golf,

boating, bike rental, theater, etc)

8% Construction 23% Other Services

13% Manufacturing 9% Food and Beverage

6% Transportation and Public Utilities 2% Education

0% Wholesale Trade 0% Mail order/internet sales

6% Finance, insurance, and real estate 0% Government (not including education)

17% Retail trade 6% Other (specify) ___________________


Your product / service

6. We are interested in learning about your primary products and services.

a. Name the major products or services offered by this establishment

b. What percentage of your total sales comes from each? (Total should equal 100%)

c. Are sales of this product or service? (Circle ONE answer)

(1)

% (1)Increasing (2)Stable (3)Decreasing

(2)


(3)


(4) Other products or services (specify)


Check total (should equal 100%) 100 %

7. What is special or unique about your major products or services? (BR&E visitor: Please take detailed notes

here.)

FOR LOCAL USE ONLY 8 a. Who are your key competitors and where are they located? (List UP TO THREE)

Name of business ______________________________ Location _____________________ Name of business ______________________________ Location______________________

Name of business ______________________________ Location _____________________

b. What are the one or two most important reasons that customers might choose your competitors over you?

Labor Force


9. How many workers (including yourself) are employed by you at this location? We'd like you to break

this out between full-time and part-time for the two time periods shown.

a. Full time

b. Part time (as defined by the business)

c. Seasonal (hired by the business)

d. Temp agency employees

Currently 472 298 76 6Three years ago

462 302 82 0

10. If the number of employees changed from three years ago, please identify up to 3 reasons for the

employment change. (Circle UP TO THREE reasons)

2% Technological changes 9% Change in management 26% Growth in demand, or lack of demand 8% Change in profits 0% Business did not exist 3 years ago 13% Improved or decreased efficiency 0% Government regulation 2% Increased competition 2% Renovation/expansion 8% New products/services 9% Entered new markets 0% Change in subcontracting 2% Corporate decisions/policies 13% Other _______________________________________

11. If you reported any employees as seasonal in question 9c, when is your busy season? (Circle UP TO TWO seasons) 11% Spring 21% Summer 11% Fall 0% Winter 4% Varies 17% Not applicable 12. What is the average hourly starting wage paid to employees in each category? (If you do not have

employees in that category, write Not Applicable or NA)

(a) Unskilled labor (ex: waiters, janitorial, hotel maids, unskilled manufacturing labor, etc)

$______9.90____

(b) Precision production/specialty skills $_____17.00____ (c) Clerical / secretarial $_____12.00____ (d) Sales $_____10.00____ (e) Engineers $_____60.00____ (f) Professional/management $_____26.80____ (g) Information technology $_____17.90____ (h) Temporary/contract employees $_____19.10____ (i) Youth employees $______7.20____ (j) Other $_____11.50____


13. Does your company have problems recruiting employees in the following categories? (Circle ONE answer per line)

Category Yes No Unsure (a) Unskilled labor 4% 36% 0% (b) Precision production/specialty skills 13% 15% 0% (c) Clerical / secretarial 2% 28% 2% (d) Sales 8% 19% 0% (e) Engineers 2% 13% 0% (f) Professional/management 13% 17% 2% (g) Information technology 4% 11% 2% (h) Temporary/contract employees 6% 13% 0% (i) Youth employees 2% 19% 0% (j) Other _________ 8% 9% 0%

14. If you answered "yes" for any category in question 13 above, identify up to 3 of the most important reasons for your recruiting problem. (Circle UP TO THREE.)

15% (a) Poor work attitudes 17% (b) Inadequate labor skills 2% (c) High cost of training employees 8% (d) High wage rates for labor

11% (e) Competition for employees 9% (f) Workers will not migrate into the area 2% (g) Workers cannot pass screening (drug, criminal record check, etc.) 0% (h) Lack of child care 8% (i) Other _____________________________________

Business ID: _____ Supplied by Coordinator


15. Which of the following benefits are available to your full-time employees? (Circle Yes or No for each item)

Yes No (a) Health insurance 40% 36%(b) Life insurance 25% 47%(c) Disability insurance 23% 47%(d) Paid vacation time 55% 25%(e) Paid holidays 45% 34%(f) Paid sick leave 30% 43%(g) Bonus 40% 38%(h) Profit sharing 19% 53%(i) Stock options of company 0% 66%(j) Tuition reimbursement (for-credit courses) 15% 55%(k) Non-credit training / professional development 32% 36%(l) Retirement/401 K contribution 28% 43%

(m) Uniforms/uniform allowance 30% 40%(n) Child care/dependent benefits 9% 58%(o) Employee discounts on merchandise 42% 32%(p) Company car 25% 45%(q) Other (specify)________________ 9% 30%

16. Please estimate the commute time for your employees.

(a) Within a 15 minute drive one way 77% (b) 16-30 minute drive one way 19%

(c) 31-60 minute drive one way 5% (d) 61+ minute drive one way 0% Check total (should equal 100%) 17. What resources are you currently using to locate new employees? (Circle ALL that apply)

8% (a) Ad in metro / state-wide papers 30% (b) Ad in local community papers 6% (c) Placement office of four-year, community and / or technical colleges 6% (d) Private search businesses

34% (e) Referrals from existing employees 11% (f) Professional associations 11% (g) Minnesota Workforce Center 4% (h) Temporary agency / staffing service business 4% (i) Hire our own apprentices

21% (j) Promote from within 9% (k) Hire people who were initially temporary employees 2% (l) Job Fair

11% (m) Internet / world wide web 0% (n) Union 9% (o) Sign in the window

26% (p) Walk-in 38% (q) Word of mouth 8% (r) Other___________________________


18a. Do you expect the number of employees you have in each of the following categories to increase, decrease or stay the same over the next three years? (Circle 1, 2 or 3 for each category)

b. If you expect a change, how many employees will be added or subtracted? (Indicate by how many)

Increase Stay the

Same Decrease By How

Many?

(a) Unskilled labor 11% 40% 2% 10(b) Precision production/specialty skills 13% 28% 2% 33(c) Clerical / secretarial 9% 42% 2% 4.5(d) Sales 8% 34% 0% 3(e) Engineers 2% 25% 0% 0(f) Professional/management 13% 38% 0% 5(g) Information technology 6% 25% 0% 1(h) Temporary/contract employees 4% 26% 0% 0(i) Youth employees 4% 30% 0% 1(j) Other _________ 0% 21% 2% 0

19. Overall, how do you rate your employees with respect to their attitude toward work and their

productivity? (Circle ONE answer per line)

Excellent = 5 Above

Average = 4

Fair = 3 Below

Average = 2

Poor = 1

4.42 (a) Attitude toward work 47% 34% 9% 0% 0%

4.35 (b) Productivity 45% 32% 13% 0% 0%


20. Employees and owners often need additional training for their current job. From the list below, select the training topics which are needed but are not already being provided. (Circle ALL that apply. For each item you circle, write the number of people needing this training)

Topic Number of Businesses

Selecting Number of People Needing

Training General Skills (a) Basic math 13% 14(b) Basic shop math 6% 13(c) Reading and writing 11% 21(d) Interpersonal communication 9% 48(e) English as a Second Language 2% 2(f) Diversity training 6% 73(g) Customer service 19% 42(h) Other (Specify) ______________ 6% 9 Managerial Skills (i) Basic accounting 9% 7(j) Financial management 8% 7(k) Record keeping 8% 7(l) Inventory control 15% 19(m) Business planning 15% 12(n) Employee management 17% 23(o) Time / Project management 9% 21 Sales and Marketing (p) Sales 23% 27(q) Marketing 21% 31(r) Selling on the internet 13% 21(s) Other (Specify) ______________ 2% 2 Computer Skills (t) Keyboarding 9% 9(u) Microsoft Word 11% 14(v) Spreadsheets 15% 12(w) Computer-aided design (CAD) / Computer-aided manufacturing (CAM) 8% 7(x) Graphic design and layout 8% 3(y) Database management 9% 4

(z) Web design & maintenance 21% 11(aa) Computer system installation and maintenance 11% 9(bb) Computer programming 4% 3(cc) Other (specify) _______________ 4% 0 Specialized Skills (dd) Blueprint Reading 2% 0(ee) Specialized equipment (Specify) 2% 2 (ff) Other (Specify) _________ 4% 1


21. How do you currently train your employees? (Circle ALL that apply.)

51% Self-taught (manuals, videos, training materials) 72% In-house training (one-on-one by supervisor or co-worker, training department classes, etc) 45% Send employees to workshops 23% Contract with private vendors for on-site training 13% Contract with public vendors (technical colleges, etc.) for on-site training 6% On-the-job training (a government supported program)

13% Apprenticeships 23% Distance learning (correspondence, the Internet, TV) 11% Other (please list) ______________________________________________ 0% Do not provide any employee training

Customers 22. We are interested in the location of your customers. Please estimate the percent of your gross sales come

from the following locations:

a. Local (within 25 miles)? _____54____ percent b. Regional (26-100 miles)? _____26____ percent c. Outside the region but in the United States? _____19____ percent d. Outside of the U.S.? ______1___ percent 100% TOTAL

23a. Is your business currently exporting internationally? (Circle ONE answer)

6% Yes, we export directly from our business 2% Yes, but we sell our product internationally through another company which exports it (ex: US parent

company, etc.) 60% No: 23b. What prevents you from exporting your product? (Circle ALL that apply.)

13% (a) Business is too small17% (b) Business designed to serve specific area0% (c) Lack of knowledge of foreign countries/markets0% (d) Lack of specific export knowledge6% (e) Restrictive state and or federal regulations0% (f) Language barrier2% (g) Concerns about receiving payment6% (h) Never considered it before0% (i) Tough competition4% (j) Costs / risks are too high0% (k) Starting plans to export

15% (l) Other_____________________________


24. For businesses who export internationally or are planning to do so in the near future – all others, skip to

question 25. 24a. In which countries or regions of the world do you currently sell products, or plan to sell in the future? (Circle Now or Future for ALL that apply)

I sell there

now I plan to start selling

there in the future (a) Canada 9% 2%

(b) Mexico 4% 0%

(c) Central America 0% 0%

(d) South America 0% 0%

(e) Western Europe 6% 0%

(f) Eastern Europe 2% 2%

(g) Russia 0% 0%

(h) Africa 0% 0%

(i) China 0% 0%

(j) Japan 2% 0%

(k) Asia 0% 0%

(l) Australia 2% 0%

(m) Other (specify) ___________ 0% 0%

24b. Identify problems, if any, that you have exporting your product(s)? (Circle ALL that apply)

6% (a) Transportation of product0% (b) Lack of export financing0% (c) Restrictive state and or federal regulations2% (d) Inadequate knowledge of foreign countries/markets4% (e) Other _______________________________2% (f) I do not have problems exporting my product(s)

Changes 25. a. Are there any major technological innovations on the horizon in your industry that might affect your

company? (Circle ONE answer) Yes No Not Sure 32% 42% 17% 25b. If No or Not Sure, skip to question 26. 25c. If Yes, what are these? 25d. If Yes, will these new technologies require retraining of your labor force? (Circle ONE answer) 21% Yes 0% No


26a. Do you have any plans to modernize or expand your present buildings(s) or equipment? (Circle ONE answer) Yes No 38% 57% 26b. If No, skip to Question 27. 26c. If Yes, what is planned? 26d. If Yes, when will the work begin (year)? ____________ Future Location Decisions 27. Are you currently considering? (Circle ALL that apply)

4% (a) Downsizing If yes, go to Question 28 11% (b) Selling If yes, go to Question 28 6% (c) Merging with or acquiring another business If yes, go to Question 30 4% (d) Moving If yes, go to Question 28 0% (e) Closing If yes, go to Question 28

19% (f) Expanding -- at this location If yes, go to Question 30 8% (g) Expanding - adding another location If yes, go to Question 29 2% (h) Other changes to business plan If yes, go to Question 30

42% (i) None of the above If yes, go to Question 30


28. If yes to Question 27 (a), (b), (d) or (e), why are you considering downsizing, selling, moving or closing? (Circle ALL that apply)

2% (1) Changing market conditions 2% (2) Overcrowded building 2% (3) No land for expansion 0% (4) Transportation problems 0% (5) Crime/Vandalism 0% (6) Low work productivity 2% (7) Environmental concerns 2% (8) Rigid code enforcement (including ordinances and building codes) 8% (9) High local taxes 4% (10) High state taxes 0% (11) Lease expiration 0% (12) Poor telecommunications/internet 0% (13) Insufficient labor supply

13% (14) Retiring 2% (15) Another business opportunity 2% (16) Business incentives from other jurisdiction(s) 0% (17) Trying to sell, but unable to sell 0% (18) Other (specify) ___________________

29. If moving (Yes to Question 27d) or expanding at another location (Yes to Question 27g), where are you considering? (Circle ALL that apply)

8% (1) In same city as currently located0% (2) Another city in this county (specify city) 2% (3) Another county in the state (specify city) 2% (4) Another state (specify city and state) 0% (5) Outside of the United States (specify city and country) 2% (6) Undecided

30a. Do you rent / lease or does this business own this facility? (Circle ONE answer)

15% Rent /Lease 79% Own 30b. If Rent / Lease, when does the current rental agreement expire? 31a. Does your company currently own or rent / lease sufficient property to allow for expansion if necessary?

(Circle ONE answer) Yes Maybe No 60% 8% 32% 31b. If Maybe or No, what type of land, buildings,

and space needs do you foresee?


32. Are there any other changes in business plans for the next three years? (Circle ALL that apply)

64% (1) No change in operations If no change, skip to Question 33.

21% (2) Change in mix of goods/services

17% (3) Add or subtract product lines

4% (4) Change production technology

4% (5) Other ______________________________

33. What impact will your answer(s) from Questions 27-32 have on the number of employees? (Circle ONE

answer on the left, and if you choose 2 or 3, also answer the jobs question) 68% No change 19% Add employees About how many jobs will be added? 66 Jobs 2% Reduce employees About how many jobs will be lost? 0 Jobs

2% Reduce schedule for hourly employees:

(a) About how many hours / week per employee? __40_____

(b) How many employees will be on a reduced schedule? _1____


Community Factors 34. In the community in which your business is located, are the following business factors more favorable,

less favorable or about the same as your direct competitors from other communities? (Circle ONE answer for each factor)

Avg.

Much More Favorable

(5)

Somewhat More

Favorable (4)

About the Same (3)

Somewhat Less

Favorable (2)

Much Less Favorable

(1)

2.77 a—Availability of Skilled Labor 2% 4% 49% 13% 6%

2.97 b—Availability of Unskilled Labor 0% 8% 55% 6% 2%

3.31 c--Worker Stability 2% 21% 49% 2% 0%

3.23 d--Worker Productivity 4% 13% 53% 4% 0%

3.13 e—Wage Rates 2% 17% 43% 11% 0%

2.97 f—Employee Health Care Costs 0% 4% 49% 6% 0%

3.07 g—Union Profile 0% 6% 19% 4% 0%

2.72 h--Technical Training Programs 0% 0% 42% 11% 2%

3.42 i—Availability of Land 8% 17% 40% 4% 0%

3.39 j--Cost of Land 6% 19% 40% 4% 0%

2.92 k—Availability of Buildings 2% 9% 40% 15% 2%

3.18 l--Cost of Buildings 4% 11% 42% 8% 0%

2.62 m—Proximity to Major Markets 0% 2% 43% 21% 4%

2.83 n—Proximity to Raw Materials 2% 0% 49% 15% 0%

2.80 o—Proximity to Service Suppliers 0% 2% 49% 15% 0%

3.16 p—Highway Accessibility 8% 13% 47% 11% 2%

2.42 q—Railroad Service 0% 0% 21% 9% 6%

2.39 r—Accessibility to Major Airport 0% 2% 34% 13% 13%

2.38 s--Local Airport 0% 4% 30% 11% 15%

3.09 t—Electricity Cost 0% 9% 70% 2% 0%

3.12 u--Electric Reliability 4% 6% 68% 4% 0%

3.03 v--Natural Gas Cost 2% 2% 64% 4% 0%

3.03 w--Natural Gas Reliability 2% 2% 64% 4% 0%

3.00 x—Unemployment Insurance Costs 2% 4% 64% 4% 2%

3.00 y--Workers Compensation Rates 2% 4% 66% 4% 2%

2.76 z--Local Taxes 0% 4% 55% 15% 4%

2.90 aa--State Taxes 0% 0% 72% 8% 0%

3.15 bb—Availability of Credit 2% 9% 60% 2% 0%

3.08 cc--Cost of Credit 2% 4% 64% 2% 0%

3.00 dd--Environmental Regulations 0% 4% 70% 4% 0%

3.47 ee- Accessibility of high speed internet 8% 23% 51% 0% 0%


35. Please rank in order the three factors from Question #34 you would consider the greatest strengths of this community as a location for your business and the three factors you would consider the greatest weaknesses for your business. (Specify by corresponding letters in Question 34 above if the response comes from the list)

Strengths (Rank from 1 – 3.)

Weaknesses (Rank from 1 – 3.)

1. Accessibility of high speed internet 1. Proximity to major markets 2. Highway accessibility 2. Local taxes 3. Availability of land, Wage rates (tie) 3. Availability of skilled labor 36. Based on the following community services, please rate the desirability of this location as a place for your company to do business. (Circle ONE answer for each item) AVG

Excellent Above

Average Average Below

Average Poor Don’t

Know 3.47 1—Street Maintenance 11% 36% 42% 2% 6% DK 3.50 2—Snow Removal 11% 40% 36% 9% 2% DK 3.48 3—Drainage 11% 30% 49% 0% 4% DK 2.91 4—Water 6% 17% 43% 6% 15% DK 3.13 5—Sewer 6% 21% 49% 2% 9% DK 3.33 6--Solid Waste Disposal 6% 21% 62% 2% 0% DK 3.68 7--Law Enforcement 15% 36% 42% 2% 0% DK 3.76 8—Fire Protection 19% 36% 38% 2% 0% DK 3.44 9--Emergency Medical Services 15% 25% 42% 13% 0% DK 3.48 10--Health Care Facilities 15% 26% 43% 8% 2% DK 3.25 11—Zoning and Permitting 6% 21% 49% 4% 4% DK 2.96 12--Code Enforcement 4% 13% 53% 6% 9% DK 3.33 13—Financial Institutions 8% 21% 60% 2% 2% DK 3.78 14—Commerce and Civic Association 19% 34% 40% 0% 0% DK

2.90 15—Economic Development Authority (EDA) 2% 13% 43% 9% 8% DK

4.02 16—Public Elementary and High Schools (K-12) 21% 55% 19% 0% 0% DK

3.43 17--Community Education 8% 25% 55% 2% 0% DK

3.06 18--Higher Education within a reasonable drive 6% 23% 45% 13% 8% DK

2.33 19—Public Library 2% 9% 30% 11% 28% DK 2.85 20--Child Care 2% 2% 45% 15% 0% DK 3.63 21—Religious Choices 11% 40% 43% 2% 0% DK 2.74 22—Cultural Opportunities 4% 2% 57% 21% 6% DK 3.65 23—Recreational Opportunities 9% 49% 38% 0% 2% DK 3.40 24--Housing Costs 9% 19% 60% 2% 0% DK 3.16 25--Housing Availability 2% 28% 47% 13% 2% DK 4.06 26-Nursing Home 30% 36% 25% 0% 0% DK 4.04 27-Assisted Living Facility 25% 43% 21% 0% 0% DK 3.69 28-Volunteer Opportunities 11% 40% 40% 0% 0% DK


Telecommunications/Internet

37. Which type of Internet service does your business use? (Circle ALL that apply)

13% (a) None 0% (b) Dial-up 8% (c) Cable

53% (d) DSL telephone 2% (e) T-1 lines

64% (f) Fiber 0% (g) Powerline 2% (h) WiMAX

19% (i) WiFi 2% (j) Satellite 0% (k) Don’t Know

38a. Are you satisfied with your current internet service? (Circle ONE answer) 85% Yes 4% No → 38b. If no, which type of Internet Service would be your first choice? (Circle ONE answer)

0% (a) Cable 2% (b) DSL telephone 0% (c) T-1 lines 4% (d) Fiber 0% (e) Powerline 0% (f) WiMAX 0% (g) WiFi 0% (h) Satellite 0% (i) Don’t Know

39. a. Is cell phone reception or “dead” areas an issue for you? (Circle ONE answer)

28% Yes 72% No

b. Is two-way radio reception (poor or dead) an issue? (Circle ONE answer)

0% Yes 85% No


40 a. Do the following community features have a positive impact (+2) , no impact (0), or negative impact (-2) on your business? (Circle ONE answer for each item) AVG 1.08 (a) Natural environment 0.08 (b) Historic buildings (barns, downtowns, etc.) 0.57 (c) Farm landscapes ‐0.08 (d) Distance from large metro areas 1.06 (e) Small town atmosphere 0.34 (f) Community diversity ‐0.17 (g) Freeway access 1.25 (h) Fishing 1.31 (i) Hunting 1.19 (j) Seasonal tourism 0.51 (k) Museums/historic sites 0.36 (l) Activities for children and teens 0.76 (m) Festivals or events 0.35 (n) Arts and cultural events ‐0.16 (o) Lodging facilities 0.08 (p) Meeting facilities 0.35 (q) Eating establishments 0.84 (r) Public beach 0.84 (s) Parks 0.80 (t) Campgrounds 0.72 (r) Other

b. Which of the features listed in Question 40a do you feel should be the focus of a marketing

image for this community? (Please list the LETTERS for UP TO THREE choices)

_SMALL TOWN ATMOSHPHERE (21 votes)_________ First choice

_SEASONAL TOURISM (16 votes)_________ Second choice

_HUNTING and NATURAL ENVIRONMENT (tie with 14 votes)__ Third choice

41. Do you think promoting the area to visitors is in the best interests of your business? (Circle ONE answer)

83% Yes 17% No


42a. Please rate the following factors about retail in this community. (Circle ONE for each item) AVG

Excellent

Above

Average

Average

Below

Average

Poor

3.08

(a) Exterior atmosphere of the area (e.g. front entrances, rear entrances, landscaping, street trees, store fronts, sidewalks, cleanliness, signage) 2% 26% 49% 19% 2%

3.13 (b) Parking situation (e.g. number of spaces, location) 2% 23% 62% 9% 2%

3.73 (c) Feeling of safety (e.g. lighting, security) 13% 53% 26% 4% 2%

2.64 (d) Variety of businesses 2% 11% 43% 36% 8%

2.80 (e) Special events or promotions in the shopping area 0% 15% 51% 23% 6%

2.67 (f) Merchandising by retailers 0% 8% 55% 32% 4%2.72 (g) Prices 0% 2% 74% 19% 6%2.88 (h) Advertising 0% 9% 68% 17% 2%

2.55 (i) Group advertising

0% 8% 51% 30% 11%2.34 (j) Evening hours 0% 2% 43% 42% 13%2.49 (k) Weekend hours 0% 4% 53% 32% 11%2.47 (l) Coordinated store hours 0% 2% 57% 23% 15%

3.10 (m) Quality of merchandise handled by merchants 0% 21% 68% 8% 2%

3.46 (n) Customer service 6% 40% 49% 2% 2%2.96 (o) Variety of places to eat 4% 21% 45% 28% 2%

3.65 (p) Knowledge and friendliness of local personnel 9% 47% 36% 4% 0%

3.96 (q) Technology infrastructure 23% 53% 19% 4% 0%2.69 (r) Public restrooms 2% 13% 47% 28% 6%3.02 (s) Traffic flow / signage 2% 23% 51% 17% 4%2.40 (t) Other (specify) 2% 0% 2% 2% 4% 42b. What three items from the above list are the most important to be improved (Identify UP TO

THREE LETTERS from the above list) _VARIETY OF BUSINESSES (26 votes)_________ First choice

_EXTERIOR ATMOSPHERE (tie with 11 votes)_________ Second choice

_SPECIAL EVENTS/PROMOTIONS (tie with 11 votes)_________ Third choice

43. Considering all the factors in Question 42, how would you rate the overall atmosphere in your

local shopping area? (Circle ONE answer)

AVG Excellent = 5 Above Average

= 4

Fair = 3 Below Average

= 2

Poor = 1

2.92 0% 15% 64% 11% 6% Technical Assistance


44a. During the past three years, have you used any local, regional, state or federal programs to

help your business? For example, Chamber of Commerce, local Economic Development Authority (EDA), Small Business Administration (SBA), USDA Rural Development, Workforce Center, Department of Employment and Economic Development (DEED), local Housing and Redevelopment Authority (HRA), Small Business Development Center (SBDC), initiative foundation, etc. (Circle ONE answer)

25% Yes 70% No 44b. If No, skip to question 45. 44c. If Yes, which ones did you use?

44d. Would you recommend these programs to other businesses? (Please identify program and explain why)

44e.While our local Business Retention and Expansion Task Force cannot

promise to solve problems you have with local, regional, state or federal programs, we are willing to look into them. Would you like our Task Force or a local economic developer to assist you in any way with these programs? (Circle ONE answer)

2% Yes 15% No 44f. If Yes, what do you suggest?


45a. Would you like additional information concerning any of the following subjects? (Circle ALL that apply. Then in the next column, rank UP TO THREE most important with a *)

Number of Businesses Most Important

1--Business Plan Development 6% 0%

2--Passing business to heirs/succession planning 2% 2%

3--Continuous Improvement 11% 2%

4--State/Fed Financing Programs 19% 4%

5--JobZ 4% 2%

6--TIF 6% 4%

7--Employee recruiting and hiring 13% 4%

8--Labor/Management relations 4% 2%

9—Employee Benefits 6% 0%

10--School to work/school-business partnerships 9% 2%

11--Selling to Government 2% 2%

12--International Trade 0% 0%

13--Internet options 9% 8%

14--Chamber of Commerce 8% 2%

15—Economic Development Authority 13% 4%

16--Regional Development Commission 6% 0%

17--Tourism Development 15% 6%

18--Recycling Business Wastes/EPA regulations 9% 4%

19—OSHA and other safety regulations 9% 6%

20—Total Quality Management 8% 2%

21—Other 2% 0%

Additional Topics for Manufacturers: 22—Adopting New Manufacturing Technology 4% 0%

23—Just-in-time Inventory 2% 0%

24--Upgrading Manufacturing Systems 4% 2%

25--Statistical Process Control 0% 0%

26--Computer Aided Manufacturing 4% 0%

27--Statistical Process Control 0% 0%

28--Six Sigma 0% 0%

29--Root cause analysis 0% 0%

30—ISO and/or Quality standards 2% 0%

31—Automation and Robotics 2% 0%

32—Documentation 0% 0%

33--Cell Manufacturing 0% 0%

34--Lean Manufacturing 2% 0%

35--World Class Manufacturing 2% 0%

36--Reconfigure Business Processes 2% 0% 45b. Do you have any specific questions or special needs on any of the topics listed in Question 45a.

or are there any other topics not listed above? (Describe program and needs)


SEE OPEN-ENDED RESPONSES 46. What is your overall opinion of your community (i.e. where your business is) as a place to

conduct business? (Circle ONE answer)

AVG Excellent = 5 Above Average

= 4


= 2

Poor = 1

3.58 13% 38% 43% 6% 0% 47. What is your overall opinion of your community (i.e. where your business is) as a place to live?

(Circle ONE answer)

AVG

Excellent = 5 Above Average

= 4


= 2

Poor = 1

4.02 26% 51% 21% 2% 0% 47.1 What type of businesses or industries should the city pursue to attract to Menahga in order to

make it a better place to live and work? (Circle your top 3 choices)

9% 1. Bookstore 2% 2. Medical clinic

15% 3. Organic foods store 55% 4. Clothing and apparel stores 23% 5. Rental housing

6% 6. Computer / Electronic Repair 13% 7. Ice cream shop or shop that specializes in desserts

8% 8. Movie theatre 26% 9. Barber/hair salon

8% 10. Sporting goods store 38% 11. Companies integral to the Manufacturing supply chain 11% 12. Child care facilities 51% 13. Lodging 23% 14. Other (Please specify) SEE OPEN-ENDED REPONSES


47.2 Which of the following initiatives would increase the probability of expanding your business in Menahga?

2% 1. Fee schedule reform 6% 2. New technical education training center

17% 3. Program to connect high school students to local industries 13% 4. Expansion of local park facilities 19% 5. More recreation on Spirit Lake

9% 6. Additional cultural events (plays, theatre, etc) 26% 7. Other (please specify) SEE OPEN-ENDED RESPONSES

47.3 What is the key tipping point preventing you from expanding your business? SEE OPEN-ENDED RESPONSES 48. We have covered many issues. Please help us set some priorities on how we can help your

business or what we should work on to help all of our existing businesses grow and expand. Please give your additional comments. (BR&E visitor, please take notes on back of page, if need be).

SEE OPEN-ENDED RESPONSES


49. If we find an issue in your survey response in which a certain individual or individuals may be able to respond to your concern in a beneficial way, do you authorize us to release your survey information to them?

62% Yes Your contact information will be shared with the resource person to aid them in understanding your company and the concern. Please sign here to authorize release of your survey information to the appropriate, selected resources: ________________________________________________________________________

No We will provide you information about the resources available to assist you, and you will make the first contact with the resource. The resource will not have access to your survey.

Thank you for participating in our Business Retention and Expansion Strategies Visitation Program. We appreciate the time you've given us and the contribution your business is making to our local economy.

We cannot promise to solve the concerns you mentioned, but we will promise to

try. If we can help you in the future, please call: WALT SALO 218-564-4557 The University of Minnesota is committed to the policy that all persons shall have equal access to its programs, facilities, and employment without regard to race, color, creed, religion, national origin, sex, age, marital status, disability, public assistance status, veteran status or sexual orientation.

Small Business Management Specialized Management Programs

Brainerd Campus Admissions Office501 West College Drive, Brainerd, MN 56401

218.855.8037 or 800.933.0346www.clcmn.edu

Small Business Management DiplomaRequired CoursesSBMT 1110 SBM Organizational Planning 2SBMT 1120 SBM Business Systems 3SBMT 1210 SBM Financial Systems 3SBMT 1220 SBM Financial Management 3SBMT 1230 SBM Financial Analysis 3SBMT 1310 SBM Marketing Systems 2SBMT 1320 SBM Marketing Management 2

Total 18ElectivesStudent must choose an additional 21 credits from the Small BusinessManagement Master Course Listing.

Total 21GRADUATION REQUIREMENTS 39

Career DescriptionsSmall Business owners, managers, and key employees.

Program InformationSmall Business Management (SBM) is designed for business own-ers, managers, and key employees who value increased efficiencyand improved profitability. This flexible, yet reasonably priced pro-gram is offered year-round and may be started at any time. This pro-gram will assist business owners in achieving their goals throughimproved management skills, organization, and operation of theirbusiness.

Instructors work with the students to help them acquire knowledge,and apply management, planning, marketing and financial skills totheir own business. Instruction is primarily delivered through indi-vidualized sessions at the business.

Key topics include:• Employee Records, Reports & Relations• Business Records and Taxes• Financial Statements &Analysis• Inventory Control• Marketing and Advertising• Sales Analysis and Business Planning• Forecasting & Budgeting

The Small Business Management Program provides three enroll-ment options for students. There is a 12 credit “Applications in SmallBusiness Management” and a 25 credit certificate “AdvancedSystems in Small Business Management”. Students who wish tocontinue in the program may also complete the 39 credit diplomaprogram in Small Business Management.

Special Program RequirementsThe Small Business Management program is designed for businessowners, managers, and key employees of a small business. In addi-tion, individuals in the process of starting a small business may alsoenroll.

AdmissionsThe Small Business Management Program is primarily offered asindividualized instruction at the business, with classroom instructionas a key secondary component.

Employment OpportunitiesStudents in this program are currently employed in the field, or inthe process of starting a business.

Menahga BR&E Action PlanSTRATEGY:

PROJECT:

Instructions: Use this template to track the resources you need as you carry out your project. One Line Per resource

# Task Owner Resource Need Budget $ Potential Donors/Grants Actual Funder How Much Funded YTD

Actual Expense

Comments

Totals: $0 $0 $0

Resources requirements definition

Developed by Claudia Cody, University of Minnesota regional Extension Educator November 2008

Menahga BR&E Action Plan

STRATEGY:

PROJECT:

Name Phone Number E-mail

Name Phone Number E-mail

WHO IS HERE?

WHO NEEDS TO BE HERE?

Developed by Jody Horntvedt University of Minnesota Regional Extension Educator

1 of 1

Adeel Ahmed Phone: 320-203-6109 3400 First Street North [email protected] St. Cloud, MN 56303 www.extension.umn.edu/Retail

How large is the local retail market ? The local trade area includes 9,921 people living in 3,846 households for a total market potential of $82 million. The local trade area used for this analysis includes the communities of Menahga, Sebeka, Wolf Lake, and Nimrod as well as the general area between Park Rapids and Wadena. This trade area is based on input from businesses and community leaders in Menahga and Sebeka.

What do we know about households in the trade area?

Median Household Income $40,491 Median Net Worth $46,552 Median Disposable Income $31,882 Median Age 42.7 Households with related children

32% Households with persons 65+

31%

What do we know about housing in the trade area ? Seasonal Housing Units 789 or 24% of total Renter Occupied Units 345 or 11% of total Median home value $119,444

Learn more about how Extension can help your community shape its future. Visit www.extension.umn.edu/community

Results based on an analysis from multiple datasources, compiled using Business Analyst from ESRI (www.esri.com). See Appendix 1 : Data and Methodology for more details.

Menahga and Sebeka Market Area Profile, May 2010

1

Menahga Sebeka Market Area Profile

Introduction: The University of Minnesota Extension created the Market Area Profile (MAP) program to assist Minnesota communities to develop their retail and service sectors. The authors intend existing businesses, potential businesses, and economic development organizations to use the information in this report to better serve their market and develop individual business and main street strategies. University of Minnesota Extension staff created the report through sound secondary data and analysis compiled chiefly through Business Analyst, a GIS software program from ESRI. Report: Created: May, 2010 by Ryan Pesch and Adeel Ahmed, Extension Educators, University of Minnesota Extension. Sponsors: Menahga Sebeka Horizons A special thanks to all participating businesses and members of the local retail study group for their input and direction given to the project. Table of Contents

1. Customer Profile Page 2-6

2. Lifestyle Profile Page 7-10

3. Media and Internet Marketing Profile Page 11-17

4. Retail Gap Analysis Page 18-21

5. Appendix 1: Data and Methodology Page 22-23

2

Menahga-Sebeka Minnesota

Customer Profile

5,357,7005,636,868

1 00%2008 2013 A l R t 0 00%

All data derives from the 2000 census from the US Census Bureau, a division of the US Department of Commerce.

2008 Total Population 9,9212013 Total Population 10,007

1.00%

2,099,7372.48

2,218,1342.48

1.00%

Income:

2013 Households 3,9102013 Average Household Size 2.512008-2013 Annual Rate 0.00%

2008-2013 Annual Rate 0.00%

2008 Households 3,8462008 Average Household Size 2.53

$47,143$62,757$73,083

$23,199$31 884

2013 $46,788

Per Capita Income2000 $15,7252008 $19 481

Median Household Income

2000 $32,7862008 $40,491

2,099,7367.8%8.1%8.8%

13.5%22 1%

$31,884$38,864

$50 000 $74 999 24 2%

$15,000 - $24,999 14.5%$25,000 - $34,999 13.1%$35,000 - $49,999 18.6%

2013 $21,858

2008 Household by IncomeHousehold Income Base 3,846

<15,000 15.4%

2008 $19,481

14.3%16.6%

4.2%4.5%

$80,432

2,218,133

22.1%

2013 Household by IncomeHousehold Income Base 3,911

$150,000 - $199,999 1.0%$200,000+ 1.2%

Average Household Income $48,510

$50,000 - $74,999 24.2%$75,000 - $99,999 7.8%$100,000 - $149,999 4.0%

21.2%5.5%6 0%

6.3%6.6%6.3%

10.4%22.0%15.6%

, ,

$200 000+ 1 0%

$75,000 - $99,999 9.0%$100,000 - $149,999 5.9%$150,000 - $199,999 0.8%

$25,000 - $34,999 11.5%$35,000 - $49,999 15.9%$50,000 - $74,999 29.4%

,<15,000 13.2%$15,000 - $24,999 13.0%

10.7%17.7%23.9%

6.0%$97,774

2,099,7369.8%

$50,000 - $74,999 18.1%

<$15,000 19.3%$15,000 - $34,999 17.6%$35,000 - $49,999 20.9%

$200,000+ 1.0%Average Household Income $53,923

2008 Households by Disposable IncomeTotal Households 3,846

2.4%$63,250$49,570

11.7%9.5%2.1%

Median Disposable Income $31,882

$150,000 - $199,000 0.6%$200,000 + 0.7%

Average Disposable Income $39,571

$75,000 - $99,999 3.2%$100,000 - $149,999 2.3%

3

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Menahga-Sebeka

Customer ProfileAll data derives from the 2000 census from the US Census Bureau, a division of the US Department of Commerce.

Minnesota

2,099,7362008 Households by Net WorthTotal Households 3,846

10.8%

4.7%6.3%5.0%9.9%

12.3%16.0%

19.9%7.6%

$250,000 - $499,999 6.6%$500,000-$999,999 5.1%

$75,000 - $99,999 5.8%$100,000 - $149,999 9.2%$150,000 - $249,999 9.3%

$15,000 - $34,999 11.8%$35,000 - $49,999 6.9%$50,000 - $74,999 8.0%

<$15,000 32.5%

10.8%7.54%

$493,460$129,686

67.0%23.2%

Owner Occupied Housing Units 58.7%Renter Occupied Housing Units 10.6%

2008 Average Net Worth $303,5672008 Median Net Worth $46,552

Housing: 2008 Housing Units

$500,000 $999,999 5.1%$1,000,000+ 4.81%

9.7%

66.0%23.5%10.5%

$118 064

23.2%

Median Home Value2000 $76 696

2013 Housing UnitsOwner Occupied Housing Units 57.2%Renter Occupied Housing Units 10.7%Seasonal Housing Units (including vacant housing) 34.2%

Renter Occupied Housing Units 10.6%Seasonal Housing Units (including vacant housing) 32.6%

18.8%

$118,064$187,003

$100,000 - $149,999 26.0%

2008 Owner Occupied HUs by Value

Total Housing Units 3,258<50,000 14.2%$50,000 - $99,999 25.2%

1,559,1195.6%

10.6%

2000 $76,6962008 $119,4442013 $122,172 $196,336

18.8%20.7%26.5%13.1%

3.9%0.9%

Average Home Value $141,951Median Home Value $119,444

2000 Housing Units by Units in Structure

$219,229$187,003

$300,000 - $499,999 5.2%$500,000 - $999,999 1.1%$1,000,000 + 0.3%

$100,000 $149,999 26.0%$150,000 - $199,999 16.0%$200,000 - $299,999 12.0%

10.7%

67.8%5.2%3.0%2.3%2.4%3.8%

20 + 1.2%

3 or 4 1.1%5 to 9 0.7%10 to 19 0.7%

1, Detached 78.9%1, Attached 0.7%2 0.6%

2000 Housing Units by Units in Structure

Total Housing Units 5,062 2,065,946

4.5%0.0%

Mobile Home 14.4%Other 2.0%

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Minnesota

2000 Housing Units by Year Structure Built

7.0%14.0%18.2%51.2%

1969

2,065,9462.3%6.6%

1969 or Earlier 48.5%Median Year Structure Built 1971

1990 to 1994 5.0%1980 to 1989 13.0%1970 to 1979 21.9%

2000 Housing Units by Year Structure Built

Total Housing Units 5,0621999 to March 2000 3.3%1995 to 1998 7.8%

36.937.6

35.4

2008 Population by Age

2000 40.12008 42.72013 44.2

Population Demographics:

Median Age

9,9216.6%6.5%6.5%

11.6%10.2%11.6%15.9%13.1%

13.1%14.4%15.2%10.9%

5,357,7006.8%6.5%6.7%

25 - 3435 - 4445 - 5455 - 64

Total Population0 - 45 - 9

10 - 1415 - 24 14.1%

13.1%9.1%6.3%2.7%

76.5%

9,92197.4%

0 3%

5,357,70087.2%

4 2%

10.9%6.0%4.1%

85 +18 +

2008 Population by Race/EthnicityTotal Population

White AloneBlack Alone

2.1%75.8%

55 6465 - 7475 - 84

0.3%0.9%0.4%0.3%0.8%1.0%

6.93.9%29.4

4.2%1.1%3.8%1.8%2.0%

3 526 4472008 Population 25+ by Educational AttainmentTotal Population 6 838

American Indian AloneAsian or Pacific Islander AloneSome Other Race AloneTwo or More Races

Hispanic OriginDiversity Index

Black Alone

9.0%20.6%

9.4%

3,526,4473.8%5.8%

28.8%22.6%

Bachelor's Degree 11.0%Master's/Prof/Doctorate Degree 4.8%

High School Graduate 38.9%Some College, No Degree 21.6%Associate Degree 8.0%

Total Population 6,838Less Than 9th Grade 7.7%9th to 12th Grade, No Diploma 8.0%

14.4%5.2%9.2%

4,284,06928.7%56.9%

Widowed 7.5%Divorced 8.7%

Never Married 20.8%Married, Not Separated 63.0%Married, Separated 16.2%

2008 Population 15+ by Marital StatusTotal Population 7,989

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Minnesota

25.8%12.5%

1,895,12766.2%53.7%

With Related Children 25.7%Other Family (No Spouse) 10.1%

Total 3,678Family Households 71.5%Married-couple Family 61.4%

Household Demographics:

2000 Households by Type

1,895,12726.9%33.9%

8.5%33.8%26.9%

6.9%

2000 Households by SizeTotal 3,678

1 Person Household 24.9%2 Person Household 37.6%

Nonfamily Households 28.5%Householder Living Alone 24.9%Householder Not Living Alone 3.6%

With Related Children 6.5%

33.9%15.0%14.4%

6.5%

34.3%

2.1%1.2%

Households with Persons 65+ 30.6%

2000 Ho seholds b Year Ho seholder Mo ed In

21.3%

6 Person Household 2.3%7 + Person Household 1.5%

Households with Related Children 32.2%

3 Person Household 13.8%4 Person Household 12.4%5 Person Household 7.5%

2 Person Household 37.6%

28.4%17.4%16.6%10.0%10.0%

1994

Moved in 1970 to 1979 14.4%Moved in 1969 or Earlier 10.3%

Median Year Householder Moved In 1992

Moved in 1995 to 1998 26.5%Moved in 1990 to 1994 17.5%Moved in 1980 to 1989 19.2%

2000 Households by Year Householder Moved InTotal 3,678

Moved in 1999 to March 2000 12.1%1,895,127

17.6%

42.2%13.7%

3.8%1.5%5+ 2.4%

2 42.7%3 18.2%4 4.9%

2000 Households by Vehicles AvailableTotal 3,678

None 4.8%1 27.0%

1,895,1277.7%

31.2%

1.5%1.8

5+ 2.4%Average Number of Vehicles Available 2.0

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Employment:

2.1%

6.4%13.4%

3.5%11.1%

4.8%

2,752,132

Transportation/Utilities 5.2%Information 1.2%

Manufacturing 12.4%Wholesale Trade 3.0%Retail Trade 11.5%

TotalAgriculture/Mining 4,383Construction 9.6%

2008 Employed Population 16+ by Industry

15.5%22 4%

2.1%8.0%

45.8%3.0%

2,752,13262.5%White Collar 51.1%

Management/Business/Financial 14.1%P f i l 17 5%

Services 42.3%Public Administration 2.6%

2008 Employed Population 16+ by Occupation

Total 4,379

Information 1.2%Finance/Insurance/Real Estate 4.7%

0.5%5.0%3.5%7.2%

22.4%11.3%13.3%15.8%21.7%

Installation/Maintenance/Repair 4.0%Production 8.1%

Blue Collar 31.6%Farming/Forestry/Fishing 2.7%Construction/Extraction 7.6%

Sales 10.1%Administrative Support 9.5%

Services 17.2%

Professional 17.5%

3.2%3.3%0 9%

7.2%5.6%

2,541,611

Public Transportation 0.4%Walked 3.6%Oth M 0 6%

2000 Workers 16+ by Means of Transportation to Work

Total 4,251Drove Alone - Car, Truck, or Van 73.9%Carpooled - Car, Truck, or Van 12.0%

77.6%10.4%

Production 8.1%Transportation/Material Moving 9.3%

2,541,61195.4%

4.4%13.3%

0.9%4.6%

Less than 5 minutes 8.1%5 to 9 minutes 14.8%

Worked at Home 9.5%

2000 Workers 16+ by Travel Time to Work

Total 4,248Did not Work at Home 90.5%

Other Means 0.6%

5.3%2.7%1.5%

4.6%21 9

13.3%31.0%14.4%17.3%

5.4%

Worked at Home 9.5%Average Travel Time to Work (in min) 22 0

45 to 59 minutes 3.9%60 to 89 minutes 3.2%90 or more minutes 2.9%

20 to 24 minutes 11.6%25 to 34 minutes 12.8%35 to 44 minutes 3.2%

5 to 9 minutes 14.8%10 to 19 minutes 30.0%

21.9

Source: U.S. Bureau of the Census, 2000 Census of Population and Housing. Forecasts for 2008 and 2013 from ESRI (www.esri.com).

Average Travel Time to Work (in min) 22.0

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Top Segments: 933 2,402943 1,523873 1,041868 925145 10350 5225 2117 Green Acres 0.7%

37 Prairie Living

22.6%26 Midland Crowd 3.8%33 Midlife Junction 1.3%

22.7%

24.3%24.5%

Agriculture plays an important part of the Prairie Living economy; small, family-owned farms dominate this stable market located mainly in the Midwest. Two-thirds of the households are married-couple families; the median age is 41.3 years. Homeownership is at 80 percent; the median home value is $106,220. Although single-family dwellings are characteristic of these communities, 11 percent of the households live in mobile homes. More than a third of the housing units were built before 1940. These residents are big country music fans and enjoy hunting, fishing, target shooting, and horseback riding. They work on their vegetable gardens, vehicles, and home projects. Many are members of church boards or civic clubs and get involved in civic issues. Because cable TV can be unavailable in these rural areas, many households have a satellite dish. Families with pet cats or dogs are common.

Favoring milder climates and pastoral settings, Rural Resort Dwellers residents live in rural, nonfarm areas. These small,

Index

Lifestyle Profile Summary Community Tapestry classifies US neighborhoods into 65 market segments grouped together according to a detailed national profile. Data souces include Census 2000, Axciom's InfoBase consumer database, and Mediamark Research's Doublebase national customer survey (see appendix 1 for more details).

31 Rural Resort Dwellers

Number of Households Percent

37 Prairie Living

50 Heartland Communities31 Rural Resort Dwellers

46 Rooted Rural

Source: ESRI, 2008 Estimates and Projections

Rooted Rural neighborhoods are located in rural areas throughout the country; however, more than three-fifths of the households are located in the South. Households are dominated by married-couple families. One-third of the households receive Social Security benefits. The median age is 42.2 years. Housing is predominantly single-family dwellings, with a strong presence of mobile homes and some seasonal housing. The median home value is $101,198. Stable and settled, residents tend to move infrequently. They are do-it-yourselfers, constantly working on their homes, gardens, and vehicles. Many families have pets. Residents enjoy hunting, fishing, target shooting, boating, attending country music concerts, and listening to country music on the radio. Many households have a satellite dish; favorite stations include Outdoor Life Network and CMT.

g p g , , ,growing communities mainly consist of single-family and mobile homes, with a significant inventory of seasonal housing. This somewhat older market has a median age of 47.1 years. Most households consist of married couples with no children living at home or singles who live alone. A higher-than-average proportion of residents are self employed and work from home. The median household income is $47,908. Modest living and simple consumer tastes describe this market. The rural setting calls for more riding lawn mowers and satellite dishes. Lawn maintenance and gardening is a priority, and households own a plethora of tools and equipment. Many households own or lease a truck. Residents enjoy boating, hunting, fishing, snorkeling, canoeing, and listening to country music.

Heartland Communities neighborhoods are preferred by approximately six million people. These neighborhoods can be found primarily in small towns in the Midwest and South. More than 75 percent of the households are single-family dwellings with a median home value of $82,080. Most homes are older, built before 1960. The median age is 42.0 years; nearly one-third of the householders are aged 65 years or older. The distinctly country lifestyle of these residents is reflected in their interest in hunting, fishing, woodworking, playing bingo, and listening to country music. In addition to working on home improvement projects, they are avid gardeners and read gardening magazines. They participate in civic activities and take an interest in local politics. Residents order items from catalogs, QVC, and Avon sales representatives.

50 Heartland Communities

46 Rooted Rural

8

• Senior Styles • Small Towns • Lower Middle Class • Skilled / Prof / Mgmt / Srvc • No HS Diploma; HS Grad • Single Family • White

• Work on lawn, garden, DIY projects

• Own shares in mutual funds & bonds

• Order products from Avon • Own / Lease domestic vehicle

• Factories and Farms • Rural • Married – Couples Families • Skilled / Farming • HS Grad; Some College • White

• Own Pets • Own Certificates of Deposit

longer than 6 months • Go hunting, birdwatching • Listen to country music on radio • Own / Lease 4-/all-wheel drive

vehicle

• American Quilt • Rural • Married Couples w/ NO Kids • Prof / Mgmt / Skilled / Srvc • Some College • Single Family; Mobile Home /

Seasonal • White

• Do woodworking and furniture refinishing

• Have overdraft protection • Do target shooting • Watch rodeo / bull riding on TV • Own an ATV / UTV

• American Quilt • Rural • Married couple Families • Lower Middle • Skilled / Prof /Mgmt / Srvc • No HS Diploma; HS Grad • Single Family; Mobile Home • White

• Own dog(s) • Use full service bank • Go hunting, fishing, horseback

riding • Watch rodeos, tractor pulls on

TV • Own an ATV/UTV

9

Lifestyle Profile

Community Tapestry classifies US neighborhoods into 65 market segments grouped together

according to a detailed national profiles. Data souces include Census 2000, Axciom's Infobase

consumer database, and Mediamark Research's Doublebase customer survey

(see Appendix 1 for details)

Tapestry LifeMode Groups

Total

2008 Households

IndexPercentNumber

100.0% 3,846

01 Top Rung

07 Exurbanites

06 Sophisticated Squires

05 Wealthy Seaboard Suburbs

04 Boomburbs

03 Connoisseurs

02 Suburban Splendor

L1. High Society 0 0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

L2. Upscale Avenues

18 Cozy and Comfortable

17 Green Acres

16 Enterprising Professionals

13 In Style

11 Pacific Heights

10 Pleasant-Ville

09 Urban Chic

25 0.7%

0.0%

0.0%

0.0%

0.0%

0.0%

0.7%

0.0%

0

0

0

0

0

21

0

0

0

0

0

0

25

0

5

L3. Metropolis

62 Modest Income Homes

54 Urban Rows

51 Metro City Edge

45 City Strivers

22 Metropolitans

20 City Lights

0 0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0

0

0

0

0

0

0

0

0

0

0

0

0

L4. Solo Acts

39 Young and Restless

36 Old and Newcomers

27 Metro Renters

23 Trendsetters

08 Laptops and Lattes

0 0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0

0

0

0

0

0

0

0

0

0

0

L5. Senior Styles

65 Social Security Set

57 Simple Living

50 Heartland Communities

49 Senior Sun Seekers

43 The Elders

30 Retirement Communities

29 Rustbelt Retirees

15 Silver and Gold

14 Prosperous Empty Nesters

873 22.7%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

22.7%

0.0%

0.0%

0

0

0

0

0

0

1,041

0

0

0

0

0

0

0

0

873

0

0

182


Data Note: This report identifies neighborhood segments in the area, and describes the socioeconomic quality of the immediate neighborhood. The index is a

comparison of the percent of households in the area, by Tapestry segment, to the percent of households or population in the United States, by segment. An

index of 100 is the US average.

Extension Center for Community Vitality, University of Minnesota Market Area Profile

http://www.extension.umn.edu/community/ March2010

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Tapestry LifeMode Groups

Total

2008 Households

IndexPercentNumber

100.0% 3,846

L6. Scholars & Patriots

63 Dorms to Diplomas

55 College Towns

40 Military Proximity

0 0.0%

0.0%

0.0%

0.0%

0

0

0

0

0

0

0

L7. High Hopes

48 Great Expectations

28 Aspiring Young Families

0 0.0%

0.0%

0.0%

0

0

0

0

0

L8. Global Roots

61 High Rise Renters

60 City Dimensions

58 NeWest Residents

52 Inner City Tenants

47 Las Casas

44 Urban Melting Pot

38 Industrious Urban Fringe

35 International Marketplace

0 0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

L9. Family Portrait

64 City Commons

59 Southwestern Families

21 Urban Villages

19 Milk and Cookies

12 Up and Coming Families

0 0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0

0

0

0

0

0

0

0

0

0

0

L10. Traditional Living

34 Family Foundations

33 Midlife Junction

32 Rustbelt Traditions

24 Main Street, USA

50 1.3%

0.0%

0.0%

1.3%

0.0%

0

0

52

0

0

0

50

0

15

L11. Factories & Farms

56 Rural Bypasses

53 Home Town

42 Southern Satellites

37 Prairie Living

25 Salt of the Earth

942 24.5%

0.2%

24.3%

0.0%

0.0%

0.0%

8

2,402

0

0

0

9

933

0

0

0

257

L12. American Quilt

66 Unclassified

46 Rooted Rural

41 Crossroads

31 Rural Resort Dwellers

26 Midland Crowd

1,956 50.9%

3.8%

24.5%

0.0%

22.6%

0.0%

103

1,523

0

925

0

145

943

0

868

0

552


Extension Center for Community Vitality, University of Minnesota Market Area Profile

http://www.extension.umn.edu/community/ March2010

Data Note: This report identifies neighborhood segments in the area, and describes the socioeconomic quality of the immediate neighborhood. The index is a

comparison of the percent of households in the area, by Tapestry segment, to the percent of households or population in the United States, by segment. An

index of 100 is the US average.

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0 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 1400 1500

12345678910111213141516171819202122232425

2627282930

313233

343536

373839404142434445

46474849

5051525354555657585960616263646566

Ta

pe

str

y S

eg

me

nts

Index

Tapestry Index byHouseholds

Data Note: This report identifies neighborhood segments in the area, and describes the socioeconomic quality of the immediate neighborhood. The index is a comparison of

the percent of households or population in the area, by Tapestry segment, to the percent of households or population in the United States, by segment. An index of 100 is the

US average.

12

Newspaper Readership Number of

adults

Percent of

adults

Light newspaper reader 1830 25%

Light‐medium newspaper reader 1243 17%

Medium newspaper reader 1296 17%

Medium‐heavy newspaper reader 1630 22%

Heavy newspaper reader 1311 18%

Read any daily newspaper 3106 42%

Read one daily newspaper 2532 34%

Read two or more daily newspapers 570 8%

Read any Sunday newspaper 3577 48%

Radio ListenershipLight radio listener 1766 24%

Light‐medium radio listener 1098 15%

Medium radio listener 1102 15%

Medium‐heavy radio listener 1523 20%

Heavy radio listener 1816 24%

Internet HabitsHave Access to Internet 5855 78%

Used Internet in last month 4098 55%

Used email in past month 3397 46%

Made purchase online, personal 1505 20%

Made purchase online,business 542 7%

Made travel plans in past month 568 8%

Obtained latest news in past month 1595 21%

Source: These data area based upon national propensities to use various products and services, applied to local demographic composition. Usage data were collected by Mediamark Research Inc. in a nationally representative survey of US households.

Media and Internet Marketing Profile

Based on the mix of customer demographics and lifestyles in your trade area, we have knowledge of

their media and internet habits from national marketing data. Below are some highlights of this

information, although full information is compiled in the following pages.

13

7,462

Product/Consumer Behavior:

Expected Number of

Adults

Expected Percent of

Adults

Expected Percent in

MNInternet Access:

Have Access to Internet 5855 78.5% 86.5%Have access to Internet,at home 3947 52.9% 71.9%Have access to Internet,at work 2339 31.3% 41.9%Have access to Internet,at schl/library 1968 26.4% 26.5%Used Internet/mo,not hm/wrk/schl/lib 1620 21.7% 20.3%Use Internet less than once/wk 442 5.9% 3.9%Use Internet 1-2 times per week 456 6.1% 5.8%Use Internet 3-6 times per week 607 8.1% 8.6%Use Internet daily 637 8.5% 11.3%Use Internet 2-4 times per day 1015 13.6% 18.6%Use Internet 5 or more times/day 940 12.6% 24.4%Used Internet in last month,any 4098 54.9% 72.5%Used Internet/mo,at home 3209 43.0% 63.7%Used Internet/mo,at work 1838 24.6% 35.8%Used Internet/mo,at school/library 360 4.8% 7.4%Used Internet/mo,not hm/wrk/schl/lib 504 6.8% 9.0%

Internet Acivities in past month:Used email 3397 45.5% 64.5%Used Instant Messenger 949 12.7% 24.9%Paid bills online 1089 14.6% 31.6%Visited online blog 316 4.2% 8.3%Wrote online blog 128 1.7% 3.3%Visited chat room 192 2.6% 4.1%Looked for employment 403 5.4% 11.0%Played games online 937 12.6% 19.1%Made trade or tracked investments 332 4.4% 11.0%Downloaded music 572 7.7% 16.4%Made phone call 110 1.5% 2.7%Made purchase, personal 1505 20.2% 32.0%Made purchase,business 542 7.3% 10.0%Made travel plans 568 7.6% 18.3%Watched online video 452 6.1% 15.0%

Market Potential: InternetMenahga-Sebeka Trade Area

Total 2008 Adults:


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7,462


Expected Number of

Adults

Expected Percent of

Adults

Expected Percent in

MN

Information obtained online in past month:New/used car info 504 6.8% 9.6%Financial info 854 11.4% 24.2%Obtained medical info 858 11.5% 16.6%Obtained latest news 1595 21.4% 38.4%Obtained real estate info 338 4.5% 11.3%Obtained sports news/info 826 11.1% 23.0%

Ordered on Internet in last year:Anything 1767 23.7% 37.2%airline ticket 592 7.9% 17.9%CD/tape 205 2.7% 5.1%clothing 697 9.3% 14.7%computer 197 2.6% 3.6%computer accessories 203 2.7% 4.4%DVD 281 3.8% 7.1%flowers 173 2.3% 4.7%software 296 4.0% 6.0%tickets 288 3.9% 9.3%toy 204 2.7% 4.9%

E-commerce purchases in last yearPurchased item at Amazon.com 623 8.3% 13.4%Purchased item at barnes&noble.com 222 3.0% 3.4%Purchased item at bestbuy.com 121 1.6% 2.5%Purchased item at ebay.com 532 7.1% 9.7%Purchased item at walmart.com 223 3.0% 3.5%Spent <$200 online 669 9.0% 11.4%Spent $200-499 online 419 5.6% 8.7%Spent $500+ 650 8.7% 15.3%

Internet ConnectionDial-up modem 1633 21.9% 13.0%Cable modem 713 9.6% 26.6%DSL 1286 17.2% 24.9%Wireless 403 5.4% 10.9%Any broadband 2068 27.7% 56.3%

Total 2008 Adults:


Market Potential: InternetMenahga-Sebeka Trade Area

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7,459


Expected Number of

Adults

Expected Percent of

Adults

Expected Percent in

MNNewspaper readership:

Light newspaper reader 1830 24.5% 18.6%Light-medium newspaper reader 1243 16.7% 19.5%Medium newspaper reader 1296 17.4% 19.9%Medium-heavy newspaper reader 1630 21.9% 20.6%Heavy newspaper reader 1311 17.6% 20.4%Read any daily newspaper 3106 41.6% 44.5%Read one daily newspaper 2532 33.9% 36.0%Read two or more daily newspapers 570 7.6% 8.6%Read any Sunday newspaper 3577 48.0% 54.0%

Newspaper content: Read newspaper: advertisements 1069 14.3% 21.7%Read newspaper: business/finance section 1460 19.6% 26.4%Read newspaper: circulars/inserts/fliers 887 11.9% 16.8%Read newspaper: classified section 2448 32.8% 27.8%Read newspaper: comics 2043 27.4% 25.7%Read newspaper: editorial page 1961 26.3% 25.0%Read newspaper: entertainment/lifestyle section

1668 22.4% 29.6%

Read newspaper: fashion section 697 9.3% 12.4%Read newspaper: food/cooking section 1692 22.7% 24.5%Read newspaper: main news/front page 4343 58.2% 60.6%Read newspaper: health section 872 11.7% 17.7%Read newspaper: home/furnishings/gardening section

1083 14.5% 17.0%

Read newspaper: international/national news 1201 16.1% 17.8%

Read newspaper: local news section 4196 56.3% 57.3%Read newspaper: movie listings/reviews section

1069 14.3% 21.7%

Read newspaper: science & technology section 887 11.9% 16.8%

Read newspaper: sports section 2328 31.2% 36.2%Read newspaper: travel section 872 11.7% 17.7%Read newspaper: TV listings section 1201 16.1% 17.8%

Market Potential: Media ReadWadena Trade Area

Total 2008 Adults:


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7,459


Expected Number of

Adults

Expected Percent of

Adults

Expected Percent in

MNMagazine readership:

Light magazine reader 1819 24.4% 17.9%Light-medium magazine reader 1774 23.8% 20.6%Medium magazine reader 1461 19.6% 20.5%Medium-heavy magazine reader 1172 15.7% 20.2%Heavy magazine reader 1082 14.5% 19.8%

Magazine format:Read airline magazines 166 2.2% 6.2%Read automotive magazines 867 11.6% 12.3%Read baby magazines 283 3.8% 4.1%Read boating magazines 115 1.5% 2.2%Read bridal magazines 217 2.9% 4.2%Read business/finance magazines 848 11.4% 18.7%Read computer magazines 155 2.1% 4.2%Read Epicurean magazines 459 6.2% 8.7%Read fishing/hunting magazines 1576 21.1% 12.9%Read general editorial magazines 2814 37.7% 42.1%Read health magazines 996 13.4% 15.3%Read home service magazines 2716 36.4% 34.6%Read motorcycle magazines 248 3.3% 3.4%Read music magazines 452 6.1% 9.5%Read news and entertainment weekly 2218 29.7% 41.3%Read parenthood magazines 693 9.3% 12.2%Read science/technology magazines 297 4.0% 6.3%Read sports magazines 688 9.2% 16.0%Read travel magazines 320 4.3% 8.8%Read women's fashion magazines 240 3.2% 6.0%

Total 2008 Adults:


Market Potential: Media ReadMenahga-Sebeka Trade Area

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7,459


Expected Number of

Adults

Expected Percent of

Adults

Expected Percent in

MNRadio access:

Light radio listener 1766 23.7% 19.1%Light-medium radio listener 1098 14.7% 20.1%Medium radio listener 1102 14.8% 20.6%Medium-heavy radio listener 1523 20.4% 19.8%Heavy radio listener 1816 24.3% 19.6%

Radio format listened to: adult contemporary 1249 16.7% 19.2%all news 108 1.4% 4.2%all talk 172 2.3% 3.9%alternative 255 3.4% 8.2%classic hits 276 3.7% 4.9%classic rock 958 12.8% 11.1%classical 147 2.0% 3.2%contemporary hit radio 623 8.4% 16.8%country 3171 42.5% 24.6%gospel 300 4.0% 2.3%Hispanic 151 2.0% 3.7%jazz 90 1.2% 3.9%news/talk 978 13.1% 13.2%oldies 569 7.6% 8.4%public 197 2.6% 3.9%religious 353 4.7% 6.8%rock 434 5.8% 11.8%soft adult contemporary 225 3.0% 5.2%sports 140 1.9% 5.1%urban 553 7.4% 11.1%variety/other 486 6.5% 9.5%

Market Potential: Media ListenMenahga-Sebeka Trade Area

Total 2008 Adults:


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7,459


Expected Number of

Adults

Expected Percent of

Adults

Expected Percent in

MN

Radio programming listed to:auto racing 716 9.6% 7.0%baseball playoffs/World Series 592 7.9% 11.5%basketball (college) 497 6.7% 7.2%basketball (pro) 282 3.8% 6.4%football (college) 895 12.0% 12.3%football-Monday night (pro) 548 7.3% 8.4%football-weekend (pro) 929 12.5% 12.9%golf 200 2.7% 2.9%ice hockey 204 2.7% 3.7%NFL playoffs/Superbowl 460 6.2% 0.0%

Listen to radio: 6:00 am - 10:00 am weekday 3767 50.5% 53.2%10:00 am - 3:00 pm weekday 2824 37.9% 37.4%3:00 pm - 7:00 pm weekday 3140 42.1% 46.1%7:00 pm - midnight weekday 1121 15.0% 15.5%midnight - 6:00 am weekday 427 5.7% 5.3%6:00 am - 10:00 am weekend 2595 34.8% 31.7%10:00 am - 3:00 pm weekend 2932 39.3% 42.9%3:00 pm - 7:00 pm weekend 2376 31.9% 33.2%7:00 pm - midnight weekend 1215 16.3% 16.3%midnight - 6:00 am weekend 333 4.5% 4.5%

Total 2008 Adults:


Market Potential: Media ListenWadena Trade Area

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NAICS Name

MN Sales Per

Capita

Average Sales per MN Store

Potential Sales in Trade Area

No. of Stores

(Demand)

No. of Stores

(Supply)*

Potential Stores

(Demand -Supply)

Vehicle, Furniture, and Building Materials44111 New car dealers 2,362$ 20,695,560$ 14,320,105$ 0.7 1 -0.344112 Used car dealers ** 133$ 412,318$ 807,104$ 2.0 2 0.044121 Recreational vehicle dealers ** 61$ 1,920,979$ 368,837$ 0.2 0 0.244122 Motorcycle, boat, & other motor vehicles** 185$ 1,124,219$ 1,122,719$ 1.0 3 -2.04413 Automotive parts, accessories, & tire stores 215$ 719,611$ 1,300,869$ 1.8 2 -0.24421 Furniture stores 191$ 1,575,841$ 1,155,089$ 0.7 0 0.74422 Home furnishings stores 170$ 703,967$ 1,032,013$ 1.5 4 -2.5

44311 Appliance, television, & other electronics stores 318$ 1,838,817$ 1,927,404$ 1.0 1 0.044312 Computer & software stores 59$ 911,497$ 358,829$ 0.4 1 -0.644313 Camera & photographic supplies stores 17$ 847,980$ 104,448$ 0.1 0 0.144411 Home centers 382$ 12,306,608$ 2,318,341$ 0.2 0 0.244412 Paint & wallpaper stores 31$ 920,244$ 186,693$ 0.2 0 0.244413 Hardware stores 103$ 926,679$ 622,184$ 0.7 3 -2.344419 Specialized building material dealers 441$ 1,946,442$ 2,674,843$ 1.4 5 -3.64442 Lawn & garden equipment & supplies stores 262$ 1,716,161$ 1,585,382$ 0.9 1 -0.1

Food, Health, and General Merchandise4451 Grocery stores 1,478$ 4,737,118$ 8,958,192$ 1.9 5 -3.14452 Specialty food stores** 36$ 198,621$ 217,304$ 1.1 3 -1.94453 Beer, wine, & liquor stores 199$ 962,215$ 1,204,940$ 1.3 2 -0.7

Retail Gap Analysis: Menahga-Sebeka Trade Area

This report estimates the potential number of businesses across store categories based on the spending of the area residents (demand) compared to the number of stores in the trade area (supply). Those categores where demand is greater than suppply are oppportunities for businesses development. Demand estimates are calculated from US Economic Census data and supply listings are from a national

database of businesses, revised by local community members for accuracy (see Appendix 1 for more details).

q44611 Pharmacies & drug stores 448$ 3,484,878$ 2,718,532$ 0.8 4 -3.244612 Cosmetics, beauty supplies, perfume stores** 16$ 56,653$ 95,709$ 1.7 0 1.744613 Optical goods stores 27$ 430,814$ 163,876$ 0.4 0 0.444619 Other health care (vitamin, medical equip)** 37$ 198,416$ 223,310$ 1.1 2 -0.94471 Gasoline stations 1,100$ 1,997,714$ 6,667,847$ 3.3 6 -2.7452 General merchandise stores 1,715$ 8,357,120$ 10,394,611$ 1.2 2 -0.8

Clothing 44811 Men's clothing stores 19$ 632,764$ 116,145$ 0.2 0 0.244812 Women's clothing stores 93$ 657,103$ 566,561$ 0.9 0 0.944813 Children's & infants' clothing stores 19$ 702,368$ 117,895$ 0.2 0 0.244814 Family clothing stores 196$ 1,849,804$ 1,190,604$ 0.6 0 0.644815 Clothing accessories stores** 7$ 126,439$ 43,668$ 0.3 0 0.344819 Specialized clothing stores (dress, etc)** 25$ 260,028$ 154,175$ 0.6 1 -0.444821 Shoe stores 59$ 623,300$ 359,029$ 0.6 1 -0.44483 Jewelry, luggage, & leather goods stores 77$ 497,277$ 468,390$ 0.9 0 0.9

Leisure Goods45111 Sporting goods stores 156$ 707,177$ 947,053$ 1.3 2 -0.745112 Hobby, toy, & game stores** 47$ 379,238$ 286,682$ 0.8 0 0.845113 Sewing, needlework, & piece goods stores** 24$ 213,338$ 144,784$ 0.7 0 0.745114 Musical instrument & supplies stores** 23$ 566,062$ 137,396$ 0.2 0 0.245121 Book Store 49$ 339,663$ 297,783$ 0.9 0 0.945122 Tape, compact disc, & record stores 17$ 493,748$ 101,957$ 0.2 0 0.2

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NAICS Name

MN Sales Per

Capita

Sales per Ave. MN

StorePotential Sales in Trade Area

No. of Stores

(Demand)

No. of Stores

(Supply)*

Potential Stores

(Demand -Supply)

Miscellaneous Retail 4531 Florists 35$ 200,103$ 213,367$ 1.1 0 1.1

45321 Office supplies & stationery stores 56$ 1,175,906$ 339,379$ 0.3 0 0.345322 Gift, novelty, & souvenir stores** 71$ 155,220$ 427,363$ 2.8 1 1.84533 Used merchandise stores 27$ 78,620$ 160,828$ 2.0 1 1.0

45391 Pet & pet supplies stores 32$ 492,062$ 191,333$ 0.4 0 0.445392 Art dealers** 7$ 87,347$ 42,929$ 0.5 0 0.545393 Manufactured (mobile) home dealers 35$ 1,660,335$ 212,528$ 0.1 2 -1.951213 Motion picture & video exhibition** 35$ 1,326,008$ 211,366$ 0.2 0 0.254192 Photographic services 67$ 170,832$ 408,873$ 2.4 2 0.4

Rental 5321 Automotive equipment rental & leasing 168$ 1,670,422$ 1,018,666$ 0.6 1 -0.4

53222 Formal wear & costume rental** 4$ 419,936$ 23,327$ 0.1 1 -0.953223 Video tape & disc rental 26$ 356,665$ 158,498$ 0.4 1 -0.65323 General rental centers** 10$ 266,146$ 60,422$ 0.2 0 0.2

Amusement and Recreation 7131 Amusement parks & arcades** 13$ 516,643$ 77,986$ 0.2 1 -0.87139 Other amusement (bowling, golf, fitness) 198$ 244,851$ 1,203,104$ 4.9 7 -2.1

Accomodation and Food Services7211 Traveler accommodation 414$ 1,085,592$ 2,511,750$ 2.3 6 -3.77212 RV parks & recreational camps** 16$ 114,079$ 95,467$ 0.8 4 -3.27221 Full-service restaurants 540$ 723,272$ 3,276,145$ 4.5 6 -1.57222 Limited-service eating places 439$ 555,217$ 2,661,752$ 4.8 1 3.87224 Drinking places (alcoholic beverages) 68$ 265,422$ 410,582$ 1.5 8 -6.5

Auto and Equipment Services8111 Automotive repair & maintenance 325$ 196,533$ 1,971,725$ 10.0 11 -1.0

81141 Home/garden equipment & appliance repair** 9$ 55,248$ 55,441$ 1.0 2 -1.081142 R h l t & f it i ** 5$ 36 147$ 32 563$ 0 9 1 0 181142 Reupholstery & furniture repair** 5$ 36,147$ 32,563$ 0.9 1 -0.181143 Footwear & leather goods repair** 1$ 40,398$ 4,342$ 0.1 1 -0.981149 Personal goods repair (watch, boat, garment) ** 12$ 13,399$ 70,500$ 5.3 7 -1.7

Personal Services812111 Barber shops** 1$ 2,960$ 4,365$ 1.5 0 1.5812112 Beauty salons** 79$ 54,630$ 478,079$ 8.8 8 0.8812113 Nail salons** 5$ 32,890$ 30,502$ 0.9 0 0.981219 Other personal care services** 14$ 35,719$ 84,758$ 2.4 5 -2.681231 Coin-operated laundries & drycleaners** 6$ 78,079$ 36,866$ 0.5 1 -0.581232 Drycleaning & laundry (except coin-operated) 19$ 234,005$ 118,118$ 0.5 0 0.581291 Pet care (except veterinary) services** 4$ 23,289$ 27,054$ 1.2 0 1.281292 Photofinishing** 19$ 249,849$ 113,142$ 0.5 0 0.5

* Existing store records are from a national business database from InfoUSA and compiled from public sources including the Yellow Pages and annual reports. Care should be taken to investigate actual local conditions, including the number of operating businesses in any NAICS category.

** Denotes a store category with a high level of non-employers (over 40% of all MN businesses)

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New car dealersUsed car dealers

Recreational vehicle dealers Motorcycle, boat, & other motor vehicles

Automotive parts, accessories, & tire storesFurniture stores

Home furnishings storesAppliance, television, & other electronics stores

Computer & software storesCamera & photographic supplies stores

Home centersPaint & wallpaper stores

Hardware storesSpecialized building material dealers

Lawn & garden equipment & supplies storesGrocery stores

Specialty food storesBeer, wine, & liquor storesPharmacies & drug stores

Cosmetics, beauty supplies, perfume stores

Deficit of stores Surplus of stores

Retail Gap Estimates by Store Format

(3.00) (2.00) (1.00) ‐ 1.00 2.00 3.00 4.00

New car dealersUsed car dealers

Recreational vehicle dealers Motorcycle, boat, & other motor vehicles

Automotive parts, accessories, & tire storesFurniture stores

Home furnishings storesAppliance, television, & other electronics stores

Computer & software storesCamera & photographic supplies stores

Home centersPaint & wallpaper stores

Hardware storesSpecialized building material dealers

Lawn & garden equipment & supplies storesGrocery stores

Specialty food storesBeer, wine, & liquor storesPharmacies & drug stores

Cosmetics, beauty supplies, perfume storesOptical goods stores

Other health care (vitamin, medical equip)Gasoline stations

Men's clothing storesWomen's clothing stores

Children's & infants' clothing storesFamily clothing stores

Clothing accessories storesSpecialized clothing stores (dress, etc)

Shoe storesJewelry, luggage, & leather goods stores

Sporting goods storesHobby, toy, & game stores

Sewing, needlework, & piece goods storesMusical instrument & supplies stores

Deficit of stores Surplus of stores


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Traveler accommodationTape, compact disc, & record stores

General merchandise storesFlorists

Office supplies & stationery storesGift, novelty, & souvenir stores

Used merchandise storesPet & pet supplies stores

Art dealersManufactured (mobile) home dealers

Motion picture & video exhibitionAutomotive equipment rental & leasing

Formal wear & costume rentalVideo tape & disc rentalGeneral rental centersPhotographic services

Amusement parks & arcadesOther amusement (bowling, golf, fitness)

Traveler accommodation

Deficit of Stores Surplus of Stores


(6.00) (4.00) (2.00) ‐ 2.00 4.00 6.00 8.00 10.00

Traveler accommodationTape, compact disc, & record stores

General merchandise storesFlorists

Office supplies & stationery storesGift, novelty, & souvenir stores

Used merchandise storesPet & pet supplies stores

Art dealersManufactured (mobile) home dealers

Motion picture & video exhibitionAutomotive equipment rental & leasing

Formal wear & costume rentalVideo tape & disc rentalGeneral rental centersPhotographic services

Amusement parks & arcadesOther amusement (bowling, golf, fitness)

Traveler accommodationRV parks & recreational camps

Full‐service restaurantsLimited‐service eating places

Drinking places (alcoholic beverages)Automotive repair & maintenance

Home/garden equipment & appliance repairReupholstery & furniture repairFootwear & leather goods repair

Personal goods repair (watch, boat, garment) Barber shopsBeauty salons

Nail salonsOther personal care services

Coin‐operated laundries & drycleanersDrycleaning & laundry (except coin‐operated)

Pet care (except veterinary) servicesPhotofinishing

Deficit of Stores Surplus of Stores


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Appendix I: Data and Methodology

Tapestry Segmentation Profile: Segmentation systems operate on the theory that people with similar tastes, lifestyles, and behaviors seek others with the same tastes—“like seeks like.” These behaviors can be measured, predicted, and targeted. ESRI’s segmentation system, Community™ Tapestry™, combines the “who” of lifestyle demography with the “where” of local neighborhood geography to create a model of various lifestyle classifications or segments of actual neighborhoods with addresses—distinct behavioral market segments. Segmentation Methodology: Based on the foundation of proven segmentation methodology introduced more than 30 years ago, the Community Tapestry system classifies U.S. neighborhoods into 65 market segments. Neighborhoods with the most similar characteristics are grouped together while neighborhoods showing divergent characteristics are separated. Each neighborhood is analyzed and sorted by more than 60 attributes including income, employment, home value, housing type, education, household composition, age, and other key determinants of consumer behavior. U.S. consumer markets are multidimensional and diverse. Using a large array of attributes captures this diversity with the most powerful data available.

Data sources such as Census 2000 data, ESRI’s proprietary demographic updates, Acxiom’s InfoBase consumer database, Mediamark Research Inc.’s Doublebase 2004 national consumer survey, and other sources are used to capture the subtlety and vibrancy of the U.S. marketplace. Source: Community Tapestry Handbook, May 2006. Available at http://www.esri.com

Media, Travel and Leisure Market Potential: These habits are derived from an ongoing, comprehensive study of the adult population of the United States called The Survey of the American Consumer. The survey is conduced by Mediamark Research, a national marketing firm. Conducted continuously since 1979, Mediamark surveys the demographics, product usage, and media exposure of all persons aged 18 and over in the contiguous 48 states.

Market Potential Methodology: One adult per household is selected to participate in the survey. Each listed household is predesignated with the sex of the prospective respondent. If the household does not have any adult member of the predesignated sex, then the available respondent is selected. This is done in such a way that men and women constitute, in effect, separate samples of randomly selected individuals.

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The completed Mediamark sample consists of over 25,000 respondents. Each year the sample is completely redrawn, with 13,000 new respondents entering the survey every six months. 2,400 new clusters are selected yearly from a continuously updated master list.

Resulting data is weighted to reflect the probabilities of selection inherent in the sample design and then balanced so that major study demographics match the most recent independent estimates. Weighting and subsequent balancing are accomplished within the male and female portions of the sample. The samples are then balanced on a set of population parameters. For more information, see http://www.mediamark.com and follow The Survey of the American Consumer. Retail Gap Analysis: The retail gap analysis is a basic comparison of the demand for retail goods and services in an area and the supply of retail goods and services in the same area. Store categories where demand is greater than supply hold opportunity for business development and possible investigation. Demand Data and Methodology: Demand is calculated from 2002 US Economic Census data updated for inflation. The US Economic Census is a federally-mandated census of businesses, which surveys all medium, large, and multi-establishment firms as well as compiles data on small firms and select industries from other federal administration records. Of particular note are the gross sales estimates per stores category (NAICS code), which we use to calculate demand. Only Minnesota data were used to represent local consumption patterns and calculate per capita spending. For each Market Area Profile, the population of the target trade area is multiplied by per capita spending across all store categories, giving an estimate of gross sales demand. To best illustrate a store gap, total sales are converted into store equivalents using the average sales per store in each category. Supply Data and Methodology: Supply data is from InfoUSA, a national private business data compiler. The company collects information on over 12 million private and public US companies from various public data sources, including yellow pages, annual reports, and others business directories. For each Market Area Profile, business listings in the target area are sorted according to store category (NAICS code) and matched with the demand estimate in the same category for comparison.

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