News and Events

On Thursday, January 26, 2012, Jeff Borling represented the region at the 2012 Minnesota Green Chemistry Conference, delivering a presentation highlighting the many opportunities available in northeast Minnesota and northwest Wisconsin for chemical and fuel companies utilizing renewable wood resources to produce value-added goods. Borling noted the closure of the three Ainsworth wallboard factories in northern Minnesota as a clear opportunity for these growing companies, both in the advantage of leveraging existing assets at the plant sites themselves, and in the advantage of recapturing the un- or under-utilized timber resources no longer being harvested for these production facilities. 

An overview of the progress made by APEX and the Itasca Economic Development Corporation (IEDC) in redeveloping one of these plants as the Itasca Eco Industrial Park was also provided, with high-level information regarding the integrated development concept IEDC and APEX are leveraging to promote the growth of synergistic wood products companies at this location. As talks progress with a potential anchor tenant at the site, this site could offer significant competitive advantages to co-located companies seeking to produce green chemicals and other value-added goods from wood, or from the byproducts generated by the anchor tenant. 

Aditional speakers at the conference included representatives from Dow Chemical Company, SC Johnson, Ecolab, Segetis, Reluceo, the Minnesota Dept. of Employment & Economic Development (DEED), and the BioBusiness Alliance of Minnesota, among others.  These and many other well known companies are in the process of developing and/or bringing to market exciting new products that could very well be made from wood feedstocks in the near future. 

These products include plastics, reinforced composites, pigments and inks, paint additives, adhesives - even compostable baby diapers - all of which would be a welcome addition in helping to diversify the forest products industries of Minnesota and Wisconsin and all of which would be welcome additions as manufacturing processes housed at the Itasca Eco Industrial Park.

To learn more about Minnesota's Green Chemistry activities or the opportunities available for your business at the Itasca Eco Industrial Park, please contact Jeff Borling: 218-326-9411 x.23

Over the past several weeks, Per Carlsson, owner of ABioNova, a Swedish biomass boiler manufacturer, has been on site at the Wolf Ridge Environmental Learning Station in Finland, Minnesota, overseeing the installation of his BioMax Commercial Boiler system, which were introduced into the U.S. market in early 2010. APEX has worked together with the BioBusiness Alliance of Minnesota to assist ABioNova in all aspects of its U.S. expansion strategy, from identifying potential customers and market opportunities to establishing contract agreements with local companies capable of providing manufacturing support, sales and distribution strategies, installation and service agreements, and more. 

In partnership with Italian designer D’Alessandro Thermomeccanica Company of Miglianico, Italy, ABioNova has developed a biomass boiler system that ranges in size from 440,000 to 6,800,000 btu/hour output capacity.  These unique systems use the latest in computer-controlled technology to maintain the highest possible efficiency, no matter what type of biomass fuel is burned - woodchips, wood pellets, etc. To bring these systems to the U.S. market, ABioNova brought on WoodMaster out of Red Lake Falls, MN as its sales and distribution partner and set up a contract with Superior Steel in the Twin Ports to provide manufacturing support.

Although the team has already installed several boilers in the northeastern U.S., the installation in Finland, Minnesota represents the first project in the APEX service territory. This installation involved two boilers, which allows for greater handling of peak and off-peak loads. The smaller boiler offers a capacity of 1.2 million BTU/hr and the larger about 2.2 million BTU/hr. Although these systems can burn wood chips, this installation is set up to burn wood pellets, with a 20-ton pellet silo on site. 

In the coldest part of the year, 20 ons of wood pellets would provide about 10 or so days of heating for this customer. The pellets are being supplied by Great Lakes Renewable Energy of Hayward, Wisconsin and estimates suggest that these pellets will offer a 50% cost savings over propane per million BTU. ABE Systems of Duluth was the prime contractor on the install and may provide similar support for additional installations being considered in this region.

This project tells a great story about the ability of biomass and wood pellet fuels to allow regional economies to capture as much energy spending within their local communities as possible. Instead of paying twice as much for propane and seeing almost all of those dollars flow immediately out of the region, Wolf Ridge will spend less for fuel harvested and produced in northern Wisconsin, they will feed that fuel into boilers manufactured in Superior, and the boilers were installed and will be serviced by Minnesota companies. All of this leads to new economic activity and jobs in our region.

Several new members have joined APEX in 2012, including Involta, an Iowa-based company which provides full service data center facilities and expertise to manage and protect mission critical computer systems and associated data. Founded in 2007, Involta was ranked #40 on the 2010 Inc 500 list of the fastest growing private companies in the United States and is recognized as a preeminent provider of data center facilities and technology services in the Central United States. APEX and its partners worked extensively with the Involta management team in 2011, as the Company moved forward with plans for a new data storage facility in the Duluth Technology Park.

Also new to APEX this year is CW Technology, a leading provider in networks, information technology, print management and phone systems in the upper Midwest. CW Technology serves a wide range of customers and clientele from all over the five-state region, including city governments, health care providers, financial institutions, regional corporations, small businesses and home users. CW Technology recently announced several new additions to its Duluth staff and anticipates a strong year in 2012.

Granite Equity Partners has also joined APEX in 2012, further strengthening the relationship between APEX and one of Minnesota's leading private investment firms. Headquartered in St. Cloud, 

Granite Equity Partners is a private investment firm founded by community-based entrepreneurs, executives, investors, and business professionals, who intend to make a positive impact on businesses in Greater Minnesota. The firm specializes in financing buyouts, recapitalizations, and growth company transactions, which include the sale or purchase of a business, generational transfers, or business expansions.

Finally, we are pleased to report that Citon Computer Corp has joined APEX this year. Citon specializes in IT innovation - from customized commercial PCs, to the design and deployment of high-end security solutions for international companies. The Company recently relocated to a new headquarters building in downtown Duluth to accommodate the growth of its three core businesses - Citon, Telcologix and Vilarri Mobile Solutions. The new facility will also house Citon's new Cloud Computing Data Center, further expanding its service offering to customers and clientele.

Like all APEX members, the companies above have a vested interest in seeing the communities of northeast Minnesota and northwest Wisconsin thrive. They have invested in APEX because of our results-driven approach to driving new investments and private sector job growth throughout the region.  If your business is interested in joining APEX, you can learn more by contacting Sandy Johnson at: (218) 740-3667 

In the meantime, please join us in welcoming Involta, CW Technology, Granite Equity Partners, and Citon Computer Corp as the newest members of APEX!

On December 16, 2012, Joe Broking, President & CEO of Itasca Economic Development Corporation (IEDC), met with Rob West, President & CEO of APEX to discuss the results of the two organizations’ collaborative efforts over the past two years and to renew the contract which defines the agreement. Under the terms of this arrangement, APEX provides a fulltime staff person to serve as a member of the IEDC team in Grand Rapids, with an objective of driving new economic activity and job growth in and around Itasca County.

The contract with APEX, initiated in February, 2010, came on the heels of the IEDC’s decision to purchase the former Ainsworth oriented strand board manufacturing facility in Grand Rapids and has provided a necessary level of support as IEDC completed a period of management transition and worked to redevelop the former board plant for future use. As such, much of the team’s work over the past two years has been focused on redeveloping the site as the Itasca Eco Industrial Park (IEIP), a premiere location for world-class manufacturing operations in the heart of North America.

In marketing this property to new and expanding businesses, the APEX/IEDC team sought to attract companies which would leverage the region’s extensive timber resources, so as to regain not just the production jobs lost through the closure of the Ainsworth operation, but also the logging and supplier jobs associated with the timber demand of the former OSB mill.

Given the sustained downturn in the nation’s housing market and flat growth reported in the region’s paper/pulp mills, the team quickly set its sights on the advanced biofuels, biochemical and biopharmaceutical industries, as among the few areas of notable growth in the nation’s forest products sector. An extensive marketing plan was developed to penetrate these industries and today, the team is pleased to report that a memo of understanding has been executed with one of the world’s leading advanced biofuels producers. Formal agreements are expected to be secured sometime in 2012.

Today, as the APEX/IEDC team looks to renew its contract for the next two years, the 2012-2013 marketing plan has been expanded to focus on a number of other opportunities in and around Itasca County, beyond the work which continues to progress at the IEIP. The APEX/IEDC team will continue its efforts to close the deal with the potential anchor tenant and to market the remaining land parcels to other synergistic businesses, but 2012 will also see the rise of new initiatives aimed at supporting the large mining-related projects in Itasca County and expanding the IT/Computer Sciences sector in the Grand Rapids area.

If you would like to learn more about APEX’s work in Itasca County and across Minnesota’s Iron Range communities, please contact Jeff Borling at: (218) 326-9411, ext. 23

On November 16-17, 2011, Elissa Hansen, APEX Director of Business Development attended the Policy and Progress: Border to Border Broadband conference held at the Greysolon Ballroom in Duluth. Hosted by the Blandin Foundation, the conference opened with an overview of the National Broadband Policy by Tom Koutsy from Connected Nation. Connect Minnesota, a subsidiary of Connected Nation, also provided an overview of efforts aimed at getting all broadband providers in the state communicating effectively with one another. Connect Minnesota has created and kept an updated detailed map of the state's broadband coverage, thereby helping to accurately pinpoint the major gaps within the state. You can learn more by visiting www.connectmn.org

The other major focus areas covered at the conference included the Minnesota Intelligent Rural Communities (MIRC) projects. The four projects occurring in northeast Minnesota include:

1. Cook County: Fiber Optics through the Forest by Arrowhead Electric Cooperative
2. Greater Minnesota Broadband Collaborative by Enventis Telecom
3. Fiber to the Premise in Lake County by Lake County 
4. Northeast Minnesota’s Middle Mile Fiber Project by Northeast Service Cooperative

 
Each project focuses on creating more connectivity in varying ways across the Arrowhead Region and throughout Minnesota and Wisconsin, while further educating the public on the benefits of expanded broadband infrastructure and its capabilities for personal and business use. To learn more about how APEX is leveraging this world-class infrastructure to expand the region's business base, please contact Elissa Hansen at (218) 740-3667

On Wednesday, October 26, 2011, Elissa Hansen, APEX Director of Business Development attended the Minnesota Chamber of Commerce’s 2011 Manufacturers Summit in Minneapolis. The Chamber estimates that Minnesota manufacturers contribute more than $30 billion to the state's economy, representing 17% of the state’s gross domestic product. With nearly one in seven jobs in Minnesota tied to the manufacturing industry, Minnesota manufacturers are clearly the backbone of our economy.

As global pressures and changing demographics present new challenges for manufacturers, the Minnesota Chamber of Commerce's 2011 Manufacturers Summit provided an insightful glimpse into the future of this dynamic segment of our economy. The event was well attended and the attitude among the manufacturers present was generally optimistic.

Major takeaways for our local manufacturers included eight "best practices" designed to keep their operations thriving and growing in today’s highly competitive global marketplace.  These include:

 
1. Invest in training your workforce.
2. Invest in automation and high-tech.
3. Create a culture of continuous improvement.
4. Implement automated performance tracking.
5. Measure procurement and on-time delivery.
6. Manage vendor relationships to reduce costs.
7. Pass on pricing increases.
8. Expand into international markets.

It comes as no surprise to those of us in northeast Minnesota and northwest Wisconsin that investing in a well trained, productive workforce is the #1 key to success in the manufacturing sector. Technologically Advanced Worker’s (TAWs) were stressed in various parts of the day’s discussions at the 2011 Manufacturers Summit, with speakers providing multiple examples of successful workforce training programs, including the Arrowhead's very own Applied Learning Institute.  

Other programs cited include "Dream !t Do !t" and the Obama Administration’s Board on Jobs & Competitiveness Council’s Right Skills Now program. In one way or another, all of these programs are focused on increasing the number of people entering the workforce in skilled production, technology, engineering, and other industry-focused areas.

To learn more about workforce development initiatives and other efforts to support manufacturing businesses in northeast Minnesota and northwest Wisconsin, please contact Elissa Hansen at: (218) 740-3667

Or, if you are a manufacturer who needs focused strategic support as you grow your business and compete in the global marketplace, consider contracting with the APEX Strategic Resources Group.  Contact Peter Miller today to learn more.

On Thursday, October 25, 2011, Jeff Borling, APEX Director of Itasca Business Development, joined a delegation of regional business and community leaders to testify before the MPCA Citizens' Board in support of US Steel's expansion of the Keewatin Taconite plant in northeast Minnesota. The hearing centered on the approval of two water quality permits associated with the expansion project, which involves the re-commissioning of a portion of the mining operation that was shut down around 1980.

Borling represented APEX and IEDC in describing how economic and environmental issues are often inextricably entwined in Minnesota's natural resource-rich Arrowhead Region, resulting in a history of sound planning and development which has balanced the need for jobs against the desire to protect the natural environment in this beautiful place we call home. 

In considering the transparency with which US Steel has approached this project and the significant investments the Company has made in deploying new, cutting-edge environmental technology in the State of Minnesota, the majority of testimonials applauded the project and welcomed the much needed jobs and economic activity it will produce. Testimonials were also provided by Rep. Carly Melin, District 05B; Senator Tom Saxhaug, District 03; Jeremy Smolich, Plant Manager, Keewatin Taconite; Bud Stone, President, Grand Rapids Area Chamber of Commerce; and Mayor Tom Sampson from the City of Keewatin, among others.

After careful deliberation, the MPCA Citizens' Board approved the water quality permits and said that together with the air quality permit approved by the board in September, these actions "show a way forward to protecting the environment while still providing for needed economic expansion." Approval of the air and water permits means the MPCA has removed one of the last remaining barriers to expansion of the Keewatin Taconite operation. All that remain are two wetlands-related permits, one from the MPCA and one from the US Army Corps of Engineers, both of which are expected to be issued sometime in the next 6 to 10 months. 

Once final permits are approved and the expansion project begins full-steam, estimates show the potential to create more than 120 permanent high-paying jobs in the Keewatin area, along with 500 temporary construction jobs over the next several years.  More importantly, the approval of these permits shows that northeast Minnesota continues to value the culture and communities built around the region's mining industry - past, present and future.

In the meantime, APEX and IEDC will continue to engage with the large mining projects currently underway in Itasca County and across the Iron Range, lending our support in any way possible.  Other activities include playing a supportive role in workforce development and training initiatives through our members and other partners, and we are also actively working with a number of mining suppliers and related manufacturing operations seeking to expand or relocate their operations into northeast Minnesota. 

If your business is poised to grow alongside Minnesota's bustling mining and manufacturing sector, please contact Jeff Borling today to find out how APEX and IEDC can support your success: (218) 326-9411 ext. 23

On October 4th, 2011, the APEX team participated in the Northern Regional Broadband Networks Forum: Driving Business Development and Innovation. During this afternoon forum, over 100 area business owners and leaders gathered to learn more about new business opportunities available through the region's ever-expanding fiber optics network, while further exploring what networks currently exist or are being built in our region. Rob West, APEX President & CEO, facilitated the discussion and moderated presentations delivered by representatives from some of the region's leading companies, public sector leaders and academic institutions, including Involta, UW Extension, Cook County, Granite Gear, and UnitedHealth Group. Representatives from each entity commented on various elements of how broadband technology impacts their day-to-day business, with specific examples of how they have successfully leveraged this technology for greater access to customers, deeper collaborations, educational transformation, and greater rural competitiveness.

APEX would like to thank its economic development partners Minnesota Power, Blandin Foundation, Northspan Group and the Northland Technology Consortium for sponsoring this event.  To learn more about how you can leverage broadband technology to grow your business, please contact Elissa Hansen at: (218) 740-3667

On Thursday, September 29th, 2011, Elissa Hansen, APEX Director of Business Development attended and exhibited at the Arrowhead Manufacturers & Fabricators Association (AMFA) Energy Conservation for Industry & Tabletop Trade Show. This one-day conference was held at the Holiday Inn in Duluth and provided tips and advice on how to conserve energy in lighting, motors/drive, compressed air, boilers and more. Industry-leading experts advised the group on strategies for getting an energy conservation project approved and how to realize a meaningful return on investment in conserving energy costs. The Tabletop Trade Show, which typically was held in Alexandria, MN was well attended and displayed an array of products and services available through AMFA members across northeast Minnesota and northwest Wisconsin. To learn more about how an AMFA membership could benefit your business, please contact Executive Director Sandy Kashmark at (877) 330-2632

On September 22, 2011, APEX Members and economic development partners gathered together with representatives from Involta to celebrate the groundbreaking of a new $10.5 million hardened enterprise data center in the Duluth Technology Park. Construction of Phase I, a 24,000 square foot facility, should be completed and operational by mid-year 2012. In addition, a $2.3 million satellite data center will be housed in the former Daugherty Hardware building at Sixth Avenue East and Fourth Street to serve Essentia Health, one of Involta's largest clients in the Duluth area.

Bruce Lehrman, Involta's CEO, called this "a very exciting day," and thanked APEX and its many partners for helping to keep the project moving forward. This milestone comes after nearly five years of persistent hard work, since the APEX management, staff, board of directors and general membership first conceptualized the data center attraction strategy and implemented a marketing campaign highlighting the region for growing companies in this dynamic industry. The next phase of this strategy will be rolled out in early 2012. To learn more, please contact Elissa Hansen at (218) 740-3667