News and Events

After nearly eight years as President & CEO, Rob West has announced his intention to resign from APEX in mid-2012 to pursue new opportunities.  West informed the APEX Executive Committee of his decision in July of 2011, in order to allow for a full year of succession planning and executive recruitment.

 

On Thursday, November 3, 2011, at a regular meeting of the APEX Board of Directors, West and APEX Board Chair Dr. Tom Patnoe provided members with an update on the management succession plan the APEX Executive Committee has developed in preparation for West's departure. Although none are pleased to be saying goodbye to APEX's founding executive after nearly a decade of successful leadership, APEX members were quick to offer their feedback and support for the executive search process, which will be led by KeyStone Search out of Minneapolis.

 

Rebecca Driscoll, Principal with KeyStone Search, was on hand to provide an overview of the executive search process and to answer any questions members had about the methodology, the types of candidates being sought, and the basic philosophies KeyStone pursues in meeting the needs of their client organizations. At the heart of KeyStone's approach lies a proprietary process to understand, identify and create a common language to describe the client organization's culture and core values. 

 

Rather than relying on their "gut feel" to understand APEX's unique culture, KeyStone focuses on 14 components which must all be executed with excellence and in true partnership with the client organization, before the "right" candidate can be secured. Interviews with APEX members, economic development partners, staff, and other relevant stakeholders were held during the final weeks of 2011, as KeyStone works to assess the culture and core values this dynamic organization upholds.

 

APEX members raised various questions, including several regarding the emphasis placed on candidates with local ties to the region APEX serves.  Although Driscoll acknowledged the importance of place and the need for APEX's next CEO to understand the unique values and characteristics of northeast Minnesota and northwest Wisconsin, she also noted that as APEX continues to grow, it is important that the next leader be measured against successful executives nationwide. She cited the executive search process KeyStone recently concluded for the Blandin Foundation in Grand Rapids as an example of similar work in the region.

 

Rob West joined APEX nearly 8 years ago and has successfully led the organization from a grassroots campaign led by a handful of local executives, to a regional engine for business and economic development activity in a nine-county territory of northeast Minnesota and northwest Wisconsin. With support from over 65 of the region's leading private sector employers, APEX, together with its partners, has helped to create or retain more than 2,700 jobs and has spurred on millions of dollars in new economic activity under West's leadership.

 

Although Rob is quick to correct anyone who suggests this is a "retirement," his departure from the organization is indeed pending and the new chief executive is expected to be in place sometime around June of 2012. Over the next several months, we at APEX hope you will join us in thanking Rob for his leadership and his service to the region over the past decade.  There's no telling what will be in store for him over the next ten years, but no doubt his work will continue to benefit the region and all those who work with him. 

 

If you have any questions about APEX or the executive search process, or if you have a candidate you would like to recommend, please contact Rebecca Driscoll at: (612) 375-8841

 

On December 20th, 2011, APEX Members gathered to learn more about the opportunity of hiring from within the Duluth at Work program. With the objective of expanding employer partnerships, the program featured a point of view by Mayor Ness, insights about our future economy from Drew Digby of DEED, two employee/participant testimonials and one employer testimonial. The event was a great success and was well attended by human resources professionals from key employers in the area. As a result of this event, the Duluth At Work program has already yielded five new employer partner relationships, with additional follow-up scheduled for the next few weeks to bring even more connections into the portfolio.

Since 2008, Duluth at Work has focused efforts on two target groups - job seekers and small business owners. A snapshot of the program’s success is as follows.

 
Workforce Development / Job Seekers: 
    • 255 participants 
    • 245 (96%) completed work-related trainings 
    • 192 (75%) successfully secured and maintained long term employment 
    • Results: Increasing incomes, building financial assets, homeownership, higher

      education, reduction in public benefits, career laddering and promotion

 

Small Businesses and Entrepreneurs: 
    • 59 business owner and entrepreneurial participants 
    • 57 completed 9 week trainings, in peer groups and/or received targeted technical

      assistance to more fully develop their business fundamentals and maintain a

      competitive edge in our changing economy 
    • Results: Increasing revenues, new jobs created, storefront renovation loans,

      leverage of new and more diverse funding, expansion into new markets or product

      lines
 
Duluth at Work is a workforce development/poverty reduction model co-facilitated by Duluth LISC and the City of Duluth. To learn more, please contact Emily Larson at: (218) 355-8070

 

On January 31, 2012, APEX is pleased to announce that Dr. Eric W. Kaler, President of the University of Minnesota, will be featured as the keynote speaker at the 2012 Annual Meeting, beginning at 3:00 p.m. at the Kitchi Gammi Club in Duluth.  At this invite-only event, APEX members will review the activities and outcomes of 2011, while looking ahead to another successful year in 2012. 

 

After the regular business portion of the meeting, Dr. Kaler will present the APEX Board of Directors and membership with information regarding his plans for the University system, including the role he sees for more rural campuses like the University of Minnesota-Duluth. With APEX members representing an effective cross-section of the region's business community, questions are sure to arise on the issues of workforce development, investments in the Arrowhead Region, and the potential for enhanced interaction between the University system and the local communities it serves. 

 

Prior to assuming the presidency at the University of Minnesota on July 1, 2011, Dr. Kaler served as provost and senior vice president for academic affairs and vice president for Brookhaven National Laboratory affairs at Stony Brook University in Stony Brook, New York. Kaler received his undergraduate degree from the California Institute of Technology in 1978 and his Ph.D. in chemical engineering from the University of Minnesota in 1982.

Kaler has received many awards and recognitions for his research, including election to the National Academy of Engineering in 2010. President Kaler and his wife, Karen, have two adult sons, Charlie and Sam. In addition to traveling with his family, Dr. Kaler loves to read, watch baseball and play with his dogs, Mo and Lida. 

 

Please join us in welcoming Dr. Kaler as the keynote speaker at the 2012 APEX Annual Meeting.  We look forward to visiting with you on the 31st and thank you for your ongoing support. To learn more about the APEX Annual Meeting, please contact Sandy Johnson 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 25th, 2011, the APEX team attended the Minnesota Governor's 2011 Job Summit at the Crowne Plaza Riverfront Hotel in St. Paul. With more than 700 attendees, the sold-out event opened with a panel discussion hosted by Governor Mark Dayton on the subject of Minnesota Jobs in the Global Economy. Panel speakers discussed the imperative need for Minnesota to secure lasting competitive advantages for businesses struggling to succeed in the global marketplace.  The ability to adapt and implement change efficiently was cited as a necessary area of improvement, and specific examples included the State's ability to help better align the available workforce with the skillsets required for the jobs of the future.

 

Subsequent morning sessions covered additional topics ranging from access to capital, the cost of business growth, energy-related issues, the need for enhanced state branding, and the development of a dashboard for tracking data metrics, among others. The keynote speaker was Dr. Michael Mandelbaum, co-author of the newly released That Used to Be Us: How America Fell Behind in the World It Invented and How We Can Come Back. Dr. Mandelbaum discussed how many Americans are “Frustrated Optimists" who know we can move forward as we always have in the past, but whose formulas for success are in need of renovation.

 

As Dr. Mandelbaum argued, states like Minnesota cannot rely on a one-part program for economic growth and stability. Instead, we must consider simultaneously cutting spending, raising revenues and continuing to invest in the historical areas of infrastructure, education and research and development. Investing in this three-part program, Dr. Mendelbaum stated, is the only viable formula for competing successfully in the global economy.

Afternoon sessions covered a wide range of topics, such as infrastructure, the rise of the creative class, workforce development issues, the "economic development toolbox," export opportunities, employment inequality and tax reform. The summit concluded with an overview of the sessions, followed by a summary of major takeaways and an interactive discussion of next steps. In closing, Governor Dayton stressed that it will take both private and public sector engagement to grow our economy and make Minnesota globally competitive.

 

To learn more about how APEX works together with its public and private partners throughout Minnesota and Wiscosnin in support of our region's economy, please contact Rob West at: (218) 740-3667

On Monday, August 29, 2011, APEX partnered with the City of Duluth and the Minnesota Department of Employment & Economic Development (DEED) to host a reception and job fair for AAR Corporation, an aircraft maintenance, repair and overhaul (MRO) service provider based out of Wood Dale, Illinois. These events represent the culmination of a joint strategy developed by APEX and its economic development partners to attract a new MRO operation to the former Northwest Airlines maintenance facility in Duluth. 

 

Central to the group's efforts to attract AAR Corp is the community's ability to demonstrate an abundant, available workforce in the surrounding region, with a primary focus on highly-skilled, certified aircraft maintenance technicians. To showcase the strength of the region's workforce, the City of Duluth hosted a job fair at the DECC, with 314 persons attending and 260 submitting resumes by e-mail.  According to AAR officials, approximately 80-90% of these professionals met AAR's qualifications.

 

Although this strong turnout certainly bodes well for Duluth's chances of attracting AAR to the community, there are of course many other factors and considerations that must be assessed as AAR continues to weigh its opportunities worldwide.  APEX and its partners will continue to work closely with AAR executives in support of these efforts, positioning Duluth to be as competitive as possible throughout the due-dilligence process.

 

AAR provides major maintenance inspections, line maintenance, aircraft modifications and upgrades to the world's major regional and cargo airline fleets, and for the U.S military and government agencies. The Company's industry-leading capabilities include aircraft inspection and repair; major airframe modifications; avionic service and installations; structural repair; exterior and interior refurbishment; and complete engineering service and support. AAR operates 1.3 million square feet of hangar space and its global team of more than 2,000 AMTs is dedicated to helping the world's leading air carriers keep their fleets flying safely - and generating revenue. AAR operates four major maintenance facilities in the U.S. currently.

 

 

Beginning in May, 2011, Amanda Ringer joined the APEX team as a Summer Intern.  Ringer graduated from the University of Minnesota Duluth this past spring, with a B.A. in marketing and a psychology minor. In addition to extensive work experience in the retail sector, Ringer's academic studies have focused on advertising and marketing communications, business-to-business marketing, consumer behavior, marketing management strategy, and more.

Ringer's duties at APEX will involve project management and content development work on various marketing campaigns, along with the many day-to-day responsibilities associated with a fast-paced office in the business/economic development sector. 

As a Pine City native, Ringer enjoys living in Duluth and is excited to learn more about the city and surrounding communities through her work at APEX. She maintains a second job at Rush City Foods, working as a cashier and administrative assistant, and is an active volunteer who has enjoyed working with the students and teachers at Lowell Elementary School this past spring.

Please join us in welcoming Amanda Ringer to the APEX team!

On Thursday, April 28, 2011, the Duluth Area Chamber of Commerce's Fuse Duluth hosted a panel discussion/luncheon meeting entitled, "Peripheral Progress: What’s Up Outside the Downtown." The panel featured several APEX members and economic development partners, including Sandy Hoff, President of F.I. Salter; Brian Hanson, Business Development Director for the City of Duluth; Drew Digby, Labor Market Analyst for the Minnesota Dept. of Employment and Economic Development (DEED); and Pam Kramer, Executive Director of Duluth LISC. The focus of the discussion was on how the downtown Duluth area can best support business development and job creation in the rest of the community and surrounding region.

When asked about perceptions of a disconnect between the downtown area and the rest of the City of Duluth, or between the City and the rest of the region, each of the panelists said this was largely a misperception. "The city has taken great steps towards improving physical connections between the downtown area and the rest of the City with recent transportation infrastructure improvements, thereby enhancing Duluth's role as an economic hub for not just the entire city, but really the entire region," stated Brian Hanson.

In speaking to the success of the downtown area, Pam Kramer referenced the impact of major employers like Essentia Health and St. Luke's for anchoring the downtown business district and thereby encouraging LISC to take on bold new neighborhood revitalization efforts in these areas. Drew Digby agreed, noting that these anchors also serve as catalysts for smaller businesses to move into the area and for new industries to grow, particularly in IT sector. He suggested that economic developers and workforce development professionals should focus on strategies aimed at supporting the spin-off business opportunities associated with the health systems and other major employers, as they expand their satellite locations throughout the region.

Sandy Hoff expanded on these remarks by highlighting new developments in Morgan Park and the Bayfront area as future catalysts for business anchors. He noted that community involvement has been vital to the success of the planning initiatives around these projects and Digby agreed, suggesting that successful involvement of community input throughout the planning process can reduce the level of unproductive opposition late in the discussion, when the projects are already breaking ground.

As an additional strength which binds the different areas of Duluth and the surrounding region, Digby cited the strong entrepreneurial nature of regional businesses for having changed past perceptions of this being an area that is home to "great employees, but not employers." Duluth's LHB, Inc. was offered as an example of an entrepreneurial business that is pushing the envelope in terms of the projects they engage in, the technology they employ, and so on.

Digby also suggested that the Google initiative helped to organize the community's entrepreneurial spirit, and commended the City for channeling this momentum into bold action. According to Digby, the statistics reflect the results of this type of community spirit, as the median age of the Duluth population median has come down considerably as the area succeeds in attracting and retaining more young workers.

At the same time, Sandy Hoff was quick to point out that the Google initiative was just one small part of a broader strategy to drive new employment in the technology and IT sectors, with the potential to attract large scale data storage facilities and develop a technology business campus in Duluth, among other things.

Brian Hanson agreed, but seemed to sum up the conversation by saying that the City of Duluth’s support for new tech-based industries does not need to come in place of traditional industries entirely. He referred to recent announcements regarding Duluth Metals’ plans to expand its presence in the Port, saying the project shows the region can achieve an effective balance where new technologies push traditional industries to innovate, while traditional industries increase the demand for new technology.

Pictured left to right: Duane Northagen, Jennifer Pontinen, Elaine Hansen, Com. Mark Phillips, Sen. Al Franken, Mike Valentine, Com. Tony Sertich, Connie Christenson, Jeff Borling and Michelle Ufford

On Sunday, February 13, 2011, economic development professionals from across the Northland had an opportunity to sit down with three of the State's most influential leaders and discuss economic development policies which affect the communities of northeast Minnesota's Arrowhead Region.  

Senator Al Franken came together with Mark Phillips, Commissioner of the Minnesota Dept. of Employment & Economic Development (DEED) and Tony Sertich, Commissioner of the Iron Range Resources & Rehabilitation Board (IRRRB), to discuss the potential impact of budget deficit-reducing measures on workforce development programs in Minnesota.  The meeting, organized by the Iron Range Economic Alliance, was held at the Minnesota WorkForce Center in Virginia, MN and included a detailed report from Michelle Ufford, Executive Director of the Northeast Minnesota Office of Job Training.

In addition to extolling the virtues of northeast Minnesota's outstanding post-secondary academic institutions, Ufford's report also highlighted the success workforce development programs at the Federal, State and regional levels have had in strengthening northeast Minnesota's workforce. One initiative discussed in detail was the Wage Enhancement Program developed by IRRRB in 2009 and 2010, as a means of stimulating new job growth among the region's smaller employers.

The program, which was modeled after a similar program developed in the early 80s by then-Governor of Minnesota, Rudy Perpich, targeted small businesses with fewer than 25 employees and headquarters in northeast Minnesota. With an initial investment of $1.5 million, IRRRB's Wage Enhancement Program helped 122 businesses hire 322 workers on the Iron Range. Although these funds have been fully depleted, Com. Sertich seemed open to considering refunding the program again in 2011 and Sen. Franken noted that a similar program is being discussed at the Federal level.

Also present at the meeting were members of the Steering Committee for the Iron Range Economic Alliance, a member organization of professionals and associations representing rural communities from across the Arrowhead Region. These included Mike Valentine, Chair of the Steering Committee and Owner of Valli Enterprises (Two Harbors); Duane Northagen, Vice Chair and Economic Development Coordinator for the City of Hibbing; Connie Christenson, Chair of the IREA Membership Committee and Regional Administrator for DEED's Workforce Development Division (Virginia); Elaine Hansen, Chair of the IREA Education Committee and Executive Director of the UMD Center for Economic Development (Duluth); Jennifer Pontinen, IREA Secretary & Treasurer and Business Consultant for the UMD Center for Economic Development (Virginia); and Jeff Borling, Chair of the IREA Public Relations Committee and Director of Business Development for APEX and IEDC (Grand Rapids).