OCTOBER 2004

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CONTENTS

Marvin Windows and Doors will add another 40 jobs to the more than 500 already at the company�s Grafton location. Marvin Windows and Doors is the world�s largest manufacturer of made-to-order wood and clad wood windows and doors. �North Dakota�s economy is growing, and companies like Marvin Windows and Doors are helping fuel that growth,� said Gov. John Hoeven. �Marvin will add about 80 new jobs over the next 18 months at three of their window and door manufacturing facilities in Grafton and Fargo. This is good news for North Dakota as we continue to create more good-paying jobs and career opportunities for the people of our state.�

In addition to its Grafton facility, Marvin operates Integrity Windows and Doors and Infinity Replacement Windows in Fargo. The company also has a joint partnership in Tecton Products in Fargo. In total, Marvin Windows and Doors, along with its suppliers, has more than 1,700 employees in North Dakota. �In the last six years, the company has contributed more than $42 million to our area. That translates into dollars for new roads, playground equipment for our children and groceries for our families,� said Mylo Einarson, Grafton City Administrator.

Business Development Is Key

Everyone I talk to in North Dakota says the same thing: business development activity is UP! The same is true for the Economic Development & Finance Division of the North Dakota Department of Commerce. In mid-September we welcomed Steve Egeland as our Vice President of Business Development. Steve brings a wealth of experience and knowledge to the position, and we are excited to have him on board.

Many of you have asked about Sandy Opp � Sandy has been on extended medical leave since early summer. We hope to see her back in the office before the end of the year.

During the next weeks, we will finalize details on our 2005 plan for economic development marketing and business recruitment. We expect to increase our focus in targeted geographic markets, as well as enhance our targeting within our industries of food processing, energy, advanced manufacturing and information technology. A critical piece of these efforts will be leveraging our North Dakota Ambassadors to identify and begin relationships with decision makers across the country.

Two Manufacturers Choose Cavalier

Spinal Designs, Inc. and Vanguard Mfg., Inc. will re-locate their manufacturing facilities in Cavalier, N.D. Spinal Designs manufactures a piece of equipment used to treat lower back problems for patients. The company will move its manufacturing operations from Minneapolis, Minn., to Cavalier. Vanguard Mfg. has purchased the V-18 hovercraft product from Vanair Hovercraft of Kenora, Ontario, Canada, and will produce the hovercraft in Cavalier. �Spinal Designs and Vanguard Mfg. represent two more companies that see the benefits of North Dakota�s positive business climate,� said Gov. John Hoeven. �Both businesses chose a rural North Dakota community where they will employ up to 50 people over the next several months � that�s good news for the community and for North Dakota.�

Partners on these projects include the City of Cavalier, Citizens State Bank Midwest, United Valley Bank, Red River Regional Council, and the divisions of Community Services and Economic Development and Finance in the North Dakota Department of Commerce.

Walhalla Manufacturer Expands

Tarnel USA announced it will expand operations at its facility in Walhalla, N.D. The company manufactures flat-deck trailers for shipment in Canadian and U.S. markets. The company re-located to Walhalla from Winkler, Manitoba, Canada, in March 2004. �Tarnel USA has exceeded expectations and because of its leadership, excellent employees and community support, the company is now expanding its workforce,� said Gov. John Hoeven. �We congratulate the company on its growth. We are continuing to build a positive business climate that is attracting new, dynamic companies to the state.�

Partners on the project include the city of Walhalla, Choice Financial Group, Walhalla Farmer�s Grain, Pembina County Job Development Authority, Red River Regional Council, Job Service North Dakota, and the Community Services Division of the North Dakota Department of Commerce.

Egeland Named VP of Business Development

Steve Egeland was named Vice President of Business Development for the Economic Development and Finance Division of the North Dakota Department of Commerce. Egeland brings an exceptional background in economic development, including previous employment with ED&F; in business development and work with the Bismarck-Mandan Development Association. Egeland also served on the Economic Developers Association of North Dakota (EDND) board. To contact Egeland, call 701-328-5322 or [email protected].

Governor�s Choice for Economic Development Award Nominations Due Oct. 29

The third annual Governor�s Choice for Economic Development awards will be held in conjunction with the fall/winter meeting of the Economic Developers Association of North Dakota on Dec. 7 at the Doublewood Inn in Bismarck. The North Dakota Department of Commerce seeks nominations for Volunteer Developer of the Year, Professional Developer of the Year, Project of the Year and Ambassador of the Year (a new category). The application deadline is Oct. 29, 2004. Applications are available online at www.growingnd.com.

State Receives $465,000 Grant for Research and Technology Development

North Dakota will receive a three-year, $465,000 grant from the U.S. Department of Commerce Economic Development Administration (EDA) to help market and commercialize the state�s research and technology development at North Dakota State University and the University of North Dakota. The North Dakota Department of Commerce, University of North Dakota and North Dakota State University were co-applicants for the grant and will receive a total of $155,000 each year for the next three years. The money matches a $200,000 appropriation by the 2003 Legislature for marketing research and technology development.

�We are combining Centers of Excellence funds with federal funds and state resources to stimulate job creation, educational opportunities and economic growth in the state,� said Gov. John Hoeven. �Working together, we will continue to coordinate, leverage and commercialize research and technology development on our campuses to attract new industry clusters to North Dakota.�

The funds will be used to develop research-related industry clusters, provide entrepreneurial assistance and coaching, and launch business recruitment and start-up efforts primarily at UND�s Center for Innovation and NDSU�s Research and Technology Park. NDSU�s Center for Community Vitality also will be connected to the pilot rural outreach effort to link new start-up ventures into other parts of the state.

The Dakota MEP Receives Grant

The Dakota Manufacturing Extension Partnership (TD MEP) received a federal grant to establish a rural manufacturing initiative in North Dakota and South Dakota. The grant, from the U.S. Economic Development Administration�s Economic Adjustment Assistance Program, will invest $100,000 in federal funds to assist TD MEP in helping 10 �at risk� manufacturing companies maintain and expand their operations in rural areas. The pilot project begins in October and will last through February 2005. Director Randy Schwartz says, �TD MEP�s goal is to provide substantial company benefits and impacts by retaining and expanding rural manufacturing jobs, income and payroll at these companies. This effort will stabilize and improve the tax base of rural communities, counties and their respective states. We also want to develop a system with which to support additional rural manufacturers in the future, and serve as a model for the partnering of federal, state and local resources.� For more information, contact Randy Schwartz, TD MEP, 701-328-5314 or [email protected].

National Radio Talk Show Host Broadcasts in ND

North Dakota�s Ambassador Program continues to bring more national attention to the high quality business climate we�re creating in North Dakota, according to Gov. John Hoeven. Lars Larson, a national radio talk show host based in Portland, Ore., broadcast his radio programs from Bismarck on Aug. 23. North Dakota received national exposure with Larson broadcasting from the state. In addition, he interviewed Martin White, CEO of MDU Resources Group; Phil Boudjouk, vice president of research at NDSU; and Commerce Commissioner Lee Peterson during his national show to talk solely about North Dakota.

Linda Butts, director of the Economic Development and Finance Division of the North Dakota Department of Commerce, learned of Larson�s interest in North Dakota from one of the nearly 850 members of Commerce�s Ambassador Program. Steve Sauer, a truck driver from Portland, heard Larson talking about North Dakota and state government at the prompting of a caller. The caller suggested Larson broadcast from North Dakota and Sauer followed up with a conversation with Larson and an e-mail to Butts.

Larson�s program is carried on 85 stations across the country, including Chicago, Denver and Minneapolis � target markets for North Dakota�s business recruitment efforts. An estimated 1.5 million listener�s tune into the Lars Larson show daily.

EDND Plans Fall/Winter Meeting Dec. 7-8

The Economic Developers Association of North Dakota will hold its fall/winter meeting Dec. 7-8 at the Doublewood Inn, Bismarck. The meeting coincides with the Legislative Pre-Session and will include a legislative reception on Tuesday, Dec. 7, from 5:30-7 pm. The North Dakota Economic Development Foundation will sponsor the reception. In addition the Governor�s Choice for Economic Development Awards will be announced at a banquet following the reception.

The confirmed keynote speaker for the meeting is Andy Levine, president of Development Counsellors International, New York. Levine will deliver two sessions on Wednesday morning, Dec. 8. The first will provide a comprehensive review of an economic development marketing study where DCI interviewed nearly 300 CEOs to determine what drives their business relocation decisions. Each attendee will receive a copy of the study, �Winning Strategies in the Economic Development Game.� In the second session, �Best Practices, Best Lessons Learned,� Levine and Jefferson George, director of DCI South, will candidly discuss the best practices and best lessons their firm has learned in over 40 years of economic development marketing.

Another topic will be discussion of the accountability legislation that is expected to be proposed for the 2005 session. Watch for registration materials in the coming weeks.

Four National Journalists Visit State

The Economic Development and Finance Division of the North Dakota Department of Commerce hosted four more national journalists in August. Nancy Dunne of The Financial Times focused on food processing and wrote an excellent story in the Aug. 26, 2004, issue of the international newspaper. The advertising impact of this story is $114,240. In addition, three aviation journalists and one manufacturing journalists toured the state from Medora and Killdeer in the west to Grand Forks and Fargo in the east. The journalists represented Executive Flyer magazine, Aviation Maintenance, Aircraft Maintenance Technology and Managing Automation. To date, we have commitments from two of these publications to write special features on North Dakota companies and the state�s positive business climate. ED&F; is planning another media tour Oct. 28-29. The total advertising impact of positive national news stories written about North Dakota�s business climate for 2004 is over $2 million!

Center for Technology and Business Moves

The Center for Technology and Business (Women and Technology) has moved its offices to 115 N. Second Street in Bismarck. The program receives funds from a variety of public and private sources, including the North Dakota Department of Commerce. In recent weeks, CTB completed a training link for the Homeless Shelter Project � a program of the Community Services Division of the Department of Commerce.

CTB also completed delivery and set up of 100 pieces of computer and technology equipment for eight rural North Dakota communities as part of a USDA Rural Development Project. Small businesses and the job development authorities in Medora, Killdeer, Dunn Center, Regent, Mott, Rugby, Beach and Cando will use the equipment. For more information, contact Tara Holt at [email protected].

North Dakota Plans Trade Mission to China

The North Dakota Trade Office will lead a 12-member trade delegation to China Oct. 7-18 to open new markets for North Dakota�s agriculture industry and develop new cultural and educational opportunities for the state. The trade mission is the result of a contact from the Chinese government expressing the need for high protein feed for large livestock and dairy producers, along with an invitation to help them develop farm management systems.

�This mission is an opportunity for North Dakota exporters to open new markets as we continually strive to diversify and add value to North Dakota�s strong agricultural base,� said Lt. Gov. Jack Dalrymple.

Commerce Quick Facts

• North Dakota leads the nation in production of 13 commodities from flaxseed to wheat to dry edible beans. Source: 2003 ND Agricultural Statistics Service
• North Dakota increased its two-year average median household income in 2003 by 4.3 percent, the highest rate in the country, and at the same time, decreased its poverty level by 2.1 percent. Source: U.S. Census Bureau