3rd Quarter 2012 Issue - St. Croix Economic Development Corporation

3rd Quarter 2012
inside this
issue
2 Observations from the
EDC President
3 WEDC Names Regional
Account Manager
Progress Continues on
Uline Facility
4 St. Croix Insider
Sajan, Inc.
6 St. Croix EDC Recognizes
2012 Member-Supporters
7 St. Croix EDC’s Site Visit
Program Resumes
Recent St. Croix County
Business Expansions
mark your
calendar
September 11
SCEDC Board Meeting
October 9
SCEDC Board Meeting
chronicle
Tests Shape St. Croix Crossing Design
In June, the
Minnesota
Department of
Transportation
(MnDOT)
authorized a series of
foundation load tests
within the corridor
of the new St. Croix
River Crossing. The
tests will provide
bridge designers with
A barge floats next to a drilled shaft in the St. Croix River. The shaft is eight
critical information
feet in diameter and was lined with re-bar and filled with concrete. Tests
on soil conditions
determined the stability of the bedrock, leading to a more accurate bridge
under the river and
design and fewer bid contingencies from the successful general contractor.
help prospective
contractors prepare bids with fewer contingencies. As risks are removed with data from the
tests, the overall projects costs can be reduced.
MnDOT has used load tests for other recent projects, including the I-94 Wakota Bridge
in South St. Paul, the Highway 52 Lafayette Bridge in St. Paul and the Highway 61
Mississippi River Bridge in Hastings.
Residents and businesses interested in following the progress of the St. Croix Crossing
can go to http://www.dot.state.mn.us/stcroixcrossing. Browsers will find links to “What
is load testing?” and “Pouring concrete for load testing”. In addition, MnDOT recently
installed a webcam (http://www.dot.state.mn.us/stcroixcrossing/webcam.html) that shows
the load testing on the St. Croix River. It will remain active throughout the entire bridge
construction project, ending in 2016.
Based on the early analysis of the load tests, MnDOT confirmed that the bridge design
would contain one fewer set of piers, reducing the number from six to five. This is expected
to lower the cost of the project.
The St. Croix Crossing is a shared project between the Minnesota and Wisconsin
Departments of Transportation. It will connect Oak Park Heights, Minnesota (Washington
County) with the Town of St. Joseph, Wisconsin (St. Croix County). It is a regional
transportation solution for the Greater Twin Cities metro area that has a population of
3.3 million people in 13 counties, including two in Wisconsin (St. Croix and Pierce).
Constructing the bridge will cost an estimated $280 to $310 million and the overall
project, spread over 7 miles in Wisconsin and Minnesota, is estimated at $580 to $676
million. Construction is tentatively scheduled to begin in 2013 and will take about three
years to complete.
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St Croix
Chronicle
Reasons for
Optimism
from the president
Roger Humphrey
St. Croix EDC Board
President: Roger Humphrey
1st VP: Marian Furlong
2nd VP: Mark Casey
Sec/Treas: Paul Schwebach
Past President: Ryan Sicard
Directors:
Michelle Erdman
Greg Gerard
George Hauser
Dawn Hukai
Chuck Jerrick
Gregg Knapp
Lisa Knutson
Mark Mitchell
Dave Ostness
Steve Peterson
Duane Russett
Travis Schachtner
Thomas Schumacher
Scott Wagner
2
I am optimistic by nature and there are
many reasons for this.
Unemployment in St. Croix County
and across the Greater St. Croix Valley
has improved. St. Croix is usually among
the leading counties in the state for low
unemployment. St. Croix’s close proximity to
the Twin Cities metro area is a big reason the
unemployment rates are low. The economic
engine of the Twin Cities creates employment
opportunities at many skill levels, from entry
to executive. Meanwhile, many businesses in
St. Croix and the region are showing upticks
in hiring, too. Statistics from the Wisconsin
Department of Workforce Development
provide tangible evidence that the county
and valley region are improving.
The housing market is improving, which
adds to my optimism. St. Croix County felt
the pain when the housing bubble burst.
Foreclosures and an excessive inventory
of residential lots resulted in the market
declining for several years. In mid-2011 we
saw signs of improvement. More houses were
being sold and median prices were rising.
The Wisconsin REALTORS® Association
is a reliable clearinghouse of monthly
information about our housing market.
Wisconsin is on the rise as a top state for
business, according to at least two annual
polls. In May, Chief Executive Magazine
released its 2012 Best and Worst States for
Business Survey. Wisconsin was ranked as the
20th best state, an increase of four places
since last year and 21 places since 2010.
The magazine noted that Wisconsin is the
second-biggest gainer since 2008, when it
was ranked 43rd. In July, CNBC released
its annual “Top States for Business” ranking.
Our beloved Badger state climbed eight
places to #17. This is the highest Wisconsin
has ranked since CNBC began conducting
the study in 2007. CNBC’s ranking shows
Wisconsin’s greatest improvement in the ten
main scoring categories was in infrastructure
and transportation, where the state jumped
from 22nd to 6th in the country. Wisconsin
also ranked high in education (10th), quality
Chief Executive Magazine Ranking 2011-2012
State
Wisconsin
Iowa
Minnesota
Michigan
Illinois
2012
Ranking
2011
Ranking
Overall
Movement
20
22
36
46
48
24
22
29
46
48
+4
0
-7
0
0
Source: Chief Executive Magazine and St. Croix EDC
of life (14th) and cost of doing business
(15th). The table above shows the 2011
and 2012 ranking of Wisconsin and its
neighbors. Wisconsin is on the rise and the
neighbors are merely retaining their places or
have dropped.
And speaking of infrastructure, both
WisDOT and MnDOT are moving
forward with the St. Croix River Crossing.
Passed and approved earlier this year, the
new river crossing between St. Croix (WI)
and Washington (MN) counties ends
many decades of debate on replacing an
aging lift bridge in downtown Stillwater,
Minnesota. The project’s approval took an
Act of Congress. Literally. The U.S. Senate
and House of Representatives passed an
exemption to the federal Wild and Scenic
Rivers Act, which protects the St. Croix
River. Elsewhere in the newsletter you will
see an article about the load testing in the
river. These tests will help both the bridge
designers and prospective contractors with an
analysis of what’s exactly in the river bottom.
The river crossing project is expected to begin
in 2013 and wrap-up in 2016. The 4-lane
bridge is an important link in the Twin
Cities transportation network. It will create
thousands of construction jobs and vendors
like insurance agencies, restaurants and hotels
will witness spin-off benefits.
Can you see my reasons for optimism?
St. Croix and the region are showing great
promise. Oh, there are plenty of shovel ready
sites for new and expanding businesses in our
communities, too.
I’ll check in again with the next edition.
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3
St Croix
Chronicle
WEDC Names Regional Account Manager for West
Central & Northwest Wisconsin
Seth Hudson, Regional
Account Manager, WEDC
Seth Hudson joined the Wisconsin
Economic Development Corporation
(WEDC) in July as the Regional Account
Manager for west central and northwest
Wisconsin. He comes to WEDC from
Portland, Oregon where he worked as the
Pacific Division Development Manager for
Weston Solutions, a company that specializes
in the redevelopment of contaminated sites.
Prior to Weston, he worked in economic
development for over 15 years at various levels
of government around the country.
He is based out of the NanoRite Center
on the campus of Chippewa Valley Technical
College in Eau Claire.
Seth can be reached at (608) 210-6772 or
seth.hudson@wedc.org. For more information
about WEDC visit www.wedc.org.
Progress Continues on Uline Facility
Work that began in the spring
has continued into the summer
on a massive, 640,000 square foot
distribution facility for Uline, Inc.
(www.uline.com) in the southwest
corner of Hanley Road and State
Highway 35 in Hudson, Wisconsin.
In June 2011, Uline announced
its decision to relocate an existing
distribution facility in Eagan,
Minnesota to the 60+ acre site in
Hudson. Site preparation work began
this past spring and followed a rezoning
and comprehensive plan amendment
by the City of Hudson. The facility
will include about 600,000 square feet
for Uline’s distribution operations and
40,000 square feet for administrative
offices. Upon opening in early 2013,
the facility will support about 175 jobs.
The site can accommodate up to one
million square feet of space.
Uline, Inc. is a rapidly growing
shipping supply distributor. Based
in Pleasant Prairie, Wisconsin, Uline
was founded in 1980 by Dick and Liz
Uihlein. With over 2,600 employees
nationwide, Uline remains a familyowned and operated business. Liz is the
president and husband Dick serves as
chief executive officer.
Earlier this Spring, subcontractors successfully prepped the 60+ acres in Hudson for Uline’s
distribution facility. Hanley Road runs diagonally from the left of the photo to the intersection
of State Highway 35. Willis Miller Drive is at the bottom of the photo and Heiser Street is on
the right side. Photo courtesy of Picture Factory, Inc. of Hudson, WI, a film, video and
event production company (www.picture-factory.com)
The photo below is reflective of the construction activity at the Uline site throughout the
Summer with the installation of tip-up sidewall panels and roof trusses.
Thousands of products are available
from Uline, including industrial and
packaging materials as well as over
1,100 shipping boxes in differing sizes
and shapes.
St Croix
Chronicle
4
St. Croix Insider
Sajan, Inc.: Language Process & Technology
from Western Wisconsin to the World
Angel Zimmerman,
Chief Operating Officer and
Shannon Zimmerman,
Chief Executive Officer, Sajan
Sajan is the recipient of
St. Croix EDC’s 2011
Business of the Year award.
Photo by Brenda Bredahl
By Brenda Bredahl
For Angel and Shannon
Zimmerman, the path to the helm of a
$20 million publicly held international
translation software company
(NASDAQ: SAJA) with worldwide
headquarters in River Falls and offices
in Ireland, Singapore, Spain and
Montreal was family, community and
passion.
The pair met while in elementary
school in Augusta, Wis., a small town
in central Wisconsin best known for its
Amish community. In high school they
dated, graduated, and at ages 17 and
18 got married and had a baby. They
packed up and moved to Madison so
Shannon could attend technical college
for computer programming while
Angel raised their son and planned
to get a paralegal degree at UW-Eau
Claire after Shannon graduated.
“As a young family, we didn’t live
the typical college experience,” said
Shannon. “We moved back to the Eau
Claire area so Angel could go to school
and I could begin my first technology
job. I took on a consulting job with
3M that was totally unrelated to the
translation business.”
Says Angel: “I came up with the
name Sajan for the consulting business
because it was our family’s initials—
Shannon, Angel, Josh and Nick.
We didn’t know it at the time but it
translates to ‘love’ in Hindi. We think
that’s pretty cool.”
Another son arrived, postponing
Angel’s desire to work full time as a
paralegal and eventually attend law
school. They moved to River Falls
in 1997 so Shannon could be closer
to 3M and because they liked the
rural yet suburban community and
the schools, the technical college and
university.
An Interesting Industry
At that time the couple knew
little about the translation industry.
Shannon sat next to some translation
professionals at one time and heard
them talking about their industry and
its challenges. He became fascinated
with how technology could add value
and solve problems in this booming
global industry. Recognizing that
technology’s role in the “flattening”
of global economy, Shannon quickly
embarked on an idea to serve the
5
Business of the Year
industry better with both technology
and human process, essential to
language translation.
Said Shannon: “Angel was still
at home with the kids so she had
some time to research problems
and solutions in the industry and
help develop a business plan for a
solution that would have a positive
and profound effect on those who
purchased translation.”
With the help of a brother-inlaw who was a software developer,
Shannon began work on a system
that would eventually become the
company’s signature product and
an industry leader in translation
management system technology –
called GCMS™. The software provides
process automation and innovative
multilingual content reuse to provide
predictability, higher quality and cost
efficiency. The software is followed by
a process managed by Sajan’s teams of
localization professionals for accurate,
tailored and flexible solutions for any
sized business.
At first Sajan operated from home as
they developed the software, process
and business plan. The first break came
when Shannon approached 3M about
its translation needs.
“In my consulting at 3M, I was
acquainted with a quality director
in the health care division and
approached him with our idea,”
Shannon says. “The division had a
substantial budget for translation.
They wanted to see what else was out
there globally and not just dive in with
a mom-and-pop shop, but they gave us
a chance to bid on their contract. They
blind-evaluated all the proposals and
the good news, and the bad news, was
that we won the contract. We had to
gear up quickly.”
The 3M health care division contract
began in 1998 and for the next two
years Sajan worked hard for their sole
client and on business development.
“We poured everything back into
developing our business and product,”
Shannon says.
“We hired what consultants we
could and then moved into our first
office on Main Street in River Falls,”
Shannon recalls. “In 2003 we landed a
large contract with another company.
We had to ask, do we keep this a
family business or do we aspire to
make a run in this $33 billion industry
that is bigger than the NBA, MLB and
NFL combined? We did more market
research and decided to continue outinnovating our competitors because we
recognized we had a disruptive leading
technology.”
Named a Fastest Growing
Company
The company kept moving from
various leased spaces in River Falls as
it grew. By 2007 Sajan had $5 million
in gross revenue and in 2008, 2009
and 2010 was named a Top 10 Fastest
Growing Company by Inc. Magazine
with more than $12 million in gross
revenue for 2010.
In 2009 Sajan completed a reverse
merger with MathStar, an inactive
technology company, in order to
secure a seat on the NASDAQ.
“Because we are a microcap stock we
are not highly traded,” said Shannon.
“At this point we don’t think about
it because demand for translation is
outpacing supply.”
The company’s 24,000 square foot
facility was finished in January 2005,
and after leasing offices on the ground
floor at build, the company has
occupied the entire facility.
In 2011, Sajan marked $20.9 million
in gross sales and earned a spot in the
Top 5 fastest growing companies in
Wisconsin from the Milwaukee Business
Journal. Sales are $10.2 million for the
first six months of 2012.
St Croix
Chronicle
Sajan opened a branch office in
Dublin in 2009 and in Madrid and
Montreal in 2010, followed by an
office in Singapore in 2011. Those
satellites employ 25 direct sales force
and localization professionals.
“We located in those countries so we
would have time zone centers because
that’s what our customers need and
want,” said Angel. “Our direct sales
force is a great advantage too.”
Today the company employs 75
at headquarters in River Falls and
primarily serves translation needs in
the life sciences, manufacturing, high
tech and retail markets, including
content from print and packaging to
online and mobile.
Trends, says Shannon, are keeping
up with cloud-based applications and
offering access to Sajan’s technology
across multiple platforms. “We see
some consolidation in the market and
have our sights on acquisitions. Those
who have the technology are the future
of the industry. Our forecast is that
our direct sales force is our strength,
plus our aggressive approach to
acquisition with our leading product.”
Family, Community &
Company Culture
Employees participate in projects
such as Adopt a Highway, Feed My
Starving Children and the Susan G.
Komen Race for the Cure, and the
Zimmermans serve on several advisory
councils at UW-River Falls. “Our staff
is critical to where we are today and
in our company culture,” says Angel.
“Hiring good people and knowing
when to turn off work are important.”
Their son, Josh, started with the
company in customer service after
graduating with a business degree from
UW-River Falls. “We treat him just
like our other employees; everything
here is earned,” says Shannon.
See Sajan . . . on page 7
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St Croix
Chronicle
6
St. Croix EDC Recognizes 2012 Member-Supporters
St. Croix EDC operates as the independent economic development arm of St. Croix County, Wisconsin. The county has
many advantages, including its alignment with the nation’s 16th largest metro area and the pro-business environment offered by
its Wisconsin location. Reflective activities of the EDC include marketing and communications, business retention, expansion,
incorporations, recruitment and business advocacy.
Public and private sector organizations support St. Croix EDC with annual memberships. The officers, directors and staff
thank the following 2012 member-supporters:
Gold Level ($2,500 - $4,999)
Xcel Energy Company
Sliver Level ($1,000 - $4,999)
Associated Bank
Bakke Norman
Bremer Bank NA
First Bank of Baldwin
First National Community Bank
Hudson Hospital & Clinics
River Falls EDC
Royal Credit Union
St Croix Electric Cooperative
Trient Technologies, Inc.
WESTconsin Credit Union
Wisconsin Business Development
Bronze Level ($250 - $999)
Amery Telcom
Andersen Corporation
Badger State, Inc.
Baldwin Telecom, Inc.
Bernick Companies
BioDiagnostics, Inc.
Brigham Group Staffing
Butler & Eichstaedt CPAs
Central Bank
CenturyLink
Chippewa Valley Technical
College
Citizens State Bank
CRI Recycling*
Decisionmakers
Derrick Companies
Durand Builders
Eckberg Lammers Law Firm
Edina Realty, Inc.
First American Bank
First National Bank of River
Falls-Prescott
GaMra Composites
Gavic Construction Corp.
Greystone Real Estate, Inc.
Hiawatha National Bank
Hubbard Broadcasting
Hudson Physicians
J&C Trucking of Baldwin
J&L Steel & Electrical Services*
Liquid Waste Technology
Lommen Abdo Law Firm
M&I Bank
Market & Johnson, Inc.
MIG, Inc.*
Monarch Paving
NCCM Company
NELA
New Richmond Utilities
Phillips Plastics Corporation
Prism Plastics
Redmon Law Chartered
RESCO
River Falls Area Hospital*
River Falls Municipal Utility
River Falls State Bank
RJA Dispersions
Ross & Associates, Ltd.
Sandeen Agency, Inc.
Security Financial Bank
St Croix Business Park Corp.
St Croix Gas
St Croix Ventures
Stevens Engineers, Inc.
UW-River Falls
We Energies
Wells Fargo Bank
Westfields Hospital
Wipfli LLP
Wisconsin Indianhead Technical
College
Associate Level ($100 - $249)
2-Creative*
Air Motion Systems
Baldwin Area Medical Center
Bare Bones Marketing*
Bauman Associates, Ltd.
BigBadToyStore
BOH Electronic
Cedar Corporation
Cities Digital
CliftonLarsonAllen
County Market
Dunn Bros Coffee/Erbert &
Gerberts
E-Science, Inc.
Elliot Architects
Erickson Oil Products
Equity Marketing Group
FiberStar, Inc.
Harrington Langer & Associates
Heywood Cari & Anderson
Hudson Area Chamber
Humphrey Engineering
iMARK Molding
Interfacial Solutions
Investment Centers of America
J A Counter & Associates
K-Sun Corporation
Konrad Corporation
McMillan Electric Company
Mills Fleet Farm
Mississippi Welders Supply Co.
NEI Electric
New Richmond Area Chamber
Nolato Contour
Nor-Lake, Inc.
OEM Fabricators
PCM Global Solutions
Pierce Pepin Cooperative Services
Preco, Inc.
Resolution Engineering
Resultants For Business, Inc.
Ristow Trucking, Inc.
Riverland Laser, Inc.
Shafer Financial Services
Shefland Trucking Service
Somerset Amphitheater*
St Croix Advisor
St Croix Press
St Croix Valley Insurance Service
St Paul Saints
StarTech Computing
STTI/NWMOC
The Orchard Restaurant
Tiger Stone & Brick
Valley Cartage & Warehouse
William Rubin
Woodville Warehousing &
Distribution
Public Members
St. Croix County
Glenwood City*
City of Hudson
City of New Richmond
City of River Falls
Villages of Baldwin
Villages of Hammond
Villages of Roberts
Villages of Somerset
Villages of Woodville
Town of Baldwin
Town of Forest*
Town of Hammond
Town of Hudson
Town of Kinnickinnic
Town of Pleasant Valley
Town of Troy
Town of Warren
In-kind Members
Baldwin Bulletin
Central St. Croix News
Guinn Vinopal & Zahradka
Hudson Star Observer
New Richmond News
PressEnter!
River Falls Journal
St. Croix County
Tribune Press Reporter
Woodville Leader
*denotes new member
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7
St Croix
Chronicle
St. Croix EDC’s Site Visit Program Resumes
On August 14th, the
St. Croix EDC Retention
Committee resumed its
site visit program with a
stop at Nolato Contour
in Baldwin. Two years
ago, Sweden-based
Nolato acquired Contour
Plastics as their entry
into U.S. medical device
manufacturing.
Earlier this year, Nolato Contour
announced the addition of liquid silicon
injection molding in a brand new Class
7 clean room. This technology was
Nolato Contour is located at 660 VandeBerg Street, Baldwin, Wisconsin
transferred from Nolato Medical in
Sweden and its 30+ years of experience.
Barry Grant, president of Nolato
Contour, led the discussion and tour
during the site visit.
Learn more about Nolato Contour at
www.nolato.com/contour.
Recent St. Croix County Business Expansions
• Woodville Warehousing &
Distribution (www.woodvillewarehouse.
com) is constructing a 60,000 s.f.
addition to their dry facility.
• K-Tek Wisconsin (http://ktek-net.
com) is adding an addition at 750
VandeBerg Street in Baldwin.
• Northern Metal Fab, Inc. (http://
nmfinc.com), also in Baldwin, recently
Sajan . . . from page 5
The couple’s other son, Nick, is
currently completing a degree at
UW-River Falls. He plans a career in
physical therapy, sports medicine or
chiropractic medicine.
Shannon says: “We’ve been married
for 22 years and in business for 15, and
we can’t imagine it any other way. Our
skills really complement each other.”
The Zimmerman’s excitement for
their business, customers, company
culture and community is evident.
“Because we love the area, we are here
acquired the former Donaldson (and
more recently the former Phoenix
Engineering) facility. This adds
about 60,000 s.f. of production plus
another 20,000 s.f. of storage space to
Northern’s capacity.
• SMC, Ltd. (www.smcltd.com), a past
recipient of the EDC’s Business of the
Year award, is wrapping-up its major
addition in Somerset.
to stay,” says Angel. “The school district
was really a big part of us locating
here, and it feels much like the part of
Wisconsin where we grew up.”
So much so that they just planted a
hobby vineyard—named Bellevinez—
at their home outside of River Falls last
spring. If it grows anything like Sajan,
there should be some great vintage if
the weather cooperates the next couple
of years.
Brenda Bredahl is a writer, editor and
content specialist who lives in Hudson.
She can be reached at 715-821-8000 or
brendabredahl@gmail.com.
• American Sky Beer in Hudson
received a supplemental loan from
the Regional Business Fund, Inc.
earlier this year to support the primary
lender’s financing. Loan proceeds have
been used to launch a micro brewery
founded by the husband and wife
team of Greg and Molly Harris. They
will brew their American Sky Beers,
with keg and bottle distribution set for
August and September.
just the facts
Sajan, Inc.
625 Whitetail Blvd.
River Falls, WI 54022
1-877-426-9505
715-426-9505
www.sajan.com
NASDAQ: SAJA
Est. 1997
115 employees
Satellite offices in Dublin,
Madrid, Singapore and Montreal
1101 Carmichael Road
Hudson, WI 54016
phone: 715-381-4383
fax: 715-381-4384
web: www.stcroixedc.com
Executive Director:
William Rubin
email: bill@stcroixedc.com
Admin. Assistant:
Jacki Bradham
email: jacki@stcroixedc.com
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St. Croix Valley Office | 651.636.6468
Gregg S Knapp
CPA, CMA, Partner
8665 Hudson Blvd North | Suite 200
Lake Elmo, MN 55042
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