California biotech firm locates in Technology Business Center

PROGRESS REPORT, Fourth Quarter, 2007
California biotech firm locates in Technology Business Center
A
lphaGenix, Inc., a biotech
company developing
products for diagnostic
use by other research companies,
has relocated to the South Dakota
Technology Business Center from
Carlsbad, California. Dr. Stephen
Hall, the founder and president of
AlphaGenix, is a graduate of
Purdue and Indiana University
who started previous biotech
companies in California.
Hall said that the high cost of
doing business in California,
especially for start-up biotech
firms, is driving these highpotential companies to locations
like Sioux Falls. The technology
incubator, Hall said, is a perfect
fit for businesses like his that
require lab space, a shared
communications infrastructure
and proximity to strong medical
facilities and universities. Hall is
working with both SDSU and
USD on adjunct faculty status and
has a connection with the state
school of medicine, as well.
AlphaGenix is currently
selling about 400 products,
generating about a half million
dollars in annual sales, a
percentage of which goes into
further research and development
of new products. The AlphaGenix
line is primarily high-end kits
which allow researchers to use
specific antibodies to identify
certain types of cells which aid
their work in the causes of
disease, especially neurological
maladies such as Alzheimer’s and
Parkinson’s diseases.
The company expects to grow
in Sioux Falls, Hall said. He
expects to have two technicians
Congratulations to Dan Scott
S
ioux Falls Development Foundation President Dan Scott,
long a supporter and Joint Venture Management
Committee member of Forward Sioux Falls, has announced
his retirement on February 1, 2008. A
twenty-year veteran of the Development
Foundation, Scott has dedicated his
professional life to improving the economy
of South Dakota, as a member of the
state’s economic development team and
the Development Foundation staff.
The Joint Venture Management
Committee congratulates Dan on his
retirement. We will miss his counsel and
his experience in guiding the economic
prosperity of Sioux Falls in the years ahead.
Dr. Stephen Hall is the president
and founder of AlphaGenix, Inc.,
now located in the South Dakota
Technology Business Center.
on staff soon, and the number
could increase to ten eventually,
as the product line continues to
develop. AlphaGenix has had
success in growing skin cells in
the laboratory, a scientific
achievement with applications in
the treatment of diabetics and
burn victims. Hall, who has a
background in immunology and
vaccine development, is also
doing work in cancer research as
well as his specialty in neurological
disorders.
“It was a definite advantage
to be able to move this company
into an established, affordable lab
space,” Hall said. “You don’t find
this kind of facility in California.
This is a great place to expand
our research and our business.”
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www.siouxfalls.com
World leader in fire trucks expands in area
R
osenbauer Firefighting
Technology, based in Lyons,
is adding the company’s
sixth freestanding building. The new
23,400 square foot structure will
house a showroom for the variety of
firefighting vehicles the company
produces, as well as a two-story
office block and final assembly
production space.
Rosenbauer began in Lyons as
Central States Fire Apparatus,
founded by current Rosenbauer
America president and CEO Harold
Boer in 1975. From a two-stall
welding and auto repair shop, Boer
and his wife Helen began a business
that refitted and then manufactured
fire trucks. By the time the company
merged with Rosenbauer, Europe’s
premier manufacturer of firefighting
technology in 1998, Central States
was making 300 trucks a year. The
Lyons facility now manufactures 600
units annually, a number expected
to reach 700 with the new building.
“Our new space will allow us to
grow from 260 to 300 employees
within the next few years,” Boer
said. “We’re planning new concepts
that could add another 50 to 100
new employees in Lyons.”
Rosenbauer America builds fire
trucks that are shipped all over the
world. The company has a $9 million
contract with the government of
Turkey to supply 45 trucks. Ecuador
received 20 pumpers, 110 fire
fighting trucks were shipped to
Afghanistan and 700 South Dakotabuilt Rosenbauer units have gone to
Saudi Arabia. But foreign orders are
just 20% of Rosenbauer America’s
PROGRESS REPORT
is published quarterly.
Volume 6, Issue 4
200 North Phillips Avenue, Suite 101,
PO Box 907,
Sioux Falls, SD 57101-0907
Phone: 605-339-0103
Fax: 605-339-0055
E-mail: info@siouxfalls.com
annual $120 million in sales.
Firefighters fly into Sioux Falls on a
weekly basis to inspect and order
new trucks, and Rosenbauer has
several units that tour the country,
stopping at trade shows and
firehouses nationwide.
“Rosenbauer has not only
shown significant growth in Lyons,
but has also reflected a determination
to keep the business headquartered
right here in South Dakota,” said Jeff
Eckhoff, rural development director
for the Sioux Falls Development
Foundation. “The company’s
international scope and consistent
expansion illustrate how businesses
are building success in our area.”
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Harold and Helen Boer began building fire trucks in the 1970s.
Small businesses survive best in South Dakota
S
mall businesses matter to the U.S. economy, dominating the
business landscape and creating the bulk of new jobs. The
Small Business Survival Index ranks the 50 states and District
of Columbia according to some of the major government-imposed or
government-related costs affecting investment, entrepreneurship and
business. The 2007 Index considers 31 major government-imposed or
government-related costs affecting small businesses and entrepreneurs.
The measures are added together for an overall rating. For the sixth
consecutive year, the Index ranked South Dakota as Number 1—
the friendliest state for entrepreneurs and small businesses. New Jersey
ranked 50th among states, DC was 51st.
Small businesses have long been referred to as the engine of the
national economy. Today they’re also providing the fuel. Forrester
Research (forrester.com), a technology research firm in Cambridge,
MA, found that in 2006 U.S. small businesses spent about $138 billion
on technology products and services, accounting for 19% of all IT
spending. And according to a
2005 study by Gartner, a
technology consulting group in
Stamford, CT, companies that
employed 20 to 99 expected to
increase their IT budgets by
7% in 2006—a figure that fell
to just 2% among companies
that employed 500 to 999.
www.siouxfalls.com
Chairman’s Report
It’s exciting to look ahead in Sioux Falls
E
ach year, we look back on the
Center, one of our proudest and most
By Kelby Krabbenhoft,
Chairman,
successes of the year gone by and
successful Forward Sioux Falls initiatives,
Forward Sioux Falls
reflect with pride on our community
is set to expand this spring, bringing even
and its consistent growth. Once again, 2007
more high technology companies to Sioux
proved that the confidence our business
Falls. Things are happening all around us.
community has for our future can drive us
As we move into this new year, let’s
to set new records every year.
keep in mind that Forward Sioux Falls is
I think that 2008 has even more
about goals for the future. The achievements
promise for Sioux Falls and the surrounding
of last year are a solid basis, but we have
area. Forward Sioux Falls is already showing
so much more to do. We are a constantly
success in several of the areas targeted by
changing community, fueled and driven by
our action plan. We’re seeing an upsurge in
diversity, prosperity and confidence in our
the number of young professionals choosing
shared future. Working together, we have
to locate in Sioux Falls to build their careers.
the opportunity to make 2008 a truly
Our institutions of higher education are
memorable year for Sioux Falls and for our
reporting excellent growth in student numregion. I look forward to meeting the
challenges of the new year and working with you for
bers and dramatic plans to expand their campuses and
another great year in our community.
their courses in our community. The Technology Business
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Workforce Development Update
Nebraskan chooses Sioux Falls to start health care career
K
yle Odvody was just passing
community in Sioux Falls.
through Sioux Falls on his
“One of the nicest things
way to visit friends in
is that here I meet doctors who
Brookings when he decided to
really relate to me as another
check out the job opportunities at
care giver,” Odvody said. “There’s
the local hospitals. A co-worker at
more of a team approach—a family
the Nebraska Medical Center in
atmosphere. If you don’t know
Omaha had made the decision to go
something, somebody is there to
to work at the Avera Heart Hospital
provide the answer.”
in Sioux Falls, and Odvody decided
Odvody is considering
to see what he could find in his
expanding his health care career as
area of specialty, neuro-cardioeither a physician’s assistant or a
pulmonary medicine.
nurse practitioner. But for now, he
Kyle Odvody
What he discovered was a new
is content to get to know Avera
hometown, a new group of friends and a higherMcKennan and Sioux Falls. An athlete who attended
paying job than he could have found in his native
UN-L with a track scholarship, Odvody has signed up
Nebraska. Raised in Wahoo and educated as a
for a basketball and a co-ed volleyball league in
registered nurse at the University of Nebraska-Lincoln,
Sioux Falls for winter activities, and plans to play
Odvody didn’t think he would be starting his career
sand volleyball—his favorite—next summer.
actually working in the field he wanted, but when
“I’m just getting comfortable with my job,” he
Avera McKennan offered him the position he was
said. “I hope I’ll be able to determine how much time
hoping for, he jumped at the chance.
I’ll have for myself. Sioux Falls has so many great
“I wanted to explore my options, even out of
things to do for recreation.”
Nebraska,” he said. “I found that Sioux Falls is a great
Although he was just passing through, Odvody is
place to start your career. I’ve found there are more
now enjoying his new hometown. Thanks to Forward
people just starting their careers in Sioux Falls than
Sioux Falls, young adults are finding great opportunities
in Omaha.”
for working and playing in our community. Learn
Not only is Odvody working in his specialty field,
more at www.forwardsiouxfalls.com.
he discovered a different attitude in the health care
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www.siouxfalls.com
VIEWPOINT
Forward Sioux Falls stands as great achievement
I
Second, Forward Sioux Falls
t has been my privilege during the past
By Dan Scott, President,
Sioux Falls Development
conclusively proves that partnership is the
twenty years to be part of the team
Foundation
key to success. Every industry in the Sioux
working to grow Sioux Falls and
constantly enhance this area’s prosperity.
Falls economy, from small manufacturing
During my career with the Sioux Falls
companies to our major health care
providers, is represented among our
Development Foundation, I have worked
investors. Further, the City of Sioux Falls
alongside our community’s best leaders and
has always been a proud participant in
most outspoken advocates. We have made
Forward Sioux Falls, and the Governor’s
incredible strides during those two decades:
shattering records for capital investment,
Office of Economic Development has
provided enthusiastic support in every way.
land sales in our development parks,
This program has been the model for
population, building permit and retail sales
growth. But nothing that has happened
similar community development plans
throughout South Dakota and our region.
during my tenure in economic development
Five times local businesses have been
here has been as important as the Forward
asked to play a part in the future of our
Sioux Falls program.
community by investing in Forward Sioux Falls. Five
First and foremost, Forward Sioux Falls is investortimes a larger number of investors have stepped up, and
driven. This is not a program devised by government,
five times we have exceeded our fundraising goal. We
funded by a few select corporations or controlled by the
have addressed important community challenges, and we
Chamber of Commerce or the Development Foundation.
will continue to do so. Forward Sioux Falls is a
Created, funded and directed by investors, each of whom
significant achievement, and I’m proud to have been a
believes in the future of this community, Forward Sioux
part of it.
Falls is a tribute to the power of the individual to really
make a difference in his or her hometown.
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PO Box 907,
Sioux Falls, SD 57101-0907