Strong Local Economy : Innovation + Job News

St. Paul-based public relations agency Kohnstamm Communications is fueling growth with the addition of four new hires, and it's likely that more team members will join the quartet in the future.
 
"Kohnstamm's revenue grew at more than 29 percent last year, making us one of the fastest growing [agencies] in the Midwest," says founder and CEO Josh Kohnstamm. "Yet, as a 22-year-old boutique agency with fewer than 20 people, each person must shoulder a lot of responsibility for turning results. And these are exactly the brand of PR people to succeed in that assignment."
 
Coming from Minneapolis-based Snow Communications is Jeff Trauring, who will join the business-to-business team at Kohnstamm, supporting agency accounts like 3M Food Safety, Nilan Johnson Lewis, and the University of St. Thomas.
 
Also on the B2B team with a crossover into consumer accounts will be Morgan Woodrow, who will assist with clients like Noosa Yoghurt, Fay Ranches, and MOM Brands. Two interns are part of the new hires as well.
 
In addition to staff additions, the agency has also announced new client relationships, such as Noosa, which joins the agency's roster of food and beverage industry clients. Kohnstamm represents Dr. Praeger's Sensible Foods, the Soyfoods Association, Way Better Snacks, Thai Kitchen, and others in the industry.
 
"Our agency is representing the very fastest-growing and innovative food companies in the industry today, and it is very exciting for us," Kohnstamm says.
 
The agency's robust growth is likely to continue for the future, particularly with these strategic hires and new clients, Kohnstamm believes.
 
Source: Josh Kohnstamm, Kohnstamm Communications
Writer: Elizabeth Millard
 

The 3-D printing industry may still be cutting edge and futuristic for most of the marketplace, but a recent acquisition by Eden Prairie-based Stratasys shows that the technology is gaining momentum, and the Minnesota company is leading the way.
 
The company reported recently that it just inked a deal to acquire competitor MakerBot, in a transaction worth about $403 million. If MakerBot reaches certain performance benchmarks, that amount could grow even more before Stratasys finalizes the deal.
 
The acquisition is an important one for the industry, and establishes Stratasys as a savvy, well-positioned company that could significantly extend its reach. Already, the firm produces 3D printers for commercial and industrial uses, and the inclusion of MakerBot technology could expand its production to smaller, more entry-level models that may be used by small businesses or even home users.
 
Industry analysts were quick to note that the combination of the two companies would drive faster adoption for 3D printers for multiple applications, and could bring the technology into the mainstream.
 
MakerBot will now operate as a separate subsidiary of Stratasys, continuing to maintain its own products and market strategy, and CEO Bre Pettis noted that the deal will continue a robust growth track.
 
"We have an aggressive model for growth, and partnering with Stratasys will allow us to supercharge our mission to empower individuals to make things," Pettis says. "It will allow us to bring 3D technology to more people."
 
In addition to the acquisition, Stratasys also announced it would add about 80 jobs by the end of the year.
 
Source: Bre Pettis, MakerBot
Writer: Elizabeth Millard

The summer may be off to a sluggish start weather-wise, but at the Minnesota Cup, the heat of competition just got kicked up a notch.
 
The annual contest, which supports the development of breakthrough ideas from across the state, just announced the start of its semifinal round, with 57 teams of entrepreneurs and inventors ready for the next stage.
 
Now in its ninth year, the Minnesota Cup offers six categories of innovation: energy/clean tech, general, high tech, life science/health IT, social entrepreneur, and student. Competitors are able to enter individually or as a four-person team.
 
The semifinal round will give those innovators a chance to buff up their ideas through exposure to mentors and business leaders, who will act as advisors for the next round. The teams and individuals will also have the opportunity to meet members of the Cup's review board.
 
A full list of this year’s semifinalists is available on the Cup’s site, and includes companies like Rowbot Systems, Windjuicer, Foodsby, Kidblog, Mode-sty, and Cinch Chix.
 
The competition is designed to bring out the best and brightest minds in Minnesota, and help those individuals to make connections that can advance innovation in the state, according to Minnesota Cup co-founder Scott Litman. He says, "The 2013 competition is no exception. We're excited to see how the many strong applicants in this year's pool will progress with mentoring and business planning this summer."
 
Three finalists from each division will be chosen on August 19th, and will be expected to present their business plans for a chance to nab the top prize, which will be awarded on September 11th.
 
Source: Scott Litman, Minnesota Cup
Writer: Elizabeth Millard

Eden Prairie-based Eagle Creek Software Services is proving that bringing IT work back onshore can lead to great results—the technology services company reports 28 percent growth in its customer base this year, with more growth likely in the near future.
 
"Onshoring" is a term coined recently in the IT and consultancy realms to describe a movement away from offshore strategies, which tend to move numerous tasks to other countries.
 
Although plenty of companies still push work out to nations like China and India, an increased focus on local resources looks like it could be the next big trend, and Eagle Creek's success is an indicator that the tactic can work well.
 
"Our growth is positioned around public and private partnerships in the Dakotas," says Ken Behrendt, president of Eagle Creek Software Services. "With a business-friendly state like South Dakota, and an energized university system, Eagle Creek is positioned to thrive by bringing corporate America what they so desperately need—a scalable and reliable workforce."
 
The company calls its strategy the "Dakota Model." Working with government agencies as well as the University of South Dakota, Eagle Creek will create about 1,000 jobs in technology centers around the state over the next five years. The company is building a $10 million technology center in Vermillion, South Dakota, and plans to staff it with students who graduate from the IT Consultant Academy at the university.
 
This move will triple the company's number of consultants, and put Eagle Creek in a strong position both regionally and nationally.
 
Source: Ken Behrendt, Eagle Creek Software Services
Writer: Elizabeth Millard

Minneapolis is about to get more connected.
 
DataBank, a colocation firm that's headquartered in Dallas but boasts a significant Minneapolis presence, recently announced that it will expand its footprint here, based on the acquisition of an Edina data center once owned by tech firm VeriSpace.
 
Planned for two phases, and with construction already underway, the expansion will boost the facility's size to about 17,500 square feet, and will include more cooling functionality and uninterrupted power supply features. The project will also involve updates to the office space areas, as well as revamped customer areas where DataBank will maintain client technology.
 
The company acquired VeriSpace in March, as part of an effort to broaden its reach into new markets. DataBank provides managed data center services, with a particular focus on 100 percent uptime availability for data, applications, and equipment.
 
Company CEO Tim Moore notes that the Edina expansion came as a result of customer demand, and that the company worked quickly to meet the need.
 
Although the expansion will add a significant amount of data center space to the city, Moore believes that this is just the beginning when it comes to the company's presence in the Twin Cities.
 
"This expansion only represents the first step in our overall process in this market," he says, "with more to come."
 
Source: Tim Moore, DataBank
Writer: Elizabeth Millard

Minneapolis-based architecture, interiors, and planning firm Architectural Alliance recently merged with smaller-but-prominent design and architecture company 20 Below Studio, also located in Minneapolis.
 
The merger fuses the two firms' client-centered experience for broader capabilities, notes Carey Brendalen, Principal at Architectural Alliance. "This is two strong organizations coming together," he says. "We've worked with different types of clients and we have different capabilities, and now we're leveraging those differences in a complementary way."
 
20 Below, an 8-person firm that's established a strong reputation in interior architecture and design, will partner with Architectural Alliance's 74-member team. The newly joined firms are expected to drive growth, Brendalen says.
 
Architectural Alliance has experience in market segments like aviation, retail, hospitality, and public sector work, and with 20 Below's expertise in interior architecture, growth should come naturally as a result of the combined energy and experience.
 
"Together, we will offer greater reach, creativity, and expertise in the architecture and design market," Brendalen says, adding that such a combination is especially crucial since client needs are becoming more complex. More variables, like the convergence of work and lifestyle needs, require the firms to approach projects in a new way.
 
"It sounds trite, but there's shared value in terms of what we can bring to customers," says Brendalen. "We're excited to see what comes out of the partnership. We think there's beauty here as well as pragmatism."
 
Source: Carey Brendalen, Architectural Alliance
Writer: Elizabeth Millard

Minnesota technology leaders, start your engines.
 
The high-profile Tekne Awards just opened for entries, and five new categories have been added: STEM education and digital learning, healthcare delivery, impact on industry, agricultural technology, and safety and security.
 
Innovative entrepreneurs, organizations, nonprofits, and government agencies will all compete in the award program, now in its 14th year, presented by the Minnesota High Tech Association (MHTA).
 
The state remains at the forefront of cutting-edge technological growth, the MHTA noted, and the robust and growing competition highlights the kind of innovation that's homegrown here, from cleantech to robotics.
 
Last year, winners included Nova-Tech Engineering, Ecolab, Global Traffic Technologies, Maverick Software Consulting, and Sophia Learning. The City of Minneapolis also received an award, for technology excellence in a non-profit organization, getting a nod for an emergency operations training facility that blends digital data and streaming video.
 
This year, the five fresh categories showcase new directions in the state's approach to innovation. STEM education, a hot topic these days, gets its own category for programs that engage K-12 students in applied learning opportunities. Healthcare delivery will award innovation in the area of medical devices, diagnostics, data management, and other areas that improve patient care.
 
"We are watching significant growth in the areas of mobility as well as safety and security and want to make sure the Tekne Awards reflect that," says Andrew Wittenborg, Director of Outreach for MHTA. "At the same time,  we want to recognize and support the collaborative efforts that lead to Minnesota breakthroughs."
 
In addition to its new categories, the awards will feature well-established, competition-rich categories like software, startup, advanced manufacturing, and mobile technologies.
 
Applications for this year's awards will be open until July 15th, and there's no application fee, nor do applicants have to be MHTA members. Finalists will be announced in September, with an award celebration held in November.
 
Source: Andrew Wittenborg, Director of Outreach, Minnesota High Tech Association
Writer: Elizabeth Millard

The Stir
March 14
Minneapolis City Center Marriott
5:00 pm - 8:30 pm
$75
 
Hosted by the Women's Foundation of Minnesota as a fundraising event for the organization, The Stir is a networking event with dinner and drinks. A keynote from Jacquie Bergland, founder and CEO of Finnegans, will kick off the evening.
 
TechFuse
March 21
Minneapolis Convention Center
8:00 am - 5:00 pm
$349
 
Geared toward IT professionals, TechFuse is now in its sixth year, and going strong with a couple sold-out shows in the past few years. The one-day event covers a range of topics, from app-specific sessions on Windows 2012 and PowerShell v3 to broader discussions on change in professional development and IT as a business.
 
Mobile March 2013
March 21
Earle Brown Heritage Center
6155 Earle Brown Dr., Brooklyn Center
8:00 am - 6:00 pm
$115
 
The popular Mobile March conference should prove especially lively this year since the Twin Cities seems awash in mobile app development. Attendees will hear presentations on topics like game development, user experience, and mobile advertising, as well as case studies of local businesses that have found success in the mobile space.
 
Connect India
March 23
Crowne Plaza, Bloomington
5:00 am - 9:30 pm
$40 - $50, depending on membership
 
Over a sumptuous Indian dinner, attendees at this business event can hear speakers from the Indian-American community discuss their role in the wider economic community. Scheduled to speak are Vikas Narula, creator of Keyhubs, Marie Pillai at General Mills, and Sri Zaheer, Dean at the Carlson School of Management. 

Minnesota exports of agricultural, mining, and manufactured products reached a record $5.1 billion in the third quarter for 2012, up by one percent compared to the same period a year ago.
 
According to figures from the Minnesota Department of Employment and Economic Development (DEED), this marks the eighth straight quarter of record exports in the state. Only three months ago, Minnesota reached an all-time high for a single quarter, when sales peaked at $5.4 billion.
 
Of the three major export categories, manufacturing has the highest sales, and is up by two percent compared to a year ago.
 
Ed Dieter, acting director of the Minnesota Trade Office, says that China and Europe had the biggest export gains recently, with China being especially strong. Dieter notes that sales there are up 16 percent over 2011. Other export areas that showed increases include Taiwan, Canada, Chile, and Australia.
 
In some other markets, sales were down when compared to last year's numbers, particularly for the United Kingdom, South Korea, and Argentina.
 
Given the state's strong biotech and medical device industries, it's not surprising that medical exports should see a big jump. The category increased by 19 percent during the third quarter, led by sales to China, Japan, and Belgium. The full report is available here on the DEED site.
 
Source: Ed Dieter, Minnesota Trade Office
Writer: Elizabeth Millard
 
 

Highlighting technology leaders in the state, the Minnesota High Tech Association (MHTA) announced winners for the 2012 Tekne Awards, handing out top honors to companies like MakeMusic, ReconRobotics, JAMF Software.
 
The award program, now in its 13th year, recognizes innovations from 2011 that impact the lives of Minnesotans, through lifestyle improvement or education. Forty-four finalists were named in fifteen categories. Winners were unveiled at a special event on November 1st.
 
According to MHTA president Margaret Anderson Kelliher, the awards draw attention to the breadth of innovative and competitive technology companies in the state. Greater awareness of the efforts being done here will boost Minnesota's stature as a "silicon prairie" where tech companies can thrive.
 
Fifteen winners show the range of businesses here, and the list includes both large companies like Seagate Technology (winner in the advanced manufacturing category) and smaller companies like Code 42 Software and SparkWeave.
 
Other winners included  PeopleNet, Agosto, GiveMN, OrthoCor Medical, Starkey Hearing Technologies, Imation, and The University of Minnesota Rochester.
 
In addition to showcasing the work of technology-fueled businesses, the awards also honored seven individuals who provided leadership to advance technology and innovation in Minnesota, particularly in state government. The public officials led the effort to consolidate IT services from more than 70 state agencies into a single organization called MN.IT Services.
 
Speaking about all of the awards, Kelliher says, "This year's recipients, once again, raised the bar with the quality and originality of their entries and should be very proud of their accomplishments."
 
Source: Margaret Anderson Kelliher, Minnesota High Tech Association
Writer: Elizabeth Millard

Creative agency Periscope continues to keep its Human Resources department busy.
 
Following a steady hiring rate in 2011, the agency kept growth strong this year, adding 123 employees as of the beginning of October. That brings the company's total employee count to 475, with the majority of those staffers in the Minneapolis offices.
 
Lori Sharbono, Periscope's VP and Director of Business Development, notes that hiring is a result of robust business development efforts, which added some new clients and expanded some services as well. Loyalty marketing services, retail branding, and increased analytics capabilities have all been put into the agency's existing services mix of content creation, brand development, website creation, media buying, and other capabilities.
 
"It sounds simple and basic but what works for us is to focus on client success," says Sharbono. "We grow our capabilities based on what they need, and we try to stay a step ahead of that. In order to achieve that level of innovation, we focus on bringing in subject matter experts who can provide insight."
 
In addition to its Minneapolis office, Periscope also operates smaller offices in Hong Kong, New Delhi, and Toronto. Most of the new hires this year will be in the local office. Although the growth rate might make it more challenging to keep finding enough office space, it also creates a vibrant culture, Sharbono believes. "We have a very unique culture here, and that's what draws people," she says. "We have commitment to our clients, but we're also committed to creating a fun, lively culture for employees."
 
Source: Lori Sharbono, Periscope
Writer: Elizabeth Millard

Highlighting technology leaders in the state, the Minnesota High Tech Association (MHTA) announced finalists for the 2012 Tekne Awards.
 
The award program, now in its 13th year, recognizes innovations from 2011 that impacted the lives of Minnesotans, through lifestyle improvement or education. Forty-four finalists were named in fifteen categories.
 
The MHTA noted that the state remains at the forefront of cutting-edge technological growth, and the finalists show that the state's technology future is bright indeed, in areas that range from cleantech to robotics to mobile technologies.
 
In the startup category, finalists are Sophia Learning and Sparkweave, while those competing in the software category are Code 42 Software, Savigent Software and Third Wave Systems.
 
Finalists in other categories represent a range of companies, from large firms like 3M and Seagate Technology to smaller businesses like SheerWind, Digineer, and Agosto.
 
The awards are designed to showcase these types of companies, and draw attention to the innovative and competitive companies in the state, according to MHTA president Margaret Anderson Kelliher. They're part of the organization's larger mission to boost education and entrepreneurship along with technology development.
 
"We're very excited about the opportunities available to technology companies here," says Kelliher. "In general, we believe that individuals and companies in the state have more potential than they do challenges. We're proud and happy to support them in any way we can."
 
The Tekne Awards will be presented on November 1st at the Minneapolis Convention Center.
 
Source: Margaret Anderson Kelliher, Minnesota High Tech Association
Writer: Elizabeth Millard
 

Just in time for the upcoming snowmobile season, Medina-based Polaris Industries recently broke ground on a major expansion of its research and development facilities in Wyoming, Minn.
 
Doubling the size of its existing facility, the company is creating capacity for about 350 additional jobs, and it's likely to keep up a strong pace of hiring.
 
"The company has had record financial performance for a reason," says Jim Williams, VP of Human Resources. "We have profit sharing at every level, a robust bonus plan, and a super high-energy, positive culture."
 
The sense of collaboration at Polaris draws many candidates, Williams says, and the number of resumes zipping through the HR department can be formidable. Part of the allure is the company's generous policy on borrowing products like all-terrain vehicles, as well as receiving vehicles, accessories, and garments as rewards for good performance.
 
"There's a huge incentive to work here," says Williams. "We have a team made up of power sports enthusiasts, and the culture creates a tremendous amount of pride in the company."
 
That level of loyalty and commitment is driving growth for Polaris, he adds. The company recently announced that its one millionth product rolled off its assembly line in Spirit Lake, Iowa.
 
The new facility in Wyoming should allow the company to stay on its strong growth track and expand product development as well. It shouldn't be too long before Polaris is roaring toward that two millionth product mark.
 
Source: Jim Williams, Polaris
Writer: Elizabeth Millard

Anyone searching for an indicator of Minnesota's strong tech growth should take a good look at St. Cloud-based W3i.
 
The company has not only tripled growth for its mobile monetization business within the past year, but it's also nearly doubled its employee numbers, and there's no stopping the momentum now.
 
To keep pace, the company will be opening an office in the Grain Exchange building in Minneapolis, and has recently added space to its headquarters as well. Another office just opened up in San Francisco, too, to attract developers and potential employees in that technology hub.
 
"We're excited about everything that's happening, and the surge in revenue we've seen," says Rob Weber, who co-founded W3i with his brothers, Ryan and Aaron, in 2000. "With the growth in mobile technologies and apps, we're in a hot category, with a platform that's creating a lot of value. It's hard not to be excited when you're in that position."
 
The company helps app developers and publishers make a profit from their apps, through a monetization and distribution system. Services include user acquisition, media buying, and marketing solutions.
 
Particularly well received is the W3i Games Platform, which provides a hosted virtual goods management system. The platform allows developers to add, modify, or delete inventory items and manage their currency online.
 
With all the momentum, W3i is likely to keep its current, robust pace, Weber believes. There are 20 open positions in every functional area of the company, and he anticipates that the business side of W3i will get built out as much as the development side. He says, "All areas are growing here, and we're just doing our best to keep up."
 
Source: Rob Weber, W3i
Writer: Elizabeth Millard

The best breakthrough business idea in Minnesota this year is a mobile application that allows care providers, family members, and loved ones to interact with one another throughout the day.
 
Called PreciouStatus, the app nabbed the top prize at the lively Minnesota Cup competition, beating out over 100 competitors in the high-tech division, and about 1,000 entrepreneurs total. PreciouStatus founder Julie Gilbert-Newrai started the company about a year and a half after her husband was hospitalized with a severe brain hemorrhage when the couple's child was just eight weeks old.
 
"I learned firsthand how difficult communication with loved ones can be during times of crisis," she says. "The more I looked at the system at large, it became obvious how broken it was." She mapped out a tool that could provide real-time updates for those in daycare, eldercare, rehabilitation facilities, schools, and other locations.
 
Using the technology, care providers input updates on activities, medication, mood, and other aspects of care. This allows family members to keep up with what's happening without frequent calls to a facility.
 
This year's Minnesota Cup competition was closely watched, in part because it offered the highest total prize amounts in the Cup's history. One finalist from each division received $25,000 in seed capital ($10,000 in the student division), and runners-up each received $5,000. PreciouStatus will was awarded an additional $40,000 as grand prize winner.
 
"The Minnesota Cup is one venue that tells entrepreneurs to keep going while so many tell you that your business isn't going to work," Gilbert-Newrai says.
 
Source: Julie Gilbert-Newrai, PreciouStatus
Writer: Elizabeth Millard