1. education
2. high school

The
Network
News
Tri-State Manufacturers’ Association
Newsletter
November 2014
This Issue
TSMA’s November Company of the Month found success by
counteracting the “burnt toast” theory. Are you intrigued? Read
on to learn about the heat-generating products manufactured
by Thawzall, LLC.
Founded as T.H.E. Machine Company in Glenwood, MN,
in 1997, Jerome Jakobson conceived the idea of a portable
hydronic heating system when a contractor friend found himself
behind schedule as the winter freeze caught up with him. A
plumber by trade, Jakobson produced hundreds of hydronic
heater prototypes before settling on a version that used a
low pressure, closed-loop system to deliver heat. Believing
his portable hydronic heater to be better than a competitor’s
product, Jakobson received a patent in 1999 for a model
with a manifold fluid distribution system that featured quick
disconnects and multiple heat zones. The patented technology
is called HEATZONE®.
In 2007, Jakobson sold his company to five local Alexandria
investors and on July 1, the name changed to Thawzall LLC
under new ownership and management. Current GM David
Reller joined the company in 2011, and Thawzall relocated to a
20,000 square foot facility in Alexandria in 2012.
After the great recession, Thawzall embraced a new business
model in which they eliminated their in-house fabrication
department and began outsourcing all components. The
present day shop floor specializes in efficient, on-demand
assembly of several standard units, with options available.
So – back to the “burnt toast” theory. Competing “ground thaw”
products deliver heat in an uncontrolled method that results
in uneven heat distribution – reminiscent of the unpredictable
toaster we’ve all encountered that randomly burns your toast.
4
Education Partnership Mtg
5
Celebrating MN Mfg Week!
6
Nominations for Member of Year
6
TSMA Elections Underway
7
Billboard Cost-Share % Increase
10
Scholarship Deadline - Nov. 14
11
Board Highlights of Oct Meeting
Thawzall is the only company in the business that offers a
product with HEATZONE® technology - multiple heat zones
that can be controlled with the push of a button.
Thawzall’s portable heating and curing system is available
in two models, the TCH150 and TCH 250. Both models
are mounted on a trailer to enable movement from one job
site to the next. These systems operate by using a diesel
powered oil burner to heat a mixture of glycol (40%) and
water (60%) running through multiple hoses. The hoses are
laid out in a zig-zag pattern on the frozen ground, similar to
the layout used for in-floor heat systems installed in homes
and buildings. The smaller unit utilizes two 600’ hoses and
the larger unit is equipped with five separate 600’ hoses.
Once the hoses are laid out on the frozen ground, they are
covered with construction blankets to retain the 180° heat
being generated. The TCH150 has the capacity to thaw
Continued on Page 2
TSMA is affiliated with Midwest Manufacturers' Association.
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November 2014
Thawzall, LLC
Con’t from pg 1
12” of frost in 24 hours in a 2,400 square foot area, while the
TCH250 can impact 6,000 square feet.
Thawing the ground isn’t the only challenge for construction
projects impeded by winter weather, so the HEATZONE®
technology has also been adapted for use in curing concrete.
To continue the above scenario, excavators at the build site
remove the top 12” of now frost-free soil. The hoses are then
repositioned for another 24 hours and an additional 12” thawed
followed by excavation, and so on until the desired depth is
reached. Concrete is poured, but cold temperatures greatly
impact the amount of time needed for curing. HEATZONE®
hoses are positioned on the concrete and covered with blankets
to create the 75° F environment ideal for the concrete curing
process.
When Thawzall was impacted in 2009-2010 by the decline
in construction during the recession, the owners decided to
use that down-time to diversify the company with a second
heat-generating product line: the HEATZONE® Flameless
Heater. Available in two sizes, the H750 (patent pending)
and the patented H1350, Thawzall’s flameless heaters utilize
a considerably more efficient (up to 94%efficient) technology
that was developed just four years ago. The Flameless
Heater is also a portable unit mounted on a trailer. It operates
with an internal combustion diesel engine that ingeniously
captures four sources of heat: mechanical shaft to thermal heat
conversion, exhaust heat, radiant heat from the engine block,
and coolant heat. Fans are used to expel the captured heat
through two output ducts, with the operator having control over
both discharge temperature (max 250° F or 275° F) and rate of
expulsion.
The largest application for Flameless Heaters is the oil and gas
industry. A single H1350 unit at a Wyoming well site is used
to simultaneously heat six well-heads—this unit replaces six
competing units used for the same application. Thawzall is
the only company to provide a Flameless Heater that actually
works in the harsh conditions at the Prudhoe Bay oil field, a
cold, remote location in extreme northern Alaska. Five units
recently shipped to the natural gas industry in Kazakhstan (a
former republic of the USSR); the customer’s freight forwarder
played an integral role for successful shipment. Currently,
Thawzall exports about ten percent of total production.
An important feature of Thawzall flameless products is the use of
safe, clean, fume-free heat. In numerous scenarios, particularly
mines and drilling rigs where methane may be encountered,
flameless heat is an important safety measure. Fuel efficiency
is also a critical feature. Because the HEATZONE® technology
Phone: 800-654-5773
is based on the most efficient heat transfer methodology,
Thawzall products operate with up to seven times LESS
fuel than competing products. This translates to huge fuel
savings … fuel costs are greatly reduced in conjunction with
a much more favorable impact on the environment.
With the success of the Flameless Heaters, which now
account for approximately fifty percent of sales, Thawzall is
renting additional assembly space in a secondary location
in Alexandria. Although still impacted by a seasonal sales
spike – the “busy season” runs from spring to late winter - the
company’s 20-employee workforce is now stable throughout
the year with no layoffs. Production averages five to ten units
a week.
The company also offers accessories, such as generators
for when electricity is not available on location, transformers
to accommodate European electrical requirements, and a
remote manifold to extend the reach of the hoses.
The sales force consists of Reller, and another employee,
Steve Knisley, and several regional independent sales
reps. Of interest, the company’s largest customers are big
rental agencies like Hertz Equipment and United Rental
and many large independent rental companies. Reller
explained the current business model in which contractors
and mining companies have gone away from managing their
own assets. Much of the equipment needed to get a job
done, including Thawzall units, is rented, expensed to the
specific job, maintained by the rental company, and returned
when the job is over. That said, the sales force still spends
considerable time visiting construction sites and mines in an
effort to generate demand for Thawzall products.
Thawzall LLC has experienced significant growth of late. To
date, company sales in 2014 are double what they were one
year ago. This summer, the company accepted an order for
50 ground thaw units that will ship to the gas fields in West
Virginia. In this application, the hoses are not intended for
thawing or curing, but rather, to keep the blow off protection
valves on a drilling rig operable and water in pipelines and
frack tanks from freezing.
With oil and gas markets still expanding due to the new
drilling processes, the future looks promising for Thawzall.
Their biggest challenge is figuring out a way to accommodate
significant growth in terms of facility space, available
workforce, and cash flow. Meanwhile, many happy customers
are pleased to have an option other than “burnt toast!”
Written by Sandy Kashmark, TSMA Exec. Director
midwest@runestone.net
www.tsma.org
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November 2014
Thawzall Photos
Thawzall’s H1350 Flameless Heater utilizes technology developed
just four years ago to bring portable heat to mining operations
across the globe.
HEATZONE® technology in the TCH250 employs five 600’
hoses filled with a glycol/water mixture to deliver controlled
heat to construction and mining sites.
The arrival of November reminds us of a
special day. It was planned to be a day
of thanks. I look forward to the feast of
delicious food, family, good friends, and
way too much football.
E Says...
Elroy Vesta
EJ Enterprises, Fergus Falls
Reliving
the Past To
Enhance the
Present
This month I want to consider how the
gratitude we have for our past can and does
shape our present. The impact of gratitude
on our lives is significant. We do not come
to a lifestyle of gratitude on a whim. This
pattern likely had its beginning in childhood
and was sharpened with the impact of
mentors throughout our lives.
T – Time is needed to become one whom
people remember with fondness because
we reflect our grateful spirit in all that we
do. For me, gratitude was first learned from
parents who reminded (commanded) me
to say “thanks.” Teachers, a boss at the
newspaper, a look from a family member,
and many others have been constantly
influencing me to be more grateful.
H – Help is needed for this to develop. I have
read extensively. Textbooks, biographies,
magazines, self- help books, and the Bible
all have provided reminders that THANKS
should be part of my life. I remember that
boss who in gentle but firm ways helped
me to understand that more effort would
be given by the newspaper carriers if I
expressed thanks rather than commands.
This is a lifelong lesson that continues to
shape who I am becoming.
A – Attitude guides how we can develop
into thankful people. There are still people
around us who are takers. I don’t know about
Phone: 800-654-5773
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you, but I find these people burdensome. The
takers’ attitude is marked with a selfishness
that hinders partnership and participation.
Attitude adjustment requires a willingness to
be responsible for how one views life. I find
it helpful to take moments to walk, rest, or
spend time with a positive influence and my
attitude changes.
N – Names are important. When you say
thank you, be certain that you call the person
by name. We all like to be remembered by
the name we bear. I’ve been embarrassed
by using an incorrect name; it is best to own
up to the mistake and learn from the error. All
of us like to hear our name used in a positive
manner, so make this part of the way you
show gratefulness.
K – Kindness involves showing appreciation
in a manner that is generous and considerate.
I have heard thanks expressed in a grudgelike manner. It does not feel good when this
happens. In all instances I have observed, the
lack of kindness leads to questioning whether
there was a true expression of gratitude.
S – Supportive is the way gratitude unfolds
when I recognize its value to the person to
whom I am expressing appreciation. When
THANKS is expressed, I know someone took
note of my work and words and values what I
have offered. When is the right time to value
another by means of expressing gratefulness
for their investment in your work and world?
Always.
From my house and office to your lives –
THANKS! You have made a difference in life
for me and I am blessed to be part of your life.
www.tsma.org
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November 2014
Tuesday, November 4
Alexandria
Alexandria Area High School
4300 Pioneer Rd SE
Schedule of Events
4:30 PM
5:30 PM
6:15 PM
7:15 PM
Tour: Alexandria Area High School
Dinner/Networking in Commons
TSMA General Mtg/Guest Speakers
Adjourn
Discussion Topic
Connecting Manufacturing
and K-12 Education
Presented by:
Jason Murray, Exec. Director,
EDC
Alexandria Area
Duane Taillefer, VP Operations, Massman
The audience will learn how the Alexandria
community came together to plan, develop and
fundraise to support curriculum focusing on career
development in the region. Presenters will share
background on the academy model built by the
community, curriculum in manufacturing, and key
equipment acquired to support the academy.
RSVP by Friday, Oct. 31
Register Here
Tour: NEW
Alexandria Area High
School
The new school building is a model in environmentally
friendly design and construction, and will accommodate
1,400 students in grades 9 through 12. It features a cutting
edge learning environment. With over 4 million dollars in
private donations the school has some exceptional features
not usually seen in high schools - making this a tour well
worth your while.
TSMA Education Partnership
Hats off to our current K-12 partners:
Alexandria District 206
Brandon-Evansville High School
Breckenridge School District
Campbell-Tintah School
Tri-State Mfg. Association
Detroit Lakes High School
offers FREE membership
Fergus Falls Public Schools
to K-12 schools in the
Frazee-Vergas High School
region. To learn more,
Hawley High School
visit www.tsma.org or
Henning Public Schools
contact the office.
Herman-Norcross School
Holdingford High School
Minnewaska Area HIgh School
Morris Area High School
New York Mills High School
Osakis Public Schools
Rothsay Public Schools
West Central Area Schools
Meeting registration is required.
$20.00 per Person
Educators are invited to attend FREE of
charge! Teachers, administrators, counselors,
school board members ... be our guest!
TSMA requests remittance for all reservations notcancelled prior to the event.
Phone: 800-654-5773
midwest@runestone.net
www.tsma.org
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Minnesota
Manufacturers
Week
Celebrated
Across the
State
Dream It. Do It.
Statewide Tour of
Manufacturing logs
a successful 4th
year
November 2014
Over 1,500 students from 26 high schools throughout Minnesota participated in Minnesota’s
Statewide Tour of Manufacturing on October 23-25, 2014. A total of 85 manufacturers
from all corridors of the state, along with three technical colleges, opened their doors for
public or “student only” tours to provide an up close look at what manufacturers do and
how they do it. (The number of visits from the PUBLIC was not yet available as of press
time.) Tour of Manufacturing provides a rare opportunity to see the inner workings of a
factory, meet the people who work there, gain insight into the skills, education and training
necessary for a career in manufacturing, and learn more about the economic impact of
manufacturing. Nearly 800 visits were logged to the Tour of Manufacturing website during
Minnesota Manufactures Week.
Highlights of the 2014 Minnesota Manufacturers Week include:
• Minnesota Governor Dayton issued a proclamation declaring “Manufacturers Week”
in Minnesota to highlight the importance of the industry to the state’s economy.
• A Manufacturing Breakfast in central Minnesota, featuring the Minnesota DEED
Commissioner (Katie Clark Sieben) as keynote speaker, helped bring political attention
to the importance of this event.
• A Manufacturers’ Appreciation luncheon was hosted by the Southeast Chamber of
Commerce, with 90 people taking a tour.
• Speeches and videos promoting manufacturing career opportunities were shared at
high schools surrounding the tour dates.
• 360º Center of Excellence, supported transportation scholarships for “student-only”
tours throughout the state.
• DreamItDoItmn.com tattoos were supplied to each manufacturer as a giveaway for
students to connect with more information about Minnesota manufacturing and career
opportunities.
• Promotional toolkits were provided by download to all tour hosts via the website.
• Radio spots, press releases and newspaper highlights were broadcast throughout
the state.
• Manufacturers celebrated industry success at association-hosted events in St. Cloud,
Winona, Brooklyn Park, Fargo, and more.
• A “Made in Winona” series was developed in the Southeast region-featuring a local
manufacturer on the front page of their daily newspaper and online.
• A career exploration program was launched in the Southeast region with an industry
partner discussing the many careers involved with manufacturing, and they promoted
the Dream It. Do It. MN resource.
• A Manufacturers’ Breakfast in west central Minnesota focused on an impressive new
manufacturing education program in a high school setting.
Kudos to the TSMA members who hosted a tour this year: Massman Automation (Villard),
UMC (Monticello) and Windings (New Ulm).
2014 Statewide Tour of Manufacturing
Comments from Teachers
I knew we had hit a home run when we arrived back at the high school. Practically all of the students gave me high fives,
knuckles and thanks for a great field trip as they left the bus. I think they really appreciated it and I then thought to myself, “This
school will not let you down.” ‘Author Unknown’
A huge “Thank You” to all of you folks that made this outstanding education tour possible. This was such a great opportunity
for not only our curious, but very eager students to see our local industry in action (real time). Wow! Wow!
Many of our CIM (Computer Integrated Manufacturing) students were skeptical prior to this tour, however, the huge look in their
eyes told the story when they saw the Pequot Tool & Manufacturing and Truss Worthy operations in action. It was so precious
and clearly an eye opener. Thank you, Trent and Mary Ruth, for the guidance.
Phone: 800-654-5773
midwest@runestone.net
www.tsma.org
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Page 6
TSMA Seeks
Nominees for
“2014 Member
of the Year”
Award
November 2014
The TSMA Board of Directors is excited to call
for nominees for the TSMA 2014 Member of
the Year Award.
Please call or email the office with your
nomination – nominate your own company or a
fellow member. All members-in-good-standing
are eligible, including service providers. The
award will be issued to a company, not an
individual.
The selection process will take the following
criteria into account.
• Regular attendance at TSMA meetings/
events.
2014
M E M B E R
TSMA Member of the Year
PAST RECIPIENTS
2010
2011
2012
2013
Alexandria Tech & Comm College
Innova Industries Inc.
Lind-Rite Precision
EJ Enterprises
• Extra effort to assist TSMA with
its goals. Examples: participate
on a committee, support workforce
development activities, sponsor the golf
social, promote the TSMA scholarship
program, advertise in the newsletter
or directory, sponsor a meeting, host a
tour, provide a guest speaker, submit
articles for the newsletter, etc.
• Effort to promote TSMA to others.
Bring a guest to a meeting, submit the
names of potential members, share the
membership directory, provide a link to
the TSMA website, etc.
The deadline for nominations is December
1, 2014. The award winner will be
acknowledged at the TSMA annual meeting
in January 2015. Call or email the office
to request a nomination form, or download
the form located on the home page at www.
tsma.org.
Help us acknowledge our deserving
members; submit your nomination today!
DEED
Tour Day
Cancelled
Regrettably, “Manufacturing Tour Day”
scheduled with DEED Commissioner Katie
Clark Sieben on October 7, 2014, was
largely cancelled. TSMA did proceed with
a luncheon meeting in Fergus Falls, with
Deputy Commissioner Blake Chaffee filling in
as guest speaker, followed by a tour of West
Tool & Design.
Although tours of Lind-Rite Precision
in Osakis, Aagard Group in Alexandria,
and Shoremaster in Fergus Falls were
cancelled, we want to express appreciation
to these companies (along with West Tool
& Design) for their willingness to spotlight
modern manufacturing for state officials
and legislators.
TSMA
Election
Underway
TSMA members, check your email for a link
to the BALLOT for TSMA’s 2015 Board of
Director election. Cast your vote by Noon
on Tuesday, November 4, 2104. Ballots were
issued via email to the “primary contact” for
each member (one ballot per company). Six
nominees are listed on the ballot, with four
positions up for election.
Thank you to all nominees and potential
nominees for your interest in serving TriState Manufacturers’Association! Election
results will be announced at TSMA’s
November 4th general meeting.
Phone: 800-654-5773
midwest@runestone.net
www.tsma.org
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November 2014
Billboard Cost-Share Increases to 75%!
Call the TSMA office to inquire about the Billboard Cost-Share program. The program recently adopted a 75/25 formula,
meaning grant funding from West Central Initiative will pay 75% of the cost of a billboard (max of $1,500) that promotes
YOUR company and Dream It. Do It. Use billboard advertising to remind people that manufacturing is alive and well in west
central Minnesota! Limited funding available; call today.
Minnesota
Manufacturing
Summit Held
October 1
A crowd of 135 people attended the recent 2014 MN Manufacturers’ Summit in
Bloomington. Thomas Edison’s great grandniece, Sarah Miller Caldicott, shared insights
on how Edison used collaboration as a driver of his innovation success and how it can be
applied to business today. Building
and sustaining a world class
manufacturing workforce was
the subject of keynote speaker,
Dr. Annette Parker, president,
South Central College followed
by a panel presentation about
the opportunities and challenges
facing Minnesota manufacturers.
Thank you Minnesota Chamber
of Commerce for spearheading
the annual Summit, held in
conjunction with Manufacturers
month this year.
TSMA Strives
for Effective
Email
Communication
Phone: 800-654-5773
“Topic specific” distribution lists are under
development in the TSMA database. These
can target your special interests or can
target specific employees in your company.
For example, perhaps you want your
Human Resources personnel to receive
only information related to HR. They could
be marked as “Human Resources” in our
database. To the right is a
list of the categories we have
identified. Let us know who
in your company is intersted
in what topic.
Please
know you can change your
selection(s) at any time by
contacting the TSMA office.
midwest@runestone.net
•
•
•
•
•
•
•
•
Meeting Announcements
Newsletter
Government Affairs
Workforce Development
Sales/Marketing
Human Resources
Quality & Continuous Improvement
Safety/Compliance
•Golf Social
Please contact Steph Davis (stephd@
runestone.net) to have your name (or
that of a fellow employee) added to
one or more of the lists above. To date,
nonmembers are also encouraged to
share their email address.
www.tsma.org
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Page 8
Modern
Manufacturing
Learning Lab
Coming to
Fergus Falls
High School
TSMA Goals
2014
Phone: 800-654-5773
November 2014
Remarkably, community members in Fergus
Falls are less than fifteen percent away from
reaching their 3-year goal to raise $350,000 to
implement a Modern Manufacturing Learning
Lab at Fergus Falls High School. Launched
in early 2014, the program raised $300,000 in
just a few short months!
The new Lab will teach the use of CNC
machines, creativity, innovation, and accuracy
– all skills that are in demand in manufacturing.
The improvement project involves the
installation of commercial flooring, wall
coating and lighting; improved ventilation; and
expanded electric service. New equipment
includes: welders, 3D printer, laser engraver,
and CNC router, milling, and plasma CAM.
Tri-State is pleased to contribute $500
towards this project.
Evan Westra, TSMA President, hands Rick Schara a
check - both are taskforce members raising money
for this project.
The TSMA Board of Directors established four goals to guide decision making in 2014:
1.Effective partnerships: Increase TSMA’s effectiveness by having the right conversations
with the right people.
2.Growth: Increase the number of companies paying membership and becoming actively
involved in TSMA.
3.Workforce Collaboration: Continue to collaborate on innovative projects focused on
increasing the number of people interested in careers in manufacturing.
4.Government Relations: Improve legislative advocacy in the manufacturing community.
midwest@runestone.net
www.tsma.org
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Page 9
November 2014
November 18, 2014
Educational Program: 9:00 a.m.-4:30 p.m.
Networking Reception: 4:30-6:00 p.m.
Sheraton Minneapolis West, Minnetonka, MN
Learn how the Internet of Things:
• Impacts the industrial world
• Changes the fundamentals of automation through
pervasive sensing
• Affects product design
Who should attend:
• Manufacturers engineers & technicians
• Product development engineers & technicians
• Manufacturing business and human resource managers
• Manufacturing chief technology officers
• Manufacturing business owners
Rockin’ Transformation
With an innovative approach to design and
high building standards, W. Gohman Construction
recently renovated and added to the Public Works
facility in Maple Grove, MN. The result was a
stunning transformation that yielded optimal
work and storage space.
GENERAL CONTRACTING
Lea
indust rn from
ry topi
c leade
about
rs
h
Interne ow the
to
is tran f Things
sfo
manuf rming
acturin
g!
REGISTRATION COST
Professional: $95
Student: $30
TO LEARN MORE
Visit www.360mn.org
Contact Karen White
218-755-2206
kwhite@bemidjistate.edu.
An affirmative action, equal
opportunity employer and educator.
State Launches Initiatives
to Encourage Small
Business Growth
The Minnesota Department of Employment and
Economic Development (DEED) has launched three
new initiatives that offer assistance to help small
businesses in Minnesota expand or improve their
operations.
DESIGN/BUILD
CONSTRUCTION MANAGEMENT
wgohman.com
Officials said the Greater Minnesota Job Expansion
Program, Innovation Voucher Pilot Program and Job
Training Incentive Pilot Program will encourage job
growth, increase private investments and expand the
tax base.
Read more....
St. Joseph, MN • 320.363.7781 • info@wgohman.com
Phone: 800-654-5773
midwest@runestone.net
www.tsma.org
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TSMA
Scholarship
Program
Nov. 14 Deadline
Contributed By:
Brad Stevens, Relationship
Manager
Defining
Interest Rates
Brad Stevens is a Relationship
Manager with Alerus Financial,
a full service commercial
bank serving in your best
interest. With over twenty years
experience, Brad works closely
with business owners to provide
advice and financial solutions
amongst the ever-changing
market cycles. Contact Brad at
651.746.6153 to discuss fresh,
innovative financial strategies
for your business.
Alerus Financial
Phone: (952) 417-3753
Brad.stevens@alerus.com
Phone: 800-654-5773
November 2014
Promote TSMA’s scholarship
opportunities to your employees
and it could be someone you
know receiving money to help
fund their manufacturing-related
careers!
www.tsma.org
Back in college I had an Economics Professor
that declared to my class, “Never try to predict
Interest Rates, even though you have a 50%
chance of being right, chances are you will
always be wrong”. Over the past 35+ years
I would say the Professor was right, every
time I heard an interest rate prognosticator
try his luck, the market proved him wrong.
Even recently, in the past year when I heard
that interest rates had hit bottom and were
headed up, they confounded the “experts”
and went down further. As a business owner
you should know about interest rates, what
they mean and how they work, even if they
cannot be predicted.
Simply put, interest rates are nothing more
than the cost of using money. Banks will pay
you to use your money via a savings account
interest rate. You get the privilege of paying
the bank an interest rate to use their money
when you borrow from them.
There are essentially two kinds of interest
rates, short term and long term. Short term
rates are typically any rate that will or can
adjust in less than a year. The Prime Rate
is one example of a short term rate. The
Federal Reserve Discount Rate is also a short
term rate. This rate, The Federal Reserve
Discount Rate, is the price charged to banks
for borrowing from the Federal Reserve to
meet daily needs. If the Government wants
more stimulus in the market, they will cut
this rate which in turn the banks pass on
by lowering the Prime Rate to its clients.
Any interest rate tied to the Prime Rate will
thus move down, allowing for a cheaper
cost of funds to the client. If the Fed wants
midwest@runestone.net
the economy to contract, they will raise the
discount rate. Any short term borrowing that
you have will be priced at a short term rate.
Short term rates are then tied to what the
Federal Reserve does, essentially.
Long term rates are associated with lending
for one year or longer. The longer term rates
will typically reflect the “Market” predictions
of how inflation will have impacted the core
principal either invested or borrowed out to
the maturity date, whether that is 1, 3, 5, or
longer in years. These rates are typically
set in the Bond Market, with the core being
Treasury Bonds/Bills. Corporate Bonds are
typically priced for interest rate purposes
at the corresponding maturity plus a risk
premium. Your term loans will be based on
a core bond rate plus a similar premium. The
“Bond Market” thus sets the long term rates.
While the Federal Reserve may have some
influence in this market by the amount of
bonds they issue, it is really the investment
market with the expectations they have on
the return they want that will, in the end,
influence what you have to pay to borrow
for that next piece of equipment.
While you cannot always predict where
interest rates are going, you now have a bit
of information on the back ground of rates
and where to look for any trends on where
they might be going.
www.tsma.org
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November 2014
Highlights from
the October
Board Meeting
The Tri-State Manufacturers’ Association
Board of Directors met on October 7, 2014,
at West Central Initiative, Fergus Falls, MN.
The consent agenda was approved, including
September 9, 2014 meeting minutes,
September 2014 financial reports, and
updates on membership, PMMC, investment
strategy, career expos, and holiday party.
Discussion was heard regarding the outcomes
from Manufacturing Bound. The TSMA Events
Committee will advise on whether or not to
host a like event in the future.
Six nominations were confirmed for the
TSMA election ballot. Ballots will be issued
electronically in October and tabulated at the
November 4th general meeting.
Regarding the Billboard Cost-Share program,
the board passed a motion accepting the
extended deadline of June 30, 2015 and
changing the parameters from a 50/50 costshare offer to 75/25 cost-share, pending
approval from the granting agency, West
Central Initiative.
Kashmark reported on funds remaining re: the
Robotics Gear Up Grant. TSMA is attempting
to collaborate with LCSC to combine remaining
grant funds and offer additional LEGO League
workshops, but finding an available instructor
has proved challenging. Discussion to
continue.
In an effort to further expand secondary
school involvement with manufacturing, the
board passed a motion authorizing staff time
to develop an all-inclusive contact list for
K-12 superintendents, principals, and career
counselors in the TSMA service region and
commence with monthly communication from
TSMA.
The board approved grant funding of $1,000
each for Rothsay Schools to purchase LEGO
kits and for general expenses for the QWERTY
robotics team from Detroit Lakes.
Discussion was heard regarding nominees
for TSMA 2014 Member of the Year.
Suggested programs and tours were
discussed for upcoming TSMA general
meetings.
With regard to expanding partnerships,
Enterprise Minnesota will be invited to the
November board meeting.
The next TSMA board meeting is scheduled
at 3:00 PM on November 4, 2014, at the
Alexandria High School in conjunction with
the general meeting.
Mark Your Calendar
TSMA Holiday Social
TSMA Annual Meeting
Elbow Lake
Fergus Falls
Tuesday, December 16
Tuesday, January 6
Join your TSMA friends at the Knotty Pine for the annual
Holiday Social
Mark you calendars for the TSMA Annual Meeting
5:00 p.m. Social
6:00 p.m. Dinner
Dinner/Meeting - Bigwood Event Center
Tour - PAYDAC PLASTICS, Inc.
Final details pending
Click here for flyer and to register.
Phone: 800-654-5773
midwest@runestone.net
www.tsma.org
m
Page 12
November 2014
Meeting Update: $100 Cash
New Member Corner
A welcome is extended to the newest member of
Tri-tate Manufacturers’ Association...
Welcome!
Drawing, and Thank You
Remember to turn in your business card at each Tri-State
meeting for a chance to win $100 at a future meeting! One
business card will be drawn from “the hat” each month; the
person named on the card must be present to win.
At the October TSMA meeting the name of Elroy Vesta,
EJ Enterprises, was drawn. Elroy was present to win the
$100 prize.
DMK Intellectual Property Law PLLC
18281 Minnetonka Blvd, Suite F
Wayzata, MN 55391
Deirdre Kvale, Patent Attorney
dkvale@dmkiplaw.com
www.dmkiplaw.com
952-476-4005
Thank You
Legal services for intellectual property law, patents and
trademarks.
Blake Chaffee, Deputy Commissioner at MN Department
of Employment and Economic Development for stepping
in to update TSMA membership on the state of the
economy especially in regards to manufacturing at the
October 7 meeting.
Career Opportunities in
Manufacturing
Thank you West Tool & Design for hosting a tour of your
facility!
http://youtu.be/lSSshHHJCxM
Productive Alternatives
Your Source of
SUB-CONTRACT LABOR
Manufacturers Directory
and Database
TSMA Members
save 20%!
SILK SCREENING
•Quality silk screening on a variety of
materials
•Factory direct pricing on decals, real
Purchase an online Manufacturing Database from MNI
and save 20%! This offer is available to members of
AMFA, CMMA, TSMA and the Brainerd Manufacturing
Alliance when you order online using the link below.
www.manufacturersnews.com
FREE search offer! The MMA office has access
to database information in the five-state area and
members are encouraged to request a “basic search”
free of charge. Examples of research that typically
takes just a few minutes of time: address or contact
name for a particular company; list of companies in a
certain city, county or state; capability search by SIC or
NAICS code; and more. Call to inquire!
Phone: 800-654-5773
for your production needs
MACHINE WORK
Drilling, riveting, blister packing, heat
sealing, shrink wrapping...
estate signs, magnetic and custom
signs for industrial, municipal and
commercial use
WOODWORKING
•Complete start to finish or your product
components
•Stakes - hardwood or softwood
WHY PRODUCTIVE
ALTERNATIVES, INC?
RELIABILITY
~Quality products on time
SAVE MONEY
~Pay by the piece
~Pay only for items
completed to your satisfaction
~Don't pay for freight
midwest@runestone.net
ASSEMBLY
•Simple and Complex
•Small and Large
•We assemble to your
specifications
PACKING
•Blister packing
•Heat sealing
•Shrink wrapping
•Other types of packing
BULK MAILINGS
We collate, fold, insert and
label millions of items/year.
Call for a free estimate!
Steve Lorshbough
Productive Alternatives
1205 N Tower Road
Fergus Falls MN 56537
Ph. 800-477-7246
Fax 218-736-2541
www.tsma.org
m
Page 13
November 2014
A cost effective way to reach a
broad manufacturing audience.
Promote your product or service to
AMFA, CMMA and TSMA for
one annual fee.
To learn more, contact
Sandy Kashmark at 800-654-5773 or
midwest@runestone.net
- CNC Milling
- CNC Turning
- CNC Router (60” x 144”)
- Manual Machining (Vertical, Horizontal)
- CNC Forming
- TIG/MIG Welding
- Waterjet Cutting
- Fabrication
- Prototyping
- Short and Long Runs
- Short Lead Times
We are able to process virtually any kind of material!
417 Co. Hwy 88 South
Rothsay, MN 56579
Phone:(218)867-2244 / Fax:(218)867-2280
E-mail: info@galaxy-enterprises.com
www.galaxy-enterprises.com
Visit
www.tsma.org
Industrial Machinery Movers
Would you like your company featured as
Company of the Month
in the Network News?
Contact the TSMA office at
800-654-5773 or
stephd@runestone.net
• Moving all types of
industrial equipment
• One piece or Entire Plant
• Fully Insured
• Air Ride Tractors, Trailers
• Presses ~ Brakes ~Shears
• CNC Machining Centers
Cell: 701-899-0543 • Ph: 701-642-9515
Wahpeton, ND
Phone: 800-654-5773
All it takes is about an hour or so of your time.
The interview can be done in the comfort of your
office or remotely over the telephone. Call Steph
to schedule your company as Company of the
Month.
midwest@runestone.net
www.tsma.org
m
Page 14
The
“Legislator
Connection”
November 2014
A program called “Legislator Connection” encourages
manufacturing members to use TSMA staff time to coordinate a visit
from a local senator or representative. We want to make it easy
for you to develop and nurture a relationship with your legislators.
Feedback suggests that plant tours are incredibly effective in
changing outdated perceptions and increasing awareness of the
high skill, high wage, high technology careers options the industry
has to offer. You get one-on-one time to express concerns, ask
questions, and express appreciation for a job well done.
Call or email the office today to utilize the Legislator Connection!
Senator Klobuchar Visits ITW Heartland
Minnesota
Home to
Innovative
Business and
Cool Products
Minnesota is known as the best place to
live, work and play. And it’s the 10th most
innovative state in the U.S., according to
2014 rankings by Bloomberg.
Minnesota is home to innovative manufacturing
companies, suppliers and products. And
cool products can be found in the Made in
Minnesota Directory, a database launched
by DEED in 2013 with thousands of diverse
products. Here’s a small sample:
Jaeckel Inc. New mechanical action pipe
organs are made at Jaeckel Inc. in Duluth.
Dan Jaeckel is considered one of the most
respected organ builders in the world. His
organs have been sold nationwide and
internationally.
Productive Alternatives Inc. Ice fishing
and other products are made by Productive
Alternatives Inc., a non-profit agency in
Fergus Falls. The products are made by
persons with disabilities. (Is a TSMA Member)
Clay Squared to Infinity. Handmade tile and
polymer clay art are produced by a husband
and wife team. Their art has been awarded
the Best of the Twin Cities - 2014 Midwest
Home - Best Assist for Period Purists and
Best of 2014 Customer Satisfaction on Houzz.
The Company, Clay Squared to Infinity, is in
Minneapolis.
Phone: 800-654-5773
midwest@runestone.net
Indian Island Winery. 100 percent
Minnesota grown wine production is the
focus of the Indian Island Winery, which is
family-owned and operated. And the quality
of the wine stands out. The winery recently
entered the 2014 Finger Lakes International
Wine competition and garnered silver and
bronze medals for several of their wines.
The winery also offers Happy Hour Yoga.
RapidPure Inc. A water filtration system
contained in a bottle is made by RapidPure
Inc., creating clean drinking water from
water that is unsafe. It is especially useful
for camping, traveling and emergencies.
All these companies can be found in the
Made in Minnesota Directory. The directory
makes it easy for companies to find – and
be found – by home state suppliers. Using
the directory helps manufacturers by saving
time, money on transportation costs and
other long-distance expenses. In addition,
manufacturers can meet their other sourcing
goals such as finding organic supplies
or purchasing from a specific county of
the state. The directory has nearly 900
manufacturers and suppliers listed and is
free to use and be listed.
Try it now and see what cool products you
can find!
For more information about the Made in
Minnesota Directory, contact Magda Olson
at 651-258-7183.
www.tsma.org
m
Page 15
ADOPT‐A‐SCHOOL GUIDE A Toolkit for Employers November 2014
Imagine a
partnership that
is a win-win
scenario
one that offers high
potential to show a
long term return on
your investment, a
future talent pool
for your industry,
and relationships
that pave the way
to give back to the
community.
TSMA
Website
Offers
FREE
Job Posting &
Classified Ad
Opportunities
The TSMA website has a page
for posting current job openings and posting classified
ads. Whether you are trying to
find an employee, looking for
a job, or trying to sell excess
equipment, start on the TSMA
website.
Visit: www.tsma.org
Get your copy of the “Adopt a School Guide: A Toolkit
for Employers” today. Available in hard copy from
the TSMA office or as an electronic link (PDF) at
www.tsma.org, the 16-page guide provides a wealth
of information about developing a relationship with
your local school.
Manufacturers - take the first step today:
get your hands on a copy of the all new
Adopt-A-School Guide!
Intelligent. Just Like You.
Whether you need a new system, repairs or
replacement parts, you can depend on flexible
solutions from American Time.
• Wireless System Clocks
• Wired System Clocks
• Power over Ethernet Clocks
• Wi-Fi Clocks – NEW!
• Battery Clocks
Personalized
with your logo! FREE
Call 800-328-8996 Click atsclock.com Fax 800-789-1882
TSMA14
Phone: 800-654-5773
midwest@runestone.net
www.tsma.org
m
Page 16
November 2014
TSMA Board of Directors
TSMA Standing Committees
President:
Evan Westra
West Tool & Design
Fergus Falls MN
218-739-4990
evan@westtoolff.com
Directors:
John Hansen
Bell State Bank & Trust
Fergus Falls
218-998-5600
jhansen@bellbanks.com
Tri-State members are invited to join a committee at any point
throughout the year. Contact the TSMA office or the committee
chair directly.
Vice President:
Tyler Wirth
Spartan Staffing
Alexandria MN
320-762-2001
twirth@spartanstaffing.com
Secretary/Treasurer:
Bob Grove
Cosmos Enterprises
Elbow Lake MN
218-685-4403
rdgrove@cosmosenterprises.com
Tom Mastellar
Blackhawk Industrial
St. Cloud MN
320-253-1020
Special Events Committee,
Chair: Tom Mastellar
John Hansen, Dan Kotek, Marilyne Morisette, Kathy Pesta,
Director Emeritus
Clint Grove, retired
Elbow Lake MN
218-685-5230
tom.mastellar@blackhawkid.com
Kevin Schutz
OECS, Inc.
Golden Valley MN
763-417-9599
kevin@oecscomply.com
Elroy Vesta
EJ Enterprises
Fergus Falls MN
218-739-9677
ejv@prtel.com
Membership Committee,
Chair: Mike Westergard
Elroy Vesta, Gerry Nelson
Workforce Committee,
Chair: Bob Grove
Evan Westra, Tyler Wirth
Government Relations Committee,
Chair: Kevin Schutz
Ed Bolas, Brent Cochran
TSMA Membership Dues
Mike Westergard
StoneL
Fergus Falls MN
218-739-5774
mwestergard@stonel.com
The Network News is edited and published at the Midwest
Manufacturers' Association office located at 117 Central Avenue North, PO Box 150, Elbow Lake, MN 56531. MMA/
TSMA phone 218-685-5356. Fax 218-685-5397. Toll-free
800-654-5773. Email: stephd@runestone.net. Office hours
are 8:30 AM to 5:00 PM Monday through Friday. However,
messages can be left on the answering machine at any time.
TSMA Core Values
The TSMA Membership Dues Structure is identical
for manufacturing and associate members. Dues are
based on number of employees.
No. of Employees
Annual Dues
1 person shop.............. $100
2to5.......................... $150
6 to 15........................ $200
16to30........................ $225
31to50........................ $275
51to100...................... $300
101to200...................... $350
201ormore.................... $375
Gov/Edu........................... $ 225
TSMA Mission Statement
Tri-State Manufacturers’ Association assists manufacturing
related companies by providing advocacy, education, networking, and programs to enhance the success of members and
their communities.
1. Tri-State Manufacturers' Association is committed to developing people and companies by providing opportunities for members to acquire industry relevant knowledge
or skills.
2. Integrity and trust are guiding principals for Tri-State
Manufacturers' Association.
3. Tri-State Manufacturers' Association believes that open,
accurate and timely communication is important to accomplishing its mission.
Phone: 800-654-5773
midwest@runestone.net
Membership Plaques are presented to current
members at TSMA networking events. Several
TSMA members collaborated with the Machine
Technology students at North Dakota State
College of Science to produce the plaques.
www.tsma.org