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2009-06-01 Eagan Business News• Gopher Resource Lead Recycling Services in Eagan produces and sells recycled lead, removing lead from the waste stream and saving energy and money on raw materials? • Ecolab’s Research, Development and Engineering division in Eagan develops innovative green and sustainable products? • The Unisys Data Center in Eagan features an energy- efficient green design? • Eagan’s Resource Plastics, Inc.,annually ships more than 18 million pounds of recycled plastic to injection-molding companies and plastic manufacturers? • Dakota Valley Recycling recognizes Eagan, Apple Valley and Burnsville businesses for environmentally friendly practices through the ARROW (Awards for Reduction and Recycling of Waste) program (dakotavalleyrecycling.org/ ARROW.html)? JOURNAL OF THE EAGAN BUSINESS COMMUNITY Second Quarter 2009 Vol. 8 No. 2 Business News Visit www.cityofeagan.com/EBN for E-Biz, Eagan Business News’ new online publication. Eagan seasons and high-school proms have kept business brisk. “People understand you don’t have to buy new,” says co-owner Donna Steinhouse.“If it’s a high-quality article of clothing, tailoring is worth the money.” Just to the north at Lehman’s Garage on Seneca Road, “sales are definitely up,” says Mike Amon,manager. “People are willing to pay $500 in repairs to keep their cars on the road a little longer rather than buy new.” The public’s view of value is changing, says Dr. Mirela Miresan,program chair for doctorate in business administration at Argosy University in Eagan. “But,” she asks, “is this really frugality or is it getting back to common sense?” For example, she says, there’s a con- cept called functional value versus economic value. Not long ago, someone might have tossed out a shirt that had lost a button. “You have your button in your hand, but you During the mega biannual consignment sale Just Between Friends, held at the Eagan Community Center last month, the number of consigners since last spring had jumped by 20 percent, and the number of shoppers had increased by 25 percent, hitting 800. “People are changing their minds about buying everything brand new, and families are looking to stretch their budgets,” says Kris Bishop,co-owner of the Eagan fran- chise since 2007. “Consigning gives them a way to make money on things they have and turn it around to buy something gently used for their homes and their kids, to add money to their budget, or to pay for a summer vacation so it doesn’t come out of a regular paycheck.” Bishop’s observations bear out a changing consumer value: Increasingly, frugality is driving business success among consignment services, shoe repair shops, tailors, mechanics, and more. Dave Diioia,longtime owner of Mike’s Shoe Repair at Silver Bell Center, says that while business isn’t booming, it’s stronger than last year. “In these economic times, people are fixing shoes, leather jackets and purses,” he says. “We can make items look brand new at a reasonable price. People are definitely more conscious of cost, and we’re keeping our prices down.” Next door, at Cedarvale Tailors, the changing Did you know…? ) 1 page 2 The growing business of green inside this issuev page 3 How green is your commute? continued on page 4 Consumer frugality or common sense? Retail rules changing page 1 Retail rules changing Sisters Kris Bishop (left) and Katy Saunders started the first two Minnesota franchises of Just Between Friends, in Eagan and Maple Grove. process is faster,” says Jon Wikstrom, CEO.While other states jumped on the Cool Clean bandwagon—in particular California where perc is banned—Minnesota has been slow on the uptake: Mulberrys Garment Care, which opened this spring in St. Louis Park, is the Twin Cities’ first dry cleaner to use Cool Clean technology. Yet carbon dioxide—recycled from other industries, including fertilizer manufacturers, distilleries, and power plants—is so safe, it’s not even regulated: It offers zero health hazards, zero flammability and zero reactivi- ty. In addition, using recycled carbon dioxide eliminates the production of fossil fuel-based solvents and the global-warming waste products their manufacture would produce. Today, the company, which retains 17 employees in Eagan, holds more than 80 patents and has developed other carbon- dioxide applications. In every case, the need for solvents, lubricants, rinse waters, filters and coolants is eliminated. “The economics are better, the quality of the cleaning is better, and the cycle time is faster,” says Wikstrom. “Customers really get the environmental aspect for free.” TAKING CARE OF THE EARTH PROVIDES ANOTHER INTEGRAL BENEFIT: positive morale among employees. “All of our employees feel really good about offering an ecologically correct service that creates a cleaner, safer environ- ment and saves our customers money,” says Jeffrey Kiesel, CEO of Restaurant Technologies, Inc.In fact, he says, some 2 Eagan Business NEWS Lockheed Martin’s Eagan offices received a coveted Energy Star award last year. Says Gordy Sifferath, facilities engineer: “That’s quite an achievement for a 40-year-old facility.” Indeed. Only 3,200 U.S. commercial buildings have achieved this distinction. Upgraded windows and vari- able-speed drive motors on HVAC systems were just two improvements that helped boost the building’s efficiency. Soon, Lockheed Martin will extend its green commitment by completing a parking lot redesign, the first phase of Barr Engineering’s eco-friendly master plan for the company’s 52-acre campus. By working in conjunction with the City of Eagan and Dakota County to meet requirements, plus short- and long-term needs, Lockheed Martin will replace 17,000 square feet of parking lot, install rain gardens and stands of trees, and plant natural fencing to reduce blowing and drifting snow. Most importantly, the new parking lot will cut stormwater runoff by 93 percent; in addition, thanks to filtration, the quality of the remaining stormwater runoff will be much improved. Overall, the multiyear master plan reduces the company’s environmental footprint, incorporates wildlife habitat, and creates walking paths and destination areas with landscaping. “Lockheed Martin cares about each community where our businesses are located,” says Tierney Helmers, Communications and Public Affairs. “It’s the right thing to do.” ■ JOURNAL OF THE EAGAN BUSINESS COMMUNITY GREEN. IT’S THE WATCHWORD THESE DAYS FOR A GROWING NUMBER OF INDUSTRIES AND BUSINESSES AROUND THE WORLD. That’s true in Eagan too. In fact, many companies headquartered here strive to limit their carbon footprints, greenify their operations or base their entire business plans on offering clients earth- friendly, cost-effective solutions. “It’s a sea change in business that started in the 1970s,” says Tom Trutna, president of Big Ink Display Graphics, based in Eagan. For all of the businesses profiled here— perhaps not surprisingly—there’s a green payoff, not only for the earth but for their bottom lines. “Someday, there won’t be stories like this,” Trutna says. “This will be the standard way of doing business.” Until then, take a look at a few of these innovators. Cool Clean Technologies SPUN OUT OF ANOTHER COMPANY BACK IN 2001, with a brand-new, eco-friendly dry cleaning process that uses recycled carbon dioxide. The company’s biggest challenge? Convincing potential, often change-resistant dry cleaners to switch from using the chemical perc—a likely human carcinogen, according to the EPA—to carbon dioxide. “Now that green is in, the education The growing business of green Tom Trutna, president of Big Ink Display Graphics Parking lot gets eco-friendly redesign Second Quarter 2009 • The City of Eagan—among four Dakota County cities eligible for stimulus money—is contemplating projects, worth up to $657,000, that make buildings and facilities more energy efficient. • Pioneer Plastics, Inc., a global custom injection molding company, has been named one of the top 500 minority-owned business in the United States by DiversityBusiness.com in its ninth annual listing. Minou Hussain serves as chairman and CEO of Pioneer Plastics. • Joel Hazzard, president and CEO of Ergotron, Inc.,in Eagan was named a finalist for the 2009 Ernst & Young Entrepreneur of the Year Award. Winners will be announced in November. • Eagan-based DeCare Dental was acquired by health insurance giant WellPoint for $100 million, which will be placed in a nonprofit trust fund to support Minnesota dental care. DeCare will retain its Eagan headquarters and management team; Delta Dental of Minnesota, one of 10 programs run by DeCare, was not included in the acquisition. • Due to its growing legal busi- ness, Thomsen Reuters plans to add 300 employees to its Eagan headquarters this year. ■ Eagan Business NEWS 3 2009 Second QuarterJOURNAL OF THE EAGAN BUSINESS COMMUNITY Morning and afternoon commuters do double takes when Bob Clark rides by on his unicycle— particularly during the winter. “I get honks and waves once or twice a day,” says the Eagan resident and Cray, Inc., computer programmer. Clark, who had long been covering his 5-mile commute by bike, switched to unicycle in 2006. While good health is his No. 1 reason for taking his unicycle to the streets, the environment and the great outdoors are important motivators as well, he says. If you’d like to consider cycling to work—Eagan Briefly How green is your commute? employees seek positions at RTI because of the company’s environmental approach. Named consistently among the top 50 fastest-growing private Minnesota companies, 10-year-old RTI has experienced steady growth, thanks to its patent-protected total oil-management solution. Customer restaurants, of which there are 15,000, utilize an automated, closed-loop system that combines a high-efficiency filtration system, a fresh oil tank and a waste oil tank. Rather than the formerly costly, time-consuming and dangerous process of yesterday, an RTI customer simply flips a switch to add, filter or dispose of frying oil, even when hot. RTI’s solution also reduces the consumption of raw materials used to make cardboard and plastic containers, removes these containers from the waste stream, and eliminates oil spills—both inside and outside restaurants. In addition, RTI recycles customers’ waste oil for biodiesel fuels and other eco-friendly uses. A “green calculator,” featured on RTI’s website, invites customers to discover both how much trash they’re eliminating and how much waste oil they’re recycling. Customers are motivated for a variety of reasons, says Kiesel, including safety, price and the “broader ecologic impact.” WHEN Tom Trutna, president of Big Ink Display Graphics,ATTENDED AN INDUSTRY EVENT A COUPLE OF YEARS AGO, he learned about a company that had gone so green its dumpsters had been eliminated. Says Trutna, “I thought, ‘Man, if they can do it there, we can do it here.’” So began the 22-year-old company’s change in culture from one of compliance to “one of innovation.” The company, which produces display graphics for trade shows, corporate events and retail environments, developed an inter- departmental Green Team, which dreamed up “fast and furious changes.” Today, the 20-employee company recycles tons of its own paper plus plastic scrap; invites customers to participate in its Zero-Waste Recycling Program; offers eco-friendly materials and inks; and proposes myriad cost-saving, eco-friendly ideas to clients. Last summer, an intern suggested getting the word out about Big Ink’s commitment to the environment by wrapping his Prius with Big Ink’s green theme: Little Things Make a Big Difference. The team liked the idea so much—vehicle wrapping is one of the company’s specialties—it expanded the concept to four Prius cars, each wrapped in a whimsical image of caterpillars, birds, butterflies or dragonflies, plus the recognizable reduce-reuse-recycle logo. The promotion garnered lots of press attention and drove four times the company’s normal website traffic. “While it’s hard to measure the return on investment of our efforts,” says Trutna, “we experienced our best year ever in 2008. Our green efforts certainly seem to differentiate us and have given us a platform in the industry.” ■ boasts more than 130 miles of trails—check out the list of resources below. • For tips, news, and a gas-savings calculator, visit commutebybike.com. • Staff at Erik’s Bike Shop (eriksbikeshop.com), newly opened in Eagan, offer biking advice and products, plus classes such as City Cycling Skills (St. Louis Park location). • Visit mplsbikelove.com for product reviews, route planning, mechanical questions and more. • For ingenious ways your company can motivate employees to cycle to work, check out qbp.com/commuting.html, offered by Quality Bicycle Products, a Minnesota company. ■ g EBN is printed on Cougar Opaque which contains a minimum of 10% post consumer fiber. Eagan aren’t willing to sew it on.” Today, that person is much more likely to sew on the button. “We were overconsuming things that were still good,” she says. Dr. Karen Gulliver,MBA program chair at Argosy, agrees and points to another growing movement: “Labor is returning to the home. Consumers are cleaning their own houses. They’re doing their own car repairs. They’re preserving at home: canning, drying, dehydrating. Sewing too is coming back.” Among the businesses benefiting: grocery stores, seed companies, gardening stores, and fabric shops. “We’ve been through recessions before,” says Gulliver. “What is it that makes this one different? Across the entire population, Americans watched their wealth disappear and the value of their homes go down. That change in wealth, along with the economic slowdown and job losses, has made this recession different.” Take a look at federal figures: For twenty years, through 1990, consumer spending made up approximately two-thirds of all economic activity. Recently, however, that spending had jumped to 70 percent of the nation's gross domestic product. 4 Eagan Business NEWS Business News vpage 1 Retail rules changing )page 2 The growing business of green 1page 3 How green is your commute? inside this issue 3850 Pilot Knob Road ●Eagan, MN 55122 Standard U.S. Postage PAID St. Paul, MN Permit #7732 Conversely, while Americans had saved 7 to 10 percent not long ago, by 2007, they were saving less than 1 percent. Before the economic downturn, Americans paid others for services, opting to enjoy greater leisure time. “Today,” Gulliver says, “they would rather have the cash. In addition, they’re saving their money wherever possible. They’re also buying down debt. They want to put their lives in good financial shape should they lose their jobs.” Both professors predict that children growing up today will have a very different set of values regarding consumption than their parents—or at least the younger versions of their parents. “This change is profound,” Gulliver says. “The last time people witnessed a massive meltdown in wealth was the Great Depression, and the decision-making criteria those children experienced stayed with them throughout their lives.” There is a silver lining, however. Great innovation will help many businesses thrive, says Gulliver, “and consumers will come out of this with new self-sufficiency skills, new values and a new way of looking at consumption.” ■ Retail rules continued from page 1 Editor Karin B. Miller, Working Words, Inc. Designer Brent Kastler, Kastler Art & Design Like our new look? Send comments and story ideas to EBN@cityofeagan.com. “Good referrals are still very good for business. Now more than ever, you are not willing to experiment. You will ask your friends where they bought their things and you will go there.” — Dr. Mirela Miresan, Argosy University