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ND Cities Growing

Associated Press, June 30, 2009

North Dakota's major cities are growing, as are the communties around them.

New census figures show Fargo with 93,531 people last year, up from 92,513 in 2007. Bismarck followed with 60,389 people, up from 59,419. Grand Forks reported 51,313 people in 2008 and Minot reported 35,419, both up slightly from the previous year.

State Data Center Director Richard Rathge says the big trend is the suburban growth. He says the community of Lincoln, outside Bismarck went from about 1,700 people in 2000 to about 2,700 people last year and Harwood, near Fargo, has added 100 people since 2000.

In the western part of the state, Dickinson's 2008 population is estimated at 16,035, up from 15,894 in 2007. Willistion is estimated at 12,641, up from 12, 418.

Rathge says the full impact of energy development has not yet shown. He says that by 2010, "we'll really see some growth in most of the western cities."

Postcard from Bismarck

By Barbara Kiviat, an excerpts from Time Magazine, July 6, 2009

Want to make jokes about North Dakota? Sure, the state's got three times as many cattle as people, and a typical day in January is a balmy 20°F. But the folks who live here, unlike those in many other parts of the country, have jobs. And not only haven't they felt the bite of the housing-market collapse, but their houses have actually inched up in value. The recession, by and large, never made it to places like Bismarck (pop. 60,000). While the local economy is hardly bulletproof, for every bit of bad news — the Bobcat plant's summer shutdowns, say — there's more than one bit of good. How about a metrowide unemployment rate that's been dropping since February and at 3.7% is now less than half the national average?

Have lunch on the back patio of Fiesta Villa on Main Avenue and watch the railroad cars packed with coal go by — and by and by — and you'll start to understand why. Last year was a great one for energy and agriculture: corn, crude oil, coal and wheat are major state exports. The boom helped push energy outfit MDU Resources onto the FORTUNE 500 (the first North Dakota firm to make the list) and the state budget to a $1.2 billion surplus. State workers around the country are being told to sit at home without pay to trim costs; in North Dakota they're getting 5% raises.

Word has spread. The state's employment agency now fields calls from people in hard-hit cities like Phoenix and Miami who want to know how to get a job in North Dakota. Last winter, facing bleak work prospects in upstate New York, William Phillips boarded a Greyhound bus and three days later landed in Bismarck. He was shocked, he says, when the same day he applied for a job at Fireside Office Solutions, an IT-management firm, he got called in for an interview. With the city's dearth of tech-oriented workers, the company had been looking to fill the position for six weeks. He started at 8 o'clock the next morning. Says Phillips: "There's definitely not a lack of work."

Buying, though, is different from conspicuous consumption. At the string of big-box retailers north of town, a few miles before city streets fall away and the horizon takes over, shoppers leaving Kohl's and Best Buy and Shoe Carnival are carrying bags — but not huge ones. In plenty of other places, that might be a sign of cutting back. In Bismarck, though, moderation is business as usual. Yes, North Dakotans like their things; it's rare to drive down a residential block and not see at least a few boats or RVs sitting in driveways. But splurging never really took hold here as it did in much of the rest of the country. Mortgage data show that the sorts of loans that landed so many home buyers in trouble elsewhere were written at a much slower pace here (in 2004, when 18% of borrowers in the U.S. were taking out subprime loans, only 6% of those in North Dakota were). "It's no secret that we're a little more conservative than the rest of the country," says John Jessen, president of Bismarck's BlackRidge Bank. "We just haven't taken a large jump outside of the box." Funny how far that can get you.

Where are the Jobs?

North Dakota

North Dakota companies are recruiting workers from around the nation. The state has escaped the economic meltdown plaguing the rest of the country.

By Tami Luhby, CNNMoney.com senior writer, June 19, 2009

In May, the state tied for the lowest unemployment rate in the nation -- a mere 4.4% -- and added 3,000 jobs over the past month. Only Nebraska had as low a rate. The national unemployment rate rose to a 26-year high of 9.4% in May.

Labor experts attribute the state's good fortune to its diverse range of industries. All sectors are seeing growth, even the oil industry, which had contracted quite a bit after last year's price spike. Mining, construction and agriculture have all experienced double-digit employment growth since 2000. Health care and transportation are also key industries.

"We've quietly been doing well," said Michael Ziesch, research analyst at Job Service North Dakota, the state's employment services department. "We don't have the highs and we don't have the lows. It's just the conservative nature of North Dakota." State officials haven't kept their relative prosperity a secret. The state's Commerce Department has promoted job opportunities -- as well as quality of life -- in Colorado, Michigan and Minnesota through a marketing campaign called "Experience North Dakota."

There are 9,000 positions posted on Job Service North Dakota. Among those hiring is Kadrmas, Lee & Jackson, an engineering consulting firm based in Bismarck. The company has plenty of work, particularly in its telecom and energy divisions. It has already added 40 full-time and seasonal employees and expects to bring on more before the year is out.

The Peace Garden State is actually benefiting from the national recession. Kadrmas now receives resumes from around the country when it posts an opening, even if it's in a rural area. For instance, a civil engineering job in a community with less than 25,000 residents garnered 40 applicants.

"In the past, we might have had a half-dozen people apply," said Mike Schneider, the company's main recruiter. Strong economy helps. North Dakota had the nation's fastest economic growth rate in 2008, according to the U.S. Department of Commerce. The largest contributors to the 7.3% growth rate were agriculture, forestry, hunting and fishing. Its economy grew twice as fast as all other states, except Wyoming.

Unlike nearly all of its peers, the state government's fiscal health is strong as well. While most states are battling huge deficits, North Dakota is enjoying a surplus. In fact, it had so much money that officials approved a $400 million package of property and income tax cuts in April.

"A lot of our good fortune is related to North Dakota being a healthy state," said company VP Molly Barnes, the great-granddaughter of the company's founder, John L. McCormick Sr. "We haven't grown a whole lot, but we haven't shrunk either."

State labor officials don't think things will get too much worse.

"At worst, I'd project a soft landing," Ziesch said

In ND, The Good Times

Are Still Rolling

State Has a Sizable Budget Surplus and the Lowest Unemployment in Nation as Strong Commodity Prices Keep Cash Flowing

By Amy Merrick, Wall Street Journal June 5th, 2009

California has the Golden Gate Bridge, New York has the Empire State Building, Illinois has the Magnificent Mile. And North Dakota? It has a hefty budget surplus those states would envy. While many states scrounge for ways to repair budget deficits, North Dakota is cutting taxes and fretting over how much of its budget surplus to spend or save.

"We all ought to move to North Dakota," joked Raymond C. Scheppach, executive director of the National Governors Association. The group said in a report Thursday that North Dakota and Wyoming remained the only two relative bright spots in a nation mired in recession.

Both resource-rich states expect revenue collections to come in above their budgeted forecasts, while 38 states anticipate revenue shortfalls, according to the report on state finances, which was co-written by the National Association of State Budget Officers. Meanwhile, North Dakota expects to have a surplus of about $700 million in June 2011, the end of its next budget cycle.

In the legislative session ended last month, North Dakota lawmakers shifted more of the responsibility for funding education to the state and required local governments to reduce property taxes proportionately, saving taxpayers $295 million. Individuals and businesses also received about $100 million in income-tax cuts. At the same time, lawmakers increased spending on K-12 and college education, health care, infrastructure and other programs.

The remote Plains state, with a population of just over 640,000, has benefited from spikes in oil and crop prices. While the rest of the U.S. economy was tumbling last year, energy and agricultural commodities stayed frothy before beginning a long slide in the summer.

Lately, they have begun climbing again. Oil prices dropped below $40 a barrel in February as the global recession strengthened, but they have since jumped to nearly $70. Crop prices are off last year's peaks, but are still well above long-term averages. High prices help North Dakota in myriad ways. State revenues rise thanks to taxes on oil production and extraction. Energy-industry workers and farmers pay more in income taxes and spend more, boosting sales-tax receipts. Chiefly because of the commodities boom, North Dakota had the fastest-growing economy in the nation last year, as the state's gross domestic product increased 7.3%, the Commerce Department said Tuesday.

The state also missed much of the bubble in housing prices and dubious lending practices that bedeviled much of the nation, so it isn't struggling as much with foreclosures.

Republican Gov. John Hoeven likes to credit his administration's efforts to diversify the economy, including fostering "value-added" agriculture, such as food-processing plants, and alternative-energy production, from wind to ethanol and other biofuels. "Jobs and opportunities change, and we have to be developing these new industry areas," he said.

Spinning wind turbines have become a more common sight on the state's rolling plains. North Dakota has 865 megawatts of wind power completed or under development, up from less than two megawatts four years ago. State and local officials have been traveling to Ohio and Michigan to recruit laid-off workers. North Dakota's seasonally adjusted unemployment rate -- 4.0% in April -- is the lowest in the U.S.

Still, the state's economic strength posed difficult questions in the latest legislative session: Spend more now to help vulnerable groups like children and the elderly? Or save more as a hedge against future busts? Some lawmakers say their job actually becomes tougher in boom times. "When the bank account is flush, people just are very skeptical when we say, 'We don't have enough money to do this,' " said state Sen. Ray Holmberg, a Republican from Grand Forks.

Legislators say they want to avoid the roller coaster of spending sprees followed by cutbacks. The state isn't immune to recession ripple effects: Heavy-equipment maker Bobcat Co., the state's biggest manufacturer, recently laid off nearly 250 workers at its plants in the state. Microsoft Corp. and American Express Co. also have announced layoffs or closures.

Some argue that North Dakota could spend more of its surplus today without jeopardizing the future. State Sen. Tracy Potter, a Democrat from Bismarck, criticized the Republican-dominated legislature for failing to substantially expand children's health insurance during its recent session. "Things like that are not just poor choices, but really dumb," he said.

The state plans to spend $8.85 billion over its next two-year budget cycle, almost 37% above its current $6.48 billion budget. "I think our expenditures cannot continue to go up at the same rate that they went up this year," said Pam Sharp, the state's budget director. Much of the spending is targeted at one-time outlays, she said.

The state accepted about $600 million in federal stimulus money, a portion of which will be used to repair roads damaged in massive spring floods. Gov. Hoeven said he worries about the federal deficit. "I'm also concerned about some of the states, like California," he said. "At what point does their deficit problem become our collective problem?"

ND Economy growth

best in US

By Grand Forks Herald June 3, 2009

A new government report says North Dakota had the fastest economic growth of any state last year, led by agriculture and oil. The U.S. Bureau of Economic Analysis reported Tuesday that North Dakota’ s gross domestic product grew from $22.6 billion in 2007 to $24.2 billion last year — a 7.3 percent increase. It said North Dakota’s growth expanded twice as fast as every state but Wyoming.

Real gross domestic product is defined as goods and services produced by labor and property. The government report said the biggest contributor to growth in North Dakota was the agriculture, forestry, fishing and hunting category, followed by mining and oil and gas extraction...

...The federal report says economic growth slowed in 38 states and declined in a dozen states, with Alaska’s 2 percent slide the worst in the U.S. Wyoming was second in real gross domestic product at 4.4 percent. South Dakota was third with 3.5 percent. The nation’s growth rate was 0.7 percent.

An American Heartland Renaissance

By Forbes.com May 12, 2009

Excerpt from article by Rich Karlgaard

... Heartland towns like Crookston and nearby population hub Grand Forks are relatively cheap places in which to live. That, even in this downturn, in not the case in Silicon Valley, Seattle or Shanghai. An entrepreneur can get started on little capital in Crookston or Grand Forks and keep his/her costs low if the thing takes off.

Say the city skeptics: isn't one hopelessly out of the loop in boonyack towns like Grand Forks? Hold on, slick! The times are a-changin'.

Heartland towns are way more connected than they used to be. Grand Forks, for example, is home to the University of North Dakota, which has a Center for Innovation-ranked eighth best undergraduate program in the country. This morning at the Grand Forks Hilton Garden Court, which is connected by closed walkways to UND's Center for Innovation, I heard Irish accents and Norwegian accents, and I saw two Southeast Asians working on a presentation. A American urban coast dweller looks at Grand Forks and sees sticks. An Indian or Irishman sees opportunity. It all happens virtually too. Broadband is the great lever between the sticks and cities.

Risk capital is now figuring out how to invest in heartland start-ups, and thus entrepreneurs feel they have license to try ventures that could work -- or might fail.

...The last 90 years have been tough on America's heartland and rural communities. But that could change with new networks of knowledge, innovation and capital meeting the older values of work ethic, trust and modestly priced living standards. We could see a renaissance in heartland entrepreneurship.

EDC Announces New President

By Grand Forks Herald May 12, 2009

After a two-month absence, the head of the Grand Forks Region Economic Development Corp. is returning to his former job May 18. Klaus Thiessen served as president and CEO of the EDC for about five years before resigning March 13. He took a job with Pricewaterhouse Coopers in Winnipeg.

“I realized shortly after I left that I missed the quality of life that Grand Forks had to offer, in addition to a great work environment,” he said in a press release.

EDC Chairman Karl Bollingberg said he was first notified a couple weeks ago that Thiessen was thinking about coming back to his old job. It wasn’t tough for the board to agree with his return, he said. “We were very excited when we heard he may have an interest in returning,” he said. “We’re thrilled of course to have him back.”

The EDC had already begun some work to find a replacement, including forming a search committee. Three search firms were being interviewed, and the committee was close to making a decision on which firm to choose. But officials heard Thiessen was asking about coming back. “We held off on the rest of that activity and focused our attention on seeing if we could make that happen,” Bollingberg said.

He said it was somewhat of a relief — he was involved years ago when the EDC first brought Thiessen to Grand Forks, and he said it was going to be almost impossible to find as good of a replacement. “I think his leadership style is very strong. He’s a great match for what I think we need in that position,” he said. “That’s what would have been very, very difficult in trying to find.”

The EDC is a private-public entity funded by the city, the county and regional businesses. It aims to help businesses that are seeking to expand in the region or open a new branch here. Bollingberg said the EDC’s focus right now is mostly dealing with the effects of the current economy. They try to get in touch with local businesses and “put together a compelling reason” why they should expand. He said they also continue to work with UND toward economic development and the creation of new jobs.

Grand Forks in top 20% of Best Small Cities for Job Growth

By NewGeography.com April 13, 2009

New Geography just released its Best Cities for Job Growth rankings in conjunction with Forbes. In the Small City category, Grand Forks ranked #70 out of 336 cities, up 31 places from last year!

This year's measurments emphasize the robustness of a region's growth and allows the rankings to include all of the metropolitan statistical areas for which the Bureau of Labor Statistics reports monthly employment data.

The following are four areas of measurement: 1) recent growth trend: the current and prior year's employment growth rates, with the current year emphasized. 2) mid-term growth: the average annual 2003-2008 growth rate 3) long-term trend: the sum of the 2003-2008 and 1998-2002 employment growth rates multiplied by the ratio of the 1998-2002 growth rate over the 2003-2008 growth rate. 4) current year growth.

Nearby small cities that also made the list: Fargo ND #15, Bismarck ND #18, Sioux Falls SD #26,  Rapid City SD #59, & Duluth MN #173.

To find more of the Best Cities visit www.newgeography.com.

UND: Research creates $187 million in impact

By Grand Forks Herald January 31, 2009

The economic impact of UND research programs was up again in fiscal year 2008, according to a report the university released this month. An estimated $187 million in economic activities and 1,578 jobs were created throughout five states in the region. That's a 7.4 percent increase in economic activities through a 4.3 percent decrease in job creation compared with fiscal year 2007.

About three quarters of the 2008 impact was in Grand Forks County, which benefitted from $137.3 million and 1,259 jobs. The economic impact is significant because funding for university research usually comes from outside the region, whether in ther form of federal grants or contracts with private companies. In other words, new money is coming into the local economy, not just recirculating.

UND grad enrollment breaks record

By Grand Forks Herald January 31, 2009

Graduate student enrollmment at UND is set to break another record, an unusual occurence in spring semester when enrollment usually drops. The official count is not yet in, but Graduate School Dean Joey Benoit is estimating that enrollment is close to 2,200. That's about 100 students more than called for in the university's strategic goal for this year.

UND seeks to expand as a research university, so it makes sense to get more graduate students, spokesman Peter Johnson said. Benoit said he thinks word is getting out about the quality and accessibility of UND's graduate programs. The University also is being aggressive in telling prospective students what it has to offer.

Altru Awarded

By Grand Forks Herald January 31, 2009

Altru Health System, Grand Forks, was awarded the 2009 SDI Top 100 Integrated Healthcare Network Award. Specific factors considered for the award include an assessment on hospital use, financial stability, physician participation, services and access, outpatient use, contract capabilities, integration and integrated technology.

SDI is a health care analytics firm that tracks the develoment of integrated health care networks.

SEI to reduce workforce; but not in ND

By Grand Forks Herald January 8, 2009

Despite the dire-sounding email sent out by its president to employees about "substantially reducing" its work force, SEI actually is planning to hire more peole in North Dakota. "We love the state of North Dakota and love the people so we are looking at ways we can expand," says Kim Williams, SEI's cheif operating officer. "We are hiring a number of people in the next six weeks and hope to add 120 employees in North Dakota over the next six months."

LM Glasfiber executive praises Grand Forks Plant

By Associated Press January 7, 2009

An executive of windmill blade maker LM Glasfiber says "tremendous things" are expected from the company's Grand Forks plant and no layoffs are planned there, despite cuts in Arkansas.

Fox priased the Grand Forks plant, which employes more than 800 people, calling it one of the company's "best performing plants in the world."

"We wouldn't have enough time to say enough good things about Grand Forks," he says. "They made tremendous progress last year and we're expecting tremendous things in 2009." Denmark-based LM Glasfiber is owned by the London-based private investor group Doughty Hanson & Co.

Research firm reveals Grand Forks to be among top house markets in 2009

By Grand Forks Herald Januar 21, 2009

A national online real estate research firm predicts Grand Forks will be among the top 25 US housing markets in 2009. Housing Predictor forecasts Grand Forks home values will appreciate 1.2 percent earning the city the 17th spot, the lowest of four North Dakota cities on the list.

Such increases are modest, but they look good compared with the more that 36 states where the company projects double digit deflation in home values. Cindy Kouba, president of the Grand Forks Board of Realtors says "Grand Forks is an excellent example of a strong, solid market."

Taking Care of Business

By Grand Forks Herald July 15, 2008

Grand Forks ranked in the upper third of an annual report measuing the growth of local economies. The Grand Forks metropolitan statistical area, which includes all of Grand Forks and Polk counties, ranked 101 out of the nation's 335 largest metro areas in Inc. magazine's annual listing of the Best Cities for Doing Business.

A year after jumping 79 spots from 118th in 2006 to 39th in 2007, Grand Forks fell 62 spots in the 2008 ranking. Grand forks ranked 56th among 173 smaller cities with population bases of 150,000 or less, after ranking 25th among small cities in 2007 and 78th in 2006.

"Last year we had pretty remarkable growth (in the rankings)," said Delore Zimmerman, whose New-Geography.com Web site released the rankings Monday in conjunction with Inc. Zimmerman is also president of Grand Forks based Praxix Strategy Group.  "This year tapered off a bit. It's pretty hard to sustain that grwth multiple years in a row.

Unlike many citieis in the rankings, the Grand Forks metro area has a low unemployment rate of about 3 percent with many open jobs, limiting how fast employment can grow given slow population growth. "Job growth is still steady in Grand Forks," said Klaus Thiessen, president and CEO of Grand Forks Region Economic Development Corporation. "We are just limited with the number of poeple available. Some local companies in the manufacturing sector are looking at exapanding. That's a positive sign."

The Grand Forks metro area added 1,662 jobs between May 2007 and May 2008, to bring the overall employment in Grand Forks and Polk counties to 55,749. While the US manufacturing sector has struggled in recent years, Grand Forks and Fargo have experienced a quiet industrial boom, increasing their manufacturing jobs by more that 14 percent since 2000.

"These are the best times we've seen in many decades," North Dakota State Economist Larry Leistritz says. "And it is being felt broadly across the entire society."

North Dakota Sees Growing Numbers

By Associated Press December 2007

North Dakota got exactly what it wanted for Christmas this year; news of an increasing population. North Dakota’s population grew 0.35 percent – or 2,255 people – from July 1,2006, to July 1, 2007, according to a report released today by the U.S. Census Bureau.

The latest statewide increase brings North Dakota’s estimate population to 639,715, the highest since the 631,236 estimate in July 2000. North Dakota’s neighbor to the East also continues its growth trend.

Number of Young Workers Growing in North Dakota

By Associated Press October 2007

The number of workers under age 35 has grown more than 2,000 per year from 2004 through 2006 in North Dakota, according to recent statistics from the Labor Market Information center at Job Service North Dakota.

“This is good news reflecting North Dakota’s strong economic growth over the past few years,” said Rod Backman, Chairman of the North Dakota Census Committee. “We are seeing more young people attracted to and staying in North Dakota for good jobs.”

GF enjoyed robust job growth

By Klaus Thiessen, GF Region EDC (August 2007)

GRAND FORKS – The Grand Forks Region Economic Development Corporation issued a press release last week regarding Inc. magazine’s recent report on U.S. metropolitan statistical areas in terms of best places for businesses.

According to the magazine’s annual survey, Grand Forks ranks second in the Midwest as the best city for businesses and is ranked in the top 10 percent of all MSAs in the U.S.

The primary criteria used in determining the rankings was job growth  over the past ten years, with greater weight given to job growth in the most recent two years

North Dakota moves up in Forbes rankings

By Associated Press August 2007

In a report released July 11 on Forbes.com, it was revealed that North Dakota had moved into the number nine spot of the publication's annual 'Best States For Business' analysis based on many factors including cost of labor, energy, taxes, migration, projected population growth, regulatory and tort climate, incentives, transportation, and bond ratings.
In 2006 the state was in 13th place in the educational attainment, net new survey, which placed South Dakota at 25 (down from 17 last year) and moved Minnesota to 10th place (up from 14 in 2006).

North Dakota Students score above average on ACT

By Associated Press August 2008

North Dakota high school students continue to show they are better prepared for college then their counterparts nationwide.

The ACT college entrance exam for the high school class of 2008 shows 24% of the ND test- takers met the college-readiness benchmark score in English, math ,reading & science compared with 22% nationwide.

North Dakota's test-taker participation rate of 81% remains among the top six states in the country.