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SEPTEMBER 17, 2021 Helping businesses do business better. Price: $1.75 FUTURE OF TRANSIT DART considers alternative transit models as it looks to better meet community’s changing needs
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CONTACT US (515) 288-3336 | circulation@bpcdm.com FOLLOW US www.businessrecord.com www.facebook.com/DMBusinessRecord @BusinessRecord CONTENTS VOLUME 39 // NUMBER 38 // SEPTEMBER 17, 2021 FEATURE STORY LEADERSHIP PUBLISHER & EXECUTIVE EDITOR Chris Conetzkey 15 (515) 661-6081 | chrisconetzkey@bpcdm.com ANSWERS EDITORIAL TO DRIVER EDITOR Emily Barske SHORTAGES (515) 661-6085 | emilybarske@bpcdm.com FOUND IN SENIOR STAFF WRITERS Kathy A. Bolten EXPANDED (515) 661-6083 | kathybolten@bpcdm.com RECRUITMENT, Beats: Real Estate & Development Law & Government REGULATORY Michael Crumb CHANGE (515) 661-6086 | michaelcrumb@bpcdm.com Beats: Economic Development | Transportation | Trucking companies Energy & Environment | Culture | Sales & Marketing focus on better Joe Gardyasz (515) 661-6084 | joegardyasz@bpcdm.com work-life balance as Beats: Insurance & Investments | Health & Wellness they struggle with Manufacturing & Logistics | HR & Education Banking & Finance driver shortage OPERATIONS MANAGER John Retzlaff (515) 661-6082 | johnretzlaff@bpcdm.com Calendar | On the Moves NOTEBOOK FEATURES COLUMNISTS FEARLESS EDITOR Emily Blobaum emilyblobaum@bpcdm.com COPY EDITOR 4 6 22 Kurt Helland 5 TAKEAWAYS FROM INNOVATION Q&A ON LEADERSHIP ART & PRODUCTION OUR POWER BREAKFAST TODD KRONE THE SUCCESS OF IOWA’S DIRECTOR OF CREATIVE OPERATIONS Lauren Burt ON THE FUTURE OF PowerPollen CEO ECONOMY TIED TO THE CREATIVE ASSOCIATES CORPORATE CULTURE LATINO COMMUNITY 10 Patrick Herteen Kate Meyer By Suzanna de Baca PHOTOGRAPHER Duane Tinkey COVER STORY SALES FUTURE OF TRANSIT 35 DIRECTOR OF BUSINESS RECORD DART considers alternative transit SALES & BPC EVENTS IOWA’S BAD WATER Sara Brown models as it looks to better meet The Elbert Files: By Dave Elbert ASSOCIATE DIRECTOR OF ADVERTISING community’s changing needs Laura Stapes SENIOR ACCOUNT EXECUTIVES Lori Bratrud Dawn Donegan ACCOUNT EXECUTIVE Chrissy Smith 30 36 EVENT & PROJECT COORDINATOR DON’T BUILD ON Stacey Thompson KEY LEADERSHIP CHANGES RENTED LAND ADMINISTRATION Marketing: By Drew McLellan 33 BPC CHAIRMAN Connie Wimer BPC PRESIDENT Suzanna de Baca BPC VICE PRESIDENT CALENDAR PICKS Jason Swanson Your first look at upcoming events BUSINESS AND HUMAN RESOURCES DIRECTOR Eileen Jackson Business Record | September 17, 2021 ACCOUNTING SPECIALIST Becky Hotchkiss OFFICE MANAGER Laura Stegemann Business Record® (USPS 154-740, ISSN 1068-6681) is published by Business Publications Corporation Inc., The Depot at Fourth, 100-4th Street, Des WHO’S IN THIS ISSUE? Moines, Iowa 50309, (515) 288-3336. Contents A list of local people and the page number of the article in which they are mentioned. © 2021 Business Record. Published weekly. Annual subscriptions $69.95. Single copy price is Marta Codina, 22 Joe Gonzales, 22 Tar Macias, 22 Claudia Schabel, 4 Gilmara Vila $1.75. Copies of past issues, as available, may be purchased for $4.50 each. Periodicals Postage Paid Jason Cope, 6 Katie Graham, 4 Luis Montoya, 10 Manny Toribio, 22 Nova-Mitchell, 4 at Des Moines, Iowa. POSTMASTER: Send address changes to Business Publications, The Depot at Emily Forrester, 4 Erin Hockman, 10 Brenda Neville, 15 Dan Van Alstine, 15 Troy Vincent, 4 Fourth, 100-4th Street, Des Moines, Iowa 50309. Sharon Gaddy-Hanna, 4 Todd Krone, 6 Sonia Parras Konrad, 22 33
notebook THE INSIDER CHRIS CONETZKEY EMILY BARSKE JOE GARDYASZ KATHY BOLTEN MICHAEL CRUMB EMILY BLOBAUM Bits and bites of the finer side of Iowa business publisher & editor senior staff writer senior staff writer senior staff writer Fearless editor executive editor 5 takeaways from our Power Breakfast on the future of corporate culture BY BUSINESS RECORD STAFF The ongoing need for more talent and strategies to Here’s what our reporters took away. Michael Crumb: welcome, include and retain a diverse workforce have A theme that was carried over through the been top concerns for business leaders in recent years. Emily Blobaum: conversation was making workplace culture part of an Then a pandemic, remote working and a national racial An overarching theme that all of the panelists organization’s overall strategy. reckoning disrupted workplace culture even more. touched on was the need to know who you’re Vincent of Navigate Wellbeing Solutions said the At the Sept. 9 Power Breakfast, we talked about working with – not just what they do at work, but No. 1 thing he’s seeing is that employees want to be the future of corporate culture as it relates to all these who they are after they shut down the computer valued by their organization. challenges and opportunities. for the day. Doing this will foster empathy, “They want that sense of belonging, and they want understanding and a sense of belonging. folks to understand that work-life balance is going on,” Panelists included: Gilmara Vila Nova-Mitchell noted that throughout he said. “They want to align their purpose with the the era of remote work and Zoom meetings, we’ve purpose of the company.” been invited into people’s homes and can see how they Forrester said at Workiva they prefer to call it KATIE GRAHAM decorate their rooms, and what their kids or pets look “work-life blend” and offer amenities and flexibility attorney and shareholder, like. “Elevate those moments so we can get to know suited to that. Nyemaster Goode, PC each other better as human beings,” she said. Vincent said an organization’s value system should On the other hand, though, recognize that some be evident in all that it does, from well-being programs, people may not want you to see their personal lives, to communication, inclusion and equity. said Claudia Schabel of Schabel Solutions. “All those things build on a strategy of engagement Know how your employees prefer to be recognized. and letting people know that we’re building a culture CLAUDIA SCHABEL Know what they need to be successful, happy and of care for you,” he said. “We’re making it personal. president and CEO, Schabel healthy. “It’s important that leaders take the initiative to We’re helping push your purpose with our purpose as a Solutions get to know the people you work with,” she said. company, and we’re letting people know what we exist as an organization. It’s fantastic to see organizations Joe Gardyasz: embracing this and making it a full business strategy As the panelists discussed ways in which remote along with the bottom line of their organization. and hybrid work have affected company culture, EMILY FORRESTER IMT’s Vila Nova-Mitchell said that she makes a point Kathy A. Bolten: vice president of human to think about ways to continue employee recognition Most employers these days are having a difficult resources, Workiva programs. time attracting and retaining workers. In addition, Iowa “It’s easy to forget when we’re not present,” she workers often are being lured to larger markets with said. “That is something that I have been trying to be amenities such as mountains and oceans. intentional about.” Katie Graham of Nyemaster Goode said she advises Asked if employers have raised expectations over employers to focus on “talent not location.” SHARON GADDY-HANNA time to discourage occasional family interruptions, Vila “We all have a role to actually expand our hiring vice president of human Nova-Mitchell said that she hopes that’s not the case. pool,” she said. “More and more, employers from the resources, employee relations “From my perspective, I hope that [grace] doesn’t go bigger markets ... are going to start hiring the best officer, Bankers Trust Co. away. … And if we all go back to the office — which I talent from Iowa.” don’t think we will — I hope we will still find ways to Many Iowa employers don’t need employees at the recognize this.” workplace every day which allows regional searches for Sharon Gaddy-Hanna from Bankers Trust noted talent to be conducted rather than citywide searches, that managers should clearly communicate their Graham said. “By expanding hiring pools [employers] GILMARA VILA expectations for remote or hybrid workers. For can focus on diversity efforts. ... There’s no more one NOVA-MITCHELL instance, is it clear to employees when it’s acceptable size fits all approach.” to have their cameras off during a meeting, or when Graham cautioned that if employers hire workers Business Record | September 17, 2021 director of DEI, IMT Insurance | leadership consultant, Sarah Noll they need to be in a private setting without family? living in other states, the employer needs to be Wilson Inc. “We can set these expectations within ourselves cognizant of the state’s employment, pay and tax laws. and never tell people what they are,” ’ she said. “That will not allow people to be successful.” TROY VINCENT founder and CEO, Navigate Wellbeing Solutions 4
INSIDER NOTEBOOK “ We all have a role to Sarah Bogaards: Several panelists noted that they are seeing companies lean toward hybrid models, changing the opportunities available to employees who want more actually expand our flexibility, but also employees with disabilities. Graham said before the pandemic companies she consulted with were apprehensive when they received requests from employees asking to work hiring pool. More and from home as an accommodation for a disability. “At that time, employers were looking at that request to work from more, employers from home 100% and saying ‘there’s no way we can do this.’ … That’s gone. Most employers now have had people working from home in a hybrid situation, the bigger markets so it’s going to be really hard now to say it’s an undue burden for us to accommodate your disability,” Graham said. ... are going to start And as the panelists discussed, it’s important for employees working from home for any reason to feel engaged in the workplace culture and valued by hiring the best talent “ their leadership and colleagues. n from Iowa. Katie Graham, attorney and shareholder, Nyemaster Goode, PC Watch the event: businessrecord.com/video COMPLETE STREETS: Provide mobility for all users AND create smart infrastructure solutions. Business Record | September 17, 2021 w CEDAR RAPIDS | DES MOINES TOLL FREE 800.728.7805 wHRGREEN.COM 5
TECH & INNOVATION INNOVATION Q&A TODD KRONE PowerPollen CEO BY KATE HAYDEN What would agriculture look like if producers had direct control over the pollination timing of their crops? In 2015, agtech startup PowerPollen co-founders Todd Krone and Jason Cope be- gan experimenting in Krone’s garage with corn pollen preserva- tion and application methods. Six years later, Ankeny-based Pow- erPollen has patented its preservation and application technology and markets directly to seed producers in the agricultural industry. Krone, now CEO of PowerPollen, shared his observations on growth, opportunities and challenges while leading the compa- ny with Cope, chief intellectual property officer. “PowerPollen’s mission is to make agriculture more sustain- able. We’re starting with the seed industry and will soon be com- ing to the corn grain industry and to farmers,” Krone said. “We’re continuing to meet the challenge that’s before us.” HOW DO YOU DESCRIBE POWERPOLLEN TO OTHERS? PowerPollen is a biotech company that has a technology for pollen preservation, corn in particular. When you can preserve corn pollen, which really hasn’t been done in the history of ag- riculture, you can control reproduction. When you can control reproduction, you can improve the seed production process and make it much more efficient. You can make hybrids or products that seed companies couldn’t make before, so it enables not only a more efficient process but an innovative process that creates Business Record | September 17, 2021 products that didn’t exist. HOW DO YOU DEFINE INNOVATION FOR YOURSELF? I would define it as translating new information into some- PHOTO BY DUANE TINKEY thing that has value and never existed before. There’s a book called “Zero to One” [by Peter Thiel]. The concept is not just improving something, it is making something that didn’t exist before. CONTINUED ON PAGE 8 6
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CONTINUED FROM PAGE 6 The concept is going into a truly new space, where you’re changing WHAT ARE SOME OF THE CHALLENGES the paradigm. Paypal is an example of this, where all of a sudden people FACING THE BIOSCIENCE AND AGTECH could control getting their money to each other not going through the INDUSTRIES IN IOWA? old channels. In our case, our zero-to-one invention is being able to make The key to growth and advancements in agtech and biotech is re- products for a seed company that they couldn’t make before. The current lated to startups, and the innovation that comes with those startups. The system of making hybrids is about 100 years old and it has limitations. challenge for Iowa is a better startup ecosystem and environment. That There’s certain products it can’t make, and those it does are fairly expen- could go for really any state, outside of the coasts. sive to make. We can make them less expensive and enable new products. Developing a better startup ecosystem with better availability to capital in Iowa will be important for the future of this startup ecosystem, WHAT ARE THE OPPORTUNITIES FOR GROWTH and the success of agtech and biotech. There are many programs we’ve THAT YOU SEE IN THE BIOSCIENCE AND taken advantage of in the state of Iowa, and there is a great network here AGTECH INDUSTRIES RIGHT NOW? and availability to investors that we’ve taken advantage of. We feel that Farmers have always had to be sustainable – or they couldn’t stay in we’ve had a lot of success here. But that ecosystem can improve. business. They had to conserve their slope. They were sustainable and controlled erosion in the 1960s, ’70s and ’80s. There’s a lot of good stories WHAT ARE SOME INITIATIVES POWERPOLLEN there, but there’s an opportunity now to become even more sustainable, IS LOOKING AT RIGHT NOW THAT YOU’RE to be even more carbon neutral and to get even better about that. The EXCITED ABOUT? example I use is land use, to get more per acre for the same inputs than We’re excited about that next market. We’re currently commercial- we’ve gotten in the past. Our value proposition and opportunity with the ized in the seed market, meaning that the seed company is the customer. seed industry is to have a better sustainability picture per acre for land The next market is the farmer as the customer. We’re really starting to use, for seed production. translate the current technology into how it would work for the farmer. Here are a few ways Hy-Vee helped fight food insecurity this summer: 3,800 boxes of cereal donated to local students following a school-wide event The dish 6,000 boxes of Kraft macaroni and cheese donated to local food banks on ending SUMMER 6,500 individuals benefited when Hy-Vee made 13,000 pancakes to break the Guinness HUNGER. World Records title for the largest serving of pancakes 10,000 hams donated to local food banks 50,000 breakfast bundles distributed to those in need 1 million meals provided to local food banks in partnership with Kellogg’s, Keurig Dr Pepper & Chobani Business Record | September 17, 2021 This summer, Hy-Vee had a full plate of partnerships and programs that focused on fighting food insecurity. We made it our Provide meals to your local community when mission to support local communities and you buy eligible One Step cereals at Hy-Vee. we’ll continue to do so, one step at a time. For every box you purchase, Hy-Vee will donate a meal to a child in need. 8
We’re excited to see that come to fruition. We’ve got an important dem- WHAT PRESSING GLOBAL CHALLENGE COULD onstration this summer to show how that would work, how we could IOWA TECHNOLOGY COMPANIES PLAY A KEY bring both higher yield and higher-value grain to the farmer, by adding ROLE IN? a higher-value trait to the system. … This initiative that we’re just start- The most pressing global challenge that Iowa companies can play a ing to demonstrate would likely be commercial in 2024, and then to re- role in, particularly biotech and agtech, is the dual need to produce more ally get to the ideal vision and continue to improve it, it would likely be food and do it in environmentally sound ways. It can be done. The other within the course of the next five years after that. piece of that is to do it in an economically feasible way, and there are ways to do that. It’s probably the most pressing issue for the globe right HOW DOES YOUR LEADERSHIP TEAM AT now -- not only how to feed 10 billion people by 2050, but how to do it POWERPOLLEN MAKE THOUGHTFUL COMPANY in a sustainable way. I think Iowa’s in a great place to do that with the DECISIONS IN TIMES OF GREAT UNCERTAINTY? companies that are building here. n It’s not just the pandemic that brought uncertainty: It’s the pace of technology that brings uncertainty. You cannot make decisions with certainty in this environment, and you have to always be ready to pivot and adjust when you get more information. That’s what our leadership See more stories like this and coverage team does. from our 2021 innovationIOWA Magazine at If it doesn’t cost you anything, delaying a decision is fine. Make deci- innovationia.com sions when you have more information. If you have to make a decision, be ready to pivot and be able to reverse direction -- know exactly how you’ll do that. Business Record | September 17, 2021 9
TRANSPORTATION Business Record | September 17, 2021 A passenger departs the Route 60 bus at the DART Central Station. Photo by Emily Blobaum 10
FUTURE OF TRANSIT DART considers alternative transit 27%of DART riders models as it looks to better meet are Black community’s changing needs indicating a disproportionate number of Black residents ride DART compared to their population in the state (4.1% in 2021) BY MICHAEL CRUMB The Des Moines Area Regional Transit Authority is seeking public input on proposals for its future as the agency considers how it can best serve the community and its evolving needs. The Business Record sat down recently with Luis Montoya, the chief planning officer for the agency that serves 11 member communities and Polk County, and Chief External Affairs Officer Erin Hockman to learn more about the proposals and what DART has planned as it 37%of DART riders reaches out to engage with the community about the proposals. What’s important to consider is who rides DART, the reasons they ride DART, where the are 34 years old busiest routes are, where more service may be needed and areas where the agency can possibly or under 42% transition to alternative, more cost-effective methods of providing service. THE NUMBERS DART had a daily ridership before the pandemic of nearly 15,000, with annual ridership of about 4.4 million. While the numbers dropped off in the early months of the pandemic, they have begun to recover. Thirty-seven percent of DART riders are 34 years old or under; 42% don’t own a working of DART riders vehicle; 58% have an annual household income of less than $25,000; 61% of DART riders are white while 27% are Black, indicating a disproportionate number of Black residents ride don’t own a car DART compared to their population in the state (4.1% in 2021). Forty-three percent of DART 58% riders use the bus to go to work, while 16% use it for health and medical reasons, and 13% ride DART to shop. According to data provided by DART, two-thirds of its riders are on its nine most frequent and productive routes, and shuttle and express routes have lost ridership in the past decade. Work to develop the proposals began in early 2020, but was put on hold in the early days of the coronavirus pandemic. It resumed earlier this year and an early round of public input was conducted last spring. Now, recommendations have been developed and will be shared with of DART riders the public. A final report is expected to be finalized in November, with it going to the DART have an annual commission for approval in December. household income of less than $25,000 Business Record | September 17, 2021 CONTINUED ON PAGE 12 11
CONTINUED FROM PAGE 11 ADAPTING TO CHANGE One example is a pilot project in Ankeny, which takes the Ankeny As part of the analysis, DART officials are evaluating which routes On-Call service, which operates limited hours five days a week and re- are the most productive and which routes are the least productive. quires a rider to schedule it a day ahead of time. Under the proposal, its “When we think about where we want to make adjustments, we ac- hours would be expanded and it would operate it like Uber or Lyft, where tually look at the performance of each individual route and do we need someone would call and a DART driver in a smaller DART vehicle would to provide more or less service because it’s not being efficient at the cur- be dispatched to pick up that rider. rent level of service,” Montoya said. “We see that as really being a game-changer in making it more con- A big challenge is the continued trend of development away from venient for people to ride in that they don’t have to book it a day ahead of the city’s center and toward the suburbs. time, but then also be able to expand those hours that people can rely on Montoya said areas that are developed outside of existing bus routes to get to work,” Montoya said. are more difficult and expensive to serve. Expanding the hours would also open opportunities for riders to con- “The growth is expected to continue in our region, and it’s hard not nect with other routes to get elsewhere in the metro, he said. only for DART to have really long bus lines that go out and serve the edge A similar model is proposed in West Des Moines, along University of a growing community, but as we look at the travel patterns, people Avenue and 60th Street to Jordan Creek Parkway. don’t just travel in straight lines. Increasingly, they are dispersed all over “The whole other area where we have much less ridership … we the place.” think could be better served by that microtransit so where people have Hockman said DART’s model has evolved since the agency was first the flexibility, they don’t have to come out on a set time and set schedule, MONTOYA developed. It was initially developed to bring commuters to downtown, they could schedule those trips ... ahead of time if they wanted to, but where a lot of the area’s biggest employers are, but it has evolved as the they could also schedule in real time and have a bus take them anywhere community has grown, she said. within the zone,” Montoya said. “While we have continued to adjust and tweak the service, it was re- Another alternative service model builds off a pilot that was done in ally developed as a hub-and-spoke system so there was a lot of service 2019, called Flex Connect. It is a partnership with Uber and Yellow Cab coming in and out of downtown,” Hockman said. to get people to a bus stop. It would replace Route 74 in West Des Moines, That change is really at the hub of the agency’s pursuit of changes to which currently operates as a shuttle from Valley West Mall to business better and more efficiently serve the region, which is continually evolv- parks and employers in Urbandale. Ridership on that route has waned in ing and as people’s work patterns and lifestyles change. recent years, and Montoya said an alternative service model could allow Some of the changes contained in the proposal include using small DART to serve those riders more cost effectively. microtransit vehicles more frequently to better meet the needs of riders “When you think about that growth that’s happening in the Urban in a certain area. In some cases, DART may contract with a ride service, Loop around Interstate 80/35, we really saw an opportunity as much to such as Uber or Lyft, to pick up a rider and deliver them to a hub where address the underperforming bus route as to expand service up there,” HOCKMAN he said. they can get on a bus to take them to their destination. Things like bike share and scooter programs could also be considered to improve access to That route currently operates a set schedule in the peak morning transit, Montoya said. and evening hours, “but for the same cost, we can offer them an Uber The recommendations include “Near-Term Service Proposals,” that or Yellow Cab throughout the day, so now they have flexibility,” he said. would address underperforming bus routes and repurpose resources to During an earlier pilot, those rides were offered at no cost, but mov- improve service to customers within a cost-neutral framework. ing forward the cost would be similar to a bus fare, Montoya said. CONTINUED ON PAGE 14 TRANSIT ISN’T WHAT PEOPLE MAY HAVE THOUGHT OF IT ANYMORE BECAUSE OF TECHNOLOGY AND THE WAY IT’S CHANGING. THERE’S A LOT OF DIFFERENT WAYS TO MEET Business Record | September 17, 2021 MOBILITY NEEDS THAT FIT THAT DEMAND. THERE’S A LOT OF INNOVATIVE WAYS TO MEET THE NEEDS OF THE REGION. ERIN HOCKMAN chief external affairs officer for DART 12
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CONTINUED FROM PAGE 12 “We do need to work out details but … it would be subsidized by DART, recognizing it would be more cost-effective than to run a full-size WHAT DO YOU THINK? All details of the proposals will be included in an interactive website, bus with a driver because you’re only running it when people need it, not which went live recently (www.ridedart.com/future). There will also throughout the day,” he said. be public meetings, open houses, community events, ride-alongs and fo- That model, like the others, would be a cost-neutral operation, Mon- cus groups over the next couple of months to get public input. toya said. Hockman said the overall goal is to ensure that everyone in the re- Hockman said the proposals show DART’s commitment to serve rid- gion has access to transit services. ers in the best, most efficient way possible. “As we think about all the issues the region is tackling as we grow, “This is a good example of where we are demonstrating when there’s growth in jobs, getting people to work, equity, it’s important to make sure high-ridership, it makes sense to operate and invest in those fixed routes our region is accessible and a place where people want to live and they services, where there is a need for travel, but it’s not as great or the overall can get around,” she said. “Transit isn’t what people may have thought of demand, there’s other more flexible services that can meet those needs at it anymore because of technology and the way it’s changing. There’s a lot a different cost,” she said. of different ways to meet mobility needs that fit that demand. There’s a The last Near-Term Proposal addresses routes to Altoona and Bon- lot of innovative ways to meet the needs of the region.” durant. Route 17 was expanded last year to the new Amazon facility in Bondurant, but only goes along Adventureland Drive to Bondurant four times a day. That would increase under the proposal. MICHAEL CRUMB is a senior staff writer at Business Record. He covers “We have Route 99 that was declining before the pandemic … so we economic development, transportation, energy & environment, culture, would use resources from Route 99 and extend more trips on Route 17 to sales & marketing. have it run every hour on that piece from Altoona to Bondurant,” Mon- E: michaelcrumb@bpcdm.com | P: (515) 661-6086 toya said. “We would be repurposing it from an area that is underutilized to an area we think has a lot of promise.” Long-term goals would be continuing and expanding mobile-on- demand and microtransit services, improving weekend services, and identifying cross-town routes that connect high-activity areas and don’t come downtown. Reducing travel times and wait times are also on the long-term list of proposed improvements. Business Record | September 17, 2021 DECREASING DELAYS, INCREASING SAFETY CITY OF WAUKEE | WARRIOR LANE ROUNDABOUT 14
Left: Driver Kelly Hall of Ruan’s Ankeny operation checks the oil during a pre-trip inspection. Above: Driver Dean Key of Ruan’s operation in Holstein, Iowa, performs a pre-trip inspection in Des Moines. Submitted photos ANSWERS TO DRIVER SHORTAGES FOUND IN EXPANDED RECRUITMENT, REGULATORY CHANGE Trucking companies focus on better work-life balance as they struggle with driver shortage BY MICHAEL CRUMB The trucking industry is facing driver shortages that are expected to “We have frankly played Chicken Little with a driver shortage and grow to being more than one million drivers short in the next decade if it for several years there were ebbs and flows, and geographic hotspots that had Business Record | September 17, 2021 doesn’t do more to improve recruiting and working conditions, industry difficulty finding people,” said Dan Van Alstine, president and chief operat- leaders say. ing officer at Des Moines-based Ruan Transportation Management Systems. According to the American Trucking Association, the industry is An undercurrent to the issue is the increasing age of drivers, said Van currently facing a shortage of more than 60,000 drivers, a problem exac- Alstine, who also serves as vice-chair of the national industry group. erbated by the coronavirus pandemic and an increased number of early “We face as an industry a very aging driver population; the average retirements of drivers looking to make a change. age of a truck driver is 57 years old,” Van Alstine said. “The driver short- But the challenge is nothing new for the industry, which carries age has been with us for some time and I think both the demographic more than 72% of the country’s freight, according to the American influence and the significant impact of the pandemic has truly elevated Trucking Association. this to a critical issue.” CONTINUED ON PAGE 16 15
TRANSPORTATION CONTINUED FROM PAGE 15 The industry is also facing shortages in maintenance and ware- house employees, but the driving shortage is most critical, Van Als- tine said. “Technicians are a challenge, warehouse workers are a challenge, but those, while difficult, they’re just not the number in the needs that we have in the truck driving fleet,” he said. Van Alstine declined to discuss how many openings Ruan has for drivers, but said the company has about 4,600 drivers nationwide. Brenda Neville, president and CEO of the Iowa Motor Truck As- sociation, said the escalation in early retirements in the past couple of years caught the industry by surprise. “We saw a much larger number of drivers over the age of 60 during COVID that retired than we anticipated,” she said. “Some of the drivers said, ‘I put it in my 20 years or 30 years, I’m just going to tap out.’ ” And they can leave the long-haul trucking jobs and find another driving job fairly easily, Neville said. “They can leave these big truckload, long haul jobs and with the agricultural base we have in Iowa, they can still do seasonal work hauling grain, doing any number of things and not have that fear factor that some of them had when they were traveling across the country,” she said. How does the trucking industry turn around the trend of in- creased openings for drivers, which in some sectors of the industry has led to supply chain disruptions as products sit in warehouses waiting to be delivered? Driver Ron Riley of Ruan’s Ankeny operation hauls and makes One is to bring new people into the industry. Second is to push a delivery for Ruan customer Iowa Alcoholic Beverages through regulatory change that can open the doors to more drivers Division. Submitted photos at a younger age, experts said. “The challenge we have is getting people interested in coming in to be a truck driver,” Van Alstine said. “Unfortunately, it’s the reality as a parent, it wasn’t probably a conversation you had with a child, saying it would be a great profession to get into is to be a truck driver. A lot of folks don’t see truck driving as what they want to do for their profession.” Neville said the industry needs to step up its recruiting efforts, but needs to make changes to retain the drivers it has. Companies also are targeting spouses and families in those efforts, she said. “They’re really sensitive to what the driver’s need, their quality of life,” Neville said. “Companies are hiring counselors to talk to drivers more, to talk to their spouses more. There’s a whole lot of things being tested and implemented. Obviously, everywhere you look you’re see- ing sign-on bonuses of $15,000 to $20,000 over a six-to-eight-month period; it’s amazing what we’re seeing in the industry.” The shortages, which traditionally affected primarily the inter- state carriers, have expanded to smaller carriers, she said. “In the last six months, I’m hearing from every imaginable kind of delivery operation,” Neville said. “Beer haulers, they can’t find drivers, the local delivery trucks that were typically the first jobs to be filled, they too are now reporting some real struggles getting driv- Is Where The Health Is ers. It’s really become across the board.” But at the end of the day, companies end up just swapping driv- ers, she said. Business Record | September 17, 2021 “It’s one company stealing a driver from another company,” Nev- Better health begins with the meals we eat. ille said. “We still need to look at getting newer and younger drivers into the industry.” Join us in supporting Iowa Stops Hunger. Federal law currently prohibits anyone 21 and under from driving Together, we can make a remarkable impact. a truck across state lines, which Van Alstine says limits the ability of the industry to bring in people right out of high school to be trained. CONTINUED ON PAGE 18 momsmeals.com 1-866-796-3257 16
UNFORTUNATELY, IT’S THE REALITY AS A PARENT, IT WASN’T PROBABLY A CONVERSATION YOU HAD WITH A CHILD, SAYING IT WOULD BE A GREAT PROFESSION TO GET INTO TO BE A TRUCK DRIVER. A LOT OF FOLKS DON’T SEE TRUCK DRIVING AS WHAT THEY WANT TO DO FOR THEIR PROFESSION. DAN VAN ALSTINE president and chief operating officer, Ruan Transportation Management Systems Meeting New Mobility Needs Greater Des Moines continues to grow and we’re innovating to better connect our region. From on-demand services to mobile app updates to zero- Business Record | September 17, 2021 emission electric buses, see what’s new at DART and help us plan the future of public transit at Ridedart.com/future 17
TRANSPORTATION CONTINUED FROM PAGE 16 A bill in Congress, called the Drive Safe Act, would create an in- Depending on the job, the type of truck driven and the route, a ternship program for drivers between 18 and 21 years old, which Van starting driver can make $45,000 or more a year. With experience Alstine said may attract high school graduates who don’t want to go and long-haul routes, a driver can make up to $100,000 or more, Nev- on to college. ille said. “What we want as an industry is to tap into that high school se- The industry also needs to attract more applicants of color and nior or that high school junior and create a path where they can have more women applicants to help fill that growing gap in drivers, Nev- a very proud and profitable career in trucking,” he said. “But today’s ille and Van Alstine said. laws prohibit 21-year-olds from driving on an interstate basis.” “We as an industry do not source well in urban areas,” Van Als- In the current infrastructure bill in Congress, a pilot would be tine said. “That’s a market that we have to learn how to get better at created for the Drive Safe Act that contains provisions, such as com- and get into those urban environments.That is a pretty sizable part panies would be required to have a full suite of safety technologies of our society that we traditionally have not been able to attract. Our in the truck, a training program, a co-driver program and more. sourcing behaviors and tactics are going to have to change. We’re go- “We are focused on getting the right people in the industry but ing to have to go to different markets, go to different areas than we preparing them in a very safe way,” Van Alstine said. have historically sourced people from.” Neville said the law is needed to get more young people into the He said big sign-on bonuses offered by some companies haven’t driver’s seat. attracted new workers who are more interested in other factors, such “We’re missing that pipeline of young drivers that are very inter- as fair treatment, a schedule that better fits their lifestyle and com- ested in the industry, but they aren’t interested in driving just in the petitive pay. state of Iowa,” she said. “That work-life balance, having predictability in their work life The bill gained momentum under the Trump administration and is critically important,” Van Alstine said. “The pay is almost second- continues to move forward under the Biden administration, Neville said. ary to ‘can I get home to see my son’s baseball game, can I tell my wife “It’s really a model that is patterned after the steamfitters or the I will be home for our anniversary, can I tell my wife I can pick the electricians where you are an apprentice for so many years, you drive kids up at this time.’ Those are the kinds of scheduling components so many miles with a coach with you,” she said. as an industry that we’re just going to have to find a better way.” Not all companies support the bill, though. And that could come at a cost, he said. “There are some trucking companies here in Iowa that say even “We have such great productivity in our logistics channels across if that law passes they’re not going to put an 18-year-old behind the the country … but we now face a time when we may have to give up wheel of a truck,” Neville said. productivity to ensure we have people to do the work,” Van Alstine Another path to tapping into younger drivers is promoting train- said. “It may not be suitable to say we have to have everything right ing programs where after six or eight months they can begin driving, now, so that’s going to be a challenge in our society on the horizon.” and begin making good money, she said. The shortage of drivers means more drivers putting in extra Some companies already have agreements with community col- hours, which can create frustrations and result in more people leav- leges where they pay for the training of a new employee, Neville said, ing the industry, he said. and she expects those opportunities to grow as companies look to “If your workweek is 50 hours and your boss comes to you and increase hiring and attract new people to the industry. says you need to work 60 hours this week, you’d say OK, I get it, but if WE’RE MISSING THAT PIPELINE OF YOUNG DRIVERS THAT ARE VERY INTERESTED IN THE INDUSTRY, BUT THEY AREN’T INTERESTED IN Business Record | September 17, 2021 DRIVING JUST IN THE STATE OF IOWA. BRENDA NEVILLE president and CEO of the Iowa Motor Truck Association 18
that becomes every single week … at some point that’s going to cross different things that will impact the industry as well as the quality of a line and folks are going to get frustrated, and I do believe it leads to life of truck drivers, and I think these are all really valuable conver- people saying, if this is their work environment, ‘I don’t want to do sations.” this anymore and I’ll find somewhere else to work,’” Van Alstine said. Van Alstine agreed, saying he’s confident the industry will find a During the pandemic, Ruan didn’t have to lay off drivers, instead path forward. diverting them from customers who may have shut down or reduced “I have a strong belief that we’re going to be creative and innova- operations to those with increased demand, such as grocery stores, tive in how and where we source people,” he said. “I can’t think that hospitals and retail, he said. we’re not going to do something. I can’t think we’re going to do the The company did do some short-term furloughs in some non- same things, so I’m confident we’re going to find some creative ways driving positions, Van Alstine said. and innovative ways to make the changes we need to make.” n One of the reasons the company has fared better than maybe some others is because of its diverse customer portfolio, he said. MICHAEL CRUMB is a senior staff writer at Business Record. He covers Companies with a more narrow focus, such as hauling fuel or economic development, transportation, energy & environment, culture, steel, struggled more, Van Alstine said. sales & marketing. Van Alstine and Neville both say they are optimistic about the E: michaelcrumb@bpcdm.com future, despite the current challenges the industry is facing. P: (515) 661-6086 “The awareness is there, the conversations are there, and the ideas are emerging,” Neville said. “I think when all of that stuff is happening ... good things will follow. That level of awareness is much higher than it’s ever been and we’re actually having conversa- tions about what we can do to improve, and they’re looking at a lot of Andrew Kral to our Team. Andrew is ready to serve you from our Jordan Creek branch location in West Des Moines. 40 Years of Building Relationships At Graham, our Core Purpose, or why we exist in the world, is to Business Record | September 17, 2021 Build Relationships. We just happen to do it with construction and what we call The Graham Way. Give Andrew a call at 515-330-4725 or email AndrewKral@GreenStateWM.org to schedule a meeting. Securities and advisory services are offered through LPL Financial (LPL), a registered investment ad- visor and broker/dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. GreenState Credit Union and GreenState Wealth Management are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using GreenState Wealth Management, and may also be employees of GreenState Credit Union. These products and services are being HEALTHCARE | COMMERCIAL | INDUSTRIAL | PRIVATE EDUCATION offered through LPL or its affiliates, which are separate entities from and not affiliates of GreenState Credit Union or GreenState Wealth Management. Securities and insurance offered through LPL or its affiliates are: We are proud to celebrate 40 years of building long-lasting relationships in Central Iowa Not Insured by NCUA or Any Not Credit Union Not Credit Union May Lose Other Government Agency Guaranteed Deposits or Obligations Value 421 GRAND AVENUE DES MOINES 515.244.1279 grahamconstruction.com 19
A C U S T O M P U B L I C AT I O N F O R T H E C H A M B E R O F C O M M E R C E A N D C I T Y O F U R B A N D A L E Urbandale Business Connection September 2021 IN THE KNOW Investment along Urbandale’s Northpark Drive has continued through the pandemic. Interstate interchanges at 86th and 100th Streets and an improved 54th Street on the north side of the business park create additional access to support business opportunities. Northpark Drive is the home of Rain & Hail and Delta Dental of Iowa and has seen over 200,000 square feet of construction in less than four years. The corridor recently welcomed major investments by John Deere Intelligent Solutions Group and Iowa Bankers Association. A wide range of medical, restaurant, hospitality and other services for employees is also expanding in the area. Pictured: View of Northpark Drive looking west from 86th Street www.uniquelyurbandale.org | www.urbandale.org
A C U S T O M P U B L I C AT I O N F O R T H E C H A M B E R O F C O M M E R C E A N D C I T Y O F U R B A N D A L E URBANDALE YOUNG Whether you’re relaxing in your living room, PROFESSIONAL basement, or home theater, we have furniture to fit SERIES every style and budget. Create a living space you love with integrated USB ports, power outlets, and built-in storage spaces. Invite friends over to study or gather around the fire for a quiet movie night. We have it all at Homemakers! MITCH ANNETT, WORLDWIDE LOGISTICS HELP CREATE SUCCESS STORIES From the food you eat to the An assignment to start a business Everything you need to create packages in your mailbox, there’s a grew into an auto detailing company a relaxing home good chance a truck driver helped by the time Annett was 16. “I learned 10215 Douglas Avenue • Urbandale, IA 515-276-2772 • 1-888-818-7283 • Homemakers.com deliver them. While it’s easy to about the financials, marketing, overlook the trucking industry’s role hiring employees and making in everyday life, it’s top of mind for money,” he said. Mitch Annett. Today, Annett works with “Jeff Bezos of Amazon said, ‘You WorldWide Logistics’ carrier base of SAVE THE DATE don’t choose your passions, your more than 40,000 truckers. While SEPTEMBER 28 AM Exchange 7:30 – 8:30 a.m. | Vision Park Family Eye Care passions choose you,” said Annett, the company isn’t immune from the and Virtual | Registration required | Free to attend 26, logistics director at WorldWide nationwide truck driver shortage, Logistics in Urbandale. “Logistics Urbandale remains a great home OCTOBER 4 Connect | 4-5 p.m | Clear Mortgage and Virtual | Registration and trucking are passions for me.” base for the company, which is required | Free to attend Annett’s grandfather Harrold growing by 30% to 35% a year. Annett established TMC trucking in “Ease of access in Urbandale OCTOBER 7 Leveling Up Within Your Organization Workshop 8-9:30 Des Moines in 1972. “I grew up playing is fantastic,” Annett said. “We also a.m. | Urbandale Chamber and Virtual | Registration required | Cost: 10 genYP with the trucks on my dad’s desk,” appreciate the great restaurants members/$20 non members. said Annett, a West Des Moines and beautiful trails throughout the OCTOBER 14 genYPM | 4-5 p.m. | Walnut Lake Apartments and Virtual. native and third generation of his community.” Registration required | Free to attend family to work in the transportation/ A walk on the trail is often just logistics industry. “Trucking runs in what Annett needs to refresh his OCTOBER 15 Candidate Forum | 11:15 – 1 p.m. | EJ Giovannetti Shelter and Virtual my blood, so it was an easy decision thinking. “Critical thinking skills, Registration required | Free to attend | Lunch may be ordered for a small fee. to work with WorldWide Logistics.” learning from mistakes and the Annett’s first-hand knowledge, golden rule of treating others the OCTOBER 20 Machine Learning & Muffins, Technology Trends Webinar 12-1 p.m. | Registration required | $10 to attend. along with his degrees in business way you want to be treated are our management and supply chain keys to success,” he said. OCTOBER 21 Regional Breakfast | 7:30 – 8:30 a.m. | Iowa Wild and Virtual. management from Iowa State Giving back to the community is Join all affiliate chambers with a chance to connect and network at the Wild. University, are helping him grow the also essential, added Annett, who Registration required | Free to attend family business. He wants WorldWide is proud that WorldWide Logistics Logistics to feel like family to the supports UCAN (Urbandale company’s employees, as well. “This Community Action Network)/Adopt WELCOME NEW URBANDALE CHAMBER MEMBERS business is about helping people a Family, Meals for the Heartland, Sivid – Des Moines Signarama Urbandale – Urbandale succeed. We go through life together Adopt a Highway and Break the and create success stories together.” Cycle 200, which fights human Mary’s Cleaning Care – Urbandale Ram Roofing - Urbandale trafficking. Lyndsey Lamb – Platinum Realty LLC Shelter Insurance – Dillon Kimberly – - Urbandale Urbandale LIVING BY THE GOLDEN RULE “We want to get even more A born entrepreneur, Annett involved in the community,” Annett Floor & Décor – West Des Moines Gershman Mortgage – Urbandale began honing his business skills in a said. “We’re excited to keep growing PRIA Logistics – Ankeny Flix Brewhouse – Des Moines high school entrepreneurship class. with Urbandale.” Connectify HR – Des Moines
SUZANNA DE BACA President and Group Publisher, BPC ON LEADERSHIP The success of Iowa’s economy tied to the Latino community When my New Mexican father came to Iowa in the early 1960s to join the faculty Manny Toribio, business development lead, McClure: at Iowa State University, the Latino population in our state was sparse and often mis- Iowa’s future depends on having diverse decision makers in leader- understood. My father was also often misunderstood. Many Iowans did not even know ship roles. Having these individuals in place will provide a wide va- New Mexico was part of the United States, and few had any understanding or apprecia- riety of perspectives and critical thinking to solve future problems. tion of Hispanic culture beyond movie stereotypes. Today Latinos (which refers to a person’s culture or origin regardless of race, and is alter- natively called Hispanic or the more recent term Latinx) are Iowa’s largest racial or ethnic minority group and one of the fastest growing populations. Just as my father moved here for his academic career, Latinos have come to Iowa for a variety of reasons and many have The Latino community in Iowa has expanded significantly since my father arrived, stayed for generations. Latinos have lived and worked in Iowa since the19th century, play- and hopefully understanding and appreciation of this rapidly growing and important ing an important role in shaping the state’s economy, culture and communities. community will continue to advance. As Parras Konrad says, “The world is getting With a declining population overall and need for a vibrant workforce in smaller but we can grow bigger and have a stronger presence because of the commit- Iowa, Hispanics will increasingly have a large part in our state’s economy. ment of Hispanic leaders to Iowa.” As a report from the recent White House Hispanic Community Action Summit stated: “Given the role that Hispanics will increasingly play in our labor force, in our economy, and in our public education system, it is undeniable that the success of our nation is Ways to advance Latino leadership in inextricably tied to the success of the Hispanic community.” The same is true here in Iowa, but despite our long history here, Latinos have not your organization: been particularly visible.That’s why Hispanic Heritage Month, which is observed from Sept. 15 - Oct. 15, is vital to recognizing and celebrating the culture and traditions of Commit to DEI: Toribio points out that inclusion does not happen without con- U.S. residents who trace their roots to Spain, Mexico and the Spanish-speaking nations centrated efforts around diversity, equity and inclusion (DEI) and having “those of Central America, South America and the Caribbean. uncomfortable conversations about why we are different.” Gonzales echoes this, In observance of Hispanic Heritage Month, I asked local Latino leaders,“Why is it saying, “One size fits all does not work, even in a majority white workplace. You so important to the future of Iowa to support and advance leaders from have to create a genuinely personal and welcoming work environment.” diverse cultures, and from Hispanic cultures in particular?” Uplift your Latino employees. “Be intentional,” says Macias, pointing out Marta Codina, region bank president, Midwest Central that the average age of Latinos in the state of Iowa is 24 compared to 39 for the rest Region, Wells Fargo Bank: We are the fastest growing segment of the population in Iowa, a 15-year gap that deserves attention. He advises leaders of the population in the country. We bring a mix of cultures that only to promote Latinos in positions of visibility and to include them in the decision enriches our communities. It’s important to have representation in making process. Says Parras, “Hire, develop, empower and prepare to be amazed!” leadership so this growing population sees their potential. If you can see it – you can dream it! Create connections: “We are a community minded group – we like to con- nect and share our various diverse cultures,” says Codina, sharing that Employee Resource Networks are a successful way for Latinos to connect as well as empow- Joe Gonzales, executive director, Latino Resources, Inc.: er growth and development. Latinos are a fast growing segment of the population. We offer tal- ent and another voice, a voice that is growing but lacking when it comes to representation in leadership positions. When Latinos see Latinos in power, they envision something more for themselves. We don’t want Latinos to settle for less. We want to nurture and mentor Celebrate Latino culture at the standouts in our community. Iowa Latino Heritage Festival Tar Macias, president, Hola Iowa: The latest census numbers tell us that there are now over 215,000 Latinos living in the state of This year’s Iowa Latino Heritage Festival, “Living la Fiesta,” will be held Business Record | September 17, 2021 Iowa. We are the largest minority in the state yet we are not seen by from 10 a.m. to 11 p.m. Sept. 25 and from 10 a.m. to 6 p.m. Sept. 26 in the mainstream media and corporate America. We are the “invisible Western Gateway Park, 1330 Grand Ave. in downtown Des Moines. minority.” That is why we need to uplift our young Latino talent. Attendees can taste Latino American foods and experience a variety of entertainment from martial arts performers to folkloric dancers, and displays about the history of Latin American cultures. There will Sonia Parras Konrad, attorney at law, Law Offices of Sonia be musical entertainment both days, as well as cooking demonstra- Parras PLLC: Research shows a positive link between diversity and an tions of Latino meals. organization’s performance. Supporting diverse perspectives, including those of Hispanic cultures, especially in the leadership ranks, helps at- Free parking is available in the Nationwide ramp at 1100 Walnut St. tract talent and promote job satisfaction. As a result, organizations gain Cost to attend the festival is $5 for adults; children 12 and younger the powerful perspective of leaders whose culture and values are deeply are free. For more information, visit www.latinoheritagefestival.org and powerfully connected to the American Dream. 22
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