Brian Hanson’s APEX Insight and Future Musings

After ten years with APEX its president and CEO, Brian Hanson has moved to Involta as its Vice President of Corporate Development.

Brian shared his thoughts with the BBER about his time with APEX, his vision for its future, and more.

What did APEX look like when you first started and how has it evolved?

“One of the first things we did when I started at APEX was to put together a strategy to help us focus. In economic development, there are so many ways to be pulled. We needed one particular area of focus to help us know when to say yes or when to say no to projects. For example, APEX is currently involved in childcare. Its partners are working on supportive legislation, incentives, and growing our existing centers, while APEX focuses on childcare recruiting.

Other things that have changed include working with consultants and doing advocacy work. APEX didn’t have the scope of large projects it does now. My first experience in advocacy was a very small Enbridge project. Now the size of the projects that APEX is advocating for are multi-billion dollars.

Of course, APEX has always been focused on manufacturing and natural resources-related businesses. Those two have always been on the list. Others have come and gone—like data centers. We’ve never been the spot for a big enterprise data center. We didn’t land one. But  we were ecstatic to land a co-location center here in the region.

Also, mass timber is a nascent industry that we looked at. While it hasn’t worked in our region yet, it is promising for the future.

What are you most proud of from your time with APEX?

 “There have been real workforce issues in the region over the years. At one point there was a serious problem with unemployment. Now the primary issue is up-skilling, getting people off the bench, using skills in the workforce—and automation. In the past, we always measured jobs, jobs, jobs. Now the keyword is retention.

I’m proud of the fact that APEX has made  a large impact on  job creation in the region. I was so happy with the way the community came together around the AAR aircraft maintenance project. And APEX helped with the growth of Cirrus—its expansions and regulatory processes. APEX was able to help them through several challenges.

 I’m also extremely proud of the work APEX did in Itasca County with the IEDC [Itasca Economic Development Corporation] on Voyageur Capital’s redevelopment of the former Ainsworth plant. Now that spot is a vibrant industrial park with a lot of potential tenants. I think it’s a jewel in the region. The IEDC team has done a great job on many things. I worked with them the whole time I was at APEX. APEX has had a good long run in Itasca County.

What changes (good or bad) have you seen in the regional economy over the past ten years?

As far as good goes, I believe the regional economy has proven to be more diverse than people think, more resilient than many other regions’. The region has been through some ups and downs, but overall, they’ve tended to be small. It’s great to have a resilient, diverse economy. There’s a lot of strength there.

One of the bad factors in our region is that there is a high percentage of the population that isn’t in the workforce. There are a lot of folks that need help getting into jobs. They need encouragement to get off the bench. That is something that has plagued our region.

Demographics are changing, and the workforce is getting older. The focus needs to be on those young families. We need more people in the working-age bracket. It’s a huge issue that we need to figure out. Even folks who have challenges, like childcare and transportation, should be able to participate in the workforce in a way that works for them.

What gives you hope (or concern) for the economic future of the Duluth region?

It’s great that there is a team of people that are working on the regional economy—colleagues at utilities, organizations, the APEX team. Overall, economic development is getting more and better attention. That’s good.

What gives me concern is that Minnesota has a broken regulatory environment. It’s not the regulations themselves, it’s the process. The state needs to work on a more transparent, timely, and predictable process. The citizens deserve that. The businesses who are trying to move projects forward deserve that. Our legislators need to stop talking about moratoriums on activity and investment.  Instead, they should support the protections provided by the Clean Air Act and Clean Water Act and enhance regulatory accountabilities for all to move forward.  The current regulatory environment is driving business elsewhere.    

It’s not limited to mining or pipelines.  It’s even a problem for simple things, like a permit for a paint booth. Twenty-five well-paying jobs left the community and went to Michigan. It took 20 months for a permit application. The company’s hands were tied. Companies are paying for this service [of obtaining a permit], and the resources are there. It’s just being mismanaged. It’s a lack of predictability that makes Minnesota not attractive for large or small projects. Work needs to be done on that. Businesses are not saying regulations are too high. It just takes too long. That’s not right.

Also the state is losing businesses because of liquor laws. For example, Tattersall Distillery in Minneapolis recently expanded to River Falls, Wisconsin. Businesses are expanding elsewhere and that’s a problem for economic development in Minnesota.

Why was this a good time for you to make a career move? 

I wasn’t looking to switch jobs, but when the opportunity came along, I felt it was a good fit with all the past work I’ve done. I’ve worked in economic development as a utility person, at the state level with the IRRRB, at the city level with the city of Duluth, and at the regional level with APEX. Each of these positions has given me experience that is relevant to my new position at Involta.

Plus, the time was right for me personally. My kids are grown, and this job will have me traveling a lot. I like to travel.

Plus, ten years is a long run at any one organization, and it’s the longest time I have ever held one job!

What would you hope APEX to be like in five years?

Looking ahead, what I would hope for APEX is that someone can bring in new ideas and approaches and take what’s been done and grow exponentially. APEX has a great staff and executive committee leadership. Membership is top notch, and the organization is in a good financial position. I’m leaving the next person a strong organization.  

I’m happy that the governor’s budget has money for marketing. APEX advocated for that to bring in high-quality jobs.

Five years from now, I would hope that the organization has grown in membership and strength.

Also, I’d like to see APEX be doing more advocacy. I’m expecting great things. I hope APEX will point out where there are issues and try to move things forward and make our region competitive with other parts of the country.

The next person is in a great position to take what’s there and grow it.

Do you plan to remain active in economic development?

Right now, I will be stepping back from a lot of things I’m doing. Like the 1200 fund, which I’ve been involved with since I was leading it while at the city of Duluth. But I’ll exit that and give someone else that opportunity. Other things I’m stepping away from are the Arrowhead Growth Alliance, the Duluth Mayor’s Coalition, and Jobs for Minnesotans.

But I hope my role will be to mentor and coach the new APEX person—get them up to speed on what the APEX role has been and why. I’ll be the historian and help them understand what and why APEX had done things. Involta is an APEX member, so I’ll still be involved. My new role is going to take a lot of energy and I want to be fully committed to that.

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