How high school internship multiplied for promising engineering student

While many college students are just getting acclimated to their summer internships, Hannah Preheim is already a seasoned pro.

This summer marks her third internship with Sayre Associates — a relationship that began during her senior year at Brandon Valley High School.

Hannah Preheim works on computers

Preheim became interested in civil engineering after an eighth grade project focused on traffic flow. Her teacher, Brady Olson, helped take it from there.

“Hannah is a rock star,” Olson said. “She’s very thoughtful and approaches challenges from different perspectives. She’s a great problem-solver. When she expressed an interest in engineering, we worked to find her an opportunity to explore it firsthand.”

Brandon Valley is one of six area high schools participating in the Career Connections program. As part of the internship course, Olson reached out to Denise Guzzetta, vice president of talent and workforce development at the Sioux Falls Development Foundation.

“Through the Career Connections program, Denise connected us with Sayre,” Olson said. “They took a chance on bringing in a high school student — and she absolutely rocked it. She did an outstanding job, and it was incredible to see that door open for her.”

That’s exactly the goal of the program, Guzzetta said.

“We’re able to leverage strong relationships across the business community to connect talented students like Hannah with employers like Sayre,” she said. “It’s inspiring to see how much can grow from that initial high school opportunity.”

As a senior, Preheim began interning at Sayre, where she was introduced to advanced computer-aided design software.

Hannah Preheim working at a desk at Sayre Associates

“We could tell Hannah was a very bright student who learned quickly, so we asked her to go through the tutorial and see what she could pick up,” said Paul Korn, civil engineer at Sayre. “From there, we were able to assign her tasks and design work on active projects.”

The summer after her high school graduation, Preheim continued her internship — this time moving from design work indoors to hands-on experience in the field learning construction administration.

“I got to do different things in the field and see how things are built,” she said. “I was keeping records of things and did some as-built drawings and helped monitor quality control.”

Following her freshman year at South Dakota State University, where she’s studying civil engineering, Preheim came back to Sayre for a second summer.

A picture of a seating area in an office

“That year, I was more in charge of one specific project, checking in with contractors and doing price estimation,” she said.

Her role included assisting with curb and gutter repair for the city of Sioux Falls in south-central Sioux Falls.

Now in her third summer, Preheim is back in the office doing site design, grading plans and designing utilities.

“I’m doing things for a gas station and working on putting together some plan sets for affordable housing,” she said.

The level of responsibility Preheim has earned is unusual for an intern — but well deserved, Korn said.

Hannah Preheim and Paul Korn look at engineering plans

“I think this is the first time we’ve had an intern work inside on design from the start,” he said. “But Hannah has shown she’s proficient with the software, and we wanted to utilize her more now that she’s gained the field experience most of our interns start with.”

“She’s had two summers of seeing how things are built and reviewing plans, and now she’s applying that knowledge in design.”

Now entering her third year of college, Preheim also feels more comfortable as part of the team.

“Everyone is really nice, and I don’t feel intimidated asking questions, which I really appreciate,” she said.

Most importantly, her internship experience has confirmed that she’s on the right path.

“I definitely feel like I have a better understanding of what I’m working toward in my degree,” she said. “Things feel more connected and applicable now that I’m taking design classes.”

A picture of Hannah Preheim working at a desk

Sayre also has connected through Sioux Falls Development Foundation programming to reach students earlier in their education.

The company was among 17 employers participating in an interactive Your Future STEM event for sixth graders this year, for example.

“We continually emphasize the need to develop STEM skills in students and the opportunities they will have to apply those,” Guzzetta said.

A Talent Talks event during Women in Construction Week in March further inspired students by allowing them to hear from STEM professionals.

“We’re seeing success encouraging more women to pursue engineering careers, which is critical to meeting our projected workforce needs,” Guzzetta said.

While Preheim still has two years of undergraduate education to go, Korn already sees a bright future.

“She’ll have lots of opportunities when she graduates, and we hope she considers Sayre as one of those opportunities because we certainly see her fitting in here,” he said.

Olson sees Preheim’s success as a model of what Career Connections can offer.

“It’s amazing,” he said. “It’s all possible because of business partners who are willing to provide these opportunities. It’s incredible that they see the value in creating win-win experiences.”

“We’re hoping students get authentic learning opportunities and businesses get worthwhile work done,” he added. “We’ve had several students asked to stay on for employment — either after high school or while in college — and some have even received full-ride Build Dakota Scholarships.”

A picture of a girl smiling in a room with pipes in the background

Through the partnership with the Sioux Falls Development Foundation, “Denise and the team help expose students to what’s out there,” Olson said. “A lot of students just don’t know what’s possible, and the more we can do to change that, the better.”

 A picture of a student raking sand

“Career Connections is truly a win-win — for students, schools and employers,” Guzzetta said. “It offers a smart, streamlined way to engage early-career talent while making career development more intentional, accessible and impactful.”

If your business would like to connect with career development opportunities, reach out to deniseg@siouxfalls.com.

Why Sioux Falls is the smart choice for business expansion

Sioux Falls continues to earn national recognition as one of the most business-friendly and economically vibrant cities in the country. In 2025, it was ranked the No. 1 city in the United States for corporate site selection per capita among tier-two metro areas. This distinction underscores the city’s growing appeal to site selectors and expanding companies looking for long-term success. WalletHub also named Sioux Falls one of the “Hardest-Working Cities in America,” reflecting a reliable, committed labor force that businesses can count on.

In addition to its strong workforce, Sioux Falls is recognized for its environment of safety and affordability. Earlier this year, it was ranked among the “Top 25 Safest Cities in America,” providing peace of mind for companies looking to relocate employees or attract new talent. The city also earned a spot as the best U.S. city for small businesses, a nod to its support systems, low regulatory barriers, and entrepreneurial spirit.

Economic development in Sioux Falls is backed by transformative investment and coordinated planning. Major projects like the $400 million downtown revitalization featuring developments such as Cherapa Place and the Steel District are reshaping the urban core with new office space, retail, and residential offerings. Foundation Park, a premier industrial development park, has attracted significant employers like Amazon, Lineage Logistics, FedEx Ground, FedEx Freight, Avera, Owens & Minor, and CJ Foods. As Mayor Paul TenHaken stated, “We are keeping Sioux Falls investible by strategically planning for growth in every direction.”

With a low-tax climate, top-tier rankings, major infrastructure investment, and a workforce that consistently earns national praise, Sioux Falls offers the right combination of opportunity, affordability, and momentum for any business seeking a smart place to grow.

President’s Report: Forward Sioux Falls Investor = Sioux Falls Development Foundation Member

By: Bob Mundt, President & CEO

As we prepare for the ninth Forward Sioux Falls campaign, the Sioux Falls Development Foundation Board of Directors has made a strategic decision to eliminate our traditional membership dues model. Going forward, Forward Sioux Falls investors will be recognized as members of the Development Foundation with pledges supporting the work of the Development Foundation in place of dues.

Current Development Foundation/FSF contributors will be asked to combine their investments into their FSF IX pledge; others will be asked to contribute to the FSF campaign for the first time. In return, Development Foundation members will automatically remain members as investors in FSF. By investing in Forward Sioux Falls, you’re fueling the mission and impact of the Development Foundation—no separate membership required.

“This is a great opportunity to streamline our dues and investment processes in our partnership with Forward Sioux Falls,” said Bob Mundt, President & CEO of the Sioux Falls Development Foundation. “Our members are approached multiple times for dues and sponsorships from our nonprofits. This allows them to contribute to the growth and development of many projects in the community through one investment.”

“The Board feels this is a good way to continue supporting the Development Foundation, increase contributions to the Forward Sioux Falls campaign, while making it easier for our members and investors to support multiple projects under the umbrella of Forward Sioux Falls,” said Development Foundation Board Chair Kent Cutler. “It is our hope that this change will make it easier for our members to track our progress and contribute in a meaningful and productive way.”

We believe this streamlined approach will provide a more effective and impactful way to fund our economic development and workforce efforts. Thank you for your continued commitment to advancing the Sioux Falls area through your involvement with Forward Sioux Falls and the Sioux Falls Development Foundation.

Chairman’s Report: Looking to and anticipating the future

By: Kent Cutler, 2025 Sioux Falls Development Foundation Board Chair

Many companies look to the future to plan for what they believe will be a profitable path forward. Strategic planning is a part of most companies’ operating procedures and may involve a complex process for forecasting growth, anticipating opportunities and threats, and laying the groundwork for moving forward profitably. In a world changing fast, these plans now may only look forward three to five years with any degree of certainty and allow for critical adjustments if needed quickly.

The Sioux Falls Development Foundation also follows a strategic planning process that anticipates the growth of Sioux Falls as it relates to economic and workforce development and the state and national trends that may affect our growth.

Available land for development that is adjacent to the city and provides for city services is critical. Companies looking for land to expand – whether internal or external – need build-ready property to make sure their schedules for increasing product demand can be met. These sites need to be served by local utilities including water, sewer, electricity, gas, and communication services and meet transportation needs for the companies and the public in general. All this takes a coordinated effort on behalf of the Development Foundation, the City and the State with planning well in advance.

In addition, the workforce needs of our existing companies and the ones locating here are changing and advancing. Competition and technology are forcing companies to update equipment and retrain employees. New graduates must possess the skills needed to operate and maintain modern equipment, so our educational institutions need to be training for the jobs and technology of the future. Companies must anticipate the needs of the future and adjust their technology and training to compete, and the Development Foundation and the State must partner with education and training institutions to make sure our workforce is ready for the available jobs.

The feasibility analysis of the Forward Sioux Falls campaign anticipates these trends and developed a five-year plan of action to address changes and move Sioux Falls forward. The Sioux Falls Development Foundation works with the Chamber and partners to address economic development and workforce challenges. Through workforce recruitment, retention, and retraining, the Development Foundation leverages the funds from Forward Sioux Falls to increase the number of people in the employment pipeline. Research helps anticipate the need for specific skill sets to grow your business.

Like your business, we will plan for the challenges of tomorrow and anticipate as best we can what the Sioux Falls economic and employment landscape will look like in the future. We hope you choose to invest in the Forward Sioux Falls campaign and be a part of creating the future.

Thanks for all you do.

Groundbreakings: Q2 2025

Each spring and summer brings the beginning of new projects, and we love celebrating them with groundbreakings! Here’s a look at the groundbreakings we celebrated in the second quarter of 2025.

Augustana University: Foundation Heights

Augustana University broke ground on Foundation Heights, a new on-campus apartment complex. The project was inspired by the late Craig Lloyd, an honorary alumnus and member of the Augustana University Board of Trustees.

L to R: Liz Lloyd, Mary Lloyd-Huber, Pat Lloyd, Christie Ernst, President Stephanie Herseth Sandlin, Keith Severson, Councilor Curt Soehl, Miles Beacom, Chris Thorkelson, Shannan Nelson, and Kent Cutler.

City of Sioux Falls: McKennan Park Wading Pool & Bathhouse

The City of Sioux Falls Parks and Recreation Department broke ground on a new wading pool and bathhouse facilities at McKennan Park, funded in part by a donation from Pierce and Barb McDowell.

L to R: Mike Begeman, Kellen Boice, Jason Herrboldt, Mary Kolsrud, Don Kearney, Pierce McDowell (donor), Barb McDowell (donor), Mayor Paul TenHaken, Kent Cutler and Tyler Landry.

Mapleton Highlands

Mapleton Highlands LLC and Van Buskirk Companies broke ground on Mapleton Highlands, a luxury housing development located near the new Mapleton Golf Club. Work at the site is underway, with construction for homes to begin in fall 2025 and ready for spring 2026.

L to R: Miles Beacom, Jeff Eckhoff, Kent Cutler, Steve Van Buskirk, Danny Amundson (founding manager), Brett Busch (founding member), Dan Statema (founding member), Travis Thie (founding member) and Trent Bruce.

Sioux Falls ranked No. 4 best city for Veterans by Veterans United

It’s with great pride that we share that Sioux Falls has been ranked one of the best cities for veterans by Veterans United, coming in at No. 4!

“Sioux Falls performed especially well in our health care category, ranking No. 4 of 25, thanks in part to an impressive 101 medical doctors per 10,000 residents, one of the highest ratios in our study,” the article releasing the ranking says. “Along with excellent access to healthcare, the air quality is top-notch, with a median AQI of 33.”

To see which other cities made the list, click the ‘learn more’ button below.

South Dakota ranked in the 10 best states in America for 2025 by U.S. News

With beautiful landscapes, plenty of opportunity, and a top-notch quality of life, we’ve long thought South Dakota was one of the best states in America. In fact, U.S. News has ranked South Dakota as the 8th best state in America for 2025!

South Dakota received top ranks in several categories used to configure the ranking, including: infrastructure (No. 2), natural environment (No. 5), and education (No. 8).

To see which other states made the list, click ‘learn more’ below.

Forbes ranks Sioux Falls amongst 25 best places to retire in 2025

Sioux Falls, SD, offers some of the best perks for retirement living, like no state income tax, access to great healthcare options, and so much more. These are just a few of the reasons why Forbes has included Sioux Falls in its list of the 25 best places to retire in 2025.

“Besides basic costs, our selection process weighs such metrics as state taxes, prospects for the local economy, air quality, serious crime and the availability of primary care doctors, as well as whether a place encourages an active lifestyle by making biking or walking convenient,” the article releasing the list says.

To learn more about why Sioux Falls is one of the best places to retire, click the ‘learn more’ button below!

Immersive STEM day exposes sixth graders to wide range of careers

More than 400 Brandon Valley sixth graders spent one of their final days of the school year learning about construction and related fields from the experts.

Seventeen area employers participated in the Your Future STEM day, organized by the Sioux Falls Development Foundation, bringing an up-close look at the occupations available to these students.

With plenty of hands-on activities, the day made a big impression.

Take a look:

Brandon Valley Your Future STEM (Spring 2025)

FedEx Freight opens expanded location at Foundation Park

FedEx Freight has started operating out of a new, expanded Sioux Falls location.

The 76-door building is an increase from the 49 doors the company previously used to operate out of in Sioux Falls and allows for potential expansion.

Aerial photo of the FedEx Freight facility at Foundation Park in Sioux Falls, SD

“We consider this a large market, serving the largest metro in South Dakota, so this is an above-average-size building,” said Jeff First, senior vice president of operations for FedEx Freight.

“Sioux Falls has been growing at a pretty fast rate, and we had been watching trends over time. Three to five years ago, the data provided the direction we needed to invest in this facility long term.”

The location includes a 55,000-square-foot building that brings office and fleet maintenance space under one roof and leaves about 35 percent as “solid room for growth,” he said.

FedEx Freight building in Foundation Park in Sioux Falls, SD

FedEx Freight employs more than 70 people in Sioux Falls, and more than half of them are drivers.

“All our drivers are home every night, they drive trucks that have all the latest technology and safety, and all the amenities are there, including compensation, retirement and benefits,” First said. “These are the best jobs around.”

In addition to drivers, there are team members who operate forklifts, load and unload shipments and support a full shop operation, in addition to administrative and customer service roles in the office.

“Anytime you open a new building, it creates opportunities,” First said.

“The bigger the building, the greater the opportunity to expand and grow and think differently. FedEx Freight will continue to expand in strategic markets where we have a need for additional capacity, which will better position us to meet growing customer demand.”

The Foundation Park location with easy access to interstates 29 and 90 is ideal for logistics operations, said Dean Dziedzic, vice president of economic development for the Sioux Falls Development Foundation.

Aerial photo of FedEx Freight building in Foundation Park in Sioux Falls, SD

“We’re thrilled to see this new location open and think it’s an ideal fit for Foundation Park,” he said. “Bringing enhanced shipping capabilities benefits our entire business community and broader region, and we’re excited to see the success we know awaits here for FedEx Freight.”

FedEx Ground opened a 330,000-square-foot building at Foundation Park a few years ago.

Locating in the same development park isn’t common for the two because the timing generally doesn’t align, First said.

“We agree it’s a great location,” he said. “We have a lot of opportunities to move freight across this part of the country from here and do it while creating jobs in Sioux Falls.”

While FedEx Ground manages packages, the team at FedEx Freight manages and delivers palletized, heavyweight shipments to residential and business customers and picks up from customers in Sioux Falls who want to reach any of the Lower 48 states.

Docks at FedEx Freight in Foundation Park in Sioux Falls, SD

“We deliver things like patio furniture, grills, large TVs that won’t go on the conveyor belt for small trucks,” First said. “People might be doing projects in their homes and have pallets of stone or hardwood flooring delivered, and cold plunge tanks also have become increasingly popular.”

The company also continually incorporates new technology into its operation, including an industry-leading system that allows precise measurement of dimensions and weight while moving.

“It allows the entire dock operation to flow without interruption,” First said. “We scan shipments three times to validate it, and it has lots of advanced technology. We use it to effectively operationalize the planning and execution of our business.”

FedEx Freight in Foundation Park in Sioux Falls, SD

FedEx Freight embraces a “people-first” culture that emphasizes safety and creating a work home for the team, he added.

“When you see our equipment in a state-of-the-art facility, it sends the right messages,” he said. “The people behind the wheel of the forklift or behind the wheel of the truck matter most and are top of mind in everything we do.”

In Sioux Falls, he sees a community that values the company, he said.

“It can sometimes be hard to find the right piece of land, a developer and city that wants you to be there all at the same time. But we build our facilities first class and put a lot of effort into aesthetics, so I’m really excited about the possibilities of doing more in this building,” he said.

“We believe we’re in the right location with the right doors at the right time.”

Connecting students with careers: Program shows success creating post-high school paths

Think of it like a class that helps students answer this question: What are you going to do after high school?

It’s called Jobs for America’s Graduates, or JAG, a national course offered at several area schools, including Jefferson High School.

This college- and career-readiness course became an ideal way for the Sioux Falls Development Foundation to deliver its Career Connections program, bringing guest speakers into the classroom and taking students outside of it.

And it has had a big impact on students’ plans as they prepare for graduation. Here’s a closer look:

Career Connections helps lead students to post-graduation paths

Graduating senior lands full-ride scholarship with path to construction career

In a matter of weeks, Owen Vincelli will be a Brandon Valley High School alumnus and the latest new hire at Journey Group Cos.

“I have a week off for graduation, and Monday after graduation I start,” said Vincelli, who worked another job in the construction field while still in high school.

Come August, he will begin classes at Lake Area Technical College in Watertown as he works toward a degree in building trades technology, a path that will set him up for construction management.

Owen Vincelli stands amongst building materials

But he won’t leave his role at Journey behind. The company is Vincelli’s sponsor in the Build Dakota program, a full-ride scholarship that will keep him working at Journey through school and for at least three years after that.

“I got connected with Journey through my internship class,” he explained. “I knew I wanted to go somewhere in construction because I’ve always liked to build things. I just didn’t know if it would be a two-year or four-year program. I interviewed with them late last year, and they ended up offering me the Build Dakota Scholarship as my sponsor.”

He’ll start this summer as a general laborer. “I really like them as a company already,” Vincelli said. “I’ve heard good things from everyone I’ve told (about my plans) that Journey is such a good company.”

At Brandon Valley High School, the Sioux Falls Development Foundation’s Career Connections program coordinates weekly programming in Matt Christensen’s English class.

Brandon Valley High School entrance

“When you don’t know what you don’t know, it’s a challenge to find your strengths, and we want to help them find where their loves meet their interest and what the world needs,” Christensen said. “We’ve taken tours to places like Southeast Tech, public safety departments and water treatment facilities, and the exposure is priceless. It’s really expanding the classroom as best we can.”

It’s been a valuable relationship, said Denise Guzzetta, vice president of talent and workforce development for the Sioux Falls Development Foundation.

“This year, we were in 14 classrooms such as this one, bringing in guest speakers to introduce students to different professions and connecting them with everything from employment tours to internships,” she said. “When you see success stories like Owen’s, you realize the difference that kind of intentional approach can make.”

For Vincelli, the program brought a lot of value.

“We had a lot of speakers, and it opened my eyes to all the opportunities everywhere,” he said. “We had POET come in and were able to look at their job list and all their plants. There’s so many opportunities you don’t even think of for construction management.”

At Brandon Valley, there’s an intentional effort to connect students pursuing tech education with Build Dakota Scholarships, principal Mark Schlekeway said.

“We have a number of students Career Connections has assisted in that process, along with the explosion of our internship program,” he said. “We’re trying to build a community of future leaders, and I really view this as bridging the gap to connect students with potential careers in the community where they live. That’s where Career Connections has done a nice job opening students’ eyes to what you can do here without moving to a bigger area.”

At Journey, the team provided a clear sense of a career path early on for Vincelli.

“For two summers, I’ll do internships, and after school, I’ll be here three years, and they explained how they step me up within project management, or there are other pathways I can look at within Journey Group if I’m interested in different areas of the company. I can work my way around and figure out what I’d like to do.”

Three construction workers observing a project

At Journey Group, “there are organized career paths for new hires like Owen,” said Brandy Nielsen, workforce development director. “They do certain tasks to get to one level and complete additional tasks to get to the next, so there’s no question what you have to do to advance, and we’ll coach you where you need development to advance in your career path.”

Even in high school, students can job-shadow to get a better sense for the opportunities, she said. Journey offered three Build Dakota sponsorships this year and had two that started last year.

“It’s worked really well for us,” said Jared Gusso, who leads the SFC Civil Constructors division. “We’re trying to keep our in-state kids here, and having that ability to jump-start their career without a bunch of student loans is really a win-win.”

A student who aspires to be a superintendent will be coached early, he said. That includes being part of phone calls with subcontractors, included in weekly meetings and given tasks that involve calling vendors.

Three construction workers walking on a roadway

“They get to experience things first-hand while going to school, and it gives them an advantage when they come out of school,” Gusso said.

One former Build Dakota scholar now is the project manager on work SFC Civil Constructors is doing for the U.S. Army Corps of Engineers at Gavins Point Dam, he said.

“He’s really doing awesome, and because of the approach we take while they’re still in school, they graduate and have a jump-start. They know what the expectations are, they know the people, and hopefully it gives them a little more confidence and the ability to really go.”

Journey’s approach is a model for others, Guzzetta said.

“This is how you tackle workforce needs: investing early and committing to development at every stage of the employee’s career,” she said. “We can help introduce young people to opportunities in our community, but it’s exemplary employers like this that set them up for success.”

To connect with the Sioux Falls Development Foundation’s Career Connections program, email deniseg@siouxfalls.com.

South Dakota ranked No. 11 best state for business by Chief Executive

When looking to start or grow a business, location is an important factor to consider.

Annually, Chief Executive Group conducts a survey of CEOs nationwide to determine the best and worst states for business. In 2025, South Dakota has earned the No. 11 spot as a best state for business.

With no personal or corporate income tax, South Dakota offers a friendly business environment with a skilled workforce and a quality of life that has been recognized nationally, making it the perfect next location for starting or expanding a business.

“Increasingly untethered from traditional, big-city economic centers, companies are gravitating more and more toward states that offer that trifecta of business friendliness, workforce readiness and a better, less expensive quality of life,” the article releasing the findings says.

See more about the ranking and see how other states compared by clicking ‘learn more’ below.

South Dakota ranked No. 3 best state for doctors (2025)

As physicians decide where they want to practice, each state can differ, making it important to consider various factors such as average wages and quality of the public hospital system. In a new ranking by WalletHub, South Dakota has been ranked the No. 3 best state for doctors.

“In light of the cost of pursuing medicine and the difficulty of the job, it’s important for doctors to live in a state that provides solid financial opportunities in addition to good working conditions,” the article releasing the rankings says. “To help doctors decide where to practice, WalletHub compared the 50 states and the District of Columbia across 19 key metrics. Our data set ranges from the average annual wage of physicians to the number of hospitals per capita to the quality of the public hospital system.”

See how other states compared in this interactive map, or click the ‘read more’ button below.

Massive health care integrated service center opens at Foundation Park

Avera Health and Owens & Minor Inc., a Fortune 500 global health care company, officially open their new integrated service center this week.

The 330,000-square-foot building is at Foundation Park in northwest Sioux Falls. A ribbon cutting is scheduled at 4:30 p.m. Tuesday on West Memory Circle.

Virginia-based Owens & Minor designs, manufactures and sources health care products. The company has provided medical supplies to Avera since 2012, but this is its first location in South Dakota.

Avera/Owens & Minor Facility in Foundation Park in Sioux Falls, SD

The company is leasing more than 170,000 square feet and expects to employ about 50 people there.

“This state-of-the-art facility will be used to distribute essential medical and surgical products to health care organizations across a five-state region,” said Andy Long, executive vice president and CEO of products and health care services at Owens & Minor.

“It is designed to integrate operational efficiencies, providing real-time visibility and quality measures to help drive the efficiencies and high-service levels our customers expect from Owens & Minor.”

Products warehoused for distribution include anything that a hospital would need to operate, from N95 respirators to surgical wrap, gloves, gowns, kits for surgical procedures and more, he said.

“We’re proud to officially join the Sioux Falls business community, continuing our commitment to health care medical distribution in South Dakota,” Long said. “Having a stronger presence in the region drives enhanced efficiencies with current and future customers, strengthening our ability to support health care within these communities.”

Avera will occupy about 155,000 square feet and has started to move in with a phased approach, aimed at being fully operational by midyear. The facility creates an integrated service center hub for managing and coordinating medical supply logistics.

Shelving in a warehouse

“This building allows us move products, supplies, pharmaceuticals and more out of smaller spaces throughout our organization, bring them into one building and service back out to the masses in a more efficient process, instead of having a lot of different functions spread out,” said Sara Henderson, vice president for supply chain at Avera Health.

It will house numerous Avera services, including:

  • Centralized pharmacy services.
  • Supply chain, serving as central distribution for supplies for Avera hospitals, clinics and long-term care centers.
  • Biomedical engineering, the department that maintains medical capital equipment, including patient monitors, beds, diagnostic technology and more.
  • Home medical equipment distribution center.
  • Print shop.
  • Courier operations.

There’s also space for larger medical products, including capital equipment that can be staged for other buildings, such as the new women and children’s tower at Avera McKennan.

supplies on shelves

“We’re also able to bring our home medical equipment and our hospital business together in the same space, which creates better flow and more efficiency,” Henderson said. “Throughout the process, we’ve discovered ways to maximize the expertise within our organization and create added value.”

The Avera Integrated Services Center will consolidate Avera outpatient pharmacy operations as well as the Avera hospital pharmacy distribution center.

“There will be many efficiencies gained in our processes for medication procurement, storage, compounding, dispensing and inventory management,” said Melissa Goff, vice president of pharmacy at Avera.

dispensing machine

“By streamlining medication distribution tasks, this will allow more time for our pharmacists to focus on direct patient care and optimizing therapy outcomes.”

The additional space also will allow for Avera to procure bulk, cost-reduced pharmaceuticals, as well as “anticipatory purchasing of products experiencing national shortages in an effort to meet the needs of our Avera hospitals and clinics,” Goff said.

The connectivity to Owens & Minor is an added benefit, Henderson said.

“We have a door that literally goes into their space, so we can coordinate logistics of delivery instead of having multiple trucks going,” she said. “We’ll be able to work closely together to understand inventory levels we’ll want to have stored on their side, plus they’re four hours closer now. So that gives us even more resiliency to get our deliveries to sites.”

loading docks on building

For Owens & Minor, the location “allows for our distribution operations to effectively serve communities across a five-state region,” Long said.

The new building is the latest to open at Foundation Park, which added FedEx Freight recently and has seen construction begin on the new CJ Schwan’s Asian food production facility.

“We are thrilled to have both Avera and Owens & Minor joining the list of tenants in Foundation Park,” said Dean Dziedzic, vice president of economic development for the Sioux Falls Development Foundation.

“This is a perfect fit because it meets our mission of landing companies in some of our key industries: health care and biosciences. Also, both of these companies will pay well above median wages.”

Both sides of the building will utilize technology.

The Avera side will incorporate robotics, both in a conveyor format within the specialty pharmacy area and as a way to move product from one place to another throughout the building.

conveyor system

Robotics within the pharmacy operations will improve efficiencies in medication procurement, dispensing and transport, as well as assist in the repackaging of medications.

“Pharmacy automation can also improve safety and accuracy in dispensing medications by adding another layer of verification through barcode technology,” Goff said, adding that also frees up pharmacists to focus more on clinical work and patient engagement.

conveyor system

“I am beyond excited for the opportunities that lie ahead given the advanced technology, additional space, integration and collaboration that will now be at our fingertips with this new building. It will take our ability to serve our communities to the highest level and remove many barriers that currently exist to expand pharmacy services and improve the patient experience.”

a large industrial machine

Owens & Minor will use augmented reality through “Vision Pick technology.”

“This technology, which is device-driven, is used to drive the picking of products within the facility to enhance efficiency,” Long said.

Positions range from supervisors, operators and coordinators for warehouse, transportation, inventory and logistics. To view all current job openings, visit owens-minor.com/careers.

Avera largely is relocating employees from other sites to the new building. There’s also room to expand as needed, Henderson said.

“This building has the ability to scale,” she said. “We have space in each area to grow into as we go.”