I’m a bit of a futurist. I’ve always enjoyed thinking and debating with friends and colleagues about what the future will hold.

Seeing trends before they become fully adopted and understood is a key to doing business. But you don’t need me to tell you that. Chances are, if you’re running a successful business, or have been successful in your career, you’ve been adept at finding resources that provide a glimpse into what’s ahead.

When I meet with people, I often reiterate our mission: To help businesses do business better. And to do that, I always say we have the particularly difficult task of helping our readers see into the future. 

Yes, what happened yesterday is important for context and to understand how things are changing. But for a reporter, the challenge of reporting a story that helps you see what will happen tomorrow, a year from now, or even 10 years from now, is a much greater task. When achieved, the story can truly prepare you to do your business better.

That’s our goal. I want to help you understand a challenge or a new initiative or a changing trend with enough lead time to be able to react and adapt your business to it.

And what better way to do that than to lean on the expertise of 16 experts from an array of industries. 

This issue is one of my favorites each year and is a joy to edit, because the experts are identifying trends and issues that businesses are going to have to wrestle with.

Not only do I personally benefit from their wise prognostications, but they generate potential stories for our reporting staff.

I hope you enjoy this look into the trends of 2016 and beyond.

– Chris Conetzkey, Business Record editor 

Way too early predictions

This year we added a little twist. In addition to asking our experts for a trend in 2016, we asked them to have a little fun, go out on a limb and make a prediction for their industry in 10 years. Yes, 10 years is a bit out there, so please cut them some slack. But our hope is this is a fun way to provide a glimpse at what the future could hold. And don’t worry, experts. In 10 years, we’ll be sure to come back and hold your feet to the fire for these predictions.

Transportation

Dylan Mullenix
Assistant director, Des Moines Area Metropolitan Planning Organization

Human-scale streets becoming norm

Trend: City streets designed at the human scale – for people on foot, in mobility devices, on a bike or riding mass transit, while still accommodating car traffic – are becoming the norm.

Impact: City streets increasingly will be designed for safe and comfortable travel by humans, whether on foot, in a wheelchair, on a bicycle or catching a ride on mass transit. Accommodating vehicle traffic will remain an important criterion for streets, though no longer the primary criterion.

Streets designed at the human scale, sometimes called complete streets, are not one-size-fits-all but do share many common characteristics. They generally feature narrower lanes in urban settings to slow traffic speeds and decrease the crossing distance for pedestrians. They frequently include adjacent sidewalks, on-street parking, protected bike lanes, transit stops, roadside trees and buildings close to the street. 

Many groups with varying interests are pushing for human-scale street design. Economic development professionals point to the desirability and increased property values of walkable places. Public health advocates, from the director of the Polk County Health Department to the U.S. Surgeon General, are urging more active transportation networks to improve people’s health. And advocates for both younger and older generations, notably the Des Moines Social Club and AARP Iowa, are united in the desire for more transportation alternatives to attract young professionals and empower seniors to age in place. 

Governments are responding. Congress has moved to require cities to build complete streets. And the Federal Highway Administration is proposing to eliminate outdated criteria for street design that encourage highway-style designs in urban settings in favor of giving more control to local governments to design streets that better fit within city environments. 

Local governments in the metropolitan area are working to put these concepts to ground. The city of Des Moines is working on a walkability study that will examine returning to a two-way street network in downtown Des Moines. Windsor Heights is pursuing a redesigned University Avenue that improves walkability and ties the trail network to on-street bike facilities. 

Even the private sector is getting behind the push for human-scale design. Just this year, the Wellmark Foundation committed $75,000 to a grant program to encourage local implementation of complete streets projects. All the applicants wanted to know: Can we do more?

Way Too Early Prediction: In 10 years …

The “Internet of Things” will have seriously disrupted the transportation system as today’s emerging technologies – autonomous cars, data-driven “pop-up” public transit, automated robotic parking – begin moving toward mainstream.

Economic Development

David Maahs
Executive vice president of economic development, Greater Des Moines Partnership

 Technology will dramatically affect the workplace and our lives, specifically technology that is not part of our everyday lives right now, such as the Internet of Things, driverless cars, robotics, drones, additive manufacturing (3-D printing) and personalized medicine.

Energy & Environment

Larry James
Attorney, Faegre Baker Daniels

Sustainability drives economic development

Trend: Cities increasingly are turning toward sustainability to spur growth.

Impact: Not long ago, environmentalists scorned cities. Cities were polluted, crowded and dirty places where industrialists ruled and commerce grew at the expense of the environment. Over the past few decades, however, cities increasingly have been seen as the choice for environmentally friendly development patterns and efficient use of resources. 

Vibrant pedestrian- and bike-friendly cities offer a low-carbon alternative to suburban development and a competitive advantage for businesses looking to attract employees and customers to a unique environment. 

Cities that are walkable and have extensive on-street bicycle infrastructure and robust transit systems not only are environmentally friendly, but attractive to millennials who would prefer to be on their phones rather than behind the wheel. Increasingly, cities around the globe are recognizing the importance of offering this choice as a means to remain competitive.

At the fall 2013 Urban Land Institute conference, Chicago Mayor Rahm Emanuel explained that sustainability is good economic strategy: “As we add more and more bike lanes, we continue to recruit more companies and more and more workers who work in the new digital economy. So these types of investments actually lead to economic growth. . . . I do believe [that] in this era of renaissance for cities across America and across the world, having that strategy of economic growth that embodies and actually embraces sustainability is the wave of the future.”

Greater Des Moines has made great strides in this direction, but more must be done if we are to remain relevant in the 21st century:

• We must implement bus rapid transit.

• Our trail system is among the largest in the country, but if it is to be used for more than just recreation, it must be connected to a robust on-street protected bike lane network.

• Cars must share space with bicyclists and pedestrians if our downtown is to become truly walkable.

By enhancing the already inherent sustainability of our city, we can unlock its economic potential.

Way Too Early Prediction: In 10 years …

As self-driving cars quickly lower demand for parking, parking garages and surface lots in prime locations will make way for new development, further driving the shift to the central city.

Tech & Innovation

Bill Adamowski
Director of innovation and entrepreneurship, Iowa State University 

Big data and advanced analytics 

Trend: This year will be the point where big data goes from an extremely hyped concept to one of wider adoption, with those who truly integrate advanced analytics into their businesses gaining a significant competitive advantage.

Impact: We live in an ever-increasing world of data. With the advent of social media to the increasing number of Internet-connected devices (Internet of Things), the amount of data we now capture goes beyond staggering. Up until now, most of this data has gone unmined and hasn’t produced much corporate value. That is changing.

For many companies in Iowa, 2016 will be a critical year in taking advantage of this trend. Companies that engage in this, and truly integrate advanced analytics capabilities into their businesses, will gain a competitive advantage. By “truly integrating,” we are referring to not only getting customer insights through your analytics but actually doing something with them. Making insights actionable and driving an increasingly better customer experience are what big data and advanced analytics are all about.

How will we see this? In farming, you will see this in the implementation of precision agriculture, not just talking about it. In fact, you will hear people saying things like “it’s all about the data.” In retail, better customer insights will lead to better customer experiences and higher margins. This may be accomplished through better store layout, higher-margin product placement, loyalty programs and real-time offers. How should companies engage in this trend?  We are firm believers that collaboration is critical in this area. Going into a corner and developing your analytics and plans in a vacuum is not the best approach when it comes to driving your advanced analytics strategies. Why? Because this area is still emerging and things are changing very rapidly. It is important to learn from others: What works for them, how are they doing it, what tools and techniques work for what, and how do I find qualified people?

One way companies can engage is by joining a group like the Analytics Leadership Council here in Iowa. This group was spawned by the Technology Association of Iowa and has representation from Kum & Go LC, Wells Fargo & Co., Vermeer Corp., Workiva Inc., Athene USA, Kingland Systems Corp., Deere & Co., Principal Financial Group Inc., Iowa State University and many more. The group has just formed, but based on the level of interest and participation, it will more than likely grow very rapidly. The goal of this group is to bring the heads of analytics companies together in a forum that allows them to learn, share and experience firsthand to increase their own companies’ capabilities.

Way Too Early Prediction: In 10 years …

Household company names of today will be extinguished. These companies will disappear, not because they didn’t have great products or service, but because they lacked the expertise on the data front.The future competition for many industries is really in data. Today, we know data is important. In 10 years, we will know that data is the key competitive battleground for success and survival.

Insurance & Investments

Deanna Strable
president of U.S. insurance solutions, Principal Financial Group Inc.

Nontraditional families will drive business, insurance changes

Trend: What most of us know – or think we know – is that the traditional family structure is shifting. Cohabitation, delayed adulthood, boomerang children and multigenerational households are becoming more the norm. Understanding the changes, both significant and impactful, is crucial within the business community. 

Impact: Here are some of the factors driving these trends: 

• Nearly half of all births (for the generation under age 35) are now outside marriage. 

• The number of new marriages continues to decline at a slow but steady rate, and only about half of all Americans are now married.

• Almost one-quarter of young adults (ages 18-34) have “boomeranged” back home due to economic conditions.

• Children often reach their mid-20s to late 20s before they become self-sufficient.

Whether it’s about serving a dynamically changing customer base or attracting and retaining talented employees, businesses that recognize and adapt to these shifts will be well-served.

The impacts extend to the insurance industry as well. Because the worksite is a primary means for workers to gain access to insurance, we are already seeing changes to employer-based insurance that reflect these shifts. For example, mandated health insurance covering children up to age 26 and domestic partner coverage are now both commonplace. 

But more progress is needed. More and more people are relying on their loved ones in nontraditional ways. Yet this comes at a time when life insurance ownership is at its lowest level in 50 years and more than two-thirds of American workers don’t have access to income protection in the event of a disabling condition. For parents, especially those nearing retirement, they are increasingly finding that they are underprepared, causing them to delay their retirement.  

Solving these needs is not only possible, but essential. And local businesses play a part. Look at your business model and ask hard questions about whether you’re positioned to meet the needs of these emerging consumers as your customers. As an employer, think about how you can offer cost-effective benefit plans that not only appeal to your workers but also meet a gap that may exist in their financial security. After all, they’re your employees, and to grow your business, you need talented people who are healthy, actively at work and productive.

Way Too Early Prediction: In 10 years …

The opportunities that come with technology advancements will bring great change. The industry is evolving 24/7 because of the rapid speed of technology. We must continue to evolve and be innovative to stay relevant in our industry. By continuing to focus on solving our customer’s problems rather than offering them products, we will be in the best position to change quickly with an ever changing industry.

Health Care

Richard Belloff
Assistant professor of Master of Health Administration program, Des Moines University

Medicare cost shifting will drive higher employer premiums

Trend: Medicare already increases your own health plan costs in a big way, and this “cost shifting” is likely to increase in the years to come.

Impact: You may have heard about this but paid little attention. After all, Medicare is for retirees, and you already provide your employees with group health insurance. 

Hospital executives have long known that Medicare (and Medicaid, for that matter) reimbursements do not cover the actual cost of treating the elderly and the poor. The latest estimate is that Medicare pays about 88 cents for every dollar of care provided. In the aggregate, this creates an estimated shortfall of $5 billion to America’s hospitals. To survive, hospitals rely on charging commercial health plans more than their costs to cover these Medicare/Medicaid shortfalls. Indeed, employers have long been subsidizing federal and state governments through higher insurance premiums. Many employers do not know this, but in this case, ignorance is certainly not bliss.

Medicare wins, employers lose. Sadly, the future for employer health plans seems even gloomier. Under the auspices of the Affordable Care Act’s “Value-Based Care” umbrella, Medicare is making significant changes to its reimbursement strategies, including bundled pricing, accountable care organizations and medical homes. All of these initiatives have one underlying goal: reduce Medicare per capita spending dramatically.

In a perfect world, providers’ costs would also be reduced as more efficient and effective care models result in better patient outcomes. The rub is that there is little evidence that these cost reductions will actually occur. If they do not, health care providers will be stuck with decreasing margins on patients that already require cross-subsidies via higher employer insurance rates.

What can an employer do? In the short run, review your health plan rates with your carrier or consultant to see if benefits and/or employee contributions can be changed. If you are not self-insured at present, investigate that option. Finally, call your elected officials and complain. Is it really equitable for you to be subsidizing governmental health programs that you are already taxed for?

Way Too Early Prediction: In 10 years …

Employer-based health insurance in the United States may be a thing of the past. Why? Demographics and cost shifting is the short answer. Over the next 10 years, the number of Americans covered by Medicare will soar to the highest number on record (thank you, baby boomers). One can expect Medicare total spending to greatly exceed receipts, placing even greater pressure on them to reduce payments to health care providers. This, in turn, will bring about more cost shifting to employer-based health plans. As employer plans continue to bear the burden of higher costs, it won’t be long before employers start sending their employees directly to government exchanges. At that juncture, it may indeed be “lights out” for the health insurance market as we now know it.

Manufacturing & Logistics 

Paul Gregoire
Vice president, Emerson/Fisher
Current Iowa Association of Business and Industry chair

Manufacturers will focus more on service, e-commerce 

Trend: The manufacturing industry will show both a high-tech and a traditional face.

Impact: From a traditional point of view, we will see a heavier emphasis on parts and service to companies that have greatly reduced capital project spending. Many capital-intensive sectors have reduced business expansions and new building projects. As a result, keeping their existing infrastructure operating means more service work and the installation of replacement parts. 

On the higher-tech side, we will see more integration of e-commerce systems among customers, distributors, logistics suppliers and other parts of the manufacturing supply chain. The expectation is that each of these groups will integrate their business systems in some fashion. This will provide better visibility and better planning capability, minimize touch points and allow for more metric-based reporting in every transaction, while improving delivery times and reducing errors.

A third technological trend we will see is a growth in the use of 3-D printing with powdered metals. Also called additive manufacturing, 3-D printing focuses on the fusion of metals as they are being deposited in a print field. This process is still primarily used to make prototypes of products and produce tooling, but companies desire to move into more sophisticated part/product manufacturing.

A fourth trend is that the need for middle-skilled employees will remain robust. Demand remains high for workers to fill jobs requiring less than a bachelor’s degree. As such, it is expected that from an education and training perspective, our high schools and community colleges will continue to have an important role to play by focusing heavily on occupational training for middle-skill jobs. In Iowa, the demand far outweighs supply for machinists, nurse practitioners, welders, customer service workers and many other occupations requiring less than a bachelor’s degree. Emphasizing middle-skills training will assist low-income workers in raising their earning potential, which also expands the candidate pool of available middle-skilled workers.

Way Too Early Prediction: In 10 years …

U.S. manufacturing jobs will be a shadow of their former selves without a huge emphasis on middle-skills training. We are the most ingenious country in history, but with no one in the “pool” trained to manufacture our products, it would be a travesty to have to make them elsewhere.

Wellness

Jami Haberl
Executive director, Iowa Healthiest State Initiative

Getting back to basics — walking 

Trend: A movement away from the doctor’s office to solve all of our health problems and looking at how our communities and workplaces affect our physical, social and emotional health.

Impact: We make hundreds of decisions a day that affect our health, and many of these decisions are based on the environment in which we live and work. Our culture has shifted away from the most basic physical activity our body was designed to do — walk. If we want to help Iowans improve their overall health and well-being, we need to re-evaluate how our communities and workplaces are being built to encourage walking. 

Walking is one of the easiest, affordable and accessible forms of physical activity children and adults can engage in daily. It can serve multiple purposes, such as to go to school, work, or the store, or to exercise and have fun. Walking is easiest when it’s built into everyday activities and locations where we spend the majority of our time.

The benefits of walking are astounding. Studies have shown that walking has a positive impact not only on our physical health, but also on our social and emotional health. Getting together with co-workers, family or friends for a 30-minute walk increases social cohesion in the community, a major factor influencing one’s social well-being. Beyond the health benefits, enhancing walkability can benefit communities in other ways by improving safety, supporting local economies and reducing air pollution. 

Walking may seem too simple a solution to our complex health issues, but often we overlook the basic and simple solutions to resolving complex problems. It’s time to change the course of our future one step at a time and get back to what our bodies were built to do — walk.

Way Too Early Prediction: In 10 years …

The baby boomer generation will be between the ages of 61 and 79, living in rural and urban neighborhoods rebuilt to support walking or riding to the local stores, school and business district.

Marcy Klipfel
Senior vice president of human resources, Businessolver 

Generation Z enters the workforce

Trend: Tailored offerings become even more important as Generation Z enters the workforce.

Impact: It’s a reality for those of us who entered college in the mid-1990s that those who were born at the same time are about to enter the workforce. 

Dubbed Generation Z, the oldest of these born-tech-savvy youngsters will jump into entry-level positions in 2016, bringing the generational count in companies to four. 

All of these generations bring their own perspectives. For example, Gen Xers tend to be self-reliant and savvy, millennials are inherently ambitious and confident, and baby boomers are collaborative and optimistic. 

The added Generation Z means that human resources departments need to be even more conscious of how their companies are rewarding, team-building and culture-creating within the office. 

For example, the benefits that a person in their 50s selects are likely much different from those chosen by someone in their 20s. Tailored benefit offerings will become even more vital in 2016. 

With 90 percent of employees choosing the same benefits year after year according to many studies, it’s clear that employers need to offer employees tools to help select benefits that are right for them.

That’s why Businessolver’s approach factors in the financial, physical and emotional sides of the process to create a personalized strategy that helps drive solid decision-making.

Way Too Early Prediction: In 10 years …

Employees’ health information will be tracked with wearable technologies, which will house their medical information and overall health condition. Online tools will have evolved to a device that will instantaneously enroll the employee into the appropriate benefit plan based on the information collected by these technologies.

Culture

Jeff Chelesvig
President and CEO, Des Moines Performing Arts

Theatergoers’ experience extends beyond the stage

Trend: The live performance experience is much more than what is on the stage.

Impact: When I was growing up in rural Iowa in the 1970s, my only access to Broadway was listening to cast recordings of musicals on my stereo and reading the description of the show on the dust jacket to learn all I could about the show, the artists involved and how the musical came to life. 

Today we have more access than ever to information about Broadway and other forms of entertainment. Thanks to social media, websites and other digital platforms, we can instantly learn about the production, who’s involved, where it’s touring and what makes it unique. At Des Moines Performing Arts, we are constantly sharing information with our audiences through a variety of platforms to keep them informed, educated and engaged.

As a result, the trend I have seen and will continue to see in 2016 is that Central Iowans’ curiosity about live theater is no longer limited to the performance they attend. Our guests want an ongoing experience by participating in master classes, post-show Q&As and film screenings related to the show. 

In addition, I feel it necessary that our performance spaces are state-of-the-art, clean and safe. Our audiences extend their experience by going out for dinner at one of the many great restaurants in the area before the show, having a nightcap or staying overnight in Des Moines. And they appreciate the experience because their lives are getting busier and busier, making their time at the theater even more memorable with their friends and family.

One could say the instant gratification of what’s at our fingertips dampens the thrill of live entertainment, but I see it as a tool to enhance our guests’ experience. Live entertainment is still a beloved and in-demand art form, and we need to ensure that we are enhancing the experience beyond the stage in a variety of ways.

Way Too Early Prediction: In 10 years …

I predict Des Moines Performing Arts will expand our offering of world-class entertainment at affordable prices to Central Iowans of all ages and backgrounds, and that Des Moines will be considered one of the most desirable downtowns in the Midwest for living and for entertainment.

Sales & Marketing

Joey Taylor-Moon
Manager of interactive services, Strategic America
President-elect of the American Marketing Association Iowa

Building the customer relationship and personalizing the messaging

Trend: Technology continues to evolve and consumers will demand that brands communicate to them in ways other than mass marketing strategies.

Impact: Smartphone adoption continues to rise —  approximately 2 billion consumers worldwide are expected to own a smartphone by 2016 — allowing brands to connect with prospects or customers and build their relationship marketing. 

Because of this, today’s technology-savvy consumers expect that brands will speak to them and provide messaging that is relevant to their wants and needs rather than a blanketed message. 

Building a stronger loyalty to the brand and engaging customers in a deeper vein than just transactional will continue to benefit the brand in the long run, humanize the brand and make the overall brand more approachable. Companies that can do this will create loyalists and brand advocates. 

Brands will need to look at data in order to build those relationships and personalize the message that is delivered to prospects and consumers. Social media, new mobile technology, and communication apps have led to more online interaction and to personal information being readily available. 

Companies will need to set up unique goal tracking with an emphasis on metrics relevant to relationship-building to ensure that they are building solid personas that highlight habits, likes and dislikes.  

Finding the best use of the data and how to communicate to users will help increase the overall relationship and build brand evangelists.

Way Too Early Prediction: In 10 years …

Cash will be a thing of the past. The world today revolves around plastic and the conveniences that are offered by cards, ApplePay or PayPal. Payment technology will continue to be placed in cars, bicycles, clothing, all part of the Internet of Things. 

Retail

Jayne Armstrong
District director, U.S. Small Business Administration

Technology, generational shifts shape the retail industry

Trend: New value propositions influence online shopping demands, and the commercial bonding of baby boomers and millennials challenges small business owners to think outside the box. 

Impact: Since the successful launch of Small Business Saturday five years ago, the “Be Loyal, Buy Local” concept is quickly becoming part of the American psyche. Initial concerns of it competing with Black Friday or Cyber Monday are easily forgotten as more Americans embrace their local small business communities during the peak holiday shopping season and also throughout the year.

Online shopping is predicted to be at an all-time high in 2016. Savvy small business owners with online initiatives have a distinct advantage over competitors. Research shows that stores that offer online selection and in-store pickups expand their revenues with additional in-person sales. Expanded online shopping functions on social media sites, especially linked “buy” buttons, will drive sales growth.

Small retailers are best positioned to reap the benefits of consumers’ increased emphasis on customer service. In fact, large national retailers are now adopting new marketing strategies featuring smaller stores customized to local markets. Wall Street is learning from Main Street‘s personal touch.

Baby boomers and millennials will continue to influence the retail industry as the generations align in the years to come. Aging baby boomers’ evolving needs will shape new product development and marketing strategies. Tech-savvy millennial entrepreneurs are in the driver’s seat to capitalize on this market trend and develop innovative online tools for the retail industry.

The growing influence of millennial entrepreneurs and their emphasis on social values will significantly impact Iowa’s small business community, especially our women-, minority- and veteran-owned firms. The greater demand for supplier diversity strategies will lead more corporations, nonprofits and government agencies to implement new procurement policies and strengthen the accountability of existing programs. The Be Loyal, Buy Local economic development strategy comes full circle when these organizations support local Iowa retailers with small purchase card policies.

Way Too Early Prediction: In 10 years …

A decade down the road, Iowa’s once growing brain drain problem is a thing of the past. A forward-thinking Iowa addressed the issue head-on by creating a business environment that retained our best and brightest students. A new generation of retailers, spawned from StartUp Weekends, technology advancements and investments such as the nation’s largest 3-D printer, among a series of other initiatives, contributes to Iowa leading the nation with the fastest-growing economy.  

Real Estate & Development

Heath Bullock
Senior vice president, JLL

Sellers are few, buyers are many

Trend: Scarcity of commercial real estate will drive rental increases, higher property values and continued strong demand for investment properties.

Impact: Landlords will have the upper hand in negotiations to increase rental rates, and many will consider selling their properties as values rise and capital continues to pour into commercial real estate.

Due to rising rental rates, startup and service companies may be challenged to find an affordable space that works for their businesses. Property owners may find 2016 the right time to sell in this expansion cycle.  

A good example of rising rents is occurring in the industrial flex space market. The flex space vacancy rate has steadily dropped since 2010 and has remained around 4-5 percent for the last few years. During that same time, there has been limited construction, rising construction costs, tight labor markets and increased build times. This combination of conditions has allowed landlords to increase rents from $5 to $6 per square foot to $7 to $8 per square foot for newer flex properties. This trend will likely continue for new properties, and tenants will need to adjust their business models and forecasts to prepare for rental increases. 

Rental rates will also continue to rise in the office and retail sectors. Class A retail centers in high-traffic locations are attracting national and regional retailers. These tenants will pay the higher rents, while smaller niche retailers may find it challenging to compete for quality locations. All the same fundamentals will improve in the office sector. Tenants searching for space today are not always able to secure their first choice of space and the best locations. Landlords in the office market are demanding annual increases and providing fewer tenant concessions.

The shrinking vacancies and increased rental rates will drive up net operating incomes and keep cap rates at a low level. JLL has a long list of investors who are constantly asking us for investment properties in Iowa, which creates an environment where buyers outnumber sellers. In addition, there are multiple long-term debt options for buyers. Industry experts count available financing capital in the hundreds of billions of dollars.

Way Too Early Prediction: In 10 years …

Technology will dramatically change commercial real estate. E-commerce will continue to drive smaller building footprints (but with taller ceilings) in both retail and industrial properties; virtual meetings will change all office tenants’ workplace strategies and dynamics. Self-driving cars will begin affecting parking lots and garages, and pickup/drop-off points. Smart buildings, unique in design, will appeal to the millennials and will outperform their peers.

Jim Langin
Market president, Liberty National Bank

Value creation: A bank’s most important function

Trend: Small and medium-sized businesses are thriving in a turbulent and regulated economic environment due to an increased focus on creating value through key relationships.

Impact: Today’s business environment is constantly changing, and businesses need to find ways to innovate and adapt to change. Successful businesses are finding pathways to growth by using the one thing that remains constant: relationships. A business of any size in any industry needs many relationships in order to be successful. Some of these include a strong banking relationship along with strong accounting, legal and insurance relationships. 

Good banks are forming relationships with their clients and assisting with the overall growth of their businesses. Good banks do not just “lend money” any longer. Good banks provide value in the form of the right expertise, the right relationships and the right funding so the business can experience long-term and predictable growth. For example, banks will proactively meet at a client’s place of business, fulfilling a “trusted adviser” role during its strategic planning phase. This also creates value in that the bank can predict and plan for additional banking needs. 

Good banks understand the implications of helping businesses create and drive value through eliminating challenges with them as they grow. Because of this, a strong trend is that business owners are seeking to establish these banking relationships so they can deal with constraints easier, saving time and effort and allowing them to focus on their business.

Due to some banks increasing their focus on relationships, creating value and lending based on total client care, businesses are experiencing more growth, communities are building larger tax bases and people are securing better jobs. This creates an economic impact that puts communities in a better position to attract and retain the companies and the workforce they want and need. It’s an overarching benefit to the banking industry and to the communities they reside in.

Way Too Early Prediction: In 10 years …

Banks will provide value-added capital to businesses of all industries and sizes. This value-added capital will primarily be in the form of intellect and knowledge, not funding.

Law & Government

Colleen MacRae
Attorney, Dickinson, Mackaman, Tyler & Hagen

Modernize infrastructure to attract future investment

Trend: Public infrastructure, such as roads, bridges, water distribution systems and parking garages, are in desperate need of repair, modernization or replacement. Strategic prioritization and planning for future infrastructure projects is critical for a dynamic and competitive region.

Impact: Investment in infrastructure drives growth when it is aligned with community goals. 

This year, the focus on infrastructure will be especially acute at the state and local levels for three reasons. First, infrastructure projects are expensive. Under increasingly tight budgets, investments by local governments must be strategic and forward-thinking. Second, a great deal of public infrastructure is nearing structural obsolescence. Decisions regarding the future needs of the community and how to finance those needs cannot be deferred. Third, real estate development is changing the urban landscape, and prolific construction is generating physical opportunities for improvements and for public and private investment. 

The importance of public infrastructure and the consequences of inadequately funding it include health and safety risks to the public, decreased economic productivity and increased cost to taxpayers and ratepayers. 

Other less obvious consequences include lost or delayed economic growth opportunities. Strategic planning for infrastructure that begins too late, takes too long or does not pursue appropriate funding sources impacts a region’s ability to attract and retain financial and human capital. For example, when a community defers maintenance on existing infrastructure, such as repairs to a bridge or parking garage, the eventual funding of the project will compete with the funding for another important community priority, such as a new transit project. 

When evaluating the merit of infrastructure investment, community leaders, policymakers, real estate developers and financers must consider the total cost of a project, including lifetime maintenance and operation. This analysis is critical to identify projects with the greatest potential impact on economic growth and sustainability. 

Infrastructure decisions today will impact our city and state for the next century.

Way Too Early Prediction: In 10 years …

Data and technology will drive infrastructure decisions. Residents will help improve local infrastructure with mobile applications like Street Bump, which relies on smartphone technology and GPS to find and automatically report potholes to the local public works department. This data will be used by the city to dispatch repair crews and prepare long-term capital plans. 

Architecture

Greg Wattier
Senior principal, Slingshot Architecture

Designing for Des Moines’ sense of place

Trend: “Sense of place” is a catchphrase for designing site-specific architecture, and we will continue to see more place-specific design in Des Moines.

Impact: Upon arriving in Des Moines 12 years ago from Denver, I was asked if I’d help make downtown Des Moines more like Denver’s hip LoDo (Lower Downtown). Although flattered, I said “no” then, and still say “no” today. 

And here’s why: Des Moines possesses its own rich history, talented people and authenticity. Rather than importing stock ideas, I love to design buildings tailored to the individual “feel” or sense of place: the specific physical setting and the activities that will take place in and around it, all imbued with meaning that comes from understanding local history and future planning. 

In contrast, if a building or space can be interchangeably placed in different cities, or picked up, rotated and moved a few blocks without any design changes, that design is not specific to its place.

Take our downtown, where buildings were erected over time reflecting the city’s history, context, adjacencies, culture, climate and geographical attributes. When the built environment augments and responds to the “place” in unique ways, people are drawn to it, they use it, they are satisfied by it, and they form a prideful attachment.

That’s the energy that makes Des Moines so popular locally and nationally on Top 10 lists.

Des Moines offers a vibrant, multilayered “place” where more and more people want to live, work and play. We will continue to see more place-specific design as downtown parking lots are developed, major arteries are reinvigorated and the use of our rivers is embraced, all further contributing to our sense of place.

Way Too Early Prediction: In 10 years …

Des Moines will have a vibrant, healthy downtown with an identifiable, layered sense of place. In addition to the current momentum and progress, the new zoning code rolling out in 2016 will assist in encouraging architects and designers to design infill development to fit the unique sense of place inherent to Des Moines.