September-October 2021 by Connect Business Magazine

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CONTENTS

September | October 2021

10 COVER INTERVIEW

COMPANY PROFILE

Hewitt Docks, Lifts & Pontoon Legs

AmeriStar Manufacturing, Inc.

HitchDoc

FEATURES

DEPARTMENTS

HOT STARTZ!

Connecting Back

Strategic Partnership Series

Still Making Waves

38 52

Manufacturing Mindset

Business Snapshot

Tech Unlimited: Staying Ahead of the Changes

Cultivating Workforce Solutions

Leaderboard

Special Collaboration

Industry Insight

Ask A Professional

AFI Welcomes New Owners, Prepares for Growth Special Report

Empty Big-Box Spaces Find New Life

Mike Brennan

Hitchin’ A Ride To Success

NEW ULM

MN EIS

MANKATO

Dynamic Defense, LLC

MANKATO

OmegaStrap

Mankato Area Foundation: Mavericks on Philanthropy Employee Retention Credit

Connecting Southern Minnesota Business People Since 1994

Connect Business Magazine www.ConnectBiz.com

STAFF & CONTRIBUTORS

CIRCULATION

ADVERTISING

Publisher: Concept & Design Incorporated

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Call: (507) 232-3463

Editor: Jane Laskey

Published bimonthly

E-mail: sales@connectbiz.com

Art/Photography: Jonathan Smith

CORRESPONDENCE

Contributing Writers: Lisa Cownie, Nancy Zallek, Tonya Rule

Mailing Address: Connect Business Magazine P.O. Box 176 Nicollet, MN 56074

Production & Circulation: Becky Wagner Copy Editor: Julianne Kroon Printing: Corporate Graphics, N. Mankato Mailing: Impact Mailing 6

September | October

Send editorial correspondence to: editor@connectbiz.com

Information: connectbiz.com/advertising ABOUT CONNECT Locally owned Connect Business Magazine has ‘connected’ southern Minnesota businesses since 1994 through features, interviews, news and advertising.

Web: connectbiz.com

Connect Business Magazine is a publication of Concept & Design Incorporated, a graphic design firm offering print design, brand design, illustration and photography. Learn more at conceptanddesign.com.

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INTRODUCTION

Spotlight on Manufacturing

Jane Laskey EDITOR

Manufacturing is big in our state. According to the Minnesota Department of Employment and Economic Development, there are over 8,270 manufacturers statewide, and that number continues to grow. The Southwest region contributes a significant portion to that statistic, with 22 percent of the jobs in our area generated by the manufacturing sector. This month we spoke to Hewitt Docks, Lifts and Pontoon Legs in Nicollet, HitchDoc in Jackson and AmeriStar Manufacturing Inc. in Mankato. Despite supply chain issues and employee shortages, all are optimistic and experiencing a surge in growth. Once manufacturing is complete, Associated Finishing Inc. of Mankato puts the finishing touches on its customers’ parts with powder coating and liquid painting to enhance durability and appearance. A significant portion of AFI’s work is for the ag industry, which is why it is our Groundbreaker feature this month. Our September Leaderboard features Mike Brennan, of Brennan Companies, sharing his thoughts on the importance of staying optimistic and open to opportunity. Then David Schooff, of CBC Fisher Group, joins us to discuss Mankato’s declining big-box retail vacancies and the city’s prospects for new development in our Special Report. Finally, we welcome three HotStartz to the local business scene. Dynamic Defense and OmegaStrap are both based in Mankato. MN EIS is in New Ulm. Kudos to all three! Until next time,

Jane Laskey

September | October

Business Snapshot Sponsored Content

Staying Ahead of the Changes Chad Aukes understands all too well how a glitch in your home or business technology, whether it be computers, tablets, phones or other devices, can cost you greatly in time, treasure and talent. “Things change so quickly in this industry, it’s hard for people to keep up if it is not their main focus,” says Chad Aukes, owner of Tech Unlimited. “I saw people needing help and knew I could fill that need.” With 15 years of experience in the IT industry, Aukes set out on a mission to make sure his neighbors could get their technology issues resolved quickly and affordably. “With my experience, I knew I could help others,” says Aukes. “So I started Tech Unlimited in August of 2016. We can help with all sorts of technical questions (and) computer, tablet and phone repair. We install camera systems. We even have a laser engraver for those one-of-a-kind items.” He went out on his own because he understood that when people or businesses have IT issues, they can become vulnerable. Aukes wanted to help by making sure issues were resolved fairly. “I know when people are down with IT, it impacts everything,” he says. “I just want to provide technical services for reasonable prices and be able to do it my way. My way is fair, quick and thorough.” His way also adds a bit of a personal touch; in fact, he is often referred to as the neighborhood tech guy. Community is important to Aukes, and he says he is grateful for its support and his loyal customers. “We are a local, family-owned business with a big heart. You can trust us,” he says. “I live here, so making sure I work with integrity is very important to me. We truly treat our customers like family.” Tech Unlimited services all brands of desktop computers and laptops, as well as tablets, screens, phones and other electronic devices in New Ulm and the surrounding areas. Its customers include both residential and business clients. “No problem is too big or too small,” says Aukes. “I like the challenge of figuring out what the problem is, and I like seeing relief on the faces when I can offer an affordable solution.” For more information on Tech Unlimited, visit techunlimitedllc.com or call (507) 276-5059.

Pictured left to right: Nick Theil (Technology Specialist), Chad Aukes (Owner), Megan Williams (Office Manager) CONNECT Business Magazine

By Jane Laskey

If you've spent any time on a Minnesota lake, chances are good you've encountered a Hewitt dock or boat lift. Hewitt Docks, Lifts and Pontoon Legs first made a splash in the waterfront recreation scene with its portable Roll-A-Dock in 1971. Fifty years later, it’s an industry leader, and its products are still making waves with a reputation for superior craftsmanship, rock-solid construction and easy-to-install modular components. A family business in every sense of the word, Hewitt Docks was founded by Larry Hewitt and Linda Hewitt in 1971. They passed the torch to two of their children in 2016. Siblings Troy Hewitt and Sara Evans now own Hewitt Docks. Their brother, Dan Hewitt, was the company's sales manager for many years and continues to help the business seasonally. Their spouses, Cindy Hewitt and Kent Evans, followed them into the business. The four make a close-knit team, with Sara Evans serving as CEO, Troy Hewitt as COO, Kent Evans as CAO and Cindy Hewitt as CFO. The third generation of the Hewitt family is on deck and already learning the ropes. Continues

CFO Cindy Hewitt; her husband, COO Troy Hewitt; CEO Sara Evans; her husband, CAO Kent Evans.

CONNECT Business Magazine

50 Years of Success and Growth

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Tucked between old and new Highway 14 on the southern edge of Nicollet, the Hewitt manufacturing facility includes more than 20 buildings – 450,000 square feet of production area – on a crowded 22-acre lot. The growth continues, with a new building in the works. Its expanding sales network mirrors the growth of its manufacturing capacity: Hewitt products are sold by over 450 dealers stretching across the United States and Canada. Today Hewitt Docks customers span the globe. While the Roll-A-Dock put the company on the map, it is now one of literally hundreds of product options. Whatever you do on the water, Hewitt Docks has a product to make that experience better. Its offerings include a wide variety of docks, pontoon legs, upper decks and roofs, and canopy frames and covers. Hewitt lifts accommodate everything from jet skis to pontoons to floatplanes. Need a stairway or gangway to get from the bank to the water? They’ve got that covered, too. There are even products for the kiddos, including swim rafts, kayaks, and storage racks for paddleboards and lily pads. 2021 marks Hewitt Docks’ 50th anniversary. In a fitting tribute to this achievement, the company is giving away a 50-foot RollA-Dock on its website. Looking back on five decades of growth and change, the company has had a remarkable journey. The company that started with the purchase of a simple, small-town welding shop is now a major player in a competitive market. Business is booming, and the future looks bright. “The achievement is starting from zero and then putting the Hewitt name on the marine industry,” Troy Hewitt said. “We’re not just in Minnesota, not just in the U.S. The Hewitt brand is very well known everywhere.” Humble Beginnings When Larry Hewitt bought the Bauer Welding Shop in 1971, he was just looking for a way to support his family that would keep him close to home. Although trained as a machinist, he had been on the road working construction for too long. “I didn’t like being gone from home,” Larry Hewitt said. “My son was little. I’d come home and he didn’t even know me. I wanted to get into business for myself. I

September | October

Hewitt Docks | Nicollet

looked at different businesses – gas stations, mechanic shops – and I’d come back home and talk to Linda about it. I said I’m not going back on the road. So we made an offer and bought the blacksmith shop out.” A machinist with a can-do attitude, Larry Hewitt was handy with his hands and not afraid of hard work. His new business, Hewitt Machine & Manufacturing, Inc., was the perfect fit. “He liked to build things with metal, so that’s how he started. He welded, fixed lawn mowers, did anything he could do to make ends meet,” Troy Hewitt said. “When Larry bought the business, Bauer said, ‘I give him a year, and he’ll run it under.’ So for many years after that, whenever Larry would see him somewhere, he’d always tell him, ‘Still here!’” In those early days, Larry Hewitt had to be a jack-of-all-trades. He made repairs, sold lawnmowers and snowmobiles, and built everything from wrought-iron railings to metal corn bins to hog gates. “I did anything to turn a dollar,” Larry Hewitt said. “I plowed snow all winter, whatever it took to buy groceries.” Larry Hewitt built his first rolling dock as a favor to a friend with a bad back. His friend’s request was simple: he needed a dock that was easy to maneuver into and out of the water. Larry Hewitt designed a simple, lightweight dock with a solid support structure modeled on building rafters. He attached car tires for portability. It was a simple but elegant solution that made for quick and easy dock installation. His friend liked it so much, he wondered if Larry Hewitt would also build him a boat lift.

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50 Years of Success and Growth

“We drove around the lake and looked at a bunch of lifts, and he said, ‘We’re going to build that.’ It was winter, so we weren’t busy. So we went ahead and built them,” Larry Hewitt said. As soon as that first dock hit the water, it started attracting attention. So did the boat lift. Neighbors started asking where they could get one for themselves. Gradually, orders started trickling in. Though he didn’t realize it at the time, Larry Hewitt had created a product that would transform his business and change the trajectory of his entire family. That first dock became the prototype for the Hewitt Roll-A-Dock. “Roll-A-Dock put us on the map,” Troy Hewitt said. “There’s nothing that compares to it. We build it just like a bridge, and the wheels are braced front and back so it can take the push and pull time after time. There’s not another dock in the industry that you can pretty much put in 100 feet or more of dock, time after time, and it’ll still be the same 20 years from now. Nobody else in our industry does that.” Word got around, and sales increased. The more docks and lifts Larry Hewitt built, the more people seemed to want them. He decided to use the following winter to build up some inventory. “That was the first year we stuck our necks out for inventory,” Linda Hewitt said. “We made 13 to 15 of them, hoping they would sell. That’s how we learned you had to have the inventory. It was there when the people were ready for it.” Soon dock products were almost 50 percent of their business. Hewitt Machine & Manufacturing, Inc. had begun its transition to

becoming Hewitt Docks, Lifts and Pontoon Legs. It was a busy time, and the Hewitts learned the ropes as the business grew. Customers were requesting other types of docks and lifts, as well as related products like canopies. Larry Hewitt spent his time developing solutions for these new requests. Soon he needed seasonal help to meet demand. Linda Hewitt was the company bookkeeper, working from home so she could keep an eye on their young children. She also helped package nuts and bolts, lending a hand wherever it was needed. Those early years were exciting but challenging. “There’s no two ways about it. The first bunch of years were hard,” Larry Hewitt said. “We didn’t have enough money coming in to buy groceries, and she went to work at night. We went through some tough times, but we just never quit.” As Linda Hewitt puts it: “It wasn’t all gravy.” Eventually, the business found its feet and outgrew its original Third Street location. In 1974 the Hewitts purchased a lot just outside of town and built their first building. “It was a slough, so we hauled a lot of fill in to build that first 60-by-100-foot building. That’s all we could afford to do,” Larry Hewitt said. “And we thought we had the world by the tail.” Little did they know that this building was only the first of many the company would need as it continued to grow. “When we put the first main building up, Larry said that was

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Hewitt Docks, Lifts & Pontoon Legs | Nicollet

more than we probably ever would need,” Linda Hewitt said. “Every time we put another building up, I wondered how much bigger we would grow. But we did it in steps. We did it as we could afford it and as we needed it.” Growing Up In The Business The family business was always a part of life for the Hewitt children. The basement of their family home was transformed into the company’s canvas department, with seamstresses churning out canvas canopies. They woke to the sound of sewing machines every morning. Then, after school, they pitched in wherever they were needed. “We all grew up in the business,” Sara Evans said. “We all had miscellaneous jobs, like cutting rope to tie the canopies down. Both my brothers would come over after school with their friends, and they were in charge of the painting of the docks. It was just what we knew.” Growing up in the business instilled a solid work ethic in all the Hewitt children and paid off when the time came for them to assume leadership roles. They understood the company from the ground up. “Being able to do everything, from the grunt work to the entry-level stuff, it’s helped to get me to where I am,” Troy Hewitt said. “Having the know-how has definitely helped.” Troy Hewitt became an official Hewitt Docks employee right out of high school. It was still a seasonal business at this point, so he spent the off season working various jobs. It was a great learning opportunity.

“We were never busy year-round, so when we shut down, I worked (other jobs). I worked for a pizza place. I washed dishes. I worked for a local gas station. I worked for a construction guy. I hauled chicken manure and eggs. And I learned,” Troy Hewitt said. “I worked with a lot of different supervisors and superiors and owners. I never forgot what I didn’t like. I never forgot how I didn’t want to be treated. So I’ve kept what I learned, and I try to treat our employees the right way.” Sara Evans worked as a receptionist and in order entry, working in various office positions at Hewitt Docks until she gradually worked her way up to CEO. “It was an opportunity that we were able to be employees first,” Sara Evans said. “We were able to learn other aspects of the business first before we had to lead it. Our kids are doing the same thing. Both my nephews are here right now. They started out with the grunt work, and now they’re working their way up. My kids are only 11 and 12, so the most they can do is mow the lawn. But it’s nice to give the kids this opportunity.” As the first generation of Hewitts steps aside, the third generation is getting more involved. The youngest Hewitts and Evanses are growing up in the business just as their parents did. In addition to learning the many different jobs required to make the products, they’re also gaining firsthand experience of what it means to be an owner.

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50 Years of Success and Growth

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“Our kids understand that if you’re the boss, you don’t just get to boss people around,” Sara Evans said. “At school, they did this (Junior Achievement) program called BizTown. You had to decide if you wanted to be an owner or a worker. Everybody in our daughter’s class wanted to be an owner except for our daughter. She said no, ‘… because when they call in sick, my dad has to go to work. When something breaks down in the middle of the night, my dad has to go to work.’ It’s good for them because they see that we can’t just come and go as we want as business owners. There are times that you have to make sacrifices.” Sara Evans and Troy Hewitt officially became business owners in 2016. Like their parents, they are running a company, working with their spouses and raising children. But, you might wonder, does it ever get to be too much family time? “We get that question a lot: How can you stand working together and being together all the time? But we don’t see each other much at work. Our jobs don’t really cross over that much,” Kent Evans said. Company Culture The Hewitt clan is a pragmatic, hard-working bunch, but an undercurrent of humor and camaraderie enlivens their conversation and permeates their company culture. Cindy Hewitt describes it as “family-oriented, employee-focused, laid back and trusting.”

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September | October

Hewitt Docks, Lifts and Pontoon Legs has been selected as a 2021 Finalist in the Twin Cities Business Minnesota Family Business Awards. It will be recognized on Oct. 28 at the Hyatt Regency in Minneapolis. Congratulations from the Connect Business Magazine team!

Hewitt Docks | Nicollet

The company has 90 employees and 450 dealers. Hewitt workers are considered part of the extended Hewitt family; Hewitt dealers are their friends. Providing a good life for each and every one of them is one of the company’s top goals. The Hewitt family believes their employees’ happiness has a direct impact on the success of their business. “When we say family first, we mean our employees and our employees’ families come first. We give them flexibility. If they need to go home and take care of their child, we have empathy for what they are going through. We’re trying to make sure that their life is good, that they have worklife balance and that they know they’re appreciated here,” Cindy Hewitt said. One of the company’s mottos is “work hard, play harder.” It’s all about balance. “We’ve randomly brought our employees in and just said, ‘You know what? It has been a long week. Let’s call it quits at noon,’” Sara Evans said. When the second generation of Hewitts took the helm five years ago, they took measures to improve employee morale, benefits and compensation. The result was a decrease in employee turnover to less than 10%. The company also demonstrates its appreciation by recognizing employee birthdays and anniversaries, and celebrating Christmas and other holidays. In addition, monthly employee meals and small tokens of appreciation, like water bottles on a hot day or surprise snacks, send employees the message that they are an essential and valued part of the Hewitt business. “We like a lot of food. When the pandemic hit, we knew that the grocery stores were going to be crowded, so we sent them each home with 5 pounds of meat and rubber gloves and other essentials,” Sara Evans said. The Hewitt family is not afraid to roll their sleeves up and pitch in wherever they’re needed. It is not uncommon to find them all out on the production floor, working side by side with their workers. “Our employees see that we’re willing to jump in,” Sara Evans said. “This last year, we were so busy we needed all hands on deck. We were all out in the plant working.” Hewitt Docks also works to nurture and

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CONNECT Business Magazine

50 Years of Success and Growth

Life in Retirement When you’ve built a business from the ground up, letting go is not easy. Larry Hewitt and Linda Hewitt sold Hewitt Docks to their children five years ago in the fall of 2016, but they continued to work there for a while to ease the transition for themselves and their children. Linda Hewitt retired four years ago, and her husband followed her into retirement two years later. They’re enjoying the extra time their retirement provides for family and friends, but there are days they miss the hustle and bustle

September | October

of the business. “The hardest part for me was how much I missed working with Sara. She and I talked every day. We’d constantly holler across the hall. Once I left, I missed that part of it,” Linda Hewitt said. “I also miss some of the dealers, talking with them. They became our friends.” It was even harder for Larry Hewitt. It took an accident to sideline him and show him that it was time to let go. “I thought, ‘I can’t retire. I can’t sit still,’” Larry Hewitt said. “Then I had an accident out here and got hurt walking to work. My leg was busted up pretty bad. We talked about it and talked about it and decided it was time to back down.”

“He finally realized Troy could do it. Up until that point, I don’t think he wanted to admit that they could do it without him,” Linda Hewitt said. “To finally do it was tough,” Larry Hewitt said. “It took two years for

Hewitt Docks, Lifts & Pontoon Legs | Nicollet

me to move over to my man cave. I’ve got a couple of classic cars. I doodle around with them, and that’s about it.” Although fully retired, they remain involved in small ways. For example, Linda Hewitt chauffeurs her youngest grandchildren to activities so their mother can focus on work. She also enjoys some of the simple things she didn’t have time for before retiring. “I run with Sara’s kids a lot, so she doesn’t have to leave to do it. Then every Thursday, I have lunch with some other girls in town. That was something I didn’t get to do before,” Linda Hewitt said. “I’m not doing anything super special, but I’m sure busy. They always say you don’t know how you worked

a full-time job because you’re so busy after you’re retired. It’s just a different kind of busy.” Larry Hewitt often stops by to mow the lawn or run errands. “I come down here, but I’ve got to stay out of the way because everybody is so busy,” Larry Hewitt said. “It’s like a beehive, and they’ve got work to do.” Looking back at all they’ve accomplished, the Hewitts share a sense of pride in the business they built and the strong, capable family they raised. Every other year, the couple gathers their family together for a weeklong vacation away. It’s their way of celebrating all that they’ve accomplished over a lifetime of collaboration in work and marriage.

grow its employees. It provides opportunities for employees to learn new skills and grow into new positions, including training on new equipment, leadership and sales. “We’ve got a great crew right now. We try to take care of them the best we can to keep them here,” Sara Evans said. “If they stuck with us through this year, I think we’re golden because it was crazy. We’ve seen things we’ve never seen before.” Unexpected Pandemic Effect Speaking of crazy years, while Hewitt Docks had to deal with the nerve-wracking chaos of the pandemic just like any other business, 2020 ended up being a surprisingly good year. “Initially, we didn’t know what was going to happen, if it was going to shut our business down or shut our sales down. We thought people would buckle down and not spend,” Cindy Hewitt said. The company shut down a week before Gov. Tim Walz issued stay-at-home orders

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50 Years of Success and Growth

and remained closed for three weeks. Fortunately, everything was already in place for their busy sales season. The question was, would they be able to sell it? “We have 80 to 90 percent of our product ready to go by April 1,” Troy Hewitt said. “So last year when the pandemic came, here we sat with warehouses full of product and everything was being closed down. We had this massive amount of inventory, and we’re making payments on the company. What are we going to do? We closed for three weeks, and when we reopened, man, it opened and it opened hard.” What the Hewitt family couldn’t predict was how much the pandemic would affect the way people lived. The lockdown required remote work and time outdoors, making lakeside living all the more enticing. “It’s been a surprise. Everybody’s out on the water,” Cindy Hewitt said. “People are spending more time at their lake property and spending their money on lake property equipment.” As a manufacturer, Hewitt Docks was considered an essential service. Once the Hewitts figured out how to safely get back to work, they reopened. Their business took off like a rocket. “It was the exact opposite of what we thought was going to happen from the beginning, and it’s still going strong,” Kent Evans said. “We’re seeing this change in how people spend their time and their energy at home. That is going to carry on past this pandemic year.”

Behind the Scenes Hewitt Docks, Lifts and Pontoon Legs was recently featured on Made For The Outdoors TV. For a behind-the-scenes look at its manufacturing process, watch season 6, episode 3 at: Made For The Outdoors TV (http://www. madefortheoutdoors.tv/)

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Hewitt Docks, Lifts & Pontoon Legs | Nicollet

“As of June, all the product on our premises was spoken for,” Sara Evans said. “We’re booking so far out, trying to stay ahead of everything. Normally the Fourth of July is our cutoff where if people don’t have the product, they don’t get it till next year. We’re usually starting to ramp up for next year by this time; instead, we still have a ton of products to ship. We’re one of the few businesses that can say COVID was good for us.” It’s a trend that Hewitt Docks is betting will continue, making its products more desirable than ever. “People have realized that life is too fast paced. So they’re enjoying this time at home,” Troy Hewitt said. “Life is slowing down. I think it’s been a good thing.” A Notch Above the Rest When asked what sets Hewitt Docks apart from its competitors, Sara Evans jokes: “We put more love into it.” Joking aside, the family is very clear about what they need to do to stay on top of the pack. Top on the list: building a quality product that stands the test of time. Hewitt docks are built to last a lifetime. That’s not just wishful thinking; they can prove it. Many of the docks they made half a century ago are still going strong. “The docks Larry built 50 years ago are still out there and still being used today,” Troy Hewitt said. “As long as it didn’t get struck

by a storm and they continue maintenance, they can last a lifetime.” Product durability is due to a combination of quality materials, proven design and superior craftsmanship. “All our products are definitely overbuilt,” Kent Evans said. “We take them to extremes, and we build them so they last. Those extremes translate into the safety of the product.” Hewitt Docks ensures the quality of its products by controlling every aspect of its production process. “We definitely watch our quality. It’s what makes us,” Troy Hewitt said. “We do everything from start to finish. We job out very little. If we can’t make it, then we look elsewhere domestically. We control our manufacturing so we can control our product. We pride ourselves in this.” The company’s secret sauce is its attention to detail. The Hewitts constantly evaluate every aspect of their manufacturing; streamlining processes, adding quality checks and improving product functionality. “We’re constantly improving our products. Every year we clean up edges and change things to help open up production,” Kent Evans said. “We look for ways to make it more efficient and keep our costs down so we can stay competitive.” Once quality testing is complete, the Hewitt families enjoy putting their docks and lifts to the test in the environment they were designed for: the lake. Like their customers, they love a good day on the water.

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50 Years of Success and Growth

“We both have lake cabins, so we make sure we’re going there often enough to test our products as well,” Sara Evans said with a laugh. In recent years, the company invested in a roto-mold machine that enables it to manufacture its plastic bumpers and tires, ensuring these components are available when it needs them. It’s also opened up new revenue streams, allowing Hewitt Docks to sell parts to other companies, sometimes even their competitors. “We couldn’t get the product anymore from our suppliers. That pushed us into expanding into that area. We bought the old gas station next door, remodeled it and purchased the roto-molding machine,” Kent Evans said. “We can attach all kinds of different molds, and we expanded our CNC machines so we can make our own molds for whatever products we want.” The roto-molding capability makes changing product designs and customizing products simple. They can add names, change colors and create custom bumpers to meet their customers’ needs. “If somebody wants something changed, special, odd or different, it’s not a big deal because we do everything here,” Troy Hewitt said. To meet changing market needs, Hewitt Docks continually updates its product line. A high-end, customizable dock and a more aesthetically appealing staircase system are its latest product additions. In addition, plans are in the works to expand the company’s reach outside the marine industry, with handicap ramps and specialty roto-mold products.

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builder.

When combined, these practices make Hewitt Docks a formidable competitor in the marketplace. “People try to copy what we’re doing, but when it comes to price, they can’t. Because we do everything ourselves, we control our costs. We’re able to sell our customers something bigger and better for the same price as lesser quality, lighter products,” Troy Hewitt said. “Our customers always get their money’s worth.” Ready For Anything While Hewitt docks may last a lifetime, their customers’ tastes are constantly evolving. Special requests for unique widths, colors, canopies, and wireless remotes are growing more and more common. As a result, the company has created a special department to manage customer requests. “The clientele for our business has changed because lakefront property is becoming more and more scarce, so it’s more valuable,” Cindy Hewitt said. “More of the middle to upper class is buying from us, which in turn means they want more custom and fancier options.” The Hewitts have also witnessed a shift to larger boats. Gone are the days when fishing fans were content with a 16-foot motorboat. Today boats are bigger, which means docks and lifts also need to be bigger to accommodate the boats’ increased size and weight. “They might have been through three lifts because they keep buying bigger boats. That’s definitely changed from 50 years ago to now.

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Hewitt Docks, Lifts & Pontoon Legs | Nicollet

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50 Years of Success and Growth

It’s not a 40-foot fishing boat anymore; it’s a $180,000 wakeboard boat,” Kent Evans said. Hewitt Docks typically starts producing inventory nine months prior to the sales season to ensure it can meet demand. The Fourth of July weekend traditionally marks this shift from sales to production for the following year. Whenever possible, it ships products to dealers before winter sets in, allowing dealers to delay payment until the start of sales. This frees its production facilities for continuous manufacturing and sets its dealers up for a rapid start in the spring. When people begin to open their lake homes and start thinking about what they’ll need for the summer ahead, Hewitt products are ready and waiting. “We always believed in having inventory ready to go, so when spring pops we can truck,” Larry Hewitt said. Of course, there is an inherent amount of risk in this strategy. Funding must be secured, materials purchased and payrolls met long before payments start rolling in. The Hewitt management team has become adept at keeping one eye on their production schedule and the other on their purchasing forecast to ensure they have the materials they need when they need them. “It’s scary every year to put all that inventory into the warehouse,” Troy Hewitt said. “But it sets us apart from our competition.” This strategy was particularly beneficial in 2020. When the pandemic shutdown left some of its competitors scrambling to produce products, Hewitt Docks was primed and ready to go. As a result, 2020 was its biggest year ever. This strategy should also pay off in 2021, when supply chain issues are popping up everywhere and lead times for critical materials such as aluminum have jumped from four weeks to 14 months. Other manufacturers may be stopped in their tracks, but Hewitt Docks is moving ahead. Its materials were locked in long ago and will be there when it needs them for its upcoming production season. “A good relationship with your vendors is key. We’re loyal to our vendors, and so they do help us, giving us notice in advance if something’s going to go up, so we don’t have the big jumps that most (manufacturers) see,” Troy Hewitt said. Its product inventory also saves Hewitt Docks from having to make last-minute price adjustments. “Being ahead on the inventory allows us not to have the midseason increases,” Kent Evans said. “This year is a little different. Demand has been so high we are still building to sell this year. We’re constantly bringing more stuff in just because the sales have been so crazy.” The Hewitt team plans to keep riding the wave their momentum has created into the future. If the accomplishments of the past 50 years are any indicator, their future will be bright indeed.

THE ESSENTIALS Hewitt Docks, Lifts & Pontoon Legs 709 Old Highway 14 East Nicollet, MN 56074 Phone: (507) 225-3421 Web: hewittrad.com Facebook: HewittLiftsRollADock 24

September | October

CONNECTING BACK 5 YEARS AGO

SEPT/OCT 2016 Five years ago, Friesen’s Family Bakery & Bistro owners Tony Friesen, Natasha Frost and Spencer Vanderhoof, graced our cover. Also featured were Triveon, of New Ulm, and True Facade Pictures, of Mankato.

10 YEARS AGO

SEPT/OCT 2011 A decade ago in our September/October issue, we see Brad Radichel, of Mankato’s Condux International, and Condux Tesmec, on our cover. Also featured this issue were August Schell Brewing Company, of New Ulm, and Express Diagnostics International, of Blue Earth. CO N G R AT U L AT I O N S

15 YEARS AGO

SEPT/OCT 2006 Taking a look back 15 years ago, Pam Year, MRCI WorkSource executive director, was the main feature in this issue. Also featured were Itron in Waseca and The Candyman in New Ulm.

20 YEARS AGO

SEPT/OCT 2001 Twenty years ago, Bob Alton, of what was then HickoryTech (now Consolidated Communications), was on our cover. Other featured businesses were Braun & Borth, of Sleepy Eye, and Shady Oaks, of Waseca.

JEAN BYE!

Your dedication to Dotson Iron Castings, its employees and the Greater Mankato community is worthy of the highest praise. Your contributions to the foundry industry have been considerable. And your influence will resonate for years as Dotson Iron Castings builds upon the foundation that you helped strengthen. After 47 years, we wish you happiness and satisfaction in your next endeavor–retirement.

www.dotson.com CONNECT Business Magazine

LEADERBOARD

Why did you choose the Mankato community for your business? Mankato is a steady, economically diverse and thriving community. We have many economic sectors covered, such as ag, education, medical and industrial. Cathy and I couldn’t have picked a better town to start our company in. I believe Mankato has got something special going on. Here many of us, though we are competitors in our individual business sectors, respect each other. We want everyone in our industries to do well. As a community we talk. In both the private and public sectors, we solve problems and meet challenges together. There’s not a zero-sum mentality.

Mike Brennan The Brennan name has been a fixture in the Mankato construction and real estate development scene for 27 years. Founded by Mike Brennan and Cathy Brennan in 1994, Brennan Construction offers general contracting and construction management services. Its sister company, Brennan Properties, opened in 2000, adding development and property management to the mix. With offices in Mankato and Minneapolis, Brennan’s construction and renovation projects are sprinkled throughout Minnesota. Recent projects include Bridge Plaza, a five-story mixed-use building in the heart of Mankato, and the Wings of Newport, a 200-unit apartment complex in Newport. In this month’s Leaderboard, Mike Brennan shares some of his philosophies on leadership and business success. Tell me about your background. I’m a Mankato boy. I grew up here. I received a civil/structural engineering degree from the University of Minnesota and an MBA from St. Thomas. I spent seven-plus years with Ryan Companies, a large developer out of the Twin Cities. With (wife and partner) Cathy’s CPA background, we came to Mankato in 1994 and started 26

September | October

Brennan Construction together. Cathy and I used to daydream about what it would be like to start our own business. We thought, “Well, why don’t we try it?” We tried to think in terms of, what’s the worst that can happen? Well, if we don’t make it, then we’ll just have to go out and get jobs like we have right now. So, we did it. Our first project was for Young America in 1994. It was to replace a door in their office. The check was $500, and I remember looking at the check with Cathy and thinking, “Wow, we made $500!” It didn’t even matter that we had $440 in expenses. It was our first payment received. Since that first project, we’ve had incremental growth in both the office and the field, one person at a time, over the last 27 years. Where is your business at today? Today we have 18 employees and two offices. Seven years ago, we opened a second location in Minneapolis. Our son, Joe Brennan, runs that office. We are set up to do large projects. Last year sales were close to $50 million, so we’ve had growth. When some people saw Bridge Plaza going up in Mankato, they might have thought, “Wow, you’re able to do this?” Yes, we are. Our recently completed Newport project at over $20 million is actually quite a bit larger than Bridge Plaza.

How would you describe your leadership style? My leadership style is to let people swim on their own and at the same time offer support if needed. I try to be encouraging because construction and development are hard work. When you have good people, it works. I love my job right now because we have the younger generation of people in the office and in the field taking hold of their roles. I don’t need to do the day-to-day work like I used to. I get to oversee what’s going on with our companies, and it’s a lot of fun. I’m enjoying mentoring. I just read a wonderful book called “The Cave and the Light” by Arthur Herman. It talks about humankind’s natural state, or condition of “tension and renewal.” The tension stems from how we all see and interpret the world in different ways. As a company, as a community, we can’t get to great if everyone agrees all the time. I tend to be a visionary that doesn’t back away from this tension. But this tension needs to be followed up with renewal, or “coming together” with ideas, with vision. As long as we respect each other, listen to each other, it’s a marvelous way to get big things done with excellence. This process takes grit. What is the key to your success? I tend to be open to opportunities. Many of our projects started with a random conversation over a cup of coffee or a glass of wine. A series of projects with one developer started by saying hello to him on the sidewalk as he

Jane Laskey EDITOR

was holding a set of plans and asking him what he was doing. Thomas Friedman talks about this principle in his book, “The World is Flat.” It’s amazing how big things can happen if you are open to them happening. Ten years ago, I would have said I’m an optimist. Today I would say I’m a realistic optimist. You’ve got to be careful how much time you invest into things that might not happen. You got to know where to focus and when to take the off-ramp. What is your biggest challenge? The easy answer would be the recent construction material costs, such as steel and aluminum, going up or finding good help. But many of these things are cyclical and change. Free markets self-correct over time. Long term, the biggest challenge for any business owner is to keep doing the right things for the right reasons. And the right reasons go a lot further than being profitable. If business owners care about and appreciate their employees and their communities, this is the best thing we can do to weather economic storms. Any advice for someone considering starting their own business? A businessperson has to manage risk. You have to ask yourself what’s the worst that can happen and decide collectively, “Can we live with that?” Dean Doyscher is a well-known developer in town. Cathy and I have known him for years. He used to say, “People come up to me and say: ‘We think we should do this new venture,’ and I say, ‘OK, stop right there. Tell me five things that can go wrong with it, address them and then bring it back to me again.’” If you can answer all five of them and you still have a passion for doing it, that’s a good check.

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THE ESSENTIALS

Brennan Construction

201 N Riverfront Drive, Suite 210 Mankato, MN 56001 Phone: (507) 625-5417 Web: bcofmn.com

Ed. 3/18

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STR ATEGIC PARTNERSHIPS SERIES

Cultivating Workforce Solutions in Southern Minnesota September is Workforce Development Month! A highly skilled workforce plays a key role in the economic prosperity of Minnesota. The Center for Workforce Professional Education at Minnesota State University, Mankato partners with experts on campus, and throughout the region to design and deploy high caliber training for business, industry, and individuals. These collaborations are necessary to ensure Minnesota stays competitive in an evolving global economy. A valuable partner in executing these customized training opportunities has been the Organizational Effectiveness Research Group. The OERG operates out of Minnesota State Mankato and is managed by the university’s top-ranked graduate program in Industrial Organizational Psychology. The OERG provides data-driven, customized solutions to address workforce training needs, with faculty serving as consultants, and graduate students taking on project management roles. At the end of 2018, Dotson Iron Castings approached the Minnesota State Mankato team seeking assistance in revamping their onboarding program. Leadership recognized that the present state of employee training was the primary factor for increased levels of turnover. To remain competitive and continue to hire employees into what is a loud, hot, physically demanding work environment, onboarding procedures needed to be customized and refined. The OERG stepped in and designed an augmented reality training program. Incoming workers are now able to get a feel for the environment they will be working in, prior to stepping foot on the foundry floor. The OERG’s work on the Dotson Project earned them first place at DevLearn, a conference dedicated to exploring the future of learning and development. WPE and the OERG team also had the opportunity to work

with J&B Group, a family-owned, cold supply chain provider. J&B Group initially sought out the assistance of the OERG after receiving an employee opinion survey with low scores on communication. After conducting a series of focus groups, the OERG found that J&B was running into issues with departments operating in silos. Alternative departments had little time to communicate with one another, causing them to make individual decisions, without fully grasping company wide impact. Through the development of a simulation game, the OERG team was able to provide a learning tool that allowed J&B employees to be cross trained in different departments. Throughout the game, individuals were able to walk through the entire process a protein product takes from initial cut to customer delivery. Salespeople were able to step into the shoes of purchasing, manufacturing employees into distribution, and so on. The simulation game provided prompts for players to select the choices they would make in real-life, and follow-up with how that choice impacted profit, customer satisfaction, and employee satisfaction. Through this training, individuals were able to gain a holistic understanding of J&B functions, and the impact that each department has on overall success. In partnership with WPE, OERG is offering Pulse Survey services for regional businesses. These employee engagement surveys are distributed monthly and serve the purpose of identifying gaps that may exist in workforce training. If you are interested in learning more about customized training opportunities offered by Minnesota State Mankato, please contact Tammy Bohlke, director of workforce development at the Strategic Partnership Center: tammy.bohlke@mnsu.edu or (507) 389-2572.

LEARN MORE: https://link.mnsu.edu/maverickacademy 28

September | October

UPCOMING TRAINING EVENTS

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DATE: Nov. 8th

Project Management Do you struggle with managing your personal and team priorities? 90% of employees work on project teams, yet most leaders have never been trained in project management concepts. Learn more about the tools that every manager needs to understand to be effective in the 21st century.

DATE: Nov. 9th

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DATE: Nov. 10th – 12th COST: $795

DEVELOPING LEADERS | MEETING INDUSTRY NEEDS

TO SIGN UP, OR FOR MORE INFORMATION: https://link.mnsu.edu/courses-and-programs Sessions are offered in virtual and in-person settings. Please visit our registration site for details on a specific program. 424 North Riverfront Drive, Mankato, MN Phone: 507-389-1094

September | October

By Lisa Cownie Photos by Jonathan Smith

From the time he was a young boy, Dan Sacco dreamed of being a police officer. He would play cops and robbers around his dad's business, then called Northstar Specialties, not paying much attention to what was going on around him at the time. "My brother and I would just run around the shop and break stuff," Sacco said. "There was an old-time elevator we used to play on. At that time, my dad's shop was across from where the St. Paul Saints play, so one weekend we cordoned off the parking lot and charged 5 bucks for parking. My dad came out all mad and said, 'What are you guys doing? Our employees need to park here!' I have lots of fun memories." While Sacco grew up around the business, he didn't grow up in the business. Now known as AmeriStar Manufacturing Inc., the company is headquartered in a 45,000-square-foot facility in Mankato. AmeriStar is a full-service sheet metal fabrication business. Its services include stamping, precision laserjet and waterjet cutting, welding and assembly, and short-run and long-run stamping. It touts state-of-the-art equipment that can take your metal components from prototype to large production quantities. Continues

CONNECT Business Magazine

Manufacturing Mindset

With his childhood memories and just a vague notion of what his dad did every day, Sacco decided the family business was not for him and chose to follow his own path. He left to study law enforcement at St. Cloud State University and then moved on to San Diego to be a cop. But as time went by, working at AmeriStar became more appealing. “While I was out there, I was still talking to my dad about the business. I began to realize that while I had this dream as a kid of being a police officer, after doing it, I realized it might not be for me,” Sacco said. “It was a really dangerous job, and we lost someone we worked with on my patrol squad. When that happened, I thought to myself, ‘What are you doing? Just move back, be with your family.’ So I asked my dad, ‘Hey, would you mind if I came back and worked for you?’” It turns out his dad didn’t mind. But he had some conditions: If his son was going to come back and be a part of the business, he would have to earn it. Sacco turned in his badge and went about the business of learning the family business. “You might not think the two different careers would jive, but strangely enough, they do. In law enforcement, we dealt with life and death every day, especially in a large city like I was (in).

Sacco Outside of Work “My wife and I have three boys, ages 6, 4 and (9 months),” Sacco said. “We enjoy camping as a family. We became friends with resort owners on Leech Lake and sneak away on a Thursday or Friday to take a long weekend. I love to fish with my boys. It’s great on those weekends because the only thing I have to worry about is whether the fish are biting and that becomes the stressor, not work stuff. “The kids are starting to get into sports, so it is fun watching them. They are really starting to grow, and I think back to when I was their age and things my parents said or did all (make) sense.” Sacco’s father and mother, John Sacco and Antoinette Sacco, have been enjoying retirement since their son took over AmeriStar. In fact, one of Sacco’s fondest memories with them occurred a few weeks ago. “I was helping dad with something in his house … and suddenly, he just looked at me and said, ‘I am so proud of you.’ It was impactful because while I know he loves me, we have just never had the kind of relationship where you voice those things,” Sacco said. “I am committed to the promises I made to him when he retired. I want to make sure his retirement is all he wants and needs it to be. That makes me wake up and go extra hard.”

September | October

AmeriStar Manufacturing Inc. | Mankato Being able to handle that and deal with those situations really helped me when I transitioned to business because it helps me always keep a level head,” Sacco said. “When things seem like a crisis at AmeriStar, I think, ‘Man, this could be a lot worse.’ No one is going to die. This is just a part we made a mistake on. I can reach out to the customer to find out how to make them happy. So my experience in law enforcement helped me learn to take things in stride. Now I am in a completely different career, but the same principles (apply): you have a problem, you have to solve it, and you have to rely on your team to help.” At AmeriStar, team members understand the importance of the job they do. At first glance, the parts that come out of AmeriStar Manufacturing don’t look like anything special: a small $2 bracket or a $4 hinge. But the Sacco family and AmeriStar’s 55 employees all understand that one small part is a piece of a much bigger assembly. It’s important. It may be one of a couple of hundred parts customers, like John Deere and Bosch, need to complete their multimillion-dollar projects. “We are mindful of the importance of what we are doing, and we don’t want to hold up these large assemblies,” Sacco said. “These are big deals. You have to understand your place in the supply chain and

Proactive Approach to COVID “Early on, I could see what was coming with COVID,” Sacco said. “I am a worrier, so I am always thinking, ‘What’s the worst thing that can happen?’ Then I think, ‘What’s the plan to overcome it?’” When lockdowns began in other countries, Sacco shifted his focus to preparing for possible employee illness and quarantines. “Am I going to have to call John Deere and say, ‘Hey, one of my employees is sick and we have to quarantine. So, we are going to have to shut down, and you won’t get your part for your multimillion-dollar assembly line.’ That’s a call I didn’t want to have to make.” Sacco reached out to friendly competitors with an offer: if one business needed to shut down, the others would cover its orders so clients wouldn’t be impacted. “We became friends pretty quickly because we had a common enemy: we were all fighting COVID. … It was a way to sleep at night, knowing that if this happens, we have an option. I was happy to let our customers know that we had a plan. It gave us hope and reassurance. Now we didn’t have to shut down, and we were essential, so all of my employees toughed through it all, and I’m proud of them.”

CONNECT Business Magazine

Manufacturing Mindset

Larry Glaubitz running a punch press, stamping out a bracket utilizing a compound tool.

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600 S. Riverfront Drive | Mankato, MN 56001 507.387.3433 | ajg.com 34

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AmeriStar Manufacturing Inc. | Mankato

what it takes to maintain that relationship with the customer. You have to understand the process and know what the client wants. To do that, you start developing a relationship with the customers. I enjoy that, getting to meet people that we’ve done business with for 30 or 40 years.” It was important to Sacco’s father that his son learn how every department worked. He even learned the computer-aided design engineering side of things. In doing so, he eventually earned his path to buy the business from his dad. “He wanted to make sure I understood every aspect of the business,” Sacco said. “As business goes up and down, there may not always be someone in those roles. He wanted me to understand the business so I could fill the different holes as they come up. I spent time on the production floor, in estimating, quality control; I rotated through every department.” Sacco knew all the rotating was teaching him what he needed to know and steering

him in the right direction. “While I was working my tail off on the floor, my dad would sometimes pull me into the banking meetings, the lawyer meetings, the employee issue meetings,” Sacco said. “He was giving me a feel for the bigger things that were going on around us, but that I didn’t necessarily see when I was out on the floor. He wanted me to get exposure, (to learn) how to get a loan for a piece of equipment or how to negotiate contracts with material suppliers.” Sacco discovered he loved the communications side of the work. “I grabbed on early to the documentation side,” Sacco said. “I enjoyed the interaction with the employees. I mean, being a police officer, that was my job. I talked to people every day.” Sacco worked his way from quality assurance manager to plant manager to president. “I ran the business for two or three years independently. John (his father)

was still involved, and we were working on a transition plan,” Sacco said. “It is not that we didn’t want to do it. We were just always working on something together, fixing different issues that popped up. So just naturally, the transition was pushed aside. Because while it was important, we were just so focused, having fun together. We were in no hurry. We knew it would work out.” And it did work out. In October 2020, Sacco officially took ownership of AmeriStar Manufacturing. To chart a path to the future, he is looking at the company’s past. “I think the most exciting thing about AmeriStar is looking back at its history when my grandfather owned it and then my dad took over,” Sacco said. “I just think about all the obstacles they had to overcome to get the business ready for me and, after a century, have it still thriving. All of those years, they spent late nights at work, not making it home for dinner, missing our hockey games. Now my dad gets to see it

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Manufacturing Mindset

A sampling of parts and products produced by the AmeriStar team.

all come together. I hope he knows I appreciate it.” Looking at the company’s history has been an inspiration for Sacco. He’s already thinking ahead to the legacy he wants to leave his own children. “I guess it makes me have a greater understanding of what it takes, of how much work it takes, to get a business to this point. When my dad took over, it was a $3 or $4 million company,” Sacco said. “It is upwards of $12 million this year, and I am starting to see the pieces falling in place to get us to the $20 or $30 million range. We have the right customers to help us get there and that want to grow with us. So maybe this becomes a legacy thing. It’s fun to envision where we will be in 30 to 60 years. It’s my charge now to have it ready someday if my kids are interested in taking it over.” Part of Sacco’s strategy is paying attention to AmeriStar’s culture, not just its bottom line. “I spent tons of time evaluating different personalities and hiring people that I felt could best fit in with what we are building here,” Sacco said. “There have been some missteps, of course, but now we have a cohesive team. Nine out of 10 times, I know they are going to make the right decision. There are times the wrong thing is going to happen, but I trust them to fail. As I’ve learned, you can’t grow until you make a decision that may turn out to be the wrong one. So I have learned to trust my team and let them make the decisions I am paying them to make. That was always a tough obstacle for my dad, and even for me, because as much as ... we want to dive in and just do things ourselves, we realize how strong our team is and how smart our managers are. They want to do a good job, and if you give them the opportunity to succeed, it is usually beneficial.” In the midst of a workforce crisis in our region, the first challenge Sacco tackled was addressing hiring needs. “Finding general labor has been difficult,” Sacco said. “One of the big improvements I made right after I took ownership is I hired an HR professional. She has been phenomenal even in these periods of difficulty finding people. She not only finds people, (she) really acquires talented people. So it’s been exciting to have her and be able to keep up with growth. “The wage increases are difficult to deal with sometimes. We 36

September | October

AmeriStar Manufacturing Inc. | Mankato

have to take care of the people we have, so we are mindful of those wages when we hire new people. We make sure we are fair to all involved.” Another challenge Sacco has had to face is supply chain issues. “These days, we are having a big issue with material. Luckily, we are staying ahead of the game and taking proactive steps with our customers to make sure we can serve them. We often understand our customers’ forecasts better than they do. So we are getting allocations of material before they even realize they need them, so we always have what they need. It’s something we’ve had to do to stay competitive. The last thing we want to do is call our customers and tell them we can’t do it and interrupt their assemblies. We don’t want to risk a shortage,” Sacco said. Sacco is also constantly looking at cost evaluations on new orders to make sure the company is still profitable. “There have been some missteps in our industry,” Sacco said. “Maybe someone had a purchase order last year and they send the same PO this year to sign. Well, if you just accept that as the price, you could get into a lot of trouble. I mean, (multiply) that by 400 or 500 different jobs a month and it adds up. There are pricing fluctuations in people and materials now, so you just really have to work with your customers and explain to them any price increases and get them to buy in.” Sacco’s third challenge was looking inward to see how he would

fit into his new role. “Constant feedback is super beneficial to me. In fact, I have a business coach that I work with, along with a business ownership group called Allied Executives. It allows you to evaluate yourself,” Sacco said. “What I realized is that we have a great group of people in our management team, but I was eliminating some of what they could do for us because I was holding on too tight. It’s nerve-wracking because it’s your name on everything, so you want to control it. It’s tricky and hard to let go just a little bit and allow these people to do what they are good at. Once I started doing that and believing in them, we started to see pretty substantial growth. Every once in a while, there is a mistake or misalignment with values or vision. Then I step in. I feel like I have released them. It’s been fun to watch them and the business grow.”

THE ESSENTIALS

AmeriStar Manufacturing Inc. Address: 2600 9th Ave. Mankato, MN 56001 Phone: (507) 625-1515 Web: ameristarmfg.com Facebook: @ameristarmfg

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ELEVATING OUR REGION

AS THE WORLD-CLASS FOOD AND AGRIBUSINESS EPICENTER

Tell us about GreenSeam, the region. How is it becoming the world-class food and agribusiness epicenter? Agriculture is what we are best at. The whole region has become an epicenter and we want to continue to promote it, be a part of it, and celebrate our strengths and successes.

What would you say is unique about the region? We are in a very interesting climate which, in our industry, makes for a lot of unique products. Grapes are influenced by the climate, soil, and topography in an area, which eventually influences the wine as well. Terroir, a French term that means “sense of place,” is typically used to say that a wine tastes just like it should, considering the area the grapes were grown and the wine was made. You can grow the same grapes in different area of the country— even the region—and produce completely different wines.

Do you partner with other businesses or organizations in Minnesota?

Jane Schwickert

General Manager Chankaska Creek Ranch & Winery

We are proud of our partnership with the University of Minnesota, who are at the forefront especially with the Marquette grape. They continuously do research that helps us continue to grow this industry in the region where people thought growing grapes was impossible. We rely on local products. Some of our spirits are made with the beer from Mankato Brewery, our new rye whiskey with the rye sourced from a Mapleton farm, we use Minnesota oak for our barrels. It is important to us to support local.

How does GreenSeam shape the future of agriculture, businesses, and communities in the region? GreenSeam is all about awareness, support, partnerships, and promoting what everyone here does best.

What brings you, as well as Chankaska Creek Ranch & Winery to the GreenSeam table? I have always been honest about this story: this was my husband’s vision and I wasn’t too thrilled about it in the beginning. Our lives were busy and I didn’t want us to make bad wine. However, I learned a lot and realized that this region and community have a lot to offer in growing grapes. I realized we could grow a product and get good, knowledgeable people to work with us. My husband Kent and I have lived here all our lives and we had no agricultural background. We had to learn and I’m really glad we did. We are still in the community and we provide something we make right here. I look at this as another way of giving back to the community. It’s pretty cool and it feels good. We are so happy to be a part of this amazingly-growing region and we see GreenSeam as a key part of it. Southern Minnesota is a great place to be.

What happens in the world of a winery in September and October? Prior to harvest, it is important to put nets on the vines to protect the ripening grapes from birds who will want to eat them. There is a lot of sampling, where the vineyard manager and winemaker check the levels of sugar in the grapes and use that as one of the factors in determining when to start picking. Some grapes are hand-picked and, as of last year, we are able to mechanically pick some, as well, which is much quicker and less labor intensive. A big machine shakes the fruit off onto a conveyor belt and into little tractors. This is the time where our winery and production staff work long hours, seven days a week. A long-standing tradition in the wine industry is to have a local minister bless the first pick. This is about good fortune and bountiful harvest and we always find time for it. Jane Schwickert adds an irreplaceable note of creativity and organization to Chankaska Creek Ranch & Winery as its general manager. Together with her husband Kent, the chief manager, they share the dream and mission of making Chankaska one of the most prominent wineries in the Midwest.

greenseam.org

GROUNDBREAKER

Highlighting our region’s Ag and Food Production Industries

AFI Welcomes New Owners, Prepares for Growth Their motto says it all: “Generations of family, opportunity and relationships.” Since 1952, ownership at Associated Finishing Inc. has remained deeply committed to its family of employees, providing opportunities for growth whenever possible. When it’s time for one generation of owners to pass the torch to the next, there’s always a family member or seasoned employee waiting in the wings and ready to rise to the challenge. When John Kapsner decided it was time to sell his interest in AFI last year, he didn’t have to go far to find buyers. The AFI management team jumped at the chance to purchase his stake in the company and put some skin in the game. In January 2021, majority owner and President Ted Schreyer welcomed a young but seasoned group into the ownership circle. They are operations manager Jammey Harroun, controller and human resources manager Ryan Kapsner (John Kapsner’s son), sales and marketing manager Matt Miller and facilities manager Mick Rykhus. “I’m proud to be an owner,” Ryan Kapsner said. “We have a great group with a good age gap. Matt and Mick are in their 30s, Jammey and I are in our 40s and Ted is in his 50s. Together we have a lot of experience, and a good plan to continue to grow and keep this a family-run business into the future.”

60 Years of Growth AFI originally started as Associated Engineering, shifting its focus to painting and powder coating and its name to Associated Finishing in 1976. Today, it is one of Minnesota’s largest metal finishing companies, with 110 employees and three locations – two in Mankato and one in Litchfield. The company’s niche is providing industrial finishing services, from the simple to the complex. Simple services include powder coating and liquid painting. Complex services are, well, complex. It’s a one-stop shop offering a full spectrum of finishing options, from surface preparation to assembly. “We get into all kinds of different things: different pre-treatments for different metals, complex masking, special dye cuts, silk screening and pad printing,” Miller said. “We’re known around the Midwest as the best masker around. We take on some pretty tough jobs and make them our own.” The majority of AFI’s customers are located in Minnesota, Iowa or South Dakota, within a 150-mile radius of one of its plants. However, it also attracts requests from clients across the U.S. that require a unique process that only AFI can provide. “We have long-standing relationships with our customers. Most have been with us for five-plus years, 10-plus years. Some have been with

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GROUNDBREAKER

Highlighting our region’s Ag and Food Production Industries

us for 20 to 30 years,” Miller said. “We have lots of loyal customers.” The company serves various industries, including agriculture, construction, transportation, medical and the military. Many of their customers are household names, like John Deere and Caterpillar, that require vigorous vendor qualification processes. “We have to get certified through our entire process to be a John Deere vendor,” Ryan Kapsner said. “After we coat the part, it goes through multiple tests, from salt spray to gasoline to oil to impact resistance testing.” Family Oriented AFI prides itself on its family-oriented service, flexible approach, and ability to process any volume and any size parts. “That combination is what sets us apart,” Miller said. “Other companies might be able to be flexible, but they can’t process any volume, any size like we can, or they can’t offer the kind of personalized service we can. That’s what makes us unique.” Providing family-oriented service is the heart of the company’s culture. The AFI owners view their team and loyal customer base as extended family and strive to treat them with the respect and dedication that family deserves. “Relationships are a big deal for us,” Miller said. “This is our passion; generations of family, opportunities and relationships. So we really look out for each other.” “I can go around and call everybody by their first name, and I pride myself on that,” Ryan Kapsner said. “They’re not a number, they’re people, and we treat them as individuals.” A Flexible Approach Flexibility is a core value at AFI, and it’s part of every process, from hiring to equipment selection to scheduling. On the production floor, modular and mobile equipment allows the company to adapt its lines to fit each project. “If you build a piece of equipment or a line or a station only to do one thing or so it’s set in one place, then you can’t ever change it. It’s hard to be flexible,” Miller said. “A lot of the stations we set up are movable. A lot of the equipment is on wheels, or it can do multiple processes. So we can switch back and forth for whatever comes in that day.” 40

September | October

New AFI owners (pictured left to right): Ryan Kapsner, Mick Rykhus, Matt Miller and Jammey Harroun.

AFI’s 110-person workforce is also flexible. It takes a certain kind of employee to deliver on that promise. Ryan Kapsner said he looks for specific qualities when he is hiring. “We follow the acronym FARM: flexible, attention to detail, reliability and motivation. Those are our four core values,” Ryan Kapsner said. “It takes the right person to work in a manufacturing plant. When I do interviews, I base my questions on our

Ivy Halvorson silkscreening text onto a part.

core values, so we hire individuals who are a good fit for AFI. One of our mottos is: You’ve got to get the right person in the right seat, or the bus doesn’t drive.” Once hired, all employees are trained in multiple areas to meet whatever tasks the day might bring. “We require everyone who works here to be flexible. You can’t just be good at one job and that’s the only thing you do. You have

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to be able to change and move,” Miller said. This principle applies to company management, as well. When things get busy, you’ll find them all out on the line, doing whatever it takes to get projects out the door on time. “That’s just who we are,” Miller said. “We’re going to do whatever it takes. We’re not afraid to get dirty.” Project scheduling is flexible, too, to meet customers’ demands for rapid turnarounds. To accommodate them, the AFI team works seven days a week. “We run three shifts: first shift, night shift and then a weekend shift, as well. So we’re basically running 24/7,” Ryan Kapsner said. “Customers like our weekend shift. If their project is really hot, we can turn some parts on Friday and get them back to the customer on Monday. So we can help them out that way.”

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We’re Here to Help Your Business Dale Flowers spraying liquid paint.

Any Volume, Any Size AFI is also flexible in the type and scope of projects it can tackle. It offers a full spectrum of services that can take a component from raw, unfinished metal to a beautifully finished product with custom branding that is ready for market. “The finish is the last process, but it’s the first thing that the customers see. So it has to be a nice, smooth finish. It has to look good,” Ryan Kapsner said. The company accepts project quantities from a single unit up to a huge production

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Funded in part through a cooperative agreement with the U.S. Small Business Administration, Minnesota Department of Employment and Economic Development and regional support partners. All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the program sponsors. Programs are open to the public on a nondiscriminatory basis. Reasonable accommodations for persons with disabilities will be made if requested at least two weeks in advance. Contact the SBDC at 507-389-8875.

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GROUNDBREAKER

Highlighting our region’s Ag and Food Production Industries

run. It can accommodate component sizes ranging from 1-by-1-inch screws to 40-foot dump truck beds. “That’s something that sets us apart from our competition,” Miller said. “We can do any volume from one to 10,000 and any size up to 40 feet long.” AFI’s strategy appears to be working. The company has seen a surge in demand and is planning for future growth. It has the equipment and the capacity to deliver more. Moreover, once it outgrows its current space, there’s room for expansion on its Mankato campus. “If you’re not growing, you’re going backward,” Ryan Kapsner said. “That’s part of business. It’s a fun ride. We’re definitely growing; we’ve just got to be smart when we grow.” The management team is also looking for opportunities to broaden its geographic footprint into other parts of Minnesota and Iowa. “Up to 35 to 40 percent of our work is ag-related. We’re very good at it,” Miller said. “So it makes a lot of sense for us to be looking throughout the Midwest’s GreenSeam for more opportunities.” THE ESSENTIALS

Associated Finishing Inc.

William Berentson applying powder coatings to parts.

September | October

320 Mallard Lane Mankato, MN 56001 Phone: (507) 345-5861 Web: www.associatedfinishing.com

HOT STARTZ! NEW ULM

MN EIS

Cultivating Opportunity

130+ acres Shovel-Ready Industrial Park State Highway Access: 23 and 19 Pull Factor: 1.55 Population Base: 13,500+ Regional Population Base: 25,000+

Whatever brings you to MN EIS, two things are certain: 1) You will not leave empty-handed. 2) You will be very glad you came. The MN EIS Ice Cream & Sweets Shoppe is located on Minnesota Street in downtown New Ulm. It opened in June 2020 and is owned by Lindsay Schweiss, of New Ulm, and Greg James and Bria James, of Waconia. The trio joined forces when they discovered they were each planning to open an ice cream shop in New Ulm. “We all kind of had goose bumps when we sat down together. We had the same ideas right down to the name. Everything felt like this was meant to be,” Schweiss said. “It’s been such a great partnership.” The shop’s name is a nod to New Ulm’s German heritage. Eis is the German word for ice or ice cream. It’s also a play on the “Minnesota Nice” phrase, which they worked into their slogan: It’s always MN nice when you’re at MN EIS. MN EIS carries something to satisfy almost any sweet tooth. An entire wall is dedicated to colorful bins of Albanese Candy. Edible cookie dough is sold by the scoop in peanut butter, chocolate chip, brownie batter, raspberry cheesecake, and unicorn flavors. In the mood for something a little more exotic? Try the fruit or milk boba tea. This traditional Taiwanese drink has a tea base, a milk or fruit flavor, and edible tapioca or fruit-flavored pearls. Of course, nothing can top their ice cream. MN EIS offers homemade waffle cones and 24 flavors of Chocolate Shoppe premium ice cream. Customer favorites include black licorice, bourbon pecan pie, fat Elvis, and the ever-popular “This $&@! Just Got Serious” (salted caramel ice cream with sea salt fudge and cashews). “We try to find fun, unique things that you might not be able to find elsewhere,” Schweiss said. “One of those is our German Spahgettieis.” This quirky German specialty is an ice cream treat disguised as a bowl of spaghetti. Vanilla ice cream “noodles” are topped with strawberry puree, then sprinkled with grated white chocolate. MN EIS adds their own special twist: cookie dough “meatballs.” Yum!

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MN EIS 10 N. Minnesota St. Phone: (507) 354-0660 Web: mneisnewulm.com Facebook: @MNEISNewUlm CONNECT Business Magazine

HOT STARTZ! MANKATO

OmegaStrap Brad Willodson is a handy kind of guy. So when he noticed that his ratchet straps were constantly jamming or getting tangled, he decided to MacGyver a more user-friendly solution. “I made it with a pingpong ball and some fiberglass,” Willodson said. “When I had that first primitive version in my hands, I thought, ‘Wow, that’s really cool.’” Knowing his invention could make a lot of other frustrated ratchet strap users happy, Willodson realized he had a new product on his hands. He was encouraged by his cofounders, Sarah Scott and Joe Benike. “I came up with this idea, but I wasn’t doing anything about it,” Willodson said. “Sarah was the one who said, ‘You should do something about it,’ and Joe is the one who said, ‘I can do something about it.’” Willodson concentrates on the product, while Scott focuses on the business, and Benike handles e-commerce and digital marketing. Rounding out the OmegaStrap team are photographer William Cipos, videographer Michael Chalhoub, and Chinese liaison and translator Peter Wei. “It’s been like magic the way we’ve all came together,” Scott said. “We found Joe and Peter exactly when we needed them. This team works well together, and it’s been delightful.” Benike agrees: “The timing has been great. It felt like I was the missing piece with my background. So we all thought, ‘Let’s do this!’” The OmegaStrap is an ergonomic ratchet strap system. It’s a medium-duty ratchet strap and can handle up to a 600-pound load. Its features include a control knob, a flexible fastener to hold the hook in place and an elastic loop for easy storage. The OmegaStrap team enlisted the help of the Minnesota State

University, Mankato, engineering department to create a CAD design and 3D-printed prototype. Things started to fall into place, as they secured patents, found a manufacturer and ran an Indiegogo crowdfunding campaign. In January, the first 10,000 OmegaStraps took up residence in Willodson’s garage. They launched their product in April on omegastrap.com and have already shipped 4,000 products. “This business feels like an unscratched winning lottery ticket. I hope that when I finally scratch this thing, it’s really going to take off,” Willodson said. OmegaStrap Phone: (507) 206-9877 Web: omegastrap.com

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Dynamic Defense, LLC To say Rebecca Richter knows her way around a firearm is a bit of an understatement. “I grew up in a hunting- and gun-enthusiast family, so I’ve always been around guns,” Richter said. “I was taught from an early age to be respectful of what they’re capable of and to handle guns safely.” Richter is a certified instructor through the National Rifle Association, the U.S. Concealed and Carry Association, and the Minnesota Bureau of Criminal Apprehension. She’s also the owner of Dynamic Defense Firearm and Situational Awareness Training, LLC in Mankato. As a woman, she’s a rarity in this field. “In Minnesota, there are less than a handful of women who own a firearm business and are the primary instructors,” Richter said. “There was a huge need for female instructors.” Dynamic Defense offers handgun fundamentals and permit to carry classes for both women and men. Richter also teaches situational awareness and personal defense training for individuals, private groups, and businesses. “The situational awareness class has nothing to do with guns. It’s solely about learning how to identify a threat, how to get yourself out of a situation, and how to avoid the situation altogether,” Richter said. “It’s all about the mindset. A lot of people don’t understand that a gun is just a tool. Your No. 1 tool, your biggest asset, is your mindset.” Sessions are scheduled through the Dynamic Defense website and led by Richter at the Caribou Gun Club in Le Sueur and the Nicollet Conservation Club in Nicollet. Once her students have mastered basic handgun skills, Richter encourages them to continue to learn

and practice, practice, practice. “Firearm training needs to be ongoing. It’s a perishable skill,” Richter said. “When you are in a defensive situation, and the adrenaline and the fear kick in, you don’t rise to the occasion. You default to your highest level of training. You wouldn’t run a marathon without training. It’s the same thing with a gun.” Richter said her classes draw people of all ages and all walks of life. “Wanting to be safe and wanting to protect yourself and your family is a basic human desire,” Richter said. “We should all be able to do that.” Dynamic Defense, LLC Phone: (507) 381-2001 Facebook: @dynamicdefensemn Web: dynamicdefensemn.com

BANKING THE WAY IT SHOULD BE Here for you today and tomorrow

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By Lisa Cownie

We’ve all heard that necessity is the mother of invention. Well, add a dose of frustration to that mix and things really get interesting. “When I think back to how it all got started, I remember how frustrated I was at the time because I couldn't get what seemed like a simple thing,” Brad Mohns said. It was 1990, the year of the Sturgis Motorcycle Rally’s 50th anniversary. The simple thing that Mohns, a motorcycle enthusiast, was waiting for was a motorcycle hitch he had ordered for the trip. Finally, tired of waiting, he went out to his farm shop and got to work. “I got over my frustration pretty quickly and just made my own hitch. Once that was done, I knew I had a quality item that others would want as well, so I made a few more to show off at Sturgis,” Mohns said. Continues

Front/center: Brad Mohns. Back row from left to right: Linda Mohns, Tasha Diggs, Stacy Tiahrt, Chad Mohns

September | October

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Hitchin’ A Ride to Success

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When Mohns left for Sturgis, South Dakota, that year, he took a custom-built trike and chopper with hitches he had designed himself for common models of Harley-Davidsons. It turned out others were having similar difficulties finding and getting a good hitch. Seeing the effort, design and quality of Mohns’ products, the orders started rolling in from the motorcycling community. A full-time farmer from Round Lake, Minnesota, Mohns had all the tools he needed to make hitches for his own bikes and for a few friends. But eventually the orders were dominating his time, and Mohns knew it was time to upgrade and try to grow it into a full-fledged business.

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The original HitchDoc product.

Today, the company manufactures more than 80,000 different parts for 300-plus customers around the globe. It manufactures products for high-profile customers like Toyota and makes mower decks for a well-known mower manufacturer. HitchDoc also has its own line of seed carts. What started with producing “simple” hitches for a niche industry multiplied quickly into new products and services, all while maintaining the same quality and workmanship that Mohns designed into that first hitch. A man of high standards, Mohns found himself innovating right off the bat to make sure he had just what he needed for a job well done. “I built my first CNC plasma table in 1994 because the quality of machines on the market wasn’t up to my standards,” Mohns said. “Local (equipment manufacturers) learned of the cutting capability and HitchDoc’s 48

July | August 2021

HitchDoc | Jackson

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contract manufacturing division began. That drive for high quality and machines is still felt on the production floor today.” HitchDoc quickly outgrew the farmstead, and in 2005 Mohns upgraded his space, building a 50,000-square-foot facility in nearby Jackson, Minnesota. At that time, he had 18 employees and it seemed like a massive amount of space. Little did he know that the company would outgrow the new facility in just two short years. As growth exploded, he expanded again, adding another 50,000 square feet to the facility. Shortly after that, Mohns hit his first big challenge: the great recession of 2008. That’s when Mohns and his team really started innovating and diversifying. Through it all, HitchDoc did not slow down. The company has always remained stable during the ups and downs that come with contract manufacturing. Fallenstein Playground, North Mankato, MN “The economic downturn, or great recession of 2008, was hard on a lot of businesses, especially in the manufacturing Bolton-Menk.com world. Many businesses were struggling, but we saw an opportunity. We expanded by acquiring a variety of businesses and increased our product offerings. This allowed us to continue to serve our customers and, more importantly, it allowed us to keep our employees. We didn’t have to lay off anyone, and we continued to meet and exceed customer expectations,” Mohns said. Half a century of commitment to quality. Today business is booming, with HitchHalf a century of waterfront product innovation. Doc serving more than 10Half different FAMILY OWNED & MADE IN THE USA. a centuryinof growth and innovation. best in waterfront products for 50 years. dustries. Diversifying his Providing servicestheand years of innovation and still going strong. products helped Mohns steer50 the company 50 years of manufacturing the best in waterfront products. in the right direction. 50 years means we do waterfronts right. Celebrating 50 years of innovative waterfront products. “To give you an idea of how far we’ve 50 years of being the best on the waterfront. come, we started out as a Celebrating farm shop in Celebrating 50 years of being the toughest on the waterfront. Round Lake, Minnesota. Now we’ve got facilities in both Jackson, Minnesota, and Sioux Falls, South Dakota. We employ 130 people between the two facilities and process over 120,000 pounds of steel daily,” ATING 50 Y BR EA Mohns said. E L HitchDoc sales continue to expand farther across the United States, Canada and overseas, creating more opportunities for 1971 the business and for employees, as well. It 2021 remains a critical element of HitchDoc’s company culture: giving employees room T Y E A R S IV T to grow as the business grows. Mohns beN EW AT E R F R O lieves that is the foundation for long-term www.hewittrad.com/fiftyyears success. In addition, staying on the cutting

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Hitchin’ A Ride to Success edge allows HitchDoc to compete against the overseas markets in price and exceed quality expectations. “Quality products and service is a cornerstone for HitchDoc,” Mohns said. “The team wants to make any purchasing experience an impressive one. We have ISO-certified processes, state-of-the-art equipment, American steel and dedicated employees. We believe it is what makes us amongst the best in the industry.” ISO refers to the International Organization for Standardization, a global organization that develops standards for best business practices. ISO certification allows consumers to have confidence that the products they purchase are safe, reliable and of good quality. As an ISO 9001 certified company, HitchDoc is committed to providing customers with products that meet their needs while adhering to strict internationally recognized standards for consistent quality. In 2016, Mohns saw an opportunity to expand his product line and expand geographically, as well. Through the acquisition of Kwik-Way Manufacturing, HitchDoc added a second location in Sioux Falls, South Dakota. This facility is capable of shearing, forming, drilling, sawing, welding, painting and assembly. Mohns believes expanding to Sioux Falls gives HitchDoc a lot of business growth potential. Jackson, Minnesota, and Sioux Falls, South Dakota, are two vastly different cities with distinct cultures and work environments. One thing, however, can be found in both locales: a strong work ethic and employee pride in what they do. “Our flagship location is in Jackson, Minnesota. This is our headquarters and where most of the fabrication, paint and assembly

equipment is,” Mohns said. “It’s also one of the largest steel users in the tri-state area. In addition to the bulk of the manufacturing, our Jackson facility is home to all our design and engineering, marketing, sales, HR, finance and all other corporate functions. Our Sioux Falls location is on a rapid growth curve, as well. They are adding capacities at a faster rate than Jackson is.” It may be Mohns’ ingenuity that got HitchDoc started three decades ago, but he credits his employees with the ongoing success. “We’re proud of the people we have that work for us in both of our locations. That’s been a huge benefit to us. In these areas, Jackson and Sioux Falls, the people have a strong work ethic. They work hard and take pride in a job well done. But, with that said, Jackson is a pretty small town, so it’s getting harder to attract people,” Mohns said. Like the rest of the business world, HitchDoc was affected by the COVID pandemic. But it weathered it well and is thriving again. “The pandemic and everything that came with it in 2020 did take a toll on us, like everyone else. It was only the second time in our history that we had to lay off employees. But now we’re back, stronger than before and looking for employees,” Mohns said. HitchDoc’s team continues to expand as the company diversifies and requires new skillsets. “We have a really great team. A year ago, we collectively went into conservation mode, not knowing what the future would bring. Now we are in expansion mode with a diverse team and diverse year,” Mohns said. “We’re continually improving our place of work and adding teammates that fit our culture. We continue to be a great

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HitchDoc | Jackson supplier to our customers and look for growth opportunities along the way. To do this, we’re keeping up with fabrication technology and reinvesting in the business, but it all starts with a great workforce.” Currently, the two most significant challenges facing the manufacturing industry are supply chain issues and finding enough employees. That rings true for HitchDoc, as well. “Everyone is facing these same challenges. With supply chains, it’s long lead times and stock-outs. We’re all competing for the same limited resources. You could say the same for the labor market. There’s a shortage of people with the right skills, and competition for skilled workers is high,” Mohns said. They are challenges Mohns admits are critical to overcome, especially with increased competition in the market. “Whether it’s employees or customers, you have to be able to deliver on your promises. If you can’t do that, your reputation gets tarnished and you’ll start to lose business,” Mohns said. Maintaining a diverse industry and equipment portfolio has helped HitchDoc grow exponentially during good economic times and remain stable during challenging economic times. Reinvesting in the business and investing in technology has been a constant philosophy throughout the years. “Having a facility and machines that are second to none, the employee team is extremely proud of the work they do with 100 percent American-made materials. HitchDoc will always be dedicated to their employees and staying ahead of constantly advancing technologies,” Mohns said.

Hard work, determination, and dedication to quality products and HitchDoc employees have transformed this family-owned business from a farm shop into a thriving business with multiple locations and facilities totaling nearly 200,000 square feet. At the end of the day, though, Mohns said it is family that keeps the operation moving forward. The Mohns family continues to work together to ensure HitchDoc will grow and last for generations to come. “HitchDoc has always been a family-owned and -operated business,” Mohns said. “I think it’s what keeps us strong. I started this business, but I got the family involved pretty early on. My wife, Linda, is the CFO and keeps a close eye on all of our expenses. Our son, Chad, is the vice president and oversees everything from production scheduling and purchasing to sales and marketing. Our daughter Stacy manages our facility in Sioux Falls, and our other daughter Tasha is head of human resources. As president, ultimately the buck stops with me. I’m still actively involved in the business and love coming into the office every day.”

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HitchDoc

Address: 131 County Road 34 E., PO Box 179 Jackson, MN 56143 Phone: (507) 847-4049/(800) 446-8222 Web: hitchdoc.com

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Empty Big-Box Spaces Find New Life The death of the American mall has been predicted for some time. The expansion of online shopping is difficult to compete with, and for a while it seemed that the global pandemic might put the final nail in the coffin. But this doom and gloom scenario is not playing out in the Mankato market. “This market has been very resilient during all of this. Right now, we’re as busy as we’ve ever been,” David Schooff said. “This is really a unique situation because you can drive around some other Midwestern towns and they’re not as fortunate.” Schooff is president of the Coldwell Banker Commercial Fisher Group, which manages many properties in Mankato, including the Madison East Center. He’s also part of a group of investors that owns Madison East. Like other cities, Mankato has been plagued with big-box vacancies since the River Hills Mall eclipsed the Madison East Mall in the 52

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‘90s, leaving the older mall largely vacant. The excess space took time to fill. “Madison East is 275,000 square feet. Absorbing 275,000 square feet back into a market of this size took a long time. So that slowed down new development for a period of time because it was a cheaper option. I can be way more competitive there than if I said, ‘Let’s go build on a piece of dirt,’” Schooff said. “So for years, we kept absorbing this space.” Schooff sees the light at the end of the tunnel as the Mankato market finally catches up with itself. The commercial real estate market is hopping. Where big-box stores once sat empty and parking lots collected weeds, plans are now on the drawing table and construction projects are queuing up. “Lowe’s is full again. The Gander Mountain/Gordman building has a lease signed. Shopko is in its planning stages. So if you look at

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what’s vacant, Herberger’s and Sears are really the only two empty big boxes left in Mankato,” Schooff said. “They’re kind of in a holding pattern with the recent sale of the mall.” The Mankato community is growing, and commercial developers now look at empty big-box spaces with new eyes. Strategically located with ready access to transportation, these spaces are also a great deal – it’s cheaper to renovate an existing building than to build something new from the ground up. “If you look at the sales of Shopko and Lowe’s and Gander Mountain,

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Exterior of the expansion section of the Madison East Mall.

they’re all in the low $2 million range. So what you’re getting for that price is ridiculous because to build those buildings today, they would be much more expensive,” Schooff said. “All those developers got great deals.” Retail is still an option for these spaces. Schooff points to the continued success of Scheels stores in Minnesota and elsewhere to illustrate this point. But retail is no longer the go-to solution. Many of these buildings are finding new life as medical facilities, residential housing and business centers. Schooff is currently working on two such developments. In Albert Lea, the old JCPenney building is being transformed into the Skye Flats apartments. In Le Sueur, the Valley Green Square Mall will become Tiller and Main, a mixed-use development. “We just purchased the old JCPenney building in Albert Lea. It’s a big, two-story building, and we’re converting it into a housing development,” Schooff said. “In Le Sueur, the old mall is under construction right now, and it’s a cool project. It’s a good example of how a city and a private developer can get together and get something done. It was one of those classic old malls where they closed the road to create a walking area. So part of our deal with the city of Le Sueur was to sell it the middle part of the mall so they could tear it down and put Main Street back in. Then we’re adding new storefronts along one side, a bunch of professional areas in the building and about 17 apartments.” In Mankato, the Madison East Mall has been renovated and expanded. It is now home to a wide range of businesses, including specialty medical clinics, the Mankato campus of Rasmussen University and JP Fitness. Once a home improvement store, the Lowe’s building is now home to Store It, Pontoon1 and Unique Classic Cars. Plans for the former Shopko building on Madison Avenue are also in the works. “We just helped Mike Drummer, of Drummer Development, buy the Shopko building at the end of last year,” Schooff said. “He’s got a pretty grandiose plan there, which I think will be awesome for the 54

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community. I can’t say anything about it, but it could be really great if it all comes together. There are some really interesting pieces to it.” As for retail, Schooff believes that while shoppers enjoy the convenience of online shopping, there will always be a demand for brick-and-mortar stores. “What online has done is allow everybody to have access to everything. It allows you access to luxury goods and other things we don’t have here,” Schooff said. “But people still like to see things, to have tangible things they can touch. I think we want the ability to do both.” The Kohan Retail Investment Group is banking on this. The New York-based company purchased the River Hills Mall property in July. Owner Mike Kohan is looking forward to working with the community and making the mall a destination once again. “When we buy these malls, we try to connect with the community. We try to create more events in the mall so we can increase traffic,” Kohan said. One of the first steps for the Kohan Group will be a review and analysis of the mall to determine what updates may be needed. They will also be communicating with potential tenants to fill vacancies. “We have some tenants on the radar that we will approach and hopefully place to get that mall to 95 percent occupancy as soon as possible,” Kohan said. Kohan is likely to realize that goal if pent-up demand is any indicator. “The good news for Mankato is these empty spaces have almost all been filled,” Schooff said. “There are still retailers and a lot of junior boxes out there that are looking for space. There are not a lot of options right now if you’re a junior box. Where are you going to go?” With this storm of activity in the commercial real estate sector, can more new development be far away? Schooff already sees it. “There’s land being sold. There are more parcels under contract now than there have been in a couple of years,” Schooff said. “We’ve accomplished a lot here. It’s a success story for all the players that have been a part of this.”

INDUSTRY INSIGHT

Mavericks of Philanthropy It only takes a quick walk through Thin Film Technology Corp’s remodeled office space in North Mankato to see just how much the company’s leadership invests in its employees. From large updates like easy access to the CEO’s office, to small gestures like birthday cake in the breakroom, it is clear the company cares about the individuals who work there. And that level of care reaches far beyond the walls of the company’s offices, says CFO Tom Lietha. Thin Film Technology is a leading-edge solution provider of high performance, passive electronic components–servicing a wide range of industries from automotive to medical to military. And while its business serves the global market, its focus on philanthropy has always remained local. “Once the company took off in the ‘90s, we knew we wanted to make a big impact in the community,” Lietha said. “Since the company was incorporated, we had always done a little bit in terms of making donations or supporting local projects, but we always knew we wanted to have a more coordinated effort.” The company’s leadership, including Lietha, who was CEO at the

Pictured left to right, (front): CEO Mike Howieson, Tom Lietha; (back): Cindy Thelemann, Fred Olinger and Mark Broman.

time, contacted Mankato Area Foundation to set up a corporate advised fund in 2001. And while MAF has nearly 70 donor and corporate advised funds today, this was a new concept for the

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Foundation at the time. By creating a corporate advised fund, TFT was able to establish a significant giving plan toward causes it cared about without jumping through the hoops of creating its own charitable foundation from scratch. “We had looked into creating our own foundation, but we quickly realized just how overwhelming it would be by the time you go through all the legal and regulatory processes,” Lietha said. “If there is a local organization who has the expertise to manage it for you, why not let them help you?” At the time, MAF was an entirely volunteer-run organization with less than $1 million in assets. Today its assets exceed $27 million. Looking back, the current president and CEO of MAF, Nancy Zallek, is impressed with the trust and foresight TFT had in the foundation. “They trusted a local group with their million-dollar fund, which is pretty amazing,” Zallek said. “The leaders at TFT clearly grasped the mission and vision of our

foundation, and they knew how mutually beneficial a fund like this could be.” According to Lietha, that level of confidence came from the relationship TFT developed with MAF’s board of directors. “They had been doing a great job, and they had been working hard,” Lietha said. “We felt they had the right momentum, energy, and attitude toward doing the right thing in the community, and they have proven that to us time and time again for over 20 years.” TFT chose to establish a fund dedicated to supporting science, technology, engineering, math, and education in the Mankato region. According to Mike Howieson, the current CEO of TFT, it has always been important to TFT that its philanthropy stays in the community. “We love that through MAF, the money stays local,” Howieson said. “It allows us to keep a close relationship and to stay connected to the impact our fund makes.” Since the TFT fund was established, it

has supported Minnesota State University, Mankato’s annual Science & Engineering Fair for elementary students, local robotics teams, the Children’s Museum of Southern Minnesota, girls’ computer coding camps, hundreds of thousands in college scholarships to local engineering programs, and much more. According to Lietha and Howieson, TFT has been proud to be involved in all of these projects. These two leaders are especially proud of the college scholarships, however. “To be able to give scholarships to people who have a beautiful mind and talent, and to help provide the opportunity for them to grow their dreams and education—there’s just nothing better than that,” Howieson said. Lietha agrees. “It’s a good feeling to know you have contributed toward building the skills of people who are really going to make a difference in the world,” Lietha said. “It’s really amazing to see that coming from your efforts and your funds.”

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