Enterprise Minnesota magazine - Summer 2023

Left to right: Pete Rogers, president of automation; Joe Francis, president & CEO

Helping Hands

Manufacturers turn to chaplains to address employee wellness.

Engaging with Automation

Implemented correctly, automation can ease labor demands and improve operations. Here’s how.

The Sky’s the Limit

Solar panel manufacturer Heliene has ambitious plans as federal incentives flow to renewable energy sector.

Where the Wind Blows

Fifth-generation Landwehr Construction tackled two ISO certifications to meet the requirements of its biggest wind-energy customer.

Finding Next Steps

Consultant Ally Johnston uses her diverse experience to help clients build on quick wins.

Breaking Down Barriers

How two manufacturers have used relationships in ethnic communities to resolve their employee shortages.

Up Close & Personal

The power of manufacturing is best explained through the narratives of its practitioners.

One of a Kind

Enterprise Minnesota plays a singular role in strengthening the state’s manufacturing sector.

When a college student recently asked me to provide an elevator pitch of Enterprise Minnesota, I welcomed the opportunity. Anyone who values strategic planning knows the value of always reminding yourself what you do, who you do it for, and why. This can be especially valuable for an organization like ours that works in the marketplace of public/ private partnerships. We’re not scored by how profitably we make and sell widgets; rather, we assess our performance on how well our customers make and sell widgets using our counsel.

Most readers — not all! — know the array of consulting services we provide to help Minnesota’s small- and mediumsized manufacturers grow profitably. Our expertise falls into five areas: continuous improvement; ISO management systems; strategies for growth; talent and leadership; and manufacturing peer councils.

It’s unusual for one organization to offer such a comprehensive menu of consulting services, but we don’t stop there. The “secret sauce” of our organization is how we use our platform to help connect the various participants in the full community of Minnesota manufacturing. Our mission is always to promote the value and successes of our customers and to promote policies that stabilize manufacturers and the communities where they operate.

One of our most important contributions is the annual State of Manufacturing® survey, the only one of its type in the country. A statistically valid sample enhanced with dozens of focus group

transcripts, the survey has a remarkable 12-month shelf life because no other piece of research offers such a complete picture of the manufacturing sector. We also include regional data, giving policymakers across the state a clear picture of the issues facing manufacturers in their own back yards.

The State of Manufacturing survey has also allowed us to build relationships with the industries that support manufacturing — from accounting and legal services to marketing and human resource consultants.

As the labor shortage continues, our relationship with technical colleges takes on greater importance, and we have worked harder than ever to strengthen these connections. We aim to raise the visibility of the state’s technical colleges — a vital pipeline of future employees — through joint events, as well as coverage in this magazine and on our website.

All of these activities comprise Enterprise Minnesota’s value proposition. With an integrated approach, we serve the entire manufacturing enterprise through consulting and our relationships with elected officials, industry leaders and technical colleges.

We’re all delighted at how our organization has evolved into this role, which is more critical than ever because of the increasing importance of manufacturing to our state and nation.

Publisher

Lynn K. Shelton

Editorial Director

Tom Mason

Creative Director

Scott Buchschacher

Managing Editor

Chip Tangen

Copy Editor

Catrin Wigfall Writers

Eric Blaha

Sue Bruns

R.C. Drews

Suzy Frisch

Robb Murray

Peter Passi

Kate Peterson

Photographers

Amy Jeanchaiyaphum

Robert Lodge

Lynn Shelton

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Bob Kill is president and CEO of Enterprise Minnesota.

Perfect Fit

New

Kloos’s strong ties to the community enhance her ability to gather input from industry leaders as SCTCC continues to offer dynamic programs that benefit students and employers in the region’s economy.

Assessing employer needs

With 4,500 students enrolled in its credit programs and others in customized training and non-credit programs, SCTCC plays a critical role in educating future employees for the St. Cloud region. It’s vital, Kloos believes, that all of those programs reflect employers’ needs.

Kloos is particularly concerned about addressing employer demands in the labor market. “You look at the economy right now and the need for more and more skilled employees. How do we provide more? How do we respond quickly? We have to continue to work collaboratively and do it quicker and be more proactive,” she says.

Of the seven regions of Minnesota included in the most recent State of Manufacturing® survey, respondents in the St. Cloud region expressed more concern than any other area of the state about the persistent worker shortage, with 59% of those surveyed saying attracting workers is a top concern. For those area manufacturers, Lori Kloos’s appointment as the new president of St. Cloud Technical & Community College

(SCTCC) comes just in time.

Kloos is eager to work with local employers to address that concern. A product of three Minnesota State institutions, Kloos has spent most of her career at SCTCC, serving as vice president of administration and chief financial officer from 2000-2022. She was named president in January.

In addition to knowing the college and the Minnesota State system from all sides,

That’s why SCTCC has created industry advisory boards to develop programs. Board members involved in manufacturing work directly with SCTCC’s dean of skilled trades and faculty in specific programs, from welding and mechatronics to computer-aided drafting/design and energy and electronics.

The college’s close ties to industry have also been instrumental in its ability to expand and upgrade facilities. SCTCC recently received a $2.5 million grant from the U.S. Economic Development Administration for its advanced manufacturing lab.

SCTCC is adding another $2 million to the lab for cutting edge equipment, such as SCADA robotics equipment. “We’re

president Lori Kloos brings experience and creative outreach to St. Cloud Technical & Community College.

Left to right: Lori Kloos, president, St. Cloud Technical & Community College; Bob Kill, president & CEO, Enterprise Minnesota PHOTOGRAPH BY LYNN SHELTON

bringing in industry partners to give input on what else is needed in the lab,” Kloos says.

SCTCC also takes its programs directly to area manufacturers through customized training. For example, SCTCC faculty have developed on-site welding training for new employees at New Flyer, the largest transit bus manufacturer in North America.

Tapping the future workforce

An equally critical role for SCTCC is to promote careers in manufacturing to the next generation of employees and show how SCTCC can help prepare them for the future.

Kloos’s vision is to share more of what the college offers and get people excited about visiting and learning about “what they don’t see when they just drive by the campus.”

SCTCC has accomplished that outreach in part through unconventional programs. High school students, for example, can take a college-level manufacturing and engineering class from SCTCC instructors at Cold Spring USA, a natural stone

manufacturing facility and bronze foundry in Cold Spring. The class enables students to see how their newly-acquired skills apply in real life circumstances, and the credits they earn can transfer to SCTCC. For the company, those students might look around and see themselves working there in the future.

SCTCC also cosponsors high-visibility events, such as Minnesota’s VEX Robotics Competition for elementary through high school students. “Our manufacturing sponsors make it happen because they see the importance of the skills students are learning,” Kloos says.

A virtuous circle results from SCTCC’s partnerships with manufacturing. Industry partners sponsor programs that help attract future employees to manufacturing, which draws attention to and boosts enrollment in SCTCC’s programs. After students have finished programs in the college, SCTCC’s goal is to place them in positions in local companies. “They will hopefully stay right here in our region and contribute back to our economy,” she says.

FINGERTIPS AT YOUR FINANCING BUSINESS

Unconventional outreach

Kloos believes that St. Cloud’s diverse population allows SCTCC to share the value of skilled trades with prospective students beyond the traditional pipeline from high schools.

“Typically, we have not seen as diverse a population in skilled trades. We want to look at how we’re introducing opportunities to enter these career fields and create pathways to these great jobs,” she says, adding that diversity, equity and inclusion for students, faculty and staff have become a top priority within the college.

Sometimes a totally new approach is the best way to reach diverse groups. A few years ago, the college started an annual tradition that has grown into a full-blown showcase of the programs SCTCC offers.

“Brewlash” (rhymes with goulash) began as a hot dish event sponsored by the culinary arts department. Then the college secured a one-time liquor license to open up its medium-heavy truck lab for beer and wine tasting.

After a hiatus during the pandemic,

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SCTCC promotes careers in manufacturing to the next generation of employees and shows how SCTCC can help prepare them for the future.

Brewlash has taken off. This year’s event featured charcuterie boards prepared by the culinary students, presented on platters designed and created by welding students, and enjoyed around tables crafted by carpentry students.

High praise from peers

Kloos draws high praise from area leaders. Joe Mulford, president of Pine Technical and Community College in Pine City, for one, says her commitment to the region and her background in administration makes Kloos a perfect fit for the college.

“Her family’s there, and her kids grew up there. She really understands the community and brings that perspective, as well as her vast technical knowledge about the operations of not only that campus, but our system,” Mulford says. “She really knows everything, from labor contracts to revenue funding models and where the business operations need to be.”

Matt Varilek, president of the Initiative Foundation, a non-profit that offers loans, grants, and donor services in the region, shares Mulford’s enthusiasm. “Lori has been essential to our partnership,” he says. “The college is a critical partner in so much of our organization’s efforts related to workforce development in general, and the child care workforce in particular.”

Varilek also admires Kloos’s tenacious outreach, citing her roles on the Greater St. Cloud Development Corporation, United Way Partner for Student Success, and the St. Cloud Rotary Club. “Lori is actively gathering input from partners and bringing those insights to her leadership of the college,” he says.

—Kate Peterson

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COOL COMPANIES

Air Support

For AirCorps Aviation, the sky is not the limit; it’s the goal.

When Minnesota hosted the 52nd Super Bowl at U.S. Bank Stadium in Minneapolis in 2018, more than 110 million viewers watched the Sierra Sue II, a restored World War II P-51D Mustang combat plane, lead the U.S. Air Force Heritage flyover during the singing of the National Anthem.

In 2022, That’s All Brother, a World War II C-47 that carried paratroopers during the D-Day invasion, returned to Normandy to lead about 40 other C-47s across the sky to celebrate the 75th anniversary of D-Day.

Bemidji’s AirCorps Aviation had a hand in both events, having completed the full restoration of Sierra Sue II in 2014 and having restored the “identity” of the C-14. The National Museum of the U.S. Air Force had rescued That’s All Brother from a Wisconsin scrap yard. After completing a 55,000-hour restoration, it contacted AirCorps about restoring the bare metal airplane to its original appearance by

adding camouflage, colors, and authentic markings.

One of about 12 WWII aircraft restoration businesses in the U.S., AirCorps Aviation opened shop in the Bemidji Industrial Park in 2011 with four avid WWII aircraft enthusiasts at the helm — Erik Hokuf, Dan Matejcek, Eric Trueblood, and Mark Tisler. Since then, AirCorps has completed numerous restoration projects, expanded production and sales of parts and fabrications, and created an online digital reference library.

In 2020, AirCorps Aviation purchased a second building close to the Bemidji Regional Airport, doubling its factory footprint to 40,000 square feet. The $1.2 million project, partially funded with a loan through the Minnesota Department of Employment and Economic Development, houses the company’s growing inventory of parts and provides office space and expanded meeting and training areas. The original site now handles fabrications while

restorations are done at the new site.

When a plane renovation is complete, it is disassembled, loaded up, and trucked to a third site at the Bemidji Regional Airport where the restorations are then re-assembled, tested, and eventually flown out of Bemidji to events, museums or other display sites across the country. The two most recent completions will be displayed at the Dakota Territory Air Museum in Minot, N.D.

In February of this year, AirCorps

AirCorps has compiled a massive digital library that includes access to over 400,000 warbird engineering drawings.

Aviation acquired the world’s most extensive inventory of original P-51 Mustang spare and surplus parts from Pioneer Aero Service of Chino, Calif. “This acquisition will allow AirCorps to better meet the needs of P-51 owners, operators and shops,” says General Manager Erik Hokuf. Thousands of parts, components, and drawings arrived in Bemidji in March — 111 boxes weighing in at 55.5 tons. Most parts were perfectly sealed in their original packaging.

One of about 12 WWII aircraft restoration businesses in the U.S., AirCorps Aviation opened shop in the Bemidji Industrial Park in 2011.

Demand for restorations and parts has created new jobs at AirCorps. Just four years ago, AirCorps employed 35 people with a variety of skills; today there are over 50 employees.

AirCorps also offers fabrications, maintenance, reverse engineering, a repair station, aeroscanning, and artwork including an inventory of thousands of placards, decals, and nameplates.

Since the company’s launch in 2011, AirCorps has compiled a massive digital library that includes downloadable manuals and access to over 400,000 warbird engineering drawings. “No one else in our industry collects data like we do. Other restoration places use data with our logo,” Hokuf says.

The library website features historical information, video, and photos of the restored aircrafts. Much of the content is offered free of charge; for a nominal fee, subscribers can access digitized files of original drawings and microfilm records.

Hokuf says the library currently has a few thousand subscribers worldwide. “There’s still more data coming in than we can keep up with,” much of it from hobbyists and collectors.

Striving for systematic growth and leadership development

Currently AirCorps is working on its ISO

9001 certification with plans to follow up with its AS9100. “They’re working on the building blocks to implement best practices from both the FAA-certified management system they have and the 9001 tools they’re bringing to the forefront,” says Keith Gadacz, a business growth consultant at Enterprise Minnesota. Gadacz says the process will help the company move “from organic growth to systematic growth, and that’s what’s really exciting. It’s fun to work with a company that has a growth mindset like that. They’ve got some really neat stuff going on.”

Demonstrating leadership and connection within the community

In the past several years, AirCorps Aviation has partnered with area businesses and organizations to provide tours, give presentations, host open houses for veterans, work with school groups, and

sponsor educational organizations, like student robotics clubs and Bemidji High School’s Career Academy for Aerospace Engineering.

The company also participates in LaunchPad Bemidji, an organization that started in 2015 to enable local entrepreneurs to share ideas, stories, problems, and solutions. Besides regular meetings, LaunchPad offers a flexible co-working space for businesses and startups.

Hokuf says AirCorps is proud of what they’ve done to support and foster growth in aviation — “specifically in our area. General aviation activity here has grown a lot since we started. I’d like to think we’ve had a part in that.”

Sue Bruns

Work

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GOVERNANCE

Legislative Assistance

Advocacy pays off as Enterprise Minnesota funding initiatives head toward passage in the state legislature.

While Enterprise Minnesota is best known for offering cost-effective business consulting services to help manufacturing companies across the state grow profitably, the non-profit also advocates on behalf of those same companies in the public policy arena.

Enterprise Minnesota has used strong relationships with lawmakers to make significant strides in this year’s legislative session on behalf of manufacturers. Sen. Aric Putnam (DFL-St. Cloud) and Rep. Jon Koznick (R-Lakeville) introduced bills authorizing funding to help Minnesota’s small manufacturers and their employees.

The House Jobs and Economic Development Committee approved $1 million for the Growth Acceleration Program (GAP). In state statute since 2008, GAP is a direct investment for small manufacturers that need a boost to help them stay in business and keep growing.

The Senate passed $1 million for outreach efforts aimed at helping manufacturers with 35 or fewer employees. The approved funding measure is particularly valuable because it can be matched with federal dollars through the U.S. Manufacturing Extension Partnership.

A robust return on investment

“Investments in manufacturing are investments in our Minnesota communities,” Sen. Putnam said in support of the funding measure. “Manufacturing worker wages are 16% higher than the state’s average wage, and for every $1 spent in manufacturing, there is a total impact of $2.60 to the overall economy.”

Enterprise Minnesota coordinated a strong demonstration of support for the funding programs during committee consideration of the bills. Lynn Shelton, Enterprise Minnesota’s vice president of marketing & organizational development, was joined by several clients who testified before the relevant committees or submitted written statements describing the impact of the programs on their companies.

Kevin Delk is president of Delmar Company, a Lakeville-based plastics manufacturer that has grown from seven to 37 employees in the last two decades, in part with help from Enterprise Minnesota.

He told the committee that GAP funding assisted Delmar in becoming ISO certified, and later the company implemented a system for growing its revenue.

The Tongue and Groove Store, a wood

products manufacturing company in Duluth, used GAP funding to implement strategic planning and value stream mapping that allowed the company to expand its business while maximizing flow throughout its plant, the company’s vice president, Ann Anderson, told the committee. The company has grown to 22 employees and plans to hire five to seven more in 2023.

The experiences Delmar and Anderson had with GAP are indicative of the program generally. “GAP has proven its return on the state’s investment by at least $25 for every dollar invested,” Shelton said. “When these

funds are not available, as was the case last biennium, manufacturers repeatedly tell us that they are unable to invest in improving their companies and retaining employees.”

Reaching small manufacturers

Enterprise Minnesota has found that the state’s smallest manufacturers, specifically those with fewer than 35 employees, are often neglected, particularly in Greater Minnesota because they are too far away from affordable consulting resources. The separate outreach funding in the budget bills will make consulting services more affordable for those companies.

During consideration of the bill, Rep. Koznick explained the critical role those

Enterprise Minnesota’s vice president of marketing and organizational development Lynn Shelton testifying before the House Jobs and Economic Development Committee.

“GAP has proven its return on the state’s investment by at least $25 for every dollar invested.”

–Lynn Shelton, Enterprise Minnesota’s vice president of marketing & organizational development

companies play in the state’s economy, now and in the future. “Very small manufacturers are often overlooked for assistance because of their size, but they have incredible potential to grow and positively impact their communities.”

Mike Jensen, president of Gauthier Industries in Rochester, Minn., a precision metal fabricator, and a former chair of the board for Enterprise Minnesota, testified in support of the legislation.

Gauthier has worked with Enterprise Minnesota for 20 years on projects from revenue growth and strategy to leadership training and upgrading its ISO business management system, Jensen explained. His company also participates in monthly peer council meetings with other manufacturing leaders.

Though Gauthier is a mid-sized manufacturer, with 82 employees and sales revenue of $17 million, Jensen strongly supports the legislation because it will strengthen the entire manufacturing sector by helping more companies access support.

Enterprise Minnesota “has a great opportunity to provide many more manufacturers with their advisory services, but they can only reach a limited number of companies without state resources,” Jensen testified.

Growing support in the legislature

Strong bipartisan support of the funding measures is the result of decades of outreach efforts undertaken by Enterprise Minnesota and manufacturers across the state.

Enterprise Minnesota works closely with manufacturers to build solid relationships with policymakers. Legislators have toured more than 400 manufacturing facilities around the state, and clients are always eager to offer testimony in support of manufacturing initiatives in the legislature.

The fruits of these efforts are seen in support for the bill. “The Minnesota legislature consistently recognizes manufacturing’s tremendous economic contribution, and that shows how effective these companies have been in demonstrating their value to their communities and the state,” Shelton says.

—Kate Peterson

[At the time of this writing, the funding measures were a part of the House and Senate budget bills.]

PHOTOGRAPH BY ROBERT LODGE

INSIDE ENTERPRISE MINNESOTA

Finding Next Steps

When Ally Johnston arrives on a job site, she takes note of operations in a way that only a seasoned veteran of the manufacturing industry could.

As a business growth consultant for Enterprise Minnesota, Johnston knows a thing or two about what it takes to elevate production to the next level. And she brings

real-world experience to the table after 10 years on the job at Genesis Attachments, a Superior, Wis.-based manufacturer of heavy steel hydraulic equipment used largely in the salvage and demolition industries.

After graduating from the University of Minnesota Duluth with a degree

in industrial engineering, including a concentration in automated systems from her studies in Sweden, Johnston landed a position at Genesis, where she worked as an industrial engineer overseeing quality control and as operations manager.

“I always tell the client, ‘I’ve been in your shoes,’” she says. “‘I know the problems you’re facing.’”

“All that experience helps,” Johnston continues. “And I think I’m lucky, because I only worked for one company, but we had multiple owners and we had different scenarios play out while I was there.”

Those frequent changes in leadership repeatedly thrust Johnston into new roles, even overseeing HR for Genesis at one point. Johnston draws on that experience as a consultant and says, “I think that’s huge for building credibility with our clients.”

Her experience at Genesis enabled Johnston to become familiar with the company’s operations, suppliers, customers and competitors. Johnston says it has been exciting to learn about other manufacturing enterprises as a consultant.

“The diversity of manufacturers I’ve worked with at Enterprise Minnesota has been a revelation. I had no idea how much and how many different types of products were made here. It still shocks me,” she says.

Bob Kill, president and CEO of Enterprise Minnesota, says Johnston’s youth belies her knowledge. “She is very comfortable in her own skin, as who she is, and she has a lot of experience tucked into her.”

“She’s a phenomenal listener. And a consultant like that knows how to see things that the rest of us don’t. Ally’s really good at that, and she picks up things as she’s visiting or walking the floor,” he adds.

Bill Martinson, a business development consultant for Enterprise Minnesota, says that based on what he knows of Genesis, Johnston ran a tight shop.

“She didn’t just run a shop but she ran a shop that was at the top of its game. I think that type of experience is invaluable,” he says.

Johnston’s specialty at Enterprise Minnesota is to help clients use continuous improvement to enhance processes both on the office side and on the shop floor.

She looks at work flows within ERP (Enterprise Resource Planning) systems, how a company processes information, manages orders on the shop floor, and efficiently uses machines. She helps set up preventive maintenance programs and facility layouts, “pretty much anything

Consultant Ally Johnston uses her diverse experience to help clients build on quick wins.

As a business growth consultant for Enterprise Minnesota, Ally Johnston knows a thing or two about what it takes to elevate production to the next level.

that’s going to improve the operational excellence of a company and how its processes work together,” she says.

Martinson says he has probably been most impressed with Johnston’s acuity. “She sizes things up so quickly.”

Johnston also works with two peer councils in northeast and northwest Minnesota. Those meetings typically convene around a dozen manufacturers per month, with Enterprise Minnesota helping to coordinate the conversation.

Johnston keeps in her lane, frequently deferring to the expertise of clients in their own distinct industries.

“My favorite thing about the job is problem-solving with clients, where we have a goal and we’re all responsible to reach that objective. I get to help, but it’s really up to them to be the subject-matter experts,” she says. “That’s what continuous improvement is all about: The subjectmatter experts come up with ideas; I’m just providing tools to help them fix their problems.”

Johnston strives to focus on logical next steps for clients.

A key to a consultant’s success, she says, is to “meet the client where they’re at.” Prescribing ambitious unachievable objectives “doesn’t benefit anyone,” she says. “It just makes them feel bad. We have

that produces a quick victory converts them into tackling something bigger.”

Martinson has observed Johnston’s ability to connect with people of all backgrounds and her unflappable demeanor, even in stressful situations. He recalls an outdoor presentation in which she laughed off getting splashed with mud from a passing skid loader.

He describes Johnston as a natural leader. “These kinds of people have an air about them. When they walk into the room, you can feel that they’re in charge. And when they speak, everybody listens, because they make a ton of sense. She just has that skill.”

Outside of work, Johnston maintains a busy life, staying active with a husband, two daughters, ages 6 and 3, and a dog.

to put ourselves in their shoes. Every client is different.”

Kill lauds Johnston’s ability to help clients find quick wins. “Many of our clients know they should be making some improvements. They just don’t know where to start. And sometimes they’re so busy that they don’t start. So, finding that first step

“They keep me pretty busy.”

For fun, Johnston says, “I’m a typical Duluthian,” describing her proclivity for outdoor activities. “I mountain bike. I cross-country ski. I love hiking and running on our trails. I also love downhill skiing and snowboarding.”

Peter Passi

Prescribing ambitious unachievable objectives “doesn’t benefit anyone,” Johnston says. “It just makes them feel bad. We have to put ourselves in their shoes. Every client is different.”

Breaking Down Barriers

ake Altendorf was immediately confronted by the competitive realities of the worker shortage when he closed the deal to take over Carstens Industries in December 2019. The Melrose-based fiberglass manufacturer makes car parts, ventilation equipment, carnival rides, and rock climbing walls for short- and medium-run clients looking to buy 1,000 parts or fewer per year. While the workforce had doubled over four years, its staff of 25 employees was struggling to balance projects from new clients while maintaining its current workload.

“It was like pouring more into a full bucket,” Altendorf says. Whenever the team attempted to take on new projects, something else spilled out. They couldn’t catch up. Altendorf tried all of the traditional things — job flyers, advertisements, and even temporary employment services, but the needle wouldn’t budge.

“We’ve always had hiring challenges,” he says, “and to start out my ownership in that time period was challenging and frustrating at the same time.”

In the midst of it all came an application from a candidate fluent in Spanish but

speaking limited English. Altendorf made the hire, excited for anyone willing to work. Then, the new hire referred a friend, the latter speaking no English. This was almost two years ago, but what followed and the lessons learned created a revolution in hiring practices for the company that continues today.

“It really took that one person to bridge the gap,” he says, “but one person who speaks English can keep five people working [who don’t].”

Since 2020, the company has grown from 25 to 50, and more than one-third of staff today speaks Spanish, with a handful of bilingual liaisons who help the company work across the language barrier.

The Carstens workspace displays signage in both English and Spanish, meeting notes are translated and dispersed, and bilingual team members help to answer questions from non-English speaking employees on policies, benefits, or disagreements. When larger training sessions are held, Carstens retains outside translators to communicate between supervisors and trainees.

Altendorf says the transition required interrupting production (during an already busy season) for long enough to handle

training, which took even longer owing to a difference in language. However, once one department finished onboarding new staff, the increase in production would flood the next department down the line, mandating a company-wide cycle of growth. Meanwhile, a steady stream of referred applicants — many of whom were first-generation immigrants leaving behind professional careers — ensured finding candidates was no longer the hold up.

Altendorf cautions that his company’s growth doesn’t necessary reflect a “secret sauce,” and that new challenges rise up every day. What doesn’t waver is the company’s commitment to opening doors. He says it requires progressive policies at a business and municipal level, too, as the greatest obstacle for long-term employment is often basic necessities. Many of Carstens’ new hires arrive with no credit history, and, as such, no way to secure permanent housing.

The best solution requires a collaboration of business, politics, and people.

Decades of diversity

Altendorf and Carstens Industries’ willingness to hire across language

How two manufacturers have used relationships in ethnic communities to resolve their employee shortages.

Left to right: Anne Haakenson, vice president of inventory, logistics and warehouse operations; Michael Ostvig, human relations manager

barriers isn’t isolated — nor is their success in fending off workforce shortages. In Paynesville, Avon Plastics has a decades-long history of diversified hiring that has seen the company’s workforce grow from roughly 75 to 110 employees in the past decade.

It started in a trailer alongside Middle Spunk Lake in the 1960s. The company eventually relocated to a facility in Paynesville and manufactured medical devices, boat bumpers, and hula hoops. Founder Donald Reum holds a patent for the original plastic Slinky — a fortunate accident of plastic extrusion — along with 25 other patents.

Today, Avon Plastics’ vice president

works between Minnesota in the warm months and southern states during colder seasons. Haakenson says the company now enters production every year with confidence in staffing, which is great for the company, but in return Avon Plastics has extended medical, dental, and financial benefits to seasonal employees — something that stands out when compared to other employers fighting for the same workforce.

of inventory, logistics, and warehouse operations, Anne Haakenson, is the third generation in the company’s family leadership. Her father pivoted production to include composite decking in the early 2000s, and their brands include Armadillo Composite Decking, Master Mark Plastics lawn and garden products, Grid Axcents lattice panels, Quix Interlocking Tile, and TurboClip deck clips.

Haakenson says the Paynesville area has always had a diversity of culture and language, and the company’s hiring embraces that. Like Carstens Industries, signage at Avon Plastics is multilingual, and human relations manager Michael Ostvig speaks fluent Spanish. Ostvig says there’s a connection, an energy, that transcends language and culture.

“When you see someone working hard — no matter what the background — that speaks volumes,” he says.

Two years ago, the plastics manufacturer found a durable solution to its need for seasonal staff by employing a Spanish-speaking labor force that

If there’s one consistent takeaway from the experience of both companies, it’s that the first step is the hardest. Altendorf says he understands the hesitation business owners may feel when contemplating a multilingual workplace. Language is a basic building block in any team, and the difference of language can lead to misunderstandings and unexpected obstacles. Haakenson says that Avon Plastics, as an example, has needed to ensure that their benefits providers have staff fluent in Spanish to assist employees calling with questions regarding benefits and coverage.

Both companies agree the end result has been worth the work — especially having access to motivated, passionate employees who are often overlooked. Veteran employees benefit as well. For his own manufacturing floor, Altendorf says, “The early adopters, the people that embraced the language challenges at the beginning, have found that their workload is much more level because they’ve got support.”

And Carstens is now fully staffed and focusing on expanded training to cover illnesses, vacations, or shifting economic and marketplace circumstances.

Ostvig offers this advice to any company struggling to capture candidates and willing to look beyond traditional hiring barriers: “Be open to the possibility that people may surprise you — which they often do — and that it can be good and positive for everyone involved. It’s a simple approach, but I think it yields great results.”

—R.C. Drews

Jake Altendorf, president

When Welding Isn’t Enough

Once upon a time, at a small southern Minnesota manufacturer, there was a welder who was content to just weld. Or so he thought.

He was a great welder, but his company needed more from him. It needed him to be a leader. And even though he didn’t

see it, management saw something in him suggesting he had leadership skills.

“There are days where he just wants to keep his head down, get work done, and weld,” says Abbey Hellickson, a business growth consultant for Enterprise Minnesota. “We’ve been working for 12

weeks together and yesterday he says, ‘I really have learned that I can’t just do that anymore. It’s my responsibility to lead the team, plan the work. And if I don’t do that, we don’t have good days.’”

This scenario is familiar to Hellickson, whose latest Enterprise Minnesota presentation takes a deep dive into what she calls the “leadership pipeline.” The tale of the welder illustrates someone going from the bottom level and taking the next step, one that is perhaps the most difficult in the pipeline.

The welder’s realization of the value of welding less and leading more — and how it can ultimately make him more valuable and the company more profitable — represents a crucial point on the pipeline.

“From my perspective, it was kind of the ultimate ‘a-ha’ moment for him,” Hellickson says. “He realized he needed to get out from under the helmet and be able

to truly do his job in that lead role.”

The leadership pipeline resembles a ladder. At the bottom is the worker, perhaps a welder, simply doing his job and managing himself. The next rung up involves managing others, a transition Hellickson says can be difficult because it asks someone to do something above and beyond the job they were hired to do.

“Typically, it’s the first time they’ve ever managed people,” Hellickson says. “And in manufacturing environments, they still actually do some of the work themselves. Now they have to manage and lead others, and so the time-management element for them is really challenging. On top of that, they’ve never had to deal with performance issues, the coaching conversations, and the people side — ‘now I have to hold people accountable who I was just eating lunch with yesterday.’”

The next phase of the pipeline — the next rung up — is a department head. Let’s say our welder gets promoted to operations manager. At this level, the day-to-day work involves a higher thought process and more discussion about strategy. This

Abbey Hellickson shows companies how to make doers into leaders.

LEADERSHIP PIPELINE

Abbey Hellickson, business growth consultant, Enterprise Minnesota

Developing leaders takes time, and not everyone is cut out to lead. Many employees excel at the job they were hired for; not all of them are natural leaders.

phase requires little “doing” on the shop floor, and more meeting with department heads to develop strategy and guide the company mission. These leaders must develop communication skills and tools for measuring progress.

The final phase, then, is business leader. Leaders at this level engage in alignment thinking — the idea that every action must point toward an end goal of profit. They focus on maintaining a balance between strategic and operational thinking. Business leaders must coach department heads, or functional leaders, and set the tone for the company’s mission.

“This is about your organizational competencies,” Hellickson says. “What’s our niche? What are we good at? What are we going to focus on? How are we going to be successful today and tomorrow?”

Hellickson says she’s currently working with a business leader who is preparing to strategically pare down the number of products it offers — a business-leader decision about niche and the company’s future.

Developing leaders takes time, and not everyone is cut out to lead. Many employees excel at the job they were hired for; not all of them are natural leaders.

Hellickson suggests giving potential leaders “stretch assignments” to see how they respond. If an employee excels at such a stretch task and demonstrates an eagerness for more responsibility, he or she may be an emerging leader.

Hellickson says a business leader relayed a story recently of giving an employee a “flavor of leadership” by asking him to undergo some training that felt above his particular station at the company. That kind of gesture can tease out if someone has a desire to evolve from that bottom rung to the second.

A final element to Hellickson’s leadership presentation that isn’t on the pipeline ladder is allowing people to step out of the pipeline. Not everyone wants to lead. Think of Tom Cruise’s character in the film “Top Gun: Maverick.” While known for rogue and heroic exploits in fighter jets, he never seems to be able to climb in military ranks. Why? All he wants to do is fly fighter jets.

“That’s a great analogy,” Hellickson says. “Allow people grace. If leadership doesn’t go well for them, allow them the grace to step back into an individual performer role. We lose people a lot of times when the leadership transition doesn’t go well.”

When someone is groomed for leadership, Hellickson says, it gives them a glimpse of what people in leadership do every day. If the leadership experiment fails, and they’re allowed to return to their previous position with grace, the perspective they gained — seeing the other side — makes them a better worker.

Robb Murray

Four Questions

Rachel Johnson

Returning home to grow business in the Northland.

What is APEX and what drew you to the organization?

APEX was founded almost 20 years ago here in Duluth to serve a 10-county region in Minnesota and Wisconsin. It’s about the size of West Virginia, and APEX takes a regional approach. We’re all in the same economic development eco-system, working together collaboratively, recognizing that when something happens in Duluth, like a new manufacturer setting up shop, it affects the Iron Range and vice-versa. So, initially APEX was formed because there was this recognition that we couldn’t just rely on the government for economic development programming. Why not leverage the know-how, expertise and drive of the private sector to problem solve and attract, expand, and retain business in our region?

I grew up on the North Shore in Knife River and left for college and moved down to the Twin Cities for a time, thinking that’s where I needed to go for a successful career with opportunities. But I quickly made my way back to the Northland because of this beautiful view of Lake Superior [gesturing out her downtown office window]. Everything led me back to trying to make an impact in my community and my region. I’ve got a lot of pride and sense of ownership in this place. When this opportunity to lead APEX became available, it was such a nice culmination of so many things that I had done, my interest in doing something bigger than myself, and working with others who also had the energy, enthusiasm, and belief that we can truly have a special place here for future generations to thrive.

What are some of APEX’s successes?

It was before my time, but I think of the Involta Data Center and the AAR aircraft maintenance base that now Cirrus Aircraft has acquired to develop into its innovation center. Those are

two top-of-mind examples, in terms of attracting business in the case of Involta, and expansion and continued innovation of an existing business in the case of Cirrus.

When I met with Cirrus, one of our investor members, they announced their innovation center and their plan to hire 160 employees. But they have been having a hard time recruiting. For example, they’ve had 35 recruits over the

past year who accepted a job but ended up backing out because they couldn’t find suitable housing. So, I made a commitment to do something about it. We invited developers, financers, builders and municipalities to get together in the same room, so they could hear from Cirrus about the challenges they face and understand what the demographics of their employees were, in terms of what kinds of homes or rentals they

Rachel Johnson was named president and CEO of the Area Partnership for Economic Expansion (APEX), serving Northeast Minnesota and Northwest Wisconsin, in August 2022. Johnson earned a bachelor’s degree in management from the College of St. Scholastica and went on to hold multiple leadership roles in commercial real estate, permitting, the energy sector and stakeholder communications. She lives in Duluth, where she serves on the Chamber of Commerce, Better In Our Backyard and the YMCA Heritage Foundation.

could afford. That was a huge catalyst.

Coming into this job I wouldn’t have thought we would be focused on housing. But it makes perfect sense, because our three main objectives are attraction, expansion, and retention of business. And retention is a lot easier than attraction.

What are some of APEX’s other significant challenges?

We see the permitting process in our state as lengthy, unpredictable, and not very transparent. We are working with the Minnesota Chamber Foundation, which is conducting a permitting study to uncover impediments and areas where we can improve to attract businesses and industries to our state. When they look at our track record, it becomes a perceived barrier to come to our state and particularly to our region.

We have such a wealth of natural resources, but there are groups concerned about the environmental impacts of extracting those critical minerals. So, we’ve got this lock-up of values and

philosophies. But what I find is, at the core, we share common ground, because we all appreciate and want to protect this beautiful place we live in. Yet, there’s an opportunity to meet the demands of our state and the nation for critical minerals that go into things like electric vehicle batteries, solar panels and some of the growing needs of our green energy economy. That’s one of the foundational things I’m working on at APEX. How do we work to find that common ground, so we can use some of these critical resources in a responsible way to meet the demands of our economy? I’m trying to restart that conversation, because I think our natural resource-based economy is a huge key to our state’s success.

Is the region able to hold onto talent, or are young people often of the opinion that they need to move away to find success?

There is still that perception. But I think there’s an opportunity for employers and educators to sync up and better

articulate the opportunities in our own back yard, because almost every single company I talk to is challenged by the workforce shortage and the availability of good employees, especially when a lot of companies have an aging workforce and they’re concerned about creating the pathways and the pipelines for new employees to get into their industry. There was a lot pressure in the past for young people to get a liberal arts degree, but what I see now is a huge shift in that mentality, where people recognize we’re really in desperate need of folks who have technical skills. It’s a huge opportunity, too, because young people can get into some of these careers in the trades and manufacturing with much less expense or debt. We do a manufacturers’ tour with high school students and employers in the region, from Two Harbors to Duluth to Fond du Lac, where young people can see first-hand what the facilities look like and the job opportunities that are available. That has been such a huge eye-opening experience for them.

Well-being

Helping Hands

Manufacturers turn to chaplains to address employee wellness.

By Robb Murray

Left to right: Joe Plunger, president, Midwest Metal Products; Jeff Hoch, chaplain

Jeff Hoch turns a corner and strolls past the open flames dancing atop freshly poured molten metal at Midwest Metal Products.

Down the aisle, Jeff Thorn turns and sees Hoch approaching. His mouth stretches into a smile as he takes his right glove off and extends his arm. The two shake hands, looking a lot like old friends or longtime coworkers.

They are neither.

Hoch is a chaplain, hired by Midwest Metal Products to counsel employees on personal matters. Thorn works in the floor molding production area at Midwest Metal. Hoch comes around a few times a week to check in. Thorn is a frequent stop.

“I like talking to Jeff,” says Thorn. “He’s an easy-going guy, easy to communicate with.”

Hoch is there to be a sounding board. He listens to people when they have the kind of problems they maybe don’t want to bring to supervisors. He lets people vent about their home life or relationships, things they maybe don’t want to bring up around the water cooler.

And for some, like Thorn, Hoch is a friendly face and a firm handshake who won’t judge. Sometimes that’s all he needs.

“It’s almost like a little safety zone, if that makes sense,” Thorn says. “Like a little timeout area where you can just talk about problems if you need to.”

Hoch’s presence at Midwest Metal isn’t some unique idea from the mind of company president Joe Plunger. The use of chaplains is actually a growing phenomenon around the country as companies, including manufacturers, take steps to help employees cope with stress.

The goal, chaplains say, is to give workers opportunities to have what can often be difficult conversations, the kind not appropriate to have with a supervisor or coworkers. Marital problems, financial struggles, depression, or even job-related stress and anxiety all fall under the umbrella of things chaplains are eager to help with.

And in today’s competitive labor environment, it makes sense for employers to do whatever they can to keep

employees happy and healthy — both physically and mentally. Happy workers are better workers. And it doesn’t hurt that offering the services of a chaplain sends a message that the employer cares about the people it hires.

Crisis intervention

Rev. Larry Forsberg was a full-time pastor for 30 years. During that time, he’d seen some of the more unique aspects of ministry.

was not. So, he contacted Marketplace Chaplains and went through the process of becoming a workplace chaplain.

“I don’t like sitting around doing nothing,” he says.

Once Forsberg got going with Marketplace Chaplains, he learned quickly this wouldn’t be an easy retirement gig, and that was fine by him.

“It’s helping people out with their personal problems,” he says. “They’re facing emotional or relational issues. It’s

He’d worked in the state prison system helping men transition from incarceration to freedom. He’d also worked in a senior living community. He retired in 2019 from full-time ministry. Sort of.

“I failed at retirement,” he says with a laugh.

That failure came at the hands of Marketplace Chaplains, an organization that has put chaplains in workplaces in every state in the nation as well as Canada and Mexico.

After retirement, an acquaintance who happened to work with Marketplace Chaplains asked if Forsberg was truly ready to give up helping people. After a short period of thought, he realized he

really a one-on-one personal thing. We’re not there to teach them about the Bible. We’re there to help them process their life and difficulties and make them a more healthy employee.”

Sometimes, Forsberg says, the need for help is dire.

When Forsberg visits companies repeatedly he says he’s able to establish relationships. In some cases where individuals appear in need of additional help or attention, Forsberg will exchange cell numbers. And in one recent case, having an employee’s cell number paid off.

There was a gentleman at a company Forsberg was assigned to, a company

The goal, chaplains say, is to give workers opportunities to have what can often be difficult conversations, the kind not appropriate to have with a supervisor or coworkers.

where he’d made repeated visits and established relationships, who was having problems at home — problems that had resulted in some dark thoughts. He reached out to the man, and reached out to authorities who were able to step in and help.

“I was there at the right time and helped prevent it,” Forsberg says. “I called the right sheriff and he intervened and found the man. Thank goodness that was not a completed disaster. And that’s happened

to me about three times in the last three years.”

Forsberg says his help runs the gamut of goodwill. He says he’s helped client employees plan funerals, and he has visited incarcerated loved ones on a client employee’s behalf. In one case, where an employee’s work schedule wouldn’t allow it, Forsberg lined up a visitor for an employee’s mom who was battling stage 4 cancer in a hospital.

“I said, ‘Do you mind if I get somebody to go see your mother?’ and she just broke down in tears,” Forsberg says. “That meant an awful lot to the employee.”

This kind of work doesn’t always mean direct involvement. In many cases, the protocol for Marketplace Chaplains dictates referral to outside resources. If an employee needs more help than a chaplain can provide, it may mean referral to a marriage or financial counselor. It might mean help from an anger management professional, or referral to counseling.

But in most cases, having a chaplain around — with a friendly face and a career’s worth of experience listening to

people’s problems and dispensing advice — is enough.

“I’ve gotten calls on weekends and nights and I take them every single time,” Forsberg says. “I never say, ‘Call me later.’ I would never do that. And so that’s what we do. We are available for the employee to talk about the crisis that he or she is facing.”

Part of the team

At Coldspring — a family-owned business that makes monuments and other structures from granite, limestone and sandstone — they’ve taken the idea of a workplace chaplain to the next level: He’s on staff.

Company president Greg Flint has been with the company for 40 years. The company itself has been in operation for 125 years. Flint says the company’s existential mission is to thrive for another 125. In order to do that, he says, managers need to focus on, and take care of, the people who work there. They do that by deploying a theory called “well-being six.” This theory breaks down human

The Centers for Disease Control and Prevention notes mental health diagnoses and substance abuse rates went up during the pandemic.

well-being into six areas: autonomy, environmental mastery, personal growth, positive relations with others, purpose in life, and self-acceptance.

“When an employee has a gap in wellbeing,” Flint says, “it will cause them to not be able to engage in the work that they’re doing. If someone’s dealing with a health problem, can they really be focused on the job and contribute to the job? Our belief is that it’s our job to serve those employees.”

The COVID-19 pandemic, Flint says, brought into focus that some employees were struggling in certain areas of wellbeing, including social and spiritual well-being. The question for Flint and Coldspring became, “What’s the best way to help these employees?”

“That’s when we realized we needed to bring in someone who is skilled in those other areas,” Flint says. “And that someone else is a chaplain.”

Coldspring isn’t the only place where COVID-19 took a toll on people’s wellbeing.

The Centers for Disease Control and

Prevention notes mental health diagnoses and substance abuse rates went up during the pandemic. Suicide rates also climbed, and continue to rise, since the pandemic’s onset. In figures reported in February, 38% of adults ages 35-49 reported having symptoms of anxiety and/or depressive disorder. For younger adults — those ages

was brought in to tackle those social and spiritual well-being issues, but he’s since been helpful as employees sort through personal issues that can affect all areas of well-being.

“Sometimes addressing inner peace will reveal there’s a financial problem. Or maybe there’s a social problem, maybe their kid’s getting bullied at school, maybe there’s a health problem,” Flint says. “So, the chaplain actually ends up affecting all the dimensions. From that standpoint, he is engaged in a lot of different stuff.”

Like Forsberg, Lawson sometimes gets the kind of calls no one wants to get.

“We have an employee whose son committed suicide,” Flint says. “Lawson was the guy who got the call from that employee’s dad at two in the morning.”

18-24, that number is 49%.

The latter ages represent a substantial chunk of anyone employed by a manufacturer, making Flint’s move look like a shrewd one.

Coldspring hired Jeff Lawson as a full-time chaplain. Flint says Lawson

Lawson has also made frequent visits to hospitals and nursing homes to visit employees’ loved ones. Chaplains can, in essence, become conduits between the employee and his or her family.

“There were times Lawson spent a whole day in the hospital helping a family,” Flint says.

“When an employee has a gap in well-being, it will cause them to not be able to engage in the work that they’re doing.”

Flint adds that Coldspring also has an employee currently fighting cancer. Lawson has visited that employee every week, keeping that employee’s connection with Coldspring.

Abbey Hellickson, a business growth consultant for Enterprise Minnesota, says she first heard of manufacturers using chaplains during one of Enterprise Minnesota’s peer council sessions. Peer councils allow executives of small and medium manufacturers to talk candidly about issues or challenges they’re facing, and get real-time feedback from peers.

At a recent session, when the issue of dealing with mental health challenges was raised, one manufacturer said the company had been using a chaplain to help with employee morale and wellness.

“We care about their whole self, right? So, we’re concerned about the lives of our employees in and outside of work,” Hellickson says. “It helps create that environment that we want you to be your best here and in your personal life.”

Hellickson says having a chaplain available to employees can also be a valuable retention tool. A display of nextlevel care, Hellickson adds, is certain to stick in a worker’s mind. People want to work for a company they think cares about them.

Life coaching

Joe Plunger is president at Midwest Metal Products in Winona. He’s been using a chaplain — Jeff Hoch — for several months.

Plunger says the idea for using a chaplain sprouted organically when various managers noted that a number of new or veteran employees needed the kind of help the company wasn’t qualified to provide. The problem was especially apparent in the COVID era, a time when Midwest Metal, along with many other manufacturers, struggled to fill labor forces.

“The description one or two people in my group used was, ‘They could use life coaches,’” Plunger says. “We’re finding out they have other problems, other situations that they’ve gotten themselves into and they could really use some life coaching on how to get some things done.”

Not long after that discussion, Plunger says he heard about manufacturers using chaplains to address some of those concerns. He contacted Marketplace Chaplains, and signed a one-year

contract to have Hoch come to Midwest Metal several times per month.

Hoch makes his rounds and, when he’s done, he fills out a comprehensive and confidential report that Plunger can evaluate to gauge the program’s progress. The report includes information such as types of issues discussed, emails and text messages to and from the chaplain, referrals to outside agencies (if necessary), and other details.

When workplaces contract with Marketplace Chaplains, they have a choice of how they want the service presented. They can present as chaplains

Having a chaplain available to employees can also be a valuable retention tool. A display of nextlevel care is certain to stick in a worker’s mind. People want to work for a company they think cares about them.

Greg Flint, president, Coldspring

or, if a workplace wants to keep things secular, they can present as care partners.

For Plunger, it’s chaplain.

“I am a person of faith, and it fit with my thought of trying to care for the flock, if you will,” he says. “I look at the business this way: If we have 45 people here, I’m one of them. I have 44 other people and their families who I’m responsible for providing a living to, and I want to do the things that help all of us succeed in that.”

At the same time, Plunger says he has no intention of pushing religion onto anyone. It’s a service to help people, simple as that.

“The idea was to find a resource that could handle those questions that are beyond the capabilities of us as an employer,” he says. “We’re not marriage counselors. We’re not financial counselors. And some people are too proud or too embarrassed to talk to a manager or a co-worker. So, we give them an outlet.”

That outlet is Jeff Hoch. And for workers in a foundry, they got the right guy. Hoch, himself, worked in a foundry for several years. He also worked on a pig farm, has been a firefighter, and did a stint in the military.

As a chaplain for Marketplace Chaplains, he has two assignments. In addition to Midwest Metal, he visits a poultry processing plant in Arcadia, Wis. Coming to Midwest Metal, that foundry experience was helpful in relating to the hard work that goes into that profession.

“It gave me such a respect for the people who work here,” Hoch says. “Somebody could tell me they’re really struggling in their job, and I totally understand. It’s a hard job, and they deserve a lot of respect.”

In Hoch’s early days at Midwest Metal, he recalls watching a worker from across the shop floor. The worker was visibly angry, throwing things around his work area, clearly troubled. Hoch approached.

“He goes, ‘I have a problem with anger. Can you help me?’” Hoch says. “And so we talked for quite a while that night and that led to finding out more about his life, where he’s at, and that he needed some help and support. I did my best to provide resources here in the community, and I think that helped him. We still correspond quite a bit.”

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Widseth.com / Portfolio / Industrial

Savvy Diversification

How Central McGowan has used expansion and acquisitions to achieve dizzying success.

By Sue Bruns

Left to right: Pete Rogers, president of automation; Joe Francis, president & CEO

For the past several years, growth and diversification have been key goals for Central McGowan (CM) in St. Cloud. Since 2014, much of the company’s growth has come in the field of automation, and the timing couldn’t be better. As the need for automation grows, CM’s automation department is meeting those needs and finding solutions for manufacturers across the U.S. and beyond.

From a small welding supply shop to a distributor of gases and supplies to an automation unit, the company has grown exponentially in the past several decades. Today the 76-yearold company includes three distinct business units: Automation, Distribution (industrial, welding and medical), and CO2 Solutions, all three providing an ever-increasing range of products and services.

Joe Francis, president and CEO of Central McGowan, sees the value of continuing change and growth. “Our acquisition pace may seem out of character for a more established, traditional 76-yearold company like Central McGowan, but I’ve always likened Central McGowan to more of a startup,” he says. “We’re growth-driven and entrepreneurial with an opportunistic mindset; it’s in our DNA. The key is having the right people, tools, technology, and talent to seek out and identify opportunities, then effectively integrate and optimize operations at the same time.”

THE ROOTS OF A FAMILY OWNED AND OPERATED BUSINESS

Central Welding Supply opened in 1947 and merged with McGowan Welding of Little Falls in 1965, creating Central McGowan. The company sold and distributed everything from welding machines and safety equipment to gases needed for welding and other industrial purposes.

The incorporation was also the beginning of what is now a third-generation family-owned business, going back to the early 1950s when Leo Henkemeyer (Joe Francis’s grandfather) first joined Central Welding as a salesman and later became sole owner. By this time, the company had already added a distribution center for welding supplies and a wide range of gases for industrial and medical applications.

In the mid-2000s, Cindy Francis, Henkemeyer’s daughter, took over as CEO and created a management team to help support her. Joe Francis became president and CEO in 2016, setting in motion the third generation of ownership and seven years of steady growth and diversification through acquisition.

Today, welding supplies include a comprehensive selection of products for MIG, TIG, plasma arc, stick, and laser welding. Julie Berling, vice president of marketing and communications, says the company’s dedicated sales specialists introduce interested buyers to the newest technology in welding by providing demonstrations of laser welders.

“We added laser welders to our product roster a little over a year ago,” Berling says, “and according to our supplier, IPG Photonics, we currently rank #4 in the nation for sales volume of their IPG LightWELD machines.” Since launching ColdZERO dry ice products (blocks, nuggets, and rice) in 2018, CM also

works with local rental companies and their partner Cold Jet to offer demonstrations of dry ice blasting. CM continues to grow its welding and distribution unit, has acquired several related businesses, and has added CO2 solutions and carbonated beverages. But it is the company’s emergence into automation and robotics that has extended its customer reach nationwide and worldwide.

CM’s Automation Center finds creative solutions to manufacturers’ labor shortages, ergonomics, and safety issues. It also helps businesses deploy automation to increase production and cost effectiveness.

Dean “JR” Kiffmeyer, CM’s vice president of business development, has worked for the company in a variety of capacities since 1996. He says Central McGowan has been involved in

automation for several years with the sales of robots through its welding supply stores. “We sold canned cells from Lincoln Electric and FANUC, pre-made robots. We may have offered some customization, but Central McGowan didn’t do any of it; we were basically a reseller.”

Kiffmeyer says CM is always looking for complementary businesses to help diversify and differentiate the company. The purchase of Pro-Fect Automation in Little Falls in 2016 enabled CM to expand into all areas of automation.

Kiffmeyer served as vice president of automation while the company searched for a qualified and experienced leader. In 2019, Pete Rogers joined the company as president of automation. Rogers’s experience and passion for the job has moved CM’s Automation Center forward, and the momentum continues to grow.

The automation plant in St. Cloud is a robot-filled space where innovative solutions to manufacturing challenges happen. Here, white FANUC cobots (collaborative robots) are hand-trained for specialized tasks, while various sizes of yellow industrial FANUC robots wait to be programmed.

Central McGowan is always looking for complementary businesses to help diversify and differentiate the company. The purchase of Pro-Fect Automation in Little Falls in 2016 enabled CM to expand into all areas of automation.

Rogers, a graduate of Central Lakes College (CLC) in Staples with 17 years of experience in automation and robotics, leads a team of 14, including two mechanical engineers and two electrical engineers. Many of Rogers’s team members are also CLC graduates.

When a client approaches CM, an Automation Center representative meets with the client to assess the company’s challenges. Next, CM engineers come up with a concept for a solution. Tech-savvy sales staff then put together a detailed project quote for the customer.

At any given time, the shop has 20 to 24 projects in progress. (A 25% increase from 2022 is projected for 2023.) The timeframe for completion of an automated solution varies greatly depending on the complexity of the challenge, but from the initiation of a project to its design, testing, and installation, the process usually takes 10 to 60 weeks or more.

Orders are built and tested on site, then disassembled, packaged, delivered and reassembled on the customer’s site.

“Robots can be programmed to do virtually any task,” Rogers says. “The sky really is the limit.” The most common applications include palletizing, general material handling, and machine tending and welding, using either cobots or industrial robots.

On the floor of the automation shop, Rogers points out an automated system designed to test 55-gallon plastic barrels for air leaks. The system moves four barrels along a conveyor, fills them with compressed air, and tests them for leaks. This particular system, when completed and tested, will be disassembled, packed up, and shipped to Taiwan where CM installers will set it up on site. Rogers says this is CM’s third project to go to Taiwan. CM has done business in South Korea as well.

Toward the back of the shop, three small yellow FANUC robots wait to become part of a system that will assemble five pieces into one for a medical company. A fourth much larger robot will be programmed to

polish a part for a foundry.

At another workstation, crew members test a white FANUC cobot. Rogers points out the cobot’s touch pad, with icons for various functions that look similar enough to what people see on their smartphones or tablets. “Training” a cobot is less intimidating than working with the specialized button-pushing computer syntax needed to program industrial robots.

“Every project, every job is fun in its own way,” Rogers says. “Each one presents a unique problem to solve. As engineers, we love that.” One of his personal favorites was designed to build pallets, “due to its multiple processes and degree of accuracy and speed requirements.”

On the floor, an A-frame structure is loaded up with pallet boards on both sides of the frame, which is then mounted onto a rotating base. A yellow industrial FANUC robot equipped with two pneumatic nailers quickly and accurately nails together the boards of the pallets.

Sensors on the perimeter of the workspace alert the robot to anyone or anything crossing the line, which then shut down the process, an important safety feature. But the primary advantage is the repetitive jobs the robot performs that would soon become tedious and tiring for human workers.

Where once there were concerns

about robots taking over people’s jobs, the situation today is not the same. “In the current labor market where any one worker has his or her choice of many jobs,” Rogers says, “no one is lining up for work as a nail-gunner.”

PROBLEMS THAT CAN BE SOLVED WITH AUTOMATION

Labor shortages have led many manufacturers to automation. According to a white paper report on CM’s website, manufacturing jobs account for only 8% of the job market, but with existing labor

shortages and projections that 27% of those manufacturing workers will retire by 2029, the demand for additional automation will only grow.

Add to that shortage the rising costs of wages, benefits, and injuries that lead to loss of productivity, to say nothing of medical bills and disability claims, and it’s difficult to maintain production without automation. Robots don’t require health insurance, sick leave, vacations, or a daily or weekly schedule; they can operate around the clock and eliminate repetitive, potentially dangerous, and injury-producing tasks that negatively affect human workers.

The FANUC robots in the CM Automation Center run smoothly and accurately and are reliable and easy to use, Rogers says. “They’re guaranteed to be maintenance free for 8 years — when other brands may need to be replaced.”

He says COVID-19 spiked the demand for automation solutions. “COVID caused manufacturers to ask, ‘What must we NOT shut down?’”

With pandemic and labor issues from the end of 2020 through 2022, CM had trouble keeping up with requests for automation, and, although they have leveled off, demands are still great. Before COVID, Rogers says, a two-year return on investment was comfortable for both the customers and the banks. “There’s less emphasis on that today since labor shortages continue to escalate. No one wants to stop production, and labor and benefits are expensive when workers can be found,” Rogers says. “Automation’s main focus is not replacing workers; it’s

about upskilling the workforce — moving people into higher-value roles that require a human touch while filling labor gaps and allowing the repetitive, dangerous work for the robots.”

Another vital component to his job is providing clients with the best advice.

CM’s Automation Center advises clients to consider what tasks would be best to take away from workers — repetitive, dangerous, ergonomic, health-related — so that the workers can be used elsewhere while robots complete those tasks.

“Smaller, simpler tasks might be best to automate first to free up the employees you have,” he says. Then those employees can be trained to work with the robots or work at other more value-add jobs.

Requests come from a variety of places, but, Rogers says, “Regardless of the industry, we’re almost always seeking to automate some sort of manufacturing or assembly process. We’re working with manufacturing processes across a wide spectrum of industries — from makers of industrial or agricultural equipment and construction to aerospace, medical, and trailer and recreational equipment and accessories. Automation casts a very wide net of opportunity.”

CM’s Automation Center is experiencing an uptick in interest from smaller businesses. Rogers says, “We love helping the smaller companies who struggle to find enough employees to fill openings and to bear the costs of benefits, medical claims, overtime, etc. Our largest challenge is fitting robots into environments with a job-shop mentality — meaning that their processes are very diverse and lower volume. Not surprisingly, this is exactly where a lot of the automation innovation is currently being focused.”

THE FUTURE OF CM?

“Our diversified businesses include distribution, automation and CO2, which allow us to cast a pretty wide net when it comes to looking for opportunities,” says CEO Joe Francis. “I believe there will be more acquisitions down the road; it’s just a matter of when and what market, what type of business. We are looking at investing back into the business with physical assets and people.”

That culture of investing in people rings true for Kiffmeyer,

who says that he has never asked for a raise or a change of position in his 27 years with the company, but that the Henkemeyer/Francis family has recognized his strengths and has presented him with opportunities.

Julie Berling lets the past predict the future. “Major transformations that began in 2011 have taken the company from a 55-person, two-location welding supply company to the nearly 140-person, eightlocation, diversified company CM is today,” she says.

With five retail welding gases and supply branches in Mankato, Minneapolis, Little Falls, St. Cloud, and Fargo,

including a state-of-the-art welder repair and service center in St. Cloud, four CO2 Solutions branches in St. Cloud, St. Paul, Fargo, and Des Moines, and a rapidly growing Automation Center in St. Cloud, CM’s “supply” has plenty of demand from over 20 different industries across the U.S.

And Pete Rogers has no doubt about the future of automation. “Our automation area is growing nationally at an increasing rate. We have installs from coast to coast and see continued opportunity nationally. However, we remain focused around the five-state area and committed to providing service to our many gas and welding supply customers who have automation and robotic systems.”

The recent purchase of another building adjacent to the 15,000-square-foot Automation Center in St. Cloud will ease some growing pains. “We don’t have firm plans in place yet as to exactly what the new space will be used for,” Rogers says, “but it will be built with the needs of our overall business in mind — which includes automation as well as our distribution and CO2 solutions business units — all of which are growing.”

As for automation solutions, projections indicate that the labor shortage will only worsen. “Automation will be needed to fill the gaps created by those shortages so our customers can continue to compete domestically and internationally,” Rogers says. “We see a very bright future ahead.”

Pete Rogers says COVID-19 spiked the demand for automation solutions.

ENGAGING WITH AUTOMATION

Implemented correctly, automation can ease labor demands and improve operations. Here’s how.

By Eric Blaha

As manufacturers wrestle with the persistent worker shortage, automation offers an excellent strategy to address the labor crunch while improving overall operations.

Companies new to automation, and those that have tried before and fallen short, can achieve success in a short time if they follow a process that includes three key actions: communicate, carry out, and cultivate.

Communicate. The process begins with communication — what automation is, the company’s goals for it, and how to determine specific automation targets.

Carry out Taking quick action is critical for maintaining employee engagement. After stating goals and gathering input from employees, shift into trying different automation efforts as soon as possible.

Cultivate. As automation efforts are tried, share the results with employees and begin building a framework that extends beyond the initial automation activities.

Employee engagement at the center

Within these areas, employee engagement is both the most critical component and the most positive outcome of the process. It is so essential to the success of automation, that companies should spend some time before implementing automation to ensure employee engagement within the company is strong.

To boost engagement, leaders should give employees the skills and authority to recognize and initiate process improvement, which is precisely the aim of automation. Articulating the goals of the process, inviting employee input and acting on employee suggestions must be constant throughout implementation.

In addition, companies in the early stages of automation efforts typically find the most success and highest return on investment when they aim their first round of efforts at the shop floor level. That means operators are critical to the success of the initiative. They should be involved in identifying automation targets, trying alternatives, and evaluating results.

Engaging employees this way enhances automation efforts while improving overall operations. My colleague Ally Johnston, an Enterprise Minnesota business consultant, works with manufacturers to improve productivity, eliminate waste, and build a culture of continuous improvement.

Ally often cites data from a Gallup survey showing that companies in the top 25% for engaged employees have a remarkable edge over their competitors in measures including safety incidents, absenteeism, quality defects, productivity, and profitability. Engaging employees in automation can lead to these positive results while improving operations.

Baseline communication

Before beginning an automation effort, companies should also review how they communicate with employees about all aspects of the company.

First, employees have to know the “why” of the company. That means engaging employees and building a strong commitment to their personal “why” and motivation.

They should also have a solid understanding of the organization’s “why” and motivation. In addition, employees need to understand what goals and expectations constitute a good day for the company. Make sure they have opportunities and venues to bring up issues they are facing, through huddles or communication boards, for example.

When operators have an outlet to provide suggestions and improvement ideas, and leaders consistently share thoughts on future growth and expansion, an atmosphere of trust emerges. An environment that includes these components of communication serves as fertile ground for automation efforts.

Establish goals

Next, companies can begin communicating directly about automation itself. That means clearly outlining the goals of automation, discussing the ongoing effects of automation, and, once available, sharing the results of automation efforts. Automation can be scary to some employees. They might associate automation and robots with job replacement.

Eric Blaha recently joined Enterprise Minnesota as a business growth consultant, helping manufacturers improve productivity, reduce unplanned downtime, and identify opportunities and metrics to drive business results. Eric has worked in supervisory, quality manager, and plant manager roles at CNH Industrial in Fargo, N.D., and Revolv Manufacturing in Brainerd, Minn. He led the April manufacturing workshop, “Engaging with Automation.”

Leaders should convey their goals for automation, including the primary objective of improving the daily work life of employees by reducing physical demands, increasing collaboration among workers and increasing career opportunities for operators.

It is important to emphasize the longterm goals of the company, which likely include increasing the workforce. Through automation, companies can multiply productivity and increase the throughput they can achieve with the same workforce. Ultimately, most manufacturers want to increase their workforce as automation drives greater output and increased sales; this is a great goal to share with employees.

Another goal of automation — improving precision — happens because the outcome of an automated operation is exactly the same every time. This raises the importance of processes, which determine accuracy. With good processes, an automated operation will yield accuracy every time, so it is important to review processes in anticipation of automation efforts.

Identify automation opportunities

After reviewing goals, the next step is determining opportunities for automation. Three approaches are particularly helpful in this regard: polling employees, employing data analytics, and using “Learning to See” — the process used in building lean culture to determine if processes add value, don’t add value, or create waste in an operation.

Polling employees can be as simple as asking which tasks are least desirable and understanding why. Next, develop ideas to automate those tasks. Brainstorm and then “try storm” and take action.

Make sure employees see efforts to make their days better. The quickest way to lose employee engagement is to pull them in, ask for their input and then do nothing with it.

Data analytics involves using monitoring systems to help identify waste, and can be a great source of automation targets. An example of this is a company I worked with that used a molding operation with four different arms. For every fourth arm, it would take a very long time to remove a particular part from the mold, but until the operation was monitored, it wasn’t clear exactly how much time was wasted.

Leaders found that three operators spent 45 minutes beating a part out of a mold because it was so badly stuck. They worked with the operators, soliciting their input on

solutions. The result: The operators helped devise a hoist-based system to lift the part out of the mold. The process went from three operators removing the part in 45 minutes to one operator removing it in 10. That all resulted from analyzing data.

Finally, an excellent way to identify automation opportunities is by teaching operators to use the “Learning to See” process of identifying waste. Operations not done right the first time, or processes customers do not need or are not willing to pay for, are typically great targets for automation. “Learning to See” these losses improves overall operations and can help companies identify automation opportunities.

At Enterprise Minnesota, clients are

for automation targets as well as recommendations for improvements once automation is put in place.

A company I worked with recently uses robotic welding for a mainframe. The fixture used to hold the mainframe pieces together didn’t have a very solid mounting system, and caused significant variability in the way those pieces came together.

The employee who was working in the cell had some great ideas to make the fixture more consistent. He had never brought these up before, but once he was asked, he happily offered his suggestions.

This situation is common; most of the time, employees are more committed to making improvements within their work cell than anyone else. They have to live with the outcomes every day, so they are eager to share any suggestions that can result in a better process or make their lives a little better — or both — if they are asked.

Carry out quickly

Many companies will evolve in their automation journey, and eventually forms of automation from all levels of the pyramid will become evident throughout the organization. Manufacturers just beginning automation are best served by focusing on the lowest portions of the pyramid: the control and field levels.

taught the acronym DOWNTIME to identify wastes. Automation has the potential to help each of the wastes represented by the acronym: defects, overproduction, waiting, non-utilized talent, transportation, inventory, motion and extra processing.

“Learning to See” is a powerful tool for employee engagement. I worked with a group of employees recently, discussing this process of identifying those operations that add value, don’t add value, or count as waste.

Once the employees began to understand and see this waste within their own work cells, they went back to their work cells in between each individual meeting that we had with them to make changes. They were excited to help make a difference, and that’s the power in teaching these processes and engaging employees.

Always seek input

With a transparent communication process that involves all employees, automation builds excitement. Employees who are engaged in the process are perfectly positioned to offer excellent suggestions

Starting at the lowest level of the pyramid, companies can implement sensors, actuators, and other field level automation equipment. These are the lowest cost areas for automation and generate a significant return on investment.

Taking action quickly keeps employees engaged. Consider employee thoughts and ideas, and then get started. The most important thing is that employees feel heard.

Consider one low cost/high yield automation effort. A manufacturer had to send parts through a clean room before assembly. These parts traveled through a hot water bath on a conveyor, starting with the push of a button for each cycle. Occasionally an operator would forget to hit the button or would start it too early, and that meant other operators wasted time waiting, or rushed to catch up.

An operator who was particularly annoyed with the variability and flow asked what could be done to automate this process. It turned out it was really quite simple to automate the wash with a PLC-based timer. The work cell became incredibly consistent and the belt turned on

Employee engagement is both the most critical component and the most positive outcome of the process.

every 18 minutes. It just took input from the operator to make that change.

Involve operators in implementation

In addition to identifying opportunities for automation, operators must also be involved in carrying out automation plans. Leaders should develop a roadmap and communicate a plan of action as the effort moves along.

It’s important to keep in mind that shorter cycles increase engagement; operators can see things happening, and when they see change and progress, it will further interest them in engaging in the process and sharing additional ideas.

As companies begin trying different automation efforts, they should always try to fail cheap and fail often. Failing cheap means analyzing alternatives and looking into what could go wrong. These automation attempts should not be high risk to the organization, or to customers in terms of quality.

Failing often is good because it means a company is trying many solutions. The

key is learning from those outcomes. Manufacturers that keep trying and keep evaluating their results will find solutions, and those solutions will improve processes and boost profits.

Cultivate for future success

After trying different automation efforts — regardless of how successful they are — it’s essential to celebrate. To sustain the culture of employee engagement and to ensure operators will continue to look for and suggest automation ideas, share results and celebrate successes.

Whatever data is available, distribute it to employees. Show productivity increases, reductions in quality scrap rates, increases in first pass yields — whatever the metric used to assess the automation journey.

Celebrate based on the size of the accomplishment. Maybe it’s a pizza party for an idea that is tried, or a $25 gift card for a suggestion.

Ask for reactions — good and bad — and act on the reactions to make additional improvements. It’s not good enough to share data and celebrate successes.

There have to be avenues in place to get better and to keep engaging employees in conversation.

Finally, as the company grows, the operators should too. Establishing rewards for their dedication to the effort will shed positive light on the automation effort.

Create a job title that differentiates those with a skillset related to operating and troubleshooting automation. Increase the pay scale for those with these skills. Adopt an incentive plan and set stretch goals.

To reward teams of employees, implement improvements in common areas such as restrooms or break rooms. Anything that can create a sense of excitement around what automation can do for the employees will help boost and maintain engagement.

Finally, reinvest to fill the capacity gained through automation. Continue looking for opportunities to automate. Invest in people and in the sales process to drive demand, and upgrade facilities. Above all, keep engaging employees at every step.

“If you’re leading a business, Enterprise Minnesota Peer Councils are an invaluable tool to create a network of help.”

Joe Plunger President & CEO Midwest Metal Products, Inc. Winona, MN

The Sky’s the Limit

Solar panel manufacturer Heliene has ambitious plans as federal incentives flow to renewable energy sector.

By Peter Passi

With the help of more-thancooperative local partners and the state’s unwavering financial support for its solar module production plant in Mountain Iron, plus a market enhanced by federal government programs, Canada-based Heliene Inc. expects its 2023 solar panel sales to exceed $300 million.

In May 2017, the business took over a 25,000-square-foot facility previously financed for Silicon Energy by the Iron

Range Resources and Rehabilitation with the help of a $3.6 million loan to the city of Mountain Iron. The plant’s production had dwindled to nil, but now the community of fewer than 3,000 residents is home to the nation’s secondlargest manufacturer of solar modules.

Under Heliene’s leadership, the plant has more than tripled in size. Martin Pochtaruk, Heliene’s co-founder and CEO, says most of the company’s sales will be into the U.S. market. He predicts

about 30% of the product will continue to come from the Canadian side of the company, based in Sault Ste. Marie, Ont.

Heliene provided laminates to Silicon Energy prior to its closure, but Pochtaruk says the relationship never accounted for more than 10% of the Canadian company’s sales.

“They decided to close in April 2017, and we took over May 1, three weeks later,” Pochtaruk recalls. Heliene wasted little time putting the facility to more productive use, installing a new line that boosted the plant’s annual capacity from 20 megawatts in the original factory to 150 megawatts per year by October of 2018 — more than a seven-fold jump. During the same period, Heliene also went from producing around 50 or 80 modules a day to 1,300.

Since then, a newer production line installed in 2022 has the capacity to crank out more than 3,000 modules a day, Pochtaruk says. “We are at 65 to 70% of that now. We should be better, but we’re not there yet.”

He says that Heliene is working “night and day” to push that percentage upward on its newest $10.5 million line.

Jim Schottmuller, a business development consultant for Enterprise Minnesota, says the recent advances in solar technology are truly stunning. He notes that Heliene went from making 280-watt panels to 460-watt modules that maybe are about

million came through a grant from the Department of Energy via the Minnesota Department of Employment and Economic Development; St. Louis County chipped in $1 million; and the IRRR lent $5.5 million to the Mountain Iron Economic Development Authority, which owns the building and leases it to Heliene, using those payments to retire its debt.

“It’s always been an impressive facility, and it gets more impressive with their continued expansion and automation,” says the IRRR’s director of development, Matt Sjoberg. “It’s great to see them growing, and hopefully they continue to do so in our region as

10% larger in terms of surface area. The company has the capability to boost that output to 568 watts per module with another relatively modest increase in size.

The facility and the IRRR’s willingness to help finance production equipment first drew Heliene to Mountain Iron, but by 2020 it became quite clear the business needed more room and might need to move on.

The temptation to relocate was quashed by the late David Tomassoni, a 30-year member of the Minnesota Senate who was a tireless promoter of economic development on the Iron Range. Tomassoni initially recruited Heliene to take over the Silicon Energy facility. When he heard the business might move, Pochtaruk recalls that Tomassoni said, “You’re not going anywhere. However big the building has to be, we’ll get you the money.”

“He was such a champion for bringing jobs to the area. He didn’t need anyone telling him what to do. He was on it,” Pochtaruk says.

Support for the construction of a new $12 million 68,000-squarefoot addition to the existing plant quickly emerged: $5.5

the industry and the company continue to evolve.”

While Heliene had not yet made any specific requests for additional assistance as of early April, Sjoberg indicated his door is open, saying: “We would like to help in any way that makes sense to accommodate their continued growth.”

Solar panel technology is advancing so rapidly that the line Heliene installed in 2018 has already been rendered obsolete. The company shut it down in December 2022 and plans to replace it with an entirely new line by this fall at an anticipated cost of about

Martin Pochtaruk, co-founder & CEO, Heliene Inc.

Under Heliene’s leadership, the plant has more than tripled in size. Martin Pochtaruk, cofounder and CEO, says most of the company’s sales will be into the U.S. market.

$7 million.

Pochtaruk says the plant’s anticipated production is already sold out for the next two years, even with the new capacity. As Heliene strives to increase output, Pochtaruk says the company also is planning to replace its line in Sault Ste. Marie, Ont.

“There are enough customers looking for a U.S.-made product that we certainly can sell out. It’s choosing who you sell to that becomes the issue, because we have to say ‘no’ to a lot of people,” Pochtaruk says.

Heliene sells primarily to clients looking to install fairly large commercial solar arrays, with about 80% of its panels mounted on the ground and 20% on roofs.

SUPPLY CHAIN PAINS

Heliene has encountered numerous supply chain challenges related to tariffs and the pandemic in recent years. “The only constant is change,” Pochtaruk quips.

The company has traditionally sourced its components from volatile suppliers in Southeast Asia and China, Pochtaruk says, but he expects all Heliene’s components, except the glass and solar cells it requires, will be U.S.-made by this summer.

Heliene’s customers have typically relied on investment tax credits to assist with projects, but Pochtaruk says those incentives were slated to wind down in

capacity to market.

Pochtaruk says the company is contemplating a serious expansion of its capacities, too. “We need buildings to accommodate two new lines in 2024, and the real change coming up is that we want to start manufacturing the solar cells, which are the main components inside our solar modules.”

It will take at least a two-year build-out to enter the solar cell arena, Pochtaruk says, adding that complex mechanical systems will be needed to move chemicals in liquid and gaseous states, as well as to treat wastewater. “So, a major refurbishment of a building will be required, and it is going to take a major investment,” Pochtaruk says. When asked about the magnitude of the project, he says: “We’re talking hundreds of millions of dollars.”

leaving U.S. solar panel manufacturers at the mercy of foreign suppliers.

STAFFING UP

Heliene operates its Mountain Iron plant with four crews working a combined 22 hours a day and reserving two essential hours for maintenance. “That’s the maximum number of hours we can work in a day, and we work seven days a week,” Pochtaruk says.

Heliene currently employs about 125 people in Mountain Iron and aims to hire an additional 100 workers when it replaces its now-idled 2018 production line this fall.

coming years, creating significant market uncertainty. The recent passage of the Inflation Reduction Act, however, ensured more generous credits will remain available at least through 2032.

“That is what has cemented the demand, and for a long time,” he says. “So, basically we can continue working with the knowledge that the credits are not going to disappear tomorrow.”

The same legislation also promises investment tax credits for manufacturers, like Heliene, that bring solar power

Given the market opportunity and the federal incentives now available, Pochtaruk says Heliene will need to move swiftly and won’t have time to build a plant from scratch. Where that facility will land remains undetermined, but Heliene hopes to pick a destination by late summer.

Pochtaruk explains that his intent is to vertically integrate and produce solar cells that go directly into Heliene’s own products, not those of competitors. The company aims to break new ground, because there is now no domestic production of these key components,

Filling positions has been a challenge, according to Pochtaruk. “Showing up on time for a shift apparently is not fashionable anymore. We have a large need for people, and we need people who show up on time.”

To cast a bit of a wider recruitment net, Heliene has made itself known as a second-chance employer, willing to hire on formerly incarcerated people.

“We need humans who are ready to come to the job and get paid for an honest day’s work,” Pochtaruk says.

Heliene has a relatively young workforce on its production floor, and Pochtaruk says the company offers its employees a very attractive, clean, climate-controlled environment in a region known for its harsh weather conditions.

Heliene’s production is highly automated, and the company works to keep human contact with the product to a minimum, as organic materials can prove detrimental.

“We need humans who are ready to come to the job and get paid for an honest day’s work,” Pochtaruk says.

Heliene’s production is highly automated, and the company works to keep human contact with the product to a minimum, as organic materials can prove detrimental. Robots also are essential to the operation, as assembly tolerances are as tight as one-tenth of a millimeter, literally about the breadth of a typical human hair.

FINDING A FOOTHOLD

Originally from Argentina, Pochtaruk worked two decades in the steel industry, taking jobs in northern Italy, Texas and then with Algoma Steel in Canada, before forging his way into solar power.

Pochtaruk describes many of his job skills as transferrable but acknowledges encountering a steep learning curve as he moved into the renewable energy sector, where the U.S. has been slow to find its place.

Pochtaruk says the U.S. solar power market is roughly one-fifth the size of China’s. The nation also lags Western European countries in solar power generation.

“A little country like Belgium, plus Holland, plus France, will be as much as the U.S.,” he says.

Pochtaruk expects domestic solar energy deployment to accelerate quickly in the coming years, but the U.S. still has a lot of ground to make up before it begins to catch up to other countries.

“When we started manufacturing back in 2010, there was virtually no solar consumption in the U.S. whatsoever. Even the province of Ontario alone had more solar consumption than the entire U.S. market,” he says.

U.S. solar power generation has been hovering at between 17 to 22 gigawatts, and that’s expected to grow to 30 gigawatts by 2025 and to 50 gigawatts by 2030, if not more, Pochtaruk says.

VITAL QUALITY CONTROLS

“We used to have one quality assurance person here in Mountain Iron. Now, we’re going to have five, because as the operation grows, the expectation that things are done the right way is more demanding,” Pochtaruk says.

“Our clients also have third-party

improvement to drive their business to a better standard,” Gadacz says. “Their growth means they need to continually add new talent to their audit pool. So, then with that growth, they’ve said: ‘Let’s have people trained to look for improvement.’ And that is one of the key elements of an ISO auditor, being able to see and recommend improvement ideas.”

Particularly in the company’s field and with the rigors of the environment in which their equipment will be tested, Gadacz says there is little room for any production error. “It needs to be planned well, executed well, confirmed well, and audited well. I mean, all those things need to show up for them.”

“We need good leadership to make a plan. We need good leadership to guide and coach. We need good systems to audit against, because of the outputs they need to deliver,” Gadacz continues. “And then of course those leaders bring highly qualified colleagues with them to train them up. So, we have that multi-pronged approach: strong leadership, a strong business and strong people.”

Gadacz says of Joanne Bath, who manages the Mountain Iron plant, and Jenny Wang, head of their quality team, “Those two just ooze leadership.”

He says Heliene is operating in a particularly high-stakes arena for quality control. “Sending parts out that are suspect is going to be tantamount to failure when you’ve got a 25-year warranty. So, we need to do it right the first time.”

The most recent round of internal auditor training was the second time Enterprise Minnesota has worked with Heliene.

engineering companies coming in to do audits,” Pochtaruk continues. “We have inspections all the time, and the product we make is guaranteed to work for 25 years. So, the need for it to be absolutely perfect is mandatory.”

Keith Gadacz, a business growth consultant for Enterprise Minnesota, worked with Heliene in December 2021 to train additional staff on internal ISO control management systems.

“They had 12 people across their three facilities, so they could have cross-team

“One of the problems that comes up with ISO systems is a failure to improve the systems. If there’s just an ongoing system where people are holding to a certain standard, they can lose the focus on improving. And that’s an important piece of creating an ever-changing, always-improving ISO system to make your company better,” Schottmuller says. Pochtaruk says the effort to improve internal controls in manufacturing never ends.

“You cannot do it one day a year. You do it every day of the year, because basically what you set up are the processes to ensure that everything is controlled, from the procurement of the materials to the shipping of your finished product,” he says. “If you don’t make that part of your process, you haven’t learned a thing.”

To cast a bit of a wider recruitment net, Heliene has made itself known as a second-chance employer, willing to hire on formerly incarcerated people.

NEW MARKETS

Where the Wind Blows

Fifth-generation Landwehr Construction tackled two ISO certifications to meet the requirements of its biggest wind-energy customer.

By Suzy Frisch

Left to right: Tyler Adamsheck, project manager and estimator; Nate Landwehr, president; Matt Fourre, vice president of cranes

Wind energy has been soaring in the United States as a power source, and it is on track to become an even bigger player in the domestic energy grid. Driving across the wide-open spaces of the U.S., it’s common to see fields of giant wind turbines in action. These massive pieces of machinery had to find their way from the manufacturer to often rural areas for installation — no easy feat.

Metal and fiberglass components, including 262-foot blades and tower sections that weigh 75 tons each, must be moved from barge and train, to dock and rail yard, to truck, and then onto their eventual landing place. It’s a logistical challenge that takes a team of highly trained employees working in tandem to safely transport these heavy and huge elements.

St. Cloud-based Landwehr Construction has been engaged in this work since 2017, building on a long history of serving customers with its cranes and doing heavy civil construction projects. Wind energy is a fast-growing part of this fifthgeneration business, especially as it began working for Vestas, a Danish company that designs, manufactures, installs, and services wind turbines. From its North American headquarters in Portland, Ore., Vestas has become a big player in wind in the United States, installing nearly 24,000 turbines as of 2022.

So when this growing company requested that its vendors earn two ISO certifications, the leaders at Landwehr Construction really didn’t have to think hard about it. They wanted to ensure that Landwehr continued to be a supplier of choice for Vestas’ turbine logistics and that it could continue thriving alongside the company.

“When one of your biggest clients tells you this is a requirement, it doesn’t give you a lot of wiggle room,” says Matt Fourre, vice president of cranes at Landwehr. “I’m not sure that if the requirement wasn’t there from Vestas that we would have gone through this process. But now that we are through it, it has brought a fair amount of benefit to our operations.”

Tackling two ISO certifications at the same time is not a small undertaking. And as a company that’s not a traditional manufacturer, Landwehr needed some help. Its leaders called in Enterprise Minnesota to guide Landwehr through the process of obtaining the ISO 9001:2015 certification for quality management systems and the ISO 45001:2018 certification for occupational health and safety. Vestas announced its new requirements in 2020 and wanted them completed by yearend 2022, a job made more complicated by the COVID-19 pandemic.

Landwehr received its certifications in early January 2023. They are already having a positive impact on how Landwehr runs its safety program while priming the company for an even brighter future, says Nate Landwehr, company president. Now Landwehr can retain a sizeable amount of business from an important client, and it’s primed to capitalize on even more work in the growing green energy sector.

“Even with our customers asking us to do this, we see the value of having processes that we can easily implement and train people on,” Landwehr says. “Having the certifications shows that we’re willing to put in the time and effort to institute plans and processes that are safety-driven, and it shows that we are making sure we’re keeping our people safe.”

Safety first

Safety has long been a primary driver at Landwehr, which got its start in 1895 in the dray line business with founder William Henry Landwehr at the helm. In a full-circle moment

PHOTOGRAPH BY AMY JEANCHAIYAPHUM

for the now construction-focused business, Landwehr’s dray line operators would transport goods from the railroads and distribute them to businesses in town. During Landwehr’s first decades of operation, it became known as the St. Cloud company that could move anything, including pianos and houses.

In the 1920s, Landwehr split into two businesses. The company that continues today focused on building and moving bridges and other large structures. Upon returning from World War II service and rejoining the family business, Ronald Landwehr (Nate’s grandfather) steered the company’s work to demolition, civil construction, and other crane-heavy work. Landwehr developed a specialty in installing box culverts, or precast bridges, that it continues doing today. It also moved into excavation, road construction, and civil earthwork, which carried it through the 1960s and ’70s.

When the 1981 recession hit, Landwehr dove deep into construction, working on a major paper mill expansion in Sartell that kept the company busy for years, Landwehr says. Under the leadership of current CEO Dan Landwehr, the company continued expanding its services in the highway heavy construction sector — including grading, demolition, and installing underground utilities — as well as deeper into civil construction projects like installing sewer and water systems and building roads.

All the while, Landwehr expanded outside of central Minnesota to tackle projects across the state. In the 21st century, Landwehr significantly expanded its 50-year-old crane business, Nate Landwehr says. It evolved into an indemand subcontractor that does a range of work, from setting rooftop HVAC units to erecting precast concrete walls for building projects to transporting materials to customers’ work sites.

Today, Landwehr has offices in St. Cloud and Chaska. Both handle crane and rigging-based projects for diverse customers working in varied settings, such as preparing sites for construction or hanging signs on U.S. Bank Stadium in Minneapolis. Landwehr’s crane work then opened doors for it to enter the renewable energy space. A trucking company hired Landwehr to build a rail site for offloading and transporting wind turbine components, and a new line of business for the company was born.

Such transitions have been a key

component of Landwehr’s success over its 128year history, says Nate Landwehr, who has been leading the company since 2018. The company nimbly evolves or expands its operations to meet customers’ needs while offering a deep menu of services that help it withstand changing economic conditions, he says. Today, about 200 employees work at the company, with just shy of $100 million annually in revenue.

“What makes us unique is we do a lot of different things that keep us busy in down times,” Nate Landwehr says. “We’re seeing higher inflation rates, so our commercial work is slowing. Then we’ll pivot to more public bid work. When interest rates come down, we’ll pivot to doing more private work. And then the whole time we’re doing utility sector work and energy, our cranes are doing both. We do a lot of different things that keep us vertically integrated and give us options to pivot to when the times change.”

Another important element has been Landwehr’s long commitment to employee safety. Throughout its history, Landwehr leaders have emphasized that “we want all of our employees to go home as good or better than when they came to work,” Nate Landwehr says. Taking time to focus on the company’s processes and improving its systems for keeping workers safe seemed like a natural fit.

Two big jobs

It’s also timely. Many international wind energy companies have started requiring ISO certifications, especially related to safety, says Dawn Loberg, an Enterprise Minnesota business development consultant. Landwehr now has the necessary credentials to serve them. “All the big players in wind are requiring ISO safety,” she says. “ISO 45001:2018 is more prevalent in Europe, but as the world gets smaller, we’re going to see more and more companies needing it.”

Still, completing two ISO certifications simultaneously in a short amount of

time initially made the undertaking seem daunting, says Tyler Adamsheck, Landwehr project manager and estimator who led the company’s ISO team. Add in the good complication that Landwehr was having a busy, record-breaking revenue year in 2022 and everything became a bit more challenging.

The Enterprise Minnesota team, including operations consultants Keith Gadacz and Greg Hunsaker, approached the dual certifications as one big continuous improvement initiative with safety at the core. Despite the difficulties, it was important work for Landwehr to complete that now gives it operational and competitive advantages, Hunsaker says.

Going through dual ISO certifications often bears fruit through cutting costs, avoiding other costs, streamlining operations, retaining and boosting sales, and showing employees that safety is an integral part of the company’s DNA. “The impact of integrating these two ISO pieces together to run and grow a business is just exponential,” Loberg says.

Much of Landwehr’s ISO initiative involved formalizing processes the company already used to prevent safety incidents, and train, document, and communicate about safety, Gadacz says. Landwehr needed to build up its management systems for quality and safety, implement changes, and then use and audit

the new systems.

“These are management systems for safety and quality management that help them think about internal and external risks to the business,” Gadacz says. “We talk about the plan, what we are going to work on, what could go wrong, and how we can multiply opportunities and mitigate risks.”

Though the work can be difficult, there is value in putting in the time and coming out the other side with the ISO certifications. “It improves their operations. It encourages them to use data to make decisions,” Gadacz says. Company leaders can say, “Now that we know, we can think about how we replicate our performance and customer satisfaction or change it for the better.”

Landwehr can deploy its new systems to address all manner of concerns, such as preventing injuries, managing change, addressing turnover, or handling growth. “Their customer asked them to do this to be a strong supplier,” Gadacz says, “but the business got better with each of the improvements as well.”

Real, continuous improvement

Then there are other advantages that come from improving safety programs, Hunsaker says, including empowering employees to get more deeply involved in the company’s safety work. “They’re looking for people in the field to be problem-solvers and improvers of the safety process. They aren’t just looking to corporate when there’s a problem,” he adds. If employees see areas of improvement from their day-to-day experiences at job sites, they can scan a QR code that allows them to make suggestions or report issues to Landwehr.

Adamsheck confirms that Landwehr operates more efficiently since the company completed its ISO work. He typically oversees seven to nine windenergy sites that Landwehr is building and running concurrently for Vestas. The new processes have allowed each site to operate under one uniform plan, instead of having site supervisors run things their own ways.

“This has aligned everybody under the same program and allows us to switch supervisors between job sites with less disruption if we need to do schedule changes,” Adamsheck says. “Anybody can step into a job now and take it over because everything is being documented and monitored and recorded in the same way. It’s helped our onboarding process for new employees and made it more robust. That’s been a nice change.”

Improved consistency in Landwehr’s safety programs has been another positive. “We know where things are filed, and we know when an incident happens. We need to follow it all the way through and come up with a plan to eliminate it for the future,” Adamsheck says. “From our safety department to the field to our project managers, everyone understands the process, and everyone understands the extent that we have to follow through on everything.”

Landwehr has realized other operational efficiencies. For instance, field supervisors previously would reach out individually

safety performance over time, identify patterns that might have gone previously unnoticed, and create metrics and goals for improving performance. “Safety has always been our number one priority day after day, job after job,” he says. “Over production, customer requests, anything. The ISO process has helped us set up better ways of doing things.”

Having a big picture view is important because if there’s an issue at one job site, it most likely is occurring at the other sites, too, Adamsheck says. There is better communication between site supervisors, and that makes it easier to keep the whole team informed about safety procedures, improvement ideas, and ways to lessen risk and prevent problems from happening again.

Injury prevention is key, Fourre says, especially at wind-energy job sites because the stakes are so high. That’s a key reason why Landwehr made improving its safety processes through ISO certification a top priority — both to retain a key customer and to improve the company’s systems and operations, he says.

“We are handling components that are thousands of pounds and a football field in length. Everybody needs to be aligned on the same page to do that work safely,” Fourre says. “People are at risk of death or serious injury, and there are risks of huge amounts of damage or property loss. You make one wrong move, and you can put your best buddy in a really bad spot. We always say to employees, ‘Nothing that happens today is more important than your safety, your life, your livelihood, and being able to go home to your family as good or better than you came to work.’”

to Adamsheck for information. Since Landwehr built up its management systems, supervisors now have remote access to the company’s hard drives and can get all the information they need. “It cut back on a lot of the back-and-forth conversations and emails about how we do things,” he says. “They can access most things on their own and can be much more self-sufficient.”

On top of the efficiencies, Adamsheck appreciates that the new processes allow Landwehr to better track the company’s

Though it’s still early, Landwehr already is noticing benefits from implementing ISO improvements in its wind-energy division, Nate Landwehr says. Having processes that are easy to implement and improve training will only make the company more efficient — benefits he would like capture in other divisions by implementing ISO principles there. Running the company well, including treating employees like family by keeping them safe, has been a thread that carries through Landwehr’s decades of operations.

“The main thing about being a fifthgeneration company is that our people have really helped us build it and keep us changing with the times and being innovative,” Nate Landwehr says. “We feel the future looks bright with all the different things we’re able to do and accomplish with our people.”

Much of Landwehr’s ISO initiative involved formalizing processes the company already used to prevent safety incidents.

Up Close & Personal

The power of manufacturing is best explained through the narratives of its practitioners.

Like the hockey mom who seizes too many opportunities to extol the talents of the goalie who sits at her dinner table every night, I’ll take the risk of naked self-promotion when I confess how much I enjoyed this particular magazine issue of Enterprise Minnesota®. And I’ll compound it further by telling you why.

Our cover story — “Savvy Diversification: How Central McGowan has used expansion and acquisitions to achieve dizzying success”— exemplifies much of what we try to accomplish in these pages. In it, one of our favorite writers, Sue Bruns, recounts how the inspirational entrepreneurial successes of Central McGowan benefit its employees, suppliers, and community as much as enriches its bottom line. On one level, Sue describes how multiple generations

of company leaders have relied on market savvy and organizational discipline to identify and exploit ongoing opportunities to grow profitably. That alone makes it a great read. On another level, Sue demonstrates how (like many Minnesota manufacturers) the company has quietly sustained its local economy over several generations by providing increasingly highquality, challenging career opportunities for employees to thrive. The story’s third level showcases how automation, Central McGowan’s newest specialty, is destined to become a solution for many small- and medium-sized manufacturers struggling to find an adequate number of employees. Every story in the magazine tries to tell an interesting tale that also illustrates deeper significance.

We devote extensive time and treasure

publishing this magazine because manufacturers appreciate reading the only publication in Minnesota that covers the industry from their perspective. Along the way, we are pleased to show how Enterprise Minnesota’s consultants help our clients achieve strategic excellence in planning, HR, leadership and talent development, business management, overall productivity, and exit/succession. We also publish the magazine to benefit the groups that comprise Minnesota’s manufacturing ecosystem: public policymakers, educators, main-street businesses, and other community leaders. We understand that these groups can only begin to appreciate what manufacturers bring to their communities and constituencies if they understand what they do and how they do it.

Discerning readers occasionally comment on our magazine’s heavy emphasis on storytelling. If I learned

anything working as a staffer for the U.S. Senate and the Minnesota legislature in the first decade of my career, it’s how personal narratives can sometimes impact policymakers and public leaders more powerfully than mere economic statistics. That’s why Enterprise Minnesota, over the years, has helped facilitate more than 400 manufacturing company tours for officials and community leaders to experience first-hand how manufacturers contribute to the economic and cultural well-being of their communities and how ongoing public-private partnerships contribute to that success.

Nothing can replace the illuminating experience of a personal company tour, but we believe the pages in this magazine can provide a close second. No other publication reflects the opportunities and challenges that face manufacturers and their communities. We constantly profile how manufacturers are responding to the sometimes-overheated competition to recruit and retain employees (often with our help) and how educators are trying to fill that demand (and sometimes how they aren’t). Our recent issues have helped profile the unpredictable demands of the COVID economy. We have shown how manufacturers contend with competitive disruptions of cheap overseas products and how they’ve responded to the challenges of adjusting to what happens when that business “reshores.” We repeatedly illustrate the value of strategic planning and the competitive benefits of becoming part of the ISO culture.

Just as important, we think no one reading these pages will buy into the stubbornly false stereotypes that today’s manufacturing still involves dirty, monotonous, poorly paying, go-nowhere jobs. On the contrary, we hope these personal narratives inspire community stakeholders to appreciate the influences of manufacturers on their communities and collectively on the strength of Minnesota’s economy.

Lynn Shelton is vice president of marketing and organizational development.

Discerning readers occasionally comment on our magazine’s heavy emphasis on storytelling.

GROWING COMPANIES ENHANCING COMMUNITIES

Inspiring and celebrating Granite talent. Granite Partners is a private investment and holding company founded in 2002 in St. Cloud, Minnesota, with a mission to grow companies and create value for all stakeholders. As trusted partners, innovative leaders, and responsible stewards, we are committed to 100-year sustainability, and we aspire to world-class wellbeing for all people in and around the Granite community.