Crow River Business

Carlson Meatsmarks 100 years

in business

Inside

HutchinsonTechnology CEOtalks candidly

Lee Miller beginsas new director ofHutchinson EDA

LitchfieldChamber offersscholarships foradult learners

CROW RIVER JULY 2013$1 on newsstands

www.crb.mn�

��

YOUR LOCAL BUSINESS-TO-BUSINESS SOURCE FOR THE CROW RIVER REGION

BUSINESS

COMMERCIALPROPERTIES

For Sale or RentList your commercial property in the next Crow River Business

issue by calling Shari at 320-234-5702today to reserve your space.

15753 US Hwy. 12,Cokato

For Rent: Commercial BuildingOffice & Industrial Warehouse

11 office suites, reception area,break room, restroom with showerfacility, 3 warehouses & storage,5,460 sq. ft., 2 acre lot, highvisibility location. $12 per sq. footper year. NNN terms. Will subdivideor build to suit. Long term leaseavailable.

Call Maria Oman, BHG RealtyOman Rental Properties

320-234-3523www.omanrentalproperties.com

www.hutchinsonmnrealestate.com

RESTAURANT & RETAIL SPACEAVAILABLE FOR LEASE101 Main Street South

HutchinsonMixed use office/retail/restaurantbuilding. High visibility locationsouth of Library Square Park. Atriumlobby. Elevator. Built 1984. 23,000sq. ft. Strong rental history. Anchortenants in place. Membrane roof1996. Newer heating and coolingunits. Good investment or taxexchange potential. Office, retail &fully equipped restaurant availablefor lease. Price $749,948.

Call Maria Oman, BHG RealtyOman Rental Properties

320-234-3523www.omanrentalproperties.com

www.hutchinsonmnrealestate.com

560, 1008, OR 1152 SQ. FT.OFFICE SPACE FOR RENT

Madsen Peterson Building

135 3rd Ave. SE, HutchinsonWell maintained professionalbuilding in prime location. Includesheat, air conditioning, rubbishremoval & off-street parking.Affordable lease options available.

Call 320-587-2255

FOR LEASE, SALE OR TRADE130 N. Sibley

Litchfield, MN 553552400 Sq. Ft., Newer roof & furnace,Office/Retail, Upstairs apartment,Handicap accessible bathroom,Parking & access in rear of building.

Call Mike Malinski651-230-6453

BAKERY FOR SALEDassel, MN

Does owning a bakery soundfun? Updated equipment andbuilding. Retail, specialty andcommercial sales. Come see us.

Call Timothy R. CookPremier Real Estate Services

320-493-9349

MEAT PROCESSING BUSINESSFOR SALE:

• Built in 2007• Fully staffed• Long standing clientele• Rural investment opportunity• Diversify your income. Make your

own hours.Call 320-493-9349

2 CROW RIVER BUSINESS | JULY 2013

Contents

JULY 2013 | CROW RIVER BUSINESS 3

JULY 2013Vol. 4 • No. 5

www.crb.mn

PUBLISHED BYLitchfield Independent ReviewP.O. Box 921Litchfield, MN 55355320-693-3266

Hutchinson Leader170 Shady Ridge Road NWSuite 100Hutchinson, MN 55350320-587-5000

PUBLISHERBrent [email protected]

EDITORJuliana [email protected] Litchfield office320-234-4172 Hutchinson office

CONTRIBUTING WRITERSAndrew Broman,Terry Davis,Doug Hanneman

ADVERTISING REPRESENTATIVEShari [email protected]

SUBSCRIPTION OR ADDRESS CHANGEPenny [email protected]

PRINTED BYCrow River Press170 Shady Ridge Road NWHutchinson, MN 55350320-587-2062

Crow River Business is published monthlyby the Litchfield Independent Review andHutchinson Leader newspapers. No part ofthis publication may be reproduced, stored ina retrieval system, or transmitted in any formby means, electronic, mechanical, photocopy-ing, recording or otherwise, without the priorconsent of the publisher.

6 Business news: Jump-Start Downtown selects a winner

7 Business news: Scholarships available for adult learners

10 Litchfield Chamber: Create a great place to work

16 Hutchinson Chamber: Take part in legislative talks

18 Meeker County EDA: Studying transportation concerns

23 Business achievements: Read about Ideal Business Plaza, Nu-Telecom, Jeff Schultz and Andrew Neubarth

�

Business news:Lee Miller takesover as director ofHutchinson EDA

Cover story: The Carlson family has operatedCarlson Meats in Grove City for 100 years

19

CROW RIVER

BUSINESS

Feature story:Hutchinson TechnologyCEO Rick Penn talks aboutthe future of the company

19�

12�

Opening lines

Coming events

t takes a special type of organization to stay in busi-ness 100 years, according to the website BusinessInsider, and there is much to be learned from those

reaching the centennial mark. Among the traits that these successful organizations

have in common, Business Insider says, are a laser-sharpcustomer focus, a willingness to chart new territory, and aclose relationship with the communities in which theyoperate.

A local example is Carlson Meat Processing Inc. ofGrove City, which is celebrating its 100th year in business.Located a block off U.S. Highway 12 East, this third-gen-eration business has continued to meet the needs of itscustomers and successfully navigated its way through achanging business environment. Chuck and KristinCarlson, who own and operate Carlson Meats, share inthis month’s magazine what tactics they — and Chuck’sfather and grandfather — employed to create a thrivingbusiness. They are to be congratulated for reaching thecentennial mark.

Congratulations also are in order for:� Lee Miller, who has been hired as Hutchinson’s new

Economic Development Authority director, replacing MilesSeppelt. He comes to the job with some familiarity withHutchinson, having worked as the EDA’s intern five yearsago. Read more about him in this month’s magazine.

� Elana Volkov, who won the Hutchinson Jump-StartDowntown new business contest. She plans to open SweetSpot Bakery on Main Street, selling high-quality bakedgoods. Volkov’s business plan triumphed over seven other

proposals submitted in the contest. Asa result, her prize package includes$10,000 in start-up capital, $2,000 fora new sign, free tuition for small busi-ness management classes, businesscoaching and mentoring, Chamber ofCommerce membership, a free web-site, radio and newspaper advertising,and logo design — donated by localbusinesses, agencies and organiza-tions. What a fabulous way to begin anew business.

Running a company — big or small — is not alwayseasy, as many in the business world can attest. When abusiness goes in the “ditch,” where Rick Penn saw hiscompany, it can take time and effort to steer out of thatlow point and onto stable ground again. That’s what Penn,president and chief executive officer of HutchinsonTechnology, is working toward. Nine months into the job,he is pulling the company out of the ditch, quarter byquarter by quarter. As a result, Hutchinson Technology isin the best shape Penn has seen in years. Read moreabout Penn’s assessment of the company and his vision forthe future inside this magazine.

If your vision for the future is to become a better publicspeaker, consider joining the Hutchinson II Toastmastersclub. The group meets weekly and will help you hone yourspeaking and leadership skills. Read more elsewhere onthis page.

— Juliana Thill


Hutchinson II Toastmasters club meetsweekly, welcomes new members

The Hutchinson II Toastmasters club is seeking newmembers. The local club is part of ToastmastersInternational, a world leader in communi-cation and leadership development.

A Toastmasters meeting is a learn-by-doing workshop in which par-ticipants hone their speaking andleadership skills in a no-pressureatmosphere.

The Hutchinson II Toastmastersclub meets weekly from 7 to 8 a.m.Thursdays at the Learning DevelopmentCenter building on the campus of Hutchinson TechnologyInc. The local chapter is focused on helping area profession-als and individuals build confidence and grow by providinga positive, collaborative, structured environment toimprove communication and leadership skills.

For more information, contact Vickie Shoutz, vice presi-dent of membership, at 320-587-1525 or email her [email protected].

Census Bureau offers free webinarsthat teach businesses about exporting

Exporting is a way to increase sales and competitiveness,according to the U.S. Census Bureau, especially since 95percent of potential consumers live outside of the UnitedStates. The Census Bureau offers web-based and in-personcourses to help people access and use Census Bureau statis-tics. These free courses can teach people how to use its data-bases and mapping tools, and find local and national demo-graphic information for a variety of uses, including grantproposals, economic data statistics for business plans, andresearch papers. The Census Bureau has a network of dataspecialists who can provide training throughout the nation.

To learn more, register for the Go Global webinar series,which provides people the resources necessary to expandinto new markets and be a successful exporter. Register freeat: http://go.usa.gov./T37A. Upcoming webinars include:

� July 16 — Go Global Webinar Series: Finding Buyersand Making Contacts — Foreign Agricultural Service.

� July 30 Go Global Webinar Series: Trade Financing—Small Business Administration (SBA) and Export-ImportBank.

I


Business news

SWIF offers class where peoplecan learn to start a business

Southwest Initiative Foundation offers “Start-ing a Small Business” class from 9 a.m. to noonon the third Wednesday of each month at thefoundation’s office, 15 Third Ave NW,Hutchinson. Entrepreneurs can learn how toresearch and prepare a business plan to deter-mine whether a business idea is feasible, mar-ketable and profitable and learn about availablefinancing options. There is no charge, but regis-tration is requested. For information or to regis-ter, contact Greg Jodzio at 320-587-4848 or 800-594-9480 or email [email protected].

Something sweet is coming to Hutchinson’sMain Street. And it will receive a lot of doughand other assistance to make it successful.

The winner of Hutchinson’s five-month compe-tition to attract a new business downtown isElena Volkov, who will soon open Sweet SpotBakery at 8 Main St. N. Her business aims tomake high-quality baked goods available. Inaddition to pastries and desserts, Sweet SpotBakery will sell several handmade breads.

Volkov’s business plan triumphed over sevenother proposals submitted in the Jump StartDowntown Business Plan Competition.

The Jump Start prize package included$10,000 in start-up capital, $2,000 for a new

sign, free tuitionfor small busi-ness manage-ment classes,ongoing busi-ness coachingand mentoring,

Chamber of Commerce membership, a free web-site with one year of hosting, radio and newspa-per advertising, logo design, business cards, let-terhead and envelopes.

The competition’s goal was to help promisinglocal entrepreneurs realize their businessdreams by connecting them to the best resourcesavailable, along with access to the capital.

It consisted of three rounds and involved apanel of small business experts who reviewed allproposals and invited the most promising entriesto compete. Two finalists were chosen to partici-pate in the final round, where they made an oralpresentation to a panel of judges.

— Terry Davis, staff writer at the Hutchinson Leader

Sweet Spot wins Hutchinson’sJump-Start Downtown contest

Financial services firm Edward Jones broke into theFortune 500, as published by Fortune magazine, accord-ing to local financial advisers Dean Winter, Kim Winter

and Pat Chapman.Fortune magazine’s annual listing ranks the largest U.S. com-

panies by revenue. Edward Jones debuts on this year’s list at No.491, with more than $5 billion in revenue for 2012.

Edward Jones provides financial services for individualinvestors in the United States and, through its affiliate, inCanada. Every aspect of the firm’s business, from the types ofinvestment options offered to the location of branch offices, isdesigned to cater to individual investors in the communities inwhich they live and work. The firm’s 12,000-plus financial advi-sors work directly with nearly 7 million clients to understandtheir personal goals — from college savings to retirement — andcreate long-term investment solutions that emphasize a well-bal-anced portfolio and a buy-and-hold strategy. Edward Jonesembraces the importance of building long-term, face-to-face rela-tionships with clients, helping them to understand and makesense of the investment options available today.

In January 2013, for the 14th year, Edward Jones was namedone of the best companies to work for by Fortune Magazine in itsannual listing. The firm ranked No. 8 overall. These 14 Fortunerankings include 10 top-10 finishes, consecutive No. 1 rankings in2002 and 2003, and consecutive No. 2 rankings in 2009 and 2010.

Edward Jones makes Fortune 500 for first time


SUBMITTED PHOTO

Jim Weddle, far left, managing partner for Edward Jones, met withstaff from the Edward Jones branch office in Hutchinson during aluncheon in May. Joining him are financial adviser Pat Chapman,senior branch office administrator Heidi Froemming, financialadviser Dean Winter, branch office administrator Shari Dorival,financial adviser Kim Winter and senior branch office administra-tor Lynn Winslow.

CITIZENSBANK &TRUST CO.

(320) 587-2233 www.cbhutch.comTwo locations in Hutchinson Member FDIC

FAST & LOCALLOAN

DECISIONS! Expanding your business? Need new Equipment?

Want to increase your credit line? See Anthony, Mike, Jessica or Tim for details.

Investment Strategies...For Real Life.

Investment Strategies...For Real Life.

n026

19 B

2BStanding LtoR: Lisa Hauer, Brandi Eckstein,Susan Brickzen; Sitting: Shad Ketcher

NEW ERA FINANCIAL GROUP, INC.320-587-0459Securities through Financial Advisors of America. Member FINRA/SIPC

A FIVE STARWEALTH MANAGER

Business news

Much has been said about local busi-nesses’ need for workers whose skillsline up with the jobs available, especial-ly those that require technical or voca-tional training. To respond to the need,the Litchfield Chamber of Commercehas created a scholarship program tar-geted to financially assist adult learnersas they pursue job skills training.

To be eligible applicants must com-plete an application form and provide aletter of recommendation from aLitchfield Chamber member.Application deadline is Aug. 1. A com-mittee of volunteers will interviewapplicants and select the scholarshipwinners.

If awarded a scholarship, applicantswill be required to provide proof ofenrollment in their educational pro-gram prior to receiving the award. TheChamber’s Board of Directors has allo-

cated up to four $500 scholarships to beawarded in August.

“The Litchfield Area Chamber ofCommerce has a history of fulfilling aunique niche with its scholarship pro-grams,” said Dee Schutte, executivedirector for the Chamber. “As studentsenroll in technical or vocational trainingprograms, the avenues for scholarshipopportunities become somewhat limit-ed. This is particularly true of the adultlearner. The new financialassistance program provides anopportunity for these studentsto receive financial assistance.”

The scholarship program issupported by donations fromChamber members. Applica-tions are available at www.litch.com or by call-ing the Chamberat 320-693-8184.

Litchfield Chamber offers scholarships to adult learners pursuing job skills training

The Minnesota unemploy-ment rate fell to a seasonallyadjusted 5.3 percent in April,according to the MinnesotaDepartment of Employmentand Economic Development.

The agency said the joblessrate fell to its lowest pointsince May 2008 and remainswell below the U.S. rate of 7.5percent in April.

State employers shed 11,400jobs in April, while March fig-ures were revised from 5,200jobs lost to 3,300 jobs lost.

Minnesota has gained24,400 jobs during the pastyear, a growth rate of 1 per-cent, compared with a U.S.growth rate of 1.6 percent dur-ing that period.

Unemployment ratedrops to lowestpoint since 2008


Feature story


By Terry DavisCONTRIBUTING WRITER

It seems to be a perfect match.Former Hutchinson EconomicDevelopment Authority intern

Lee Miller has been hired by the city tobe its economic development director.

Miller replaces Miles Seppelt, wholeft the position in late January aftermore than 10 years of heading upHutchinson economic developmentefforts. Miller was attending St. CloudState University in community devel-opment when he interned underSeppelt in the spring of 2008. Miller’soffice at the time was across the hallfrom Seppelt’s, one he now occupies.

“I have always held Hutchinsonclose and dear to my heart since then,”Miller said. “I know I have some big

shoes to fill. I’m going to try to pick upthe many hats Miles had on.”

Miller has built up his resume sinceleaving Hutchinson five years ago.After his internship and graduationfrom SCSU, he served as director of theRegion 5 Development Commission.He served the north-central Minnesotacounties of Cass, Crow Wing, Morrison,Todd and Wadena counties.

After three years, Miller became a

contract employee of the MinnesotaDepartment of Employment andEconomic Development in 2011. Heserved as an economic developmentprogram specialist for 19 counties incentral Minnesota.

At the end of the six-month contract,he took some time away from econom-ic development before rejoining DEEDserving in a 20-county area of north-west Minnesota. He provided techno-logical and financial assistance tomanufacturers seeking local and statefinancing for development projects.

“The regional jobs really exposed meto development issues,” Miller said.“And working for DEED gave me a lotof insight into how it operates.”

He learned about the opening inHutchinson from the city website andthrough contacts Seppelt had with for-

Lee Miller, Hutchinson’s new Economic Develop-ment Authority director, is familiar with theHutchinson business community. He was the

economic development authority’s intern five years ago. He replaces former

director MilesSeppelt.

PHOTO BY TERRY DAVIS

Lee Miller, a formerHutchinson EDA intern,replaces Miles Seppelt

as director

Miller takes over leadershipof Hutchinson EDA

Feature story


mer interns after announcing his deci-sion to take a position withInterVarsity Christian Fellowship, anationwide college campus ministry.

Miller, who grew up on a farm nearLake Crystal, southwest of Mankato,said the move gets him closer to home,where he still helps with spring plant-ing and fall harvest.

He knows HutchHe said the job also is a good fit. He

knows many of the key economicdevelopment role players inHutchinson and is familiar with someof the ongoing projects.

One of them is the move of the

Farmers Market to the former DakotaRail depot site. Five years ago, Millerappeared before the City Council toannounce a possible resolution to along-running battle over where to putthe market. At that time, the idea wasto move the market from the firstblock of First Avenue Southeast oneblock east to north of City Center. Thatoption got shot down.

The market, a program of theHutchinson Downtown Association,eventually set up shop in the VFWparking lot. The permanent FarmersMarket pavilion should be completedin time for the growers to use it for atleast a few weeks this fall.

Miller is settling into his new job,reviewing the status of several initia-tives Hutchinson has started to attractcompanies and jobs such as the indus-trial park’s “shovel ready” designationand the EDA’s participation in thestate-run Angel Network economicdevelopment effort. He also is wrap-ping up the “Jumpstart Downtown”competition, which selected a proposalto open a bakery as the winner of a$25,000 prize of cash and services.

“I’m pretty much trying to dive rightin,” he said.

Terry Davis is a staff writer at theHutchinson Leader.

MINNETONKA EDINA CHAMPLIN MONTICELLO BUFFALO(952) 933-9550 (952) 926-6000 (763) 488-1588 (763) 271-7200 (763) 682-0555

WACONIA MAYER GLENCOE HUTCHINSON STEWART MOUND(952) 442-9940 (952) 657-2500 (320) 864-3161 (320) 587-8800 (320) 562-2553 (952) 345-6280

N021

69 B

2B

The Law Firm ofR.J. McGraw, P.A.

When YouNeed ExpertLegal Help,

Call OnA Trusted

ProfessionalWith Over 40 Years

Experience

Traci Schutz, Ron McGraw, Bev Wangerin

N024

97 B

2B

Suite 202, Citizens Bank BuildingDowntown Hutchinson

320-587-3900

I know I have some big shoes to fill. I’m going to try to pick up the many hats that Miles had on.

LEE MILLER,director of Hutchinson’s Economic Development Authority“

Why does one business get areputation as a great placeto work while another is

plagued by turnover and low produc-tivity? It’s more than a matter ofpaying employees more. It comesfrom employees actively recommend-ing their employer as a great place towork (and do business with). Goingbehind the scenes in many of ourlocal businesses, I’ve observed severalfactors that create a work environ-ment that creates a great place towork.

>> Confidence in the abilities ofsenior leadership.

Employees who feel that seniorleadership is moving their companyin the right direction become morewilling to put in extra effort.Business owners and top manage-ment are the visible face of the busi-ness. They set the strategic goals andsteer the company in the direction toachieve their vision.

>> Employees are able to voicetheir opinions … and know thattheir opinions matter.

Employers who encourage open andhonest communication have moreengaged employees. They openly wel-come employees to share concernsand work together to find solutions.When employees feel they lack oppor-

tunities to express how they feel, theytend to become unmotivated.

>> Opportunity to grow anddevelop new skills.

Owners, executives and managersprovide a clear career path, giveemployees helpful feedback and pro-vide training programs. Employeesneed to feel they have an impact onthe company’s direction of the compa-ny and that they can pursue theirown career goals.

>> The values of the companyand the employee align.

Most employees want to feel theybelong to a community that sharestheir values. According to a recentDale Carnegie Training survey, theengagement level is twice as highamong employees who say they areproud of the contributions theirorganization makes in the communi-ty.

>> Positive peer interactions.A spirit of teamwork and coopera-

tion helps employees create long-last-ing friendships among their col-leagues. Positive peer interaction isrelated to employees’ looking forwardto going to work. These are theemployees who feel proud to be work-ing for their company. They are theambassadors for the organization.

>> Hold everyone accountable.Reward positive contributions.

Supervisors and managers whohold individual employees responsiblefor their own actions and interactionswith co-workers create a positiveworkplace. All employees want theircontributions to be recognized.Rewards need not always be financial— but need to be meaningful to theemployee. Recognition and praise cango a long way.

Great places to work recruit theright people for the right job, giveemployees clear goals and responsibil-ities, and train them throughout theircareers. Business owners, executivesand managers who demonstrate trustfor their employees, communicatewith them and recognize and rewardtheir work are building a workforcethat gives their organization a com-petitive edge.


Litchfield Chamber

How to create a great place to workDee SchutteEXECUTIVE DIRECTOROF LITCHFIELD CHAMBER OF COMMERCE


Business news

OF HUTCHINSON, LLCCitizens Bank Building,

102 Main St. South, Hutchinson

(320) 587-2674

N024

17 B

2B

ScottDecker

CharlieSuedbeck

JoyceCripps

ChrisKaczmarek

The number of businesses without paid employees inthe United States rose 1.7 percent to 22.5 million in2011, according to a new report from the U.S.

Census Bureau. This marked the second straight increase in nonem-

ployer businesses, with all but two states (Louisianaand New Hampshire) posting gains from 2010 to2011. The findings come from Nonemployer Statistics:2011, an annual report on U.S. businesses withoutpaid employees, classified in nearly 450 indus-tries for the nation, states, counties and met-ropolitan areas.

Nonemployer businesses includes 19.4million sole proprietorships, 1.4 millioncorporations and 1.6 million partnerships,which together make up the total numberof nonemployer businesses.

“Approximately 75 percent of all U.S.business locations are nonemployer busi-nesses,” said William Bostic Jr., associatedirector for economic programs at the U.S.Census Bureau. “These statistics provide theonly source of information on the total numberof establishments and receipts at the local level

for this important component of our nation’s economy.”Among industry sectors, services that comprise the

“other services” (except public administration) sectorgained the largest number of establishments, adding

159,163 in 2011, an increase of 4.7 percent. Types ofservices that fall within this sector include automo-tive repair and maintenance, barbershops, beautysalons, laundries and dry cleaners.

The number of nonemployer businesses declined inonly two sectors. The construction sector lost

36,262 establishments (1.5 percent), while thefinance and insurance sector lost 3,088 estab-lishments (0.4 percent).

Total annual receipts for nonemployerbusinesses were $989.6 billion in 2011, anincrease of $38.8 billion (4.1 percent) fromthe previous year.

Nonemployer Statistics covers business-es with no paid employees, annual business

receipts of $1,000 or more ($1 or more in theconstruction industries) and subject to federalincome taxes. Businesses with paid employeeswere covered in County Business Patterns,which was released in April.

Number of businesses without paid employees rises

Standing at one end of the aging room at CarlsonMeats, owner-operator Chuck Carlson points outwhat makes his smalltown meat processing facil-ity successful.

Hanging in neat rows are the carcasses of three cattle,four sheep, a couple of pigs and three yaks.

Yes, yaks.In a world where bigger has become better, where facili-

ties serving factory farms on one end of the food chain andbig box retailers on another slaughter and process thou-sands of cattle a day, Carlson Meats in Grove City is differ-ent.

It is that “different” that helps Carlson Meat ProcessingInc. and its owners, Chuck and Kristin Carlson, thrive in avastly changed business environment from the one Chuck’sgrandfather started in a century ago.

Among Carlson Meats’ customers are buffalo and yakfarmers, hobby farmers who bring only a few animals for

Kristin and Chuck Carlson tookover Carlson Meats from hisfather, Willard, who took over thebusiness from his father, William,who bought the business, thenknown as City Meat Market, in1913.

Cover story


Carlson Meats of Grove City has been inthe Carlson family for100 years, processingmeat for farmers nearand far. Performing

quality, custom workand having

USDA-inspected label status have beenkey to the century-old

company’s success.

Carlson Meatsmarks 100thanniversary

PHOTOS AND STORY BYPUBLISHER BRENT SCHACHERER

Peterson JuergensenHemerick & Co.

Certified Public Accountants

– Providing Professional Service –Confidentiality, Quality & Personal Services

INCOME TAX SERVICES• Income Tax Preparation • Income Tax Planning

• Electronic Filing • IRS Audit Representation

PLANNING• Business Consulting • Estate Planning

• Financial Planning • Retirement Planning

• QuickBooks & Peachtree Consulting

DuWayne Peterson, CPA-EA • Kurt Juergensen, CPA-EAMark Hemerick, CPA-EA • Matthew Dostal, CPA

135 Third Avenue Southeast, Hutchinson, MN 55350320-587-2255 • Fax 320-587-9069

N02168 B2B

320-587-4748 1-866-662-92431165 Hwy. 7 West • Hutchinson

FORD • LINCOLN • CHRYSLER • DODGE • RAM • JEEP

“Your Complete AutomotiveService Center”

See our Entire New & Used Inventory atWWW.JAYMALONEMOTORS.COM

N02651 B2B

Hutchinson • 320-587-4748Not valid with other offers. Taxes extra. Expires 7-31-13

COUPON

Up to 5 qts. of Motorcraft® Synthetic Blend Oil and Motorcraft oil filter. Taxes, diesel vehicles and disposal fees extra. Hybrid battery test excluded.Please present coupon when service order is written. See dealer for details.

$2995• Oil Change• Tire Rotation• Belts & Hoses Check• Filter Check

• Brake Inspection• Battery Test• Fluid Top-Off• Multi-Point Inspection


slaughter each year, organic beef farm-ers and other small job customers.These customers have a variety of spe-cialized requests for the Grove Citybutcher — requests that might notreceive the kind of attention theyreceive at Carlson Meats, or even bean option, at a larger processor.

“Our customer who sells yak, hewants jerky that doesn’t use anynitrates,” Kristin Carlson said. “Or hehe’ll make brats, but they have pork inthem. There are a lot of differentthings we do — yak brats, beef bratswith pork, and beef brats withoutpork.”

“That’s what custom work is,though,” Chuck Carlson said. “A lot ofvariations.”

Custom work is what helps CarlsonMeats stand out. Well, that and thecare Chuck and Kristin Carlson — andtheir staff of 10 full- and part-timeemployees — put into their work.

“We kind of pride ourselves in doingquality work,” Chuck Carlson said,adding that pride and the USDA-

inspected label they’ve held since themid-1970s have been major sellingpoints for the meat market during thepast few decades.

It’s a success steeped in history,ranging across three generations ofthe Carlson family.

It all began in 1913 when WilliamCarlson — Chuck’s grandfather —purchased City Meat Market. “BillyButch” sold fresh cuts of meat, as wellas sausages and other specialty itemsfor Scandinavians in the area, accord-ing to a description on the CarlsonMeats website, www.carlsonmeats.com, and which was compiledinto a book for family and friends justin time for the business’ centennial cel-ebration in mid-June.

William Carlson purchased animalsfrom local farmers, and slaughteringwas done in a small building in thetown pasture, what is now GroveCity’s Windmill Park. When slaugh-tering was complete, the meat washauled back to the meat market whereit was stored in a cooler that was

chilled by ice taken from local lakesthe previous winter.

The second generation of the busi-ness — Chuck’s father, Willard —grew up in the family business, even-tually taking over when his father diedin 1954. The business model began tochange in the 1950s and 1960s, theCarlsons said, when the focus changedfrom fresh daily meats to custom pro-cessing and frozen meat sales.

A new slaughter house was built in1955 and aging coolers were added toaccommodate the increase in customprocessing. Then Willard Carlson madeone more big move in 1967, relocatingthe meat market from its main streethome to a lot one block off main street,where the business is still located.

Since that move, a cutting room andretail sales area were added on,Kristin Carlson said, jokingly addingthat after multiple remodels and addi-tions “there are rooms I haven’t evenbeen in yet.”

That, of course, is only a joke.Because since the mid-1970s, Chuck

Cover story

and Kristin have put their hearts andsouls into the business to continue afamily tradition and business that’shad remarkable staying power.

It wasn’t exactly part of the planwhen Chuck left Grove City for col-lege.

“In high school and early college,my dream was to go into wildlifemanagement,” he said, adding thathe attended the University ofMinnesota because it offered amajor in the field. He later movedto Bethel College, where he earneda degree in biology.

Chuck and Kristin were inMontana in the fall of 1975, wherethey hoped he would land a job inhis chosen profession, when theyreceived a call from his father.

“It was the fall, and it was busy andhe needed some help,” Chuck said. “Hewanted to know if I’d come and help.And sure, you know, I didn’t have any-thing, didn’t have a job.”

Kristin grins as Chuck tells thestory of how they wound up back inGrove City.

“What I like to say is, we camebecause Dad said, ‘Can you come andjust help out,’” she said. “And we’vebeen helping out ever since. We’re stilltrying to decide what we’re going to dowith our lives. You know, it goes sofast.”

So fast, the couple realized recently,that Chuck has logged more years atCarlson Meat Processing Inc. thaneither his grandfather or father, 38years in all.

Chuck became owner of the businessin 1983 when his father died. He cred-its his father’s tutelage and that of oneof his father’s employees for helpinghim learn the business quickly fromthe ground up. And he gives a big nodof appreciation to his father for his for-ward thinking when it came toimprovements in the business.

Expansion of the physical plant wasone thing, but that growth wasprompted by a key change in the busi-ness approach in the early 1970s whenWillard Carlson sought USDA-inspected status.

“Used to be all the meat marketswere the same … you could do whatev-er,” Chuck Carlson said. But in theearly 1970s, under a push by then-Sen.Walter Mondale for better meat inspec-

tion, the U.S. Department of Agricul-ture inspection program was madeavailable to butchers in Minnesota andthroughout the country.

Chuck Carlson said he remembershis dad talking about the change, con-vinced that it would be a good move forhis business, even though it added sig-nificant expense and a layer of govern-ment oversight that didn’t previouslyexist.

“We had a guy (who) came here andreviewed our plant and he said, ‘If youdon’t go federal, you won’t be in busi-ness. That’s the wave of the future,’”Chuck Carlson said. “Of course, thatnever happened, but that’s when wewent federal.

“Dad had to do a lot of remodeling.There were a lot of requirements youhad to go through,” he added. “Butright now, I’m glad we are (USDAinspected). It gives us a slice of busi-ness we wouldn’t have otherwise.”

The USDA-inspected program,which calls for a government inspectorto be on-site 40 hours per week, allowsproducts processed at Carlson Meatsto be sold to other businesses, such asconvenience stores, groceries and bars.

Chuck Carlson said that brings cus-tomers from as far away as SaukCentre, Delano, Montevideo andLuverne to have their livestock

processed at Carlson Meats.That’s important, of course, because

the number of local customers hasshrunk as the number of farmsthroughout Meeker County hasdeclined.

As consumers pay more attention tolocally produced foods, and to knowingthe farmer from whom they get theirvegetables or fresh meat, it mightseem like a great opportunity for asmall-town meat market like CarlsonMeats. But that assumption isn’t assimple as one might think, ChuckCarlson said.

“Everybody talks about that,”Carlson said of the local-foods move-ment. “You’d think there would be peo-ple flooding in the doors to get meatfrom local farmers. But you know,price is still a big thing for people.”

Still, small meat markets like theCarlsons’ have their supporters.Kristin said that not a week goes bywhen a customer doesn’t come in witha story about, ‘Oh, I can’t buy ham-burger at the grocery store anymore,because you’ve got me spoiled.’”

Products like summer sausage andwieners are big sellers in the CarlsonMeats retail area, which providesabout 30 percent of the business’income. Taste is what brings cus-tomers back regularly, Kristin Carlson

Cover story


SUBMITTED PHOTO

In 1913, William Carlson — Chuck’s grandfather — purchased City MeatMarket in Grove City. “Billy Butch” sold fresh cuts of meat, as well assausages and other specialty items for Scandinavians in the area.


Cover story

301 Ramsey Ave. N. • Litchfield, MN 55355Phone: 320-693-3255 • Fax: 320-693-7429

800-893-3255 • www.cnbmn.com

YOUR HOMETOWNBUSINESS BANKERS!

TOM SMITH, DAWN JANSEN, JIM VRCHOTA, KAREN ZIMMER AND DAVE DAEGES

N021

72 B

2B

Business & CorporateService Discounts

ASK ABOUT VALLEY’S

Available for any size business

A car dealer for the times in Hutchinson

525 Hwy. 7 East, Hutchinson320-587-2240

Toll Free 877-464-8824www.valleyhutchinson.com

� Fleet Discounts• For all your company vehicles• Special discounts• We provide maintenance schedule and records

� Employee Discounts• Available for companies from two to 2,000. • Employees and family members qualify• Can be part of your benefit program for

your employees

Call John Clark or Darrin Berg today for details Some restrictions apply

said, but there are those who recognizethe Carlsons’ approach to “minimallyprocessed” products is more health-ful than large-scale operations.

“You can go into the conven-ience store and see summersausage not even refrigerated,”she said. “You know that’sloaded with stuff. We use theminimum of preservatives, formeat that’s not overlyprocessed.”

Carlson Meats creates thoseminimally processed productsusing recipes Chuck Carlson’sgrandfather created. Through theyears, he’s added his own recipes, too.And while those are recipes for meatproducts, one might also say theCarlsons have struck on a recipe forbusiness success, as well.

“I think (Chuck) has done a good jobof transitioning to the way the meatindustry is going while staying small,”Kristin said. “There are few our sizethat do everything, and that are underUSDA inspection. We’ve grown with

that and changed to fit that niche. It’svery much a niche.

“It’s been a good life for us,” sheadded. “But there is sort of an art tokeeping it … to having enough busi-ness that you can pay the bills, but notmaybe so large that you lose the per-sonal relationships with your cus-tomers.”

A key change atCarlson Meats took place

in the early 1970s, whenWillard Carlson sought USDA-

inspected status. This allows prod-ucts processed at Carlson Meats to besold to businesses such as conveniencestores, groceries and bars.That bringscustomers from as far as Delano,Sauk Centre, Montevideo and

Luverne to have livestockprocessed at Carlson

Meats.

No matter if you were in favorof, or against, any particularpiece of legislation, most of

us can agree, we’re glad that the 2013state legislative session is finished.

I’m impressed by the passion withwhich businesses understand andchampion their causes. The choice togo through the channels, reaching outto legislators and making a case for oragainst something with statistics andconcrete information is not alwayseasy. Our local representatives assureus this is the best avenue for each ofthem to support you, their con-stituents. Once in hand, they cantake this information to committeesand other legislators for discussionand persuasion.

Here are a few items we heardabout from our Chamber memberbusinesses this spring:

� Business to business tax � Omnibus jobs and economic

development bill� Bonding bill� Minimum wage hike� Long-term care services� Minnesota Insurance

MarketplaceNo matter where you land on the

support spectrum for these, or otherpieces of legislation, I encourage youto join the conversation. There aremany educational resources availableto learn more about business on thestate and federal level.

Some websites to explore include:� www.freeenterprise.com/enter-

prisingstates shares informationregarding each state’s ranking forseveral business factors. The U.S.Chamber has a number of resourcesand information available on theFreeEnterprise website.

� www.positivelyminnesota.com isthe site for the Department ofEmployment and EconomicDevelopment. Learn about variousbusiness topics, and government pro-grams for business growth.

� www.leg.state.mn.us includes leg-

islators, bills, schedules, publicationsand the legislative process.

� www.senate.gov andwww.house.gov follows the U.S.Senate and House of Representatives,members, their committees, legisla-tion, history and more.

We’ve included a list of our localrepresentatives. Their job is to listento what you have to say, how you feel,and represent your needs at theCapitol. Discussion leads to educateddecisions and supports progress,while complaints and attacks stifleour ability to be thoroughly involvedin the process. Please consider addingyour voice to the conversation.

Mary Hodson PRESIDENT OFHUTCHINSON AREA CHAMBER OF COMMERCE AND TOURISM

Local business leaders contributeto legislative conversation

Hutchinson Chamber


How to contact local legislators

� Gov. Mark Dayton651-201-3400 or 800-657-3717www.mn.gov/governor

� Sen. Scott Newman (District 18)[email protected]

� Rep. Dean Urdahl (District 18A)651-296-4344 or [email protected]

� Rep. Glenn Gruenhagen (18B)651-296-4229 or [email protected]

� U.S. Sen. Al Franken202-224-5641 or 651-221-1016www.franken.senate.gov

� U.S. Sen. Amy Klobuchar202-224-3244 or 888-224-9043www.klobuchar.senate.gov

� U.S. Rep. Collin Peterson202-225-2165www.collinpeterson.house.gov

To learn more about legislators, bills, schedules, publications and the legislativeprocess, go online to www.leg.state.mn.us.


The Minnesota Department of Revenue is reviewingthe tax changes recently signed into law.

The changes might require sometaxpayers to do things differentlyand the Department of Revenue is

working to provide guid-ance and instruction.

To ensure thoseaffected by the taxlaw changes have

the informationthey need, the

Department ofRevenue will

provide week-ly updates,

based on when thechanges take effect.

Starting June 6, the Department ofRevenue started posting new or updated law changeinformation at 9 a.m. every Thursday on its website:www.revenue.state.mn.us/Pages/law_changes.aspx.

Department of Revenue to offerweekly updates on new tax changes

The U.S. Department of Agriculture Acting DeputySecretary of Agriculture Michael Scuse led a trade missionin June to promote U.S. agricultural exports to Turkey.Representatives from Iowa, Minnesota, Missouri,Nebraska, North Dakota, and Pennsylvania, as well as 20U.S. companies participated.

Companies attending the Turkey trade mission repre-sented a wide variety of agricultural products.

“People around the world continue to demand U.S. foodand agricultural products, boosting American businessesand supporting our rural communities,” Scuse said.

With its rapidly developing economy and expanding mid-dle class, Turkey is becoming a key market for U.S. food andagricultural products. U.S. agricultural exports to the coun-try tripled over the last decade. In fiscal year 2012, two-wayagricultural trade between the two countries reached morethan $2.4 billion, with U.S. exports accounting for morethan 75 percent of the total – a significant contribution tothe U.S. agricultural trade surplus.

USDA trade mission to Turkeyaims to create opportunitiesfor U.S. agriculture companies

Business news

For more information: Call 320-693-2472

Visit our website: www.ecumenoflitchfield.org

Congratulations to EmmausGift Shop in Litchfield on 60th Anniversary!

BIG THANKS to the Auxillary andVolunteers for all their hard work!!!

Senior HousingIndependent Living &Housing with Services

• Gloria Dei & Emmaus Place• Bethany Assisted Living• Bethany Memory Care

Care CenterLong Term Care &Rehabilitation Services

• Emmanuel

Transportation• Meeker Public Transit• Meeker Council on Aging

Volunteer Drivers

Community Services• Adult Day Services

• Home Care & Hospice Care

• Hospice Care

• Foot Care Clinics

• Lifeline®

• Meals on Wheels

• Support Groups

Ecumen of Litchfieldprovides a full array of services:

Hutchinson l Litchfield l Cosmos l Willmar

Josh Gehlen

Great RatesFlexible ProductsHighly ExperiencedDecisions Made Locally

www.hsbofmn.comCall Today 234-9988


During the past two months,Meeker County EconomicDevelopment Authority and

the University of Minnesota and theMinnesota Department ofTransportation District 8 region havebeen conducting business retentionand expansion visits.

The purpose of the visits is to sitdown with businesses in MeekerCounty and throughout the MnDOTDistrict 8 region to learn of trans-portation issues that might exist onMinnesota roads and highways.

The study will be completed in July,with the completed report from theUniversity of Minnesota due out lateSeptember or early October.

One item we discovered during ourvisits is a lack of understanding aboutthe “511” tool for transportation com-munication in Minnesota. “511” is apublic service provided by theMinnesota Department ofTransportation to help travelers andbusinesses access information aboutroad conditions, traffic incidents, com-mercial vehicle restrictions andweather information.

The information can be accessedvia a land line, the web, or from yourmobile phone. It is accessible 24hours a day, 7 days a week. This canbe helpful for getting a company’sproduct out, or receiving materials in,without delay due to unknown roadconditions. To access this informationvia your phone just simply dial 511 orvia the web at www.511mn.org

What’s happening in MeekerCounty:

Eden ValleyThe residents of Eden Valley do not

rest in their efforts to grow andimprove their business community.But even though they do not rest, vis-itors to the community now can. EdenValley Motel, located at 315 MeekerAve. E., Minnesota Highway 55, onthe east end of the community, hasopened for business. But this is not

your typical motel. This 13-unit moteloperates on a 24/7 self-check-in tech-nology. Located in the office is a kioskthat guides you through the check-inprocess and then provides a roomnumber and an access code for theroom. More information on this wel-

come new addition can be found onthe motel’s website, www.edenvalley-motel.com or by calling 320-453-6835.

KingstonThe Kingston Mini Mart is open

and ready for business. A social gath-ering place for many from the com-munity and surrounding area, it wasa welcome day when the doors openedfor business once again. The inside ofthe store has been remodeled andupdated, but it’s still the same greatplace to stop and pick up the Sundaypaper and maybe a treat or two.Congratulations to Jim and KristieOrn on purchasing and reviving thiscommunity treasure.

Suzanne HedtkeEXECUTIVE DIRECTOR OF MEEKER COUNTYECONOMICDEVELOPMENT AUTHORITY

Meeker County EDA

EDA, state agencies study local transportation concerns

Eden Valley Motel on Minnesota Highway 55 is a 13-unit motel that operates ona 24/7 self-check-in technology.

Jim andKristie Ornpurchasedand revivedKingston MiniMart alongMinnesotaHighway 15.

PHOTOS BY JULIANA THILL


Feature story

By Doug HannemanCONTRIBUTING WRITER

Nine months into his role as HutchinsonTechnology’s president and chief executive offi-cer, Rick Penn is feeling good about his compa-ny’s direction.

Quarterly earnings posted in early May were the best inthree years.

The company’s new Thailand assembly plant is helpingdrive down costs. Within a year, 80 percent of assembly isexpected to occur there, while component production con-tinues in the U.S.

Its Biomeasurement Division, which produces a medicaldevice that measures tissue and organ oxygenation levels in

critical care settings, is finallyclose to breaking even eachquarter after an investment oftens of millions of dollars.

And a new business develop-ment effort offers the promiseof diversification by using thecompany’s unique precisionmanufacturing capabilities.The hope is that new productswill enable entry into newmarkets with new customers.

The company is in the bestshape Penn has seen in years.

“We’re making really bigprogress,” he said recently.“We’re pounding away at get-ting this company out of theditch, quarter by quarter byquarter. And it’s working.”

The “ditch” describesHutchinson Technology’s position after plummeting frombeing the world’s largest-volume producer of suspensionassemblies several years ago — when it commandedupward of 50 percent of the market — to 20 percent today.These days, Penn frequently uses the word “turnaround,”and is adamant that the firm will not repeat the misstepsthat caused it to lose its dominance in the suspension

assembly market.The keys to the turnaround are people and technology.“Through all of this restructuring and all the pain we

have been going through the last several years, we’ve heldonto our core technology,” he said. “We’ve lost a lot of goodpeople, but we’ve hung onto a lot of good people, too.”

In the disk drive industry, Hutchinson Technology’s nicheis its ability to meet its customers’ demand for increasinglytighter tolerances.

“We’re in an environment now in the industry where thesuspension requirements are getting more demanding,where everything is getting a little tougher on manyfronts,” Penn said. “The component requirements are get-ting tighter and tighter to enable the ‘drive guys’ to hit theirproduct requirements, and that’s an environment we dopretty well in. And because we kept our core here, we’reproving, in some cases, that we have a little bit of an edgeover the competitors.”

That edge, Penn said, will win new opportunities withcustomers.

“We feel better now than we’ve felt in years in the num-ber of programs that we’re qualified and slated to partici-pate for new and upcoming disk drives,” he said. “You’ll seethat in the volume as we move forward. You can’t take thatto the bank yet, but overall customer confidence in the

HTI presidentsees bright,

diverse futurefor company

HutchinsonTechnology’s

CEO talkscandidlyabout his

assessmentof where thebusiness istoday and

his vision forthe future

PHOTO BY DOUG HANNEMAN

Rick Penn, Hutchinson Technology president and chief exec-utive officer, said the company is in the best shape he hasseen in years. “We’re making really big progress. We’repounding away at getting this company out of the ditch,quarter by quarter by quarter. And it’s working.”

company is much stronger today than it was two years ago.”Even if suspension assembly sales remain flat, the com-

pany will do well, Penn predicted. “All we need is two orthree more share points, and we’ve got volume levels thatkeep us really healthy and start generating some nice cash.We’re very close to being there.”

During an interview in his office, Penn, 57, talked aboutwhere the company is today and his vision for the future.

Question: Have your first nine months aspresident and CEO been what you expect-ed?“Pretty much. Wayne (Fortun, the previous CEO

and president) did a really nice job starting about twoyears ago pulling back. So I have been transitioning intothis role in an increasingly strong way starting about twoyears ago and then more intensively starting a year ago.So it was really natural and there were not any big sur-prises. It certainly is different now because the buck stopswith me and it used to stop with Wayne. So now I’m fullyaccountable and that’s a big difference, but exciting andgood. We’ve been working this turnaround for a good twoyears plus and I’ve been a big part of that.”

Question: You have four suspension assemblycustomers, with Western Digital accountingfor more than half your total sales. Is that a good or bad situation to be in?

“Well, the market has matured and consolidated, whichis what markets will do. I would rather have many, manycustomers rather than only three or four … and we havefour going down to three. I’d love to have more customersand more options for suspension business but it’s the reali-ty of this industry, and you just have to win with all ofthem.”

Question: How long will data storage on harddisk drives be the answer for consumer use,as the cost of solid state data storage continues to drop?

“That is the multibillion-dollar question. A couple ofthings. One is, what’s really been happening is thattablets and smart phones are what consumers are spend-ing their money on, and buying fewer PCs. And thosedevices are quite capable when it comes to surfing theWeb and doing all the Internet stuff. Flash (memory) hascome down enough in price so it’s useful to put a smallamount of flash in those devices and that can handle whatneeds to be done, and the rest can be stored in the cloud(servers available over the Internet).

“The part of that story that most people forget is thatthe cloud is mostly hard drives. And the main drive seg-ment for the cloud is what’s called capacity-optimizeddrive. These are large high-capacity drives with an aver-age of eight heads per drive. That’s an increasingly grow-ing part of the drive environment in the cloud with moresuspensions per drive than for desktop or notebook PCs.”

Question: But consumers don’t see that.“Consumers are using all their devices andwhether they have a drive in their notebook or not, there’s a bunch of data going to the cloud

and being managed up and down into and out of thecloud, and there’s a ton of storage.

“Years ago you used to hear the term data warehousing.The buzzword today is ‘big data.’ And maybe even themore important buzzword is ‘big data analytics.’ There’sjust a pile of data being stored. There’s more data that’sbeing stored on you and me than can be imagined. Andthat is increasingly being analyzed. And this data has tobe accessed reasonably quickly. That’s what’s gettingstored on these capacity-optimized hard drives. And that’sthe big thing in this business that’s growing.

“So I think there’s going to be a lot of drives sold formany years in spite of flash and in some ways they’recomplementary storage technologies. And there’s going tobe a lot of suspensions sold for a lot of years. This is not adying or declining market. This is really a key market-place for trends that are occurring today, which is lots ofstorage in the cloud, and then there will be some storagein our mobile devices. Most of what is being stored in thecloud is active data, and that’s the realm for hard drive.It’s still fast access but much cheaper storage overall thanflash or solid state drives. It’s projected even out as far as2020, 85 percent of the stuff that’s going to be stored isgoing to be stored on hard drives.

“We’re not expecting massive, rapid growth, but it couldhappen in certain years. But we’re not expecting a cliff asin a decline, either. We’re expecting it to be flat to up aswe look at it overall.”

Question: Is your company right-sized now?“I think so. The model is, keep the critical compo-nents in the U.S. because we can very cost-effectively make those components here and they

Feature story


What does Hutchinson Technology make?>> Its main product is suspension assemblies for disk drives. The

company makes millions of them — more than 390 million last year.Suspension assemblies precisely position the recording head above thedisk and provide the electrical connection from the recording head tothe disk drive’s circuitry. Suspension assemblies are found in virtuallyevery size and type of disk drive, from desktop and notebook PCs toenterprise computing.They also can be found in consumer electronicsdevices such as digital video recorders, personal storage devices andportable media players.

require process technology that we can control a little bet-ter by keeping it in the U.S. But to have the lion’s share ofthe assembly business in Asia makes sense for a couple ofreasons. One, it is cost beneficial to do those assemblyprocess steps in a lower-cost environment. And two, it isreally necessary to be close to our customers in that laststep of the process. We need to be there. The communica-tion needs to be tighter, the interaction has to be moreproductive. If there are issues, we can resolve them morequickly together. So if you want a business model thatworks, you’ve got to be in Asia with assembly, but the com-ponent operations will be U.S.-based.”

Question: Will moving more assembly to Asiaimpact our work force here and in EauClaire?“We’re already phasing down the assembly work

force in Eau Claire. They know that and it has alreadystarted. We’re about 2,000 people overall. We’re about 640or so in Thailand and that’s going to grow some, yet. We’reabout 600 in Hutch. We’re about 700 in Eau Claire. Andprobably about 80 in Plymouth. And those 80 jobs arecoming to Hutch. And we’ll continue some assembly inHutch, so that will stabilize things here.

“Also, this is where new business development is goingto be based and to the degree that we’re successful withthat, and over time we will be, that will also be a growthpattern for this site. Hutch is going to be a pretty key sitefor the company. Eau Claire is going to be a key compo-nent site, and Asia will be key for the assembly, the laststep in the process. And that’s the model.

“So Hutch is not going away. Over time, if we’re success-ful, we’ll even see changing from constantly hunkeringdown to moving up again in size. That is the plan andthose are the facts. Hutchinson will continue to be theheadquarters for the company, and none of that is chang-ing.”

Question: What is your vision for the compa-ny, and how far out does it extend? Whatcan you tell me about your new business development effort?

“We want to have multiple customers in multiple mar-kets with a lead in supplying critical components for thosemarkets. It’s a lot of work, but right now we have four cus-tomers, and that’s going to three, in one market. Thevision is to grow this company and leverage our depth andbreadth of processes and the technical capabilities. Weintend to regain the suspension lead, but also expand intoother markets longer term.

“So when you look at the company three years fromnow, and five years from now, we’ll look different. We’ll bein other markets. We already are involved in some oppor-tunities in other markets. We’re not commenting much onthat yet. But it is a key thrust in the company. It is goingto take some time. And when you’re looking at thoseopportunities, some of those fizzle and some look likethey’ve got some real legs and some real market potential.We want to make sure we build sustainable businessesbefore we start hyping it and make sure that it’s real. Butit’s definitely part of the company’s strategy.”

Question: What do you like best about yourjob?“I am honored to be able to get up and walk in this environment every day, take on the chal-

lenges of leading HTI’s turnaround, and be surrounded bythe caliber of people who are in this company. And that’sin Hutchinson and Plymouth and Eau Claire and Asia.We’ve got just top-notch people, many of whom grew up inthe company like I have and some that came here later.I’m surrounded by people who have been here many yearsand are just sharp, sharp people. So my batteries arecharged up every day. It’s neat to be a part of somethingthat is so rock solid. And I would put this team up against,for sure against our competitors, as far as being thestrongest team on the planet. It’s been built up for manyyears, and despite all the pain and agony over the pastcouple of years, we still have that. And that’s pretty cool.It’s fun to lead and it’s fun to watch people soar. I’m glad Ican be in a position where I can help build us back and Ican help people soar and have better lives. That’s a prettyenriching thing.”

Doug Hanneman is editor of the Hutchinson Leader,where the full version of Rick Penn’s answers were printedon May 12.

Feature story


Name ____________________________________________

Address __________________________________________

City ____________________State ______Zip____________

Mail this form and your $18 or $10 check to

Crow River BusinessP.O. Box 921Litchfield, MN 55355

Expand your local, regional B-2-B network

Keep up-to-date on regional business news, trends, people and best practices. Home delivery subscriptions are available for $18 per year.Subscribers to the IndependentReview or Leader can receiveCrow River Business for only$10 per year.

Subscribe toCrow River Business

Crow River Business170 Shady Ridge Rd. NW,Suite 100Hutchinson, MN 55350

ORTO

CROWRIVER BUSINESSJanuary

2010

N02254 B2B

BUSINESSCROWRIVER

Your local business-to-business source for the Crow River region OCTOBER 2012

Manufacturing makes recoveryin Central MinnesotaHutchinson EDA embraces business incubationLitchfield Chamber tackles workforce, transportationHutchinson markets itself as manufacturing city

Feature:

Published bythe Litchfield Independent Review and Hutchinson Leader $1 on newsstands

Plus::

Transportationbusiness grows infirst six months

drivingsuccess

drivingA

success

Business achievements


By Andrew BromanCONTRIBUTING WRITER

Several years after IdealLumber’s closing, a piece of thecompany’s name remains part

of Brent Nelson’s two new ventures.The one-time site of a lumberyard

and hardware store on South SibleyAvenue in Litchfield today is calledIdeal Business Plaza. It is home to alaw firm, Edina Realty and a corporateoffice for pizza maker Papa Murphy’s.The plaza also contains a spot forNelson’s second business, Ideal SteelStructures.

“I kind of try to follow through withthat name in honor of my dad,” saidNelson about the Ideal brand.

Ideal Steel Structures focuses onconstructing wood pole and all-steelbuildings and was the one service pro-vided by Ideal Lumber that Nelsondecided to preserve through his newventure.

Nelson’s father, Al, picked “Ideal” asa name when he bought J.F. AndersonLumber Co. in 1959. For many years,Ideal Lumber was the area’s dominantlumber yard.

“That name has stuck, and every-body knows it,” Brent Nelson said.

Nelson, who worked at his father’s

business 28 years, took over full-timemanagement in 2003. Nelsondescribed 2003 as Ideal Lumber’s highpoint in terms of profitability. Stayingafloat became more challenging after-ward and, in 2007, Ideal Lumber soldits original site on the west side ofSouth Sibley Avenue to First DistrictAssociation, which used the propertyto expand its dairy-processing plant.

Nelson downsized his lumber opera-tion and moved the main office acrossthe street from First DistrictAssociation, to the east side of SouthSibley Avenue.

Despite using the sale to FirstDistrict Association as an opportunityto pay down debt and become moreefficient, Ideal Lumber could not sur-vive the 2008 financial crisis, Nelsonsaid. A bank reduced the company’s

credit line and tough local competitioncomplicated Ideal Lumber’s bid toremain in business, he said.

In the end, 16 employees were let go.Today, Ideal Steel Structures has oneemployee, Nelson, and a part-timebookkeeper.

“It’s been painful because it’s veryhard to start a business from scratch,”he said.

The former Ideal Lumber officebuilding was converted to individualoffices and renamed Ideal BusinessPlaza. Nelson has leased out 2,400square feet of his 6,000-square-footplaza, while the largest part of thebuilding, formerly a True Value hard-ware store, is still available for lease.

Before opening the business plazathis year, Nelson said, he attempted tosell the entire property, but he couldn’tstrike a deal with prospective buyers.His goal still is to sell the entire prop-erty, he said, and he expects a deal tohappen once he’s able to lease the for-mer hardware store.

“That’s kind of my dream,” he saidabout selling Ideal Business Plaza.“We’d all stay here and lease from thenew owner.”

Andrew Broman is editor of theLitchfield Independent Review.

Nelson creates ‘Ideal’ plaza for businesses

The former Ideal Lumber officebuilding in Litchfield was con-verted to individual offices andrenamed Ideal Business Plaza.Owner Brent Nelson has leased2,400 square feet of the 6,000-square-foot plaza, while thelargest part of the building, for-merly a True Value hardwarestore, is still available for lease.

PHOTO BY ANDREW BROMAN

Brent Nelson convertsIdeal Lumber officeinto Ideal Business

Plaza, leasing space toindividual businesses


CorkboardCorkboard

CROWRIVER BUSINESSJanuary

2010

Cork board ads for as low as $35 per monthCork board ads for as low as $35 per month

Shari ForsmanAdvertising Representative

(320) [email protected]

Business achievements

Schultz namedvice president at Bremer Bank

Jeff Schultz, a graduate ofDassel-Cokato High School,has been promoted to vicepresident in Bremer Bank’sinvestment, managementand trust business.

In his new role, he willassist clients with theirinvestment management,trust administration andfinancial planning needs, aswell as assume manage-ment responsibilities in theWillmar, Alexandria andsurrounding communities.

Schultz joined BremerBank in 2007. He has afinance degree from St.Cloud State University.

NU-Telecom one of state’slargest public companies

NU-Telecom was recently ranked No.80 in the top 100 list of the largestMinnesota-based public companies.This list was published in the March 29,2013, issue of the Minneapolis St. PaulBusiness Journal. The three largestcompanies were United Health Group,Inc., Target Corp. and Best Buy Co.,Inc.

NU-Telecom is a communicationscompany headquartered in New Ulmthat provides voice, digital TV, Internet,managed services, computer sales andcomputer repair services to customersin New Ulm, Glencoe, Goodhue,Hutchinson, Litchfield, Redwood Falls,Sleepy Eye and Springfield as well asAurelia, Iowa.

New Ulm Telecom is a publicly heldcorporation. For more information onthe company, visit www.utelecom.net.

Hutchinson nativeleads New Ulm project

Construction of the new PastoralCenter by the Catholic Diocese ofNew Ulm is being headed up byproject manager AndrewNeubarth.

Neubarth is a 2002 graduate ofHutchinson High School and a2006 North Dakota StateUniversity graduate. He works forDonlar Construction of St. Cloud,Minn., builder of the $7.5 millionPastoral Center.

The 28,000-square-foot centerwill have offices, conference rooms,work rooms and a chapel. It willreplace the existing center nearby,which was built in 1960 and hasfaulty wiring, leaky pipes andother infrastructure issues. Theexisting center will be demolishedafter the new center is completedin spring 2014.

A Member of the Minnesota State Colleges and Universities System. Affirmative action, equal opportunity employer and educator. This document is available in alternative formats to individuals with disabilities by calling 800-722-1151 or through the Minnesota Relay Service at 800-627-3529.

for professionals. by professionals.

C U S T O M I Z E D T R A I N I N G &C O N T I N U I N G E D U C AT I O N

www.ridgewater.edu/customized | 800-722-1151

I M P R O V E Y O U RW O R K F O R C E1Course at a t ime

C u s t o m i z e d Tr a i n i n gYour workforce is your most valuable resource! Are your employees and yourbusiness as productive as possible? Ridgewater College Customized Trainingand Continuing Education is your resource for expert workforce developmentand training, serving every market and industry. Look to us for:

Business/Management

Leadership Development

Computer Skills

Manufacturing/Quality

Power Limited/NEC Code Book

Workplace Safety/OSHA

Contact one of our highly experienced program managers today to see howwe can customize a training program that fits your specific needs!

320-222-6064 www.ridgewater.edu/customized

Professional Development

Child Development

Respirator Fit Testing

Fire/Law Enforcement

Emergency Medical Services

Date post:	25-Mar-2016
Category:	Documents
Upload:	red-wing-publishing
View:	230 times
Download:	2 times

Crow River Business

Documents