Firm foundation
by Matt Krumrie Matt Kramer recently made a five-stop visit to businesses in Wright County. He’s commissioner of the Minnesota Department of Employment and Economic Development.
Among those visited were companies operating in four different industries in four different cities: the T.C. American facility in St. Michael; Ultra Machine Co. in Monticello; Product Technologies Inc. in Maple Lake; and Von Ruden Manufacturing in Buffalo. He also stopped at the Minnesota WorkForce center in Monticello.
Kramer notes a strong manufacturing base in what could be bedroom communities, considering their proximity to the Twin Cities.
“When communities experience the intensity of residential expansion that counties near the metropolitan area have, the danger is that they will become largely commuter societies, leaving behind the commercial and industrial base that provides good solid jobs,” Kramer says. “Wright County has an outstanding mix of manufacturers who are national leaders in their fields.”
Wright County was once better known for agriculture, but is now quietly becoming a major player in manufacturing. The county has a population of just over 90,000, lies in east-central Minnesota and is bordered on the north by the Mississippi River, and the east by the Crow River.
Buffalo, the county seat and largest city in the county with approximately 13,000 residents, is about 35 minutes from downtown Minneapolis, and about 45 minutes from St. Cloud.
Because of its location near the two cities, employers are able to draw workers from a large labor pool. According to a 2001 Labor Force study by the Minnesota Department of Economic Security, Wright County employees are commuting more than 30 miles one way to their jobs in office/administrative support, construction, management, computer/math, sales, production, finance and health care.
“We have a number of manufacturers who are able to think outside the box,” says Noel Labine, executive director of the Wright County Economic Development Partnership in Rockford. “But we also have a strong work ethic. A lot of people in the county grew up working on a farm. They have that work ethic that you get from living on a farm, and I don’t think you can teach that.”
Will to succeed
Al Anderson, owner of Von Ruden, a company that manufactures drive components, is a prime example. It was 1989 when Anderson opened Von Ruden, a spinoff from a manufacturer he formerly worked for that had moved out of state. The business launch was fueled by $8 million in loans he was able to secure through financing options made possible using mostly Wright County resources. Today, 26 employees work at the 50,000-square-foot facility.
“I was a farm kid from the west metro, and didn’t have much, other than a will to succeed,” says Anderson. “I researched potential locations, in the cities, in smaller communities, outstate, but the city of Buffalo and Wright County seemed to want me more. They were there with me all the way through acquisition, building, and start-up.”
While competitors in Anderson’s industry have recently shifted jobs throughout the United States — to Oklahoma, Kansas, South Dakota or North Carolina, or overseas to places such as France — Anderson resisted the urge to move. And when the economic downturn and manufacturing slowdown forced Anderson to lay off half of a staff that was once as high as 70 employees, he took it personally.
“It was devastating, gut-wrenching, they were all good people,” says Anderson. “It was one of the worst things I’ve ever had to do.”
Like many manufacturing companies, business has picked back up. Anderson is hoping to add more employees this year, and would like to continue to grow.
Competition for these jobs is fierce. Anderson has workers from throughout Wright County and west, as far north as St. Cloud, and throughout the Twin Cities. He recently hired someone from St. Louis Park.
While land is relatively cheap compared to Twin Cities prices in the area, it is not far enough into rural Minnesota to be able to pay lower wages. Most jobs at Von Ruden, Anderson says, pay between $14 to $25 per hour, with an average of about $18 per hour.
“We’re close enough to the cities that we have to pay comparable wages,” he said. “But at the same time, we have a wide pool of talented employees to choose from who want to work here. I think that benefits us.”
Talented workers
That pool is a key reason that Wright Laser Inc. is located in downtown Waverly. Well, that and the fact that Mike Kuske, vice president of sales and marketing, owned the 5,000-square-foot building that is home to its 25 employees.
“Being a startup, it was the most economical way to get up and running,” says Kuske of the contract manufacturer for the medical device industry. “But one of the reasons we chose to be here was because of the pool of people we have to choose from. Within a 25-mile radius of Waverly, there are a number of skilled workers with the skills we need.”
Michelle Zuelzke, president of Wright Laser, agrees.
“It is our focus to employ qualified individuals from the surrounding communities as Wright Laser continues to grow,” she says.
The company, in the town of 750 about 10 miles south of Buffalo near Hwy. 12, works with customers throughout the nation, including NASA. Wright Laser had revenue of about $1 million in 2003, and expects that to grow to $6 million this year, says Kuske. While Kuske says only that the company pays “competitive wages,” he also adds that the company must be doing something right, because competition is fierce in the Twin Cities to attract qualified workers for the types of jobs Wright Laser offers.
“If we don’t take care of them they’ll drive to Boston Scientific, Medtronic, St. Jude’s,” says Kuske.
Or they might just move up the road. Rainbow Enterprises of Monticello, Sil-Pro of Delano, TMS Machining Service Inc. of Maple Lake, and Ultra Machining Co. of Monticello are five companies in Wright County that use advanced technologies to make products for the medical industry, from medical implants to surgical tools.
Big-box retail
Residential growth is leading to the surge of “big-box” retail in the county. The Buffalo Wal-Mart is turning into a Super Wal-Mart and will compete with the Target. Monticello is adding a Home Depot, and Albertville is home to the Albertville Premium Outlet center, with more than 100 stores that attract customers from a 60-mile radius, says Labine.
Josh Behling, vice president of operations and director of marketing and business development for Buffalo-based Scott Builders Inc., has witnessed his company develop or redevelop about 10 projects in Buffalo. They include Buffalo Companion Animal Hospital, Theis & Dougherty Financial Services, Whitesell Medical Office, Ryan Chevrolet Bargain Lot, Mink Lake Manufacturing, and Buff ‘N’ Glo Car Wash.
“Working with the people of Wright County and the city of Buffalo, you get a sense that they are interested in growth, but smart growth,” says Behling. “They seem to be making sure the residential doesn’t grow too fast, leaving behind ponds, trees and keeping it the beautiful town that it is. But at the same time they realize there is an opportunity to attract business and industry and now is the time to do it.”
That seems to be the theory of most Wright County city officials, business owners, and decision-makers. It’s time to grow, but not while sacrificing quality of life.
“You drive through Wright County and you see farmland,” says Paul Ederer, vice president of Great Northern Bank in St. Michael. “Residents still want that, but there is a real opportunity in existing and developing locations to grow.”
The city of St. Michael, with a population of about 13,000, is the second biggest city in the county, and could surpass Buffalo in coming years. City officials recently approved a plat for a new Town Center adjacent to the current downtown that is approximately 175 acres and will include 300,000-plus square feet of commercial space and 600 residential units, says Bob Derus, city administrator.
The city is also marketing a 19-acre industrial park that has three sites remaining. This spring, on the south side of Hwy. 241, a 7,000-square-foot Stein Steak and Chop restaurant will open.
“There’s a lot going on in St. Michael right now,” says Derus.
Every area growing
That’s music to Pete Servaty’s ears. Servaty, a longtime Albertville resident, was tired of working as a service manager for Richfield Honda. He and his wife, Kathy, considered opening a resort in 1999, but instead opened up Budget Blinds on Main Street in Albertville, a six-employee company that sells window treatments to homes and commercial businesses. With more than 600 franchises throughout the country, Budget Blinds is now the largest franchised window treatment company in the nation, says Servaty.
“There is a ton of new home construction in the area, and that is a positive for me,” says Servaty. “When we did our research, we took that into consideration. There’s new homes going up all over the place, and all sorts of developments in Andover, Rockford, Monticello, Buffalo, St. Michael, Albertville. Every one of those areas is growing.”
For 2004, the city of Monticello has new and proposed residential development totaling more than 1,600 units in eight development project areas, says Jeff O’Neill, deputy city administrator and community development director. That, combined with major improvements to the area highway system, could result in a boom for city development.
“The I-94 and County Road 18 Interchange set for construction in 2005 will create the perfect site for retail and commercial growth,” says O’Neill.
Aaron Weiche, a lifelong resident of Wright County, is the sales and marketing manager of Intrcomm Technology in Delano.
“The thing I’ve learned in this job is about all the amazing companies that are really in the Wright County area,” says Weiche. Weiche mentions Arctic-Fox, a leading supplier of components to the heavy-duty trucking and off-highway equipment markets that is located in a 56,000-square-foot facility in Delano.
“I was amazed when I found out Arctic-Fox had customers based in Siberia,” he says. “But I think with the access to the highways that we have, the residential growth, and the proximity to an expanding metro region, we are on the brink of some big things.”
Al Anderson, Von Ruden: 763.682.3122; Al@vonruden.com; www.vonruden.com. Josh Behling, Scott Builders Inc.: 763.684.0000; jbehling@scottbuild.com; www.scottbuild.com. Bob Derus, City of St. Michael: 763.497.2041; bderus@ci.st-michael.mn.us; www.ci.st-michael.mn.us. Paul Ederer, Great Northern Bank: 763.497.7777; pederer@GreatNorthernBank.com; www.greatnorthernbank.com. Matt Kramer, Minnesota Department of Employment & Economic Development: 651.297.4336; matt.kramer@state.mn.us. Mike Kuske, Wright Laser: 763.658.7103; Mike@wrightlaser.com. Noel Labine, Wright County Economic Development Partnership: 763.477.3086; nlabine@whe.org; www.wrightpartnership.org. Jeff O’Neill, City of Monticello: 763.271.3215; Jeff.oneill@ci.monticello.mn.us; www.ci.monticello.mn.us. Pete Servaty, Budget Blinds: 763.497.9044; kpservaty@budgetblinds.com; www.budgetblinds.com. Aaron Weiche, Intrcomm Technology: 763.972.6392; aweiche@intrcomm.net; www.intrcomm.net. Michelle Zuelzke, Wright Laser Inc: 763.658.7103; michelle@wrightlaser.com; www.wrightlaser.com.
