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Enterprise Minnesota Magazine - September 2011
HELPING MANUFACTURERS GROW PROFITABLY
Automated Advantage
New products and a renewed commitment to growth have Red Wing’s Automated Equipment poised to prosper.
Over the past 30 years, Automated Equipment LLC has built its reputation on easy-to-operate machines that stand the test of time.
“People often say, ‘You guys build equipment too well, it never breaks down, I don’t need a new one,’” says David Muelken, general manager and partner.
From its automated French fry dispenser to its soft serve ice cream dispenser, the dependable nature of Automated Equipment’s products has landed them in more than 40 countries worldwide. So when the company wanted to expand its product line, it was careful to design with the same attention to quality and ease of use in mind.
In 2010, the company began offering a commercial sized trash compactor that can compact trash in a 20:1 ratio at the flip of a switch. The machine reduces trips to the dumpster for employees and trash collection expenses for commercial operations. While the compactor falls outside Automated Equipment’s established niche of refrigeration, dispensing and portion control products, Muelken says it caters to the needs of many existing customers, as well as its mission to respond to market demand.
Later this year, the company will unveil its newest invention, a patent-pending, refrigerated particulate dispenser for the chopped candy used in Dairy Queen Blizzards®, Sonic Blasts® and McDonald’s McFlurrys®. The product is a refrigerated version of the dry particulate dispenser Automated Equipment already manufactures for many of the franchises, and helps perfect temperature and portion control for the candies that become sticky if not refrigerated.
“You push the button and you get the exact amount [of chopped candy] for each Blizzard®, and it dispenses it right out of a refrigerated cabinet,” Muelken explains. “It really will improve their process and product consistency, which will make for a better quality product.” He estimates that in time, the product could eventually make up 10 to 15 percent of the company’s total annual sales.
To capitalize on both new and existing product earnings, Automated Equipment is participating in Pathways to Business Growth, an Enterprise Minnesota-led program designed to help companies double their earnings within two years.
The Pathways to Business Growth program is administered by Enterprise Minnesota with a $515,000 grant from the Manufacturing Extension Partnership. In it, companies learn to jumpstart innovation and sustainable growth through a series of integrated solutions including a business assessment, strategic planning, innovation and idea mining services, leadership development, and marketing strategy. The goal is to help companies launch new products and services, reach new customers and markets, and ultimately double their earnings. Automated Equipment is one of 10 companies selected by Enterprise Minnesota to participate in the program this year. Muelken feels it will help his company to take a magnifying glass to its processes and organization.
“We’ll ask ourselves, are we purchasing right? Are we manufacturing right? Is the flow through our facility what it should be? Have we put people in positions to be successful? I think we’re going to learn a lot about ourselves through this process, and that’s neat. …If we can come anywhere close to doubling our earnings, we feel [the Pathways program] will be wildly successful,” Muelken says.
©2011, Enterprise Minnesota. All rights reserved.Reproduction encouraged after obtaining permission from EnterpriseMinnesota. Additional Magazines and reprints available for purchase.
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