Diversified Expansion

Sales have exploded at Brainerd- and Coon Rapids-based Lexington Manufacturing since 2018, growing from $75 million then to more than $120 million in 2024. That puts the company on track to reach the goal set at a company retreat in 2018 to top $200 million in annual sales within a decade.

Lexington customers include a range of top window manufacturers as well as premier commercial door brands around the country. Mindful of the risks that too much business with one customer can bring, Mike Dillon, Lexington’s president, says the company wanted to continue growing with its large OEM manufacturer, “while not having any one of them exceed our comfort level for single customer concentration.”

The company’s aim is well-balanced growth as it works toward that $200 million figure. It uses a combination of disciplined HR strategies, improved processes, and prudent acquisitions.

Dillon believes a key to Lexington’s success – and the biggest bottleneck – is people. “We have to get people in the business, teach them what to do, how to be leaders, and develop their technical skills,” he says.

The company has focused on improving what Dillon calls its people development architecture. Not long ago, only about 40% of new hires stayed on the job longer than 90 days, a situation Dillon found frustrating and costly. To turn that around, the company revamped its hiring, on-boarding, and training processes. Today, 90-day retention is above 70%.

Metrics also play a role in Lexington’s success. In 2018, the company adopted the Entrepreneurial Operating System (EOS) to focus on quarter-after-quarter, year-after-year process improvement and long-term goals.

The company also sought help with continuous improvement projects and began requiring higher-level managers to participate in professional development. “Having a more disciplined approach to execution was the first thing we had to do, and that took a lot of practice,” Dillon says.

As the business has grown, Lexington has implemented continuous improvement into its operations. It has conducted lean leader training at all of its plants and offices. “It’s not about making anyone work harder,” says Jeff Morin, vice president of operations. “It’s about getting things that cause problems out of the way.”

The company is looking for both defensive and offensive acquisitions to propel it to the $200 million figure. These could include competitors, suppliers, or firms that make complementary products. “Our value is turning various raw materials into a usable part for OEMs and doing it efficiently and in a high service model so they can make their products the way they want to, Dillon says.

“They have done so much groundwork,” says Dawn Loberg, a business development consultant with Enterprise Minnesota, who has worked with Lexington extensively. “They knew where they were going and what they needed to do. Now they’re ready for their next big jump.”

For more details on Lexington’s strategies and growth, check out the Fall 2025 issue of Enterprise Minnesota magazine, available now.

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