Getting to Know Mark!

Since joining Enterprise Minnesota in early March, Mark O’Leary, our new president and CEO, has packed his schedule with tours of manufacturers across the state. These visits give Mark and those of us who join him a chance to meet and reconnect with manufacturers and take the pulse of Minnesota’s manufacturing industry. When possible, we invite local elected officials and representatives of area colleges, allowing us to strengthen ties among the supporters of manufacturing.

Every visit we make is also remarkably inspiring. Case in point: our recent tours at Aagard and Douglas Machine in Alexandria. With a population of around 15,000 people, Alexandria is a hotbed of innovation and manufacturing for machinery used in the consumer-packaged goods (CPG) sector. Aagard and Douglas Machine are at its center, employing more than 1,000 people between them.

With over 300 employees, Aagard’s relentless drive for innovation fuels the company’s work with customers as they automate and meet the growing and changing demands of the CPG markets. During our tour, we saw customized equipment Aagard developed for Energizer, at the urging of Walmart, that allows the battery manufacturer to eliminate all plastic in its packaging.

The equipment uses sustainable materials, and the final package is perfectly suited for an in-store display and divides each pack into smaller boxes, allowing consumers to remove a few batteries while maintaining organization with those they are not using at the moment.

Aagard’s innovation is driven by its huge team of engineers, which constitutes about a third of its workforce. Recruited primarily from colleges and universities in the upper Midwest, the company’s engineers are drawn to Aagard’s drive for innovation, and they stay for the quality of life in Alexandria.

Douglas Machine also serves the CPG market, with a large number of customers in the food and beverage industries. The company, founded in 1964, has more than 700 employees in Alexandria and 125 at a wholly owned packaging machinery company in Grand Rapids, Michigan.

In 2007 Douglas became 100% employee owned through its ESOP (employee stock ownership plan), which company leaders say defines the culture and accounts for strong employee retention rates. “It’s more than just an ownership structure. It’s really what we’re about,” company CEO and CFO Tom Wosepka told us during our tour.

The company has grown dramatically over the last few years. “When your company culture is built on strong values and principles, and you stay true to those values and principles, good things will happen,” Wosepka says.

While Douglas used to make the case that its sophisticated machines provide a great return on investment, a new reality is driving the company’s growth. “The vast majority of our sales were based on ROI. How much labor can we take out? How much more effective can we be?” he says.

Now there’s an additional value proposition. “Our customers can’t get their product out the door unless they automate. They don’t have a choice. They can’t hire enough people,” Wosepka says. Douglas Machine eagerly fills that gap.

The value of tours like the ones we took in Alexandria cannot be overstated. Our mission, to help Minnesota manufacturers grow profitably, is advanced by knowing, and sharing with others, the stories of companies that drive economies across the state.

Both Aagard and Douglas Machine will be featured at greater length in upcoming issues of Enterprise Minnesota magazine. They’re terrific examples of innovative companies, dedicated leaders, and devoted employees across Minnesota and we’re pleased to spotlight their successes.

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