Des Moines Register
08-06-07
New firm keeps ex-Maytag talent
Springboard Engineering aims to save design center workers' jobs in Newton
By WILLIAM RYBERG
REGISTER BUSINESS WRITER
Newton, Ia. - Jordan Bruntz's idea goes way beyond two guys starting a business
in the basement.
Bruntz said the idea for Springboard Engineering grew out of the stress that
followed the announcement of the Maytag sale to Whirlpool, and plans to shut
down the 65-employee design center.
He recalls sleepless nights and raw emotions: Denial, anger, fear and anxiety.
Then, he hit on an answer - create a new, free-standing company doing the
same kind of work as the center, but for consumer products companies, rather
than one corporate owner.
"I don't want someone else to control my destiny anymore. I want to be in
control," Bruntz said.
The plan is aimed at saving the jobs of as many design center employees as
possible. He and the seven other owners also hope to keep a highly educated
and highly paid work force, and their families, in central Iowa.
"We live here because we love it here. We don't want to move," said Bruntz, 41,
the center's head.
Whirlpool, based in Benton Harbor, Mich., announced in May 2006 that it would
close all Maytag operations in Newton, including the design center. Dec. 21 is the
final day on the Whirlpool payroll for most center employees, Bruntz said.
On Dec. 22, they want to "be hitting the ground running" with Springboard
Engineering, said Bruntz, who will be company president and chief executive.
"We just change the sign out front from Whirlpool to Springboard and away we
go."
Mark Kushner, dean of the college of engineering at Iowa State University,
said contract research and development is a growing business.
Some companies outsource work to India or China, but there's been movement
back to American firms as wages rise in Asia. Also, companies find that relying
on U.S. contractors avoids problems such as time zone and cultural differences,
Kushner said.
Research and development, however, is highly specialized, based on expertise
in a certain industry, he said.
The success of the Newton operation depends on whether their skills match the
needs of other customers, Kushner said.
State Sen. Dennis Black, who has been working with the group, said keeping the
center's talented staff in Iowa is important. Center engineers and scientists are
"world class," he said.
The engineers and other employees of the center have hundreds of years of
combined experience in developing new products, making prototypes and testing
machines.
Many have advanced degrees, and their work at the center led to patents for the
company.
Over the years, the center developed hundreds of successful products that
helped Maytag promote its reputation for dependable appliances.
Not every single one was a winner. Maytag made industry history when it
introduced an innovative front-loading washer called the Neptune in the late
1990s.
Early models, however, developed problems that resulted in a consumer classaction lawsuit in 2005.
Bruntz says the center was involved in the design of the first Neptune and also in
implementing many of the corrective actions that now have made it one of the
most reliable products in the industry.
According to the state's Small Business Development Center, new businesses
have a 50 percent failure rate in the first five years, but that includes businesses
bought by another company.
"It's a new challenge," said co-owner Steve Comer, another top manager at the
center. "It's exciting."
Comer says he's willing to take the chance. He turned down a job with Whirlpool
in Michigan to help launch Springboard.
Bruntz and his seven colleagues are investing their own money in the company,
and are working on other financing from banks and financial assistance from
state, local and federal governments.
About 50 percent of the necessary financing has been lined up so far, Bruntz
said, although he wouldn't disclose the goal.
He is confident that Springboard will get off the ground.
Bruntz is a 20-year Maytag employee. He and his wife, Crystal, a human
resources manager in Des Moines, have children ages 6 and 5.
"This is where our families are. This is where our friends are. This is where our
roots are," he said.
Kim Didier, executive director of the Newton Development Corp., said
Springboard has gotten help from the University of Northern Iowa on marketing,
and from government agencies on essentials such as developing a business
plan.
Other former Maytag employees have started new businesses, but Springboard's
plan is the most ambitious so far in terms of immediate job creation, Didier said.
Springboard plans to buy center equipment from Whirlpool, so working capital is
needed to get the business up and running.
Springboard already is working on lining up its first client - it expects to continue
work on Whirlpool products on a contract basis, Bruntz said.
The company will also be looking for clients in all kinds of industries - appliances,
automotive, aerospace, agricultural implements and others.
The new company could be located in the center's current quarters across the
street from the former Maytag headquarters.
However, Springboard owners are also talking with leaders in other communities
in central Iowa, Bruntz said.
Newton Mayor Chaz Allen wants to keep the operation in town.
"It's an incredible idea," he said. "Anything that will help keep that kind of talent in
town is a plus for the community."
Without Springboard, the engineers, scientists and staff members would be
scattered. Most of the new owners had offers for jobs with Whirlpool in Michigan
and other companies out of state, Bruntz said.
Springboard co-owner Scott Griffith was also among employees offered a job in
Benton Harbor.
He decided to invest in Springboard instead.
Griffith, an engineer by trade, is learning the ropes to become Springboard's new
director of marketing.
"I've got a lot of faith in Jordan and my fellow workers here," he said.
The company hopes to offer employees salaries close to their current rate,
Bruntz said. The center's annual payroll is about $3.9 million, before bonuses,
Bruntz said.
"Our goal would be to provide a job for everyone. I'm not sure we can get there.
But that's our goal," Bruntz said.
Center employee Colette Ergenbright, a consumer scientist, turned down a
Michigan offer, and is hoping to stay in the area.
Her husband, Ed, a Newton native, is the head football coach at Newton High
School. The couple has children, ages 16, 10 and 8. "We're just happy with living
here," she said.
Reporter William Ryberg can be reached at (515) 284-8104 or
bryberg@dmreg.com