Hanson Silo - Enterprise Minnesota

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Started in 1916- Family Owned
Currently 4th Generation ownership
Lake Lillian, MN
15 miles SE of Willmar
Current Ownership
• 4th Generation – Matt 38 and Mike
Hanson 32(Brother)
• 3rd Generation- Gregg Hanson 67
(Father)
• Gregg Bought out his uncles, cousins and
father in 1984 after hard times in the
Agricultural sector
Currently Hanson serves the Agricultural and
Industrial marketplace with the following segments.
•Precast Concrete Products
•Custom Steel Fabrication and Powder Coat
Painting Service
•Silos and Farm Equipment- 12.7% of total sales
for 2014
•Easy Rake Silage Facer
•Combine Header Trailers
Silos and Silo-related feeding equipment
represented 100% of the sales mix until 1985
At one time unspoken and unwritten - Hanson Silo
always had a Vision For Growth. History shows
there was an innate desire to succeed and grow.
• During the Great Depression, in 1930, 2nd Generation used the silo
trucks to haul hay from river bottom land north to drought-stricken
farmers
• After WWII, the 2nd Generations opened manufacturing plants in
Luverne, MN and Lake View, IA
• Hundreds of product improvements and patents came to fruition
during the second generation’s reign
• The company continued to innovate in the Silo and Silo Unloader
business through the mid 2000s
Newell Hanson Invented and Patented the Dome Silo Roof
And Machine to manufacture it. This picture is still in the US Patent
Book demonstrating the strength of his new dome roof.
Grandpa Willard’s Load in 1946
My Load of silo staves in 1996
The entire plant was run on Belt Line Drives
Newell’s original roof machine
The wooden siding on the walls was actually Redwood Silos we traded in on concrete silos
Silo and Unloader production in full swing in the 1970s
From American Continental golf carts
Gregg saw the need to
diversify the Company
in the early 1980s.
•
Silos have mostly been on the decline
since 1978
•
First attempt to diversify came in 1985
Gregg bought American Continental golf
carts
•
Then that grew into ShuttleCraft USA
which Hanson ran until 1990 when it was
sold to Sioux Steel
• All Diversifications then and today
are challenged by the core business’
seasonality.
To a Honda powered CAD designed Cart
Diversification / Growth Timeline
• 1985 – purchased Golf Cart manufacturer
• 1986 – Bought out largest silo competitor
• 1990 – 1998 purchased multiple competitive Silo companies and Unloader
manufacturers
• 1994 – landed first contract manufacturing job building Sugar Beet Harvester
components
• 1995 – Installed state of the art Powder Coat painting line (Conveyor System)
• Opened doors to more fab to finish work
• Pulled Powder Coating jobs from 500 miles away at that time
• 1995 – added a Precast Concrete plant, and purchased 4 forms to build Bunker
Silos. Currently we have 53 bunker forms which we pour everyday and a myriad
of other Ag.-related precast
• 2002 – Started Architectural Block company with non-family partner –
manufacturing architectural block for commercial applications - sold this in 2005
Diversification / Growth Timeline
• 2005 – Sold the Silo Unloader Manufacturing and Distribution channel
• Maintained the Retail presence in MN and SD
•
•
•
•
•
Had to “Right Size” the business
2006 – constructed 2nd Precast plant to increase capacity
2010 – Purchased the Easy Rake Silage Facer
2012 – Purchased Combine Header Trailer manufacturing company
2015 – Purchased 3rd Precast plant and are installing right now
Until 2014, Hanson Silo’s previous gross sales
record was 1978
•For comparison, if you calculate
inflation from 1978 to 2014, we are
still only 1/3 the size company we
once were
• While this fact is unique and interesting, we needed to change.
• Gregg, Mike and I engaged Vicki Prock and Mary Connor to help us
rebuild our strategic plan in 2010
2010 - Operation Strategic Plan Rebuild
• We began with the end in mind
• We needed to learn more about what didn’t work and why
• We analyzed our past successes
• We developed a Roadmap for future success and published it
• We Identified 4 core values that have made this company successful
• While being careful not to turn our backs on what has made us successful
• Challenge was breaking the culture of the passive aggressive folks.
• Tried to be more deliberate about our seasonality and what we require from our folks
• Hanson is vertically integrated and accustomed to change
• Mike and I tried to identify Gregg’s long-term goals
• All while breaking of the culture of conflict avoidance
• Set realistic Organic Growth goals
Strategic Vision for Hanson Silo
Mission:
Our mission is to draw on
nearly a century of
experience and success in
commodities storage to
support and enrich the
agricultural and industrial
communities through
innovative manufacturing,
industry-leading products,
and customer-focused
services.
Core Values:
Vision:
 INGENUITY – Innovative
Giving our best for
another 100 years.
efforts that inspire new
possibilities.
 LEAN – Efficiency that
maximizes resources, avoids
wasteful practices while
working SAFELY.
 DILIGENCE – Persistent hard
work committed to excellence
and a job well done..
 FLEXIBILITY – Diverse talent
and approach with a positive
attitude.
Lead With Lean
Sales and Marketing
With Purpose
Data Informed and Driven
Decisions
Leadership at all Levels
These are Our Key Strategies: They are the areas
the company will focus on. They will help us
with checks and balances and will focus our
attention on actionable results.
Definitions of Strategic Initiatives
Building Leaders At All
Levels
We all share in the future at
Hanson Silo. We will focus on
building the skills and abilities
that will enable all of us to
share in both the work and the
rewards of leadership. We will
define and reinforce the
highest level of performance
in all we say and do.
Data Informed and
Driven Decisions
We will be diligent about
collecting and understanding
the information that tells us
how we are performing. We
will seek out and rely on this
data to lead us in making
informed decisions.
Sales and Marketing with
Purpose
We will be intentional about
our markets and the approach
our sales efforts will take.
Understanding and driving
toward specific market and
customer opportunities will
guide our business future.
There is a
difference
Leading with Lean
We will use our commitment
to Lean to ensure we continue
to produce highest quality
products and eliminating
waste.
Organizational Growth Goals
Hanson Silo will realize increases in
revenue that reflect our ability to proactively
capture new sales and new markets and
manage all customer interactions with
efficiency and cost effectiveness.
Technology Adopted as a Result of the
Strategic Plan
• Implemented Salesforce.com in 2011– data driven decisions
• Switched to Google Enterprise for our Email in 2010
• Fully embraced Mobile devices in Sales, Administration and
Production
• Installed a 20 acre wi-fi network
• Implemented the use of collaborative Google Drive (Docs) company
wide
• Installed Cloud Based ERP system- later went back to Client Based
Server ERP (Syspro)
• Installed 2 to 3 monitor systems on everyone’s desktop
Precast Concrete Manufacturing and Installation
Fertilizer Building NE of Oklahoma City- Finished June 29th 2014
Cattle confinement building on Hanson precast bunk and walls
Ethanol By-Product Storage system in Kansas Beef Farm - over 100,000 Cattle on this Farm
Typical Silage and Commodity Storage bunker for either Beef or Dairy
Hanson
Fence Line
Feed Bunks
for either
Dairy or
Beef Cattle
Cargill Fertilizer Remodel - New Sharon, IA
Insert zoom boom
Photo here
On Farm Turkey Compost System
New 16’L install in St. Paul – They are Big!
Ramsey County Salt Storage System
Mid-Size Landscape Block- Weight 500# each
Powder Coating and Manufacturing
• We intentionally grew this division to diversify our business portfolio
outside of Agriculture
• another result of our Strategic plan.
About the only thing we HAVEN’T powder coated is a cheeseburger……
This is Shamu’s Jumbotron for Daktronics
Easy Rake Silage Facer
Purchased from Riverview Dairy in 2010
Dealers located throughout the US and Canada
We manufacture and retail in MN, parts of IA and SD
Fertilizer Rakes engineered by Hanson
have made plants much safer
Combine Header Trailer
• Purchased in 2012
• Fit our Diversification away from Livestock but staying in Agriculture
• Opened doors on design and technology
• Brought the need for a Manufacturing Engineer and Solid Works.
• Acquisition direct result of our Strategic Growth Plan
Next phase for Hanson
• Near Future - Leadership training and development project through
Enterprise Minnesota
• Continue with 10% organic annual growth
• Work on buying the other half of the business from Gregg
• Continue honing our Strategic Plan and Roadmap for success.
The Hansons - Mike, Matt, my son Sam, and Gregg Hanson in North Dakota 2014
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