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