A venerable supplier of steel products, Pacal LLC is ente-ring its second century of business with a clearly codified value approach to ensure long-term viability. Pacal's roots are in the metal industry. The company was founded in 1891 by Lewis Paper and Moses Calmenson as one of the first major scrap metal dealers in the United States.

This year marks the 114th anniversary of Pacal's incorporation. Erv Kamm, who became president and CEO in 1999, says Paper Calmenson fulfilled growing demand for steel across the country, helped along by being situated on a major seaport in Duluth, Minn.

Paper Calmenson quickly became one of the largest distributors of steel in the country, literally supplying every kind of steel product available. The trade name Pacal was adopted in the late 1970s.

Kamm says when he joined the company, he brought with him a clearly defined value proposition that he main-tains makes the company unique in the industry. “One of the things that I've always practiced in my business life is to try to build a Fortunate business,” he says. Kamm, who came to Pacal after serving as CEO of a major competitor, first learned about the value system he strives to uphold in the book The Power of Ethical Management by Norman Vincent Peale and Ken Blanchard.

The book contends there should be a list of companies called the “Fortunate 500” that are committed to a quality of work life for employees. The concept involves having a defined set of corporate values that drive the company. For Pacal, the values are ethical, dependable and accountable behavior. “That's what our company is built on,” Kamm says. “That's the fiber and fabric that drives the company.” The values stipulate ensuring open and honest communication with employees and maintaining an environment of mutual accountability and teamwork.

“It creates an environment where the employees can succeed,” Kamm says. “I don't think too many people in the industry understand the value of people. If you unleash the power of your people, you can survive recessions. We've just done it.” Pacal has nearly doubled its work force in the past six months, he adds.

Today, approximately 200 people are employed by Pacal at its facilities in St. Paul, Minn., and LaCrosse, Wis. The company is a turnkey manufacturer of fabricated steel products through its division Pacal Industries

Pacal has two operating divisions - Pacal Business Center and Pacal Industries. Pacal Industries in LaCrosse, Wis., has annual revenues in excess of $20 million. Half of that is supplying the construction and forestry OEM markets; 25 percent is business with departments of transportation in eight Midwestern states; and the remaining 25 percent supports 60 Midwest fabricators with steel products.

The industrial park in St. Paul, with more than 700,000 square feet of manufacturing and warehouse space, is host to 16 tenants that lease space under long-term contracts.

The Business Center also serves as the corporate headquarters for the company.

A Changing Company
In the late 1930s, Pacal developed its first product, a snow blade. The company marketed primarily in the Midwest, but eventually expanded and became one of the biggest snow blade suppliers in the country.

By the 1990s, the company manufactured blades and earth engaging products for all kinds of machinery.

In the 1940s, Pacal purchased 32.5 acres midway between St. Paul and Minneapolis, which became the home of the blade business and steel distribution for the company. In 2000, PACAL divested itself of the blade division and sold the division assets to ESCO Corp. In 1967, Pacal acquired Lacrosse Trailer in LaCrosse, which served to support its St. Paul operations with additional steel fabrication materials.

Future Growth
Pacal has benefited from its ability to react to market changes. In 2000, Pacal started making a host of ancillary steel products for the building of bridges, such as diaphragms, pedestrian walkways, bearings and railings. Pacal also received AISC certification for simple bridges, which opened up other opportunities to work for major steel bridge fabricators.

The company's next major change was supplying fully assembled booms, frames, mainframes and turrets to OEMs in the crane and logging industries. Pacal was already making major weldments for these companies, but recognized the need for additional services. The company then began offering welding, machining, painting, and hydraulics services as well, resulting in fully assembled major components for the OEM industry.

Pacal will continue its growth in subassemblies and will increase its presence as a supplier of DOT components over a wider geographic territory, Kamm predicts.

Kamm supports legislation before Congress to fund infrastructure growth in the future. “I think America's infrastructure is aging,” he says. “Congress has the foresight today to say that in an expanding population that we have, we have to make sure that our bridges are safe.”

Products and Capabilities
Pacal says it will continue its 100-year legacy of furnishing high-quality custom metal fabrication, machining, welding and assembly to the OEM market and industrial customers throughout the country. The company specializes in high-strength carbon steel, stainless and aluminum components and weldments. Welding, stress relieving, heat treating, machining, blasting and painting are a sampling of its operations.

Pacal's products include:

ʉۢOutriggers - A-frame, telescopic and out-and-down
ʉۢFrames - Boom trucks, rough terrain cranes
ʉۢBooms - Telehandlers, bridge inspection, logging and boom trucks
ʉۢDOT - Steel components, weldments and assemblies for steel/concrete highways, railroads
ʉۢand pedestrian bridges Pacal's capabilities include:
ʉۢA 120,000-square-foot facility
ʉۢEquipment with updated technology advancements
ʉۢAWS certified welders
ʉۢAISC certification
ʉۢNuclear/DOT-specific certification

The company says it will continue to demonstrate the willingness to co-invest in growth opportunities.

For example, Pacal has invested heavily to meet Terex growth demands, such as a 20,000-square-foot expansion in 2000 to support frame manufacture and an additional expansions in 2002 for boom/jib fabrication.