Already operating two ready-mix concrete plants, Wells Concrete Products is planning on building another facility next year.

Fifty-year-old Wells Concrete Products (WCP) is strong and growing. Based in Wells, Minn., a town of 2,500 people, WCP is not intimidated by the unstable economy. It operates two manufacturing plants in Minnesota and North Dakota and has seven ready-mix concrete plants surrounding both locations. To adapt to its continuous growth, the company recently purchased an 80-acre industrial property in Albany, Minn., to build another manufacturing facility that will break ground in spring 2008.

“People often ask me, ‘How come you’re planning an expansion in a down economy?’” President and CEO John Rivisto says. “It’s because we’re growing. It comes down to having the right vision and culture to survive this economic downturn, and it’s being in a proper position. On top of that, we have a great group of employees that look at challenges at every level and continue to overcome them.”

Rivisto adds that the company is in the right market.

“We’re a mid-sized company in a good geographical market,” he states. “The products we offer have good fundamental strengths. We have both structural and high-end architectural products, which is a growing market. Customers want more than a flat, gray panel building.

They want more architectural details in buildings and we excel at that,” he adds.

WCP has completed a variety of projects, including parking ramps, total concrete buildings, schools, bridges and retail centers. It maintains and improves quality through ongoing lean manufacturing efforts, Rivisto says. Started a year-and-a-half ago, he says, the company eliminates wastes in all aspects of manufacturing – motion, materials and design.

“We have dedicated employees looking at lean efforts and looking at new technologies in both facilities,” Rivisto says. “We’ve seen tremendous changes both in the quality of work environment and our own financial performance. Efficiencies are very noticeable compared to two years ago. Now, when you walk in [our facilities], everything is clean and organized and everybody has an obvious purpose on what they’re doing.”

The company’s work environment has improved, he continues, due to improving its lean efforts.

Adapting to Trends
Because the market today is getting more refined, the company says it is working “harder and smarter” by expanding its product line to include structural concrete components and precast and pre-stressed concrete wall panels.

“The biggest trend is toward more architectural products,” Rivisto says. “It’s a very, very challenging product to make. A lot of craftsmanship goes into making these products. It is detailed and labor intensive, so we have to find the skilled labor to build these architecturally beautiful pieces.”
    
Working Together
A challenge that comes with growth is finding a skilled work force, Rivisto notes. “Being in a rural market, it is difficult to find as many skilled employees as we need,” he states, noting that its Albany plant will eventually staff more than 100 employees when it opens. “So, we chose an area that is culturally similar  to our area right now, but it also has a larger population base [because it’s near the] St. Cloud area.”

WCP also offers competitive wages and a benefits package. “Fewer young folks want to work in the farming or agricultural industry, and we provide them with an alternative,” Rivisto adds. “[Also], a large percent of our employees share our profits in our profits sharing program.”

The company’s work ethic has always set it apart from its competitors, Rivisto says. “I’m most proud of the quality of our work force from top to bottom,” he states. “They’re just wonderful people to work with and there’s a good atmosphere. All across the board, employees take a lot of pride at what they do and it shows.”

For a continued success, the key is to work together.

“Three to five years from now, we’ll have three very vibrant, high-quality, efficient plant in overlapping markets,” Rivisto says. “We will keep busy and still get our margins to be financially strong.”