8.0 EDSR 01-12-2009 - Laserfiche WebLink

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Growing UP in a down economy Page 2 of 3 a global recession tend to be innovative and offer customized, high-tech and engineering services in niche industries. "These people are either investing, buying or growing in some way," said Bob Kill, CEO of Enterprise Minnesota, the quasi-government business assistance group that helps small manufacturers pare waste and raise productivity. "Nimble small companies can take advantage of [this economy] if they have invested previously in their own plants and equipment," Kill said. He said small Minnesota manufacturers that are avoiding layoffs and beating the economic doldrums include the medical device firm Avicenna Technology in Montevideo and Jordan Transformers in Jordan, which does refurbishing work. Metal Craft in Elk River recently added workers and celebrated a new plant opening, Kill said. And tunneling contractor Akkerman Inc. in Brownsdale added skilled employees, as did display-case maker Felling Products in Waite Park. Cliff Waldman, an economist with the Manufacturers Alliance/MAPI, noted that today's trendsetters often are firms that previously updated their plant equipment, streamlined production processes or worked to enhance efficiencies, delivery time and ultimately, profits. Getting outsourced work Ideal Aerosmith has enjoyed growth in both its commercial and military product lines, Schultz said. "One reason is because of defense and some new markets we are getting into. The other reason is that larger commercial companies are outsourcing what they don't want to do anymore," she explained. Ideal caught business from Honeywell, Lockheed Martin, Alliant Techsystems and other high tech and defense firms. With the war expected to drag on in Afghanistan, if not in Iraq, defense firms are buying parts and expanding their civilian commercial divisions. Douglas Machines, which makes giant robotic packaging machines in Alexandria, Minn., for Pepsi, Frito Lay and others, just hired 30 workers and plans to add a few new engineers this month to its staff of 540. Annual sales jumped 5 percent and earnings rose 10 percent this year, said Vern Anderson, who expects similar earnings next year. Last year, Douglas Machine improved its factory floor plan, expanded its Alexandria plant and consolidated operations, closing its plant in Deerwood, Minn. It also beefed up its research and development and expanded into a new business -- building automated DNA testing machines for seed companies. "We don't sit back," said Anderson. "We give it our all." Utility vehicles selling http://www.startribune.com/templates/Print_This_Story?sid=36757159 1/9/2009