Success in Wright County? Precisely.
PRECISION MACHINIST UMC FINDS HAPPY, PROFITABLE NEW HOME IN MONTICELLO
By Brian Busek
Visit the sleek factory and corporate headquarters of Ultra Machining Co. (UMC) in Monticello, a bustling community in northern Wright County, and it’s pretty clear that the high tech company found an ideal home when it moved in mid 2003.
Located just off Interstate 94, the light-filled, airy complex is inviting and convenient to the precision machinist’s medical instrument, aerospace and defense industry clients. The company’s pre-Monticello workforce seems pleased with the new location, and fast-growing Wright County offers a deep pool of industrious and qualified workers to meet additional workforce needs for the growing company.
Plus, UMC’s new 73,000 square foot home came with a nice bonus – a package of financial incentives that included tax-increment financing, a low-interest construction loan and a business development subsidy.
Revenues on the rise
The bottom line also seems to favor the move. During the company’s first full year in the facility, revenue increased from $10 million to $13.2 million and the company added 30 jobs, taking its workforce to about 120.
So, moving to Monticello, after more than 30 years in the former corporate home, was an obvious choice for UMC, right?
Well, not quite. In hindsight, company president Don Tomann and general manager Randy Hatcher – both part owners of the company – now recognize that Monticello is an ideal home for their business. But the choice wasn’t quite so clear when the moving process began. At first blush, Monticello didn’t particularly stand out and other candidates seemed to hold greater attractions.
However, Monticello held a decisive advantage that Mr. Tomann and Mr. Hatcher would come to see in the search process: City economic development officials simply knew that Monticello was right for UMC.
The Monticello team did its homework and worked industriously to match the strengths of their business and development environment to UMC’s needs, company officials say.
“They (the Monticello team) were the most competitive of the candidates,” Mr. Tomann says.
“They tried to understand our business and get to know us,” Mr. Hatcher says. “They were very enthusiastic.”
Started in a garage
Ultra Machining Co. was founded by Mr. Tomann’s father and mother in 1968. The original location was the Tomann family garage. In the early 1970s, the company moved to its longtime home in Corcoran, Minn.
By the 1990s, the privately owned company had established a solid client base for its precision metal machine work, and the workforce had grown beyond the 50-employees mark. With success, UMC had also outgrown its 33,000 square foot facility. The company needed more than double its existing space to maintain quality and allow for even more growth.
Mr. Tomann and Mr. Hatcher said their first thought in dealing with cramped quarters was to grow at their existing site. But the local community couldn’t provide sewer and water for a proposed expansion.
In the late 1990s, UMC began exploring other communities as potential new homes. Four suitors emerged. One soon made itself stand out.
Monticello officials, led by Ollie Koropchak, Economic Development Director and current Chair of the Wright County Economic Development Partnership, visited the UMC factory in an effort to better understand the company and its needs.
None of the other interested communities took that step.
“I can’t say enough about Ollie,” Mr. Tomann says. “They were the most competitive out of all four candidates. But they weren’t overly aggressive or a nuisance.”
Monticello produced another element that none of the other suitors managed: attractive financial incentives. The package included a $70,000 tax increment financing district, a low-interest $290,000 construction loan and an Economic Development Authority business subsidy of $20,000.
With the spotlight turned on Monticello, more positive elements of the community came into focus. After more than three decades at the same location, Mr. Tomann and Mr. Hatcher were concerned about uprooting employees. But, as it turns out, 60 percent of the workforce now actually has a shorter commute. Access to I-94 was another plus.
Now, with business booming and new positions filled successfully from the Wright County labor pool, UMC officials are pleased with their new home.
Mutual admiration
The feelings are mutual for officials in Monticello and Wright County. UMC is exactly the kind of company – high tech, clean, growth-oriented, and employing a skilled and well-compensated workforce – that’s making Wright County one of the fastest-growing counties in Minnesota.
Visually, the factory suggests “technology age” much more than “machine age.”
A stone entrance gate greets visitors. Polished concrete floors and ample natural light from a broad array of windows brighten the work floor. Skilled workers share space with state-of-art computerized machinery and robotic assistants. About 85 percent of the company’s work is for the medical instruments industry, with other clients including the aerospace and defense industries.
The attractive surroundings inside and out have a strategic purpose, Mr. Tomann and Mr. Hatcher say. The smart face attracts high-powered clients and the pleasant interior helps keep good workers happy and motivated.
Attractive wages also help with worker contentment and motivation. Wages at UMC rank in the top 25 percent among wages nationwide for manufacturing companies, according to Mr. Hatcher. Workers earn between $30,000 and $100,000 per year.
“People are our number one resource, and we treat them that way,” Mr. Hatcher says.
For more information about Wright County Economic Development visit www.wrightpartnership.org or call 763-477-3086.
