In an industry increasingly dominated by larger companies, Midland Equipment-a manufacturer of custom-built dump bodies based in Lakeville, Minn.-is a David among Goliaths. But it survives nonetheless by providing top-notch customer service and quality workmanship, says President Bill Fink. From its 24,000-square-foot manufacturing facility in southeastern Minnesota, south of Minneapolis, Midland builds about 100 dump-truck bodies a year. They’re made out of Hardox steel, which possesses a tensile strength of 180,000 to 215,000 psi, compared to 35,000 to 50,000 psi for normal steel, Fink explains. Since 1998, Midland has also been a distributor for Bibeau, a well-known Canadian manufacturer of high-tensile steel dump bodies. Midland sells about 75 Bibeau dump bodies annually, Fink says. “Another company went out of business, so we took their place as a Bibeau distributor,” Fink notes. “Bibeau dump bodies are very popular around here. It gives our customers another product line to choose from, and allows us to be more of a full-service dump body company.” Dealerships and contractors bring their truck chassis to Midland’s facility, where employees install the hoists and hydraulic systems, followed by the dump body itself. About two-thirds of the company’s annual production output occurs during the first six months of each year, Fink observes.
COMPANY HISTORY
Bill Fink’s father, the late Bernard Fink, established Midland Equipment in 1976 in St. Louis Park, Minn. By 1981, business increased enough to warrant a move to a bigger facility in Eden Prairie, Minn. In 2000, the company again needed more room and moved to its current location, Fink says. “My father was always involved in the construction industry, and he saw a business niche for dump bodies,” Fink recalls. “There are a large number of dump trucks in this state.”
MISSION/PHILOSOPHY
Midland prides itself on providing excellent quality of workmanship and customer service. “We’re very customer oriented,” Fink says. “We provide whatever the customer wants. We hardly ever build two dump bodies exactly the same.” Because dump bodies take a beating, durability and workmanship are key factors driving contractors’ purchases. Dealerships and contractors don’t want to do business with a manufacturer if customers keep coming back with problems, Fink notes. “If a customer has to go back three or four times to get a problem resolved, he’s losing money because the truck isn’t operating,” Fink explains. “That earns you a bad reputation, and the word gets around fast.”
OUR CUSTOMERS
Midland’s main customers are truck dealerships that sell vehicles to contractors. The dealerships, in turn, need someone to build and install the dump bodies, so maintaining strong relationships with dealerships and offering a quality product are critical, Fink says. Along with the dealerships, individual contractors will sometimes buy a truck and then contact Midland about building and installing a dump body.
BELLWETHER PRODUCT
Midland is best known for making what’s known as heatcapable dump bodies. The advantage of a heated box is that payloads such as asphalt and other products don’t stick to it, Fink explains. The bodies are heated with engine exhaust. A stainlesssteel diverter circulates the exhaust inside the walls of the dump body before it exits out the back of the box. The exhaust heats the dump body to a temperature that ranges from 130 to 200 degrees. “The exhaust has to go somewhere, so you might as well make use of it,” Fink says.
BIGGEST CHALLENGE
Industry consolidation is a worrisome trend for Midland, Fink observes. “It seems like everyone’s being bought out by someone bigger,” he says. “We’re already in a very competitive market, and as bigger players consolidate, they’re becoming more and more aggressive with pricing. We always have to keep our pencils sharpened.” Because it’s difficult to compete with larger companies on pricing, Midland differentiates itself by pointing out that its dump bodies aren’t mass-produced, utilize high-tensile strength steel, and that the company stands behind its products, Fink stresses. “The whole things boils down to this: Who is going to take care of the customer at the end?” he notes. “(Customers) want the guy who built the box to fix whatever the problem is. “I think small equipment houses are a necessity,” he adds. “Customers will always want that personal touch ... someone they can talk to.”
SKILLED LABOR A PREMIUM
Attracting and retaining skilled laborers is a constant battle that Fink fights by offering higher wages, medical and dental insurance and paid vacation days, as well as a pleasant, family- oriented work environment. “We want people that can think for themselves and come up with solutions when problems pop up,” he says. “I’m lucky-I have the best group of employees right now that I’ve ever had.”
LOOK TO THE FUTURE
Fink sees continued consolidation as a fact of life in the dump body industry. The economic downturn is also a huge concern. “I started working here in 1995 after 25 years in the U.S. Navy, and I’ve never seen it this bad,” he says. “We have to go farther and farther a field to find new customers.” Midland relies on dump body repairs and upgrades to pick up some of the business slack. “A customer might buy a stripped-down version of a dump body initially, then put on a vibrator ... or a tarp ... or pusher axles ... or strobe lights (for traffic visibility and safety),” Fink notes. “Even if it’s a dump body made by someone else, we still want to sell accessories for it. “We also have fabrication capabilities, so we not only can build the body, but also can take care of it over the life of the box,” he says. “If someone needs a new tailgate, we can build it.”
