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"Expansion-minded Dempster Pumps up Production"
By Joelyn Hansen
Daily Sun staff writer
When Wallace Davis purchased Dempster Industries in August 2008, he could
see unlimited possibilities for the 131-year-old Beatrice company.
And though Dempster still has a long way to go, some of what Davis saw is
coming to light.
Davis, a University of Michigan graduate with more than 20 years of
manufacturing operations experience, had vision for Dempster when he
officially took over the company, he said.
He wanted Dempster to continue to manufacture windmills, submersible water
well pumps, fertilizer spreaders and other agricultural products as it
always had.
But, he also planned to infiltrate the wind turbine market.
Dempsters partnered with Windation Energy Systems in California and other
entities to begin the development of wind turbines, Davis said. This fall
they began developing the prototype and it is now undergoing the final
tweaks before production begins.
"We're striving for perfection," Davis said. "Everybody that has seen it
says it's nothing like they've ever seen in the marketplace."
Production is slated to begin this spring, he said. When the turbines are in
production, Davis hopes to add an additional 10 to 15 jobs to the company.
The wind energy market isn't the only change at Dempster, Davis said.
Dempster's research and development department is busier than ever as they
diversify product lines. This has been an important and vital piece to the
puzzle for the success at Dempster Industries.
"What is the vitality index? What are we going to do to surprise the
marketplace?" he said. One of the current developments is converting the old Dempster water pump to
an all-electric pump, he said. "The stone is hot now and you want to strike the stone when is hot," he said. Research is now being condected on generators, to determine whether it's
best to continue using an existing product or develop a new Dempster
generator. Dempster also plans to introduce a less expensive line of water pumps, Davis
said. The company will still produce its current line. This will broaden the
customer base by offering a product that is still high quality but less
expensive.
The opportunities to partner with new product lines has been endless, Davis
said. Dempster is currently working with a potential distributor to
manufacture tool bars. The company is also looking into solar water heaters.
So far the innovation at Dempster has proven successful and the company has
increased its profit margin, Davis said. The first quarter profit growth was
up 31 percent from the previous year's profits. Part of that is due to the marketing team's increased efforts to promote and sell the Dempster line.
The marketing team has been committed to introduce or reintroduce the
Dempster name, sending the message that Dempster produces quality products,
Davis said.
Dempster's approach is to focus on its Midwest clientele by reconnecting
them to the Dempster name, Davis said. Many people are familiar with the
name, he said, but many have forgotten about over the years.
As Dempster Industries is able to build its customer base, then it will
broaden its marketing umbrella into the national marketplace gradually. As
the company develops a strong hold nationally, then Davis says he'll think
more internationally.
Technology wise, Dempster's revamped Website has gotten a lot of hits as
customers inquire about product lines. Davis hopes the opening of the new Springfield, Mo., facility will also invigorate Dempster product lines. Over the last few months, Davis said Dempster has added jobs. "It's the greatest thing to have people that want to work for you," he said. "They do everything to make you successful."
Patrick Ethridge
Beatrice Daily Sun editor
PH: 402-223-5233 Ext. 228
Fax: 402-228-3571
200 N. Seventh St.
P.O. Box 847
Beatrice, NE 68310 |
Tuesday November 25, 2008
Business Spotlight: Dempster Industries Inc.
Springfield Business Journal
by Tanja Kern - Contributing Writer
Ohio entrepreneur Wallace Davis says he has always set out to carve his own path, and he's counting on the wind to get him there.
In July, Davis purchased Dempster Industries Inc. in Beatrice, Neb., for a cool $3 million. His goal: to bring the once-thriving, 130-year-old wind turbine company and its Springfield distribution center into the 21st century.
"What I saw was a company with a lot of good products and brands that were selling in a shrinking market," he says. "I saw an opportunity to revive that."
Davis, a University of Michigan graduate who has more than 20 years experience in the automotive, aerospace and hotel industries, heard about the opportunity to purchase Dempster Industries more than a year ago. At the time, he was working as plant manager for Cooper Industries, a Houston-based tool company with sales of $50 million annually.
The Dempster portfolio rested on Davis' credenza for nine months before he considered buying it from previous owner Donald Clark. A quick trip to Nebraska, and Springfield confirmed Davis' instincts about the company.
"It was an opportunity to take a company on the brink of going out of business and turn it around," he says.
Dempster Industries was founded as a windmill manufacturer in 1878 by Charles Dempster. During World War II, the plant produced more than 1.5 million 90-millimeter ammunition shells. Through the years, it developed hundreds of machines for the water and agricultural industries, and in 1994, it developed the AlleyCat Trailer used for sorting and hauling recyclable solid waste. Today, the Nebraska plant continues to manufacture windmills, water well pumps, fertilizer spreaders and recycling trailers and has annual sales around $4.5 million.
In the past few years, the company's revenues dwindled, and Davis says he'd like to see a turnaround. He's expanding the sales and marketing team, developing new products and improving customer service.
"When I started, the 240,000-square-foot manufacturing facility had a lot of automation and downtime with about 25 employees," Davis said. "They didn't have business to fill up the plant, and in their heyday they had 500 to 600 employees. I envision building that up again."
One approach is creating a renewable energy division, in partnership with Windation Energy Systems in Menlo Park, Calif., to produce wind turbines for residential, commercial and agricultural use. The turbines look like heating and cooling equipment seen on commercial rooftops. The 64-square-foot appliances are 10 feet high and produce 5 kilowatts of energy. Although they can't power an entire building, they can offset a significant portion of the energy needed. They cost between $40,000 and $50,000, and depending on the wind resource, the machine can produce a payback within five years, Davis said.
"The company had been very stagnant for the last 20 years," said John Weichel, vice president of manufacturing, who has been with Dempster Industries for 10 years. "Wallace has come in and assembled a team of salesmen and a marketing director, and we've been busy. Sixty days ago, I was looking for work for my guys and today I am putting them on overtime. We went from nothing to just swamped."
Dempster Industries has a 10,000-square-foot facility in Springfield that stores and distributes water pumps, agricultural machinery and recycling trailers. Davis plans to expand the scope of the Springfield location - led by Operations Manager Reggie Rice - to include sales and service of Dempster products, in addition to manufacturing.
His current challenge is acquiring the cash flow necessary to build the business, particularly in today's tight economic climate.
"You need a lot of cash to grow a business," Davis said. "Our projection over the next two years is to double sales. That is very aggressive, but we think it's also a very conservative number."
Davis lives in Centerville, Ohio, with his family and divides his time between the plant in Beatrice, Neb., and the Springfield distribution center. He and his family plan to move to Kansas City to facilitate travel between the two locations.
"I think with the industry experience the new management team brings, Dempster Industries has positioned themselves for sustainable growth," said Davis' banker, Michael Garner, assistant vice president of UMB Bank in Springfield. "Wallace is a great guy, and he brings a lot of energy to the business." |
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| Johanns touts economic plan during visit |
After touring Dempster Industries during a campaign stop Tuesday, U.S.
Senate candidate Mike Johanns said he sees potential for his economic plan
to help a business like Dempster.
“The economic plan I’ve put forward would work perfect on a business like
this, looking to diversify what they do,” he said.
Johanns, who resigned as the U.S. Agriculture Secretary to seek the U.S.
Senate seat being vacated by Republican Chuck Hagel, said two components of
his economic plan would be particularly useful to Dempster, which was
purchased this summer by Ohio businessman Wallace Davis.
“The plan would allow them to buy new equipment and expense it on their tax
return, a significant economic benefit that would help them grow and
expand,” he said.
Johanns said his plan would allow a company to expense $200,000 of an
$800,000 piece of equipment on its tax return. It also would provide for
training.
“If a company brings in new equipment, they need to train their employees
along with that,” he said.
Johanns said his plan would work in conjunction with local community
colleges to provide training to allow employees to update their skills.
“The end result is that we want jobs, good-paying jobs with benefits. We
want to build the economy in Gage County,” he said.
Johanns said another aspect of Dempster that he sees as important to
industry in general in Nebraska is its effort to produce a system to harness
wind energy.
“For this company to expand in that area, there’s great opportunity there,”
he said, adding that having a company on the cutting edge of alternative
energy technology is exactly what Nebraska needs.
Johanns said news that the Vise-Grip factory in DeWitt will close and some
of the 330 jobs there will go to China is unfortunate, especially
considering the things happening now that should make moving operations
overseas less appealing to businesses.
“I want to do everything I can to fight that, to keep those jobs here.”
With fuel costs rising, Johanns said it’s going to be harder for businesses
to send their manufacturing operations all over the world because shipping
is becoming too expensive. |
 |
Saturday Aug 16, 2008 |
| Winds of change |
Wallace Davis learned at a young age what it was like to live on a limited income, and he decided it wasn’t for him.
Three weeks ago, the Centerville, Ohio, man paid $3 million for Beatrice’s oldest manufacturing company, Dempster Industries Inc.
At 7, after Davis’s father died, his mother moved the family from Arkansas to Michigan to be closer to relatives and good jobs in the automotive industry, he said. But because of health issues, his mother couldn’t get the job of her dreams, and the family had to rely on government assistance.
“At a very young age, I decided I wasn’t going to allow people to tell me when I could have cash,” he said.
Davis earned a basketball scholarship to Oakland University in Rochester, Mich., and said he not only found his chance to better his life but developed new respect for his mother. He recalled moving off campus as a sophomore and realizing there are times when needs must be put before wants.
He called his mother to apologize for pressuring her to buy him things he wanted.
Davis graduated from Oakland with a Bachelor of Science degree in human resources, specializing in training and design. While he was in school, Davis completed an internship with Marriott International Inc. and was offered a position as a food service manager, he said. He was promoted every year for six years and was aiming for the company’s training program, but said the competition was so steep he rethought his long-term goals and left Marriott for the automotive industry.
Nearly 14 years later, he said, he earned a master’s degree in business administration from the University of Michigan.
“I always aspired to do my own thing,” he said.
Davis left the automotive industry to work for Cooper Industries, a Houston-based tool company, and oversaw operations of a plant in Ohio with a $50 million product line and 260 employees, he said.
Within six weeks, he said, he realized the plant was headed for disaster.
He said he met with corporate heads, then with employees, and told them if they were willing to work with him he’d try to keep the plant open.
Within two years, he said, the plant was able to manufacture its product more cheaply than it could outsource the work to China. Today, he said, Cooper Industries is in-sourcing more products than it is outsourcing.
Davis believes he can turn around Dempster, which once was a world-renowned windmill manufacturer with 500 employees. Today, the plant continues to manufacture windmills, water well pumps, fertilizer spreaders and other products — with about 30 employees.
“That’s what I think I can bring here,” he said. “Everybody wants Dempsters to win.”
Dempster will continue to make windmills and other agricultural products, Davis said, but the company will work hard to market its products better and make good products even better.
For example, he said, Dempster makes a great, reliable pump — and it will continue to do so — but it will introduce a new pump line that is still good quality but less expensive.
When Davis bought the plant in late July, he announced the development of a new energy division that will work with Windation Energy Systems of California to produce wind turbines.
Three wind turbine prototypes are being developed and should be ready for production in January, Davis said.
Eventually, he said, Dempster will broaden its reach into such renewable energy resources as solar.
Dempster employees are dedicated and the community is supportive, he said. Momentum is building.
“When you share a vision and when you walk down that same path, you can make it happen.
“We have plans. Will we hit every target? Probably not, that’s the way the world works. But we will endure.”
Davis lives in Centerville, Ohio, and plans to split his time between Dempster Industries and a distribution center in Springfield, Mo. |
|
Friday Aug 15, 2008 |
| The Ribbon Cutting Ceremony |
A historical moment in the Davis family took place on Friday August 15th. The Ribbon Cutting Ceremony celebrating the new ownership of Dempster Industries LLC as well as the 130th birthday of Dempster Industries. Wallace & Felicia Davis were both very excited to share this historic moment with the wonderful community of Beatrice, their employees, friends and family.
Prior to the Ribbon Cutting Ceremony, Dempster was presented with a plaque, honoring its 130 years of service by the Gage County Economic Development and the Beatrice Chamber of Commerce. During the presentation, Wallace Davis shared his vision for Dempster's New Energy Division which will truly enhance Dempster's product portfolio. Mr. Davis mentioned installing one of the Wind Energy Turbine prototypes on top of Dempster's own roof to power it's new front office in the near future. Wallace assured everyone that Dempster will continue to provide its customers superior products with reliable performance. There is already a waiting list for Dempster's new Wind Energy Turbines.
Team Dempster would like to thank everyone for coming out and showing their support on this special occasion. |
|
Tuesday, Jul 29, 2008
|
Dempster Industries sold. Dempster Industries is under new ownership. |
Gage County Economic Development Inc. announced the sale of Dempster Industries in Beatrice to new owner and chief executive officer Wallace Davis on Monday.
“My goal is to be one of the premier companies in Beatrice as we develop and market new product lines related to wind and renewable energy,” Davis said during a news conference.
Dempster Industries was founded in 1878 by C.B. Dempster, who developed the company into a world-renowned windmill manufacturer. Dempsters continues to manufacture windmills, submersible water well pumps, fertilizer spreaders and other agricultural products. Donald E. Clark was the prior owner to Davis.
Davis, a University of Michigan graduate with more than 20 years in manufacturing operations experience, said he hopes to increase the company’s marketability and product lines. In the past few years, the company’s revenues have been down, and Davis said he’d like to see that turn around.
“I’m excited to say that’s going to change starting today,” he said. “We want to position Dempsters again to be a pillar of Beatrice.”
Davis said he’ll begin implementing a growth strategy for the company, which now has 25 employees. One of his main focuses will be to try to better market the company and push its product lines.
“We all know that word of mouth is good,” he said. “But you also have to have those management and marketing strategies as well.
“We plan to get in front of everyone and let them know that Beatrice is still here.”
The marketing team, which will add 10 employees, is working on strategies to help sell and develop product lines sold by Dempsters, Davis said.
In addition to existing product lines, Davis announced the development of a new energy division for Dempsters. The company will produce wind turbines, working with Windation Energy Systems of California.
Along with Windation, Dempsters is working with other groups on wind energy product lines, he said.
Development of the wind turbine prototype should be completed by Aug. 15 and begin production in October, Davis said.
The company will start by manufacturing small turbines for residential use and then move on to commercial and farm turbines.
“Our goal is to slide into the door and then branch out,” he said.
Davis looks to renewable energy as the biggest growth potential for Dempsters, he said, starting with wind energy and moving into such other renewable energy systems as solar.
“With our capabilities and our rich manufacturing history, we can move very quickly in that direction,” Davis said.
The Dempsters plant is undergoing modification and enhancement to allow for growth, Davis said. The company also will update equipment.
Davis will split his time between the Beatrice facility and a distribution center in Springfield, Mo., he said. He and his wife, Felicia, and their two daughters live in Centerville, Ohio. Davis said his son will be a freshman at Michigan State.
Gage County Economic Development President Paul Garnett said Beatrice should be excited about the changes at Dempsters and look forward to progress the company will make.
“I think it’s a terrific opportunity because Wallace (Davis) is going to fuse new energy into the company,” he said.
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