Published: August 21, 2008 04:40 pm            

Vermeer Corporation celebrates six decades of manufacturing

On November 22 of this year, Vermeer Corporation will officially mark 60 years in business. From humble beginnings - with one employee constructing wagon hoists in a one-room cement-block building - the company has grown to become recognized as a global leader in forage, tree care, wood-waste processing, composting, compact and underground installation equipment. Vermeer now employs more than 2000 people and sells products through a vast dealer network that extends to more than 60 countries.

Sixty years ago, Iowa farmer Gary Vermeer created a mechanical hoist to help expedite the process of unloading harvested crops from his grain wagons. Word of the invention quickly spread, spawning considerable interest among area farmers. Everybody wanted one. So the entrepreneurial-minded Vermeer enlisted the help of cousin Ralph Vermeer, constructed a modest cement block building to build more hoists, and the two men went to work.

Today, Vermeer Corporation consists of eight manufacturing plants spanning some 110 acres (44.52 hectares) that occupies more than 1.5 million square feet (139,400 square meters) of space located just outside of Pella, Iowa, on the same Iowa farmland near where Gary Vermeer designed his first wagon hoist. The company will officially commemorate its 60th anniversary on November 22 of this year, and is recognized as a global leader in forage, tree care, wood-waste processing, composting, compact and underground installation equipment. Currently, Vermeer employs over 2000 people and sells equipment in more than 60 countries.

Still a family-owned company, Vermeer has brought many innovations to the market including the stump cutter, tree spade, PTO-powered hammermill, large round baler, hydraulic twin rake, hydrostatic-driven trencher, and reclamation equipment. That pioneering spirit of innovation continues today as Vermeer introduces cutting-edge products and solutions that enhance the productivity of the agriculture and construction industries.

“Vermeer has always been driven by change and a relentless search for a better way to do things,” says Bob Vermeer, chairman and CO-CEO. “It is a process of continuous improvement - in every department, with every employee. To compete in the global marketplace, change is eminent. This is something my dad realized over 60 years ago and has been the foundation of our growth and success since he began offering the very first products.”

In the early 1950s, Vermeer invented the Model 12 Pow-R Ditcher, a PTO-driven trencher used in the installation of tile to drain moisture-laden fields. This innovation was responsible for converting thousands of acres of soggy ground into fertile farm land. Prior to the Pow-R Ditcher, trenches were dug by hand, a back-breaking, labor-intensive task that took hours and hours of manpower. In 1954, one of the first self-propelled trenchers was introduced; the 524T became a popular model at a list price of $4500. In 1955, Vermeer expanded internationally, forming a joint venture with Jan de Bas that created Vermeer Holland (Hoofddorp), the first European-based Vermeer distribution center for U.S.-made products.

In 1957, while testing a new stump cutter prototype, a Vermeer employee accidentally hit the wrong lever, causing the cutting wheel to move horizontally across the stump. The mistake led to the production of a top-of-the-line stump cutter design that is still used today. A couple of years later, in 1959, Art Van Weeldon, a former Vermeer territory salesman, established the first Vermeer dealership in Findlay, Ohio.

In 1965, Vermeer introduced the TM700 tree mover and by the end of that decade, dealerships opened in Iowa, Wisconsin, California, Kansas, Michigan, Florida, Georgia, New York, and Maryland. The company had quadrupled in size.

The 1970s was a time of more product innovation and growth. The first Vermeer large round baler was invented in 1972, a unit that forever changed how farmers baled their several summer cuttings of hay for livestock feed. The first baler, the Vermeer 706, was discontinued when a smaller 605 Series (producing 5’ wide x 6’ diameter bales) proved to be more practical for most operators. A couple of years later, Vermeer introduced the twin rake, an implement that also helped increase hay production. By the late 1970s, the environmental segment was experiencing tremendous growth resulting from sales of the BC1600, the first brush chipper developed by Vermeer. The 1980s were a period of further growth through joint ventures, acquisitions and partnerships. International sales began to boom and dealerships were opened in Argentina, Australia, and Portugal. By the end of the decade, the Vermeer manufacturing facility had expanded to six plants, and the company was employing more than 1000 people.

In 1991, Vermeer produced their first horizontal directional drill, which has been instrumental in helping with the telecom boom. By the turn of the millennium, company sales reached an all-time high with additional international locations opening in New Zealand, Brazil, France, Venezuela, Japan, Turkey, Thailand, Czech Republic, India and China.

Today, Vermeer’s global operations include regional offices in Goes, the Netherlands, and Singapore. The company has dealerships located in 54 countries and through a strategic alliance, operates a manufacturing company in Beijing, China.



The Lean Initiative

Over the past 10 years, Vermeer has been on a lean journey, which has resulted in dramatic improvements in production efficiency. The overall effect has reduced lead time, enhanced plant safety, improved quality and reliability, minimized inventory, and enhanced the overall profitability of the company.

“Lean is simply the relentless pursuit of waste,” says Mary Vermeer-Andringa, president and CO-CEO, “taking time, steps and delays out of any process. My dad always used this phrase when he talked about products, that ‘there’s got to be a better way.’ That is what lean is all about - looking for better ways in manufacturing, business, information technology, engineering, even the selling process. It’s not easy, in fact it’s hard work.”

According to Andringa, the results of operating lean have been astounding. “We conducted our first lean event in 1998 by involving a group of cross-functional people and assigned a set of objectives with the goal of simplifying a particular process in manufacturing by reducing waste and duplication. The best way to quantify the results is to document the improvements we made in our brush chipper production in recent years. In 2000, it took 52 days from raw steel to shipping to build a chipper. Now we do it in three days which is amazing. We’re also turning around special orders a lot quicker than we did 10 years ago.”

Aside from the positive affect on the company’s bottom line, the Vermeer dealer network has also benefited. “We’re making it easier for our dealers and customers to operate and maintain the machines we build,” Andringa says. “On several Vermeer models the design is similar which helps simplify parts inventory and maintenance.”



A family tradition

Founder Gary Vermeer officially retired from day-to-day operations in 1989. His son, Bob, assumed the position of CEO, with daughter Mary becoming president and COO. Today the two share CEO responsibilities. Mary’s son, Jason Andringa, joined the company as environmental market segment manager in 2004 and was recently appointed managing director of Vermeer International, B.V., a manufacturing and distribution facility in Goes, the Netherlands. Bob’s daughter, Allison VanWyngarden, joined the company in 2007 as a dealer distribution manager.

Being of the Vermeer family lineage doesn’t necessarily guarantee a position within the company. A board of directors consisting of several members from outside the family bloodline long ago established specific criteria for those who wish to join the operation.

“We started working with an outside firm in 1989 to devise strategies to build the next generation of leadership and establish a set of standards that guarantees their qualifications,” Bob Vermeer says. “We let all of our family know early on if they wanted to work for us, we had certain requirements. These include an MBA, a three- to five-year period where they worked somewhere else, and a promotion in that other job. While we are proud of Jason and Allison’s accomplishments and subsequent contributions, they had to earn their place.”

“The same is true of family members within our dealer network,” Vermeer says. “They, too, are required to go through an evaluation process to make sure we have the right people in place to continue the rich tradition of our company.”

“In addition to welcoming family members, we’re also very aware that we need to cultivate the many opportunities that exist in the company for all our employees,” Mary says. “We emphasize to everyone within the Vermeer ‘family’, related or not, that we welcome their contributions and want to provide them the opportunities to do the kinds of things that make their hearts sing.”



Giving back

Formed in 1958, the Vermeer Charitable Foundation serves to promote the quality of life for Vermeer employees and their communities through the gracious and unselfish act of giving. The goal of the foundation is to inspire Vermeer employees to use their skills and resources in providing assistance to people who are less fortunate or facing overwhelming burdens or challenges.

Vermeer routinely provides volunteers, and, in many cases, paid personnel and equipment to respond to various natural disaster situations such as tornadoes, ice storms and hurricanes. In the 50 years since the Foundation has existed, hundreds of Vermeer employees have contributed countless hours of their time and financial resources to help those in need. When an F5 tornado devastated the community of Greensburg, Kan., in 2007, Vermeer sent teams of volunteer employees and equipment to assist in the cleanup efforts. After Hurricane Katrina, three teams of volunteers traveled to stricken areas up and down the Gulf Coast, along with Vermeer equipment, to lend assistance.

Other forms of giving include Habitat for Humanity building projects, Walk for Diabetes, Relay for Life (in support of the American Cancer Society), prison ministry, and the Klompen Classic Walk/Run for Crossroads - an organization dedicated to enhancing the well-being and fullness of life of those in and around the community. Vermeer has also donated thousands of dollars in college scholarships to worthy students, children of Vermeer employees.

“We feel all of this gives people an opportunity to be stewards of what they have,” Mary says. “In many instances, we donate the use of equipment and other company resources but ultimately it is the dedication and responsiveness of our employees that make it work. And they usually find the ones they’re truly benefiting are themselves.”

“Our ‘Four P’ philosophy of people, principles, products and profit is our bedrock,” Bob says. “We believe in Biblical-based principles, but we do not force these principles on anyone. We find that the good nature and human spirit of caring comes out in our people. Over the years, it is extremely gratifying to know that we have been able to better the lives of our employees and good stewards of our environment with the equipment we manufacture.”

        

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