BUSINESS CENTRAL
ISSUE: September October 2014
Next Gen
Drawing on their roots, Midwest Machinery’s second generation is putting people first while embracing
a contemporary growth strategy.
By Gail Ivers
Combines. Forage harvesters. Utility tractors. Sprayers.
Sounds like pretty boring stuff for the average person, right? Maybe not.
That combine has an mp3 player with BlueTooth and lumbar support in the seat, with a heated cushion.
The sprayer has a touch screen display in the cab that includes service diagnostics, mapping, and video.
Those tractors? They text the service department when they’re ready for an oil change.
Farming is one of the oldest industries in the world…and it’s on the sharpest edge of technology. No
wonder it’s attracting young people, like the owners of Midwest Machinery, who are anxious to try their
hands at running a complex business while staying close to their rural roots.
“I always knew I wanted to get in the business,” said Brian Weber, one of the company’s six secondgeneration owners. Weber’s father, Curt, was one of the original owners of Midwest Machinery. “Even
growing up I liked being involved – putting parts away, cleaning up the combines, all that kind of thing. I
knew it was special to be part of a family business and I wanted to get into it right out of college.”
Brain’s brother, Corey wasn’t so sure. The corporate world held more appeal to him. “After college I
went to work for Best Buy,” Corey said. “About two years into it I started talking to my brother, Brian,
who was at Midwest Machinery. It was a smaller business, family-owned, and it seemed like we would
have an opportunity to get in, make some changes, and really impact peoples’ lives.”
Andrew Swenson, the first of the second-generation owners to enter the business, was drawn in by his
father. Charlie Swenson and Curt Weber became partners in 1988 when they purchased Glenwood
Equipment, a John Deere Dealership in Glenwood, Minn. Between 1988 and 2001 the partners added
five additional dealerships, bringing in Gene Seipel as a third partner in 2001.
“I was working at a bank after college,” Andrew said. “Dad called about a business that was for sale in
Stewart, Minnesota. I didn’t know if I wanted to get into a John Deere business. He said he’d only get
into it if I’d participate. So I traveled down there and I liked it right away.” Andrew was able to borrow
enough money to buy into the business and immediately took over running the store. “That was prior
to John Deere’s consolidation efforts,” he said, “so a single store was still viable at the time.”
But not for long. Within two years John Deere was pushing small stores to consolidate into regional
dealerships. The Swenson/Weber/Seipel group was well positioned to take advantage of the changes.
They merged their Glencoe, Howard Lake, and Stewart stores into one group and purchased the
dealership in Sauk Rapids, forming Minnesota Ag Power, Inc.
“I’m lucky that I was in the generation that got to experience the customer interaction and then got to
transition to this larger corporate structure,” Andrew said. “I kind of feel bad for the next generation,
when we get there, that they may not get to experience some of that small business feel that I was able
to experience.”
After a year at CHS-Grain Marketing, Ben Swenson joined the family business, starting out in sales and
eventually taking over as general manager. “When I graduated from college I really wanted to work in a
large ag business,” Ben said. “Midwest Machinery was a lot smaller company then and I didn’t think
that’s what I wanted. But after I got involved and saw we could make this more than it is today, that we
could grow it and that there was opportunity for us, then it really appealed to me.”
Midwest Machinery is currently owned by six second-generation owners and three first-generation
owners. One member of the first generation continues to work part-time in sales, the other two sit on
the board of directors. All six of the second generation currently work full time in management
positions. The final leadership transition occurred in January 2013.
“The first-generation owners have been great with helping us determine key result areas, defining what
our culture should be, and understanding which operational items we need to focus on,” Ben said. “But
they set up a pretty autonomous organization and gave us lots of freedom to make our own decisions.”
“We’re unique as second-generation owners because we’re pretty young,” Corey Weber said, referring
to the fact that all six of the owner/managers are 35 or younger. “We’re pretty blessed because we
have great first-generation owners who allowed us to make decisions, have some failures and figure out
what’s the best way to do things. It gives you confidence.”
Ownership vs. Management
Being an owner does not guarantee a seat on the management team, according to Ben. “We’ve been
very deliberate in separating ownership of the business from management of the business,” he said. As
a team they looked at the skill sets of the second-generation owners and determined what role they
would play in the company.
“When we sat down to figure out who would do what, we tried to take the ownership out of the picture.
We agreed we needed to build a really, really strong management team for Midwest Machinery,” he
said. With 13 locations, additional plans for growth, and a leadership and ownership transition in the
works, it was not the time to fit the job to the person.
“We looked at the skill sets of our current owners. If they wanted to be in a position that fit their skill
set, great. If they wanted to be in a different position, we would try to develop them into that role, or
we’ll bring in someone from the outside who has the necessary skills,” Ben explained. “If your ownership
responsibilities are to attend board meetings and travel to some of the locations and be seen as the
owners, that’s great and we can do that. But when it comes to managing the business, we have to look
at it based on skills.”
That’s not to say there aren’t disagreements. “Sure we have had our challenges determining what the
roles and responsibilities are,” Ben said. “But I think we’re fortunate because all the owners,
representing three different families, all get along very well and are aligned in where we see the
business going.”
“Certainly as we continue to grow and expand problems could arise,” Brian Weber said. “But I have so
much confidence in our partners. We’ll be able to work through it and do what’s best for the business.”
Company growth is definitely on the charts, though the challenges may be different going forward. John
Deere has significant influence over mergers and acquisitions and discourages one dealership from
owning too many locations.
“Our growth opportunities are a little more limited if we want to grow in Minnesota,” Ben said. “We
may have to look at a different type of dealership if we want to continue to grow – which we do. But
first, we need to make sure that we are operationally and financially strong at our current size. That’s
the only way growing the business makes sense. ”
Culture
Culture is a word that comes up frequently when talking to the Midwest Machinery team. “When I
started in the business there was a certain culture that I could feel when I went into our store locations,”
Ben said. Ensuring that the culture stays consistent across all 13 locations, without losing the unique
nature of each store, is one of the company’s challenges.
“As long as the mission, vision and values are common across the company and everyone is living
those,” he said, “we seem to have a lot of alignment around what the things are that we’re going to
work on for operations, for customers, and for our employees.”
“We’ve been saying for 10 years that our culture is empowerment,” Andrew Swenson said. “That’s what
we’re all about is empowering people.”
But letting go is never easy. “Now that we have some scale as a company we’re able to attract talent we
couldn’t get in the past. We need to trust the HR people to make the right decision about employee
benefits for 300 people,” he explained. “That’s something in the past that I would really want to know
because that’s a huge deal. I need to get over that. Ten years from now it’ll be even scarier because
they’ll be making bigger decisions, but if we want to grow we have to empower those people and trust
them.”
If it’s hard for the new generation of owners to let go, it’s really tough on their fathers. “Probably one of
the biggest things we’re doing differently from the first-generation of owners is empowering our leaders
to make really big decisions,” Andrew said. “When we communicate to our board of directors who’s
making some of those decision they still struggle with that more than we do.” But it has to continue, he
added, if the company is going to grow.
That’s one of the few differences the young entrepreneurs could define as they talked about taking over
the company. “Really, we learned from and rely on the expertise taught to us by our fathers,” Ben
Swenson said. “The biggest difference between the first and second-generation of owners is that the
first generation had their fingers throughout the business. That worked when we were smaller.” The
second generation will focus on their areas of expertise, Ben said, but only because the business is larger
and growth demands a separation of duties.
Another minor difference is the use of technology. “We use more technology than our fathers did,” Ben
said, “but that’s only because we have more technology available to us.”
On the other hand, technology is now a player in the ag economy, according to Corey. “How well we, as
a dealership, can embrace technology and figure out how to provide solutions that are easy for our
customers to implement will impact how well we can grow the company.”
“When it comes to technology, our customers are getting more sophisticated and we need to make sure
we can keep up with that,” Ben agreed. “They look to us as advisors. How we help them manage their
technology and operational changes will be a big challenge for us over the next five to ten years.”
A People Business
Employees are another area of focus that all the partners agree is important. “The people side of the
business is what we’ve been taught by the first generation of ownership – that’s your most important
asset. Everyone knows that,” Ben said. “But it’s also about how do you develop a really good work
environment and a community everybody loves to work in.”
“We have great employees,” Brian Weber said. “The relationships I’ve built and developed over the last
several years have been incredible. We’re able to work with the individuals, get to know them, know
their families, and provide them with growth opportunities because we’re a bigger company now.
That’s really rewarding.”
“We’re really focused on trying to develop leaders,” Corey Weber said. “We’re building out leadership
teams and leadership at the direct store level. One of my biggest challenges is making sure employees
feel they’re getting the right amount of training, that they feel like they have the right path to grow with
the company.”
Communication is key. “That’s one of the areas we try to measure ourselves on,” Corey said. “How well
are we communicating the message company-wide and how well are we recognizing our top
performers. I think one of the greatest things we get to be part of is helping someone grow in a new
position and succeed. We can be proud of how they’re impacting the company, the community, and all
the employees who work with them and report to them.”
Gail Ivers is managing editor of Business Central Magazine and vice president of the St. Cloud Area
Chamber of Commerce.
Business Profile
Midwest Machinery Co.
1035 35th Ave NE
Sauk Rapids, MN 56379-9654
(320) 252-2010
Fax: (320) 252-1933
www.midwestmachineryco.com
Email: [email protected]
Leadership team: Ben and Andrew Swenson; Corey, Brian, and Adam Weber; and Paul Seipel.
Ownership: The leadership team, plus Charlie Swenson, Curt Weber and Gene Seipel.
Number of employees: 25 in Sauk Rapids; 300 company-wide
Locations: Aitkin, Alexandria, Baxter, Glencoe, Glenwood, Howard Lake, Little Falls, Paynesville,
Princeton, Sauk Centre, St. Cloud (Sauk Rapids), Stewart, and Wadena
Business Description: John Deere equipment dealer, sales and service
Mission: We provide progressive solutions by delivering the best products and aftermarket support
through employees who commit themselves to customers that demand the highest value.
Timeline
1988 – Charlie Swenson and Curt Weber buy Glenwood Equipment, Inc. in Glenwood
1993 – Glenwood Equipment purchases the John Deere dealership in Sauk Centre
1996 – Glenwood Equipment purchases the John Deere dealership in Alexandria
1999 – Glenwood Equipment purchases the John Deere dealership in Paynesville
2001 – Swenson and Weber purchase two dealerships in Glencoe and Cokato (now Howard Lake) and
form Glencoe Equipment, Inc. Gene Seipel becomes a partner and manages the two new locations.
2003 – Swenson contacts his son, Andrew, and invites him to become a partner in a dealership in
Stewart. The two Swensons, Weber and Seipel purchase the dealership and form Stewart Equipment
Inc.
2005 – Glencoe Equipment and Stewart Equipment merge and purchase the dealership in Sauk Rapids,
forming Minnesota Ag Power, Inc. Ben Swenson joins the company in sales. Andrew Swenson moves to
Sauk Rapids to run the newly acquired store.
2007 – Brian Weber joins the company in sales at the Sauk Rapids store.
2008 – Glenwood Equipment and Minnesota Ag Power, each with four locations, merge to create the
eight-location company Midwest Machinery. The company rebrands all of their sites as Midwest
Machinery. Corey Weber joins the business in sales
2009 – Midwest Machinery purchases the dealership in Princeton; Brian Weber becomes location
manager of the Princeton store; Paul Seipel joins the company as sales lead in the Alexandria office.
2012: Adam Weber joins the business at the Sauk Rapids location doing lawn and garden sales.
2013 – Midwest Machinery purchases the dealerships in Little Falls, Wadena, Baxter, and Aitkin, bringing
their total number of locations to 13. Adam Weber becomes manager of the Little Falls store.
2014:Midwest Machinery receives the 2014 Business Central Mark of Excellence – Emerging
Entrepreneurs award
Personal Profiles
Andrew Swenson, 35
Sales Manager/Used Equipment Manager
Hometown: Tyler, MN
Education: B.A. Ag-Business from Southwest Minnesota State University - 2001
Work History: Worked at Minnwest Bank in Montevideo and Slayton as an ag loan officer after college.
Started in the John Deere business in 2003 when I moved to Hutchinson and operated the Stewart
location. In 2005, I moved to Sauk Rapids to run the newly acquired store, and have changed positions
through our growth, but have remained in the St. Cloud location.
Family: Married for four years to my wife, Erin. We have 3 children: Jade and Jackson – 2 year old
twins, and Lauren –5 months.
Hobbies: The mountains (snowmobiling and bow hunting), spending time with family and friends.
Best business advice you’ve received: “There is no such thing as luck…you make your own.” – My dad
Charlie Swenson.
Ben Swenson, 33
General Manager
Hometown: Tyler, MN
Education: BS Applied Economics – University of Minnesota Twin Cities
Work History: CHS – Grain Marketing (2003-2004), Midwest Machinery Co. – Sales, Sales Manager,
General Manager (2005-present)
Family: None
Hobbies: Hunting, snowmobiling, golfing
Best business advice you’ve received: “Focus your business on supporting the customer after the sale
and surround yourself with great people.” – My dad
Corey Weber, 31
Sales Manager
Hometown: Glenwood
Education: Bachelor of Arts from Saint John’s University
Work History: Worked at the Best Buy corporate headquarters as a buyer analyst for two years right out
of college. Left Best Buy for Midwest Machinery 6.5 years ago.
Family: Wife Christy, daughter Cami (2 ½), son Cooper (7 months)
Hobbies: Travel, golf, spending time with family and friends
Best business advice you’ve received: My dad. He said employees are the most important part of
business. I specifically remember him saying that people won’t follow and trust you as a leader until
they fully know that you care and respect them as a person. He said if you continually focus on putting
the right people in the right position to succeed, then everything else will take care of itself.
Paul Seipel, 30
Marketing Manager
Hometown: Tracy, MN
Education: South Dakota State University, B.A. Business Economics, B.A. Ag Business
Work History: Army National Guard (6 years) Deployment to Iraq- OIF3/4;
Glencoe/Cokato Implement – Sales intern; Schuneman Implement – Parts; Midwest Machinery Co. -sales lead in Alexandria
Family: Wife Alissa- expecting our first baby in November
Hobbies: Outdoors - camping, fishing, 4-wheeling, anything outside…
Best business advice you’ve received: If you put the time in, you will see results. If you don’t put any
effort into anything, don’t expect to gain anything. – My dad, Gene Seipel
Brian Weber, 28
Regional Sales Manager
Hometown: Glenwood, MN
Education: St. John’s University – BA in Business Management
Work History: Midwest Machinery for seven years – Started out as a salesman at our St. Cloud location
for a year, then was a location manager at our newly acquired Princeton location for three years, and in
my current role for the last three years
Family: Engaged to Kirsten; I also have a seven-year-old son named Carson
Hobbies: Traveling, sports, summers at the cabin
Best business advice you’ve received: “Employees are the greatest asset of a business. We have a great
responsibility to find the best people and provide a work environment that they can flourish in.” – My
dad
Adam Weber, 24
Location Manager, Little Falls
Hometown: Glenwood
Education: St. John’s University, B.A. in Biology and Theology
Work History: Started at Midwest Machinery – Sauk Rapids in Lawn and Garden Sales. Moved to
location manager position in Little Falls in the fall of 2013.
Family: Mother, Angie. Father, Curt. Older brothers, Brian and Corey.
Hobbies: Spending time with family and friends. Anything on the lake. Reading. Cooking.
Best business advice you’ve received: “Always see the best in people and always give people the
benefit of the doubt” – My dad
SIDEBAR
Midwest Machinery Honored
The St. Cloud Area Chamber of Commerce, in cooperation with Gilleland Chevrolet Cadillac, introduced a
new award this year. The Business Central Mark of Excellence-Emerging Entrepreneur Award honors a
company whose ownership/leadership has been in place for less than 10 years, has shown a profit for at
least the last three years, and has demonstrated growth since the current leadership assumed control.
The inaugural recipient, Midwest Machinery Co., is managed by six second-generation owners, all under
the age of 40.
Midwest Machinery has its roots in a John Deere dealership in Glenwood, Minn., purchased by Curt
Weber and Charlie Swenson in the mid-1980s. In 2003 Andrew Swenson bought into the business,
followed by Ben Swenson in 2005, and additional second-generation family members in 2006. In 2008,
the partners merged their eight John Deere locations into one company known as Midwest Machinery.
The transition from first-generation leadership to second generation was fully realized in January 2013
when Ben Swenson was named general manager. Up to that point each store had run somewhat
independently. “We realized we needed a team to look at the company as a whole, not just at
individual stores,” Swenson said. This became particularly apparent as the company added four new
stores in 2013, bringing the total to 13.
As a team, the six members of the second generation have discussed their skill sets, and the difference
between ownership and leadership. “We agree that we need to build a strong management team for
Midwest Machinery,” Swenson said “Creating a separation between owning the business and managing
the business is something we’ve really tried to manage correctly.”