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Big equipment manufacturer gets big benefits from small town location

If you were blindfolded and set down on the Allmand Brothers factory floor, you’d find it hard to believe you weren’t deep in the crowded industrial sections of Omaha, KC or Denver. The thud-thud-bang of a metal punch mixes with the high-octave ring of a steel cutting laser, the pop of welding torches, and the rhythmic whoosh, whoosh of paint sprayers. All around you the space is uncluttered, the equipment modern, and the hard-hatted workers focused and diligent. Above, a conveyor moves dark steel frames in graceful arcs.

Yet as you step to the door, you’re greeted with the rich smell of fertile earth carried on the breeze, the chirp of birds and the restful view of a big open sky and a country road bordered by cornfields. What’s going on here?

Big Company, Small Town

Since 1938, Allmand Bros., Inc. has been an important part of Holdrege, Nebraska, a neat and orderly town of 5,600 in the south-central part of the state. Employing 140-160 skilled workers, Allmand Bros. turns out a well-respected line of products for the global heavy construction industry, including loader-backhoes, concrete breakers, light stands and towers, highway construction message boards and arrow boards, and portable heaters.

Allmand’s innovative designs have earned national awards throughout their history. The first to manufacture and market a portable light tower to brighten construction job-sites, Allmand Bros. is still a leader in construction lighting. Their SHO (Super High Output) lighting system increases job site light by up to 50 percent and one model recently won a Top 100 New Product Award from Construction Equipment magazine.

Started by brothers Walter and Les Allmand in Les’ garage, the company’s first successful invention was a portable electric farm welder, followed in 1951 by a permanent-magnet brushless generator sold to the U.S. Navy. Roger Allmand, Walter’s son, is CEO of the operation today and approaches his job with the same kind of expansive vision of his father and uncle.

The Challenge Of A Rural Location

Attracting skilled people to a small prairie town is a continual challenge.

“A young couple with children might choose to move to Holdrege because the schools and small town lifestyle are appealing, but we don’t have a large employee base to draw from,” Roger Allmand says. “If we can get people with welding skills or other light manufacturing experience, we will train them. Most important to us is to find people who work hard and who are honest.”

Private planes and a corporate pilot housed at Holdrege’s modern, general aviation airport ease travel for a global company headquartered in rural Nebraska. Photos of private jet planes hang on Allmand’s office walls and are interspersed among photos of family members on the book shelves. An avid pilot himself, Allmand smiles as he says, “Air travel makes it possible for us to do business out of Holdrege, Nebraska. Every plane is my favorite. I love them all.”

Shipping costs are also a challenge. Located near the geographical center of the country, Allmand says it’s cost-efficient to ship in any direction, but because their major markets are in the population centers on the coasts they are sometimes at a disadvantage to competitors who locate there.

Building A Quality Work Environment

One way Allmand Bros. deals with the workforce challenge is by working hard to create a work environment that encourages good workers to remain with the company.

Company managers and leaders believe that quality production follows when excellent people employ excellent processes. Says Allmand, “When a mistake happens once, we correct it. When it happens twice, we examine the process.”

Roger Allmand’s conversation is studded with phrases reflecting the importance of shared values to the company’s success. He believes that shared values build trusting relationships and that people who trust each other are more likely to share information. With “just-in-time” inventory and lean manufacturing methods, communicating between people and among areas of the factory is critical to improving quality.

Prominent among Allmand’s personal values is devotion to family, church and community.

“It seems nearly impossible for mothers and fathers to work night shifts and be effective parents,” says Allmand. “We need to work in shifts, and in order for families to be together in the evening, our first shift starts at 5:00 a.m. and ends at 1:00, and the second starts at 1:00 and ends at 7:00 p.m. Some employees choose the option of working three 12-and-a-half hour days. Occasionally, the work demands night shifts, and when it does, we ask employees to volunteer. We try hard as a company to help employees find satisfaction as spouses and parents as well as with the work.”

“We want our people to go home happy instead of feeling frustrated, kicking the dog and yelling at their spouse.”

A Small Town Way Of Life

Allmand believes that an individual’s quality of life is enhanced in a small town, where you have a chance to know your neighbors and be part of a community in a way that’s difficult if not impossible in urban centers. He’s proud that his company has served as an economic backbone in the region and helped allow people to remain in the area.

There are also certain practical benefits to a company: commercial property is relatively inexpensive, and the government has an interest in supporting rural enterprise.

“A state grant helped us make our painting process state of the art,” Allmand says. “Because of it, we can truly apply lean manufacturing principles. We have the capability of manufacturing, painting and shipping a product in one day whereas before our new paint processing system, products sometimes required two days to fully dry before they could be shipped to customers.”

Allmand concludes, “I really don’t know why we succeed at this business in a small town. Maybe we stay in Holdrege because we don’t know any better. We just try something, and it works, and we keep doing it.”

For a full interview with Roger Allmand, click here.

Who To Contact...

Allmand Bros., Inc.
Roger Allmand, CEO
1502 West 4th Ave.
Holdrege, NE 68949
(308) 995-4495
rallmand@allmand.com
www.allmand.com

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