Challenges-2 Resilience & Growth
In my last post, we discussed the challenges in the market and the ongoing frustrations we face in manufacturing. As an optimist, I strive to see the world positively and learn from every experience, whether good or bad. With that said, 2024 was an exceptional year for our company and me personally. Despite the obstacles, we not only survived but also accomplished a great deal and overcame significant challenges.
The summary of 2024, thanks Instagram.
For a few years, it felt like we had lost our way. The transition to our new future brought stress and unforeseen variables. We needed time to figure things out and determine our true direction. From breaking ground on our new facility on June 29, 2021, to December 31, 2023, we were overwhelmed by a red-hot market and didn't have the time to slow down and think. However, 2024 provided us with that much-needed time. We re-evaluated our operations, partnerships, and company structure, focusing on our mission for the future.
In 2019, we decided to take a different path. As one of our long-time team members put it at the time, "When is it our turn?" This question drove us to make significant changes. None of these changes were easy; they were exceptionally hard. We haven't taken a vacation since 2019, demonstrating our family's commitment to BSC's success. If we had known what we would endure over the next five years, we might not have embarked on this journey. But we persevered and emerged stronger.
We said good bye to “540” Mahnomen or our original site in 2024. The team members who started at this site + Grasdalens
In 2019, our company was small, primarily selling steel. We did little more than cut basic shapes on a plasma table or bend a few parts. Ninety percent of our revenue came from steel trade, as it had for 35 years. We operated with walk-up retail sales and regional wholesale trade of metals, with a staff of fewer than ten. We needed to grow and change the company, or there wouldn't be a company left. The market and our approach were becoming less viable each year.
So, we made the largest investment in our company's history and entered the value-added manufacturing business in 2020. We added our first laser and faced our first challenge immediately. The machine was commissioned and operational on March 14, 2020, just one day before the COVID-19 pandemic lockdown. Despite the timing, this challenge turned out to be a blessing. As the world came to a halt, the local economy boomed, especially in Minnesota, home to some of the largest recreational manufacturers. This industry went into overdrive, and we supplied it to meet unprecedented demand. Our newly installed laser was running two shifts within 60 days, driving sales from zero to 30% of revenue in the first year.
Fast forward a few years, and demand remained strong through the end of 2023. We constructed a new facility, added four more lasers, and several supporting work centers, increasing revenue 5-7 times year on year and adding 20 team members. We were running fast, perhaps too fast.
June 29th, 2021 BSC 2.0 Groundbreaking
Move in-day 2022
Literally, almost every waking moment with my computer.
In 2024, the pace slowed to levels not seen since the 2008-2009 recession. This slowdown forced us to re-evaluate and realign. It was the worst year of my life, but also the best, providing a much-needed reset. I spent more time at home and around Bemidji, which was beneficial. Some business travel plans were shelved due to cost control, and we focused on the business. With my laptop constantly at hand and frequent team meetings, it was the most work I've ever done. We reduced overhead expenses by over 12%. More importantly, we grew as people and got back on track to be the innovative, reliable, and productive BSC that supports its people.
1,600+ miles in four days visiting customers this summer.
Our new vision is to be one BSC, one company with one mission: delivering exceptional value and reliability to our customers, aiming for sustainable profits and lifelong opportunities for our team. We prioritize people over profits, but sustainable profits are necessary to give back to our team. Growth must benefit all shareholders, not just those with stock. The team needs to grow the company, the team will be rewarded for doing so.
I spent more time in my Truck than my house in 2024. GM thanks for the onboard Wi-Fi.
Through these challenges, we discovered who we are. The team has put in an exceptional amount of work to keep the company going and continues to do so. The future is clear, and without 2024, we wouldn't be the company we are today. We increased our manufacturing business to a record high percentage of revenue and continue to grow. If there's a better example of turning lemons into lemonade, I haven't seen it.
2025 is looking to be our best year yet. This optimism is not unfounded; it is the result of the hard work and strategic planning we've put in place. We've streamlined our operations and reduced overhead costs. Our team is more cohesive and motivated than ever, ready to tackle new challenges and seize opportunities. We have a clear vision and a solid foundation to build upon. The lessons learned and the resilience developed over the past year have positioned us for success. We are confident that 2025 will bring growth, innovation, and prosperity, not just for the company but for every member of our team. We may no longer focus on some things as we did in the past, but the transformation we've undergone has made us stronger and more adaptable. Looking back, there are no regrets—only pride in how far we've come and excitement for what lies ahead.
More of my favorite moments of 2024.
United Way of Bemidji 2024 Community Trap Shoot Night - Team BSC.
Recognized by Govenor Walz for the large contibution to manufacturing in NW Minnesota.
I gained an obsured amount of Starbucks Stars in 2024, it kept me moving. ( The BMW was an awesome rental!)
First time for both of us to DC.
World’s Largest Gift Box, a community gift, designed and made by BSC + Community partners.
