Company Profile
Awards and Press
The Network News: Tri State Manufacturers' Association Newletter
Company of the Month: Falcon Industries, Inc.
Falcon Industries, Inc. is a manufacturer of conveyor and mixing screws and various metal-formed flighting products – all of which are components used in products that “move material” as part of an operating process. Located in the small community of Cosmos, MN, Falcon Industries is one of just a handful (perhaps five?) companies in the entire country that specialize in this product line.
Falcon Industries was originally founded by two partners with experience in the metal-forming industry in a location just down the road from Cosmos, in Hector, MN, in 1982. The company’s current CEO, Don Fitzgerald, purchased 50% equity interest in the company in 1983 and has remained active ever since. Influenced by frustrating experiences in the industry as a manufacturer’s representative, Fitzgerald played a significant role in establishing a corporate culture that focused on the needs of the customer, one of Falcon’s greatest strengths nearly 30 years later.
In 1984, Falcon Industries opened a second manufacturing facility in Ohio due to logistic concerns about shipping products east. The Minnesota and Ohio facilities are equipped with similar manufacturing capabilities. The Ohio facility, a 33,000 square foot plant built new in 2008, serves as corporate headquarters with 30 of the company’s 56 employees located there. Rhonda Gass, a 21-year veteran of the company, is general manager of the Minnesota operation, a 26,000 square foot plant built new in 1997.
The multitude of products manufactured at Falcon, all of which are made-to-order, can be categorized into three main product lines: helicoid flighting, sectional flighting, and complete screws which have flighting as a component (see photo). Helicoid flighting consists of a continuous piece of formed metal as opposed to a sectional flight, which consists of individual turns that are then welded together. Recent growth in the demand for helicoid flighting has been in heavy gauge, large diameter products like snow blowers and shaftless conveyor systems. Falcon offers value-added services, such as hardfacing, to maintain its position as the leader in the complete screw market.
Metal flighting products are formed from bar or cut plate metals and are shaped using special fabrication equipment designed in-house. All components are made to customers’ design, including specific pitch as well as inside and outside diameters. The shop floor houses cutting, welding and assembly machines, polishing and finishing capabilities, and sectional presses and flight winders. Nearly all of the equipment used for production is built in-house to meet specific needs.
With a customer base of more than 600 manufacturers, specific uses for Falcon components are quite diverse. (A factor that has allowed the company to withstand the recent economic downturn with only a modest decline in business.) Specific applications include use by construction and agriculture equipment manufacturers in mixing and digging machinery, by the food processing industry for specialized equipment, and manufacturers of conveyor systems used in distribution. Falcon also supplies components for the mining and minerals industries, which require large aggregate washers, and components to move hay and other feeds for dairy farming equipment. Wastewater treatment plants use Falcon conveyor screws to move sludge through the dewatering process. Falcon products are also used in malting equipment, snow blowers, and corn stoves.
In recent years, Falcon has supplied several unique products. One is a turbulence enhancer, which is used primarily in the pulp and paper industry to increase the efficiency in heat exchangers. A second is a key component for a solar-powered pond clarifier. A third unique product, being marketing to the trucking industry, is a key component for a system newly approved for cleaning diesel emissions and reducing greenhouse gasses.
Run sizes at Falcon range from one or two pieces up to dozens of a particular component. Product size ranges from pen-sized components up to a 148” diameter sectional flight to the 60” screw used in road paving machines. Approximately ten percent of direct sales were shipped internationally last year (Canada, Ireland and Mexico); the bulk of their customer base is spread throughout the United States.
As with most manufacturing operations, employees were hard to find prior to the economic downturn. Employee turnover tends to be quite low, however, with a number of employees celebrating 10, 15, and 20+ years with the company. Falcon Industries became and ESOP in October of 2000 when Fitzgerald sold 30% of the company’s stock to the company. An additional 10% of shares were purchased in 2005, so the ESOP now owns 40% interest in the company. In addition to the benefits of operating as an ESOP, a quarterly incentive plan contributes to employee morale. Quality, productivity, and on-time delivery goals are established for both of Falcon’s locations. When these goals are met, employees realize significant financial gain; incentive pay in 2008 averaged approximately $3.50/hour last year.
Take note the next time you see a concrete paver, snow blower, or corn stove in operation. Chances are, Falcon Industries manufactured the component that keeps the material(s) moving! For more information about the company, go to www.falconindustries.com.
By, Sandy Kashmark
