Manufacturing Makes Minnesota Thrive IPS Worldwide’s path to Duluth had little to do with in-state loyalty, O’Connell says. The port city triumphed in the company’s nationwide search for a location because it could satisfy the company’s exceptional list of requirements. For one, rail-based cranes are self-propelled machines that required in-house access to live train tracks with access to major railroads. The Duluth-Superior market offered access to Burlington Northern, Santa Fe, and Union Pacific. For another, the building needed sufficient height to allow cranes to drive right in. The new facility had exactly that. “Height of building, height of doors, live track, good central location for all the rails to come into, were some of the key factors, and we landed in Duluth.” The railroad relies on IPS to update and rebuild its inventory of expensive cranes. O’Connell said IPS can refurbish a crane that costs $2,000,000 new for about half that price, reusing all the major steel components. The process can take between six and 12 months, depending on how much simultaneous work they accept at any given time. While rebuilding the cranes, they are also updating the technology. Many of the cranes that arrive for refurbishing use 1970s pre-digital technology, with old diesel engines. O’Connell said IPS “reuses the bones” of the incoming cranes, but then “we infuse it with innovation and technology. We put a monitor in it, so now you have a computer screen in there that’s keeping track of all your gauges instead of having gauges. It’s doing diagnostics, so we can sit in our office in Duluth, and we can get on a computer and see what a crane in the field is doing.” They also add built-on stairways that make it easier and safer to climb in and out of the crane cab. O’Connell says the company is eyeing more of these partnering opportunities with customers. For us at IPS, it’s very important to build a strong relationship with our customer. We focus very long and very hard on our relationships and we want our customer to look to us first for help.”
Manufacturing is key to Minnesota’s economy.
It employs over 317,000 Minnesotans and generates $20.1 billion in payroll. To support this sector, we: ● Offer financial incentives. Nearly 80 percent of Job Creation Fund recipients are manufacturers. ● Provide regional analysts with expertise on the state’s regional economies. They provide training and labor market intelligence. ● Promote “Made in Minnesota,” our manufacturers’ supply chain database. It enables companies to find — and be found by — in-state suppliers. Job Creation Fund. Regional analysts. Made in Minnesota database. Call it a Minnesota manufacturing “thrive-fecta.” EMPLOYMENT AND ECONOMIC DEVELOPMENT
Web: www.mn.gov/deed/business Phone: 651-259-7114 • 800-657-3858
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