Cutting-edge farm products shining success

09-29-09

By Pat Waters - Omaha World-Herald Staff Writer

The revelation of what plastic could mean to farm augers came to Vance Lundell as he watched one of the machines remove hog waste on a farm that he and his brother own.

Farmers and ranchers use augers and related machines in a multitude of ways, but their steel "flighting" can corrode and wear out. (Flighting is the part of the auger that moves material from Point A to Point B.)

Lundell thought, "Why doesn't someone make it out of plastic?"

That observation resulted in the creation, some 25 years ago, of Lundell Plastics. The company today employs 11 people in Odebolt, Iowa, a town of about 1,150 people north of Denison.

The company recently opened a 13,500-square-foot, $250,000 addition that will provide needed production and storage space and room to grow. The original building has 24,000 square feet.

One consequence of last year's financial meltdown and the resulting recession is a renewed appreciation for businesses like Lundell Plastics that actually make things, rather than simply create and trade exotic financial instruments with mystifying names like derivatives, collateralized debt obligations and credit default swaps.

President Barack Obama earlier this month appointed a senior counselor for manufacturing policy, with the goal of revitalizing American manufacturing and reviewing U.S. competitiveness in the global economy.

The appointee, Ron Bloom, said a strong manufacturing sector is a foundation of American competitiveness and a critical part of the president's economic strategy.

Lundell said business the past couple of years has been excellent. Gross sales increased 10 percent from 2006 to 2007, and 28 percent from 2007 to 2008.

The company is privately owned and doesn't disclose revenue and profit figures.

He credits the strong agriculture economy, as well as the company's new products, for its solid financial performance.

Its plastic flighting is highly durable, said Brian Lundell, sales manager and Vance's nephew. It doesn't corrode and gently treats anything it moves, which is especially important for corn and soybeans, he said.

Rather than manually filling planting equipment, many large farm operators pull trailers of seed into fields and fill planters via auger or conveyor.

"Our product really shines in the seed-handling part of the business," Brian Lundell said. "Ninety-nine percent of the time our plastic flighting is in the auger because it doesn't damage the seed."

Although plastic flighting represents the cornerstone of Lundell Plastics, the company also makes a variety of products used in agriculture and commercial applications, including the food and biofuel industries, Lundell said.

Vance Lundell said the company will continue to innovate, which he believes is key to its growth. Another growth area is contract manufacturing, in which Lundell Plastics makes a product that another company has developed.

Besides its Odebolt plant, Lundell Plastics has a vast dealer network, Brian Lundell said. Outlets range from small-town welding shops to large John Deere dealerships across the United States. It also has a dealer in Australia and one in Africa, Lundell said.

Odebolt Mayor Ronald Rex said light manufacturing is important to host communities and to the country in general.

"The community and the entire county are proud of Lundell Plastics," said Rex, who also is a member of the Sac County Economic Development Board.

The company is an up-and-coming business with good growth prospects, he said.

Odebolt is thriving as well, Rex said, with five churches, three banks and two car dealerships, one of which his family has owned for three generations and 85 years.

He attributes Odebolt's prosperity to the area's agricultural foundation and to its longtime residents who take an active role in its activities.

"Volunteerism is important," he said, "and Vance is a strong supporter and volunteer."