MN Technology rebounds, plans for growth, legislation

BYLINE: Katharine Grayson

When Wayne Pletcher became CEO of Minnesota Technology Inc. three years ago, the challenge he faced was not how to grow the organization, but how to keep it afloat.

The Legislature had just cut three-quarters of the economic development nonprofit's budget. Sharp staff cuts followed, and its board of directors shrunk from more than 20 members to four.

Minnesota Technology's biggest challenge became proving to clients that its once free services were worth paying for.

"You really have to be good enough to charge money for your products," said Pletcher, a former 3M Co. executive. "You have to be credible. You have to be an expert. I had to be involved in a very close way with our customer base."

Pletcher said Minnesota Technology rebounded mostly through building those strong customer relationships. These days, Pletcher has more than the company's survival on his mind. He's hoping to double the organization's $3.4 million revenue in the next three years. In 2004, the company's revenue stood at $6.4 million, while it was still receiving some funding from the state.

In the past six months, the company, which focuses on providing consulting services to small- and mid-sized manufacturing firms, completed the first phase of its development plan: stabilization. It's now planning on growing by expanding its service offerings and its client base.

The Minneapolis-based firm focuses on helping companies streamline their operations and gain efficiency. Minnesota Technology is planning to offer consulting services that focus on helping clients grow their businesses, Pletcher said. And although it no longer needs state funding to survive, the company also is beginning to work with the state on new legislation that will fund some programs geared toward helping small manufacturers.

Meanwhile, the company will continue its other existing operations, which include publishing a monthly magazine and event planning (the company is a co-sponsor of the annual Tekne awards).

Minnesota Technology's plans may be ambitious, but the company already has proven it can weather a storm, said Lorin Krueger, CEO of Mankato-based Winland Electronics Inc., whose electronics manufacturing company has worked with Minnesota Technology since the 1980s.

Krueger said when Minnesota Technology went private, he feared it would lose its long-term relationship-building strategy of working with clients, and become like "any other consultant." That, however, didn't happen.

"I believe they're more holistic. They take the time to stay with the company," said Krueger, who also is a member of Minnesota Technology's board.

He added that Pletcher's first-things-first approach has put the company in a good position.

"Now, the challenge is growing," he said.