Vector Tool & manufacturing Inc.

James Harwood and Brad Barger founded Vector Tool and Manufacturing, Inc. in October 1988. They had one silent partner who provided additional capital to the start up operation. The majority of machining equipment and tools was purchased from a major paint spray equipment manufacturer, who at the time was downsizing operations. Jim Harwood and Brad Barger negotiated the purchase of the machine shop equipment, the option to retain certain key shop personnel, and a contract to continue manufacturing this company’s machined components for a three-year period. This arrangement made it possible for the customer to better control costs. Vector agreed to hold the price on all machined products to historical standard costs for the duration of the agreement. The agreement also gave Vector Tool a guaranteed source of income as a base to build its business.

In December 1988, Vector incorporated as a sub-chapter S corporation under the laws of the State of Minnesota and by January 1, 1989, the new company was up, running and shipping parts.

Vector leased a building in Dayton, Minnesota that previously had been a machine shop. This was important because the building was set-up electrically to handle the power needed for the machining equipment. This allowed Vector to begin its operations quickly and grow from that point. For six years, Vector Tool continued to grow, update equipment and add several additional Wickman screw machines.

Tragedy

On January 10, 1996, tragedy stuck the young company. Just days after Brad and Jim bought out the original silent partner and become 50-50 stock owners, a fire started in one of the screw machines and eventually swept through the entire building. Most companies would not have been able to survive this devastating event, but not the people of Vector Tool. The following morning the Vector crew assembled at Vector’s headquarters to plan the strategy. It was decided that all personnel would be retained as many jobs needed to be done. Within three days, Vector had rented a small, temporary location, moved some equipment into Vector’s facility, and again, was shipping parts within three days. Although it was tight, Vector never shut down a customer’s assembly line or missed any deadlines. It was a true testament to the teamwork at Vector.

Growth

In the spring of 1996, Vector moved into a brand new building located in the City of Monticello. The building was owned by Blue Chip Development, LLP., and was completely occupied by Vector Tool. This location offered several advantages for the company. Monticello provided easy access to Interstate 94, within one mile. Vector’s major customer and suppliers made frequent deliveries to the Monticello area, so Vector would not incur additional shipping costs due to the move. Also, the surrounding area of Wright county and northwest Hennepin county was a growing region for manufacturing companies. These companies provided a wide range of support services that Vector Tool utilized in the production of its products. Furthermore, this new building was designed and built for Vector Tool’s specific use.

The company’s continued quality machined products is the key to its growth in the coming years. The fluid power industry offers remarkable growth opportunities for a screw machine house. At the end of 2000, the U.S. market for fluid power products was about $12 billion. As more and more organizations utilize the principles of fluid power, the global market demands more and more fluid power components. By teaming up with experienced OEM’s, Vector is beginning to gain name recognition and market share within the industry.

Acquisition

In order to diversify its customer base, Vector Tool acquired a smaller screw machine company in the summer of 2001. Vector believed these customers would help it grow into a company of approximately 40 employees and will smooth out the seasonality of its biggest customer. After a small detour in growth due to the recession, Vector is poised to move forward. In the first quarter of 2002, the newly acquired customers are forging ahead with orders and long-running contracts.

The Future

Today, Vector Tool and Manufacturing is still operating out of the Monticello facility as a custom manufacturing/job shop providing machined components to customer’s specifications. As Vector grows, its space requirements can be accommodated on the current site through simple additions to the building. Subsequently, this offers Vector’s customers a sense of its stability and long-term commitment to their needs.

People

The management team currently employed by Vector is all dedicated professionals. Each member brings an added dimension to the company through their own unique talents. The president and CEO, Jim Harwood leads the team and directs the company toward its overall organizational goals. The CFO, Brad Barger, forecasts and monitors the company’s financial position, ensuring that the company’s goals can be reached. The plant manager’s experience provides a strong quality control, manufacturing and machining base. The Quality manager insures that Vector manufacturers only quality products. The team is supported by the efforts of the production coordinator and office manager, who make sure that things are running smoothly.

Vector Tool & Manufacturing, Inc.

Humble beginnings