FRIDLEY, Minnesota
Brief History
I always look forward to writing an article about a company that is both one of our industry’s leaders and a personal friend to many pallet people. I started working with the wooden pallet industry in the spring of 1977 and that first September attended my first pallet industry meeting, the last World Pallet Congress (forerunner to the Interpal series), in Blacksburg, Virginia. This was my first exposure to Viking Engineering and the first time that Viking demonstrated its Duo-Matic nailing system. Viking’s video drew a crowd of visitors to its exhibit stand throughout the World Pallet Congress. The idea of manufacturing more than two tractor trailer loads of pallets in an eight hour day with just two or three people turned a lot of heads. Viking was off and running from that day forward.
The company started in the spring of 1969 when Viking Pallet Corporation was founded in Minnesota. At that time most pallets were made using pneumatic tools, hand driven nails, or converted box nailers. The Viking Pallet team worked to find a better way to build pallets. Viking developed an automated pallet assembly system for its own use. The machine evolved during the early 1970s. The founding team included Marv Chell, Donald Colson, and Warren Williams; they built pallets during the day and slowly perfected their new nailing machine at nights and over weekends.
In its infancy, Viking Engineering had four competing nailing system manufacturers, but the Viking method of stitching was unique. The new company was asked to present a film on its early prototype nailing system to World Pallet Congress attendees in Switzerland in 1975. Viking sold its first two Duo-Matic systems from this initial film. The first was completed in August, 1975 for Mulberry Lumber in Arkansas, which took delivery of its second Viking Duo-Matic in February, 1976. Mulberry went from using eight or nine people to build around 750 pallets per shift to building 1000 pallets with three operators on its Viking system. Viking Pallet was able to run its own system with only two people because the weather in the North was not as taxing on people as the hotter southern pallet factories.
By the next World Pallet Congress in September, 1977, Viking had several systems running successfully. While the Viking Duo-Matic was still unknown to most of the industry at that time, the Viking line of nailing systems was starting its journey to become highly recognized and respected in the pallet industry.
In 1982, Don Colson bought out Viking Pallet as a separate pallet manufacturing company. Don was often recognized as being a major driving force behind the engineering that went into the early Viking nailing machines, so it was natural for him to make a smooth transition into pallet manufacturing. Viking Pallet, now owned by Tim Logan, has a reputation of being a leader in the pallet community. It continued to function as a testing location for some Viking Engineering projects since the two companies have a strong working relationship.
In the early 1980s Marv Chell, the majority shareholder, began a program of selling his ownership in Viking to the employees. During the following 15 years he helped the employees acquire 100% ownership and create a culture to manage, lead and perpetuate Viking into the future. It is the customer focused culture and the pride of ownership that has shaped Viking into the company it is today. So it is most likely that when you are talking with a Viking employee you are also talking to an owner of the company.
This October, Viking Engineering and Development Corporation will celebrate its 30th anniversary. Many readers manufacture a significant portion of their pallets today on Viking nailing systems, so a large number of readers will join our staff in wishing a happy anniversary to Viking.
When asked about the secret to Viking’s success, Marv Chell said, “You need to know your customers’ customers because they call the shots. A Harvard business School professor once said, ‘Sales tries to get the customer to want what the company has, while marketing tries to get the company to have what the customer wants.’ ” For a long time Viking Engineering has been know for its marketing and sales sophistication.
Marv continued, “At Viking service has been very important. Our field service has made our products standout when compared to the competition. Down time is very expensive. After our first few machines, we started supplying a spare parts kit to greatly reduce down time potential.”
The Viking staff has developed a strong ability to listen carefully to what customers say, a trait that was developed and encouraged by Marv. While Marv came from a manufacturing background, communication and human resources were strong traits in him. Marv said, “Ray McGlothin of Mulberry Lumber Co. said that he never learned anything while he was doing the talking.”
Viking People
It is often said that a company is its people. Few pallet machinery suppliers can claim this truism as theirs any more than Viking. Viking has more people visible at shows and to the public than most other suppliers who focus mainly on the pallet industry. I selected several people who are well known to me and asked them to share a few words about the company and its involvement in the industry.
Jim Gookin said, “I started working at Viking on December 21, 1979 and have had the opportunity to work in customer service and advertising. I have met or talked to hundreds of pallet people and suppliers over the last 25 years. I have found the vast majority of our industry to be good, honest, hard working people. They care about their families, businesses and faith. It has been a great experience watching the shift in pallet companies through mergers, acquisitions or successions to a son or daughter. People I taught how to build pallets on a Viking are now owners or managers of their companies. I also share the sadness of long time pallet companies that, for whatever reasons, went out of business.”
Jim continued, “Viking also has changed over the years. It still employs great individuals who are dedicated to serving our customers and our industry. Whether it’s parts and service, SuperStock Pallet nails or machinery sales, Viking has a bright future in the pallet industry.”
Bob Morrison, an old friend who used to handle advertising and public relations, shared with me, “One of the things I remember best about Viking is the tremendous sense of freedom provided each employee to ‘go ahead and do what they think should be done.’ This attitude not only resulted in each employee reaching a little further in pursuit of his or her goal, but also built a higher degree of pride in what was accomplished. Another indelible memory is the company’s constant emphasis on the highest quality in the product it built and in the way it projected itself to the outside world. No matter how long you have been away from Viking, you will always remember the company and its people warmly and with a smile.”
Bill Hanneman, former President & CEO of Viking Engineering, wrote, “I joined Viking Engineering on November 1, 1980. It was my first exposure to the wooden pallet industry. Little did I know what a great future was in store. Until my retirement in 1999, I had the opportunity to meet and work with some of the greatest people I could imagine. That includes the great employees of Viking and the super people of the wooden pallet industry. The pallet people are the cream of the crop. For me it was a fantastic, rewarding relationship. There is no doubt in my mind that Viking made a major contribution to the industry. The technology that Viking offered pallet makers opened doors for many to move to new levels of operating efficiency. To use an old cliché, ‘we have come a long way baby.’ The last thirty years have been a great thirty years for Viking Engineering to work with a great industry.”
Paul Masica added, “Including my 8 years at Viking Pallet, I’ve been with Viking for over 34 years. During this time I’ve had the pleasure of visiting hundreds of pallet companies throughout North America. I attended my first NWPCA convention back in 1977 and have attended countless industry trade shows and association meetings since. Whenever I talk about Viking and the pallet industry with friends or acquaintances, I always find myself talking about the people. I look forward to the privilege of seeing familiar faces and making new friends for many years to come.”
Sybil Bohnett is coming up on 25 years with Viking in sales and marketing. Sybil said, “I have stayed for 25 years. Viking is the greatest company to work for. The standards and ethics here have really been rewarding and inspiring. I enjoy coming to work each day. I work with the highest caliber of people, both inside and outside of our walls.”
Dean Bodem, CEO of Viking Engineering, put the company’s 30th anniversary in perspective. He stated, “As Viking celebrates its first 30 years and looks forward to the next 30, we’d like to take a moment to thank each of you, our customers, our business partners, and our friends. Without you, we wouldn’t be who we are today.”
Developing Product Line
Since its infancy with the Duo-Matic nailing system, Viking Engineering has continually worked on expanding its product and service offerings and improving its primary business of manufacturing pallet nailing systems. In 1980, the company completed its first international installations at Maderera Nacional in Monterrey, Mexico and Pacific Pallet in British Columbia, Canada. Since then, Viking Engineering has become recognized worldwide for its automated stringer nailing systems.
In addition to its nailing machinery, Viking Engineering has ventured into other pallet products and nailing applications and services to complement its core business. Some have been successful and are part of the Viking stable of products and services. Others did not satisfy company objectives or had a limited life and were dropped once it was clear that they were not working out as they had hoped. For eight years Viking had a marketing agreement with Corali, an Italian pallet machinery company to sell their products in the US market. Other marketing agreements included Matthew-Wylie, Olathe pallet grinders and Wood-Mizer horizontal band saws. Viking also manufactured Pallet Master vertical band resaws and participated in a joint venture (VF Automation) with Flomat NSW, an Australian company providing large-scale pallet recycling systems. Viking also purchased a pallet machinery and lumber handling company (CHEJ Johansson) with operations in Sweden.
The list of alternative products and services that have worked is more important. Viking started selling nails in 1984, a division that has grown to the point that the company is now a major nail supplier to the pallet industry. The Viking brand is Super Stock bulk nails. The company rebuilt its first nailing machine in 1985 which helped it become a more complete supplier for the industry. Since 1986, Viking manufactures and sells the Bulldog metal band-cutting machine. Since 1991, the company has marketed and sold thin-kerf band saw blades that fit popular band resaws.
Probably the most significant product addition since selling nails in 1984 was the addition on January 1, 2002, of the new company ADT, which designs and manufactures wall panel assembly systems for the construction industry. In addition Viking has built a number of special nailing machines. These are used today to assemble wooden roofs for playground equipment, specialty boxes and crates, platforms for shipping steel and large skids for the paper industry.
Viking takes service very seriously. Since 1984, Viking has had remote service technicians on the road. This has been a major selling point to support the approximately 1,500 Viking nailing systems in the field. When just about anybody who is familiar with the Viking line of machinery is asked about what stands out when they hear ‘Viking,’ the most common answer is probably ‘service.’ Companies that own Viking nailing systems depend heavily upon them to keep production running.
In 1983, Viking Financial Services, the company’s financing and leasing group, was formed to assist customers with their capital equipment purchases. Approximately 70% of the company’s equipment purchases are financed with help from VFS.
Viking Nailing Systems
Viking introduced its Uni-Matic nailing system in 1979 to help smaller manufacturers automate their nailing systems with a less expensive, slower speed system. The Uni-Matic offered the same stitch nailing and bulk nail savings found in the Duo-Matic, as well as optional lift tables, roll-in conveyors, and a pallet stacker.
During its 30 years, Viking has supplied over 1,500 nailing systems with over 20 styles and types. It has engineered specialized equipment to meet specific customer needs. It is safe to say that Viking nailing systems are producing more pallets worldwide than those of any other nailing machine manufacturer. Viking indicates that of the 356 Duo-Matics it has made, more than 300 are still in operation today. After the Duo and Uni-Matic, Viking has manufactured its Explorer, Champion, Sentinel and Turbo lines of machinery. In more recent years, the Viking Turbo 505 line replaced the Duo-Matics as its more modern, automated, high volume nailing line.
The first Viking Champion was shipped in 1987. Since that time the Champion has become a popular machine for lower volume nailing with bulk nails.
In January 2002, Viking bought the ADT wall panel manufacturing machinery line. The ADT wall panel nailing units build prefabricated wall units for the booming housing industry. As is often the case, ADT was a little slow getting out of the starting gate, but this division has become much more successful, and the company is looking forward to a positive future for its newest division.
The ADT 1000 wall panel assembly systems consists of five different pieces of machinery or work centers: a component station, a framing station, a squaring station and accumulation station, a routing bridge, and a sheathing bridge.
I am certain that many in our industry join Industrial Reporting’s staff in congratulating Viking Engineering and Development on its coming 30th anniversary this coming October. Few companies can lay claim to the pallet industry with as much assurance as Viking Engineering. It began as a pallet manufacturer, designed its first nailing system for its own plant, developed its product line in conjunction with the industry’s evolution, and looks forward to its next thirty years with the same enthusiasm it has shown during its first thirty. For more information about Viking’s line of machinery, products, and services, call 800/328-2403.
