Author: leahb

Behind the record building years of Sioux Falls is a family business helping support the needs of the booming construction industry.

Egger Steel Co. began with just three employees almost 80 years ago as a fabricator of structural steel for local construction projects.

During the expansion of the interstate highway system in the 1950s, the company added fabrication of steel bridge girders. From its headquarters at 909 S. Seventh Ave., Egger Steel consistently has positioned itself and its services to meet the changing needs of businesses.

“Being in the construction industry, we directly benefit from the growth of existing Sioux Falls businesses and the attraction of new businesses to the area,” president Burke Blackman said. “Egger Steel has supplied materials to countless construction projects in Sioux Falls.”

Recent work has included the parking ramp and skywalk at the Sioux Falls Regional Airport, The Steel District downtown development and the new Sanford Orthopedic Hospital.

“The construction industry thrives in Sioux Falls because of companies like Egger Steel who continue to invest in their product and their people,” said Bob Mundt, president and CEO of the Sioux Falls Development Foundation. “We’re excited to see them continue to grow and evolve along with our community.”

Here’s a closer look at the business, courtesy of Blackman.

Business name: Egger Steel Co.

Year founded: Egger Steel was founded in Sioux Falls in 1946 by Albert Egger and George Scudder.

Total employees in the Sioux Falls area: During the first two generations of family ownership, the company grew its workforce to more than 150 employees and grew its market to cover South Dakota and the surrounding states. The third generation of ownership brought investments in technology and automation. The current workforce of 45 employees utilizes 3D modeling and computerized (CNC) equipment to produce the same volume of production with greater accuracy and efficiency.

CEO/lead executive in Sioux Falls: Burke Blackman, president.

How would you describe your organization to someone not familiar with it?

Using design drawings created by the construction project’s architect and engineer as a starting point, we create a 3D model of the structural steel frame that shows the finished dimensions, connection details and the interfaces of the structural steel with other materials. We then purchase the required raw materials from steel mills and other suppliers.

We provide our shop employees with the raw materials, shop drawings and electronic files that allow them to fabricate assemblies of beams and columns with their connection materials attached. Our goal is to complete as much of the fabrication as possible in our shop where it is more cost-effective than performing the same operations in the field. When the assemblies are complete, we ship them to the project job site along with erection drawings to show how the assemblies fit together.

What are the top three reasons you continue to locate in the Sioux Falls area?

First, the Sioux Falls workforce is exceptional. We have built our company through the efforts of dedicated employees with a strong work ethic and a commitment to quality. Second, Sioux Falls is a growing community with a steady demand for new construction. Third, Sioux Falls is close enough for us to compete for business in major markets without incurring the higher costs of locating in those markets.

What do you see as the biggest challenge facing your business, and what are you most proud of?

We have a generation of long-term employees that is reaching retirement age, and we risk losing the knowledge and expertise they have accumulated over many years working in our industry. To overcome this challenge, we have focused on mentorship and cross-training so that our team members are challenged and learning new skills. Not only does it help the business, but it also makes it a more enjoyable place to work.

How would you describe the culture of your business in three words?

Quality: If the pieces don’t fit together on the job site, then we have failed in our responsibility to the customer.

Trust: We aren’t micromanagers. We provide the resources necessary for everyone to perform their best and trust in their work ethics to deliver.

Transparency: We keep everyone informed about how the company is doing, and we share the profits when we are successful.

Why does your business choose to invest in Forward Sioux Falls?

Economic development benefits the entire community. It brings new products and services to the region, as well as new career opportunities. We appreciate that Forward Sioux Falls isn’t focused only on encouraging business growth but is equally focused on workforce development. Our company’s success is tied to the health of our community, and supporting Forward Sioux Falls is one way that we can give back.

What are your expectations for your business in the year ahead?

During 2023, everyone in our company worked long hours to keep up with the post-COVID rebound in construction activity. We expect 2024 to be a more normal year and will take advantage of the slower pace to make improvements such as implementing new production control software.

Forward Sioux Falls is a joint venture between the Greater Sioux Falls Chamber of Commerce and the Sioux Falls Development Foundation and is widely respected as the premier economic driver for the Sioux Falls region. To learn more and connect, click here.

Grow a business, sell it to a private equity firm, and sometimes an owner doesn’t love what happens next.

“I’d seen it happen in my previous life,” said Jud Pins, president of Creative Surfaces Inc. “We sold to private equity, and it was a disaster.”

Still, Creative Surfaces – which his parents, Ted and Bev, founded in 1988 and then transitioned to Pins’ ownership, was growing rapidly.

A manufacturer, distributor and installer of commercial casework, countertops and signage, the highly integrated company is a main provider nationally of signage and casework for the gaming, automotive, hospitality and fitness industries.

Creative Surfaces serves as a one-stop shop for its customers because it’s equipped to fulfill the needs of ongoing, multiscope projects that require the processing of wood, metal fabrication and electrical work. Clients include everyone from fast-growing Gold’s Gym to some of the largest Las Vegas casinos.

There also are storefronts in Sioux Falls: Cambria Gallery, which includes a full working kitchen and complete slabs of Cambria stone, and Creative Surfaces Countertops & Tile, a showroom for all counter material displays and in-home consultation.

“I wanted a different model of ownership,” Pins said. “As sole proprietor, you kind of just get tired of continually funding growth. All your chips are on the table every year.”

A fit came in the form of Toronto-based Lynx Equity Capital, which also has a U.S. division.

“They really should change their name because they’re not a traditional model of private equity,” Pins said. “I talked to several of the other owners Lynx had acquired, and they agreed they’re different.”

Instead of a traditional private equity approach of acquiring companies with the intent to resell them, Lynx buys primarily family-owned businesses and holds them.

“They have 55 companies, and they’ve only sold one, and they sold it to the previous owner who wanted it back,” said Pins, who continues to run the company with what he calls minimal involvement from Lynx.

“It is a pleasure to welcome Creative Surfaces Inc. to the ever-growing Lynx Family,” Andrea Natarelli, vice president of mergers and acquisitions at Lynx, said in a statement.

“This acquisition not only provides us with a foothold in a new geography, South Dakota, but it also further strengthens Lynx’s presence in the signage and cabinetry space. Over the years, Jud has built a strong organization with experienced management that competes in multiple industries, including the gaming sector across 15-plus states.”

In the first few months since the deal closed, there have been multiple benefits, Pins said, including allowing Creative Surfaces to streamline some internal administrative functions and synergies it has found with other Lynx companies.

“Flooring is a big deal for our clients in the fitness industry, and we get asked about it, and now we’re able to partner with a flooring company,” he said. “It’s the same with signage. They have a big exterior signage company that does exterior signs for Planet Fitness, for example. We don’t get into exterior works because we don’t have the manpower, so we’ve already shared contacts.”

There are 140 employees, mostly in Sioux Falls.

“I’ve been around this country, and this is the best workforce in the country,” Pins said. “It’s better in Sioux Falls than anywhere I’ve seen.”

Supporting continued workforce development is one reason Creative Surfaces is a longtime investor in Forward Sioux Falls.

“Trying to find people in a place with the lowest unemployment rate in the country isn’t easy,” Pins said. “But as a state and community, we’ve had some great successes lately. I think we have the best workforce we’ve ever had. We picked up quite a few people lately, and we’re seeing record numbers in terms of output.”

The story of Creative Surfaces is a classic Sioux Falls tale of success, said Bob Mundt, president and CEO of the Sioux Falls Development Foundation.

“Sioux Falls is built on family businesses like Creative Surfaces,” he said. “We’re thrilled the company found such a good fit in ownership to continue its growth that it includes local leadership and an ongoing commitment to doing business in Sioux Falls.”

Going forward, people spending more time in their homes bodes well for the company’s Cambria Gallery business, and its continued industry diversification supports more business-to-business activity.

“We’re also seeing with talk of interest rates coming down there’s multifamily activity that wasn’t here previously, so we’re seeing some opportunities to put shovels in the ground,” Pins said.

The Sioux Falls facility will be growing along with the company. While there was a recent 25,000-square-foot addition, “we thought it would last five years, and it didn’t last two,” Pins said. “So we’re looking at an addition because our casework, or custom cabinetry, division is growing so rapidly and possibly another facility in the southeast. The good thing is business is phenomenal. We can’t build fast enough.”

Forward Sioux Falls is a joint venture between the Greater Sioux Falls Chamber of Commerce and the Sioux Falls Development Foundation and is widely respected as the premier economic driver for the Sioux Falls region. To learn more and connect, click here.