Posted: 2/1/05
Fastenal finds perfect fit in Caledonia
By David Heiller
Argus News Editor
Why Caledonia?
Thatís a question a lot of people are asking regarding the very good economic news that Fastenal is setting up a calling center here.
Fastenalís chief financial officer, Dan Florness, answered that question and many more in an interview with The Argus on January 25.
Sheryl Lisowski, the companyís assistant controller, was on the phone as well. She researched many potential locations within a three hour drive of Winona, which is Fastenalís corporate headquarters.
They were looking for an available workforce, especially from a technology standpoint, and a good-sized ìcommunication pipe,î which is corporate lingo for a high speed internet and fiber optic connection between the calling center and the Winona office.
Caledonia met both requirements, Florness said. His company likes to recruit workers while they are still in college, and Luther College in Decorah, Iowa, is one of their favorite recruiting sources for financial work. Caledonia is just 45 miles from there. La Crosse and its two universities are close too.
Fastenal board chairman Bob Kierlin and CEO Will Oberton liked the location of Caledonia too. Kierlin told Florness to contact Joyce Iverson, Caledonia Community Development Director to explore it further.
But first Florness and Oberton got a good look ñ and sales pitch ñ at Caledonia while driving through the city with Todd Roesler, president of Merchants Bank in Caledonia. A week later, Iverson showed Florness and Lisowski several locations, including the old Caledonia Elementary School building.
Florness liked the potential in the school. Fastenal would have its pick of space, and the ability to expand if necessary, so the building met both their short-term and long-term needs.
Plus data lines with Ace and Qwest Communications were just a short distance away.
Fastenal and building owner Mike Nanoff agreed on terms for a lease, and Caledonia emerged the winner from about a dozen potential sites.
The office space is being renovated now. The suspended ceiling has been removed, and forced-air ductwork installed. Work cubicles were set to arrive last week.
Eleven full-time and one part-time workers have been hired so far, Lisowski said. They are being trained in Winona.
ìWe want to grow this group by at least 30 by the end of June, so we will continue to recruit,î Lisowski said.
They had a good response after initial help wanted ads were placed, but inquiries are still welcome, Lisowski said. People are excited about the opportunity for growth and development in the jobs, she said. People wanting more information can email mreinhar@fastenal.com. Michelle Reinhart, a Fastenal employee who lives in Caledonia, will manage the Caledonia office.
A ìcalling centerî
Florness described the Caledonia office as a calling center. ìThe real need for the operation is an orderly, efficient method of calling on customers,î he said.
Fastenal has about 500,000 customers, and some of their invoices donít get paid on time. The Caledonia workers will call on those accounts. Itís basically collections work, Florness said, but it is centered on facilitating the customersí needs. It might be a reminder call, followed by sending the customer another copy of the invoice. Thatís where the data pipeline is needed: the Caledonia office needs to have access to the central data bank in Winona, with a fast response time. The average invoice is about $175, Florness said.
Fastenalís main product line is threaded fasteners, bolts and screws. They also sell general industrial construction supplies. For example, the lighting that is being installed in the new Caledonia offices is made by Fastenal.
ìThe bulk of our sales are business to business,î Florness said. Its customers might be contractors, manufacturers or service industries.
The calling center is a good fit for Fastenal and Caledonia, Florness feels.
ìGlad theyíre comingî
Todd Roesler said he gave Florness and Oberton his best sales pitch for Caledonia when he drove them around last November. (Oberton is on the holding company board for Merchants Financial Group.)
Roesler touted the strong work ethic of people. He spoke about the the spouses of farmers who are legendary workers and would want those good jobs and benefits. He mentioned the displaced Sagebrush workers who might want to work back in Caledonia rather than making the commute to La Crosse.
Roesler showed them some potential areas, including the school building, which caught their eye. He suggested that they talk to Joyce Iverson, and that eventually led to closing the deal here.
Bankers donít get excited easily (OK, thatís a stereotype), but the Fastenal expansion gets Roesler going. ìIím really glad theyíre coming to town,î he said.
ìI think itís significant. Youíve got a name company coming to town that has good, viable jobs. They have good benefits.î
The Fastenal name could also entice other businesses to the area, he said. ìYou never know what might come of it in the future either.î
Those workers will help stabilize the downtown shops and the restaurants, Roesler added. ìIf that employment base grows, it could help our downtown further.î The calling center holds the possibility of 50 or 60 people in a few years, he added.
Caledonia Mayor Mike Morey said that bringing 30 jobs into the community is a very positive thing for the town. He feels it will open the door for other possibilities. ìI feel like it will attract other businesses. Fastenalís a very well-established business.î
He said he is hearing comments from other people who are excited about the business coming in and helping employment and growth in the city.
Caledonia Argus
314 West Lincoln St.
P.O. Box 227
Caledonia, MN 55921-0227
507/724-3475
E-Mail: editor.argus@ecm-inc.com