Vermeer will rebuild 2 plants, expand Pella campus after tornado

Kevin Hardy
The Des Moines Register
Vermeer President and CEO Jason Andringa talks about the status of Vermeer's rebuilding process after being damaged by tornadoes that swept through central Iowa in July. Andringa said that 100% of their employees were back to work by August 20 and within 45 days they had returned to full production despite two of their buildings being complete losses. Those two buildings, 5 and 6, are in the process of being torn down on Wednesday, Sept. 5, 2018 in Pella.

PELLA, Ia. — Hours after a tornado pulled apart buildings on the Vermeer Corp. campus, CEO Jason Andringa fought back tears as he pledged to rebuild the family business.

More than a month after that destructive July 19 storm, Andringa couldn't hide his awe at the progress made on plans to get back to business as usual.

"We've made a ton of progress in the last month and a half," he said. "I am extremely proud of the job that the Vermeer team has done."

The EF-3 tornado that reached speeds of 144 miles an hour blasted through Vermeer's campus but largely left the town of Pella untouched.

Vermeer, Pella's largest single employer with about 2,800 employees, wasn't so fortunate. The tornado ripped buildings apart, tossed employee cars around the parking lot and idled production lines.

All employees, as well as some 250 customers and dealers visiting the campus at the time, moved into storm shelters. Company leaders say those shelters remained intact through the storm.

More tornadoes that same day damaged homes in Bondurant and destroyed many businesses and homes in Marshalltown

Since then, Vermeer has moved around employees and reconfigured production sites as work commenced to repair damaged walls and roofs along Vermeer Road, a mile-long stretch of factories that produce agricultural and construction equipment.

MORE:This map shows every Iowa tornado report from July 19

On Wednesday, Andringa said the company's Plant 5 and Plant 6 were total losses. Both will be demolished and rebuilt, though it's unclear how long that process may last.

But even as the company has focused much of its resources on rebuilding, Andringa said there has been limited impact on the bottom line. Sales volume in August outpaced that of August 2017, he said.   

"So far, we feel as though we've lost very, very few sales, and very, very little market opportunity because of the tornado," Andringa said. "Our volume has bounced back quickly."

Vermeer expanding its Pella plant 

Vermeer isn't just rebuilding what it lost.

Andringa announced the company also plans to expand its campus by adding a new engineering facility. They'll call it Shop 48, an homage to 1948, the year Andringa's grandfather, Gary Vermeer, founded the company. 

The company's engineers are now spread across several temporary, off-campus facilities as their workspace has been diverted for temporary production.

The new facility, planned for the north side of the campus, will bring them all under one roof. Executives hope to have the new building up within a year.

"Not only are we recovering," Andringa said, "but we are already making decisions for how we're going to come back better and stronger than ever before as a result of this tornado."

MORE:Vermeer descendants who have executive ambitions face tough scrutiny

The CEO said the tornado offered Vermeer "a blank slate" when it comes to rebuilding its two destroyed plants. Employees have already begun offering ideas on how to design factories better than the ones they will replace. 

"Because we've determined we're going to demolish those facilities, that gives us time to think through this fall and this winter what we want to do between plant 4 and 7 so that we can start executing on a plan next year," Andringa said. 

'As long as we've got our people, we have everything we need to rebuild'

The morning after the storm, Vermeer executives met early and set two goals: Get employees back to work and resume production idled by the storm. 

"When you get 2,800 people all focused on those two goals, things happen," said Doug Hundt, the company's president of industrial solutions.

He said Vermeer's more than 200 engineers focused their efforts on finding creative ways to get production lines back in operation. 

What is normally the Arena building has been turned into Central Receiving as Vermeer shuffles the function of its remaining buildings. In July, buildings 5 and 6 were damaged beyond repair during the tornadoes that swept through central Iowa. They are in the process of being torn down on Wednesday, Sept. 5, 2018 in Pella.

"It was truly a remarkable, all-in effort from all of our team members," Hundt said.

Company leaders say those priorities have set the tone for much of the work completed in recent weeks. 

The rows of mangled flag poles that still line Vermeer Road are evidence of that: Fixing or replacing them hasn't been a priority to date.

The company announced it had all employees back to work by August 20.

"There is no way I would have imagined on July 19th that would be possible," Andringa said. 

Vermeer's commitment to rebuilding comes as little surprise to the community, said Karen Eischen, executive director of the Pella Area Community & Economic Alliance.

"Everybody knew they would come back even better than before, but to do it in this short of a time frame is nothing short of phenomenal," Eischen said.

The local Well Resource Center collected donations and provided counseling for out-of-work employees, Eischen said. Some employees were laid off for up to a month, though they were eligible for unemployment benefits.

"Morale, in my opinion and from visiting with a few of the employees who were laid off, was very, very good throughout it," Eischen said. "We're just really amazed at the progress they have had and really happy things are continuing at a fantastic pace."

On Wednesday, Andringa reiterated feelings of gratitude that no one was killed or seriously injured.

"We've got our people," Andringa said. "And as long as we've got our people, we have everything we need to rebuild."

In July, two of Vermeer's manufacturing buildings, 5 and 6, were damaged beyond repair during the tornadoes that swept through central Iowa. Here, building five is seen in the process of being torn down on Wednesday, Sept. 5, 2018 in Pella.