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Manufacturing Extension Partnership (MEP)

A Clear Path to Success: Montana Lumber Company partners with MMEC on strategic plan

With the help of: Montana Manufacturing Extension Center (MMEC)

About

Montana Reclaimed Lumber Company (MRL) is a pioneer in the recycled wood products industry. In the 1990s, owner Mike Halverson saw an opportunity to find new life for the beautiful wood in very old barns and buildings throughout the state. Working in close partnership with the landowners, he dismantled the structures and sold the lumber from his garage. His endeavor evolved into MRL, founded in 2002, which now encompasses three lumber yards, more than 35 acres, and one of the largest collections of antique lumber in the country. His team of 45 employees in the Gallatin Valley supplies custom lumber packages for flooring, siding, paneling, and trim for both residential and commercial building projects, as well as crafting a small selection of unique furniture and home décor for the public showroom.

The Challenge

After twenty years of business success, Halverson is considering future growth for MRL. He approached MMEC Senior Business Advisor Alistair Stewart to help clarify and execute a growth path for the company. MMEC is part of the MEP National Network™.
Our experience with Alistair, Tiphani, and Steve has been wonderful. Our team has and continues to learn new ways to look at processes, inventory, purchases, standard work, and more.
— Mike Halverson, President, Montana Reclaimed Lumber

MEP's Role

Stewart proposed a comprehensive approach to strengthen performance in the areas of operations and workforce, which would lay the groundwork for Halverson to achieve his business goals over the long term. He brought in other MMEC team members, including business data analyst Tiphani Lynn and talent/workforce advisor Steve Dybdal, to create visual, data-driven planning tools including an operational value assessment, business model canvas, and a graphic gameplan. These tools not only helped document current strengths, weaknesses, opportunities and threats, they also made it possible for MRL to map out and implement improvements to enhance the company’s practices and performance.

This project provided MRL with actionable strategies to achieve sustained business performance gains. Some immediate benefits have already come to light. For example, a thorough analysis of the lumber demetalling operations revealed significant production constraints related to limited manpower. Through improvements to standard work, training, and hiring, MRL has increased throughput in this process by 50%, while also expanding surge capacity and improving quality. A new shop layout created additional efficiencies, saving forklift drivers 586 driving miles and 50 hours driving time each year.

Created August 6, 2024