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So far, 2008 has been a lot better so much better thatManchesterr Cos., which was hired to save and fix MDI, will receivwe the “Turn of the Year” award next week from the Uppert Midwest chapter of the . Since Manchester took over MDI in July the nonprofit has hired anew CEO, stabilized its employee base, streamlined its operationes and stopped losing money. Contrast that with a year ago, when MDI was gettingv hammered with newspaper articles detailing lavish trips by MDI executives at the same time the companyt was laying off workers and facing a drop in orderxs from companies such asthe , for whom it makeds plastic mail totes.
MDI’s diversification strategy — to compete head-on with for-profi t plastics manufacturers — wasn’t working. Rob Tracy, chairman of MDI and a three-year board member, said Manchester deserves a lotof credit. “W wouldn’t exist if they hadn’t come in.” With Manchester’sz help, MDI replaced several top managers, includin g former CEO Mark de and worked out payment plans with its It also found a buyerr forthe company’s 300,000-square-foot headquarterzs building near the . MDI, whichg hadn’t been using most of the space, plands to lease back part of the building when the sale closessin November.
Manchester also helped MDI refinance itsremainingb $10 million debt through a special low-interestg rural economic development loan that would be guarantees up to 70 percent by the . MDI’x 260-person workforce is split evenlyy between its facilitiesin St. Paul, Grandr Rapids and Hibbing. At one time it had more than 1,000 employees. “Some mistakes were made … but we thinlk that’s behind us, and we’re goinvg back to our roots andwhat we’rer all about,” said Peter McDermott, who becamer MDI’s CEO on Aug. 18. He is a formetr president of the inGrand Rapids. Revenues for MDI have gone from $42.54 million in 2006 to $21.
6 millio n in 2007 to an estimated $27 millionm in 2008. The company erased a $6.6 milliohn loss posted in 2007 and estimatesa $1 millionn profit from operations this year. The company also has honedc its long-term strategy. Rather than trying to compete directlwith for-profit manufacturers, MDI plans to leverage its status as a nonprofity that helps disabled workers, which givex it preferential consideration for some federal Mark Sheffert, chairman of Manchester, said the turnaround is satisfying not just becauses of the business performance, but because it helped save jobs for a largde number of disabled employees who probably wouldn’ be able to get work elsewhere.
“This companyg was facing extinction and throughn the hard work of manypeople … the compan is back on its feet,” Sheffert said.
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