Worldlawn Power Purchases Encore

March 18 -- Encore Manufacturing in Beatrice reached a deal to sell all its assets to Worldlawn Power Equipment Inc., a Chinese firm which currently operates out of Industry, Calif.

The company will be moving its operation from California to Beatrice, a move that could eventually bring 40 jobs to Beatrice.

Encore founder Dick Tegtmeier said he’s been negotiating with Worldlawn since December of 2008.

“Because of the banking institutions, the general economy and some other things that are out of control caused us to be short-handed on money, so we had to sell it,” Tegtmeier said.

Tegtmeier said Worldlawn wanted to enhance its commercial line of lawn mowers and was interested in buying Encore. Worldlawn produces and markets various sizes of walk-behind and zero-turn radius mowers along with a line of two stage snow throwers.

Tegtmeier said he had to dismiss all employees at Encore, including himself, and said Worldlawn will begin to hire back as needed. Tegtmeier said the company plans to keep the Encore name but incorporate Worldlawn’s brand into it.

Tegtmeier co-founded Exmark Manufacturing with three others in 1982. In 1988, he opened his own mower company, Encore Manufacturing.

To start Encore, Tegtmeier made a triangle from Beatrice to Milwaukee and then to New York to try and sell stock in the company.

Tegtmeier said selling Encore was a difficult decision, but he had no choice. Because of his loyal employees, Tegtmeier said he wouldn’t sell Encore to anyone unless they kept it in Beatrice.

“It’s a thing that had to be done because of the finances,” Tegtmeier said. “Otherwise it’s kind of a sad state. I had some very, very loyal employees. I certainly hated to see them lose their jobs, thus my criteria was it had to stay here. I had about 42 people interested in buying and then once I announced it had to stay in Beatrice, I lost about 45 percent overnight.”

According to documents in the Register of Deeds office, the transaction for Encore Manufacturing was approximately $1.3 million.

Beatrice Chamber of Commerce President Lori Warner applauded Tegtmeier for his desire to keep the company in Beatrice.

“He didn’t have to do that,” Warner said. “He could have sold it to somebody else and let them take it out of Beatrice, but he was adamant on keeping it in Beatrice. And he wanted to, because he knew it was important to Beatrice.”

Encore has been synonymous with the Tegtmeier name since its founding.

“Being in the industry since ‘66, it’s hard to give up,” Tegtmeier said. “And I didn’t want to yet. But there comes a point of time when you’ve completed your circle and I’ve done it.”

Tegtmeier said Encore once employed 42 people at its peak. Currently, the company employs two full-time workers and five part-time employees with no manufacturing taking place.

Encore service manager Billy Harms said Worldlawn officials have said they would like to eventually bring 40 jobs back to Encore.

Currently, there is no timeline on when the company will begin operation in Beatrice.

“It’s kind of bittersweet,” Harms said. “It’s nice to see the company come back but it’s hard to see an era end in working with Dick. We all hope it comes full circle and people get their jobs back. We could have all the former people back, but we know we have some contingency that we’re going to have to work along with.”

Warner said Encore has been a wonderful business that’s been a stable in the community for over 20 years.

She said it’s a big benefit for the community that the Tegtmeiers were able to make this sale happen.

“I’ve already heard that several people have left Los Angeles and were flying to Beatrice to look at renting a home,” Warner said. “So we will get an influx of new people to our community because of this and hopefully several former employees will get their jobs back as well.”

Warner said Beatrice has endured a tough year with the loss of Husqvarna Turf Care and it’s nice to finally have some good news for the community.

“It just goes to show that we shouldn’t give up hope,” Warner said. “Positive things like this can happen, but it just takes a while. I think that this company being sold and jobs coming back is a wonderful story and it should provide hope that good things will happen in the future.”

Lawnmower City - Beatrice, NB - Needs Trimming

June 10 -- Over the past 20 years, Beatrice was known as “Lawnmower City.”

The moniker described the lawnmower and turf care equipment manufacturing town, with Husqvarna Turf Care, Encore Manufacturing and Exmark Manufacturing employing more than 600 employees.

After Husqvarna announced it would be consolidating local operations into a million square foot, 2,500 employee plant in Orangeburg, S.C., “Lawnmower City” has effectively been cut in half.

Looking to the future, however, city and economic development officials say that Beatrice’s economy can’t remain a “one-trick pony” for much longer without potential permanent damage done to the community.

Beatrice Mayor Dennis Schuster said the community will need to look at diversifying its economy when negotiating with potential industries to fill the vacant Husqvarna building at the end of this year.

“Over the years, manufacturing has dwindled as far as employment,” Schuster said. In 1950, he said, half of the working population was employed by manufacturing jobs. Today, that number is 10-12 percent of the population.

“We make more goods with 10 percent of the population than we did with 50 percent” Schuster said. “There just isn’t the jobs available that there used to be.”

Schuster said many citizens see manufacturing as a “good, steady job that provided benefits and good, stable income.”

But Schuster said with the closing of Husqvarna, Beatrice needs to exercise options to attract industries that will look at staying and growing in the southeast Nebraska region.

“We need to look at all types of manufacturing,” he said. “We have a lot of no-skill, low-skill assembly type jobs in Beatrice. There are higher skilled jobs available out there.”

Diversifying the economy is not a new concept to Schuster, who said he has been urging the local economy to diversify for the better part of a decade.

“It’s imperative for our survival that we diversify here,” he said. “We can’t continue to depend on manufacturing like we have. If we don’t, Beatrice will continue to shrink and fail as a community.”

John DeHardt, managing principal of the Husqvarna building with Kessinger Hunter in Kansas City, Mo., said a building like Husqvarna’s typically holds two types of industry: manufacturing and distribution.

According to DeHardt and Gage County Economic Development director Terri Dageford, while a distribution warehouse set up in the Husqvarna building would provide jobs, numbers would be down significantly from the 230 permanent and over 100 temporary jobs at Husqvarna.

“Manufacturers naturally have more jobs and is more labor intensive,” DeHardt said. A distribution warehouse would employ as many as 30, he estimates.

Also, DeHardt said a study of distribution routes across the country might indicate Beatrice to be a less-than-ideal location for a large-scale distribution industry. 

Industry Veteran Surprised by Husqvarna Plans to Close Beatrice Plant

BEATRICE --  May 28 -- With 44 years of experience in the lawnmower industry, Dick Tegtmeier understands the ties the industry has to the town of Beatrice and what severing some of those ties can mean.

Upon hearing that Husqvarna Turf Care, which employs more than 300 people, will be consolidating operations from Beatrice to Orangeburg, S.C., Tegtmeier realized the effects the move will have on the community.

“I’ve seen a lot of things come and go, but this probably baffles my mind about as much as anything,” Tegtmeier said Thursday. “I’m really shocked and surprised. In a downturn like this, it’s really going to effect (the community) worse than normal.

“That’s more than a community can stand normally. Especially in down times.”

Tegtmeier co-founded Exmark Manufacturing with three others in 1982. Then in 1988, he opened his own mower company, Encore Manufacturing, which still operates today.

Tegtmeier thinks that Husqvarna’s transition was probably unavoidable once the company made up its mind to move.

“When a company makes up its mind to do something, probably hell nor high water is going to keep it from doing it,” Tegtmeier said.

Tegtmeier thinks it’s unusual for the business to move because of the massive building recently built in Beatrice.

He expects that Husqvarna will be able to pay off the building’s lease once the business moves.

Current Husqvarna employees may consider walking out on the company to find a replacement job before the company moves, in an attempt to beat other employees to the punch, Tegtmeier pointed out.

“I think there will probably be a lot of people leaving there to get into the job market before December when everybody will be out there,” Tegtmeier explained. “That could have adverse effects on them immediately. It’s unfortunate.”