Expansion: HME, Inc.

Photos by John Burns

HME, Inc. invested $6.1 million for Phase One of a three-part expansion project, adding 31 employees to its payroll by the end of 2020. The Joint Economic Development Organization’s efforts will complement HME’s initiative by providing a portion of the $847,000 allocated for incentives over the next five years.

“For every job we bid, the price is very tight,” said Jon Haas, founder and president of HME. “The difference between winning or losing a job might be half a percent. The biggest thing JEDO does is help us bridge that difference so we can be more competitive with the amount of work we’re able to bring to Topeka.”

JEDO’s monetary support is critical, but Haas said the organization also assists in “keeping businesses like ours moving forward by helping us get approvals so we can move quickly when we’re ready.”

ONE, TWO, THREE

Phase One, completed in December 2020, added 36,000 square feet, new equipment including two 15-ton cranes and two 5-ton cranes, integrated painting lines and 40 welding stations.

Phase Two, a 16,000 square-foot expansion, will get underway this spring when the company relocates its Peak to Peak Engineered Railings affiliate, launched in 2014, to a renovated building next to Topeka Foundry, which HME also owns.

“Peak to Peak Engineered Railings has been doing really well and needed space to expand its work in building handrails, stairs and ladders,” Haas said. “By moving its operations to 3rd and Jackson, we can use the vacated space at our main location to support miscellaneous needs.”

HME is also developing 12 acres of outside yard and storage space and investing in new machinery and two presses for bending metal and automating a line for beam and structural shaping.

Three recent hires will manage a new Dallas office this year following five months of training in Topeka. The May college graduates assist the company in attracting new projects that Haas said would be fulfilled in Topeka. HME also has offices in Kansas City and Denver.

Phase Three, scheduled to take place in 2022, will entail implementing automated robotic welding systems purchased from Voortman Steel Group in the Netherlands.

In development for five years, the first prototypes were installed last summer. Haas said the pandemic delayed installation but he is optimistic that his team will be able to view final designs this spring.

“When people hear about robotics, they often think companies are replacing people, but that’s not the case,” said Haas. “A robot can do more repetitive processes that take minimal brain power so skilled workers can use their minds for other applications. Robotics can speed up processes and make us more competitive, which then promotes growth for employees and the company too.”

CENTRAL LOCATION

Haas said HME’s location in the center of the country offers multiple benefits that complement an expansion mindset, including “an economic climate friendly to industry, reasonable costs for shipping and land, access to a well-trained workforce and a good cost of living. Some of our competitors are in places where they can’t afford to grow or attract the right people for their industry.”

Its location between the University of Kansas and Kansas State University also offers HME access to engineers, steel designers, production managers and more to fill employment needs. The company pulls talent from smaller communities surrounding the capital city too.

“We provide men and women with skilled jobs and the opportunity to build things they can be proud of,” said Haas. “As part of our expansion effort, our employees are even constructing the buildings they’ll be working in.”

PROJECT PRIDE

Recent HME projects include the Kansas State University football stadium end zone, a space-related endeavor and Amazon structures in Springfield, Missouri and Denver, Colorado. The company played a key role in rebuilding Joplin High School after a 2014 tornado and received the best supplier award from McConnell Air Force Base for creating airplane hangars in Wichita.

“It’s cool for our team to drive by the Seaman Middle School or under the arches stretching across Kansas Avenue or through the parking garage at the Kansas Capitol and know they had a part in those structures,” he said.

EXPANSION HAS BENEFITS

Haas said the economic benefits of HME’s expansion efforts provide not only an increase in the community’s tax base but also help boost the bottom lines of small businesses in the area that provide HME and its affiliated companies with services and materials. In addition to Peak to Peak Engineering Railings and Topeka Foundry, HME also owns Cycle Zone and Haas Crane and Equipment Rentals.

“There’s been a fundamental shift in the construction industry toward renting equipment instead of purchasing it and we’re excited at how well that service is going,” he said.

Haas said the rental company also allows HME to have additional equipment available for large jobs on an as-needed basis to fast-track work and regularly replace inefficient equipment to reduce maintenance costs and enhance efficiency.

SIX-ZERO LLC

One of HME’s newest endeavors is the creation of Six Zero LLC, an employee-owned business that offers staff a unique opportunity to supplement the company’s 401(k) plan with additional contributions made directly into local communities versus investing in the stock market.

“We like the idea that we can physically touch and control a portion of our retirement,” he said.

An internal group of investment employees buy properties in Topeka and Kansas City for development, rental and sale, and an employee board of directors votes twice a year on projects to pursue.

“Six Zero is a nod to the idea that our employees may want to retire at the age of 60,” he said. “Our company 401(k) plan is heavily invested in the stock market, but through Six Zero, our workforce has an opportunity to invest in something tangible in addition to the stock market.”

GOAL: GROWTH BY EFFICIENCY

Since founding his company in his garage, Haas said he’s been fixated on growth and continuous improvement throughout his career.

“Our goal at all of our affiliated companies is always to provide a great product at a fair price, and we do that by becoming more efficient,” he said. “We have to adjust for the ups and downs of the economy as we go along, but I’m sure that when these three expansion phases are finished, a fourth one will come along soon after.”

Click Here to learn about other businesses expanding in Topeka.