Midwestern Metals
Photos by: JOHN BURNS
The first half of a new expansion that was approved in 2020 began last summer, and the second half is continuing this summer for Midwestern Metals and its sister company Custom Dredge Works, 1105 NW Lower Silver Lake Road.
John Jones, president of the family-owned business, said after three buildings were constructed initially, they are adding two more large buildings this year. Those should be erected and working on finishing steps by the end of summer.
The initial structures included an assembly building for making the dredge and a new paint and sandblasting facility. The parts department for Custom Dredge Works is moving into its own building, and the machine shop is also getting its own complete structure by itself.
EXPANSION INCENTIVES
The expansion, named Project Oyster, comes after the Joint Economic Development Organization board approved an incentive agreement in 2020 to offer cash incentives for $96,000 to aid in the growth of the two local companies. The estimated impact was $69 million, and the capital investment for the project was $3.5 million.
With Midwestern Metals being the fabrication arm of Custom Dredge Works, 95 percent of its business is supplying Custom Dredge Works with the parts and fabrications they use to build their dredges, Jones said. The other 5 percent of business is parts business with other manufacturers.
“We’ve shipped our equipment and dredges all over the world,” Jones said, adding they’ve been to the Ice Road up north, South America, the Middle East, Africa and Asia. “Historically, our business has been predominantly domestic because we fill a specific niche in the domestic market.” Mainly, the company builds dredges for aggregate production, sand and gravel, and occasionally, they do dredges for environmental work, Jones said. “The vast majority of our work is in the aggregate production world. We’re probably the No. 1 player in the aggregate production side,” Jones said. “There are others who do it, but we really focus and specialize in it.”
40 YEARS OF GROWTH
Jones’ dad started Midwestern Metals in 1982 in the back of an old automotive repair shop and auto parts store. For many years, the company had between eight and 20 employees and suffered to barely stay above water, Jones said. In 1999, after Jones graduated from Washburn, he came to work for the company, and they got a small business loan from a local bank. They bought new equipment and moved into the building they’re now in.
“That really got us started. We began slowly but surely, growing through the years to where we are now,” Jones said, adding significant growth of 20 percent year after year began around 2014.
Midwestern Metals came before Custom Dredge Works, which started in 2001. Initially, the metal shop was a job shop manufacturer that just built parts for other manufacturers, Jones said, adding they would make widgets for companies all over the Midwest.
FOLLOWING OPPORTUNITY
The big push for Midwestern Metals over the next five years is going to be with the service department.
“We’re expanding into the service of the equipment that we build,” he said. “We’re gonna provide field service for our dredges and mining equipment, as well as other manufacturers. Jones said they’re expanding into other products through Custom Dredge Works and building some specialty dewatering equipment and other types of dredges that are more modular and easier to transport.
While both Midwestern Metals and Custom Dredge Works have about 50 employees each, Jones said, “If I could hire 17 new people, I’d hire them today. We’re dying for people.”
But business is going good, Jones said, adding that sales aren’t a problem.
“I think the environment for small businesses in Topeka has gotten better,” Jones said. “It’s been easier to get help, with Project Oyster and that kind of stuff. We sure are grateful for the city to help us with that.”
