Carving a Niche

The crew at Weleske Improvements doesn’t mind digging deep to get a little dirty. As an excavation specialist based in Hallock, Minn., this contracting company is an expert at unearthing and burying utilities around mud, soil and sod, which by the end of the day cakes on both man and machine.

Tom and Shane Weleske, president and vice president of Weleske Improvements, a full-service excavating company in Hallock, Minn., rely on compact equipment to stand above local competition. While large earthmoving is competitive in the area, the company specializes in confined space excavation.

“If it involves moving dirt, we’ll do it,” smiles Shane Weleske, vice president of Weleske Improvements. “We’re a full-service excavating company and we specialize in confined space excavating. We perform a lot of water/sewer repair and installation and also do interior demolition.”

It’s that can-do attitude that has kept this company thriving for more than 50 years, with its employees completing around 100 projects a year. Weleske Improvements first started in 1956 after the company’s founder and president Tom Weleske, bought a used truck and started hauling gravel. In 1960, Tom bought his first backhoe and began excavating. As the business progressed, Weleske added gravel crushing to his list of services and the company eventually evolved into a full-service excavating and trucking company. In the late 1980s, Weleske Improvements purchased its first mini excavator used from a rental company.

“I remember the day we brought the mini excavator home and our competitors just laughed and asked what we were going to do with that thing,” says Weleske. “After a few years, we found out there was a market for compact machines. Then in the early 1990s, we traded that used one and bought some new compact machines and that became our niche.”

Today, Weleske Improvements specializes in confined space excavating for a variety of residential, commercial and industrial clients within a 60- to 70-mile radius of its headquarters. Aside from excavating, the company performs water and sewer repair and installation, interior demolition and trucking services. During its off season, Weleske Improvements offers snow removal thanks to its army of track loaders.

Aside from Weleske and his father Tom, there are five other employees in the company. As for who does what, Weleske points out that everybody has equal job titles and duties — a business decision he finds valuable in the company’s day-to-day operations.

“In a small company like ours, we don’t see a need to have one guy do a certain thing,” says Weleske. “If everyone is well-versed in everything, whether it’s running an excavator or driving a truck, it’s more beneficial to us as a company.”

With any company, training and keeping employees safe on the jobsite are important. To ensure its crew is ready for a project, Weleske Improvements conducts its own in-house safety program and requires that all employees have commercial driver’s licenses.

“Through our safety program, our employees are aware of what they’re required to do or bring each and every day,” says Weleske. “No matter what job they’re doing, they’ll know what to bring as far as safety equipment whether it’s glasses, a hardhat or ear protection.”

Although having a well trained crew is important, the company relies on its equipment to get its employees working. With a variety of machines in all sizes, Weleske Improvements gets busy digging on the jobsite.

Equipped to Excavate

Although the company first began with a small gravel truck, Weleske’s fleet has grown quite extensively over the years. Today, the company owns a wide range of equipment from compact excavators and track loaders to full-size excavating equipment and trucks. Weleske even has vacuum excavating equipment for confined spaces where the mini excavators just can’t fit.

Although the company first began with a small gravel truck, Weleske’s fleet has grown quite extensively over the years to include a wide range of equipment from compact excavators and track loaders to full-size excavating equipment and trucks.

“We get a lot of work based on us having the smaller machines to perform it,” says Weleske. “You can be diversified in your offerings, but it’s important to have one thing that you can do better than anybody else.”

To complement the machines, the company has a wide variety of attachments to assist its crew on the jobsite. The mini excavators are often matched with concrete breakers, grapple buckets, frost rippers and postal augers, while the company’s track loaders frequently use buckets and pallet forks for moving dirt and other materials around a work space. In the winter, the track loaders are paired with light material buckets for snow removal.

With such a large investment in equipment, keeping those machines in tip top shape starts with the operator, says Weleske. Operator training plays a significant role in making sure the machines are cared for and used properly on the job.

“Always work within the parameters of what that equipment was designed for,” cautions Weleske. “Don’t overextend your equipment, because you’re just asking for premature failure.”

As for keeping all that equipment working each and every day it’s needed, Weleske and his crew stay on top of maintenance duties within the fleet. This involves looking for any signs of premature failure and taking care of any small fixes before they become big problems.

“Every morning, our employees do a visual walk around looking for any signs of failure,” says Weleske. “They’re trained enough that they know what to look for. A lot of times they can see signs of something that can prevent a big cost down the road.”

When the time comes to purchase new equipment, Weleske emphasizes that dealer support is a big factor in any sales decision, as well as if the machine fits the company’s niche. The size of the equipment is especially important given Weleske’s specialty.

“We always look at a machine and decide whether or not it is going to serve the purpose of what we’re buying it for and whether it’s too small or too big for our projects,” says Weleske. “All of the equipment that’s made today is good equipment, or they wouldn’t be in business. So in the end, the final decision rests on the dealer and its after-sale support.”

Since all new equipment will need attention at one point or another, Weleske notes that every bit of dealer help is beneficial. Weleske uses his own experiences with the company’s equipment dealer DP Equipment based in Camden, Mich., to prove his point. After making its first purchase with DP Equipment seven years ago, the company has been a satisfied customer — buying even more machines.

“Over the years, we’ve contacted our dealer about various problems and saw how good they were to us,” says Weleske. “So, when the time came to update our compact equipment two years ago, we turned to them.”

Another factor that made the decision easier for the company to turn to DP Equipment was its brand affiliation — it was a Terex dealer. Weleske’s previous track loaders were from ASV and the company was satisfied with the brand and the machines’ performance. At the time, Terex was purchasing the ASV brand and Weleske wanted to buy new ASV track loaders. To keep with the manufacturer, Weleske opted to buy all new Terex machines, including track loaders and mini excavators.

“When we were due for new compact equipment, we looked at Terex mini excavators because we wanted to stay with the ASV track loaders,” says Weleske. “We got the best of both worlds — we got to keep a brand that we liked and stay in one place to get all of our equipment.”

Distinct Business Sense

With properly trained employees and hard-working equipment, Weleske Improvements is ready to tackle any job. Although there is plenty of competition in larger earthmoving throughout the region, the company’s compact equipment specialty makes it a sought-after company. The business’ niche in running small machinery and performing confined space work helps distinguish its services from other companies — making the market much less competitive.

During its off season, Weleske Improvements offers snow removal thanks to its army of track loaders. This additional service keeps the company busy throughout the year.

“We do work that a lot of people can’t or won’t do, especially when the work calls for small equipment,” says Weleske. “We’ll do anything when it comes to confined space work. Our competition in the larger segment even comes to hire us when they need our compact equipment to finish a job.”

To keep a steady flow of projects, the company works hard to satisfy its clients — ensuring rave reviews and recommendations to other potential customers. Weleske notes that 90 percent of the company’s clients hear about the business through word of mouth. Since that promotion leads to more projects, Weleske and his crew strive to fulfill their commitment to a contract by giving a little extra in hopes of securing even more work.

“Always give your customer more than what he or she is paying for,” says Weleske. “If you say you’re going to do something for so much, you always should do a little more so that when you’re done the client actually got more than what they paid for.”

One example of this extra mile mentality includes the company’s commitment to site cleanup. Since the projects Weleske Improvements works on get messy, the crew prides itself on cleaning up a jobsite meticulously.

“If it’s a water or sewer repair, some people end up having their whole yards destroyed, which can be a catastrophic event for them,” explains Weleske. “When they see their yards after we leave, they’re surprised that the damage was minimal. They can’t see the pipes that were repaired underground, but they can see the surface and how we left it. That’s important to them.”

Thanks to the company’s niche and willingness to take on a variety of excavating projects, Weleske Improvements has enjoyed success even as the economy took a turn for the worse. Although surrounding businesses and companies all across the country were hit hard by the recession, Weleske mentions that the past two years have been some of the best for the company.

“We live in a farming-oriented area and the farming economy has been very good,” says Weleske. “When farming is good, people around here spend money. Over the past two years, we have grown. Since a lot of our work involves maintenance, it’s a constant stream of projects. Also with being a smaller company, it’s easier to keep your men busy on a regular basis compared to a larger one when times are tough.”

For other companies feeling the effects of the economy, Weleske has a few tips to share for weathering the storm. First, he suggests that contractors try to keep prices consistent with their rates prior to the downturn.

Weleske Improvements has found its niche in confined space excavation. Equipped with compact excavators, the company can perform work in tight spaces, indoors and alongside buildings.

“Don’t start cutting your prices to try to get more work — everyone’s trying to do that,” says Weleske. “My opinion is that you’re better off working less for the same amount of money that you’re used to than working more for less. All you’re doing is wearing out your equipment, and when the time comes to replace the money isn’t going to be there.”

Another way Weleske suggests to remain successful during a downturn is for contractors to stick with what they know. Although tough times make it tempting for companies to diversify, Weleske points out that relying on your core business is important to ride out the storm.

“When the times are tough in our area, some companies have tried to diversify and go after work that they are not familiar with against businesses that know what they’re doing,” says Weleske. “Sometimes that can lead to going after the unknown. It’s no time to get an expensive education when money or work is short. Stick to what you know and if you’re established, your regular customers will hire you.”

With a hard-working crew and compact machines, Weleske Improvements serves its community and its need for confined space excavation. Equipped with smart business practices and a distinct niche, the company can keep on digging and staying productive throughout the year.

Pam Stask is assistant editor of Compact Equipment, based in Peninsula, Ohio.