The Holmes County Chamber of Commerce has recognized Paint Valley Equipment as part of their annual awards program by naming it the 2019 Small Business of the Year.

Levi Miller started Paint Valley Equipment in 1984 out of a need to repair heavy equipment. A need that was not being met in this area at the time. Since that time, it has expanded from a repair shop to a leader in manufacturing replacement parts for heavy construction equipment. Today, Levi’s son, Lee Miller heads up the sales and distribution of these replacement parts on a global level.

For the Small Business of the Year award, companies are assessed for their contributions in a variety of areas including long-term economic impact, entrepreneurial initiative, construction activity, beautification, reputation and community involvement. Paint Valley Equipment was recognized for its contributions in all of these areas. Paint Valley Equipment’s goals are to provide quality products, empower our employees to provide outstanding customer service, and help build a stronger community.

This is Part Two of our History of PVE series – read Part One here.

By 2000, Lee Miller and his dad Levi had a proven track record of making the right decisions for Paint Valley Equipment’s growth. The company had become one of Ohio’s largest used heavy construction equipment dealers, and sales of their own parts had increased year after year. Lee, now his dad’s partner in the company, started to know the meaning of having “skin in the game.”

Lee describes the situation right after the 9/11 tragedy in 2001. “That almost crashed our cash flow. We had our worst sales month ever. That event took the optimism out of the air. If your client base isn’t optimistic, they aren’t buying.” Looking back, Lee believes an optimistic nature and determination—things his dad instilled in him—were key ingredients in his ability to handle the hard times as an owner of a company.

Lee relied on Levi’s engineering skills, and Levi relied on Lee’s interpersonal skills. Together, they were a strong force, and they led the way for lots of changes in the 2000s.

By 2003, PVE stopped selling used parts. It made more sense to them to spend that energy on the engineering and production of new parts. They were right; the new parts business experienced 15-18% growth for five consecutive years.

Lee says, “I knew I was in over my head in business management; I didn’t have any background or education in it.” But Lee knew what to do about that: “First, I went to the Lord and said I cannot do this on my own—you lead, I’ll follow. I can look back on those crazy years in the early to mid-2000s and know that I got the guidance I needed. I latched on to a few people who were successful. I got great advice from the right people. And we hired the right people. You can hire people who are smarter than you, and that’s good.”

One of Lee’s top priorities was to put someone in place to improve PVE’s work culture. Lee understood that the right culture is what makes it possible to attract and keep the best talent. Lee looks back today and marvels at the impact that person has had. “All of us are in this together, with values such as honesty, integrity, listening to people—those things matter.”

At the same time that PVE started to build the right culture, they started to build something else:  a 12,000-sq.-ft. facility on the property. That project resulted in another key hire. In 2005, they hired someone to manage the construction site, and today he manages all production!

From 1990-2004, PVE had built all their new parts in 14 satellite facilities—machine shops and welding shops scattered within 30 miles of the business. The purpose of the new building was to bring a lot of the work in-house; that happened, but they still continued to use their subcontractors (satellite places) as well.

Two major changes took place in 2007: the implementation of an ERP system (process management software), which allowed for easier management of data and much better service to customers; and the move to sell to dealers only, eliminating all retail sales. PVE saw an immediate spike in dealer sales. Lee explains, “Dealers had new confidence in us, since we were no longer competing with them.”

This spike led to the need for yet more workspace. PVE constructed a second 12,000-sq.-ft. facility in 2008. Once the building was complete, they were able to give their subcontractors the option to work onsite. This development reduced the logistics challenges they had long endured and vastly improved efficiency and quality.

By this time, Levi had become an expert in workflows, quality control, and logistics. He had excelled at the planning that was necessary back when all their work was done in satellite facilities, so it was no surprise that he embraced the challenge of designing workflows for the new buildings. And it wasn’t just the workflows; he worked to configure the buildings so that the workflows could become a reality.

All of the strides made in the 2000s put PVE on a solid foundation. They had learned how to adapt and sustain growth, and they have been off to the races ever since. In 2012, they stopped buying and selling used equipment; the margins were not what they used to be, and the new parts business was stronger than ever.

Once PVE dedicated all their resources to manufacturing, their increased sales caused them to outgrow their space once again. A new building was built in 2014, and they are bursting at the seams again, today employing about 60 people. The past five years have been strong years. They believe their growth is a direct result of being able to give their customers exactly what they want.

Lee points out that he and his dad started as farmers and mechanics, proving that ordinary people can do big things. And the biggest thing they did? “We built a great team. Today, both Dad and I could leave for an extended period of time, and the company would run fine. The expertise and dedication of our team—that’s the most rewarding part of our history.”

In the spring of 1983, when Levi Miller sold his dairy farm in southern Ohio and moved his family to a property six miles west of Millersburg, he never imagined the big things that would eventually take place. His son Lee, 14 at the time, remembers the shock he felt when his dad first mentioned the idea of selling the dairy farm and moving back to Holmes County. Lee understood the decision, however. He explains, “My dad was good at running a dairy farm. We had the best fields…the best cows, but it was just too hard for us to make a dollar.”

After the move, Levi acquired some hogs and cattle, and he got busy building the family homesite. Levi and Lee cut the timber from the property, using a tractor and an older dozer. Lee recalls that he pulled 50,000 feet of logs that summer. The tracks on the dozer became worn, and it couldn’t be used without repair. Levi found out that the repair would cost over $1,000, which seemed prohibitive. That’s when his “can-do” attitude and entrepreneurial spirit really kicked into gear.

Levi was determined that he should be able to fix the tracks himself, so in 1984 he took $3,000 out of the bank and built his own track press. Once he completed the repair of his own dozer, Paint Valley Repair was born and he started doing track repairs for others.

Levi and Lee worked long hours in a cold and dirty space, heated with a wood burner. Their perseverance paid off, as it wasn’t long before they started repairing things other than just tracks. It was at this time that Lee chose to try a different career path and left to take a job in construction in 1987.

Lee says his boss was a good leader whose guidance shaped his own management style. Lee returned to working for his dad at Paint Valley in 1990, and they have been in this together ever since.

By 1990, PVE was fixing all kinds of heavy equipment, anything from dozers to backhoes to excavators, especially older equipment. They were buying and selling used parts, and they were also buying old equipment, sometimes to sell the parts, and other times to fix the piece of equipment and resell it. The knowledge gained from all these efforts led to the next big development—1990 was the year that Paint Valley Repair began building their own new parts, and around 1992 the business name was changed to Paint Valley Equipment.

Levi and Lee recognized that certain used parts were in high demand. Levi began to reverse engineer those parts so that they could come up with plans to build them. Within a year, Lee was running the repair shop, and Levi was able to spend more time on engineering and building replacement parts. They knew they had to get their new parts into a national distribution chain. PVE already had a relationship with PSW in Cleveland, which agreed to stock PVE’s new track adjusters and put them into their distribution channel. It didn’t take long for those who bought these track adjusters to contact PVE directly about purchasing other parts. PVE’s national-level sales had begun.

The 1990s were boom years. In 1993, they realized they no longer had the time to repair outside equipment. At the same time that the new parts business was growing, heavy equipment sales were booming. Demand was high so they were buying semi-loads of used equipment out of Texas, Florida, and Ontario, Canada—even placing locators in those places to purchase equipment for them. They went from selling 8-10 machines a year to 140 units in 1996. PVE took pride in making every piece “work ready,” and their customers knew it.

Levi had traveled some over the years to buy equipment, but by the late 90s, Lee was doing all the buying and selling, and Levi was focusing solely on building new parts. In 2000, Lee became a partner and was excited about having “skin in the game” with his dad. Lee describes Levi: “As long as I can remember, he’s been the strongest, hardest working man I know, and he’s also incredibly intelligent.”

It’s not possible to talk about PVE’s history without paying tribute to the good people who worked day in and day out—the people who became the lifeblood of the company. The PVE team (12-14 people at the time) had a lot to be proud of when the year 2000 rolled around, but even knowing their success, they didn’t expect all that was yet to come! The rest of the story – “The Story of PVE: Part Two (2000-2019)” – will be published next month.

It is natural to assume that parts on newer dozers are not going to be as vulnerable to wear or damage, but people who work with heavy construction equipment know that nothing is ever guaranteed.

It can be maddening when a part on a newer machine goes out, but the search for a replacement part does not have to bring your work to a standstill. We are creating a wide array of parts so that they will be available when you need them.

Over the course of the past year, we have put a great deal of time and energy into product development for some of the newer dozers, in particular for Deere Dozers 550H, 550J, 550K, 650H, 650J, 650K, 700H, 700J, and 700K.

We have added and will continue to bring parts into production in the following part categories:

As we continue in our commitment to fill unmet needs, we are excited about providing dependable, American-made replacement parts for newer machines. You can depend on us for easy, personal, and direct communication and delivery.

For information about Paint Valley Equipment’s products, view our new online catalog.

The PVE team is made up of people who live out our principles and values. Take a moment to get to know Joe, who has served both our manufacturing and sales/distribution divisions with dependability, integrity, and a whole lot of fun.

Name:

Joseph Wengerd. But everybody calls me Joe (except my wife)!

Years Employed at PVE:

I’ve worked at PVE for seven years: two years with our manufacturing division and five years on the sales/distribution side of the business.

Positions held at PVE:

I started in manufacturing then moved to the warehouse, packing and shipping orders. Eventually I moved up to warehouse manager where I stocked incoming parts, did inventory control, and processed returns. Now I work in customer service and sales.

What do you find most rewarding about your work here at PVE?

It’s all about the people. I like finding solutions for customers, solving problems, and talking to new people everyday. Most of all, I love working with the great crew here in the Valley.

What are your favorite PVE moments?

It was a blast making and serving homemade ice cream at the 2016 UPN convention here at PVE. I also love the grilling and special food we have on Fridays. Good food seems to be a pattern!

Hobbies / Interests:

I really enjoy biking, fishing, and camping out with my family. My favorite interests are American and World History.

Bucket List Item:

One day, I’d like to ride on Air Force One!

The next time you ask for a quote, or if you inquire for the first time about becoming a dealer, Joe might well be the guy you talk to!

Construction work in forested areas presents its own set of specific challenges. In order to get your work done safely, efficiently, and at the highest level of quality, you will need more than the basic dozer. Paint Valley Equipment is pleased to announce a lineup of forestry applications for dozers. As with all PVE products, we have them in stock and ready to ship at a fraction of the OEM price.

Log Arches

Dragging logs along the ground not only creates friction that encumbers movement, but disturbs the forest floor, leading to a messy aftermath for both ground and log. Log arches provide additional lift to the log thus minimizing the length of the log that is in contact with the ground. They reduce the impact of operations in sensitive areas, minimize ground disturbance, and allow for enhanced productivity by allowing more logs to be dragged at once. PVE log arches are made to fit specific machines and have been designed for serious forestry work.

Root Rakes

Root rakes are tractor attachments designed to collect rocks, debris, and bulky or unusually shaped material, allowing the soil to sift through. Once debris is cleared away, the root rake can be used to remove roots and debris from deeper in the soil. Our rakes consist of 1.5” thick teeth with a full brush rack above the teeth, and come with mounting brackets and pins.

Brush Screens

Safely operating heavy equipment in the forest environment can be a challenge. Protect your dozer and your operators with PVE brush screens. We manufacture brush screen attachments for all sides of the operator’s station on many Case and John Deere Dozers.

Limb Risers

Protect your construction vehicles, and those who drive them, with limb risers. These steel risers mount over the front end of the machine and extend to the roof of the operator’s station, preventing tree limbs and other brush from damaging the machine or operator when completing work in forested sites. When branches touch the limb risers, they slide up and over the vehicle instead of smacking it head-on. Our limb risers are heavy duty and designed to mount directly up to your dozer.

For information about Paint Valley Equipment’s products that make forestry work easier, check out PVE Products or view our new online catalog.

Not a dealer? Visit our site to learn how we can help you get the best heavy construction equipment replacement parts into the hands of your customers.

This past March, the U.S. Dept. of Commerce announced new tariffs on imported steel and aluminum, increasing the cost of raw materials used to produce heavy construction equipment and parts. Despite these tariffs being applied to imported steel and aluminum all steel producers have raised prices in proportion to the implemented tariffs. Many businesses are feeling the financial squeeze, which, of course, gets passed down to consumers.

As quoted in an article in the Engineering News-Record, Kip Eideberg, vice president of the Association of Equipment Manufacturers, says that “Everyone loses in a global trade war. Tariffs are taxes on American consumers and businesses: They add costs to the manufacturer and affect U.S.-based manufacturing’s ability to compete globally.”

The news can seem pretty grim, and for many businesses, it is. PVE has been able to weather these changes, keeping our customers’ best interests at the center. Here’s how we’ve faced the changes in raw material pricing to keep the impact on our dealers as small as possible.

• As the trade war has impacted pricing on certain steel imports, we have seen costs in the US increase proportionally. However, PVE was able to purchase material in larger volume prior to our costs increasing, which has helped us control costs for a slightly longer period of time.
• We have been continuing to implement automation that has improved nesting and applied quality control improvements that have increased yields. This has helped us reduce waste, thus improving our efficiency.

Despite strong economic activity in the US, the trade war is impacting the construction equipment industry. Many manufacturers increased the prices of their products immediately to reflect higher upfront costs of steel. However, at PVE, our commitment to resourcefulness and innovation has allowed us to hold off on making pricing changes for as long as possible. The higher cost of working with steel as a raw material is going to continue to impact businesses large and small throughout the country in the coming months and potentially years. As a result of these realities, PVE will implement pricing changes starting on October 1st, 2018. This is not a decision we take lightly. We are continually striving to make improvements that will enable us to maintain our pricing structure, and better serve you.