Legislators open line of communication on manufacturing

By Robert Williams

Editor

Congresswoman Michelle Fischbach led a team throughout the seventh district visiting businesses and cities, which made a stop at Marine Innovations in Frazee on Thursday, Jan. 4. 

 ¶  The discussion included Marine Innovations’ business successes and the challenges seen by Marine Innovations and other small, family-owned businesses across Minnesota. Some topics discussed were: fair taxes for small to medium-sized businesses, regulations and how supply chain issues are still affecting small rural businesses. Marine Innovations and the Botzet family appreciated Congresswoman Fischbach taking time out of her schedule to tour the manufacturing facility and talk about the business environment and obstacles facing businesses across Minnesota.  ¶  “Really, truly, we are just meeting with people,” U.S. Rep. Fischbach said. “We were at four places yesterday. We met with the city of Breckenridge, we were at Superior and Westmore. Just out and about, seeing what’s on their minds and seeing what’s going on in the district.”

The purpose of the visit, which included Rep. Krista Knudsen and Sen. Paul Utke, was to establish baseline communications and to discuss topics that are relevant both to the business and the legislators.

“We’re starting a conversation,” said Fischbach. “Letting them know that we’re here to help and hearing what’s going on.”

For Marine Innovations founder Mike Botzet having those conversations allows small business owners to share what’s helping and hurting their business, specific to their field of expertise.

“It’s very important because it opens up some avenues on some of the issues we’ve had and maybe some of the big insurance companies, maybe we can find some avenues that we can work with them,” Botzet said.

One area that impacts a business like Marine Innovations, which creates hillside trams, is that they get lumped in with elevators and are sandwiched between those regulations and construction regulations. 

“In our industry, that kind of holds up progress,” Botzet said.

Despite being code compliant, there are regulations that are strangling Marine Innovations, according to Vice President of Operations Lori Botzet. 

“We’re not an elevator company, per se, we’re more of a construction company,” she said.

“It’s a combination of the elevator world and the construction world,” Sales and Installation Manager Nick Botzet.

“There is a lot of ignorance to our industry; we’ve got to find a way to educate people,” Lori Botzet said.

For legislators like Fischbach, meeting business owners on the ground and in their space allows for a better understanding on how to help businesses such as Marine Innovation.

“Any kind of taxes, the research and development end and any kind of estate tax, given that it’s owned by a family,” said Fischbach. “There’s a lot going on in ways and means that we are looking at and taxes, given that some of the Trump taxes will be expiring. It’s easy to say tax because it affects everybody.”

All three of the Botzets liked the feedback they got from all three legislators.

“It is so critical to talk to Paul and Krista too,” said Lori Botzet. “At least we’ve had our voices heard.”

Fischbach had some familiarity with Marine Innovations, but was impressed with what she saw at the Frazee plant.

“I’ve heard about it, but I did not know about it to a certain extent,” she said. “It’s awesome to see it and yes, it’s being made here. Interesting stuff and it’s amazing to see. I don’t think people realize what’s all out here.”

Marine Innovations is in a state of rebuilding after surviving a 7-month supply chain issue that became a drain on liquid cash flow, along with keeping up with orders, both domestic and international. Frazee is home to a very unique company that faces its own set of distinctive challenges.

“I think it’s because our business is so esoteric; it’s unusual,” said Lori Botzet.

“It took us all year to catch up and we’re still catching up,” said Nick Botzet. 

Business Development Consultant Bill Martinson was also in attendance Thursday. Martinson is an expert in manufacturing and engineering and is assisting the Botzets with their quest to upgrade and streamline their manufacturing process.

“The flow of the shop and the just in time manufacturing,” Mike Botzet said.

JIT manufacturing is a production model in which items are created to meet demand, not created in surplus or in advance of need.

Marine Innovations is the premier manufacturer of trams and inclined elevators for North America, Central America and the Caribbean. Marine Innovations lifts have been helping clients enjoy their spectacular views and beautiful waterfronts since 1991. Distinct systems are available for residential and commercial environments to address the specific needs of each location. The company’s web presences include: marineinnovations.com; facebook.com/MarineInnovationsInc and instagram.com/marineinnovations/