Founded in Wisconsin - McDonough Manufacturing, Eau Claire Wisconsin, since 1888.

greenwoodphilip
Jun 5
9 min read

Eau Claire's Sawmilling Legacy: The Foundation of McDonough Manufacturing's Success

Eau Claire's sawmill and lumber history contributed to the founding and success of McDonough Manufacturing. Dubbed "Sawdust City" in the late 19th century, Eau Claire was a force in the white pine lumber industry, which created a substantial demand for durable sawmill equipment. Frank McDonough Sr., a former sawmill worker, established the company to fulfill the need for specialized machinery to support the industry's expansion. His strong ties to the local sawmilling community enabled McDonough to design products such as band sawmills and resaws that were specifically tailored to local requirements, establishing a reputation for quality and innovation. The city's numerous sawmills provided a robust customer base and facilitated collaboration, promoting continuous improvement and practical engineering solutions. Consequently, Eau Claire's sawmilling heritage played a significant role in shaping McDonough Manufacturing's early development and long-term success.

The Rise and Fall of Eau Claire's Lumber Industry: From "Sawdust City" to Industrial Transformation

Eau Claire's 19th-century lumber and sawmill industry played a crucial role in the city's development, earning it the moniker "Sawdust City." The inaugural sawmill, established in 1846, capitalized on the region's abundant white pine forests and its advantageous river location. Following the Civil War, the city emerged as a lumber hub due to increasing demand, with over 75 sawmills operating by 1890. This boom attracted immigrants from Germany, Norway, Ireland, and Canada. Prominent figures invested heavily in infrastructure, while socioeconomic divisions arose between affluent entrepreneurs and immigrant laborers. Sawmills embraced new technologies, with local manufacturers driving equipment innovation. However, the depletion of white pine resources and economic transformations led to the industry's decline by the early 20th century.

Adaptation and Diversification: McDonough Manufacturing's Evolution in the Face of Industry Challenges

McDonough Manufacturing, founded in 1888 by Frank McDonough, Sr., Emmet Horan, and Peter John Holm in Eau Claire, Wisconsin, was designed to meet the high demand for custom sawmill equipment, emphasizing rapid production, durability, and efficiency. Strategically located by the Eau Claire River, the company flourished in the regional sawmill industry. After McDonough's death in 1904, John M. Kildahl took over, steering the company through challenges like Wisconsin’s forest depletion, World War I, and the Great Depression, while broadening the product line. After the depletion of virgin white pine in the early 1930s, which led to the closure of sawmills along the Eau Claire River, McDonough Manufacturing adapted through several key strategies by diversifying its product lines, moving beyond sawmill equipment for white pine processing to include resaws, band mills, and the Sterling Universal Tool Grinder and Twist Drill Grinder. By acquiring and redesigning these machines, the company accessed new markets outside traditional lumber. As local sawmilling declined, McDonough adapted by focusing on products with broader industrial applications, successfully shipping hundreds of grinders during World War II. The involvement of family members like Jack and Fred Kildahl in the 1930s brought fresh perspectives, ensuring continuous improvement and maintaining the company's competitiveness as the lumber industry evolved.

Porter’s Five Forces Analysis: Today's Sawmill Machinery Industry

The Five Forces analysis of the sawmill machinery industry provides insight into the competitive dynamics affecting McDonough Manufacturing. The threat of new entrants is moderate to high, driven by substantial capital requirements and technological advancements that appeal to newcomers, despite protective factors like brand reputation and established relationships. Supplier power is moderate, as the reliance on specialized components is balanced by the capacity to source globally. Buyer power is high, with large, sophisticated buyers demanding customization and advanced technology, having access to multiple competitors. The threat of substitutes is low to moderate, given the limited direct alternatives, although innovations in wood processing could alter demand. Rivalry among existing competitors is intense, characterized by fragmentation, strong competition on technology and price, and ongoing consolidation. Differentiation through advanced features and sustainability is essential for maintaining a competitive advantage.

The industry is adopting technological advancements in automation, robotics, artificial intelligence, and data analytics to improve operational efficiency and product performance. Customers require high-quality machinery alongside strong after-sales support, training, and maintenance, emphasizing the necessity for differentiated services. Sustainability is a priority as environmental responsibility and regulatory demands drive the need for eco-friendly machinery and processes. The global sawmill machinery market is poised for steady growth, fueled by demand from the construction, furniture, and sustainable wood product sectors, although it contends with cyclical pressures and raw material volatility.

McDounough's Strategic Elements

Using Hambrick and Fredrickson’s Strategy Diamond, McDonough Manufacturing’s strategy can be categorized as follows:

Element	McDonough’s Approach
Arenas - Where they Compete?	Sawmill machinery, global reach, advanced engineering, custom fabrication
Vehicles - How they Compete?	Organic growth, acquisitions (BID Canada), international facilities, customer partnerships
Differentiators	Custom solutions, quality, durability, customer service, innovation, vertical integration
Staging - Speed and Sequence of Growth	Incremental market expansion, phased product launches, timed acquisitions, ongoing tech investment
Economic Logic - How they Generate Economic Returns?	Premium pricing, operational efficiency, aftermarket/service revenue, repeat business from strong reputation

McDonough Manufacturing is a leader in the industrial machinery sector, specializing in sawmill equipment through custom engineering and manufacturing. The company employs advanced 3D modeling and in-house control systems to design bespoke machinery, such as band mills and edgers. Their vertical integration ensures complete control over the production process, guaranteeing high quality and flexibility. With continuous investments in technology, including advanced lathes, McDonough enhances precision and efficiency. Renowned for producing durable, high-performance machinery, the company utilizes modern diagnostics alongside a skilled workforce that combines contemporary and traditional expertise. Their customer-centric approach prioritizes understanding client needs and providing comprehensive support, fostering long-term relationships. Global expansion efforts, such as establishing a facility in Canada and acquiring BID Canada, enable them to effectively serve a broader market. McDonough's dedication to precision and durability is demonstrated through meticulous attention to detail and performance, supported by traditional craftsmanship and modern diagnostic tools, offering turnkey installation and responsive service support.

McDonough Product Line

Category	Key Products & Features
Board Edgers	OptiFit Linear Edger, Sterling YieldBoss Hybrid, Manual & Combination Edgers
Bandmills	Double Column Air Strain Mills (54"–8'), exclusive Air Strain, cast iron wheels
Resaws	Linebar, Center Split, Twin, Quad, Horizontal, Modular Horizontal Resaw, rebuilt options
Carriages	36", 42", 48" openings, customizable options, advanced setworks and operator cabs
Gang Edgers	Curve Sawing Gangs, thin-kerf solutions, manual/combination gangs
Material Handling	Transfer decks, MAXX Resaws Infeed, custom rolls (detuned/sharp knurl, smooth)
Custom Fabrication	In-house CNC/manual machining, welding, assembly, painting, large weldments
Controls & Automation	In-house controls, operator consoles, PLC programming, servo motion control
Factory Rebuilds	Rebuilt resaws, carriages, and other equipment with warranty

McDonough Manufacturing’s leading product is the OptiFit linear edger. This system is the preferred choice for contemporary hardwood sawmills, renowned for its exceptional yield, swift payback periods, and long-lasting durability. The OptiFit utilizes McDonough’s established linear edger sawbox technology, ensuring high efficiency and reliability for sawmills striving to enhance lumber recovery and operational efficiency. Customer testimonials and industry feedback emphasize the OptiFit’s speed, accuracy, and significant impact on mill productivity, solidifying its position as McDonough’s flagship and most in-demand product.

McDonough Manufacturing Leadership - For Over 130 years

The leadership of McDonough Manufacturing has transitioned through several families and generations since its founding. Below is a chronological list of key leaders:

Frank McDonough Sr. (Founder, 1888–1904) - Born in 1846 living in Ontario, Canada to Irish immigrant parents, Frank McDonough, Sr. moved to Eau Claire in 1863, where he swiftly became a prominent figure in the local lumber industry. Starting as a millwright, he advanced to the roles of superintendent and stockholder at the Eau Claire Lumber Company, acquiring extensive expertise in lumber operations. As president and treasurer, Frank guided the company's expansion and the hiring of numerous skilled workers, boosting the local economy. His leadership extended to various enterprises, earning him the distinction of "captain of industry." Frank's passing in 1904 marked the end of an era, but his legacy of innovation and quality continued to influence the company and the region. His honorable business practices and strong character played a pivotal role in Eau Claire's development, establishing the foundation for McDonough Manufacturing's lasting success in the North American sawmill industry.

John M. Kildahl (Owner/President, 1921–1950) Kildahl revitalized McDonough Manufacturing in Eau Claire, Wisconsin, after initially being tasked with dissolving the company following Frank McDonough Sr.'s death in 1921. Recognizing the company's potential, he acquired it and successfully navigated it through the Great Depression and World War II. His leadership was characterized by innovation and diversification, notably through the redesign of the Sterling Universal Tool Grinder and the development of the Sterling Twist Drill Grinder. These innovations were pivotal during and after the war, enabling McDonough to secure significant contracts and maintain competitiveness despite the decline of the local sawmilling industry. His sons, Jack and Fred, joined the company in the 1930s, ensuring a seamless succession after his death in 1950. In 1939, he directed J.H. Barnes to redesign key products, expanding McDonough's reach beyond traditional sawmill equipment to advanced grinders, thereby meeting demands for precision and efficiency, particularly during World War II. Under his leadership, McDonough secured major contracts, reinforcing its technological capabilities. Kildahl's strategies in the late 1930s aligned with trends in machine tool demand, focusing on advanced tools like grinders for sectors such as automotive and aircraft manufacturing. By responding to pre-war and wartime demands, Kildahl positioned McDonough to capitalize on increased production during World War II, shipping hundreds of grinders to support the war effort.

Jack Kildahl (President/Vice President, 1950–1990) The son of John M. Kildahl significantly contributed to the evolution of McDonough Manufacturing, joining its management team in the mid-1930s and advancing to the position of Vice President following his father's death in 1950. As President, he guided the company through substantial innovation and growth until his passing in 1990. During his tenure, McDonough underwent major redesigns of key products such as resaws, band mills, and Sterling drill grinders, and introduced the EDLF small log-end dogging feeding device, resulting in six patents. He expanded the company by relocating to a larger facility in 1989 and involved his daughters, Barb and Sue, in the business, nurturing a family-oriented culture. He honored the company's heritage by transferring the original vault door to the new headquarters. After his death, his daughters assumed leadership, with Sue becoming President and CEO, continuing his legacy.

Frederick R. Kildahl (Co-Manager, mid-1930s–?) Frederick R. Kildahl, alongside his brother Jack, played a pivotal role in the management of McDonough Manufacturing from the mid-1930s. Under the leadership of their father, John M. Kildahl, they contributed significantly to the company's growth through product redesign and modernization. After John’s death in 1950, Frederick and Jack assumed executive roles, with Frederick serving as a co-manager and executive. They led the redesign of key product lines such as resaws, band mills, and Sterling drill grinders, ensuring McDonough's continued innovation and competitiveness in the sawmill equipment industry.

Sue (Kildahl) Tietz (President/CEO, 1990–Present), the granddaughter of John M. Kildahl, has played a pivotal role in guiding McDonough Manufacturing since assuming the position of President and CEO in 1990, following the passing of her father, Jack Kildahl. As a third-generation leader, she has successfully modernized the company and expanded its global reach while maintaining its family-run character. Under her direction, McDonough has reached significant milestones, such as relocating to a modern facility in 1989 and expanding into Canada in 2017. Sue adeptly balances her professional responsibilities with her family life, with her son Matt Tietz serving as Vice President. Dedicated to McDonough's legacy, she has upheld its reputation for quality and innovation. The company has flourished with custom-built, high-performance sawmill machinery, and engineering advancements like the End Dogger and McDonough Edger have set industry benchmarks. The company's success is attributed to innovative engineering and customer-focused sales, along with exceptional service and rapid parts delivery. In 2023, McDonough enhanced its North American presence by acquiring BID Canada.

Matt Tietz, the President and Owner of McDonough Manufacturing, oversees this sawmill equipment company with a strong emphasis on innovation, quality, and customer service. Having been involved in the family business from an early age, Matt gained practical experience in the assembly shop following his graduation with a degree in Business Administration and Management from the University of Wisconsin–Eau Claire in 1995. In 1997, he transitioned to a sales role, which enhanced his understanding of customer needs and the sawmill industry. His extensive expertise has been instrumental in shaping McDonough's strategy for producing reliable machinery. As President, Matt has spearheaded the company's global expansion, including the establishment of a facility in New Brunswick, Canada, and the acquisition of BID Canada in 2023. Collaborating with his mother, CEO Sue Tietz, Matt is dedicated to providing tailored customer solutions and achieving operational excellence.

The Company Performance - Today

The precise sales or revenue figures for McDonough Manufacturing in 2024 have not been disclosed publicly. However, the most recent reliable estimate places their annual revenue at approximately $16.2 million, highlighting the company's scale in recent years. Although specific data for 2024 is unavailable, McDonough's consistent growth, evidenced by the acquisition of BID Canada in 2023 and their investments in advanced manufacturing and international expansion, suggests that their 2024 revenue is likely in line with or slightly exceeds the $16.2 million estimate.

Founded in Wisconsin - McDonough Manufacturing, Eau Claire Wisconsin, since 1888.

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