January 2016 Vol. 71 No. 1
Editor's Log
A Legend May Die, But The Legacy Lives On
by Robert Carpenter, Editor-In-Chief
Ed Malzahn abruptly passed away the evening of Friday, Dec. 11. When he succumbed, Ed was in the home he loved overlooking the campus of the company he loved and the town of Perry, OK, which he loved as well. At 94, Ed accomplished more than most can hope for in a lifetime. He achieved that success in a humble manner, always remaining true to his core values. On page 16, Senior Editor Jeff Griffin, who had a friendship with Ed for decades, writes a masterful piece about the life and special charm of Ed Malzahn.
A talented inventor with a mechanical engineering degree from the nearby college he also loved (Oklahoma State University), Ed’s natural inclination to “tinker” led to groundbreaker products that forever changed the nature of the underground utility construction industry.
Ed took the family business and incorporated a more formal company, The Charles Machine Works, to shepherd the development and marketing of the industry’s first utility trencher. The popularity grew, other products were invented and The Charles Machine Works – better known for years as simply Ditch Witch – was off and growing.
The company rapidly evolved over the decades. With its development of smaller horizontal directional drilling machines, this revolutionary technology created yet another disruptive influence upon the underground utility construction industry and positioned CMW and Ditch Witch as a market leader in HDD.
What happens now to Ditch Witch and its new family of companies? It’s been no secret that for decades, mega companies have coveted CMW. It’s no easy task for family members to continue down the path of the founder. And big doesn’t always mean better.
I used to be a fan of Wal-Mart. Back in the 80s, I had the opportunity to interview the company founder, Sam Walton. While the products and life’s paths were very different, there were marked similarities between Sam Walton and Ed Malzahn. I found Sam charming and friendly with a singular vision for how to best serve consumers with a radically different kind of store. He had particular guidelines when selecting where a new Wal-Mart would be built, insisting that each store would be an outstanding community citizen that served local needs and took care of employees. Each store met his design criteria for always stocking common needs in a spacious and warm manner. Sam described to me in great detail his philosophies on retail marketing and serving communities.
We were supposed to talk for 15 minutes, but it was an hour and a half before his people finally dragged him out of the interview. We were both clearly having a great time just discussing business philosophy, people and community service.
When Sam Walton died, so did his vision of service and community first. His children inherited billions but the management of the company became cold, callous and strictly profit-driven. I don’t begrudge the company being successful, but I do resent how family members disregarded the dreams and vision of a great man.
That’s not to say companies can’t remain in the family and achieve tremendous success without sacrificing their souls. A great example is, ironically, Vermeer Corp., who is CMW’s principal competitor. Vermeer recently passed on the company’s top leadership to a third generation family member. Its succession planning was established long ago and has worked amazingly well.
In 2000, Ed’s granddaughter Tiffany Sewell-Howard, joined the company. In 2003, she became company president and Chief Executive Officer. Ed remained as chairman of the board and stayed active in the company until his death.
When The Charles Machine Works consisted primarily of Ditch Witch products, the company was largely limited to the medium to small equipment markets. Tiffany and her management team have foreseen growth opportunities through acquisition of complimentary companies in the underground market. Now, The Charles Machine Works is a much broader company with an equipment lineup matching market needs of all sizes, plus making strong inroads in the burgeoning rehabilitation market.
For those who knew Ed, perhaps one of the best ways to describe him in his latter days was simply “contented.” I think he was comfortable with his life accomplishments; that the future of The Charles Machine Works was in good hands with Tiffany and moving in a positive direction. When his beloved wife Mary passed away a few years ago, Ed was content to let life lead him where it willed.The mark of a great man is his legacy. Ed Malzahn started something quite remarkable. His granddaughter has proven to be a smart and savvy business woman. I know Ed was confident that Tiffany will continue the vision and build a grand legacy of her own.
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