Heartland Business Bank

Aug 28, 2001

John Besse -- Manufacturing Entrepreneur of the Year

BESSE RECEIVES ENTREPRENEUR OF THE YEAR AWARD

John D. Besse, founder of the Besse Products Group was awarded the prestigious 2001 Ernst & Young Entrepreneur of the Year Award in the manufacturing sector for the Wisconsin and Upper Michigan Region at an award ceremony in Milwaukee on June 21.

The Entrepreneur of the Year Award program was created to recognize outstanding entrepreneurs whose achievements place them among the country's leaders in business. The program was first held in Milwaukee and was inspired by the professional services firm of Ernst & Young LLP. The program has since grown to include 46 regional programs in the United States and similar programs in over 18 foreign countries.

As the award winner for the region, John Besse is an automatic finalist in the 2001 National Entrepreneur of the Year Award. The 2001 national awards will be held in Palm Springs, California in November. Jay Leno, host of The Tonight Show will be Master of Ceremonies for the event.

Besse was recognized for his life long achievement in the manufacturing sector. After earning his Masters Degree in Forestry from North Carolina State University, his early career in the forest industry included work as a logging superintendent for Roddis Lumber & Veneer Co. of Sault Ste Marie, Vice President and General Manager of Canadian and Vermont Operations for Weyerhaeuser Canada Ltd, and Executive vice President and General Manager for Indianhead Plywood of Vermont.

In September of 1966, Besse founded Northern Michigan Veneers in Gladstone with 12 employees. Since that time, the company has grown to provide over 1100 jobs at its 7 veneer mills and 4 sawmills in Michigan, Wisconsin, and Indiana and its corporate office in Gladstone. The company maintains sales offices in Michigan, Washington, Wisconsin, Alabama, Georgia, Ontario and Quebec with sales of hardwood veneer, specialty plywood and lumber expected to reach $150 million in 2001. The company owns over 1 million square feet of manufacturing and warehouse spaces in 6 states.

Kevin Tenpas, President of Heartland Business Bank nominated Besse for the award and commented, ÒJohn Besse embodies what entrepreneurship is all about and is truly deserving of this award. His management expertise attributed to the turnaround of at least two companies that were on the verge of extinction when John acquired them. He has successfully managed Besse Forest Products Group for many years, creating jobs and stimulating economic growth in small communities.Ó Heartland Business Bank is a full service bank that specializes in the needs of small to medium size businesses throughout Wisconsin, Michigan, Illinois and Minnesota.

Besse's award nomination cited his business achievements, management philosophy, and service to the community.

Since 1966, John Besse has guided Besse Forest Products Group through a period of sustained growth. The group has acquired 9 companies some of which were either closed or struggling financially. By implementing production changes and sound capital investments, each company within the group has improved production capacity, increased sales and provided additional jobs in the local community.

Besse Forest Products continues to grow with the founding of the group's 11th company, Besse Products Canada, Inc. in the June of this year. In Delta County, the company is planning to expand Northern Michigan Veneers with the construction of an additional 27,000 square foot warehouse in 2001.

Besse credits much of his success to his strong and experienced management team and the dedication of his employees. Greg Besse - Executive Vice President, Marc Lee - Procurement Manager, Jim Vaughn - Sales Manager, and Greg Yagodzinski - General Manager of Escanaba Lumber are each 3rd generation veneer and lumber producers. Many of Besse's employees have been with the company for 20-30 years.

John Besse has been a Northern Wisconsin and Upper Peninsula resident for most of his life and is a strong believer in community involvement and philanthropy. He is a life long member of the Elks and Knights of Columbus and has held a number of director positions throughout the Upper Peninsula. He is a major contributor to the United Way of Delta County, St. Francis Hospital, the Bonifas Center, Michigan Technological University, and Northern Michigan University. Besse is also an active supporter of local youth activities including scouting, little league and boys and girls athletic programs.

Besse states his decision to locate his companies in Wisconsin and the Upper Peninsula was strongly influenced by the work ethic of the local employees and the quality of life that the area provides.

The company owns and manages over 10,000 acres of forestland in Michigan and Wisconsin and employs 18 degreed foresters from New York to Michigan. Company foresters annually purchase over 39 million board feet of cut logs, over 8 million feet of standing timber, and 57,000 cords of pulpwood from private and public sales. In 1993 Besse purchased 25 specially designed and equipped rail cars to transport random length logs. This innovation allowed the company to increase the area from which it draws raw material while cutting transportation costs by as much as 60% on most long distance hauls. Besse practices sustained yield forestry in its managed land, which is open to the public for hunting and fishing.

Recognizing the importance of a safe work environment, Besse concentrated on improving the safety records of all his plants. Three of Besse's mills have recently been recognized by federal and state officials for their successful safety programs. The number of work related injuries in Besse plants has decreased every year for the past 4 years.

Besse Forest Products Group is one of the largest family owned businesses in Northern Wisconsin and the Upper Peninsula. The company is also one of North America's leading producers of Birds Eye Maple, hardwood veneer and lumber.

Other winners of this year's Entrepreneur of the Year award included Samuel C. Johnson, chairman emeritus of S.C. Johnson & Son, Inc., Johnson's Wax; Ronald Rezetko, chairman and chief executive officer of Batteries Plus LLC; Jack Lund, president and CEO, YMCA of Metropolitan Milwaukee; Ralph Kauten, president of PanVera Corporation; and John Noel, president and CEO of Noel Group.