LaVerne and Marlene Johnson started VernDale Products in 1958, using the Detroit-based manufacturing business to feed and employ their family. Today, a third generation of Johnsons is helping the company execute its biggest expansion in decades.
"It takes a big team to put it all together," says Dale Johnson, president of
VernDale Products. He adds that many members of the family had to dig deep to open a second plan on Detroit's west side.
VernDale Products makes roller dried milk powder, which is primarily used by premium chocolate manufacturers. The company was originally based near the Detroit River in the footprint of what is now the Renaissance Center. It’s currently based at 8445 Lyndon on the city's west side. It is currently working on building out a new facility at 18940 Weaver St., also on the city's west side, north of Joy Road between the Southfield Freeway and Evergreen Road.
VernDale is investing $20 million to build out the production facility with the help of a $436,000 business development incentive from the
Michigan Economic Development Corp and tax abatement from the city of Detroit. The new space will allow the company to keep up with its organic growth of 5-7 percent annually.
"The new plant will add about 60 percent of capacity," Johnson says. "There are times of the year when we definitely need it and sometimes we don’t need it."
VernDale Products, which was founded by Johnson’s parents, currently employs a handful of his siblings, in-laws, and other members of his extended family. The company has hired eight people over the last year, ranging from maintenance workers to management. It now employs 49 people who will work between both facilities when the second one opens later this month.
"The plant is highly integrated and automated," Johnson says. "The jobs we provide are good jobs. We need people who think, not just sweat."
Source: Dale Johnson, president of VernDale Products
Writer: Jon Zemke
Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.
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