With a mission to “Build a Strong America”, MDU Resources Group provides essential products and services through its regulated energy delivery and construction materials and services business.
MDU was last on the Fortune 500 list in 2008 and 2009. Dave Goodin, MDU president and CEO, said the company is quite different today.
“In 2008 and 2009, we had a fairly successful oil and gas exploration business,” said Goodin.
Dave Goodin is President and CEO of MDU Resources. Special at the Forum
In 2016, the company sold its exploration business due to falling crude oil prices. However, it continues to distribute natural gas and electricity to 1.14 million customers in eight states.
Today, the majority of the company’s revenue comes from its successful divisions of building materials and construction services.
In 2020, MDU Resources reported revenues of $ 5.532 billion, up 16.3% from the previous year.
Of that amount, $ 1.18 billion came from its utilities group; $ 2.178 billion came from building materials; and $ 2.095 billion came from construction services.
MDU Resources Group’s building materials division was formed as part of a comprehensive acquisition strategy in 1992 when Goodin said his predecessors determined that coal mining revenues would soon be “stable at best. “. At the time, MDU had a mining company that supplied lignite from North Dakota to factories such as the Coyote station in Beulah, North Dakota, and the Big Stone power plant in South Dakota.
In 1992, MDU Resources acquired its first gravel pit in northern California.
“Fast forwarding 29 years, we are the sixth largest aggregate producer in the United States,” said Goodin. “We have 1.1 billion tonnes of aggregate reserves. We sell approximately 32 million tonnes of aggregate per year.”
Doing business as Knife River Corporation, the company extracts aggregate and markets crushed stone, sand, gravel and related building materials including ready-mixed concrete, cement, asphalt. , liquid asphalt and other value-added products in 15 western states.
Goodin said MDU’s construction services division was formed through an overall strategy of buying “mom and pop type businesses that supported the electrical industry.”
In an effort to further diversify operations, Goodin said MDU executives have questioned what they are already doing well and whether these services can be sold to other companies.
“We know how to build power lines. We know how to build pipelines. Can we do it for others? They asked.
In 1997, MDU acquired an Oregon-based exterior line construction company. Since then, they have acquired more than 25 companies in this construction services space, Goodin said.
Today, MDU Construction Services Group provides utility construction services specializing in the construction and maintenance of power and communication lines, gas pipelines, fire extinguishing systems and external lighting equipment. and road signs.
MDU also provides what Goodin describes as “internal electrical services” to large commercial and industrial sites, such as auto plants in the Midwest and casinos in Las Vegas.
The continued growth of e-commerce has also contributed to the success of MDU.
MDU provides electrical construction and maintenance services to search engine companies, social media sites, chipmakers, and server farms.
“This business has seen remarkable growth over the past five years, particularly last year” due to the coronavirus pandemic, Goodin said.
North Dakota Roots
Goodin said the company, which has been around since 1924, is delighted to announce its return to the Fortune 500 list.
“I think it’s a nice statement for North Dakota to have the headquarters of a Fortune 500 company,” he said. “We certainly appreciate the (climate) business support here in North Dakota.”
Goodin said he was especially proud that MDU was able to continue providing paychecks to nearly 16,000 employees at the height of construction last summer.
“We pride ourselves on the good work our people do, safely providing essential products and services that build a strong America,” said Goodin. “The continued growth of our business, recognized by our Fortune 500 listing, clearly demonstrates that our two-platform business model of delivering regulated energy and building materials and services is a successful formula.”
Neither Montana nor South Dakota is home to a 2021 Fortune 500 list company.
Eighteen Minnesota businesses are successful. These companies and their rank are:
- UnitedHealth Group, 5
- Target, 30
- Best buy, 66
- 3M, 96
- SCH, 103
- US Bancorp, 113
- General Mills, 169
- CH Robinson in the world, 191
- Earth O’Lakes, 219
- Ecolab, 237
- Ameriprise Financial, 253
- Xcel Energy, 272
- Hormel Foods, 317
- Prosperous financier for the Lutherans, 369.
- Polaris, 407
- Securian Financial Group, 421
- Tie, 479
- Patterson, 491
For the full list, visit fortune.com/fortune500/