Pierce Co. optimistic about future
Jonathan Knutson
The Forum - 07/03/1999

The best is yet to come for Fargo's 95-year-old Pierce Co., company officials say.

"This is a good business. Established. Loyal customers," says Rick Graalum, company president. "But we believe we can make it a bigger part of the community and the economy,"

He and Colin Kelly recently purchased The Pierce Co. 1019 1st Ave. N., and its AB Dick division, 2430 University Drive S., Fargo.

The Pierce Co. is a regional commercial printer, as well as a full-line office supply and equipment company.

The AB Dick division is changing its name to Pierce Plus. It will continue to be a copier dealership, as well as a full-line business support center. It will add a number of new services, including retail office supplies, laminating, binding, mailbox rentals, shipping and mail services.

The Pierce Co. does business in 13 states. Fargo-Moorhead accounts for between 50 percent and 60 percent of sales. The northern Red River Valley also accounts for a good chunk of sales. That's reflected in the company's plans to open a store in Grand Forks, N.D.

Graalum declined to give the company's annual sales, but said they're growing.

The Pierce Co. is a familiar name in area business circles.

It was founded in 1904 by Roy T. Porte. He later moved to Salt Lake City, where he helped to establish a leading trade publication for the printing industry.

Originally located on the 100 block of 8th Street South, the company in 1939 purchased, renovated and moved into the former Blue Valley Creamery building at 1019 First Ave. N.

Initially the company concentrated on commercial printing. It later branched out into office supplies and equipment.

Joseph A. Pierce, the company's namesake, took over the business in 1913 and served as its president until his death in 1933.

Subsequent presidents were L.W. Hamm, A.R. Otteson, Dale Olmstead and, most recently, Jerry Olmstead, from whom Graalum and Kelly bought the business.

Graalum has 16 years of experience in management and sales with White-Hall Robins Laboratories and spent the past one and a half years as vice president of sales and marketing for The Pierce Co.

"The challenge of operating a business is something I really enjoy: working with customers to meet their needs, helping employees - our co-owners here - earn their livelihood. You can't beat that," he says.

Kelly is executive vice president. He joined Pierce Co. in 1987 and has overseen the printing division for the past 10 years.

"Owning Pierce Co. was my dream," he says.

So he and Graalum, who are old friends, decided to buy the business when the opportunity arose.

Graalum is in charge of the sales and marketing side. Kelly is responsible for the printing end.

They're converting the business, which has 50 employees, into an ESOP (employee stock ownership plan) company.

"Colin and I believe very strongly that the employees are the company. This (the ESOP) is a way of motivating and rewarding them," Graalum says. "Our goal is providing the very best quality to customers, and you do that by having happy and motivated employees."

The company's immediate priority is beefing up its AB Dick location on South University Drive.

"We knew we can do a better job for the people in south Fargo," Graalum says. "That's why we're adding the services" at AB Dick.

Another goal is increasing sales to individuals.

Although area businesses generally are familiar with the Pierce Co. and what it has to offer, many individual consumers are not, Graalum says.

"We want to make residential customers more aware of us," he says.

Some experts predict a gloomy future for printing companies. The thinking is, the growing popularity of the Internet and electronic commerce will reduce the need for printed materials.

Graalum smiles when asked about those predictions. "We've been hearing about the 'paperless' society for quite a while. We haven't seen any sign of that here. There's been no slowdown in our business," he says.

He and Kelly are confident that the Pierce Co.'s best days are ahead.

"The company has been aggressive in the past, don't get me wrong," Kelly says. "But now, with employee ownership, we've entered a new stage. We're just very optimistic about our future."