Underground Construction - October 2017 - 49

best within the structure of the family," Johnson said. "It is our role to ensure each company
has the opportunities and resources to be successful and keep it challenged, and by providing
opportunities for our companies, to work together to benefit our customers.
"It also is sharing technologies across company lines, or putting together equipment packages, and finding answers for equipment life-cycle
needs, such as parts or trade-in deals. Our companies are capable of doing more because they
are part of this family, with a shared common
goal: underground pipe and cable construction."

Surviving hard times
At the end of the 20th Century, Ditch Witch
was firmly established as a leading manufacturer of underground construction equipment offering not only trenchers, but HDD equipment,
electronic tracking systems, vibratory plows,
vacuum excavators, compact excavators and
skid-steer loaders, and support equipment and
tools for the complete product line.
Ditch Witch had pioneered development
of vibratory plowing and multi-use equipment employing specialized, interchangeable
attachments. In 1989, Ditch Witch brought to
the ICUEE show the first compact horizontal
directional drill (HDD) specifically designed
for utility work, and led in the development
of HDD technology, which became a primary
and often-preferred underground construction
method.
HDD sales peaked in 2000. Then came the
telecom "bust." Contractor workloads dropped
and demand for new equipment all but disappeared.
For the first time in its history, CMW posted
a loss and laid off employees. Without telecom
work, contractors struggled to find new sources
for directional drilling; many went out of business, as did some industry suppliers. A glut of
quality, used directional drills flooded the market with most offered at pennies on the dollar.
Before the industry could recover, another
recession came in 2008.
"These were very diﬃcult times for all of us,"
said Johnson, "times that Charles Machine
Works and the Perry community did not soon
forget. But the situation also made evident the
need to diversify.
"The whole industry had been so enamored
with telecom, we knew we had to look for ways
to diversify, especially with HDD. Many of our
customers had the same issues, and they helped
by beginning to do other work with their HDD
equipment. Today, drills do many different
types of work, not just telecom.
"We looked at some different things and
tried some that didn't work out, but, at the end
of the day, we followed our hearts and our passion - underground construction."
October 2017 Underground Construction

Reflecting on that period, Johnson believes
the keys to getting through those challenging
times were a committed and stable ownership, a strong balance sheet and a dedicated
workforce.
"We protected the distribution channel, continued to invest in new product development,
and never doubted we would come out the other side," he said.
After the most diﬃcult period in the history
of CMW and Ditch Witch, expansion began in
2008 with the DW/TXS joint venture in China.

All about family
When Rick Johnson talks about Charles Machine Works, the word "family" occurs often.
From its origins as a blacksmith shop,
growing to a machine shop that served agriculture and oil industry customers, and then
to a modern manufacturing company, CMW
has been owned by the Malzahn family and its
employees.
Ed Malzahn, grandson of the blacksmith
who started the business before Oklahoma
became a state, designed and built the world's

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Underground Construction - October 2017

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