Minnesota window-maker Marvin to share $20M in profit with employees

Marvin is sharing $20 million in profits with its employees, a 59% increase over payments made in 2022.

The move comes in a period of growth and investment for the Warroad-based window and door manufacturer, as the family-owned Marvin charts a new path for the future.

"There's a lot of investments going in there, hundreds of millions of dollars over over the next five years," said Paul Marvin, CEO since 2017.

Despite the disruptions of the pandemic and supply chain issues, the company has continued to grow in the past few years. Coming out of that hectic and confusing period, the family and company leaders started to put together long-term goals in 2022.

The plan focuses on foundational operational improvements, customer service and maintaining the family-run, employee-focused culture of the company.

"It turns out that a good employee value proposition is treating your employees well. Giving your employees a reason not just to join, but to stay. It's pretty powerful," Marvin said.

In a tight labor market in northern Minnesota and other states where the company has operations, Marvin said a focus on being an employer of choice is necessary in order to recruit and retain employees.

That includes the profit-sharing announced Thursday. It will go to 7,089 eligible employees, with some of the longest-tenured workers receiving as much as $6,400. Since the company started the profit-sharing plan in 1957, it has given away more than $395 million to employees.

Anderson Corp. in Bayport also announced profit-sharing this month, giving its 13,000 employees a total of $55.4 million, with some workers receiving as much as $4,400. That was up from $41.5 million in 2022.

The Marvin company also invested more in its employee health insurance plans to keep premiums the same as last year, despite rising care costs. Other benefits were also added, including a wellness day off and more leave benefits for new parents.

Marvin does not disclose financial results. Among its 7,500 employees in 11 states and Canada, more than 1,900 are in Warroad and 225 work at its marketing office in Eagan.

The pandemic laid bare some problems that the company needs to fix. For example, it needed to replace some of its IT components and upgrade its logistics and distribution systems. It also needed to add some smart automation to its operations.

One of the biggest investments is a new 400,000-square-foot factory in Kansas City.

Paul Marvin, who lives three blocks from the company's main plant in Warroad, is one of the fourth generation of family members running the 112-year-old company started by George Marvin.

If family members want to be an owner, they have to start working for the business by age 33.

Marvin family members aren't required to work in the business and they are encouraged to gain experience elsewhere. However, two members of the fifth generation are now working there, with about 40 more expected to join the company soon.

With the transition, the relatives realized they needed to codify what it means to be in the family business.

"We believe in active engaged ownership rather than passive investment," Paul Marvin said.

Still, previous generations of the family handled the business and family questions differently. Two years ago, the family decided to form the Owners Council, chaired by Paul Marvin's cousin, Christine Marvin. The council concentrates on leadership issues such as communication and education as it decides strategy and vision for the company.

The council has voted that keeping the business headquartered in Warroad and family-owned is best for long-term value.

"What ties us together as a family is the good of the business," he said. "We put the business first always."