On Tuesday, Polaris CEO Michael Speetzen spoke to manufacturers and business leaders at the 2023 Manufacturer’s Summit hosted by the Minnesota Chamber of Commerce in Northeast Minneapolis. The conference served as a networking and learning opportunity for the manufacturing community and featured two learning sessions on automation and the new workforce landscape. This year’s summit concluded with a keynote presentation from Speetzen as Polaris continues to grow its name on the world market for powersports.

What started as a local company specializing in snowmobiles has become an industry leader with a diverse range of products and an international consumer base. Polaris is number one in the power sports market according to Speetzen, with nearly 30 brands in its portfolio. In 2022, the Medina-based business raked in $8.6 billion in total company sales with 15% year-over-year growth. Speetzen’s presentation at the summit gave attendees a look into the company’s strategies and keys to success when it comes to growing a business. Here are Speetzen’s four pieces of advice for business leaders and manufacturers hoping to build a successful company.

The role of innovation in driving growth

The CEO kicked off his presentation with a look at the growth of Polaris over the last 70 years. Behind the company’s rise to become a global leader in power sports manufacturing was one common theme: innovation. But Speetzen was quick to explain that innovation does not always have to be creating new products to see growth.

“Innovation can come in a lot of different ways,” he said. “It doesn’t mean we always have to come out with the next new vehicle, sometimes it can be innovation above and around the vehicle.”

Polaris is the creator of the snowmobile and deck boat categories within the power sports industry but has also played a leading role in refining powersports categories that already existed, according to Speetzen.

The four keys to success 

Speetzen laid out four elements of a business that are essential to successfully grow a company: employees, customers, communities, and suppliers/dealers. Investing in employees by providing generous benefits packages and bonuses, or by partnering with local high schools and universities to offer career development opportunities, is critical to the foundation of a business.

“It may be expensive, but it’s worth it,” Speetzen noted. But he also explained the growing role of automation in the future of manufacturing. “Where we can, we’ve automated,” he said.

Customer needs are another factor behind a company’s success. According to Speetzen, businesses succeed when they connect with their customers in meaningful ways so their products can evolve with their consumer base.

A company’s strategy should also account for the communities it is selling to. As Polaris globalized its consumer base, the products it sold had to adapt accordingly. According to him, the facility locations Polaris chooses are strategically chosen based on what products are most popular in those communities.

“If you look at Minnesota, everyone is boating and fishing. Not a bad market for us to sell boats in,” Speetzen explained.

Speetzen’s final category comes down to a company’s suppliers. Fostering meaningful relationships with suppliers plays a big role in the quality of the final product, said Speetzen. He advised leaders against pushing their suppliers too hard when it comes to getting the lowest prices, explaining such decisions ultimately sacrifice quality and reliability in the final product.

Bring your facilities to your consumers

As Polaris expanded beyond Minnesota, its manufacturing facilities expanded alongside it. Getting the production of the final product closer to the point of impact is something Polaris has doubled down on. But rather than sacrificing the company’s manufacturing presence in Minnesota, Polaris has simply expanded its facilities to international locations, including Poland, India, and Mexico, that have high demand for its products.

“We added manufacturing, we didn’t take away,” Speetzen said.

The dual benefit of sustainability

Speetzen’s presentation concluded with his perspective on the role of environmental sustainability in the world of manufacturing.

“Why wouldn’t we want to use less water in our factories, why wouldn’t we want to have more recyclable content?” he said. “These are all good things to do, and frankly, they save the company money. There’s a dual benefit.”

Using greener fuel alternatives and prioritizing environmental sustainability in a business model is not only better for the planet, but can ultimately produce more efficient and long-term success for the company as well.