Local entrepreneur shining example of using talents to create value
Owatonna’s diversified industrial and commercial base of businesses includes more than 40 industries and 500 businesses attracting a skilled workforce. Whether those who work in Owatonna assemble goods, serve customers directly or start businesses, their contributions have helped Owatonna become a regional center in Southern Minnesota.
Tom Peterson, CEO and founder of Climate by Design International (CDI), has been a significant contributor to Owatonna’s economic vitality over the past five decades. He credits his success to his faith, a 48-year partnership with his wife Sue and the ability to pivot.
Tom said he took the Bible’s Parable of the Talents (Matthew 25:15-30) as instruction to let his talents shine and live generously. He expressed admiration for those who find success by applying their gifts to something that creates value and contribute to life and those around them, “By putting one foot in front of the other, you can influence thousands…a little bit at a time.”
Tom achieved this by identifying various needs for air control systems and developing equipment and processes to address them. CDI designs and manufactures custom desiccant dehumidifiers and critical process air handlers for lithium battery manufacturing, wastewater treatment plants, pharmaceutical, automotive, healthcare, aviation, food processing and other niches requiring dry air climates. You can find Tom’s thumbprint in several Owatonna buildings. When the historic Fire Hall needed an exhaust and makeup air system, CDI developed and donated a prototype along with equipment to clean and dry fire hoses. Amesbury Truth needed a direct gas-fired makeup air handler and CDI delivered. Owatonna’s ice rink uses CDI equipment (some also donated) to control moisture, prevent corrosion and minimize ice fog.
When asked if had considered building his business elsewhere, Tom’s answer was quick, “No, this is home.” He noted the positivity of the community and support from the business incubator and the City’s Tax Increment Financing program (TIF).
CDI was one of the first graduates of the City’s business incubator (Owatonna Area Business Development Center). Tom said renting office space at a discount during startup helped reduce costs and distractions. He appreciated the incubator board challenging his business plans and helping evaluate next steps. He expressed gratitude for those who gave their time to discuss options and develop strategies. From their office space in Merrill Hall and a truck parked in the lot, his company refined their model for success providing custom and standard computer-aided design (CAD) services.
Continued growth occurred by focusing on specific markets and customers with several product launches to scale the business. Rather than innovating a solution for each unique need, Tom standardized their approach in the desiccant market. Their solutions keep a broad range of items dry for an impressive client list including candy-making giant Mars, Incorporated. CDI developed a portable unit to dry out SpaceX before it launched. CDI equipment is used internationally in water-damage recovery due to floods or broken pipes. It accelerates the drying process and provides deep drying to prevent mold by using pressure to move the water. Tom emphasized that better understanding customers’ needs was critical for their business growth.
Since their early days in the incubator, CDI has grown into and out of several spaces. They began assembling products in a 14,500 square foot building on County Road 45 South. They moved into Owatonna’s Industrial Park at 2100 Park Drive. In December 2023, they relocated into a new 203,760-square-foot state-of the-art headquarters and manufacturing facility at 200 Festal Place NW. That move involved leveraging TIF which Tom said allowed the new building to make financial sense. He commented on the professionalism of the Opus Group and the City’s building inspections and stormwater management teams as the site was developed and the building took shape. He added that the CDI building will be here for a long time and so will the manufacturing professionals in it.
Just as he set out to do, by putting one foot in front of the other, Tom has added value for CDI employees, customers and the community. CDI’s success has attracted worldwide attention. 12 percent of its business is international. Tom is speaking at the International Institute of All-Natural Refrigeration about the science of moisture in the air. Modine, a global leader in thermal management technology and solutions, noticed CDI and acquired the company in July. Tom considers the acquisition as a new season. He said, while he will never totally disconnect from the company he founded, he is officially retired. Tom and Sue have committed to each other to not make any new commitments for six months and then to choose where they can continue bringing value to others, the community and to those who may want to learn from their experiences.
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