Tower maker scaled to new heights with defence contract

Derrick Hawboldt was happy for many years with gradual, steady growth at his company, Northern Towers Industries.

The Edson, Alberta-based business, 200 km west of Edmonton, is Canada’s only maker of mobile heavy duty communications towers. They can be used to mount a wide range of equipment from cell phone communications to security and lighting.

The towers, up to 40 metres tall, can be airlifted to remote sites and quickly installed or dismantled without needing a concrete footing. They’re built sturdy for Canadian conditions, including -50 C temperatures and up to 120 km/h wind gusts depending on loading.

Built Canadian tough

“I wouldn’t have to build them as redundant as I do if I wanted to send the towers only to the southern latitudes,” Hawboldt says. “All my wire is heavier, our welding is top quality and done by journey people or apprentices. We’re kind of in a niche market.”

Northern Towers supplied mainly large Canadian telecommunications companies until 2024, when it came to the attention of a U.S. organisation. The company’s highly rugged towers were well suited for military users, who need far more robust equipment than civilian customers require.

“We knew we had the right product for them,” Hawboldt says. “If it works in the Canadian climate, it works anywhere.”

Development in the defence market led to rapid growth

The U.S. interest evolved into a large order for 35 towers. Northern Towers had to expand quickly to make the units. New personnel and equipment were needed. The tower design had to be adapted for military needs, including the ability to be airlifted in a C-130 transport plane.

Hawboldt turned to BDC for advice to navigate the rapid expansion. “I wanted expertise on how to expand manageably. I come from the generation where you don’t spend it before you got it,” he says.

“We were controlling our growth very slowly for a long time to make sure we maintained our quality and standing and that we grew within our means.”

Advice led to expansion plan

Now, Hawboldt has to double his workforce in a short timeframe. He was concerned about the impact on the company’s finances and operations. “You can throw a lot of money at systems that you need to move forward, and it can go very quickly,” he says.

BDC helped Hawboldt create a plan to expand and handle the order. This included:

• Meetings to map out the company’s process and identify potential improvements.
• Steps to boost internal communications and operational efficiency.
• Advice to choose software to enhance the company’s customer relationship management.

Productivity tripled

BDC’s support had a positive impact. Northern Towers cut the time it takes to make a tower from two weeks to three and a half days. Importantly, the towers’ high quality was maintained.

“We shocked our American customer by completing the contract about six weeks early,” Hawboldt says. “They were extremely surprised and were able to move their plans forward by two months.”

The adapted tower design was also a big hit. “It’s the only mobile tower that fits on a C-130 and is fully deployable—meaning you don’t have to put anything together when it’s pulled out of the plane. It can be immediately deployed.”

“The greatest thing ever”

“The customer contacts me weekly and just thinks we’re the greatest thing ever. They were amazed at the quality. They’ve said there will be more mobile tower purchases coming down the line,” Hawboldt says.

As the company ramped up to complete the U.S. order, the Canadian government decided to increase military spending. This led to sales of the first two towers to Canada’s military. It was a proud moment for Hawboldt and his family.

His father served in the Canadian military for over 30 years, retiring as a company sergeant major in an artillery regiment. “That’s how I got the radio bug—from my father,” he says. “They had military radios on base that were on ham frequencies. I’ve been a ham operator since I was a kid.”

“Dad, it’s finally happened”

When he delivered his first Canadian military orders—again ahead of schedule, as well as under budget—he sent a photo of the towers to his father as a Father’s Day card. “Dad, it’s finally happened,” Humboldt said. “It’s my first sale to the Canadian Armed Forces.” 

His father told him how proud he was. “It was a touching and very proud moment in my family to sell this to the Canadian military,” Hawboldt says.

“They said they love them. We showed the military how quickly we can build them, their quality and how useful they are.”

Adaptations required for military

He believes sales will triple in the short term. “I expect many more sales to the Canadian Armed Forces as they get the personnel trained,” he says. “There’s a need for many more of these units.”

Adding military customers has required adaptation. This includes:

• modifying products to military needs and specifications
• learning about the complexities of military procurement
• acquiring certifications

Northern Towers is now innovating new versions of its towers and pursuing customers outside North America.

BDC “extremely positive experience”

Hawboldt has also engaged BDC for a second advisory mandate to help acquire ISO 9001:2015 quality management certification.

“Working with BDC been an extremely positive experience,” he says. “The team there is very personable, easy to reach and full of solid advice.”

“They’re also looking out for Canadian business, which means they're supporting people here in my hometown. Their support is feeding the families that work for me. They get that.”

Next step

Find out how BDC can help you grow your business in the defence sector through its Defence Platform.