3M

In 2002, we celebrated our 100th anniversary--a century of innovation. In the years since our successful introduction of the world's first waterproof sandpaper, we've evolved into a diversified technology company with leading positions in a broad range of important markets. Today, we produce thousands of innovative products and have companies in more than 60 countries. In extending our market reach, 3M's formula for success has remained the same: first, identify customer needs, and second, use 3M technology to pioneer innovative solutions to meet these needs. We've achieved consistent, profitable growth by creating innovative products, establishing strong relationships with customers and boosting operational efficiency. At the same time, we've created a culture that promotes employee pride and well-being, fosters integrity, and supports social and environmental responsibility. Five entrepreneurs found Minnesota Mining and Manufacturing Company (soon nicknamed 3M) in Two Harbors, Minnesota, to mine corundum and market it as an abrasive; the firm soon finds that its mineral holdings are not corundum, placing its future in jeopardy. St. Paul businessman Lucius Pond Ordway begins investing in the company, stabilizing its finances; a sandpaper factory is established in Duluth. William L. McKnight's long reign begins with his appointment as 3M general manager. The company introduces Wetordry sandpaper after purchasing the patent from the inventor. Foreign sales produce more than 50 percent of total sales for the first time. The divisions responsible for making floppy disks and other data-storage media are spun off into an independent firm called Imation Corporation; audio- and videotape operations are shuttered. Minnesota Mining and Manufacturing Company (soon nicknamed 3M) was formed in 1902 in Two Harbors, Minnesota, a thriving village on the shores of Lake Superior, by five entrepreneurs--a lawyer, a doctor, two railroad executives, and a butcher--in order to mine the rare mineral corundum and market it as an abrasive. The ill-planned venture--sparked by a flurry of other forms of mining operations in northeastern Minnesota--nearly bankrupted the company, for its mineral holdings turned out to be not corundum but low-grade anorthosite, a virtually useless igneous rock. This unsettling discovery (by whom or when is unclear) was never disclosed in the company records and, for whatever reason, did not deter the owners from establishing a sandpaper factory in Duluth, another more or less ill-fated scheme that placed the company further in jeopardy (3M faced a host of abrasives competitors in the East and was soon forced to import a garnet inferior to that owned by domestic manufacturers, which resulted in a lower quality product). Company headquarters were moved to Duluth in 1905. 3M continued to grow during World War II by concentrating on understanding its markets and finding a niche to fill, rather than shifting to making military goods, as many U.S. corporations did. Nevertheless, the war left 3M with a need to restructure and modernize, and not enough cash on hand to do so. To meet its building needs, in 1947 3M issued its first bond offerings. Its first public stock offering, coupled with its tremendous growth rate, attracted additional attention to 3M. Among the new products debuting in the immediate postwar period was Scotch magnetic audiotape, which was introduced in 1947. In 1949, when President McKnight became chairman of the board (with A.G. Bush also moving from daily operations to the boardroom), it marked the end of a tremendous era for 3M. Under McKnight, 3M had grown almost 20-fold. By its 50th year, it had surpassed the $100 million mark and was employing some 10,000 people. In the 1960s 3M embarked on another growth binge, doubling in size between 1963 and 1967 and becoming a billion-dollar company in the process. Existing product lines did well, and 3M's ventures into magnetic media provided excellent ret