Ponca City Entrepreneur Set To Compete for National Prize

Oklahoma Small Business Administration

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“My equipment at that time consisted of a tool box from Wal-Mart, a kitchen table and a vise — that’s it,” said Engster. “Because of my lack of equipment, I was forced to farm out much of my machinery and test my refurbished spindles only after they were installed back on the original pieces of equipment.”

After spending hours talking with potential customers, Mike and son, Stephan, realized they had made an impression when officials from Boeing in Wichita, Kan. came to visit.

“At the time, we were located in the Pioneer Tech incubator's huge warehouse-type room. We had not purchased hardly any equipment, so the room was nearly empty,” he said. “The Boeing officials didn’t know what to think of me. I had to think quickly about what to say. I asked them what they see when they go to their doctor’s office. Usually you just see a room, with a table and maybe a chair. But they put their trust in that doctor to take care of their health. Well, I told them to think of me as a spindle doctor.”

Boeing began sending work to Centerline after this meeting. Before using Mike for their spindle repairs, they were sending many of their machines overseas, causing months of downtime and loss of production. In addition, Mike was less expensive than many larger European engineering firms.

Through his struggles, Engster was able to generate $68,952 in sales the first six months of operation with a net income of $25,759. Employees consisted of him and his son, Stephan.

By December 1996, Centerline was a “seasoned” business with two and one-half years behind them. Mike had to start making preparations to exit the incubator program because his three years in the program would be up the following summer. Pioneer Bank and Trust, an Oklahoma SBA Preferred lender approached Engster. They were able to help him secure a $215,000 SB-guaranteed loan. Engster began construction on a new 5,400 square foot facility located directly across the street from the Pioneer Technology Center. By the time construction was complete in September 1997, the company employed 10 people with sales of $986,892.

Then, because of the rapid growth in sales and employees, Engster again needed to expand his facilities. In June 1999, Pioneer Bank and Trust made another loan to Mike to add 3,780 square feet as well as expand his parking lot by another 4,632 square feet.

Today, Engster is living the American dream with 23 employees and sales close to $3 million.