Grain bins, pre-engineered metal buildings, and conveyor systems are part of the Sukup product lines.
Eighty percent of the products made by Sukup Manufacturing Co. in Sheffield, Iowa, were not part of the product line less than 20 years ago. The company’s focus for its first 40 years was on grain stirring and drying machines, which introduce the right mix of air and moisture to stored grain to prevent spoilage caused by heat trapped in air pockets, and commercial and on-farm grain bins.
A dip in the agricultural market in 2000 caused the company to rethink and expand its offerings and double down on new product development. Customers and dealers were key in determining what new products would carry the Sukup name.
Material handling equipment was chosen as a good companion to join the grain dryers and bins. Bucket elevators, chain loop conveyors, and double-run conveyors were added to the product mix to move grain. A full line of accessories, including centrifugal and axial fans and heaters, pneumatic systems, and a variety of unloading equipment, followed to make the company a one-stop shop for material handling needs.
Pre-engineered metal buildings started flowing off the production line in 2009. About a year later highly modified grain bins morphed into the Safe T Home®, which provides safe, affordable housing in international disaster areas and where none is otherwise available. The homes were developed in response to the 2010 Haiti earthquake. About 200 of them protected Haitians during Hurricane Matthew in 2016.
“Customers and their needs change, and a company has to change with them to stay successful,” said CFO Steve Sukup. “For example, our farmers and ranchers have gotten bigger. They are looking for 80- by 120-foot steel buildings, or even larger, for their machinery. So, we added metal buildings to our products. The largest we’ve built to date is a 150- by 250-ft. clear span building so one of our customers can spread out his 48-row planter and check it out before the season.
“The material handling and the structural steel products have been a great match for our dealers. They are used to putting up grain bins and grain storage projects, so they already had the expertise that is needed,” Sukup explained.
“We have grown eight times larger, 800 percent, since 2000. Our original bin and dryer product lines now account for about 20 percent of what we make. New product development, along with the expansion of what we were already doing, is driving our growth,” he said. “A company has to control its own destiny—take the initiative to grab on to something new and do something different. We developed new products, entered new markets, and it’s worked.”
Office, manufacturing, and warehouse space at Sukup’s Sheffield location covers 650,000 square feet. Of that, 200,000 sq. ft. has been added in the last five years. With the floor space of the company’s distribution centers added in, the number for under-roof square feet jumps to about 1.1 million. Its more than 600 employees make the company one of north-central Iowa’s largest employers and the largest family-owned grain bin manufacturer.
Sukup products are delivered to farmers and commercial grain handling, storage, and warehousing companies in 81 countries worldwide. The international market accounts for about 18 percent of total business.
Six distribution centers are located across America’s heartland in Arcola, Ill.; Aurora, Neb.; Cameron, Mo.; Defiance, Ohio; Jonesboro, Ark.; and Watertown, S.D. Distribution centers in Denmark and Ukraine serve the European market.
Steve and his brother Charles, who serves as company president, began their metal fabricating careers when they were still attending grade school. They were called on to assist in the weld shop established by their parents, Eugene and Mary, in 1963.
Eugene shifted his attention from his farm in West Fork Township, Iowa, about six miles from Sheffield, to begin manufacturing the Stirway stirring auger that he had developed to keep grain fresh. That was the first of the company’s trademarked products to make grain production more efficient for farmers. The company now holds 80 patents and a number of trademarks—the majority of them acquired since 2000.
After 32 years, in 1995 Eugene shifted the responsibilities of company president to Charles but remained active as chairman of the board of directors until his death this past July. Steve has served in the CFO capacity, as well as vice president of manufacturing, since 1995. Increasing production efficiencies through adopting new technologies like lasers and robots is the primary goal of his vice president position.
“When I started in this business it was my dad, my brother, and me. By the sixth grade I could weld and run a torch,” Steve said. “I’ve always enjoyed manufacturing—seeing raw material turn into a nice, finished product.” A degree in industrial engineering from Iowa State University added formal education to Steve’s in-shop experience.
Today the third generation is involved in leadership roles in the rapidly growing company. Steve’s daughter, Emily Schmitt, is general counsel. Her husband Andy Schmitt is the supply chain manager. Matt Koch, married to Steve’s other daughter, Crystal, is one of the electrical engineers in charge of dryer controls and communications. Charles’ son, Andrew, contributes his fabricating skills in the shop. And there are hopes that the fourth generation will come onboard. “All of my five grandkids stop in and see their parents and grandparents enjoying their work,” said Steve.
Quality structural steel components are critical to effectively and efficiently erecting secure metal buildings and the grain bins that have been built with anywhere from a 15- to a 60-ft. diameter and three to 12 rings.
An extra-large bin was engineered and constructed to accommodate 2,000 bushels of grain. Sukup said that getting into the steel building market gave the company additional capabilities that also are used to produce grain bins.
Most products require some level of customization. “Twenty years ago, a company like ours would try to make a standard product. Now almost everything is customized by zip code because of wind and snow loads. Grain bins are customized for site-specific items for things like loading and unloading,” Steve said.
“Every project goes through engineering and approval processes. It’s not a pull-it-off-the-shelf situation. We work with our customers and our dealers on the orders, approvals, drawings, and permits before we get out the anchor bolt layouts and start a manufacturing process.”
Equipment under the Sheffield plant roof fabricates about a million pounds of steel a week. Thirty-five percent of that steel becomes structural components. Accuracy, held to 0.010 inch, is important to ensure easy fit-up and quick field installation.
Fabricating and machining capabilities include sawing, punching, submerged arc and robotic welding, stamping, roll forming, plasma and laser cutting, CNC milling and turning, and assembly. The steel being processed ranges from 65,000 pounds per square inch (PSI) for bin sidewalls and G115 galvanized steel for the bin roofs to I-beams for structural support.
Structural components that are part of the pre-engineered metal buildings and the structures that surround the grain bins, particularly those involved in highly complex projects like the 100,000-bushel hopper grain bins, pass through one of seven Peddinghaus CNC lines, which include two PCD drill/saw tandem lines, an HSFDB-2500 plate line, and two AFPS-643/Q angle lines.
The addition of robotic welding became a game-changer for the company. “We have 20 welding robot cells. Since we bought the first robotic cell, we have tripled our employment. These cells help us in our goal of being more efficient and quality-consistent. Bringing in automation just makes production better, and it helps you develop more markets,” said Steve.
One of those new markets was for the Safe T Home. A modified grain bin design provides a hurricane-, earthquake-, fire-, termite-, and machete-proof structure. Each home has 254 sq. ft. of floor space plus a 125-sq.-ft. loft that brings usable interior space to 379 sq. ft. The homes are made from 90 percent recyclable materials. Construction from 20-gauge galvanized steel contributes to their 75-year life expectancy.
Since their introduction, about 300 Safe T Homes have been delivered to Haiti. In 2016 when Hurricane Matthew hit, their round shape and solid construction protected up to 50 people each from the six hours of 145-mile-per-hour winds. Every Safe T Home came through the hurricane without significant damage. Only about 10 percent of the standard homes in the hurricane’s path survived without a large amount of destruction.
Less developed countries such as Haiti, Kenya, Uganda, and Peru provide the market for these structures. Cost is low, about $7,000 each including delivery, and they can be erected in one day. Standing 13.5 ft. from bottom to roof peak, with 8-ft. sidewalls and an 18-ft. diameter, they have housed families, medical clinics, schools, orphanages, and a refugee camp. The movable units are shipped in quantities of 10.
Airplane hangars comprise another new product line since bringing metal building design and construction into the shop. Steve and his wife designed, manufactured, and erected their own unique aircraft hangar, which led to a recognized Sukup product.
“I’ve always liked the curved, aeronautical look,” Steve said. “And we wanted to give the hangar some natural lighting, so we built some windows into the roof. When one of our dealers ordered a building for his own use, he requested a similar curved roof and word spread. Since then I’ve sold a number of these structures. It’s become a nice, signature look.”
That look got attention beyond the aircraft market. A movie company from New York approached Sukup when it was searching for a site to use while shooting footage for an agricultural film. “We set it up as a movie site for them. I got a director’s chair, but they didn’t put me in front of the camera,” Steve quipped.
Are more new products in the pipeline for the largest family-owned grain bin and storage, material handling, and metal building company?
“We’ll keep trying. We work closely with our dealer organizations to maintain direct customer contact, so we know what our customers need,” Steve said. “Developing new products is like baseball: You get a few hits and a few misses. But we’ve got a great workforce to help us take those swings. Innovation is inGRAINed here at Sukup.”
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Post time: Jul-24-2020