Hoffmann, Inc. • 563-263-4733 • http://www.hoffmanninc.com
Reprinted from Grain Journal November/December 2014 Issue
When a company has been in business for a century, its past is intrinsically tied to its future – especially when the family that started the business is still leading it four generations later. For Muscatine, IA-based, design-build contractor Hoffmann, Inc., the last 100 years have provided a solid foundation upon which to continue operating and growing a highly successful business in the design and construction of cast-in-place, reinforced concrete storage silos to meet the increasing demands of the grain industry. And by diversifying its portfolio of products into other industries, Hoffmann is poised to continue its legacy well into the future.
But history rarely unfolds in a straight line, and only hindsight can reveal how serendipitous the path to success has been.
History and Diversity
The company’s heritage can be traced back to its founder, S.J. Hoffmann, who was among three stakeholders in 1914 that established the Cement Stave Silo Co. of Peoria, IL. Years later, capitalizing on the construction boom following World War II, he formed S.J. Hoffmann & Sons in Cissna Park, IL with his two sons, Wayne and Kenneth, and son-in-law, Bill Reed. He likely had no idea that his family-owned business and entrepreneurial spirit would still be alive and well today.
Likewise, Hoffmann’s grandson and current company CEO Larry Emmert was probably unaware that his leadership of the company through the farm crisis of the late 1970s would invariably contribute to the company’s survival and success nearly 40 years later.
“The stave silo and the farm silo business is where we started years ago – my grandfather did that,” explains Emmert, who started working for his grandfather when he was 14 years old. “Then, when the farm crisis occurred in the late 70s and early 80s, I made the mistake of thinking the farm silo business was going to just keep rolling on and on and on, and it didn’t. So we decided as a company that we had to change course.”
As it turns out, that mid-course correction proved to be a critical move in the company’s history. Emmert purchased some used jumpform equipment that enabled the company to construct larger-diameter concrete silos capable of handling increased volumes of grain. It was this move that transitioned the company from building small farm silos to larger commercial storage for commercial grain handlers.
Today, Hoffmann silos are used beyond commercial grain storage to store fly and bed ash, coal, dry distillers grain, limestone, sand and gravel, wood waste, and many other products. Since the early 1990s, the company has diversified further with the addition of a 70,000-square-foot steel fabrication facility, a material handling division, and most recently, Airoflex hydraulic truck dumping systems.
Diversification proved to be so vital to the company’s longevity and success, Emmert says, “if it weren’t for that, we probably wouldn’t be here.”
Hindsight is 20/20, but it takes vision and faith in the quality of your products to diversify successfully.
“Larry’s business philosophy has always been one of diversity,” explains Andy Emmert, Larry’s son, co-owner and vice president at Hoffmann. “That’s why we have four divisions to our company. But really, the thing that our dad engrained in [my sister] Kris and me is to always deliver a quality product. So we try to look at each step of the process – from sales to layout for our customers through the design process and into construction—and ask, ‘How can we bring a quality product that’s going to stand the test of time?’”
Andy Emmert’s sister, Kristin S. c Lee, also co-owner and vice president at Hoffmann, echoes her brother’s comments and notes that while the company’s commitment to quality is a key factor in its success, Hoffmann’s growth ultimately stems from its roots in the grain industry.
“My father really was adaptable and could see ahead, and one of the unique things that the grain industry did for Hoffmann was it placed us in other industries like power, ethanol, and biofuels which all stemmed from the grain market,” she says. “There were some grain processors that were deciding to produce their own power, and so they began building silos to store different products like coal, ash, and lime. We also built concrete chimneys for them. So those relationships in the grain industry shot us ahead into other markets.”
Although Hoffmann has expanded into other industries, concrete storage solutions for the grain industry is still the lifeblood of the business, which according to Paul Reed, also a grandson of S.J. Hoffmann and current sales manager for silos and chimneys, constitutes a large portion of the company’s silo sales.
“That varies year to year, but in the past three or four years, it’s probably been close to 90% of silo sales,” says Reed. “Grain storage is a big portion of our company sales, and we’re located in the grain belt, so that’s always been our bread and butter.”
Increasing Capacity to Meet Demand
Another factor contributing to the company’s growth has been the increasing demand for rail shipping. Rail transportation has been a game changer, according to Al Steiner, operations manager.
“A lot of what we’ve experienced has been driven by the rail. The railroads have really changed the operations of many coops,” says Steiner.
“Unit trains have increased over the last several years to where a coop is typically required to load 120 cars in less than 24 hours. They’ve got to have a big volume of grain available to load out quickly.”
As a result, grain handlers need increasingly larger-capacity storage units to house crops, which is where Hoffmann comes in. In fact, it was the first company to design and build 110-foot-diameter jumpform silos, which has given Hoffmann, Inc. a competitive edge, as grain yields have continued to increase, says Andy.
“This is significant, because steel tanks cannot handle the intense flow of grain that’s being loaded and unloaded during high-speed rail-loading operations,” says Reed. He explains that one of the main advantages of concrete silos is they are designed with a side discharge that enables grain unloading as high as 60,000 bph, which simply isn’t possible with steel tanks. “It makes for an easier operation for loading the trains, which is a huge advantage, because you don’t have to mechanically unload the silo,” Reed says.
Keeping It All In-House
Hoffmann, Inc. also prides itself in the fact that it offers in-house engineering and steel fabrication, which complements its construction capabilities. With more than 100 employees on staff, Lee notes that the company can offer quick design changes and have custom-made components delivered and installed quickly with little impact to schedule. While other contractors may have to outsource and can be subject to lengthy lead times, Hoffmann provides both a full-time construction and project manager to oversee its construction team, materials, subcontractors, schedule, and communication with customers.
Because the company understands the demands on elevator managers and grain buyers, it makes every effort to handle project details effectively and efficiently from the beginning through project completion, which is a big advantage for its customers – and that’s who Hoffmann is in the business to serve.
“What I like to stress to our people is that the relationship with the customer is absolutely essential,” says Steiner. “Strong communication and developing relationships is a critical piece in delivering a quality product in a timely fashion. I try to instill in them pride in what they do, and most importantly, that they are guests in the areas and the communities that they’re working in, and that they treat our customers, business owners and people in the area with respect.”
Given the fact that nearly 50% of the company’s business comes from repeat customers, it’s clear that Hoffmann’s employees place a high value on customer relationships – some of which span more than 30 years. However, according to Andy, that’s becoming increasingly difficult to do, as the industry continues consolidating.
“Those decision makers change so quickly – that’s just the modern world; those relationship-based opportunities just aren’t there like they used to be. So we appreciate those customers who continue to come back to us,” he says.
At the end of the day, however, the company’s strategy for longevity and success is fairly simple: offer quality products at a good price, deliver on time, and treat customers with respect. With those clear goals in mind, it’s not hard to see how Hoffmann, Inc. has come this far – and there’s no end in sight.
