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Company Profile
Sukup Manufacturing Co.

Sukup Manufacturing Company • 641-892-4222http://www.sukup.com

FAMILY-OWNED GRAIN BUSINESS CELEBRATES 50 YEARS

Reprinted from Grain Journal March/April 2013 Issue

When farmers Eugene and Mary Sukup started Sukup Manufacturing Company in Sheffield, IA in 1963, the intent wasn’t really to start a business but rather to solve problems with their first grain bin.

“Dad, a classic entrepreneur who can fix anything, started farming with his dad after high school, at about the time corn storage changed from ear corn to shelled corn,” says Charles Sukup, president of the company since 1995.

“After purchasing his first grain bin, he noticed that hot spots were forming and grain was beginning to spoil, so he invented and patented a stirring machine,which basically was an auger inserted into an electric drill that hung from the top of the bin. It worked. However, it wasn’t automatic and didn’t sell, so then Dad invented an automatic stirring machine. It took off, and the rest is history.”

Since 1963, Sukup Manufacturing has continually expanded its offerings to include products designed to make grain handling easier and better for customers, which has led to over 80 patents, nearly half attributed to Eugene Sukup. In 2006, he was inducted into the Iowa Inventors Hall of Fame. Sons Charles, president, and Steven, CFO and vice president, also hold several patents.

“It’s ironic that in 1963, Dad was awarded the Farm Bureau Outstanding Young Farmer Award for Franklin County, then last year he received the 2012 Distinguished Service to Agriculture Award from the Iowa Farm Bureau. Both were very special to him.”

50th Anniversary Year

Sukup Manufacturing Company has a variety of events planned throughout 2013 to celebrate its 50th year in business. A January luncheon for employees kicked off the celebration, at which founders Eugene and Mary Sukup shared stories about getting the business started. The couple was inducted into the Iowa Business Hall of Fame in December 2011.

An anniversary video can be viewed on the company’s website (www.sukup.com), plus a series of employee profiles called “People Behind the Product” is available online. A historical booklet and cookbook are being prepared; a group outing to an Iowa State football game is likely; and an end-of-the-year-banquet is scheduled.

Based on an online employee profile about truck driver Julie Eisentrager, that respect seems mutual. She says: “The thing about Eugene Sukup is he might have 500 employees, but I can guarantee you he knows every one of their names, and Steve and Charles are the same way. It’s a real perk to work for a company like that.”

Sheffield Location

Sukup Manufacturing Company began in a welding shop on the west side of Sheffield, then moved to its current site on the east side of town in 1969.

“We have 556,000 square feet under roof, almost 13 acres, housing the most advanced manufacturing equipment,” says Charles. “This year we’re building a 47,000-square foot office building. We plan to celebrate the end of our 50th anniversary year with a banquet held in the new space.

“The new building is under construction, and we are making most of the structural components ourselves. This fits with our philosophy that we don’t like to outsource, if we can make it ourselves.

“Our business is seasonal, so making our own components is important for being able to control the lead time and quality of products, plus it keeps our people busy year round.”

Accessories First, Then Bins

The company is unique in that it started making accessories, then added bins later.

“Other companies looked at bin accessories – fans, heaters, and floors – as afterthoughts, but we started with accessories making sure we had a full line of great products that provided the maximum results for customers,” says Charles.

“After observing that two bins on the same farm holding grain at the same moisture content would dry grain differently based solely on the make of the fan, we put a lot of emphasis on the airflow and design of our fans and heaters.

“In the 1960s, there were over 25 bin companies, but by 2000, that number had dropped to six or seven. For years, dealers had been asking us to add grain bins to our product line, and in 2001, we did.

“We got into the business when others had gotten out, but we are the only company that first developed accessories and then got into bins. It was a big switch for us, but it worked out well and has been very energizing for our dealers, employees, and customers.

“We sell our products in the United States, Canada, and 50 other countries. Although we’ve made international sales for a long time, our effectiveness in the foreign market really took off after we added grain bins and could offer the entire package to customers.

“Besides our manufacturing facility in Iowa, we also own six distribution centers throughout the Midwest – in South Dakota, Nebraska, Arkansas, Missouri, Illinois, and Ohio.”

Product Lines

“Grain bins and bin accessories make up the majority of our business,” says Charles. It is interesting to note that 80% of the products shown on the Sukup lot at the 2012 Farm Progress Show were not produced by the company 15 years ago. In fact, Sukup grew more than eight times between 2002 and 2012 and they don’t plan on slowing down.

“Material handling products including bucket elevators, conveyors and loop systems were added to the Sukup product line in 2010, “We have quickly gained market share and have doubled production capacity for the material handling products in order to meet demand,”says Charles.

“The company’s most recent product line addition is pre-engineered steel buildings. We got into making steel buildings because the backbone of our manufacturing is cutting, shaping, and forming steel. We had experience in making grain bins, which have a fair amount of structural work, and we had installed most of the buildings at our facilities ourselves, so it was a natural tie-in.”

In 2011, Sukup Manufacturing launched its Steel Buildings Division and has already manufactured clear-span buildings ranging in size from 2,000 to 110,000 square feet. In June 2012, the division received certification from the International Accreditation Service for meeting standards of the AC472 metal buildings program.

“The depth of the accreditation audit was extensive in verifying that we have the personnel, organization, procedures, and equipment to consistently produce high-quality pre-engineered metal buildings. It’s a great credit to our employees that we were able to pass the audit so soon after launching this new product line.

“The AC472 certification is very important in allowing us to bid on government and private projects that require certification, and it helps expedite the building approval process for contractors, architects, code officials, and building owners.”

More Than the Sukup Name

“When the family name is on the equipment and letterhead, it’s an honor but also quite an obligation,” says Charles. “We take it very seriously and aim to give the most value to our customers. We want to make things work faster and easier to support the agricultural community in feeding the world.

“Dad would always say that a year from now, the customer won’t remember how much they paid for something, but they will remember if it performed well and did what it was supposed to do.“

Eugene and Mary Sukup, who celebrated their 61st wedding anniversary in February 2013, are still active in the company, which is quite a family affair. Eugene serves as chairman of the board, and Mary continues her role as corporate secretary, a position she has held since the company was founded. Sons Charles and Steven lead the operational side of the business, and six members of the next generation work there, as well.

“Mom and Dad always worked as a team, and they still come in every day,” says Charles. “My brother and I both graduated from Iowa State University, and our skills complement each other. Among the third generation, three of Steven’s kids and two of his sons-in-law plus one of my sons work here. We hope the business stays in the family.”

AE50 Award Winners

Over the years, Sukup Manufacturing has been awarded thirteen AE50 Awards for their innovative products. These annual awards are presented by the American Society of Agricultural and Biological Engineers to recognize the top 50 innovations with potential for broad impact in the agricultural and food industries.

“We’re very proud and pleased to have won five AE50 Awards during the last two years,” says Charles. “The range of products recognized is indicative of the broad scope of our engineers and other employees, who are always looking for ways to improve safety, efficiency, and profitability in agriculture.”

In addition to the six earlier awards, the company was recognized in 2011 and 2012 for Single Phase Centrifugal Dryer, Grain Buster, Triangle Aeration, Modular Tower Dryer, and the Safe T Home.


About Sukup Manufacturing Company

Sheffield, IA
641-892-4222
http://www.sukup.com

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