Donahue Corporation celebrates 40 years years ago
By ROWENA PLETT
Staff reporter
The Donahue Corporation, Durham, is celebrating 40 years in business. An open house is planned from noon to 4 p.m. Saturday at the plant northeast of Durham on 290th Street.
Owner Jim Donahue is proud of the contributions his company has made to the economy of Marion County.
The company manufactures implement carriers as well as livestock and horse trailers. They are distributed and sold throughout the United States and in several neighboring countries.
Money from those sales is brought into the county economy.
"It is money the county would never see without such a business," Donahue said. "It rolls over five to eight times. It's a real benefit."
Donahue said he first got the idea for developing a farm implement carrier during long drives to and from Wichita, where he worked as a welder at Boeing.
He had noticed that farm equipment was getting bigger and bigger, and many implements were becoming too wide to be accommodated on county roads.
In the summer of 1962 his idea began to take shape. His trailer had a long, flat bed, a couple of sturdy wheels, plus a unique patented feature that permitted the bed to be pulled forward of the wheels and axle — flat on the ground — so machinery could be driven or towed onto it.
Once loaded, the bed could be backed up over the wheels and locked into position for transporting. "It was built to last," Donahue said.
Two men working nights and weekends in a converted lumber yard in downtown Durham built the first trailer.
"We were working on a good idea, building it with good materials, and backing it up with good service," Donahue said.
The carrier was sold to a local farmer for $125. Others were built and displayed at various farm shows. Farmer interest was great enough to encourage him to continue building the trailers.
Thus began a gradually expanding business that added more implements as time progressed. Trailers to carry swathers, combines, livestock, and grain were developed.
When the business outgrew the original building, another vacant building was acquired and more employees added. Eventually, it operated out of six facilities.
By December 1972, sales had increased to $2,125,000, and the business moved to a new shop a mile northeast of Durham on 290th Street. The 40,000 square foot structure permitted consolidation of all manufacturing activities under one roof.
Donahue noted that, because the manufacturing plant was located in a rural area, he wasn't able to take advantage of tax breaks from industrial revenue bonds, like other similar businesses enjoyed that were built within city limits.
However, when Leon Suderman was a county commissioner, he helped Donahue Corporation access a five-year tax-abatement program which gave tax breaks to businesses for purchasing new equipment and hiring new employees.
During the 1970s, Donahue did a lot of advertising using a well-known Wichita firm. He said it was expensive but it paid off with name recognition.
For several years, the company built equipment for John Deere and Allis Chalmers.
In May 1982 Donahue received the Kansas State Small Business Person of the Year Award.
A unique aspect of the business is the fact that Donahue stocks equipment at 60-70 dealerships and distributorships throughout the United States. At the present time, three drivers are employed full-time to deliver trailers, which belong to the company until they are sold.
"We own them, so we want them to get there in good shape," Donahue said.
According to Donahue, the benefit of the stocking arrangement is that it allows equipment to be transferred between dealers as needed instead of having to be directly delivered from the shop, saving on transportation costs.
Every year, Donahue exhibits equipment at the World Ag Expo in Tulare, Calif. He said it is the largest farm show in the world and used to be held in Paris. The California show has helped his company develop a good market on the west coast.
He exhibits at several other shows including the Denver Stock Show in Colorado, Husker Harvest Days in Nebraska, Ohio Science Review, and the Kansas State Fair.
Donahue credits his business with training several people who worked for him for 15-20 years or so, then left to establish similar businesses of their own. All are successful and bringing revenue into the county.
The manufacturing plant currently employees 30 people. Mike Stika, Burdick, is sales manager, and Cliff Bruce, Hillsboro, is salesman. Ray Remmers, Hillsboro, has been at the plant at least 15 years.
Others who have been employed more than 10 years are Richard Dirks, Tampa; James Riffel, Lincolnville; Mike Stika, Burdick; Mike Schwendiman, Marion; Phil Anguiano, Abilene; David Feeney, Hope; David Rudolph, Lincolnville; Ernie Stika, Tampa; and Jim Dush, Hillsboro.
Donahue's wife, Joan, has worked in the office for many years, although she took some time off when the couple's children were young.
In addition to working in the accounting department, she also is head cook and manager of Clover Cliff Bed and Breakfast, Elmdale.
Jim and Joan were in the class of 1951 at Durham High School and were married in 1954.
Those early years involved a lot of hard work. While working in Wichita, Donahue began Jim's Welding and Radiator Repair service in Durham. His wife did sewing and worked in the post office, during which time they had three sons and a daughter.
They picked the three-leaf clover as the logo for their new business because of their Irish background.
They have been married 48 years and have seven grandchildren.
Together with sons Dudley and Tim, they have a far-flung farm and ranch operation in Marion, Chase, and Morris counties.
Donahue said the business fits well with the agricultural enterprise because it provides necessary equipment for transporting machinery, grain, and cattle.
Speaking of his success in business, Donahue compares himself to a quarterback in the game of football.
"Someone has to lead the pack," he said, "but I don't want all the credit. It takes a lot of people working together to make it happen."
"He has a lot of determination," Joan said.
Donahue acknowledged that it would be difficult in the present economy to do what he did, citing increased government regulations and other changes.
"A lot of things fell into place and went our way," he added. "You have to have some of that, too."
His working philosophy is reflected in his attitude toward the future. Although headed toward age 70, he plans to remain at the helm of the business for years to come. The word "retirement" isn't in his vocabulary.
"I can't grasp that," he said.
