In the midst of this country’s worst
economic downturn since the Great Depression, agriculture
continues to do better than most segments of the economy.
A number of expansion projects at Kleine Equipment is an
example of the continuing strength of agri-business.
“Agriculture in the Midwest is very stable and
contributes a lot to our local economy and it’s still
thriving,” said Mark Kleine, owner of the John Deere
dealership. Based in Galesburg, Kleine Equipment also has
locations in Monmouth, Aledo, Brimfield, Kewanee and
Bradford.
How important is agriculture to the economy? The
Agriculture Council of America provides a snapshot:
Agriculture generates 20 percent of the U.S. Gross
Domestic Product. Meanwhile, the U.S. exports $49.1
billion in agriculture products and imports $37.5 billion
in farm products, for a net trade balance of $11.6
billion. The agricultural industry employs 20 percent of
America’s workforce, which equals 21 million people.
Kleine Equipment has 100-110 full- and part-time
employees, with a payroll expected to be about $5 million
this year. Sales in 2008 were about $85 million.
John Deere Place
The company is getting ready to open its John Deere Place
dealership in Brimfield. Kleine said the hope is the
estimated 31,000-square-foot facility will open by March
15. It replaces a “40-year-old-plus” building in
Brimfield and will be just the fifth John Deere Place in
Illinois. The company describes the concept as an attempt
to bridge the gap between a traditional implement dealer
and a 21st century retail store by tapping into the
“hobby farmer” segment of the population.
Kleine said John Deere apparel and a large selection of
lawn and garden tractors are examples of how the company
hopes to do that. He said the Brimfield location is
designed to draw more business out of the growing Peoria
market, especially the northern part of the metro area.
“Basically it’s a style that John Deere is trying to
get its dealers to buy into to make it more inviting to
the retail customer,” Kleine said.
In addition, the 18,000-square-foot service shop is meant
to handle farm equipment that continues to become more and
more massive.
“We just didn’t have the facilities to handle some of
that equipment,” Kleine said.
Growth in Galesburg
Kleine’s also recently built a training center in
Galesburg “for both customer and employee training.”
It will be used for training seminars, many of which will
come over the Internet. Kleine said the increasing use of
machinery the used global-positioning satellites, which
help farmers be more precise in order to save money on
seed and chemicals, accounts for the need for a customer
training facility.
Kleine said of the new equipment, “They’re very
technical and they’re new. They’re something people
are not used to using. Much of that training is computer
based and it’s very technical.”
This past August, Kleine’s opened a new
18,000-square-foot service facility in Galesburg.
“A portion of that facility is because of the growth
we’ve had in the commercial sprayer business,” Kleine
said.
Kleine’s covers about 13 counties with its commercial
sprayer business, one of just four such operations in the
state.
“We’ve had some good years the last two or three
years,” he said. “That’s what’s allowed us to
invest back into the community and really position
ourselves for the future.”
Other growth includes the purchase of Monmouth Stronghurst
Implement LLC, a John Deere dealership in Monmouth, as
well as, in Galesburg, what Kleine refers to as a
“sophisticated water handling system, which I call very
green. We recycle our wastewater. We use the same water
over and over and over.”
The new $40,000 building was needed after the new service
facility was built here.
Kleine said the ag economy continues to hold up well,
although the rapid expansion of the past couple of years
is beginning to slow somewhat because of the volatility of
the world-wide economy. He said their hope is to see
agriculture become more of a steady business, eliminating
the wild peaks and valleys of the past.
“When the farmer makes money, they will buy goods and
services in Galesburg and surrounding communities,”
Kleine said.
He called agri-business, the railroad and the hospitals
among the few “mainstay” industries still thriving in
the Galesburg area.
“I just think people really need to understand that agri-business
is very significant to Galesburg,” he said.
As for Kleine Equipment, “We would like to continue to
grow with additional locations, although I’m not sure
where those locations will be. We’ve set up our
management structure so we’re in a position to
expand.”
jpulliam@register-mail.com
