Resilient Measures: Straub Business Shifts from Oil to Ag to Become Flourishing Dealership

People who made their living from the oil patch in the early 1980s probably remember a moment when they realized everything had changed. Wally Straub had his moment.

 “Dad walked into our shop one day and saw six of our employees working on two of our trucks,” said Ron Straub, Wally’s son. “Gone was the shop-full of customers’ oilfield trucks that needed service.”

This scene was just another devastating effect of the 1982 oil bust, which caused many businessmen to switch gears. While others put their ventures in reverse or park, Wally Straub put his in drive and started a new enterprise that combined his knowledge of service and agriculture.

Today that enterprise is known as Straub International Inc., U.S. 56 and Airport Road. It traces its beginnings to 1971 as Kern Inc., a small oilfield service company at Railroad Ave. and McKinley. Straub soon bought 50 percent interest in Kern, and as the oilfield boomed, it also became a full-blown truck service center along with the tank repair it already provided, explained Ron, president of the company. The family bought controlling interest in 1980.

“Then there was the oil bust,” Ron said. “Dad read a classified ad that International Harvester was looking for a dealer in this area. He had worked at Gibson Titus & Stafford and knew about farm equipment. We had the facilities at Railroad Ave. and McKinley and Dad knew the International Harvester guy. It happened quickly in 1982.”

Case Sales – Straub International sales staff stands by and on Case IH Puma 125 Tractor. The sales team is left to right, Scott Dewerff (salesman), Dennis Burgardt (store controller) and Doug Barrett (sales manager). Straub International carries a large inventory of the new and used tractors, combines, farm equipment, and haying equipment to meet all farming needs.

The name changed to Straub International in 1985 and the “Inc.” was added in 1997.

What started as a company with five employees and less than $150,000 in revenues has grown to 125 employees in six locations and $43 million in sales last year. Annual payroll is more than $5 million, with $1.5 million of that in Great Bend.

Thirty-five employees are in Great Bend; the others work at locations in Salina, Larned, Hutchinson, Marion and Wichita. Chief Executive Officer Larry Straub works at the Salina site, while other family members are here.

They are Kathy Straub, Ron’s wife, vice president and chief financial officer; Kristy Rein, Ron’s daughter, and her husband, Randy; and Darren Straub, Ron’s son. Wally manages Straub Leasing.

Straub Power – The Straubs involved in the family’s dealership are left to right, Kristy Rein, along with Kathy, Ron, Wally and Darren Straub. Not pictured is Wally’s son, Larry, who runs the dealership in Salina. The family owns six stores with Great Bend serving as the corporate headquarters. Its other four locations are Larned, Hutchinson, Marion and Wichita.

“Dad has an uncanny sense of seeing ahead,” Ron said. “He saw the oil boom and the oil bust coming. We diversified - didn’t put all our eggs in the oil basket.”

When Wally decided to switch from oilfield equipment to farm equipment, he talked to a banker, Ron said. “The banker asked: ‘you want to go into farming? Isn’t that like going from the frying pan into the fire?’ Dad told him he wasn’t there for business advice. He knew the equipment, he knew farmers and he went after the best people.”

Today, Case IH is Straub’s primary brand. It also sells products from Mahindra, an Indian company that offers small tractors of under 100 horsepower.

“Sundown farmers like these smaller tractors,” Ron said. “Mom and pop come home from their 8-to-5 jobs and they may have five, 40, 80 acres to maintain.”

The smaller tractors help the sundowners with their yards, gardens, driveway maintenance and snow removal.

Record-setting grain prices during recent months mean that full-time farmers also need equipment. But they need the bigger version.

Grain prices “changed the whole industry overnight – 180 degrees,” Ron said. “Customers flat out couldn’t buy equipment for a number of years. Now everybody wants something.”

New equipment, however, is in high demand and it may take a year to get a combine that is ordered today. Specialty products such as planters and air drills are also a year away, while tractors may be available somewhat sooner.

Wrench Hand – Straub International service technician Jeff Brack works on a Case IH 8010 Combine. While being a Case IH mechanic still means turning a wrench, it also requires techs to have detailed knowledge of powerful technology in what’s evolved into a high-tech field. Continual training for techs is a necessity in the ever-changing profession. Though Case IH is Straub’s primary brand, it also services all types of tractors, combines and other farm equipment.

The market for used equipment is also booming. “We have two people looking for good used equipment on the Internet all day long,” Ron said. “We work with other dealers that we can trust so when the equipment rolls off the truck in our yard, we can say, ‘yes, that is what we ordered.’

“Farmers do their research. They know the model number and price before they walk through the door. They have educated themselves. Farmers like to look and kick tires. But the days of driving up to a lot and seeing, touching and feeling are gone,” Ron added, noting big inventories are not possible now.

Ron also wants farmers to know that Straub International will do the mouse and keyboard work on the Internet for them. “That is our job,” he said. “They can have more time for their job, which is farming.”

Farmers are also showing interest in changing business practices now that they may be able to afford new machinery. No-till farming and Global Positioning Systems are two main interests.

“They want to pass over the ground as few times as possible – less fuel and wear and tear,” Ron said. “There are new air drills and planters designed to plant in no-till ground.

Spray Check – Straub technician Dan Shaffer checks a spray nozzle on a Case IH 4420 Patriot Sprayer. The Patriot sprayer is built to make operators more efficient in the field. Optimum weight distribution — with the engine in the rear, the cab in the front, and the product tank in the middle — means less field rutting and earlier field access.

“And GPS – everybody wants it,” Ron said. “It will now go to full- auto guidance capabilities. This can reduce inputs as much as 20 to 25 percent considering chemicals, seed and fuel. And there are increased outputs because they’re not having skips and overlaps in the field. The technology allows within an inch of accuracy all day long.”

Ron noted that Straub International has grown throughout agriculture’s ups and downs because opportunities presented themselves and the company took advantage of them. For example, Great Bend Ford Tractor went out of business, Gleaner service outlets left the area and Case wanted to sell its stores around the state. Straub jumped in at each opportunity. It also sells Polaris ATVs, and merged with Roth Equipment in 2001.

The family’s foresight was maybe most visible in 1994 when Straub International’s Railroad Ave. and McKinley facility burned to the ground. A mouse chewing on a wire in a combine with wheat straw was the culprit.

Persist and Persevere – Wally Straub is recognized by Case IH territory sales manager Bruce Spidle for 25 years as a Case dealer in mid March at the Highland Hotel. It’s a remarkable achievement, considering Straub was six months away from bankruptcy with his oilfield tank and truck repair service when the oil market “died overnight” in 1982, he said. To avoid the inevitable, he moved into agriculture service and equipment as an International Harvester dealer, and then had to start from scratch a few years later with the merger of Case and IH. In 1994, Straub’s Great Bend business burned to the ground. “I told our guys, ‘Stick with us and I promise you that we’ll build this all back up again,’” remembered Straub. “At the time, I didn’t know how we were going to do it; I just knew that we had to do something, for us and for them.” After moderate equipment sales for many years, Straub said business has been excellent during the past year, leading into what is forecasted to be a strong harvest season for farmers with grain prices currently at all-time highs.

A couple of days after the July fire, Aaron Maresch came to the Straubs and said, ‘come with me,’” Ron said. “He took us to the American Trailers facility at the airport and said ‘how about this for a new location?’ It was full of, what was termed, oil field trash. Dad said it would be perfect. Larry and I thought: are you kidding me?”

But Wally wasn’t kidding and neither were Maresch and dozens of other community volunteers who got the place into shape within a week or so. (Straub International stayed at this location until November 1994, when its current site became available.)

“Fifty people volunteered,” Ron recalled. “They said ‘we hear you got a building and we want to go to work.’ Trucks and volunteers were there all week; Ralph Wallace Buffet fed us for a week.”

This is probably one example of why Kristy Straub knew she wanted to return to Great Bend after studying at Kansas University. “I missed Great Bend; I missed the people,” Kristy said.

As a member of the third generation, she helps her grandpa with Straub Leasing, and also works in information technology and marketing. Her brother, Darren, studied ag tech at Oklahoma State University and helps manage the Straub shop.

3i Guy

Ron Straub fully understands the importance of industry, irrigation and implements to this area, which is why he has been gung-ho about the 3i Show for the last two decades.

Straub became involved in the huge farm show in 1986 and served as co-chairman in 1988 and chairman in 1990. For the 2008 show, which is set for May 7-9, he is again co-chairman. His partners are Jan Westfall and Jim Vopat.

SHOW Case – Ron Straub stands in front of a Case IH 4420 Patriot Sprayer, the latest model offered by Case IH. The company’s equipment will be on display at the 54th 3i SHOW, which takes place at the Great Bend Expo Complex May 7-9.

“During our first meeting, I saw many of the same faces I saw in 1990,” Straub said. “I knew then the show was in good hands.”

The 3i Show is crucial, not only to farmers but to the community as a whole, Straub said. “The community needs this event to provide finances for the Expo Complex. The revenue generated is important.”

Straub, who is president of Straub International, has also served on a variety of 3i committees, including parking and load/unload. “But being chairman is the easiest job.”

Straub is pleased the show dates have been moved to May from April and that Saturday is no longer on the schedule.

“The change of date is a good thing,” Straub commented. “It gives farmers more of a chance to attend; April is planting time. It is also good there are no Saturday events. This helps manufacturers who want to get back to work.”

As with previous years, Straub International will be represented among more than 500 vendors during the three-day show, even though it doesn’t expect many business transactions on the spot. However, the 3i Show helps companies generate good leads and follow-up calls.

“It has become a real people thing,” Straub commented. “It is enjoyable to be part of it. You get to work with different business people and meet exhibitors from out of town.”

The Western Kansas Manufacturers Association of Dodge City sponsors the annual 3i Show, which alternates between Great Bend and Garden City.