Agriculture Equipment Manufacturing

Chris Kuehl shared information to the attendees regarding the general supply chain issues that are happening with all industries. The biggest issues causing supply chain challenges is that producers were not prepared for the overwhelming high demands for parts and materials. An obvious reason for this is not only the pandemic with the restrictions and protocols, but also labor and transportation shortages, clogged ports, and the growth of online retailers. Producers cannot catch up with the demand, which has caused major delays in products to the US. These issues caused many trickle-down affects that greatly impacted US manufacturers.   

Chris recommends that companies look to solve their supply chain challenges through short- and long-term solutions. Short Term: It is important for companies to network!! There are companies in Kansas or surrounding states that can do the same processes as companies overseas. Long term: Companies should work on building their labor supply and pipeline by becoming connected with regional tech schools to solve the labor shortages and fill the skills gap. 

Clint Johns provided details about why steel prices have gone up, what will happen next, and what manufacturers can do to overcome the steel supply challenges. Similar to the general supply chain, there were drastic supply and inventory cuts due to COVID-19 as well as labor and logistic barriers, causing suppliers to be delayed in restoring their capacity. The demand for steel did not drop nearly as much as it was anticipated, which created a supply and demand imbalance.   

With the many impacts mentioned above, steel has become extremely volatile. From January 2020 to June 2021, Hot Rolled Coil (HRC - milling process of rolling steel at high temperatures) went from $580/ton -$1730/ton, which is about $600 more than the World Export Market of HRC. The Ferrous Complex, which consists of HRC, Iron Ore, Busheling Scrap and Turkish Scrap futures, are considered hot commodities and have experienced the largest percentage increase. In fact, HRC has rise as much as Bitcoin! It is important to remember that some of these issues mentioned aboce were not predicted to happen. The high prices will slowly begin to fade, as it is predicted that steel prices will reverse between Quarter 4 2021 - Quarter 2 2022.

Russell Plaschka - KDA  

Russell, KDA Business Development and Workforce Program Manager, was the moderator for the event. 

Jeff Tucker - K-State TDI/GPTMC  

Jeff Tucker gave an overview of the capabilities of K-State TDI and the programs available through the Great Plains TMC.

Tiffany Stovall - Kansas Mfg Solutions  

Tiffany Stovall shared information about KMS and their new supply chain tool called Connex Kansas. 

Mike Bergmeier - ShieldAg  

ShieldAg designs, manufactures and distributes innovative agricultural products.

Daniel Rauchholz - Farmada 

Farmada develops a fertilizer toolbar that can apply anhydrous ammonia and other components into the ground.

Nicholas Bowles - SureFire Ag  

SureFire Ag specializes in providing solutions for the control and application of liquid and dry fertilizer, seed and chemicals.

As seen in the picture above, the toolbar products have components from Farmada, SureFire Ag and ShieldAg. The orange toolbar itself is from Farmada. The anhydrous cooler, injection and electronic parts on the toolbar are supplied by SureFire Ag. ShieldAg builds and supplies the black colored row unit parts on the bottom of the toolbar. Each company shares designs and drawing files to ensure that all of the parts fit perfectly to minimize fitting problems.  

This toolbar package from Kansas manufacturers is a great agricultural product for farmers in Kansas and the world. The "Trifecta" is an awesome example of how collaborative partnerships can create successful products and reach international markets.    

"As long as you can continue to do the basics and take it over seas, it's a great thing! You don't have to reinvent the wheel!" - Mike Bergmeier, ShieldAg    

For more information about the companies, please visit their websites at:  

• ShieldAg Equipment - www.shieldag.com 
• SureFire Ag - www.surefireag.com 
• Farmada - www.farmada.net

How can this type of collaboration help companies that may not be ready to go overseas to international markets?   

• You don't have to go overseas to have a successful Trifecta like this.  It is all about how you can collaborate and work together with partners and other companies within the same industry. Discover your needs and what is most important to your business.  

What were some of the growing pains/hurdles that the Trifecta had to overcome?  

• There weren't many growing pains/hurdles. It was more focused on upfront agreements that the Trifecta had to determine in the beginning. They had to understand and identify what barriers they might face before they got there. By utilizing other KS companies and resources, they were able to avoid many hurdles.  

How did the Trifecta discover each other? How do you start those conversations? 

•  Trade shows, events, and conferences are great opportunities to meet other companies and start these conversations. It is important to build trust and personal connections to build these collaboration. Meet in person rather than  a zoom call if possible.