The McConnell Company

Page 1

The

McConnell

Company

Under F ly i n g The Radar by Sherry Schaef

I

f there is one company that lacks the notoriety that it deserves, it’s the enterprise run by J. Ward McConnell,

Jr. based in Kinston, NC. This is a man whose mind never stops and even at the young age of 82.5, he’s anticipating his next move in the industry. Tinkering in everything from potato planters, tractors, ladders and jets, this man along with his son, Marc, have a firm grip in the ag industry. So much so that in 2011, on the 40th anniversary of the NASDAQ stock exchange, Ward McConnell rang the opening bell.

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Joseph Ward McConnell, Jr. was born to Edith and Joseph Ward McConnell, Sr. on a farm outside of Prattsburgh, NY in 1931. Young Ward grew up on the family’s dairy farm along with his two sisters. After attending Alfred State College and serving in the US Army, he came back to Prattsburgh to pursue his dream. Ward wanted to build tractors and farm equipment. In 1956, Ward purchased a former Cletrac dealership and began selling Oliver tractors. He only operated the dealership for five years and by the end, he was selling John Deere equipment. He sold out in order to begin McConnell Manufacturing, which built potato planters, rock pickers, tillers and wagon boxes. The McConnell planter was very well-known in potato regions and even had branch offices in Burley & Grand Forks, Idaho. The model 500 was one of the most popular planters and was available for 1, 2 or 4 rows. In 1965, the 500 was redesigned with 20 new improvements and a 20% larger seed hopper than its closest competitor. In 1970, Ward joined the Board of Directors of the Farm Equipment Manufacturers Association (FEMA). In 1979, McConnell Mfg. relocated to Kinston, NC where the business remains today. At that same time, he purchased a foundry in NC that specialized in pressure tanks and cast iron cooking pots. Ward still dreamed of building tractors. In 1985, while attending the large Smithfield farm show in England, he learned that the Marshall Tractor Company, a British manufacturer, was going into receivership. Not having the capital available to start a tractor company, Ward, put in a bid without a clue how he would pay for it if he were the successful bidder. By the time the gavel hit the block, Ward, the winning bidder, already had a buyer that would flip the company and leave him with a nice profit. Technically, Ward McConnell owned/operated the Marshall Tractor Company profitably for less than four hours. Using the proceeds from his short-lived tractor manufacturing career, Ward purchased the ChisholmRyder Company in Niagara Falls, NY. This company

was a manufacturer of grape and bean harvesters. In addition, they did hi-crop conversions for some of the IH model tractors, using many of them to serve as powerplants for their harvesting equipment. By the late 1980s, Massey was facing financial difficulties. In an effort to keep things afloat, the combine division, the baler, a foundry and the 4000 series 4WD tractor line were grouped together in a new entity known as the Massey Combines Corporation. Carrying a large chunk of debt already, the corporation was doomed. The combine technology was sold off as was the 4WD line. The tractor line was purchased by McConnell Manufacturing as Ward’s dream of building tractors came closer to reality. McConnell took the 4000 Series tractors along with the excess inventory of parts. Since Massey was no longer building a tractor, they had nothing to offer their customer in the 4WD market. McConnell gladly offered to continue to sell the 4000 series parts. At the same time, he set out to build his OWN tractor. The 4000 Series Massey tractors all used the V-8 903 Cummins. That engine was no longer available so McConnell

was forced to turn to other manufacturers, which was probably a blessing in disguise. While Ward McConnell was starting his purchase of the 4000 series tractors, Roger Penske was acquiring 60% of Detroit Diesel from GM. Six months later he purchased another 20%. Under Roger’s guidance, the company went from one that lost $100 million in 1987 to earning $16 million the next year. The 60 Series engines was brand new and was the first computer-controlled engine, which gave the option of changing horsepower without changing much else. Roger was anxious to get this motor into something besides a truck because the truck industry was down at that time. When McConnell approached GM regarding an engine for their new tractor, Roger told them to ship them a tractor and they’d engineer it themselves to make it fit. A chassis was sent to Detroit where the frame was lengthened to accommodate the longer in-line engine. Testing was done by GM and they also displayed the tractor at all of their events. In addition, they printed literature to go along with the tractor to boast the use of the new 60 Series engine.

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