No preview available
HomeMy WebLinkAboutThe Citizen, 1986-04-16, Page 14PAGE 14. THE CITIZEN, WEDNESDAY, APRIL 16, 1986. Neil McGavin [left] and son Brian represent two of the three generations that have seen tremendous growth in the farm implement business since Gordon McGavin started selling equipment from his Walton area farm hi the mid 1930's. Last year the company's sales topped $4 million. 50 years at McGavin's sees many changes in business There are few better indications of the massive changes in agricul- ture in Huron county over the past half -century than McGavin Farm Equipment Ltd. which this year celebrates 50 years of serving county farmers. It was in the mid -1930's that J. J. McGavin, well-known farmer and drover helped his son Gordon McGavin set up a machinery sales from the family farm in McKillop Township, south of Walton. Young Gordon was making a name for himself in those days with his Fordson tractor and Oliver plow winning plowing matches, includ- ing the Canadian championship in 1936. The young plowman began selling the Oliver plows that he was helping to popularize. The other main items in those pre-war years for farm implement sales were tractors, cultivators and manure spreaders. Today the list of equipment sold by McGavin's goes as long as your arm: tractors, plows, gravity box- es, snowblowers, round balers, haybines, forage boxes, corn heads, sprayers and much more. Sales records show the increas- ed cost of machinery in the farming business too. In 1937 a new tractor and plow from McGavin's cost $850. Today the average tractor sold by the company costs about $20,000 and the company special- izes in smaller and medium sized tractors. Annual sales records from 1953 show gross sales of $104,807. By 1985 the total had climbed past the $4 million mark. Of course the cost of doing business for the company itself has also increased. Neil McGavin, who took over the business from his father in 1963, points out. In 1942 the entire cost of wages for the year totalled $2,308. In 1985 the payroll for the company was just a hair under $240,000. Of course the staff has also increased in numbers since then. Today there are 15 employees. Back in 1947 while his father was still operating the business from the farm, there was a lot of equipment sold but there was only one hired hand ... and he also helped with the milking. Neil sees 1973 as the turning point as far as much of the inflation in costs is concerned. In 1973 a mechanic made $3 per hour and, to cover the costs of tools, etc., McGavin's charged his time out at $6 per hour. Today mechanic's labour charges run at $22.90 per hour but the company has to pick up costs for so many extras like uniforms, Workmen's Compensa- tion and so many other small costs that add up. A recent memo from the dealers association, Neil says, told dealer they had to get the message out to their customers because barbers today earn more than mechanics. But if the cost of labour has increased, how about the cost of things like telephone services. Until about 1952 the cost of telephone was paid yearly on the taxes and amounted to about $30 per year. Today the company runs a telephone bill of about $1,100 per month. The searching through old files in preparation for the 50th anniver- sary celebrations has brought to light other gems. Gordon McGavin was one of the early supporters of CKNX radio and was a friend of station founder Doc Cruikshank. Neil recently called up the station and said he thought he'd been overcharged because he had been charged $40 for a commercial but he had an earlier bill in his hand that said radio ads cost only $1. When the person at the station asked what the date on the bill was he said 1952. (The station was very interested to hear of the bill because all CKNX's old records were destroyed in the fire in the 1960's.) In the early years Gordon McGavin was a Cockshutt dealer but the marriage ended in divorce in 1958. McGavin's started selling the new, imported 'Nuffield tract- ors and Cockshutt issued an ultimatum: sell only their tractors or lose the dealership. Later, after Gordon McGavin dropped the dealership, the company official who made the ultimatum was fired and the company came back to Gordon asking him to reconsider but by that time he had discovered how much easier it was to deal with smaller companies than the big ones and wanted no part of it. The policy continues tothis day with McGavin's dealing with a wide range of companies for the many different kinds of machinery they sell. Neil recalls recently discussing taking on a dealership for a major implement company and being told that one of the prerequisites was that he put up a new $3,000 sign advertising their name. When he refused, they refused. Today the company is located in the old Walton school house which has been enlarged over the years but still is not the kind of expensive, modern showplace some of the larger companies Continued on page 15 is • LSO. ce t° Seo6R,1,� 60 efsi` R. All types of fertilizing, seeding and spraying on any kind of crop No crop damage - no ground compaction - crop ripens evenly "WHEAT & GRAIN SPRAYING OUR SPECIALTY" Thousands of Hours of Agricultural Flying Experience to guarantee the job is dome right. Automatic field r arking system to insure uniform t;c�vrsage Contact us today as we have now acquired a larger aircraft to insure a more prompt and efficient service. Contact: Milton J. Dietz Ltd., Seaforth 527-0608 Air Field, Seaforth 527-1606 Ron Schefter, Wingham 357-1257 SCOTT DRAINAGE COMPLETE FARM DRAINAGE SERVICE — PLASTIC — CLAY — CONCRETE LAND IMPROVEMENT EROSION CONTROL STRUCTURES — EXPERIENCED — CERTIFIED CONTRACTORS — OMAF GRANTS AVAILABLE RIPLEY 519-395-3563 395-2992 ONTARIO