Privately Speaking: A Look at Ten of the Top 25 Private Companies in Kansas City by Judy Z. Elliott

Forget the cows, the people of Kansas City are the best thing since chocolate milk, according to local business leaders. In preparing Ingram's annual list of the Top 25 Kansas City-Headquartered Private Companies, we took a harder look at the 10 companies that ranked highest in terms of 2000 revenues. We also asked several of the companies' CEOs to give us their take on what's best about doing business in our town, and on a few other things as well. 1. Farmland Industries—As a major beef packer, Farmland Industries knows a thing or two about cows. The largest farmer-owned cooperative in North America with over 10,000 employees once again ranks at the top of our survey. Despite recent layoffs and a net-after-tax loss of $29.25 million in fiscal year 2000, Farmland produced revenues that same year of $12.2 billion—more than the next three companies on the list combined. 2. V.T. Inc.—VT is the nation's largest privately owned automotive dealership group. Founded by Cecil Van Tuyl in 1955 and operated with son Larry as co-CEO, the company saw growth in revenues between 1999 and 2000 of nearly 29 percent. Cecil Van Tuyl says the best thing about running a company based in Kansas City is "the great people and the great work ethic most of them have." 3. Hallmark Cards—"We have a cost of living here that is below the national average," notes Irv Hockaday, CEO of Hallmark, "and yet the productivity of the work force is above the national average— that's a great combination." Hallmark saw only a two-percent increase in revenues in 2000 over 1999, but the company remains first in the country in the personal expressions industry with a 55% market share of greeting card sales. Members of the founding Hall family own approximately two-thirds of the company, while employees own the remainder. 4. Associated Wholesale Grocers —Another co-op, AWG is the second largest retailer-owned grocery wholesaler in the United States serving over 850 stores in a 10-state distribution area. AWG member stores operate under the banners of Country Mart, Thriftway, Price Chopper and Sun Fresh. Revenues dropped slightly from $3.4 billion to $3.3 billion between 1999 and 2000. 5. Black & Veatch—With revenues in the neighborhood of $2.4 billion, this venerable Kansas City company also experienced flat revenue growth for the last two years. Although the engineering and construction firm's geographic areas of operation cover more than 100 countries, chairman, president and CEO Len Rodman identifies the people here in Kansas City as the company's best asset. "An advantage of our KC location," he says, "is the strong Midwestern culture of integrity, commitment, loyalty and pride, which helps us build strong teams and long-term employees." Other architectural/engineering firms to make the list are HNTB at number 16 and Burns & McDonnell at number 20. Burns & McDonnell showed a 55% increase in revenues from 1999 to 2000. 6. Health Midwest—Despite revenues of $2.2 billion in 2000, Health Midwest has recently announced that it projects annual losses up to $75 million through the year 2004 unless it can implement drastic cost-cutting measures. Aside from these problems, the company is the top health-care provider on a list crowded with firms in the health-care industry. Its system comprises 15 hospitals—Research and Baptist Medical Centers among them—and employs over 12,000 full and part-time workers. "Health Midwest is proud to be at work in the community," says president and CEO Richard W. Brown, "primarily in the neighborhoods around our urban hospitals, improving the quality of life for our own neighbors." 7. Saint Luke's—Shawnee Mission Health System, which consists of eight area hospitals and more than 14 health-provider offices, is next on the list. Rich Hastings is the only CEO interviewed who would go on the record as saying the best new Kansas City attraction is the Cow Parade. "The reason is simple," he says, "it gets people to stop and smell the roses." 8. Dunn Industries—Terry Dunn, CEO of Dunn Industries, is a walker, and he says the most appealing new Kansas City attractions are the gardens at the Kauffman Foundation and the Stowers Institute. "The best thing about walking in Kansas City," he says, "is that people make eye contact with you." Family-owned Dunn Industries saw 32-percent growth in revenues between 1999 and 2000, in large part from its work as general contractor on the Sprint World Headquarters, the Stowers Institute, and the Union Station renovation. 9. DeBruce Grain—This major player in the agribusiness industry merchandises, handles and stores grain and fertilizer. Operating within the Midwest corridor with exports to Mexico, DeBruce saw revenues increase from 1999 to 2000 nearly 37 percent. 10. American Century Cos.—The downward trend in the financial markets has had an impact on many of the more than 70 mutual funds that American Century oversees. Despite that, the company still managed to grow revenues 23 percent from 1999 to 2000. Founder Jim Stowers Jr. and his family control the company, although J.P. Morgan Chase & Co. now owns a 45-percent stake in American Century Investments. Asked what he considers to be the best thing about living in Kansas City, president and CEO William M. Lyons says it's the "very high quality of life, with less hassle and more opportunity for 'balance.'" Achieving balance, as any cow will tell you, makes it harder to be tipped.

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