Durvet Inc. in Blue Springs is getting ready for a 54,000 square-foot expansion and is ready to start the project once the city signs off on it, according to President and CEO Todd Muenstermann. The expansion will give the company additional warehouse space.
“We’re out of warehouse space,” Muenstermann said. “We’ve been running, on average, about 93 percent capacity on our space.”
The company, which makes animal-health prodicts, averages two to three new hires per year, according to Muenstermann. While the expansion might add a few new heads due to new equipment being installed, Muenstermann said the hiring rate is expected to remain steady.
“We don’t see that changing a lot,” he said.
The company was recently granted a vacation for S.E. Magellan Street, which Munstermann said will allow it to maximize on its available space.
“We just felt like that street didn’t go anywhere, didn’t serve any public need,” he said. “Getting that done gave us a little more flexibility.”
The cost of the project is approximately $6 million, with a further expansion being possible down the road, potentially renovating another 40,000 square feet.
“That will probably come, based on growth trends, in around ten years,” said Muenstermann.
Muenstermann said he hopes for the company to be in the new warehouse space by this time next year.
Munstermann said the growth that has contributed to this expansion has been steady over the years. He attributed this growth to a restructuring the company went through in 1984.
“In 1984, we reorganized the company to where we pay patronage dividends,” he said. “What that means is the profit that each one of those distributors contributes here corporately, we pay out dividends to them based on their contributions.”
The company is currently owned by 21 distributors across the country, according to Muesntermann.
“Once we reorganized that way is when we saw the growth start to take off. When you’re owned by your customers they want to buy from you,’ he said.
The company is still in the process of receiving permission from the city for the expansion, but Muesntermann said the process is going well.
“Everything’s gone pretty smooth. The city’s been extremely helpful,” he said.