Dondlinger Construction and the secret to 125 years of business success
Dondlinger Construction is a member of one of the most exclusive clubs in American business. Currently celebrating its 125th year in operation, the Wichita-based General Contractor is one of roughly 1,000 U.S. companies — less than one-half of one percent — to survive more than 100 years. The number of companies reaching 125 years is even smaller.
Authorities on business longevity say that enduring companies like Dondlinger share several traits. They know their purpose, and their plans span decades into the future. Their leadership teams have longer tenures, making it easier to develop and sustain close relationships with customers and business partners. They are active members of their communities and feel an obligation to help them thrive and grow. And they are willing to change.
Now in its fifth generation of family leadership, employee-owned Dondlinger Construction checks off each of these boxes. For starters, consider community involvement.
“We take our commitment to the community seriously,” says Tyson Hirt, Dondlinger’s chief financial officer. “Wichita is our home.”
To celebrate its 125-year anniversary, Dondlinger’s 285 employee-owners are choosing a charity each month in 2023 to which the company then donates $1,898 — an amount signifying the year the company was founded.
Open to change.
While the construction of Wichita landmark buildings, highways and other large-scale projects in Kansas and Missouri remains Dondlinger’s primary purpose, its leaders also remain open to new ideas for growth.
Leveraging the company’s construction experience, they created a division that rents cranes and other machinery to contractors and other industry professionals. A facilities services division founded in 2017 now provides general maintenance services to retailers in 49 states.
Expanding into new businesses and geographies has also reminded Dondlinger why it values the long, trusted relationships it has developed with its business partners. That includes its decades-long relationship with Commerce Bank, which serves as the company’s primary bank.
“As an employee-owned company, we take our fiduciary responsibilities personally,” says Hirt. “Every employee is an owner, and we want our assets to be safe and secure.”
“We primarily rely on Commerce to help us operate safely and efficiently,” he says. For example, since the company maintains a cash balance, it uses a Commerce sweep account to transfer funds above a certain level into a higher interest-earning investment account at the close of each business day.”
With check fraud on the rise, Commerce bankers recommended Positive Pay, a fraud protection service that confirms the accuracy of the payee, account number and dollar amount when a check is presented for payment. In addition to relying on Commerce Bank for day-to-day banking, Dondlinger looks to Commerce Trust and Capital Markets Group, both divisions of Commerce Bank, for support with investments, treasury bills and bonds.
A revenue-generating payments system.
Over the years, Commerce bankers also suggested Dondlinger consider paying some invoices electronically, rather than by check. Namely, they recommended the CommercePayments® AP Card, which would earn the company a revenue share for payments made by card.
After joining the company three years ago, Hirt decided to internally promote the use of the purchasing card program. “Over time, we’ve seen our revenue share triple and quadruple as card use grew,” he says. Today, about one-fourth of the company’s employees carry purchasing cards from Commerce Bank.
When Dondlinger rolled out their AP Card program, the goal was to make as many payments using a card as possible, says Hirt. “Commerce took charge of enrolling suppliers,” he explained. “Those who wouldn’t take a card received a check.”
Enrollment was highest among suppliers serving Dondlinger’s growing facilities services division. “While our general contracting projects can take two or three years to complete, a facilities services job is often finished in a day or two,” explains Hirt. “The local contractors we hire to fix an electrical or plumbing issue across the country may want a deposit, or they might expect to be paid immediately after they finish. These suppliers are used to being paid with a card.”
Even some of the company’s larger subcontractors appreciate the fast payment a card option delivers. “For suppliers that are set up to accept cards, it’s a good way to get their cash and not have a receivable hanging out there,” Hirt says.
The card option also takes some pressure off the company’s back-office operations too. “We have four times the volume of payments that we had in the past,” he explains. “While we’re still cutting a lot of checks, we’re adding suppliers every week to the card program. It helps a lot.”
“A good match.”
There’s another reason Dondlinger is comfortable turning to Commerce Bank for answers. Longevity-wise, Commerce, like Dondlinger is also a member of the “one-half-percent club.” Both organizations also share similar values. “We are a conservative company,” says Hirt. “We appreciate that Commerce Bank is conservative as well, and we know our funds are secure there, which is important to us.”
“Our banking relationship is important to the company and to me,” Hirt adds. “The best thing about Commerce is the people. They listen to what we need. They are responsive. We are a good match.”
—Tyson Hirt
Chief Financial Officer,
Dondlinger Construction
