Business Spotlight: Local oil company continues to grow after 70 years

Given the price of gas these days, one would think a company like Morris Oil Products would be posting some substantial profits. That's not the case, however, according to the company's co-owners Jerry Carroll and Ken Suter.

"We're paying our suppliers more, too," said Carroll. "We actually made more money when prices were down around 99 cents a gallon. We had less money tied up in inventory, and our customers bought more gas."

Dealing with gas price fluctuations isn't new to Carroll. He's weathered plenty of ups and downs since joining Morris Oil Products in 1986.

Carroll learned the ins and outs of the oil products business from Jim D. Morris, who bought the company from Standard Oil Co. in 1965.

Morris appointed Carroll to serve as the company's president in 1990 and then sold the company to Carroll and Suter in 1998.

"Jim D. Morris not only taught me a lot, he put his trust in me," Carroll said. "When someone sells you the company that bears their name, it means something."

Carroll oversees the day-to-day operations at Morris Oil Products, which sells and distributes Kendall, Shell, Amoco, Chevron and Sun motor oil to commercial customers located within a 150-mile radius of Springfield.

These customers take the oil, antifreeze and transmission fluid they purchase by the drum or bucket from Morris Oil Products and then sell and distribute it to retailers. In addition, Morris Oil Products sells a wide variety of other motor oils by the case.

One of the company's largest commercial accounts is with Saco Petroleum. Suter not only co-owns Morris Oil Products, he also owns Saco Petroleum, which distributes oil products to retailers in the Kansas City area.

In addition to selling motor oil, transmission fluid and antifreeze, Morris Oil Products sells gas and diesel fuel at its on-site station adjacent to the company's headquarters at 500 N. National.

The station is open 24 hours a day, seven days a week and is operated by credit card. When a customer wants to purchase fuel, they swipe their Morris Oil Company credit card through a credit card reader located on the pump and begin fueling. Customers receive an itemized statement detailing their purchases every 30 days.

Some customers, however, prefer to have their gas or diesel fuel delivered. Currently, Morris Oil Products operates five delivery trucks that transport gas and diesel fuel to large construction sites in the Springfield area.

All of the oil products sold by Morris Oil Products are stored in or around the company's building, which was built by Standard Oil Co. in 1929. The building contains a 60,000-gallon oil storage drum.

Other oil products, such as food grade oil, are stored in drums in the basement, which has a fireproof ceiling and support walls made out of concrete that are more than a foot thick.

In addition to the oil products stored inside the building, more than 173,000 gallons of transmission fluid, antifreeze, gas, diesel and other products are stored outside.

No serious fires have occurred since Standard Oil built the facility 71 years ago, Carroll said. Still, the company's insurance premiums are substantial and safety is always a concern.

Another concern Carroll faces is keeping the right amount of oil and gas products on hand. Maintaining the proper inventory level has been particularly important in recent months because of rising gas prices.

"I have the same amount of inventory that I did last year, but it has cost me $400,000 more this year," Carroll said. "Now that the price of gas has increased, we have more money tied up in inventory, but our profit margin hasn't increased."

Currently, gas, diesel and oil product sales account for 80 percent of Morris Oil Products' business. The remaining 20 percent come through the sale of oil byproducts, such as wax.

"We sell seven different wax blends," said Darrell Daniels, general manager. "Each wax blend has a different use. Wax is used in makeup, in crayons and as a fruit preservative. We also sell a lot of wax to candle makers."

Many local businesses and craftspeople buy their wax supplies from Morris Oil Products, Daniels said.

Regional and national customers also have begun buying their wax supplies from Morris Oil Products, and the company has established a Web site, www.morriswax.com, which showcases various wax products and gives pricing and ordering information.

Currently, Carroll is making plans to expand Morris Oil Products' on-site service station. Last December, the company purchased an adjacent tract of land, which will be used to add more gas and diesel fuel bays.

Morris Oil Products

Year founded: 1929

Owner's name: Jerry R. Carroll and Ken Suter

Address and phone number: 500 N. National, Springfield, Mo. 65802; 869-7333