Entrepreneur: Darcova Inc. filling Billings’ gasket, seals niche

Mike Baugh’s Darcova Inc. grew out of one of the oldest business tricks in the book: Find a niche and fill it.

The company manufactures cup seals and gaskets used mostly by the oil and gas industry in reciprocating pumps.

Gazette Staff

Darcova has survived since 1912 by practicing another business fundamental. Its goal is "to continually beat our customers’ expectations," said Mike Baugh, the company’s president and general manager.

The company does, Baugh said, "by constantly improving our manufacturing process’ in order to provide our customers with new and innovative products of the best quality, manufactured from the highest quality raw materials."

Darcova is located at 514 Foote St. in Billings and can be reached at 254-9399. Here’s what else Baugh had to say about his company:

Nature of the business:

Manufacturing down-hole cup seals and gaskets used primarily by the oil and gas industry in reciprocating pumps. Production methods include compression molding of laminated rubber seals, die cutting of gaskets, leather cup molding and plastic injection molding. Injection molding includes our proprietary line of cup and ring seals, as well as custom injection molding.

Why start the business:

Darcova Inc./ Dragon Manufacturing was an existing business, originally started in Ohio in 1912. After purchase of the company’s assets, the company was relocated to Billings in 1995 to provide hands-on management, the implementation of new manufacturing principals, a revitalization of the existing product line and the development of new products. The company was purchased by the existing owners for its product reputation and the need to continue to serve the oil and gas industries, pump manufactures, and pump repair shops with the highest quality cup seals. Dragon originally took the oil and gas industry from leather cup seals to cups seals manufactured from reinforced laminated rubber. We continue that tradition by continually looking for new and improved materials and manufacturing processes.

Where did start-up fund come from:

The start-up funds came from the current owners, bank financing and other financing sources.

How long have you been in business:

Dragon Manufacturing was started in 1912. Darcova was started in 1915 and in 1975 the two companies were merged together. In 1992 the company was purchased by the current owners and relocated to Billings in 1995, where the two companies are operated under Darcova Inc. at 514 Foote Street.

Biggest challenges in running the business:

Obtaining the raw materials utilized in our manufacturing processes. The majority of our suppliers are located on the East Coast necessitating long and expensive transportation hurdles, especially during the winter. Our raw materials cannot be exposed to freezing temperatures

What is being done to overcome those challenges:

We are continuing to implement "lean manufacturing" principals in order to reduce material waste, reduce our finished goods inventory while increasing our inventory turnover. By manufacturing in smaller batches we have been able to improve the quality of our products, increase our production and at the same time reduce material waste and redundant manufacturing steps. With the implementation of lean manufacturing and other quality programs we have been able to go out and solicit additional markets both domestically and internationally. Another example is in our plastic injection molding operation, with improved efficiencies and production capabilities we have been able to expand our operation into the custom injection molding area.

Your worst business mistake:

Increasing our market share too quickly and not being able to keep up with the production demands. Slow delivery of required products does not make for very happy and satisfied customers.

Advice for someone running a business:

Expect to put in a lot hours beating your head against the wall before all those long and hard hours of work begin to pay off. Learn from your mistakes and don’t give up just because something didn’t work right the first time.

Number of workers:

Twelve full-time employees.

What’s your five-year plan for the business:

In addition to the company’s main goals, we plan to increase both our domestic and international market by building on the foundation of manufacturing products of the highest quality. By responding to and listening to our customers we can continually improve our products to meet our customers demands.

A question for other entrepreneurs?

How as small business can we collectively work together and yet still remain independent business?

If you weren’t doing what you are now, what would be your dream job?

Since riding a horse into the sunset doesn’t pay the bills, I can’t think of anything I’d rather be doing that would provide me with the challenges and satisfaction I get from watching my employees turn raw materials into functional finished products utilized throughout the world.

“Entrepreneurs” appears regularly in the WorkWeek section. The feature will help readers become familiar with new businesses, as well as educate others in the challenges of starting a business. If you have been in business for at least one year and would like to tell your story, please contact:

Chris Jorgensen

Billings Gazette

401 N. Broadway

Billings, MT, 59101

657-1311, office

657-1208, fax

[email protected]

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