MITCHELL, S.D. - With the help of an outside perspective, Dakota Pump Inc. discovered efficiencies that have strengthened the company's position in an increasingly competitive national market.
Two years ago, the owners of Mitchell-based Dakota Pump Inc. wanted to make sure their well-established business till was running efficiently. They were ready to expand the physical size of the plant, if necessary, to position the company for the future.
They were pleased to find efficiencies without having to physically expand their 40,000-square-foot building.
"What we really did is dig the efficiencies out from under the roof that we already had," said Jim Sebert, president of Dakota Pump. "We improved our manufacturing efficiencies."
Sebert, along with his brothers Bob and Bill, own and operate Dakota Pump, which makes and sells custom, prefabricated water and sewer pumping stations. The company has about 30 employees and a national base of customers.
Dakota Pump sought a fresh perspective to review operations. The review was led by South Dakota Manufacturing & Technology Solutions, a business-services office affiliated with the Small Business Development Center network. MTS offers low-cost training and review programs geared especially for small and midsize companies in South Dakota.
Jim Sebert serves on the MTS advisory board, so he was aware of the services the office has provided other companies. Keith Deibert, a business advisor with South Dakota MTS, was brought in to lead a Value Stream Mapping analysis of space sue and product flow. Everything from plant layout to bidding processes were examined.
"Space and equipment wasn't the problem. Planning and scheduling was the solution," Deibert said.
MTS helped the company develop a plan, and Dakota Pump employees implemented the solutions. Instead of spending $850,000 to expand its building, the company invested $250,000 in equipment and improvements, for a ent savings of $600,000.
"They don't rely on us long term. We're just a catalyst to get them going in the right direction," Deibert said.
Making changes in a tightly held, family business can be a challenge, but Dakota Pump's experience with MTS was positive, Jim Sebert said. The company was able to avoid a physical expansion and invest in other aspects of its business. So, Dakota Pump will be able to celebrate its 50th year in business on June 1, 2017 with renewed confidence.
The company got started as Sanders Inc. during the 1950s in Sioux Falls. Investors acquired the company in the 1960s, renamed it and moved it to Mitchell. Louis Sebert became general manager in 1971. He gradually acquired the business and sold it to his sons in the early 2000s.
Louis Sebert, who is retired, is a former Mitchell mayor and a former state legislator. He jokes that the only time he goes to the plant these days is when he needs a nut or a bolt. "I'm proud of the kids. They get along socially, and they get along in business," he said.
In addition to the plant in Mitchell, Dakota Pump has branch service centers in Watertown and in the Black Hills. Service is provided mostly to customers in South Dakota and North Dakota, but company products are sold across the nation.
The company expanded its service business after the national economic slowdown of 2008-2009, which hit South Dakota in about 2010, Jim Sebert said. However, spending on water and sewer infrastructure cannot be delayed forever. Water must keep running, and wastewater must be moved.
The Mni Waste' Water Company/Tri-County Water Association in Eagle Butte, S.D. is among Dakota Pump's satisfied, repeat customers.
"Those guys bend over backwards. If you have any problems, you can call them any time," said Leo Fischer, executive director at Mni Waste', which based on the Cheyenne River Reservation. "I can't say enough good about them for all the good they've done for us."
For more information about Dakota Pump, see www.dakotapump.com. For more information about MTS, see www.sdmanufacturing.com. For more about the South Dakota SBDC and its affiliated offices, see www.sdbusinesshelp.com.
About the SBDC
The SBDC has regional offices in Aberdeen, Pierre, Rapid City, Sioux Falls, Watertown and Yankton, and satellite offices in Brookings and Mitchell. Other programs in the SBDC network include South Dakota Manufacturing & Technology Solutions, South Dakota Procurement Technical Assistance Centers, South Dakota International Trade Center, Small Business Innovation Research programs and the Enterprise Institute. The SBDC network is an outreach program of the Beacom School of Business at the University of South Dakota.
The Small Business Development Center network is funded through the support of the Governor's Office of Economic Development, the U.S. Department of Defense, the National Institute of Standards and Technology and the Small Business Administration. Additional support comes from the Citi Foundation and Xcel Energy.