DJ Danko and Jamie Danko, owners of Quality Mould, Inc. approached the Saint Vincent College Small Business Development Center for assistance in developing a business plan for financing to purchase a larger manufacturing facility to accommodate the increased demand resulting from diversification of industry services QMI now provides to their customer base. The Saint Vincent College SBDC assisted DJ’s father, Dave Danko with the start-up company in 1983 which focused on providing moulds for the glass industry.
QMI had to reinvent their business model when faced with lost business as the glass industry that accounted for nearly all of the company business moved overseas. The company owners spent seven years to formulate and implement new diversification strategies to enter new industry sectors.
DJ Danko is a firm believer in bringing manufacturing back to the local area. Diversification strategies required substantial investments in machinery for new industry applications so the company would be able to provide services to the power generation, oil and gas, aerospace and defense, mining, transportation and medical industry sectors. The company worked on these diversification strategies and employee training with the Westmoreland County Community College and the NTMA. As company orders increased and opportunities presented themselves across the new industry sectors, it became apparent the company would need larger manufacturing facilities and additional machinery and equipment to accommodate their increased customer requirements.
The SBDC assisted the client with looking at financial statements, suggesting benchmarking costs associated with similar operations of their type and size, provided industry market research, and assisted in creating a business plan and financial projections to be used for applying for financing for a larger facility, equipment, and a line of credit to grow the business. After a few modifications to the plan, based on changing requirements and availability of facilities in the area, the plan was completed and given to the bank for review.
The company received approval for financing in the amount of $2,075,000 consisting financing from Somerset Trust Company for $1,675,000 along with a $190,000 PIDA loan, and a $210,000 ARC loan. Operations from a 13,000 square foot space to a 33,000 square foot manufacturing site. A grand opening ribbon cutting was held on May 6, 2016 with approximately 100 attendees.