12/12/2012 1:23:00 AM
HEADLINES
PERSPECTIVE – Darragh: ‘Expert’ Employees Key to Providing Service
A key to success is a “knowledgeable staff,” the president of the Specialty Tools & Fasteners Distributors Association said in the annual “State of Distribution” address.
Kramer Darragh, the third-generation owner and president of the Darragh Company, recalled numerous changes in direction for the Arkansas-based distributorship. The company’s specialties have included grain warehousing, egg production, concrete forming and scaffolding.
“Over the years, we have developed individuals within our company to become experts in key product areas,” Darragh told the 36th annual STAFDA convention. “This has allowed us to grow segments of our business and better serve our customers.”
“While STAFDA distributors sell a lot of products, we are really in the service business,” Darragh observed. “Our customers rely on us for our product and application knowledge, our ability to get the material where it needs to be when they need it, and our willingness to be flexible to their needs.”
He cited numerous changes in direction for his own Darragh Company since its founding in 1906.
“Beginning in the late 90’s, we invested in more technically advanced concrete forming inventory and trained our sales force so we could offer enhanced concrete forming solutions,” he cited.
In 2002, Darragh Co. acquired Arkansas Rebar, which included its “seasoned staff.”
Six years ago the distributorship expanded in the scaffold business. “Rather than just rent and sell scaffolding as we had done for years, we set up a division, Darragh Construction Services, to put up and take down scaffolding for contractors. This division, with its crews, is now working all across the state.”
Among the projects was setting up the scaffolding for renovating the Arkansas state capitol – “the very same capitol that we sold Portland cement and lime to build nearly 100 years before,” Darragh noted.
“By establishing this in-house expertise, we’ve become the go-to scaffolding company in the state,” Darragh explained.
When Darragh Company expanded in tools they “brought in a seasoned veteran in the tool business to help us grow our STAFDA-related products.”
Adapting to Change
“The story of Darragh Company… is one of learning and adapting to changing markets; taking risks and seizing opportunities,” he reflected.
“During our first 80 or so years, Darragh Company was in both agricultural and construction related businesses. We started off as a warehouse for hire for local businesses in the Little Rock area,” Darragh narrated. “This included warehousing grain, which quickly evolved to processing the grain for animal feed.”
Portland cement and lime used in the construction of the Arkansas capitol led Darragh Company into the construction supply business.
But the agricultural business grew faster and got the most of management’s attention. “Over time, we built up the ag part of the business to the point that the company became a sizable egg producer,” Darragh recalled. “When I joined the company in 1972, we had approximately 750,000 laying hens in production.”
“While the egg business had a number of very profitable years, the market matured and we soon realized we had no control over our destiny and future growth. We knew our company had to transition the business into areas where we could differentiate ourselves.”
In the early 1990s the company sold its ag-related businesses to focus on the construction market. “We felt the construction business provided us with the ability to significantly add value for our customers. We have aggressively tried to avoid commodity product lines and have instead focused on areas where we can bring the total package of products and application expertise to the table for our customers.”
Darragh advocated companies participating in their related trade associations.
“Whether it’s networking, professional development for our people, or identifying new lines and supplier partners, we have found that our business and our people thrive when they have exposure to other players in the industry,” he said.
Darragh Company expanded its tool business by acquiring Tool Central, bringing the distributorship to 12 branches.
“We might never have taken the plunge had we not had the opportunity of meeting with and learning from other distributors from across the country, from non-competing markets, who have shared their best practices with us,” Darragh observed.
“The networking with manufacturers is a key element to belonging to these organizations. Distributors build better relationships with upper management of the companies whose products they represent which, in turn, builds a tighter partnership in our day-to-day dealings.”
STAFDA “Fly-In” Day?
Darragh announced STAFDA is considering a new legislative role – a “fly-in” day for members to meet their congressional representatives.
It would be an “opportunity to present a collective grass roots voice regarding government issues affecting small business.”
“I’ve not always felt that reaching out to lawmakers was a productive use of time,” Darragh commented. But after a letter this year to his congressman about proposed legislation, “I got a less than satisfying response in return. Because there is strength in numbers, STAFDA is investigating a congressional fly-in day to Washington DC.” ©2012 GlobalFastenerNews.com
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Related Links:
• STAFDA
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