J~S Machine and Valve: It's a family thing

Source: Exec Digital USA

Date :13/08/2008 17:52:09

Twenty-something cousins Nick Hughes and Mike Dunn have taken the reins of JSMV and are poised to steer company toward a bright future.

Written by Terrence Doyle and Produced by James McCann

There is just something altogether unique and wholly American about family-founded and owned companies that are passed down from generation to generation, from father to son and over again.

Children are born into the industry and, if not on purpose and out of sheer interest than by default, learn the ropes of the industry from day one. By early adulthood, they are well-equipped to take the helm and continue into the future, affording their elders the luxury of rest.

The process is repeated and repeated and repeated, the business staying in the family, the business becoming less a business and more a lifeline, the thing for which you are grateful at night before you lay your head to rest. In many ways the business is as much a part of the family as those weekend dinners or those summers spent at the beach.

Nick Hughes, 29, and cousin Mike Dunn, 28, have, together, taken the reins of J~S Machine and Valve over the past five years and have done so with a great degree of skill and success. The duo intends to continue their current trend and lead the Oklahoma-based company that their grandfather Jack Smith began 25 years ago toward a prosperous future.

Hughes, a graduate of Oklahoma State University’s class of 2002, has a degree in mechanical engineering and has been with the company for five years. “It’s a family-based business,” says Hughes. “I have been working here for 10 years and have been the vice president and co-owner for four of those.”

Dunn, a Magna Cum Laude graduate of Northeast State University in Oklahoma, has a bachelor’s degree in business and has been with the company, in one role or another, since he graduated high school. “I have been with the company for 10 years,” says Dunn. “I have been in my current role for the past four.”

What they do

“We repair valves for the oil and gas industry,” says Hughes. “We also deal with the power generation and utilities industry.” JSMV has a 35,000-square foot warehouse out of which they operate their valve consortium. And Dunn says that if it’s valves you’re looking for, “we’ve got all kinds. Gates, globes, checks, plug, and ball valves just to name a few. We deal with almost anything, really. We deal with almost every kind of valve, except for relief valves.”

J~S Machine and Valve specializes in valve repair, but they also stock new valves as well. They take pride in their repair reputation. “We do on-site repair and portable machine work,” says Hughes. We pride ourselves on being a reputable and established company.”

Though they are experiencing a high degree of success, both Hughes and Dunn agree that the current economic climate has both helped and hurt the company. Because the company is tied in with oil/gas and utility companies, which are all doing well because of the historically high prices of fuel, things are not so bad for J~S Machine and Valve.

“As far as oil, gas and power generation goes,” says Hughes, “that industry has been experiencing a steady increase for the past three years. We have been able to expand the business over the previous few years. This is definitely the right economy for us.”

Dunn, though, touched on the challenges the economic downturn has posed for the company. He says one of the qualities that the company has long taken pride in is its free delivery service but those are among things they have had to ratchet back due to associated costs.

The price of fuel means the company has had to consolidate trips, making it more difficult to cater to each individual customer’s needs. “We cannot deliver as much as we used to do,” says Dunn.

On the other hand, since refineries are doing well, they are more inclined to make repairs of their own. “New valve sales have really taken off,” says Dunn. Projected gross revenue for FY08 is US$4 million.

People, etc

JSMV employs between 15 and 20 people from one given time to the next. Employees enjoy an employer matched 401k plan and a generous health benefit program. They can also participate in continuing education opportunities which include OEM, or Original Equipment Manufacturer, training.

OEM training is valuable because the company’s employees are fixing valves manufactured at other factories. As Hughes explains “another factory gives us training and support to fix their products.”

Dunn says that the factory modification repair certifications are of paramount importance to its success, despite stocking basically every valve one might think of on site.

In the end, the guys from JSMV always say that quality matters most. As the company website proclaims: “J~S Machine and Valve has provided over 25 years of successful customer service and satisfaction. Our 24-hour service offers quick shop, in-line and field repairs to gates, globes, checks, pressure seals, control valves, acid valves, and more. JSMV is committed to meeting or exceeding customer requirements for purchasing, service and technical support... and tests every valve sold, both new or remanufactured, in accordance with ANSI, API 598, API 6D, and ASME standards.”

The commitment to detail, coupled with the company’s stellar reputation, means this generation should be in position to pass operations off to the next generation somewhere down the road.