Commerce’s Automation Loan Program Modernizes Manufacturing and Improves Efficiency While Retaining Montana Jobs
The Montana Department of Commerce is making strides in strengthening local economies and modernizing the manufacturing landscape through the Montana Automation Loan Program. Designed to assist businesses seeking to upgrade or replace production equipment, this program focuses on enhancing efficiency, reducing manual labor and addressing workforce shortages throughout the state. While all available program funds for 2024 have been allocated, applications will reopen this year.
One of the standout beneficiaries of this program is Darcova, Inc., a Billings-based manufacturer with roots dating back to 1904. Originally known as The Darling Pump Company, Darcova has been at the forefront of innovation in the oilfield industry, creating groundbreaking components such as the first composition valve cup and reinforced rubber parts.
With support from the program, Darcova recently upgraded its production capacity by installing a custom laser table and a collaborative robot arm, or “cobot.” These advancements have led to a remarkable 219% return on investment for the company.
Adam Farley, commercial loan officer with Stockman Bank and the participating lender for Darcova’s upgrades, emphasized the program’s significance: “Successful businesses are vital to our communities. The Montana Automation Loan Program provides low-cost financing to local manufacturers and as a lender, they make the process smooth and easy. I’m happy to be a part of the program.”
The impact of these upgrades is substantial. Darcova’s automation enhancements allow for increased throughput, enabling the production of 500 additional parts daily. The cobot arm has also eliminated the repetitive manual tasks associated with injection machine operations, significantly reducing operator strain and improving efficiency. Overall, these improvements contribute to Darcova’s ability to produce 77,000 more parts annually and reduce the need for manual labor, allowing the company to utilize employees for more specialized tasks.
Historically, the Automation Loan Program is a product of the American Rescue Plan Act and aims to modernize manufacturing sectors while maintaining the current workforce. Loans cover up to 50% of the equipment purchase price, including shipping and operational costs. Each business can receive up to $500,000 per approved transaction, with a maximum of $1 million in funding over the program’s lifetime. To qualify, businesses must demonstrate a return on investment of at least 20% and a payback period of fewer than five years.
By facilitating these transformative upgrades, Commerce is sharpening the competitiveness of Montana businesses and encourages manufacturers and lenders to explore how they can participate in 2025 by visiting commerce.mt.gov.
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