Oct 10, 2016 — Established over 30 years ago, the Company is a well-diversified general machine shop located in Southwest Michigan. In addition to machining, the Company also offers welding services and light metal fabrication. The Company is well-known and respected in the local manufacturing community for its customer service, top quality products and on-time delivery. Long-time customers include recognized names.
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Long-term Production Agreement – The Company was recently awarded a purchase order to machine parts for recognized customer. This is projected to generate an estimated $40,000 per year in revenue and also provide the opportunity to service the products for the next 20 years.
Extremely Loyal Customer Base – Due to the Company’s excellent reputation and its long-established business relationships with other companies, its customer-base is very loyal.
Autonomous Organization – The employees function as a team and are very competent and responsible. This allows the current owner to provide general oversight of the operation without being overly involved in the day-to-day shop floor operations.
Gain ISO Certification – The Company is not ISO Certified, which has caused it to lose jobs and the opportunity to bid on them due to the lack of certification in this regard.
Invest in Sales and Marketing – New sales are generated organically by word of mouth and referrals from existing customers. Working with a commissioned salesperson may be a beneficial approach, which the Company has never attempted. From a marketing perspective, investing in an updated website and search engine optimization could yield significant new customer and job quoting opportunities.
Boost Margins with Greater Use of Technology – Prudent investments in the acquisition of technology would help the Company to increase its profitability. Because the Company’s competition has been limited, the current owner has not had the impetus to purchase CAD/CAM software or rely on sophisticated strategies such as mobile robotics, high-speed data feeds or live tooling to drive down costs. Optimizing operations with the implementation of shop floor management software would also enhance profitability.
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