Metalforming Matters

About Guest Blogger, Matt Roberts: Matt is an Associate at MelCap Partners, LLC , a middle market investment banking firm, where he focuses on M&A transactions. MelCap Partners helps companies in the following three areas: M&A advisory, capital raising (equity or debt), and other advisory work such as valuations or feasibility studies. Prior to MelCap, he spent several years in management consulting and accounting roles. At MelCap Partners, we are a specialized investment banking firm that advises business owners in mergers and acquisition transactions. Over the next couple months, we would like to dive into some business issues that can have an impact on an M&A transaction. Below we’ll explore management bench strength, how it affects value, and things to consider before selling a business. What Do We Mean By Bench Strength? In an M&A transaction, especially in the lower middle market ($10—$250 million in sales), the strength of the management team will in...

A common theme we have been discussing over the last few months is that every manufacturer, no matter the size, has the potential to integrate smart manufacturing tech into their shop floor and increase their competitive edge in the evolving market. New data is rapidly being released on just how much smart tech is revolutionizing our industry, and we want to keep you updated. Here are some of the new statistics that are currently exciting us: Big changes for client management. One of the most significant transitions happening outside the shop floor is in the sales side of manufacturing. No longer will “relationship management” be a common term – instead, we are moving to “relationship intelligence.” The encouragement of this new technological capability is not to eliminate the sales team, however; groups like SalesforceIQ who are spearheading these initiatives simply want to create a way to strategize best tactics and keep customer priorities at the forefront. Increased productio...

Guest Blogger Kelly Barner, Editor,  Buyers Meeting Point  Think globally, act locally. – Paul McCartney …except when to do so causes more harm than good. – Kelly Barner As consumers of goods and services, we are constantly bombarded with feel good messages about the companies we buy from. Green production, sustainability, and local sourcing: it is easy to take for granted that these programs are in everyone’s best interests. After all, why wouldn’t we want the companies we patronize to keep the bigger picture in mind and take every opportunity to do a little bit of good in the process of making a profit? Business to business operations have to take a different kind of approach to such initiatives as their immediate customers are usually more motivated by efficiency and innovation than socially-oriented programs. Procurement and purchasing professionals play a unique role in B2B local sourcing; we have to outline the pros and cons and help the rest of the co...

Blogger: Allison Grealis Vice President, Precision Metalforming Association President, Women in Manufacturing   We know that manufacturing needs millennials, but recent research proves that millennials need manufacturing as well.  This is not going to be another article about the skills gap in manufacturing.  We all know about the millions of open jobs and how the number is only going up with daily retirements.  But replaying these same dire predictions and hoping they will attract new workers is like putting an unpopular song on repeat and hoping people start to dance. I have been working with the Precision Metalforming Association (PMA) and Women in Manufacturing (WiM) for more than a decade.  Over the years, I’ve seen many workforce development initiatives come and go.  Too often, they fail because the focus is on the industry and not on the worker.  That’s the wrong strategy.  We need to flip the paradigm and start from scratch. ...

Blogger: Pete Ulintz Technical Director,  Precision Metalforming Association  Prior to the discovery of metal, people used simple hand tools crafted from bone, rock and wood. After fire was discovered, humans soon learned that adding heat to certain rocks (ores) would free the metal from the rock. Eventually, the art of extracting and smelting metals and forming them into usable objects evolved. This practice is commonly referred to as metalworking. Metalworkers were considered very valuable members of early societies. As more and more items and tools began to be made out of metals, more people were needed who were skilled in the craft of metalworking. Objects made out of metals were necessary for industry, farming, jewelry making and defense purposes.  Old coins show that the art of die sinking - a process to create a specific size or shape cavity or opening for casting or forging - was known to the ancient Greeks at least back to 800 B.C. (ref: J.L Lew...

Blogger: Pete Ulintz Technical Director, Precision Metalforming Association  Many contract stamping manufacturers have the ability to build their own stamping dies onsite, in their own tool room. On occasion it may become necessary to buy tooling from an outside source. This is commonly referred to as outsourcing. Outsourcing may be the required due to excessively high workloads in the tool room or short delivery requirements from the customer. For some companies, outsourcing may be part of an emerging or existing business strategy.  Sometimes, it is simply be a better economic choice. When considering to outsource any tooling, either domestically or internationally, you should first conduct a “make-or-buy” study first. A high-quality make-or-buy study ought to include a thorough evaluation of the following: Design and Engineering Capability: Does the project require you to have die designers and engineers on staff with varied experiences? Does the project requ...

Did you know that 91% of Millennials plan to stay in a job for less than three years before moving on? Imagine your own business’s turnover rate if every new employee you hire will only be there for a maximum of three years. Add that to the baby boomer retirement rate of nearly 10,000 people leaving the workforce each day in the US, and that is a lot of holes to fill. Those are some intimidating stats! All that considered, let’s think beyond the skills gap for a moment. How does this turnover rate favored by Millennials affect your business as an operation? We asked ourselves this question and the first thing that came to mind was: “inefficiency.” When you consider the amount of work and time that goes into each new hire, from the hiring process itself to training to probationary periods and more, not only are resources constantly redirected from the shop floor to the training room, but the risk of error rises, too. How can you prevent the same mistakes from being made by each cy...