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Interested in searching on case studies that focus on Certification and Compliance, Cost and Efficiency, Growth or Winning Culture? Simply click on the Business Outcomes box above to filter case studies.

Changing Company Culture in Order to Succeed

Klement Sausage Co. has been undergoing a significant cultural transformation with continuous improvement and leadership development at its core. “Those are the two keys in any manufacturing environment. Creating that mindset is critical,” Klement Chief Operating Officer Ray Deeter said. […]

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SQF and Lean Practices Can Expand Markets

The intoxicating aroma of popcorn permeates the Valley Popcorn plant in Neenah, where business is booming. At the Fox Valley facility, popcorn is produced throughout the day in small batches in an array of kettles and then packaged for distribution to retailers in […]

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Crave Brothers benefit through being SQF Certified

Production employees at Crave Brothers Farmstead Cheese in Waterloo follow meticulous daily cleaning routines throughout the plant to ensure the safety of the cheese that it produces and packages. The routines are part of Crave Brothers’ rigorous food safety program, […]

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Industrial Controls Co. Embraces Change to Boost Productivity

By Rich Rovito WMEP Industry Reporter Creating a more productive work environment has been the foundation of a partnership between The Industrial Controls Company Inc. and the Wisconsin Manufacturing Extension Partnership that took root 12 years ago. The list of […]

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ATCAM retains and grows business through ISO 9001certification

Faced with an extremely challenging deadline to implement corrective actions or risk losing a major customer, Andres Thermal Coating and Machine Inc. (ATCAM) turned to the Wisconsin Manufacturing Extension Partnership for assistance. The challenge for the Little Chute manufacturer began […]

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Solar Power Fuels Energy Savings at Letterhead Press

  Letterhead Press Inc., a New Berlin print finisher and packaging manufacturer, has embraced renewable energy as means of controlling rising energy costs and promoting sustainability. The company has installed a 337-kilowatt array, one of the largest solar fields in […]

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Spiros partners with Consolidated Construction and the WMEP to address growth, improve operations

          Spiros Industries is a small manufacturer that has dealt head on with the challenges associated with strong and steady growth. “We are growing every year and we are trying to grow while improving our operations […]

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Aztalan Engineering reduces quoting time by 50% while dramatically improving their hit rate

Management at Aztalan Engineering Inc. knew the Lake Mills manufacturer of high-tolerance precision parts needed a better and quicker quoting process in order to prevent it from losing business. An initial project with the WMEP involved value stream mapping that […]

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Kirsh Foundry Profits from Sustainability

As many foundries struggle to survive or have disappeared altogether, Kirsh Foundry in Beaver Dam is going strong and continues to invest in its operations. Kirsh is a manufacturer of high quality, engineered iron castings ranging in size from mere […]

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From Skeptic to Proponent – Bel Brands’ Certification Experience

After overcoming initial reluctance, the team at Bel Brands USA in Little Chute turned to food safety certification in its journey to become a world-class operation and soon found the process and the subsequent outcomes to be rewarding. In 2011, […]

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Featured Sidebar Content

Congratulations to WMEP ExporTech client

Lucigen Genomics Award Acceptance

Lucigen Genomics wins the 2017Wisconsin Governor’s Export Award

Winner of the 2017 Wisconsin Governor’s Export Award!

 

 

A primary role of a top-level manufacturing executive is to protect the value of their enterprise.

Businesses are typically valued with a multiplier of earnings before interest, taxes, depreciation and amortization, commonly known as EBITDA. The multiplier is driven by the industries in which a manufacturing firm operates, its current and past levels of profitability and how well it manages the risks that could affect the future profitability of the business.

But EBITDA and other factors, such as gross profit, are lagging indicators, making it important to look behind the numbers to get a crystal-clear view of the factors that can affect the value of a business.

The Wisconsin Manufacturing Extension Partnership’s proprietary PRA™ (Profit Risk Assessment) defines the factors that drive profitability and valuation for an organization while helping to identify and proactively manage the risks. It also helps a company’s leadership team come to consensus on areas of greatest opportunity and risk while identifying specific actions that can be taken to improve profitability and value.

Best of all, the low-cost, high-value evaluation is quick and easy to complete.

Several external factors can affect an organization’s profitability and value, including how it matches up with its competitors and whether the competitive environment is becoming more intense.

It’s also important to examine the overall health of the market in which the business competes and defining its key players.

Is a business too concentrated? Is there too high of a stake in a single area?

It’s not uncommon for manufacturers to have a single customer account for 30 percent or more of their overall sales. That points to risk, in a big way. Markets can dry up and customers can change directions or shift their loyalties, potentially leaving your business in peril.

Assessing the value of a company’s brand is also crucial, as is determining whether its products are positioned as a commodity.

Looking behind the numbers at internal factors also figures into the equation. Is the leadership team engaged and do employees understand the company’s vision? Productivity and efficiency of manufacturing operations plays a significant role.

We often get so engrossed in the day-to-day aspects of our businesses that we don’t connect all the dots. It sometimes takes an “aha” moment for our vision to become clear.

The WMEP’s PRA™- Profit Risk Assessment tool is highly objective and examines one dimension at a time. We will probe and prod to get the truth about the factors affecting a company’s profitability and value and reach a consensus on a follow-up plan of action.

It’s vitally important to take a look at what drives the crucial numbers for your business.

For more information on how you can benefit from WMEP’s PRA™, contact George Bureau at [email protected] or 920-450-7185.

Feel free to download and share our info-sheets on PRA™ PLUS and PRA™.


Get to know George Bureau, Director of Growth & Certification Services, North Region

“What drew me to the WMEP is its excellent reputation, the opportunity to work with great people and most importantly the vision and commitment to make a real difference in growing Wisconsin manufacturing through a range of consulting services,” – George Bureau