SUCCESS TABLES PLANS TO SELL THE BUSINESS
Company descriptionA manufacturing company that specializes in CNC machining
MarketsAutomotive, Aerospace, Medical, Firearms and Fluid Control Values
OwnershipFamily – 1st generation
Year in business10
PEN EngagementThe PEN Group, LLC. began their engagement in 2008. The economic slowdown was impacting the company. Sales were down for the first time in history, employees were on reduced hours and the company profits were reduced to break even.
PEN was engaged to assist in the expansion of sales and the preparation of the business for sale.
The critical path to increased sales was the certification of the Quality Management system to ISO 9001:2008 standards. A grant was awarded to pay 75% of the QMS certification training. In addition, the company’s workforce received training in; Lean, GD&T ASME Y14.5 2008, Problem Solving and a new shop operating system was installed.
The owners became re-energized by the entire modernization and training process. Helped by the rebounding economy the business began a 4 year recovery to increased revenue and profits. In the 4th year sale has increased 100% over 2008 revenue, employment has increased 50%, gross profits are at 40% and the QMS accreditation has resulted in new tier 1or 2 customers versus the tier 3 that existed in 2008.
The owner’s plans to sell the company have been tabled. The company is considering a major expansion in a new emerging technology that will increase sales 100% in the next 3 years. This new technology is now emerging for the R&D stage and the strategic business plan will require both AS9100 and ISO 13485 QMS certification. PEN is actively engaged in providing these serves and is on the advisory Board of Directors.