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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.

Dealing with Devastating Cyber Attacks

By Wil Cox, Account Executive Manufacturers of all sizes are at risk of crippling ransomware attacks and the consequences can be devastating. These attacks involve the “virtual” theft of digital files. Hackers then demand a monetary ransom before the files […]

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Manufacturing Matters! 2018 Recap

An enthusiastic capacity crowd of nearly 500 people from throughout the state recently gathered for the Wisconsin Manufacturing Extension Partnership’s 20th annual Manufacturing Matters! conference in Milwaukee, which featured a keynote address on collaborative robotics and wide-ranging, information-packed sessions focused […]

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McMahon’s “Leading for High Performance” workshop will immerse executives in the strategic side of their business.

Manufacturing executives need to consistently assess and reflect on their businesses when constructing a high-performing culture, according to trainer and executive coach Christine McMahon. She pointed to a 2011 Harvard Business School study that revealed that chief executive officers spend […]

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Transformational Productivity Initiative seeks to transform manufacturing in Wisconsin

Guest Blog by Kelly Armstrong, Sector Development Director; Wisconsin Economic Development Corporation Productivity is the engine of economic growth and prosperity. In its simplest form, productivity is a measure of the efficiency of a person, machine, factory or system, among other […]

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7 Benefits of ERP Software for Manufacturers

Guest Blog by Jessica Gaines, Relationship Manager; WorkWise 7 BENEFITS OF ERP SOFTWARE FOR MANUFACTURERS We could go on and on about how Enterprise Resource Planning (ERP) software is a necessity for discrete manufacturers. Instead, here’s a list of 10 […]

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To sell or not to sell: That is the question

Guest Blog by Ann Hanna, Managing Director and Owner; Taureau Group, LLC To sell or not sell:  That is the Question In today’s environment, a business owner does not have to search far to hear and read about the strong […]

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Building Effective Employee Retention Programs

You post ads, place “We’re Hiring” signs outside your building, offer sign-on bonuses and spend time interviewing, all in the name of hiring employees. Then they join your company and what happens? They leave within the first 30 days or […]

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What is the true value of your business?

  A primary role of a top-level manufacturing executive is to protect the value of their enterprise. By: George Bureau Businesses are typically valued with a multiplier of earnings before interest, taxes, depreciation and amortization, commonly known as EBITDA. The […]

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The Business Building Benefits of ISO 9001

The ISO 9001 standard is all about common sense in managing small and midsize manufacturers. The standard ensures overall excellence in how the business is run, a highly important factor in the quality of a manufacturer’s products. Written by customers to ensure that their […]

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High percentage of women manufacturers at Industrial Controls Corp. is a result of finding the best-qualified candidates

Rachel Yehle worked for three years as an intern at Industrial Controls Corp. while she earned an engineering degree at the University of Wisconsin-Madison. She interviewed for several jobs, at the urging of Industrial Controls president and Chief Executive Officer […]

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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