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 […]
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.
High percentage of women manufacturers at Industrial Controls Corp. is a result of finding the best-qualified candidates
- Business Outcome: Winning Culture
- July 19, 2017
- Author: Rich Rovito, Industry Reporter, WMEP
Strategic Workforce Planning Program a Critical First Step of Workforce Optimization
- Business Outcome: Leadership
- July 17, 2017
- Author: Thomas O'Rourke
By Thomas E. O’Rourke The long-running struggle of manufacturers to find and retain employees to fill open jobs has been well documented and a topic of seemingly unending discussion and debate. Is there a true skills gap? Is the issue […]
BEWARE: Allergens Major Source of Food Product Recalls
- Business Outcome: Certification and Compliance
- June 13, 2017
- Author: Peg Dorn
Allergens create a variety of challenges and can be very costly for food manufacturers when not properly controlled. Although food recalls tied to illness outbreaks tend to garner the most attention, undeclared allergens in food are a leading cause of product recalls. Over a […]
“Game Changer – Zero Waste and Box Re-Use”
- Business Outcome: Cost and Efficiency
- May 15, 2017
- Author: Guest Blog
by Lisa Geason-Bauer Many U.S. based corporations along with their global counterparts over the last five to seven years have put programs in place to reduce waste and increase re-use of materials while striving to meet rigorous zero waste business […]
Meeting the Challenges of the Food Safety Modernization Act
- April 07, 2017
- Author: Peg Dorn
Intensified regulations and a greater focus on preventing contamination has created challenges for Wisconsin food and beverage manufacturers.
The Wisconsin Manufacturing Extension Partnership is here to help.
The U.S. Food and Drug Administration’s Food Safety Modernization Act, the most sweeping reform of our food safety laws in more than 70 years, was signed into law by then-President Obama in January 2011. It aims to ensure the U.S. food supply is safe by shifting the focus from responding to contamination to outright preventing it.
The law provides the FDA with new enforcement power designed to achieve higher rates of compliance with prevention- and risk-based food safety standards and to better respond to and contain problems when they do occur.
2017 Wisconsin Innovation Awards
- March 27, 2017
- Author: Guest Blog
Manufacturers in the Spotlight: An Innovative Opportunity We know that manufacturers around Wisconsin are solving problems and innovating every day. Now we have the opportunity to highlight that work to an even bigger audience at the Wisconsin Innovation Awards. […]
Manufacturing Matters! 2017 Draws Enthusiastic Crowd
- March 10, 2017
- Author: Rich Rovito, Industry Reporter, WMEP
The Wisconsin Manufacturing Extension Partnership’s annual Manufacturing Matters! conference attracted a capacity crowd of about 450 people to the Hyatt Regency Hotel in downtown Milwaukee on Feb. 23. Michael Stull, Senior Vice President of Manpower North America, delivered a captivating […]
Meeting Customer Sustainability Expectations
- Business Outcome: Cost and Efficiency
- February 07, 2017
- Author: Rich Rovito, Industry Reporter, WMEP
Original equipment manufacturers, distributors and large retailers alike are keeping a watchful eye on the sustainability practices of their suppliers. Supply chain sustainability is becoming an increasingly important factor for small and mid-size manufacturers, said Mark McDermid, senior manufacturing specialist […]
A Lean Manufacturing Expert Reflects After a Long Journey
- December 15, 2016
- Author: Rich Rovito, Industry Reporter, WMEP
For nearly two decades, Jim Fackelman, a senior manufacturing specialist at the Wisconsin Manufacturing Extension Partnership, has worked side-by-side with operators of small and midsize manufacturers in Wisconsin to make their operations more productive and, in turn, more competitive. “When […]
Transforming a Marketing Degree Into a Career in Manufacturing
- December 15, 2016
- Author: Rich Rovito, Industry Reporter, WMEP
Rick Ray didn’t set out on a career in manufacturing but he quickly found his way into the field and never left. “I’m an oddity. I have a marketing degree but I’ve always worked in operations,” Rick said. Rick has […]
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Congratulations to WMEP ExporTech client
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
