I recently received certification from the TWI Institute as a Job Safety Trainer. Why is that important? In my role as a manufacturing specialist for the Wisconsin Manufacturing Extension Partnership, I’m now able to offer additional and important strategic insight […]
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.
Jerry Thiltgen receives TWI Job Safety Training Certification
- Business Outcome: Certification and Compliance
- June 16, 2016
- Author: WMEP
Five Ways to Leverage LinkedIn for Business Development
- Business Outcome: Growth
- June 16, 2016
- Author: Katie Felten
LinkedIn is the most important social platform for professionals. According to LinkedIn, four out of five LinkedIn members impact business decisions within their organizations. It’s clear that businesses and professionals should want to tap into this audience. Despite this, most […]
Gov. Walker, Briggs & Stratton CEO Teske tout Wisconsin exports, international trade
- Growth
- Business Outcome: Global Expansion
- May 17, 2016
- Author: Rich Rovito, Industry Reporter, WMEP
Exporting provides Wisconsin manufacturers and other businesses with major opportunities for business growth and diversification, Gov. Scott Walker and Briggs & Stratton chief executive officer Todd Teske told a crowd of business leaders that recently gathered for the Wisconsin International […]
Which of the four largest cities in North America is nearest to Wisconsin?
- April 01, 2016
- Author: WMEP
If you can sell your product or service as far away as Kansas City, Omaha, Pittsburgh, or Nashville, then it’s likely you can sell in Toronto. In terms of the largest cities in North America, Toronto is fourth behind Mexico City, New York and Los Angeles.
Governor Walker and Palermo’s CEO Giacomo Fallucca address Manufacturing Matters! Audience
- March 21, 2016
- Author: Rich Rovito, Industry Reporter, WMEP
The Wisconsin Manufacturing Extension Partnership’s Manufacturing Matters! conference drew nearly 450 attendees to the Hyatt Regency Hotel in downtown Milwaukee with an action-packed agenda. The main event on Feb. 25 featured a full day of main speakers and breakout sessions. […]
Wisconsin Manufacturer of the Year Award Winners Announced
- March 20, 2016
- Author: WMEP
Six Wisconsin companies have been awarded prestigious Wisconsin Manufacturer of the Year Awards for outstanding achievements in manufacturing and a commitment to business excellence. Four Grand Award winners, categorized by number of employees, were recognized for impeccable performance across the […]
WMEP’s Baumann to keynote Milwaukee Business Journal Event on Strategic Exporting
- March 20, 2016
- Author: Rich Rovito, Industry Reporter, WMEP
Developing a strategic exporting plan gives companies the ability to thrive in a global economy while boosting revenue and reducing risk. “Strategic exporters make more money and they have adapted best practices as they move from being reactive, or accidental […]
Sharing Talent to Meet Workforce Needs
- Business Outcome: Manufacturing Matters
- January 26, 2016
- Author: Rich Rovito, Industry Reporter, WMEP
Many businesses, manufacturers in particular, continue to struggle to address work force shortages. The sharing of talent pools could provide a much-needed solution. It’s a novel concept but many employment experts agree that a new approach to hiring is needed, […]
Innovation key ingredient to success at Palermo’s Pizza
- Business Outcome: Growth
- January 15, 2016
- Author: Rich Rovito, Industry Reporter, WMEP
Long-term success in the frozen pizza business isn’t just a matter of a proprietary sauce and tasty toppings. Innovation is crucial, even in a mature market. “Relevancy is key,” said Giacomo “Jack” Fallucca, president of Palermo Villa Inc., better known […]
Teel Plastics – A Winning Relationship
- Business Outcome: Winning Culture
- September 24, 2015
- Author: Rich Rovito, Industry Reporter, WMEP
Update 2/26/16: Congratulations to Teel Plastics on winning the Wisconsin Manufacturer of the Year Award! Teel Plastics has forged a relationship with the Wisconsin Manufacturing Extension Partnership that has extended more than a decade. Over the years, projects […]
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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
