Domestic manufacturing, including the industrial sector in Wisconsin, has suffered with the recent and significant loss of military contracts. It’s imperative for the state’s manufacturers who have relied on federal contracts for a major part of their business to adjust […]
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.
Manufacturers diversifying and strengthening to combat downturn in defense business
- Business Outcome: Winning Culture
- August 19, 2015
- Author: Rich Rovito, Industry Reporter, WMEP
October is Manufacturing Month
- August 07, 2015
- Author: Rich Rovito, Industry Reporter, WMEP
Wisconsin, along with much of the nation, currently faces a workforce paradox – high unemployment rates, yet manufacturers are limited by their ability to find skilled workers. Manufacturing Month promotes manufacturing as a viable career in Wisconsin. Manufacturing in Wisconsin […]
Milwaukee, San Francisco best in nation in manufacturing job growth
- Business Outcome: Growth
- August 06, 2015
- Author: Rich Rovito, Industry Reporter, WMEP
Milwaukee and San Francisco saw the highest percentage growth in manufacturing jobs over last year, according to a new analysis by the statistics firm Wanted Analytics. The Milwaukee-Waukesha-West Allis, Wisconsin area saw a 33.5% increase in manufacturing jobs over the same time period […]
Small and Medium Sized Manufacturers (SMMs) and Technology
- July 01, 2015
- Author: John Stampen, Director of Marketing, WMEP
Most small and medium sized manufacturers (SMMs) have difficulty staying abreast of technology because: Change continues to accelerate and take more unpredictable paths, making more frequent trend tracking essential; It’s difficult to find the right people to provide expertise as […]
Where Does Innovation Come From?
- June 30, 2015
- Author: John Stampen, Director of Marketing, WMEP
How rapidly does Innovation change things? How and when should we adapt to it? A hint at answers to these questions can be found in the famous Boiled Frog anecdote. As the story goes (I haven’t actually tried it) if […]
MOC & WMEP: Better Together
- May 27, 2015
- Author: John Stampen, Director of Marketing, WMEP
The MEP system is a terrific resource for small and medium-sized manufacturers (SMMs) throughout the country, but particularly in Wisconsin. The system provides a nationwide network of expertise, with tremendous experience and connections. The two Wisconsin MEPs are particularly strong […]
Gearing up
- May 27, 2015
- Author: John Stampen, Director of Marketing, WMEP
Gearing up is one of those expressions that most of us use non-literally. When we talk about “gearing up” few of us mean changing our cogwheel to one that has more teeth or cogs cut into it. Rather most of […]
Lunch & Learn sessions to focus on Design for Six Sigma
- May 26, 2015
- Author: WMEP
Selecting a site for a new facility can pose a variety of challenges. Numerous factors come into play in the decision-making process. Choosing an appropriate site often is crucial for the long-term health of a business. The Design for […]
Finding Existing Solutions to Overcome Technology-based Problems
- March 30, 2015
- Author: WMEP
Is your company interested in developing a new product but lacks the technology needed to complete it? Do you have product or process problems that could be made easier with the right technology solution? Would you like to find out […]
Tech Scouting and the Death Valley of Innovation
- March 30, 2015
- Author: John Stampen, Director of Marketing, WMEP
We hear about new technology and accelerating change all the time. Great advances are being made in both in the breadth and depth of our research advances. Leaner organizations, reduced resources, and an intense focus on immediate results makes it […]
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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
