In 1985 I read the book Galapagos by Kurt Vonnegut. While it was not one of Vonnegut’s most popular or critically acclaimed books one facet of it is noteworthy. The book features a handheld electronic device called Mandarax that understands […]
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Putting American Coins in a French Payphone
- February 20, 2015
- Author: John Stampen, Director of Marketing, WMEP
As an undergraduate at UW-Madison I had a somewhat rare double major, namely Scandinavian Studies and Business. To join the two I completed a specialization in International Business. As part of this program of study in 1989 I attended a […]
Exports: Key to a Healthy Future
- February 20, 2015
- Author: John Stampen, Director of Marketing, WMEP
Exports play a key role in our expanding economy. The case for companies to export is ironclad. More growth in our state is coming from exports, and resources are available to make great things happen. The time to jump into […]
Manufacturing Matters! Pre-Conference Sessions
- January 28, 2015
- Author: WMEP
In addition to the Chairman’s reception from 6:30 p.m. – 8:30 p.m. on Wednesday, February 25th at the Hyatt Regency in Milwaukee, we are offering several pre-conference bonus learning opportunities for Manufacturing Matters! 2015 registrants. The downloadable document provides detailed information on these four sessions […]
Breaking Down the Tracks and Sessions at Manufacturing Matters!
- January 27, 2015
- Author: WMEP
We have a terrific lineup of presenters for this year’s Manufacturing Matters! Conference including a great mix of national and state manufacturing experts joined with Wisconsin manufacturing leaders sharing their stories. There are 7 tracks with 3 breakout sessions (beginning […]
Manufacturing Is Well on Its Way to a Renaissance
- January 27, 2015
- Author: John Stampen, Director of Marketing, WMEP
Manufacturing is well on its way to a renaissance. There are many trends behind the revival and many new ideas transforming the way manufacturing is being done. One of the most difficult parts of running a successful manufacturing operation is […]
Manufacturing Matters! 2015 – Yes, there Is an app for that!
- January 27, 2015
- Author: WMEP
We are proud to introduce the MM! Conference Mobile App that provides a guided tour and planning tool for attendees. With the MM! Conference Mobile App attendees can: Browse by day, track, topic or speaker and create a personalized itinerary, […]
Breaking Down the Barriers Between Robots and People
- January 27, 2015
- Author: WMEP
By Rich Rovito, Industry Reporter, WMEP Robots are a way of life for Erik Nieves. A passionate advocate for robotics, he speaks glowingly of a technological advancement known as a telepresence robot that allows him to carry out his job […]
From Lip Service to Full Engagement
- January 20, 2015
- Author: WMEP
By Buckley Brinkman, Executive Director & CEO, WMEP Wisconsin faces a terrific opportunity to accelerate economic growth and solidify our position as manufacturing leaders. One of the necessities to take full advantage of this opportunity will be our ability to […]
Can We Take Advantage?
- January 12, 2015
- Author: WMEP
By Buckley Brinkman, Executive Director & CEO, WMEP It’s a critical time for Wisconsin and the state’s manufacturers. The improving economy and impending manufacturing surge will provide opportunities to solidify – or lose – Wisconsin’s leading manufacturing position. Collaboration and […]
Featured Sidebar Content
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
