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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.

Manufacturing Is Well on Its Way to a Renaissance

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 […]

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Manufacturing Matters! 2015 – Yes, there Is an app for that!

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, […]

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Breaking Down the Barriers Between Robots and People

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 […]

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From Lip Service to Full Engagement

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 […]

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Can We Take Advantage?

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 […]

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Is 2015 Your Year?

By Buckley Brinkman, Executive Director & CEO, WMEP All signs point to a terrific 2015 for manufacturing operations. The predictions for the U.S. economy are almost universally strong; our manufacturing platform is the most competitive in the world; and manufacturers […]

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Behind the Scenes of Manufacturing Matters!

John Stampen, Director of Marketing, WMEP The fun part of working at the WMEP is that most everyone you interact with wants the same thing, namely success for Wisconsin Manufacturers. Nowhere is this clearer than behind the scenes of our […]

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Are You Ready?

By Buckley Brinkman, Executive Director & CEO, WMEP Many experts are predicting a big year for manufacturing in 2015 and we can help you be ready for the impending surge. The WMEP is one of the most connected and capable […]

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Creating Value Through New Ideas

In the movie The Princess Bride one character, Vizzini, repeatedly uses the word “inconceivable” to describe situations that are unfolding before his eyes, which leads another character, Inigo Montoya, to exclaim, “ You keep using that word. I do not think it […]

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Neenah Paper Success Story

By Rich Rovito, Industry Reporter, WMEP Neenah Paper’s three-year Lean Six Sigma journey has bolstered business at multiple facilities within the company. “We’ve always looked for the best opportunities to turn into cost savings but we weren’t capitalizing on them […]

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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