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contact : 877-856-8588 • [email protected]

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 Matters.

The above two words form a complete sentence and aptly describe the state of manufacturing in Wisconsin and nationally. Manufacturing does, in fact, matter.  Preaching to the choir, no other sector of business has the multiplier effect on the economy […]

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Manufacturing Month is upon us!

The rest of the country is celebrating National Manufacturing Day on October 3rd; but Wisconsin has way too much manufacturing activity to be contained in just one day! We take the whole month of October to showcase our diversity and […]

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Manufacturing Day and Manufacturing Month are just around the corner and there is still time to get involved!

The State of Wisconsin has declared October 2014 Manufacturing Month. Join Wisconsin in this celebration along with the Wisconsin Department of Workforce Development (DWD), Wisconsin Department of Revenue (DOR), Wisconsin Economic Development Corporation (WEDC), Wisconsin Manufacturing Extension Partnership (WMEP), Wisconsin […]

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A meeting of the MEPS

“How would you like to go to a regional MEP meeting?” asked the WMEP’s CEO Buckley Brinkman as he detoured into my office. “A what?” was the response in my head as I mentally ran through the lists of acronyms I […]

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Are you ready for ISO-9001:2015?

The ISO technical committee responsible for ISO-9001 is currently revising ISO-9001:2008 standard with several significant changes to the requirements that will impact all certified companies. A greater emphasis on risk-based thinking More focus on achieving value for you and your […]

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Summer Greetings from the WMEP!

We are seeing tremendous activity this summer across multiple fronts. In addition to our consulting business, we are participating in multiple initiatives to strengthen Wisconsin manufacturing. These initiatives include new approaches to exporting, industrial clusters, additive manufacturing, and workforce development. […]

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Wisconsin Students Bring Home 10 Medals from the 2014 SkillsUSA Championships

The winners of the annual SkillsUSA Championships were announced Friday evening, June 27, at the Awards Ceremony of SkillsUSA National Leadership and Skills Conference. The Conference was held June 23 – June 27, 2014, at the Municipal Auditorium, the Kemper […]

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PSI – Green World… and Bottom Line!

By Rich Rovito, Industry Reporter, WMEP Sustainability can be a terrific way for manufacturers to establish a leadership market position and improve their bottom lines. The Profitable Sustainability Initiative (PSI) refocuses sustainability efforts around a new concept: Resource Intensity. This […]

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Ideas to Market

By John Stampen, Director of Marketing, WMEP “If you can make anything simpler and better – then that’s a good thing.” – Jacob Stampen The above quote is from my great grandfather, Jacob Stampen, who was a Norwegian immigrant and […]

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Kirsh Foundry

By Rich Rovito, Industry Reporter, WMEP As many foundries struggle to survive or have disappeared altogether, Kirsh Foundry in Beaver Dam is going strong and continues to invest in its operations. Kirsh is a manufacturer of high quality, engineered iron […]

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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