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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.

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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$8 million in Wisconsin Fast Forward Grants Available

A total of $8 million in grant funds is available to support innovative and collaborative employer-led training solutions to benefit skilled and semi-skilled job seekers and incumbent workers through Round 3 of Governor Scott Walker’s Wisconsin Fast Forward (WFF) program. […]

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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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Northeast Wisconsin Manufacturing Alliance

By Rich Rovito, Industry Reporter, WMEP In northeast Wisconsin, manufacturers are banding together to solve the skills shortage and improve the image of manufacturing careers. They do this through the Northeast Wisconsin Manufacturing Alliance, a manufacturer-led organization working with K-12 […]

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Wisconsin Remains Innovation Leader in Developing Its Workforce

By Rich Rovito, Industry Reporter, WMEP Wisconsin has long been a leader in workforce innovation, starting with its first-in-the-nation apprenticeship program in 1911. Thousands of Wisconsin workers have succeeded in providing for their families with rewarding careers over the past […]

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Pilot projects to launch manufacturing technology acceleration centers

By Rich Rovito, Industry Reporter, WMEP To improve small U.S. manufacturers’ supply chain competitiveness and the rates at which they adopt technology, the National Institute of Standards and Technology (NIST) has awarded nearly $2.5 million in funding for five pilot […]

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Exporting can fuel business expansion

By Rich Rovito, Industry Reporter, WMEP Explosive economic growth in other areas of the world has presented an opportunity for Wisconsin manufacturers to boost their revenue and take advantage of a highly important global demographic – about 95 percent of […]

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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