WASHINGTON, D.C. – A recent study by the W.E. Upjohn Institute found the National Institute of Standards and Technology’s (NIST) Manufacturing Extension Partnership (MEP) Program generates a substantial economic and financial return of nearly 9:1 for the $130 million annually […]
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MEP Program Shows Nearly 9 to 1 ROI Return to the Federal Treasury
- May 18, 2017
- Author: Tammy Schwarzbauer
Tim Wiora Discusses Course of the New WMEP
- Business Outcome: Administration
- May 18, 2016
- Author: WMEP
Tim Wiora, the new executive director and chief executive officer of the Wisconsin Manufacturing Extension Partnership, is quickly making his mark on the organization. Wiora moved into the WMEP’s top leadership role following an organizational change that went into effect […]
WMEP Names New Board of Directors
- May 18, 2016
- Author: WMEP
For Immediate Release May 10, 2016 For more information, contact: John Stampen at (608) 729-4012 or stampen @wmep.org Madison, Wis. – The Wisconsin Manufacturing Extension Partnership (WMEP) has named a new board of directors following a recent change in the […]
Milwaukee Group Considers $140 Million Smart Manufacturing Hub Proposal
- June 30, 2015
- Author: Rich Rovito, Industry Reporter, WMEP
An effort is underway to create a manufacturing technology institute focused on smart manufacturing that would be based in Southeast Wisconsin. A subcommittee of the Milwaukee 7, an economic development group focused on the seven counties in Southeast Wisconsin, is weighing […]
Profitable Sustainability Portal Provides Web-Based Measurements
- May 27, 2015
- Author: WMEP
The Wisconsin Manufacturing Extension Partnership has developed a portal that provides a web-based tool to track profitable sustainability initiatives by manufacturers. The portal allows diagnostics of a manufacturer’s operations to be conducted “in the cloud.” The information can be used […]
Gamber-Johnson receives Governor’s Export Achievement Award
- Business Outcome: Growth
- May 27, 2015
- Author: Rich Rovito, Industry Reporter, WMEP
Three years ago, Gamber-Johnson’s president, Brian Wagner, attended an economic summit in Stevens Point and listened with interest to presentations highlighting key reasons companies should strongly consider exporting their products. Two points stood out most – 95 percent of the […]
Help US help YOU grow your business and customer base!
- May 21, 2015
- Author: WMEP
Northeast Wisconsin Manufacturers: The secret to growth and new customers is in your own backyard! Fifty-six percent of businesses responding to our Supply Chain Analysis survey to date stated they do […]
Lean Six Sigma in Action
- Business Outcome: Cost and Efficiency
- February 09, 2015
- Author: WMEP
Lean principles help manufacturers Most manufacturing companies have them – ongoing problems that result in scrap or rework on a regular basis. The problems may be addressed, but they’re never fully solved. And it’s no surprise that many firms also […]
Going Lean? Don’t Overlook the Office
- Business Outcome: Cost and Efficiency
- February 09, 2015
- Author: WMEP
Lean office brings high ROI Office functions — order entry, quoting, scheduling, design and engineering, purchasing and accounting — can take up 70% to 95% of the total time it takes to manufacture a product. In today’s marketplace, you can’t […]
WMEP Assistance Fuels Job Creation
- Business Outcome: Growth
- January 15, 2015
- Author: WMEP
WMEP Assistance Fuels Job Creation, Business Growth and Savings for State Manufacturers Manufacturing Clients Report nearly $156 Million in Economic Impact, 829 Jobs created and retained MADISON, Wis. – Services provided by the Wisconsin Manufacturing Extension Partnership (WMEP) triggered a […]
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 bureau@wmep.org 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
