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SEWN SUCCESS: Machine Shop

A Southeastern PA machine shop lost one of its largest customers and sought assistance from SEWN on how to position their business to attract new clients. Major customers were demanding pricing concessions, while domestic steel price increases made raw material more expensive, creating cash flow issues in every piece of the business. Cost saving opportunities were being pursued, but the decision was made to move to a solutions focus for the business. In addition to these challenges, succession planning issues were being addressed as multiple family members participate in the business.

Meeting and analysis of SMS provided several opportunities to discuss business enhancement options with the client. Based on limited resources, the company was able to reach into market segments that provided better margins and a greater chance for products to utilize expertise. Adding an assembly component made SMS more valuable.

With SEWN’s assistance, they created strategies for targeting specific customers. Significant focus was given to using a manufacturing leader network to gain inroads. Segmenting the business into product structures cast a better light on cost saving opportunities, better utilization of their MRP system and provided accountability for other members of leadership team.

SEWN made introductions to a local SBDC to provide intern support and marketing guidance. Overall, SEWN worked with the company on a revised business plan; new marketing strategy; process improvements; and succession planning. This resulted in the retention of 35 family sustaining jobs.

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