Contract Machining

Established in 1985, this privately owned, family held company has a focus on machining medium to large castings as well as weldments or bar stock. It is located in northern Illinois in a leased facility. The current lease would be assumable by any new owner.

Eleven people are currently employed full time in addition to several part time, non-union persons. Many of these people have been with the company for many years and are well trained for the work to be done. The benefit package is commensurate with the industry.

This is a machined parts manufacturer serving primarily commercial clients on a perpetual basis, providing clients with products for periods frequently in excess of ten years. The company?s focus on machined parts for industrial and agricultural needs as well as its ability to handle very large contracts and work with a variety of materials, has enabled the business to cater to the needs of clients in diverse industries.

The Company strives to ensure that every part is machined to a degree of quality that is generally not offered by competitors while at the same time fulfilling large ongoing contracts that generate a continuous workflow from large manufacturers and businesses. These capabilities have enabled the company to build and maintain its regional market position.

The company's mission is to provide quality parts and on-time delivery at reasonable prices.

The Company offers a product diversity and quality not provided by competitors. The company has developed long-standing relationships with companies in multiple industries, allowing them to sustain a strong market position and continuously establish additional business presence in more expansive markets.

The business has developed a reputation for completing quality work on time as evidenced by many repeat customers. The entire company is very service responsive, driven to meeting or exceeding the needs of their customers. It is not unusual for one of the owners to personally deliver a part to a customer in order to meet a delivery schedule. Many of the products are found in industrial applications, off the road vehicles, cranes, and pumps. They will normally be a tier 2 or tier 3 supplier with exceptions.

Most sales are by repeat applications, orders through word of mouth based upon their reputation. It is likely that the greatest growth opportunity could come from the addition of a full time sales/marketing parson who could pursue new market opportunities. The type of work performed lends itself to markets as yet untapped. With such a focus, significant growth could occur. Capacity for meeting the new demands should not be a problem since the company is currently operating a single shift.

The company historically achieved revenues of almost $2,000,000. In 2009, the company was hit hard by the economic downturn. The owners proved to be resourceful and reduced the size of the company and relocated to smaller, more cost effective facilities. As evidenced by the financial summary, they have again achieved profitability and are well positioned to achieve continued profitable growth.

The current owners would remain for an agreed upon time to affect an orderly transition. Some ownership financing could be arranged. New, aggressive ownership coupled with a higher level of focus on sales makes this a very attractive opportunity for either financial or a strategic buyer.
The company is being marketed as a turn-key operation as industry associations and business relationships will be passed on to new ownership along with all equipment, tool, machinery, and client lists necessary to ensure a continued success. Current ownership is willing to negotiate financing a portion of the sale.