Does anyone have experience with Precision Sheet Metal Manufacturing?

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December 11, 2022

by a searcher from New York University - Leonard N. Stern School of Business in King of Prussia, PA, USA

Hello - I am considering acquiring a company with 3 million in revenues from manufacturing precision sheet metal components, is there anything I should be mindful of, i.e. industry trends, production challenges, etc. ? Thank you!

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commentor profile
Reply by a professional
from University of Dayton in Columbus, OH, USA
Agree with comments above it can be complex and challenging depending on the business model. From my previous experience most sheet metal manufacturing companies have been job shops. This article from 33 years ago is a good look behind the curtain of operational challenges that in some degree or another are effecting the business. https://hbr.org/1989/03/time-to-reform-job-shop-manufacturing
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Reply by an intermediary
from The University of Chicago in Chicago, IL, USA
Also, consider a) Technology impact on CapX, and b) plastics substitution. China could be a threat or a plus with in-shoring.
I have found that such businesses, if there are short-term customers or short-run jobs like it will be if the business serve over-run jobs, exhibit cycles of low profitability.
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