SEWNews - February 2013

SEWNews

Saving Pennsylvania Jobs, One Company At A Time

February 2013

Central SEWN Stabilizes REICHdrill and Paves the way for Expansion

REICHdrill engineers, designs, and manufactures drilling machinery for the mining industry. The Centre County company was in formal discussions with the world's second-largest mining equipment supplier, potentially increasing their export market delivery by an anticipated $5 million per year over four years.

However, before they could expand, REICHdrill needed to get its house in order. The firm was referred to SEWN by the Governor's Action Team to address the company's financial, growth, and operational needs.

With clearly-defined issues and a huge opportunity for growth, SEWN engaged the company on multiple platforms. SEWN successfully restructured their bank debt, secured EDC loans for growth, and used value stream mapping to find production efficiencies and reduce their cycle times. Additionally, SEWN leveraged other partners and pulled two IRCs into the project to assist REICHdrill moving forward with their manufacturing efficiencies. As a result, 65 jobs were saved and the company is experience exponential growth.

Northeastern SEWN Engineers a Turnaround

A Northeastern Pennsylvania manufacturer of precision engineered metal components contacted SEWN for financial restructuring. This company supplies a variety of industries including electronics, defense, telecommunications, aerospace, and automotive.

SEWN worked with the company to create an accurate budgeting tool and a current cash-flow analysis in order to accurately capture the company's financial data for refinancing of the company's debt. SEWN also laid the groundwork for further improvements to the company's business plan, staffing, and operations.

Finally, SEWN worked with the company to create new market opportunities for their products, saving 35 family-sustaining jobs.

SEWN Meets Many Manufacturing Needs in Western Pennsylvania

A SEWN engagement began in 2006 as a short succession planning engagement on a referral from the local development corporation. This company is a leader in metal plating, primarily for restoration services. With major changes occurring in its core market and less day-to-day involvement from the primary owner, the company saw declining revenues by 2011. The company's bank then referred it back to SEWN.

SEWN provided a market analysis plan and assisted with the development of a new e-commerce site. Concurrently, the company accelerated the development of a new process for plating plastic instead of metal. This product was the key to opening opportunities in their core customer base.

When SEWN concluded its engagement, the company had launched its new product and was beginning to harvest the fruits of implementing its new marketing strategies, securing the future of its 30 employees.

Southeastern SEWN Guides Labb Machine on the Path to Recovery

"We held on in the recession, but it cost us our working capital and stressed our supplier relationship," stated Bill Wallace, Plant Manager for Labb Machine Shop.

The decline for Labb Machine shop had been gradual, and holding onto employees was difficult. When the rapid infusion of new orders came back, the company faced a number of challenges - financial, loss of critical sills, depleted inventory, and a diminished supplier base.

Initially, SEWN provided financial guidance in terms of negotiating with critical suppliers and understanding the financial aspects of inventory accounting. SEWN also worked with other state agencies to assist with employee retraining. Finally, SEWN helped Labb Machine Shop to find a manufacturing systems consultant who expanded and implemented additional components of the company's shop floor software system.