Company Description: $100 MM manufacturing company
Markets Served: Recreation Products
Ownership: Private–Investment Fund
In Business: 75 years
Business Engagement Initiative:
The PEN Group, LLC was engaged in 2009 to conduct an engineering assessment of supply alternatives for an injection mold product line. We explored two options:
- Develop an in-house manufacturing capability
- Buy an injection molding company capable of producing of the entire product line
The PEN Group provided a comprehensive business plan that evaluated both options.
The company’s product line we evaluated resembled a “razor blade profile” and was growing at an annual rate of 30% utilizing an off-shore source supplier. The supply chain included two suppliers with only one considered stable and reliable.
The PEN Group reverse engineered the manufacturing process requirements for the product line. Based on our findings, we were able to develop a detailed business plan for each option.
Option 1: Develop an in-house injection molding capability. PEN develop a turnkey plan and budget which outlined the:
Facility requirements and layout
Staffing resource plan
Mold design requirements
Specific ROI targets
Option 2: Purchase an existing company. PEN conducted an analysis of capable companies. We included both companies that were listed for sale as well as companies not listed. Onsite interviews, facility inspections and surveys were completed based on a pre-determine profile and a business plan was completed for the three finalists. A final decision was then made by the owner-team.