Making Chips Podcast for Manufacturing Leaders

In this episode of Making Chips, Jim and I chat with Paul Van Metre—the Co-Founder of ProShop ERP—about the process of selling his machine shop. We dissect the process, including how to understand the valuation of your company and how to make your shop more attractive to potential buyers. If you're considering selling in the next few years, this episode is full of actionable tactics and strategies that will help you succeed. BAM! - Jason Zenger Segments [0:07] Amper Technologies machine monitoring systems [3:10] How to sell your machine shop [5:11] Ozark Technical Community College offering a two-week manufacturing bootcamp [7:49] Jim shares what's new at Carr Machine [8:42] Paul Van Metre's experience selling his machine shop [13:42] Is this a big change in the manufacturing industry? [15:27] Why would a strategic buyer pay more? [16:40] Understanding the process of valuation [17:35] Check out ProShop ERP for more information on manufacturing software! [26:10] The experiences of Paul's customers buying shops [28:12] How to make your company more attractive for buyers [30:53] How buyers can make sure they're getting a fair valuation Now is a great time to sell—or buy—a machine shop I bought ZENGERS from my Dad in 2019, right before the pandemic hit. learned that there's a lot involved in buying/selling a machine shop. Not only that, but it takes multiple years to get to the point to learn how to run a shop by yourself. Running any business that employs a team of people takes a lot of work. A lot of people are looking to retire and sell their machine shops. The youngest people of the Baby Boomer generation will be 65 by 2030. And of the 18,000 machine shops in America, the majority are owned by Baby Boomers. The vast majority will have some type of transition of ownership in the next 10–15 years. Jim is getting calls from M&A companies all the time about buying his shop. He isn't even close to ready to sell. I'm on the buy side, and I think this is a great time to buy a machine shop. Whether you want to merge, participate in a roll-up, etc. now is the time. Even if you're not ready for several years, you need to start planning. The experiences of Paul's customers buying shops Paul notes that owning a business is one of the most significant financial decisions anyone can make in their lifetime. These shops are the baby of their owners. They've poured 10, 20, 30, 40+ years into them. Leaving that behind and passing it on to the next generation is a difficult and taxing process. Some shops may close their doors and sell off their machinery. A client of Paul's, Mike, was deeply involved in the M&A and private equity space. He was trying to sell a shop where the owner wasn't interested in making her business attractive for sale. They couldn't sell the shop for years. So Mike decided to buy the shop himself. He knew it was a good business at the core and got it for a great deal. He also recently acquired another machine shop. Paul worked with a small shop in Colorado—Focused on Machining—who was in banking before moving into manufacturing. He looked at 4–5 shops before landing on this one. Because he was in banking he understood the financial side and has done an incredible job growing the business. Paul's experience selling his machine shop Pro CNC was founded in 1997 when Paul was just 23—straight out of college. When they sold in 2014, they were a mature company with 17 years of experience under their belt (Paul shares his story in episode #98 of Making Chips). In hindsight, Paul had been preparing the company for sale for many years. They started hiring people to replace the three partners so they weren't working in the business every day. They then hired an M&A company to take them to market (the whole process took around a year). Sadly, Paul points out that 80% of businesses that get listed for sale never sell. Many businesses end up selling off their assets. Those people are likely making only a fraction of what their company could be worth. So how do you set your business up for success? What can you do now to make it more attractive to future buyers? Listen to the whole episode to learn the process! Resources mentioned on this episode Get The Boring Bar Newsletter - Text CHIPS to 38470 to subscribe! Ozark Technical Community College offering a two-week manufacturing bootcamp Paul Van Metre's Story: Episode #98 of Making Chips Check out ProShop ERP for more information on manufacturing software! Modern Machine Shop magazine Focused on Machining The E Myth: Why Most Businesses Don't Work and What to Do About It Built to Sell: Creating a Business That Can Thrive Without You Connect With MakingChips www.MakingChips.com On Facebook On LinkedIn On Instagram On Twitter On YouTube

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In this week's episode of MakingChips, hosts Jim Carr and Jason Zenger bring in Federico Sciammarella, the President & CTO of MxD, to discuss the basics of cybersecurity, including the types of cyber attacks, and how a manufacturing leader can equip their shop with a strategic plan to prevent and deal with potential cyber threats. Segments 0:08 | Amper Technologies pilot program for machine monitoring 1:21 | Jason introduces manufacturing cybersecurity as the topic of the episode 4:57 | Jim and Jason talk about what's new at their businesses 5:28 | Jason introduces the episode guest: Federico Sciammarella, the President & CTO of MxD 6:52 | Jason discusses manufacturing news, including a press release on the FBI's internet crime report 10:17 | Jason explains Business Email Compromise, a type of phishing attack 12:21 | The hosts mention another type of cyber attack, Ransomware 13:52 | Jason mentions Malware attacks due to malicious software and brute force attacks 15:44 | The hosts and Federico discuss how to avoid and prevent coming under cyber attack 17:40 | ProShop ERP is being used in shops across the country 20:46 | Federico shares advice on how to avoid ransomware and how to prepare your business for potential cyber attacks 25:31 | Federico explains how MxD helps strengthen cybersecurity in the manufacturing industry 30:18 | Jason asks what a manufacturing leader can do to create a strategic plan to prevent cyber attacks 34:16 | The hosts share their thoughts on the new information they learned during the episode

In this week's episode of MakingChips, hosts Jim Carr and Nick Goellner talk with Nick St.Cyr, a Product Manager at Methods Machine Tools, about his history in the manufacturing industry, the role of a product manager, and the importance of establishing a vision of the future for your company. Segments: 0:11 | Jim mentions his experience with Amper Technologies machine monitoring systems through their pilot program 2:12 | Nick G. and Jim discuss CARR Machine & Tool's move to their new, upgraded facility 3:40 | Nick G. talks about the current state of the manufacturing industry supply chain and reasons for the disruptions 7:30 | Jim introduces special guest Nick St.Cyr, a Product Manager at Methods Machine Tools, where he oversees the design, sales, support, and integration of MMT machine tools 9:45 | Nick S. shares his background and history in the manufacturing industry, and talks about his current position and responsibilities at Methods Machine Tools 17:14 | Jim talks about it's important for machine shops to have a vision of the future 18:22 | Nick G. mentions how he sees ProShop ERP being used in shops across the country when he travels 19:22 | Jim explains the progression of his shop towards the established vision 21:40 | Nick S. discusses the expansion of the Methods facilities as they've grown 24:25 | Jim asks Nick S. about how Methods is preparing for the industry in the near future 26:30 | Nick G. asks how Methods is able to offer such quick, custom machine orders 30:38 | Nick S. talks about the change in the relationship between the product manager and the customer 33:52 | Nick S. shares his thoughts on automation's role in the future of manufacturing 38:01 | Nick S. mentions taking a focused look at current products to create a roadmap for the future product lines and features

In this episode of MakingChips, hosts Jim Carr and Jason Zenger meet with Paul Van Metre of ProShop ERP to discuss 10 things to consider when going through the process of getting AS9100 certified. Segments: 0:13 | Jim talks about his time using Amper Technologies machine monitoring systems under their pilot program 2:27 | Jim shares manufacturing news about past experiences with IMTS Rockstars and the current boom in manufacturing 4:24 | Jason mentions his 2021 sabbatical and how it's okay to take a break from work 6:04 | Jim introduces the topic of the episode and offers questions you can ask yourself to decide if AS9100 certification is needed 8:58 | Jason introduces this week's guest: Paul Van Metre of ProShop ERP 10:45 | Paul talks about his time at his former company implementing AS9100 features into ProShop ERP 12:30 | Jason asks if a cutting tool distributor would benefit from being AS9100 certified 25:10 | Paul shares how ProShop ERP can help you build your process for getting AS9100 certified

In this episode of MakingChips, hosts Jim Carr and Jason Zenger talk with Peter Eelman, Vice President and Chief Experience Officer of AMT, about IMTS 2022, the return of their in-person trade show, and what's in store for the future of IMTS events. Segments:0:08 | Jim talks about his time with the Amper Technologies pilot program for machine monitoring systems 1:27 | Jim and Jason introduce the episode and their past experiences with IMTS events 8:00 | Jason shares manufacturing news regarding Xometry's move to the public market 10:16 | Jim introduces their guest Peter Eelman from AMT to discuss the history and return of IMTS 16:54 | Peter talks about the effect of the COVID-19 pandemic on IMTS, and how they were able to adapt to the situation 20:33 | Jim asks Peter about the future of IMTS, as both physical and virtual events 23:21 | Peter explains the scale of IMTS, and its effect on the industry and the Chicago area 26:57 | Peter describes what's next for IMTS, with the return of the physical event in 2022 30:20 | Jim asks about the future of automation in manufacturing, and how IMTS 2022 will feature it 34:52 | Peter explains how IMTS participants can prepare for the 2022 event and connect with other manufacturers through their website 38:30 | Jim talks about the upcoming Fanuc & Mitutoyo demonstration from CNC Machine Services Inc, and how you can register for the free event

MakingChips hosts Jim Carr and Jason Zenger sit down with Akshat Thirani, the CEO and Co-founder of Amper Technologies, Inc., and Charles Morley, the President of Schleifring Medical Systems, to talk about how Charles implemented Amper technology in his shop, and the benefits it has had on his business. Segments: 0:21 Nick talks about how he sees ProShop ERP being used in shops throughout the country. 4:24 Jim and Jason share what's new at their companies and at MakingChips HQ 6:06 Jason discusses new economic inflation data relating to manufacturing 7:50 Jason introduces Akshat Thirani, CEO and Co-founder of Amper Technologies, Inc., and his history in manufacturing 9:20 Jim introduces Charles Morley, the President of Schleifring Medical Systems, and his relation to Amper Technologies, Inc. 11:27 Akshat explains how Amper helps manufacturers be more Lean and improve day-to-day operations on the shop floor 13:17 Jim talks about his experience using Amper technology on his machines 15:53 Charles shares his background with Amper and how he implements and monitors their technology in his factory 18:57 Nick explains how you can source high-volume projects through the Xometry network 19:49 Charles discusses how Amper allows for collection of real, trackable efficiency data and can help increase productivity 23:26 Akshat talks about the simplicity of integrating Amper on the shop floor 24:45 Akshat explains the different ways the data provided by Amper can assist in company growth 26:58 Jim mentions that he shows off his shop's Amper data while prospecting new customers 28:32 Charles shares why he chose Amper over other machine monitoring options 31:30 Charles explains how Amper technology relates to his shop's Lean process 33:52 Akshat talks about how Amper offers a trial program for their technology 36:12 The hosts and guests offer their final thoughts on how this technology can improve many aspects of a shop

Hosts Nick Goellner, Jim Carr and Jason Zenger are joined by Mark Cunningham and Kim Akimoto from CLEAR Solutions Sales Consulting to discuss the differences between product and sales management at manufacturing companies, and how strategic sales tools can lead sales teams to success. Segments: 0:06 Jim talks about how he found an easy-to-install machine monitoring system from Amper Technologies. 1:37 Nick introduces the topic of episode: Product Management vs Sales Management 3:01 The hosts discuss what's new at their companies 4:21 Nick shares some manufacturing news about the computer chip shortage 8:53 Nick introduces the guests: Mark Cunningham and Kim Akimoto from CLEAR Solutions Sales Consulting 11:57 Mark explains his time spent in the business, and what opportunities he saw 13:44 Jason discusses the dynamic between himself and his wife in their business 14:12 Mark tells how he got connected with Nick and Hennig, Inc. and the projects that he helped them with 18:15 Nick mentions how he has seen ProShop ERP being used in shops across the USA 19:18 Mark shares how he develops electronic sales playbooks and how they can be used 22:50 Nick talks about how he restructured his sales management and business development units 26:19 Mark discusses the difference between product and sales management 28:10 Kim shares her story, from law school to a strategic sales consultant 30:26 Mark talks about how CLEAR Solutions Sales Consulting leads clients to the right solutions for their businesses through sales tools

In this episode of MakingChips, Jim Carr, Jason Zenger and Nick Goellner discuss Retirement: Yes, No or Never. This could be a step in evaluating your decision whether you are a manufacturing leader at the highlight of your career or at the beginning stages of your career with plans for greatness. Segments: 0:14 | Jim talks about Amper Technologies, machine monitoring system, easy to install with minimal onboarding 3:08 | Jim, Jason and Nick talk about retirement, how manufacturers are approaching retirement age 7:55 | The hosts announce great news that is happening on September 23, 2021. MakingChips is having a Celebration for Manufacturing Leaders. 10:42 | Nick discusses with Jim and Jason, an article from Modern Machine Shop, March machine tool orders have been the biggest growth since 2019, unit orders have also increased 15:35 | Nick, Jason and Jim mention Xometry - custom manufacturing on demand 16:42 | Retirement talk. 17:25 | The hosts discuss how to tell if you are ready for retirement and signs you are NOT read for retirement. 29:55 | What are your takeaways from this episode?

In this episode of MakingChips, Jason, Jim and Nick discuss the R&D Tax Credit. This could be a huge saving for your manufacturing company, but please don't take this episode as legal, accounting or any similar advice; you should contact a professional after you have listened to this episode. Segments: 0:40 | Jim points out that he utilizes ProShop ERP tool "Work by Industry Dashboard" to receive real time data 3:12 | Jason asks Nick and Jim "Do you guys like paying taxes?" 3:45 | Jason references Oliver Wendall Holmes, Jr., Former Associate Justice of the Supreme Court - quoted "Taxes are what we pay for a civilized society" 4:22 | Jason references Billings Learned Hand, Former American Judge and Judicial Philosopher who served in the U.S. District Court of Appeals quoted "Anyone may arrange his affairs so that his taxes shall be as low as possible; he is not bound to choose that pattern which best pays the treasury. There is not even a patriotic duty to increase one's taxes" 9:43 | Jason shares manufacturing news - what are legislators trying to accomplish, when they come out with a new tax law? 12:45 | Jim calls Paul Van Metre of ProShop ERP to talk about how a client of his utilized the R&D Tax Credit 19:34 | Jason explains what type of research qualifies for the R&D Tax Credit 28:14 | Jim talks about ProShop ERP, to record Documentation Data Metrics 29:34 | Nick, Jim and Jason discuss what may qualify you for the R&D Tax Credit 32:40 | The hosts offer their final thoughts