Production Machining

AUG 2014

Production Machining - Your access to the precision machining industrial buyer.

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20 PRODUCTION MACHINING :: AUGUST 2014 Metal Seal Precision Invests in Growth M etal Seal Precision Ltd. is a full-service manufacturer of precision metal components and subassemblies, located in Mentor, Ohio. Te company was formed in 2011 through a merger between Arrow Manufacturing Inc. and Metal Seal & Products Inc. "We brought Arrow Manufacturing and Metal Seal & Products together in 2011 and have seen about 20 per- cent growth per year since," says John Habe IV, president of Metal Seal Precision. "Our main facility is 160,000 square feet, and we have about 250 employees. We plan to con- tinue growing in many ways, including acquiring other shops." According to Mr. Habe, Metal Seal is unique because the management team understands the value of the compa- ny, the importance of margins and makes specifc plans to achieve goals. "One of the problems in our industry is that although shop owners are good at running businesses, they aren't as good at deciding whether, or when, to sell or transition into new areas," Mr. Habe says. "Our management team estab- lishes a need for growing the value of the company 20 per- cent each year, then we invest in that growth." Mr. Habe views owning a precision machining company as an investment, likening it to investing in stock. "Investing in a risky stock that doesn't yield returns is a bad investment," Mr. Habe explains. "Te biggest prob- lem becomes holding onto a losing investment. Know that value of your company, set goals and craft a plan to achieve them so that you have growth in the long run." Metal Seal serves a variety of industries, however, au- tomotive composes 60 percent and frearms make up 20 percent of the company's business. Mr. Habe explains that Metal Seal's business in the frearms industry began be- cause of growth planning. When automotive accounted for 80 percent of the company's business, they began research- ing additional industries that would ft with the compa- ny's capabilities and identifed the frearms market to be a good ft. From the Metal Seal & Products side of the merger, the company has been a PMPA member since 1956. Metal Seal regularly attends PMPA's national events, including the Annual Meeting, National Technical Conference and Man- agement Update Conference. "We learn a lot of valuable things that help our business through participating in PMPA," Mr. Habe says. "Member- ship provides an excellent source of information." Along with national events, the company takes advan- tage of networking and shared knowledge, as well as list- serves for selling and purchasing equipment. "Te top beneft of being a member is the knowledge of the other shop owners and their willingness to share it and help each other out. It's a really open association," Mr. Habe says. "Te other owners give great feedback when we have a problem that needs to be solved, and if we con- tact the PMPA staf, they point us to the right resources or members to help us out. PMPA membership is a great investment for Metal Seal." Metal Seal Precision Ltd. is located at 7333 Corporate Drive, Mentor, Ohio 44060. Phone: 440-255-8888. Website: metalseal.com Photo courtesy of Metal Seal Precision Ltd.

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