Southeast Minnesota Job Shop Manufacturing

Not Disclosed, MN

Asking Price: Annual Revenue:
$1,800,000 $1,688,740

Manufacturing: Machinery

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RE: Southeast Minnesota Job Shop Manufacturing Broker: Jacob Petersen

Quick Facts

Asking Price: $1,800,000
Annual Revenue: $1,688,740
Net Profit: Not Disclosed
Cash Flow: $341,340
Total Debt: Not Disclosed
FF&E: $1,066,150
Real Estate: Not Disclosed
Year Established: 1994
Employees: 14
BBN Listing #: 92924955
Broker Reference #: 5106-16441

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Business Overview:

For sale is a manufacturing job shop providing contracted machining services, Services offered include manufacturing tooling and fixture design and build services, design and build of custom automated machines and equipment, custom surface grind services as well as design and build of pultrusion dies. Primary customers are industrial manufacturing companies. Customers are spread throughout the United States and Canada.

Included in the sale is approximately $1.4 million in assets including accounts receivable, inventory, and equipment.

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Property Features and Assets:

Approximately 16,000 square feet of building space is included in the asking price. Facilities are in good repair and adequate for present operations. Also open to creative financing on the building or lease of the facility. Assets = $1,431,150.

Market Competition and Expansion:

The Machine Shop Services industry has declined after a volatile period over the five years to 2021. Revenue has risen at an annualized rate of 1.9% to an estimated $43.2 billion. Although nearly all of this industry's downstream markets expanded in the years prior to 2020 and were operating with improved market conditions, falling metals prices and the COVID-19 (coronavirus) pandemic adversely affected industry revenue in 2020. Further, the pandemic caused the price of steel to decrease 13.5% in 2020, hurting industry revenue in 2020, which dropped 10.5% in 2020 alone, largely offsetting prior gains. Meanwhile, downstream industries have conducted layoffs to cut costs, reducing demand for this industry. However, the industrial production in particular is expected to rally in 2021 as the economy reopens and social distancing protocols are loosened. Renewed investment and military spending, however, are also expected to support a solid recovery, with revenue anticipated to rise 14.2% in 2021. Technological advancement in machining is largely driven by the defense and aerospace markets. These markets require parts that are as lightweight as possible, made to exceptionally tight tolerances and shaped into complex geometries. Industry operators serving these markets have increased their investment in computer numerical control machines that increase automation and precision, leading to a significant rise in the industry's capital costs over the past five years. As a result of rising costs over the period, industry profit is estimated to decrease. Over the five years to 2026 operators will devote further resources to satisfy projected growing demand from manufacturers in markets such as automobile manufacturing, commercial aircraft manufacturing and metal forging. Demand from medical device manufacturers is also expected to increase due to a progressively aging US population with a growing need for medical care. This trend will heighten the need for micromachined products. Additionally, the effects of the coronavirus pandemic are expected to die down early during the period, rebooting the economy and increasing demand from important downstream industries for industry services. As a result, revenue is forecast to grow at an annualized rate of 1.0% to $45.4 billion over the five years to 2026.- The seller projects that with invigorated management in place the company could grow 35% in two years and sustain 10-20% growth per year thereafter with relatively small increases to staffing and small changes to operations.

Reason for Selling:

Owner wishes to retire.

Additional Details:

  • The property is owned.
  • The owner is willing to train/assist the new owner.
  • This is not a homebased business opportunity.
  • This is not a franchise resale opportunity.

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