Case Study: Metal Fabrication — Facility Expansion

Need: Facility Expansion

EXECUTIVE SUMMARY

This company started locally as a side endeavor. Their reputation for quality builds traveled rapidly over the first few years. They have branched into several new sectors which means they have outgrown their current space and are looking at a facility expansion. In reviewing the direction their company is moving and the national service area they cover, relocation to an industrial site more centrally located in the US would better serve their commercial customer base.

ABOUT THE COMPANY

HQ Location: Utah

In Business For: 5 years

Annual Revenues: $3M

Customer Base: Domestic, Private Label Nationwide

CHALLENGES

Second, fully operational facility needed over 1,700 miles away.

> Relocation of key employees for new plant setup and training.

> Company needed scalability to increase production to fulfill demand.

SOLUTION

Leap Kapital, in working with local agencies, coordinated the expansion to a second facility with an additional revenue generating option.

Coordination with local, regional, and State level Industrial Development to locate an available industrial site larger than immediately needed. The addtional square footage is being leased to another business, therefore contributing monthly revenue.

> A Real Estate loan for the available facility with a 20 year term proved to be the right fit. 

A new equipment lease for welding robotics as a second part of the strategy allowed for increased production and scalability to fulfill increased demand.

One way Leap Kapital fills the financial gaps in business is with Master Lease

A strategy to increase the factory size combined with a new equipment lease enabled a more lean manufacturing operation and production scalability for the future.

 

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