Industry: Industrial & Contract
Products: Machining services
New owner Justin Quinn is setting his sights on diversification and geographic expansion for his machine shop in Douglas County.
After six years in the Air Force working as a mechanic on cargo planes, Quinn studied finance at University of Northern Colorado before joining Centennial Bank in 2010. After working in credit and commercial lending for six years, he acquired Focused on Machining in Oct. 2016.
"What attracted me to this industry: I have three uncles who are machinists in Longmont," says Quinn. "I also really missed being mechanical and building things."
But it wasn't easy to find the right manufacturer to buy. "There's not a lot of companies doing this," he says. "I was actually on the hunt for a company for a year and a half."
During the search, he met Focused on Machining founder Rich Pollmiller. "Rich and I had lunch a year into my search and we really hit it off," says Quinn.
While Pollmiller wasn't thinking of selling his machine shop at that point, he soon changed his mind. In Sept. 2016, Quinn told him what he'd value the company at based on the financials and they made a deal. "In 30 minutes, we ironed out the details," says Quinn.
Pollmiller started the company in englewood in 2008 and moved it to Louviers to be closer to his brother's shop, Superior Metal Products. Revenue grew to about $1.4 million in 2014, but dipped to "right under $1 million" in 2016. "Our customer base is primarily aerospace," says Quinn. Medical manufacturers and the valve industry are secondary markets. The majority of customers are located on the Front Range.
Quinn has an aggressive growth plan. He wants to hit $1.5 million in sales in 2017 and $5 million by 2022. "I think it's doable. We've just got to put the systems in place to get there."
With nine CNC milling centers, and both horizontal and vertical machines, the company is focused on "higher-volume parts," he adds. "We have purchase orders that extend many months at a time, and we deliver 5,000 to 10,000 parts over several months."
Quinn is hoping to diversify into new markets. "We are branching out into other states," he says. The company recently landed its first customer in New Mexico.
He also wants to become a direct supplier to aerospace (the company is currently a second-tier supplier) by updating the company's ISO 9001 certification, and move into high-value, low-volume work in robotics and automation as well.
Focusing on both low- and high-volume work is a differentiator. "A lot of shops in town do one or the other," says Quinn. "There aren't a lot of shops that do both."
"As this industry continues to age, there's going to be a big transition as the 60- to 70-year-olds retire," says Quinn.
Challenges: "My challenge right now is continuing to convert from Rich's ownership into mine," says Quinn. "That's going very well."
He says "building out the team” is another challenge. "I've made three hires since I've been here."
Opportunities: "Becoming a direct supplier to high-end aerospace companies" is a prime opportunity, and Quinn sees Colorado's cannabis industry as another potential market. "We're targeting the marijuana industry to make food-grade components for automation."
Beyond Colorado, he's looking for customers in the sister Four Corners states of Arizona, Utah, and New Mexico.
Needs: "Our biggest need is customers," says Quinn. "Finding new customers to meet growth demands."
Another need: "We're actually looking for an ERP system right now," he says. "We're doing everything with spreadsheets right now. It's working pretty well, but I have ERP on my must-do list for 2017."