Ward | Application Preview
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General Information
Business Registration Number: 92-1268728
Location: New York, NY, United States
Length of Operation: 1-5
Number of Employees: 1-10 Employees
Annual Gross Income: Less than $100k
Annual Gross Expense: Less than $100k
Open to Loans: NO
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Funding Usage
Ward’s Manufacturing provides metal fabrication services, starting with cutting and bending metal sheets to create custom metal parts for manufacturers across sectors. We are requesting $475,000 to purchase a state-of-the-art fiber laser cutter and a computerized numerical control (CNC) press brake. The fiber laser can cut flat metal parts to any geometry and the press brake can bend the parts. These metal parts will be used in the assembly of products such as equipment, machines, picture frames, etc. The specific equipment we want to purchase is the Fibermak Raptor 5’ x 10’ 3kW Fiber Laser Cutting Machine and the Speed-Bend Pro 2600 x 100 (8.5ft x 110 US Tons) Hydraulic CNC Press Brake, both manufactured by Ermaksan. Buying these machines will allow us to hire machine operators, creating jobs.
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Business Plan
Ward's Manufacturing is pre-operational and aiming to launch in November 2023. Ward’s Manufacturing will have a Year 1 capacity of 84 orders based on its equipment and employees operating 8 hours per day, 5 days per week, 50 weeks per year. Ward’s Manufacturing can increase its capacity by expanding its working hours if demand is sufficient. Given current market conditions, Ward’s Manufacturing expects demand to outstrip capacity. However, it is projected to operate at 80% of total capacity to account for potential lag in orders, machine downtime, or unexpected employee absence. At 80% capacity, Ward’s Manufacturing expects to earn $932,783 in total revenue in Year 1. The company will have an above average Gross Margin of 38% and will optimize order selection to maximize margin. In Year 2, Ward’s Manufacturing will hire a second shift to increase capacity to 168 orders per year. The company projects operating at 85% of that capacity, earning $2,041,629 in total revenue. In Year 3, the company will purchase an additional CNC press brake and hire an additional manufacturing technician on the first and second shifts to increase capacity to 238 orders per year. The company projects operating at 90% of that capacity, earning $3,146,913 in total revenue. Pending sufficient demand and a strong cash position, Ward’s Manufacturing will consider a more aggressive expansion plan in Year 3. Purchasing an additional laser and CNC press brake would increase capacity to over 400 orders per year with revenue exceeding $5,500,000. The company will also explore additional metal fabrication service offerings. Ward's Manufacturing will hire 1 employee in Year 1, 3 more employees in Year 2, and 2 more in Year 3 for a total of 6 new hires in 3 years. The owners, Kiffin and Kelly Ward, are sibling co-founders who grew up in Rhode Island’s manufacturing community and want to continue their family’s legacy of service. This is a woman-owned company aiming to bring manufacturing back to Rhode Island. Customer Problem The metal fabrication industry has become largely internationally outsourced. Outsourcing is expensive, slow, and risky due to supply chain disruptions, increasingly unstable geopolitics, and inadequate customer service. Equipment manufacturers are increasingly turning to domestic metal fabrication companies that are using outdated, manual technology that produces low-quality, high-cost products with long lead times. Demand is outpacing supply, so many domestic shops are back-ordered and cannot take on new business. One of the biggest pain points for customers is finding a shop that has powerful enough technology to handle their specialty orders (e.g., custom design work, thick cuts, unique metals, small quantities). Ward’s Manufacturing’s Solution Ward’s Manufacturing will use the latest metal fabrication technology, including a state-of-the-art fiber laser cutter and a computerized numerical control (CNC) press brake. The company’s automated, modern techniques are in high demand due to their increased precision, superior quality, improved speed, and greater consistency. Ward’s Manufacturing’s niche will be servicing specialty orders that competitors cannot handle. The company will have the capacity, technology, and talent to work with the customer to design and manufacture custom products. These products will be made in the US, so they’ll protect customers from the political risks of outsourcing, the high cost and long lead times of freight shipping, and inadequate customer service. Ward’s Manufacturing will offer local and accessible production, high-quality customer service, and American-made products to help customers qualify for tax and other incentives.
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Self Identified Competition
The metal fabrication industry is highly fragmented, presenting many competitors. Ward’s Manufacturing has identified three main competition segments; Large domestic metal fabrication companies: (>$30M annual sales, 100+ employees) Small/medium domestic metal fabrication companies: (<$30M annual sales, 10-100 employees) primarily in New England (particularly Rhode Island, Connecticut, and Massachusetts) International metal fabrication companies: Primarily in China, India, and the Association of Southeast Asian Nations (ASEAN) Countries. The metal fabrication industry has become largely internationally outsourced over the last few decades. Supply chain disruptions have increased costs and lead times. Increasingly unstable geopolitical factors have increased the risk of relying on international vendors, particularly in China where the majority of metal fabrication companies are. Working across time zones and language barriers also makes it difficult to access responsive, quality customer support and project management among international metal fabrication companies. Due to high costs, lead times, risks, and poor service, customers are increasingly turning to domestic metal fabrication companies, only to find them using outdated, manual technology that produces low-quality, high-cost products with long lead times. Many of these domestic fabrication shops are back-ordered to the point where they cannot take on new business. Because the demand is outpacing supply, few shops will accept specialty orders that require small quantities, engineering design support, or unique specifications such as thick cuts or uncommon metal. The downstream effects of this blockage are numerous and economically painful across many industries, including construction, automotive, energy and power, electronics, aerospace, and agriculture. Rather than a threat, Ward’s Manufacturing sees their competitors as a path to more customers. They will turn their competitors into partners. As their subcontractor, Ward’s Manufacturing will fulfill their customer’s custom orders that they’d normally pass on due to being back-ordered or due to specialty specifications (thicker cuts, unique metals, small orders, orders in need of design work). This is a triple win. Ward’s Manufacturing’s partners turn a “no” into a “yes” for their customers, expanding their portfolio and getting a cut of business they’d normally pass on. The customers can find a home for their specialty orders. Ward’s Manufacturing taps into existing customer bases and gets more business. There is a strong precedent for referral partnerships in the metal fabrication industry. Technology Niche Ward’s Manufacturing will use the latest metal fabrication technology, including a Fibermak Raptor 5’ x 10’ 3kW Fiber Laser Cutting Machine and a Speed-Bend Pro 2600 x 100 (8.5ft x 110 US Tons) Hydraulic CNC Press Brake. Their automated, modern techniques are in high demand due to their increased precision, quality, speed, and consistency which can handle complex designs and aesthetic requirements. Ward’s Manufacturing will start with a higher capacity fiber laser that requires fewer consumables, time, and post-processing than their competitors who operate outdated waterjet or plasma cutters. Ward’s Manufacturing’s equipment can handle thicker cuts, higher tolerances, and unique metals. Service Niche One of the biggest pain points for customers is finding a metal fabrication shop that can handle specialty orders. Ward’s Manufacturing will take on customers that most shops cannot. They will have the capacity, technology, and talent to work with the customer to design and manufacture custom products, even if they have nothing but a concept. Ward’s Manufacturing niche will be fulfilling smaller quantity orders that need custom design work. These products will be made in the US, so they’ll protect customers from the political risks of outsourcing, the high cost and long lead times of freight shipping, and inadequate customer service. Ward’s Manufacturing will offer local and accessible production, high-quality customer service, and American-made products from a woman-owned company to help customers qualify for tax and other incentives.
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