Success Story
By Ben Nelson and Debbye Omlie
The founders of Pro CNC, a machine shop in Bellingham, Washington, initially set out to become a niche car manufacturer. Such a plan would sound farfetched to most people, but for those young entrepreneurs it made sense. They had met in the early 90's as undergraduates at Western Washington University's Vehicle Research Institute (VRI) and gotten experience building award-winning formula cars.
Although equipped with the skills to follow their dreams, financial realities prevented them from going forward. When the rubber met the road, their plans of producing cars would have to wait; but the training they received at the VRI would not go to waste.
Instead of designing and producing vehicles, the group started a machine shop capable of manufacturing a vast array of products using computer numeric control machines (thus the "CNC" in the company's name). At Western they had learned the ins and outs of CNC machines, which are used in the production of automobiles, and were well prepared to carry that experience over into the private sector.
Pro CNC opened its doors in 1997, in a 2000 square-foot facility near Monroe, Washington. With money hard to come by, start-up financing was partially provided through a second mortgage taken out against a house owned by one of the co-founders. This early period of boot-strapping helped shape the company into the lean and efficient manufacturer it is today.
In only a short period Pro CNC has undergone a remarkable transformation. Relocating to Bellingham in 2001, the company has expanded into a 20,000 square foot facility. Three of the original six co-founders have since moved on to different careers, but the entire group remains good friends, Today, the company is guided by original co-founders Paul Van Metre, president and VP of sales and marketing: Darcy Hughes, VP of corporate administration; and Kelsey Heikoop, self-described "Lean Champion." The trio has combined their talents to make Pro CNC a model for manufacturers not only in Washington, but across the U.S.
A visitor to the Bellingham production facility would be likely surprised at what they saw. With white floors and futuristic-looking machinery, the facility appears more like a scientific laboratory than a dark grease-stained machine shop. Regardless of its look, what's for certain is that the owners have gotten their business down to a science.
As the Lean Champion, it is Kelsey's job to constantly evaluate the company's efficiency in order to make it as systematic as possible. In fact, Pro CNC helps its clients become more efficient by holding "boot camps" for their engineers to teach them how to design parts that are less expensive to make. And with a who's who list of clients from aerospace, medical, and defense sectors, the company is definitely doing something right.
These accomplishments have not gone unnoticed. Strategic growth has been something the owners have focused on, and they are constantly on the lookout for "anything that seems fun or interesting." Pro CNC has diversified its business portfolio by spawning or acquiring several companies they have partnered with in the past: a software business targeted at manufacturers and the rights to a power assisted bicycle that is in development. They are also in partnership with a saxophone mouthpiece design company.
Along this road of success, however, Pro CNC has sought help to improve its business. When the economy screeched to a halt in 2001, the owners began seeing Tom Dorr. "We had just moved to our new building in Bellingham and had increased our investment to create a state-of-the-art machine shop and then 9/11 hit. Running a machine shop is competitive and an easy industry to lose money in," Paul noted. He went on to say, "I am convinced that if we hadn't seen Tom, we would have gone out of business. He has helped us control costs, market in a bad economy, learn how to staff appropriately, and understand all about the financing side of business including managing accounts payables and receivables. Tom has been a mentor that has made a significant difference in our business."
Through the years the co-founders have continued to regularly meet with Tom, and included their VP of operations and company's controller. Every six weeks the group gets together to discuss myriad topics ranging from boosting sales, to maintaining staff in an economic downturn. "Four months it was a different story," stated Paul. "It is either feast or famine. Today sales are up and I am struggling to get product out the door." While business goes through up and down cycles, Pro CNC's relationship with the CEV has been rock steady.
As advice to someone running a business today, Paul recommends, "To not try to go it alone. Get advice from a mentor. If you are good at the technical, but don't know anything about business, it is going to be a lot harder to run the business." If the company continues to grow and branch out at such an incredible pace, that original dream of producing cars may eventually become a reality.