Government Grant Helped A Die Manufacturer Purchase A New Machining Center, Improve Productivity and Price Competitiveness, Enabling Firm to Venture into Three New Export Markets
Problem/Challenge
A manufacturer of dies for the metal extrusion industry located in southern Ontario, was actively pursuing exporting their products to developing markets. Although the company produces outstanding-quality dies, price is extremely important in selling into these markets. Management felt that it could win more projects if they could reduce their prices while maintaining quality without jeopardizing their profitability. To accomplish these multiple objectives, they decided to purchase a Mitsubishi MH4B Horizontal Machining Center to improve productivity while maintaining the high quality the company was known for. Their reasoning: the improved productivity would enable them to lower their prices. They hoped to finance the purchase in part with the help of government grants.
Solution
The client hired Fair Grant Writing (FGW) to identify grant funding opportunities and complete the application process. Fair Grant Writing identified an available government grant opportunity that could help to finance the purchase of the machining center. Igor Chigrin, FGW’s funding expert, consulted with key members of the company’s management team for less than two hours. Then he and his team completed the application process in short order. That included a complete package of detailed information about the company and the uses to which the funding would be put. The grant was approved, and the company used the grant in partial payment for the equipment.
Outcome/Results
As a result of the installation of the machining center, the client became much more price competitive. The new equipment helped the company achieve cumulative savings of $24,000 a year by reducing slowdown time by 15%, saving 5-7 hours on the production of each new manufactured part, which helped them reduce the final price to their customers. The company produced $500,000 annually with the MH4B center, up 12.5% from a year earlier — with most of the production destined for export markets in developing countries.
“It was perfect timing when we found and hired Fair Grant Writing,” said client’s president. “They are experts in The Funding Portal and CME (Canadian Manufacturers and Exporters); they came with strong references; and they charged no upfront fee. Igor and his team led us through a very complex application process with very tight deadlines to deliver the documents complete and on time. We were very pleased with their performance. We got what we had expected!”
