How do the big guys notice the small players, and how can machine shop start-ups set themselves up for success?
Starting and operating a business can be challenging, especially in a highly regulated industry where safety is a top concern – while dealing with workforce shortages and keeping up with rapidly changing technology. Small machine shops in the Northwest face the additional challenge of building brand awareness and finding work in a competitive space. In this story, we talk to two machine shops, Yakima Machine & Prototype and Marvel Manufacturing Company, as well as aerospace manufacturing expert Garry Hojan of JH Aero, to find out how to compete successfully and build a business.
Yakima Machine & Prototype is co-owned by Aaron Collier and Dorian Kensok, a husband-wife team out of Yakima, Washington. They started the business in early 2021 following lengthy careers – Aaron served in the Air Force and spent 20 years in manufacturing with them on C-141 and C-17 cargo planes. He has also worked in personnel and operations management. Dorian has 23-plus years as an art director and graphic designer in her own business, serving Nordstrom, REI, Amazon, and Puget Sound Energy and Tacoma Public Utilities. They aim to do business throughout the Pacific Northwest.
They said starting a business was natural, as both their parents owned and operated businesses. Dorian said, “We work well together, and our skills make us better together.”
Garry Hojan of JH Aero has been in the aerospace industry for 25 years and has worked for two commercial airlines, Delta and American. He spent about 17 years leading composite aircraft float company Aerocet of Priest River, Idaho. Regarding the aerospace industry, he said, “It is a large industry, and there are many players. It is stable, although it can sometimes get volatile, but it is a growth industry.” He also said it is a good industry from the standpoint of higher-paying jobs and is also a global industry that provides opportunities.
Garry reflected on one big industry challenge for small shops getting involved: the importance of safety, quality, and inspection. “The FAA wants cradle-to-grave traceability; you want good parts that meet the customer’s drawing. Should something go awry, you must trace them out for every aircraft they were on. It behooves a machine shop to trace everything they do. Who cut the material; who inspected the materials; this goes to work orders.” His recommendation is to set up a quality management system as a foundation.
Fortunately, Marvel Manufacturing and its owners, Marshall and Reionda Taylor, in Lewiston, Idaho, have set up a quality management system for their two-year-old business. Marshall said, “During my role as production manager at my previous job, I spearheaded the implementation of the AS9100 and ISO 9001 certification. This work allowed me to become quite familiar with the standard.”
The Taylors also had deep business experience before starting the company. Marshall is a private pilot and has worked most of his career in precision machining in various sectors: fiberoptics/communications, life sciences/biomedical, flow control/metering devices, semiconductors, energy/power distribution, and firearms. Reionda has 20 years as a CPA serving businesses in their community. She said, “While I once would have said I never wanted to own a business, my adventurous husband had a desire to build a business, and with my encouragement, we embarked on the entrepreneurial journey and are appreciating the process of learning and personal growth that has come from it.” Geographically, Marshall said, “We serve customers across the country, but our target market is west of the Rockies, specifically the Pacific Northwest.”
Marvel Manufacturing has 2,000 square feet and is preparing to hire an employee. Yakima Machine & Prototype is moving from 1,000 square feet in the fall of 2024 into a new shop with 6,000 square feet and five full-time employees by Q1 2025. Marvel has done some aerospace work and is looking to grow that industry. Yakima said two of their biggest customers manufacture aerospace components and ground support equipment. They haven’t yet broken into the space industry, but they hope to.
Marshall said one of the challenges of courting a new customer is finding the right person within an organization who makes purchasing decisions and forming a relationship with them. But he said, tongue-in-cheek, “When it comes down to it, the machine doesn’t know or care what industry the part is for. The toolpaths are the same, the CAM software is the same, and the same processes are used to manufacture the parts.” He added that finding the right contact “usually requires more than sending one email or phone call. Buyers, engineers, and production planners all have people they prefer to work with and often have been for years. I completely understand that when I reach out to someone who has never heard of us; they won’t automatically start sending RFQs.”
Luckily, Marshall understands that long-term relationships have value and said, “You understand each other’s expectations; you can call in a favor when you need a quick turnaround, and you can resolve issues faster when they arise. With that said, timing is a significant factor. Being at the top of mind when a customer is searching for a new supplier, whether due to greater demand or dissatisfaction with a previous supplier, is how we can be in a position to serve a new customer in any industry.”
Yakima Machine has decided to build their business through a solid commitment to networking. They attend events and trade shows and are involved with trade organizations. They work to make contacts and connections with these interactions. Aaron said, “Networking is how we build business! We feel like more can be done with marketing when we expand. Dorian’s background in marketing will become instrumental when we move in November, to get the word out about our expanded capacity and new capabilities.”
Yakima also hopes to leverage their woman and veteran-owned status and will be completing their ISO 9001 certification by early 2025. They want Tier 1 and 2 suppliers to know, “Small shops aren’t competition for companies like these, but rather add capacity for projects that might otherwise be passed up due to low-order volume or in-house employee, equipment, and knowledge resource constraints. For these reasons, developing a network of trustworthy small shops should be a strategic goal of every Tier 1 and 2 supplier. Our customers know they can trust us to turn their projects in accurately and on time.”
Marshall feels that OEMs and top suppliers should understand, “We set a high bar for customer relationships and delivery. We manufacture parts that surpass our customers’ requirements, take responsibility for the components we send out the door, and are dedicated to delivering quality parts on time, every time. Any manufacturer not prioritizing quality likely won’t be around in a few years.”
Garry recommends setting up a quality system, earning industry certifications, and demonstrating traceability — all of which are mission critical to growth. He said one of his biggest successes was hiring the right business development partner who identified and met key industry players. From there, the bigger company developed an interest in their business and services. He said that to close on the big contracts, they had to complete AS9100 officially. As soon as they were certified, they presented the official registrar notification and won a million-dollar contract.
His final recommendation for a company starting to enter the aerospace business, is to stay in touch with suppliers and let them know as your business grows — adding a new machine, a more extensive facility, and more staff. He said you never know when a more prominent supplier will be looking for a new subcontractor.
Contacts
Marvel Manufacturing
Marshall and Reionda Taylor
www.marvelmanufacturing.net
2117 4th Ave N.
Lewiston, ID 83501
(208) 748-6600
sales@marvelmanufacturing.net
Yakima Machine & Prototype
Aaron Collier and Dorian Kensok
www.yakimamachine.com
4001 Summitview Avenue Unit 5-410
Yakima WA 98908
(509) 426-3642
JH Aero
Garry Hojan
jhaero.com
PO Box 2221
Priest River, ID 83856
(208) 366-4047
info@jhaero.com
