For the metal fabrication industry, which includes cutting, burning, welding, machining, forming, and assembly to create the final product — machines and structures — from raw metal materials, the journey to rebounding from 2020 is well under way. Like many other trades, the industry’s profitability relies on economic growth to thrive, and that, of course, was stymied due to the pandemic, which resulted in many OEM shutdowns.
Those shops in the right markets, including renewable, e-commerce, IT and communications infrastructure, barely skipped a beat, but most fabricators had a tough year—and are trying to work their way back to profitability this year. What has not changed from before the pandemic is that machinery is becoming more sophisticated, and capital is required to stay current with technology, updating equipment as it becomes available.
The Fiber Laser
According to the 2021 Capital Spending Forecast, for the first time ever, the fiber laser came out on top in a survey of spending trends for different types of equipment. This is significant, since traditionally welding equipment and power source spending dominated the survey.
While many shops only offer welding and a few other basic metalworking processes, innovators are using tools like the fiber laser to enhance their offerings. Some machine OEMs have introduced new ways to manipulate the beam, new forms of material handling automation, and new levels of laser cutting power. One productive fiber laser can serve a host of downstream forming and welding operations—but not every shop can afford a laser.
Given the competitiveness of the industry, and the uncertainties that surround it, investing in technology like lasers may be just what the doctor ordered, but metal manufacturers often have a hard time making a case with traditional funders to secure the capital they need for such a purchase. Most of them simply can’t meet the stringent requirements and are considered too big of a risk. That’s where alternative financing comes in.
Alternative Financing Options
Traditional funding sources like banks have lots of hoops to jump through and a lengthy application process that more often than not results in a “no.” At Clear Skies Capital (CSC), we focus on saying “yes,” helping metal manufacturers overcome the challenges presented by traditional financing.
Our streamlined funding process includes very little paperwork, and approval can occur within 24 hours, even for those with less than perfect credit. We offer 24-hour access to funding, flexible terms up to 48 months, and a fixed payment and interest rate — and don’t forget the interest on our loans is tax deductible. It might sound too good to be true, but it’s not; we’ve been in this business for many years, helping many metal manufacturers.
We are aware that every metal manufacturer’s financing needs are unique, so our team of experienced professionals will work with you to help you determine your best course of action. In particular, we’ll focus on:
- Working capital loans — Secure cash on hand to pay for anything that helps you support your ongoing operations — expenses like payroll, taxes and raw materials.
- Equipment financing — Update your facility as needed with the latest equipment to remain competitive, replacing outdated machinery as well as adding new technology like a fiber laser.
If you’re a metal manufacturer, you know it’s important to stay on the cutting edge of the industry by having the ability to evolve to stay competitive. Not having access to capital shouldn’t be the reason you remain stagnant. CSC has worked with many metal manufacturers, so we’d love to share our expertise while investigating financing alternatives with you. Get started today! Discover how much you qualify for today. Learn more.