Metal fabrication — the process of building machines and structures from raw metal materials — includes cutting, burning, welding, machining, forming, and assembly to create the final product. Like many other trades, the industry’s profitability relies on economic growth to thrive. One shift that has occurred since the last recession is that shops are moving from leaning on a few large projects to maintain an annual profit to trying to maintain steady sales volumes by diversifying.
The industry remains highly cyclical, but depending on a variety of industries — including auto, aerospace, construction, and energy — metal manufacturers strive to keep net profits consistent. They can also benefit from the fact that machinery is becoming more sophisticated, supporting their ability to maintain a constant level of profitability — but capital is required to stay current with technology, updating equipment as it becomes available.
Offshore, Reshore and More
It’s not news that manufacturers of all types have been attracted by the lower costs of setting up shop outside the U.S., which can allow them to undercut the prices charged by companies based in America. While offshore companies have one significant edge over their U.S. counterparts — being more likely to produce complete products, soup to nuts — things seem to be changing, based on issues like global instability, higher tariffs, and rising wages in places like China.
Reshoring has become the trend du jour, with manufacturers of all types returning to the U.S. In 2016, the U.S. added a net positive 30,000 manufacturing jobs as a result of reshoring, according to Reshoring Initiative. While that bodes well for folks seeking to work in the metal manufacturing industry, it only adds to the pressure company owners feel to consistently replace and repair equipment to stay competitive.
Given the competitiveness of the industry, and the uncertainties that surround it, metal manufacturers often have a hard time making a case with traditional funders to secure the operating capital they need to stay afloat. 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.
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.