Progressive Tool & Die, Inc.

Published: 06-Nov-2014


Name:
Mr. Mike Setta, Mr. Bill Latta

Company:
Progressive Tool & Die, Inc.

Address:
13693A Broadway Dr.
Meadville, PA 16335-2725

County:
Crawford County

Website
www.pro-td.com

Industry:
Manufacturer

Year Founded:
1984

Consultant's Name:
Amanda Flick

SBDC Assistance:
Financial projections

Additional Partners:
City of Meadville Redevelopment Authority, Economic Progress Alliance (Alliance Property Holdings, Inc.), USDA

Gannon University SBDC
120 West 9th Street
Erie, PA 16501
Phone: 814-871-7232
Email: gusbdc@gannon.edu

Background:

Progressive Tool and Die, Inc. was established in October of 1984 and focuses on supplying close-tolerance tooling to automotive, electronics, and other general industries. The company was a long-time tenant at the former Talon Business Center and relocated to the Crawford Business Park in 2011 when the County purchased the Talon property for future development. The company currently has a five-year lease with Alliance Property Holdings, Inc. which carries to February 2016. The owners have maintained a strong, stable business over the last 30 years by adapting to changing markets and providing quality parts with quick turnaround times to a diverse customer base.

Mike Setta and Bill Latta, company president and vice president, respectively, saw an opportunity to purchase additional equipment for the shop to expand the capacity of the business. With the new equipment, they’d be able to accept a greater number of jobs and be better able to cater to their existing customers’ needs.

The project consisted of the purchase of two new Okamoto surface grinding machines and associated rigging and setup costs to integrate the new equipment into the company’s current operation. One machine will replace an aging model and the other will be added to update existing equipment and to increase capacity and improve efficiency. As with all existing equipment in their shop, both machines will be used to make all types of parts that the company supplies to its customers. The old machine will be retained and will continue to be used.

Assistance Requested/Provided by the SBDC:

Having received SBDC assistance previously, Mike and Bill approached the Crawford County outreach office a second time for help putting together his financial presentation for the loan committee. Profit and loss, cash flow, and balance sheet projections were created along with notes and assumptions.

Outcome and Impacts:

In September of 2013, Progressive Tool and Die, Inc. was successful in obtaining all of the $38,000 in funding they requested from a USDA Enterprise Zoan Loan through the City of Meadville Redevelopment Authority. In addition, they made an owner investment of $5,671. As a result of the financing, twelve jobs were saved and one new job was added. In addition, Mike and Bill were able to maintain their current relationships with local subcontractors for machining, heat treating, plating, welding, and other ancillary services which will have a positive impact on the community as well.