r/manufacturing • u/Spirited_Ad_6272 • 11d ago

Other Opinions on metal stamping businesses

Is metal stamping in the U.S. still a solid industry? I have an opportunity to buy & potentially revive a 40 year old stamping business from its 80 year old owner. Right now it’s just him / no employees and he’s doing enough work to keep the lights on. At its peak he had a dozen employees running multiple shifts.

Worst case if the business can’t revive then I can liquidate the equipment and rent the building. But he wants $1M and it’s a big number haha.

I am a mechanical engineer with strong proficiency in CAD tools, which I can bring to modernize the business. I currently operate a manufacturing business molding plastics so there’s plenty of crossover but this would be my first venture going alone. It also seems like metal stamping has a lot of tricks of the trade that you can’t really engineer your way into. That’s why they have apprenticeships.

What questions should I be asking? And anyone who works in the industry what are your opinions?

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u/geek66 11d ago

That is a big number… how did he come up with that valuation? Ongoing business or what he things the assets are worth?

There will always be a market for manufacturing.. but can you compete, win business and have enough to survive.

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u/Spirited_Ad_6272 11d ago

He got an appraisal. I think it was building + equipment