GRAND RAPIDS – Fortitude, the mental and emotional strength in facing difficulty, is a virtue required of all entrepreneurs. Challenges and setbacks will surely arise when starting a new small business, but they also affect businesses that have been around for years; none perhaps greater than the recession that hit many manufacturing companies 2 years ago.

Businesses, like Alto Precision, have demonstrated that strength and determination can lead you through crisis, to become better and more productive. For owner Dave Owen and the rest of Alto Precision, overcoming challenges is just a part of doing business.

Alto Precision is one of Michigan?s great manufacturing businesses. Started in 1982 by owner Dave Owen, the business performed basic machine shop work for a variety of different customers. Owen, who is experienced in tool and die manufacturing, lead the company through good times and bad. For a while, Alto?s customers dictated the direction of the business. The company started moving into more precision machining work including creating specialty fixtures and automated drives. Now, Alto remains focused as a supplier to many different industries including automotive, aerospace, furniture and medical companies.

Despite surviving two recessions and countless other setbacks, the trials of the past three years have put a strain on Alto. First, Owen was involved in a severe accident which limited his capacity in the business. Then came the recession in 2008, the downturn decimating Alto?s customer base and sales. Declining numbers forced the company to make cutbacks for the first time in the history of the business. In addition, Alto?s lenders were facing difficulty and put pressure on Alto to improve their numbers. ?It was difficult to do business,? said Owen.

During this time, Alto was without a controller so local CPA Theresa Sickles, who was familiar with Alto, decided to help out. Sickles watched over the company?s financials and brought things to their attention that needed to be addressed. Soon after, the SBTDC hired Sickles as a Manufacturing Assistance Team (MAT) consultant in 2009. Armed with new array of new services, Sickles continued to find ways to assist Alto. ?She really has been a great partner for us. Watching over our business and helping find us the right programs to fit our business,? stated Owen.

Alto still faced extreme pressure during 2009 from the bank to sure up their books. ?Handling our finances during those difficult times was tough. Luckily, we had some very good vendors who were willing to work with us,? said Owen. As a MAT consultant, Sickles suggested taking a look at Alto?s financial information and organizing the information before going back to the bank; providing them a complete representation of the company.

He and Sickles decided to look into diversification as an option. While automotive continues to be Alto?s largest customer base, they slowly expanded into other industries. Getting started with new businesses in different industries took a lot of persuasion by Alto, but soon their quality products and service began to speak for them. All of these efforts lead the company back to profitability in January of 2010. Tensions with the lender lessened as the year continued. Despite these setbacks, 2010 is likely to be one of the best in Alto?s history.

?At a time when so many manufacturing businesses are still struggling, Alto Precision is a strong, well-diversified company,? exclaimed Sickles. ?They are committed to creating significant reductions in operating costs, healthier internal controls, and a stronger and more engaged employee base.?

Owen noted that while finding talent was a challenge in the past, ?we think we have a really good group here. They really do a great job for us.? While Owen admits that the company still has a ?little ways to go,? he thinks they will be able to reach their goals while still watching their financials closely. He pointed out that controlling costs, not expanding sales, have lead to the company?s recent success. ?We are seeking a controlled-growth over the next couple of years with a goal of being debt free in a year-and-a-half.?

?Our experience with the SBTDC has been very good. Theresa helps us filter through all the resources out there and brings new programs to our attention,? said Owen. While the company appears to be headed on a steady course, Owen provides some valuable advice for steering your own small business. ?Try not to get ahead of yourself. Don?t let the temptation to grow your sales cause you to forget about monitoring your responsibilities like overhead,? stated Owen.

One of Michigan?s great manufacturing businesses, Alto Precision is demonstrating how to have quality products, services and one other thing?fortitude.

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