Why Choose MKC?
Madison-Kipp Corporation (“MKC” or the “Company”) is a producer of precision machined components and system subassemblies for transportation and industrial end markets. Customers include manufacturers from the light weight vehicle, lawn & garden, recreational vehicle and industrial markets.
MKC production systems and capabilities are fully automated with robot technology or single purpose integrated operations. The Company manages the customer supply chain from raw metal alloying to final product assembly and integration into the customer’s production system. MKC provides customers with a single source, integrated solution and minimizes supply chain complexity.
In 2004, the Company underwent a significant strategic transformation and instituted a number of initiatives. MKC’s current President, was hired to pursue a strategy designed to diversify end markets, grow the revenue base by pursuing new business opportunities and improve operating efficiency. The critical outcome of this new strategy was MKC’s complete Lean Manufacturing Value Stream operational culture called SmartWay.
As a result, the Company realized significant savings and now utilizes SmartWay as the basis for bidding activity and product launches. The SmartWay initiative has redirected the Company to higher return programs, expanded relationships in non-automotive sectors and phased out non-profitable programs.
By leveraging its various capabilities, MKC is able to design a highly engineered or acquired subassembly solution consisting of multiple components, each of which is designed for a specific function and produced using the appropriate process technologies including High Pressure aluminum die casting and squeeze casting, to maximize performance and value for the customer. This broad range of integrated capabilities and MKC’s ability to provide complete system subassemblies are the Company’s significant competitive advantages in the metal forming industry.
The Company has a diverse customer base and is almost exclusively the sole-sourced provider of its products. Over the past three years, the sales organization has focused its efforts on customer and end market diversification. While the light vehicle market remains a strong end market, the Company has shifted its market mix from 95% light vehicle in 2004 to a 2008 estimated market mix of 56% light vehicle, 32% lawn and garden, 7% recreation vehicle and 5% industrial.
Based on existing booked business and contracts, management believes the light vehicle segment of MKC’s market mix will be reduced to 48% by 2010. This diversification has positioned the Company to be less dependent on any one end market or customer.
The Company’s management team has an average of 27 years of industry experience. By leveraging existing long-term relationships and industry experience, the current management team has effectively adapted to the changing automotive industry dynamics by diversifying the Company’s customer base, securing multiple new program contracts, and implementing the SmartWay lean manufacturing model. The Company’s highly skilled non-union workforce consists of 290 people with an average tenure of over 16.5 years. The Company operates in 260,000 square feet of manufacturing floor space in two facilities located in Madison, Wisconsin and one in nearby Sun Prairie, Wisconsin.
MKC launched a number of new programs in 2007 and 2008 and has been positioning itself to benefit from dramatically improved operating performance through recently implemented investments and initiatives. As part of its transformation to SmartWay, MKC invested in new technology and equipment to improve its operations and secure key additional new business. MKC invested over $20.6 million in capital equipment during 2005 and 2006.
