STARBASE TECHNOLOGIES

Starbase manufacturing operated as a family-owned precision manufacturing tooling and injection molding company in Pittsfield, Massachusetts.

Challenge: The family wished to grow topline revenue in EBITA and position the organization for sale. Eric was brought in for an interim CEO/COO roll to improve labor efficiencies, expand offerings, and increase both sales and profit margins. 

Solution: The first order of business was to maximize machine time and labor efficiencies with the existing capital. This was accomplished by gaining ITAR certification and expanding precision machine and component manufacturing into the military and defense industry. The similarity of job applications allowed seamless expansion of the sales pipeline and resulted in an increase from 40% to over 80% machine utilization. 

The second strategic maneuver was to develop new services that utilized existing Capital equipment.  

Two key areas of expansion were quality and precision metrology services converted latent asset machinery into profit centers. 

The second major pivot was run specialty startup and backlog components on the injection molding machines that were traditional used for only validation and in-house testing. Offering niche manufacturing capabilities couples with  the onset of covid-19 led to the increased in demand, doubling the company's revenues with 14 months. 

The third focus was on implementing simple business process automation, and factory floor automation to address the attrition from retirees and headcount reduction due to Covid.  Implementation of three automation platforms allowed. Starbase to maintain a 90% SIFOT rate with a 20% reduction in workforce. 

Results: These three business factors taken into consideration resulted in: 

• 250% increase in revenues within 24 months 

• An increase in EBITA from 6% to 14% 

• A diversified portfolio across regulated industries 

• The facilitation of the company sale for 3X Gross revenues ($42M)