Making Chips Podcast for Manufacturing Leaders
MakingChips LLC
Manufacturing is tough—but you don't have to go it alone. If you're leading a manufacturing business, you face constant pressure: staying competitive, adopting new tech, managing people, and driving growth. MakingChips helps you tackle those challenges head-on.
Since 2014, we've been equipping manufacturing leaders with the knowledge and inspiration they need to succeed. With hundreds of episodes and over a million downloads, MakingChips is a top resource for the metalworking nation—covering leadership, operations, technology, and workforce development.
If making chips is part of your daily grind, this is your podcast. Join hosts Nick Goellner, Mike Payne, and Paul Van Metre for real talk on the issues that matter most.
Since 2014, we've been equipping manufacturing leaders with the knowledge and inspiration they need to succeed. With hundreds of episodes and over a million downloads, MakingChips is a top resource for the metalworking nation—covering leadership, operations, technology, and workforce development.
If making chips is part of your daily grind, this is your podcast. Join hosts Nick Goellner, Mike Payne, and Paul Van Metre for real talk on the issues that matter most.
Episodes
Mentioned books
Oct 27, 2025 • 48min
How to Manage Outside Processes Like a Pro, 490
Every machine shop relies on outside processes—whether that's heat treating, plating, grinding, or coating. But every time a part leaves your building, your risk profile changes. Quality, timing, and accountability become harder to control. In this episode of MakingChips, the hosts sit down with Charlie Hushek, owner of Phoenix Heat Treating and a newly minted machine shop owner, to unpack what it really takes to manage outside processes like a pro. Charlie's experience on both sides of the fence—running a generational heat-treating company and now owning a machining operation—gives him a rare perspective on what separates smooth partnerships from painful ones. He shares the top mistakes shops make when sending parts out, how to build lasting vendor relationships, and how to turn your outside processes into a seamless extension of your own workflow. The conversation dives deep into practical strategies for planning, communication, and documentation, plus how to handle the inevitable hiccups along the way. From establishing fixed processes to verifying incoming and outgoing inspections, this episode equips manufacturing leaders with the tools they need to reduce risk, improve consistency, and strengthen their supplier relationships. If you've ever lost sleep waiting on a heat-treating order—or had a part fall off a truck—this one's for you. Segments (0:00) Highlights from the Automated Shop Conference and the rise of blue-collar value (3:40) Introducing Charlie Hushek, third-generation owner of Phoenix Heat Treating (5:00) The connection between automation, culture, and building value in acquisitions (7:09) Phoenix Heat Treating's transparency advantage: real-time client portal tracking (8:19) How each added process increases risk, scrap rate, and lead time (10:10) Real-world stories: when parts fall off trucks and lessons learned from it (11:26) Building relationships and setting expectations with outside vendors (12:57) Why "heat treat per print" isn't enough—clarity prevents costly mistakes (15:50) Inviting vendors to planning meetings to align early on risk and tolerance (17:45) The value of educating yourself about heat treating and other outsourced processes (18:27) Treating your vendors like partners—turn them into extensions of your shop (19:36) Relationship-building tips: tours, face-to-face meetings, and yes, donuts (20:31) Drill in on your workholding with SMW Autoblok (21:15) How clear documentation and fixed process numbers can save time and eliminate confusion (26:34) Using ERP systems like ProShop to manage outside processes and supplier specs (27:41) Why outgoing and incoming inspections are critical for accountability (28:57) Handling disputes over damage, missing parts, or quality issues (32:33) How ProShop automates documentation and visual tracking for outside operations (35:03) Liability and how heat treaters manage high-risk, high-value parts (38:28) The importance of empathy when resolving quality issues (39:57) Quoting faster: what information outside vendors need upfront (41:46) The "Hot Potato vs. Baton Pass" analogy—how to work as one unified team (43:40) Why relationship-building directly impacts quoting speed and quality priority (44:31) Eliminate risk by integrating your partners into your process (46:41) Make sure you meet us at Top Shops 2025! Resources mentioned on this episode Phoenix Heat Treating's transparency advantage: real-time client portal tracking Drill in on your workholding with SMW Autoblok Get 20% off your Top Shops 2025 ticket with code MAK20 Connect with Charlie on LinkedIn Connect With MakingChips www.MakingChips.com On Facebook On LinkedIn On Instagram On Twitter On YouTube
Oct 20, 2025 • 1h 3min
Maximizing Profitability with Advanced Financial Tools (The Financial Playbook Every Machine Shop Needs), 489
Finance doesn't have to be a mystery—it can be your greatest advantage. In this episode of the Machine Shop MBA series, we sit down with Jon Hughes, Erik Skie, and Mike Estes from CliftonLarsonAllen (CLA) to unpack the financial principles that separate high-performing shops from those that just get by. Together, they dig into how manufacturers can transform their accounting systems from mere compliance tools into strategic assets that fuel growth. From understanding capacity and pricing to mastering forecasting and job costing, this conversation bridges the gap between the shop floor and the balance sheet. CLA's experts explain why simplicity often beats complexity, how to avoid "bad business" when chasing volume, and why aligning cost structure with capacity utilization is the secret to consistent profitability. They also explore how automation and advanced equipment investments change the financial equation, why separating costing from pricing is essential, and how the best-run shops use forecasting not just to plan—but to learn. Whether you're running a $3M job shop or a $30M operation, this episode gives you the tools to make smarter financial decisions and build long-term resilience. Segments (1:03) Recapping Nick's trip to EMO in Germany (1:52) Meet the guests: Jon Hughes, Erik Skie, and Mike Estes from CLA (4:38) Grow your top and bottom-line with CLA (7:06) Keep it simple: Capacity vs. demand (the key to unlocking consistent profitability) (9:19) Why labor is effectively a fixed cost in modern manufacturing (12:21) When increasing capacity is a smart risk and when it's not (15:08) Activity-based costing and why not all machines should share the same rate (16:38) Why we love Phoenix Heat Treating for outside processing (17:47) How to price automation and capture its true value (20:30) Separating cost from price & matching pricing strategy to niche and capacity (25:06) The danger of underutilized automation and inflated rates (27:09) How customer communication improves quoting accuracy and margins (28:38) The "death spiral" of bad quoting assumptions (30:57) Understanding your cost structure vs. chasing perfect accuracy (32:46) Material-heavy jobs, overhead allocation, and avoiding double-dipping (35:25) Demystifying EDM technology with Methods Machine Tools Bill Burba (49:17) Forecasting and budgeting: why they matter beyond the numbers (52:35) Linking your business model to your P&L for smarter decision-making (54:23) How to use forecasting to test your assumptions (56:05) Killing unprofitable jobs ("deselecting customers") and improving mix (1:01:10) Meet us at Top Shops 2025 in Charlotte, NC Resources mentioned on this episode Grow your top and bottom-line with CLA Why we love Phoenix Heat Treating for outside processing Get more information about EDM technology from Methods Machine Tools Business Model Canvas Meet us at Top Shops 2025 in Charlotte, NC Connect With MakingChips www.MakingChips.com On Facebook On LinkedIn On Instagram On Twitter On YouTube
Oct 13, 2025 • 54min
Racing Toward Excellence: The Olson Brothers' Journey from the Track to the Shop Floor, 488
What happens when two brothers with a racing background decide to start a machine shop—with zero machining experience? You get Olson Custom Designs, a company that's gone from two Haas machines in 2014 to nearly 90 employees today—serving medical, defense, and aerospace industries out of a world-class facility in Indianapolis. In this episode, we sit down with Mitch and Brian Olson to unpack the remarkable story behind their explosive growth. They share how their competitive drive from sprint car racing carried over to machining, the lessons learned from starting with no industry experience, and the systems that have fueled their scale—from culture to ProShop ERP. The brothers talk openly about the struggles of starting from scratch, the importance of integrity and teamwork, and how they've built a facility and a culture that attracts top young talent. They also dig into how automation, palletization, and continuous improvement have allowed them to grow at breakneck speed without losing control of quality—or their vision for what manufacturing should look like. This episode is packed with lessons on grit, growth, and leadership for anyone looking to take their shop from humble beginnings to high performance. Segments (0:58) The inspiring origin story of Olson Custom Designs (6:30) Grow your top and bottom line with CliftonLarsonAllen (7:08) Why integrity and belief in the customer's mission drive everything they do (10:13) Changing the perception of manufacturing through aesthetics and culture (12:37) Attracting young, passionate machinists with technology and image (13:54) The evolution of automation and palletization in a high-mix environment (16:21) Running 24/7 with volunteers and flexible shifts (18:02) Investing in ProShop ERP is an investment in your business (19:38) Creating a culture of accountability and clarity (21:38) The core values that guide OCD—integrity, fairness, and transparency (24:20) Systems that scale: how ProShop ERP became their backbone (30:45) Giving every employee a voice in continuous improvement (33:11) Section 232 Tariffs: What manufacturers need to know and how to comment (40:53) Brothers in business: why partnership made their success possible (43:10) The importance of complementary strengths and mutual respect (45:00) Sales and marketing as a growth engine—never taking your foot off the gas (49:09) Final takeaways: don't give up, ask for help, and delegate (52:09) Looking to hire? Check out Hire MFG Leaders Resources mentioned on this episode Olson Custom Designs Connect with Mitch and Brian Grow your top and bottom line with CliftonLarsonAllen Investing in ProShop ERP is an investment in your business Looking to hire? Check out Hire MFG Leaders Connect With MakingChips www.MakingChips.com On Facebook On LinkedIn On Instagram On Twitter On YouTube
Oct 6, 2025 • 59min
Winning the Talent War: Recruitment, Retention, and Culture with Mike Tamasi, 487
Recruiting and retaining great people is one of the biggest challenges in manufacturing today—but what if the solution isn't just about wages or benefits, but about building a culture where people thrive? In this episode of the Machine Shop MBA series, we are joined by guest co-host Jon Franko and special guest Mike Tamasi, CEO of AccuRounds, a former Top Shops award winner for Human Resources. Mike shares how AccuRounds has become an employer of choice by focusing on community engagement, core values, and creating opportunity for every team member. From partnering with vocational schools and launching unique workforce development programs to embracing servant leadership and lifelong learning, Mike reveals why culture is not a buzzword—it's a competitive advantage. You'll hear how AccuRounds is tackling the workforce shortage by looking beyond traditional talent pools, empowering young people through co-ops and internships, and even launching initiatives like the Uniquely Abled Academy to provide CNC training for adults on the autism spectrum. The results? A highly engaged team, industry recognition, and stories of employees buying homes, building families, and creating meaningful careers. If you're a shop leader struggling with workforce challenges—or simply looking for fresh ideas on how to build a resilient and loyal team—this episode is packed with lessons you can implement immediately. Segments (1:00) Stay vigilant—don't fall for this latest phone scam (3:47) Mike's shares the background of AccuRounds and their Top Shops Award (5:18) Community involvement: Redefining manufacturing as "safe, smart, sustainable, and sexy" (8:06) Head to the EBITDA Growth Systems Double Your Value Event (9:13) The growing demand for trade schools vs. college enrollment (10:02) Co-ops, internships, and the importance of lifelong learning opportunities (14:22) Creative talent pipelines: Programs for autistic adults, refugees, and formerly incarcerated workers (16:33) Core values in action: Gratitude, Excellence, Team First, Initiative, Trust (GET IT) (20:06) Retention strategies: safety, flexibility, lean practices, and environment (22:41) Layering in corporate social responsibility practices (24:26) Apprenticeship and leadership training for employees at every level (26:29) Why you should come see us at AMT's MTForecast (27:45) Invest in technology and opportunities to keep people engaged and growing (32:45) Stories of employee success: buying homes, raising families, and long-term loyalty (35:09) Recognition and international visitors: building a reputation through culture (38:43) The importance of servant leadership—culture cannot be outsourced to HR (40:12) Lessons in flexibility: "freedom with fences" (43:16) Jason Ray: Leveraging technology as a recruiting and retention tool (51:29) Scheduling and the shift away from second shift (54:38) Learn more about the Manufacturing Employer podcast (57:29) RASRAM = Reasons to check out the SMW Autoblok catalog Resources mentioned on this episode Connect with Mike Tamasi AccuRounds Machine Shop Mastery Episode #42 See Paul at the EBITDA Growth Systems Double Your Value Event (Get 20% off registration with code DYV25MC) The Uniquely Abled Project Hidden Talent by David DeLong US Navy Talent Pipeline Program Why you should come see us at AMT's MTForecast Small Giants Career Spring Connect With MakingChips www.MakingChips.com On Facebook On LinkedIn On Instagram On Twitter On YouTube
Sep 29, 2025 • 46min
Leadership at the Core: Building Trust, Systems, and People with Kyra Tillman, 486
Leadership is more than a buzzword—it's the backbone of every successful machine shop. In this episode of MakingChips—Machine Shop MBA, hosts Paul Van Metre and Jen Dubose sit down with Kyra Tillman, owner of BTM Industries, to explore what real leadership looks like on the shop floor and in the front office. Kyra inherited a decades-old family shop steeped in tradition and transformed it into a forward-looking, systems-driven operation without losing its close-knit culture. Drawing on her experience in construction and her perspective as a non-machinist leader, she shares how she built trust, introduced new systems, and developed her people—all while respecting the expertise already on her team. This conversation digs into the mechanics of leadership in a small manufacturing business: why humility and transparency matter, how to foster a culture of continuous improvement, and the difference between managing work and leading people. Kyra also outlines her approach to apprenticeship programs, leadership training, and grants, showing that even small shops can invest in their workforce and future. Whether you're an established owner or just starting your journey, Kyra's lessons on change management, talent development, and leading by example will help you strengthen your shop from the inside out. Segments (1:07) Introducing our manager and today's co-host, Jen Dubose (5:00) Kyra's background: from construction to leading BTM Industries (8:19) Leadership as support and respect for expertise (10:02) Modernizing operations: moving beyond index cards (11:08) Why you need to join us at MTForecast (13:12) Building credibility and trust as a non-machinist leader (14:48) Monthly meetings and opening communication channels (17:14) Vision and hiring for skill and attitude (20:06) How do you build trust with your team? (24:03) Creating a culture of continuous improvement and curiosity (26:37) Developing talent from within and apprenticeship programs (28:17) Join us at Top Shops 2025 in Charlotte, NC (29:41) Investing in people: leadership training, grants, and high school interns (32:42) External resources: mentorships, peer groups, and local networks (35:42) Switching to ProShop ERP and navigating change management (39:21) Leading by example and diving in alongside the team (40:58) Personal leadership habits: mindfulness, learning, and consistency (41:42) Final advice from Kyra for shop owners and leaders (45:11) Grow your top and bottom-line with CliftonLarsonAllen (CLA) Resources mentioned on this episode Why you need to join us at MTForecast Get a preview of MTForecast on Buy the Numbers Grow your top and bottom-line with CliftonLarsonAllen (CLA) Join us at Top Shops 2025 in Charlotte, NC: Get 20% off your registration with code MAK20 IMEC MCEDC Connect With MakingChips www.MakingChips.com On Facebook On LinkedIn On Instagram On Twitter On YouTube
12 snips
Sep 22, 2025 • 51min
Strategic Growth & Vision: Building a High-Performing Machine Shop with Peter Doyle, 485
Peter Doyle, CEO of Hirsh Precision and former Air Force officer, shares his insights on transforming a machine shop with a strategic vision. He highlights the importance of a customer-centric approach and how Hirsh focuses on high-mix, low-volume manufacturing in regulated industries like aerospace and medical. Peter discusses the critical role of sales and marketing in building partnerships with engineers and emphasizes the need for deliberate decision-making in leadership and hiring. This podcast serves as a roadmap for shop leaders aiming for growth and innovation.
Sep 17, 2025 • 51min
Requirements Review: How Paperless Parts' is Making Sure You Never Miss a Critical Detail, 484
If you've ever lost sleep wondering whether you missed a critical detail in a quote—or felt the adrenaline of winning a job only to realize you underpriced it—this MakingChips episode is for you. Recorded live at FABTECH 2025, Nick sits down with Jason Ray, founder of Paperless Parts, to unveil a breakthrough tool that promises to transform how shops handle complex RFQs, drawings, and bills of materials. Over the past decade, Paperless Parts has become synonymous with solving bottlenecks in estimating and quoting. Their mission has been clear: empower people—not replace them—with software designed to make quoting faster, smarter, and less risky. In this conversation, Jason shares how their latest release takes that vision even further by surfacing critical requirements buried inside complex drawings and bills of materials. This episode is full of relatable stories and practical lessons. Jason explains how the new "Requirements Review" functionality captures tribal knowledge, accelerates mentoring, and helps shops avoid underpricing jobs while improving their RFQ triage process. Nick and Jason also dig into the big picture: the hype cycle of AI in manufacturing, the importance of trust and customer retention, and the future of Paperless Parts—including "historical intelligence" and next-level shop insights. Whether you're a shop owner, estimator, or manufacturing leader, you'll leave this episode with actionable takeaways for quoting more accurately, prioritizing the right work, and scaling your business intelligently. Segments (0:53) "I Love Big BOMs": How Paperless Parts tackles large bills of materials= (2:27) Bottlenecks in quoting and estimating—and why Paperless Parts was built (6:05) AI hype vs. reality in manufacturing software (7:39) Quote faster, smarter, and more consistently with Paperless Parts (9:20) "AI makes recommendations, humans make decisions" (12:38) Introducing "Requirements Review" to surface critical details in drawings (14:41) Capturing tribal knowledge and accelerating mentoring before retirements (17:13) Why missing something on a print leads to underpricing and margin compression (18:45) Using AI to read complex drawing packages and trigger shop-specific rules (20:22) Solving simpler problems first: best practices for adopting AI in manufacturing (22:14) Why you should join us at MTForecast 2025 (23:42) Quoting faster without over-engineering or missing key details (25:02) RFQs are getting larger—how to triage and prioritize the right work (26:47) Building an "ideal part profile" and learning to say no to non-fit work (29:54) Safety, flow state, and the hidden costs of taking on bad-fit jobs (30:53) Cash flow realities of contract manufacturing and avoiding high-risk mistakes (32:32) Aligning Paperless Parts' incentives with customer success and retention (34:38) Value-based sales process and proving ROI before the sale (38:00) Emotional ROI for shop leaders and software founders alike (40:08) Why customer success is tied to clear ROI targets and ongoing support (42:27) Selling change management, not just a tool—how Paperless implements software (45:32) Looking ahead: Paperless Parts' upcoming user conference and "historical intelligence" (49:32) Resources mentioned on this episode Quote faster, smarter, and more consistently with Paperless Parts Join us at MTForecast 2025 Achieve the 7 Habits of Successful Workholding with SMW Autobook Requirements Review Press Release Connect With MakingChips www.MakingChips.com On Facebook On LinkedIn On Instagram On Twitter On YouTube
Sep 15, 2025 • 53min
Building a Winning Team: Matt Wardle's Blueprint for Machine Shop Success, 483
Every machine shop leader knows you can buy the best equipment, implement cutting-edge automation, and have bulletproof processes—but without the right team and culture, growth will stall. In this episode of MakingChips Machine Shop MBA, we talk with Matt Wardle, President of JD Machine, about how he transformed a small Utah shop into a 210-person powerhouse by prioritizing people and culture over everything else. Matt's story shows what happens when leadership takes workforce development seriously. From his early days as a 10-person shop owner watching competitors poach his talent, to becoming a two-time Top Shops winner recognized for HR and culture, Matt has built a system for attracting, training, and retaining the kind of people who make growth possible. We dive deep into JD Machine's unique approach to workforce development: Department of Labor-approved apprenticeship programs, high school counselor outreach, profit-sharing models, mentorship incentives, and cultural rituals like celebrating apprenticeship completions with a "Masters Jacket." The result? A company that not only keeps top talent but grows its own leaders from within. If you've ever wondered how to build a resilient shop culture where employees feel invested, customers trust your team, and growth becomes sustainable, this conversation delivers the blueprint. Matt shows that "winning" in manufacturing isn't just about throughput or margins—it's about building people who build the business. Segments (0:58) Introducing Matt Wardle of JD Machine: from 10 employees to a 210-person operation (4:30) Early lessons in retention and the shift from poaching talent to building a pipeline (7:44) Why you should register and see us at AMT's MTForecast (11:41) Community outreach: hosting school counselors, sponsoring robotics, and changing perceptions (17:10) Open houses, virtual field trips, and branding your shop to future employees (15:00) Mentorship structure, incentives for trainers, and celebrating completions with the "Masters Jacket" (19:20) Tracking the right metrics: turnover, reviews, skill increases, and retention as KPIs (22:58) Apprenticeship program design: 8,000 hours, Department of Labor approval, and clear pay raises (27:57) Grow your top and bottom line with CliftonLarsonAllen (28:32) How small shops can scale their workforce systems over time (30:18) Building your own curriculum: Tooling U, NTMA U, Titans of CNC, and customizing courses (31:50) Encouraging on-the-job learning during machine cycle times (34:10) Mentorship structure and incentives for experienced machinists training apprentices (36:05) Recruiting under-18 students through legislative partnerships and state risk management (37:52) How NTMA chapters create collaboration and make SkillsUSA more impactful (39:35) Balancing competitive pay with margins and long-term stability (43:58) Profit-sharing and open-book management to drive engagement and retention (44:44) Lessons learned from losing good employees and being proactive about retention (49:55) Matt's closing thoughts: people who align with your core values become your greatest asset (51:40) The countdown is on: See us at Top Shops 2025 in Charlotte, NC Resources mentioned on this episode JD Machine Connect with Matt on LinkedIn Why you should check out AMT's MTForecast Matt's episode on Machine Shop Mastery (all about culture) Grow your top and bottom line with CliftonLarsonAllen (CLA) The countdown is on: See us at Top Shops 2025 in Charlotte, NC (code MAK20 for 20% off) Connect With MakingChips www.MakingChips.com On Facebook On LinkedIn On Instagram On Twitter On YouTube
Sep 8, 2025 • 46min
Capturing the Human Side of Manufacturing with Chad Schmidt, 482
Every machine shop has a story—and Chad Schmidt has made it his mission to tell them. As a sales engineer + content creator, Chad blends his technical background with a passion for storytelling. He creates authentic shop tour videos that shine a spotlight on the people, culture, and values driving the manufacturing industry. His YouTube channel has quickly gained traction, giving machinists and shop owners a platform to showcase their work in an honest and unpolished—but deeply engaging—format. In this episode of MakingChips, Chad shares his journey from tool rep to filmmaker and how a pandemic-era discovery of shop tour videos sparked his creative pursuit. He opens up about the challenges of convincing shop owners to go on camera, the humility he sees in the most successful leaders, and the business trends shaping machine shops across the country. The conversation dives into everything from diversification and leadership mindsets to adopting new technology and empowering the next generation of machinists. Whether you're a seasoned shop owner or just starting out, Chad's perspective reveals why authenticity, culture, and a willingness to evolve are essential ingredients for long-term success in manufacturing. By capturing raw, human-centered stories, Chad isn't just documenting the industry—he's helping elevate it. Tune in to hear his take on where shops are thriving, where they're struggling, and what lessons every leader can take away from the tour videos that are inspiring thousands online. Segments (0:20) Grow your top and bottom line with CliftonLarsonAllen (2:06) How Chad got started in machining sales and what led him to shop tour videos (4:23) Inspiration from John Saunders' NYC CNC channel during the pandemic (6:17) Balancing a sales career with filming shop tours and support from his company (7:12) Campro's machine offerings and focus on job shops (8:19) Shop owners' mixed reactions to being filmed and overcoming hesitations (11:06) Challenges of being on camera and blooper stories from filming (12:44) Insights from visiting shops: leadership humility, culture, and mindset trends (14:39) Tariffs, diversification, and the impact of customer concentration (17:43) Correlation between humility, ambition, and business growth (20:18) Balancing business ambition with family and personal life (20:58) Get transparency in the heat-treating process with Phoenix Heat Treating (22:07) Lifestyle businesses vs. growth-oriented shops and the risks of coasting (24:31) Stories from younger shop owners and COVID-era startups (26:05) Funding and customer acquisition strategies for new shops (27:27) How to leverage Xometry as a launchpad (time will change from this on after edit) (28:42) Observations on technology adoption: probing, CAM, ERP, and monitoring tools (33:25) Empowering younger team members and building fulfilling shop cultures (38:49) Shop cleanliness, lighting, and layout as indicators of culture and success (40:51) Biggest takeaways: zero-point workholding and inspiring shop stories (41:54) COVID-era entrepreneurs starting shops from scratch (44:58) Hire your next manufacturing leader with Hire MFG Leaders Resources mentioned on this episode Chad's YouTube Channel Connect with Chad Schmidt Campro USA NYC CNC Get transparency in the heat-treating process with Phoenix Heat Treating Grow your top and bottom line with CliftonLarsonAllen MW Machine Motive Machine Works Hire MFG Leaders Connect With MakingChips www.MakingChips.com On Facebook On LinkedIn On Instagram On Twitter On YouTube
Sep 1, 2025 • 52min
The Gold Standard of Shop Finance: Cash Flow, Profit, and Growth, 481
Running a machine shop isn't just about cutting chips—it's about managing the numbers that make the whole operation possible. In this Machine Shop MBA episode of MakingChips, the team sits down with Jon Hughes of CLA to tackle one of the most overlooked yet critical parts of shop ownership: financial strategy. Many shop leaders rise through the ranks of the shop floor without formal financial training. The books often become "just compliance"—something you do because you have to file taxes. But as Jon makes clear, your financial systems can be far more than compliance—they can be a competitive advantage. From managing cash flow to planning for growth and capital expenditures, the way you handle money directly impacts your ability to survive downturns, seize opportunities, and build wealth. In this episode, we dig into why cash flow is king, what "working capital" really means for a shop, and how to navigate customer payment terms that often feel stacked against smaller manufacturers. They also explore practical strategies for budgeting, forecasting, and job costing—ensuring that every hour and every order drives long-term profitability. Packed with stories, humor, and battle-tested advice, this episode equips shop owners with the knowledge they need to turn finance into a weapon rather than a weakness. Whether you're just trying to make payroll or planning your long-term exit, these insights will help you keep making chips—and making money. Segments (0:46) Join us at Top Shops 2025 in Charlotte, NC! (6:05) Finance as more than compliance: a competitive advantage (7:45) Cash flow vs. accrual accounting in day-to-day operations (10:40) The profitability vs. cash flow argument (14:10) Managing uncertainty and strengthening the balance sheet (15:09) Working capital defined: how much is enough and how to measure it (18:15) Current ratio explained and what "healthy" looks like (22:15) Owner compensation: salaries vs. distributions and tax implications (23:48) Achieve RASRAM by checking out the SME Autoblok catalogue (25:28) Strategies for managing receivables, payables, and customer terms (31:08) Invoicing hygiene and avoiding clerical delays in payments (32:40) Following up on overdue invoices and staying proactive (36:32) Adjusting pricing to offset extended payment terms (38:45) Budgeting and forecasting as part of long-term financial strategy (44:56) Job costing and the 80/20 rule of profits and losses (48:10) Building financial review cadences and making finance a competitive advantage (50:20) Grow your top and bottom line with CliftonLarsonAllen (CLA) Resources mentioned on this episode Join us at Top Shops 2025 in Charlotte, NC! Use code MAK20 for 20% off Funding Your Dream Shop: Creative Ownership Strategies You Haven't Heard Yet Profits Aren't Everything, They're the Only Thing Business Model Generation Achieve RASRAM by checking out the SMW Autoblok catalogue Grow your top and bottom line with CliftonLarsonAllen (CLA) Connect With MakingChips www.MakingChips.com On Facebook On LinkedIn On Instagram On Twitter On YouTube


