Profile: Federated Precision
Their Competitive Edge: Bringing Manufacturing Jobs Back to the United States
Special Guests: Samuel Havelock, Founder and CEO
Keith Smith, Founder, President and CFO
By the close of the 19th Century, the Industrial Revolution was well on its way to changing America from an agriculture-based economy to that of manufacturing. It was not unheard of for generations of the same family to follow in the footsteps of their parents and take their places at the assembly lines or the turning machine. By the 1970s, however, companies began to discover that their products could be produced cheaper outside the U.S., increasing their profit margin. Factories at home were shuttered and their gates locked, leaving thousands out of work.
That seems to be changing, thanks to rising labor costs in countries that are traditionally the recipient of our outsourced work, as well as the rising costs of logistics and an increased risk for theft of intellectual property overseas. As a result of these and other factors, manufacturing jobs in the United States are once again on the rise. It is predicted that revenue from precision manufacturing in the United States will be as high as seven trillion dollars in certain industries over the next twenty years.
Recently, The Competitive Edge hosts Joe Namath and Kristy Villa sat down with Sam Havelock, Co-Founder and CEO of Federated Precision, along with the company’s Co-Founder, President and CFO, Keith Smith. The Deerfield Beach, Florida-based company specializes in the precision manufacturing of sensitive components for equipment in the medical, defense, energy and aerospace sectors. Sam and Keith recognized the dilemma facing most growing manufacturers today. “For the past 20 or 30 years,” explained Sam in his interview, “we’ve told our kids, ‘don’t be involved in the trades, don’t be involved in manufacturing.’ Unfortunately, they listened, and now we face key shortfalls across the high-value manufacturing supply chain.” Indeed, this mindset has resulted in a shortage of qualified workers to fill the jobs that have been coming back to the United States. The solution, according to Sam: Train them yourself. Sam developed a program based on the military training paradigms he learned through his service as a Navy SEAL. Federated Precision seeks out individuals that show potential and a desire to learn, and train them from the ground up. Not only do they end up with employees who know their equipment and the precision manufacturing process inside and out, they also boast an employee turnover rate that is almost non-existent. “We’re passionate about bringing manufacturing jobs back to America,” added Keith. “(Manufacturers) are finding that they’ve got a hungry American workforce that’s ready to work, and that has the best work ethic in the world, and they’re ready to get back at it.”