Buying a machine shop is never simple — and for Matt Fortner, it was a leap into the unknown. Coming from backgrounds in plumbing, industrial fittings, product development, and even scrap metal buying, Matt felt a pull to get back to "building something real." That pull led him to Progress Machining in Muskegon, Michigan — a shop he became the fifth person to attempt purchasing.
Once inside, Matt quickly realized how much transformation the business needed. The shop was filled with aging machines, tribal knowledge, and 60 tons of accumulated scrap and unused tooling. Setups stretched to 12 hours, processes were inconsistent, and workflow relied heavily on memory. But instead of being overwhelmed, Matt leaned on his lean training, curiosity, and sheer persistence. He started running SMED events, reorganizing tools, improving fixtures, standardizing processes, and slowly bringing the shop into a more modern, efficient operation.
In this episode, Matt shares the candid story of acquiring and rebuilding a legacy shop — from financing challenges and navigating the previous owner's quirks, to learning machining concepts from scratch, to discovering the stark difference between profit and cashflow. His journey is honest, relatable, and full of practical lessons for anyone considering buying a shop or transforming the one they lead today.
You will want to hear this episode if you are interested in...
- (1:04) Paul opens the episode and introduces guest Matt Fortner
- (2:58) Matt shares how MakingChips impacted him
- (5:17) Matt's background and career trajectory
- (9:59) Why Matt chose to buy a machine shop
- (13:18) Grow your top and bottom line with CLA
- (14:00) How Matt found Progress Machining and his first walkthrough
- (15:43) Financing the purchase — ROBS program, SBA loan, personal collateral
- (18:00) The previous owner's negotiation stories and getting the deal closed
- (22:10) Shop size at purchase and the early financial picture
- (22:58) Hidden operational problems, decades of disorganization, aging machines, and tribal knowledge
- (24:56) Lean principles, 5S, and uncovering the shop's physical layout
- (27:27) Why we love Verdant Commercial Capital for financing
- (28:20) Lack of process, preventative maintenance, and organizational structure
- (29:56) Job costing, categorizing expenses, professionalizing accounting
- (31:20) Starting to eliminate outdated machines and processes
- (33:01) Deep dive into SMED — mapping a 12-hour setup step-by-step
- (36:39) Quadrant model of technical knowledge and removing tribal barriers
- (40:36) Workholding Wisdom: Is setup reduction a buzzword?
- (51:14) How Matt learned machining concepts as a non-machinist
- (52:54) Setup reduction principles and universal best practices
- (55:30) Buying new equipment to replace maintenance-heavy machines
- (59:56) Cashflow vs profitability lessons during equipment purchases
- (1:02:35) Big wins — consolidating operations into fewer setups with automation
- (1:03:16) Paul reinforces the importance of understanding cashflow in shop ownership
- (1:04:36) Check out Hire MFG Leaders for your next hire
- (1:05:04) How Matt tackles workforce development and hiring
- (1:05:50) How an MEP program helped Matt tackle a difficult problem
- (1:08:46) Matt's biggest piece of advice for shop owners
- (1:11:43) Defining company values and whether they evolve over time
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