Stories about supply chain issues causing problems for businesses are not anything new in our current environment. Which is one big reason Origen Manufacturing’s story is a welcome narrative.
The company, based out of Ogden, Utah, gives customers an alternative to sourcing Asian carbon fiber products – which is no small feat. Few companies (outside the aerospace industry) have the experience or capability in the market to help develop and manufacture these specialty products.
While 2020 was supposed to be a year of growth for Origen, the pandemic had other plans. Instead of expanding, CEO Scott Nielson took a conservative approach and prioritized meeting the needs of their current customer base.
While demand waned as other businesses also buckled down, or even moved into survival mode, Nielsen explored additional avenues to keep Origen afloat. The goal was to ensure customers’ needs were met—strengthening long-term relationships and solidifying Origen’s reputation as a business that provided an exceptional customer service experience.
In the Spring of 2021, with the second wave of Covid-19, initial orders were very slow. But drastic increases in the price of raw materials and availability meant another opportunity to adapt in the marketplace. With supply chain issues plaguing industries worldwide, more and more companies were (and are still) looking for local suppliers to fill the gap. But to achieve this next step and keep up with demand, Origen would need working capital and specialized Computerized Numerical Control (CNC) equipment: a unique computerized manufacturing process where pre-programmed software and code control the movement of production equipment for optimal output and efficiency.
Enter Utah Small Business Loan Finance and help through the EDA.
“The Utah Small Business Loan has made all the difference in the world for our company,” Nielsen said. “We are a small manufacturing company and have grown significantly over the last year. To meet the demands of our customers, we needed to add an additional CNC machine and move into a larger space. This loan not only helped us acquire the additional machine, but it enabled us to weather the storm of having to shut down the company for two weeks while we moved to a new location. Since adding this piece of equipment and moving to a larger building, we have grown by over 300% and have added two new full-time employees.”
Congrats to Nielsen and the entire Origen Manufacturing team! Learn more about Origen at https://www.origenmfg.com/
