Microcut USA is a small but vital player in the manufacturing world. They make cutting tools, often just a few thousandths of an inch in size. These tools are essential for sectors like aerospace, medical devices, and firearms.
Only five people work at Microcut, but their jobs are crucial. They handle orders, package tools, and keep track of an impressive 7,000 different products. Recently, the company faced a significant challenge—it almost closed its doors.
Jeff Dunlop, the new owner, rescued Microcut in 2023 and relocated it to Southwick. He wanted to be more present at home after years of travel for work. Dunlop recognized the importance of small businesses in maintaining local jobs and supporting the economy.
Family-owned businesses, like the one Dunlop saved, often struggle during transitions. According to the Family Business Center, only about 40% of these businesses make it to the second generation, and just 13% survive to the third. Dunlop knew that if Microcut didn’t change hands appropriately, it could easily be swallowed by larger companies, leading to layoffs and lost local jobs.
Dunlop financed the acquisition through Berkshire Bank and improved efficiency almost immediately. Keith Nesbitt, a senior vice president at Berkshire, noted that Dunlop improved logistics and inventory systems that had been outdated. This swift transformation was key; it turned Microcut into a profitable venture almost overnight.
To further enhance customer experience, Dunlop connected the company’s website with its ordering and inventory systems. This means customers can easily check the availability of tools, improving satisfaction.
Microcut’s new location in Southwick is strategic—not only is it close to Dunlop’s home, but it also positions them well with distributors and customers. Dunlop is actively looking to expand his team, hoping to add sales staff in the near future.
This small company is a reminder of the resilience of local businesses. Microcut’s story is not just about survival; it’s about innovation, community, and the fight to keep jobs local. As Dunlop prepares to showcase at the Manufacturing Technology Series EAST, he symbolizes how small companies can adapt and thrive in a competitive market.
For further insights into family business dynamics, the Family Business Center provides a wealth of information on best practices and success stories.
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