Risk Management

Risk Management
5/1/2011

The future is filled with uncertainty but, we can plan and prepare for the future. Planning is one of my hardest jobs and it gets the most attention.  Due to our customers' concerns regarding risks to their production, we have put together a brief summary of some of our planning

Increased Energy Cost
At the pump, we are all aware of  the increases that this limited petrochemical resource is bound to experience.  At Protomatic, we have implemented green technologies that use less petroleum based materials. Some examples are our use of reclaimed carbon dioxide for machining and synthetic cutting fluids.  Our company vehicle is a hybrid.

Increased Commodities
The general costs of our raw materials is upwards.  Alumiumum, Titanium, Steels, Red Metals  prices are tied to electric energy.  Plastics are linked to petroleum  prices.  To mitigate the impact to our customers, we purchase large quantities of materials that we know we will be needing.

Catastrophic Events
A lot of our customers' have inquired as to the business impact that the recent Japanese earthquake, tsunami and nuclear crisis will have on Protomatic.

We source our needs as near to us as possible and typically use US companies. As a result, there is no significant impact on any Protomatic customers at this time.

Our Actions
Here's what we have been doing over the last year.

We've increased our raw material stock pile for our repeat customers' products.
 
Increased security at our plant with cameras and upgraded security systems to protect material, data, activities, and equipment.

Added redundancy on critial path equipment or systems based on our customers reliance on Protomatic parts.

Added a fuel efficient hybrid car.

Invested in training with personnel to stay up to date on the latest technologies.

Upgraded and invested in newer equipment and automation to improve performance as well as reliability.
 
What this means to our customers
This means that business you place with Protomatic will continue uninterrupted with predictable delivery and be of the highest quality.  These investments we are currently making reduce our risk of paying for fluctuations in commodity prices.

Tags: education, training