Project Based Encompix ERP Chosen by FormglasWritten by Thomas Cutler
Formglas, Inc. (www.formglas.com) recently joined fraternity of Engineer-to-Order/project-based manufacturing companies. Formglas placed an initial order for 20 seats of Encompix with implementation and support services. Formglas, located in Toronto has 4 operating divisions. The primary division (commercial construction) provides custom gypsum-based products to construction industry. The gypsum products are used in place of heavier, more expensive, more flammable materials like wood. Formglas specializes in providing ornamental ceiling and wall fixtures to Casino and cruise ship industries. Their other divisions are architectural, fireplace and CNC Pattern.A typical project for them begins with a quotation to provide a certain amount of a product that has been designed by an architect to a customer building a large facility. Formglas provides a quotation in number of pieces and feet using several custom dimensions. They make a pattern (mold) to use in production of final product. Formglas is like many of mold makers in their system requirements. Once patterns are complete company makes a recipe of gypsum or glass and then manually presses gypsum into pattern. The gypsum dries, is finished, (painted, sanded, etc) and then stored for shipment to job site. The shipments and production schedule are timed in accordance with project site build schedule.
| | Alternative Venture Finance: Federal Grants and LoansWritten by Dave Lavinsky
While most companies seeking venture capital initially think about angel investors and venture capitalists, a large alternative source of financing is federal grants and loans. The two largest federal grant programs are run by Small Business Administration (SBA), and by Small Business Investment Companies (SBICs).An SBA loan, regardless of whether it is a direct loan from SBA, or, as is more common, a bank loan guaranteed by SBA, is essentially a bank loan. The benefit of it versus a traditional bank loan is rate. SBA rates are typically much less than traditional business loan rates. In most cases, in a guaranteed SBA bank loan, SBA guarantees 90 percent of loan will be repaid to bank. As such, banks are at much less risk than in most other loans, and are a bit more flexible with regards to who they offer these loans. However, SBA usually requires founders of company to personally guarantee loans, which makes them risky should venture collapse. Alternatively, Small Business Investment Companies (SBICs) are privately organized corporations that are licensed and regulated by SBA. Small or emerging businesses which qualify for assistance from SBIC program can receive equity capital and/or long-term loans from these companies. Essentially, these companies provide their own capital, which is supplemented by federal funds, to companies they fund.
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