Many U.S. manufacturers have struggled to grow in the face of global competition and economic uncertainty. These factors have challenged the industry, put pressure on prices, and forced many shops out of business.

MacKay Manufacturing of Spokane, Washington, had a history of steady growth from its inception in the 1950s as a high-mix, low-volume job shop. As competition began to rise and the slowdown of 2001 pummeled many in manufacturing, the shop witnessed decreasing profits and saw no signs of a quick bounce back.

“The real wake-up call was when we weren’t awarded a large contract from a customer,” says Mike MacKay, who took over as president of the company in 1984. “They did a review and said they could only award the contract to a lean shop. We thought we were lean, as far as we understood the term. It was devastating.”

MacKay, determined to become lean, knew the company needed to change three aspects: manpower, machines, and methods. But he also thought that most of the manufacturers that benefited from lean methods were high-volume production shops, not job shops with many part numbers and small batch runs.

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