TechPrecision Corporation operates as a manufacturer of precision, large-scale fabricated and machined metal structural components and systems.
The company offers a full range of services required to transform raw materials into precision finished products. It sells these finished products to customers in two main industry groups: defense and precision industrial. The finished products are used in a variety of markets, including defense, aerospace, nuclear, medical, and precision industrial.
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TechPrecision Corporation operates as a manufacturer of precision, large-scale fabricated and machined metal structural components and systems.
The company offers a full range of services required to transform raw materials into precision finished products. It sells these finished products to customers in two main industry groups: defense and precision industrial. The finished products are used in a variety of markets, including defense, aerospace, nuclear, medical, and precision industrial.
The company works with its customers to manufacture products in accordance with the customers’ drawings and specifications. The company’s work complies with specific national and international codes and standards applicable to its industry.
The company has two wholly owned subsidiaries that are each reportable segments: Ranor and Stadco. Each reportable segment focuses on the manufacture and assembly of specific components, primarily for defense, and other precision industrial customers.
The manufacturing operations of the company’s Ranor subsidiary are situated on approximately 65 acres in North Central Massachusetts. The company’s 145,000 square foot facility houses state-of-the-art equipment, which gives it the capability to manufacture products as large as 100 tons. The company offers a full range of services required to transform raw material into precision finished products. The company’s manufacturing capabilities include fabrication operations (cutting, press and roll forming, assembly, welding, heat treating, blasting, and painting) and machining operations, including CNC (computer numerical controlled) horizontal and vertical milling centers. The company also provides support services to its manufacturing capabilities: manufacturing engineering (planning, fixture and tooling development, and manufacturing), quality control (inspection and testing), materials procurement, production control (scheduling, project management, and expediting), and final assembly.
All manufacturing at Ranor’s facility is done in accordance with the company’s written quality assurance program, which meets specific national codes, and international codes, standards, and specifications. The standards used for each customer project are specific to that customer’s needs, and the company has implemented such standards into its manufacturing operations.
The manufacturing operations of the company’s Stadco subsidiary are situated in an industrial warehouse and office location consisting of approximately 183,000 square feet in Los Angeles, California. At this site, Stadco manufactures large flight-critical components on several high-profile commercial and military aircraft programs, including military helicopters. It has been a critical supplier to a blue-chip customer base that includes some of the largest OEMs and prime contractors in the defense and aerospace industries. Stadco also provides tooling, customized molds, fixtures, jigs, and dies used in the production of aircraft components, and operates a large electron beam welding machine, allowing it to weld thick pieces of titanium and other metals.
Products
The company manufactures a wide variety of products pursuant to customer contracts and based on individual customer needs. The company can also provide manufacturing engineering services to assist customers in optimizing their engineering designs for manufacturing efficiency. The company does not design the products it manufactures, but rather manufactures according to ‘build-to-print’ requirements specified by the company’s customers. Accordingly, the company does not distribute the products that it manufactures on the open market, and does not market any specific products on an ongoing basis. The company does not own the intellectual property rights to any proprietary marketed product, and does not manufacture products in anticipation of orders. Manufacturing operations do not commence on any project before the company receives a customer’s purchase order. The company only considers contracts that cover specific products within the capability of its resources.
Although the company seeks continuous production programs with predictable cost structures that provide long-term integrated solutions for its customers, its activities include a variety of both custom-based and production-based requirements. The custom-based work is typically either a prototype or unique, one-of-a-kind product. The production-based work is repeat work or a single product with multiple quantity releases.
Changes in market demand for the company’s manufacturing expertise can be significant and sudden, and require it to adapt to the collective needs of the customers and industries that it serves.
The company serves customers in the defense, aerospace, nuclear, medical, and precision industrial markets. Examples of products manufactured within such industries during recent years include, but are not limited to, custom components for ships and submarines, military helicopters, aerospace equipment, components for nuclear power plants, and components for large-scale medical systems. The company manages and reports financial information through its two reportable segments, Ranor and Stadco.
Marketing
While the company has significant customer concentration, it endeavors to broaden its customer base, as well as the industries it serves. The company markets to its existing customer base and initiates contacts with new potential customers through various sources, including personal contacts, customer referrals, and referrals from other businesses. A significant portion of the company’s business is the result of competitive bidding processes, and a significant portion of its business is from contract negotiation.
Requests for quotations received from customers are reviewed to determine the specific requirements and the company’s ability to meet such requirements. Quotations are prepared by estimating the material and labor costs, and assessing the company’s current backlog to determine its delivery commitments. Competitive bid quotations are submitted to the customer for review and award of contract. Negotiation bids typically require the submission of additional information to substantiate the quotation. The bidding process can range from several weeks for a competitive bid to several months for a negotiation bid before the customer awards a contract.
Principal Customers
A significant portion of the company’s business is generated by a small number of major customers. The balance of its business consists of discrete projects for numerous other customers. As industry and market demand change, its major customers may also change. The company’s ten largest customers generated approximately 93% of the company’s total revenue in fiscal 2024. The company’s group of largest customers can change from year to year. The company’s largest single customer in fiscal 2024 was a prime defense contractor, and accounted for 28% of its net sales. The company’s defense customers are engaged in the development, delivery, and support of advanced defense, security, and aerospace systems, including the U.S. Navy’s Virginia-class fast attack submarine program, and the U.S. Navy’s Columbia-class ballistic missile submarine program. The company also manufactures large flight-critical components on several high-profile commercial and military aircraft programs, including military helicopters. The company has also served customers who supply components to the nuclear power industry.
Government Regulations
In addition to the requirements of the state government of Massachusetts and California, and the local governments having jurisdiction over the company’s plants in those states, the company must comply with federal health and safety regulations, the most significant of which are enforced by the Occupational Safety and Health Administration (OSHA).
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