Skyway Precision Inc. Finds New Home in Platteville

Skyway Plant Manager Gary Humes and Vice President of Operations John Jenkins 

Platteville’s Industry Park has a new tenant with both local and out-of-state roots. Michigan-based Skyway Precision Inc. purchased locally-based Daleo Machining Incorporated (DMI) in September of 2016. Now the company is relocating from the DMI location on Pleasant Valley Road to the former Hickory Springs building on Eastside Road. As of publication, one production cell is expected to be in operation. The entire move is expected to be completed by the end of the year. Platteville is the fourth and only Wisconsin location for Skyway. Their other facilities include two manufacturing facilities and a combination manufacturing plant/warehouse in the Detroit area. In total, the company has over 260 employees.

John Jenkins, Vice President of Operations for Skyway, describes the acquisition of DMI by Skyway as a strategic move to connect with a new customer. “John Deere is a large regional customer and one that Skyway had targeted for partnership. The acquisition of DMI was a means to develop that partnership and to improve our geographical presence.” Platteville is also close to the Wisconsin foundries that supply Skyway’s raw materials. Overall, Jenkins has been impressed with the community’s welcome. “It has been a pleasant surprise to see how warmly Platteville has embraced our Michigan company. Everyone from PAIDC to UW-P has been very accommodating.”

Ela Kakde, Executive Director of the Platteville Area Industrial Development Corporation (PAIDC), has been equally excited about Skyway. “Skyway is a perfect fit for our region and, being from Michigan, they broaden our network of customers and vendors.” PAIDC has assisted Skyway with purchasing a lot adjacent to their new building for possible future expansion and connected the company with local resources to help build their workforce. 

Skyway produces flywheels and pulleys for diesel engines in Platteville. While 95% of Platteville sales come from John Deere, the company represents only 14% of Skyway’s overall sales. According to Skyway’s Platteville Plant Manager, Gary Humes, the greater diversification will mean more stability at the local level. Other Skyway customers include Cummins, Caterpillar, Eaton, Volvo and Navistar. The company is IATF 16949 (quality) and ISO 14001 (environmental) certified and has six-sigma black belts on staff.

Skyway has averaged a 10% increase in sales annually, but their goals for the Platteville plant are more ambitious. “Our objective is to double sales. A new building was key to support that growth,” stated Jenkins. At 40,000 square feet, the new location will be double the size of the existing facility. An “open air” concept will improve flow during the production process. The new facility will also help with marketing to new customers. “When we walk customers around the building today and they see every machine in use, they wonder how we are going to run their products,” explained Humes. “The extra space will help alleviate that problem.” 

Skyway was founded in 1968 and remains a family business. Three sons of the original founder continue to serve on the executive board. Both Jenkins and Humes feel that “family” continues to define the organization culture. “It is a challenging but fun atmosphere. We want to see our employees grow in the company and share in the profits,” said Jenkins. In addition to profit sharing, Skyway offers employees individual and plant-based bonuses, either in the form of pay or paid time off. Currently, the Platteville location has 39 employees, but that number is expected to grow when the move is completed. The company hires for positions such as machine operators, material handlers, quality inspectors and manufacturing engineers.

Skyway has been quick to take advantage of Platteville’s proximity to higher education. The company has an engineering internship program and is developing a job share program that would allow UW-Platteville students to share one job. In addition to expanding their workforce pool, Jenkins views the program as a win for the students as well. “They have an opportunity to get manufacturing experience while still attending school. You can’t simulate the shop floor in a classroom.”

Intern Dayna Neidich, a mechanical engineering student at UW-Platteville from Rockford, Illinois, was excited to join Skyway for the summer. “It always helps when you have job experience related to your career. During a job interview, you can actually talk about real-life examples.” Neidich has been appreciative of her time at Skyway so far. “I’ve enjoyed it. Even though they are going through a big move, they always take time to make sure that I understand what I am doing and to answer questions.”

Kakde has been impressed with Skyway’s creativity and willingness to think “outside of the box”. “They are problem solvers. When their customers need help, they go onsite and try to figure out how to do it better or cheaper. They’ve brought the same flexible mindset to addressing their workforce needs.”