Massachusetts Small Business Development Center Network
Northeast Regional Office

United Tool & Machine Corporation

In 2005, Scott Fallavollita, backed with an MBA and 22 years progressive experience in manufacturing, acquired Gaynor Industries. The 2.5 employee company, housed in a 2,500 sq. foot shop, is a niche producer of sealing washers, nuts and screws and services customers throughout the U.S., Canada and Mexico. Part of the opportunity in purchasing Gaynor was the offer to co-locate in the same building with its Newburyport metal stampings supplier.

In 2007, Scott made a strategic purchase of United Tool & Die (now United Tool & Machine Corporation), allowing Gaynor Industries to become independent of its stamping supplier. United Tool & Die was also a supplier of metal stampings in addition to wire EDM, grinding, bending, forming and machining. The acquisition, including 6 employees, was funded by an SBA 504 loan via TD Bank and Granite State Development Corporation of Portsmouth, NH. Employment stood at 9. 

In 2008, UTD secured a $15,000 Workforce Training Fund Grant from the Commonwealth of MA to train its staff in Lean Manufacturing. Due to dramatic results, the company was invited by its consultant, the Greater Boston Manufacturing Partnership, to man a booth at their yearly Shingo Prize conference as an example of the successful implementation of Lean principles. Later that year, Tesla motors began using GI specialized washers in their electric car battery packs. 

In 2009, the company purchased its current 15,000 sq. foot building in Wilmington with another SBA 504 loan, funded by TD Bank and New England Certified Development Corporation.

In 2011, UTD embarked on a plant makeover and using a rebate from its electric utility, revamped the facility with energy efficient lighting and added an energy efficient air compressor. The upgrade also included finishing the floors, insulating the walls, and adding new doors, all to better organize the shop and improve customer first impressions and employee morale.  

UTD has also focused on improving all facets of its business and invests constantly to upgrade its machine capabilities. It has added numerous new and used production machines, CNC machine tools and QC inspection systems. It also anticipates acquiring a well-established, 10-person CNC machine shop in Rockport, which will expand its CNC capabilities. The business is working with TD Bank to secure an SBA 7A loan of $1.1M to finance this acquisition. 

In 2012, UTD qualified for another Workforce Training Fund grant. Through the grant, it is now in the midst of implementing ISO 9001 and anticipates fulfilling the certification requirements by the end of Q1, 2013. The funding also provides for advanced Lean Manufacturing training and other employee classes.  The plan for UTD from the outset was to create a culture and foundation from which to construct a high-performance, growth-oriented company. UTD has achieved its goal of attracting and retaining the right people and strategies to manage and grow the company while weathering challenging economic times. Today the company employs 13 full-time and 3 part-time employees, and plans to grow to 22 full-time and two part-time employees after the pending acquisition; sales over the last 5 years have been increasing at an average of 10% per year.  

"As a regular client of Margaret Somer’s at the Salem SBDC over the past two years, I have come to rely on her insight, input and valuable contacts to help steer my company through the inevitable ups and downs of small business ownership. In particular, the guidance she lent this year while acquiring another business proved invaluable as we navigated a series of financial, personnel and logistical issues. It’s part of my process now to lean on her wise counsel and perspective whenever there are new challenges to address."

Scott Fallavollita was selected as the SBA Massachusetts 2013 Small Business Person of the Year. Listen to Scott discuss his story of entrepreneurship on Radio Entrepreneurs in June 2016 (4:22).