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Family-owned machine shops tend to be singular in nature. Management and operating styles reflect the values and character of the families that built them. But while there is no single model for success at family-owned, American job shops, they often share a similar framework of operations. Production tends to focus on defined areas such as part size, throughput capacity, materials expertise, end markets or production technologies.  

But , the family-owned-and-operated metalworking facility that is the subject of this month’s cover feature, stands out in a couple of distinct ways. And while those distinctions may not be easy to replicate, they still serve as a valuable lesson in business strategy.

On the shop floor, Marathon Precision’s blend of precision CNC machining with three full-time blacksmiths and a new chemical etching department is not typical at shops of this size (~50 employees). This mix of production methods begins to make more sense after getting to know owner and founder Mike Bauer — an old-school craftsman turned manufacturing entrepreneur. You can connect the dots from his beginnings as a tool-and-die maker to the shop’s ability to run lights-out as a path toward fully integrated manufacturing.

This is the first key to Marathon’s success: Its purposeful development into a vertically oriented production facility. Shops limited to a single specialty can be vulnerable to supply chain disruptions and erratic production schedules. So Bauer invested heavily — at times some might say recklessly — in multiple manufacturing processes. Today on Marathon’s shop floor you’ll find:

• Hand-forging in one section of the building
• Manual and CNC grinding in an adjacent department
• CNC mills, lathes and multispindles — more than 50 now — in their own dedicated area
• Optical inspection and traditional CMMs
• Chemical Etching in a newly completed department.

Clearly, this approach is not cheap. Some of the equipment, such as the Keyence 3D scanner discussed on page 64, was not adopted in what you might call a measured fashion. If promising work came along that required new technology, more often than not, Bauer invested in it. New capabilities and extra floor space were often incorporated long before the works orders were a sure thing, and the strategy required reinvesting a higher percentage of profits than many shop owners would be comfortable with. These were calculated risks. But when when they paid off, they allowed Marathon to absorb new customer demands seamlessly.

From what I can tell, this was always part of the plan, from day one.

Not part of the plan but just as critical to Marathon’s success was the other work that makes Marathon unique. One way to describe that work is play. Not the tech-bro, “work-hard-play-hard” style of play with built-in kegerators, free lunch or foosball tables. This kind of play centers around three qualities: Creativity, knowledge and trust.

In 2015, Mike Bauer’s best friend died of cancer. Devasted, Bauer became contemplative about life and work. “When I was leaving his funeral, I was thinking about how I’m living my life, about how I’ve always said that I can make anything, that I’m proud that I can make anything,” Bauer told me. “And that day I decided to start making fun stuff in my shop. Some of the art you see around here, I think it’s good for the shop, good for morale.”

The “fun stuff” is likely the first thing you’ll notice when you step onto Marathon Precision’s shop floor. You can find in-depth descriptions in our March 2025 cover feature, but to sum it up, here’s what you’ll see on Marathon Precision’s shop floor:

• Metal sculptures and art everywhere, all made in-house
• A professional music recording studio
• A ’55 Chevy and a WWII bomber fuselage, among other giant installations, mounted on the wall
• A backroom garage stocked with vintage cars in various states of restoration
• Employees’ cars in the same garage, being repaired.

Creating art or household items or using the shop’s equipment to repair your car is not only allowed but encouraged. Learning to use this equipment brings knowledge to the employee. Shop leadership trusts the employees to use this equipment safely and responsibly. Creativity, knowledge, trust. “If it’s mechanical, it’s good,” Bauer explained in his typically understated manner. “The guys can work on their cars here. They can make whatever they want to make.” This characteristic of Marathon Precision wasn’t the result of a strategic brainstorming session. It’s simply a reflection on who the owner is.

So yes, this shop is a model of vertical integration. If the conversation ended there, it would still be a lesson worthy of attention. But the lesson becomes more profound when you dig into the shop culture, defined in large part by curiosity, generosity and a willingness to reinvest profits. If you consider these “soft skills” to be a distraction from the bottom line, consider the shop’s retention rates. Bauer hasn’t lacked for skilled workers in years. Consider the cross-training and diverse skill sets this culture fosters. When a complex aerospace part comes through the door, think of how adept this team must be at creative problem-solving. Taken as a whole, it is why Marathon Precision is a prime example of how to build a high-morale, profitable shop.