Driving Success for Small-Scale Ag & Equipment Manufacturers

By Aaron Wagner

 When people think of agriculture and heavy equipment manufacturing, they often picture large, global companies with vast facilities and complex machinery. But while large manufacturers are key players in these markets and the global economy overall, most businesses are actually much smaller. In fact, according to the Small Business Administration (SBA), more than 75% of manufacturing companies have less than 20 employees.

In agriculture, these small manufacturers play a slightly different, more localized role. Their priorities and challenges differ from those of the global giants, particularly when it comes to processes like powder coating.

So, who are these small businesses? What do they value in their finishing operations? And what types of challenges do they face in 2025? Here, we’ll dive into the unique world of small equipment manufacturers, explore their powder coating priorities, and share strategies to help them thrive.

Who, What, and Where
The SBA defines a small business as those with 500 employees or less. In manufacturing, these businesses tend to be more specialized than larger companies, producing things like orchard equipment and mechanical harvesters for vineyards and nut and fruit farms. From potato to pistachio pickers, the products from these small manufacturers serve a specific and critical role in agriculture.

Small manufacturers exist all over the country, but like most industries, they populate some areas more heavily than others. In the Northwest, California, Oregon, and Washington house many of the smaller farms and orchards that these businesses serve. The Midwest—Ohio, Michigan, Wisconsin, and Illinois—is also home to many smaller OEMs and tier suppliers.

Values and Priorities
At Sherwin-Williams General Industrial, we work with businesses of all sizes. Some of our team has been out in the field supporting customers for decades. When contemplating this article, I reached out to Mike Solomon on our design engineering team. He’s been out in the field helping customers design new finishing lines for more than 30 years, so I asked him what trends he’s seeing when it comes to small businesses and powder coating.

“Everyone is trying to save money. Small businesses are working hard to be cost-effective, especially in today’s market conditions. To do this, more and more of them are bringing powder coating in-house, rather than outsourcing. This gives them better control over quality and allows them to reduce costs in the long term.”

Reputation is a big differentiator for these small manufacturers. Working in such specialized markets, word of mouth travels fast and holds a lot of sway. Coatings are the first thing a customer sees when it comes to heavy
equipment, so the finish needs to be pristine and long-lasting. These machines live in extreme environments every day, so durability—specifically corrosion protection and color/gloss retention—is critical.

“When people are spending $500,000 on something, they want to make a wise investment,” continued Solomon. “The coating is the first thing they see, so if it falls off or the part gets rusty, the customer feels it's an inferior product, even though the machine itself may still be working fine.

That's why these vendors are bringing powder coating in- house. They’re looking for more control, to ensure that their products look good for a longer period of time.”

Planning for the Future
Small business owners typically wear a lot of hats, overseeing everything from staffing to managing costs, quality, operations, etc., which leaves little time to focus on the details of a successful powder coating operation. With more and more small businesses bringing coatings in-house, planning for the future is a big challenge.

“The biggest question is, where do they see their operation in 10 or 15 years?” said Solomon. “I can't tell you the number of companies I’ve seen that made an investment five or 10 years ago, just to find out that the line they built is woefully inadequate to cope with the product they want to coat now.”

Location is a critical decision for small manufacturers. An in-house powder coating operation needs space to grow and evolve with the company and, in most cases, staffing as well. Urban areas tend to offer more flexibility, as finding employees is easier in and around major cities, where there’s a larger, more diverse population. Rural areas, on the other hand, provide ample space, allowing agriculture businesses to stay close to their customers and to test equipment in realistic environments. However, staffing remains a challenge in these regions due to smaller labor pools. Interestingly, larger equipment dealers and manufacturers in rural areas often become hubs that attract smaller suppliers and create localized communities. To circumvent staffing challenges, some small businesses are investing in automated equipment. But while automation is slowly becoming more affordable, the customization of parts can make it very difficult to integrate automation into these smaller powder coating operations.

Understanding Powder Coating Needs
Another challenge for small manufacturers is knowing which powder coating product to choose. Like any business, this requires an understanding of your role in the marketplace. What do your customers care about? Are you building equipment that will be showcased and used for decades? Or is this a component that will be used once and cast aside?

“Because reputation is so important for these smaller companies, a lot of them think that every part they produce needs to be a showpiece,” Solomon said. “There are levels to coatings. You don’t always need the Lamborghini when something more practical will get the job done just as well.”

Overengineering a powder coating operation can end up shrinking profit margins and potentially even lowering throughput. At Sherwin-Williams, we always encourage customers to look at the finishing line like its own individual cost center. Instead of just focusing on the cost of the coatings, we look at total applied cost, which includes everything it takes to get that paint onto the part—labor, application, dry times, energy usage, waste, etc. With this perspective, it’s much easier to pinpoint inefficiencies, identify cost drivers, and make improvements as needed.

Another thing to consider when choosing a coating is availability. Powder coatings are typically harder to get in small volumes than liquids, especially in custom colors. With less space for storage, small businesses need a supplier that can meet their needs, with dependable delivery that won’t interrupt production.

Gaining Expertise
Small business owners pride themselves on knowing what’s best for their operations—and rightfully so. They’ve built their businesses by understanding their customers, products, and markets inside and out. However, when it comes to specialized areas like powder coating, even the most experienced owners may lack the specific expertise needed to make the best decisions. That’s where a willingness to ask for help can make all the difference.

Coatings suppliers are invaluable partners in this process, providing guidance on everything from formula selection to troubleshooting challenges. Some suppliers offer continued technical support and can provide tools that many small businesses don’t have the budget for—data recorders to optimize cure cycles, or film thickness gauges to ensure the right amount of powder is applied to the part. These tools are key to optimizing efficiency but can cost as much as $20,000, making supplier support critical.

For small businesses bringing finishing in-house, hiring someone with hands-on experience in a powder coating booth can help bridge the gap between the shop floor and the supplier, ensuring clear communication and quicker problem- solving. An in-house expert can also help small businesses stay up to date on the latest technologies. The coatings industry is constantly innovating, so it’s important to stay connected to ensure you’re staying ahead of the competition.

Industry conferences and associations can also help you keep pace with industry innovation. FABTECH is a great show for powder coaters, offering a variety of educational sessions focused on best practices and industry advancements. Finishing focused associations and organizations, like the Powder Coating Institute and the Chemical Coaters Association International, offer a variety of other resources for large and small companies to take advantage of throughout the year. My team at Sherwin-Williams also recently started hosting Innovation Days. These small, one-day events are held locally around North America and are free to attend, making it easier for small businesses to get insight into the latest heavy equipment coating trends and technologies.

There are a lot of factors to consider when it comes to powder coating. By leaning on expert resources and building the right team, small business owners can maintain control while setting themselves up for long-term success.

Aaron Wagner is global segment director, heavy equipment at Sherwin-Williams Industrial.