Proper Tooling to close Michigan plant, lay off 130 workers


Appropriateness was 7th most recently plastic news Ranking of North American toolmakers with estimated sales of $84 million and 280 employees.

The layoffs are permanent and the result of “reasonably unforeseen financial difficulties,” according to a November 21 WARN notice filed with the state.

Hamood is a collapsed tool company based in Florida private equity A New Water Capital and Proper Group company with factories in Tennessee, South Carolina and Ontario. The PE firm initially agreed to acquire more businesses than it ultimately acquired.

“At the end of the deal, they wanted to break the deal and buy only a small portion of the offer they made, which put us in a position to sell the rest of the company in a hurry. The rest of the company has a lot of debt left,” Hammoud said.

Supply chain pressures and liquidity problems due to inflation, combined with a lack of bank support, have forced companies to prepare for mass layoffs, he added.

Proper Tooling has just exited as a local tool and die specialty store due to financial pressure on smaller manufacturers and machining companies. Industry pressures have improved, but staffing shortages, inflation and supply chain disruptions are having a huge impact on smaller manufacturers.

In August, New Hampshire-based Resonetics LLC moved to downsize Tru Tech Systems Inc.’s operations in Mount Clemens. That same month, Romeo-based Cammand Machining LLC filed for Chapter 11 bankruptcy.

The decision to sell the parent company was driven not only by recent market conditions, but also by pressure from automakers and Chinese competitors ahead of supply chain disruptions caused by the COVID-19 pandemic.

“Financial pressure is also due to very poor payment terms from OEMs,” Hamood said. “There is increasing pressure from the OEM community to source in China at lower prices.”



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