Innovation in Calumet: Steelhead Technologies secures $84M Boost

Metal finishers and fabricators face a thorny problem. They want to grow, but struggle with manual processes and outdated systems that add time and cost to each transaction. 

Steelhead Technologies, based in Calumet, has a solution. 

Instead of spreadsheets and piles of paperwork moving sluggishly through the manufacturing process, Steelhead has developed a cloud-based software platform that digitizes the shop floor, streamlining quoting, scheduling, inventory, production tracking, quality control and accounting. Their software draws bills of materials, assemblies, specs and certifications, compliance, finding parts, inventory, job costing, maintenance, production, shipping and receiving into one seamless process.  

The potential of Steelhead’s system so impressed Mainsail Partners that the growth equity firm has awarded Steelhead $84 million in growth investment funding.  

With the new infusion of funds from Mainsail, the Calumet company will be able to expand the platform’s capabilities by investing in AI-driven tools that can help North American manufacturers achieve better efficiency, higher margins and greater scalability. 

“Shops that want to scale need tools and partners that can scale with them,” says Jeff Halonen, co-founder and CEO of Steelhead. “Our customers are experiencing margin and revenue growth, as they finally have a system built to help drive these opportunities. With Mainsail’s investment, we hope to share it with thousands of more shops so they can get ahead — and stay ahead.”

Steelhead’s work is important “because many metal finishers and job shops — often multi-generational businesses — still rely on outdated manual processes and lack modern digital infrastructure, despite upgrading equipment and materials,” he explains. “This creates inefficiencies in the last mile of manufacturing, limiting growth, margins and competitiveness. By providing a software solution tailored to the unique, highly variable workflows in manufacturing, Steelhead enables shops to digitize operations, gain real-time data for better decisions, reduce lead times, improve quality and compliance, and significantly increase revenue and profitability.” 

Steelhead’s commitment to the U.P.

Steelhead was founded in 2021. It is based in Calumet.

 “The co-founders of Steelhead have deep ties to Michigan’s Copper Country and feel strongly about contributing to the growth of the local economy,” Halonen says. “The founders are alumni of Michigan Technological University, and Calumet’s proximity to Michigan Tech has allowed Steelhead to tap into an exceptional talent pool. Many students fall in love with the area during their studies and prefer to stay post-graduation, making it a perfect location to build a team.” 

Steelhead employs more than 100 people in its three offices – in Calumet, Brighton (near Ann Arbor), and Maple Plain, Minnesota. It currently serves more than 250 metal fabricating and finishing shops across the United States, Canada, Mexico and Australia. 

The company makes a meaningful contribution to the local economy through job creation and property investment. In Calumet, Steelhead employs 65 full-time staff and rents two office spaces, supporting the region’s economic diversification and tech growth in the Upper Peninsula. 

“Supporting rural economies is a core part of our vision to elevate manufacturing,” she explains. “Empowering family-owned job shops with digital production capabilities enables them to compete and win on a larger scale, driving the growth of American manufacturing.”

Customers are benefiting

Steelhead’s technology has enhanced the economy of its customers’ communities too. Customers have processed more than 1.6 billion parts on the platform, and their revenue trends indicate a 17% annual growth rate.

Minnesota’s D&K Powdercoating tripled in revenue and size over four years since digitizing production with Steelhead, and Houston’s Precision Spray cut its average production cycle time from 35 days to seven. 

“If you told me a few years ago that our guys would be walking around with iPads — in my shop — I wouldn’t have believed you,” says Dana Schnepf, president of D&K. “Technology has been a game changer for our industry, and our business is stronger than ever.”

Liberty Casting, which produces, finishes and machines iron parts for industry, is another happy Steelhead customer. 

“With Steelhead, we have improved our on-time delivery, obtained faster means of tracking and updating part status for clients, boosted employee engagement, and reduced the cost of poor quality through in-app instructions,” a Liberty spokesperson says. 

“Steelhead helps us manage all of our day-to-day jobs, as well as inventory and purchase orders,” says Luke Aho, owner of Superior Fishing Products, a U.P. business that manufactures products for the fishing/boating industry. “With Steelhead, our employees are no longer solely reliant on the owners telling them what to do. It also is able to warn us of inventory that is starting to get low.”

Mainsail Partners

Mainsail is a growth investment firm that looks for growing business-to-business software companies that founders have built intentionally over time and that customers rely on to run their businesses. 

“Most of the companies we invest in serve specific vertical markets—like Steelhead does for metal finishers and fabricators,” explains Jason Frankel, a partner at Mainsail. “They have a good base of loyal customers, established recurring revenue, and are ready to grow to the next level with capital and operational support from a firm like Mainsail.”

Mainsail chose to invest in Steelhead because the company has built a strong software product that plays a critical role in helping manufacturers digitize their operations and run more efficiently and profitably, Frankel goes on to say. “The investment reflects our confidence in the Steelhead team, the market they serve, and the opportunity to help the company accelerate growth while staying true to its mission and employee culture.”

The growth investment firm typically invests in four to eight software companies each year. “We’ve partnered with more than 100 software companies over the past two decades, many of which support everyday industries like construction, property management, hospitality, and field services,” Frankel says. “Readers in the manufacturing industry might know ProShop, which produces enterprise resource planning (ERP) software for machine shops, or INNERGY, which is ERP software for woodworking shops. While they’re not consumer brands, our portfolio companies’ software is often essential to how their customers operate.”

By providing a software solution tailored to the unique, highly variable workflows in metal fabrication and finishing, Steelhead is enabling shops to digitize operations, gain real-time data for better decisions, reduce lead times, improve quality and compliance, and significantly increase their revenue and profitability.  With the infusion of cash from Mainsail Partners, they’ll be able to incorporate artificial intelligence tools to offer even greater support. 

###