Steelhead Technologies has raised $84 million in growth capital from Mainsail Partners as the company looks to expand its cloud-based ERP platform for metal finishing and fabrication shops and accelerate the development of AI-driven capabilities to improve shop efficiency and profitability.
The Calumet, Michigan-based company positions its software as an all-in-one system purpose-built for metal finishers and fabricators, combining core operational functions that are often handled through a mix of spreadsheets, paper travelers, and legacy tools. Steelhead said the new capital will support product expansion across quoting, scheduling, inventory, production tracking, quality, and accounting, while also scaling its suite of AI tools designed to help shops optimize labor, schedule work more efficiently, and understand job costs in real time.
Founded in 2021, Steelhead was created to address what it describes as a persistent gap in manufacturing operations, where shops seeking growth are frequently constrained by manual processes and outdated systems that add time and cost to each transaction. By digitizing shop floor workflows and consolidating data into a single platform, Steelhead aims to help finishing and fabrication businesses improve margins, shorten lead times, and increase throughput as volumes rise.
Steelhead said customers have processed more than 1.6 billion parts on its platform, and that revenue trends indicate a 17% annual growth rate among its customer base. The company also pointed to specific examples of operational improvements among users, including Minnesota-based D&K Powdercoating, which Steelhead said tripled in revenue and size over four years after digitizing production with the platform, and Houston-based Precision Spray, which Steelhead said reduced average production cycle time from 35 days to seven.
The company’s workflow engine is designed to be highly configurable, reflecting the variability across finishing and fabrication operations. Steelhead said the platform can model shop-specific processes spanning stamping, plating, anodizing, heat treating, welding, bending and assembling, powder coating, and painting. That configurability is intended to support shops with differing part types, routing requirements, and production constraints, while providing a consistent digital layer for visibility, coordination, and financial tracking.
For Mainsail Partners, the investment expands its portfolio of vertical SaaS businesses, with Steelhead positioned as a modernization layer for a segment of the manufacturing supply chain that often relies on long-standing operational habits. The firm said many U.S. metal finishers and manufacturers have upgraded equipment and materials over time, but still lack the digital infrastructure to connect operations, cost, and customer commitments in a unified way.
Steelhead said it plans to use the funding to broaden market reach while expanding capabilities that support profitability, including real-time operational data and automation designed to reduce manual handoffs and improve decision-making from quote to cash.
KEY QUOTES:
“Shops that want to scale need tools and partners that can scale with them. 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.”
Jeff Halonen, co-founder and CEO of Steelhead
“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. Technology has been a game changer for our industry, and our business is stronger than ever.”
Dana Schnepf, president of D&K
“Many of the metal finishers and manufacturers in the U.S. have been in business for generations but are still running the same way they did decades ago. They’ve upgraded their equipment and materials but often do not have the digital infrastructure necessary to tie it all together in an efficient and profitable way. It’s not an uncommon scenario across skilled trades, and why we believe in the impact that vertical software like Steelhead can have on its customers.”
Jason Frankel, Partner at Mainsail Partners
“Steelhead has built a market leading product to help shops better serve ‘the last mile’ of the manufacturing process. We’re excited to partner with Jeff and the Steelhead team as they continue to bring much-needed visibility and control to a market that’s ready for modernization,”
Anthony Hayes, Principal at Mainsail Partners
