Turning Around a Struggling Manufacturing Firm

CLIENT: A small manufacturing firm in upstate New York 

Challenge

The business was experiencing declining profits despite steady revenue. After an internal review, they suspected that their cost structures were out of control, but they lacked the expertise to identify the source of the problem.

Solution

We investigated the firm's financials and identified inefficiencies in cost accounting. Production costs were higher than industry averages, and the firm had been overly dependent on expensive suppliers. We renegotiated supplier contracts, helped them transition to a more affordable supply chain, and introduced a detailed P&L statement analysis that isolated problem areas, such as excess labor costs and underperforming product lines.

Outcome

Over the next 12 months, the firm reduced production costs by 15%, realigned its product offerings based on profitability, and saw a 20% improvement in its gross profit margin.

Strategic Business Advice From an Outside Expert Can Support Your Success

Contact us to learn more about our services.