
CASE STUDY
Created Production Capacity Model Avoiding $10M+ CAPEX Spend for PE-Owned Packaging Manufacturer
Challenge
A private equity-owned packaging manufacturer faced growing demand requiring them to evaluate production expansion requirements.
The company needed a plan to support rapid business expansion in the Southwest with its existing manufacturing plant approaching capacity.
Approach
- Evaluated existing production capacity and manufacturing footprint
- Developed SKU level capacity model by production asset and geographic region to include production transfers, customer wins, and expected sales growth
- Identified operational excellence improvement opportunities at existing production sites
- Developed business case to assess the EBITDA impact of 8 scenarios
Results
I.
Avoided $10M+ in expected CAPEX to stand up a new plant
II.
Determined company was capable of supporting sales expansion with existing footprint through a series of plant operational improvements
III.
Reduced potential carbon footprint by 7,800 tons CO2/year by not expanding into new 190,000 sq ft manufacturing plant
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