Client Impacts

Rationalized Manufacturing Footprint to Realize 30% Cost Savings at PE-Owned Equipment Manufacturer

Capabilities
Private Equity & Financial Sponsors Industrials & Infrastructure
Exterior of modern manufacturing building

Challenge

A private equity-owned measurement equipment manufacturer’s operating footprint spanned three locations, creating a complex operating environment with high facility and labor costs.

The company needed help to evaluate the cost implications and operational risks of downsizing manufacturing to a single location.

Approach

  • Conducted SME interviews to determine operating model changes required to support site transitions
  • Performed site visits to assess manufacturing capacity across locations
  • Created adjustable cost modeling tool to show impacts to facilities, labor, and other operating expenses based on various consolidation scenarios
  • Modeled construction, build-out, moving, and other one-time costs associated with location expansion
  • Outlined business environment risks associated with consolidation

Results

Number 1

Realized 30% labor cost savings by eliminating FTE redundancies and shifting operations to facility with lower hourly wages 

Number 2

Decreased annual freight costs by 50% and improved lead time by 2-3 days through simplifying logistics model 

Number 3

Developed transition roadmap to manage responsibilities and outline timelines of footprint consolidation 

Number 4

Detailed cost-effective facility termination and expansion plan that resulted in 10-month payback period 

Experts

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