Elastomeric Component Manufacturer

ELASTOMERIC COMPONENT MANUFACTURER

The Crisis

A full service custom elastomeric component manufacturer using a comprehensive range of thermoset materials specializing in high volume production demands. The company had been experiencing substantial increases in union wages and benefits over the years, which it was unable to pass through to customers. The consequence of these higher costs contributed to the business losing several millions of dollars per year.

Our Swift Action and Results

  • Orchestrated a complete operational turnaround including renegotiating a new five year contract with reduced wages and benefits
  • Improved manufacturing process throughput time, added cost containment strategies and reduced operating expenses
  • The result was a pre-tax profit improvement from a negative $2.2 million loss to a $260K profit in the first year
  • Improved EBITDA from a negative $1.2 million to a positive $900K in the first year
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