Many of our manufacturing customers are getting squeezed by rising labor costs, material costs, taxes, real estate/facility costs and energy costs. One of our manufacturing customers was taking a $2m/year hit due to the rising minimum wage in NYC, but they also had some opportunities for cost reduction. They were spending $1m in expedite fees because they could not get their products delivered on time. They had $4m in scrap and had too much inventory and too many people on the factory floor. Using a combination of lean manufacturing, inventory management, quality improvements, production planning and product cost justification, we assisted them in eliminating the $1m in air shipments, cut their scrap by $2m and cut 125 employees to keep them in the black.
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