This expensive, time-intensive capital solution would be extremely risky in the emerging market. In a last effort to increase production before committing to the new capital, the company called in Stroud to help.
An $8 billion consumer products company was facing intense price pressure passed down through the supply chain due to increased competition from low cost manufacturers in other countries. Prices were being continually driven down and results had moved into the red. An industry expert’s report stated that “The company cannot continue to be the high quality industry supplier and remain price competitive.” Without significant cost improvements the company faced the potential for drastically reduced profits and market share.
An upstream oil & gas facility was struggling to reach its design production capacity. After years of grappling with technical problems and maintenance issues, some in the management team felt that the plant was “lucky” to be operating where it was. Plans for a series of capital projects to increase capacity had become the main focus. However, with multi year timelines required to execute these projects, the company stood to defer nearly a billion dollars in revenue and was running out of options.
Amidst unprecedented market growth a food processing company was expecting 20% year-on-year revenue increases, and was reaching the limit of their capacity to meet demand. During the previous three years production lines had been pushed to nameplate rates, downtime had been reduced to world-class levels, and production schedules had been optimized to keep up with incoming orders. With years of improvement already realized, many believed that there was little opportunity to improve capacity without a major capital expansion.
An oil sands mine operator was looking for its next game-changing improvement following a series of debottlenecking and optimization investments. Company leadership believed opportunity must exist in their current asset, but were struggling to highlight it given all of the improvement they’d achieved.
A leading beverage producer was weeks away from cancelling their “back-to-school” product launch due to contamination in their signature product. One production line had been shut down because its cartons were consistently contaminated. Leaders felt stuck between a rock and a hard place. On one hand, now running that line meant missing “back-to-school” demand. On the other, running the line to meet demand risked contamination in a product they market to children.
A food and beverage company was excited about projected sales growth for one of their products and knew increased demand would soon outpace their production capabilities. They were planning a multi-million-dollar capital expansion to meet this demand which showed an attractive return. Even with this viable option on the table, leaders were curious whether an alternative existed that could meet their demand needs faster and at lower cost.
Leaders at a bio-refinery were aiming to capitalize on increasing product demand. The trouble was available feed quality was decreasing. Seeing limited opportunity to raise production with lower-quality feedstock, the leadership team was concerned that a rushed, multi-million dollar equipment upgrade may be the only option. They worried that an expensive, time-intensive capital solution would be risky if the emerging market underperformed. They brought in Stroud to help the refinery meet increased demand with their existing asset base while utilizing lower-grade input feed.