Industrials & Manufacturing
Successful Turnaround of a Steel Door Manifacturer
Applied Value increased EBITDA margins by 25 p.p. through lead time transformations
Applied Value acquired a steel door mfg. Following a period of low volume, the focus was on saving the company from bankruptcy due to high fixed costs. Because doors are typically one of the last products at a construction site, contractors can face delays if doors are late, making lead-times the #1 priority for door providers.
The turnaround spanned the entire operation, with projects ranging from Divestiture of non-core product areas, org. efficiency and transformation, product development and sales force efficiency, low-cost-country sourcing for non-core components and mfg. process waste reduction.
Soon thereafter, lower costs and faster lead-times led to significant profitability and market share gains. In 2013, the company was sold to a leading Private Equity firm.