Margin and revenue improvement program: A leading regional industrial service company
ISSUE
The client experienced a major COVID-related contraction that reduced its revenue but improved operating margins. Our goal was to grow again while maintaining operating margins at the new level by changing how clients were services, and focusing on higher margin work.
RESULT
- Financial analysis revealed opportunities to assign its highly technical workforce more efficiently and assign low-margin work to low-cost resources
- Enhanced training capabilities developed to improve and expand its low-cost workforce resources
- Improved apprentice program and support to become the employer of choice and expand the pool of lower cost technicians
- Prioritized customers by contribution & margin and developed a sales & marketing strategy that targeted specific types of high-margin narrower clients.
- The client achieved their goal of growth while maintaining a similar cost structure, and reduced unprofitable clients and added higher value-add clients.
- Client experienced a 4:1 return on investment wit this work.