PCG | Pacific Consulting Group

Building Materials

Companies in the building materials industry are constantly challenged to develop innovative strategies that deliver rapid, sustainable results across the value chain.

PCG is assisting clients to review strategy and operational solutions - from plant to manufacturing processes, technology to cost structure efficiencies - opening up a wealth of new opportunities for a broad range of clients in this industry.

We support our clients in developing strategic planning by applying unique insights and perspectives from our senior consultants.

Our Expertise

Client Results

Building for the Future

PCG's client needed to transform its operations and realise a profit. By developing and implementing a pricing strategy, importing new product and rationalising existing product the company's performance improved substantially.

Business
Opportunity

Material Co's building products division was facing costs escalating faster than prices in a declining industry. In addition, alternative lightweight products were taking market share from its core products.

As well as a need to increase profits through pricing strategy, the division also had to develop alternative products to defend its core business and provide a growth engine for the future.

Our
Recommendation

PCG developed a product line profitability (PLP) model by customer, by product and by channel.

PCG recommended what products to exit and where to re-price based on the product line profitability model and an understanding of competitor pricing.

PCG also recommended three alternative products to start importing to defend the core business.

Results
Achieved

After 12 months, EBITDA improved by 24% and market share stabilised.

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