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