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If we could build it, they would come…
Manufacturing is a challenging business – from labour, to raw materials, to distribution, there are dozens of potential hurdles. Also, when your market has lots of cost escalation, the last thing you want to do is deplete your cash reserves. However, great markets open up great opportunities – and our client could see a way to improve margins substantially and serve the demand in the market, by adding better technology to the shop floor.
The challenge – how to implement the plan without leaving their business cash poor, and therefore vulnerable to staff, transportation, and inventory cost increases.
Our lease helped them upgrade underperforming assets with new ones from a variety of vendors. Their shop is now speedy, effective and has lots of new capacity – and they were recognized as the fastest growing franchise in the country. They dreamed it, built it, and the clients are definitely coming.
When a company outgrows its space it’s usually because they need to put more bums in more seats.
Some oil and gas contractors don’t always have a big profile to go with the size of the job.
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