Machinery/ Capital Goods
Customer & Market Due Diligence Of Industrial Filtration Equipment Manufacturer: Establishing Demand Outlook In Light Of Automotive Powertrain Electrification
Conducted a 2-week customer & market due diligence to: understand the type and replacement frequency of filtration equipment; establish the impact of electrification on demand for filtration equipment; and pin down the competitive landscape. To this end, Gotham: conducted interviews with decision makers at the Big Three North American Auto Manufacturers, foreign transplants, competitors, and industry participants; determined plant-level electrification plans for major automotive OEMs; established filtration equipment needs by mapping filtration processes under different scenarios; and built a database of industrial filtration equipment vendors and equipment. Gotham’s assessment allowed our client to gain clarity on the impact of electrification on filtration equipment demand and confirmed the target’s leading competitive positioning, allowing our client to price the deal accordingly.
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Operational Due Diligence at Global Environmental Machinery Manufacturer: Assessing Product Design and Network Simplification Opportunities
Analyzed product portfolio and design platforms, manufacturing and engineering facilities, and cost structure to establish cost reduction opportunities at a machinery manufacturer with operations distributed over 13 facilities in 8 countries. Due diligence identified $23-39MM (12-21% of total COGS) in cost savings from standardizing/modularizing product line and executing a low-cost manufacturing strategy, simplifying/consolidating the manufacturing and engineering network, and reducing material, labor, and freight costs.
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Operations Diagnostic and Roadmap at Climate Control Product Manufacturer: Establishing End-vision for a Fast-growing, Entrepreneurial Company
Conducted a 3-week operations diagnostic to establish an end-vision for optimizing the clients’s manufacturing, supply chain, and engineering operations. Gotham developed a solid fact base of the client’s operations, including demand patterns, inventory, labor efficiency, product complexity, and cost structure. Working with management, Gotham created an end-vision to transform operations and generate both real bottom line benefits – 600bp EBITDA improvement, 20-30% reduction in inventory, and 30% reduction in the plant footprint – and capability enhancements (faster speed to market, improved quality, etc.) that will allow the client to capture market opportunities and drive future growth. The company’s board wholeheartedly backed this end-vision and asked Gotham to help accelerate capture of these opportunities.
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Manufacturing Operations Improvements at Leading Manufacturer of Industrial and Commercial Machines: Quality Management Program to Ensure High Returns from Quality Assurance Spending
Created a new quality management program to raise the overally effectiveness of quality spending, with key elements including: alignment of quality KPIs with customer needs and optimal process decision points; proactive management of quality assurance up and down the supply chain; accurate information on the true costs of quality functions to facilitate decision making. The program comprised vendor certification, product quality standards, preventative maintenance, inspection and testing processes, timely problem reporting and resolution, warranty processing, and quality performance and tracking. Six- month checkup of client-led program implementation found significant reduction in the cost of quality.
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Outsourcing Non-core Operations at Specialty Electrical Equipment Manufacturer: New Manufacturing Strategy at ThermaGoods
Identified potential for outsourcing non-core activities, created phased plan, and helped with phase 1 (PC board assembly). Prepared client teams to handle subsequent outsourcing targets. Annual conversion and material cost savings ranging from 6% (transformers) to 20% (stuffed PCBs), with $4.5MM in near-term capital avoidance.
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Quadrupling Revenue at Leading Power Electronics Company: An Effective, Actionable Growth Strategy for PowerTech
Developed a pragmatic growth strategy to grow an unprofitable $25MM revenue business to a $100MM, 20% EBITDA business within 4 years. Effort included first developing the target product strategy based on market segmentation and analysis, competitive assessment, and product portfolio and capability analysis, and then creating product development, sourcing, branding, marketing, and channel strategies. Initial annual savings target of $2.7MM accomplished within a year before top-line growth kicked in.
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