Case History: Relocation Analysis … Strategic Plan
The Organization
Thirty four year old Connecticut inner city, family owned, custom plastic molder growing rapidly.
The Situation
Experiencing difficulties in maintaining competitive prices for customers moving to southern areas of U.S. who were starting to utilize low cost molders in their new base area. The Company was seriously considering moving operations to a southern community offering special incentives and cost savings.
The Approach
Over an extended period, Pace worked with the Company to...
- Develop a strategy to grow the business regardless of location
- Carry out a detailed analysis to clearly identify the differences in cost of doing business in current location versus that in selected southern locations
- Assist in negotiations with the State Development Commission and other agencies
Pace was subsequently engaged to assist in implementing the new growth strategies.
Results
The State, City and utility companies put forth an assistance package with included grants, land gifts, utility rate reductions, energy savings, tax, and training incentives plus favorable loans for equipment upgrading and refurbishment. The value of the total package was approximately equal to five years of cash savings projected in moving to the southern location. Aggressive growth plans were quickly implemented in the existing location.