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SEWNews
A publication of the Strategic Early Warning Network
A program of the Steel Valley Authority
In Partnership with the PA Department of Labor and Industry
July 2012 |
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Multi-Faceted Approach in Southeastern Pennsylvania
A Southeastern Pennsylvania manufacturer of molded rubber products sought SEWN assistance in returning the business to profitability. A nearly non-existent cash flow was complicated by an expanding debt burden. SEWN helped the company create a workable relationship with both critical and non-critical suppliers. Due to the rapidly changing marketplace, SEWN is assisting the company with contract revisions for customers and new procedures for make and hold shipments. SEWN restructured and refocused the company's product production toward quick turn, small unit outputs. Finally, SEWN created a turnaround marketing plan to reintroduce the company to former customers and to attract a new group of clients.
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| Financial Restructuring in Northeastern Pennsylvania
A Northeastern Pennsylvania manufacturer of decorative silicone trivets contacted SEWN for assistance. While the company sold its product both domestically and internationally, it had experienced a 50% decline in sales. SEWN partnered with the Manufacturer's Resource Center to pull the company through its crisis. SEWN provided a detailed financial analysis, cash management tools, and forecasting models to capture and track cash-flow issues. MRC worked with the company on its marketing efforts in order to increase sales.
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| Merging in Central Pennsylvania
The SEWN Central/Capitol Office is working with a 4th generation manufacturing firm that is integrating another 4th generation manufacturing firm into their business. SEWN is helping the owners to model a succession and financial acquisition plan that addresses the needs of both businesses. SEWN is leading the integration efforts through scenario planning, executive coaching, financial analysis and modeling the business cash flow. The client will integrate the two legacy businesses into one successful operation without employee loss.
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Liquidity and Capital in Western Pennsylvania
A Western Pennsylvania manufacturer of commercial windows employed 100 people and posted revenues of $12 million at the height of its operation. With the recent decline of the construction industry, the company lost 42% of its sales. SEWN negotiated a financing commitment with a new bank that took the existing lender out and provided enough working capital for survivability. More importantly, this financing option provided a back-stop that allowed the owner to negotiate from a stronger position when he decided to sell the company. The sale was successful, and with a strong financial and strategic partner, the facility remains open and a viable employer in the community.
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The Strategic Early Warning Network
Since its inception in 1993, the Strategic Early Warning Network (SEWN) had contributed to the retention and revival of close to 700 industrial enterprises within Pennsylvania, impacting more than 18,000 jobs. SEWN assists manufacturers throughout the state who are struggling to grow or to improve the competitiveness of their business. SEWN provides professional and confidential turnaround, financial, and investment services to small- and middle-market firms employing 25-500 workers through the following core services: Financial Restructuring, Operational Restructuring and Cost Management, Ownership Transition, High Performance Workplace Strategies, and New Market Opportunities. All of SEWN's services are provided at no cost to the manufacturer, and all information provided is handled in strict confidence.
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