Profit growth – an exceptional success story
We helped this company achieve profit growth of over 600% within a 10 month period.
A business turnaround during challenging times.
When your business is struggling, it can often be hard to see, understand and appreciate just how many things are going wrong and, what priorities need to be established to turn the situation around. In this case study you will read about how we partnered with Adam Sanders from Pro-Powder to transform his Powder Coating business.
“I just couldn’t see why we were not making a profit!”
The problem: When Gibson’s met Adam, Pro Powder was operating close to capacity – an enviable situation for many manufacturing businesses however, in spite of the business achieving a $1.4M turn-over, its’ profits were struggling to reach the $20K mark; Adam was working to his absolute physical limits and struggling to keep the business afloat.
Winning work off the back of competitive pricing was impacting margins, jobs were taking too long and beginning to cost the business money. Production was struggling to maintain short-lead times and trying to find time to source targeted and more profitable work, whilst managing ongoing internal staff and process issues, meant both the business and Adam were both close to breaking point.
“I needed someone to guide me to make the right decisions – I needed a partner I could trust with my business.”
The Solution: Gibson’s were initially engaged to mentor and support Adam, to begin the process of change and find a resolution to the ongoing staffing challenges.
Adam welcomed and encouraged Gibson’s to assume the role of ‘owner’ for his business, granting full access to himself, his staff and business operations, including the authority to challenge both historical, current, and future decision making. Auditing and benchmarking both the human capital, financial and business data was a priority. Having gathered insights from early discovery sessions, staff engagement and a new, accurate set of financial data, Gibson’s were able to articulate where the business was eroding profits, where processes had to transform and, why they needed to build on workforce accountability to facilitate change and manage future growth.
Since Gibson’s engagement Adam has been able to make impactful and long-term changes to both staffing, manufacturing, and operational efficiencies across the business. Historically, in trying to spread himself across management decision making, employment issues, operational demands as well as business development pressures, Adam was unable to implement any effective strategies, delegate responsibilities and remain accountable for employment contracts, policies, procedures and recruitment of the right candidates to take the business from inertia to growth.
“I was worried more about customers not the businesses data and finances.”
Results: Having established a base from which to grow, Pro Powder has moved to significantly transform its’ business. Continuing its engagement with Gibson’s Consulting Adam, his team, and the business as a whole, remain open, accountable, and poised for yet more development and change.
With change, Adam has been able to step back, allow the Production Manager to do his job and manage the team; the business culture has shifted significantly, and all employees have gained a new level of confidence and certainty in both the business and its future.
Having segmented their markets and re-focused sales efforts, Pro Powder has won a number of lucrative, longer term contracts and is closer to reporting a profit growth of over 600% within a 10 month period – a remarkable turnaround.
There remains a determined focus on quality assurance, implementation of management systems and achieving certifications and accreditations to extend services into diverse sectors. Work continues in maximising shift patterns, increasing hours as well as operational efficiencies for the blast room and, the business has been able to finally invest and upgrade machinery for enhanced productivity.
The business and its brand have undergone a necessary refresh as it repositions itself in targeted markets. The business is working hard to concentrate marketing efforts, broaden its appeal across corporate sectors whilst optimising service delivery to its mining, oil and gas and service industry clientele.
Pro Powder’s biggest competitive advantage alongside outstanding quality and short lead-time, remains his 10 linear meter coating oven – one of the largest in Brisbane. Since moving to bigger premises a few years ago and with the business now standing on its own two feet, Pro Powder is now beginning to reap the rewards of these investments.