Custom Wire Products Manufacturer’s Success Story
When a custom wire products manufacturer faced steep declines in sales and rising foreign competition, they turned to MATAAC for help. What followed was a powerful turnaround, fueled by strategic planning, federal funding, and expert support through the TAAF program.
Challenges
This Custom Wire Products Manufacturer of products that included baskets, racks, hooks, and screens for use in the medical, automotive and pharmaceuticals industries found itself horribly impacted by point-of-purchase display racks and foreign made baskets. Several of the manufacturer’s product lines completely vanished while others had serious reduction in production hours. The firm had difficulty in competing effectively in traditionally standardized markets ans saw its primary target market shift most of their orders to China.
This Custom Wire Products Manufacturer sought the assistance from MATAAC and their eligibility to participate in the TAAF program was established based upon:
- Sales in a specific product line, which represented over 25% of the firm’s overall sales, had decreased by 53.70% compared to the previous 24- month period..
- The firm experienced a partial separation of 33.18% of work hours on a specific production line as compared to the previous 24-month period.
- Imports from China had negatively impacted this firm.
Petition Certification as Trade Impacted Manufacturer was approved.
Solutions
With Petition Certification, MATAAC was able to prepare this Custom Wire Products Manufacturer’s Business Recovery Plan.
After working in partnership with the client-firm’s management team, a complete diagnostic review, SWOT analysis, and other key business improvement strategies were reviewed and a Business Recovery Plan was developed.
Technical assistance was requested and approved for Marketing, Sales, Production & Quality, Financial Controls, and Training projects. The client-firm received $150,000 of project implementation. MATAAC cost-shared $75,000 in federal funds in the implementation of identified improvement projects. Some of the projects implemented by the firm included:
- Customized ERP system,
- Search Engine Optimization (SEO)
- E-Commerce Upgrades
- Employee Training projects.
Success Story
With the assistance of the TAAF Program and MATAAC, this Custom Wire Products Manufacturer experienced the following improved performance metrics.
- Sale increased by $2.17 million dollars ( a 65.51% increase)
- Employment increased by an additional 3 positions (10.14% increase)
- Operating profits improved by 95.10%
How MATAAC Serves Mid-Atlantic Manufacturers
This exciting success story is just one of many examples of how a company successfully recovered and thrived through MATAAC’s expertise and funding support through the TAAF program.
For over five decades, MATAAC (MidAtlantic Trade Adjustment Assistance Center) has helped manufacturers tackle trade challenges, regain competitiveness, and boost profitability. MATAAC provides solutions to manufacturers located in Delaware, Maryland, Pennsylvania, Virginia, West Virginia, and Washington D.C. MATAAC has been chartered by the Economic Development Administration of the U.S. Department of Commerce with responsibility for the management of Trade Adjustment Assistance for Firms (TAAF) program. The TAAF program is a crucial resource that supports businesses in navigating global market shifts. With TAAF resources, MATAAC was able to help this manufacturer overcome trade challenges.