finance

Dig in…

Whoever watches the wind will not plant; whoever looks at the clouds will not reap (Ecclesiastes 11:4).  We have a manufacturing client that we work for who has recently made the decision to lower his input costs (labour mostly) by moving the manufacturing of high volume products to Texas. The cost of producing a

product in Texas (including trucking) and bringing the finished work back to Alberta is significantly cheaper than manufacturing locally. Our client has decided to keep the custom and service work in Alberta which is higher margin work and send all the production work over the border.

The decision to consider moving production work to the US was not an easy one however our client had previous experience working over the border and was able to secure facilities in addition to a labour force that will stay busy in the coming year. After feeling confident that the economy is going to stay the same if not slightly improve in the coming year, our client made a business decision to expand and increase capacity.

A few months back we had completed a Business Diagnostic for his business which highlighted several areas that needed improvement and over the past months the business has improved resulting in their ability to not only consider an expansion but to feel confident in knowing what the result will be. Another example of planning before acting but not getting stuck in making a decision. Glad we could help them do more.

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