The least disruptive way to expand capacity is to build another wing to the plant or lease additional office space. Fundamental shifts in population and industrial economies are emerging, however, which require a business to relocate in order to remain profitables and reach growing markets.
The best long-term solution, therefore, may be to take advantage of geographic differentials in operating costs and simultaneously reposition facilities to provide better customer service. DCG Corplan's mico-area analysis is a proven method for conducting detailed evaluations of geographic sub-sectors within a metropolitan region. The analysis measures local market strength, achieves maximum retention among present employees, identifies favorable new recruiting areas, and protects investments in real estate and leasehold improvements.
Stock price is the most visible measure of a company's performance. When consolidation of facilities is coupled with corresponding reduction in personnel and space needs, the result is higher earnings and an increase in shareholder value.
DCG Corplan's consolidation analysis evaluates the combination of two or more operations into a new business unit, at one of the existing facilities or at an alternative site. We can help you distinguish between co-location, where operating units share a facility and may also share in some common services, and a true consolidation where needless redundant overhead and real estate costs are eliminated in favor of a single operating entity within the corporation.
In our rapidly changing competitive environment, every successful company must reinvent itself regularly. Once a new strategy is implemented, however, the present configuration of facilities is flawed almost by definition, since it was created in response to an earlier and different strategy.
DCG Corplan can enhance your strategic planning with the addition of reconfiguration as a competitive strategy. Our objective review may disclose need for a significant shifts in production and distribution systems to capitalize on opportunities for cost reduction and increase market share. And by forecasting the economic life cycle of your physical facilities in terms of the rapid ranges in technology, our analysis may substantially alter skill requirements of your firm’s work force, space allocation, demands on the infrastructure, etc.
