Many Pennsylvania manufacturers are experiencing a financial crisis where an immediate restructuring of their balance sheet is required in order to maintain viability and meet current obligations. Sometimes, an unbalanced or inappropriate capital structure itself is the problem. More often, such conditions are symptomatic of deeper, underlying problems that are market or operational in nature. SEWN has the experience and the expertise to identify restructuring needs and opportunities. We take a multi-disciplinary approach to working with Pennsylvania manufacturers in resolving these potentially catastrophic problems. SEWN seeks to stabilize immediate, "life-threatening" symptoms to buy the critical time needed to treat the underlying conditions vital to the company's long-term prognosis.
Cash is the lifeblood of any business. SEWN works with public and private creditors, investment bankers, investors, and legal counsel to remedy capital inadequacies and to create a positive, or at least neutral, cash-flow. Once the cash-flow is stabilized, we can take the time to properly assess and correct the actual problem. SEWN works closely with its partner companies to address cost-containment issues and to find creative ways of generating cash from internal operations and outside sources.
Many at-risk companies are not generating and utilizing financial and management information effectively. Often, senior managers received little warning of an impending crisis, as they had no precise way to capture and flag such warnings until the situation was critical. SEWN works management to evaluate the entire collection, control, and delivery system that a company utilizes to acquire its financial and management information. SEWN then works with management to prioritize and distill the large amounts of available information into concise, meaningful reports with which to control and benchmark the company's progress.
Many Pennsylvania companies fail to either maximize the effectiveness of existing operations or to systematically evaluate internal practices. Such operational inefficiencies often manifest themselves as financial difficulties. SEWN works with its partner companies to review operations and finances and offer practical solutions to the company's operational issues.
Increasing productivity and managing costs can be a simple matter of resolving issues at a single choke point in the production line, or it may require re-engineering the entire manufacturing process.
Over the years, SEWN staff and consultants have noticed the following trends:
Operational issues in manufacturing are often cross-disciplinary, involving marketing, sales, finance, and/or human resource issues in addition to production. For example, a problem with technical obsolescence requires access to capital markets, and, perhaps, a specialist to determine the most effective plant layout to accommodate the new technology. Chronic quality problems may require a move towards a High Performance Workplace model and a review of the materials procurement process.
SEWN works with all of the partner company's stakeholders to evaluate and identify key operating issues and related external interdependencies. SEWN staff and consultants function as a facilitator, and, at times, as a project manager. After working together to determine the company's needs, SEWN can provide referrals to the appropriate public or private resources. Working with its partner company, SEWN provides ongoing oversight to assure quality control and accountability of these resources.
Ownership Transition is a vital component of a manufacturer's overall business plan. The SEWN Program implements buyout and ownership transition services to Pennsylvania manufacturers, either in a time of crisis or as a planned event. Speed and time are important in these circumstances.
SEWN also maintains a network of financing and investment resources and specialists in various business and legal disciplines. Traditional management buyouts, employee ownership plans (ESOPs), and third-party sales are commonly used vehicles for effecting these transitions. SEWN works to maintain the continuity of employment and the business within Pennsylvania, and specializes in generational ownership transitions.
In today's competitive global economy, manufacturers that employ High Performance Workplace Strategies are more likely to succeed and grow. High Performance Workplace Strategies enable a business to implement new solutions for improving their productivity and competitiveness. High Performance Workplace Strategies depend upon the uninterrupted flow of acceptable information between workers and management, a solid decision-making structure, job skills cross-sharing, and workforce up-skilling and education.
In an effort to find new ways to compete effectively, many businesses face difficult decisions on a daily basis. Should the business be downsized? Should it adopt cellular manufacturing techniques? Should it seek wage concessions? Should it adopt progressive workplace practices? Should it utilize ISO 9000 production controls? Should it expand the role of the labor/management committee process in the operation of the business?
Whatever the proper course of action, both management and labor must take ownership of that action, generating and implementing new ideas jointly to create a sustainable process of organizational change.
SEWN works closely with management and labor to improve the productivity, culture, and profitability of a business. SEWN works with all parties to analyze the problems at hand, suggest new ideas, and implement the group's decisions. Two key principles critical for success are:
The long-term interests of the company and the long-term interests of the workforce are closely intertwined. SEWN is sensitive to the concerns of management and the workforce, and has extensive experience in facilitating open dialogue between them.
New Market Opportunities allow a business to remain viable, enhance a growing company's portfolio, and allow a struggling company to regain its market share.
With the expanding Green Energy market, many companies that manufacture products such as heating and cooling systems, cable, and tooled machine parts receive new life by positioning themselves as providers to the various Green Energy initiatives.
Occasionally, companies with a skilled workforce, modern equipment, and well-run operations are at risk due to sudden market changes. Such changes include the loss of a major customer to overseas competition. Changes may occur when an industry experiences a complete supply chain restructuring as happened in the automotive industry.
SEWN provides free or inexpensive access to sales and marketing assistance to develop tactics and strategies for diversifying markets and customers.
New Market Opportunities can take several forms:
