Pipe Manufacturer

Phoenix is engaged by one of the largest manufacturers of extruded pipes to validate its growth forecast to support an increase in its line of credit.

The Client

Phoenix’s client is one of the largest manufacturers of extruded pipe in North America with approximately $150 million in revenue derived from two plants.

The Challenge

The Company’s performance had been declining for over a period of years, exhibiting diminished earnings, exacerbated by covenant violations, and a loss of confidence by the senior lender. The Company relocated one of its plants a few years earlier to increase capacity and capability which was a significant contributor to its poor results. In particular, scrap rates had elevated to abnormal levels as the Company struggled with the new facility, new capabilities, and increased employee turnover. In conjunction with these operational challenges, the Company was experiencing constrained liquidity and difficulties managing its borrowing base availability.

The Solution

Phoenix was hired by the Company to perform an operational assessment with particular focus on the challenges and poor performance in the new location to review the liquidity and cash management processes. Using the Company’s operational data, Phoenix was able to provide insight into the operational challenges, confirm the windows of poor performance, and identify the recent progress the Company was making in addressing the root cause issues. Further, Phoenix provided a series of recommendations across both operations and finance that would both improve performance and allow continued monitoring of progress. This information was useful in regaining the confidence of the lender, and also for the company to refocus its efforts in using data-driven approaches to address performance gaps. The Company continued on a path to recovery and a restored lending relationship.

Phoenix Growth

Primary Industry

  • Manufacturing

Secondary Industry

  • General Building Construction

    Primary Services

  • Business / Operational Assessments