1. Case Study
Savings during recession lead to increased
profitability as economy improves
Midwest Acoust-A-Fiber uses 26% savings in waste management to
rehire workers
Company position stronger as business improves
As a Tier 1 supplier to the auto industry, Acoust-A-Fiber’s
volume dropped more than 50% in 2008-09. The manufacturer
found it necessary to lay off many of its 150 employees.
In 2010, Acoust-A-Fiber began rehiring its laid-off workers,
thanks to both improved business conditions and the cash it had
on hand from prudent reductions in overhead costs.
“Cost-cutting measures taken during the lean times are helping
26%
to generate increased profitability now,” said Skip Allan, Acoust-
A-Fiber President and CEO. “Volume sometimes hides those
problems, but after going through the recession, I think we’re
going to be more sensitive to that.”
ERA reduces charges and improves service Project Information
Having been through other downturns, Allan knew to avoid Expense: Waste Management
“random cutting.” Instead, he called upon the G&A cost-cutting
expertise of Expense Reduction Analysts (ERA). Industry: Manufacturing
Supplier: Incumbent
ERA Consultants identified ways to reduce expenses related to
the waste generated from Acoust-A-Fiber’s manufacturing Savings: 26%
process for acoustical and thermal composite products.
ERA experts negotiated significant reductions in collection
charges; reduced fees; eliminated some charges; capped annual
increases; and greatly improved customer service.
“The cost-cutting measures we took during lean times are
helping to generate increased profitability now.”
Skip Allan, President/COO
Midwest Acoust-A-Fiber