The  100-year-old Company is a full-service forging manufacturer dedicated to the production of steel forged components, with extensive expertise in forging-related engineered services.

Industries served include construction equipment, farm equipment, on/off highway truck, power transmission, military, railroad, oil & gas, industrial power equipment, and Tier 1 machine shops.

The Company suffered significant losses two years in a row as a result of being burdened with two highly compensated unions; an overhead cost structure that was the highest in the industry, outdated equipment, a 40% sales decline due to industry conditions, and a management team that lacked focus.

Fort Dearborn Partners was engaged by the Board of Directors, to return the Company to profitability, and develop a plan to position the Company to regain its competitiveness.

The plan included the following key elements essential to returning the Company to sustainable profitability:

–$7 million of expense reductions,

–Restructuring the management team,

–Re-engineering processes to be more customer focused,

–Implementation of cost controls,

–Renegotiating the union agreement for wage and benefit reductions and work-rule changes that facilitated improved operating efficiencies

The primary union ratified a new contract, which included significant wage and benefit reductions as well as numerous work rule changes to increase efficiency.

The Company returned to profitability in its first full month after completing implementation of our plan, including $7 million of expense reductions.

The restructured management team focused the Company on competitiveness through customer-focused engineering changes and overall cost controls.