Medical Device Company Requires Strategic Location to Expand Global Manufacturing Capacity

- Confidential Client - Medical Device Company

The Challenge
Challenged with limited available production capacity in existing operations, Executive Management was seeking to make an informed decision for where it should install incremental manufacturing production capacity to support global demand. The C&W Business Consulting team helped the company decide if the company should expand in, a) an existing location, b) low cost country platform, or c) tax advantaged platform.

Our Impact
Our Consulting team developed an approach, decision framework, and associated analytical tools to enable simultaneous consideration of multiple decision criteria considered important to answering the question above.

The team integrated sophisticated financial, operating, and risk models into a single decision support framework that provided visibility into the trade-offs associated with each option, including a:

a. Financial evaluation that measured cost of goods sold, operating expenses, conversion costs, run rate, before and after tax profit, payback period, and IRR

b. Non-economic evaluation that measured the ability to scale and sustain operations, appropriateness of supporting infrastructure, regulatory environment, schedule confidence, and degree of pioneering

c. Risk evaluation that measured political, financial, economic, IP, regulatory, operating, and disaster risk

The Outcome
The team was able to quantify and report the merits of each location option under investigation. Ultimately the tax advantaged, moderate operating cost location of Shannon, Ireland was selected as the location for the capacity expansion.

For more information contact:

Thomas Bomba
(212)841-5002
thomas.bomba@cushwake.com

Services:

Global Business Consulting

Real Estate Consulting

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