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Positioning Aerospace Electronics Businesses For Precision and Profitability
Background:
An aerospace electronics manufacturer and assembler engaged Crossover Solutions to support the outsourcing of its internal machine shop. The initiative aimed to sharpen focus on core competencies, increase operational efficiency, and enhance profitability.Critical Issues:
- Growing capability and capacity needs required a more focused strategic approach.
- Internal gaps in identifying third-party partners able to meet quality and capacity demands.
Results:
- Outsourced machining drove significant cost savings.
- Reduced headcount by 40, enabling more efficient operations.
- Lower capital expenditures by eliminating unnecessary equipment.
- Removed hazardous chemical processes from production.
- Repurposed manufacturing space for core activities, improving efficiency and profitability.
By applying Crossover Solutions' structured approach — beginning with operational assessments, identifying and reviewing attractive suppliers and the removal and sale of dispensable equipment, we were able to position our client to become experts in their field, improving their efficiency and profitability.
By the Numbers
30% Savings
in costs associated with machining requirements
$1.4M Reduction
in capital equipment expendtitures
5,500 sq. ft.
Repurposed capacity to support core capabilities