TriVista Brings Mexico Factory Startup Consulting Expertise to Private Equity Backed Automotive Company – Helps Deliver $6M EBITDA Savings

The Challenge

A private equity-backed manufacturer and supplier of automotive brake components sought to relocate several US production facilities to Mexico to combat rising labor costs and address their growing customer base in Central America. TriVista was retained to provide factory relocation and consolidation consulting expertise, helping the company conduct a detailed study to determine the feasibility of the project, and develop the detailed pro-forma P&L, cost savings analysis and detailed consolidation strategy.

Our Approach

• Collaborate with all stakeholders to determine ideal strategy for Mexico Plant Startup
• Interview functional leaders
• Analyze current operations to determine ease of relocation, tribal knowledge, etc.
• Identified potential sites in Mexico
• Conducted detailed labor availability and costs analysis
• Develop a detailed savings plan at steady state
• Develop communication plan & risk management, including compliance with U.S. WARN Act
• Created a high-level transition plan

The Results

• Validated $6M of EBITDA expansion opportunities at the target company by relocating operations to Mexico
• Proposed a brownfield facility out of more than 20 options across two cities in Mexico