Manufacturing Consolidation Program Delivers $15.6M EBITDA Improvement
The Challenge
A private equity client engaged TriVista to conduct operational due diligence on the potential acquisition of a $180M electrical connector manufacturer and distributor operating six manufacturing and distribution facilities across the United States, Canada, and Mexico.
Following the diligence phase, TriVista was selected to develop and manage an 18-month operational consolidation and implementation program designed to improve EBITDA, optimize the manufacturing footprint, and reduce operational complexity across North America.
The engagement required balancing aggressive financial improvement targets with operational continuity, workforce transitions, facility expansion planning, and cross-border manufacturing execution.
Key Objectives
- Evaluate and select optimal locations in Mexico for expanded manufacturing operations
- Consolidate select US and Canadian operations into Mexico facilities
- Expand existing Mexico operations to support future-state production requirements
- Identify operational improvement opportunities to reduce risk and improve EBITDA
- Develop a comprehensive implementation roadmap with detailed execution governance
- Maintain customer service continuity throughout the consolidation process
The Approach
TriVista partnered closely with executive leadership and operational teams to design and execute a practical, financially aligned consolidation strategy.
Operational Assessment & Future-State Design
TriVista conducted on-site operational assessments across all six manufacturing and distribution locations in the United States, Canada, and Mexico to evaluate:
- Manufacturing capabilities
- Labor structures and utilization
- Operational costs
- Capacity constraints
- Logistics and freight considerations
- Organizational readiness
- Operational risk exposure
Using this analysis, TriVista developed multiple future-state operating scenarios and assessed the financial impact, implementation complexity, and operational risk profile associated with each option.
The selected strategy optimized production allocation, reduced overhead costs, and leveraged expanded manufacturing capabilities in Mexico to improve long-term operational efficiency and EBITDA performance.
Consolidation Planning & Execution Management
Following approval of the future-state strategy, TriVista developed a comprehensive implementation roadmap designed to manage every phase of the 18-month consolidation program.
The execution plan included:
- Detailed milestone planning and dependency management
- Workstream governance and accountability structures
- Resource allocation and ownership tracking
- Facility startup and expansion coordination
- Production transfer sequencing
- Risk mitigation planning through Transfer Failure Modes and Effects Analysis (TFMEA)
- Budget management and EBITDA impact tracking
TriVista facilitated weekly workstream management meetings to maintain critical path execution, monitor implementation progress, and resolve operational risks in real time.
Continuous Improvement Initiatives
In parallel with the consolidation effort, TriVista conducted continuous improvement assessments across multiple locations to identify additional operational efficiencies.
Improvement initiatives focused on:
- Labor productivity optimization
- Production planning efficiency
- Freight and logistics reduction
- Overhead cost consolidation
- Operational process standardization
These initiatives created incremental EBITDA improvements beyond the original consolidation objectives.
The Results
TriVista’s consolidation strategy and execution management program delivered significant operational and financial improvements across the organization.
Financial Impact
The program generated an estimated:
- $15.6M in annual EBITDA improvement through labor optimization, overhead consolidation, freight reduction, and operational efficiency gains
- $2.5M in savings versus implementation budget
- Successful management of approximately $22M in one-time investment requirements
Operational Outcomes
The consolidation initiative included:
- Expansion of the Matamoros, Mexico operation by approximately 100,000 square feet
- Launch of a new 180,000 square foot operation in Juarez, Mexico
- Consolidation of two US facilities and two Canadian facilities
- Hiring and training of more than 450 new employees in Mexico
- Relocation and rationalization of hundreds of operational assets across the manufacturing network
Execution Success
The consolidation program was completed on schedule and exceeded the projected EBITDA improvement target while maintaining operational continuity throughout the transition.
TriVista provided hands-on leadership across strategy development, implementation planning, governance management, risk mitigation, and execution support to help ensure a successful transformation outcome.
Key Results at a Glance
- $15.6M Annual EBITDA Improvement
- 18-Month Consolidation Program
- $2.5M Delivered Under Budget
- 6 North American Facilities Consolidated
- 450+ Employees Hired and Trained
- $22M One-Time Investment Managed