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This international contractor is back in shape

You can be a winner when times are difficult

The crisis is not over yet, but you can still be a winner, even now. Our success stories show how effective our integrated approach is: many companies are now in much better shape. You too can benefit from our knowledge and experience. Together we will soon get you back in shape, by tackling your cost structure for instance.

The situation
An international contracting company anticipates fewer orders eventually leading to reduced business volume due to the global recession. The company is aware of the importance of rationalising equipment and support services in order to be able to adapt well to the new circumstances.

The approach
The company has embarked on a global project with Deloitte to analyse all of its equipment, amounting to hundreds of items. Equipment that is not making a positive contribution to operating profit and which has no strategic value is disposed of. In tandem with this process, central and local entities and organisations are being examined. The growth in size of support services is being analysed. If the recession does indeed have a major impact on business volume, these services could also be rationalised.

The challenge is that equipment all over the world is involved in the analysis. Decreasing business volume impacts the whole of the business and is not confined to direct costs.

The result
This project is strategically important to the company. The management can identify short-term overcapacity and this will produce annual savings of €20 to €30 million. In the medium term they have a detailed view of possible actions that might be taken if they become necessary. This company is ready to succeed again.

You can be a winner when times are difficult. Contact Oscar Snijders or Stefan de Kruijf.

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Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see deloitte.nl/about for a more detailed description of DTTL and its member firms.

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