Plant Expansion Models

Client: Ontario manufacturer deciding on whether to insource manufacturing

An Ontario midmarket manufacturer hired Sapling to determine whether to insource manufacturing, instead of using several third-party vendors around the world

3 Key Insights:

  • We developed a detailed financial model showing the relative benefits, including payback period, of insourcing relative to outsourcing
  • We noticed a Capex of approximately 1/2 annual revenues would generate substantial cost savings, resulting in a 1.5 year payback period
  • The company chose the insourcing model, obtained bank funding, and they have recently started production
Plant Expansion Models