Profit Leaks Are Killing Your Growth—How These Manufacturers Stopped Losing Millions
Why Scaling Doesn’t Always Mean Higher Profits for Manufacturers
Manufacturing CEOs and CFOs often assume that more revenue = more profit. But too often, that’s not the case.
If you’re experiencing cash flow surprises, inconsistent margins, or increasing operational costs, chances are you’re leaking millions in inefficiencies—without realizing it.
Fact: Manufacturers lose up to 25% of revenue due to inefficient processes, outdated systems, and slow financial visibility.
At Elliott Clark Consulting, we’ve seen manufacturers of all sizes struggle with this—until they fixed the root issues. Here’s how three companies (from $5M to $30M in revenue) reclaimed lost profits, freed up cash flow, and scaled profitably.
Case Study #1: The $5M Manufacturer That Found $320K by Stopping Profit Leaks
Eric, the CEO of a specialty metal fabrication shop ($5.2M revenue), thought their pricing model was solid. Sales were growing—but they were constantly cash-strapped.
Hidden Profit Leaks:
❌Jobs were priced using outdated cost assumptions, eating into margins.
❌Production inefficiencies led to rush fees and overtime costs.
❌Invoicing delays meant payments were always late.
What Changed?
After attending one of our Profitability & Process Workshops, Eric and his CFO:
✅Fixed their job costing and production workflow.
✅Streamlined the Order to Cash process so that no invoicing was delayed.
Eric chose the Top Business Challenges workshop and then chose Microsoft Dynamics 365 Business Central to go even further. Their implementation is currently in progress.
The result? A 7% margin improvement, unlocking $320K in additional profit.
💬 “We thought we had a revenue problem, but we really had a process problem. Fixing that changed everything.”
Case Study #2: The $17M Manufacturer That Increased Margins by 8%
Jessica, CFO of an industrial equipment manufacturer ($17.4M revenue), knew something wasn’t adding up.
✔ They were landing bigger contracts.
✔ Sales were growing year over year.
✔ But their bottom line barely moved.
Hidden Profit Leaks:
❌ The sales team wasn’t pricing profitably—too many underpriced deals.
❌ Inventory mismanagement tied up $750K in working capital.
❌ Lack of financial visibility made it impossible to track profit in real-time.
What Changed?
After attending one of our Profitability and Process Workshop, they implemented:
✅ Strategic pricing adjustments—ensuring profitable sales.
✅ Demand-driven inventory planning—reducing tied-up capital.
✅ Real-time financial reporting—for smarter, faster decisions.
Jessica chose our Full Business Optimization Workshop. She's working on the next steps.
The result? Margins jumped from 2% to 10%, adding $1.3M in profit.
💬 “We stopped chasing revenue and started optimizing for profit. That’s what changed everything.”
Case Study #3: The $30M Manufacturer That Freed Up $3.5M in Cash Flow
Tom, CEO of a custom plastics manufacturer ($30M revenue), thought their biggest issue was keeping up with demand. But despite full capacity, they were constantly short on cash.
Hidden Profit Leaks:
❌Billing delays meant AR stretched past 70 days.
❌Overproduction tied up millions in excess materials.
❌Poor scheduling forced costly overtime labor.
What Changed?
After streamlining financial and production processes, they:
✅ Shortened AR from 70+ days to 45, improving cash flow by millions.
✅ Freed up $2M in working capital by reducing overproduction.
✅ Cut overtime costs by 40%, improving net profitability.
Tom chose our Urgent Issue Workshop and then proceeded with the Full Business Process Optimization Workshop. Their systems were able to handle the process changes at this time.
The Result? They freed up $3.5M—without increasing sales.
💬 “We thought cash flow problems were just normal for manufacturing. Turns out, they’re fixable.”
What’s Draining Your Profits?
If your manufacturing company is struggling with:
❌ Unpredictable cash flow
❌ Shrinking margins despite growing revenue
❌ Inefficiencies that slow down operations
If any of this is familiar, you likely have manufacturing profit leaks. It’s time to take action.
At Elliott Clark Consulting, we specialize in helping small manufacturers just like you stop their profit leaks.
Step 1: Download The CEO’s Playbook for Scaling Profitability. This guide walks you through how to identify and fix the biggest profit leaks in your business.
Step 2: Join one of our Profitability & Process Workshops. We’ll help you pinpoint your most costly inefficiencies and build a roadmap to higher profits.
Don’t let profit leaks kill your growth. Let’s fix them.
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