Maine Pointe in The Americas
The economic outlook for the USA is healthy, with Gross Domestic Product (GDP) growth expected to rise between 2-3 percent each year for the next three years according to the Organization for Economic Cooperation and Development (OECD). Unemployment rates have continued to fall which, coupled with buoyant asset prices and strong consumer confidence, is sustaining income and consumption growth. Major tax reforms and supportive financial conditions are expected to boost business investment. A pick-up in the world economy is underpinning export growth and manufacturing is quickening.
However, this largely positive outlook is marred by tensions over how best to reduce barriers to trade. NAFTA renegotiations are ongoing and US steel and aluminum tariffs have sparked a tit-for-tat trade war. Prices are already spiraling upwards, talent is scarce and manufacturing order backlogs are at a 14-year high. Business leaders need to develop a strategy to protect themselves against these current and future risks.
Canada is expected to show solid growth, albeit slower than in 2017. GDP growth is forecast to slow to 1.9 percent in 2018, followed by 1.6 percent in 2019, compared to 3.0 percent in 2017 (OECD Economic Forecast May 2018). This is supported by heavier government spending, stronger oil and gas exports and a drop in unemployment.However, the continuation of NAFTA renegotiations (which are now expected to continue into next year), the impact of US trade tariffs and rising rates of inflation are all major concerns. With about two-thirds of Canada’s goods and services exports destined for the US, these factors place the supply chain in a precarious position.
Falling rates of unemployment, solid remittance inflows and easing inflationary pressures contributed to modest growth in the Mexican economy in Q1 after a lukewarm end to last year. Analysts have predicted growth of 2.2 percent in 2018, accelerating slightly to 2.3 percent in 2019.
This positive outlook is threatened by uncertainties in the final stages of NAFTA renegotiations, the tariff dispute with the US and global geopolitical uncertainty, all of which have contributed to financial market volatility. Key challenges include increasing productivity, improving the skills of the workforce, moving up global value chains, cutting back on regulatory obstacles and reducing corruption.
Having worked extensively across North and South America, Maine Pointe’s industry and practice specialists have a wealth of experience helping clients achieve accelerated, sustainable improvements in EBITDA, cash and growth across their procurement, logistics and operations functions. We have local experts in countries across the region with the cultural knowledge and industry expertise to break through functional silos and optimize the business through Total Value Optimization™.
What Maine Pointe achieves
Our engagement successes in The Americas include:
Working across four global divisions of a multibillion-dollar conglomerate (US, EU, UK, and Asia), we helped rapidly improve supply chain and operations capabilities and delivered $125M in EBITDA and $150M in cash across the organization > Read more
We helped an international mining firm improve performance across its operations in Canada, US, Mexico and Australia. The Management Operating System, maintenance processes and performance metrics we helped implement led to a 12% increase in productivity and reduced queuing and lost time by over 50% > Read more
- We helped the field logistics team at a $50B Canadian energy company cut costs and reduce carbon emissions in the aviation, lodging and ground transportation divisions with award-winning results. > Read more
After applying TVO across three corporations, both public and private equity owned, we generated $290M in EBITDA, $310M in cash and growth through improved customer responsiveness. Every company and CEO should consider implementing TVO." CEO, Specialty Chemicals
Based on the value Maine Pointe delivered through improving the operations in our Mesquite Mine in California, we agreed to work with them on a strategic procurement engagement involving all of our mines in Canada, the US, Mexico and Australia. Maine Pointe developed cross-functional teams, and worked closely with our personnel, to achieve sustainable savings across a broad spectrum of non-capital spend. Their approach in working with our people was key to our mutual success. The pragmatic approach of their team laid a solid foundation for ongoing improvements within our management organization." President and CEO, Mining Industry
Maine Pointe promised us industry experts and delivered. They promised us savings and delivered. They promised to leave us with a sustainable process that would continue to yield benefits years down and they delivered. All of this was done while maintaining and strengthening supplier relationships that we have had for more than 20 years. I have the highest regard for Maine Pointe and am happy to recommend them to any company.” CEO, Manufacturing