Maine Pointe in The Americas
The economic outlook for the USA is healthy, with experts forecasting steady growth in 2020 and beyond. GDP growth is forecast to remain between 2-3 per cent according to the Organization for Economic Cooperation and Development (OECD). Unemployment is predicted to grow at a natural rate and there is neither too much or too little inflation. Capital growth and higher exports are expected to result in faster growth in manufacturing than the rest of the economy.
However, this generally positive outlook is vulnerable to ongoing global trade tensions. The tariffs war between the US and China has continued to escalate in 2019, promised trade talks between the European Union and the US have not started and the United States – Canada – Mexico agreement (USMCA) has yet to be ratified. In the face of so much uncertainty, businesses leaders need to develop a robust strategy to mitigate against inevitable price increases and supply chain disruption.
The Canadian economy has regained momentum buoyed by rebounding exports and strong business investment. Growth is expected to recover to around 2.0% in the second half of 2019 and unemployment rates remain at a near-record low.
The main threat to growth comes from the imposition of tariffs and trade barriers. However, this risk is expected to be greatly reduced when Canada and the US join Mexico in ratifying the USMCA. Economic growth has slowed as households have adjusted consumption expenditure to moderating income growth and higher interest rates, and businesses have cut investment in response to greater global trade policy uncertainty.
Growth has fallen as a result of weak investment and reduced exports as US imports have slowed. Confidence has been further damaged by trade tensions and policy uncertainties. However, growth is expected to pick up slightly as a result of domestic demand. Disruptions in gasoline supply, strikes and railroad blockades affected supply chains at the beginning of 2019. Energy and food prices keep putting pressure on headline inflation, which is still above target. However, inflation expectations and core inflation, the central bank’s preferred measures, are already within the bank’s variability interval, although the latter is falling only slowly.
With a new era of global uncertainties and tensions upon us, the question here is: How prepared is your organization to respond to shifts in regional supply chain dynamics?
We can help
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