Escape the Margin Death Spiral: Protect Manufacturing Revenue & Profit

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For companies with significant investments in plant and equipment, managing the balance between driving margin vs. securing the volumes needed to maintain favorable operating economics can feel like walking on a knife edge. Too much emphasis on margin over volume can lead to poor plant utilization. This forces tough decisions such as whether to shutter capacity. Too much emphasis on volume can lead to disastrous price wars and lost profits. Either approach results in underperformance on key financial measures such as return on capital employed and can destroy shareholder value.

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