Manufacturing companies often refer to their manufacturing plant transfer, consolidation and closure activities as physical restructuring. This can be done by moving production or services overseas, a process known as
offshoring
Offshoring is the relocation of a business process from one country to another—typically an operational process, such as manufacturing, or supporting processes, such as accounting. Usually this refers to a company business, although state gover ...
. Such projects began in the United States during the 1960s and by 2009 showed little sign of having ended. Such corporate behavior has taken its toll on the manufacturing base and continues to do so.
Chrysler
FCA US, LLC, Trade name, doing business as Stellantis North America and known historically as Chrysler ( ), is one of the "Big Three (automobile manufacturers), Big Three" automobile manufacturers in the United States, headquartered in Auburn H ...
planned a phase of physical restructuring with the sale of its "good assets" to Fiat in 2009.
Wall Street Journal
/ref> Pfizer
Pfizer Inc. ( ) is an American Multinational corporation, multinational Pharmaceutical industry, pharmaceutical and biotechnology corporation headquartered at The Spiral (New York City), The Spiral in Manhattan, New York City. Founded in 184 ...
has executed numerous physical restructuring programs in the years prior to 2009, as a direct result of changes in the drug pipeline and an outdated and inefficient manufacturing and distribution network. General Motors
General Motors Company (GM) is an American Multinational corporation, multinational Automotive industry, automotive manufacturing company headquartered in Detroit, Michigan, United States. The company is most known for owning and manufacturing f ...
announced a large wave of physical restructuring associated with their June 2009 bankruptcy filing.
While the sell-off of assets is necessary in cases of bankruptcy, the costs associated with physical restructuring need to be managed by experts. Firms able to advise and oversee a program of physical restructuring include; PA Consulting Group
PA Consulting Group (formerly Personnel Administration) is a professional services firm that works with public, private and third-sector organisations. It was founded in 1943 by Ernest E. Butten, Tom H. Kirkham and Dr David Seymour, who used a ...
, Boston Consulting Group
Boston Consulting Group, Inc. (BCG) is an American global management consulting firm founded in 1963 and headquartered in Boston, Massachusetts. It is one of the "Big Three (management consultancies), Big Three" (or MBB, the world's three large ...
, Bestshore Partners, AlixPartners and BOOZ and Company.
Notes
Business terms
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