Given the significant pressures facing the building materials industry today, it has never been more important for manufacturers to improve cost positions relative to their competitors and have a strategy to achieve appropriate cost targets. Today’s economic uncertainty – and the additional pressure to improve profitability in order to survive the economic downturn – makes the goal of achieving a low-cost position critical to day-to-day operations.

L.E.K. Consulting has developed a proven cost benchmarking solution that is based on developing delivered cost supply curves for a specific market and modeling changes in:

  • Your supply
  • Your demand
  • Competitors’ initiatives to quantify production cost targets

Relative to traditional cost benchmarking, this approach leads to more effective decision making that increases profitability and also improves competitive advantage, capital allocation and pricing.

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