Manufacturing company grows 400% and doubles workforce in four years, uses C2FO to control cash flow during rapid growth
Embassy Powdered Metals, which was founded in 1996 in Emporium, Pa., counts Leggett & Platt as one of its longest-tenured customers. For Leggett & Platt, Embassy produces latches and gears for adjusting chairs and other furniture.
“Leggett & Platt is one of our best customers,” said Aharrah. “They understand our business. It’s a great partnership.”
Ever since a new management and ownership team came on board, Embassy has been on an expansion fast track. It has grown from $4 million in sales six years ago to about $16 million today. Employment has nearly doubled to 96 workers, and the company in April completed its largest acquisition, buying a neighboring competitor. That deal not only added workers, but much-needed, but underutilized machinery and floor space to help drive further growth.
During this rapid growth, C2FO is the only such program the company uses to help control cash flow.
“We were not forced into this program by Leggett & Platt,” said Alan Ramsey, Embassy’s financial officer and an owner. “They merely suggested that it was an available tool. It’s easy to use, it’s easy to understand,” said Ramsey, Embassy’s financial officer, and one of the company’s four owners. “We’re in a huge growth spurt and cash is king,” he said. “This helps us manage our cash flow by receiving earlier payments on invoices.”
“I’d recommend C2FO for any company that wants to control its cash,” said Ramsey. “It’s easy to use, easy to understand, which makes me a happy guy. It gives me some flexibility in managing our growth, and it takes away some of the risk,” Ramsey adds.
- Manage cash flow during a time of rapid growth
- Need to invest in training and equipment while doubling workforce
- Fund acquisition of a competitor
Why we use C2FO:
- Managing cash flow during acquisition of a competitor
- Cash flow to invest in training, equipment, and larger workforce
- Ability to control cash flow reduces risk during rapid growth
- Easy-to-use and easy to understand program
“I’d recommend C2FO for any company that wants to control its cash. It’s easy to use, easy to understand, which makes me a happy guy. It gives me some flexibility in managing our growth, and it takes away some of the risk.”
— ALAN RAMSEY, CFO