CASE STUDY

Embassy Powdered Metals case study

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.

Challenges:

  • 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

More stories from C2FO customers

REI

With C2FO, REI gives its vendors an attractive working capital option and paid back its one-year investment in less than seven months. REI is a national outdoor retailer on a… Read more

Ulta Beauty

With C2FO, Ulta Beauty strengthens vendor partnerships, eliminates manual discounting processes, and generates more income. Ulta Beauty is a U.S. beauty retailer with 700+ locations nationwide. Committed to providing consumers… Read more

Do it Best

With C2FO, Do it Best generates better returns on short-term cash, enabling the co-op to increase member rebates without adding headcount. Do it Best Corp. is the only U.S.-based, member-owned… Read more
All articles loaded
No more articles to load