Adapt or Die Surviving a Changing Market
Transcript of Adapt or Die Surviving a Changing Market
Adapt or Die – Surviving a Changing Market
2
3
Past 30 Years • Regulated – Set Generation Prices / Inventory Levels Don’t Matter / Price No Issue
/ Got to Have the Part… NO matter what it takes• Have never had to suffer through a major downturn or catastrophic event
except for TMI (more New Build Related)• No real consequence for being inefficient• Nuclear Renaissance
The New World • De-Regulated (or acting that way) – Open Market / Inventory Levels Matter /
Price an Issue / Maybe the part really isn’t needed (demand)• Electricity Demand Low / Cheap Natural Gas / Renewables • Consequence for being inefficient – Closure• The DNP • Death of Domestic New Build – International Expansion
4
Selling Less
Cutting Prices
Extending Terms
To Buy Less
Better
Terms
To Pay Less
Lower Prices
Lower Quality
Lower Service
Suppliers Exiting the Industry
Customer wants…
Suppliers are…
Result
My Background…… A lot of “Acute” and “Chronic” Change
⊲ Power Plant Mechanic Erie Plant 1979-85
⊲ Charter Boat Fishing Captain and Hunting Guide 1985-1991 Featured in Outdoor Life, Field & Stream and Sports Afield
⊲ President/CEO/Owner of AP Services 1987-2012 Started Nuclear Division in 1989
Five Time USA Supplier of the Year
⊲ GM of Nova/AP Services and VP Sales Curtiss Wright 2012-14 Nova turnaround and refocus on Domestic Fastener and RE Programs
⊲ President of ATC Nuclear 2014-2017 “Best-in-Class” 3rd Party CGD, Reverse Engineering and Supply Chain Programs
Doubled Sales in three years
⊲ Acquired ATC Nuclear on August 30th 2017 and now Paragon CEO
5
6
70’s – 1986
Lake Erie Salmon Fishing
“In early 1985 I quit my job to become a
full time Charter Captain. In late 1985
Pennsylvania announces they were
discontinuing their Salmon stocking
program”
1986 – 1993
Lake Ontario Salmon Fishing
“The Choice – Move my
operation to somewhere
with Salmon or shut down the
Business”
Doug VanTassell 1985
Joe Cinelli 1987
7
?
Acute and Chronic Market Changes
Steel Industry Collapse
Coal Plant Closures
WBN2
1980 1990
2005
2010Gas Fracking
WBN2 Ends
Focus on Power Gen
Programs aligned to support the future needs for the
industry
•Circuit Card and Power Supply Focus
•Repair Program
•Reverse Engineering in Analog – Nuclear Plants struggle with Digital
I&C
•Environmental Qualification
•Commercial Dedication
•Seismic Testing
•NRC and NUPIC Audited
CGD•Safety Related storage
• Investment Recovery
•Sourcing and Logistics
•$100M in stock
•Safety Related MRO Items
Inventory Management
9
Bad NUPIC Audit
Poor Culture
Declining Sales
Profit Going to Corporate
Stellar NUPIC Audit
Doubled Sales in two years
Profit Going to the Business
2014 2017
Step 1 – Develop a REAL Strategic Plan
⊲ Trends Market Demand
Technologies
Political
Nuclear Specific
⊲ Voice of the Customer What they want and why
How are we doing
⊲ Internal Assessment Operations, Sales, Industry Position, etc.…
Start with the Management Team
⊲ Competitive Analysis SWOT
10
Industry Trends
11
12
Nuclear Trends
Voice of the Customer…. Help me please achieve the DNP
13
14
Internal Assessment – STRAT Team (use Survey Monkey)
⊲ Operations
⊲ Systems
⊲ Teamwork
⊲ Culture
⊲ External Image
⊲ Internal Image
⊲ Pricing
⊲ Service Levels
⊲ Organizational Alignment
⊲ HR
15
Step 2 – Deep Financial Dive
⊲ Use new projections created in the plan as the basis for sales,
GM and profit
⊲ Create as much visibility as possible to each business line by
contribution (Sales, GP and indirect costs)
⊲ Review fixed costs as % of sales
⊲ Trend these indictors on a 3 year history and 3 year proforma
⊲ Act on the results
Increase or decrease in operating expenses based on growth or decline
Careful review of cash flow – Expected/Best Case/Worst Case
Be like a small business, even if you are part of a larger
conglomerate
16
17
Step 3 – Teamwork “Its all up Leadership”
18
19