The egg industry is one that has changed over the years from many smaller producers to one that is highly centralized and more specialized. Trade associations and industry groups have successfully campaigned to improve the image of the egg away from the high-cholesterol image that had struck a blow to the industry.
Unlike most of our clients, municipalities do not have to contend with brutal competition in the marketplace to survive. But that is not to say that they don’t have constant pressure on them to manage their costs.
North American retail companies spend approximately $20 billion on energy each year. A 10 percent reduction in energy costs for the average full-line discount retailer is equivalent to an increase in sales of $25 per square foot.
The private equity shareholders of a major North American long term care chain decided to bring in an investment bank to undertake a strategic review of the company’s operations. The choices included an outright sale, and that brought up the question of energy efficiency - given the relatively high prices for electricity and reduced government contribution in several of the jurisdictions.
Supermarkets operate in extremely competitive marketplaces, with an average profit margin of only 1%. It is estimated that North Americans spend some $550 billion on food in various store formats, but the competition for those dollars force all participants to continue to find ways to cut prices.