Office products and first aid products supplier Acme United is carrying out cost reduction and productivity measures as CEO Walter Johnsen looks to position the company for growth.
In response to the current macroeconomic challenges, Acme has implemented a series of cost reduction initiatives that are expected to generate over £4 million in savings in 2023. It has reduced SG&A expenses and other costs, and introduced a number of productivity improvements in its manufacturing and distribution facilities in the US.
“There are solid growth opportunities in 2023, including new first aid and medical placements in the industrial and retail markets, additional Westcott craft products in the mass and e-commerce markets, and expanded sales of Spill Magic to large mass market retailers,” stated Johnsen. “In addition, we recently purchased the promotional business of a former competitor of Safety Made.”
While the Acme CEO noted “substantial improvements” in the supply chain situation, including lower container fees and demurrage charges, he revealed the company had incurred exceptional supply chain expenses of £3.9 million since the start of 2022, with £1.1 million recognised in the third quarter. In Europe, revenue grew by 3% in local currency, mainly due to new customers in the office channel.