SCA Group Leads Manufacturing Business After Fallout from the Florida Real Estate Market

The SCA Group was hired by Hoover, a manufacturer of irrigation pumping systems, to rehabilitate their business after a decline in the local real estate market caused their sales to drop.

CASE DESCRIPTION.

A 30-year-old company leading its industry in the manufacture and service of irrigation pumping systems for large residential and commercial enterprises found itself struggling to maintain a viable business when the bottom fell out of Florida real estate. The SCA Group was called in to determine how to strengthen the service business while waiting for the residential and commercial construction markets to recover. At the time, they had two trucks and two service people, yet installations spread all over the state that the company was no longer in touch with. To combat this, the SCA staffed up the sales organization, hired additional technicians—and trained them as necessary—and branched to the West Coast and the North West sections of Florida.

Due to the inadequate ratio of service people to instillation’s, and the decline of the real estate market, the company was in dire need of help. On a recommendation from their previous accountant, the SCA expert was brought in by husband-and-wife founder as COO, tasked with fixing the following challenges.

  • The company was relying on a foreign entity to provide an automated programmable controller to monitor remote irrigation instillation using cellular protocol—it didn’t work, but there were no obvious substitutes on the market.
  • The company believed they could increase market share by convincing clients to monitor the state of the irrigation system by its pumping system using this technology.
  • The SCA expert had to get the owners to delegate to key managers without micromanagement
  • Get around the macroeconomic issues they face (the real estate decline)
  • A need to strengthen the technology already in place due to it’s failure to perform correctly
  • Form a management team that could to be left alone to do its job

Tab contentAfter three years as acting COO, The SCA expert was able to expand the company and save it from financial ruin. Involved in every decision along the way, he successfully did the following:

  • Kept the organization from failing
  • Grew revenues and reduced accounting costs
  • Hired a professional controller
  • Found a substitute for their current instillations
  • Refinanced the company’s bank debt successfully
  • Expanded the service organization dramatically
  • Created new revenue streams
  • Brought in professional sales people who could illicit service systems that needed the company’s skills

After the solutions were implemented, the service business was built and the SCA expert succeeded in getting the husband and the wife to work together—they even went on a vacation! Senior management learned to delegate and focus its interests on strategic development of the business and since then, the company has grown 2 times the original amount. They are now highly profitable across service and manufacturer lines.

CASE Details.

Company:

Hoover


Industry:

Irrigation Pumping Systems


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