Following a year of financial analysis, Avery Dennison decided to close its Texas plant -- one of 12 in the U.S. -- and move operations to Mexico in order to reduce labor costs. Bustin & Co. was engaged to assist in the closing. Before moving forward with the closure, however, the firm conducted its own analysis. Three key questions were posed to Avery Dennison management. The answers changed the company's decision and produced a better financial outcome: a plant with higher operating costs than the Texas plant was closed, a program to lower operating costs by renegotiating economic incentives in each plant city was initiated, and nearly 200 Texans kept their jobs.
