Pipe producer Advanced Drainage takes steps to deal with rising costs
November 23, 2018 By Catherine Kavanaugh
Corrugated pipe producer Advanced Drainage Systems closed a plant recently and raised prices Oct. 1 as part of a plan to offset higher transportation, labor and material costs.
Even though profit is up for the company, inflationary pressures are having an impact on business. Transportation and material costs have increased, in part due to Hurricane Irma disrupting the resin supply last year which led to higher prices. In response, ADS’s cost restructuring plan, which started in fiscal 2018 with the closure of three plants, will continue. The plan, which has no end date or estimate of expected cost savings, calls for closing underutilized manufacturing facilities, reducing headcount, optimizing product offerings and eliminating nonessential costs. | READ MORE
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