MGPS

MGPS

October 03, 2007 10:50 ET

MGPS Says the High Dollar Doesn't Have to Mean Reduced Profit

TORONTO, ONTARIO--(Marketwire - Oct. 3, 2007) - While it's true that a high Canadian dollar relative to the American dollar will hurt Canadian exporters, either by having sales prices reduced or by having sales volumes reduced, Canadian importers see the just opposite. The cost of importing goods declines as the Canadian dollar rises. However, the savings are rarely passed on to the consumer which results in Canadians increasing their cross-border shopping.

Nevertheless, Canada is largely an exporting nation and the high dollar has negatively impacted many sectors including Industrial and Manufacturing industries, Agriculture, Automotive and Transportation, to name a few. Companies in these sectors have responded by cutting jobs and scaling back on production.

There are ways to reduce expenses without having to automatically resort to targeting labour and core products and services. Non-core expenses which comprise overhead, administrative and various indirect expenses are a great area to target as savings for organizations with annual revenues in excess of $100 million can be as much as 25% depending on the company and the industry. Non-core costs can range anywhere from 10% to 30% of a company's total expenses, so a 25% reduction in these areas can have a pronounced positive impact on both cash flow and the bottom line.

Now is the time to seriously consider reviewing and reducing these expenses.

About MGPS

MGPS is a management consulting firm with financial, operational and change management expertise. MGPS specializes in reducing non-core expenses. These expenses tend to be indirect, hidden and scattered throughout the organization. MGPS works with the client to identify hidden costs, to develop and implement efficient processes and to drive out unnecessary expenses. In addition, MGPS works with the client to ensure early adoption of any changes to the organization's expense management. The end result is increased cash flow and greater profitability.

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