Case Study
Contract Manufacturer: Driving Growth & EBITDA
This Texas-based contract manufacturer serves diverse industrial clients. Operating in a saturated and price-competitive market, the company was backed by private equity and under increasing pressure to accelerate both top-line growth and EBITDA performance.
Challenge
The company faced a combination of internal inefficiencies and external market pressures:
- Growth Constraints: The manufacturer struggled to win new business in a crowded market of similar manufacturers, leading to stalled growth and shrinking margins. Offshore competitors in regions like Mexico and Southeast Asia further undercut pricing, making it difficult to compete.
- Operational Inefficiencies: The company lacked strong sales talent and a structured go-to-market strategy, making hiring efforts ineffective. Its CRM was underused, serving only as a reporting tool rather than driving growth or engagement.
- Strategic Misalignment: Sales performance was fundamentally misaligned with investor expectations. Generating only two new leads per month, paired with a 15% win rate and an average deal size of $30K, the company’s pipeline was too weak to support its growth goals. This gap between ambition and execution highlighted a pressing need for a more effective strategy to generate, convert, and scale high-value opportunities.
Solution
Craig Group implemented a phased, strategy-first transformation centered on focus, enablement, and scalability:
- Strategic Refocus: Craig Group prioritized defense and aerospace as high-margin, capability-aligned sectors. A clearly defined Ideal Customer Profile (ICP) helped the company focus sales efforts on prospects with the highest likelihood of conversion and long-term value.
- Marketing & Sales Infrastructure: They revamped the company’s value proposition and messaging to speak directly to buyer pain points at each stage of the customer journey. Targeted digital campaigns were deployed to attract more qualified inbound leads and improve marketing ROI.
- Sales Enablement & Process: The sales team was equipped with tailored materials and consistent qualification criteria to better engage right-fit prospects. The CRM was restructured to enable proactive pipeline management and real-time KPI tracking, while a new incentive model rewarded deals aligned with profitability and strategic targets.
Before & After Impact Assessment
| Metric | Before Craig Group | After Craig Group | Change |
|---|---|---|---|
| Monthly New Leads | 2 | 14 | ↑ 600% |
| Win Rate for New Business | 15% | 38% | ↑ 153% |
| Average Deal Size | $30,000 | $68,000 | ↑ 127% |
| Sales Focus | Reactive, unstructured | Targeted, data-driven | Strategic shift |
| CRM Use | Reporting only | Full-funnel sales tool | 360° adoption |
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Final Takeaway
This transformation illustrates a vital truth for lower middle market manufacturers: growth is not purely a function of headcount or pricing flexibility. Instead, it stems from strategic clarity and disciplined go-to-market (GTM) execution. Even in saturated, commoditized markets, a focused strategy paired with the right infrastructure can drive meaningful performance gains. This approach is especially relevant for private equity backed firms aiming to grow revenue and improve EBITDA, manufacturers competing on value rather than cost, and sales teams equipped with legacy tools but lacking the GTM precision needed for consistent success.