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    Home ยป Carclo Anticipates Short-Term Challenges in the U.S. Market
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    Carclo Anticipates Short-Term Challenges in the U.S. Market

    August 30, 20232 Mins Read
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    By Anthony O. Goriainoff

    Carclo, a leading manufacturer of moulded plastic parts, has encountered some setbacks in a significant project with a major customer in its CTP U.S. manufacturing-solutions business. These delays, coupled with a softer demand at the start of the year as customers destock, have posed challenges for the company.

    Operating in a tight labor market in the U.S., Carclo has faced operational difficulties across all its facilities. Despite these obstacles, the company remains optimistic about its future trajectory. Carclo assures stakeholders that their proactive approach will enable them to address short-term challenges without compromising their long-term vision.

    In contrast to the challenges faced by its U.S. operations, Carclo’s CTP design and engineering business has showcased remarkable resilience and growth, exceeding sales expectations thus far. The company also reports a robust order book. Additionally, its CTP EMEA manufacturing-solutions business has emerged stronger following a restructuring period. Furthermore, Carclo’s aerospace division is experiencing a notable resurgence, with signs indicating a market rebound to its pre-pandemic vibrancy.

    From a financial standpoint, Carclo has decided to shift its focus towards cash conversion and margin improvement rather than just sales growth. This strategic decision is already reflecting positively on the company’s balance sheet.

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