RB&W Corporation is a leader in cold-forming technology and one of the largest producers of cold-formed parts in the U.S. RB&W’s industrial products and engineering expertise have provided a variety of industries worldwide with innovative and effective manufacturing solutions.
In recent years RB&W has struggled through the economic challenges facing the auto industy. Exacerbating its difficulites was the fact that at the time RB&W engaged Savills help, there were three years remaining on its lease—with escalating above-market rents. In addition, the existing premises housed heavy machinery that would entail high relocation costs. The challenge was to renegotiate and restructure the existing lease and reduce the rental rates while combatting the landlord’s perception of RB&W as a captive tenant with no real relocation options.
After a thorough evaluation of the lease, Savills found opportunities to reduce RB&W’s operating costs and reduce its net rents. It then embarked on a thorough negotation process that capitalized on the industry drivers relating to the financial and economic realities of the auto industry, and established financial terms that ensured that RB&W would not be the next of many companies to end production in Canada and move to lower-cost markets.
The Savills solution enabled RB&W to take control and reduce its spending on major components comprising its operating costs. In addition, Savills was able to restructure the net rents over RB&W’s remaining lease obligation and secure significantly reduced rates for the extended term. This has allowed RB&W to realize savings at a crucial time, restructure its business and come out stronger and more competitive while maintaining production in Canada.