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Awc Inc Analysis

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The company that will be analyzed in this report is that of AWC Inc. AWC Inc., is an aluminum manufacturing company located in Southwestern Ontario. The company has been around since 1950, and was founded by Mr. Jim MacDonald, father of the current president Mr. Alex MacDonald. AWC specializes in the fabrication of aluminum windows, doors, storefronts, and curtain wall products. AWC has 100 committed staff with 45 in production, and
55 in the offices. The company is well known for the high quality of it�s products and their competitive prices. AWC Inc. is facing a decision regarding air treatment in the welding portion of the plant, as new government regulations are introduced to the industry. Currently there is a recession in the construction industry, and it is projected to last another three years. Buying the air cleaning equipment would devastate the companies profits and cash flows. Fines are ever-present, however highly unlikely. The air cleansing equipment is between $240,000 and $400,000.
SWOT analysis of the current issue
Strengths with respect to the current issue are.
- Quality design and competitive prices.
- Popularity of the new aluminum doors.
- Extremely committed employees.
- Experienced and family owned (since 1950).
- Not located where neighbors would complain ( near cement quarry).
Weaknesses of AWC Inc. with regard to the issue are.
- no current ventilation systems.
- Alex MacDonald has limited experience (1 year running company).
- Limited money to spend due to 3% profit margins on normal contracts.
- Contemplating costly second shift for welding line.
Opportunities for AWC Inc. too look at externally.
- AWC can earn up to 20% on specified contracts.
- Interest in commercial aluminum doors (high volume).
- free trade agreement with U.S. (tariff free contract opportunities).
- One third of it�s competitors are out of business.

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