struttman consulting
Client Results
Reduce Costs
Expand Revenues and EBITDA
Grow Strategically
Expand Revenue and EBITDA


A mining contractor undertook an initiative to identify whether there was an opportunity to reset his company’s cost structure to become more competitive. Because pending CAPEX was unclear, the company was unable to pinpoint priorities for making improvements in operations. Additionally, a significant proportion of the company’s assets were unserviceable but not fully depreciated, which contributed to annual losses.

We performed a detailed equipment analysis to identify the most economical life cycle for each equipment type. For particular products, industry research confirmed a longer life was possible. With our research, we were able to negotiate enhanced service agreements to ensure that the maximum life cycle could be achieved while acceptable utilization levels were still maintained. The net result was a 10% reduction in operating costs and a 45% reduction in CAPEX.

Measuring equipment operating costs
Lack of a profitable disposal at the end of the equipment life cycle
Unable to create a competitive cost structure that would enable the company to win projects
Unable to support a mixed fleet due to high cost structure

Predictable capital budget due to a new acquisition and disposition plan for equipment
50% increase in haul truck life cycle
10% operating cost reduction by implementing a new centerline cost and service model for every product
95% risk reduction with operating cost guarantees
Established a predictable cost based on an engineered maintenance strategy
Put in place a methodology for tracking performance to ensure achievement of that cost monthly
45% reduction in CAPEX, $100 million savings
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