Physical restructuring

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Manufacturing companies often refer to their manufacturing plant transfer, consolidation and closure activities as Physical Restructuring. Offshoring projects that began in the 1960s and have continued until present day have taken their toll on the current manufacturing base, and as the perfect storm continues to rage capacity will need to be further reduced.^{[citation needed]}

Plant closures take capacity out of the system. Chrysler begun to plan a wave of physical restructuring that will accelerate with the sale of the "good assets" to Fiat.^{[citation needed]} http://online.wsj.com/article/SB123845518896371451.html Wall Street Journal coverage]

Pfizer has executed numerous physical restructuring in the last few years as a direct result of changes in the drug pipeline and an outdated and inefficient manufacturing and distribution network.^{[citation needed]}

General Motors has also announced a large wave of physical restructuring associated with their June 1, 2009 bankruptcy filing. AlixPartners is leading the restructuring work at General motors.

While necessary within Bankruptcy to realign fixed costs to revenue, these types of projects are very difficult for the firms that execute them. Physical consulting projects often destroy share holder value, and need to be managed by experts.^{[citation needed]}

Key firms with physical restructuring practices include; PA Consulting Group, BCG, Bestshore Partners, AlixPartners and BOOZ and Company.