Everi Holdings, a prominent player in the gaming industry, has embarked on a strategic shift in its manufacturing operations. The company is set to discontinue its gaming machine production in Texas and establish a consolidated manufacturing facility in Las Vegas, Nevada. This move aims to enhance operational efficiency by centralizing the manufacturing, assembly, and distribution processes, while also aligning with Everi’s commitment to excellent customer service. The construction of the new facility is underway and is expected to be completed by October 2023.
Transitioning to a Unified Manufacturing Hub:
Everi Holdings has recognized the need to optimize its manufacturing operations to better serve its expanding casino customer base. To achieve this, the company is concentrating its efforts on constructing a cutting-edge facility in Las Vegas that will house all stages of the manufacturing process under one roof. This facility will accommodate the assembly of gaming machines, self-service cash access kiosks, loyalty kiosks, and other financial technology (FinTech) products.
Features of the New Facility:
The new facility, spanning an impressive 182,500 square feet, is poised to become the focal point of Everi’s manufacturing operations. In addition to manufacturing activities, the facility will also house laboratory facilities for both gaming and FinTech divisions. This co-location strategy is expected to foster collaboration and innovation across different facets of the business. Furthermore, the facility will serve as the base for service teams, customer installation teams, and administrative staff. With an eye on the future, the design also allows for potential expansion.
Employee Transition and Retention:
As part of this transition, Everi Holdings prioritizes the well-being of its workforce. The 35 employees impacted by the move from Austin to Las Vegas have been presented with opportunities to either relocate to the new facility or explore alternative positions within the company. This approach underscores Everi’s commitment to supporting its employees during this operational realignment.
Operational Efficiency and Sustainability:
Beyond its immediate benefits, the strategic shift aligns with Everi’s commitment to operational excellence. By streamlining its manufacturing processes, the company aims to achieve operational efficiencies that can translate into enhanced customer service throughout the product ordering process. Furthermore, the new facility is designed to meet the environmentally-conscious standards of 3 Green Globes certification, reflecting Everi’s dedication to sustainable practices.
Financial Considerations:
The transition to the new facility involves planned closure and exit costs, employee relocation and retention expenses, and other associated costs. Everi Holdings expects these costs to amount to $4.5 million in 2023. While this transition involves financial considerations, the potential long-term gains in efficiency and customer service are anticipated to outweigh these initial costs.
Everi Holdings’ strategic shift in manufacturing operations underscores its commitment to improving efficiency and customer service in the gaming industry. The consolidation of manufacturing, assembly, and distribution processes in the new Las Vegas facility is poised to create operational synergies, foster innovation, and uphold the company’s dedication to sustainability. This move not only reflects Everi’s adaptability and customer-centric approach but also positions it for sustained success in a rapidly evolving industry.