Impact Of Cost Reduction In The Profitability Trend Of A Manufacturing Industry (A Study Of First Aluminium Industry Nigeria Ltd Portharcourt, Rivers State)

ABSTRACT

This study is concerned with the impact of cost reduction in the profitability of a - manufacturing firm in Nigeria using First Aluminum Company Nigeria Ltd Port harcourt branch as a case study. Due to the rising complexity of downfall, instability, and non growth of so many' companies which usually results in winding up of these companies, this study is aimed at finding out how a company can increase its profits by reducing costs and if  it can affect the growth of these companies by solving the problems being faced. The objective of this study is to determine the relationship between effective cost reduction and profitability of Nigerian manufacturing firms. Based on the problems and objectives, hypothesis was formulated. Both primary and secondary data item used. Primary data was obtained from respondent through questionnaires while the secondary data as obtained from the company's financial statement. Simple regression was employed for statistical analysis. The study revealed that effective cost reduction measures can actually affect the growth of manufacturing industries positively. Recommendations were made on ways of ensuring effectiveness and efficiency of cost reduction techniques by providing necessary information on time and ensuring the proper monitoring of the implementation of these techniques which will help the company minimize its cost and increase its profits.