For the past five years Gardner Business Media, has annually surveyed CNC machine shops to find out how the top performers get that way. The 2015 study participants break down this way: 46% are independent job shops performing short run and non-repeating work; 38% are shops that have contracts for repeating work; and 16% are captive shops of larger manufacturers.
The results, based on 277 completed surveys, show a significant difference between the top performers and the others:
- Top shops grew their business by 17.5% vs. 7% for all others
- Profit margins were 13.5% vs. 8%
- Sales per CNC machine: $277,000 vs. $123,864
- Median spindle utilization is 75% for top shops vs. 65%
The survey findings indicate that there are several reasons why some shops did noticeably better than others. These include creating a culture of constant improvement, engaging employees in this process and investing in new and better equipment.
- 54% of top shops use turn-mill multitasking machines vs. 27% for other shops.
- Top shops use more HMCs than VMCs.
- 62% of leading shops employ continuous improvement vs. 46% of others.
- Although there is little difference in base pay between top shops and all others, 71% of top shops have bonus plans vs. 30% of other shops; 75% of the higher performing shops provide paid medical benefits vs. 43%; and 90% of the more successful shops have annual performance reviews and pay raise programs vs. 48%.
- Top shops also are more likely to use advanced software, quick-change workholding devices, high-pressure coolant and one-and-done processes.
There’s much more in the Gardner Top Shops report that can help you determine how to improve your CNC shop business. Your Torrance Haas Factory Outlet can also help you find the best CNC machines and accessories to make yours a Top Shop in 2016. To learn more simply call (310) 381-0750, email: jphillips@haasfactoryoutlet.com, or visit www.haasfactoryoutlet.com.