Issue link: http://mmstopshopsexecsummary.epubxp.com/i/552707
Executive Summary 14 2015 TOP SHOPS EXECUTIVE SUMMARY mmsonline.com/topshops BUSINESS STRATEGY & PERFORMANCE There are a few metrics that highlight the extent to which this year's Top Shops are more effective overall businesses with higher proft margins compared to the other surveyed shops. A couple relate to sales produced by a shop's two primary assets. The median sales per CNC machine for Top Shops is $277,000 com- pared to $123,900 for other shops (average values are $763,900 and $516,900, respectively). The median sales per employee is $185,000 for Top Shops and $112,300 for other shops (average values are $212,300 and $115,900, respectively). The Top Shops also invest more in capital equipment as a per- centage of gross sales at 9.5 percent compared to 3.5 percent for other shops. In 2014, the median amount Top Shops spent on capital equipment was $190,000 and the average was more than $745,000. For other shops, those values were $48,000 and $449,000, respectively. Key Performance Indicator—The biggest indicator of business health is proft margin. Top Shops report a median proft margin of 13.5 percent compared to 8 percent for other shops. Top Shops are growing at a faster pace, too. The median growth rate from 2013 to 2014 for them was 17.5 percent compared to 7 percent for other shops. Top Practice—This year, 46 percent of Top Shops said they offer design for manufacturability (DFM) engineering services to cus- tomers to refne product designs to simplify machining and lower production costs (compared to 27 percent of other shops). The key for leveraging this is to grow a relationship with the customer so shops can provide DFM input early in the product develop- ment cycle. Trend—Every Top Shops benchmarking survey has asked about the use of social media (Facebook, Twitter, LinkedIn) as a sales/ marketing tool. The benchmarking group has consistently been more apt to use social media than the other surveyed shops, and that percentage has increased by nearly four times since our frst survey from approximately 11 percent to more than 40 percent (see table below). Business Strategies: Social Media for Sales/Marketing 60% 50% 40% 30% 20% 10% 0 2012 22.6% 2013 33.3% 2014 40.4% 15% 2011 2010 10.8%