2018 Top Shops Benchmarking Survey: Electroplating Data Show Profit Correlations

Gardner Intelligence found a distinct relationship between profits and order lead time in the thousands of data points it reviewed.
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What a difference a day makes. If you are in the finishing industry, that difference can be about a 4 or 5 percent improvement in profitability related to order lead times
and training.

That’s one of the findings from the 2018 Products Finishing Top Shops Benchmarking Survey for the electroplating industry, which generated plenty of data designed to assist
shop owners and managers in increasing productivity and improving efficiencies.

This year, we asked our partners at Gardner Intelligence, which runs and scores the survey, to look for correlations in the statistical data they culled from the several hundred shops
that took part in the extensive survey.

Brian Palmer, the director of data science for Gardner Intelligence—which is owned by the parent company of Products Finishing—found a distinct correlation between profits and order lead time in the thousands of data points he reviewed.

“There is a 4 percent increase in profit margin per each day of decrease in order
lead time,” Palmer says.

Jan Schafer, Gardner’s director of market research, says employee training also correlated with higher profits in the 2018 benchmarking survey. Respondents could pick from annual training time options of less than one day (less than 8 hours), two days (8-20 hours), four days (21-40 hours), and six or more days (more than 40 hours).

“The statistics showed a 5.8 percent increase in profit margin for each increase of approximately two days training,” Schafer says.

Top Shops—those who finished in the top 80 percentile—also spent about 10 percent of their gross sales on capital equipment purchases in 2017, meaning they were reinvesting in their facilities; the other shops that responded to the survey spent far less of gross sales on capital equipment, at roughly 3 percent. The average capital spending against gross sales of all
shops was about 7.6 percent, up slightly from 2016.

Net income as a percent of gross sales—the basic profit margin—was 20 percent for Top Shops, a decrease from 25 percent in 2016. The same margin dropped slightly for non-Top Shops at just over 5 percent in 2017, a decrease from 6 percent in 2016. Other notable stats culled from the survey:

  • Largest customers: Almost 71 percent of shops’ active customers accounted for 80 percent of their business, with the median at 81 percent. The Top Shops group
  • averaged 87 percent.
  • Utilization: The average shop reported 15.2 hours of utilization per day, while the Top Shops were at 20 hours. The median was 16.0 hours.
  • Parts inspection: Top Shops averaged more than 270 hours per week inspecting parts, far more than the 34 hours spent by all other shops. The median of all shops
  • was 96 hours.
  • Analytical testing: The average shop spent roughly 46 hours per week in analytical testing of their finishes, with the median at 25 hours. Top Shops spent almost 80 hours
  • per week in this operation.
  • Hiring: In the last year, shops turned over 13.6 percent of their staff, while 20 percent of Top Shops’ staff turned over. The median was 11 percent.

2018 Products Finishing Top Shops

CRC Surface Technologies
James Burriss, President & CEO
Phoenix • chemresearchco.com

Coating Technologies
Robert Barrkman, Managing Partner
Phoenix • coatingtechnologiesllc.com

Perfection Industrial Finishing
Charles Zinke, President
Tucson • perfectionindustrialfinishing.com

All Metals Processing
Michael Coburn, CEO
Stanton • allmetalsprocessing.com

Embee Processing
Michael Coburn, CEO
Santa Ana • embee.com

Hixson Metal Finishing
Douglas Greene, President
Newport Beach • hmfgroup.com

Miramar Metal Processing
Marcos Cielak, President
San Diego • mmpus.com

Sheffield Platers
Mark Watkins, Vice President/Owner
San Diego • sheffieldplaters.com

Whyco Finishing Technologies
Nick Post, President
Thomaston • whyco.com

A.M. Metal Finishing
Rick Hunter, President
Orlando • ammetal.com

ElectroLab II
Lonnie & Buddy Harder, Vice Presidents
Oldsmar • electrolab2.com

Freedom Metal Finishing
Keith Eidschun, Owner
Clearwater • freedommetalfinishing.com

Seminole Metal Finishing
Elliott Blackwelder, President
Altamonte Springs • smfi.net

Armoloy of Illinois
Nolan Hannan & Jacob Meier, Owners
DeKalb • armoloy-il.com

J&M Plating
Mark Morris, CEO
Rockford • jmplating.com

Saporito Finishing
Jeff Logan, President
Cicero • saporitofinishing.com

AMF Technologies
Tom O’Mara, President
Rockland • amftechnologies.com

Daniel Atkinson, Executive Vice President
Westbrook • silvexinc.com

Cadillac Plating
Nick Salvati, Owner
Warren • cadillacplating.com

KC Jones Plating
Robert Burger, CEO
Warren • kcjplating.com

Marsh Plating
Matthew Marsh, President
Ypsilanti • marshplating.com

Master Finish
John Mulder, President
Grand Rapids • masterfinishco.com

Avtec Finishing/Nico Products
Peter Waldo, President/CEO
New Hope • thelindgrengroup.com

Rob Clark, President
Fridley • incertec.com

Twin City Plating
Ben Minger, President
Minneapolis • twincityplating.com

Steffen & Chris Wolkerstorfer, Co-Owners
New Brighton • wolkerstorfer.us

William Stock, Owner
St. Louis • microfinishco.com

Lincoln Industries
Marc LeBaron, CEO
Lincoln • lincolnindustries.com

Jim Stevenson, President/CEO
Syracuse • anoplate.com

Angela Stanley, CEO
Raleigh • surtronics.com

Electrolizing Corporation of Ohio
Greg Marn, General Manager
Cleveland • ecofohio.com

Hohman Plating
Brad Kremer, President
Dayton • hohmanplating.com

Luke Engineering & Manufacturing
Chris Jurey, President
Wadsworth • lukeeng.com

Lustrous Metal Coatings
Mike Paxos, President
Canton • lustrousmetal.com

Medina Plating
Tait Krejci, President
Medina • medinaplating.com

Plating Technology
Matt Raskin, General Manager
Dayton • platingtech.com

BFG Manufacturing Service
Jeffrey Grube, President
Punxsutawney • zincplating.com

Great Lakes Metal Finishing
David Wachter, General Manager
Erie • goglmf.com

Roy Metal Finishing
John Pazdan, President/CEO
Greenville • rmf-sc.com

Dave Timken, Plant Manager
Murfreesboro • paulo.com

Protech Metal Finishing
Mike Huddleston, CEO
Vonore • protechfinishing.com

Pilkington Metal Finishing
Van Pilkington, President
Salt Lake City • pilkingtonmetalfinishing.com

Advanced Metal Finishing
Dwayne Robinson, President
Roanoke • amfva.com

Acme Galvanizing
Edward Weiss, President
Milwaukee • acmegalv.com

Advanced Plating Technologies
Matt Lindstedt, President
Milwaukee • advancedplatingtech.com

Alan Henry, President
Franklin • chrometech.net

Green Bay Anodizing
Charles Dunham, President
Green Bay • gbanodizinginc.com

Oshkosh Plating Technologies
Aaron Johnson, President
Oshkosh • oshkoshplating.com

Pioneer Metal Finishing
Scott Turner, Vice President
Green Bay • pioneermeal.com

Professional Plating
Larry Dietz, General Manager
Brillion • proplating.com

Reliable Plating Works/Elite Finishing
Jaime Maliszewski, President/CEO
Milwaukee • rpwinc.net

Active Metal Finishing
Allan Phillips, President
Toronto • activemetalfinishing.com

TNM Anodizing and Paint Inc.
Michel Martel, General Manager
Pointe Claire • tnminc.ca

Zuraw Technologies
Michael Zuraw, President
Georgetown • zurawtech.ca

Renato Villasenor, Director
Queretaro • galnik.com

Recubrimientos Metálicos de México
Carlos Cielak, CEO
Mexico City • recubrimientosmetalicos.com