Statistical Programs offered by AGMA

AGMA membership is a strategic investment. Doppler Gear stays up to date on gear technology, benchmarking and global networking.

Jim Bregi, Doppler Gear

Individualized Financial Performance Reports FREE to AGMA ORR Participants

Financial Benchmarking

According to an article in the Wall Street Journal, manufacturing output has bounced back much faster than consumer demand over the past two years. “The economy would be limping along, at best, without the strong manufacturing sector,” said Robert A. Dye, a senior economist at PNC Financial Services Group Inc. in Pittsburgh.

But what about gear manufacturers? Did they see growth in 2011?
The exhibit to the left shows AGMA members’ growth in recent years.
The lower exhibit shows the Typical AGMA member’s profit results for the past several years, the solid black line, and the High Profit AGMA member’s results, the dotted line.

Until the industry hit the buzz saw in 2009, profit improved at a steady pace. What always intrigues me is the High Profit group that is in the same industry, earning twice as much profit in good times and in bad. The High Profit group is the top ¼ of all AGMA members that participated in the ORR. If 1 in 4 companies in the industry can achieve those results, it is a reasonable, attainable goal for the other ¾ of the companies in the industry.

AGMA annually conducts the Operating Ratio Report (ORR). This report is a profitability or cost of doing business study of AGMA members designed to obtain, understand and analyze “best practices” in the gear manufacturing industry. It can help you improve your financial results by establishing “typical” financial performance targets and by analyzing how “high-profit” companies in the industry achieve their success.
By participating in the AGMA Operating Ratio Report you will receive a free copy of the industry Operating Ratio Report. In addition, you will now receive two individualized management tools.

Individualized Financial Performance Report
• Compares your company to the industry, to other companies in your line of business and to other gear manufacturers your size
• Provides management commentary to help you interpret the results
• Establishes a solid basis for working with lenders

Financial Toolkit computer program
• Microsoft® Excel® template with your data already loaded
• Provides “what-if” capabilities
• Establishes a basis for budgeting

What’s inside your Financial Performance Report…?
Executive Summary – The Executive Summary is a two-page overview of your key financial results. Areas of strength or weakness are easily identified on the
Performance Scorecard.

Detailed Results – The report also provides a detailed review of your results compared to the industry, to other companies in your line of business, and to other companies your size. The individual report is 17 pages and covers topics such as Return On Investment, Product Profile, Income Statement, Balance Sheet, Financial Ratios, Asset Productivity Ratios, Economic Value Added, Employee Productivity Ratios, and Trend Analysis.

How to participate — Please complete the Questionnaire for the 2011 AGMA Operating Ratio Report and email directly to the MacKay Research Group at .(JavaScript must be enabled to view this email address)

Participate in the AGMA Salary & Fringe Benefit Survey

Knowledge is power! The AGMA Salary & Fringe Benefit Survey is a comprehensive salary survey for non-factory employees in the gear industry and provides new insights into non-factory labor costs. Knowing how your company compares with the overall industry and with companies like yours is the first step towards financial success. Participation in the survey is only open to AGMA members and only participants receive the final report of information.

Wage and Benefit Survey

How old are the machinists in your factory?

Are they getting older or younger? How has the age distribution changed over the last 10-15 years?

One benefit AGMA offers members is data on wages and benefits for employees who work on the factory floor. In December, we collected that data for 2010.

In addition to data about wages paid for 28 job titles, apprentices, cell operators and other characteristics, we ask respondents to report on their work force by age distribution. We have asked the same questions for a number of years.

This graph details the distribution of workers by age group and because it is survey data, it may not match your experience exactly. But, overall, the trend is certain. The workforce in the gear industry is getting older. The share of workers who are over 55 has doubled since 1996 and those under 30 has dropped by just under half.

The data show the trend but not the reason. Machine tools are smarter so capital is being substituted for labor; younger workers may not be attracted to manufacturing; companies tried to hold the best and most experienced employees during the downturn.

More information on this Wage Report and other AGMA statistical reports provided for members is available on the AGMA website.

One way AGMA is helping companies respond to this shift is through our Strategic Resources Network that helps younger workers get more involved with the industry and with AGMA. The programming for next week’s SRN event, Materials and Manpower for the Future, specifically addresses this problem by bringing together top minds in workforce development. Complete details for this event are on the AGMA Website.

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AGMA is committed to help you compete more effectively in today’s domestic & global marketplace. One of the most useful sets of tools we provide is this set of business activity, financial and wage and salary surveys.

Using data from others in this industry, these benchmarking reports help you see where you stand in the industry. As a member of AGMA, you can participate in our Statistical, Marketing & Financial Data Programs – at no cost.

Only participating members of AGMA may participate and receive the reports.

Data you submit is confidential. The AGMA Statistical Council oversees these programs and guarantees confidentiality.
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The Monthly Market Trend Report (MMTR)

A knowledge consulting group collects the data and prepares the reports under the guidance of the AGMA Statistical Council. The reports provide a monthly summary of Industry Bookings and Shipments for several product groups.

The eight Product Groups are:

Coarse pitch gearing
Fine pitch gearing
Worm/Speed reducers & gearmotors
Concentric gearmotor/motoreducer products
Shaft mounted speed reducers
Offset parallel shaft and right angle speed reducers
Mechanical adjustable speed drives
Flexible couplings

The summary report includes:

Industry Bookings and Shipment chart for all product groups, as a dollar value and as an index
A graph comparing these indexes of Bookings and Shipments
A Market Trend Report listing industry bookings, a bookings index, industry shipments and a shipment index for all groups, enclosed gears and most of the product groups (exception, Mechanical Adjustable Speed Drives).
A graph comparing the combined shipments and bookings indexes for all product groups as a three (3) month moving average
The Enclosed Gears section (combining the totals for Worm/Speed Reducers & Gearmotors, Concentric Gearmotor/Motoreducer Products, Shaft Mounted Speed Reducers, High Speed Units, and Offset Parallel Shaft and Right Angle Speed Reducers) is graphed as a 3/12 and 12/12 comparison of index numbers.

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The Operating Ratio Report

Our consultant, John R. Mackay, Mackay Research Group conducts this financial benchmarking report under the guidance of the AGMA Statistical Council. Completed questionnaires go directly to Mackay Research; AGMA never sees the individual company data.

The published Operating Ratio Report is an aggregate of reported member financial data. The report gives you the management tools to analyze your business and is the perfect analytical tool for comparing your comapny’s performance with the industry. Additionally, it provides a gear industry database for economic and financial analyses. Sample pages from this report are below.

Download Sample Report (PDF file)
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The Wage & Benefit Survey

Management of labor and labor costs are essential to sucess in business. The Wage & Benefit Survey is a way to rate your competitiveness in the labor market. The report will provide information for labor contract negotiations and for guidance in developing better employee benefit plans to attract and retain employees. The Survey provides a weath of information about wages and benefits in the gear industry in clear, easy to read graphics and text.

View a sample survey (PDF).

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NEW – Non-Factory Employee Salary Survey

Under the guidance of the AGMA Statistical Council this report is prepared also by Mackay Research.

This new survey includes benchmarks for sales, technical management, and administrative staff salaries, 35 job titles. This data can help you benchmark your company versus similar companies for non-factory employee salaries. All reponses will be treated in the strictest confidence and only aggregates will be reported.

AGMA Statistical Programs are FREE to participating members. Take advantage of these valuable benchmarks and see where you stand in the industry.

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