1999 Top Diemakers
Top diemakers push the $200 million sales envelope in the face of declining profit margins and projections for growth.
By David Luttenberger
Although the headlines herald a 7.2 percent increase to a record $193 million in sales during 1998, the top 25 diemakers' ledgers cry a different story.
On the surface, say die industry insiders, it was a good year. However, expectations of continued consolidation and potential or already-realized forced sell-offs of non-core business units are cause for concern among diemakers who, on average, posted net sales of nearly a half-million dollars more in 1998 than in '97. New Era Die, who was ranked fourth in 1998, dropped to 13th this year following the divesture of its rotary die manufacturing business. New Era President James LaBounty declined comment on issues specific to the move, other than to say that the sold business accounted for about 50 percent of New Era's total sales.
Compounded by such competitive measures as capital outlay for new technologies, startup costs for satellite manufacturing plants or distribution centers, and escalations in general operating and training costs, estimated '98 profit margins sunk 8.3 percent to 7.7 percent from 8.4 percent in 1997.
It appears some diemakers are undaunted by dips in margins, however, and are still prepared to spend to grow.
On average, annual growth projections were down 26 percent to 9.7 percent this past year. Conversely, on the high end, one diemaker projected up to 40 percent annual growth—60 percent higher than the overall industry high a year ago. Somewhat balancing the economies of scale, however, were two large diemakers who indicated "flat" growth. While confidentiality precludes naming those specific diemakers, it can be noted that both were in the top 10. Four diemakers, also among the 10 largest, said they expected "negative growth" in the coming year. The more aggressive projections all came from diemakers a bit farther down the list. All in all, it should be kept in perspective that 9.7 percent average growth in any industry is still considered very healthy.
Movin' on up
For the second consecutive year Container Graphics has come out on top as the largest diemaker in North America. There are, however, several new challengers.
Bernal International has moved into sole possession of the No. 3 spot. New products, R&D efforts and targeted marketing are beginning to produce some handsome returns according to Paul Madill, Bernal Int'l's president .
DieGraphics and Chicago Cutting Die are newcomers to the top 10 this year, coming in at No. 4 and No. 9, respectively. DieGraphics, along with No. 23 San Leandro, CA-based Nor Cal Design, are new to the survey.
Keen competition, more detailed reporting of sales and the previously mentioned sell-off pushed two former top 10 diemakers down a few notches, forced two 1998 ranked companies off the list, and prevented previously ranked companies from making the list of the elite 25.
Top 25 Diemakers
Rankings in pP's 9th Annual Top 25 Diemakers survey are based solely on annual sales of die manufacturing exclusively for the package printing or converting industries. Sales figures are provided in confidence by ranked companies. Participation in the survey is voluntary. pP does not estimate sales or include diemakers of any size who do not provide full financial and operating data.
Every effort is made to contact and include all diemakers in North America and to verify data.
1. Container Graphics
2. Atlas Die
3. Bernal Int'l
4. DieGraphics Group
5. Diebec
6. SouthEastern Die
7. Lasercut Group
8. DiTech Group
9. Chicago Cutting
10. Apple Steel Rule Die
11. AccuDie
12. Avis Roto-Die
13. New Era Die
14. Jonco Die
15. Converting Technology
16. Mathias Die
17. Carolina Steel Rule Die
18. Allied Gear & Machine
19. Action Rotary Die
20. Pacific West Coast Dies
21. Owosso Graphic Arts
22. Lasercam
23. NorCal Design
24. Stan-Allen
25. Dieknowlogist
- Places:
- North America
