Here’s an industry benchmark to give flexible packaging converters a gauge on how profitable you are compared to peers. It is the FPA Operating Ratios Report, and it defines profitability in a number of ways including comparisons to sales, assets and company size. Historical data also lets you look at your profitability in the context of long-term trends.
The 2015 update is in process. By participating in the study, you get the final report, which is distributed only to those who contributed data. It will give those who receive it insights on profitability versus net sales, gross assets, company size, along with a number of “cuts” of the data. Some of them are:
- Net profit trends
- Net profit vs. sales broken down by size of company and by type of operations.
- Net profit vs. gross assets
- Profit and costs vs. direct material and labor costs
- Machinery and capital expenditure
The report’s historical trends are established benchmarks. Recent reports show a slow erosion of profits against both gross assets and net sales for survey respondents. That data gives you the opportunity to see how are you doing against an erosion of profitability.
How to Participate
Access to Data Tops Membership Benefits
Do you need access to data that is specific to the flexible packaging industry? Can data help your business planning efforts? Membership in Flexible Packaging Association can give you that kind of access.
FPA publishes—exclusively for members who participate in the programs—a series of data-driven reports. The Operating Ratios Report detailed in this issue is one of them. Others include wage and salary reports to help recruit and retain talented individuals. Information in reports like this provides executives with intelligence that helps them know how their businesses compare to others in the industry.
In addition to the benchmarking program, other focused data that comes with membership gives you, as a member, information that you can use to make strategic plans that encompass industry trends and directions.
Major reports only available to members include:
- State of the Industry Report: The definitive information source for anyone involved in converting, supplying, purchasing, tracking, reporting on, ?or investing in the flexible packaging industry.
- End Use Market Report: ?It identifies new growth markets.
- Reports on training and workplace issues.
Beyond the reports, FPA offers networking platforms, which help members share ideas and meet people who face many of the same challenges.
How to Learn More
To learn more about FPA membership, just email firstname.lastname@example.org. Or phone 410-694-0800.