Finance, Marketing &
do you stand?
the above questions.
How is your firm doing compared
to the state-of-the-art?
Where do you stand in the
What needs to change?
It's not magic, it's
Often we assume a benchmark analysis is
an engineering study. While a benchmark analysis can be approached
that way, it is more productive to let the financial results speak and
thereby direct any purely engineering studies.
The starting point to benchmark your company is the financial statements.
We operate in a mature industry in a market economy. Competition
shapes the financial appearance of every firm. For those willing
to listen, there are powerful messages that are revealed with a structured
financial analysis. We build that analysis around a mathematical
system that ties together all aspects of your firm. We call it Financial
The most valuable resource in your firm
is management time and attention. Financial Engineering
results let you find and set priorities based on the key leverage points
in your firm.
It's not magic, its mathematics.
click here for a Financial
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Margin Analysis Analysis
of sales margin is the most powerful tool to Benchmark your competitive
position and take action. Those actions will substantially improve
your competitive standing. Most producers participate in commodity
markets. Those bear a closer look based on margin and competitive
Return on investment The
starting point for Financial Engineering is to accurately measure your
return on investment. It is the most important benchmark. This
is what counts, beyond all else. We take into account both risk and
return; both return on total investment, and return on equity.
Sales margin is a component of return
on investment. Sales margin is made up of the profitability of individual
product lines and the cost components such as labor, materials, plant expense
and the like. Sales margin must be benchmarked against industry norms
and financial requirements. Typical action items in this area range
from new product lines to improved batching controls.
Asset management. This is the
other half of return on investment. Producers typically have attractive
opportunities here. Typical action items in this area are improved
inventory management and the creative challenge of high land values.
Margin by product line or market segment
product lines or market segments typically will fit into four classes.
There are several options for each class.
you are losing money on a product line, you need to take immediate action.
What are the barriers to action? Do you know the product lines on which
you are losing money?
lines with margins 0% - 5% sap your firm. You will find the return
on investment is terrible. This has to change. What action do you
take? Start by finding them.
High volume. Built to a precast spec. Workable margin. Cash Cows become
Bleeders without marketing management. Don't let that happen.
It is hard to turn a Bleeder back into a Cash Cow.
Typically compete with other building systems rather than precast, and
at good margin. They are out there, but you must find them and protect
What can Precast Consulting
New products. If there
was a new product in your marketplace that would fill your plant in a few
months, somebody would already be producing it. We have a 7-step
process to find new products and bring them to commercial significance.
Stars become Cash Cows that then become Bleeders. Some become losers.
What happens without a regular addition of new products?
Benchmarking margin analysis will both
show your competitive position and suggest the action steps.
Bid analysis can accurately determine
your competitors' cost. This provides take-action benchmarks.
Bring you structured methods to benchmark
your firm. - Know where you stand.
Apply Balanced Scorecard to your organization.
For more information, click here
Facilitate the process with your key managers.
Show what's worked elsewhere.
Improve your Return on Investment
Improve your profitability
Improve your bidding success ratio.
It's not magic, it's mathematics
for the Precast Industry