And the survey says ...
IADD members from the die manufacturing sector continue to see growth, despite today's challenging economy.
While the nation's economy, as a whole, remains unsteady to say the least, diemakers reported a rebound out of the red for the second consecutive year, according to a jointly-developed survey by the International Association of Diecutting and Diemaking (IADD) and packagePRINTING. In fact, in the case of many die manufacturers, business continued to show significant growth in 2002.
All in the family
As this year's surveys were counted, it became quickly and abundantly clear that the majority of the diemaking operations polled are still relatively small, family-owned companies. Seventy-eight percent are family-run shops, with 45 percent of the shops employing 25 or less workers. The shops have been in the business an average of 22 years with an overwhelming majority (73 percent) reporting earnings in the $1 million-$10 million range.
Another constant revealed is that business continues to come in all shapes and sizes from a vast array of sources and end users. Only 18 percent report they have a small number of core accounts, and of that grouping a little less then half have accounts from the same end-use market.
Climate appears controlled
When pP last surveyed diemakers, the business outlook had reached a plateau in the months immediately after the 9/11 attacks. More than half of the respondents were holding steady and taking a "wait-and-see" approach. Twelve months later, 50 percent say that their business climate is growing, and another 32 percent have at least maintained their status quo. That explains why eighty-six percent believed the current economic conditions have no effect on in-house operations, and half report no ill effects on their company's marketing initiatives. Equipment purchases were effected in terms of a 45 percent increase in purchasing, but 45 percent reported no effect and only 10 percent were forced into budget cuts.