The CFO'S Perspective

CAMPS Recognizes Achievements in Manufacturing - We Were There

On November 15, 2018 CAMPS (Center for Advanced Manufacturing Puget Sound) celebrated the successes and achievements in manufacturing in the Puget Sound region.  Regence, Capital Benefit Services and Shannon & Associates sponsored the fabulous event. The emcee for the evening was Randy Gardiner, President of CAMPS Board of Directors.

Members of the CFO Selections team were in attendance. We were again impressed by the character and expertise of the attendees and those recognized with awards (both past and present). CAMPS continues to stand out as a valuable organization we recommend.

This is an important event because it recognizes companies and people who are remarkable and often go unnoticed. Their commitment is not a headline in a tweet or newsfeed. 

Topics: Events Awards Manufacturing

Low Profit Margins – The Perils and Potential in Manufacturing

As a CFO, one of the common reasons I am brought into a manufacturing organization is to solve the mystery of “Why our sales are growing, but profits low?”  Most of the companies I work with have rigorous quoting processes that they assume will protect them financially, but in the end their actual monthly profit margins often fall short of quoted (and anticipated) profit margins.

Before diving into an examination why profit margins lag behind sales growth projections it is important to take a look at accompanying financial reports. These are categories from a simplified manufacturing income statement:

In this article we will discuss materials, direct labor and manufacturing overhead as they relate to gross profit.

Topics: Analysis Budgeting Manufacturing Profit Margin