Turnover in factory positions tends to be higher than for office employees. Many employees are willing to regularly look for opportunities that offer better pay or more favorable conditions than their current place of employment. “PCNA’s investment in training and compensation enables us to retain experienced and talented decorators,” says Neil Ringel, CEO at PCNA – ranked the No. 3 supplier in the 2024 PPAI 100. “Our commitment to workforce development has helped ensure consistently high levels of quality and service.” TABLE 7: Office Employee Turnover Rate PPAI 100 Suppliers 10% Suppliers $100M+ 7% Suppliers $50M-$100M 13% Suppliers $25M-$50M 8% Suppliers $5M-$25M 13% Suppliers Under $5M 5% Office turnover rates can vary across companies and are likely to be affected by the environment and internal practices of each company. Interestingly, last year’s rates indicated that there was higher turnover at smaller firms than at larger ones. This year’s data shows a leveling out among all suppliers in terms of employee retention. TABLE 8: On-time Shipping Percentage PPAI 100 Suppliers 95% Suppliers $100M+ 97% Suppliers $50M-$100M 97% Suppliers $25M-$50M 98% Suppliers $5M-$25M 90% Suppliers Under $5M 98% With Bag Makers consistently achieving a more than 98% on-time shipping rate, McFadden says it’s been a great statistic and talking point when meeting with customers and prospects. “This stat gives our customers peace of mind knowing their orders will arrive on time or even early for their events and promotions,” he says. The State of Growth 2024 | Must Read used the revenue and order count averages to determine a rough estimate of each order for PPAI 100 companies. “The average dollar value per order of about $400 shows how important running orders efficiently is to suppliers’ operations and margins,” McFadden says. Bartlett suggests that the order count continues to be very small for the revenue generated. “Suppliers will continue to be squeezed trying to give outstanding customer service while having to process even more and more individual orders,” he says. “This is going to open the doors for even more automation within the customer service quadrant and relying more and more on advanced software to streamline the entire order and manufacturing process.” TABLE 5: Sample Costs PPAI 100 Suppliers 1% Suppliers $100M+ 1% Suppliers $50M-$100M 3% Suppliers $25M-$50M 1% Suppliers $5M-$25M 1% Suppliers Under $5M 3% The average sample cost percentages have held steady since last year, indicating efficient processes in giving clients and distributors a sense of what they are purchasing. Sure, creating and shipping samples is a necessary part of doing business, but at least they’re a relatively low cost in the grand scheme of things. TABLE 6: Factory Employee Turnover Rate PPAI 100 Suppliers 20% Suppliers $100M+ 15% Suppliers $50M-$100M 30% Suppliers $25M-$50M 16% Suppliers $5M-$25M 15% Suppliers Under $5M 4% Scott McFadden Neil Ringel PPAI • JULY 2024 • 45
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