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VM Report Weighs in on Top Labs

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VM Report Weighs in on Top Labs WHOLESALE COVER TOPIC HEAVYWEIGHTS VM Report Weighs In on Top Labs BY ANDREW KARP / GROUP EDITOR, LENSES + TECHNOLOGY NEW YORK—Fast. Flexible. Resourceful. Responsive. These quali- ties, along with good value, are what eyecare professionals look for Top Labs’ Vital Stats in a wholesale optical laboratory. • The total net sales for all 25 Top Labs, including both However, the customers of the industry’s largest wholesalers, VM’s supplier-owned lab networks and independent labs, will Top Labs, set the bar higher. They demand the latest lens designs, climb to $2.8 billion in 2015, up 8.3 percent from 2014. materials and coatings, and an extensive choice of name brand and • The total Rx sales for the Top Labs will hit $2.5 billion, private label products. When they have questions about technical a 7.8 percent increase over 2014. issues or product availability they want answers instantly. They • Collectively, the Top Labs will produce a total of want rapid turnaround, and sometimes even same-day service. 152,585 Rx jobs per day, (approximately 38.1 million As VM’s newly released 2015 Top Labs Report shows, these Rx jobs annually), a 6 percent increase over 2014 Wholesale Heavyweights deliver all this, and more. This exclusive • Rx sales for the Top 5 Supplier-Owned Lab Networks will report, based on our annual survey, ranks independent wholesalers climb to $2 billion, a 7.7 percent increase from 2014. and supplier-owned lab networks according to their projected Rx • The Top 5 will collectively produce 121,300 Rx jobs per sales and productivity. day, up 6.6 percent from last year. To meet customers’ expectations, the Top Labs continually adapt • The Top 5 currently operate 190 lab locations, three to shifting market conditions, including new forms of competition, less than last year. a changing work force and new government programs that are • Total Rx sales for the Top 20 Independent Labs will reshaping the health care industry. The fact that 18 of the 25 inde- grow to $489.9 million, up 8.2 percent from 2014. pendent and supplier-owned wholesalers ranked in VM’s 2015 Top Labs Report grew their Rx lens sales and increased their Rx lens • The Top 20 will collectively produce 31,285 Rx jobs per day, an increase of 5.3 percent from last year. production over the past year despite the challenging business cli- mate shows just how accomplished they are. n • Although the Top 20 Independents operate 81 locations, 4 less than last year, the number of workers they More employ is up 5 percent from 2014. 26 WHOLESALE HEAVYWEIGHTS VM’s Top Labs Performance Analysis VM’s Top 5 Supplier-Owned VM’s Top 20 Independent U.S. Wholesale Lab Networks U.S. Wholesale Labs 2015 2014 % 2015 2014 % ($millions) ($millions) change ($millions) ($millions) change Total Net Sales $2,110.4 $1,928.0 +8.6% Total Net Sales $673.6 $625.9 +7.1% Total Rx Sales $2,011.9 $1,856.0 +7.7% Total Rx Sales $489.9 $449.6 +8.2% Avg. Rx Sales as Percentage 95.2% 96.8% -1.7% Avg. Rx Sales as Percentage 90.6% 85.4% +5.7% of Total Net Sales of Total Net Sales Total Rx Jobs Per Day 121,300 113,250 +6.6% Total Rx Jobs Per Day 31,285 29,621 +5.3% Avg. Percent of Uncuts 33% 32.6% +1.2% Avg. Percent of Uncuts 39.4% 39.4% 0% Total Number of Lab Locations 190 193 -1.6% Total Number of Lab Locations 81 85 -4.9% Total Number of Employees 9,936 9,856 +0.8% Total Number of Employees 2,699 2,565 +5.0% Source: Vision Monday estimates Estimates for calendar years 2015 and 2014 are based on information from a number of sources, which may include interviews with company management, financial disclosure documents and information from knowledgeable secondary sources. Companies with the same estimated Rx sales are ranked by Rx jobs per day. Companies with the same Rx jobs per day are ranked alphabetically. Top Lab Execs Assess Challenges and Identify Opportunites M asked executives at several of the It’s especially difficult to find data entry, phone Top Labs to share their outlook on the room, optical techs and tinting staff. Where the V current business climate for labs. They equipment is highly automated and complicated, cited a variety of factors that are impacting whole- the work force needs are even more severe. salers, including Congressional gridlock, health —Ralph Cotran, co-owner, US Optical “The largest challenge is planning capital equip- care regulations and difficulty hiring qualified ment expenditures and the tax ramifications of employees. such purchases. The largest obstacle is the federal government. Due to the indecision in Congress, VM: What are the biggest business chal- section 179 depreciation rules have not been decid- lenges facing wholesale labs today? ed for 2015. In 2014, the rule was enacted during “Hiring quality workers and retaining them. Let’s the second week of December. Without knowing face it, the workforce of today isn’t the same as the specifics of this tax law for 2015, it can mean even a few years ago. Workers aren’t as reliable the difference of taxable income that is $600,000 and expect more liberties at work. We are going to with the same rules as last year, or up to $1,600,000 “It is very difficult to find optical talent with devote some time and energy on finding a solu- with the current amounts. Therefore, it’s extremely strong motivated work ethics. Lab training pro- tion to maintain our level of service with this gen- difficult to plan for future expansion. grams are rare and most learning occurs on the job. eration of workers.” —Bill Heffner, owner, FEA Industries The staff we have is excellent and hard to replace. —Mike Tamerius, owner, Precision Optical Group Continued on page 34 To download a PDF of VM’s 2015 Top Labs Report, visit VisionMonday.com. SEPTEMBER 14, 2015 2727 Vision Monday’s TOP LABS – 2015 (IN ALPHABETICAL ORDER) Carl Zeiss Vision Key Executives: Adam Cherry, Lynn Cherry, Joe 2015 Est. Net Sales: $35.5 million Cherry Rx Sales: $35.5 million Laboratories Owners: Adam Cherry, Lynn Cherry, Joe Cherry No. of Rx Jobs/Day: 1,625 Founded: 2000 Trade Names: Safety Optix, Cherry Approved, Percentage of Uncut Jobs: 50% HQ.: San Diego, Calif. Cherry Approved AR, Independence, Indepen- Comments: On-site AR coating lab as well as exten- No. of Locations: 16 dence HD, Modern PAL, Quantum 2, Quantum 2 sive lens finishing center. National sales organiza- No. of Employees: 860 HD, Northern Comfort, HD SV, HD Wrap SV, Chro- tion. Proprietary products include Digital 5.0, Digi- mapop SV, Chromapop Wrap SV, Chromapop PAL, tal Master Series, Curve PAL and SV wrap designs, Key Executives: (North America) Jens Boy, president; Chrompapop Wrap PAL Claris AR, Claris bluDefense, Sector, Curve coating. Steve Mitrakos, senior vice president retail; Greg Key Markets: Worldwide VSP-enabled lab, Shamir Glacier fabrication. DiPasquale, senior vice president independent ECP; 2015 Est. Net Sales: $9.1 million www.Digitaleyelab.com Claude Labeeuw, vice president marketing; Ulrich Rx Sales: $8.9 million Schneider, director Rx operations No. of Rx Jobs/Day: 425 Owner: Carl Zeiss AG, Germany Percentage of Uncut Jobs: 28% Trade Names: Carl Zeiss Vision—B&W, Carl Zeiss Comments: Offers a wide scope of training and Diversified Ophthalmics Vision—California, Carl Zeiss Vision—Cumberland, educational services for independent, private Laboratory Group Carl Zeiss Vision—Georgia, Carl Zeiss Vision—Great practice optometry, such as “What’s New Univer- Lakes, Carl Zeiss Vision—Iowa, Carl Zeiss Vision— sity” at Lambeau Field on March 19, 2016. Con- Founded: 1977 Kansas City, Carl Zeiss Vision—Kentucky, Carl Zeiss tributes annually to state optometry and parapro- HQ./Main Lab Location: Cincinnati, Ohio Vision—North Central, Carl Zeiss Vision—Northeast, fessional organization. Supports customers by No. of Locations: 13 Carl Zeiss Vision—Northwest, Carl Zeiss Vision— working with them to create customized programs No. of Employees: 96 Siouxland, Carl Zeiss Vision—Southeastern, Carl to grow their business. Zeiss Vision— Texas, Carl Zeiss Vision—Virginia www.facebook.com/thecherryopticalinc Key Executives: Ronald Cooke, president/CEO; Key Markets: Nationwide Daniel Woebkenberg, VP sales and marketing; 2015 Est. Net Sales: $158 million Keith Ansley, VP, operations Rx Sales: $143 million Owner: Closely held corporation No. of Rx Jobs/Day: 10,250 Digital Eye Lab Trade Names: DLAB, DO Southeast, DO Washing- Percentage of Uncut Jobs: 25% (a division of ABB Optical Group) ton, OptiSource, PurSite, Salt Lake Optical, Sum- Comments: Zeiss brand lenses and coatings, Zeiss Individu- mit Optical, TriOptics, Firestone Optics al 2 PhotoFusion by Zeiss, Duravision Platinum by Zeiss, Founded: 2007 Key Markets: Ga. Idaho, Ill., Ind., Kan., Ky., La., Duravision BlueProtect by Zeiss, SOLA and AO lenses. HQ./Main Lab Location: Hawthorne, N.Y. Mo., Mich., Mont., N.C., Ohio, Pa., S.C., Tenn., www.zeiss.com/lenses Number of locations: 1 Texas, Utah, Va., Wash., Wis., W.Va. No. of Employees: 120 2015 Est. Net Sales: $32.3 million Rx Sales: $16 million Cherry Optical Key Executives: Scott Pearl, managing director; No. of Rx Jobs/Day: 1,212 Founded: 1999 Vince Monaghan, VP of manufacturing Percentage of Uncut Jobs: 25% HQ./Main Lab Location: Green Bay, Wis. Owner: ABB Optical Group Comments: Full service labs with ophthalmic No. of Locations: 1 Trade Names: Digital Eye Lab lens and RGP manufacturing capabilities. Named No. of Employees: 39 Key Markets: National Continued on page 28 @VisionMonday Facebook.com/VisionMonday VISIONMONDAY.COM SEPTEMBER 14, 2015 28 WHOLESALE HEAVYWEIGHTS Continued from page 27 2012 and 2005 Transitions “Lab of the Year.” The Top 20 Independent Labs in 2015 at a Glance Transitions Platinum Elite Laboratory.
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