CMZ exceeds all the forecasts achieving sales of €110m in record time
Setting yourself a goal and reaching it is always satisfying. But as well as that, seeing that you have beaten your own turnover record, exceeding all forecasts is even more so. In an increasingly competitive sector like the machine tools industry where outsourcing and large multinationals are increasingly at the forefront, this milestone is a watershed moment for us. We have reached turnover of €110m with 549 CMZ lathes delivered. An unprecedented figure which meets and exceeds the goals set in our strategic plan for 2021.
Historic milestone: Turnover of €110m
A figure that shows steady growth over time. In the 2023 financial year, CMZ achieved turnover of €110m with 549 machines delivered, corresponding to the delivery of 2.52 lathes a day. An all-time record which has certainly exceeded all expectations. The goal set in 2021 was clear: substantially reinforce the group's production capacity and achieve €100m by year end 2024.
At year-end 2023, not only have we exceeded the forecasts of the strategic plan by 10%, we have also done it a year early. The billing data include the technical support service and the online shop for tool holders - CMZ Store (€10m total turnover) as well as machinery turnover which are around €100m.
As for the markets where we operate, we can say that we have the DNA of an exporter and our sights are always set on a variety of goals. 75% of our sales are in foreign countries, thanks to our 6 European subsidiaries and our wide network of distributors. In addition, almost 10% of our CNC lathes cross borders outside Europe, placing the company firmly on the international stage.
The customer is always at the centre
The importance of taking care over the product and the service from within is very much alive in the different life cycle phases of a CMZ lathe. That is why the customer's needs are always at the centre, with ongoing support throughout the purchase process. In this way, our technical support service achieved €10m in turnover in the last financial year, with over 3,600 interventions and 6,747 spare parts delivered. The free hotline, where customers are directly supported by engineers from CMZ's factory, has recorded a total of around 15,000 calls. The department has over 70 professionals and own teams in 6 European countries whose main task is to ensure the durability of the machines.
In addition, at the start of the year and with the goal of continuing towards digitalisation, we launched the refreshed online shop for tool holders, the CMZ Store. With its new 100% customer-friendly design, last year we dealt with around 700 orders with an average ticket of €1,645. In this way, we continue to provide support and streamline the entire process of purchasing tool holders for CMZ lathes, enabling high traceability and consultations of available stock in real time.
Over 500 people: a constantly growing team
The growth in turnover has gone hand in hand with a significant increase in the human team. There are over 520 of us in CMZ, a 15% increase over 2021 which shows sustainable growth in line with market demand. We have committed above all to talent in the area, submerging ourselves in dual training projects with various entities and collaborating side by side with factory visits and job fairs to attract personnel.
In 2023, there were a total of 90 new recruits, and the highest growth areas were IT, SAT (Service) and the Applications Department. The technological projects in which we are immersed require a highly qualified team and the opportunities for personal growth that we offer are extremely attractive for candidates interested in the world of machine tools.
There have also been many recruits with profiles related to the technical support service. Specifically, in the United Kingdom, high market demand has meant it was essential for us to strengthen the after-sales muscle with the aim of delivering the best service for our customers. To achieve that, we have a new Service Manager in the UK, Richard Eales, and the number of qualified technicians has been increased considerably.
Over 40,000 m2: boosting the means of production
2023 has been a year of records and launches. The opening of our sixth European subsidiary, CMZ Denmark, strengthened our international expansion plan and led to its own support service and a really interesting turnover for the company. The Danish market's potential will enable us to increase our market share and the opening of the new subsidiary helps us to offer a more customer-friendly, direct service.
CMZ has a surface area of over 40,000 m2 where we manufacture CNC lathes with a life span of over 20 years. In addition, with our commitment to a European product, we have invested in facilities with the latest technologies on the market to supply high market demand. Proof of our commitment is the opening of the new Precitor, the cylindrical parts machining plant in Elorrio which triples the surface area of the old plant. In this way, we continue with our philosophy of "in-house production", producing over 80% of the components for our machines at our own facilities.
Next goal: 800 lathes a year
Our next goals are all aimed at maintaining constant growth. We will focus all our resources and efforts on increasing our production capacity to manufacture 800 lathes a year, always in line with the philosophy of in-house production. And we also have our sights always set on the horizon. Major projects await us in 2024 and another of our goals is the opening of a new subsidiary in the United States. In any event, achieving turnover of €110m in 2023 is a historic milestone which we hope to increase gradually and sustainably over the coming years.
Below are CMZ's data for the 2023 financial year:
