While business may not be exactly booming, there are some glimmers of recovery shining through some of the negativity. The recent announcement that companies like Stiles, SCM, Biesse and Weinig will be returning to Las Vegas this July for the AWFS Fair is one of them.
Steve Waltman, vice president of sales and marketing for Stiles Machinery Inc. says people should take heart in the fact that these companies all, independently of each other, made the decision to return to AWFS this year.
“I think it signals a recovery. I think it signals the strength and resolute attitude of our industry and its ability to reinvent itself and find new opportunities and I think they have. I think our activity is simply a reaction of the industry strength and resolve,” Waltman says.
AWFS also points to this return as a sign of recovery.
“The fact that many exhibitors have decided to return, including several that have sat out an entire show cycle, is an extremely encouraging sign for the industry,” Joan Kemp, president of AWFS® Board of Directors, says. “Ultimately, those that will benefit the most will be our attendees. In the end, that’s what truly matters and we couldn’t be happier.”
"From Weinig’s perspective, we want to share a refreshing and forward-looking view of our contributions to the industry, and the AWFS Show provides both the right timing and the right platform to afford us that opportunity," says Weinig president Jason Howell. "Through Weinig’s acquisition of Holz-Her we will show diversity, strength and a value chain that is unique. We want attending companies and customers to see that we have been busy developing innovative ideas and technology for the industry, are that we are there to help them push forward to success."
Along with a healthier backdrop to the overall economy, IBIS World Industry Report is projecting that growth of household disposable income is expected to drive spending on home renovation activities, according to AWFS. Even though the overall projected growth rate will be below the pace during the housing boom, spending is projected to be up sharply from the recent downturn. The cabinet, bathroom vanity and countertop manufacturing industries are projected to grow to 3 percent per year to $14.7 billion during the five years to 2015, and millwork is posed for annual rise of 4.8 percent for the next five years.
“There are indications that 2011 will be better for our industry as a whole, and that we have collectively begun to turn the corner,” says Jason Howell, president of Weinig USA. “We are excited to be there for our customers, and we appreciate the opportunity that AWFS presents for us to exhibit with Holz-Her as the newest member of the Weinig Group.”
Increased Activity
According to Waltman, project activity is up at Stiles, and while that doesn’t mean they are orders at the moment “activity always precedes the business,” he says. “There is a certain gestation time that precedes all new business. I believe we are in that period.
“I believe through the first quarter we will experience this heightened activity in terms of discovery or a reconnection with the marketplace as people come into the new year and evaluate their opportunities and see there are areas of business that they can improve or be more effective, a fashion or a complement to their business that would really work and those are the kind of things we’re working on right now. “
John Gangone, president of SCM, is also optimistic that the improvement we’ve all be waiting for is near. “Recently we have seen some sizable improvements in our industry over past years but 2010 is another year that will not be remembered as ‘great’ for our industry and for our businesses in general. However, we have noticed some trends that lead us to believe that a true recovery is just around the corner,” he says.
The Search for New Solutions
One thing is certain; we won’t get to that full recovery doing what we always have done. Now is the time for innovation and creativity. It is the time to change what manufacturing is in the United States.
As Gangone puts it, “we have a lot of catching up to do.” While the concept of lean manufacturing is nothing new and most companies have embraced it, Gangone says, they are primarily focusing on the “soft part of the operation but have compromised on the core part of the program, technology. Producing one piece at a time is only economically feasible if we have built enough flexibility in the manufacturing process to produce the part profitably.”
According to Gangone, it’s not just the Europeans that believe in this manufacturing approach. He says China and Brazil have also embraced this approach and are investing heavily in this technology.
“These two countries have invested exceedingly more than all of North America has purchased in new equipment during the course of the last two years,” he says.
Gangone and Waltman alike challenge the industry to act and evolve. The solutions of yesterday are not the answers for today and definitely not for tomorrow. Waltman says the industry needs to continue to challenge itself to grow and find new solutions.
“If they believe that things are going to return in the same way they were two or three years ago and the competitive landscape will stay the same, I think they are kidding themselves,” Waltman says. “They better prepare for battle, but a different kind of battle. These projects represent that. These are people who understand that they can’t go to war in a competitive marketplace using the same tools they had in the past.
“It’s almost a little arrogant to think that all they have to do is return to doing things the same way as in those days and think they are going to be able to compete. I think that would be a huge mistake on their part.”
Gangone presents a similar challenge to the industry. He says, even with its current challenges the U.S. economy is still the strongest in the world. “We now have a challenge to face while our window of opportunity is still open,” he challenges.”It should be our desire and commitment to embrace this challenge with one objective in mind and that is to prevail.”
Waltman also encourages the industry to embrace education, whether that is through trade shows or other opportunities. Lean about the new technologies and embrace them.
“Look and see and explore and experience things that are new rather than simply sighing the sigh of relief that I guess everything is going to be ok we can go on in our own simple way. I am over stating that but I’m not sure I can’t. It’s a huge mistake to think we can do more of what used to and we’ll get more in the market place and that is not going to work.”