market forecast 2004

Weathering the Stormy Climate
Here's what the insiders see ahead for the hurricane protection industry.

by Howard Shingle

The hurricane protection market is ever changing and often unpredictable. What lies ahead? How can hurricane protection dealers stay competitive and thrive? Hurricane Protection posed these questions to industry insiders to learn where they think the industry is heading given the present state of the industry and the economy.

We also asked them what marketing strategies or product trends they see as the most successful for the season ahead and what are the main issues facing the hurricane protection industry? Here are their responses:

POTENTIAL SHORTAGES
Gaby Mann
All Points Screw, Bolt & Specialty Co.

This year the fastener side of the hurricane protection industry is challenged with product price increases and potential shortages. This is the first in many years we have seen substantial price increases. The increases and shortages are due in part to the devaluation of the dollar, China’s internal consumption of raw material and increased security and shipping costs.

Relationships with industry suppliers will be crucial to making sure companies have their needed product. The companies that committed to purchases early will best be able to withstand these challenges.

In terms of marketing strategies, our philosophy has always been to provide the best customer service and product and sales will follow.

Again, the main issue facing the hurricane protection industry is the potential product shortages and price increases. Should this be a strong year in sales for the hurricane protection industry, providing the product will be an issue.

TOP QUALITY ALL AROUND
Nick Knezevich
Raymond Building Supply

Price your product accurately! Those shutter dealers who rely on lowering prices to get work are really going to feel the pinch with both steel and aluminum prices going out of sight. There is an abundance of work for everyone in the industry who are properly trained and correctly installing a quality product in accordance with quality engineering.

There are too many who cannot afford proper training, insurance, workman’s compensation or correct engineering because they feel the only way to get work is lowering their prices until their margins are slim or non-existent.

Obtain the proper insurance including workman’s comprehensive, pay for correct engineering and train your personnel to manufacture and install correctly and then price your products accordingly. You will get more work than ever before when the word spreads about the quality you provide, and your bottom line will improve dramatically.

DEVELOP OTHER MARKET SEGMENTS
John Gill
Innovative Protective Products

The state of the U.S. economy has been depressed for the past couple of years along with the hurricane protection industry. The state of the hurricane protection industry is, of course, linked to natural disasters. Dr. William Gray, in his recent article in Hurricane Protection magazine (see HP, Winter 2004, page 12), points out that the number of major hurricanes that have made landfall on the U.S. coast has been down in recent years. In his words, we have been very lucky.

A company in this industry can wait for the next major hurricane to make landfall in the United States or take steps to develop business in other market segments of the shutter business. A prime example of this is the rolling shutters business. Typically companies promote rolling shutters as just another form of hurricane protection. In reality, it is a great deal more. Rolling shutters provide numerous outstanding benefits besides just hurricane protection; for example, they provide security, privacy, protection from the sun and ultraviolet rays and reduced utility bills. Numerous customers also use rolling shutters to enclose a balcony or lanai, thus creating more living space or even a room addition.

Next, one needs to review the latest new product trends in the rolling shutter industry. One of these trends is to use polymeric slats for rolling shutter installations. Polymeric slats like the new “Splats” products have recently obtained Florida Product Approval, passed the Florida Building Code and have a Product Evaluation completed with the Texas Dept. of Insurance. Customers like the new polymeric slats with features like the elimination of storm bars, the ability to resist scratches and corrosion, plus low maintenance with no painting. These new polymeric slats have some real benefits to offer the industry.