Hot moulding market

By James Scott President Brown Mouldine

ECAUSE the consumer perceives a higher value and receives valued benefits from the product, more mouldings go into homes today than 5 to 10 years ago. Where once only door casing and base mouldings were

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ings are used, as well as multiple patterns. To offset some of the higher costs of these larger patterns, a swing in the mix from solid to fingerjoint patterns of approximately 5% per year has been seen in the last couple of years.

Though the housing market is expected to decline and the general economy may slow down in the coming year, the moulding market should remain strong. This is due to the growing amount of moulding put into new homes as well as the expected growth in the remodeling market.

The remodeling and d-i-y markets are trending toward the more decorative and architectural moulding that has traditionally provided a higher margin to dealers.

As the long term outlook for the housing market shows a decline, the future of the moulding industry rests in the d-i-y and pre d-i-y markets. Lumber yards and home centers should direct their energies toward solving their customer's problems and meeting their customer's needs.

Story at a Glance

More moulding per house plus remodeling market growth bolster outlook more use of fancy, high margin mouldings by d-iyers moulding shouldn't be sold as a commodity.

Today, many people are concerned about holding inventory levels down to keep companies as liquid as possible. But remember, you can't sell from an empty moulding bin; no inventory usually means no sales. Customer perceptions are the key. If your firm is perceived as the one who meets the needs of the customer, then you willget the call. Every company has a constant battle against its own decline in giving attention to the needs of the customer. Research customer needs, and make every effort to meet them.

Moulding is not a commodity. The different uses of moulding, the different methods of merchandising, and the high value placed on moulding by the customer, make it a dynamic product line. Stock it, display it, train your sales people to sell it and you will reap the benefits.