Moulding business will change

By Tom MacDonald President Wood Moulding & Millwork Producers Association

T HE 1990s should be a decade of I challenge, change and new opportunities for moulding and millwork producers. Although interest rates and general economic conditions will continue to have the major impact on our industry's level of profitable activity, other factors may have an lncreasrng lnfluence on our business climate. Resource constraints, environmental issues, advanced technology, more sophisticated markets, world trade and changing demographics may all change the way we do business over the next l0 years.

Story at a Glance

Resource availability, technological advances, smaller workforce, more demanding consumer, export emphasis will change moulding & millwork.

The pressure environmentalists have recently put on resource availability is expected to increase in 1990 (Continued on next page)

Changee In Mouldlng

(Continued from page I 3) and beyond. Reduced supply ol some species will encourage the use of alternatives available both in the U.S. and abroad. Product engineering will focus on the balance between efTicient use o[available resources and traditional constructions. The increased use of second growth timber should lead to more sophisticated products with engineered constructions using veneers. coatings and overlays. Material costs will be an increasing percentage of total product costs.

Technological advances will focus on helping producers cope with rising labor and material costs. "lntelligent" machines that use computers to assist with decision making will become the norm at both large and small manufacturing companies. Value based optimizing technology will help increase total dollar yield from the available raw materials.

The consumers of moulding and millwork products will become more quality, performance and service oriented. Shorter lead times, more stringent product performance requirements and special services are alI expected to characterize the markets of the 1990s. The increasing demand for d-i-y products will increase the demand for services such as special packaging and bar coding. The high cost of housing will tend to make the typical home buyer or remodeler a more demanding consumer.

Exports should become a major factor in expanding the market for moulding and millwork products.

Demographic studies tell us that fewer people will enter the workfiorce in the '90s and to expect a decrease in the number of first time home buyers. These factors are predicted to result in fewer housing starts in the mid 1990s and beyond. To cope with the effects of these demographic changes, companies will be required to take a fresh approach to both their marketing and manufacturing methods. Marketing plans will focus on balancing domestic and international sales in products that fit both new home construction and the remodeling markets. Manufacturing managers may be required to address many diverse issues in the workplace from child care to the training of people in the use of high technology equipment.

Next year may mark the beginning of this century's most challenging decade. New markets will open up both at home and abroad but with an increasing demand for quality and service.