Making it in the moulding industry

rI'IRENDS in the wood mouldI ing industry were recently discussed by Wood Moulding & Millwork Producers Association president Matt Allen, Mt. Taylor Millwork, Milan, N.M., and WMMPA executive vice president Kellie Schroeder.

Schroeder: What do you believe is the most difficult situation facing your business today?

Allen: I think that our inability to find qualified help is a big issue. Our business is located in what I believe has become the poorest state in the Union. Furthermore, it is located in one of the three poorest counties within that state. And yet, we fight maintaining employees. We find many people who want a job, but few who want to work.

The other big concern I have pertains to our current trade deficit. Our government continues to lower the interest rates in the hope that continued housing growth will stimulate the economy. On a long-term basis I do not think it will work. They are relying on the housing industry to carry our economy.

Frankly, there is little doubt that the economy will be helped, but only on a small level. New housing will create jobs in the construction industry and no doubt there are a few more clerks at Home Depot or Lowe's. But, the reality of the situation is that the products being sold to manufacture these homes are coming from overseas. If those products were being manufactured here at home, many jobs would be created and supported. However, when the products are being imported with no governmental attempt at balanced trade, the economies being stimulated are located in the countries from whence these products come. Thus, our low interest rates are supporting foreign economies, not our own.

I feel that the United States of America is changing. We have gone from a proud nation of manufacturers to a nation of consumers. At one point we were the manufacturing superpower of the world. But, I believe we are becoming simply a nation of consumers, eagerly absorbing products brought to us by our overseas competition who are enjoying an economic edge due to their lower wage base and other advantages.

We need balanced trade. If foreign economies beat us in manufacturing because their quality is better, so be it. But, if they are allowed to beat us based solely upon cheap prices due to their economic advantage and our government allows this, we have a problem.

Schroeder: What do you foresee as the biggest change tak- ing place in the moulding and millwork business in the next l0 years?

Allen: I think that the largest change will be a continuation of our current situation. More and more material will continue to be imported from overseas. There will be fewer and fewer successful U.S. manufacturers of these products. Foreign competitors will sell their products more cheaply than U.S. manufacturers resulting in an artificial ceiling on the market. This ceiling will keep U.S. manufacturers from selling at profitable levels all while their cost of doing business will increase with standard inflation. I do not foresee pood thinss for our industry.

Schroeder: Matt, your father, your brother and now you have all served as WMMPA president. Can you explain Mt. Taylor Millwork's membership longevity with WMMPA?

Allen: I think that over the years we have all been able to recognize that the opportunity to socialize with our peers, to exchange information and to rally around our industry is extremely important. Mt. Taylor Millwork, Inc. became a member of the WMMPA in 1968. Since that time, at least to the best of my knowledge, the WMMPA has had only one meeting at which there was no representative from our company. Moreover, for those people hesitant to join an industry association, I think they need to recognize that they have a responsibility not only to themselves to be involved in activities that further their business, but also to the industry itself. Now, let's turn this conversation around for the next few minutes and have you answer a few questions. What are the key elements manufacturers seek when applying for membership in WMMPA?

Schroeder: Connectivity to the industry, marketing, resource base/educational programs, cost-saving benefits, and validation of their product in the marketplace.

Allen: What is one of the first benefits realized after joining WMMPA?

Schroeder: Marketing of the company and their available products in three areas: The new member gains instant exposure through our wmmpa.com web site. The searchable database is a key feature that lets visitors to wmmpa.com sift through our membership listing to find those companies that manufacture products they are seeking to purchase.

The WMMPA Directory of Members, Products & Services is a popular publication that is widely distributed in North America to the buyers of wood moulding and millwork.

The print advertising the association conducts throughout the year on behalf of its membership in industry specific magazines gains name recognition for all member companies.

Allen: WMMPA marked 40 years last month. Has the association changed its mission or purpose for existence since its inception in 1963?

Schroeder: No, our purpose has not changed. We have, however, streamlined our business meetings, focusing more on education geared specifically to moulding and millwork manufacturers. The speakers we hire deliver timely topics that our members can use each day in their facilities. Now we spend more time sitting down together discussing our markets, available technology, and standards, sharing our knowledge base with each other. There is no greater wealth of wood moulding and millwork knowledge anywhere than when our members gather together. Our members utilize each other's experiences to grow and expand their operations.

Allen: Do you think there are misconceptions by non-member manufacturers regarding WMMPA?

Schroeder: Misconceptions are always out there, whether they are about the WMMPA or other associations regardless of the industry. I think the number one misconception regarding our organization is that we only service large manufacturing facilities or corporations, which is not the case. Our dues schedule accommodates a one-moulder operation running 15,000 bd. ft. per month or less.

Allen: Is there a benefit that you think is overlooked by potential WMMPA members, kind of a sleeper benefit?

Schroeder: I could say the 20-Minute Fire-Rated Door Frame Standard. Manufacturers that want to produce a fire-rated door frame can utilize our specifications without charge just by joining the WMMPA. I could also point out that just being affiliated with the WM logo has its own benefits and product validation. But, I think I would have to settle on peer interaction. We cannot put a dollar value on rubbing elbows with our peers. If a company were just getting off the ground, what dollar value would they attribute to sitting down at a table with seasoned manufacturers to discuss plant operations?

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