TEXTILES.ORG
By Jeff Rasmussen
A survey conducted in November 2008 by IFAI asked U.S. and Canadian awning and canopy fabric end product manufacturers and suppliers to identify current issues or trends, the impact of those trends, and their expectations for 2009.
What do you expect to happen in 2009?
Suppliers responded:
- Continued economic problems in 2009; loss of sales; customers postponing sales
- Increased penetration from European fabric companies
End-product manufacturers responded:
- An overall drop in sales in 2009 due to poor economy, especially residential awning sales
- Increase in technology—computer graphics digitally printed on fabric
- Green issues will increase the number of projects; PVC will drop in popularity
- Service will become more important in order to retain customers
- Reduction in number of companies competing for the same or decreasing number of customers; strong companies will expand market share and weaker firms will struggle or be eliminated
- Raw material prices will remain high, which will drive down the number of projects
- Fewer traditional awnings and more architectural style awnings
- Increase in retractable sales; there will be a need to diversify beyond commercial awnings
What were the top trends affecting business in 2008?
Suppliers responded:
Trend: High raw material prices
Impact: Looking at alternative suppliers
Trend: Wider widths for fabric
Impact: Increase in sales of fabric volume
Trend: FR requirements—adoption of California standards
Impact: More sales opportunities for FR fabric business
Trend: More new fabrics
Impact: Increased sales opportunities/choices for customers
Trend: Poor economy
Impact: Depressed sales in 2008 and projected slow sales for 2009
End-product manufacturers responded:
Trend: Slow economy
Impact: Decreased sales; some customers are postponing their decision to purchase awnings/canopies
Trend: High raw material prices (especially acrylic canvas)
Impact: Downturn in sales; decrease in profit; buying alternative brands of acrylic canvas
Trend: Lack of skilled employees; labor shortage
Impact: Reduced output of product(s); fewer sale
Trend: Poor construction market, especially residential
Impact: Slowdown in orders for product/Loss of sales
Trend: Decrease in backlit awnings
Impact: Increase in digitally printed fabric
Trend: Growth in commercial awning business
Impact: Increased sales
Trend: Growth in recovers for awnings
Impact: Source of increased revenue
Trend: Consolidation of suppliers
Impact: More competition among suppliers; increased prices; lower profit margins
Trend: Divergent state and city building codes
Impact: Difficulty in meeting divergent state and city codes has contributed to a decrease in sales