TEXTILES.ORG
By Jeff Rasmussen
Survey results show that suppliers and end-product manufacturers are feeling the impact of a more competitive environment resulting from trends such as high raw material prices, increasing labor costs and slow market growth due to the downturn in the U.S. and global economy.
For suppliers
Trend: High raw material prices
Impact: More value engineering (VE)—formal costs estimates, and cost justification procedures, etc.
Trend: Design issues
Impact: Spending more time clarifying the design of fabrics
Trend: Increased use of ETFE in architectural applications
Impact: More competition for business
Trend: Rebirth in use of fabric over traditional building materials
Impact: Expanded business
For end-product manufacturers
Trend: Downturn in economy
Impact: Slow growth has led to canceled or delayed projects, seeking out other low cost suppliers to grow business
Trend: Unfavorable exchange rate
Impact: Lower profit margins (undervalued U.S. dollar vs. foreign currencies)
Trend: High raw material prices
Impact: Holding back ability to grow business
Trend: Lack of skilled employees, labor shortage
Impact: Restricting the expansion of business
Trend: Increasing labor cost
Impact: Higher production costs, loss of sales
Trend: Green movement
Impact:Opportunity to sell new products to green market
Trend: Increasing military applications (tents, storage facilities
Impact: Increased sales to the military through at least 2009
Trend: Increase in international business leads
Impact: Increased sales to international markets