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    Trends impact suppliers and manufacturers in lightweight structures industry

    Uncategorized | | By:

    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

    By Jeff Rasmussen, market research manager at the Industrial Fabrics Association International. He can be reached at +1 651 225 6967, jcrasmussen@ifai.com.

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