AAMA Meeting Closes with Trends in Manufacturing

The 70th annual meeting of the American Architectural Manufacturers Association wrapped up last Wednesday in Marco Island, FL, sending attendees off with some food for thought in terms of manufacturing trends. Other speakers addressed overseas competition and identity theft.

Manufacturing as an industry in the United States is still as strong as ever, regardless of what misconceptions might be circulating in society, according to Jerry Jasinowski, president of The Manufacturing Institute, the research and education arm of the National Association of Manufacturers. “It is anything but in decline,” he told AAMA attendees during one of the week’s lunch sessions.

He started his talk by pointing out that manufacturing in the United States is responsible for about 70 percent of the research and development that takes place in the country. “Manufacturing is the engine of technology in this country,” he said.

Jasinowski, who is also past president of NAM, said the long-term outlook for the macro economy is good, and highlighted several trends to watch, including the domestic political landscape and expanding global centers of commerce. Some companies’ leaders will have to take steps to increase their global footprints to keep up with overseas competitors, he noted. “You have to look at other options to deal with that competition.”

Jasinowski also pointed to a recent NAM study that pegged U.S. manufacturers as facing a 30 percent burden with taxes, health care and other overhead costs compared to counterparts in other developed countries. Compounding this challenge is a need for a high-performance workforce, especially in the areas of engineering and production. “We all need to look at how we can raise these skill levels,” he notes.

Another trend Jasinowski noted was the rise of private equity groups, which are shaping the landscape in many industries. The building products and window and door sectors are no exception, he said. Investment firms’ activities are worth watching as a trend, Jasinowski said. “In some respects, [they] have become the dominant players in terms of what goes on with mergers and acquisitions,” he added.

While many of the trends Jasinowski highlighted present challenges to window and door manufacturers, he came back around to technology and innovation as U.S. producers’ strong point. “Product development and innovation is not a silver bullet, but it’s still the strongest thing we have to compete,” he explained.

Wrapping up, he concluded, “We are in very good shape in this country, overall. Having said that, we do face global challenges larger than every before and that’s not going to change.”

“The wave of Chinese competition” likely to challenge U.S. window and door manufacturers was examined by Michael Collins, an investment banker specializing in the window and door industry, as well. His talk was based on a Webinar presentation his Chicago-based firm, Jordan, Knauff & Co., hosted last fall that attracted numerous window and door industry executives.

Collins outlined the low, moderate and high-risk segments of the U.S. industry that would likely be affected by Chinese imports. Those facing a high risk of losing business to Chinese competitors are companies making commodity products in large runs that are not particularly technology-dependent. Those with the lowest risk, he said, are producers that incorporate technology and innovation into their fenestration products, produce small runs or custom work and those that serve niche or regional markets. “[The Chinese producers] still don’t have a good understanding of the U.S. market,” he said.

Keynote speaker Frank Abagnale, an expert in the areas of forgery, embezzlement and secure documents, and the man whose identity scams were the inspiration for the book and subsequent movie “Catch Me If You Can,” amused attendees with his life story and a moral message encouraging parents to cultivate a loving environment for their children. He also delivered a powerful message about identity and document protection, both for individuals and businesses. He has served as an FBI consultant for more than 25 years and has encouraged financial institutions, corporations and individuals to take identity protection very seriously. He pointed listeners to his Web site, www.abagnale.com, for fraud prevention information.

COMING UP
AAMA organizers reported that more than 425 attendees registered for the meeting. The next gathering is scheduled for June 10-13 at the Hyatt Regency in Huntington Beach, CA. For more information, visit www.aamanet.org.