Shutter Outlook 2003
If the last five years was an exciting time to
be in the custom shutter market, just wait until the next five years.
There’s
little question that the market for shutters is riding high on a cycle
of keen interest and enormous growth potential. Whether they are made
of solid wood, vinyl, composite or a combination, the market for custom
shutters has been nothing short of a phenomenon.
Will it last? Our experts think so. We asked key players in shutter
manufacturing and fabrication for their thoughts on why the market
is so hot right now, and what the future holds. From their responses,
the next five years will be exciting, indeed.
ENGINEERED GROWTH
John Fitzgerald
Executive Vice President
Comfortex Window Fashion
www.comfortex.com
The growth in the shutter market is being driven by both an abundance
of fabricator supply and by demand from consumers seeking quality
and lasting value. Based on one report, there are more than 1,000
shutter fabricators in the United States. The population growth and
affluence in traditional shutter regions such as the Southeast and
Southwest also is fueling the growth in the shutter market.
Perhaps the fastest growing segment is the engineered wood segment.
The trend toward engineered wood shutters is similar to the trend
that has occurred in our industry in faux wood blinds over the past
five years. Consumers have become more educated about the benefits
of faux wood products in categories such as flooring, decks and other
household fixtures. The growth in the engineered wood shutter category
is also being driven by fabricators who are realizing the profit benefits
from easier fabrication and fewer environmental issues associated
with painting.
The growth in engineered wood shutters is expected to continue for
at least five years as the product offerings in the marketplace improve
and consumer acceptance grows. Given these trends, Comfortex has enjoyed
strong demand for the recently introduced Woodwinds engineered wood
shutter.
VERSATILITY DRIVES THE MARKET
Joyce M Ryan
Shutter Sales Manager
Mastercraft Shutters
www.mastercraftindustries.com
The growth rate of the shutter market is ever increasing among today’s
homeowners as they rediscover the natural beauty and flexibility
offered by shutters to enhance any décor.
Consumer awareness of adding value and sophistication to their homes
has helped shutters become a first-rate choice. As windows become
larger because of their energy efficiency homeowners can choose
shutters to control lighting with larger blade louvers and expose
more view.
Versatility in styles, colors and wood species drives the marketplace.
It is important to meet unique specifications for all architectural
needs. Customer satisfaction needs to be taken to a new level of
dedication with quality, value and exceptional customer service.
Wood is still the natural selection because of the feeling of warmth
it can create, and it is a renewable energy source. Vinyl products
are becoming popular as another option.
Mastercraft Industries takes pride in its 55 years of shutter experience
and even with a sluggish economy we plan to go forward with a full
line of products to meet the needs of the future. We see only an
upward climb of the ever-timeless shutter industry. Our factory
is striving to handle larger capacities more efficiently.
COMFORT, STYLE, TASTE
Ron Cogan
Finecraft Shutters
www.finecraftshutters.com
The growth in the shutter industry can be attributed to a number of
important factors. The first being, as I wrote about in last year’s
editorial (see D&WC, November 2001, page 30), a wider availability
in dealing with regional wholesalers who honor the relationship as
a partnership. Dealers have found a comfort level in professional,
knowledgeable and loyal vendors. Knowing that the company that you
will be placing your high-end custom made shutters order with has
the capabilities, as well as the care, to properly examine your orders
so they are made the correct way, with quality and a timely fashion
is extremely important.
The second factor that I believe to be increasing the popularity of
shutters is the clean and classic look of fine craftsmanship on your
clients’ windows and in their homes. It’s a window treatment
that is manufactured to the exact color that your client would like
(rather than choosing from a limited color selector), to the exact
style they would like (different choices of rails, stiles, louvers,
tilting mechanisms, frames, installation methods, etc.), and to the
exact specifications of their windows (circles, octagons, hexagons,
trapezoids, eyebrows, French doors, and even perfect squares).
Last, but not least, a wood shutter conveys affluence, warmth and
good taste at a very affordable price. Why would your clients want
anything else when they can get everything that they ever wanted in
a treatment at a price that fits their budgets?
AFFORDABLE VALUE
Moe Rouzati
President
Aveno Window Fashions, Inc.
www.aveno.com
Interest in shutters is increasing because shutters are becoming
more and more affordable for homeowners—especially alternative
models like Aveno’s Thermowood™ foam PVC shutter. Although
shutters present some initial investment, they are ultimately worth
the value in reduced heating and air-conditioning costs due to their
insulating construction. Additionally, since shutters are fixed
window coverings, they can actually increase the resale value of
a home.
Woodcrest® wood shutters and Thermowood™ foam PVC shutters
are custom-made with the care, attention to detail and artistry
that has become the hallmark of Aveno Window Fashions, Inc. One
of the reasons that the American shutter market remains strong is
that companies based in the United States carry the shutter production
experience proven to yield higher quality, more durable window coverings
for the buyer.
The growth in the shutters market will prove to be long lasting
and continuously steady, as long as manufacturers are persistent
in providing innovations that make shutters more versatile. At Aveno
we can already observe a noticeable trend in unique shutter applications
such as triple bypass track systems, skylight systems and two-toned
shutters that offer a stained wood finish to compliment interior
décor while facing a painted finish to the outside in order
to meet neighborhood requirements. Looking toward the future, Aveno’s
research and development team is focusing on revolutionizing both
shutter form and shutter function to meet the growing needs of modern
consumers.
RETAILERS’ NEEDS WILL CONTROL DISTRIBUTION
Craig Robinson
Vice President, Sales
Gilmore Enterprises
www.gilmoreenterprises.com
We see the demand for all types of shutters driven by the manufacturers.
As price pressures escalate within their existing product categories,
manufacturers are looking for areas of greater profitability. Shutters
have been a category fulfilled by local craftsmen. The “new”
manufacturers have a vested interest in removing the fear of selling
shutters to their distribution channels spawning a new wave of shutter
salespeople.
New technologies have made shutters more affordable. Ever since
the introduction of custom-made vinyl in the early ’90s, traditional
manufacturers have been trying to bridge the gap between their time-consuming,
laborious processes and the economical speedy techniques of vinyl.
Today, shutters can be made of all types of wood, engineered wood,
vinyl or a combination of these in an effort to combat an erosion
of profit and market share.
We see new technologies evolving to allow new competitive advantages.
For the traditional and emerging shutter manufacturers, our pre-finished
basswood will speed up wood shutter manufacturing to eliminate the
time and economic advantages vinyl has exploited. Fabricators will
be able to compete with Asian pricing; however, they will do that
with the distinct advantages of service and rapid delivery times.
Consistency of product, service and swift delivery are elements
that have never converged on the wood shutter industry. Our pre-finished,
domestic basswood produces all three. Smaller shop space, fast production,
less labor and improved cash flow are the result.
We view the next five or so years as a phenomenal growth period
for the shutter category. It appears that retailers everywhere are
more comfortable selling shutters versus collecting a referral commission
from the local shop. With retailers controlling the distribution
channel, a sorting out of technologies for what is considered the
best resource and a demand for the best service, quality and price
will result.
AUTOMATED MACHINERY INCREASES PROFITABILITY
Lance Reed
President
G&L Technologies Inc.
www.gandltech.com
The shutter manufacturing industry is very competitive. Staying
ahead of the competition in the marketplace is a key factor for
successful growth and profitability. By increasing manufacturing
efficiency and marketable product quality you will assure your company
maintains its profitability.
Manufacturers are faced with new competition, rising material and
labor costs and price conscious consumers, not to mention an uncertain
economy. Investing in manufacturing automation is a strategic step
that will have a positive long-term impact on your bottom line profits.
Automation will improve both your efficiency and product quality.
Delivering a higher quality product to the consumer at a competitive
price combined with a quick delivery time is the formula for successful
sales.
THE SUBTLE PSYCHOLOGY OFSHUTTERS
Richard Buchanan
Publicist
The Shutter Mill, Inc.
The phenomenal growth in the market for shutters derives from a
more subtle psychology than vanity.
The origin of the louvered shutter is not precisely known, but hinged
window coverings have been architecturally present for many generations.
Primitive examples exist in the antiquities of many European and
Latin cultures. Therefore, to simply call shutters a tradition produces
an exaggerated understatement. Today, there is a subliminal yearning
for traditions that hearken to mind and heart the simplicity and
relative tranquility of past times. Shutters are one of those traditional
icons that never weary in provoking nostalgia.
While today’s decorative shutters are more suited to shutting
out light than achieving security, this feature may serve a second
subliminally deep-seated desire to shut out the sights and sounds
of the cacophonies that identify modern societies. Shutters do this
both functionally and symbolically. Thus, the reason for continuing
fantastic growth in the market for shutters of all kinds!
The market has been and will continue to be headed toward the shutters
of maximum traditional value: louvered, wooden, custom shutters
of high quality. It’s a market that defies quantification.
How long will this growth last? As long as people value tradition
and seek solitude and security in their castles. That’s how
long shutters have been, and will be, in demand.
MODERATE TO SIGNIFICANT GROWTH
Bill Gaul
President
Gulf Coast Window Covering
www.gcwc.com
Even with the softer economy, shutter sales should continue to
grow in 2003. With any upscale product such as shutters, the higher-end
consumer will still have the dollars to suggest this type of purchase.
The classic look of shutters in 2 1/2- and 3 1/2-inch louvers
is stronger than ever. Wood shutters will remain strong and competitive
in the Southwest with vinyl shutters, such as the Palm Beach by
Hunter Douglas, continuing to increase in market share.
Overall, the forecast is to see moderate growth in vinyl shutter
sales during 2003 and significant growth with the new Heritance
Hardwood Shutter by Hunter Douglas.
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