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Shutter Outlook 2004
Double-digit growth is anticipated as consumer choices
increase and dealer competition rises.
After what may have been a slow year for many businesses, the window
coverings industry can find reason to celebrate: the demand for
custom interior shutters has grown significantly since this time
last year. Our panel of experts—manufacturers and suppliers
of shutters made of solid wood, composites and vinyl—have
seen it, and expect it to continue, with the market growing by
an anticipated 15 percent by some accounts.
That doesn’t mean dealers selling shutters can relax, however. Competition
is heating up, especially with imported products entering the market, so more
than ever before, developing a relationship with a trusted manufacturer, keeping
an eye on costs and staying current on product knowledge will be essential to
survival. Here’s what our experts have to say.
MOVE AWAY FROM PRICE
Bill Gaul
President
Gulf Coast Window Covering
Houston, TX
www.gcwc.com
The demand for vinyl, composite and wood shutters has grown significantly from
last year. We estimate the U.S. shutter market sales to be over $646 million
this year with hollow vinyl making up 13 percent of the total, composite 12 percent
and the remaining 75 percent in wood. We believe the overall market is increasing
by 15 percent per year.
To be successful in this market specialty retailers and designers should look
for a shutter that allows them to differentiate their product offering from all
of the other commodity-type shutters on the market, and one that allows them
to actually talk about things like variety of choices, services, training, name
brand recognition, warranty, etc. By doing so, retailers and designers move the
consumer away from price discussion and allow them to upgrade their sale and
profit dollars.
Recent innovations are making shutters a more versatile and marketable product,
such as the new Heritance® hardwood shutters from Hunter Douglas. They are
quality, name brand custom shutters that can be installed in less than four weeks.
The unique dovetail joint construction that offers a fine furniture construction
along with the innovative finishing process for an upscale look and uniformity
from panel to panel makes these new hardwood shutters a very marketable product.
AN EYE ON COSTS, IMPORTS
Larry Gardner
President
PolyDesign Shutters
www.polydesign.com
I have spent the past few months traveling around the Southeast looking for expansion
property for our company. I have seen firsthand what we are hearing in the news
media. Our manufacturing base is being exported. I have seen building after building
emptied by manufacturing flight. I have stated before and I still stand by the
belief, shutter fabricators that have labor-intensive shutter programs will feel
the pinch from imports. Fabricators who are efficient and have little labor cost
per square foot will survive and thrive next year.
Quality shutters are a lifetime investment. They have been the strongest high-end
window treatment for the past few years and the long-term future is still very
bright. Our PolyDesign shutter program is ideally suited to compete with imports
due to our low labor cost per square foot. It is important for us to maintain
and improve our fabricators’ margins without lowering our product’s
quality standards with lesser quality materials as with many imported shutters.
This next year we are introducing programs to help our fabricators purchase new
machinery and improve their production. We also are looking at other alternatives
to help improve margins for our fabricators because we believe our success depends
on their success.
KNOWLEDGE AND TRUST
Christine Kane
Brand Manager for Heritance® hardwood shutters
Hunter Douglas Window Fashion
Has the demand for shutters grown from just last year? Absolutely. Based on continued
growth and interest in a quality wood shutter, Hunter Douglas has recently launched
Heritance® hardwood shutters.
Specialty retailers and designers should look for a supplier that offers product
quality, brand credibility and a service program that helps build their business.
Dealers should be aware that there are some suppliers that are in direct competition
with them, selling shutters both wholesale and retail.
When assessing product quality, dealers and designers should evaluate the shutter’s
construction, finish, consistency and component sizes, as well as how the wood
is treated and tested to prevent future warping and twisting.
Brand recognition and credibility are other criteria dealers and designers should
look for in a supplier. Shutters are one of the most expensive window covering
options for consumers. To provide consumers with that needed “comfort factor,” dealers
and designers will have more credibility selling a nationally branded product
that consumers know and trust.
Outstanding service is also essential. Dealers want a dependable suppler that
understands their needs and is interested in partnering with them to ensure mutual
growth through incentives, such as marketing support, co-op advertising, training,
installation resources and quick turnaround. The consumer needs to know that
the product comes with a warranty worthy of their investment. Dealers and designers
also want to be sure they are not going to be left “holding the bag” with
warranty issues five, 10, even 20 years down the road.
To meet these important criteria, Heritance hardwood shutters are built using
the finest dovetail construction. As the only nationally branded and marketed
wood shutter available, they provide consumers with confidence in a name they
know and trust. Unlike any other supplier, Heritance is offered with a lifetime
limited warranty.
Utilizing unique finishing technology equipment that ensures consistency, strength
and beauty, Heritance hardwood shutters delivers a finish that is far superior
to the industry standard. Add to this the dovetail construction and you have
a premium shutter product that commands a premium price and translates into greater
profit margins.
VERSATILITY DRIVES THE MARKET
Tammy Sevrude
Mastercraft Shutters
www.mastercraftindustris.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
QUALITY PRODUCTS, TRAINING
Elmar Window Fashions
www.elmarinc.com
Elmar Window Fashions specializes in shutters! With a separate manufacturing
facility exclusively for producing Heritance hardwood and Palm Beach Custom shutters,
Elmar is committed to delivering quality products within a two to three week
time period. Plus, Elmar has a dedicated shutter customer service department
staffed with experts who are committed to your specific needs. These individuals
are available to answer your questions, generate quotes and provide assistance
to help make selling shutters virtually effortless.
Elmar continually holds thorough shutter training seminars that focus on product
knowledge, installation, sales tips and marketing. These hands-on seminars range
from one to three days and focus on building your understanding of all aspects
of selling and installing wood and vinyl shutters. Training sessions are held
throughout the country and at Elmar’s corporate headquarters in Willow
Grove, PA.
Plus, Elmar Window Fashions is pleased to announce the development of a Certified
Installer Base throughout the country. Just give Elmar a call to find an installer
in your area for both Heritance hardwood and Palm Beach Custom shutters. All
of these certified shutter installers have completed a comprehensive training
program and have been hand selected by Elmar, allowing you to sell with confidence.
DEMAND UP
Viken Ohanesian
U.S. Polymers
www.us-polymers.com
The key to success for retailers today is to have a quality product and a unique
service that differentiates them in the marketplace from all their competitors.
We’ve seen a great increase in the calling for our ShutterSMART product
line. One reason is the overall increase in shutter demand, but the more significant
reason is that more retailers are learning about how ShutterSMART can help them
make more money.
Once a consumer is convinced of the benefits that a retailer’s unique product
and service can deliver, automatically sales start growing and selling prices
stay higher, which means retailers make more money. ShutterSMART gives retailers
just that with its high-quality vinyl clad wood shutter that is unique in the
marketplace. Plus we give our retailers awesome service with our two-week lead
time. The result: The demand for ShutterSMART is up, our network of exclusive
fabricators is growing and our retailers truly believe in the product and continue
to sell more. The year ahead should be unprecedented for ShutterSMART and all
our business partners.
ASK THE RIGHT QUESTIONS
Ron Cogan
V.P. Marketing & Business Development
Finecraft Custom Shutters Ltd.
www.finecraftshutters.com
The demand for shutters has grown tremendously and with great anticipation for
value. The growth in business has been generated by educated designers asking
the right questions (quality of construction, finish, features and service).
Finecraft has geared our manufacturing technology to meet the growth and anticipation
for continued growth.
Specialty retailers and designers should look for companies that offer them the
full value package. They should ask discriminating questions such as:
•
How are your shutters constructed?
•
Are your shutters a slide-in construction, or are they built with true craftsmanship
to withstand the harsh environment of weather that sits on the window where the
shutters are installed?
•
How are they finished?
•
Are the shutters rough all over, are the problem areas treated (push rod, mouse
hole, inside stile, etc) or are they smooth as silk with a grand piano finish?
•
What type of selling tools do you offer?
•
Do you only sell off a printed spread sheet by a square foot cost?
•
Do you charge me for multiple panels?
•
Do you have an informative color sales catalogue that helps me with all aspects
of shutters?
•
Will you give me grids like with blinds so I can easily discount and not have
to guess what my profit is going to be?
•
What type of marketing tools do you have?
•
Do you have sample books of some sort?
•
Do you only have little hand samples, or do you have a portable merchandiser
available to really impress the consumer?
•
Do you have local distribution on a national level that can service me locally
with a real person?
•
Where can I find a Finecraft distributor who can give me all the value above
today?
Recent innovations have made shutters a more versatile and marketable product.
They include: custom stains as well as paints, manuel or motorized tilt, center
or hiden push rod, child safety features.
SHUTTER EVOLUTION
Shane Brunell
Product Manager
Comfortex Window Fashions
www.comfortex.com
Possibly the oldest window treatment known to man besides curtains and draperies,
shutters have made an amazing resurgence in recent years. Perhaps it’s
the functionality, the fashion or maybe just the tradition. Whatever the case,
shutters of all kinds have been increasing in popularity at an unbelievable rate
and this past year has been no exception. Comfortex has seen tremendous growth
in this category and we have forecast double digit growth to continue in 2004
and 2005.
One of the biggest reasons for recent growth has been product innovation. New
products, or in this case, a new twist on an old product, always generates excitement.
New louver styles, new applications and, most importantly, new materials have
played enormous roles in recent shutter evolution.
Many more choices are now available to consumers, each with its distinct characteristics
and unique attributes. The oldest, and still with the lion’s share of the
market, is wood. Wood is versatile, beautiful and available for many applications
and in many different finishes. High-quality wood shutters with a high-quality
finish are a beautiful option, but are almost always the most expensive choice
for consumers.
Several variations of PVC plastic shutters have been introduced in recent years.
Generally, most PVC shutters offer a good quality product with a good surface
finish at a much lower price than wood. Because it is far less expensive for
manufacturers and fabricators, they can pass the savings on to the dealers and
consumers; however, PVC plastic shutters seem to lack the character and warmth
of genuine wood products.
A relative newcomer to the shutter market, wood composite materials combine some
of the most favorable attributes of both wood and PVC to create a great new option
for consumers. Like PVC, wood composites are generally less expensive, but still
offer the expensive look and feel of 100 percent wood products and in many cases
outperform both wood and PVC. In addition, Comfortex’s Woodwinds® wood
composite shutters offer one of the finest quality finishes in the industry today,
making it one of the best value products currently available to consumers in
this category.
So what will the future have to offer?
You can bet on a continued increase in consumer interest in shutter products,
increased competition and many new interesting innovations over the next few
years. All will continue to excite both dealers and consumers. I know at Comfortex,
we already have several new tricks up our sleeves and can’t wait to share
them with the industry in the near future.
IT’S ALL IN THE DETAILS
Amir Moradi
Brand Manager for Palm Beach™ Custom Shutters
Shade-O-Matic Ltd.
The purchase of shutters is considered an investment because of their high dollar
value and the fact that they should last a long time. It is not unusual to see
homes with shutters that are 10 to 15 years old. Also, as the market matures
and there is more competition and price pressure, retailers and designers should
be closely scrutinizing their shutter suppliers to find the ones that are capable
of supplying the best quality backed by strong brand support, which consumers
and dealers will be able to count on many years down the road.
Dealers also should pay close attention to the details of the features and benefits
of the shutter when evaluating the quality issue. A premium grade of raw materials
used in the manufacturing in addition to reliable and high-end production methods
result in a superior shutter.
All of the above are incorporated into Palm Beach Shutters Custom Shutters,
where an extra premium Poly-Satin™ compound is used throughout the product.
They also are all manufactured in state-of-the-art facilities by experienced
staff
for an outstanding shutter product backed by the Hunter Douglas brand name.
Palm Beach Custom Shutters were introduced into the market with many unique features
that have made it a leader. It was the first product with the patented gear-driven
louvers for one-touch control, the equal spaced computer positioned louver, the
Dura-Link attachment that connects the tilt bar to the louver without any staples,
and an advanced design that allows the louvers to close completely in both directions.
As the market matures there will be more features added to these shutters to
make them even more versatile and responsive to market demands.
READER SURVEY: TRADITION
OF EXCELLENCE >> |
