AWNING DIVISION by pengxiang

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									                PROFESSIONAL AWNING MANUFACTURERS ASSOCIATION
                        Two Year MARKETING/BUSINESS PLAN
                              June 1, 2006 to May 31, 2008


EXECUTIVE SUMMARY
With an economy that has continued to grow over the last 3 years, there is greater potential for the
sales of awning products. With a movement toward outdoor living, porches, and a desire among
consumers for more useable space, awning fabricators need to take advantage of a new resurgence of
interest in their products.

The 2006-2008 plans for the Professional Awning Manufacturers Association (PAMA) of the
Industrial Fabrics Association International (IFAI) is a commitment to continue to assist members and
market the industry to the community at large. The following goals have been established for 2006-
2008. The long-term objectives are to Educate Inside, Educate Outside and to Promote Everywhere.
At every opportunity, PAMA’s name and logo will appear on all materials to help establish the
association’s identity and aid in its mission.

Members can expect tangible benefits from becoming a member of the PAMA. Tangible benefits
include:

    1. Articles and press releases on the benefits of awnings published in national magazines and
     television clips
    2. Educational workshops and symposia
    3. Semi-annual newsletter
    4. Marketing tools for increasing sales to architects and consumers
    5. National advertising opportunities
    6. Networking
    7. Assistance on building code issues that affect the industry.
    8. Discounts for association publications and events.

To bring about the benefits, PAMA will:

    Develop a stronger financial base to support existing programs and enhance and/or develop
     new programs for its members.
    Create an awareness of PAMA and the awning industry to the community-at-large.
    Provide members with on-going learning opportunities for continued professional growth.

A. MISSION STATEMENT

Currently, the mission statement of PAMA is: To establish PAMA and its members as the preferred
first source for awning and awning related products and services to end users.

The current objectives of the division are as follows:

   ●    Promote, educate and implement programs to advance the fabric awning industry.
   ● Identify issues of common concern to the awning industry and take a pro-active role in
     implementing and seeking solutions for those concerns.

   ● Raise general awareness of awnings as an image-enhancing, energy saving and attractive
     addition to a residential or commercial structure.

   ● Provide a central resource for the dissemination of information relating to the techniques,
     materials, standards, regulations, markets and tax information for the awning industry.

Strategies include:

Educate Inside: Trade (Sellers of Awning Products and Services)
        Provide marketing tools for its membership
        Create continuing educational opportunities that will benefit the awning manufacturer
        Establish criteria for proper design, fabrication and installation of products.
        Provide leadership and guidance to educate membership on how to effectively market their
           companies and
        products

Educate Outside: Professional Market

          Establish PAMA as the First Source for information regarding awning design and
           specifications
          Provide information and testimony to building officials, planners and code officials on an
           ongoing basis
          Promote product to design professionals through attendance and/or advertising at
           professional trade shows, Fabric Architecture magazine and other opportunities
          Promote the benefits of member products through the education of building, zoning,
           planning and code officials
          Create informational awning seminars and offer professional organizations the opportunity
           of utilizing this service.
          Develop an advertising campaign and implement it through trade shows, professional
           organizations, printed and electronic communications
          Use branding in all promotional and marketing activities

Promote Everywhere: Consumer

      Develop an awareness campaign targeted to consumers by use of pull through marketing
       techniques
      Sell ―lifestyle‖, image enhancement/prestige and benefits of awnings
      Continue to update and upgrade the website
      Develop marketing communications tools and implement them in strategic ways
      As budget allows, consider tie in with advertisement in appropriate magazines.
B. HISTORY

On September 12, 1912, fourteen manufacturers of canvas and awnings from the central part of the
U.S. met at the Brown Palace Hotel in Denver. These canvas men formed a new trade association –
the National Tent & Awning Association. The manufacturers had decided to establish the trade
association initially to set standard weights and prices for canvas products, action which today would
be considered illegal. They were also seeking to form a unified voice to counter the price setting
strategies of their suppliers, the cotton mills.

The office of the new association was located in the Endicott building in St. Paul, Minnesota. One of
the purposes of the headquarters office was to house the association’s new national industry trade
magazine, National Tent and Awning Manufacturer’s Review, which began in 1915.

As the National Tent & Awning Association grew in membership, the annual convention of the
organization became a focal point of association activities. Cities hosting the conventions in the early
years included Detroit, San Francisco, Kansas City, Boston and New York.

In 1936, the association changed its name to National Canvas Goods Manufacturer’s Association and
in 1957 the association changed its name to Canvas Products Association (CPAI). The magazine
followed shortly and changed its name to Canvas Products Review.

Many new programs were instituted during the early 1960s and 1970s. These programs were designed
to modernize the association and meet the needs of the changing membership. In 1968, the association
formally organized its first division, the Industrial Fabrics Research Division. It wasn’t long before
additional divisions were formed for manufacturers of rental tents and awnings.

In 1967, the Awning & Custom Products Division was formed which is now known as the Professional
Awning Manufacturers Association (PAMA). In 1966, the magazine changed it’s name to Industrial
Fabric Products Review. Today, the magazine name is Review.

A few of the original companies who started the trade association in 1914 are still members of PAMA
and they are: The Astrup Co, John Boyle & Co., Peoria Tent & Awning, Wausau Tent & Awning.
The following original companies were acquired by others and also continued their PAMA
membership: Carnie-Goudie Mfg. Co. now Goodwin-Cole Co. Inc.; C.J. Hoigaard Co. now
Hoigaard’s Custom Canvas; Scott-Rawitzer Mfg. Co. now Acme Awning Co., Sioux City Tent &
Awning now Mullin Awning & Siding; Southern Tent & Awning Co. now Nashville Tent & Awning
Co., Inc.; George B. Carpenter Company was bought in 1937 by partners B.H. Hunzinger and Henry
Smith, whose sons later opened separate business: Evanston Awning and the Canvas Smith.

The popularity of awnings and canopies has grown dramatically thanks to improvements in fabrics and
other components.

Dyed or painted cotton canvas has been replaced by acrylics, polyesters and other synthetic fiber
fabrics that have a much longer life, retain color far longer, are more water repellent and are superior in
every way.

Galvanized pipe has largely been replaced by a wide range of coated steel and aluminum tube that is
available in a wide range of sizes, shapes and alloys. This tubing is far easier to fabricate into more
decorative and unique shapes than was ever possible with pipe.

Advanced chemical coatings have improved the life and appearance of both frames and fabrics.

Computer aided design and computerized fabrication equipment have improved product quality and
manufacturing productivity making awnings more attractive and affordable than ever.

Financial History

The division’s membership, in addition to IFAI’s membership, is $100 per company for Silver
membership, $200 for gold membership, $300 for platinum membership. Currently, revenue is raised
through division membership dues, advertising, sponsorships and material sales.

Overall, PAMA members contribute to IFAI from the following areas: Advertising, Material Sales,
IFAI Expo and Membership. PAMA has a solid revenue base.

Financial Planning and Reporting

Each year, the PAMA plans and prepares a detailed budget, which is designed to generate a financial
surplus. This is accomplished by estimating all income and expenses for every project. For the year
ending May 2006, the estimated projected net is $ 8,500.

(2006 AS OF May 31, 2006)

YEAR                INCOME               EXPENSE             NET                  ENDING NET
                                                                                  ASSETS

2006                50,400               41,443              8,957                131,262
2005                66,561               41,018              25,543               106,682
2004                46, 697              37,337              9,360                77,270
2003                76,630               70,650              5,979                67,910
2002                74,092               62,518              11,574               61,931
2001                83,468               61,705              21,764               50,359
2000                90,441               76,569              13,879               42,467
1999 (6months)      48,687               41,326              7,371                14,723
1998                65,643               88,400              (22,757)             7,105
1997                86,291               100,405             (14,114)             27,405
1996                66,872               68,449              (1,573)              43,975
1995                73,305               69,363              3,941                45,549
1994                60,253               48,773              11,480               41,607
1993                64,203               67,660              (3,456)              30,127
1992                64,279               64,660              (380)                33,584
C. STRUCTURE

 Board
The group shall operate as a division of IFAI and shall function under its own bylaws in accordance
with the division operating guidelines and bylaws of IFAI. The PAMA board of directors is
empowered to establish an annual division assessment and to make other financial decisions on behalf
of the division.

Board of Directors
The board of director’s function is to govern PAMA in accordance with the division’s and IFAI’s
bylaws, as well as establishing division programs and services. The PAMA board has 14 directors,
who are under leadership of a chairman and vice chairman.

PAMA Managing Director
The Managing Director plays a valuable part in assisting the board and acts as a resource for the board.
The Managing Director needs to be familiar with all aspects of board projects and activities. The
Managing Director needs to offer suggestions, provide new information, raise questions and be an
involved player.

Committees
The chairman of the division can appoint committees and chairmen as needed. There are two standing
committees and they are: Bylaws Committee and Nominating Committee. Beside these standing
committees, there are currently two other committees, Marketing Committee and Education
Committee. The following are descriptions of the current committees.

2006 COMMITTEE PURPOSE AND STRUCTURE

Marketing Committee
The purpose of this committee is to market the association to its membership, potential association
members and the community at large through promotions, trade shows, publications, seminars and
other vehicles. Vehicles of implementation can include press releases, advertisement, print, electronic
media and others. This committee is responsible for planning, promoting and publishing information
in consistency with the marketing plan. As marketing projects are identified, they will be assigned to a
task force within the marketing committee.

Education Committee
The purpose of this committee is to identify the needs of the industry and the community at large and
direct the preparation, development and implementation of educational programs. Education programs
are designed for the association membership, potential association members and appropriate target
markets. This committee is responsible for implementing educational programs consistent with the
marketing plan.

By-Laws Committee
This committee is responsible for annually reviewing and updating the governing document for the
association.
Membership Committee
The purpose of this committee is to increase and maintain current member of PAMA through
campaigns.

Nominating Committee
This committee is responsible for developing a list of interested names of individuals who want to
serve on PAMA’s board of directors, selecting and nominating individuals to the board of directors.
This committee is charged with the vice-chairman nomination.

Task Forces
As projects are identified from the committees, a task force will be created to implement the project.
The task force committee chair will report to the appropriate committee.

Financial
This area will be the consolidated responsibility of the chairman, vice-chairman and treasurer.
Committee chairs have the responsibility of preparing the yearly committee budget. The treasurer will
give a report at each board meeting and the Chair will provide the treasurers report at annual business
meeting.

Open Forum
While not a formal committee, this informal exchange of ideas has proven to be a strong source for the
board. Board members not involved in a committee meeting gather to discuss--in round-table format--
those ideas brought to their attention by the membership, as well as their own ideas for the association.
New ideas and suggestions for improvement are often generated during these open forums and are
carried to the closing board of directors meeting.

D. MEMBERS

Membership has grown over the last 2 years. The goal for 2006 is to increase membership to 340 by
PAMA year-end, which is May 31, 2006.

* Note: data for 2006 is of May 27, 2006
 '88        253             35.3%
 '89        260              2.8%
 '90        279              7.3%
 '91        179            -35.8%
 '92        192              7.3%
 '93        231             20.3%
 '94        224             -3.0%
 '95        260             16.1%
 '96        263              1.2%
 '97        282              7.2%
 '98        293              3.9%
 '99        311              6.1%
 '00        322              3.5%
 '01        317             -1.6%
  02        325             2.50%
  03        317            -2.50%
  04        308            -2.80%
  05        325             5.50%
  06        341             4.92%
                                                '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01   02


                                                                                     Year




2006-2008 Strategies:

Membership Retention:
Contact with new and renewing members is very important. Together, the division manager along
with the board of directors, make renewal calls to members. Contacts may include: newsletters,
personal note on membership letter, personal visit and/or telephone call.

New Members:

New membership strategies include:

       A.         Managing Director recruiting new members through personal contact, telephone or
                  presentation at local meetings.
       B.         Managing Director and Membership Committee members’ personal calls to members
                  who have canceled in previous year and follow up on leads generated from IFAI and
                  division members.
       C.         A membership campaign that includes faxing, trade show contact, promotions to IFAI
                  non-PAMA members, strategic calls by board members or PAMA members.
       D.         Workshops and trade show displays at Zone meetings.




MARKET OVERVIEW
          The U.S. economy is in its fifth consecutive year of economic expansion, and real GDP is
           expected to rise an additional 3.5% in 2006. Additionally, over the past four years labor
           productivity (output/hour) has increased and unemployment has decreased (currently at 4.7%),
           both of which indicate a healthy economya.

          Construction spending increased 7.45% from January, 2005- January, 2006b.

          GDP growth should begin to slow in the second half of 2006 and should continue to decline
           slightly in 2007. This could translate into a slowdown in house price appreciation, home sales,
           and housing productionc.

          Long-term interest rates have returned to their mid-2004 levels. David Seiders, chief
           economist at the National Association of Home Builders (NAHB), believes this will lead to a
           there will be modest increase in long-term rates over the rest of the yeard.

          As a result of the housing boom of the past decade, there has been an abnormally large share of
           national employment growth in housing and housing-related industries, so job losses in such
           areas could be tough to absorb in other industriese.

          Investors and speculators that drove the single-family and condo market booms in 2005 will be
           more cautious in 2006-2008, as buyer demand might have been overestimatedf.



       2005 was a very good year for home construction, with overall gains of 5% (versus 2004).

          Regional trendsg
              o The South experienced the most growth in US market share in 2005:




a
    NAHB, Eye on the Economy (03/08/2006): http://www.nahbmonday.com/eyeonecon/textonly/2006-03-08.html
b
    U.S. Census Bureau News: http://www.census.gov/const/C30/release.pdf
c
    NAHB, Eye on the Economy (03/08/2006): http://www.nahbmonday.com/eyeonecon/textonly/2006-03-08.html
d
    NAHB, Eye on the Economy (03/08/2006): http://www.nahbmonday.com/eyeonecon/textonly/2006-03-08.html
e
  ―Industry Forecast 2006.‖ Buildings: January 2006: http://www.buildings.com/Articles/detailBuildings.asp?ArticleID=2893\
f
  Buildings: January 2006.
g
  ―New Residential Construction in January, 2005.‖ U.S. Census Bureau News (Feb 16, 2006).
http://www.census.gov/indicator/www/newresconst.pdf
                                             New Housing Starts By Region 2005 (2004)




                                                                             Northeaset
                                                                              9% (9%)

                                                           West
                                                         25% (26%)
                                                                                        Midwest
                                                                                       17% (18%)




                                                                      South
                                                                    49% (47%)




                                                     Year-on-year changes in housing starts (2005-04)




                       TOTAL




                         West




                        South




                     Midwest




                    Northeaset



                               0.00   1.00    2.00        3.00      4.00      5.00      6.00     7.00   8.00   9.00   10.00



         o Additionally, out West there was an increase in the number of builders with higher
           inventory at the end of the year, indicating a slow down in consumer demand for
           housing.
         o The top five areas for new housing contraction in 2005 were Atlanta (GA), Phoenix
           (AZ), Houston (TX), Dallas (TX), and Riverside (CA).


Construction of residential homes is expected to decline 6-8% in 2006, led by declines in single-
                                        family homes.

     Single-family home starts are projected to decline 6% in 2006. The NAHB single-family
      Housing Market Index held steady in Jan and Feb (2006), while the index of applications for
      mortgages to buy homes has continued to decline since the high in Sept, 2005. The inventory
      of new single family homes for sale reached a record level in January 2006, and the length of
            time a house sat on the market increased to 4.5 months. However, prices have continued to
            creep upward and expected to be 13% higher in the upcoming year, driving the Affordability
            Index downh.

           Multifamily home starts are projected to rise an additional 1% in 2006 to a total of 475,000
            units. However, as the condo market begins cooling, the outlook is for multi-family home
            starts to decline at a more rapid pace than single-family home starts in 2007. Rental vacancy
            rates are declining (currently 9.9%), but not rapidly enough to spur new apartment construction
            starts. The top five areas for multi-family construction are New York City (NY), Miami (FL),
            Los Angeles (CA), Chicago (IL), and Houston (TX) i.


    Trends in homebuilding include greater square footage and more decks, patios, and balconies.

           Over the period of 1987-2004, the share of two story homes being built increased 6%. New
            homes are also growing in square footage, as more than 40% in 2005 were 2,400 square feet or
            more (median square footage in 2004 was 2,140)j.

           Amenities on new homes are also on the rise. From 2001-2003, the number of new homes
            being constructed with a porch, deck, balcony, or patio increased more than 2%, to a total of
            5.914 million (the data for 2005 has not been released yet by the Census Bureau). By 2003,
            83% of new homes were built with a porch, deck, balcony, or patiok.


    Growth in commercial construction is led by the hotel industry, which is expected to grow more
      than 15% in 2006. Overall, nonresidential construction spending is expected to increase to
                                               $257b.


                                    Some other events of 2005 worth noting…
           Hurricanes Rita and Katrina destroyed 356,000 homes, which is twelve times the number
            destroyed in any previous natural disaster. Most (85-88%) of the damaged homes were single
            family dwellings. Since many of the ―homeless‖ are still in hotels or do not plan to return to
            their home cities, it is difficult to make construction predictions in the hurricane damaged
            regionl.

           Smoking bans were on the increase in 2005, and city codes will likely need to be updated in
            2006 to accommodate them. As of January, 2006, 11 states ban smoking in indoor public sites.

                 h
                    Buildings.com (http://www.buildings.com/Articles/detailBuildings.asp?ArticleID=2893\), NAHB
                 (http://www.nahb.org/fileUpload_details.aspx?contentTypeID=3&contentID=45409&subContentID=42819), U.C. Census Bureau News
                 (http://www.census.gov/indicator/www/newresconst.pdf) & Building Team Forecast
                 (http://www.buildingteamforecast.com/index.asp?layout=articlePrint&articleID=CA6287723).
                 i
                   (Same as above)
j
    Housing Facts, Figures, and Trends (August 2005). NAHB: http://www.nahb.org/fileUpload_details.aspx?contentTypeID=7&contentID=20

k
    http://www.census.gov/hhes/www/housing/ahs/ahs03/tab1b6.htm
l
    NAHB Eye on the Economy: http://www.nahbmonday.com/eyeonecon/textonly/2005-10-05.html
       This means that almost 40% of U.S. citizens live in areas covered by state laws limiting
       smoking. Since many of the bans do not allow smoking within 25 feet of the door, there will
       not likely be a surge in demand for awnings/canopies. Instead, many companies are opting to
       build more permanent, lightweight structures away from their company doors.

The Awning Industry – Market information and Trends:

It is estimated that there are approximately 5,000 companies in the U.S. manufacturing awnings.
About 50% or 2,500 of these companies focus exclusively on manufacturing awnings. Most
companies are fairly small, between 10-25 employees, and are family owned business. They market
their awnings locally, usually within a 100-mile region. They may make other custom or small
production fabric products such as bags, covers, curtains, backpacks, umbrellas, signage, patio
and lawn furniture, window shades

They usually do the complete process – selling the product, measuring for installation, manufacturing
and installing the awning. They may even provide winter awning storage.

Fabric awnings are currently viewed as home improvements. The traditional window awning
continues to decline in popularity, while the retractable awning is becoming increasingly attractive.


The overall awning market is currently in a slow growth cycle that can be attributed to several
factors:

The industry is becoming more market-driven business. Several awning fabricators have
developed vendor to retailer relationships in an attempt to drive sales through mass
merchandising. Awning manufacturers and suppliers to the trade are becoming more customer-
oriented. External factors may have a positive effect on the awning and canopy business.

Population continues to shift toward the large cities. Mid-size cities with small employment bases
have declined in population. People are willing to pay a premium to live “closer in”, more
convenient housing, not wanting to spend their days commuting as their parents have.

In regional markets near hurricane stricken areas there is great potential for sales. In the South
Florida market orders are backed up six months out. In the gulf-coast areas of Louisiana
hurricane recovery is much slower and demand for awnings will follow general rebuilding
progress.

Residential Awnings

Our society is experiencing lifestyle changes that lend themselves to opportunities for awning
fabricators. Residential patios, decks, and gardens are becoming extensions of family living areas.
Awnings fit naturally with outdoor furniture and similar items to provide a natural hideaway from the
stress felt in such indoor spaces as home offices. Today’s home architectural design lend themselves
to awning use.

Hearth and Home Magazine conducted a research study on outdoor living products trends:
―A research study of the luxury market shows that consumers are more interested in spending money
on things they can do, not on things they can ownm.”
                    According to marketing consultant Pam Danzingern, customers want to buy an
                       experience, not more stuff.‖
                    What does this mean for outdoor living products?
                            Focus away from things like UV protective coating on seat cushions and
                               instead on how products enhance lives.
                            Focus groups from all areas of the country like/want an outdoor living
                               area.
                            Trend is for manufacturers to create ―ready-made outdoor living spaces‖
                               so that customers do not need to piece together the rooms themselves.
                                   o For example: complete outdoor rooms packages made of blow-
                                       molded plastic (a gazebo structure supported with steel and
                                       frames, outfitted with windows, screens, and doors).


In 2004 40% of awning fabric was for residential purposes.o

The awning business in the United States has remained for years a predominately custom-
manufacturing industry. Until recently most awnings and canopies were purchased the way a person
buys a custom-tailored suit; measurements were made, fabrics selected from a swatch book, and the
customer received a fitted product from a professional ―awning tailor.‖ Yet, just as not all suits are
purchased this way, more and more awnings are being mass-produced and sold through large retail
chains.

In a different Hearth & Homes study:
A survey of 2,638 specialty retailers of hearth, patio furnishings, and barbecue products were asked to
compare March 2006 sales to March 2005p
            Changes in PATIO PRODUCT sales:
                    Overall: +10%
                    Northeast: +3%
                    South: + 25%
                    Midwest: + 13%
                    West: -7%
                    Canada: +26%
            Changes in Retailer Sales of Patio Products (US & Canada)
                    Up: 45%
                    No change: 38%
                    Down: 17%
     Fiberglass Ribs and finishing poles for umbrellasq
            New trend for umbrellas it so make them out of fiberglass
m
  Mayer, Lisa Readie. ―Shopping the Show,‖ Hearth & Home: May 2006, p30.
n
  Mayer, Lisa Readie. ―Shopping the Show,‖ Hearth & Home: May 2006, p30.
o
  Awnings and Canopies, Data Textiles Snapshots; October 2004, p3.
p
  Hearth & Home: May 2006, p54
q
    Lassiter, Tom. ―Fiberglass Ribs & Finishing Poles, Hearth & Home: April 2006, pp46-51.
                         They are much more durable and nearly indestructible
                         Don’t require cords or cranks
                         Canopies are made of solution-dyed olefin or Sunbrella solution-dyed acrylic
                         ―Shade sails‖ (by Coolaroo) are made of high-density polyethylene, which
                          blocks 90$% of UV rays but does not trap hot air. These sails are mounted to
                          permanent or semi-permanent structures to create larger shaded areas.

SunSetter Awning CEO, Ido Eilam states that the Do-it-yourself (DIY) market is estimated at $50
million in 2005 in annual sales and incorporates close to 400,000 customers.

Lifestyle changes will have a positive effect on the residential awning and canopy segment. The
demographic support for this segment has been increasing boosted by growth in the number of
household headed by individuals aged 45-54 years old. The number of households for this age group
increase by 3.4 million during the latter half of the 1990’s and the 2001-2005 will see an additional 2.4
millions households. More striking is the shift of household headed by individuals 55-64 years old.
This group will surge by 3.5 million households during the 2001-2005 period followed by an
additional 3.4 million during 2006-2010.

According to the ERSI White Paper, ―Community Tapestry – The Fabric of America’s Neighborhoods,
March 2006:
      US population has increased by 17.3 million people from 2000-2006.
              This translates to 7 million new households.
      Average household income has increased 21% (2000-2006).
      Average home values have jumped 57% (2000-2006).r

These demographic trends imply an ongoing push for second homes, as well as continued support for
larger trade-housing with more amenities. Fifteen percent (15%) of homeowners in the 45 – 54 age
range own a second house for winter or summer getaways.

In focus groups conducted by NAHB Research, 46% of people desired a sunroom but were unable to
add it to their list of ―must haves‖. Outdoor living has taken on importance. Consumers desired homes
with screened rear porches and front porches, 83% and 60% respectively. Front porches were one of
the largest ―Essential/Must Have‖ features mentioned in the surveys.

The 2003 American Housing Survey indicates the number of homes and apartments with porches,
balcony, patios and deckss:
                      Attribute
                      % with a porch, balcony, deck or patio 92
                      Median Age                             35
                      Average household income               $97,600
                      Average Property Value                 $148,150
                      Average year home was built            1961



r
    ESRI White Paper, ―Community Tapestry—The Fabric of America’s Neighborhoods, March 2006.‖
s
    US Census Bureau, 2003 American Housing Survey.
The desire for energy efficiency was important. 20% of new homes had some sort of energy
management device installed with the home.

There are significant differences in the number of family members living in houses depending on their
ethnic background.


Commercial Awnings

    Growth in commercial construction is led by the hotel industry, which is expected to grow more
      than 15% in 2006. Overall, nonresidential construction spending is expected to increase to
                                               $257b.

In 2004 41% of awning fabric sold was for commercial purposes.t

           Hotel construction should expand to a total of 58 million square feet in 2006, fueled by an 8%
            increase in revenue per available room (REVPAR) in 2005. Spending is expected to jump
            nearly 30%, primarily on downtown luxury, airport-business, and resort hotelsu.

           Office building construction is expected to increase 9% in 2006 to a total of 167 million square
            feet. One concern is the price of materials, and the industry is being fueled by business in the
            mid-Atlantic, South Florida, and Pacific regionsv.

           Retail construction is booming for shopping centers but declining as a whole. In 2005,
            shopping center construction jumped nearly 40%, whereas shopping mall construction
            plummeted. Overall, the outlook for 2006 is a 5% decline in construction of retrial starts to a
            total of 283 million square feetw.

           Warehouse construction is expected to be stagnant in 2006. However, the supply shortages that
            occurred when industries lost inventory during the hurricanes of 2005 might induce distributors
            to store more inventory, which could increase the demand for warehouse constructionx.

           Education construction is expected to rise 6% (225 million square feet) in 2006. The trend is
            toward college construction, as enrollment in college is outpacing enrollment of K-12.
            Spending on educational construction should double to 14% in 2006y.

           Manufacturing construction should increase 15% in 2006z.



t
    Buildings.com Forecast & Building Team Forecast (http://www.buildings.com/Articles/detailBuildings.asp?ArticleID=2893\ &
http://www.buildingteamforecast.com/index.asp?layout=articlePrint&articleID=CA6287723,)
u
  Buildings.com Forecast & Building Team Forecast
v
  Buildings.com Forecast & Building Team Forecast
w
  Buildings.com Forecast & Building Team Forecast
x
  Buildings.com Forecast & Building Team Forecast
y
  Buildings.com Forecast & Building Team Forecast
z
  Buildings.com Forecast & Building Team Forecast
           Health care construction is expected to grow at 10% per year for the next 3-5 years. In 2006,
            construction for health care should increase to 107 million square feetaa.

A desire for branding of retail and service companies who market nationally has created new
opportunities and challenges for an awning industry which for more than a hundred years has focused
its marketing efforts on custom products in local markets.

As these manufacturers find themselves obtaining business that is beyond the local community, they
must seek alliances with the manufacturers and installers located in other parts of the country. It is not
uncommon for a manufacturer to make a product hundreds or even thousands of miles away from
where it is to be installed.

The staple-on system continues to increase due to commercial awning growth. It’s an easy system to
set up and uses less capital investment and skilled labor by the awning company. The system has
proliferated in non-awning manufacturing shops giving the traditional awning manufacturer new
challenges from new competition. The awning manufacturers have investments in tools and equipment
that new manufacturers, using staple-in systems, do not need. The commercial awning market should
realize continued growth in the near future. Challenge from non-traditional awning competitors will
continue to grow.

Commercial Challenge

The most common challenge facing the commercial awning industry all over the U.S. is the ability to
meet local building codes. Until recently there were three building codes that governed the installation
of awnings. Each had a specific region in the U.S. These codes governed how awning could be used
in commercial applications. Compounding the problem of meeting three different codes, the local
building inspector has the authority to create variations for his community.

Recently, the three regional codes have been merged together to form one national building code. The
building code situation should improve but there are still problems. As these codes are becoming
consolidated, it is imperative to get the officials writing the new code to recognize the unique structure
and applications of commercial awnings.

Retractables

Stimulating the current trend toward mass-production is the retractable awning. This awning has
increased its popularity in the residential market. Retail stores, which are seeking ways to push the
boundaries of the home improvement industry, have begun to carry retractable awnings for do-it-
yourself homeowners.

The retractable awning frame allows free span support for awnings, uses motors and gears with inside
or outside controls. Motorization of this popular awning offers the owner an easy way of extending
and retracting the awning. Automated controls can deploy the awnings when the sunlight reaches a
certain level of intensity or a pre-set temperature is reached. Similarly, the awnings are automatically
retracted when the light dims, the wind increases, the temperature drops, or rain begins to fall.

aa
     Buildings.com Forecast & Building Team Forecast
Motorized controls are increasing in popularity. Today the number of awning installed with these
types of controls continues to increase.

While the North American market for retractable is growing every year, it’s still in its infancy with a
huge potential compared to what happened in Europe. Projections for market growth year-over-year in
the United States range from 15-30 percent over the next five years.


F. COMPETITION

Backlit awnings are a combination of a traditional awning and a sign. The popularity of this product,
together with the new easier fabrication technique of stapling the fabric to the frames, has allowed the
signage industry to enter into the awning marketplace. Sign manufacturers have advantages of better
code knowledge, electric considerations, and building codes with better experience in the creation and
application of graphics.

Mass merchandising of awnings through large retail stores may have a direct impact on the small
awning shop. Consumers today are in a hurry and this convenience could be what some consumers are
looking for. Mass merchandising of awnings will lower the awning cost which may result in awning
shops unable to compete. However, the potential for installation and additional sales may exist.

Many sign companies, who now have the skill using a staple-on frame system, can now manufacture
and install commercial awnings. This is happening at a slow rate.

G. OPPORTUNITIES FOR THE AWNING INDUSTRY

Our population has a lifestyle different than that of a generation ago. People travel more, work more
hours and seek quality time to be with family and friends. Single headed household are rapidly
increasing . This may result in consumers investing in their home and expanding their outdoor living
space with an awning. The awning manufacturer needs to direct attention to this group.

The public appears to be health conscious and the danger of the sun has become widely known.
Homeowners want something, such as awnings, to protect them from the intense sunrays and allow
them to enjoy the outdoors. With the consumers large desire to have a ―sunroom, but were unable to
add it to their home, this is an opportunity of promoting awning – especially retractable. It’s would be
important for the awning manufacturer to inform the general public that awnings do save energy.

15% of homeowners have another property to add on to, enhance, up-grade or remodel. Take
advantage of this opportunity. The awning company needs to look at communities with high ethnic
diversity and identify its purchasing power.

Another market for awnings is RVs. 19% of awning fabric sold in 2004 was for RVs.bb 8 % of
American households owned an RV in 2005 (up from 7.6% in 2001), and this market is expected to
grow as baby boomers retire.cc The median age for an RV owner is 49.dd

bb
     Awnings and Canopies, Data Textiles Snapshots; October 2004, p3.
cc
     National Recreational Vehicle Owner’s Club, Issue #10A404-1005
A promotional campaign regarding the quality of awning manufacturing may offer important
information to potential customers. Mass merchandising of awnings will not replace the quality
custom awning. Awning companies need to continue to offer customer service, new designs, new
fabric and quality craftsmanship.

To compete with other industry segments, such as signs, awning companies need to become involved
with providing accurate information to key segments of the community who are decision makers.

The awning industry needs to become actively involved in the world of technology and it to advance in
the industry.

H. Trends in Associations

An overview of the future of an organization is not complete unless it includes some analysis of similar
organizations.

According to Scott Steen, author of ―Addressing Long-Term Trends: Leading Associations in a
Global, Complex, Diverse, and Customized World,‖ (summer 2005)ee, there are four core issues that
face associations:
    1) ―Globalization has entered a new phase, and its implications will have profound effects on our
        society and economy.‖
            a. New economic players more competition for resources
            b. America’s place migration of knowledge from the U.S. presents opportunities for
                growth by looking at the global talent market; however, as other countries gain skills,
                the U.S. starts to lose its edge
            c. Associations must become global or else ―grow old and fade away.‖ Some strategies:

                        i. Initiate conversations with boards/staff to determine how globalization impacts
                           members and organization
                       ii. Assess the level of global political, economic, and cultural understanding among
                           members
                      iii. Enhance the opportunities to make global perspectives heard
                      iv. Evaluate current organizational offerings and develop a more global plan
       2) ―Unprecedented demographic shifts are having profound effects on virtually every societal
          institution.‖
              a. Racial and ethnic minority populations= 90% of total growth in U.S. population over
                   the next 45 years
              b. Aging world population (by 2030, 1/8 of the population will be 60 years or older versus
                   1/10 today)
              c. Buying power shifts:
                        i. Latin community buying power expected to increase 31% (to a total of $990b)
                           by 2010


dd
     National Recreational Vehicle Owner’s Club, Issue #10A404-1005
ee
     http://asaecenter.org/PublicationsResources/JALArticleDetail.cfm?itemnumber=16109&pg=2
                    ii. African American buying power expected to grow 28% (to a total of $965b) by
                        2010
            d. PROBLEMS:
                     i. Organizations are not effectively reaching these groups
                    ii. Diverse audiences respond to different messages and themes. According to Don
                        Norris (Strategic Initiatives) and Rhea Blanken (Results Technology),
                        ―Associations, whose patterns and cadences of governance and engagement are
                        set by tradition and [white] baby boomers in leadership roles, need to change
                        their ways.‖
                   iii. The changing demographic shifts must be addressed within associations
     3) ―Society is becoming increasingly complex, requiring significant tolerance of ambiguity.
        Within this context, people are increasingly searching for a deeper sense of meaning and a
        greater sense of clarity.‖
            a. Shift away from a ―machine-age‖ approach to organizational leadership
     4) ―Consumers increasingly expect to be able to customize virtually every product, service, and
        experience to their specific needs.‖
            a. Mass production has been replaced by ―mass customization‖
                     i. Personalizing products and services for individuals
            b. Possibilities for associations:
                     i. ―chunking‖ information that was once available only in books
                    ii. Disaggregating services/products and repackaging them to members

Demographic shifts in associations
(Source: http://asaecenter.org/PublicationsResources/JALArticleDetail.cfm?itemnumber=16134)


Michael Faulkner’s piece, ―Will Demographic Trends Transform Association Membership?‖ focuses
on the disappearance of the traditional association member. The traditional member is no longer a
white 50-to-60-year-old homeowner, upper educated, urban-based, married, with a higher-level job.
(The above noted some of the age/race changes expected in the next few decades). 47% of the U.S.
population will be nonwhite by 2050 and the baby boomers are beginning to retire. What does this
mean for associations?
        1) Hispanics tend to be less interested in association memberships
        2) Growing trend of adults not believing it is worth their time to participate all the time (drop
           in, drop out)
        3) There is not conclusive evidence as to why people choose to join associations; what is
           known is that it is people, not companies, that join associations, yet most of the marketing
           is directed at companies.
        4) ―Associations have to root out the motivation, individual by individual, and be there with
           the proper message and medium when the prospect is ready.‖


Following is a summary of an ASAE Research Survey of 800 associations’ websites:
(Source: http://w.asaecenter.org/PublicationsResources/EnewsletterArticleDetail.cfm?itemnumber=5300&ntype=165)


         Less than half use those sites to offer membership, online shopping, or conference registrations;
      Of the associations that receive payments online, only 21% offer complete real-time processing
       online (many process orders later in a back office or use an automated credit card validation
       with manual processing);
      92% of respondents’ sites do not have automated functions that notifies customers of back-
       order items;
      Almost half did not end confirmation emails to customers after a purchase;
      62% of respondents said their sites allow individuals to join online;
      52% allow online conference registration;
      49% allow online products/services purchases.

In reviewing these association trends it becomes apparent that PAMA needs to find ways to adapt to
the changing economic and socio-demographic environment in the next few years if it wants to
continue being a healthy, dynamic professional organization.

2006 PROJECTS AND ACTIVITIES

EDUCATION
  2006 Awnings and Small Structures Symposium

  2006 Sewing and Fabric Welding Symposium

  Awning Design Standard Manual

  Awning Information for outside publications

  Education for Architects, City Officials and others

  Energy Information

  Educational Workshops

  Awning Tour

  Marketing Plan

  Specifiers Guide

  Workshops

MARKETING
 Brochures

  Newsletters

  Trade Shows—International Window Coverings Expo, AIA National Convention
 Broadcast Faxes and/or E-mails to PAMA Members, non-members and zones

 IFAI Publications

     Fabric Architecture—Architect Ad

     Review

 Marketing Plan


 Outside Publications/Organizations
     RS Means

 Promotions

 Public Relations Campaign with consumer focus

 Web Site

MEMBERSHIP

 New Member Kit

 Material for new IFAI Members who are not PAMA members

 Retention

 New Member Campaign

NOMINATIONS


REPRESENTATION ON IFAI COMMITTEES

 IFAI/PAMA PR Campaign Committee – Promoting Awnings to consumers (See marketing)

 IFAI Certification (PAMA representative)

 IFAI Code Committee (PAMA representative)

								
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