Wouldn’t It Be Nice If…
…the President and the Congressional leadership would stop talking about being “pro-business” and actually a) promote pro-business policies, and b) remove anti-business initiatives that dominate their agenda.
…American voters would send dozens of long-term members of Congress from BOTH parties home in November.
…President Obama and the Congressional leadership were more focused on providing incentives for wealth creation and less focused on wealth redistribution.
…the news media would actually run positive stories more than once a generation.
…the news media would actually report the news rather than interpret or “slant” the news for us.
…“government” would recognize that it is there to serve the people, and not the other way around.
…the Administration and the Congress would reach an intelligent, workable, and cost-effective compromise on health care.
…we actually got serious about U.S. energy independence with a program geared to 1) conservation, 2) alternative sources of energy, 3) access to much more oil and natural gas in Alaska and on the Continental Shelf, and 4) developing massive deposits of oil shale in the West.
…our illustrious Congressional men & women actually knew what was in various bills they voted on.
…our illustrious Congressional men & women actually had to follow the same laws and regulations they pass for the American people to follow but from which they routinely exempt themselves.
…incompetent corporate CEOs who drive companies into the ground were not rewarded with multi-million dollar “golden parachutes” to simply go away.
…“old fashioned” common courtesy between people made a big comeback.
…”old fashioned” face-to-face conversation between people replaced 50% of texting and emailing.
…politicians were elected based on experience and ability, not on who can spend the most money, talk the “slickest” and sling the most mud.
…fewer people were killed each and every year in the name of “religion.”
…the $865 billion stimulus program contained more in the way of real economic stimulus and less social engineering.
…the Congress would soon get serious about reining in the growth rate of entitlement programs in coming years. (Note: In regard to Social Security, Medicare, and Medicaid, we do not have to cut spending; rather, we have to slow down the growth rate of future spending—BIG difference!)
…“far left” liberals and “far right” conservatives would back off a bit.
…the Administration and the Congress would get very serious about reducing future budget deficits.
…more small-town banks would recognize that the U.S. recession is over so that more small-town companies could begin functioning on a “normal” basis and start hiring again.
…every current member of Congress was required to take a year off, start a new business with limited funding, meet a payroll, and then deal with the complexities and hassles THEY have created.
…each future candidate for Congress would have to prove that for the prior six years, they were actively involved full-time in the business cycle by selling a product, manufacturing a product or meeting a payroll.
…many spoiled and pampered athletes in MLB, the NFL, the NBA, and the NHL had to get regular jobs at regular wages (at least for awhile).
…many spoiled and pampered singers, actors, and so-called entertainers had to get regular jobs at regular wages (at least for awhile).
…the outcome of many lawsuits was determined more by the facts and less by who has the deepest pockets.
…when a lawsuit is brought, the loser pays all legal expenses.
While all of the above reflects the sentiments of this blogger, much of the above is extracted from and reprinted with permission from the March 2nd edition of The Tea Leaf by Jeff Thredgold. Copyright, 2010, Thredgold Economic Associates, LLC.
The Market Opportunity Which Lies to the North
Over the years, Kerry Knudson has always looked out for the best interests of the WMMA manufacturing members. In whichever trade magazine he has affiliation, the U.S. manufacturers of woodworking equipment always received promotion and recognition, whether it was in the annual Special Section appearing in the March issue or some other time during the year.
I also have enjoyed conversing with Kerry over the years whenever he attended industry events, such as WIC, IWF, AWFS show in Anaheim or Las Vegas, Ligna, or other venues. His marketing insights were always provocative.
The March Special Section has just concluded, and Kerry’s marketing insights are as keen as ever. Enjoy the read below…and don’t hesitate to provide some feedback to either of us.
Dear Ken:
Well, the March issue of Canada’s Wood Industry magazine is at the printer. As you can guess, the WMMA section is not what it used to be. Despite diligent efforts to enroll application stories for your members, we only got three takers, compared to a limit of 20 in years past.
As is the rest of the industry, I am very concerned. Certainly, magazines would like better revenues. However, it is not possible to point the finger at Wood Industry. Three of the six major U.S. trade magazines that existed a year ago are gone, and those left are running on extremely reduced revenues. The problem extends to trade shows, and I don’t need to list the casualties there. The third method whereby machinery manufacturers and distributors can reach their market, associations, is also being ripped to bits, as WMMA can well attest.
Far from seeing a strategy (organized or not) against the three media (associations, shows and press), I am worried we are watching the throes of a heart-shot industry, still on its feet, but walking dead. I just can’t tell if it’s a few signal companies, or if large, linked sectors are going down. It is certainly not the end of the industry (Chinese, Turkish and Brazilian machines are waiting in the wings), but it is likely changing the industry the way we know it.
It pains me that our mutual friends and associates are so naïve about marketing. In terms of print, most of them still don’t give a reason for a reader to buy, or a takeaway. They rely on a logo and a close-cropped picture of a machine. Few can tell the difference between marketing, selling and public relations. Yet it is axiomatic that our associates (your members; my advertisers) need sales. They have no revenues. If sales are not occurring, they must come up with a marketing plan or quit. You cannot make a sale until there is demand. There must be demand. If there is no demand, it must be created. Unfortunately, I clearly have a dog in the fight, so there is little point in my trying to give some kind of marketing CPR to a market that is fighting me. They only see that I want their money, and they have none.
Still, the bear is charging, and I have a gun. The truth is, Canada’s economy is quite good. I recently stopped at Marana Kitchens in Toronto. The owner, Mario Furtado, told me Marana has never been anything like as busy as it is right now, with one-year lead times. In addition, the Canadian dollar is much stronger than it was, relative to the American dollar, so your members’ machinery is effectively available at a 30-percent-or-more discount over three years ago, when the exchange was more like 64 cents to the dollar.
American suppliers to the wood industry must make a change. Hope, as we have heard much lately, is not a strategy. One strategy would be to identify a potential growth market, then approach that niche as a stepping-stone to change. Real change, not political stumping. The alternative is to wait, and that will not work.
One marketing message that Canadians would hear is the message of effective discounts based on the currency exchange. Another would be “we are still in business,” playing off the atonal thrashings of the dying suppliers and their attacks on shows, associations and magazines.
Today, your member companies are either in business or out. If they are out, we wish them a great retirement. However, if they are in, they need a growth market and a plan. A growth market and a plan. For too long, Canada has been treated by the U.S. as a domestic market for the international marketers, and as an international market by the domestic marketers. In both cases, the result is lost, not gained, sales in Canada. Which means the same as lost sales, period, at par? No exchange penalty.
I have a couple of big ideas in the works. One, a consumer magazine based on functional design, is on the boards, staff has been hired and a circulation strategy is in place. The objective will be increased demand on this (the Canadian) side of the border for efficient kitchens, but those kitchens could be built using American machinery. You will receive a release on this initiative in the near future.
The other one is a trade show that will play off the consumer magazine, again not penetrating much into the American or machinery markets. However, taking a lesson from ZOW, I have an idea for a newer format that does not rely on huge purchases of square footage by machinery manufacturers to carry the load for everybody else’s party. My concept relies on some different and compelling learning opportunities, a chance for attendees to meet with presidents, not line salesmen, of exhibiting companies, and a consumer day for end users to see how their stuff is made. Nothing on the scale of IWF or even WMS, but focused more on energy than square feet.
Wood Industry runs not as a national magazine, but as a strong regional. That way, we can skip back and forth with impunity, but I keep the competition away by being regional. We do Canadian import/export, Canadian labor, Canadian regulations, Canadian economics ….. W&W and FDM won’t risk irritating people in Louisiana or Utah by putting in Canadian stories, and they don’t want to attempt the learning curve. That leaves me effectively alone in Canada.
We are looking at a game change, and I am trying to position my market and my media to hold our industry’s stake in Canada. Obviously, WMMA is facing the same issues, and we will help if I can. I know messages like this one are frustrating. I guess I’m just trying to indicate that we have put in a free promo for WMMA again, even though it’s a shadow of its former self. We got very little ad support for the section, but that would not matter so much if we were helping to assure a healthier industry in the long term. Please let us know if I can be of any assistance. We hate to pull rank, but I did get a master’s from KU in magazines, including much on marketing. That does not make me a guru, but I have to ask your members: if you are in deep water in marketing, who would you rather have help you: somebody that is a trained and certified lifesaver, or somebody that assures you he has over 30 years’ experience in dogpaddling?
Your members simply MUST start a marketing plan. It makes sense to me that the plan include Canada and Wood Industry. However, if it doesn’t, it doesn’t. But they need to move. We offered them free exposure for case studies in Canada, and heard essentially nothing. To me, that does not indicate disdain for Canada; it means they are giving up.
Let me know if you have any ideas how I can help.
Best,
Kerry Knudsen
W.I. Media Inc.
Publishers of Coverings and Wood Industry magazines
Box 84, Cheltenham
Caledon, ON L7C 3L7
(647)274-0507
A WMMA Look into 2010
For most industries, associations, and association members, 2009 is a year unlike any other ever experienced. WMMA’s economic forecaster, Alan Beaulieu, looks to 2010 for improvement but certainly not yet a return to the days of yesteryear. Along those lines, the theme for the 2010 Woodworking Industry Conference (WIC) states “Forget Yesterday, It’s a New Tomorrow.” What does that “tomorrow” hold for WMMA and its members?
Certainly, everyone hopes 2010 will be different from 2009; no one wants to experience another “Great Recession,” as that year is forever labeled. For certain, the year ahead holds three milestone events for the WMMA member company, all of which afford countless opportunities for networking:
1. In February, the Association sponsors the 3rd Annual Woodworking Equipment and Wood Processing (WE&WP) Public Policy Fly-In. On Monday afternoon of the 8th, the WMMA Board will meet as Taylor Fernley recently communicated to you. That night, an All-Committee dinner features a presentation on Social Networking, otherwise known as Web 2.0. The next day, Tuesday the 9th, all WMMA committees and task forces will meet. During lunch that day, WMMA’s Legislative Counsel will provide an issue briefing for all in attendance, regardless of association affiliation. The featured dinner speaker will address attendees from all associations on the state of U.S. manufacturing. Wednesday the 10th has been designated as Appointment Day on The Hill, so start scheduling those meetings with your Senators and Representatives. The issues for discussion this year include:
Ø Industrial Dust,
Ø Estate Tax,
Ø “Card Check,” and
Ø Ergonomics.
Issue papers on these and other topics of concern can all be found on the website at http://www.wmma.org/members/public_policy.cfm. Prior to the visits to The Hill on Wednesday morning the Woodworking Industry Leadership Forum, a WMMA-organized group of related associations, meets to discuss issues of common concern.
2. In April, the Association again will sponsor the annual Woodworking Industry Conference over the 21st thru the 24th in scenic Monterey, CA. While the Manufacturer/Distributor Contact Table Program is once again a feature, it is no longer the centerpiece of the meeting. Forums are. These panel and roundtable discussions will focus on enduse markets, such as business furniture and household furniture, distributor and manufacturer centric issues, and industry-wide opportunities. As usual, there will be workshops for learning new techniques to utilize in your business. We are currently organizing joint committee meetings with AWFS and WMIA.
3. In August, the International Woodworking Machinery & Furniture Supply Fair (IWF) returns to the Georgia World Congress Center in Atlanta over the 25th thru the 28th. Aside from the normal opportunity to exhibit products and services to domestic and international buyers, there will be pavilions, or “centers of interest,” such as upholstery and plastics, for the first time. For those still debating whether to exhibit or not, plenty of prime space is still available.
Beyond these traditional standard bearers, the Association continues to provide leadership for its members and the industry in a variety of ways:
Ø Before it became a phenomenon in its own right, WMMA organized a task force, chaired by Jamie Scott and Dick Cowan, at the turn of last year on Industrial Dust to help educate members and customers on the salient issues. Before the year ended, that task force testified at an OSHA public hearing on the subject. This issue is just heating up, and more will certainly happen in 2010 with the task force fully involved and leading others.
Ø The semi-annual ITR webinars on the economic outlook will continue with a tentative schedule of late Spring/early Summer and November. The quarterly ITR reports now include analysis on panel processing as well as an outlook for plastics and composites. We have arranged for ITR answers to member follow-up questions on the report’s contents.
Ø The Business Development Committee hopes to offer a Certified Member Program which would benefit members in the areas of Safety, Engineering, Quality and Service.
Ø Look for more social networking (Web 2.0) opportunities within the Association, while the website continues to evolve as an information-rich resource for members.
Ø Under the leadership of Allen Turk, an innovative approach to exporting—the Brazil Consortium—launches itself for the next 13 months. If the concept proves successful, other target countries, such as Russia, might be considered.
Ø The first sales in India should result from the American Center for Wood Processing (ACWP).
Ø When you need a little more information before you make a decision impacting your company – an employment, tax or business concern – call John Satagaj, WMMA’s Legislative Counsel, at (703) 340-9596. His general business and legal advice on general topics is free to members.
Ø Finally, for that employee who needs some financial assistance to complete schooling or get a degree that leverages his/her contribution to your company, don’t forget WMMA’s Scholarships for Current & Prospective Employees Program.
Have a safe and prosperous New Year!