At the 2003 Annual Meeting of the National Association of Store Fixture Manufacturers held during the convention on Friday, Oct. 24, members elected four new board members:

From left: President David Reynolds (at podium); Stephan Waltman, Corporate Officer/Vice President of Sales and Marketing, Stiles Machinery; Karin Pryor, Vice President of Marketing, Store Fixtures Group, Leggett and Platt; Chris Carlson, President, Carlson Co. Inc. of Madison. Not in attendance: Denny Gerdeman, CEO, Chute Gerdeman Retail.

Current officers, president David C. Reynolds, treasurer Robert R. Frackelton and executive director Klein Merriman updated the membership on the financial status and activities of NASFM over the past year.

Powerpoint presentation:
Annual NASFM Meeting
Available to NASFM Members Only

Jerry covered various demographic trends impacting the economy and retail over the next decade. Prior to his general overview, he spoke about competing with Asia, drawing on his experience in the residential and office furniture manufacturing industry. The best candidates for importing from China, he says, are product lines:

• with large mark-ups
• relatively similar products that can be created in long production runs
• in an industry with few if any brands
• in an industry with a fractured manufacturing base
• with commodity elements and high labor costs
• that fit into the Chinese' base of knowledge

Furniture manufacturers have learned to combat overseas competition by:

• creating more lines
• strengthening relationships with the end users
• shortening lead times after a new line is announced

The tide may also be turning against Chinese manufacturing, according to Epperson. Labor in China has to offset the cost of shipping and inflation, and shipping container prices have increased substantially. The Chinese have responded with new designs with smaller dimensions, often less stylish, and he says consumers are noticing. Pressure against Chinese business practices is about to heat up, as well, particularly on the heels of several successful anti-dumping lawsuits against Chinese manufacturers.

On a positive note, competition with China has forced the domestic furniture industry to improve quality, shorten lead times, and more recently, create exciting new designs.

Powerpoint presentation:
Is There a Future Manufacturing Fixtures in North America?
Available to NASFM Members Only

2003 is shaping up to be a decent year. Looking at what is ahead for the holidays, NRF projects $217.4 billion in merchandise to be sold during the holidays. This projection reflects a 5.7% increase in holiday sales, the biggest increase since 1999. For 2003, NRF reports a 4.1% increase in sales compared to 2002.

Karen identified several retail megatrends:

• migrating shopping patterns
• business spinoffs
• rethink, reinvent and re-purpose
• our dear friends at Wal-Mart

In addition, she addressed several trends in various retail market segments, as well as an overview of retail construction trends. Combining the research results with the responses Display & Design Ideas received in the Retail Interiors Survey, DDI is projecting a 2-3% growth by year’s end with an increase in retail construction in 2004.

Powerpoint presentation:
Results of the 2004 Retail Interiors Forecast
Available to NASFM Members Only

For a copy of the Retail Interiors Forecast
• members contact NASFM at 954-893-7300 or email us at nasfm@retailenvironments.org
• non-members can purchase a print version of the Retail Interiors Forecast via mail from NASFM ($49).

The four retailers addressed:

• how they evaluate their existing suppliers
• how they find and qualify new vendors
• overseas resourcing—to what extent and how they are doing it
• and how they like to work with their vendors

Our retail panelists agreed that they want their vendors to be profitable (or moderately profitable) to ensure that they will still be in business for the store opening. With that in mind, they felt that they had a pretty good idea of the cost of specific components, and while they don’t want to be overcharged for those items, if they know a manufacturer’s bid won’t cover their costs, they are just as hesitant to use them. Bottom line: know your costs, bid fairly, communicate, and respond promptly when called.

Powerpoint presentation:
How Do You Get Our Business?
Available to NASFM Members Only

The ability to identify new business and the flexibility to forge alliances with design firms and other partners who can refer business are essential traits of forward-thinking companies. As traditional retail giants become less bankable, store fixture manufacturers are seeking new business opportunities to flesh out and diversify retail customer bases. Peripheral industries like banks and museums represent one ancillary market. Small retailers and developing retail segments represent others. This session explored several new business potentials and discussed how to systematically pinpoint the next hot retail client. Members were encouraged to share their questions and success stories.

Powerpoint presentation:
Identifying & Developing new Prospects
Available to NASFM Members Only

The purpose of Peter’s session was to challenge the definition of the business store fixture manufacturers are in and stimulate behavioral change. The audience was asked questions to generate discussion:

• What are our customers’ problems and expectations?
• Is it possible to grow in a low growth environment?
• Are we simply satisfying demand, or can we in fact stimulate demand?
• Are all customers created equal?

Several areas of opportunity were identified:
• Customers want the ability to update delivery schedules, get information, and have instantaneous communication
• Retailers need help in diverse ways. They have fewer staff and more pressure. How can you help them meet the demands placed upon them? How will that change the role of the manufacturer?
• Retailers say they are price driven because they haven’t experienced enough unique value proposition to be otherwise.
• Retailers are wary of partnering because they too have been burned. How can you make them more comfortable with your proposition? Could you offer on-time delivery guarantees?
• Retailers want vendors to know more about how they do their job and how their organization does business. They’d appreciate ideas on how they can innovatively display or sell product and/or metrics they can use to help measure what’s working and justify additional costs.

Powerpoint presentation:
Not Business as Usual
Available to NASFM Members Only