Architectural woodworkers: holding their ground in a lean economy

ARCHITECTURAL WOODWORKERS

Renovation is the key to at least one company's success. Lou Mayta of Mayta & Jensen, San Francisco, reported that his company completed $22 million in remodeling contracts for their upscale clients. That amounted to nearly 90 percent of the company's sales during 1990. In the metropolitan Chicago area, Gene Barsanti of Barsanti Woodwork Corp., said remodeling accounted for 65 percent of his sales. Interior Woodworking of New Paris, Ind., a division of Stow & Davis, captured $11.1 million in renovation work.The five-day tour of Germany costs $1,583 per person. The special travel package includes roundtrip airfare, accommodations and a professional tour escort.Saleswise, Nacoma would be atypical. Three years out of four, Nacoma has ranked among the Top 25 architectural woodworkers in North America based on annual sales. This past year, Nacoma reported sales in excess of $11 million. In the United States, more than half of all architectural woodworkers have annual sales of less than $1 million, according to Greg Heuer, director of member services for AWI.The economy -- first, the good newsPHOTO : With more than 1,200 companies exhibiting, Interzum officials expect nearly 65,000 visitors."Construction managers are taking on engineers out of school with no experience," Morante continued. "They are numbers people. They haven't had time to learn how to build buildings. They can't solve problems.Steve Lawser, executive director of the National Dimension Mfrs. Assn., said attending Interzum can be valuable to vendors and attendants alike. The WDMA is one of several U.S. trade associations and companies that will be represented at Interzum through the American Hardwood Export Council.Construction rates are falling; there is a glut of office space. Competition is mean. How are architectural woodworking companies surviving? The architectural woodworker -- 1991 edition. Who is he? Where is he working? What are his concerns? And above all, how is his business? In a depressed economical climate, with declining construction rates and much corporate belt-tightening, how is the architectural woodworker faring?With Europeans using thinner veneers in their product manufacturing, they are requiring lower pressures and temperatures on their veneer presses. "Presses in the U.S. run from 80 to 100 psi, while the current trend in the amount of pressure used in Europe is around 30 to 35 psi and trying to go as low as 15 psi." said Force. "The reason for this is so there won't be any telegraphing through the thinner veneers."Accordingly, several Top 25 architectural woodworkers are not only members of the Architectural Woodwork Institute, but also members of the National Association of Store Fixture Manufacturers. They include: Bernhard Woodwork, Columbia Showcase and Cabinet, Goebel Fixture, Hamilton Fixture, Imperial Woodworking and Standard Cabinet Works."For an exhibitor, the show is valuable for three reasons. Vendors will be able to meet with actual buyers and users, it gives your company instant exposure, and can generate hundreds of sale leads," Lawser said. "For the visitor, they can gain market intelligence, see new trends and examine the competition."When applying adhesives to the substrate and veneer, careful attention is required because different species have different characteristics. "Different species of veneers expand and contract differently as they absorb moisture from the glue line and as they cure after pressing," said Buchner, "You also have to be more careful with porous veneers like sapele and lacewood which can allow an excessive glue spread to show through the face of the veneer." Proper drying of veneers can help reduce shrinkage because veneers can shrink as much as 10 percent and hardwoods can shrink more, according to Serdio. He said a moisture content of 6 to 8 percent is acceptable.Pressing issuesVeneers are classified into three basic categories: "A" grades, which include decorative or fancy-face veneers, "B" grades, which are often used for inner plies of decorative panels and "C" grades, which are used for container veneer and plywood.During 1990, W&WP's Top 25 architectural woodworking companies had total sales of $482.1 million. Of that amount, $412.4 million represented commercial installations, $40 million was institutional work and $26.8 million, residential. A total of $2.9 million, less than 1 percent of the total, was for work in the industrial category.Adwood Corp. offers a variety of Kuper hand-held veneer tools that include the Papertaper which allows the operator to apply paper tape quickly and avoid spots on the veneers. The Kuper hand veneer splicer applies a straight line of glue thread onto veneers and can be applied toward protection of veneer sheet ends, repairing split veneers and patching short faces of fancy face veneers. The mini veneer splicer pulls veneers tightly together and automatically applies a thin line of glue, the company says.With the opportunity for North American companies to view and display the latest woodworking equipment and supplies at the world's largest woodworking trade shows, this year's Ligna and Interzum shows in May should prove especially interesting against the backdrop of the upcoming 1992 European Common Market implementation and the continuing spread of democracy in Eastern Europe."Our industry isn't impacted by the economy the way residential builders are," Heuer said. "Most AWI members are high-end, premium architectural woodworkers building for the upper echelon business world. Their projects are primarily board rooms, executive offices and premium, high-end residential work."If corporations are not building, they are renovating," Heuer added. "If an office becomes outdated, a company will not necessarily build a new one -- lease terms are very good right now. Instead, the architectural woodworker's client may opt for a face-lift of the existing board room and the president's office."Apparently, the depressed economy, falling construction rates and 1990's collapsing real estate market did not affect the Top 25 to the same degree as other industries dependent on new construction. Of 18 companies on last year's Top 25 list which are included again this year, seven maintained the same sales volume they had in 1989, three showed decreases and the remaining eight companies showed healthy increases: Valley City, 80 percent; Roger B. Phillips, 66 percent; Goebel Fixture, 57 percent; Parenti & Raffaelli, 22 percent; Hamilton Fixture, 10 percent; Standard Cabinet Works, 15 percent; L. Vaughn, 12.5 percent; and Interior Woodworking, 12 percent.Available productsLigna continues to growProduced by Cologne Trade Fairs Inc., additional Interzum '91 information can be obtained by contacting Hans Teetz of the German American Chamber of Commerce Inc. at (212) 974-8836.Tours to Interzum start at $1,795 and tours to Ligna start at $1,750. Both tours offer a variety of hotel choices and trip lengths, with air transportation, accommodations, shuttle services and admission tickets included.More expertise* "The normal customer is far more conservative than usual. The market is tighter and much more competitive. People who are undercapitalized are under more pressure," said Pete Carden, national sales manager of Hamilton Fixture.

"That's where the architectural woodworker can come in. People already look to him for direction. As an interior contractor, he can be there for questions and make decisions regarding grey areas between trades," Morante said. "He can install the glass, the marble and the pre-machined doors as well as anyone else -- and pocket the markup, too."

Author: Barbara Garet