How Are Changes to Retailing Affecting Wood Products Manufacturing Companies?
Many people have written about how our daily lives has been changed by the internet and the ability to shop on-line. The success of companies such as Amazon.com and Chewy.com had proved that consumers are comfortable purchasing products without visiting a brick and mortar outlet.
This raises the question, “How does this affect woodworking companies?”
The answer is that many woodworking companies often produce a lot of products or store fixtures for brick and mortar retailers. Often times, one manufacturer will produce all the wooden items found in a store as part of a new build out or even as part of a renovation.
An increasing amount of retailers are closing their stores in favor of an on-line presence before they wait too long and file bankruptcy as more people abandon the malls and as rent for retail space continues to increase.
The end result is that a company that had a good relationship with the purchasing department of a chain retailer whom has provided years of profitable business is finding itself without one of its larger revenue generators.
Manufacturers are finding that, with increased competition in the marketplace, the time required to develop a new and profitable customer base can be much longer and more painful than anticipated.
Since 1929 the Wood Products Manufacturers Association (WPMA) has always tried to help companies compete in the global economy. In addition to helping make members aware of developing trends that may affect their business, we continue to distribute new and profitable leads for business.
Our group actively exhibits at trade shows seeking Requests for Proposals (RFP's) and advertises on a regular basis as an organization that can connect buyers with manufacturers. This free service has been able to assist members in expanding their customer base to better withstand difficult business conditions.
For more information please contact Philip Bibeau, Executive Director, at 978/874-5445 or visit our website at www.wpma.org.