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President's Message
Larry Difatta
President of Granco Clark
Obviously, the aluminum extrusion process itself is built on pressure. The very terminology used in the process is strong evidence: furnace, oven, press, puller, stretcher, saw, etc. But those terms describe what happens to billets and aluminum extrusions.
What of the great pressures felt today by aluminum extruders and extrusion equipment manufacturers? Unfortunately, there’s no “quenching” system to switch on to get rid of the heat they’re feeling.
There are big opportunities in our industry, of course. In fact, another article in this newsletter discusses a pretty prominent one. But the challenges seem to form an even longer list. And the aluminum extrusion market is undergoing changes few of us could have foreseen just a few years ago.
The economy, of course, gets top billing. When people aren’t buying as many homes, cars, and other durable items, then manufacturers aren’t buying the new capital equipment to make them.
But factors within our own industry add to the pressure. Extrusions have become a globally marketed product, and providers working under different constraints and economic systems can provide those extrusions at lower cost. If you can’t prove added value or “win” on some other dimension, you’re in some trouble.
That competitive pressure exists on the equipment side of things, too. Every company likes to feel it has an edge, through more innovations, sleeker design, better quality, faster service, or something else. But increasingly, the customer’s prime reason for selecting a supplier comes down to “they were cheaper.” That’s logical enough, all other things being equal. But a lot of oranges are being sold as apples, if you know what I mean.
But maybe that just sounds like sour grapes, and now I’ve exhausted my supply of fruit clichés for this month. So let’s just say that it’s a new marketplace out there for aluminum extruders and extrusion equipment makers. Your old company image may be valid and valuable. But unless you define yourself in terms that today’s customers can understand and offer them value as they define it, you won’t be much of a factor.
That’s enough to really age a guy running a company today. Or anneal him, at least.
China. It's Everybody's Business
BENCHMARKS: Dreaming About Numbers
Log Shear vs. Hot Saw: A Debate on the Cutting Edge
President's Message: Aluminum Extrusion going through quite a stretch.
Profiles: Serving the information needs of the international aluminum extrusion community
