Marketing Locally Made Wood Products to the Charlotte Metro Region

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1 Marketing Locally Made Wood Products to the Charlotte Metro Region Mecklenburg Extension Office Tuesday, May 31st, 2011 Charlotte, North Carolina Harry W. Watt Business Improvement Specialist Wood Products Extension NC State University

2 Discrimination Policy Statement The work upon which this project is based was funded in whole or in part through a grant awarded by the Wood Education and Resource Center, Northeastern Area State and Private Forestry, U.S. Forest Service. In accordance with Federal Law and U.S. Department of Agriculture policy, this institution is prohibited from discriminating on the basis of race, color, national origin, sex, age, or disability. (Not all prohibited bases apply to all programs.) To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, Room 326-W, Whitten Building, 1400 Independence Avenue, SW, Washington, DC or call (202) (voice and TDD). USDA is an equal opportunity provider and employer.

3 NC State University Wood Products Extension The Outreach of the Wood Products Department to Industry Since the Early 1950 s Focus on Providing Educational Information and Support on the Proper Processing and Use of Wood Often Working on Issues of Wood Processing, Drying, Gluing, Finishing, Factory Design, Manager and Employee Training, Product Design and Engineering, Business Strategy and Management, Marketing

Wood Education and Resource Center Located in Princeton, West Virginia US Department of Agriculture and US Forest Service Supports the Eastern Hardwood Forest

4 Wood Education and Resource Center Located in Princeton, West Virginia US Department of Agriculture and US Forest Service Supports the Eastern Hardwood Forest Region (35 States East of the Great Plains) Offers Educational Support of Biofuels, Wood Processing, Employee Training, Research and Marketing Projects Workshop at WERC

5 Local Marketing Project Phase I = Three Target Metro Cities to Research Atlanta, Georgia Charlotte, North Carolina Charleston, West Virginia Atlanta, GA Charlotte, NC Charleston, WV

6 Project Purpose Research the Issues Related to Growing the Sales and Profitability of Wood Products Manufacturers and Retailers by Growing Sales in Local Markets Support Economic Growth and the Demand of Hardwood Lumber Used in Cabinets, Furniture and Millwork Wood Products

7 Project Purpose Most of the Job Losses and Reductions in the Use of Hardwood Lumber (we have dropped about half our usage since 2000) has Occurred in Wood Products operations That Sold in National Markets This Project Wants to Help Those Manufacturers Find Local and Regional Markets Plus Assist Those Who Produced Only Locally/Regionally or Retailed Wood Products to Grow Sales

Today s Schedule Topics by Session Researching building permits for prospects Marketing to builders and homeowners Marketing to architects Lunch

8 Today s Schedule Topics by Session Researching building permits for prospects Marketing to builders and homeowners Marketing to architects Lunch Marketing to local governments Marketing to retailers Using 3-D design software to support designs and marketing Start Time 9 AM 10 AM 11 AM Noon 1 PM 2 PM 3 PM

9 Success Factors for Wood Products Manufacturers and Retailers Must Love or Show Passion for Some Aspect of the Business Wood The Product = Cabinets, Furniture, Millwork Design, Creativity, Engineering Sales and Marketing Building Relationships With Others

10 Success Factors for Wood Products Manufacturers and Retailers Must Put Out Lots of Effort and Work o Lots of Time Thinking About the Business o Lots of Hours Working in the Business o Lots of Time Doing the Things That Build Up the Business = Foundation Work

11 It is Often Said in Charlotte- Why Is It Difficult to Find Locally Made Wood Products? Why Is Furniture at the Retail Store Dull and Boring? Is it Possible for Our Local Governments to Buy Wood Products From Our Local Businesses?

12 US Businesses Have Lost Market Share to Global Manufacturers More to Those Factories That Sold a Limited Product Line to National US Markets, Like Casegoods Furniture High Variety-Low Volume Products Like Kitchen Cabinets and Upholstered Furniture Have Fared Better Perhaps Manufacturers and Retailers Should Focus on Non-Commodity Products = Low Volume + High Variety

13 This Project is Focused on Marketing to Buyers That Live Close to the Shops, Factories and Retailers in the Charlotte Metro Region Locals Can Do It Better! Lowest Cost to Market Best Knowledge of the Buyers Can Tap Into the Desire of Buyers Who Want to Buy Locally Made Wood Products

14 The Charlotte Metro Region is an Important Metro Region in the USA and is the Middle Sized Metro Region in the Study s Three Cities % of USA Market for: Atlanta 1.42% (based on population) Charlotte 0.76% Charleston 0.14% 2.32%

15 Population of the Charlotte Metro Region- Total Population = 2,332,354 Cabarrus 172,223 Catawba 159,125 Gaston 208,958 Iredell 158,153 Lincoln 76,043 Mecklenburg 913,639 Rowan 140,798 Union 198,645 Total NC 2,027,584 York 227,003 Lancaster 77,767 Total SC 304,770

16 # Households at 2.4 Persons Per Household Total = 971,814 Cabarrus 71,760 Catawba 66,302 Gaston 87,066 Iredell 65,897 Lincoln 31,685 Mecklenburg Rowan 58,666 Union 82,729 Total NC 844,827 York 32,403 Lancaster 14,814 Total SC 126,988

17 Population Growth Story-2000 to 2010-Per US Census QuickFacts Message = Local Market for Wood Products Should Be Growing! Cabarrus 35.8% Catawba 8.9% Gaston 8.3% Iredell 30.0% Lincoln 22.7% Mecklenburg 32.2% Rowan 6.2% Union 62.8% Total NC 18.5% York 37.3% Lancaster 24.9% Total SC 15.3%

Marketing Is Now the Most Important Activity Wood Products Businesses Need to Pursue for Success Most Shops and Stores Have Adequate Facilities and

18 Marketing Is Now the Most Important Activity Wood Products Businesses Need to Pursue for Success Most Shops and Stores Have Adequate Facilities and Equipment Most Shops and Stores Have Laid Off Employees and Are Running At Less Than Full Capacity Better Marketing is Needed to Gain Sales and Grow Profitability

19 Typical Marketing Efforts Market Research-Identify Needs and Prospects Marketing Plan Creation Product Line Design and Product Development Sales Force Creation, Launch and Support Marketing Support Literature Engaging Prospects and Customers Booking Orders

20 Introduction-Summary Reinventing Hardwood Project is a USFS Attempt to Support the Manufacturers and Retailers of Cabinets, Furniture and Millwork to Grow Their Businesses This Projects Hopes to Grow the Sale of Hardwood Lumber to Support Landowners, Sawmills and Value Added Businesses The US Can Help Its Economy By Replacing Imported Wood Products With Locally Made Wood Products

Marketing Locally Made Wood Products in the Charleston, WV Metro Region

Marketing Locally Made Wood Products in the Charleston, WV Metro Region WVU Kanawha Extension Office Tuesday, June 7th, 2011 Charleston, West Virginia Harry W. Watt Business Improvement Specialist Wood