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

Transcription

1 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 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

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 Are Popular

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

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 o Wood o The Product = Cabinets, Furniture, Millwork o Design, Creativity, Engineering o Sales and Marketing o 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 West Virginia- Why Do We Ship Lumber Out of State to Make Value- Added Wood Products When We Could Make Cabinets, Furniture and Millwork Here? West Virginia Has the Best Lumber in the Eastern Forests = Premium Species + Large Tree Sizes + High Volumes West Virginia a Great Location That Can Reach Markets in All Directions = North/South/East/West

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

13 This Project is Focused on Marketing to Buyers That Live Close to the Shops and Factories in the CMR 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 Charleston, WV is a Minor Metro Region in the USA and is the Smallest in the Study Three Cities % of USA Market for: Atlanta 1.42% (based on population) Charlotte 0.76% Charleston 0.14% 2.32%

15 2009 Population Estimate of the Charleston, WV Metro Region- Total Population = 444,394 Boone 24,709 Clay 10,022 Fayette 46,123 Kanawha 191,663 Lincoln 22,147 Putnam 55,673 Raleigh 79,187 Roane 14,870 Total 444,394

16 # Households at 2.4 Persons Per Household Total = 185,164 Boone 10,295 Clay 4,176 Fayette 19,218 Kanawha 79,860 Lincoln 9,228 Putnam 23,197 Raleigh 32,996 Roane 6,196 Total 185,164

17 Population Growth 2000 to 2009 Far Behind the National Average of 9.7% Boone -3.2% Clay -3.0% Fayette -3.1% Kanawha -4.2% Lincoln 0.2% Putnam 7.9% Raleigh 0.0% Roane -3.7% Total 0.6% Source-Census Bureau Quick Facts, USA Change = 9.1% Low Population Growth Offers Unique Challenges

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 Lots of Potential Contacts to Connect to Local Buyers of Wood Products We Will Discuss How to Find Prospects in Each of These Customer Groups Homeowners Governments Builders Schools Architects Home Designers Interior Designers Retailers Manufacturers

20 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

21 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