Many prominent authorities in the glass industry have declared recent
years as “the best of times” for those in the business. Others have echoed this
sentiment describing the current state as, “as good as it gets.”
So, can things get any better for the glass industry or is it time for a downturn? Will
consumer preferences cause purchasers to turn to substitute products? Will companies meet
the production and distribution challenges of producing it quickest and delivering it
fastest? What effect will rising distribution costs have on individual companies? Will
glass businesses tap into the untapped markets that have unrealized potential?
These and other crucial questions are answered in the next ten pages by top authorities in
the glass business. So, whether its machinery, glass manufacturing, shower and bath
enclosures, mirrors, security glazing or windows that you’re interested in, the
following pages may have some of the answers you’ve been looking for.
by Russell Ebeid
One of the most dramatic challenges facing companies today is the
ever-increasing speed of change. This challenge has manifested itself in many different
ways including shorter life cycles for existing products, new products being introduced to
the marketplace at a faster pace and shorter lead times from order to delivery. In the
glass business, a notable example of this trend is automotive glass for OEMs where glass
suppliers must match the shorter life cycles of vehicle platforms and deliver glass
products on a just-in-time basis sequenced to the production build schedule. Until
recently, these trends had not effected glass or the commercial construction business in a
significant way. That is about to change: New strategies are being employed by the major
glass companies serving this market. Although the path chosen may be different, the goal
is the same: reduce the delivery lead times for high-performance coated glass products for
commercial customers.
The advent of high-performance coated glass products has brought with it many benefits to
the commercial construction industry. These glass products have performed so well in
keeping buildings cool in hot weather (and warmer in cold weather) that building owners
have been able to reduce investment in air conditioning equipment reaping immediate
capital cost reductions and lowering annual operating costs. Architects embraced the look,
flexibility and cost savings of glass thus permitting them to greatly expand its use in
the design of new buildings as well as in the retrofit of existing structures.
The challenge to our industry, however, has been in getting the coated glass delivered to
the job site precisely when it is needed. Due to the complex technology of coatings and
coating equipment and the nature of a business where each architect may want a different
visual look, balancing longer production runs on a coating with market requirements for
complex coated glass products has led to long lead times in completing orders. This
problem has been exacerbated by the inability of conventional coatings to withstand heat
treatment. The process is complicated further due to the custom nature of the commercial
construction business where building openings may be field measured. This leaves little
time between order and required delivery. Additionally, when glass lites or insulating
glass units are damaged in shipment or broken on the job site, there can be another
lengthy wait for replacement glass. Thus, lead times on projects can range from ten to 16
weeks or longer. This is not acceptable, particularly in a business environment where the
trend toward speed is critical and valued by the customer.
We believe a solution lies in the solar control glass products such as those introduced by
our company (see page 102). These products should substantially reduce lead times on
projects because it can be inventoried as a stock sheet product then fabricated as
required for the customer. This can be done on a direct basis from the factory for major
projects or through independent fabricators. The latter group should enjoy this approach
because they already specialize in quick turnaround to serve a local market.
Clearly, the year 2000 will bring a continued emphasis on speed and will focus on
improvement in this area, especially for the commercial market.
Russell Ebeid is president of Guardian Industries Glass Group, based in Auburn Hills,
MI.
by D.Roger Kennedy
Glass demand in the past eight years has grown dramatically with the
exception of a minor drop in 1995. While it is difficult to imagine that our economy can
continue at this pace, we expect overall market demand for 2000 to increase one percent to
an industry record of 5.9 million tons. On balance, the automotive, commercial
architectural and specialty markets are all expected to increase with a mild decline in
the residential market.
While glass demand has been breaking records, the supply of glass has been increasing at
an even faster rate with five new tanks (one from AFG and two each from Guardian and
Cardinal) built since 1996. Fortunately for glass companies, the continuing gross domestic
product expansion, low inflation, real family income growth and strong consumer confidence
should balance supply and demand in 2000. If the residential market drops less than 4.5
percent, as projected, glass could be tight.
Housing starts may be down for the year, however the window and door market will not match
this decline for several reasons. First, housing starts will slow first in the starter
category that has fewer windows per home than their larger counterparts. Secondly,
remodeling, driven by the robust sales of existing housing, is projected to increase 3.7
percent, and there are more windows sold in remodeling/renovation than to the new
construction market. This would indicate that while competition is always strong in the
window market, the lower price-point products would face a glut of competition. But,
windows with clearly defined value should prosper.
For the new decade, housing is expected to increase to 17 million units, up from the
estimated 16 million for the ’90s. This is driven, in part, by the size of the
echo-boomer generation that will exceed their parent’s baby-boomer generation by
almost 15 percent. However, echo boomers exhibit a lower percentage of family formations
and home purchases.
When evaluating the tank production of each of the primary manufacturers, the capacity of
dedicated automotive lines is exceeded by the record high production of automotive
products, particularly mini-vans and sport utility vehicles, which all feature extensive
use of glass. This means primary glass manufacturers with large automotive commitments
must divert glass from other markets to meet their contractual agreements with the
automakers.
The automotive market is projected to continue at its record pace while manufacturers
continue to drive quality and benefits up and costs down. Glass issues for the new decade
include weight, solar control, sound reduction, electronics and safety/security. The
trends toward thinner glass and darker tints are also expected to continue.
We no longer view glass as a practical commodity, but as a high-tech appliance. This
presents exciting opportunities and our challenge will be to determine which technologies
will be the most valued by our customers.
D. Roger Kennedy is president and chief executive officer of AFG Industries Inc., based in Kingsport, TN.
When I look to the first year of the new century, I see a variety of
changes in the commercial window market. Structurally speaking, there are no great trends
occurring in aluminum windows. The systems that will be used in 2000 have all passed
stringent testing guidelines for water infiltration and loading. There is a long lead time
involved in designing a window system, having dies made and then extruding the window
profiles for testing, so the trends for the next few years are dictated by the structural
designs of today.
I see the trends for the future predominantly involved with the aesthetics of the entire
building. Architects are using colors that were never considered just a few years ago.
Burgundy, blue and green shades are becoming bolder and brighter, and even colors like
lavender are being requested. As color trends change, the companies that can handle window
fabrication in small runs of custom-matching colors will experience the greatest growth.
Architectural trends toward innovative use of natural granite, marble, and even brick,
focus greater attention on windows and forces them to work as an integral part of the
design. In the past, operable windows were expected to blend in with the curtainwall and
storefront. Today, and into the next century, windows will serve as an important design
element. For example, you can expect to see windows grouped in unique configurations,
greater use of grids and vertical or horizontal members. These lines and grids can allow
the eye to flow across a pleasing siteline and draw the eye toward the building’s
entrance, or stop the eye with a bold stroke.
We see a lot of growth in the revitalization of old brick mill buildings in the Northeast.
Because these are often located along beautiful old rivers and canals, they are ideal for
new use as apartments, condominiums and office complexes. Renovation persists as a focus
in our markets, so traditional window grids
will see continued growth. Designs that mull operable windows in conventional groups with
fixed half circle tops will endure into the next century, as well.
Perhaps the greatest trends in windows for 2000 and beyond deal more with the glazing
material than the frame. Energy-efficient glass, low-E coatings and UV protected glazing,
laminates and polycarbonates will experience growth, as will tinted glass.
Peter Bonzani has served as president of Rebco Inc., a New Jersey based manufacturer
of commercial aluminum door, entrance, window and storefront systems, for the past ten
years.
With the United States looking at Europe to determine the latest trends in
glass manufacturing, it appears the design community is moving toward innovative curved
and bent glass applications. Already popular in Europe, curved and bent glass is making
strong headway in the building and remodeling markets here in the United States as well.
In the residential market, the bathroom is the second most remodeled room in the home.
Homeowners are looking for modern, appealing, custom, affordable products to make the
bathroom more luxurious regardless of the size of the room. Research shows that homeowners
today would rather “improve than move.” They are rooted to their communities and
are comfortable in their surroundings. Empty nesters are looking to enjoy their homes and
customize it to fit their new lifestyle without children.
Research also shows new housing starts were up again in ’98 and new homes boast
larger and more luxurious square footage. Consumers today are more involved in product
choices than ever before, and, in many cases, women are fueling the decision-making
process. These dual decisions are generally prompted by product literature requested by
women.
Colors seem to be peaking considerable interest with consumers. The soft colors, copper,
bronze and gray, seem to be the favorites, while brighter colors are not faring as well.
Another trend gaining popularity in the United States, is the availability of a variety of
glass patterns, many of which are imported from Europe.
Hank Casden, president, and John Veras, vice president, started Duschqueen Inc. in
1985. The company is based in Wyckoff, NJ.
With violent criminal activity affecting nearly every nation in the world,
there is a growing market for products that can offer safety and security under extreme
circumstances. Threats from armed criminals and terrorists, long predicted to diminish,
now seem more likely to increase in the foreseeable future. Acts of terrorism against
civilian targets in the largest cities of the world’s superpowers, New York and
Moscow, seemed unthinkable as little as ten years ago. Not only are criminals becoming
bolder in their selection of targets, the sophistication of their weaponry and ability to
defeat current methods of protection are also increasing. And although recent changes in
world politics have led to coordinated efforts by multinational intelligence agencies to
prevent organized terrorist attacks, we are now confronted with a marked increase in acts
of senseless random violence (Atlanta, Columbine, Los Angeles, Honolulu and Seattle, to
name a few).
It would be difficult to find anyone who has lived in the United States for the last
quarter of a century who has not noticed an increase in the use of bullet-resistant
windows. Once limited to government use, we now find security windows in convenience
stores, pharmacies, hospitals, TV stations, insurance offices, jewelry stores, and sadly,
many schools. Due to the imposing appearance of many of these products, we are reminded
every time we encounter a distorted image of someone working behind an unusually thick
window, just how greatly we have been affected by the acts of criminals. With our current
situation of escalating violent intolerance and armed malcontents wandering our cities,
very few companies can afford to ignore these potential threats. Many are starting to
change the design of their reception areas and offices.
With the exception of window film, with only limited applications, there have been no real
innovations in security glazing in recent memory. Because of outdated technology (that
imposing heavy green glass), many potential users of bullet-resistant windows have opted
to remain unprotected simply for the reason that they didn’t want to advertise that
they may feel threatened. In addition, being exposed on a daily basis to an imposing type
of glass or entry system just serves as a reminder that intrusive criminal behavior has
infiltrated our work lives. Yet with current innovations and product improvements, we are
now able to offer a secure, but normal looking environment. Just because an executive or
government official has windows capable of defeating rounds from a high-powered sniper
rifle, it shouldn’t mean they can’t enjoy sunlight or be forced to attract
attention to themselves with unnecessarily dark glass.
As we enter the new millennium, we believe the trend towards proactive protection will
gain momentum and manufacturers of products providing reliable, state-of-the-art
protection will find expanding markets worldwide. The challenge facing the security
products industry is to provide consistent protection against constantly changing threats,
while maintaining a normal appearance. A select few manufacturers have already introduced
significant innovations, and we can certainly expect more in coming years.
Andrew B. Shapero is director of sales for Ballistica Inc., located in Minneapolis, MN.
As we approach the new millennium, we are facing uncertainty. What
challenges will the next century bring? Where do the opportunities lie? Are we up for this
challenge?
Industry leaders have stated that we are in a tough business. This is certainly true. Is
the challenge we face more difficult than those faced by companies in other segments of
the building material industry? Even if our industry is more competitive than most,
companies in the glass industry make great products that have unrealized potential. The
mirror and glass industry has not reached a saturation point from a consumption point of
view. The products we manufacture and sell have not matured in the marketplace based upon
their potential. Therefore, a tremendous growth opportunity lies ahead for the mirror and
glass industry.
Most of us in the glass industry can be considered a part of the building material
industry. There are many building material products available that can fulfill consumer
needs in the home or workplace. Products with glass is just one category of many building
material and home improvement products that can be chosen by the consumer. Substitute
products are purchased in huge volume every day. These products can be defined as products
that can be used as alternatives to mirror or glass products. Examples of these products
are paint, wallpaper, wood paneling, art, brick, solid walls, etc.
Some think that substitute products represent a tremendous threat to our industry. To the
contrary, this marketing problem represents profit potential for all companies in the
glass industry. We know that revenues for companies in other building material segments
are in the multi billions of dollars. The possibility of increasing market share at the
expense of substitute products represents opportunity for the future. From this
standpoint, the potential for glass products from a marketing point of view is huge. The
question is how can we implement a plan to capture this potential?
Capturing market share from substitute products in the future may require a paradigm shift
and change in business strategies. Successful companies of the twenty-first century will
not necessarily be the same as those that were successful during the twentieth century.
Different competencies may be required in the years to come. Whether or not we turn these
opportunities into reality in the new millennium may be determined by a few, very
important competencies.
The first competency required to achieve this objective may be your willingness to embrace
change in the future. Change is good and can be used as a competitive weapon. Challenge
yourself and fellow employees to look at your business and potential markets differently.
Who or what is the real competition? Are substitute products a form of competition? Can we
enhance consumer awareness for our glass products in order to get a higher percentage of
spending for the home or workplace?
The second competency required might be the speed in which you make positive change
happen. The speed of decision-making and execution can be a differentiating point. Who
will capture the opportunity first? Are we competitive in terms of the speed of product or
marketing introduction? Why are other industries perceived to be more sophisticated than
we are? Is it time to change this problem or perception?
Lastly and most importantly, it may be impossible to implement the first or second
competency effectively without good people. The best leaders of tomorrow will be change
agents. Therefore, the importance of our employees to the glass industry in the years to
come will be elevated to a new plane. Quality employees will be the most important
investment that we make.
Opportunistic change, speed, and attributes of leadership can help to set our industry
apart from the rest of the pack in the building material industry. We can create more
opportunity for glass products if we are willing to make an investment into these
disciplines. The mirror and glass industry has grown leaps and bounds during the twentieth
century, and the new millennium is also full of promise.
Tommy Huskey is the chairman, president, and chief executive officer of Gardner Glass
Products, based in North Wilkesboro, NC.
Consider the following challenge as presented by a homeowner or architect:
Create a 60-foot wide by 10-inch high opening that will provide a continuous flow between
the indoor and outdoor living areas. Additionally, the opening will, at times, need to be
closed off from the outdoor area with a tight weatherproof seal to protect the interior
from the elements and to provide security for the inhabitants.
This kind of request is becoming increasingly popular as homeowners and architects search
for opportunities to put their unique mark on a structure. Often they are seeking to
capture a particular view and blend the indoor and outdoor environment, creating a
free-flowing area between the two spaces. The challenge for window and door fabricators is
to produce a series of large, operable sashes that may be in excess of 500 pounds—in
essence, a wall of movable glass that provides unobstructed views.
In this example, producing the sash and frame probably will not create a major obstacle.
Large sashes of wood, PVC, or aluminum are fabricated easily with the materials and
equipment available today. Glass also is readily available and will not present any great
challenge.
Creating the greatest obstacle will be the functional aspect. For this, the window and
door fabricator will look to the hardware manufacturer for fittings to meet the
operational challenge the homeowner/architect has presented.
To provide a solution that will meet all the requirements, the hardware manufacturer not
only must consider the needs of the homeowner/architect, but also those of the fabricator.
Typically, the needs of these two principals are mutually exclusive. Two possible
solutions emerge. The fabricator might incorporate a mix of independent fittings designed
and manufactured to perform functions similar to those required in this example. But the
preferred solution would be a systems approach, meaning a system of hardware fittings
designed and manufactured to perform a desired function.
Our example has several key elements that must be considered before hardware
selections can be made:
• How easy will it be to move these large sashes to create the desired effect?
Ideally, the hardware solution should allow the window wall to move with the pressure of a
fingertip. Larger sashes, however, as in this example, which will exceed 500 pounds, have
a direct effect on the weight, which directly affects operations. Typically, as the sash
weight increases, the effort it takes to move the sash also increases. Thus, for ease of
operation, the hardware system must overcome the effect of weight.
• A large opening provides many opportunities for water and air infiltration when the
unit is closed. The homeowner/architect wants to blend the indoor and outdoor
environments, but also needs to form a barrier between the two for weather and security
concerns. This element can work directly against ease of operation. In most cases, the
creation of a tight weather seal produces resistance on the operable sash. As with all
operable sashes (window and door systems), however, the right hardware fittings can enable
the unit to perform the desired function,
• Finally, for the homeowner/architect, the hardware solution must provide some
aesthetic appeal. Although the visible components often add little to the systems
function, the best systems will be poorly received if the visual components are not
attractive.
After identifying the requirements of the end user, hardware manufacturers must also
consider the needs of window and door fabricators. How will the hardware solution affect
the fabricator’s manufacturing requirements? If a hardware maker is to provide a
solution that will be readily accepted by the window and door industry, the effect on the
manufacturing process should be minimal or at least standardized. Other considerations
affecting the fabricator are the product’s quality and durability.
Additionally, does the system meet or exceed industry-established performance standards?
Is the system adjustable? In other words, does it allow for changes in site conditions
that would affect the unit’s performance? All of these factors are key if the
fabricator is to produce a product that not only meets the need of the end user but also
provides a system that will perform reliably.
Industry standards and building codes will continue to change. As the window and door
industry looks to meet the demands of the market, hardware manufacturers will be there to
provide functional solutions.
Dan Alexander is the national sales manager for G-U Hardware Inc., based in Newport
News, VA.
As we near the year 2000, several trends are visible in the glass and
mirror industry. Some trends are due to product demand, others are caused by a shortage of
available labor, while a few are driven by the environment.
Shipments of value-added products continue to remain strong in the distribution and
furniture industry. There are increased orders for beveled, edged, and sandblasted glass.
Bevelers are being built to run faster and for easy operator set up. Computer-controlled
bevelers are more popular than ever and even the new, small “mini” bevelers are
starting to sell in some market areas. Additionally, many furniture designers are using
decorative edges on their glass tables. OG, waterfall and other special edges are in
demand. There are also many, high quality flat edge and mitered edge products being sold.
This creates markets for the high-end peripheral and cup wheel edging machines now
available.
At the recent Furniture Market in High Point, NC, I was amazed at the amount of furniture
that included sandblasted glass. In some show rooms, I saw as much as 40 percent of the
products decorated in some way with sandblasting. This is creating a large market for
automatic sandblasting equipment that can efficiently and uniformly decorate glass or
mirror.
Machines are being supplied with numerical controls to help operators make job changes
easier and faster. Automatic lubrication systems are being added to most high-end machines
to allow the machines to run longer without maintenance downtime. Although the newer
computer-controlled shape machines continue to be slow, they are becoming popular due to
their labor savings.
In-line washing machines will be installed so glass or mirror can be washed as it exists
in the fabrication process instead of being accumulated and taken to a separate washing
machine. Additionally, there will be more use of robotic loading and unloading systems for
conveyor type machines such as double edgers to eliminate labor and increase output.
Heavy environmental pressure is being applied in major metropolitan areas where the
government is starting to restrict dumping of grinding coolants. In the last couple of
years, the glass swarf removing centrifuge has become very popular. In the year 2000 there
will likely be as many centrifuges sold as in the last several years combined. In addition
to eliminating the environmental problem, the labor savings from reduced manual tank
cleaning and fewer machine maintenance requirements result in lower production costs.
USG
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