GlassBuild Show Follow-Up Thoughts

As we all get back into the swing of things after going (or not going) to the show, I thought I would share some general observations and thoughts about the events in Atlanta and the state of the commercial glazing industry. In a word … unclear.

Ah, another year, another GlassBuild show. I got to see a lot of old acquaintances and made a few new ones. It seemed like there was a lot of conflicting input:

• The Glazing Executive Forum was a great way to kick off the week. More than 125 professionals gathered to discuss issues surrounding contract glazing. Having this session off the show floor gave focus to our shared issues. The mood was cautious to pessimistic. However, all who attended agreed that taking action was the right approach. You can’t just sit back and hope. Thanks to Matt Rumbaugh and the rest of the NGA staff for putting on a great program.
  
• As fabricators, we got to have some good deep discussions with glazing contractors about what they need. The forum of the show puts people in the mindset of looking for ways to improve their businesses—during good times and bad. So, it is easier to explore alternative solutions to problems.
  
• As for the show floor, it was disappointing that all major system extruders were absent from the floor (except EFCO). I understand cutting back marketing expenses during tough times, but I think it is a mistake to have no presence at all. Just one guy’s opinion.
  
• On the floor there was the usual machinery, software and other booths. I didn’t see anything that knocked my socks off. I do think it was nice to see the major commercial equipment companies there with sizable booths. We did look at a lot of nice CNC systems. Now … what to do?
  
• Thanks to those who mentioned this blog when they saw me at the show. It is nice to see that somebody actually reads this stuff.

As everyone is going into strategic planning mode for 2010, I would be interested in comments about what you see coming. Commercial activity—how far will it sink in 2010? How about in your region? How about sub-segments? Education, healthcare, multi-family, institutional/government?

We are seeing strong activity in publicly funded projects—especially around D.C. and in the Heartland. Guess all that government money must be doing some good. Although, you might want to check out this to put the large federal spending into perspective.

Please post a comment and/or thoughts on my opinions.

Coach Pete's Advice for This Season

Football Season is in full swing – and I had a rough weekend. All my teams lost and made some major mistakes. So, what lessons can we learn in the glazing business???

Those of you who might have followed this blog for awhile might remember that I am a Cleveland Browns fan. Yes, I am one of the abused. You remember the Browns? Years of history and tradition then had the team ripped away by our “pal” Art Modell. Drew Carey put our feelings about old Art very well here. Then, the team comes back and goes through 5 coaches and 13 starting quarterbacks in 10 years.

The Brownies did not have a stellar first game last week. As we grasp at hopeful straws, the dreaded Steelers just keep on winning. My fellow blogger and Steelers fan Max Perilstein is happy, but I am ticked off. The Browns are a good symbol for all that can go wrong running a business.

1) Change just to change. The Browns keep changing players, philosophies, offenses/defenses, coaches and on and on and on. Meanwhile, the Steelers draft the meat and potatoes players who fit their culture and system. Have you ever gone out to get a “superstar” employee or purchased a new machine just to find out that you haven’t done the homework to ensure that your system is really ready?

2) Alienating your customers. The Browns have repeatedly driven away the fans of Northeast Ohio. Here is a great piece on what we really want. All the while, Steelers fans are rewarded with loyal players, coaches and owners. Are you REALLY serving your customers or just paying lip service?

3) Lack of discipline and execution. Bottom line, the Browns have not done the job they are being paid to do. Last year, they spent too much time reading their press clippings and not enough learning plays. Are you working in your business to improve every day? Look for better processes, better sales tactics, better training. It comes down to doing the right thing every day.
OK. In the end, I am still a fan of the Browns. I just wish they could learn a few things from their rivals down the turnpike.

Oh … if you think I am tortured as a Browns fan, did I also mention that I am also a fan of Notre Dame and follow Ohio State. Even worse, my kids are following in my fan footsteps – God help them!

On another note, as you might be getting ready for the GlassBuild show in Atlanta, you really should plan on attending the Glazing Executive Forum put on by the NGA. I went last year and found it very valuable and worth the time. More can be found here. I look forward to seeing some of you there.

The Dangers of Stumbling on Your Lean Journey

As we all try to squeeze more out with less time and resources, the pitfalls of going lean become more and more apparent. In other words, as you pick up speed to get more done, each known and unknown obstacle can be more dangerous …

In his landmark book, Lean Thinking, author James Womack talks about the classic example of rocks in a pond. As you lower the water level (less people, less buffer, less time), you expose previously unknown challenges or rocks.

For example, you might reduce a dedicated material handling person in your operation. Once they are gone, you will probably see the challenges of how you organize, retrieve and distribute materials throughout your shop. When the “extra water” of the material handling person is gone, your production personnel are challenged to do more with less.

The solution? It is not to “tough it out until the economy gets better.” Instead, look at how you can improve your storage and distribution methods. With fresh eyes on the challenges of keeping material flowing, you will get improvement suggestions. Implement them in SMALL phases. This will show results to the floor associates and keep them suggesting more ways to improve.

Obviously, this is one example and does not apply to every business. However, it serves to illustrate the problem-chaos-pain-solution-implementation-modification-cycle that is common to everyone. Be sure you are the one driving the chaos and it is not driving you.

Keep on doing more things and do them better and faster and less expensive than your competition. This is everyone’s new reality … and that won’t change anytime soon.

Summertime

Cookouts, the beach and sunshine – it’s summertime … and the living isn’t easy…

As George Gershwin put it in Porgy and Bess, the Classic song Summertime says: the fish are jumpin’ and the cotton is high. Your Daddy’s rich and your Momma’s good lookin’.

Now, I am not going to get into a discussion about anyone’s “Momma” and her looks. I will let the stand-up comedians do that. However, most of us Daddy’s don’t feel rich at all right now. If you listen to the news, you will continue to be discouraged. From the economy and the auto industry mess to the Middle East, it is ugly everywhere. Or is it?

At FabTech, we are doing well. We are working full crews and looking at a strong backlog. As I talk to customers and prospects, many are encouraged that they have made it through some tight times and the wheels haven’t fallen off. As one contract glazier told me, we have chosen not to participate in this recession.

Now, don’t get me wrong. Business is tougher these days. Many jobs have been delayed or cancelled altogether. Others have so many glaziers bidding that the jobs are going out at break even margins. There are many who are foolishly happy to trade money with the bank. Let’s all hope those guys are weeded out by their stupidity.

So, dig in and know your business strengths and weaknesses. Exploit the strengths to get leaner and meaner. Work on the weaknesses so you will be better positioned when things light up again.
As the song says,

Hush, little baby don't you cry
don't cry, don't cry, don't cry
no no no no
don't cry, don't cry – Summertime

So take a break and listen to some of my favorite versions of this classic tune and enjoy your summertime. Versions by Billy Holiday, Ella and Stachmo, and a wild one by Janice Joplin.

Positive Opportunities

In today’s media-driven world, too often the dialog is defined by negativity. Words like “crisis,” “bailout,” “unemployment,” “fraud” and “war” take the headlines. When thinking about opportunity, you must remember that it cannot be given, but must be earned …

Whatever your political leaning, most businesspeople look at the current culture of giveaways and spending with concern. Billions in bailouts, trillions in national debt, thousands of earmarks. It seems like everyone is waiting for the government to come in and solve their problems. Trust me, it won’t work!

Recently, my father, a retired business executive, shared some thoughts on opportunity. He noted that if you try to GIVE opportunity it is no longer opportunity. Opportunity must be earned.

Like education, opportunity can't be given. It must be earned. As a parent you can show your children the way to an education but they must study. You can give a book, a computer, a classroom. The school can give a degree—but only the child can achieve an education.

The same is true for opportunity. We can show our children and our fellow man the way to opportunity but it can't be given, it must be striven for, achieved … secured.

Whether it is the current global economic situation or your own business, remember that you must make your own opportunities. If you wait in line for a bailout or stimulus windfall, it will be a long year.

Thanks Dad.

Hope Springs …

As the weather in Northeast Ohio turns warmer this week, we are all trying to think positive. After a very harsh winter—bad weather, bad news and bad tempers—I think everyone is poised for a warm up.

Often, I believe that businesspeople act like coldblooded animals. No, I don’t mean in the heartless sense of the typical metaphor regarding management. I mean that we are all changed with the cold weather. The lack of sunlight combined with the snow/rain/sleet puts people in a foul mood. This winter, the mood has been made far worse with the economic conditions.

So, now is the time for renewal and hope. We are all hunkered down but need to rise up and get moving. The marketplace won’t be kind to everyone. We all need to grab whatever advantage we have and improve it. Take our shortcomings and improve. The victory will go to the strong. When the market was booming, everyone was making money and growing. Now, each of us must be more diligent and disciplined.

As the grass starts to green up and the trees are budding, take time to plan and renew your efforts. Maybe the sunshine can put us all in a better mood and improve our operations at the same time.

Off topic note to readers in the Midwest—I recently was able to visit a great art exhibit. The Canton Museum of Art in Canton Ohio is showing a fantastic display of decorative kimonos. This show is great. My wife and I took our four children to see it. I will confess that I was worried about the kids’ reactions to having to give up a Sunday to look at “a bunch of painted clothes.” But, they all loved the exhibit. They are now really excited to go back to see the sumo wrestling match that is being put on in conjunction with the overall theme. I encourage everyone who is in the area to visit. The show goes through the end of April. If you need additional motivation for the kids, you can also tie in a visit to the Pro Football Hall of Fame on the same trip.

General Thoughts …

… On the stimulus package, on the economy, on burdens placed on businesses and individuals who make a profit and on Vegas…

The news these days can be especially depressing. Everyone from the president on down keeps using phrases like “crisis,” “deeply troubled” and “emergency.” I believe we are in a very, very tough economy with many challenges. However, I do believe some of the condition is the result of the media coverage and how we are all talking to each other.

One media story that captures the differing opinions on how to deal with the economy is Rick Santelli’s rant. I think he has some great points. As a business that makes a profit, I am worried that the payback for all the stimulus programs will be on the shoulders of companies that are doing the right things—hiring workers, sharing profits, investing in equipment and other technologies and paying our fair share of taxes. Let’s hope I am wrong

Last week, several of us from FabTech attended GANA’s BEC conference in Las Vegas. The show was very productive and informing. We met many new contacts and possible business partners. However, the thing that intrigued me was the fact that almost every conversation came around to the state of the economy and prospects for business. I heard again and again “we are hanging in there” and “well, at least we aren’t in the residential market” and “I am worried for next (month, quarter, year).” Obviously, anyone who isn’t paying attention to the market conditions is foolish. But, I am vowing to try to be more positive in conversations. Maybe we can all contribute to ending this crisis of perception and confidence.

It was great to be at BEC for a second year. It was a little easier to navigate knowing the lay of the land. We met a lot of new folks. Even met the blog master Max. Had a lot of fun also. From the Tropical Oasis’s to Venice to Paris to Munich, Vegas has it all. If you have never been to the Hofbrau Haus in Germany, the replica in Vegas can be a lot of fun also. Just ask the King - Mike R.