Michael Collins, Managing Director of the Building Products Group of Jordan, Knauff & Company, is optimistic about the state of the fenestration industry. “We made it through the storm,” Collins said. “It’s now time to harvest the benefits of surviving a really tough downturn.”
During the recently-held American Architectural Manufacturers Association (AAMA) 2012 Summer Conference in Oak Brook, IL, Keynote Speaker Michael Collins, Managing Director of the Building Products Group of Jordan, Knauff & Company, discussed the current and future state of the fenestration industry.
“A lot of companies I talk to are telling me they are up 15 to 20%, and I expect that [percent] to be higher in the next few years,” said Collins.
Collins said that fenestration industry plant expansions were balanced by plant closures over the same period. Industry bankruptcies and business closures dropped considerably from 2008 to 2010, but increased again in 2011. This, said Collins, is a positive sign that many companies are being purchased out of bankruptcy rather than being liquidated.
With regards to the residential market, according to the NAHB/First American Improving Markets Index, single-family home starts are recovering from a low base and existing home sales are improving. “Home affordability is extremely high,” Collins said. He added that those with a household income at or above the average income level can purchase “76% of homes within their market.”
The commercial market is also seeing positive trends with regards to power and energy construction, along with strong forecasts for building in the manufacturing sector.
Collins, however, noted the constraints on both the residential and commercial markets. “[Future] homeowners still have difficulty obtaining mortgages,” Collins said, which causes “an excess of homes for sale.” And, in the commercial market, many new construction projects that have been approved are being delayed due to lack of financing available to developers.
Collins is still optimistic about the state of the fenestration industry. “We made it through the storm,” Collins said. “It’s now time to harvest the benefits of surviving a really tough downturn.”
Collins has 18 years of experience in investments, with nearly 10 years at Jordan, Knauff & Company where he leads the firm’s efforts in raising capital and mergers and acquisitions (M&A) advisory for window and door companies.
Some of Collins’ many contributions to the fenestration industry include publishing the Window & Door Industry Benchmark Survey; conducting semi-annual Window & Door Update webinars and writing a regular column for Door & Window Manufacturer.