AAMA Fall Meeting Underway in Las Vegas
The American Architectural Manufacturers Association's (AAMA) National Fall
Meeting is taking place this week at the JW Marriott Resort &
Spa at Summerlin in Las Vegas. Meetings began yesterday afternoon
for a number of the group's various committees.
The event's opening general session, led by AAMA executive director
Rich Walker, took place this morning AAMA's executive director.
He announced there were 46 new attendees at the meeting and said
that the Strategic Planning Committee has been working on updating
its certification program.
David Moyer of Architectural Testing Inc. provided an update on
the activities of the Structure Work Group (SWG). The SWG has been
conducting a SWOT analysis of the current certification program.
"We are including insulating glass certification under one
roof to provide one administrator/one certification program,"
Moyer said. "Work is ongoing on a proposed certification procedural
guide taking into account all 'A' priorities."
Janice Charletta of AAMA provided an update on the association's
Marketing Work Group, which has been conducting customer need assessment.
"They've been exploring international acceptance, which has
had some limited interest, but broad-based, and will be looked into
further," she said. The group is working to improve state requirement
compliance, and has seen interest from architects, builders, contractors
and dealers. The goal is to get information from the manufacturers
to these end users.
Paul Deffenbaugh, editorial director for Reed Building Group, presented
the "Giant Moves - Top 400 Builders." He said some factors
that affect profitability include increased margins, greater customer
satisfaction and land assembly strategies; the least important factors
were savings on building product costs, reduction in construction
costs and reduction in cycle times.
Consolidation of the largest homebuilders is big. "The industry
is still fragmented," he said, adding that Pulte is the largest
with 2.4 percent of the market.
"[In the next couple of decades], 75 percent of the industry
will be controlled by 20 homebuilders," he said. "Further
growth may come from mega mergers." He added that Wall Street
is driving consolidation. "There are 28 publicly traded companies
and Wall Street wants to see them grow."
He said the building industry has seen growth in the vacation/second
homes market with a significant amount of investment this past year--12.37
percent increase in square footage.
In the top 400 builders, he said, there were changes in types of
construction; custom housing increased the most at 13.5 percent
from 98-06. He also said land development rotates between anti-sprawl
groups and smart growth groups based on political and market forces.
Another fact, he noted, is that 360,000 houses are razed annually,
which is feeding the baby boomer demand.
AAMA meetings continue this week through Wednesday.