PFMI looks for growth in 2014 and beyond –
By John Ryan, NFBA Director of Market Development –
A recent study commissioned by NFBA forecasts that the post-frame industry will grow 35 percent by the end of 2017. That sounds promising, but it is important to understand that the growth will come largely from outside the agricultural market, which in 2013 represented more than two-thirds of the overall post-frame market.
According to FMI Corporation’s 2013 Post-Frame Market Sizing Model Report, post frame’s growth over the next five years will be driven primarily by residential and commercial markets, growing at 17 percent and 9 percent per year, respectively. Agricultural building—a longtime mainstay for post frame—is expected to be the slowest-growing market for post frame, growing only 1 percent per year through 2017.
The Post-Frame Market Initiative, NFBA’s market development program, is focused on expanding post frame into the commercial markets. PFMI has plans in place to expand the market for post frame in 2014 and beyond.
Fund-Raising Initiatives Pave Way for Success in 2014
Throughout the second half of 2013, PFMI representatives were busy pitching the benefits of the program to audiences in Illinois, Ohio, Oklahoma and Pennsylvania. A meeting was also hosted during the METALCON International Exposition in Atlanta in October. Feedback was very positive, and PFMI leaders established a total program budget of $500,000 for PFMI in 2014.
Also in October, PFMI submitted a proposal to the Softwood Lumber Board that outlined a detailed plan of work for 2014. In November, PFMI was pleased to learn that the Softwood Lumber Board had approved NFBA’s request of funding in the amount of $175,000 for the PFMI program.
Key PFMI initiatives in 2014 will include these:
Expanded educational offerings—PFMI seeks to expand its reach within the design community by promoting its curriculum through established online universities with extensive audiences. PFMI also seeks to keep the thousands of designers who have already taken courses engaged by updating existing courses and introducing several new courses.
Targeted marketing outreach—PFMI’s primary obstacle is misperceptions about and lack of awareness of post frame among key building decision makers. Increasing the efficiency and effectiveness of marketing campaigns will be essential to the program’s success. Keep your eye out for a newly redesigned PostFrameAdvantage.com in early 2014.
Leveraging research and technical advancements—In 2013, PFMI funded a complete overhaul of the Post-Frame Building Design Manual, and in the first quarter of 2014 the updated manual will be available for distribution. Research initiatives for 2014 include projects that will study the thermal and seismic performance of post-frame buildings.
Measuring success—PFMI will continue to employ and enhance numerous metrics to identify key drivers and opportunities, measure the health of the industry and quantify the impact of its programs.
Stay tuned for more information about PFMI’s progress.
PFMI Plans for Future Growth
PFMI was created in 2007 as a five-year program to expand the use of post frame into the light-commercial market. The timing was not optimal, as it turned out, because U.S. construction markets fell victim to the global financial crisis of 2008–2009. From 2007 through 2011, U.S. construction markets declined a whopping 45 percent and have only recently shown signs of growth. PFMI saw this moment as a perfect opportunity to take a closer look at the program and establish a new five-year plan.
PFMI has established growth goals in the following areas:
Funding—Since 2007, more than $3 million has been invested in the PFMI program. Much has been accomplished, and the foundation has been laid for future growth. Now that construction markets appear poised to rebound, increased investment in PFMI will allow the program to capitalize on its successes and have meaningful impact so that post frame can capture its share of the growth.
Programs—Although PFMI intends to stay the course with its core strategies—we believe that we are focusing on the right things and doing them well—we constantly look for opportunities to improve and enhance the program’s strategies and tactics. PFMI will also pursue growth opportunities in other nonagricultural markets, including residential and institutional markets, as appropriate.
Impact—Current forecasts indicate that post frame will grow 35 percent by the end of 2017—and those forecasts assume that PFMI continues at its current levels. If PFMI is able to increase its operating budget and expand its marketing efforts, however, the goal is to commensurately increase the impact of the program. Increased funding and marketing efforts will have an even more significant impact on emerging markets for post frame like commercial and institutional buildings.
The investments made in the PFMI program—more than $3 million since the program’s inception in 2007—have been raising awareness and shifting perceptions in spite of a challenging construction environment. Now that the construction market is rebounding, post frame is in a strong position to take market share away from competing construction methods. PFMI leaders are confident that the post-frame industry is poised for growth over the coming years. FBN