e-glass weekly - August 28, 2007 | Vol 2, Num 35
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More consolidation coming
Customers respond to rumored Efco-Pella deal
While representatives from both companies aren’t talking, many industry players are already responding to the much-rumored deal between Efco Corp. of Monett, Mo., and Pella Corp., of Pella, Iowa ...
Customers respond to rumored Efco-Pella deal
While representatives from both companies aren’t talking, many industry players are already responding to the much-rumored deal between Efco Corp. of Monett, Mo., and Pella Corp., of Pella, Iowa.
If the deal goes through—an anonymous source says Pella will buy Efco before GlassBuild America, Sept. 10-12—it will mark the second major industry merger in the past three months, following the late June purchase of The Vistawall Group of Terrell, Texas, by Oldcastle Glass of Santa Monica, Calif.
“We’re seeing more consolidation. The little guy is going,” says Chuck Glidden, manager at American Glass Co. in Waterville, Maine.
Clive Thatcher, manager at Island Glass Co. in Bermuda, agrees the industry is shrinking as companies merge and speculates increasing overseas competition might be part of the cause.
“China is going to become a major player. … [North American companies] can’t stay as they are,” Thatcher says. As a result, competing companies serving the same geographic areas will merge to save costs, he says. “You’re going to find a lot of consolidation.”
In addition to having an industry-wide impact, consolidation also hits customers in good and bad ways. Pella's possible purchase of Efco is no different.
Thatcher says Island Glass has turned to Efco for almost all of its projects for years, and it will be an adjustment working with the new representatives. “The biggest problem we’ll have is getting used to new people, like when Oldcastle bought [Fulton Windows of Mississauga, Ontario]. The Oldcastle people came in with a different philosophy, and it takes awhile to get used to it,” he says.
Glidden says customers will also have to become acclimated to shifting to such a large supplier. “There’s more red tape, working with a larger company, and it’s even more difficult to get your product,” he says.
Despite the possible challenges ahead, Jerry Larson, president of Larson Glass Co. in Puyallup, Wash., says he is optimistic about a merged Efco-Pella. “I was told Efco’s management team will stay in place. I just don’t see any downside to this move,” Larson says. “I’ve dealt with both companies … they’re both very professional to deal with.”
Stay tuned to e-glass weekly and www.glassmagazine.net for updates.
Send us your comments about a possible deal.
—By Katy Devlin, e-Newsletter Editor, e-glass weekly
More top stories
Safti First charges three companies with patent infringement
San Francisco-based fire-rated glazing manufacturer Safti First filed a patent infringement lawsuit against Anemostat of Carson, Calif., Pilkington PLC of the United Kingdom, and Technical Glass Products of Seattle, according to an Aug. 27 Safti First release … read more
Nippon to build first plant in India
Officials at Japan’s Nippon Sheet Glass Co. Ltd. announced plans to build a $20 million auto glass plant in India, in cooperation with British unit Pilkington Group Ltd., according to an Aug. 21 Reuters report. The plant, scheduled to begin production in 2008, will supply 500,000 windshields annually to local factories as well as the United States and Europe, according to the report ... read more
Schott to expand Kentucky plant
Schott North America Inc. of Elmsford, N.Y., will expand its Louisville, Ky., facility, adding about 20 jobs and additional seasonal employment, according to an Aug. 29 company release … read more
UK artist melds curved glass and painted fabric
Artist Carole Waller of the United Kingdom developed a technique of enclosing painted fabric between sheets of glass. Waller created a 2.5 meter high curved glass installation using the technique for The Pound arts center in Corsham, United Kingdom, according to an Aug. 22 article from ArtDaily.com … read more
Plymouth, Mich.-based Sealant Equipment and Engineering, introduced the Peltier series thermoelectric temperature controller for controlling the fluid temperature of adhesives, sealants, lubricants and other materials in meter, mix and dispensing systems ...
Plymouth, Mich.-based Sealant Equipment and Engineering introduced the Peltier series thermoelectric temperature controller for controlling the fluid temperature of adhesives, sealants, lubricants and other materials in meter, mix and dispensing systems. The controller uses the Peltier-Seebeck effect to directly convert electrical voltage to thermal differentials. This effect, which is reversible, either heats or cools fluid materials with precision to the temperature set point. The controller is mounted to a manifold where the fluid passes through to be heated, maintained or cooled, and the manifold can be mounted in-line or on fluid dispensing equipment such as the company’s one- and two-component metering systems. Optional accessories are fluid pressure sensors, fluid pressure gauges, and inlet and outlet flow control valves, among others.
734/459-8600 | www.sealantequipment.com
Construction slips 11 percent in July
Nonresidential segment remains strong
New construction starts fell 11 percent in July to a seasonally adjusted annual rate of $588.1 billion, according to an Aug. 22 release from McGraw Hill Construction of New York. The value of construction from January to July reached $363.2 billion, 13 percent below the same period last year ...
Nonresidential segment remains strong
New construction starts fell 11 percent in July to a seasonally adjusted annual rate of $588.1 billion, according to an Aug. 22 release from McGraw Hill Construction of New York.
The value of construction from January to July reached $363.2 billion, 13 percent below the same period last year. Though, with the residential segment excluded, construction starts during the period show a 2 percent increase year-over-year, according to the release.
Nonresidential starts fell 23 percent in July, following an uncharacteristically strong June that saw a 27 percent increase in spending.
“July’s slower activity for nonresidential building was expected, since June had been boosted by the start of several massive projects,” Robert Murray, vice president of economic affairs for McGraw-Hill Construction, said in the release. “The year-to-date figures show that non-residential building … is performing fairly well in 2007.”
Despite the decline, several nonresidential segments saw growth during the month, including public buildings, up 23 percent, transportation terminals, up 27 percent, and store construction, up 4 percent. Store construction sits 12 percent year-over-year.
“One of the more interesting parts of this year’s nonresidential market is the continued strength for stores and shopping centers,” Murray said in the release. “This project type has typically followed the pattern shown by homebuilding, but so far it has been able to withstand any downward pull from the weak housing sector.”
Read the full release here.
More business headlines
Nippon Sheet Glass raises fiscal year net profit forecast to $457 million
Officials from Nippon Sheet Glass Co., Tokyo, said Aug. 23 that its group net profit almost doubled in the April to June period, due to subsidiary U.K.-based Pilkington Plc earnings and asset sales, according to a same-day Dow Jones Newswires article.
Nippon Sheet Glass increased its profit forecast for the fiscal year through March to $457 million from $388 million, and its revenue forecast to $7.33 billion from $7.15 billion, according to the article.
For full report, click here.
Chinese government approves Fuyao stake sale
Officials from China’s largest auto glass maker, Fuyao Group Glass Industries, said Aug. 24 that the Chinese Ministry of Commerce approved the sale of a 10 percent stake in the company to Goldman Sachs, New York, according to an Aug. 25 China Daily article.
Fuyao can sell up to 111.28 million new shares to Goldman Sachs, company officials said in a statement to the Shanghai Stock Exchange, according to the article … read more