Industry Position

The composites industry is undergoing a transition. Historically the FRP industry has been divided largely along two distinct lines; mass production companies utilizing a wide range of production technologies to produce large volumes of components; and smaller companies producing limited or custom production of much smaller quantities of components. Capital cost often confines small companies to open molding or RTM technologies, while larger companies utilize more capital-intensive technologies like SMC and pultrusion as primary production technologies.

While these higher production technologies allowed larger companies to reduce much of the labor cost in producing large quantities of cost competitive products, the labor savings are not the only competitive consideration. As these companies produced more and more products, utilizing larger and larger volumes of materials, the disparity between the purchase costs of these materials grew substantially as the big got bigger.

While it is true that certain efficiencies are incumbent for suppliers doing business with large companies, it is also true that the vast majority of smaller fabricators were relegated to paying disproportionately higher prices, subsidizing the lower prices charged to the major producers. Alone, this might be an acceptable situation, but recently a new factor has entered the equation. Lower priced foreign products have become available to larger customers, further widening the gap in the purchase cost of raw materials. In some cases the difference between the prices charged to large customers and small customers has become so great that it is questionable whether smaller companies can continue to compete in any production technology.

Even more important, unless smaller companies can become more competitive, like other industries, more and more production jobs will move offshore, where fabricators can combine lower labor cost with lower material cost. Since smaller companies have a greater challenge in meeting the tightening domestic regulatory restrictions on their businesses, it is entirely possible that a significant part of our FRP industry could be eliminated.

Our goal is to make companies more competitive, not only relative to other North American manufacturers, but to give them the tools to remain competitive with producers throughout the rest of the world. To the extent that competitive prices and access to better technology can help to strengthen their businesses, we can help. Due to our international presence, we can help companies secure lower material prices, as well as helping to establish foreign production sources of their own.

UCMA draws upon a powerful base. The UMMA builders produce approximately 50,000 boats a year, growing steadily since it’s founding in 1995. They enjoy a preferential supplier relationship with more than 125 supplier partners, Members of United Marine Suppliers Association (UMSA). Many of these suppliers have agreed to extend these relationships to non-marine Members of UCMA.

There is a strong synergy between these organizations. Volume talks and the greater the volume provided to their supplier partners by these two organizations, the stronger our purchasing position. There is little doubt that we can reduce the material prices for any Members, providing they are willing to work with group suppliers and abide by the organization(s) Rules and Guidelines.