CFDA Newsletter

Program Schedules:

TUESDAY, MARCH 10 DAVID ORTH speaking on:

The Ceremonial Object: Design for Transitioning and Dwelling"

If you are known for being handy with wood or metal, sooner or later a client is likely to request a cremation urn or a meditation table. At first we approach these projects like we approach any design problem. But then 'something' whispers that there is more to it. We imagine that there is a shaman-in-a-trance or monk-on-a-mountain somewhere that should be designing these sorts of things. But we would only be half right.

David Orth will talk about several experiences with requests of this sort. He is developing a short list of principles that would help designers wrap their thinking (& feeling) around these special cases. He'd like to run them past us and get our feedback.

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CFDA Meeting Report:

CFDA Minutes - Board Meeting February 17, 2009

Sixteen members and one guest in attendance, and the meeting began at 7:10 with introductions all around.

Chris began with a report that we have 67 members now and that the CFDA has a positive cash flow with about $4,700 or so in the bank.

The Rising From Ashes show actually had a positive cash flow, which marks the first time in CFDA history that a show generated more cash than we spent. This met with rousing applause for show chairs Dolly Spragins and John Kriegshauser.

The CFDA still needs your ideas for topics and venues for our next show(s). If you haven't already stepped up to share good ideas, please do so.

Also, if any members have not submitted their membership profile, or if you'd like an updated profile published, send it to Rob Frazier at rgfrazier@mac.com .

Per Dolly, we've got an opportunity to be at the Elgin ECO show on April 25th. They're looking for three to five pieces from the RFA show, the kiosks/video and a few volunteers to staff the booth. The one-day event will take place from 9:00 AM to 4:00 PM. Dolly will follow up with the website for further details on the show. If you're available, and if your piece is available, please let her know.

In a piece of disappointing news, the Miami show turned out to be a non-starter. There just wasn't enough money to cover the travel and lodging expenses for all the furniture and the three volunteers. Thanks go out to Brandon Fenninger, Hal Link and Matt Seiler for volunteering to take the trip and spend long hours in the show. But ultimately the downturn in the economy is having its effect on the show and its budget.

This month's CFDA meeting is being held a week later than per our usual schedule, as last week Dolly, John and Bruce Horigan were giving a presentation about urban timber at the Chicago Center for Green Technology, tying in with the RFA show's time there. It went very well from all reports.

Dwayne Sperber has been named our Single Point Of Contact for the Milwaukee Fine Furniture and Furnishings show, which will be held from September 25th to 27th of this year. As has been covered in various emails and offline discussions, this three-day event is held annually in downtown Milwaukee at a very handsome convention hall.

Each year this retailing show sports two components. Outside the event room's doors, somewhat near the ticket booth, they host a special event. This year's special event will be our Rising From Ashes show, complete with all of our bells and whistles. As Wisconsin is just now getting its arms around the fact that the EAB is within its borders, this represents a solid press opportunity for both Carla Little (the owner of the show) as well as for the CFDA. It's a win-win for all concerned.

This will require show docents just as we've needed in the past.

As a second, separate component of this show, we have been allotted six ten-by-ten booths at a reduced rate. We will be able to aggregate them together and create one large CFDA space for members who would like to bring along reasonably sized items for sale in the show. And the $3,100 fee for the six booths will be amortized among the willing participants.

As an important note, as of this writing twenty-two members have expressed interest in displaying. Simple math bears out that this is about 27 square feet per person (not including aisle space!). So in order to accommodate all of the interested members, and with an eye towards allowing the buying public the ability to meander in and among the pieces, we're going to have a hard cap on the amount of space that is permitted per piece. Look for more information and details about this. But if you're interested in being juried into this selling show, start considering pieces that will take up a realistic maximum of three feet by four feet.

So even if you are not displaying a for-sale piece in the hall, we're still going to need volunteers to monitor and answer any questions that our visitors may have.

More information will be evolving, so stay tuned.

Rob voiced our mutual concern for member Tor Faegre, who has been diagnosed with acute myelogenous leukemia. While he has recently been released from the hospital, his outlook is still guarded and his treatment is still something of an uphill battle. Our thoughts go out to Tor and his bride Sue as they continue to brave the challenges.

The business meeting concluded at 7:40

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Program:
John Kreigshauser - 'Furniture in Recession'

John not only is a designer and fabricator extraordinaire, but in an earlier time in life he studied economics. So this gives John a unique view on the situation and the challenges we all face.

John began by discussing recessions, in general. They used to be fairly regular events and people planned for them. They generally used to come on about a four year cycle. But somehow this has become forgotten and people have become remarkably less cautious. Inevitably, this is having its effect (!!) on those who ignored the warning signs. And by definition, this effect is trickling down to those of us who design and build luxury goods. We all have to start thinking defensively.

In our industry several things occur during a recession. The most noticeable is that customers disappear. By mutual agreement, most of us have experienced this within the last year. People are drawing in and spending less. But it goes beyond just that. As more people find themselves highly leveraged it invokes a wait-and-see attitude. As consumers they are now highly motivated to finding the best deals, even if that means buying lower quality than they normally would have. And for the custom builder, this means that we're now competing against each other, generally speaking, in a hostile economic environment. We can expect that people will wait and see if their money will buy more as they postpone non-essential purchases.

This leaves the individuals and companies in the industry to collectively chase fewer available dollars. Suddenly the larger millwork houses begin to poach smaller jobs that would have routinely gone to the small operators. Suddenly displaced designers and crafts people try to work for themselves; which, of course, means that there are even more companies vying for the same dollars. And the net result is that it's very much a buyer's market. Consumers know that if they wait long enough they'll find somebody hungry enough to take a job at a loss, simply out of a need to keep busy.

These larger shops know that they're losing money doing the small jobs. But they do them anyway. The displaced designers and crafts people face a steep success curve, and few actually make it in this kind of a climate. And the niche makers, who have traditionally handled the small jobs at a profit, find themselves in bidding wars. This hurts badly when you're already operating as lean as you can be. Hard and soft costs won't simply disappear just because the client wants a lower price for the same work as a year ago. So current and past clients start drying up as they take their business to other individuals or companies who they know will do the job for less money.

So as more and more individuals chase the luxury good market we begin to see a devaluation in the worth of these goods. So even if we land the work, the value of the jobs is lower than it once was.

Knowing what the underlying reasons are for the situation is valuable. But it doesn't immediately provide a road map to better days. One of the first things that has to occur in a situation like this is to cut costs. We have no idea what the duration will be of this downturn. So the best, first thing to do is to stop hemorrhaging cash.

Turn down lights. Turn down the heat. If your leases are up, renegotiate them. Generally speaking, landlords would rather have SOME rent coming in rather than vacancies. Car pool. Share your work space with another craftsman. And whatever you do, avoid as many hard financial obligations as possible.

Of course, proactively the solution is to find a way to increase the revenue stream. Even in this economy there are some industries that are essentially recession-proof. Like what, you ask? There are still emerging industries that are doing well. The health care industry is still thriving. And bankruptcy and collections attorneys are generally working well. Government, security and defense industry people are still going strong, as are the kind of corporate officers who have corner offices. These are the kinds of individuals you should be seeking out.

It also means that it is likely time to revisit your product offering. Rather than depending on the big-ticket items, start developing a line of smaller, more affordable items and make up the difference in quantity. Or find out if there are opportunities in related industries such as antique repair. And we don't necessarily like to face it, but there is the alternative of finding work outside the design/fabrication industry - even in this climate.

But if that's not a realistic option for you, you have to learn to get competative. Find out what it is that you can do to do things better, faster and cheaper than your competition (you do know who your competition is, right?). This is also the time to begin asking your customers what it is that they want. Drill deep and wide and find out what the needs are. Then determine if you're able to meet the needs in a cost-effective manner.

Shameless self promotion is also a concept that needs to be embraced. Send out newsletters to all of your past clients. Let them know you're still out there and fill them in on what you're doing. Reach out and make new friends in the architecture or interior design world. Take people to lunch on your dime. Get in front of as many people as possible, which includes generating press if you can.

And finally, this is the exact time to begin preparing for the future. No, we have no idea if the pendulum is still on the downward part of the swing or if it's finally on its way up. But this is the time to act in as proactive a way as possible.

Find auctions or sales of used equipment. Companies may be closing, but their assets have to land somewhere. Look to places like WoodWeb.com, Craig's List and other places to find auctions or sales. Your buying dollar is at an all-time high right now in this particular arena. Liquidators are motivated and if you have the cash you may strike some remarkable deals.

And now, while business is generally low, fill the spare time brushing up on things like your computer skills, or revamping your website. Take some classes. Write a book in your industry or develop speculative designs. Utilize the down time to posture yourself for the pendulum's upswing. This is what will differentiate you from your competition once the recovery blooms.

This program was as much round-table as true presentation. Notably, Bruce Horigan observed that it's in a recession that people break their old habits. Get in front of people now to take advantage of that change in their paradigms.

As Louis Pasteur once said, "Chance favors the prepared mind". And it might be observed that a failure to prepare is preparing to fail.

Which way you'll land, and your continued success, depends on what you chose to do right now, despite the doldrums of a recession.

The program ended at 9:08p.m.

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