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September 29, 2009  Philadelphia, PA

While doing some consult work up here in North East Philadelphia, I caught up with editor Mike Shuler from Composites Manufacturing Magazine. Mike had some questions on New Era Composites views on the ever growing composites industry and our niche markets.

ACMA: Why did you focus on the recreation market?

NEC: It was easier to start with products that related more to our own personal hobbies and interests. That allows us to get very passionate about the product we develop because they’re something that we’re probably going to end up using ourselves. Also, recreational products, we believe, have a lower risk and higher profit margin than, say, a plane or a boat. It just seemed like the smart way to go to utilize potential downtime in the shop. I believe if you have the knowledge and you have the tools and you have the space, you should use it.

ACMA: What has changed the most in the recreation market from a year ago?

NEC: The composites industry from a year ago is a bit interesting. I’d say half the industry, including us, has taken a step back in manufacturing. Instead of autoclaving, we ask if we can do it in an oven. Instead of CMC, we wonder if we can shape it by hand. However, it’s equally important for the materials and processes of the industry to advance. It’s just a matter of knowing when to take advantage of them. A skilled technician can make a high-quality mold with simple and inexpensive materials, so depending on the application, highly advanced high-gloss manufacturing methods aren’t always necessary.

AMCA: How has the industry been affected by e-commerce?

NEC: It really depends on the business. We’re a dual company; we do the manufacturing, consulting and design work for other companies. We’re using e-commerce primarily for selling the products we create in-house. If a composite shop has a product they can sell in-house, then they can utilize it. But I think a lot of composites are geared more to the advanced industries such as aerospace, automotive and marine—and those things you can’t really sell online. But a lot of composite companies are using the web to get information out.

I would say that when it comes to selling products or marketing your business, it’s great. I think the right now the industry is geared more towards trade shows and use that as the niche way to get the word out. That’s fine, but they’re going to eventually have to get more into e-commerce to spreading word about products and services.

ACMA: What are the biggest challenges to starting a business?

NEC: Other than money, it would be putting all the pieces together. Starting a business in a highly-technical industry requires a lot of dedication and research. My business partner Eric Barcley and I have 10 years experience in the aerospace composite market, so we knew a lot about the industry, and that it was going to be a puzzle. We thought it would be a small 250-piece puzzle, but when we got into it, we realized it was far more complex, more like a 2,500 piece puzzle. Just putting all the pieces together has been our biggest challenge. But we’re definitely emerging from that.

ACMA: What’s your marketing strategy?

NEC: The current products we’re working on are geared toward young adults. So, our strategy is to market in areas where our demographic likes to shop, including Craigslist and eBay as well as retail storefronts and other e-commerce sites. We also have people who have tested and used our products over the last six months, and that helps spread the word. At that age group it’s an “everybody-wants-what-everybody-has” mentality, so we market based on that idea.

ACMA: Is it the demographic itself that inspired the online focus?

NEC: Well, in our society, everybody shops online. Sure, if go to the mall on weekends you’ll see it’s packed with people shopping. But a lot of people are busier nowadays. People have to work multiple jobs to make ends meet and it’s just as easy to go online, and after a couple of clicks purchase a product that will get to you via mail in a couple of days. Sites like Amazon show the sales ranking for every product and the numbers are through the roof!

ACMA: What do you think would help the composites industry expand?

NEC: It just needs more awareness and more forward thinkers. Composites can be implemented in almost an infinite spectrum of products and processes. I grew up in NYC; I didn’t know the subway car sheets or the toll booth dividers, and now bridges and panels on buildings were composites, but they are! Composites can really benefit from the green movement that’s going on. A lot of composites are handmade, and that helps reduce carbon emissions. If the industry moved more on the green edge, it would stay a step ahead.

ACMA: Do you think all markets can go in that direction, or are there some which cannot?

NEC: I would say a good deal of them could go green. For instance, the push for more fuel-efficient cars will open the door for more lightweight parts to be manufactured. In the past, lightweight parts were limited mostly to the performance racing market. As far as aerospace goes, companies like Boeing are putting more and more composites into structures such as the Dreamliner. It’s made of 50 percent composites, whereas its predecessors were only about 30 percent (not including the interior panels, which are obviously composite, as well as the sheets and vanities.)