Jordan, Knauff & Company are pleased to present the second issue of the Foreign Competition Report for the U.S. Building Products Industry (the “Report”). The purpose of this Report is to provide building products companies a measure of the extent to which their segment is under pressure from foreign competition. By increasing awareness of these competitive challenges, they hope that U.S.-based building products manufacturers will be able to make impactful plans to prepare for this competition and to continue to thrive. Their approach to foreign competition is a market rational one. In other words, they do not advocate limiting or restricting the import of foreign products. Rather, they understand that other countries will be able to leverage their lower labor and structural costs and produce certain products more efficiently than can be done in this country. Natural market forces will cause all products to be manufactured by the most efficient hands.
Jordan, Knauff & Company’s intention in creating this Report is to allow companies to identify product areas that may be under greater pressure from imports and focus their attention on the portion of their own product spectrum that is the least likely to be imported from another country. Fortunately, these will tend to be the most differentiated, highest margin products that a company offers. On the other hand, to the extent that companies may decide to outsource a certain portion of their products to an offshore provider, examining the largest producers listed in each product segment will offer guidance as to the best countries in which to seek a foreign supplier.