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Chuck Dana, president of Owens Corning’s Composite Solutions Business, gives us his perspective on where the market is growing.
Founded in 1938, Owens Corning is a world leader within the fiberglass industry. The global company had an annual sales volume of $4.8 billion in 2009, with almost half dedicated to the composites industry. Among its largest segments are wind power, water distribution, industrial applications and transportation. Chuck Dana, president of Owens Corning’s Composite Solutions Business, gives us his perspective on where the market is growing.
How do you see the industry evolving in the next few years?
There is a growing market with big demands for all types of applications where composites excel, such as infrastructure, water and energy, especially within the BRIC countries of Brazil, Russia, India, China – and I’d include Mexico.
You say you’re optimistic of 2010 and beyond. What is triggering that optimism?
First, our customers; they continue to be create and find creative solutions for their customers. Also, as tough as last year was operationally, we didn’t reduce spending on technology or research. A reflection of that was when we launched our new S-glass reinforcements (for the defense and ballistics market) last fall despite the economy. I’m optimistic of continued growth as the industry moves more into new market spaces like archery equipment (sports and recreation), as well as aerospace and industrial applications.
What other areas do you see potential for growth?
Renewable energy, including wind energy, continues to be an attractive market. That’s no surprise, but it’s a mega trend that over the next 10 years has big potential for the composites market. I also see potential in solar energy. While it is less developed as we speak, solar applications are evolving in many different directions.
Is that what has captured your attention?
Looking forward, generally applications where corrosion resistance is an important factor has big potential. You hear that water is going to be the new oil, and the global water industry is a big market. We see huge potential just focusing on the movement of water in and out of homes and buildings. Currently, the segment that really captures our attention is pipe relining. One way to fix a pipe that is broken is to dig it up. You have to spend money digging a trench, taking out the pipe and putting in a new one. However, the newest technology is to reline it from the inside out. There is also potential in piping for sewers, desalinization plants, and carbon sequestration plants. It’s a piece of market that is advancing so quickly, and a place where fiberglass products have an opportunity to provide good solution at a moderate cost.
What is driving the competition?
The consistent motivator we see everywhere is opportunity. In the BRIC countries alone, they’ve grown from barely a blip on the radar of composites demand to nearly 35 percent of the market in just 10 years. That kind of growth, combined with the fact that composites are still only about 1.5 percent of the materials industry, means there’s lots of head room for all of us to continue to grow this industry.
How do you try to “think global, act local?”
It’s easier for us than other companies because in most places, we are local. But the best way is by continually evaluating the best places to invest, being prudent with how you invest and remembering to think like your customers, who usually are global.
How do you create value for your customers?
Creating value starts with alignment of interests. We both want to be successful for our shareholders and generate investment-grade results. In order to create value, you need to understand what’s important to the end game. When we are looking at a product we like to think “how will that product work” and “how can we add value to that?” We put our money behind invention, selling, and a good technical support team to make sure the product does what it’s supposed to do. Some of the most interesting people we have are our technical people—the customers really appreciate them.
What do you believe would help the composites industry expand its presence?
Education. Our industry has, on average, grown faster than the GDP around the world. However, we’ve only just begun to truly transform the materials market and get the world thinking differently about how composites’ stronger, lighter and more durable properties can change the performance of everything from infrastructure to transportation. That continued push to get the world thinking differently is a key objective of our new “Composite App Challenge,” where we’re challenging the world’s professionals and students to find the next big composite application that will help take our industry to the next level.
