I posted this on another thread but wanted to post it under it’s own heading.
We’re now on day three since the bomb was dropped. I hope we’ve all had a chance to grieve, mourn, whatever.This is certainly a bad time for everyone and the best way for us to survive will be working together.
So now it’s time to get on with where we go from here. The state of the industry in the US is that PU/PE is over. I’ve had a chance to talk with many of the urethane blank manufacturers worldwide and simply put they won’t fill Clarks shoes. Not even close at least for the foreseeable future. Aus. has effectively cut exporting of foam and the foam they will export will probably be in the form of finished boards. China’s capacity isn’t even enough for their production, Europe’s production is small and Clark was the major supplier there. Brazil and South Africa don’t have nearly the capacity to export. Domestic blank manufacture is 5% of what it was last Friday. Guy’s, were on our own. This leaves us with EPS/Epoxy. For those who loved urethane and Clark I’m truly sorry that this has come to pass. You may think that I’m rejoicing in the streets but frankly this is the most daunting thing that’s ever landed in my lap. It appears I now go from revolutionary to leader in one day. Everything I’ve ever done and learned in my life I will now need. This is the scariest scenario you could ever imagine. And yet I do love a challenge.
The state of US board building today is shambles and it will take all of our best efforts to build a new future from what is left. So here’s where I’ll start.
Foam
EPS foam is widely available through EPS expanders nation wide. These plants are HUGE and produce more foam in a week than Clark produced his entire career. There will NEVER be a shortage of foam. They may occasionally run out of a density for a week or so but in the end they can bury all of us in piles of foam blocks.
For those who love the ride of urethane, there are new densities available in just the last month (2.5 same as superlight and 3.0 same as green) which will mimic urethane better than anything that the EPS block makers have had in the past.
There are also some specialty foam makers who might now see the sense in building blanks. They can produce blanks about one per minute that have very good properties out of steel molds. Jim Richardson in HI already has some of this being produced.
For those who want to buy blanks which are ready to shape, Segway Composites and Hydrofoam in CA, Craig Chafin and S-Foam in TX , RR, Coda Core and Davo in FL, Natural Art Cape Hatteras in NC, Fly in NJ, Shuler Systems in OR all make blanks. There are perhaps also others and I’m sure there will be more in the coming months.
Resin
The availability of epoxy resin is something I’ve spent the last two days addressing. Two years ago I moved to Tucson AZ. I moved here for many reasons but one was to improve my capacity and to begin marketing to the west coast and HI. In the two years since the move I have established good business ties with some really great people and managed to get some product out there into the public. The plant I moved to in Tucson is a large polymer plant, PCI. They produce many polymers for numerous real world industries all over the world. Their best known product to consumers is the paper coatings for ink jet print paper. The glossy stuff. My situation here is that I lease space and time on their equipment for the production of RR materials. The capacity here is vastly larger than the entire surfboard industry could EVER need. Having said that there isn’t much resin in the pipeline right now. It will take a few weeks to ramp this up but I suspect that we should be looking pretty good by January. What I need to find out from you guys is what you think you’ll need. The capacity is there, so no need to panic buy or hoard. This will only tie up money your going to need. There is one issue we will have in supply and that is we will not be able to finance this. This challenge will take every dime we have to pull off so we will be forced to sell on COD terms only. We can take credit cards and this is true with our distributors as well.
Distribution
Our distributors will be very important in all this. These are a bunch of really great guys who have helped me over the years to get where we are today. I’m going to be depending on them and I’m sure they will come through. The distributors here in the US are:
Graphite Master - LA CA
Fiberglass Florida - Rockledge FL
Natural Art Hatteras - Hatteras NC
Shuler Systems - Seaside OR
Craig Chafin - Freeport TX
Jason Troy - Oahu
Topperboards - Kauai
Foam, Fins and Fiberglass - Ventura CA
Fiberglass Santa Cruz - Santa Cruz CA
I want you all to know that we are behind you guys all the way. The tech we have is proven over many years and the knowledge to pull this together is right here on Sways (thanks Mike) By the way, I think we should all sit down today and write this guy a check.
It too bad that this unfortunate turn of events happened during Christmas season but in some ways the timing is about as good as we could have hoped for. We all have a chance to relax, retool, retrofit, repair and prepare for the selling season next summer (Good thing this didn’t happen in May).
I hope you all see some bright spots in all of this, there are some. Custom surfboards will become just a bit harder to get so those that make the transition stand to make the best money they’ve made in many years. This softness of supply will make the US custom board what it should be, the most sought after piece of personal surfing equipment you can buy. For the first time since the 60’s surfboard builders will be paid what their worth. The future in terms of environment is now assured. We will no longer have to worry about the EPA doing to any one of us what they just did to Clark.
In closing I wish nothing but the best for everyone. I look at this as an opportunity for the entire industry to do better. Lets face it in many ways it wasn’t so hot the way it was. We have a chance to reinvent our businesses and our lives and hopefully make them better.