News, Markets & Analysis for the Nonwovens Industry Subscribe



Tools

Nice 2 B Niche



small pockets like acoustics stay strong even in the face of unprecedented economic challenges



By Ellen Wuagneux
Associate Editor




Click here to read the full article.
In the acoustics market, nonwovens are continuing to see steady sales despite slumps in the automotive sector and are taking advantage of two key opportunities. The first boon for nonwovens is that improved acoustic performance is something customers are willing to pay for. Secondly, nonwoven acoustic products offer several fundamental benefits—they are lightweight, cost-effective, recyclable and can, in many cases, out-perform competing materials like foam and fiberglass.

Although the acoustic market is, and may always be, a niche area for nonwovens, it represents a potentially important area because suppliers can grow marketshare through value-added innovation, especially compared to competing materials. This is not necessarily the case in larger, commodity markets (say, hygiene or wipes) where tremendous cost pressure is forcing companies to cut back on R&D and new product development.

Just the same, the current focus in all industries is cost reduction and the acoustics sector is no exception. The economic downturn has impacted the use of acoustic materials (particularly in the automotive industry where acoustic usage is closely tied to unit sales). However, industry experts agree that market opportunities still exist.

“As a global supplier, 3M is in a strong position even as the market faces some very tough challenges,” observed Bronwen Kleissler, portfolio manager for 3M Acoustic Solutions. “In response to the challenges of the current environment, we are more selective about the product development projects we take on. In the future, we will need to be even more selective and choose the projects that will have the most positive impact on our business. We also need to be selective in terms of our partners—both of us need to be successful.”

At J.H. Ziegler GmbH, the main challenge is trying to reduce fixed costs without jeopardizing the future. “The trick is to not cut back on the essential things so that you are lean and ready when the recovery starts,” stated Peter Hartwig, managing director. “Fixed costs, like development and sales and marketing, remain essentially unchanged, but the quantities sold are lower. Every car not built means less nonwovens sold, but R&D costs remain unchanged. We have to turn the same wheel for less volume.”

Detlev Käppel, technical nonwovens division director of eswegee Vliesstoff GmbH, also pointed to some hurdles to market growth as OEMs strive to drastically reduce costs. “In general, volumes have gone down as OEMs have cut back production. Some car makers and Tier One and Tier Two suppliers are in financial straits. They may cut back certain parts for cost reasons for certain car types regardless of the poorer quality and lower acoustic performance.”