Covering The Business
Awning demand opening up in residential, niche markets
Ohio Awning owner Andy Morse likens the showroom of the business in Cleveland's Tremont neighborhood to an elaborate toy train setup.
At the push of a button, canopies glide open overhead, then automatically close as a bulb simulating sunlight dims. There are awnings that retract or expand to follow the sun's path, others triggered by rain and some that will close automatically when the wind gives them a good shake.
Turns out there is something new under the sun. And spurred by factors ranging from energy prices to indoor smoking bans to the slumping housing market, local manufacturers say the awning — particularly the high-tech retractable version - is making a comeback.
"Retractable awnings, of course, have been around for probably 40 years, especially in Europe," Mr. Morse said. "There's just an increased awareness now because of all the different reasons to have an awning."
Mr. Morse formed Ohio Awning's sister company, Reed Awning, two years ago specifically to import and produce retractable awnings such as those from the Swiss company Stobag.
"We import the pieces and parts and manufacture them for our own dealer network as well as for our own (Ohio Awning ) network," he said.
While Mr. Morse declined to discuss sales figures, he did say the company is forecasting 20% annual growth in its retractable awning business for the next few years.
While energy consumption concerns are fueling some of those sales as consumers seek ways to cut their air conditioning costs, Mr. Morse said other niche markets also are opening.
"On the commercial side, we're seeing a lot of retractable awnings being utilized outside for a number of things, including smoking areas," he said. "And we have a number of restaurants we're going to be putting them on" to provide outdoor seating.
The company even has done a custom order for a fish breeder in Minnesota who wanted to simulate longer nights around his tanks.
Even so, industry officials say there's a lot of room for growth in the United States, and they're targeting homeowners with uncovered patios. Michelle Sahlin, managing director of the Minnesota-based Professional Awning Manufacturers Association, says awnings have achieved less than 2% market penetration in that arena. Still, she notes that a customer awareness push the industry began two years ago seems to be paying off.
"If you were looking for retract-able awnings five years ago on the Internet or in the major home products companies, you wouldn't have found a lot of products," she said. "Now, you're going to see lots."
The slowdown in the housing market also is helping. "People are sitting tight and staying in their homes," Ms. Sahlin said. "An awning can provide some additional living space outdoors."
Steve Toth, a vice president and operations manager at The Astrup Co., another Cleveland awning manufacturer, calls the awning market "immature" but is excited about the direction in which it's headed.
"It's emerging, and that's the beauty of this," he said.
