AAMA Responds to Concerns About Possible Merger

Editor's note: Last week's DWM newsletter included a letter from Bill Thornton of ICT composites regarding the possible merger between the American Architectural Manufacturers Association and the Window and Door Manufacturers Association (WDMA). Following is a response to that letter from AAMA.

Dear Bill:
We appreciate hearing from you about the ongoing consolidation negotiations with WDMA. As the chairman of the AAMA board and co-chairman of the Consolidation Team, I am entrusted with the enormous responsibility of representing AAMA membership and developing strategic direction for the entire organization.

First of all, thank you for all the positive comments about the AAMA organization, its rich history, progress and stature within the industry. I have been proud to serve the board and membership and now have even more appreciation for the outstanding reputation and accomplishments of this organization.

You are not alone in your concerns about a possible consolidation with WDMA; throughout the negotiations, we have received mixed results that range from extremely positive to very negative. More recently, however, it has become evident that we have not done a very good job communicating the primary benefits and compromises that are evolving for AAMA members. I would like to take this opportunity to provide you with more insight on the concerns raised in your letter:

1. Supplier Representation on Consolidation Team
At the 11/11/04 Board conference call, Henry Taylor (Architectural Testing - a supplier member) was added to the AAMA representation on the Consolidation Team by unanimous approval.

Henry will attend the upcoming joint meeting on December 9-10.

2. Supplier Voting
Voting occurs at many levels; ballots, boards, committees, officers and general membership. Note that the current voting plan in the new organization includes supplier voting at all these levels: 2 seats on a 13 member Board, equal voting (with manufacturers) on all committees, task groups and general membership issues, as well as holding chairmanships and officer positions.

This is a vast change over the current WDMA supplier voting restrictions.

In WDMA, suppliers are not permitted to hold task group or committee chairmanships, they are not allowed to vote on whole unit standards, and are often excluded from closed meetings and sensitive discussions.

The only proposed difference from the current AAMA voting privileges today is that manufacturers have one final additional vote on whole unit standards (once every three years, if the history of 101/I.S. 2/A440 is any indication), after all comments and negatives have been resolved satisfactorily. Another way to view this is as adding another approval step to the balloting procedures that AAMA already has in place.

3. Members' Equity Disparity
We will not turn over our hard earned members' equity! It is important that both organizations contribute an equal and prudent amount to the new organization. The key challenge is the handling of the additional AAMA funds that remain after equal start-up amounts are determined.

Several options for funding the new organization are under investigation and a final concept has not yet been agreed upon. The Consolidation Team is fully aware of the overwhelming membership concern about the equity and will keep you apprised of proposal details as they become available.

4. Technical Roadmap - Standards Development and Approval
The roadmap task group has spent a great deal of time (10 full days) developing a procedure and organization that combines the best elements of both organizations' technical standards development. The roadmap has undergone many revisions and is much less complex and very similar to the current AAMA standards development.

In addition to incorporating the super veto provisions of the AAMA balloting process to protect voting minorities, it has a strategic objective check. The scope of each new task group and committee will be reviewed for compatibility with the strategic imperatives or objectives set for the new organization. This is something not really formalized within our organization, yet it is certainly discussed at the product group and council levels.

5. Material Councils
There is no plan to eliminate any of the existing AAMA Material Councils.

Instead, it is intended to create a Material Council Committee to coordinate individual material council activities and funnel requests to the Board.

6. Staff Combination
There is a commitment on both sides to strengthen staff resources and provide better and expanded support. An optimum organization structure is under development. After a brief transition period, the new organization will be better than the combined staffs that currently exist.

7. InstallationMasters Certification
It should be recognized that only the certification program and its attendant liability and risk would not be part of the new organization. The majority of the program administration is already licensed to ATI. In addition, there is no plan to eliminate the ongoing AAMA task groups that are dealing with installation activities such as flashing.

8. Non-Fenestration Products
Strategic focus on, and dedication to, fenestration is the primary rationale for excluding non-fenestration activities from the new organization. While both organizations have agreed in principle to focus on fenestration, there are many commonalities in the performance requirements and code references for fenestration, decking and railing and thus a great deal of interest from supplier and service provider AAMA members.

Because the number of non-fenestration task groups is small, (3 in Naples), and the drain on resources minimal, the Consolidation Team will add this subject to the agenda for the next Joint meeting to be held on December 9-10.

Representing the industry with one voice is important; not only on the code floor, but also with HUD, DOE, NFRC, architects, specifiers, homebuilders and remodelers. Combining the best of both organizations will give us more influence in the market, period. We agree with you we have built our resources to the point where we can expand our technical expertise and code influence as well as our industry promotion and marketing initiatives.

The AAMA members of the Consolidation Team believe that there is much to gain in bringing the associations together. The negotiation process is well underway, but not finished. Your input is very valuable and will be taken very seriously.

Right now there are too many challenges to waste our resources in duplicative efforts, attending the same meetings and competing with WDMA. Even though compromises are inevitable, the future is much brighter with one stronger organization.

Sincerely,
Chris Fuldner
AAMA President