Putting our commitment to customers and our investment strategy to the test was the focus of our recent Partner Panel meeting. Held this September, the meeting allowed us to address issues and opportunities for both Kawneer and our customers and not only share what we have accomplished during the past year, but also learn more about how customers view our current levels of performance and hear suggestions for improvement going forward.

In summary, customers told us they were encouraged by the new product launches as well as recent software enhancements. Customers felt there is a need to improve our sales presence with architects to become the “basis for design.” And on the service side, we received feedback and input on opportunities where we can improve responsiveness in acknowledgments, lead times and Service Center communication. We will continue to review input from this meeting and make assignments to take action on many of the observations and recommendations made by the Partner Panel.

As you are aware, this fall our Bloomsburg facility was affected by severe flooding, which presented manufacturing and delivery challenges. Recovery efforts are underway with initial clean up complete as well as equipment assessments. Our number one objective is addressing order fulfillment needs. We noted in earlier communications that every existing order that has been affected by the Bloomsburg flood will be rescheduled beginning with December 2011 dates. We are continuing to work as quickly as possible to re-establish production in Bloomsburg and will keep you updated as we progress.

Though 2011 has presented its share of challenges, we continue to work diligently to deploy initiatives that will help us increase both performance and opportunities in the coming year. From ultra thermal and energy efficient solutions to increased communication outlets and new product development activity, we have plans in place that will position Kawneer and our customers for increased success in the midst of continued market volatility. We remain focused on the future and value your ongoing input and support. We would like to wish everyone all the best this holiday season and look forward to a successful 2012 together.

Diana Perreiah
General Manager, Kawneer North America

As you know, Kawneer has a long history of gathering customer input as part of our strategic planning and improvement process. From our annual Partner Panel to quarterly webinars and customer surveys, your input is invaluable and it helps ensure that we are aligned as we invest and grow together. With results gathered from our first Net Promoter Score Customer Survey in 2010, we were able to review feedback and determine areas of the business where we have been successful as well as areas that have opportunity for improvement. One such area that was noted for improvement was in customer responsiveness. Because of the input that you provided in the survey, we have been able to put specific action plans in place and have been measuring the time it takes to respond to voice mail messages, what our “live call” ratio was, and other measurable interactions.

One key component of the survey helps us identify the percentage of our customers who would recommend us to a friend or colleague – our Net Promoter Score (NPS) – and it is an important indication of customer satisfaction. Kawneer’s NPS score improved from 38.5 percent in 2010 to 45.7 percent in 2011, and we have identified over 59 percent of customers as “Promoters,” or those likely to recommend us to friends or colleagues, so far in 2011. While we are pleased with this trend, we continue to work on ways that we can improve even further.

Knowledge of what customers want and merging that with what your company does best will help create a successful business. Through your direct feedback and these ongoing communications we are able to better understand your needs and how we can create products, tools and services to not only meet, but also exceed them. Thank you for the continued feedback and support you provide. It is only with your help that we can continue to grow as a customer-centric and economically resilient company for years to come.

Diana Perreiah
General Manager, Kawneer North America

Earlier this month we held our inaugural Customer Webinar. Designed to build on the two-way dialogue of our annual Partner Panel sessions, we focused the agenda on customer-critical topics including recent product launches and enhancements we have made to our KawneerDirect customer portal. We also updated the group on the sales integration plan for Traco and Kawneer. As we gather feedback from the first session, we will make improvements to the format and content. I encourage you to attend these sessions as we work diligently to evolve the content and the frequency of our communication with you. I look forward to receiving your feedback about how we are doing through opportunities such as post-webinar surveys as well as our second annual customer survey scheduled for May 2011.

While the webinar covered a lot of good ongoing effort to support the customer, I wanted to take a moment and talk about the aggressive goals we have set for our organization in 2011, which I believe articulate our culture and our commitment to customer service. As always, safety will be of primary importance and we will continue to strive to make year-over-year improvements. As part of one of the safest companies to work for in the world, we believe that we can also help you drive safety in your organizations and in the field. I would encourage you to contact us if you are looking for benchmark practices or need support in risk reduction.

Another major initiative will be to make another step change in our product quality. Last year, we improved all of our internal and external quality measures by more than 30 percent. This year, as part of a larger initiative within Alcoa, we are further challenging ourselves to develop and maintain a deeper understanding of our quality issues and systematically reduce our quality failures. This is an area where Alcoa brings tremendous parental advantage with leading subject matter experts on process and quality control. This will translate to a direct benefit to our customers who expect the right product, made the right way, the first time.

For a business to achieve success, especially during challenging market conditions, expanding the lines of communication – with customers, employees and market influencers – is critical. Whether providing feedback about our investment in product development or sharing questions regarding customer service responsiveness, your communications have been invaluable as we work to advance both our business and yours in 2011.

Diana Perreiah
General Manager, Kawneer North America

Editor’s Note: If you would like to view a recorded version of the Customer Webinar, please contact Glenda Jackson and she will send you a link to the recording.

In a market made even more competitive by the downturn in construction, we have been focused on sustaining Kawneer’s success through investments that will deliver differentiation. From people and facilities to products and services, we believe that our future is dependent on providing our customers with solutions that give them a competitive advantage in an increasingly crowded and challenging space.

How are we doing this? We’re doing it in large part through you, our customers, who are a critical component in enabling our understanding of the products, processes and services that will grow your businesses and ours.

Reflecting on our recent Partner Panel meeting in September, I think of the many ways we are seeing the results of our commitment to customers and ongoing investment in the opportunities that lay ahead. It is through this meeting that we are able to gather direct insight as to what’s working and what could be improved.

For example, customers told us that we are moving ahead of the curve with recent product launches that meet or exceed industry needs.

The introduction of our new Clearwall™ curtain wall, Trifab® 451UT (Ultra Thermal) framing and Versoleil™ SunShades Single Blade System are just a few of the products we’ve introduced over the past year. On the service side, customers provided feedback that confirmed we must continue to focus on solutions to improve our day-to-day customer service and responsiveness to deliver best-in-class quality, delivery performance and lead times.

The recent introduction of our Customer Experience Survey, a new tool for measuring and enhancing customer loyalty, is yet another important means for gathering invaluable feedback. The survey will act as both a loyalty metric and an organizational discipline tool to help us use customer feedback more effectively.

As we look toward 2011, we do so with optimism. We know the road to market recovery will continue to be bumpy, but we believe that by working closely with you, our customers, we can continue to test ourselves as a company and grow our market presence and businesses together.

Diana Perreiah

General Manager, Kawneer North America

When I began my career with Alcoa twenty-four years ago straight out of college, I had no idea how invested I would become in this company and the aluminum industry. The great thing about working with such a large and varied organization is that, through my diverse and challenging roles, I feel as though I have had several different careers without having to change companies. Now I am able to take those experiences and that knowledge and apply it to my current role as General Manager for Kawneer North America.

Kawneer and Alcoa have been associated with quality and service for more than a century. My first priority in this new position is to continue to pursue an aggressive investment agenda. Recently, Kawneer embarked on a carefully planned initiative to provide the best customer experience in the industry and upgrade its service centers to provide greater flexibility. We are committed to improving and expanding Kawneer’s operational capabilities, growing our range of products and solutions, and advancing the company through technology and people.  We are seeing the results of that commitment.  Our investment in new product development is paying off through the launch of our new Clearwall™ curtain wall and Trifab® 451UT framing. And, we expect to launch additional innovative, sustainable products throughout the remainder of 2010.

An ongoing goal of mine, and of Kawneer’s as a whole, is to continue to strengthen our investment in people. These investments, as well as other key initiatives like leveraging the Alcoa Business System (ABS), demonstrate our dedication to ensuring that we continue to provide the quality and service we are recognized for. Through ABS we work with our employees to think about how we can be more efficient and get the best results with less. Ultimately ABS combines the people and the equipment to get the most outstanding results for safer manufacturing and production, higher quality products and services and continually improves our solutions at a competitive cost.

Although market challenges remain, Kawneer looks to the future with optimism and we continue to work to aggressively grow our market presence. Because of the focus and dedication of the team at Kawneer – the people we have invested in – we have been able to bring you groundbreaking new products and solutions and it is through these developments and the focus of our team that we make the seemingly “impossible” happen. I look forward to working with all of the wonderful people, both internally and externally that make Kawneer what it is today and who will contribute to what we will be in the future.

Diana Perreiah
General Manager, Kawneer North America

Throughout my nearly 35-year career with Kawneer I have seen the market rise and fall; each time bringing a new set of challenges and successes. Although we continue to face challenges, Kawneer looks to the future with optimism, and is constantly working to aggressively grow our market presence. Because of the focus and dedication of the team at Kawneer, we have been able to develop innovative new products and solutions and it is through these developments that we maintain our role as an industry leader.

Recently, Kawneer made some exciting changes that will provide our customers with tremendous opportunities. We recently announced a strategic partnership with Forster Profile Systems, a world leader in the design and manufacturing of steel framing systems. Through this partnership we will distribute Forster’s framing systems exclusively through our customer network. The strength of steel allows us to provide a solution for monumental elevations beyond the capability of aluminum. We are the first supplier in North America to offer a complete range of both aluminum and steel glazing solutions. With our expanded capabilities, the ideas and designs can be bigger, and the possibilities endless.

Further benefiting customers is the significant investment we are making to upgrade and expand capabilities at our service centers. We’ve upgraded our Austell, Georgia service center in order to provide customers with a broader range of resources, as well as increased production, storage and inventory, resulting in shorter lead times and enhanced quality. We have also made a significant investment in the Central and Eastern Canadian markets by combining our current Scarborough facility and Mississauga service center into one new and expanded Fabrication Center for the Greater Toronto Area (GTA). In addition, we are adding fabrication capabilities to our Montreal Service Center and are investing in state-of-the-art fabrication equipment and technology at both locations. These significant investments at our service centers will give us flexibility to better meet market demands while remaining cost competitive.

I have said before that one of the best assets we have as an organization is the incredible customer base that has supported us for more than 100 years. We know what our future challenges are and we are confident in the abilities of our employees, customers and leaders to execute in the headwind. We look forward to your continued support and to hearing from you more throughout the year.

Bob Leyland
Vice President, Commercial Operations