Throughout 2009, the Steel Framing Alliance (SFA) Board of Directors studied ways to improve the SFA’s operations to address a rapidly changing environment. Several important issues have been at the forefront of these deliberations, including:
- Changes in the focus of the SFA strategic activities. The Alliance achieved great success in its first 10 years. The Board recognized these successes as critical in building a steady growth in the Cold-Formed Steel (CFS) market. At the same time, the markets have changed significantly, and the SFA must move on to the next set of issues that offer opportunities for more growth and address those that stand in the way of growth. We recognize that the infrastructure built for the first 10 years is not the most efficient for the future.
- The market economy has resulted in dwindling resources available from SFA members and partners to support activities of the Alliance. While we appreciate all of you for continuing to support us during tough times, we also recognize that the industry as a whole is facing hard times due to the downturn in construction. As a result, the SFA has had to make adjustments, like the entire industry.
- An opportunity to improve organizational efficiencies has been proposed by the American Iron and Steel Institute (AISI), our primary investor, by eliminating redundancies between AISI and the SFA.
The Directors and staff at SFA looked at the challenges we face from the perspective of our membership. The question quickly became: How do we push as much of the funds we receive into direct expenditures on priority issues, as opposed to overhead or infrastructure? This resulted in an in-depth review of current resources and priorities, and discussions with AISI regarding alignment with their Construction Market programs and integration of basic operations. As a result, a plan was prepared to demonstrate how to make the best use of the combined SFA/AISI resources.
During its December 16, 2009 meeting, the SFA Board of Directors took these challenges head on and voted to restructure the SFA by merging its activities with AISI. During January 2010, SFA began the process of moving offices and staff to facilities at the AISI offices in Washington, DC. This move and associated changes will help us reduce operating costs for infrastructure such as office space, accounting, publications, and similar services by relying on resources already in place at AISI.
How will this change impact SFA and Cold-Formed Steel Engineers Institute (CFSEI) members? Throughout 2010, there will only be some minor changes in the way that members interact with SFA and CFSEI. Basically, our mailing address has changed with the move into AISI’s office space beginning February 1, 2010. Otherwise, in 2010, members will not notice any significant changes. The steel hotline will remain in effect, the websites will function as in the past, and staff will be available through the same phone numbers and email addresses. The bottom line is that most of the changes in 2010 will be “behind the scenes” to areas like accounting, contracting, and other business operations of SFA.
In 2010, memberships in SFA and CFSEI will continue in the new structure, much the same as today. Most importantly, the benefits for members will be retained, including access to the members-only website, access to research results and Tech Notes, significant discounts on standards and other publications, and the ongoing opportunities to provide input into the direction of research and educational materials. SFA will continue to represent the CFS industry on building codes and standards issues and to address innovative solutions through research. Our many educational resources will be retained and improved as always.
Since the SFA is legally incorporated under Maryland law, which governs our non-profit corporate charter, the SFA will take more formal steps sometime within the last quarter of 2010 to legally reorganize under AISI. At that time, we will transfer all assets of SFA to AISI and officially dissolve the corporation. SFA will become an organization operating with an independent Board of Directors, but under the corporate structure of AISI. All of the activities of the SFA will be directed by the SFA Board, as in the current structure.
We believe that this restructuring represents the best interests of the membership and will enable the Steel Framing Alliance to better serve the industry as we find opportunities to advance steel’s competitive edge for CFS in the recovering economic climate.
Thanks for your support in the past. We look forward to working with you as we move forward.
Don Moody Chairman of the Board |
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Mark Nowak President |
A Note from David C. Jeanes, President of the Steel Market Development Institute of AISI
This change in business relationships, while not without challenges, provides the catalyst for organizational efficiency and improved performance against the SFA mission. The AISI Steel Market Development Institute (SMDI) is committed to working with the SFA Board to leverage the opportunity to support and strengthen the role of the SFA in advancing the CFS market. The steel industry’s commitment to enable cold-formed steel framing in the residential and commercial building markets has not changed. In this restructuring, we see an opportunity to build on SFA’s successes while maintaining its brand equity. The organizational structure may change, but it is vitally important that we maintain broad industry support and participation to grow these markets.
Our goal is to make this transition as seamless as possible. As issues arise, we ask that you bring them to our attention and we will address these concerns expeditiously. While the restructuring involves details concerning equipment and office space, the most critical asset we have to account for is the active engagement from the membership of SFA and CFSEI. Your support will continue to be invaluable as we move into the future with programs and activities that will open new doors for cold-formed steel framing.
David C. Jeanes
President, Steel Market Development Institute |