8 Intrinsic Values of Modular Home Construction
Whenever a site builder asks me why they should go modular, they are really asking me how they can make more money going modular. Some of them are long time site builders that have looked at converting to modular construction and just can’t bring themselves to pull the trigger. It’s...
Lumber Market Quarantine?
March 29, 2020
We are just days away from the sharpest lumber market price reversal ever experienced. It began last week with unreasonable mill panic selling in an attempt to secure short-term operational cash and a $50 drop.
Next week and the following week, there will government mandated...
How To Beat the Lumber Market
The words “panic attack” in our social sphere imply being attacked by panic. It can be debilitating. Put in another context, panic can lead to the action of attacking, typically defensively. Being attacked by panic and attacking in response to panic are positions of weakness that...
Always Be Buying Lumber
In the day of a CM’s and framer’s life, lumber buying is considered the most enjoyable and easiest task to perform. Buying lumber is a huge ego booster. By your own admission, lumber is 40–50% of the cost of producing the finished product.
I find it simply stunning how very...
Lumber & Housing Market Forecast—Buy Expectation, Sell Reality
In our lumber market, when presented with a disruptive opportunity that appears to create a supply shortage or demand surge, buyers increase inventory on the expectation of higher prices; then, once we realize our over-zealous preparation, we liquidate those excessive positions, crashing prices....
What To Do When Supply is At Odds With Demand
Our lumber market is notorious for over and under producing its products. The relationship between supply and demand is constantly in flux. When producers make decisions to increase supply, it is in response to a relatively long term period of increased prices where there is the perception of a...
Top 10 Bookkeeping Mistakes to Avoid
To say I was surprised that almost 80% of all small independent home builders, both site and offsite/modular, build less than 4 homes a year is an understatement. That means that only 20% of all small builders in the US build more than 4. Who knew!
If your business falls into the 80%,...
Lumber & Housing Market Forecast
Housing is Over Built; Lumber is the Honey Hole
Most of the time, the daily news and world events do not have a significant impact on how we buy and sell lumber. This recent stuff is different. It’s scary. All the trade and economic balls are in the air, and politically the U.S. is...
Two Common Mistakes Cost At Least 2-3 Points of Net Profit Every Year
Most, if not all, are now caught up in the summer building season to make serious money for their component divisions. However, far too many companies are allowing tens of thousands of dollars to be lost because of commonly accepted bad practices. Practices such as using non-precise labor...
What I Like About Sum+It
It is time to forget about using a truss design program, price book, or square-foot multiplier when estimating roof and floor truss projects. For many decades, truss companies have been looking for ways to dramatically improve their design team’s capacity, but every effort has fallen...