‘Factor In’ the Low Factor Rates This Summer
The pandemic environment has affected many things. Perhaps surprisingly, one of the effects derives from the Fed’s desire to assist the economy in any way possible. In particular, interest rates which were already at historical lows are now even lower. As a result, monthly payment quotes...
Three Conditions for Smarter Margin Application to Make Healthier Profits
Establishing a proper margin to maximize profits for your roof truss component sales is not as easy as most people think. Most do not have a clear understanding of how small changes make a significant impact on the company’s profitability. Making the most profits possible, no matter what...
Too Many LBM-Owned CMs are Operating at a Mediocre Rate
An anonymous former lumberyard CEO of 17 lumberyard locations (LBM) explained to me that his two component manufacturing (CM) plants made up only 10% of his sales yet contributed 30% of his net profits. He wished he had given the CM division far more focus and resources.
As a guru for process...
A Case for Innovation in the Building Industry
For years, I’ve been interested in why the residential building industry has been so slow to innovate. Other industries constantly innovate. The U.S. automobile industry, arguably pushed along by Japan and European car makers, continues to advance its products and production methods....
Maximizing Wall Panel Design Productivity and Accuracy
As a wall panel designer, there are two critical performance metrics to hit: efficiency and accuracy. In a competitive component manufacturing landscape, maximizing designer productivity on both quotes and orders is paramount to running a successful business. Quickly generating an...
Look Beyond Manufacturing Improvements to Deliver Better Net Profits for 2020
Even though the new build season of 2020 is expected to be a good one for most, it likely will be more challenging to retain net profits than many anticipate. Most component manufacturers (CM) have been buying equipment and expanding their operations like crazy. Also, new money has flooded into...
Vendor Loyalty and Sales Pitch Can Lead You Astray
The BCMC trade show is fast approaching. This trade show, which is held each year, is a great opportunity for you and your team to step outside of your comfort zone to challenge and expand your current beliefs of both equipment investments and vendor services. Just be mindful that sometimes it...
Measure the Tempo of Your Operation
My wife Dianne and I were recently going through some of our old family photos and I came across this photo of Dianne’s Dad, Jack Hendershot, as a teenager on his bike delivering ice in the early ’50s. For those who may not know, before the advent of refrigeration and freezing...
The Hiring Zone:
Just a couple of years ago, I went back to the commercial modular/classroom/mobile office plant where I had my first GM job in the ’80s. I was 27 then, am much older now, but one thing hasn’t changed much, technology. The stations had the same kind of equipment, home build when...
Expect Margins and Lead Time to Decrease in Most Markets
Many of us have been in the industry long enough to clearly remember the pain of the ‘08 crash. Before the crash, everyone was very optimistic about their own growth potential because the building economy was on fire, which gave everyone a reason to expand their manufacturing capacity like...