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....
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...
Possible 30 Days Savings for the Home Builder Using Wall Panels
Did you know that, even though setting wall panels saves an average of eleven days compared to traditional stick-framing of walls, the overall home completion can have an average savings of 30 days when wall panels have been used? For the home builders, every day a home is completed sooner can...
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...
Small Investments Can Garner Huge Gains for Productivity for Your Sales Team
Last month’s article, “Investment in Employee Training, Not Just Equipment,” produced a lot of good responses from many readers. Now it is time to offer real solutions to help your company improve productivity and reduce costly errors for your sales team and also all of the...
Investment in Employee Training, Not Just Equipment
Is your company’s budget only for new equipment, but no formal training for your employees? Any time you think about investing for productivity gains, often the first thing that comes to mind is investing in new equipment. All too often, we think we see the situation clearly and can make...
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...
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%,...
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...