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...
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...
The Vast Majority of Component Plants Have Too Much Lost Productivity
People make the common mistake of thinking that if they have been doing something for a long time, occasionally have made improvements over the years, and they are working hard and consistently, then they are doing it the best way possible. But the truth is, approximately 80% of truss and wall...
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...
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...
Employee Hires, Equipment Investment, and Making Changes
Another year has come and gone, and what an invigorating year it has been for most companies. Net profits after taxes for most component manufacturers were in the high teens to mid-twenties—at least for those who do not allow for never-ending excuses. Once again, it is time to reevaluate...
Independent CMs Still Have an Edge Over Multi-Location Companies
Since the home building crash of ‘08, there has been a huge spike in mergers and acquisitions of wood truss and wall panel component manufacturers. With all the big players in the market, independents naturally have concerns about staying competitive. Believe it or not, independents still...
Banner Sales Year Should Help the CM Division Make Mid-Teens or More for EBITDA
New building sales across the US are way up, which shows in the long lead times of the wood truss and wall panel manufacturing companies for new orders. However, too many of these manufacturers are not showing healthy profits despite the long lead times. Lead times greater than four weeks are a...
Are Your Salespeople Selling Your Company into Eventual Bankruptcy?
Most people have a mistaken belief that my services are all about making component manufacturing more efficient. Actually, more than half my time during a consultation is taken up reviewing things like management practices and the sales process. Fact is, sales—correction, healthy...
Emerging Pillars for Business Success
As companies grow and change, we should ask ourselves—what are the essential pillars of support that help companies succeed? While making changes that will transform their businesses, successful companies will rely on core pillars that form the foundation of who they will be in the future....