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....
A Tale of Two Dealers, and Why One Far Surpasses the Other
Most think lack of time is their biggest barrier to achieving their goals, but they are mistaken. “Culture eats strategy for breakfast.” This quote by Peter Drucker is one of my favorites. While providing consulting services for over one hundred companies, I have witnessed and...
Change Your Pricing Formula for 2018 and Make More Net Profit
Let us assume that you are having problems with a truck’s transmission and it must be repaired or replaced. The local mechanic explains the hourly rate for service and that the cost of any parts needed to fix the transmission is extra. The hourly charge he is billing is to cover his...
Three Practical Ideas for Better Margins and Net Profits
Too often a repeated mantra within our industry is that everyone sells components at too-low margins. The blame is always on the other guy, meaning the competitor, for selling at a lower margin than what should be market pricing. Well, what can your company do to raise margin pricing?
Open Your Eyes to Overproduction
Part 5 in our TIMWOODS Series
Piles and piles of production all around you. No, I am not talking about inventory, I am talking about WIP, finished goods/staged jobs—Overproduction. Overproduction is making products in too great a quantity or before actually needed, leading to excessive...
Component Manufacturing a Cash Cow Division
In the wood truss component industry, we have the independents, who are not associated with lumberyards, and then we have those who are owned by lumberyards. What I found striking is that the lumberyard owned and operated component manufacturers (CMs) consistently make far less money than the...