Undoubtedly, many people are now thinking: Is there a difference between a lumber procurement professional and a lumber buyer? I am a Lumber Procurement Professional. I’ve been around the business since I was 15 years old and now I’m 64 (you can do the math). I have worked as a buyer for a large retail chain, sales for a small independent sawmill, and for a large international conglomerate in the forest products manufacturing business. I brokered lumber for 18+ years with a very small independent firm and two large firms, but, recognizing my skill set was in the procurement arena, I made the change in the early 2000s. Since then, I’ve sat in the chair of a large national homebuilder procuring all of their lumber and building materials for their operations in Arizona and Nevada, procuring in excess of $100MM annually, experienced the boom and bust of the housing industry, and unfortunately was laid off, only to land in a position with a large start-up, doing the same thing.
Over the course of my career, I have come to realize most companies don’t truly appreciate what a good procurement person can bring to the table. They hire a lumber buyer and don’t even give it a moment’s thought—this person could make them a lot of money, or could lose them a lot of money. The lumber industry is a great industry with companies that flourish, but so many companies struggle as they continue to just do things the way they have always done, expecting better results. Is it time for you to think again about your lumber purchasing?
When you are accustomed to trading in the volumes I have traded in over the course of my career, you are quite foolish not to utilize the Futures Market to protect inventory positions, and to lock in firm pricing for extended projects. Those who utilize these tools do well, and will continue to, while those who choose to look at the Futures Market as gambling are fool hearty. Why not use all of the tools at your disposal?
I am an avid viewer of all posts on LinkedIn, but I wonder how many people actually follow the advice found in quotes by Steve Jobs, Richard Branson, and others with such success in their respective industries. These individuals recognize the importance of hiring smart people with experience in their field and then not recommending they simply do what their boss wants. If you want someone to just follow your lead, then you’re wasting resources and experience. You hire people for what they bring, for something you currently do not have. Can you see any gaps between what you have and what you may need right now?
A Lumber Procurement Professional is good at what they do, they understand the business, and they understand the markets—both the cash market and the futures market. They believe in buying high quality materials, and they expect the people they deal with to be honorable and respectful, with a level of integrity, ethics, and morals—and in turn they do what they say they will do, and reciprocate unequivocally. Do you have an appropriate person in this role for you?
I’m not bashful about my abilities, as I have experience to back them up. People who are good at what they do expect to be paid accordingly, and that investment customarily pays very strong dividends in the long haul. Don’t underestimate the benefit of bringing someone into your organization who has spent time fine-tuning their craft—it will directly affect your bottom line.
Marc Ross
602-768-6730
www.linkedin.com/in/gmarcross