Lumber is mission-critical to every component manufacturer (CM). On average, it represents two-thirds of your cost-of-goods (CoG), roughly half of the value of your product (Revenue – Pretax Profit). So, what are the market dynamics that surround the purchase of lumber? And how can your actions improve your position?
I’ve written about these topics in these pages (see ROI: Turn Your Largest COST (Lumber) into a Profit Driver and Creating Your Own Commodity Market Performance Measures), and now I’ve been given the opportunity to talk in person with you too. At this month’s Building Component Manufacturers Conference (BCMC) in Milwaukee, WI, I’m leading one of the supplier-led educational sessions. Please join me for this session:
Optimize Offsite Production by Optimizing Lumber Costs
Tuesday, October 8 at 2:00–2:45 pm
Room N204
Gain real-world insight into applying technology to measure, manage, and improve the lumber procurement process from an industry professional. Explore how a nominal change in lumber cost produces a significant change in pre-tax profit, and how to measure lumber’s contribution to your bottom line.
This session is poised to highlight data-driven technology that drives productivity while unlocking market transparency and insight, effecting a shift in market power toward the buyer.
This session is only available to Component Manufacturers, Framers, Builders, and General Contractors. SBCA staff in attendance will be Greg Greenlee.
I hope you will consider joining me for this session. I’ve learned a lot through my many decades in this industry, and I’m looking forward to sharing my insights with you. Be sure to bring your questions too, and I’ll see you at BCMC!
Valerie Hansen is the Founder and Chairman of BuyMetrics Inc. She is a 45-year industry veteran and the former owner/CEO of Custom Components Company, Racine, WI (sold 2008). From 2000–2019, she earned 21 U.S. patents for inventions in the technical areas of finance and data management. Privately serving industry-leading CMs since 2000, the BuyMetrics® commodity procurement platform automates and informs the purchase of lumber and other volatile commodities.