Four Commonly Held Practices That Cause Companies to Lose Millions in Net Profits Todd Drummond These four commonly held practices within the component industry (wood truss and wall panels manufacturing) are actually causing millions in lost profits. None of these practices should be acceptable, and all are correctable. Is your company ready to make lean manufacturing continuous... Read More September 2022 Issue #14278 Page 24
Here is What Happens When Continuous Improvement is More than a Slogan Todd Drummond As a change agent for lean manufacturing best practices, it is extremely satisfying when I see a company embrace best practices despite their challenges. Too often, it is stated, “we (I) cannot implement or do the suggested improvement practice because _____” from so many claiming to... Read More August 2022 Issue #14277 Page 22
Capital Investments are Not Going to Be Enough When the Party is Over Todd Drummond The article I published in April, Record CM Building Industry Net Profits are Coming to an End Sooner Than Most Believe, predicted that the construction industry would start seeing negative market changes around August of this year. Wow, was I right about calling that one? The continued... Read More July 2022 Issue #14276 Page 28
Three Simple Truths for Attracting and Retaining Talented Employees Todd Drummond Is your company having problems finding good employees to fill all the needed positions within your company? Are you thinking wage inflation is getting out of hand? Perhaps you should look at it from a different perspective. Multiple case studies have shown that companies with low employee... Read More June 2022 Issue #14275 Page 29
Detailed Process for Implementing an Effective Labor Incentive Program Todd Drummond One of my clients’ most often asked questions is, “How exactly do we track and implement an incentive program?” Most companies are willing to pay their manufacturing employees more wages (incentives) based on greater output. Yet, the vast majority of wood truss component... Read More May 2022 Issue #14274 Page 35
Record CM Building Industry Net Profits are Coming to an End Sooner Than Most Believe Todd Drummond What a ride it has been for the vast majority of the component manufacturing (CM) for wood trusses and wall panels in North America the past few years. The demand for new homes outpaced the supply capacity of most homebuilders and those who suppy them. This record-breaking rate of building... Read More April 2022 Issue #14273 Page 35
Millions of Dollars for New Equipment and Building Investments are Being Wasted Todd Drummond Expanding the manufacturing capacity within the component manufacturing (CM) industry for wood trusses and wall panels is at a fever pitch. The overwhelming majority of CMs have the same limited capacity issue trying to keep up with sales, which led to excellent record-breaking sales volumes and... Read More March 2022 Issue #14272 Page 35
A Stable and Proficient Workforce is Key to Best-in-Class Profits Todd Drummond Last month’s article, “Record-Breaking EBITA Exceeded Mid-Twenties for Many Component Manufacturing for 2021,” mentioned a key factor of making best-in-class profits: the highest performers have very low employee turnover and vacancies. Creating a stable and proficient... Read More February 2022 Issue #14271 Page 35
Record-Breaking EBITA Exceeded Mid-Twenties for Many CMs for 2021 Todd Drummond Last year should have been a record profit year for wood truss and wall panel component manufacturers (CM). Many of my clients have mid to upper-twenties EBITA. A few made it to the mid-thirties of their total sales. Yet, so many find this hard to believe. Too many believe mid to high teens for... Read More January 2022 Issue #14270 Page 35
How to Lose Millions of Profits with Linear Saws and Two-Person Crews Todd Drummond There has been a big push to reduce labor. In response, more than one equipment vendor has suggested that component manufacturers (CM) should purchase linear saws directly tied to roof gantry tables. The idea is simple: fewer crew members and more automation to increase efficiencies and reduce... Read More December 2021 Issue #13269 Page 35