Despite the fantastic profits these past few years, some of the largest wood truss component manufacturers (CM) are losing tens of millions of dollars hidden in plain sight. Talk to any of the executives at these CMs, and they will be able to rattle off the EBITA or other P/L results, yet they...

With today’s high-demand market conditions, capacity is everything. Capacity constraints are widespread across our industry and have been for a while now. Many have added the capacity they can afford in the form of additional equipment. Some have been fortunate enough to add labor to...

With the COVID-19 virus still a live threat, the state of the disruption to supply chains continues to be severe as a number of regions and economies emerge into a very different world. As everyone in business knows, supply chains are critical to supplying goods and services quickly, safely,...

ABC Supply is going to Canada. Lowe’s is leaving it. SRS Distribution continues to diversify. Builders FirstSource is right-sizing its company in advance of America’s expected home-building slump. And US LBM is still hungry for truss plants. These are among some of the strategic...

The Greek philosopher Heraclitus is credited with the origin of the phrase, The only constant in life is change. This couldn’t be more true in the world we live and work in today. Whether we are enduring labor shortages, a global pandemic, material shortages, input cost increases, or an...

It is common for truss plants to be owned at least in part by a lumber yard. This relationship should, at least in theory, provide for a great business relationship. The lumber yard can focus on relationships with the builders, home owners, and developers knowing that they have a dedicated...

Year-to-date, the construction supply community has had 97 deals made by 50 buyers. At this same point in 2021, Webb Analytics counted 102 deals by 50 buyers. So much for predictions of a slowdown in M&A in 2022. What’s different is the size of the deals: A total of 255 yards have...

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...

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...

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...