The Hiring Zone: Opportunity Knocks Just a couple of years ago, I went back to the commercial modular/classroom/mobile office plant where I had my first GM job in the ’80s. I was 27 then, am much older now, but one thing hasn’t changed much, technology. The stations had the same kind of equipment, home build when... Read More July 2019 Issue #11240 Page 80
Expect Margins and Lead Time to Decrease in Most Markets Todd Drummond Many of us have been in the industry long enough to clearly remember the pain of the ‘08 crash. Before the crash, everyone was very optimistic about their own growth potential because the building economy was on fire, which gave everyone a reason to expand their manufacturing capacity like... Read More June 2019 Issue #11239 Page 22
An Effective Productivity Incentive Program for Truss Manufacturing Todd Drummond It is possible to give your shop employees a raise and actually achieve more capacity through greater productivity and make more net profit for your company by implementing an effective productivity incentive program. However, most of the incentive programs (IP) that are touted in the component... Read More May 2019 Issue #11238 Page 41
The Drummond Short Schedule Time-Standard System Todd Drummond Using Man-Minutes to Manage Your Labor Industrial engineering – “The branch of engineering that is concerned with the production of industrial goods, especially by the design of efficient plants and procedures and the management of materials, energy, and labor.” (Source:... Read More March 2019 Issue #11236 Page 39
Employee Hires, Equipment Investment, and Making Changes Todd Drummond 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... Read More January 2019 Issue #11234 Page 36
Independent CMs Still Have an Edge Over Multi-Location Companies Todd Drummond 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... Read More December 2018 Issue #10233 Page 38
When Your Company’s Manufacturing Labor Pay Rate is Causing Labor Shortages Todd Drummond “Good judgement comes from experience. And experience? Well that comes from poor judgement.” Some of us are old enough to remember Dean Martin. Whether he stated this quotation about experience and poor judgment, I will never know. But let’s face facts—it has... Read More November 2018 Issue #10232 Page 22
Banner Sales Year Should Help the CM Division Make Mid-Teens or More for EBITDA Todd Drummond 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... Read More September 2018 Issue #10230 Page 23
Increase Your Post Frame Sales Mike Momb Nearly every U.S. and Canadian metal plate connected wood truss manufacturer has one or more clients who either construct pole barns or sell kit packages. Not much excitement though in dealing with typical orders of usually anywhere from 4 to 10 trusses per building. Money can certainly be... Read More September 2018 Issue #10230 Page 56
Estimating Truss Labor Using Board Footage Versus Proper Man-Minute Time Standards Todd Drummond For many years, I have been beating the drum that board footage (BF) is an imperfect unit measurement that our industry should abandon. The better alternative is the proven method of time estimations which uses man-minutes (MM). Man-minutes are derived from time-in-motion practices that have... Read More July 2018 Issue #10228 Page 22