Too Many LBM-Owned CMs are Operating at a Mediocre Rate Todd Drummond An anonymous former lumberyard CEO of 17 lumberyard locations (LBM) explained to me that his two component manufacturing (CM) plants made up only 10% of his sales yet contributed 30% of his net profits. He wished he had given the CM division far more focus and resources. As a guru for process... Read More March 2020 Issue #12248 Page 51
Possible 30 Days Savings for the Home Builder Using Wall Panels Todd Drummond Did you know that, even though setting wall panels saves an average of eleven days compared to traditional stick-framing of walls, the overall home completion can have an average savings of 30 days when wall panels have been used? For the home builders, every day a home is completed sooner can... Read More February 2020 Issue #12247 Page 29
Look Beyond Manufacturing Improvements to Deliver Better Net Profits for 2020 Todd Drummond Even though the new build season of 2020 is expected to be a good one for most, it likely will be more challenging to retain net profits than many anticipate. Most component manufacturers (CM) have been buying equipment and expanding their operations like crazy. Also, new money has flooded into... Read More January 2020 Issue #12246 Page 51
Small Investments Can Garner Huge Gains for Productivity for Your Sales Team Todd Drummond Last month’s article, “Investment in Employee Training, Not Just Equipment,” produced a lot of good responses from many readers. Now it is time to offer real solutions to help your company improve productivity and reduce costly errors for your sales team and also all of the... Read More December 2019 Issue #11245 Page 27
Investment in Employee Training, Not Just Equipment Todd Drummond Is your company’s budget only for new equipment, but no formal training for your employees? Any time you think about investing for productivity gains, often the first thing that comes to mind is investing in new equipment. All too often, we think we see the situation clearly and can make... Read More November 2019 Issue #11244 Page 47
The Vast Majority of Component Plants Have Too Much Lost Productivity Todd Drummond People make the common mistake of thinking that if they have been doing something for a long time, occasionally have made improvements over the years, and they are working hard and consistently, then they are doing it the best way possible. But the truth is, approximately 80% of truss and wall... Read More October 2019 Issue #11243 Page 28
Vendor Loyalty and Sales Pitch Can Lead You Astray Todd Drummond The BCMC trade show is fast approaching. This trade show, which is held each year, is a great opportunity for you and your team to step outside of your comfort zone to challenge and expand your current beliefs of both equipment investments and vendor services. Just be mindful that sometimes it... Read More September 2019 Issue #11242 Page 47
Two Common Mistakes Cost At Least 2-3 Points of Net Profit Every Year Todd Drummond Most, if not all, are now caught up in the summer building season to make serious money for their component divisions. However, far too many companies are allowing tens of thousands of dollars to be lost because of commonly accepted bad practices. Practices such as using non-precise labor... Read More August 2019 Issue #11241 Page 24
What I Like About Sum+It Todd Drummond It is time to forget about using a truss design program, price book, or square-foot multiplier when estimating roof and floor truss projects. For many decades, truss companies have been looking for ways to dramatically improve their design team’s capacity, but every effort has fallen... Read More July 2019 Issue #11240 Page 41
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