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
Better Net Profits, Not Hyped-Up Business Philosophies Todd Drummond Whether your company is a single-location or a huge multi-location operation, 2018 should have been a banner year for profits for your company. Most of my clients were in the high teens and many were in the mid-twenties for net profit to total sales. How well did your company perform in... Read More April 2019 Issue #11237 Page 19
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
Too Many Companies Struggle with Making Process Changes Todd Drummond A statement far too managers make is that they are not able to get their employees to embrace change. If your company struggles with making changes in any given area, just keep in mind that real change always comes from the top down. If your company is struggling with change and you are the top... Read More February 2019 Issue #11235 Page 18
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
Beware of One Size Fits All Solutions Todd Drummond I am often asked about what is the best one-size-size-fits-all equipment solution to fit all the component manufacturing needs. Of course, too many equipment vendors are more than willing to offer their version of a one-size-fits-all solution. Below are three examples of when one size does not... Read More October 2018 Issue #10231 Page 33
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
Labor Shortage in the Construction Industry is Partially a Self-Inflicted Wound Todd Drummond Our industry has been ignoring and not understanding 51% of the population’s needs—specifically, those of women therefore limiting the qualified candidates to fill vital openings Read More August 2018 Issue #10229 Page 36