Look Beyond Manufacturing Improvements to Deliver Better Net Profits for 2020
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...
Vendor Loyalty and Sales Pitch Can Lead You Astray
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...
Measure the Tempo of Your Operation
My wife Dianne and I were recently going through some of our old family photos and I came across this photo of Dianne’s Dad, Jack Hendershot, as a teenager on his bike delivering ice in the early ’50s. For those who may not know, before the advent of refrigeration and freezing...
The Hiring Zone:
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...
Expect Margins and Lead Time to Decrease in Most Markets
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...
An Effective Productivity Incentive Program for Truss Manufacturing
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...
The Drummond Short Schedule Time-Standard System
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:...
Employee Hires, Equipment Investment, and Making Changes
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...
Independent CMs Still Have an Edge Over Multi-Location Companies
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...
When Your Company’s Manufacturing Labor Pay Rate is Causing Labor Shortages
“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...