Abraham Lincoln has a famous but unconfirmed quote. He is said to have said: “Give me six hours to chop a tree and I will use the first four hours to sharpen the axe.” Although most historians doubt Abe honestly After these words, this insight is still good advice, especially for LBM distributors. In this era of post-COVID-19 challenges, skyrocketing wood prices and extremely reduced labor, it is more effective than ever for building materials distributors to do more with fewer employees in the most effective way important. solution? Modern material handling and storage systems can reduce the transfer of these ever-increasing material and labor costs to the final purchaser.
When COVID-19 first began to shut down most businesses in the country, there was widespread concern that the construction industry would suffer a recession similar to that during the Great Recession of 2007-2009. One and a half years after the pandemic appeared, it is now clear that the actual impact is completely different from what was expected. Clint Darnell, vice president of Sunbelt Rack/CT Darnell Construction, said: “The effects of COVID-19 are completely contrary to everyone’s thinking.” “The logging farms across the country are busier than ever, and they are looking to improve their facilities.”
Unfortunately, LBM dealers are caught in a perfect storm, namely, a sharp increase in demand for wood, a reduction in labor, and the resulting skyrocketing prices of wood. (The National Association of Home Builders estimates that from April 2020 to May 2021, timber prices have risen by more than 300%.)
As Chris Krauter, President of Krauter Auto-Stak explains, these challenges are an important driving force for LBM dealers to develop methods to better protect their inventory investments and increase their ability to obtain more with fewer hands.
“By stimulating demand first and restricting supply at the same time, COVID-19 can affect both ends of the economic cycle,” he explained. “The demand side is supported by low interest rates, the boom in real estate and home decoration, and the development and acceptance of home office, so to speak. The supply side is subject to the government’s mandatory home restrictions, the timber manufacturers’ initial reluctance to continue normal production and operations, and the resulting Labor shortage is restricted. This behavior has developed to create a fertile environment for the parabolic rise in the price of wood and other commodities. As a result, wood and similar construction products are now classified as high-value categories. The demand for better organization and protection of wood inventory is changed from Not so strong. Taking into account the labor shortages that are common in all industries, people have found that using high-density shelves, semi-automatic wood storage systems and machinery to improve material handling can achieve greater results with fewer people.”
In the past few years, LBM distributors may be reluctant to invest in enhanced racking and handling equipment as a solution to the above challenges, the most common reason is the necessary capital investment rather than a more direct return. But according to material handling and storage manufacturers, this statement is getting better. “These barriers have now been removed,” Darnell said. “We no longer face these challenges. People are investing in their facilities to make them better.” Chris Kraut agreed. “We see that this reluctance is waning because the lack of labor and the need to increase throughput have become the top priority,” he said. “There are several financing institutions that can sign a 5 to 7-year equipment lease contract at a reasonable price, and buy out the final ownership at a price of $1. If the LBM distributor wants to keep its operation center, this is a viable option. ”
However, this does not mean that large investments are always required to improve efficiency. Generally, the best first step is to adopt a more analytical approach, which is to evaluate the efficiency of the LBM reseller’s existing storage options. Krauter pointed out: “The construction cost and process of new buildings are lengthy, and the ability to use modern Auto-Stak systems to increase storage density and throughput can achieve positive results in a faster time.” “Many times, for existing facilities. The improvement may be a’bolt connection’ event with minimal disruption to ongoing operations. Take a step back and look at every corner of the facility to determine if it is fully utilized.”
Just as every LBM reseller is unique, their challenges often require unique solutions. By turning to material handling and storage manufacturers and leveraging their expertise, distributors can create personalized solutions that meet their needs. “There is no one-size-fits-all answer,” Darnell said. “Each dealer has its own strengths and weaknesses. For example, there are some logging yards that do a good job on windows and doors. Every dealer who contacted us came to us to find a solution to their specific challenges. Each came Contacts who come to us have things they can/want to do better.”
However, while some problems require customized solutions, other problems are more common in nature, and material handling and storage manufacturers also have solutions. “Like many other industries, a major challenge in our industry is manpower,” Darnell said. “With less manpower, you have to become smarter in storage and handling. This has been driving our Power Bin system and portable wooden racks and all our storage buildings. Another reality is that commodity prices have risen sharply. The cost of Lumberyard’s inventory is higher than ever, so protecting the product is as important as ever. You want all inventory to shrink as low as possible.”
Chris Krauter has similar ideas for the efficient use of shelves, and pointed out how high-density storage and transportation of orders for doors, windows and cabinets can greatly improve efficiency by using stacked frames. As he explained, “The stacking rack is essentially a modular, transportable, stackable fixed and assembled pallet rack. Wood product orders are placed in these stackers for use by various customers. These racks Stacked vertically and horizontally next to each other in a high-density pattern, and can be lifted from all directions with a fork. Wood product orders enter the logging yard, and are sorted and processed manually when loaded into various stacking racks. They are marked and passed The flatbed trucks with tail-mounted forklifts are transferred to the construction site, where they are unloaded from the flatbed trucks, placed in a garage or similar place, signed by the customer and airlifted back to the logging yard. This is a one-person operation. In the case of labor shortages These improvements will significantly increase the efficiency of all personnel to complete more tasks faster.”
Krauter points out that high-density storage goes beyond efficient transportation to the construction site. It contains systems that allow for better organization, less physical processing, and the ability to store more without increasing square footage. “We are reassessing and improving the travel patterns in and out of existing logging yards to speed up the in and out of inventory, shipments, and customer traffic,” he explained. “Existing static racking systems such as pallet and cantilever types are being reassessed and replaced with higher-density semi-automated Auto-Stak systems. This will increase the number of SKUs in the same area and gather SKUs more closely to speed up the picking operation. And in many cases, traffic passages can be eliminated. The recent trend is that these systems continue to evolve, and now a third layer of storage is added above the slope and walkway layer. This third layer becomes an open bulk interlayer for storing insulating materials , Hardware, special orders and other items. The ground space used for the Auto-Stak system is recovered through this mezzanine platform.”
As the country emerges from the worst period of the pandemic and businesses begin to return to normal, the need for increased efficiency still exists. Timber demand is expected to remain high, as will labor shortages. “In the past pandemic years, we have been moving at full speed to maintain demand for our products,” Kraut said. “Historically, these improvements have been ignored because, frankly, operations can be completed without them. However, as the value of goods rises and strong demand, LBM dealers are noticing their weaknesses and are Seek solutions.” Smart LBM distributors will use this time to upgrade their material storage and processing capabilities, by providing the best service to customers, while reducing the manpower required to differentiate them from the competition.
Michael Berger is the former executive editor of HANDY magazine and has been writing articles about home improvement and architecture for the past 20 years.
Post time: Aug-10-2021