Weekly Industry Insights — 08/16/24
LBM Operations Affected by Rising Expenses, Lower Lumber Costs
Lumberyard operators are likely to feel the pinch as rising operating costs—particularly in selling, general and administrative expenses—outpace sales and erode profitability, according to a recent report by Webb Analytics. Like many in the building products industry, these retailers ramped up operations during the pandemic boom but now face elevated costs as sales slow and lumber prices fall. With traditional cost-cutting measures insufficient, experts suggest focusing on improving profit margins, closely monitoring expenses and avoiding the trap of relying on sales growth alone to boost profits in these challenging times.
New Product Alert: DAP Spray Textures Available in 20-Ounce Cans
DAP, the leader in home improvement and construction products, introduces new 20-ounce touch-up texture repair cans for orange peel and knockdown textures, along with a 16-ounce can for popcorn texture. These additions to DAP’s 2in1 Wall & Ceiling Spray Texture line feature quick-drying, sag-resistant formulas that offer flawless repairs in minutes. The easy-grip nozzle ensures consistent, clog-free application, making it perfect for both professionals and DIYers. “These cans make smaller repairs quick, seamless and easy,” says Raquel Beckett, DAP’s product marketing director. For more information, see DAP’s press release.
Bliffert Lumber Promotes Josh Brown to Chief Operating Officer
Bliffert Lumber announced that Josh Brown has been promoted to chief operating officer. Brown began his 23-year career at Bliffert Lumber in 2001, working at the lumber counter at its Morgan Avenue location. Brown has advanced through the company, serving in several positions including sales, estimator, manager and executive vice president. “Josh is a tremendous asset to our team and has been instrumental in our success,” said Eli Bliffert, the fifth-generation owner of Century Club retailer Bliffert Lumber, which has 14 locations and 400 employees. “His expertise in the construction industry is unmatched, and his commitment to our customers has made him a trusted partner both within our company and throughout the community. We consider him family and are grateful to have him as a leader at Bliffert Lumber.” For more information, see Bliffert’s press release.
US LBM Names Jeff Wood as Senior Vice President of Supply Chain
US LBM, a distributor of specialty building materials, announced the appointment of Jeff Wood as senior vice president of supply chain. Wood, who previously served as senior vice president of operations at Wesco International, will lead US LBM’s building materials sourcing, procurement strategy and supply chain operations. He succeeds Steve Short, now regional vice president of operations for the company’s South Central Region. Wood brings extensive experience in supply chain leadership from roles at Allegion, Schneider Electric and General Electric. For more information, visit US LBM’s press release.
A. O. Smith Reports Record Q2 Sales of $1 Billion
A. O. Smith reported record sales of $1 billion for the second quarter of 2024, a 7 percent year-over-year increase driven by higher water heater volumes. The company posted diluted earnings per share (EPS) of $1.06, up 2 percent YoY and 5 percent compared to the prior year’s adjusted EPS. A. O. Smith reaffirmed its 2024 sales outlook, expecting a 3 to 5 percent increase, and narrowed its EPS guidance to between $3.95 and $4.10. Its recent Pureit acquisition is expected to close by year’s end. For more information, see A. O. Smith’s press release.
Kodiak Building Partners Announces IT Leadership Changes
Kodiak Building Partners chief information officer Brad Becker retires after serving in the position for over a decade. Becker, key to Kodiak’s IT advances since 2013, will stay in an advisory role until the end of 2024. Chad Finnigan, vice president of IT and cybersecurity, and Andrew Roise, vice president of enterprise applications, will take over IT leadership, reporting to Cliff Shimer, SVP of LBM Southeast. The transition reflects Kodiak’s strategic focus on technology to enhance operational efficiency and support continued growth. For more information, see Kodiak’s press release.
Thomae Lumber to Change Name to Mead Lumber
Thomae Lumber, a prominent building materials supplier in Billings and Laurel, Montana, rebranded as Mead Lumber on August 15. Established in 1982, Thomae Lumber was acquired by Mead Lumber in 2007. The name change is part of Mead Lumber’s broader rebranding initiative, aiming to unify its identity across its 53 locations. “Rebranding as Mead Lumber allows us to align more closely with our identity while continuing to provide the exceptional service our customers have come to rely on,” said Dave Anderson, president and CEO of Mead Lumber. “We are excited to embark on this new chapter in Billings and Laurel, and we look forward to celebrating this momentous occasion with our community.”
Oregon Knife Manufacturers Found Center of Excellence
Five leading Portland, Oregon, knife manufacturers—Benchmade, CRKT, Gerber Gear, Leatherman and STEELPORT Knife Co.—have announced the formation of the Portland Knife Center of Excellence (PKCoE). This new initiative aims to establish Portland as a premier destination for knife enthusiasts, celebrating the city’s rich history of knife manufacturing. PKCoE will host its inaugural public event, the Portland Knifemaker Showcase, on August 24, featuring live demonstrations and exhibits. Portland produces over 50 percent of knives sold domestically, highlighting its significant impact on the industry. For more information, visit the Portland Knife Center of Excellence or see the related press release.
