Monthly Archives

June 2013

An Afternoon at Zeeland Truss & Components

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Mike-Dykstra-SmallOn Friday, June 21, we enjoyed hosting customers, employees, families and members of the community at our truss operation. Our truss plant has called Clay Ave. ‘home’ for a little over two years and this event served as a celebration for our recent successes.  With a few infrastructure upgrades this winter, we have increased our capacity to include three roof truss lines, three wall panel lines and one floor truss line.  As of today 75 people are employed at Zeeland Truss &Components and it was very exciting to introduce people to our capabilities.

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What does this growth mean to you, our customer?  It is our hope that you have a value-added experience with Zeeland Truss & Components.  As one company, there is one point of reference for the structural framing, engineered floor systems and roof trusses.  Instead of outsourcing certain aspects of the framing package (like the floor and roof systems), you have one company that is working with you on all aspects of your framing project.  You also have one group of designers that is designing your roofs and floors for an integrated approach.  After design, we control the quality manufacturing process and shipping and delivery.  One umbrella company that seeks to serve your structural framing needs with an integrated approach – that is our value to you.

Finding the New Normal

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John-Colley-Final-1024x1024I started another week reading through the latest economic reports.  According to these reports the dealers are all talking about a lack of labor in the field and how this lack of labor is constraining sales.  Additionally, mills have been facing a stalling market and they are taking offers to move product.  Some companies are starting to realize they have both over hired and overproduced, and are starting to correct.

Commodity pricing, in some respects, is coming full circle. Pricing has ‘eeked’ up 36% from October 2012 to April 2013 before returning back to 2012 levels.  Non-commodity building product dealers keep pushing for increases to cover their inefficient operations and to cover costs associated with raw materials like production and transportation.

I do not think there is anything mystical in the current equation.  Our rapid price increases have drove off foreign investment as our manufacturers were gearing up while trying to determine the “new normal.” We should expect to see hiccups as we begin to discover true demand.  That is what this equation is all about: demand has been unpredictable and supply is struggling to figure it out.

Going forward, look for value in the short term while commodity product suppliers push excess inventories.  Engineered product suppliers are looking for increases to cover costs of inefficient operations and other building product suppliers will also try to get increases. I believe that both engineered product suppliers and building products suppliers will have a hard time unless industry competitors also push upward.  That being said, I recently read the average home price was up 10% in March 2013 from March 2012.  I would look for the sum of those parts to stay relatively flat in accordance with that statistic, but the components will fluctuate in the process.

 

Zeeland Lumber and Supply in the LBM Journal

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Since February of 2012 Zeeland Lumber and Supply has opened its showroom to local groups in and around Michigan’s lakeshore that are in need of places to host meetings.  This initiative recently caught the attention of the LBM Journal and they featured this unique practice in their June issue.   Our article is featured below, but the entire issue can be found here.

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