BMHC: Leading the Way
Rob Mellor Component Construction Photo: James Kegley; Photo: Courtesy Inteerstate + Lakeland Lumber Building Materials Holding Corp.?s BMC Construction (later called SelectBuild) set the pace for construction services throughout this decade, moving beyond just framing into plumbing, HVAC, installed millwork, and concrete foundations. Partly fueled by the housing boom, BMC Construction rocketed from sales of $150 million in 2000 to $1 billion-plus five years later as the company acquired companies in Arizona, California, Florida, Nevada, and other growth markets. BMHC?s yard business originated under the BMC West banner after several shrewd former Boise Cascade employees purchased the lumber giant?s sagging distribution arm. The company reached sales of $725 million by 1997. When the BMHC holding company umbrella was formed at the end of the decade, it was a $1 billion company. By the mid-2000s, BMHC had hit $3 billion in sales. BMHC was hurt hard by the burst of the housing bubble and is reorganizing under Chapter 11 bankruptcy protection. But it?s promising a return to profitability and solid growth in the next few years.
–Andy Carlo
The Crave for Components
From pre-hung doors to roof and floor trusses and wall panels, the need for components has soared, and increasingly it has been lumberyards feeding that need. Of the estimated 790,000 new homes built in 2002, about half the total for that year included some form of panelized construction, most commonly roof trusses. In 2001, the U.S. International Trade Commission reported that 29% of truss sales were to building material dealers and 71% to home builders and framers. Dealers soon recognized that by manufacturing components themselves, they could cash in on added sales and provide more to their customers. About 74% of dealers responding to the 2007 ProSales 100 survey said they offered some type of component manufacturing. The following year, 53% said they planned to expand manufacturing, with 51% saying they already were producing roof trusses. The movement also a contributed to the rise of green building, as component plants reduced waste on the job site.
–Andy Carlo
Show It Off: The Importance of Showrooms
Roughly 90% of dealers responding to the last two editions of the ProSales 100 Survey said they already maintained showrooms or soon would be. The showroom continues to grow in significance when it comes to selling to pros, who in turn are selling to their own customer. Showrooms communicate to customers what is available, what?s new, and what are their options. At the same time, showrooms can drive traffic, drive sales, and allow dealers to upsell options. Contractors, who typically don?t have the space or funds to maintain their own showroom, can use them as a tool to nail down their own sales. Recent winners of ProSales Excellence Awards in the Showroom category have used showrooms to net big sales, displaying wine cellars and custom millwork. And in the case of Ridgefield Supply in Ridgefield, Conn., the dealer gave time-pressed customers in a metro area 24-hour access to its 15,000-square-foot showroom.
–Andy Carlo
