Formulated To Build
Only God can make a tree, but for decades building innovators have shown no qualms about seeking to improve on the Lord’s work. The result has been a steady succession of engineered, composite and plastic products taking the place of solid-sawn wood. Half the I-joists and more than four-fifths of the panels used in the country now are engineered, while sales of wood-plastic composites have doubled in the past five years and are expected to nearly double again by 2013. All-plastic lumber’s growth rate has been only slightly slower. Aside from lasting longer and needing less maintenance, these products are stronger, straighter, and lighter than solid-sawn equivalents, making it possible to build homes with less wood than before while freeing architects to create open, airy spaces with roofs that seem to float over the foundation. Next up: mini-skyscrapers built primarily of laminated wood rather than steel. It all begs the question: What hath Weyerhaeuser wrought?
–Craig Webb
Big Builders
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In 1989, the 100 biggest builders in America were responsible for constructing 16% of all the homes and condos put up that year. By 2006, that share as measured in the annual Builder 100 report had swelled to 43.6%. In 10 of the nation’s 75 biggest markets, just 10 builders per market were putting up three-fifths of all the homes. No wonder organizations like ProBuild, Stock Building Supply, BMHC and Builders FirstSource sprung to life. But the relationship has never been pleasant. As one Atlanta area dealer says: “Production builders’ money is like heroin: You feel great when it’s coming in, but the withdrawal is horrible.” And when the big builders’ money left these past two years, it was the dealers most focused on production builders who suffered the worst. The recession humbled the Builder 100, but only a bit: in 2008, that market share subsided to just 38.7%. In addition, it’s widely believed among housing analysts that when the market recovers, it will be the production builders, with their ready access to capital, that will lead the way.
–Craig Webb
Agent Orange: The Rise of The Home Depot’s Big Box
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A brainchild of Arthur Blank and Bernie Marcus, with financing from investor Ken Langone, The Home Depot proved to be the undoing of plenty of dealers and hardware chains that weren’t quick enough to change with the tide. With product stocked high and cheap, Blank and Marcus’ warehouse approach changed the face of home improvement retailing, forcing pro dealers to rethink their business model. It was no longer a safe bet for dealers to believe they were “the” local destination point for paints, tools, hardware, and, in some cases, even lumber. Dealers who caught on reacted and focused their energy on selling to pros. Those that didn’t quickly found themselves in trouble and, eventually, out of business. While The Home Depot went on to ultimately channel its focus on the everyday homeowner and apartment dweller, it still remains a destination point for contractors and remodelers in need of a tube of caulk, a window, a new drill, or an appliance.
–Andy Carlo
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