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March 13, 2020

Hire Smarter Episode 08: Todd Drummond, Truss and Component Industry Consultant

 

Welcome to our 8th episode of Hire Smarter. Our mission is simple: to educate building industry leaders with best practices for hiring talent while helping professionals make better career decisions.

It’s a quickly evolving world in the commercial and residential construction and building products supply chain. The first phase was recognizing the industry’s inefficiencies. Now we are well into the second, which is “what to do about it.” As most already know, McKinsey & Company, the worldwide respected consulting firm, has delivered some great research data and foresight to the industry.  https://www.mckinsey.com/industries/private-equity-and-principal-investors/our-insights/strategy-in-the-face-of-disruption-a-way-forward-for-the-north-american-building-products-industry

The truss and component industry is front and center providing solutions. The dealers who are most effectively alleviating the onsite labor constraints for general contractors will continue to gain share. With this new state of the industry in mind, we are excited to have Todd Drummond, who has been an operator, consultant and leader to the truss and components industry for his entire career. Todd is generous, candid and sometimes direct in helping us raise our level of awareness to a few critical questions:

What is the industry average profit for a truss plant, when owned by a manufacturing company? 

How is that different from the industry average profit for truss plants owned by a lumber, millwork and building products dealer?  

What are the differences in team culture and financial performance between a below average or above average Truss Plant General Manager? 

What are the most common misconceptions and pitfalls in running a truss plant?

What would have a greater impact on leaders, a higher IQ or a higher level of humility?

Todd is clear in delivering direct answers.  Conservatively, LBM dealers are leaving behind 10 points of profit on a $10m truss plant, that is $1,000,000 uncaptured profit. Todd outlines how most LBM dealers have truss and components that make up 10-20% of their sales but deliver 50% of the entire company profits. The demand for the product, high profit opportunity, and unique specialization of skillset requires dedicated attention. Lumber dealers committed to moving banded 2×4 units in and out as fast they can struggle with embracing the complexity and value of manufacturing. What is more important, a higher IQ or greater humility?  Consistently overcoming the need to make other people think you know the answers might the best step in improving your truss plant.

Our clients have been impacted by Todd’s holistic consulting approach of supporting leaders, delivering results for years. Dealer leaders – if your truss plants are underperforming, give Todd a call for his custom playbook tailored to your business. If you have the right playbook and your truss plant leader is still underperforming, give us a call here at Misura Group. Remember, giving me the Green Bay Packers’ playbook is not going to make me an NFL QB, much less Aaron Rodgers. It might be time to embrace the reality that your draft pick was a mistake.

Hire Smarter – Tony Misura

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