SPECIAL REPORT: Building in 2024? Then YOU have to read this!
For over 20 years Hansen Pole Buildings thrived based upon a fairly simple model – provide large quantities of fully engineered custom designed post-frame buildings, making a small profit, lots of times. We outsourced most components to wholesalers who would deliver jobsite direct, also with small profit margins.
While we have been very, very good at what we do – our model gradually developed some flaws, some of these accelerated by COVID.
Our key to success has always been to identify weak links in our system and then find ways to improve, if not solve them. Imperative has always been to create a best possible outcome for our clients. In providing our trademarked “The Ultimate Post-Frame Building Experience”, any changes must result in improvements outweighing costs and making builds quicker and/or easier for our clients.
In subsequent articles (make sure to be reading them), I will delve deep into what we look at as a NEW Hansen Pole Building.
HELPFUL and MONEY SAVING hint – If you are planning on building in 2024, call 1.866.200.9657 NOW. One of our improvements included investing in nearly ONE MILLION board feet of high quality lumber direct from North America’s best mills and manufacturers, when markets were at their lowest point earlier this year. Current replacements costs are 10% or more greater – however, while inventory lasts, we are passing these low costs onto our clients.
Now to touch briefly on some areas we identified for improvement.
When it comes to major investments there are three areas – PRICE, QUALITY and SERVICE.
For two decades our pricing had always been very competitive, however (during COVID), lumber suppliers increased their gross profit margins – in some cases by more than double. If you doubt this, just take a look at values of publicly traded companies such as Builders First Source (BLDR on NYSE). Smaller lumberyard chains have and continue to be gobbled up by bigger players, further adding to abilities to increase margins. Even we have been actively pursued as a possible acquisition twice in recent years.
Quality – we have had to rely upon our lumber and truss partners to provide to our clients products meeting with our high expectations. For years we existed in a ‘buyer’s market’ and our suppliers always had stepped up to deliver high quality….COVID era seemingly took a bite out of this.
Service – as our partners cut staff (we could not find staff), many developed allergic reactions to informing our clients as to deliveries. Truss manufacturers took weeks to produce even preliminary truss drawings, many of them errant, requiring multiple exchanges before being correct. And, even then, at times taking months for production and delivery.
Make sure to tune in to subsequent articles to find out how we have solved challenges in order to provide better, easier to build and more cost effective post frame buildings.
Meanwhile – take my advice offered above and call 1.866.200.9657 now. You will be glad you did.
