In the component industry, what are we selling? 5 Part Series- 2 of 5By Dean Kirby- Director of Strategic Partners on
5 Part Series- Part 1 of 5
In the component industry, what are we selling?
Many will say we are selling lumber and pre-built components for residential and commercial structures. Are they right? Yes! However, they are underselling the value and the importance of their products and services.
In all industries, we can refer to cycle time. How fast can we build and produce a product. But let’s go a bit deeper. Cycle time is an opportunity, won, or lost. Every day, the faster we can have a customer into their home is an opportunity gained. Every day we don’t, that is an opportunity lost. Cycle time is perishable. If we can improve our customer’s cycle time, that is more dollars in our customer’s pocket. For example, if you had a 50 unit project and by using your services (Trusses, Wall Panel, Floors, etc.), the customer reduces his occupancy time by 3.5 weeks. That’s 3.5 weeks of rent or 3.5 weeks sooner you can start your next project. If it is a rental property at $1000 per unit per month, that is an additional $100,000 of revenue in your customer’s pocket. The compounding factor of this over a year can mean $100’s thousands of extra income for you and your customers. Cycle time is only one aspect of the improvement your customer will gain by using your services. Your customer will also have improved quality, virtually emanating errors, lower labor costs, lower insurance costs, just to name a few benefits.
Check back again for part 2- Implementing Automation
#cycletime #Truss #ComponentManufacturing #Automation #Seethingsdifferently #TuesdayTruss
In the component industry, what are we selling? 5 Part Series- Part 2 of 5
This all sounds good, but how do you do it? You do this by employing laser-based automation technologies. You are not just selling sticks or lumber; you are selling so much more. The more value-added goods and services you sell to your customer, the faster your customer finishes a project. The more your customer will want to do business with you, as you make him more profitable. Customers have observed reduced set up and changeover time by more than 70% and increased productivity by more than 25% by using laser systems.
Check back again for part 3- Risk Assessment