CrossCheck Blog

Whether it’s a big job or a small job, window installers have to respond, ready with a quote and payment options. In the big picture, according to research done by Principia Consulting, repair and remodel volume for windows is expected to grow at an annualized rate of 5.3% through 2023. Of course, that doesn’t really take into account little Billy, who kicked his soccer ball through the new kitchen window.

John is a building materials supplier. He has just received a wish list of innovative materials from a general contractor who is building an office and lab for a tech manufacturer. John knows the wish list is expensive but is excited to be part of creating what promises to be a structure that will revolutionize the construction industry and hoist it into tomorrow.

The announcement that Random Length Lumber Futures (for March 2021) have reached an all-time high ($1,004) has prompted a variety of solutions by contractors and other customers of building supply dealers. The record high lumber prices soared past the $1,000 per 1,000 board feet mark on Feb. 18, sending buyers into reaction mode. This figure is over twice the amount ($495.60) from Nov. 2020. Experts say a strong home building market, low interest rates, and a boom in home remodeling are responsible for the increase despite other indications that demand for lumber is decreasing.

If your business sells building materials to the construction industry, then you already know that it takes a long time to get paid. It doesn’t matter what you sell — lumber, dry wall, plumbing supplies, roofing materials, flooring — the contractors who buy from you have cash-flow issues that they deal with every day. The 2019 National Construction Payments Report, a survey conducted in collaboration between Levelset and TSheets by Quickbooks, concluded that getting paid in the construction industry is slower than just about every other industry. How slow? The average time to payment is 83 days!

There’s an old saying in business, “Nothing happens until somebody makes a sale!” This is true, of course, and so is this corollary: “Nothing happens with cash flow until the building materials customer pays the bill.” Cash flow is the lifeblood of the building materials industry. Sometimes a business with a full order book and a large accounts receivable position will be forced to close its doors because there wasn’t enough cash on hand to pay the bills that are due now. This is why it’s just good business to have a company credit policy at a building materials center. As somebody said, “If there’s no plan, there’s no hope for survival.” This raises the question: how do you create a credit policy?

Every construction project requires you to spend money on labor and materials. One way to generate higher business profits is by lowering the cost of building materials. It is possible to save money while buying building materials — you just need to know the right tactics to reduce overhead expenses. Let’s look at six ways to do that. Article Summary Buying Building Materials in Bulk or at Wholesale Buy Easy-to-Install Building Materials Choose Prefabricated or Modular Materials Have a Network of Suppliers Negotiate Free Delivery Establish Good Payment Terms

Build Expo, the premier event for the building supply and construction industries, launches its 2019 – 2020 multi-city lineup of shows March 6 and 7 at the Los Angeles Convention Center from 10 am to 3 pm. The Build Expo is attended by a wide variety of industry professionals, including building supply dealers, general contractors, home builders, engineers, and designers. The expo features over 20 educational workshops and seminars, hundreds of exhibitors, and thousands of products and services. The event allows visitors to attend and take part in workshops and seminars for free.

Cash, check or charge, there are only three ways to guarantee the payment of delivered building supplies to residential or commercial job sites. Simultaneously, there are only three main channels for delivering supplies: pay the dealer to do it, hire a third party delivery service, or do it yourself. The meshed processes entail having an adequate vehicle to transport the supplies, a safe way to load and unload them, enough manpower, and of course, the means to make and accept payments.

As introduced in part one of this series, consumer and contractor demand for sustainable building materials, connectivity in the home and workplace, and an “easy button” for simplified installations have spurred a wave of new products and services. The demand for sustainable products and technologies such as connected living and working spaces have been the harbinger of change in today’s building materials industry, but other trends are prompting positive changes affecting home and commercial construction. This second and final part reviews technology, DIY trends and simplified installations. See part one for details about industry growth and sustainability in the building materials industry.

The building materials industry has experienced significant change in recent years — granite is the “new” Formica; two-by-six framing is as common as two-by-fours; and wood (solid, laminate, engineered or reclaimed) has replaced wall-to-wall carpeting as the flooring of choice for many Americans. Beyond this veneer of change is a fundamental framework of industry growth, sustainability, technology, do-it-yourself homeowners, and the need for simplified installations. The focus is on sustainable products and technology, but other trends are also having a profound influence on the building materials industry. Many of these disruptive changes are interdependent, and as expected, there is a direct correlation between construction and building materials.