BMC by the numbers
BMC-Stock CEO Peter Alexander described “significant progress” for his company in 2016, partly thanks to the synergies achieved through the acquisition of Stock Building Supply, a little more than a year ago.
“Our merger, which we completed a little more than a year ago, unlocked numerous opportunities to expand the business and improve profitability," Alexander said. "During 2016, we achieved strong operational and financial results including significant gains in operating margins and cash generation."
During the company’s fourth quarter earnings call, BMC pointed to numbers that backed up the story of growth. Here are some statistical highlights:
- Total company net sales for 2016: $3.1 billion
- Total net sales growth: 10.5%
Amount of sales growth attributed to 2015 acquisitions of Robert Bowden and VNS: 4.2%
- Total number of BMC-Stock locations: 91
- Number of states in which BMC-Stock operates: 17
Share of total 2016 building permits generated in those 17 states: 63%
- Ratio of locations operating on one single Enterprise Resource Planning system: 2/3
- Amount of cost savings from synergies within the 2016 results: $31 million
Minimum expectations for additional cost savings by the end of 2017: $15 million
- Sales of BMC’s proprietary ReadyFrame job-site framing solution: $103 million
- Percent growth of ReadyFrame sales compared to 2015: 46%
Expectations for ReadyFrame sales by 2020: $300 million
- Percentage of customers who are single-family homebuilders: 75%
- Percentage of customers who are multi-family and commercial contractors: 13%
- Number of individual customers that account for more than 5% of total BMC sales: 0
84 Lumber expands its c-suite
From the lumber yard to the c-suite, 84 Lumber is adding new talent to help usher in a new era of expansion, the company says.
The pro dealer promoted Mike McCrobie to chief procurement officer. The company is also conducting a search for a chief information officer.
McCrobie, a 20-year company veteran who started as a manager trainee in Star City, W.Va., previously served as the VP of the national and installed sales divisions.
In his new role as CPO, McCrobie will be in charge of purchasing, inventory management, pricing, cost forecasting and delivery. McCrobie will be based at 84 Lumber’s headquarters in Eighty Four, Pa., where he will be responsible for purchasing more than $2.5 billion of goods and services and managing $300 million of inventory.
“Mike’s exceptional knowledge of the business makes him the ideal candidate for this role,” said Maggie Hardy Magerko, president and owner of 84 Lumber. “He understands every detail of how the flow of products and services either help or hinder our customers and associates. Whether it’s a store selling materials to a custom builder, a door shop selling to a regional builder or a component planet selling directly to a national builder, Mike knows that process better than anybody.”
As CPO, McCrobie will be focused on streamlining procurement systems and making it easier for stores to focus on selling. McCrobie will also be collaborating with the new CIO to optimize all of 84 Lumber’s business tools and processes so that the company can continue to evolve and expand across the country, the company said.
The company says it is planning to open at least 15 new stores and hire more talent to staff those locations in 2017.
The NLBMDA welcomes the Timber Innovation Act
The National Lumber and Building Material Dealers Association is singing the praises of the Timber Innovation Act, which was reintroduced in Congress on Tuesday.
The legislation's aim is to boost the use of wood in construction by creating federal grants to support outreach, research and development, as well as education to accelerate the use of wood in tall buildings. It would also establish a performance-driven R&D program for tall wood building construction, as well as authorize the USDA to work with states to implement educational and technical assistance programs for mass timber applications.
Finally, it would authorize the USDA's Tall Wood Building Prize Competition annually over the next five years.
The bipartisan legislation was introduced in the House by Reps. Glenn Thompson, R-Pa., and Suzan DelBene, D-Wash., along with 12 additional cosponsors, and in the Senate by Sens. Mike Crapo, R-Idaho, and Debbie Stabenow, D-Mich., and 11 additional cosponsors, signaling strong support for the bill.
"NLBMDA is thrilled to see strong bipartisan support in Congress to advance the construction of tall wood buildings," NLBMDA president and CEO Jonathan Paine said. "The legislation recognizes the technological advances in wood building products that make it a preferred construction material."
In a statement, the NLBMDA added: "Increased awareness of the environmental benefits and sustainability of wood, combined with its safety and structural performance, have made it a more attractive option in the construction of low and mid-rise buildings. Wood has a lower carbon footprint than other commonly used building materials, and has proven to be a good building material for fire protection, earthquake safety, and high-wind resistance."