BLDR looks to 'pioneer' industry technology
While Builders FirstSource (BLDR) planned to face headwinds in residential construction this year, promising signs are ahead.
And the nation’s largest prodealer is ramping up investments in technology and automation as it looks to become an even stronger partner to its builder and remodeling customers.
According to Builders FirstSource CEO David Rush, many of the company’s single-family home builder customers are showing stabilizing housing demand due to the widespread shortage of existing homes for sale. At the same time, the dealer and building solutions provider is assisting customers in navigating the dynamic economic environment.
“Our focus on value-added solutions, digital innovations, and customer service is helping builders improve their construction efficiency,” Rush said during the Dallas, Texas-based company’s second quarter 2023 financial presentation on Aug. 2.
“We’re helping our customers lower cycle time,” Rush said while noting BLDR continues to increase its efficiency in getting materials to the jobsite in an accurate, timely fashion.
BLDR’s on-time deliveries increased to 96% in the second quarter compared to 93% a year ago. “We are ensuring that customers have the right materials at the right time,” Rush said.
The strategy includes continuing to ramp up value-added services for customers.
“We firmly believe our long-term commitment to new digital innovation and technologies will deliver greater efficiency across home building and enhance our product and service offerings,” Rush explained. “We continue ot play a pioneering role in the digital transformation of the home building industry and have made a significant investment in growing our digital platform.”
[Builders FirstSource is no. 3 on the 2023 Hardware & Building Supply Top 150 Leaderboard.]
The CEO, who officially took over the top leadership role at BLDR in January, said BLDR has “made it a priority to ensure digital adoption is integrated across operations as we seek to build a platform to building better, more affordable homes.”
The myBLDR.com platform serves as the digital gateway for customers. Within the platform, designed to create digital efficiency, is a portfolio of platforms that look to improve transparency and engagement in the home building process.
For example, BLDR’s Home Configure tools allow for digital efficiency between BLDR, it customers, and potential homebuyers. Home Configure lets homebuyers customize their home—inside and out—with photorealistic 3D visualizations that can include the product selections you offer. The dealer says the tool shortens design time, manages homebuyer expectations, and provides peace of mind.
According to Rush, BLDR’s improvements and investments in new tech “improves transparency and engagement in the building process.”
“This allows customers more control over design cost estimating and the builder process, ultimately saving builders and their customer time and money.”
Looking ahead, BLDR said it remains confident that its tech investments and offerings will result in incremental product sales gains of $1 billion by 2026. In the short and long-term, the moves will make BLDR the partner of choice for home builders, Rush said.
BLDR is also making tech advancements beyond the pure digital scope.
Since the company merged with BMC in January 2021, BLDR has invested more than $100 million in automation and upgrading facilities. With each acquisition the company has made in the past two years, some type of automation upgrades have been implemented.
“We feel really good about the level of automation that we have where every plant has some level of automation,” Rush said. “But we still have a pretty long runway there to improve.”
“We are good customers for our automation vendors,” the CEO added.
