March 2022 Component Manufacturing Advertiser Magazine

Page 35

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March 2022 #14272 Page #35

Millions of Dollars for New Equipment and Building Investments are Being Wasted Todd Drummond

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xpanding the manufacturing capacity within the component manufacturing (CM) industry for wood trusses and wall panels is at a fever pitch. The overwhelming majority of CMs have the same limited capacity issue trying to keep up with sales, which led to excellent record-breaking sales volumes and profits last year (see my January article, “Record-Breaking EBITA Exceeded Mid-Twenties for Many Component Manufacturing for 2021.”) Currently, this need for expansion has now pushed most equipment vendors’ sales for new equipment orders to 2023. Sadly, many CMs are making costly errors in their planning and investments. New Equipment and Building Facilities, the Dark Side – From the moment the contract is signed, TDC can foresee many CMs having unnecessary capacity constraints within the overall processes because of the equipment selected, the equipment set up, and the design of the new building facility. In the past, more than one client has told me they thought their vendor misled them about the capabilities of the new automated equipment they purchased. From my perspective, I could see why they were not achieving the results they were promised. The same complaints will happen to many when the new equipment does not meet expectations. It is not enough to purchase new automated equipment. The entire material process system also needs to be upgraded, along with different methods of processing the work being done. What appears to be simple, such as upgrading a truss assembly table with auto-pucks, creates many other issues that need to be addressed. Here is a hint, when adding any new equipment into the manufacturing process, start in the design department and work your way through the entire manufacturing process—the little details matter. Too many CMs overlook all the other equipment, material flow, and processes that need to be upgraded or improved upon when adding new equipment to achieve the desired results. New manufacturing buildings are being built with severe limitations and absolutely no ability to expand in the future. Too many CM professionals with decades of professional experience are mistaken about what is best for new manufacturing building designs. Continued next page

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