After COVID-19

Last January, when the words “COVID-19” first started making their way into daily conversation in the United States, very few people could have predicted the toll it would take on nearly every aspect of life. Almost every industry has had to live by a new motto: adapt or fall behind.

The LBM industry is no different. We have had to embrace new methods of buying, selling, delivering, and hiring, as well as working with technology, new sales techniques, and new challenges. As we enter this “new normal,” it is essential to take stock of what has changed and how COVID affected how the building materials industry does business.

COVID’s Effect on the Lumber and Building Materials Industry

Both positive and negative changes have impacted the LBM industry during the pandemic. In an industry that is, by its own admission,  resistant to change, COVID has both rapidly induced progress and highlighted specific preexisting weak points in the industry’s standard operating procedures.

• Marketing and Sales:

Like many other customer-facing industries, building materials companies have stopped being able to acquire, market, and sell their products in traditional ways. As in-person activities that used to be commonplace—like visiting contractors and lumberyards—have been restricted, the LBM industry has had to find alternatives to these techniques.

Similarly, networking events like golf events, dinners, and trade shows have experienced restrictions during the pandemic. These changes have forced suppliers to find new and creative ways to leverage technology to their advantage in an effort to promote their products. Considering that the building materials industry has not traditionally been very technologically savvy, the trend toward heavy use of technology throughout the supply chain came as a shock to the system.

During the most severe portions of the lockdowns, in-person sales calls were largely restricted, which caused many suppliers to reassess the time and resources devoted to inside sales. Inside salespeople were better positioned to contact potential buyers, so many companies started to prioritize inside sales more than ever before. In an industry that prides itself on its front-facing sales, customer service centers and inside sales suddenly became equally as important as their outside counterparts.

Combining the new need for technology with the emphasis on inside sales, many companies have had to learn how to leverage technology on their sales teams to make socially-distanced sales throughout the year. Mark Mitchell, one of the leading sales growth consultants in the building materials industry, emphasizes the importance of virtual sales on his website. He says that suppliers need to improve their websites, use a wide variety of virtual sales techniques, publish videos, and open as many lines of communication as possible between them and their customers (like chat boxes on websites).

These new marketing and sales techniques have become a standard part of successful dealers’ toolboxes due to the ever-changing regulations surrounding in-person meetings.

• Materials Shortages:

One of the most consistent challenges facing the industry during COVID has been the shortage of materials. According to LBM Journal, 62% of building materials suppliers could not find all the materials that their customers needed for their projects. 79% reported difficulty finding pressure-treated wood, and 60% were having trouble finding decking. These are some of the most common materials on the market, so having trouble finding them threw a wrench in every LBM company’s process for months on end.

Much of the materials shortages could be traced back to the lower import activity during 2020. The World Economic Forum notes that export activity unilaterally fell in 2020, which meant that the US could not receive the same quantities of building materials as in past years.

Besides the lower imports, production of materials decreased as many different industries ground to a halt. The reduced production contributed significantly to the materials shortage throughout the year.

Building materials suppliers had to wrestle with the problematic shortage of materials while also facing an increase in demand for their products in the US.

• Increased Demand:

Many industries faced plummeting demand as people were unable to leave their houses. However, as more people stayed inside or worked from home, they began to pursue DIY building projects, causing a spike in demand for building materials. Additionally, droves of people are moving from the cities into more suburban or rural areas, which has caused a boom in new housing developments and renovation projects on older homes.

While increased demand by itself would be a significant cause for celebration, the increased demand coupled with materials shortages spelled disaster for many suppliers. Some companies were unable to deal with the stress that the pandemic placed throughout the supply chain.

As new markets opened and demand increased, other suppliers were able to make more sales than ever. For those who were able to keep up with the demand despite the shortages, profits and sales unexpectedly hit record highs.

• New Talent:

An early consequence of the struggle to meet demand with the limited supply was a series of layoffs in many companies. Building manufacturers had to let go of employees they could no longer afford and increase the remaining staff’s workload. While taking on the additional work, the employees also had to grapple with the ever-changing business restrictions during COVID and the new techniques being used to accommodate those restrictions without losing sales. Due to this restructuring, many employees experienced significant burnout.

As the industry enters what many consider to be the “new normal,” companies are now trying to hire new talent to reimagine what the building materials industry will look like in 2021 and beyond. However, a significant shortage of qualified individuals entering the industry coupled with competition from other industries over top performers makes for a difficult hiring landscape.

Many companies in the LBM industry are having trouble locating and hiring qualified talent to deal with the new challenges and opportunities brought on by the past year’s uncertainty.  Most companies are now finding that the traditional method of posting job ads is ineffective, turning instead to outside sources, such as recruiting firms, to find their next great hire.

• Profit:

Fortunately, the LBM industry was deemed essential and was allowed to continue working during the pandemic. Despite the difficulties facing the sector, companies achieved record sales and profits due to the massive demand.

One of the critical factors in whether a company achieved record profits was how well they adapted to the new normal. The most forward-thinking companies have benefitted from this market of high demand and product and manpower shortages by making significant changes to their businesses.

The New Normal

It is abundantly clear that last year’s uncertainty brought on significant and irreversible changes to the LBM industry. Building materials supply companies are now facing the challenge of adjusting to these changes and finding new ways to grow and meet increased demand.

• Leadership:

Most companies within the industry are actively seeking out new thought leadership to reimagine how they do business amidst all the uncertainty. It has become evident that the LBM industry’s hesitancy to change has brought on more difficulties than would have otherwise been necessary, so most businesses have recognized the need to adapt to the new normal quickly and effectively. Thinking “outside the box” is advantageous when it comes to hiring new leaders who can bring new ideas and processes to the table. We see companies hiring former Amazon employees to gain their understanding of efficient presentation, sales, and logistics.

In addition to exposing specific weaknesses within the building materials industry, COVID also opened new areas of demand that have gone largely untapped in the past. As companies look for new thought leaders, they are particularly looking for leadership that can bring fresh ideas about entering these new markets.

• Success and failure

Even though the more adaptable companies experienced record profits, others were unsuccessful and experienced low yields or total failure. At the online fall market, Boyden Moore, the CEO of Orgill, emphasized the importance of adaptability. The adaptability of individual companies has proven to be a large determiner of whether they have succeeded in the past year, and willingness to embrace technology has had a massive impact on companies.

• Acquisitions:

When demand and profits started increasing in 2020, many companies took the opportunity to capitalize and sell. US LBM, for example, acquired at least six other LBM companies since August of 2020 alone.

In addition to acquisitions within the industry, however, private equity has also taken notice of the LBM industry and has started pouring money into acquiring successful companies. In November of 2020, Bain Capital Private Equity agreed to acquire US LBM. The private equity dollars flowing into the LBM industry indicate the strong potential the industry has for growth into new markets in the next few years.

The Future of the LBM Industry

COVID exposed areas within the industry—like technology and adaptability to new circumstances—that were severely lacking. However, increased demand coupled with the resiliency of the LBM industry led to record profits despite the uncertainty. Many companies are now looking to expand their horizons by continuing the process of adaptation by hiring new leaders and qualified new talent to run their operations. The increased and sustained use of technology in the LBM industry has also better positioned companies to move into new, untapped markets in the coming years.

In short, the pandemic has fortified an already resilient industry by giving it the tools to become even more durable and adaptable. It has also attracted new talent to the industry, which will allow companies to grow in unpredictable ways as new thought leaders influence them.

The future of dealers within the building materials industry seems secure, and many companies are better prepared for the future now than they were at the same time last year.  These are the makings of a great story that your company should be sharing to attract new hires.

About the author:  Mark Barnard is the CEO of SnapDragon Associates, LLC the Top Results Orientated Recruiting firm in the LBM Industry.  He can be reached at mark@snapdragon-new.staging-url.dev or 603-323-0940 

Press Release.

SnapDragon Associates is recognized by BUILD Magazine’s 2020 Construction & Engineering Awards

United Kingdom, 2020– BUILD Magazine has announced the winners of the 2020 Construction & Engineering Awards.  This year’s “Best Building Materials Recruitment & Consultancy Firm” title is awarded to SnapDragon Associates, LLC.

Awards Coordinator Steve Simpson took a moment to comment on the success of those recognized: “By all regards, the Construction and Engineering Awards has formed the very foundation of BUILD Magazine’s annual recognition programs for the last six years. Despite a year defined by uncertainty, the industry has managed to circumnavigate and -for the most part – continued on regardless. Perhaps then, this year more than any other, it is important to stop and acknowledge those who are excelling, achieving and innovating in challenging times for the greater industry. It is in this context that we launch this year’s program.  I offer my sincere congratulations to all of the winners in this year’s program. I am unbelievably proud of all of my winners and wish them the best of luck for the year ahead.”

To find out more about these prestigious awards, and the dedicated professionals selected for them, please visit http://www.build-review.com/ where you can view our winners supplement and full winners list.

SnapDragon Associates, LLC

Best Building Materials Recruitment & Consultancy Firm

I am always amazed at how many people hire employees with literally no thought as to whom it is that they wish to hire. No preparation on what the company really needs, what kind of person will do well in the role or what the company needs this role to accomplish. What seems so obvious to me, but lacking from many hiring managers, is the need to develop specific details, characteristics, skillset, network and vetting on each candidate to ensure that you will be (1) Hiring the best candidate possible and (2) Avoid hiring a dud.

We use an acronym here called SPACE each time we vet candidates for our clients, no matter the position. SPACE is a simple way to make certain you hire the best fit for your organization and ensure you hire a long-term candidate who is going to make a positive impact.

S-Skillset: You need this piece to even be considered for a role . . . education, work history, certificates, industry knowledge, experience, licensure, ability, etc. This part is just the start and is the beginning of what is needed by a candidate to even be invited to talk. The skillset is the easy one, and where most companies focus a ton of time on; but it is not the most important. Many companies think that as long as the candidate has the skillset for the role on paper, it automatically makes them a good fit for the open role. This is the furthest thing from the case – it’s simply just a piece of the puzzle.

P-Performance: Examples or metrics of what the candidate did in his/her current role or past roles that made a quantitative impact. Sales increases, profit improvement, product development, cost improvement, decreased turnover or cost cutting; anything that was a positive improvement to the company’s bottom line. We all want the superstar candidate, but do we take enough time to find out what quantitative results the candidate made or is making? Answer is no, not enough. Most resumes talk about duties and responsibilities but never talk enough about what the candidate accomplished while they were in each role. If they were on the job for 10 years, it would be worth hearing what impacts to the company’s success they made. Quantify to justify.

A – Attitude: Does the candidate seem to have a great attitude towards his past jobs, his co-workers, and employers? Do they seem to “want” to be part of your team? Positive attitude is always a must have and something each company should strive for.

C- Culture Fit: How has the candidate successfully worked in the past? In a team, as a lone wolf, with little management or with a ton of oversight? How do they like to be managed, how do they take criticism, what excites them, what do they feel is important in a new role? Who were their favorite or least-favorite bosses and why? How does their work impact their family life? Why are they looking to make a career jump in the first place? Ask a lot of questions on how this person works, the kind of person they are and compare that description to your company culture. Really dig in during this part of the process as it is one of the key pieces to consider. Think about it; we spend 40-50 hours a week with the people we work with. Making sure that person will jive with your group is critical. The absolute worst hire is one where the new hire does not fit your culture.

E- Evidence: Ask for examples, reports, reference letters, copies of certificates, diplomas, etc. You need real proof of what they said they have in terms of skillset, successes, and culture. While it may be uncomfortable to ask, you cannot afford to not ask.

There you have it; a quick, simple way to make sure your next hire is better than the last and guarantee that you do it right the first time, not the third. Keep SPACE in mind and make sure your hiring team does as well and you’ll improve your hiring success.

To read the article in the Millwork & More Magazine, go to page 20 here: http://ow.ly/f6QZ30rpeXq

Typically, we follow college basketball rather than the NBA and unless our Boston team is on the court in the post season, we lose interest quickly. However, with COVID-19, the limited amount of sports on television this year and with a new playoff format, we got into NBA playoff basketball. We were struck at the amount of talk of bench strength and how important it is for a championship quality team to have people on the bench who can come in, contribute in different ways, and fill in at a moment’s notice when called upon. Let’s face it, if you want a championship team, you need bench players who would be starters on other less-competitive teams.

During the pandemic we have been fortunate to be deemed an essential business. This has allowed most companies in the LBM industry to see great business results in what could have been a disastrous year. Companies in other industries were not so lucky. That being said, we, as a recruiting firm, have used the words “bench strength” more this year than in any other time we’ve been in business.

Like all championship teams – especially in trying times – companies look much like a professional sports team and ask themselves, “Do we have the bench to win a championship? Can we withstand a long-running battle to be regarded as the best of the best? Do we have weaknesses in any area of our team that may cause problems for the whole as we go through this long season? If we could draft a player or trade someone, where do our weaknesses lie? Do we have the right players? Do they work well together and support each other?”.

With the New Year right around the corner, we are seeing more and more organizations asking themselves those bench strength questions. You need to have the best team in place; and do so now. Find your weak spots and recruit stronger. Make organizational changes that will increase productivity, customer satisfaction and revenue. Fill your bench with players that would be capable of being starters. 2021 is going to be an enormous year in many ways. Build your bench now and be ready for it.

Hiring or Dating?

In any organization, no matter the industry, size, location or culture, the people you hire are absolutely key to your company’s success. It’s unbelievable that companies get it so wrong when it comes to something so critical as hiring. They get it wrong because they are not seeing the hiring process in the right light. The hiring process is one that should be viewed in a way . . . like dating.

Think about when you start dating. You create an image in your mind about who will be a good fit for you, your lifestyle, your family and friends and your long-term plan. Hiring is not so different. When a company is looking to make a hire, they are looking for someone to fit their company and culture, their long-term plan for the position and the right skill set. The two are so similar, yet so many companies make it more complicated than it needs to be.

Like in dating, when you come across someone who you have “interest” in, you engage in conversation, a.k.a. interviewing. There needs to be a series of pleasant conversations that follow for the process to continue. It’s important to think about all of the factors that go into the process when someone is about to take a new job (or get into a serious relationship). Is their family on board? Will their work-life balance be impacted? Financially, are they going to be able to maintain their current lifestyle? Will they have to move? If so, what will the housing situation look like?

There are so many parts that go into a hire – similar to the dating process – that we have to keep in mind as hiring managers. Typically, it’s not just the candidate that is impacted by this new job; it’s an entire family.  It is something to be considered if you want to successfully get the right people on board.

The solution is simple. It cannot just be all business anymore in the employment climate we are in. There has to be a personal touch, a connection between client and candidate, in order for a successful hire.

So, what do you do? You talk to candidates about why they would be a good fit for your company culture. You point out how you can improve their professional growth paths by what your company can offer. You have to sell YOURSELF and your team. Trust me, if you can wrap your head around the similarities between hiring and dating, you can be assured that you will be able to land that stud candidate and never be left waiting at the altar.

Companies across the US have seen a constant flux in employment, from companywide furloughs, to widespread lay offs. Fortunately, in the Lumber and Building Material industry, while there has been some turn-over, our industry has been lucky enough to be an essential business. That’s not to say that there hasn’t been a fair share of challenges to overcome, however the uphill climb may be easier, especially if those top performers are working towards building a bigger, better, and smarter bench. They have been utilizing this time to find and hire top performing candidates who might otherwise not have been available.

The companies that will continue to outperform their competition are the ones who regularly assess and evaluate their teams, and thus regularly adjust their hiring. Whether looking internally for those top performers already in their organization or looking outside the company to find top-notch talent who are already having great successes in their current roles. Understanding where your needs are and filling the roles with talented candidates that are already excelling at what they do is key in helping to build a team that will propel your company further.

Make sure that as a company you are hiring smart, understanding where the “pain points” are, and setting clearly defined needs and expectations to find the people you need. Going into a job search to find top-talent requires that a company knows what key players they need to add to their team, and where to find them.

This year has been filled with more uncertainty than most. Industries are screeching to a halt due to the Coronavirus. However, as an essential element to our country’s growth and success, the building materials industry is evolving more rapidly than it has in a long time. As it adjusts to the current shutdowns and restrictions, it is adapting to new technology and changing its business models. One of the most notable changes is how it has become more appealing to the younger generation . . . a challenge it has struggled with in the past.

Many of our industry companies have had layoffs, restructures and changes in market strategy resulting in an abundance of workers looking for new opportunities. We have not seen any shutdowns; in fact, there has been an uptick in demand.  That upward trend has led to many companies looking for new ways to be more efficient and more technologically prepared in responding to current needs.  With the spike in unemployment and uncertainty in the job market, we have seen more younger generations exploring a career in our industry for the first time. They are recognizing the resilience of the industry, how well it adapts to economic swings and withstands even the most catastrophic events.  In other words, it brings them a better sense of security.

We have helped place many young people with Best in Class companies that are looking to build their bench and develop a strong team.  At the same time, these companies are looking to them as the future success of their companies.

With everything going on in this world, the building materials industry is thriving . . . pushing ahead and growing. The housing market is booming – new home construction is going through the roof. Our industry has and will continue to be an essential element to our country’s growth, and the demand for good talent will only get stronger.

Companies across the country are constantly looking for new talent; the movers and shakers, the change makers, the professionals who are making a direct impact for the companies they serve. These professionals can tell you in detail the obstacles they have faced, challenges they have overcome, and the accomplishments they have had.

 The biggest challenge facing many companies now, especially with such a large talent pool to swim in, is how do you tell the difference between the News Makers and the News Reporters? It’s not enough these days to simply list out all of your responsibilities onto a sheet of paper and call it a resume.  Employers want quantifiable results. In other words, don’t just tell a company your “news”, tell them your “story”. 

So how do you stand out in the abundance of resumes to come out with the top story, that headline maker? Candidates who can clearly show the direct impact and accomplishments they have had throughout their career are the ones who will stand out to even the most discerning employer.

Now is the time more than ever to evaluate your resume and assess … are you the News Maker or the News Reporter? How does your resume highlight your accomplishments and tell your story?