Startup truss company
Startup truss company
(OP)
I hope that I am posting in the right forum and my post does not offend.
I am looking to start a new roof, floor truss and wall panel company in Colorado.
I am not a contractor and know little about the truss industry.
I am trying to get "up to speed" on the industry, enough to write a coherent business plan to attract investors.
I am looking to buy a "turnkey" operation that is close to state of the art in terms of efficiency accuracy and economic viability.
Currently I am working with an equipment broker on acquiring the kind of manufacturing equipment I am looking for. He has presented me with a series of pieces from a WVA bankrupt company that includes several Panels Plus tables.
So I have an idea of equipment costs. I am looking for a number of pieces of economic data to incorporate into my business plan. Those critical pieces of information include revenues per piece or foot or pound or however pieces are priced. I'm also looking for cost data. what does it cost to build one roof truss for example including labor and materials, etc.? Job descriptions and labor rates are another piece if the puzzle. To do what I want, I'm told will take 14 -15 workers. Job creation is my primary goal so any information on that aspect would be most appreciated. I realize that the information is probably geographically related but any information at this point is very helpful.
If I have overstepped my bounds in this forum, please accept my apologies and point me in the right direction.
Thanks
Steve
I am looking to start a new roof, floor truss and wall panel company in Colorado.
I am not a contractor and know little about the truss industry.
I am trying to get "up to speed" on the industry, enough to write a coherent business plan to attract investors.
I am looking to buy a "turnkey" operation that is close to state of the art in terms of efficiency accuracy and economic viability.
Currently I am working with an equipment broker on acquiring the kind of manufacturing equipment I am looking for. He has presented me with a series of pieces from a WVA bankrupt company that includes several Panels Plus tables.
So I have an idea of equipment costs. I am looking for a number of pieces of economic data to incorporate into my business plan. Those critical pieces of information include revenues per piece or foot or pound or however pieces are priced. I'm also looking for cost data. what does it cost to build one roof truss for example including labor and materials, etc.? Job descriptions and labor rates are another piece if the puzzle. To do what I want, I'm told will take 14 -15 workers. Job creation is my primary goal so any information on that aspect would be most appreciated. I realize that the information is probably geographically related but any information at this point is very helpful.
If I have overstepped my bounds in this forum, please accept my apologies and point me in the right direction.
Thanks
Steve





RE: Startup truss company
#2 - Look at the local competiton and see how they are faring.
Do your home work and good luck
RE: Startup truss company
RE: Startup truss company
I'm in a market where housing prices are still rising because of increased demand.
Otherwise I would be waiting on better market conditions.
I know there are some bargains out there right now and I'm hoping to find some.
Still need to do a business plan to raise some capital to get this thing going.
Where can I get more info on that house for $6000?
RE: Startup truss company
RE: Startup truss company
You could try the Wood Truss Council of America, they may even be able to hook you up with the owner of a successful truss company well outside the area of business you are proposing.
http://www.wtcatko.com/glossary.php
For that matter, have you considered picking a region at least 500 miles away, with similar weather and elevation, dig through the yellow pages for truss companies, call and ask for the owner, tell him what you want to do, ask his advice and pay for it if necessary. They say it's lonely at the top, maybe they will want someone to talk to...
RE: Startup truss company
http://www.tpinst.org/platemembers.html
and the reps will gladly compete for your business purchase of new/used machinery throughout the U.S., and could also have knowledge to assist in plant layout.
RE: Startup truss company
RE: Startup truss company
Not sure what market you work in or your particular experience/responsibility level in the business but I'm sure there are lots of people with similar experiences that would say just the opposite.
If most truss companies were able to earn only 1% they wouldn't do it for very long. Return on investment (ROI) is the result of a variety of factors, all of which tie directly back to management and marketing. If your estimator doesn't do a good job pricing your product, you won't be able to stay in business for very long. Maybe that is your experience. The same can be said of any job in the manufacturing process. The key is getting good people with appropriate skills and paying them for what they do. Knowing your market and the products you produce is another key. If you are only earning 1% then you need to look at the reasons why and fix the ones that don't contribute to your margin. Maybe a business class at a local community college would be a place to start.
RE: Startup truss company
Hiring the right people and good marketing won't make a bit of difference if nobody is buying your product.
Good luck
RE: Startup truss company
Do you already have a truss company in Colorado that is not doing well and this is you way to seek advice? If this is not the same Steve I appologize. The key is to know you costs, only then can you be profitable.
RE: Startup truss company
No I don't have an existing truss company.
I'm working on a business plan to attract investors and looking for as much info as I can find.
If I can find investors then I can find buyers. They are not one and the same people but there will be some overlap. Finding funding is very similar to finding customers, just a different approach. Understanding the market for both types is critical to this idea.
RE: Startup truss company
Ciao,
TB
RE: Startup truss company
I am in the only growing market in Colorado. Granted there are places in Breckenridge, Aspen, Steamboat, Rifle and Junction that are still going, there are economical and weather related issues to those markets. We may here how fantastic those markets are, because people with money are still spending it in those locations, the problem is you have the entire I-70 corridor that is competing for that work, and the population centers, other then junction are very small, so any work seems relevant to the area being busy! I could name at least 10 truss plants hitting those market's hard, Including myself....over 2 hours away just to hit the edge of the area I'm speaking of.
The reason my market is still going, and not that it isn't already saturated with builders whom overbuilt for the area, but because of our military we are able to continue building homes. AND because of that, not including the plants in Denver taking homes from our market, We have 5 nation wides here, 6 total plant's 350,000 people....do the math and that is toooo much competition in a small market.
Trussme68 is right on the target. The production home builders, Richmond, Laing, Classic, Pulte, are getting their trusses for almost free! When pricing the companies, they are paying for the material + 25% of my labor costs! Profit is a word that doesn't exist and we being small are fortunate to be able to make a mild contribution to Overhead. Yes today the roof truss business is a not for profit business. In past years the most I have made on regular trusses was 5%-7%,. Oh the good old days. We sell beam trusses today and that is what keeps us around! I don't believe the nation wides are capable of the service, in house drafting and engineering, as well as special fabrication methods, to do this so we should fare through this. Should being the operative word!
So with all that said, i believe you should reevaluate your thoughts and look at something more feasible, such as a liquor store :)