Computers & Technology

The Northwestern Lumber Association Board of Directors has recently set a goal of identifying the needs and next steps in the area of technology and leading the industry towards efficient usage of available tools. The NLA has called on marketing research students at Winona State University for assistance in this effort.

Leon Tyler, Assistant Professor in Marketing, along with his research students, developed a survey to find out how computers are used in the daily operations of lumber dealers and how satisfied members are with their processes. The research consisted of in-depth phone interviews and an online survey. Fifty-six members completed the survey which revealed that many members are less than satisfied with one or more aspects of their technology experience.

Along with the overall satisfaction level some other basics findings that were revealed included:

• Windows XP is the preferred operating system among dealers
• Computers are primarily used for accounting functions
• Many members utilize third party vendors to assist in computer training and maintenance
• Computer networking is the most frustrating technological issue among dealers
  

After all the results were compiled, it was discovered that 80% of dealers using third party professionals were more likely to be satisfied with their resources than those not using professionals.

Those participating in the survey also indicated that a resource to generate and distribute “upgrade” information would be helpful as it is hard to know what and when upgraded technology will improve operations. Acknowledged along with that was the need for training when the upgrades occur.

The researches did draw one interesting conclusion from the in-depth telephone interviews. “We observed that none of the dealers interviewed were experiencing real pain around computer and software issues. But the longer they talked about their computer and technology the more likely they were to express frustration with the current solutions and resources. It appears that computer issues are not a major problem, but rather a minor, persistent irritation- like a stone in one’s shoe.”

From the conversations I have had, I would believe this to be true. But the contrary argument might be that members don’t experience pain because they are doing their best to ignore the problem. Maybe technology issues are just too big to tackle alone. But I bet we may be able to say the very same thing about any number of issues within our businesses?

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Non-Residential Construction

With the economic times being what they are, some members have been wondering if it is time to explore additional markets. One of these potential sectors is Non-Residential Construction (NRC). The NLA has recently completed a survey to find out exactly how prominent NRC is within the membership.

The survey was completed by 33 Retail Dealers and 8 Wholesalers/Distributors. Some key numbers are summarized below…

• 90% of those responding say they currently work/supply for some NRC projects.
• 40% of those responding say have seen an increase in NRC projects the past year (2009).
• 74% of those responding report that NRC projects are between 6 and 25% of their total sales.

At least 70% of those responding report working

• Education/Academic Buildings
• Worship Facilities
• Office Buildings
• Retail Commercial Buildings
• Housing projects

Some of those responding submitted their experiences and theories about NRC projects:

• “Most commercial construction projects deal with items beyond the normal ‘retail lumber dealer's’ inventory (ie concrete, block, steel, etc.) and some commercial contractors have direct means to purchase some items (ie foam insulation, interior millwork, trim, etc.).”
• “We mainly supply commercial contractors with lumber only. We work hard to get business from our City, schools, and others. But it seems they have other suppliers that are easily accessible and lower priced on most products...I believe most of their suppliers are specialized.”
• “We have decided to go after this typically lower margin business for the volume and have made it work well for us. We have even tried some “new ideas”; working with customers on a “cost plus” basis.”

It is clear the vast majority of NLA members contribute in some way to Non-Residential Construction projects (90%). It is also important to note that some members have made a conscious effort to target this segment with success.

However, the initial graphic would indicate that even though some members are experiencing an increase in NRC projects the majority of members have seen no change or a decrease in the area over the past year. I think we can safely say that this market segment is a viable option to consider, but it may be too early to consider it a trend.

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Welcome NLA

I have started this blog as a way to quickly distribute information and gather feedback from members about new or possible programs.

Periodically, the NLA office takes calls in which we answer questions or find answers to an issue that would have otherwise cost members valuable time. A blog is the perfect way to answer these questions for all to see.

It is like my 5th grade teacher, Mrs. O'Neil, always use to say. "If you have a question, don't be afraid to ask it, chances are someone else has the same question."

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