I was thinking about how we build houses today and how large builders have a lock on the traditional supply lines of suppliers. They can negotiate favorable pricing on just about every part of the modern home. The suppliers like the predictability of large contracts and are eager to trade some profits for stability. This leaves small builders and small suppliers out in the cold. Perhaps there is a way to organize small builders and suppliers on the internet to achieve the same kind of buying power (and selling predictability) that the "big boys" get. There may in fact be significant cost savings if the supply lines can be local, versus national distribution lines.
Take lumber for example. The large lumber companies in the United States and Canada ship relatively inexpensive lumber all over the country by rail and truck. This increases the carbon footprint of the supply and increases costs directly proportional to the cost of fuel. Why not join the multitude of small mills and forests arounf the country matching local needs with local supplies. The network could be designed to provide for regional shipping as a way to balance cost with more stable supplies. Could it work?
Subscribe to:
Post Comments (Atom)
2 comments:
I have often thought that getting a consortium of smaller volume builders together to negotiate volume contracts is a great idea. Sort of a coop type of thing. This would give small builders a chance to compete with big builders. I have experienced this first hand. Of course, in the current market, big builders have bailed out of small markets, such as Ft. Collins, so now us small builders are only competing with each other. You can be sure though, when the market returns, and it will, the big builders will be back.
Terence-thanks for providing a least a glimmer of hope that someone will respond to my search for input. I hope things are going well with you in Ft Collins. My thought on this issue is that small builders could create a self funded supply company from which they purchase materials. They would make money from their building business as well as the suply business. their risk would be minimized through greater participation. It is not so much a matter of them competeing with each other; they will still do that on design, price and product, but rather providing the best value to their customers.
Post a Comment