Looking to expand its business away from the slumping residential home building market, 84 Lumber Co. is bidding on what it calls light commercial building projects.
The company's largest project thus far is a resort known as Grand Palisades at Lake Austin, in Winter Garden, Fla., where 84 Lumber is supplying all the building materials for 890 condominium units. Materials supplied and installed by 84 Lumber personnel include metal studs, insulation, exterior sheathing, interior drywall, trim and metal trusses.
The project is estimated to take 22 months to construct and is slated for completion in February 2010.
"This involvement with commercial projects is not in lieu of residential building, that remains our bread and butter," said 84 Lumber spokesman Jeff Nobers. "But this is something we wanted to take a look at given what's happening with residential construction."
Nobers said 84 Lumber worked with Grand Palisades' agent, Synergy Group Inc., of Bloomfield Hills, Mich., on Mona Lisa, a 200-unit commercial project in Celebration, Fla., where the Eighty Four, Washington County-based company installed the trim and supplied other materials.
The nationwide housing industry slowdown fueled a 7.9 percent drop in 2007 revenue at 84 Lumber. That decline, coupled with flat sales the previous two years, put a serious crimp in ambitious plans announced in 2006 to grow revenues to $10 billion by 2010.
Last year, the nation's largest privately held building products/services provider had total revenue of $3.1 billion, down from more than $3.9 billion in 2006 and 2005.
The company, founded in 1956 by Joe Hardy and operated by daughter Maggie Hardy Magerko, has downsized its headquarters staff by about 75, to 625, through layoffs and attrition, and closed unprofitable stores.
In July, 84 Lumber said it posted an undisclosed profit in May, its first profitable month in 2008. The company operates some 380 stores in 37 states and 13 component manufacturing plants.
Nobers said 84 Lumber is not actively bidding on any commercial projects in the Western Pennsylvania region.
No comments:
Post a Comment