Source: Pittsburgh Post-Gazette
Publication date: January 31, 2008
Jan. 31–Officials at 84 Lumber Co. braced for tough times last year and the results seemed to justify that stance. The Washington County building materials supply company reported total sales dipped to $3.1 billion, down from $3.92 billion the year before.
An ongoing slowdown in the U.S. home-building market has taken a toll on many sectors in the overall economy, hitting hard companies such as 84 Lumber that had bulked up to support the once-booming industry as well as lenders caught in a wave of subprime mortgage defaults.
“We feel that we were able to weather this as best we could,” said Jeff Nobers, vice president of marketing and public relations.
The Washington County company last year announced more than one round of job cuts at its corporate headquarters in Eighty-Four and shuttered some slower stores as officials of the private company tried to position the business to handle a significant erosion in the market.
Although the pace of new store openings has slowed, Mr. Nobers said the company continued to try to invest in adding services and stores in markets where growth should be solid once things start to turn around.
That may take awhile. The U.S. Census Bureau reported earlier this week that sales of new one-family homes were down 4.7 percent from the previous month and down 26.4 percent for the year compared with 2006.
If sales continue at the current rate, the bureau estimated it would take more than nine months to clear out the inventory of new homes for sale.
Other building supply operations have been hurt, too. Stock Building Supply, based in Raleigh, N.C., reported a 25 percent dip in revenue in the last five months of the year. The company had reduced head count by 1,500 during the period.
Stock’s British parent company, Wolseley PLC, predicted the slowdown would continue. “In the U.S.A., the housing market is likely to deteriorate further until the current high levels of unsold inventory have declined and the full effects of problems in the subprime market have been assimilated,” the company said in an earnings release last week.
84 Lumber’s results appear to confirm reports the area market has escaped problems that hit hard in higher-growth markets. The company’s Pittsburgh region, which includes parts of Maryland, Virginia, Ohio, West Virginia and Pennsylvania, was among its best performing areas. “This region never boomed so, therefore, it didn’t have to bust,” said Mr. Nobers.
The company employs about 625 at its corporate headquarters, down from around 700 about a year ago. The cuts came through a mixture of layoffs and attrition. 84 Lumber operates about 455 stores and component plants, with plans to open about 12 new sites this year.
Peaceful,
easy feelin’.
Replies
my lumber company , with three stores , laid off maybe 5% last year..
they took a big hit when Pulte pretty much stopped building in RI
Man, if my Co. took an 800 million $ hit, I'd be like, 799,999,999 upside down...........
Naive but refreshing !
I seem to recall Stock Lumber in this area "consolidating" from 5 stores to 3. I don't use them, but heard it from the mom and pop operation I deal with.
Still can't figure out how the mom and pop outfit is making it. Couple months ago it had snowed, and when I went to the yard at 11AM I was the only set of tracks that had been there.
Bowz
84 nearest to me closed, and that is in the booming Washington DC/Baltimore corridor. I stopped buying from them after the last load of 2x4s they delivered looked like their cull pile.
I live in a small town (pop 45K) with one Lowes, one Sutherlands, one HD, and one 84 store. As a DIY house rehab-er who spends maybe $5K-10K a year on building materials I'm certainly not in the same league as a GC or tract builder. The 84 lumber store here is perfectly willing to ignore me as a customer and their attitudes toward non-trade walk-ins borders on hostile. I have to wonder if that 'tude from the sales floor has something to do with their present predicament.
The floor guys were OK, even if they were on commission, which usually is the cause of the snotty attitude. I almost snatched the tip back from the delivery guys. The older, bigger one covered in jailhouse tattoos did all the unloading with me. The kid with the attitude, who I handed the tip to, didn't hardly hump anything, and mouthed off under his breath about the amount.This 84 was near a HD and across the street from a True Value. Now I go 5 miles further out to a small, high quality lumberyard, where the guys are always helpfull.
84 here is the same way.
Competition is fierce -- multiple HD, multiple Lowes, multiple private, non-chain yards. I've wondered for years how they stayed in business.
Course, I'm not Pulte.................................
JimNever underestimate the value of a sharp pencil or good light.
Use to be an 84 in this godforsaken land till the arrival of the Lowes/HD conglomerates.
They'd managed to stay alive even after the DIY that had built a new building like 5years before Lowes/HD.
Now with DIY closed out that building has been lying vacant for the last 6 years and by the looks of things another 6 years of the same is a distinct possibility.
And I understand HD isn't exactly breaking any sales records.
Ok tho', as a little guy the influence of the times has little impact on one's life style.
You might not buy as many tools or collectible comics at a show as during a more prosperous clime but hey, that's the price of living.
be the pendulum swing like the pendulum do
Peach full,easy feelin'.
Where are you at?When the moved into Kansas City that was there most Westward locations and the NE corner (& headquartrs) for Sutherlands.But I just looked and see that 84 is in Texas and Sutherlands has a bunch of stores in Ohio. Must have bought out another chain.Worthless, best describes them.Now I do handy man work, mostly repair type of work or very minor construction. So it is much easier to go L or HD or Suthers, but I just don't like Sutherlands as much.Last month I was looking for a prehung, split jamb birch door to match others in the house.They had one in the back, right handing and size. But the packing was off of it. Said that I would take it, but needed some packing on it. And that I did not have room for it and would pick it up the next day.Everyother time that I have went in their not only don't they have what I want, but most of them have no idea what it even is.Go in the next day they said to dry around the back and some one would be their to get it. Never saw a single person in the back yard. Also noticed that the door had not be packaged. Waited about 5 minutes and walked through to the front and someone said that they could get it.He grabed the door with the legs flying in every direction. Said that it needed some package or else it would self-destroy.I went up front and grabbed a roll of strech wrapped and bound it up..
.
A-holes. Hey every group has to have one. And I have been elected to be the one. I should make that my tagline.
"Where are you at?When the moved into Kansas City that was there most Westward locations and the NE corner (& headquartrs) for Sutherlands.But I just looked and see that 84 is in Texas and Sutherlands has a bunch of stores in Ohio. Must have bought out another chain."I live near Grand Junction CO.
they have one in the Springs...
don't waste yur time or money by going there...
Life is not a journey to the grave with the intention of arriving safely in a pretty and well preserved body, but rather to skid in broadside, thoroughly used up, totally worn out, and loudly proclaiming<!----><!----><!---->
WOW!!! What a Ride!Forget the primal scream, just ROAR!!!
Ya, they always seemed too retail minded.
Years back when doing bookoo amounts of melamine shelving had trouble locating the melamine and metal zip strips for the shelving clips.
Trying to order bulk from the manufactures was way more expensive than waiting for shipments at the big boxes which I would raid completely.
So at times as a last effort I'd have to scour the shelves at Sutherlands and they were always more expensive than other places.
Place was usually empty but did have some of the goods. I'm thinking because no one else would buy the stuff there.
Peach full,easy feelin'.
Was the Sutherlands in OH alway Sutherlands?Surprised they have stores out that way as they don't have anymore until you get to MO.At least the local stores have much cheaper products than HD or Lowes. And I am not talking just about cost.Such as light fixtures and mill finished storm doors..
.
A-holes. Hey every group has to have one. And I have been elected to be the one. I should make that my tagline.
It was down in Oklahoma.
Cannot recall ever even seeing one in Ohio.
Peach full,easy feelin'.
They got 3 of them.http://sutherlands.com/ohio.php
.
.
A-holes. Hey every group has to have one. And I have been elected to be the one. I should make that my tagline.
sutherlands here in wichita is a great place to buy apples and candy[whats up with them selling food?],but thats about it. there products are cheaper made and cost more.
they are building a new hd by one of them ,it will be interesting to see if they can weather the storm,i wouldn't think so but there is a lowes 2 mile away that didn't close there doors.if a man speaks in the forest,and there's not a woman to hear him,is he still wrong?
see that 84 is in Texas and Sutherlands has a bunch of stores in Ohio. Must have bought out another chain.
I remember seeing an 84 in Arlington Texas back around 1982."Put your creed in your deed." Emerson
"When asked if you can do something, tell'em "Why certainly I can", then get busy and find a way to do it." T. Roosevelt
rez,
That seems trival compared to the losses places like Home Depot, Lowes etc. have had.. I can go by those places and about the only cars in the parking lot sometimes are employees.. They used to require the employees park out by the road in those places leaving the spots close in for customers.. , now days the spots at the road are empty in a vain attempt to convince some that the stores are busier than they appear.