National Contracts are a big part of how CBUSA helps residential construction companies strengthen their business, but local commodity purchasing through our Committed Purchasing Programs are just as important to your bottom line.
What are CBUSA Committed Purchasing Programs?
CBUSA Builder Members in each chapter across the nation are empowered to enter projections for their building supply needs for a predetermined time period — from drywall to lumber to roofing material and more.
Approved local suppliers then access the consolidated list of needed materials and return a unit price bid on the entire material list.
Following an analysis of the bids, CBUSA and its members award the bid to the supplier providing the best overall value proposition.
So why does this matter now?
You have probably seen significant increases in lumber pricing over the last few weeks.
The latest reports from Random Lengths show us that we are already back above the previous 2020 highs in both the panel composite and stud composite, with no indication of it slowing down.
If you’re not familiar with Random Lengths, they provide real-time information twice a week that helps builders stay on top of the lumber industry.
They are known for being the most widely circulated and respected source of information for the wood products industry providing unbiased, consistent, and timely reports of market activity, as well as prices, related trends, issues, and analyses.
We understand that our builders don’t always have the bandwidth to dig into the detailed data while running successful custom and independent homebuilding companies. Our experienced team of CBUSA lumber and building industry specialists analyze and apply the learnings to help support our CBUSA Members across the nation.
The current COVID effect has mills at 50% production while demand is at an all-time high.
CBUSA’s Committed Purchase Program locks pricing for extended time periods during these significant increases in core phases of construction like lumber, roofing, siding, drywall, EWP, etc.
That makes CBUSA Members taking advantage of our Committed Purchasing lumber buys able to avoid the day-today price fluctuation of the lumber market and build their homes for less.
Have you planned your buying needs for your home starts through the rest of 2020?
It might be a good time to contact your local CBUSA Chapter and see what Committed Purchasing Programs they have going on. It might not be too late to take advantage of them!
For 15 years we have been helping business owners shift how they run their residential construction companies by identifying where they can streamline and create cost efficiencies through Committed Purchasing Programs within their local CBUSA Chapters.
It’s a fact that CBUSA Members leveraging Committed Purchase Programs are getting lower prices on key commodity products with longer price locks, while receiving the best possible products and local service you can imagine.
If you’re a CBUSA Member and not taking advantage of your Chapter’s Committed Purchase Programs, reach out to your CBUSA Network Representative to learn how you can get involved.
Whether it’s lumber or another commodity item you could be saving money on, all you need to do is join the Group Buy. And don’t wait – we may be able to help you join the buy for the remainder of 2020!
For newer chapters that haven’t been able to mobilize group buying yet, the time is now.
We have built a company around helping builders work together to try and help them do better business practices. Once your chapter decides to commit to purchasing commodities together, you not only have one less thing to worry about in this volatile market, but you have savings and rebates to look forward to.
For more information on how to take advantage of Committed Purchase Programs for Q3 and Q4, contact your local Network Representative today. If you want to learn more about how our Network can help you, take a few minutes to fill out our inquiry form and we will be in touch soon!
P.s. If you missed the live webinar Leadership Series in April, we pulled together a highlight video with Wendy Minichiello, Director of North American Sales at Weyerhaeuser. Wendy speaks directly to how lumber in the supply chain impacts our builder community.