3. Manage Your Partners “Our backlogs are caused by the phone ringing and having no horses in the field,” summarizes Tenhulzen, who claims that a lack of labor is backing up his production. Other remodelers, too, cite labor shortages and claim manufacturers send orders partially filled or late because they are overwhelmed. But many remodelers actually credit their strategic partners for helping them through thick backlogs.
Ettel says his longevity in the business keeps subs on his jobsites. “We have leverage with a main group of subs, but we have to constantly remind them not to chase new business when we’ve been around for 17 years,” he says.
Kelly asks his trade contractors to commit to a schedule early in the process. “Before we even start, purchase orders have been sent out and accepted by all the trades. We’ve been working with our trades for a long time. Payment on a timely basis creates loyalty; if they bill on Tuesday, they get paid on Friday.”
Kelly also feels strongly about educating his subs to help them run their businesses better because it ultimately affects his jobs. Recently, a painting contractor fell off schedule because he was taking on too much work. Kelly’s production manager helped him use technology to better schedule projects.
However well you plan with manufacturers and trades, things can still run amok. Swartz notes that remodelers must be ready to solve problems. “Certain things are just out of our control,” he says. “If a manufacturer says he can’t get a product in four weeks, and it means sending a van over Super Bowl weekend to New York for a whirlpool tub, that’s what we’ll do.”
Cati O’Keefe is a freelance writer based in Cincinnati.