Issue link: http://digital.canadawide.com/i/177297
Architectural Woodwork 2012 Successful firms cut costs while meeting evolving customer expectations in this challenging sector by Stefan Dubowski F aced with smaller jobs, tighter schedules and demanding customers, companies in the architectural woodworking sector must operate smarter to survive. That means reducing waste, making strategic hiring choices and investing in better business processes. It's no secret that the industry has struggled in the last few years. Blame the economic downturn that began in 2008. Consider also shifting design trends: customers want clean, modern interiors, instead of elaborate colonial-style woodwork. Companies that used to pride themselves on crafting intricate detailing have fewer opportunities to showcase the capabilities they've honed through years of practice. Many firms do continue to thrive. Although it hasn't been easy, successful companies have enhanced internal operations, brought in new key personnel and whittled costs for healthier profit margins. Towne Millwork Ltd. in Abbotsford, B.C., has taken a collaborative approach to improving its business, bringing employees together to consider options when the recession hit. "We spent quite a bit of time with our key shop and office personnel and said, 'We have to get better and faster,'" recalls Greg Hesketh, company president. "We've evolved to be more competitive." One improvement was streamlining the shop. Towne standardized its drilling and cutting, doing away with having to reconsider where holes belong and where cuts should be made on a project-by-project basis. Now shop employees spend less time worrying about where to cut and more time making cuts, reducing production time. Towne also standardized on materials. Unless the customer calls for something different, the company has chosen to work with a single kind of MDF; an approach that simplifies and speeds up supply orders. Hesketh points out that the industry faces a new reality: success relies on a shop's ability to string together a number of small jobs instead of one or two large projects. Yet each new job introduces overhead costs, and the more jobs a company has, the more overArchitectural Woodwork p46-47ArchWoodwork.indd 47 head it incurs. This situation makes efficiency all the more important. To that end, Towne has trained more of its staff members to operate the AutoCAD software it uses to design products. "If a customer says a project has to be out in a week and a half but our engineers are booked, we can still serve that customer," Hesketh says. "We're not stuck with little pockets of knowledge. Everybody can help do everybody else's job." So what has Towne worked on lately? The company recently completed a five-storey office building for HSBC in Vancouver. The project included upholstery, wood ceilings and solid surfaces incorporating reclaimed wood. As for design trends, the latest incorporate new materials such as coated metals and colour-infused acrylics. Towne embraces these novel supplies. "You need to be fluent in all sorts of materials and not be afraid to say, 'Yes, we can do that,'" Hesketh says. The team at Continental Cabinet Company Inc. in London, Ontario, also has a can-do attitude thanks in part to some of the changes the company made to work more efficiently. "We've done a little bit of restructuring, putting some key personnel in places we didn't have before," says Bruce Donald, projects manager and chief estimator. Continental hired two project managers whose jobs focus on ensuring that materials are ordered and ready to use before projects begin, that jobs start and finish on time, and that product goes out the door with all requisite paperwork. With the project managers on board, Donald spends less time co-ordinating work in the shop and more time building the business. Along with new hires, Continental is developing software that tracks projects, enabling the company to analyze costs. If a job goes over budget, for instance, the firm can pinpoint the problem. Was the estimate incorrect? Were expensive errors made during production? With those insights, Continental can correct the issues and improve its methods. "I think our customers will notice we're more efficient," Donald says. Left: The Transportation Management Centre in Coquitlam, BC, features both structural and architectural woodwork. In addition to the glulam beams, wood has also been used to support aluminum sunshades. Photo: Derek Lepper. Right: Lobby of Canada Education Park at the University of the Fraser Valley, Chilliwack, BC. Photo: Ed White Photography He has noticed that clients are asking Continental to take on more work. "Items that would never have been on our contracts before are creeping in, like support steel, glass and glazing. If it's connected to our millwork, people want us to do it – they want a complete package. It's easier for them to deal with one subtrade than two or three different companies." While the woodworking sector in general has to contend with smaller, less elaborate projects, Continental just wrapped up its largest project ever: a new courthouse in Waterloo, Ontario. The company built all the wood furniture and features, including benches and wall panels. Asked if he's seen any changes in terms of customers, Donald says he has noticed that the private-public partnership projects he has worked on are of a different breed. "They are more complex. As a subcontractor, we're more a part of the team to get the job done. We're relied on to provide information. Will this work? Will it fit into the budget? We have to redesign things to suit the budget." Richard Reynolds, owner of R&R Woodwork Inc. in Mississauga, is doing well with a different kind of customer: condo developers. He specializes in sales centres and lobbies designed to entice new buyers. He also lands jobs in the hospitality industry. Recently, R&R finished work on La Société Bistro, a Toronto restaurant offering Parisian cuisine. Reynolds brought to life the Munge Leung design in a rich African mahogany. Meanwhile, R&R recently created a 700-square-foot walk-in closet in a luxury residence, sporting plenty of cabinetry. "I have found having the mix of residential and commercial is good," Reynolds says. "I'm not too dependent on one area or the other." He does depend, however, on a keen business sense. When the recession began, R&R left its 20,000-squarefoot shop and moved into a 13,000-square-foot space to save money. That decision enabled the company to continue making a profit, even though revenues were down. ■ december 2012 /47 11/19/12 4:18 PM