Two of the nation's largest dealers, BMHC and 84 Lumber, continued to show the effects of the dwindling market in revealing they are shedding locations and employees.
Building Materials Holding Corp. (BMHC), America's fifth-largest lumber and building materials dealer, announced it will close its operations in northern Nevada and shut facilities in Oregon, California, Texas, Colorado, and Arizona. The decision affects roughly 260 workers.
The northern Nevada operations include facilities in Reno and Sparks. In Oregon, BMHC will close an operation in Sherwood and serve the greater Portland market from nearby Vancouver, Wash. In California, BMHC will consolidate the operations at its Marysville facility into its Modesto yard. "Other operational consolidations" will take place in Texas, Colorado, and Arizona, BMHC's announcement said. It didn't elaborate. On Jan. 1, it officially closed its San Francisco headquarters and changed its corporate headquarters address to Boise, Idaho.
On Nov. 6, BMHC reported a $45.2 million net loss for the third quarter as sales fell 39% to $364 million. That was a swing from the net income of $4.2 million reported in last year's third quarter, when sales totaled $594 million. During 2008, the company merged its SelectBuild and BMC West units.
Meanwhile, 84 Lumber announced that it closed 11 more yards and a component, effective Jan. 11. The decision affects about 125 employees.
Closings include stores in Redmond, Ore., and McFarland, Wis., with 84 Lumber effectively exiting both those markets and states. About six months ago, 84 Lumber also closed a component plant in McFarland.
Other closings include: Stockertown, Pa., which will be consolidated into a store in Allentown, Pa.; Massillon, Ohio, which will be consolidated into a store in Macedonia, Ohio; Georgetown, Del., which will be consolidated into a store in Milford, Del.; Savannah, Ga., which will be consolidated into a Beaufort, S.C. store. Closings in Lafayette, Ind., and Washington Courthouse, Ohio, are complete exits from those markets. In the Denver market, 84 closed its Henderson, Colo., store and truss plant, leaving the dealer with just one location in the state, in Grand Junction.
Since Jan. 1, the company also cut 60 more positions at its corporate headquarters in Eighty Four, Pa. About 350 employees now work at the location.
The latest round of job cuts is "across the board," Jeff Nobers, vice president of marketing and corporate communications, told ProSales. "We are still operating in the top 150 markets or better in the country. The bottom line is we not going to close a store if it's making money. These are operations that were not profitable."
84 Lumber requires a minimum of 3,000 housing starts within a 25-mile radius of a store location. Before the latest round of closings, 84 Lumber disclosed that as of Dec. 15, it had also closed five more yards and two component plants and cut 28 positions at its headquarters.
In the past two and a half years, 84 Lumber has closed 180 locations and 3,200 positions. After the latest round, 84 Lumber operates 319 locations and six component plants in 35 markets. It ranked third on the 2008 ProSales 100 with 2007 total sales of $3.1 billion and 434 stores as of Dec. 31, 2007.