In this review we'll examine how Demountable trucks are linked to trends featured in a recent DWM - Door and Window Market Article by Drew Vass.
The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index’s (HMI) three major indices posted gains in May, including current and expected sales which are both up over 50 meaning more builders view conditions as good than poor.
This confidence is paralleled by a growing demand for demountable swap-body delivery systems popular with many home builders and suppliers. They depend on these specialized trucks to meet demand in times of growth by making more deliveries per day with less equipment.
According to Gerry Hazzard, National Account Executive at Demountable Concepts, “We watch the indicators closely and have added robotic welders, an upgraded laser cutter, and most importantly technicians. We’re ready to manufacture demountable systems faster to meet the growing demands of the new home market.”
“Lack of existing inventory continues to drive buyers to new construction,” says NAHB chief economist Robert Dietz. But since new homes are perceived as more expensive than existing homes, rising interest rates have become a challenge. Rates have more than doubled from 2021 levels forcing builders to implement incentives to stimulate the market. The average price reduction incentive remains at 6% with 54% of builders offering some type of incentive to purchase as of May 2023.
Builders and suppliers are learning their investment in swap-bodies is helping them recoup some of the cost of these incentives. Along with more deliveries per day swap-body trucks eliminate costly overtime since truck bodies can be loaded independent of the truck during regular business hours, instead of rushing to load at the beginning and end of each shift. Truck turn times are reduced from a few hours to 10 minutes. The same amount of work can be accomplished with fewer trucks and drivers, reducing costs and assisting with the ongoing labor shortage. With swap-bodies it’s possible to load from the assembly line directly into the truck, making the warehouse more efficient by eliminating double-handling and reducing damage costs.
Nobody can predict the future but as of the writing of this article review the Federal Reserve’s analysts are saying, “our outlook remains largely unchanged, including our expectation of a modest recession beginning in the second half of this year.”
Homebuilders and suppliers equipped with swap-body trucks are finding they can accommodate growth now, and if necessary rapidly scale down delivery operations in the future. Swap bodies allow companies to “right-size” all the way down to one truck and two bodies by reducing the amount of fleet equipment on the books. Even at the minimum level of deployment swap-bodies drive efficiency and operational savings throughout the operation.
The Industry Standard for Building Supply Delivery
Homebuilders and building supply companies are adapting to fluctuating markets with scalable demountable swap-body delivery trucks. Essential for meeting demand in the currently thriving housing market, Demountable trucks increase productivity, cut turnaround time, and reduce operating costs. During downturns Swap Bodies can be downsized for a more cost-appropriate operation. Demountable truck systems are valuable assets in the home building industry which has contributed to them becoming the industry standard for delivery.