Three fabricators – representing the West, Midwest and East Coast – shared insightful thoughts with Stone World about current challenges they are facing, why they think these obstacles have surfaced and solutions they have come up with to combat them. The participants included:
• Blake Christensen, Valley View Granite based in Tremonton, UT, with multiple locations
• Steve McIntosh, Astonia Stone Artisans in Rogers, MN
• Buddy Ontra, Ontra Stone Concepts in Bridgeport, CT
Read what they had to say in the interview below:
SW: What are some of the biggest challenges you are facing today as a fabricator?
BC: Staffing needs/turnover because of extreme market whiplash seems to be the biggest challenge we currently face.
SM: Our biggest challenge is filling our production capacity. We have spent a lot of time on our process and making sure the correct staff were in place, and now the shop has a lot of idle time -- no fault of theirs.
BO: Workflow has slowed considerably. Silica safety.
SW: What are some reasons you think are causing these challenges?
BC: Market peaks and valleys are always expected, however, the beginning of 2024 seemed to be sluggish followed by strong upward trends. The roller coaster of interest rates, an election year and lingering conditions of Covid-19 seem to have all contributed to market confidence.
SM: The sales team at our shop has been very complacent with walk-ins and builders finding (stumbling into) us, and that is no longer good enough. Some of it is because of increased shop efficiency, and some of it has been a slower market in our area (Minneapolis suburbs).
BO: Higher interest rates are contributing. When the cost of borrowing rises from around three cents on the dollar to eight or nine cents, that is a considerable hike.
Silica safety has become a major health issue. Not just some or most, but ALL fabricators have the responsibility to protect our employees. If one does not know, then ask. Also, the slab suppliers can help educate. Some suppliers have really stepped up to raise awareness and contribute, not only fiscally, but with their resources and time. However, (as stated above) not just some or most, but ALL have to.
SW: What are some ways you look for solutions to these challenges?
BC: Training and career paths for everyone that provides a good “livable” wage enabling us to attract employees that align with our core values. We have recently utilized new “attracting” tools with our payroll processing/Human Resource (HR) company that utilizes powerful AI search parameters to filter and present qualified applicants.
We have followed a “Perfect PO” practice for a long time where a salesperson must have all the T’s crossed and I’s dotted to process their project. Something new that we are implementing and reinforcing with training is the “Perfect Pass-Off,” which would be what every job looks like before it is handed over to the next department. Some of these things are clerical and some are quality of craftmanship. It is all designed to track and measure how my work is impacting the next team: “What am I handing them?” or “Am I setting them up for success?”
Another key metric that we track is FTE/T$ or Full-Time Equivalent/Throughput Dollar. It has also been helpful to benchmark what this number should be with other businesses in the industry, as well as outside the industry. There are many great options now of industry groups that contribute to industry benchmarking.
SM: We have decided NOT to wait for politicians to fix this, but target market share that would be a fit for us. We have invested in online marketing, social media and quite a bit of outreach to designers in our area. Our vice president is in a women’s construction group locally, and that has been a phenomenal resource to our target client.
BO: I am fortunate to be an engaged member of the Natural Stone Institute (NSI). They have jumped in with both feet on the silica awareness and education. Any fabricator can reach out to the Institute. The cost of membership covers all the silica education and a lot more.
As far as workflow, there are many and few solutions. My industry niche is primarily higher-end single-family homes. Maybe we try to obtain a multi-family-apartment/condo sort of thing. Interest rates might come down. Borrowers may have to accept the cost of money at the current rates. Maybe “Get out and knock on doors” to acquire more trade customers. I prefer to be proactive rather than wait it out.
SW: Do you think these are issues that are affecting the industry as a whole?
BC: Yes, I do. I think getting the right people in the right seats rowing in the right direction is the challenge every business faces. Training and keeping them following proper procedures after being trained is vital. Success in the stone/countertop industry is heavily dependent on team members following the process perfectly.
SM: I do believe this is affecting the industry as a whole … seems like there is a lot of money sitting on the sideline. Still, I am not sure waiting for government or the Fed to fix interest rates is a good idea! Need to get out.
BO: Silica - yes. The slowdown may likely be regional.
SW: Looking back, do you think there was anything you could have done to avoid these challenges from the start?
BC: Setup training and career paths sooner. We now have published pay bands that correspond with the training required and tenure commitments.
Performance Review vs. Compensation Review. For years, we did not have this clearly defined. Most often when an employee comes asking for a review, what they are really asking for is a raise. We really had to put a spotlight on what is expected from our managers and make the mental disconnect that most employees have with “Review = Raise.” We had to define that framework for the frequency of performance reviews. We are striving to create a culture that promotes a compensation review as something that the employee initiates after they have met the training, tenure and testing for their next pay increase.
SM: Hindsight is 20/20, so looking back I would not let circumstances (bank rates, government policy, competitors, etc.) dictate our business model. Price appropriately. Purchase wisely, identify problems quickly, act decisively, sell, education, look for open avenues.
BO: I will be cliché -- hindsight is always 20/20. That said, many of us, not just fabricators, even the most successful, still live hand to mouth.
SW: Do you find that the challenges you face today are different than those you encountered when you first started out?
BC: Yes, definitely. As we have scaled our organization, the challenges always increase. We often use the analogy of a good athletic program vs. a good year. A good program takes normal athletes and creates exceptional results year after year because they are invested in the “program,” including off-season training and time into athletes at a very young age. A good program also helps the athletes keep their home/team life balanced knowing that great athletes (employees) will perform much better and more consistently if their home life is in order.
SM: I do not think the problems will ever be the same, since the people are changing. Hopefully for the better! There are obviously cycles, and we are trying to foresee what is next. There are a ton of people in the stone industry who have seen such a wide variety of conditions, and I am trying to learn from them as much as possible! Take advantage of the workshop events and get the “old dogs” talking.
BO: Well, I am 20 years older (smiley emoji). Also, my challenges today are much more expensive (shoulder shrug emoji).
