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We're very proud of the hard work and sacrifices all of you have made to make this 2011 a success in such a lousy building environment. We thank you! For Hearthstone, Inc., our shipping volume has been up 20% YTD and we're on pace to top 25% by the end of December. Thankfully, it doesn't take as many clients as it once did to break even or post a profit.
We've resisted hiring back additional staff, and instead extended lead-times for delivery. The summer and fall production surge will naturally spill into November/December. Our sales focus now is on 2012 clients----and especially those who can accept a winter delivery.
2011 has seen deliveries of Hearthstone log and timber frame homes FL, MI,
ID, OK, TX, KY, GA, NC, VA, SC, IN, CA, IL, OH, AR, MO, PA, NY, MS, MD, AL,
WI and TN. Most of these states also witnessed our crew's installation
talents, or "technical assistance" as needed.
Our construction company, Mountain Timber Structures continues to provide balance with maintenance, repair and construction services regionally in East Tennessee and Western North Carolina.
The product diversity in 2011 is as impressive as ever. The log homes we've shipped include the Bob Timberlake, Random, Traditional, Timberwright, Log-on-log, and Butt & Pass profiles. For timber frames, traditional mortise & tenon joinery and/or engineered connections with exposed/hidden steel are now commonplace. Primary homes have always been our focus. But this year, we've also done additions, churches, pavilions, entryways, commercial structures, outbuildings, insurance repair and some awesome barns!
Our material diversity has been difficult to control and inventory. Sizes and specifications aren't always known until the engineering and permit process is complete. Then we have a short window to special order, dry and prepare before delivery. To date, we've managed White Pine, Western Hemlock, Western Red Cedar, Douglas Fir, Red & White Oak, Yellow Pine, Antique Beams and barn wood, Glulams, Eastern Red Cedar, and Cypress.
Adding the borate pressure treatment process to White & Yellow Pine creates yet another dimension to manage. We wouldn't have it any other way!The two vacuum kilns have remained busy all year, with approximately 50% of our volume designed to be HeartDried. White Pine, Yellow Pine, Cypress and Cedar have been drying wonderfully and predictably. We've even made some progress drying Red Oak. To avoid the freezing issues with the RF Kiln again this winter, we've insulated the building and are seeking winter delivery clients who will accept dried materials before April 2012. Let us know if you have any prospects.
Wall SIPS (structural insulated panel systems) and spray foam insulation continue to challenge the traditional fiberglass exterior wall alternative. The built-up R-38 roof systems are still the Hearthstone norm, with additional R-49 required by most codes in climate zones (6) and (7). Blower door testing required by code still has spotty enforcement. As building "tightness" becomes the standard, our products, services and familiarity with these construction techniques will help us sell solutions.
Our traditional print advertising is almost non-existent. Internet
searching, trade shows and referral business has been our default strategy.
We continue to invest in professional photography so we can make the most
with the magazines and website(s). Our event calendar is referred to often
and needs continually updated with construction activities, AIA Training
seminars, home shows, open houses and business travel.
We always need tasty
homes to photograph. Send me your scouting pictures for consideration in
2012. All information can and will stay confidential upon request.
Financing continues to challenge all new home construction----unless the client has 100% down and their land paid for in full. Seriously, the small town banks that keep their loans in-house are the only real options for high quality new home construction. Otherwise, the appraised value and secondary market regulations will dictate 30% to 40% down payment AND land paid for in full.
Our client profile hasn't changed that much in these economic times. There are just fewer of them. There are also fewer competitors. At Hearthstone, we're still a part of an integral "team" that helps create something special. This team often makes up of an owner, a general contractor, an architect/designer, and several specialty talents including kitchen, lighting, HVAC, stonework, landscaping and interior design. This owner almost always has a special piece of property and a desire to avoid screwing it up! They enjoy the challenge and thrill of the "creation process". They 've often built before and won't settle for anything average. Quality and uniqueness take precedent over "flash". They value their time and a pain free transaction. Why would anyone want to build otherwise? In fact, I dare say that Hearthstone has a higher percentage of repeat client business than anyone else in the industry.
So if you know any clients who fit this stereotype and who are enjoying
their last 6000 sunrises, let us know how we can help. We welcome your
feedback, support and visit to Dandridge anytime.
CALL US AT (740) 453-6542 MON – SAT, 8 a.m. – 9 p.m. Eastern | FAQ’s
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