Check out our November newsletter!
OWNER -TO- OWNER www.franklinbuildingsupply.com | 208-514-2200 | 9222 W. Barnes Dr., Boise, ID 83709 NOVEMBER 2022
3 THINGS THAT MEAN WE’RE IN A GOOD SPOT
As we enter the last quarter of the calendar year, the broader U.S. and global economies are facing stiff headwinds related to central banks’ efforts to curb inflation and ongoing global conflicts. With housing being about 15% of the overall U.S. economy, cooling down housing is among the highest priorities of the Fed. Few sectors of the economy have seen a steeper price appreciation than housing, and it’s been clear for a couple of years now that the steep appreciation was not sustainable or healthy in the long term. We needed home prices, both new and existing, to stop rising and come down off record highs. With mortgage rates above 6%, demand for new and existing housing has cooled substantially, resulting in downward pressure on prices. It will take builders and sellers many months to work through the impact of these dramatic changes from record activity and prices just last spring. What I’d highlight during this cycle are a few things that I think mean our industry and business are in a good position for the years ahead once we get on the other side of these turbulent months. • First, mortgages across the U.S. today are extremely healthy in terms of high equity and low foreclosure risk. Although there is downward pressure on home prices today, very few mortgages are at risk, which would create broader economic problems that have been typical in prior cycles. • Second, this cycle is unique in the modern economic era because the cause for the slowdown in housing construction is not an oversupply of new homes but rising mortgage rates due to the Fed fighting inflation. This is important because every other housing cycle in modern American history was preceded by the industry overbuilding. The U.S. is still significantly undersupplied on housing units, but right now, all those buyers cannot afford to purchase because the combination of high mortgage rates and high home prices keep them priced out. • Third, not all markets are equal. In markets with higher ratios of presolds (e.g., McCall and Bellevue), building activity is as high as ever. As other markets shift to a healthier balance of presolds and specs and more favorable pricing, we are seeing building activity pick up. We also have a strong economic base in Idaho compared to decades past and believe demand will remain high for housing as jobs and other economic factors remain attractive in Idaho.
The best organizations perform well,
whether they have economic tailwinds or headwinds. Let’s continue to focus
on charting our own destiny, focusing on the things we can more
directly control and influence as employee-owners. We can be successful no matter the economic
climate or challenges by staying safe (safe), selflessly working together for everyone’s benefit (guide), getting better every day by learning and solving problems (strive), and obsessing over delivering an exceptional customer experience (wow). As we control our expenses (care for materials, facilities, etc.), stay safe (every accident hurts a person and our profitability), and focus on good sales opportunities, we have the opportunity in 2022 to finish with a net profit well above 8%. This is important because a 2022 net profit above 8% will trigger our new profit share incentive for nearly all employee- owners (paid out to qualifying employees in February 2023). Everyone influences whether we achieve this goal and makes this shared financial reward a reality in 2022. Most people and organizations speed up and slow down related to the pace of what’s happening around them. But we’re not most people or organizations. We set the pace. We stretch to reach our potential. We’re Franklin Building Supply, and we’re 100% employee- owned. Let’s leverage that reality to our full advantage moving forward and let everyone else be fatigued and dismayed by our relentless pace and performance.
–Levi Smith PRESIDENT
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COOLER MORNINGS AND COLORFUL LEAVES CAN ONLY MEAN ONE THING …
Open Enrollment Season! As a reminder, Open Enrollment is your annual opportunity to review your medical, dental, vision, disability, life , and FSA elections and make any desired changes. Even if you are not planning to make changes this year, we strongly encourage you to review the details of your coverage and any dependent information. • Please note that our enrollment window will be a short one week again this year (November 12-19) so be sure you are ready! • All elections will be made by you directly through your Paylocity account. • Any modifications you make to coverage will go into effect on January 1, 2023 . To inform your election decisions, we are working hard on the 2023 Benefits Guide and will be distributing paper and electronic copies by early November. We are happy to announce that no major plan changes are anticipated this year. With inflationary pressures negatively impacting our budgets, we are doing our best to keep the employee premium burden as low as possible. HIGH FIVES FOR THE MONTH Easy From: Ben Thomas, McCall To: Adam Palmer and Tyler Krueger Adam Palmer and Tyler Krueger recently stayed late to pick a lot of culled lumber off the ground. This is a safety hazard, and we try to get to it daily. These guys showed some resolve by staying late to make sure it got done, and we were back to a clean yard the next morning. Nice job, guys — way to keep it safe! High five!
As a reminder to all co-owners, we are self-insured so be sure you are doing your part to contain our plan costs by making healthy life choices ,
completing your preventative annual physical exams , and using cost- effective care providers like MDLive Telehealth (1-888-725-3097) when appropriate. Finally, we design our plan with the intent to support and enhance the best quality of life available for each member of our team and their families. Mental, physical, emotional, and spiritual well-being should be a top priority in our lives at work and in our personal lives. Thanks for everything you do to support these tenets for yourself, your family, and your team here at Franklin! *Don’t forget that all plan participants (including spouses) that complete an annual preventative exam in 2022 will be entered into our drawing to win one of four $2,500.00 prizes ! As always, these exams are provided at no charge if in-network. No need to self-report, just be sure your physician includes wellness or preventive code to your visit, so we receive the notification of completion. manufacturing to install and being an ever-moving target), Mike is always striving and finding ways to make things happen and take care of the customer. From in-field modifications to last-minute fixes to wrap-up, Mike is constantly striving to be the preferred supplier for our builders and to maintain the best relationship possible. Thanks, Mike!
Strive From: Jared Tolomei, McCall To: Anthony Henry, McCall
A customer, Christian Wann, called in with praise for Anthony Henry. The customer expressed appreciation for Anthony’s understanding and customer-friendly service on a recent delivery. Great job representing FBS so well, Anthony. Get it!
Wow From: Trent McKnight, Boise Doorshop To: Boise Doorshop
Safe From: Art Hazelbush, Bellevue To: Lydia Cueller, Bellevue
I want to give a big “High Five” to our production team at the Boise Doorshop. With things slowing down in the Treasure Valley, we have had some time to look over everything we do and fix what bothers us. Every day our team is working on current processes and how to improve them, eliminating or reducing waste and minimizing unnecessary expenses. What really stands out to me is that they all are taking ownership of this time we have so that when this market gets going again, we will be even better than before. Thank you, production!
The little things go a long way! A customer reached out about the awesome experience he had with Franklin. Inside sales associate, Lydia Cueller, helped him with a small deck project. He appreciated how she helped him through the whole process with kindness and attention to detail. Like many cash customers, they sometimes don’t have the proper tools to do what they want. This could have been dismissed by Lydia, but it wasn’t. He needed the use of a planer for one board. She got on the phone to her dad immediately, and he arranged for her brother to drop by his house and assist him — at no charge. He was blown away by not only her kindness but the kindness of her family as well. Well done, Lydia
Guide From: Dale Hansen, Boise To: Mike Jones, Boise Cabinet Shop
I wanted to give Mike Jones on the cabinet install crew a high five. With everything happening around the cabinet department (from
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EMPLOYEE-OWNERS GIVE BACK TO COMMUNITY
When we take a moment to look around us, it is clear we have much for which we should be thankful. Our families come first, of course — those who enrich our lives. Then we have our jobs, working with friends at a place where we have the rare opportunity to be an employee-owner. November is the perfect month to give thanks. We invite you to spend time this month appreciating other people in your life, whether they are at home, work, church, in your fantasy football league, or any part of your life. Make an effort to thank your people in November. This month, we will be sharing our bounty as a company with our communities. Instead of giving each other turkeys, as we did last year, the EO Committee wants each FBS location to use that money to benefit community members who need help. It will be up to each location to decide where their funds will be used. If you have ideas, speak up and get your voice into the discussion. You may even get a chance to donate to the cause and make the impact on your community choice even better.
DECEMBER BIRTHDAYS
LOCATION - EMPLOYEE - YEARS DECEMBER ANNIVERSARIES
Allen Johns Jr. Steve Cloyd Scott Ranstrom
Ian Beane Efrain Rangel Gutierrez Brandyn Williams Nicholas Fox Josh Scott
1 1 2 2 2 2 3 3 3 4 4 5 6 6 8 8 8 9
16 17 17 17 18 18 20 20 20 21 22 22 23 24 24 24 25 26 26 26 27 27 28 28 28 30 31
Boise Supply Sawtooth Door Pocatello Twin Falls Corporate Caldwell Jerome Boise McCall Boise Supply Bellevue Boise Truss Jerome
Justin Brown Dixie Garrett Rob Chandler Tracy Hansen Kent Jobe Shane Ellis Curtis Hansen Mike Taylor Matt Farnworth
23 14 14
Boise Corporate Fruitland Fruitland
Lauro Vazquez Lily Sheridan Michael White Zachary Downer Judy Dudley Juan Sanez Ashly Sisco Richard Belmontez
3 3 3 3 3 3 2 2 2 1 1 1 1 1 1 1
Kellen Palmer Stan Buscher Michae Mosqueda l Bart Hutcheson Wayne Luker Makenna Cooper Miguel Rincon Mike Taylor Jakob Jacaway
Amber Iverson Alex Rodriguez Heather Hill Aaron Branstetter Rick Runyon Dustyn Casady
9 8 7 7 7 6 6 5 5 5 5 4 4 4
Sawtooth Door Jerome Truss Boise
Victor Elias Bryce Luker
Russ Hottel Jeff Thomas Stevie Brinnon Moe Matys Mo Martinez Peter Moore Javan Stansell
Jerome McCall Pocatello Boise McCall
Manuel Gomez Brandon Daigle Mickel Murphey Eric Mai Tyler Krueger Lana Bryan KC Croner Schuess Schuessler Willy Cowan Nate Lish Bob Davies Brayden Danner Eric Grant Austin Rydalch
Kory Kautz Wyatt Lish
Marcus Hardy Daniel Midby Christopher Morgan Tim Morrell
Shiloh Page Arlen Main JJ Johnson Clinton Hawks Kristopher Harvey Andrew Block
10 10 13 13 13 14 14 15 15
Samantha Wallworth Juan Carlos Rodriguez Vidal Gil
Caldwell Caldwell Boise Supply Pocatello
Boise Truss Boise Truss Boise Boise Truss
Michael Zimmer Adam Harfmann Steven Morgan Miguel Heredia
Jay Tegethoff Darren Calder Ethan Johnson Miguel Heredia Freddy Real
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PRST STD US POSTAGE PAID BOISE, ID PERMIT 411
www.franklinbuildingsupply.com 9222 W. Barnes Dr. Boise, ID 83709
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Leveraging Our Reality to Its Full Advantage
Update Your Benefits
High Fives for the Month
Employee-Owners Give Back to Community
December Birthdays and Anniversaries
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Spotlight on Amanda
SPOTLIGHT ON AMANDA JAMES Our Team Members Are the Secret Sauce to Franklin Building Supply We can’t say it enough — our team members are the heart of Franklin Building Supply. They make sure that our customers are taken care of and keep our operations streamlined, and they are the face of the company. Amanda has been with us for two years now and models outstanding employee ownership, hard work, teamwork, and dedication. As a controller at the Jaguar Corporate Office, much of her work takes place behind the scenes, and we want to be sure to recognize the impact she makes on Franklin Building Supply. For Amanda, her favorite part of the job is the numbers. Most of her day is consumed with calculations, databases, and spreadsheets. “Seriously, what could be better?” she tells us. “I also get to work with some pretty awesome people, but it’s the numbers that get me out of bed in the morning.” However, Amanda’s favorite part of the job is also the most challenging, but being challenged is a good thing, too. “There is a lot of data every single day, and it comes in many forms,” Amanda says. “This keeps me on my toes and forces me to continuously work on new ways to present the information.”
Working LEAN in my department is extremely important. We are constantly looking for ways to improve efficiencies both at the corporate office and out at the locations. Management leans on us to produce information so that they can see what is working, what is not, and where our weaknesses lie. The faster we can provide that information back to management, the faster they can react and adjust. Outside of her busy day at the office, Amanda is family oriented. She enjoys spending time with her husband and two dogs and going outdoors whenever possible. Weather permitting, she can be found hiking, camping, biking, skiing, or enjoying a serene river somewhere. Amanda, during the season of gratitude and every single day, we are grateful for your positive attitude, exceptional work ethic, talent, and love of numbers. We appreciate you!
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