September 5, 2008

BSC Chair, Gary Grossman

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Diversifying in a Downturn: Systems Capturing Commerical Market
In New York: Prefab Houses Seen as Works of Art
Green Feature: Panelized Building Systems
Ten Questions: How Systems Worked for this Custom Builder
From the Design Table: Featured Floor Plan
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  Ten Questions: How Systems Worked for this Custom Builder

For the first installment of 10 questions, the Systems-Built Advantage talked with Eagle CDI, Inc. President, and President of the BSC's Systems Builders Council, Dan Mitchell.

1. SBA: Tell me about your company

DM: Eagle CDI, Inc. specializes in top quality, large-scale, custom Log Homes for discriminating owners. We have developed a wide range of construction techniques and skills for log structures that produce outstanding visual and practical results. We also offer residential and commercial custom contracting, land developing, and cabin rental development that includes site selection, project development, and complete custom log home construction.

2. SBA: How did you get started in the home building industry?

DM: When my family relocated to Seymour, Tenn., we wanted a new home. But I couldn’t find a contractor to build it. So, I built it myself. Then my neighbor wanted me to build him one. So I got my contractor’s license in 1994 and started building residential dwellings.

3. SBA: Why the switch to log homes?

DM: One time a client asked me to build him a log home. In that experience, I discovered my passion for building with wood. I started building a variety of log structures using milled logs from manufacturers. Once, I built a home from scratch using trees felled on the jobsite. The log homes industry gave me my niche building high-end custom log homes.

4. SBA: The log homes industry is a small piece of the overall housing market. Why did you chose to focus only on building with log systems?

DM: We do build single family homes, town homes, and small commercial projects, using systems-built technologies, (modular, panelized, and concrete). However, log homes have become truly our passion. The log structures that we build for our clients are not just homes or places to live; they are dream homes and lifestyles. It is very rewarding.

5. SBA: Has it paid off?

DM: The company has done well from a monetary view, but the true payoff has been seeing our costumers achieve their dream home. The life-long relationships that we have developed with our customers has been great. Some of my closest friends and associates were former clients.

6. SBA: How has the current housing slump affected your business?

DM: While we have seen a slow down in the log home market, most of our clients are building second homes or retirement homes. It is not necessary for them start their project right away.  They still intend to build, it's their dream, but they have the ability to wait and let the economy catch back up.

7. SBA: Has the log systems industry been shielded from the overall housing industry struggles?

DM: No, I don’t believe so. The down turn in the housing industry has effected all types of construction. However, I do believe that the log home industry will bounce back the quickest. Most future log home owners are dreaming of their home.  They're just putting it on hold temporarily. Plus, there are not as many log homes sitting out there that are unsold, so the inventory is low.

8. SBA: What's the best thing a builder can do to push through the current down market?

DM: Stay the course. Cut back unnecessary expenditures. Get educated on green building techniques. Rekindle relationships with former customers — they can be great referrals and they might have some small jobs that they need done. The market will turn around and the ones that do the right thing and survive will come out the other side in perfect position to capitalize on the flood of homes that will need to be built.

9. SBA: Where do you see the market share of log homes going in the future?

DM: The market share for log homes will only increase. With the huge push for green building in the market place, more and more customers will be wanting green products. Nothing is greener than a log home.

10. SBA: What advice do you have for a builder looking to diversify into the high-end log home building business?

DM: The best advice is for them to get educated about the industry through the System Builders Council and the Log Home Council. A local log home manufacturer can help, too. Because log homes are truly a unique type of construction, they should invest in a consultant or mentor that has a high level of experience to get them through the first couple of projects. This will save them a tremendous amount of stress and heartache, not to mention money.

SBA: Dan, thank you for your time.

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