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Homebuilder Opportunity
Have you gotten the most out of the
housing downturn?
(some might say, CRISIS?)
Can you see your way to making 10% pre-tax
margins?
(are you making them now?)
Are you positioned to make the most of an eventual recovery?
(given current inventory levels, it won’t take much of one to have a significant impact on the industry)
Have you used the downturn to invest in your people, processes
and systems?
(“hunkering down” doesn’t count as an investment strategy)
Can you see your way to becoming the lowest cost customer to each of your trade partners?
(are you there already?)
What if your chief competitor could
answer YES to each of the preceding questions sometime in the next
six months?
What would happen to your business?
On the flip side . . .
. . . what kinds of opportunities would
you have
if you were making 10% pre-tax,
if the time your people spend
firefighting was a fraction of what it is
today,
and instead, they were able to focus almost strictly on work that
adds value in the eyes of your customers?
Can’t say for sure, but I think it would look
something like
Breakout
Perform
ance
Industry / Market Dominance
Competitive Advantage
Preium Share Price
Extraordinary
ROI
Lowest Total Cost
“Customer of C
hoice”
to Trade Partners“Superior Value” to Customers
“Employer of Choice” to Talent
I mean, we could be talking about the likes
of . . .
vs.
vs.
vs.
or, finally . . .
vs.
These companies reinvented their
competitive space and were able to answer YES! to at least a few
of the preceding questions.
Let’s look closer at two companies that can
answer YES! across the board
(and have been able to do so for quite
some time)
What about the company that invented
LEAN?
Toyota
0%
900%
1,800%
2,700%
3,600%
4,500%
5,400%
6,300%
7,200%
8,100%
9,000%
Dec-72 Dec-75 Dec-78 Dec-81 Dec-84 Dec-87 Dec-90 Dec-93 Dec-96 Dec-99 Dec-02 Dec-05 Dec-08 Dec-11
TM F .SPX
Over the past 40 years, Toyota share price has outperformed Ford by nearly 17X!
And, one of America’s most successful manufacturers
0%
100%
200%
300%
400%
500%
600%
700%
800%
900%
1,000%
97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12
DHR GE SI MMM JMHLY TYC PHG .SPX
Over the past 15 years, Danaher stock has outperformed its peers by 764% and the S&P by 800%!
But wait, there’s more. . .
0%
3,000%
6,000%
9,000%
12,000%
15,000%
18,000%
21,000%
24,000%
Feb-85 Feb-87 Feb-89 Feb-91 Feb-93 Feb-95 Feb-97 Feb-99 Feb-01 Feb-03 Feb-05 Feb-07 Feb-09 Feb-11
DHR GE SI MMM TYC PHG .SPX
Since the inception of its Lean efforts in the mid-80’s, Danaher’s stock has outperformed
that of its peer group and the S&P by more than 21,000%!
So what does it mean?
Many game-changing opportunities remain in
homebuilding
(Even NVR, the Wall St. darling of the industry, doesn’t have an
insurmountable advantage)
Bottom Line
Differentiation will be LESS about WHAT we do and MORE about
HOW we do it
Would it be worth 20 minutes of your time to
learn more?
Contact Bryan Bennett
972.672.3053