LP backs off-site framing firm
In the latest example of the industry’s labor shortage resulting in labor solutions, LP Building Products has invested $45 million in Entekra, a design, engineering and manufacturing company that provides off-site framing for both residential and commercial construction.
Entekra operates a single manufacturing plant in Ripon, Calif. and provides a fully integrated off-site solution, which integrates concept, design and engineering with off-site manufacturing and on-site assembly to deliver higher quality structures.
The company’s system is designed to streamline the process of assembling new builds – reducing construction time, waste and dependency on skilled labor, resulting in faster build cycles and increased production volume for builders.
“This investment marks a logical extension of our strategy to position LP as a leading building solutions company,” LP CEO Brad Southern said. “The overriding constraint of supply in the housing industry today is a shortage of labor, and combined with rising construction costs, underscores the need for more efficient and innovative building techniques.”
Southern said the partnership will combine Entekra’s system with LP’s market access to regional and national builders.
The investment will also allow LP to leverage its large-scale manufacturing capabilities and invest capital into Entekra “to scale the business,” according to LP.
Earlier today LP reported first quarter 2018 sales of $691 million, a 13% increase from first quarter 2017 net sales of $611 million. The Nashville, Tenn.-based building products manufacturer also reported a first quarter net income of $91 million – a 65% jump from a net income of $55 million for the same period a year ago.
Entekra operates a single manufacturing plant in Ripon, Calif. and provides a fully integrated off-site solution, which integrates concept, design and engineering with off-site manufacturing and on-site assembly to deliver higher quality structures.
The company’s system is designed to streamline the process of assembling new builds – reducing construction time, waste and dependency on skilled labor, resulting in faster build cycles and increased production volume for builders.
“This investment marks a logical extension of our strategy to position LP as a leading building solutions company,” LP CEO Brad Southern said. “The overriding constraint of supply in the housing industry today is a shortage of labor, and combined with rising construction costs, underscores the need for more efficient and innovative building techniques.”
Southern said the partnership will combine Entekra’s system with LP’s market access to regional and national builders.
The investment will also allow LP to leverage its large-scale manufacturing capabilities and invest capital into Entekra “to scale the business,” according to LP.
Earlier today LP reported first quarter 2018 sales of $691 million, a 13% increase from first quarter 2017 net sales of $611 million. The Nashville, Tenn.-based building products manufacturer also reported a first quarter net income of $91 million – a 65% jump from a net income of $55 million for the same period a year ago.