The advantages of buying cut to size parts (“dimension” or “components”) are widely recognized. A component mill, situated close to the forest, can obtain a better utilization of the log/lumber than can any single customer. This is because the mill can produce parts for several customers at one time, combining the varying sizes and quality requirements to obtain the optimal yield from the raw material. In addition, because a component mill's primary function is to process timber, they can afford to buy the latest, high-technology machinery, including laser-guided saws, computer-controlled optimizers, scanners and automated handling equipment. With the price of such equipment skyrocketing, this gives a component mill an advantage in processing efficiency that their customers cannot afford to match.
More importantly, however, buying dimension removes the uncertainty in raw material costs. Our dimension is produced to meet the customer's exact specification. Unlike raw lumber, every container of dimension will meet the same standard. Production time will be shortened because production will begin with material that is already partially machined. This allows a manufacturer to reduce their work in process inventory and respond more quickly to customer orders. At the same time, storage of components takes up less warehouse space than rough lumber and the skilled employees that were previously required for processing rough timber can now be shifted to more important functions where their skills can be better utilized.