An Anniversary Post
August 2017 is the seventh anniversary of Complete Procurement Services, LLC. Often thought a lucky number, seven years barely begins to scratch the surface of our experience. I started my purchasing career in August 2017 is the seventh anniversary of Complete Procurement Services, LLC. Often thought a lucky number, seven years barely begins to scratch the surface of our experience. I started my purchasing career in 1983 buying construction and maintenance repair parts for a large apartment complex. The first fourteen years of my career I worked on the wholesale side of construction maintenance and repair industry. This experience enabled me to transition to the hospitality industry. At the onset I purchased windows, doors, cabinetry, etc. for new hotel construction. I shortly started to procure all FF&E for both new construction as well as renovation projects. Thirty-four years later, I bring this wide-ranging extent of my experience to the table for all of my procurement clients.
In my twenty years in the hospitality industry, I have seen some interesting trends in the FF&E business. Early on, most FF&E was made domestically with some parts coming from China. Some of the advantages to this were shorter lead times and the ability to quickly provide replacements for items damaged in transit or incorrectly made. There was a push following this time to purchase FF&E from China to spare cost, but lead times doubled. Replacing damaged or incorrectly made goods became time critical and costly. Most of the FF&E industry has moved off-shore with the exception of guest room carpeting and upholstered goods.
As China’s middle class has developed, the cost of goods they provide though still competitive, do not provide the same level of savings as in the past. Manufacturers are now looking to other developing countries such as Vietnam, Indonesia, and Africa for the next source of inexpensive products. Simultaneously, more and more manufacturers are starting to bring their production back to the US. I applaud this effort.
Here are some things to consider when undertaking a major renovation or new construction project:
- product lead times
- quality of goods
- freight and tariffs
- anti-dumping fines (specific to certain factories in China)
It is important to have representation in the states to assist with any installation issues and having an engineer from the factory on site to assist with the first several rooms to be sure installs are done correctly may be necessary. ROI is important if you plan to hold on to your investment for any period of time. Most franchisers have a standard schedule for remodeling which is seven to ten years on average. Be sure you are buying a well-built product that will hold up beyond that length of time. Top-notch procurement services will do this work for you.
Having worked many multi-million-dollar hospitality FF&E purchasing and project management projects in my twenty years in the industry, I have insight on how to navigate the obstacles that can be encountered in order to bring your project in on budget and on time. Many procurement companies and project management firms hire inexperienced associates to handle these complicated projects with little or no experience. If you are working with a larger firm for your renovation projects and would like to get more personal, attentive service without compromising professionalism and experience, please contact me today. I look forward to working with you.