This Union County lumber company's product line includes rail fencing, mulch, kiln dried and green lumber for domestic and export markets, hardwood and softwood lumber, timber management, and log homes. The company spans more than four decades, three generations of owners. From its inception, Kuhn's Brothers Lumber Company commited itself to ethical timber management and eco-friendly products. Sound forestry management is the hallmark of their operation. The company operates a Forest Stewardship Council certified saw mill, creatinghigh-quality lumber products in central Pennsylvania.
Kuhn's Brothers Lumber Company contact SEWN due to the decline in the housing and construction markets. Although the demand for mulch and rail fencing had increased, sales of other products had decreased dramatically. The company's bank had restricted its line of credit, creating significant cash-flow issues for the company. Compounding the company's cash-flow crisis were the payment terms for the purchase of logs, the decrease in the market for log homes, and the age of the company's receivables.
Kuhn's Brothers Lumber Company needed to price its products more aggressively on larger orders so that it could cover its high fixed costs and sustain its cash-flow.
SEWN met with the owners and the comptroller to conduct a financial analysis and build a reliable cash-flow forecasting model.
Using these new tools, Kuhn's Brothers Lumber Company reduced its operating costs substantially, and was able to work with its bank to restore its line of credit.
