Page 33 - Green Builder May-June 2020 Issue

cash position with almost zero debt, and a credit revisions to accommodate delivery of Trex spaces that extend the home to the outdoors.
line that affords us strong liquidity. Additionally, products in a safe and effective manner to the As people are spending more time at home, they
Trex generates substantial free cash flow, end consumer. want to have attractive and low maintenance
which gives us great financial flexibility. GB: How do you think the coronavirus will living spaces. Having more time on their hands,
Our growth strategy also positions us to change the homebuilding sector in the many are tackling home improvement projects
better handle a recession. Our primary business short term (30-60 days)? themselves.
focus is on converting an increased share of BF: It’s a mixed bag out there right now. In At Trex, we’ve seen an uptick in traffic to our
the wood decking market to Trex composite some areas, contractors’ phones are ringing, website since the shelter-in-place orders have
products. The deterioration of wood decks will and decks are being built. In others, business been issued. We believe there will be increased
not take time off during an economic downturn has come to a standstill due to mandated demand for products that add beauty, value
and recent product introductions from Trex, shutdowns. Across the country, we are seeing and are easy to maintain. The Trex portfolio of
offering pricing that competes more directly strong results from our Decks.com website, products clearly fit into that trend.
with wood, position us to help fill consumer which appeals primarily to the DIY homeowner. GB: How do you think coronavirus will
demand at the entry level more readily, I expect we will continue to see strength in the impact consumer behavior in the long term
particularly for homeowners with a DIY talent. DIY sector, which will benefit our retail and (61+ days)?
GB: What are your customers doing channel partners. Given the latest reports BF: We anticipate that interest in the home
differently? on the virus, we don’t anticipate any major will continue for some time as a result of this
BF: Our channel partners have suddenly found changes in the next 30 days but are hopeful crisis, which bodes well for our industry. People
themselves in a completely changed selling that we will begin to see a wide re-opening will have had time to view and experience their
environment with an entirely different set of of commercial activity within the next 60-90 homes in a different way and as we emerge from
rules and conditions from the normal face-to- days. a period of economic uncertainty, consumer
face transactions for which they are normally GB: How do you think coronavirus will confidence will return and homeowners will
equipped. They are having to figure out how impact consumer behavior in the short term feel comfortable investing in value-added
they can effectively sell to their customers (30-60 days)? improvements to their homes, such as decks
while maintaining appropriate social distancing BF: A positive impact of this crisis on our and outdoor living spaces.
and conducting no-touch transactions either industry has been an increased interest among
via telephone or online. They are also making consumers in their homes – including the

DIY projects. Although conversations
show a minor correlation with
remodeling and DIY interest, so far, it
hasn't been a market changer.

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