Diversification and Vertical Integration Help Shield Company from Market Drops


By Diane Calabrese
Date Posted: 1/3/2005

Varied endeavors and vertical integration keep Turman Lumber Inc., Christiansburg, Va. and its related companies thriving and growing.

            The Turman Group umbrella covers forest products businesses and other companies. Yet the main root among the many companies (see accompanying article) is Turman Sawmill Inc., which Michael Turman, company president and a part owner, started some 35 years ago.

            "I try not to get too focused on one business," said Michael. "I change with the times. We also have six or seven convenience stores." Diversity is the key to riding across non-peak intervals, he explained. When business slows in one area, it typically moves at a faster pace in another.

            In the forest products industry, Michael said, one of the most important elements of success is tying together as many components as possible. "We’ve done a good job of vertical integration," he said. "We do a lot with the products we’ve got."

 










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