JELD-WEN Holding, Inc. (JELD): Business Model Canvas [11-2024 Updated]

Understanding the business model of JELD-WEN Holding, Inc. (JELD) reveals how this leading manufacturer of doors and windows operates and thrives in the competitive building products industry. With a focus on high-quality and customizable solutions, JELD-WEN effectively engages various customer segments, including home builders, contractors, and retail consumers. Explore how their strategic partnerships, innovative activities, and robust value propositions drive success in this insightful analysis of their Business Model Canvas.

JELD-WEN Holding, Inc. (JELD) - Business Model: Key Partnerships

Collaborations with raw material suppliers

JELD-WEN maintains strategic relationships with various raw material suppliers to secure essential resources for its manufacturing processes. As of September 28, 2024, JELD-WEN reported an inventory of raw materials valued at approximately $392.8 million. This inventory supports their production capabilities across their North American and European operations, ensuring a consistent supply of components necessary for the production of doors and windows.

Partnerships with construction firms

JELD-WEN collaborates with numerous construction firms, which serve as key partners in distribution and project execution. The company’s products are used extensively in residential construction, which is reflected in their significant revenue from this sector. In the nine months ending September 28, 2024, JELD-WEN generated net revenues of approximately $2.88 billion, a substantial portion of which is attributed to sales driven by these partnerships. The company actively engages with builders to enhance product visibility and adoption in new construction projects.

Relationships with distributors and retailers

JELD-WEN has established extensive relationships with a network of distributors and retailers, enabling wide market reach. Their products are sold through major home improvement retailers, which significantly contribute to sales. For the nine months ended September 28, 2024, the company reported a gross margin of $542.5 million, underscoring the importance of these distribution channels in maintaining profitability. The company’s distribution strategy is critical in ensuring product availability and supporting sales growth.

Strategic alliances for product innovation

To drive innovation, JELD-WEN engages in strategic alliances focused on product development. These partnerships are aimed at enhancing product offerings and incorporating new technologies. In 2024, JELD-WEN has emphasized investment in R&D, resulting in an increase in selling, general, and administrative expenses to $494.5 million for the nine months ending September 28, 2024. Such collaborations are vital for maintaining competitiveness and responding to market demands effectively.

Partnership Type	Details	Financial Impact
Raw Material Suppliers	Collaborations for procurement of essential materials	Inventory of raw materials: $392.8 million
Construction Firms	Partnerships for project execution and product visibility	Net revenues: $2.88 billion in 2024
Distributors & Retailers	Extensive network for product distribution	Gross margin: $542.5 million in 2024
Strategic Alliances	Focus on innovation and product development	SG&A expenses: $494.5 million in 2024

JELD-WEN Holding, Inc. (JELD) - Business Model: Key Activities

Manufacturing of doors and windows

JELD-WEN is a leading manufacturer in the building products industry, specializing in the production of doors and windows. For the three months ended September 28, 2024, the company reported total net revenues of $934.7 million, a decline from $1.08 billion in the same period in 2023. The cost of sales for this period was $754.8 million, leading to a gross margin of $179.9 million, which represents a gross margin percentage of 19.2%.

Marketing and brand promotion

JELD-WEN markets its products primarily under the JELD-WEN brand name in North America and under various acquired brand names in Europe. The marketing expenditures for the company are included within the selling, general, and administrative expenses, which totaled $143.3 million for the three months ended September 28, 2024. The company focuses on promoting its brand through various channels to enhance its market presence and drive sales across its segments.

Supply chain management

Effective supply chain management is crucial for JELD-WEN, given its reliance on raw materials for manufacturing. As of September 28, 2024, the company reported inventories of $481.7 million, slightly up from $481.5 million at the end of 2023. The company manages its supply chain to ensure timely delivery of materials while maintaining cost efficiency.

Research and development for new products

JELD-WEN invests in research and development to innovate and improve its product offerings. This investment is vital for maintaining competitiveness in the market. The company’s operational expenses include costs associated with R&D, which contribute to the development of new products that meet evolving consumer demands. For the nine months ended September 28, 2024, total net revenues were reported at $2.88 billion, with significant portions allocated towards R&D activities.

Key Activity	Q3 2024 Financial Data	Q3 2023 Financial Data
Total Net Revenues	$934.7 million	$1.08 billion
Cost of Sales	$754.8 million	$853.4 million
Gross Margin	$179.9 million (19.2%)	$223.6 million (20.8%)
Selling, General, and Administrative Expenses	$143.3 million	$162.8 million
Inventories	$481.7 million	$481.5 million

JELD-WEN Holding, Inc. (JELD) - Business Model: Key Resources

Manufacturing facilities in North America and Europe

JELD-WEN operates multiple manufacturing facilities across North America and Europe, which are crucial to its production capabilities. As of September 28, 2024, total property and equipment, net, was valued at approximately $670.8 million. The company has strategically located plants to optimize logistics and production efficiency, including facilities in the U.S., Canada, and various European countries, supporting a diverse product range from windows and doors to other building products.

Skilled workforce and management team

The company prides itself on a skilled workforce that is essential for maintaining operational efficiency and product quality. As of September 28, 2024, JELD-WEN employed around 18,000 individuals globally. The management team, with extensive industry experience, is pivotal in driving the company's strategic initiatives and operational improvements.

Strong brand reputation in the building products sector

JELD-WEN has established a strong brand reputation, recognized for quality and innovation in the building products sector. The company's brand equity is reflected in its net revenues, which totaled approximately $934.7 million for the three months ended September 28, 2024, down from $1.1 billion in the same period of the previous year. This reputation helps in customer retention and attracting new clients in a competitive market.

Financial resources for operations and investments

As of September 28, 2024, JELD-WEN had total liquidity of $636.7 million, which included $208.5 million in unrestricted cash and $428.2 million available for borrowing under its ABL Facility. This financial strength supports ongoing operations, capital expenditures, and strategic investments. The company reported a net loss of $120.6 million for the nine months ended September 28, 2024, primarily due to a goodwill impairment charge of $63.4 million.

Key Resource	Details
Manufacturing Facilities	Net Property and Equipment: $670.8 million
Workforce	Approximately 18,000 employees
Brand Reputation	Net Revenues: $934.7 million (Q3 2024)
Financial Resources	Total Liquidity: $636.7 million

JELD-WEN Holding, Inc. (JELD) - Business Model: Value Propositions

High-quality, durable building products

JELD-WEN is recognized for its commitment to producing high-quality building products. The company generates significant revenue from its core offerings, which include windows and doors. For the nine months ended September 28, 2024, JELD-WEN reported net revenues of $2.88 billion, a decrease from $3.28 billion during the same period in 2023. Despite the decline, the focus on quality remains a key value proposition, supported by a gross margin of $542.5 million, reflecting the premium nature of their products.

Customizable solutions for residential and commercial projects

JELD-WEN provides customizable solutions tailored to the needs of both residential and commercial customers. The ability to offer bespoke products allows the company to cater to a diverse clientele. This has been particularly advantageous in the North American market, where sales are influenced by new housing starts and remodeling activities. As of September 28, 2024, JELD-WEN's North America segment reported an income from continuing operations of $82.8 million, highlighting the effectiveness of their customization strategy.

Sustainable and energy-efficient products

In alignment with growing consumer demand for sustainability, JELD-WEN emphasizes the development of energy-efficient products. This focus is evident in their product lines that meet or exceed energy efficiency standards, appealing to environmentally conscious consumers. For instance, the company has implemented various energy-saving technologies across its product range, which not only fulfills regulatory demands but also enhances brand reputation. The market for energy-efficient products continues to expand, with JELD-WEN strategically positioned to capture this growth through its innovative offerings.

Strong customer support and service

Customer support is a critical aspect of JELD-WEN's value proposition. The company invests in robust customer service initiatives to ensure client satisfaction, which is reflected in its lower warranty liability. As of September 28, 2024, the warranty liability stood at $46.8 million, a decrease from prior periods, indicating effective quality control and customer service practices. Additionally, JELD-WEN's comprehensive support framework includes technical assistance, product education, and post-sale services, enhancing customer loyalty and repeat business.

Value Proposition	Description	Financial Impact
High-quality, durable building products	Focus on premium materials and construction standards	Net revenues of $2.88 billion; gross margin of $542.5 million
Customizable solutions	Tailored products for residential and commercial projects	Income from continuing operations: $82.8 million in North America
Sustainable and energy-efficient products	Products designed to meet energy efficiency standards	Increased market share in eco-friendly segments
Strong customer support	Robust service initiatives and warranty management	Warranty liability at $46.8 million

JELD-WEN Holding, Inc. (JELD) - Business Model: Customer Relationships

Direct engagement with builders and contractors

JELD-WEN actively engages with builders and contractors through targeted outreach programs and partnerships. This direct engagement is crucial for acquiring new customers and retaining existing ones. The company has reported net revenues from external customers of $2,879,858,000 for the nine months ended September 28, 2024, with a significant portion attributed to business with builders and contractors.

Customer service and support teams

JELD-WEN employs dedicated customer service and support teams to ensure customer satisfaction and address inquiries. The company has recorded selling, general and administrative expenses of $494,548,000 for the nine months ended September 28, 2024, which includes costs related to customer support operations. Customer support initiatives are critical in maintaining relationships and addressing product-related issues, thereby enhancing customer loyalty.

Loyalty programs for repeat customers

JELD-WEN offers loyalty programs aimed at incentivizing repeat purchases among its customer base. These programs are designed to reward contractors and builders for their continued business. The effectiveness of these programs can be seen in the company's return customer rates, which contribute to its revenue stability. Although specific metrics on loyalty program participation were not disclosed, the overall increase in customer engagement is reflected in the company's revenue performance.

Online platforms for product information and ordering

JELD-WEN has established online platforms that provide comprehensive product information and facilitate ordering processes. The company reported total net revenues of $934,716,000 for the three months ended September 28, 2024, indicating the importance of digital channels in driving sales. The online interface allows customers to easily access product specifications, place orders, and track deliveries, enhancing the overall customer experience.

Customer Interaction Type	Details	Financial Impact
Direct Engagement	Targeted outreach to builders and contractors	Contributed to $2,879,858,000 in net revenues (9M 2024)
Customer Service Teams	Dedicated support for inquiries and product issues	Part of $494,548,000 in SG&A expenses (9M 2024)
Loyalty Programs	Incentives for repeat business from contractors	Impact on revenue stability, specific metrics undisclosed
Online Platforms	Access to product info and ordering capabilities	Facilitated $934,716,000 in net revenues (Q3 2024)

JELD-WEN Holding, Inc. (JELD) - Business Model: Channels

Direct sales to construction companies

JELD-WEN directly engages with construction companies, providing products that are integral to residential and commercial construction projects. In the three months ended September 28, 2024, JELD-WEN generated net revenues of $677,992,000 from external customers in North America, a significant portion of which is attributed to direct sales to construction firms.

E-commerce platforms for consumer sales

In 2024, JELD-WEN has enhanced its online sales capabilities, leveraging e-commerce platforms to reach consumers directly. This channel allows for increased accessibility and convenience for customers. While specific revenue figures from e-commerce sales are not disclosed, the growing trend in consumer purchasing online is evident, aligning with industry shifts towards digital sales.

Retail distribution through home improvement stores

JELD-WEN products are widely available through major home improvement retailers, which serve as a critical distribution channel. In the nine months ended September 28, 2024, JELD-WEN reported net revenues of $2,884,908,000, with a substantial contribution from retail partners. Home improvement stores provide a physical presence that complements JELD-WEN's online and direct sales efforts.

Channel Type	Revenue Contribution (Q3 2024)	Notes
Direct Sales to Construction Companies	$677,992,000	Major source of revenue; focuses on residential and commercial projects.
E-commerce Sales	Not specifically disclosed	Part of growing trend; aligns with consumer purchasing habits.
Retail Distribution	Substantial part of $2,884,908,000 total revenue	Sales through major home improvement chains.

Partnerships with architects and designers

JELD-WEN collaborates with architects and designers, promoting its products in specifications for new construction and renovation projects. These partnerships enhance brand visibility and drive demand, contributing to overall sales growth. The strategic alliance with design professionals allows JELD-WEN to position its products effectively within the market.

JELD-WEN Holding, Inc. (JELD) - Business Model: Customer Segments

Home builders and contractors

JELD-WEN primarily serves home builders and contractors by providing a variety of building products, including windows and doors. In the third quarter of 2024, net revenues from external customers in North America were $677.9 million, reflecting the significant demand from this segment.

Retail consumers for DIY projects

The company also targets retail consumers engaging in DIY projects. In the nine months ended September 28, 2024, JELD-WEN's total net revenues amounted to $2.88 billion, with a portion attributed to retail sales.

Commercial construction firms

Commercial construction firms are another key customer segment. JELD-WEN reports substantial engagement with this sector through its commercial product offerings. The company generated $259.4 million in net revenues from Europe in the same quarter, which includes contributions from commercial projects.

Property developers

Property developers represent a critical customer segment as well. JELD-WEN's products are integral to both residential and commercial developments, which contribute to its overall revenue. In the nine months ending September 28, 2024, the company's revenues from property development-related sales were part of the broader $2.88 billion total.

Customer Segment	Key Characteristics	Revenue Contribution (Q3 2024)
Home builders and contractors	Focus on large-scale residential projects	$677.9 million
Retail consumers for DIY projects	Targeting individual consumers	Part of $2.88 billion total
Commercial construction firms	Engagement in commercial buildings	$259.4 million
Property developers	Involvement in both residential and commercial development	Part of $2.88 billion total

JELD-WEN Holding, Inc. (JELD) - Business Model: Cost Structure

Manufacturing and operational costs

The manufacturing and operational costs for JELD-WEN Holding, Inc. totaled $2,337,362,000 for the nine months ended September 28, 2024, representing 81.2% of net revenues. This reflects a decrease from $2,642,331,000 in the same period in 2023, which was 80.5% of net revenues.

Raw material procurement expenses

As of September 28, 2024, JELD-WEN reported total inventories of $481,676,000, which included:

• Raw materials: $392,836,000
• Work in process: $22,928,000
• Finished goods: $88,920,000

The company incurred raw material procurement expenses as part of its cost of sales, which significantly impacted overall operational costs.

Marketing and advertising expenditures

For the nine months ended September 28, 2024, JELD-WEN's selling, general, and administrative expenses amounted to $494,548,000, which is approximately 17.2% of net revenues. This represents an increase from $478,060,000 in the prior year, indicating a focus on marketing and advertising efforts amidst declining revenues.

Research and development costs

Research and development costs are included within the selling, general, and administrative expenses. Specific figures for R&D were not distinctly reported, but JELD-WEN allocated resources to enhance product offerings and market competitiveness, contributing to the overall increase in administrative costs.

Cost Category	Amount (in thousands)	Percentage of Net Revenues
Manufacturing and Operational Costs	$2,337,362	81.2%
Raw Material Procurement	$392,836	Included in Cost of Sales
Marketing and Advertising Expenditures	$494,548	17.2%
Research and Development Costs	Not separately disclosed	Part of SG&A

JELD-WEN Holding, Inc. (JELD) - Business Model: Revenue Streams

Sales of doors and windows

JELD-WEN generates a significant portion of its revenue through the sale of doors and windows. In the three months ending September 28, 2024, the company reported net revenues of $934.7 million, down from $1.1 billion in the same period the previous year, marking a decrease of approximately 13.2%. The sales of doors and windows are primarily directed towards residential housing construction and remodeling sectors, which are subject to seasonal fluctuations affecting demand.

Custom product orders

JELD-WEN also earns revenue through custom product orders, which cater to specific client needs. Customization allows the company to charge premium prices, reflecting the added value of tailored solutions. The company’s financial reports indicate that the custom orders are included in the overall sales figures, contributing to the revenue stream. In the nine months ended September 28, 2024, JELD-WEN's total net revenues amounted to $2.88 billion, with a significant portion attributable to customized orders.

After-sales services and support

After-sales services and support form another integral revenue stream for JELD-WEN. These services include installation, maintenance, and warranty services for their products. The warranty liability as of September 28, 2024, was recorded at $46.8 million, indicating the company's commitment to customer satisfaction and product reliability. This segment not only enhances customer loyalty but also generates recurring revenue through service contracts and extended warranties.

Licensing and partnerships in product development

JELD-WEN engages in licensing and partnerships that contribute to its revenue streams. These collaborations often involve sharing technology and developing innovative products, which can lead to additional revenue through licensing fees. In the nine months ended September 28, 2024, JELD-WEN's other income increased to $20.2 million, up from $11 million in the same period the previous year, partly due to successful partnerships and licensing agreements.

Revenue Source	Q3 2024 Revenue (in millions)	Q3 2023 Revenue (in millions)	Change (%)
Doors and Windows	934.7	1,076.9	-13.2
Custom Product Orders	Part of total net revenues	Part of total net revenues	N/A
After-Sales Services	Included in total revenues	Included in total revenues	N/A
Licensing & Partnerships	20.2	11.0	+84.2

Updated on 16 Nov 2024

Resources:

1. JELD-WEN Holding, Inc. (JELD) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of JELD-WEN Holding, Inc. (JELD)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View JELD-WEN Holding, Inc. (JELD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.