Question-and-Answer Session
Operator
(Operator Instructions)
Your first question comes from the line of Robert Kelly from Sidoti & Company. Please proceed.
Robert Kelly - Sidoti & Company
Just had a question, the pricing pressure that you are seeing, is that confined now to the site-built market?
Michael B. Glenn
Well, certainly, that is where most of our pressure is coming from. The hard part about it is we have had the site-built builders, the production builders have a new tactic, and that is, you kind of quote their business and then you get it and you design it. And then you get ready to build the product for them and if the lumber market moved down like it did in the third quarter, they ask you to re-quote it.
So, any margin that you thought you had in there, because the market moved or you took advantage and did some things, they are taking it away from you. So, it is a very difficult situation for us right now, but the other markets are holding up just quite well.
Robert Kelly - Sidoti & Company
Okay, great. So, it is kind of a moving target on the site built side for the near-term?
Michael B. Glenn
Yes.
Robert Kelly - Sidoti & Company
And then the cost improvement initiatives undergoing, any timeframe for when that starts to kick in?
Michael B. Glenn
Well, there are a couple things, some of it already has kicked in small pieces. But it is really predicated on driving volume to your plants. The whole premise we took with this initiative is we are going to be able to produce twice as much product next year with the same amount of people that we have and that is where efficiency is going to start to come.
It is not so much as we are going to see big efficiencies in December, it is we are able to drive more volume through our plants with the same amount of people.
Robert Kelly - Sidoti & Company
And then just quickly on the balance sheet, do you guys have a target as far as where you want the debt-to-cap to be?
Michael Cole
In the normal environment, we have used up 45% debt-to-cap, debt-to-EBITDA, 2 to 2.25.
Robert Kelly - Sidoti & Company
Great, thank you.
Operator
Your next question comes from the line of Greg Halter from Great Lakes Review. Please proceed.
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