The New CSA Headquarters...

is open for business!
You can now find us at:

Construction Suppliers Association

120 Handley Road

Suite 610

Tyrone GA 30290

P: (678) 674-1860*

F: (678) 674-1864

* The old phone number will forward to this one for awhile

You can see a slide show of the new building below:

News You Can Use - Trends and Numbers

Consumer Confidence Index Rises in August
The Conference Board Consumer Confidence Index®, which had retreated in July, rebounded in August. The Index now stands at 54.1 (1985=100), up from 47.4 in July. The Present Situation Index increased slightly to 24.9 from 23.3 last month. The Expectations Index improved to 73.5 from 63.4 in July. Read more.

New Homes Sales Surge 9.6 Percent in July
Sales of new one-family houses in July 2009 were at a seasonally adjusted annual rate of 433,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 9.6 percent above the revised June rate of 395,000, but is 13.4 percent below the July 2008 estimate of 500,000.

The median sales price of new houses sold in July 2009 was $210,100; the average sales price was $269,200. The seasonally adjusted estimate of new houses for sale at the end of July was 271,000. This represents a supply of 7.5 months at the current sales rate.

Architecture Billings Index Bounces Back in July After Substantial Dip
Exhibiting a welcome rebound following a 5-point dip the month prior, the Architecture Billings Index (ABI) was up almost 6 points in July. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the July ABI rating was 43.1, up noticeably from 37.7 the previous month. This score, however, still indicates a decline in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry score fell to 50.3 from 53.8, but it was the fifth straight month with a score in above 50. Read more.

Existing Home Sales Up 7.2 Percent in July
For the first time in five years, existing-home sales have increased for four months in a row, according to the National Association of Realtors®.

Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 7.2 percent to a seasonally adjusted annual rate of 5.24 million units in July from a level of 4.89 million in June, and are 5.0 percent above the 4.99 million-unit pace in July 2008. The last time sales rose for four consecutive months was in June 2004, and the last time sales were higher than a year earlier was November 2005. Read more.

NLBMDA News: ProSales Honors Industry Notables

To commemorate its 20th anniversary, ProSales magazine's September issue presented its "list of the 20 people, trends, concepts, tools, and initiatives that we believe have had the greatest impact on the construction supply industry during ProSales' history." Among the many notables are NLBMDA Chairman and Pro-Build CEO Paul Hylbert, Jr. On his contributions, the magazine commented, "Arguably, no one has been bigger in the building materials industry over the past 20 years than Paul Hylbert, and nobody matters more now."

Also featured were the state and regional building material associations. "For more than a century, regional groups have provided the meetings, roundtables, classes, and other venues for dealers to look up temporarily from their intensely local concerns, collect management ideas from fellow dealers, and build relationships that often prove to be lifesavers when trouble occurs," noted the magazine.

Other honorees included Joe Hardy of 84 Lumber, Rob Mellor of BMHC, Tony DeCarlo of Lumbermens Merchandising Corp., and Bill Hayward of Hayward Lumber. Congratulations to all the honorees. For the complete article, visit the ProSales website here.

NLBMDA: CPSC Finds No Radiation Risk from Manufactured Drywall

The Consumer Products Safety Commission (CPSC) has reported that testing conducted by federal and state agency radiation laboratories found no radiation safety risk to families in homes built with manufactured drywall.

Responding to recent news accounts about the possibility of imported drywall containing radioactive phosphogypsum, federal and state agency radiation laboratories analyzed multiple samples of drywall obtained by the CPSC and the Florida Department of Health(FLDOH). Twenty-one samples were analyzed from homes and manufacturers of drywall. Seventeen were obtained by CPSC from manufacturers and suppliers in multiple states, and four were obtained by FLDOH from homes exhibiting copper corrosion, odors and occupant complaints. Results of the phosphogypsum testing showed levels that do not pose a radiation safety risk to families.

CPSC stated that federal and state scientists believe that imported and domestically-manufactured drywall associated with these samples does not pose a radiological concern to consumers. For more information, visit the CPSC website here.

NLBMDA News: U.S. Green Building Council Introduces LEED for Homes Affiliate Program

On August 20, the U.S. Green Building Council (USGBC) announced the introduction of its new LEED for Homes Affiliate Program. The program allows regional green home building programs to promote the growing green residential market by partnering with USGBC as a LEED for Homes Affiliate. This new program is designed to work flexibly and smoothly with other third-party green home providers. According to USGBC, the objective of this new program is to increase the availability of the green homes stock through collaborations with local green home building programs across the country by further promoting sustainable design and energy-and-resource efficiency in all dwellings.

"This is an important step forward as we advocate for full marketplace adoption of green home building. One of the greatest benefits of the LEED green home certification program is its continual progress and flexibility," said Nate Kredich, Vice President, Residential Market Development, USGBC. "Through the LEED for Homes Affiliate Program, green residential programs can partner with us to further promote green homes."

To address the need for knowledgeable green home building professionals, the Green Building Certification Institute implemented specializations for its LEED professional credentialing. The LEED Accredited Professional + Homes specialty allows LEED AP candidates to specialize as a green building expert in the residential field, advancing the construction of green homes by employing green building professionals.

The first two green home building programs that have signed-on to be LEED for Homes Affiliates are the Home Builders Association of Greater Dallas and Minnesota GreenStar. USGBC and HBA Greater Dallas have previously teamed up through Green Built North Texas, a voluntary partnership of local home builders, industry supporters and sponsors committed to green homes in North Central Texas. Minnesota GreenStar, a third-party green home building certification system, recognizes that its challenging climates require residential energy efficiency. Read more.

NLBMDA News: Congress Facing Ambitious Fall Agenda

Members of Congress face an ambitious agenda when they return September 8, with health care reform, climate change, the annual spending bills and possibly a transportation funding measure on the top of the list.

Labor advocates continue to press for a vote on card check legislation, the "Employee Free Choice Act," though reports suggest that senators attempting to develop an alternative are now focusing on binding arbitration rather than the card check measure that would effectively eliminate the secret ballot. Even without the card check provision, possible alternatives are likely to limit employers' ability to respond to union organization campaigns and impose unreasonable binding arbitration requirements that will curtail the ability to negotiate employment terms with employees.

Meanwhile, the building industry continues to press for an extension of the first-time homebuyer tax credit, which expires December 1. Legislation introduced by Sen. Johnny Isakson (R-GA) would eliminate the first-time buyer requirement, increase the credit from $8,000 to $15,000 and extend the credit for an additional year. Visit www.BuildtheVote.org to encourage your legislators to focus on housing when they return to Washington, and to urge them to oppose card check and any so-called compromises. Your calls, visit and letters do make a difference! Read more.

NLBMDA News: Health Care Reform Faltering

The President and Democratic leadership have been met with an unexpected backlash to their health care reform efforts over the August recess, leading key legislators to pull back from the public option component and others admitting additional work will be needed to develop a bill that will clear the 60 vote hurdle in the Senate. Sen. Joe Lieberman (I-CT) suggested over the weekend that some portions should be deferred until the country's economic conditions improved, echoing Republican calls to focus first on cost control and insurance market reforms.

Dealers are encouraged to continue contacting legislators during the final two weeks of the Congressional recess to oppose reforms that place the burden on the backs of small businesses. Read more.

Affidavit of Nonpayment - Protecting Your Lien Rights under Georgia Law

By: Jared W. Heald, Esq.
Hendrick, Phillips, Salzman & Flatt, P.C. (Atlanta, GA)

There exists among suppliers a common misconception that when a waiver and release of lien rights is conditioned upon receipt of payment by the supplier that the supplier’s lien and bond rights remain intact if the supplier does not receive payment. This belief often stems from a misunderstanding of Georgia law.

Georgia law provides forms for the interim and final waiver and release of lien and bond rights titled, “Interim Waiver and Release Upon Payment” and “Waiver and Release Upon Final Payment”. Both of these forms contain the following language, “[u]pon the receipt of the sum of $ _____, the mechanic and/or materialman waives and releases any and all liens or claims of liens it has upon the foregoing described property . . . .” Identical or similar language is also utilized by Owners and General Contractors in the forms they prepare for their own use.

The catch that many unwary suppliers fall into is that, under Georgia law, executing a form with such language can, despite the language making it effective “upon receipt of payment”, effectuate a waiver and release of the supplier’s lien rights. This is because Georgia law has a special provision concerning when payment is received that deems you to have been paid, even if, in fact, you have not been paid.

Under Georgia law, payment is deemed received, and a supplier’s lien and bond rights are terminated, at the earliest of: (1) actual receipt of payment; (2) execution by the supplier of a separate written acknowledgment of payment in full; and (3) sixty days after the date of the execution of the waiver and release. The first statutory provision regarding receipt of payment is what most suppliers believe to be the common understanding of what constitutes receipt of payment. While the second statutory provision regarding receipt of payment is not commonly known by most suppliers, it is only fair that if a supplier signs an acknowledgment that payment has been received that payment be deemed received. Suppliers should simply refuse to sign such an acknowledgment unless payment has, in fact, been received. The third statutory provision regarding receipt payment, however, can impose an undue burden upon uninformed suppliers by acting to waive lien and bond rights without having received payment. Importantly, those harsh consequences can be avoided.

With regard to that portion of the law that deems you to have received payment, the complete Georgia statute provides: “Such amounts shall conclusively be deemed paid in full. . . [s]ixty days after the date of the execution of the waiver and release, unless prior to the expiration of said 60 day period the claimant files a claim of lien or files in the county in which the property is located an Affidavit of Nonpayment . . . .” Thus, the law provides an opportunity to suppliers to avoid the loss of lien rights when payment has not been received – the opportunity to file an Affidavit of Nonpayment within sixty days of the date of the execution of the waiver.

An Affidavit of Nonpayment is a signed, notarized, sworn statement which provides that the supplier has not received payment as provided for in the waiver and release, and the Georgia statutes provide a template. If it is filed in the correct county within sixty (60) days after executing the waiver, the supplier’s lien and bond rights are preserved and payment will not be deemed to have been received. The statutory form for the Affidavit of Nonpayment is found in O.C.G.A. § 44-114-366 (f)(2).

In summary, when executing a waiver and release of lien and bond rights, be sure to calendar the date at most fifty days later to provide you with enough additional time to file and record your Affidavit of Nonpayment if you have not been paid. However, it is important to note that the filing of an Affidavit of Nonpayment does not extend the time within which a supplier is required to file, for recording, a Claim of Lien.

Here’s Your Ray of Sunshine for the Week

Jim Moody
President

I recently spent a few days with my counterparts from the other state and regional LBM Dealer associations. It’s always good to get together with colleagues, and this is a robust community that shares information and ideas very well.

This year we met in Gettysburg, PA, which is sort of fitting given the times we live in. I was struck by several things at the meeting, some related to the association and some related to the industry.

It’s clear that most of us are in the same boat. Few parts of the country are doing well. Those energy-producing states in the middle part of the country seem to be holding their own, but everyone else is down. The good news is that we are not Michigan or Florida. The bad news is that most of my counterparts were more negative about the future than I’ve been.

Of course, our perspective of “bad” is a little distorted by the good times we’ve been through as a nation and as an industry. You don’t have to go too far on a tour of the battlefield at Gettysburg to gain a sense of perspective. Yes, these are bad times. But they are nothing like what this country has been through before.

Sure, most of us (and perhaps all of us) in this industry worry that the country is teetering on the brink of socialism. We worry about deficits, the credit system, and the fact that no one seems willing or able to build a new house. All of those are valid, but we’ve already seen that the worst predictions about the direction our country is taking are not coming true.

For instance, the card check legislation that all of us feared seems to have hit a wall. I won’t say it’s dead, because there are still compromises in the works. But the ability for a union to organize without a real vote isn’t going to happen.

Ditto on nationalized health care. We may end up with something, but I really don’t think that the full-fledged plan that the Obama administration wanted is going to go come to pass.

In the short run, our nation can move to the extremes. It certainly seemed that we had shifted far to the left. But the beauty of our system is that when the pendulum swings too far right or left, the huddled masses in the middle pull it back. I won’t predict that the majorities in the House or Senate are about to change, but over time (maybe even a short time), we’ll see moderation there. Even today with full control, the extreme liberal left doesn’t have enough power to force its full agenda on America.

So my point here is that while times are bad, they are nothing like we experienced in the Civil War (or War for Southern Independence for you Daughters of the Confederacy) or Reconstruction. We outlasted those bad times and built a great nation. We’ll come out of this as well. OK, maybe Michigan won’t. But everyone else will. Keep the faith.

CONSTRUCTION SUPPLIERS ASSOCIATION, SUMMER CONFERENCE

CONSTRUCTION SUPPLIERS ASSOCIATION, SUMMER CONFERENCE
CHAIRMAN’S ADDRESS
FRIDAY, JULY 10, 2009

It is customary at this meeting for the chairman to give a state of the association address. Since many of us are board members or trustees, that seems redundant at this meeting. I can confidently say that the association is strong and moving in a positive direction under good leadership.

This gives me an opportunity to speak about another subject that probably has been on your mind more than once during the past 24 months.

That subject is to ask the question, “Why am I in this business?”

My initial response is that I am in the business for the money, but since there has not been much of that in recent months, I must turn to some other reasons.

I like this industry

The industry has good people – customers, suppliers, employees, business owners

We are in an honest industry – Committing to an order from a lumber mill based on a phone call or handshake really does mean that you are going to take delivery. There is a lot of integrity in that type of arrangement, especially in today’s litigation-oriented business environment.
Our success depends on the strength of our relationships – our customers are typically multi-transaction and multi-year customers and eventually friends. The same is true for suppliers. I like to be in an environment where relationships matter.

I love the American Free Enterprise system, and while all industries operate within that system, our industry truly embodies the principles of free enterprise. There is risk and reward; lately we have been operating more on the risk component than the reward component. Success comes with hard work, learning from mistakes, creativity and innovation, and decisions that we make.

Competition is keen. It is possible to differentiate oneself from competitors. An owner in our industry can actually create a poor, mediocre, satisfactory or outstanding business. The decisions we make and the way we lead our companies really do impact our outcomes.

Our business is pretty simple – you buy a product that is virtually indistinguishable from the product that your competitor down the street buys, you send it out of your store on a truck that looks just the same as the one down the street, to a jobsite that looks just the same as the one your competitor services ------- but within that simple framework there is a challenge to do it better, cheaper, faster, with more value to your customer than the next guy.

I like the fact that in our industry we help people build an important necessity of life, and sometimes their dream home. In fact in our company we have adopted an advertising slogan that I picked up at an earlier summer conference “Together we build the American Dream”

I like the smell of cut wood, especially cedar.

I like having an important role in providing a living for 40 or 50 people and families.

In most communities, owning the local lumberyard affords an opportunity to have a positive impact and influence on the community

Civic clubs, school boards, city commission

US Congress through the lobbying initiative of CSA and NLBMDA

Community events

Signage – many of us have marquee signs in front of our stores on busy streets. You can have an impact on the community simply by the message that you put on the sign.

Eagle Scouts – I think that Blake Builders Supply is primary source for all of the local Eagle Scouts to obtain materials for their final projects.

I like the whole concept of being an entrepreneur – no corporate meetings, no shareholders, flexible to customer needs and marketplace changes, rapid feedback on decisions, the adrenaline rush of risk and reward.

Finally, I believe that God gave me the ability and opportunity to do what I do. I also believe that God has a plan for every life. So if I do my best to fulfill my opportunity and ability, that is a very good thing.

I hope that my reflections have struck a chord with you as you think about “Why am I in this business?”

News You Can Use - The Many Shades of Green

Plantings, Not Shingles, Gaining Favor As Cover for Houses in Central Ohio
By Jill Laster, The Columbus Dispatch, Ohio

Central Ohioans looking to add a garden to their homes have a new option from builders: the roof.

Green roofs use plantings on top of water-resistant membranes to lower energy costs, deflect heat, extend the life of the roof, reduce storm-water runoff and absorb noise.

Demand for the roofs is growing across the United States. More than 3.1 million square feet of green roofing was installed during 2008 in the United States, a 35 percent increase from 2007, according to Green Roofs for Healthy Cities, an industry association. Although green roofs are most common on businesses, homeowners are starting to take notice.

In central Ohio, several companies are selling green roofs, including LiveRoof, GreenGrid and Green Roof Blocks. No local homeowner has installed a living roof yet, but they say they have had an increase in callers both in central Ohio and nationwide.

"I think it's part of an increased awareness of our impact on the planet," said Kelly Luckett, president of Green Roof Blocks of Florissant, Mo. "Green roofs are just a small part of that.
Aesthetics play a role as well. Jeff Salisbury and Christine Plepys of Newport, Ky., added a green roof to their new garage three years ago because they wanted something pleasant to look at from their porch. Read more.

News You Can Use - Trends and Numbers

Homeowners Turning to Phased Remodeling Due to Down Market, Says NARI
Residential remodels are no longer those once-in-a-lifetime projects that keep homeowners dreaming years on end before they ever pick up a hammer. Instead, many homeowners opt to do a series of remodels as their schedules, budgets and lifestyles evolve over time, according to the National Association of the Remodeling Industry (NARI).

In fact, according to a recent Consumer Reports poll on home remodeling, 36% of homeowners who plan to remodel plan to do so in phases. Read more.

Builders Ask Congress To Extend and Enhance Home Buyer Tax Credit
To help create jobs and set the stage for a strong recovery, the National Association of Home Builders (NAHB) today called on Congress to extend and enhance the $8,000 first-time home buyer tax credit due to expire on December 1.

Specifically, NAHB is asking Congress to extend the home buyer tax credit program through November 30, 2010 and make it available to all buyers of principal residences. Read more.

Consumer Satisfaction With Windows and Patio Doors Declines, According to Latest J.D. Power and Associates Report
As economic difficulties lead homeowners to curtail remodeling projects, overall satisfaction among consumers with windows and patio doors has declined in 2009, according to the J.D. Power and Associates 2009 Windows and Patio Doors Satisfaction Study(SM) released today. Read more.

AIA Study Estimates up To 270,000 Construction Industry Jobs Could be Created if American Clean Energy Security Act is Passed
The American Institute of Architects (AIA) conducted a study to determine how many jobs in the design and construction industry could be created if the American Clean Energy Security Act (H.R. 2454; also known as the Waxman-Markey Bill) is enacted. The study analyzes two provisions included in the House-passed Act, the State Energy and Environment Development (SEED) program and the Green Resources for Energy Efficient Neighborhoods (GREEN) program. Using studies that measure the extent of job creation in the building industry, the findings estimate that as many as 270,000 jobs could be created or saved if the building-related provisions in H.R. 2454 become law. Read more.

Time to Get Moving

By Jim Moody, CAE
CSA President

It’s an exciting time at CSA. We’re moving on August 24 to our new home in Tyrone, GA. This move fulfills a dream the Board has had for some time: Owning our own building on the south side of Atlanta.

Because of generous contributions from various members, our new space is quite plush. We have very nice base and crown molding, and there is bead board and chair rail in the public spaces. Our carpet is attractive and durable. Our doors are two-panel V-grooved to fit in nicely with the cottage look of the exterior. Some decorative elements and a grill have been donated. It’s really turned out nicer than I ever dreamed we could afford.

Once we are settled, we’ll have an open house for all members to come and see your new building. Of course, members are always welcomed to drop by – you don’t have to wait for the official invitation.

One of the great things about this new building is the ability for us to hold board meetings and educational sessions. We have previously had to use hotel space because our conference room was not large enough. The new conference room will have great A/V capability and can easily be configured into a classroom or a boardroom. We’ve entered into a partnership with BlueLinx that allowed us to purchase high-end conference room furniture (comfortable chairs!), and this conference room will be known as the BlueLinx Learning Center.

A serving kitchen right beside the BlueLinx Learning Center will allow us to provide food easily and at a reasonable cost so that we can keep registration fees to a minimum. Through the magic of American Express points, we will also have a full-size refrigerator. Our current refrigerator is sized for a dorm room and is on its last leg.

As we pack up, there are a number of CSA projects that still require work. It’s just about roundtable season, there are a couple of educational programs on the agenda, and we’ve got a new health insurance program to roll out (more about that in a couple of weeks). We’re aiming for this move to have minimal impact on our regular work. But, on Monday, Aug. 24, you will probably find that the office is unreachable while we are in transit. We hope you’ll excuse this “down day” as we relocate. Rest assured that we will be back in the saddle as quickly as possible, ready to serve you from our own new building.