Tuesday, December 22, 2009
OSHA Back on the Prowl
Jim Moody, CAE
President
We’re starting to hear a lot about OSHA ramping up inspections and rule-making. I suppose this was to be expected given the change in power in Washington.
Here are some facts we know:
• OSHA is adding 130 new inspectors nationwide in the coming year.
• Already, 31 new enforcement agents have been put on duty in the Southeast.
• A new rule on crane operation will be published soon. We’ve been working through the NLBMDA to make sure that our industry isn’t saddled with crazy new regulations, but we won’t know for sure whether we were successful until later in the year.
• OSHA is particularly tuned into combustible dust (like sawdust) and silica (which could be emitted as particles when crushing stone or cutting things like cement fiber board).
• Clear definitions of what levels of noise are dangerous have been withdrawn, leaving more latitude to OSHA inspectors to make a subjective determination.
If you don’t have your safety ducks in a row, now is a good time to make changes. While there is no guarantee you will be inspected, it is reasonable to assume that the chances have gone up. There are a variety of resources available to assist with safety. The cheapest first step is to seek a mock OSHA audit from CSA. Contact Larry Marler (larrymarler@gocsa.com or 770-331-7026) if you’d like to schedule a visit.
CSA also developed a safety manual in 2007, which is still relevant today. All CSA Self-Insured Fund members were provided a copy; for non-Fund members, it’s available for a small fee. The manual is provided on disc so that you can select the chapters pertinent to you, insert your business name, and create a customized safety manual for your own business. To order, contact Diane Rountree (dianerountree@gocsa.com or 678-674-1860).
Keep in mind that if you are inspected and violations are found, you are not off the hook once you pay the fine. The rate of re-inspections is going up. If they come back to find that you have not fixed what they found the first time, you will find yourself paying through the nose.
Random Thoughts
Yesterday was the start of winter. I don’t care for the cold at all. I long for the spring even though it means the yard and my nasal passages will be coated with pollen. At times I wonder if I have seasonal affective disorder (SAD), which is a condition that some people get (or think they get) in winter. I learned about this when I worked as a copy editor for a newspaper right out of college. We had a medical reporter who believed he had this, and he wrote about it a lot. Apparently the short days and lack of sunlight have a dramatic depressive effect on some people.
I don’t seriously believe I have a medical condition, but winter is truly my least favorite time of year. While I’m not depressed, I have found myself recently dwelling on the negative while forgetting the many positives that still exist in my life, the association and our industry. In years past, when I’ve been down, I’ve wrapped myself around the fact that even though it’s cold outside, the days are already getting longer and better times are ahead. Yesterday was the shortest day of the year. While we still have a brutal winter ahead (both in terms of weather and business), the mechanisms to make life better are already working.
As we celebrate Christmas and move into the New Year, all of us at CSA want to wish you the best. Thank you for allowing us to serve you. Good riddance to 2009, and here’s to a better 2010.
Tuesday, December 1, 2009
Decline in Industry Makes us Ripe for Innovation
By: Jim Moody, CAE
President
Ruth Kellick Grubbs, an industry consultant and a good friend of CSA’s, recently sent out a newsletter to clients with some harsh insights. Contrary to what I’m hearing from some economists and from other industry gurus, Ruth says there’s no recovery on the horizon for home building.
She cites several reasons to support her analysis:
• Statistics indicating home price increases may be misleading.
• The current low interest rates are not sustainable.
• The homebuyer tax credit will not last forever.
• FHA loans now makeup a significant portion of the market, and they are risky.
• Foreclosures are going to spike again, and so are subprime resets.
Different people can look at the same statistics and come to very different conclusions. Certainly Greg Brooks, another industry consultant, has a different perspective. We provide you with his insightful newsletter each month, and he has a much more positive view of the future than Ruth does.
But whether you think brighter days are just around the corner or not, Ruth makes another point that is interesting.
She says we are at a critical point in the life cycle of our industry. People who study these things have determined that industries typically go through birth, growth and then a decline. The length of the cycle may be different from industry to industry, but the pattern is generally the same. Once an industry hits a decline, there has to be an innovation or the industry eventually dies.
We know that our country will continue to need housing in the long run, so the industry is not likely to die. Instead, someone will find a better, cheaper or faster way to get the job done, and the rest of the industry will fall in line. What’s not known at this point is whether the innovation will keep independent dealers in the mix (although with a much changed business model) or cut us out entirely.
Ruth asserts that technology will have a much larger role in the industry going forward. She also sees major changes in the distribution model, since ours is the most expensive model in existence. She also notes that our existence depends on our customer’s ability to sell our products and services for us, and that’s probably not going to be true in the future.
I’ve seen a lot of information about how homes going forward will be smaller and less customized because cheaper will be better for consumers. If that’s true, then I wonder whether the future is in more manufacturing. Will wall panels be the next big thing? Will the dealers and the home builders essentially be the same company? I don’t have answers to those questions, but it is good food for thought. What do you think the innovation in our industry is going to be? Use our blog feature to post comments.
Meanwhile, one of our members brought a ProSales article on credit to my attention. The article talks about how dealers who aren’t diligent in credit are as guilty of sub-prime lending as the mortgage companies. Clearly credit issues have been significant for our members over the past two years. How you extend credit and manage collections will be critical in the recovery of business going forward. We’ve had a task force developing a guide to best practices in credit and collections this year, and it’s now if final production. Hopefully it will be a useful tool for you; we’ll let you know when it’s available. Here’s the link to the ProSales article
President
Ruth Kellick Grubbs, an industry consultant and a good friend of CSA’s, recently sent out a newsletter to clients with some harsh insights. Contrary to what I’m hearing from some economists and from other industry gurus, Ruth says there’s no recovery on the horizon for home building.
She cites several reasons to support her analysis:
• Statistics indicating home price increases may be misleading.
• The current low interest rates are not sustainable.
• The homebuyer tax credit will not last forever.
• FHA loans now makeup a significant portion of the market, and they are risky.
• Foreclosures are going to spike again, and so are subprime resets.
Different people can look at the same statistics and come to very different conclusions. Certainly Greg Brooks, another industry consultant, has a different perspective. We provide you with his insightful newsletter each month, and he has a much more positive view of the future than Ruth does.
But whether you think brighter days are just around the corner or not, Ruth makes another point that is interesting.
She says we are at a critical point in the life cycle of our industry. People who study these things have determined that industries typically go through birth, growth and then a decline. The length of the cycle may be different from industry to industry, but the pattern is generally the same. Once an industry hits a decline, there has to be an innovation or the industry eventually dies.
We know that our country will continue to need housing in the long run, so the industry is not likely to die. Instead, someone will find a better, cheaper or faster way to get the job done, and the rest of the industry will fall in line. What’s not known at this point is whether the innovation will keep independent dealers in the mix (although with a much changed business model) or cut us out entirely.
Ruth asserts that technology will have a much larger role in the industry going forward. She also sees major changes in the distribution model, since ours is the most expensive model in existence. She also notes that our existence depends on our customer’s ability to sell our products and services for us, and that’s probably not going to be true in the future.
I’ve seen a lot of information about how homes going forward will be smaller and less customized because cheaper will be better for consumers. If that’s true, then I wonder whether the future is in more manufacturing. Will wall panels be the next big thing? Will the dealers and the home builders essentially be the same company? I don’t have answers to those questions, but it is good food for thought. What do you think the innovation in our industry is going to be? Use our blog feature to post comments.
Meanwhile, one of our members brought a ProSales article on credit to my attention. The article talks about how dealers who aren’t diligent in credit are as guilty of sub-prime lending as the mortgage companies. Clearly credit issues have been significant for our members over the past two years. How you extend credit and manage collections will be critical in the recovery of business going forward. We’ve had a task force developing a guide to best practices in credit and collections this year, and it’s now if final production. Hopefully it will be a useful tool for you; we’ll let you know when it’s available. Here’s the link to the ProSales article
NLBMDA News
House to Vote on Estate Tax This Week. Take Action Now.
House leadership has announced plans to vote this week, possibly as early as Wednesday on legislation (H.R.4154) sponsored by Rep. Earl Pomeroy (D-ND) to permanently extend the 2009 $3.5 million exemption and 45% tax rate on estates passed onto the next generation. Read more.
IRS Issues New Guidance on NOL Expansion
The IRS has issued new guidance on the expansion of the Net Operating Loss Carryback provision enacted lat month by Congress. The expansion allows taxpayers to elect a 3, 4, or 5-year net operating loss (NOL) carryback instead of a normally 2-year carryback. Read more.
NLBMDA Joins Institute for Legal Reform to Oppose Lawsuit Changes
This Thursday, Dec. 3, the Senate Judiciary Committee will consider legislation by Sen. Arlen Specter (D-PA) that would change pleading rules and potentially overwhelm federal courts with frivolous lawsuits. Read more.
House leadership has announced plans to vote this week, possibly as early as Wednesday on legislation (H.R.4154) sponsored by Rep. Earl Pomeroy (D-ND) to permanently extend the 2009 $3.5 million exemption and 45% tax rate on estates passed onto the next generation. Read more.
IRS Issues New Guidance on NOL Expansion
The IRS has issued new guidance on the expansion of the Net Operating Loss Carryback provision enacted lat month by Congress. The expansion allows taxpayers to elect a 3, 4, or 5-year net operating loss (NOL) carryback instead of a normally 2-year carryback. Read more.
NLBMDA Joins Institute for Legal Reform to Oppose Lawsuit Changes
This Thursday, Dec. 3, the Senate Judiciary Committee will consider legislation by Sen. Arlen Specter (D-PA) that would change pleading rules and potentially overwhelm federal courts with frivolous lawsuits. Read more.
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