Tuesday, November 3, 2009

News You Can Use

Product Information: Stanley and Blecker Decker to Merge
The Stanley Works and Black & Decker announced today they will merge to create Stanley Black & Decker, an $8.4 billion global tool company. The deal is worth $4.5 billion, the companies said in a joint news release. Read more.

September Construction Spending Up 0.08%
Construction spending in September posted a better-than-expected performance, powered by the largest jump in housing construction in more than six years.

The advance spurred hope that the battered housing sector is starting to turn around and will provide support for the overall economy as it struggles to emerge from the worst recession since the 1930s. Read more.

Employment costs rise at slowest pace since 1982
Employment costs rose by the smallest amount on record in the 12 months ending in September, as high unemployment restrained wage and benefit growth.

The data shows that employers face little pressure to raise pay, even as the economy recovers. The weak labor market makes it difficult for people with jobs to demand higher pay and benefits. Read more.

Have you seen EcoHome?

NLBMDA News

Pelosi Unveils House Health Care Bill
Last week, the Democratic House leadership unveiled their nearly-final draft health care reform bill. The bill makes some improvements to the employer mandate, by doubling the floor for penalties on small businesses for not providing health care benefits to employees and dependents. Previously, the penalties began at $250,000 in total wages; now, they begin at $500,000 in wages. Read more.

CPSC Issues Inconclusive Chinese Drywall Report
The Consumer Products Safety Commission (CPSC) last week issued a summary of its findings to date on the Chinese drywall investigation. An interagency task force, comprised of the CPSC, Environmental Protection Agency (EPA), Department of Housing and Urban Development (HUD), Centers for Disease Control and Prevention (CDC), Agency for Toxic Substance and Disease Registry (ATSDR) and state health departments have been coordinating research and governmental response to homeowners who have complained of health and metal and appliance corrosion in their homes. Read more.

OSHA Takes Initial Step Toward Combustible Dust Rule
The U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) just published an advance notice of proposed rulemaking (ANPR) in the Oct. 21 edition of the Federal Register as an initial step in development of a standard to address the hazards of combustible dust. Read more.

Home Builder Confidence Dips in October
With the expiration date for an important home buyer incentive approaching, builder confidence in the market for newly built, single-family homes slipped one point to 18 in October, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI).
Read more.

Wednesday, October 21, 2009

News You Can Use - Product Information

Insurers dropping Chinese drywall policies
By BRIAN SKOLOFF, Associated Press

WEST PALM BEACH, Fla. - James and Maria Ivory's dreams of a relaxing
retirement on Florida's Gulf Coast were put on hold when they discovered
their new home had been built with Chinese drywall that emits sulfuric fumes
and corrodes pipes. It got worse when they asked their insurer for help -
and not only was their claim denied, but they've been told their entire
policy won't be renewed.

Thousands of homeowners nationwide who bought new houses constructed from
the defective building materials are finding their hopes dashed, their lives
in limbo. And experts warn that cases like the Ivorys', in which insurers
drop policies or send notices of non-renewal based on the presence of the
Chinese drywall, will become rampant as insurance companies process the
hundreds of claims currently in the pipeline. Read more.

News You Can Use

Economists Forecast Strong Housing Growth
Experts at NAHB conference see a turnaround occurring by mid-2010, but the way back will be long


By Craig Webb, ProSales Online

The U.S. housing market appears to have bottomed out and looks likely to return closer to normal--but not boom--levels by 2012, a group of housing economists predicted today.
Enthusiasm with several strings attached was the prevailing mood expressed in presentations prepared for the National Association of Home Builders (NAHB) 2009 Fall Construction Forecast Conference. Read more.

Housing Starts Hold Steady in September
Total housing starts, expressed as a seasonally adjusted annual rate (SAAR), came in at 590,000, according to data released today by the Commerce Department. That's 0.5% ahead of the previous month -- which was adjusted downward, from 598,000 to 587,000.
If not for the downward adjustment of August starts, the total percentage would have declined 1.3%.

There was better news for builders, and their suppliers, in the single-family front. Single-family housing starts in September were at a rate of 501,000; this is 3.9% above the revised August figure. Moreover, the August figure was revised upward, from a previously stated 479,000 to 482,000.

Compared with September of last year, total starts declined 28.2%, and single-family starts declined 8.7%. Read more.

September housing construction rises 0.5 percent
By Martin Crutsinger
Source: Associated Press/AP Online

Construction of new homes edged up slightly in September, helped by a rebound in single-family construction. However, in a worrisome sign for future housing work, applications for building permits fell by the largest amount in five months. Read more.

More Signs of Economic Recovery
The decline in consumer spending on home renovation projects is tapering off, and remodeling activity should start to pick up early next year, according to a just-released study by Harvard’s Joint Center for Housing Studies.

The quarterly forecast pointed to several positive signs that could boost home improvement spending, causing a reversal in annual declines by the second quarter of 2010. Read more.

OSHA Inspects Another Member

By Larry Marler


Recently OSHA issued penalties to a CSA member as a result of an inspection done earlier this year. The fines are a whopping $23,000!

The purpose of this article is not to embarrass the business, but to provide a clear idea to our readers and members about the potentially high cost of non-compliance.

The listed violations are as follows:

  • Hazard Assessment Program unavailable
  • Failure to require proper Personal Protection Equipment (PPE)
  • Allowing sawdust and cobwebs to accumulate around electrical equipment
  • Improperly arranged exit routes
  • Unsanitary conditions in restrooms and washing facilities
  • Fire extinguisher violations
  • Improper operation of forklifts, carrying loads too high
  • Guards on rotating shafts and belts missing, etc.

  • You can draw on various resources to avoid these fines and to stay in compliance with OSHA. CSA is here to help. We offer free inspections to help find and fix potential violations at your place of business. To find out more about these free audits or to schedule one, please contact CSA at 678-674-1860.

    ProSales Says "Cowboy" Jackie Allmond of Choo Choo is Best LBM Sales Rep

    By Rick Davis

    At 7:15 on a south Georgia summer morning, the sun is beaming and so is "Cowboy" Jackie Allmond as he stands in the parking lot of Choo Choo Build-It Mart's Rincon yard. With 50 tasks on his to-do list, Allmond knows he's going to be busy today. But he can't dive in just yet: A fellow salesman has stopped Allmond seeking his advice on hurricane-rated floor fasteners, an important commodity in this coastal market.

    Allmond doesn't dismiss the salesman's request with a hurried reply. Instead, he leads the man inside to show the exact piece he should offer the builder. Only after providing technical advice does he move to his office, get organized, and prepare to take off in his tricked-out red Ford F-150 pickup for a day of deal-making. Read more.

    Emerging Trends: Don't Put Me on Your Bid List!

    By Steve OndichCommercial Forest Products

    THIS year has been a rude awakening for many sales professionals. A few years ago, large sales were easily had. In 2009, reps are working twice as hard for smaller sales. Margins are also tight due to intense competition among companies that are willing to sacrifice profits for the sake of staying busy.
    The good news is that unless you've traded in your Blackberry and drive-through Starbucks for a pork-pie hat and a place in the soup line, you're still in the game. The bad news is that you're far from alone.

    Complaining about the bad economy is very 2008. The new water cooler rant is that there are too many companies competing for the same small pool of work. When 30 piranhas are stuffed into a 12-gallon tank, any morsel of food is quickly devoured-yet all of the fish remain hungry.
    As salespeople, we can either accept mediocre results as an inevitable byproduct of the bad economy or we can find a way to distinguish ourselves from the mass of competition. Going back to the piranha analogy, there will not be enough food put in the tank this year. You want to be the lone fish that jumps and catches the morsel before it hits the water.

    One easy way to elevate yourself is to get out of the "bid-list" mentality. Asking to bid jobs or be on someone's bid list is a weak, passive way to solicit business. An inanimate fax machine can be on a company's bid list. You're better than that. In a good economy, working this way yields mediocre results, and we're not in a good economy.

    Here's why I don't like bid lists:
    • You're not the only one receiving that request for quote (RFQ).
    • Bid lists reduce everything down to price. If you have a premium product, your bid is going to look high when compared to an inferior product. It's extremely difficult to point out your product's superiority on a bid list.
    • RFQs are often red herrings. Have you ever walked into a prospect's building and been surprised by some newly purchased materials despite having been erroneously assured that you're on the bid list?
    • Bid sheets create the illusion of an even playing field. Buyers often have a preferred vendor in mind before they distribute RFQs. If you're not the preferred vendor, you have a few strikes against you from the start. The preferred vendor's bid only has to be in the ballpark. You may be the low bidder across the board and still not get the job. Low bids are rejected because "they're too low, something must be wrong." High bids are accepted because "it's not that much more, and we know what we're going to get." It's not spelled out on the RFQ, but it's a reality.
    Here's what you can do:
    • Get the order before it's put out for bid. If you can find out what projects are upcoming before the RFQs go out, you'll have the opportunity to sell before your competition becomes aware of the opportunity. Great sales pitches can easily be drowned out by dozens of mediocre ones. Don't wait. Pre-sell your products.
    • Work to become the preferred vendor. If customers want to give you work, selling becomes exponentially easier. If you're a second- or third-tier vendor, don't assume that you can bid your way to the top tier. Find out why your competition is getting the lion's share of the work. Nine times out of 10, you'll be told it's price. It's probably not.
    Think about it. If you're a purchasing agent, are you going to admit that you prefer one vendor because he lets you use his condo in Palm Springs every year or because the owner likes him? No, you'll give a less accurate, but more respectable answer ("His prices are lower"). Find out what makes your customer tick, then you can decide how to improve your relationship, or if you even want to.
    • Find out what's important to your customer so you can bid accordingly. Don't assume all of the important specs are on the bid list. Maybe you'll be the only vendor quoting product that hits all of their specs. Make sure they know it.
    • Find a good reason to stay on your customer's radar. Repeatedly calling to ask, "Do you need anything?" or "Are you ready to order?" keeps you on their radar, but not in a good way. "I've got a good idea that should save you some money" is a call that your customers will want to take. A busy purchasing agent will often bypass the bid process and give an order to a rep who happens to be on their radar when a job is released. Contact them often, but make sure you have a worthwhile purpose or you'll be put on the dreaded straight-to-voicemail list.

    As a hardwood vendor, my goal is to solve problems and present opportunities to my clients. A proactive approach often gives me the first-and sometimes the only-look at new business.

    - Stephen Ondich is the owner of Commercial Forest Products, Fontana, Ca., a manufacturer and distributor of hardwood products. He can be reached at (909) 256-4583 or sondich@commercialforestproducts.com.

    Brown Lumber Recognized as Alabama Retailers of the Year


    (In this photo - Andrew (l) and Andy Brown (r) with Jim Croome)
    The Alabama Retail Association (ARA) in cooperation with the University of Alabama at Birmingham (UAB) today recognized nine outstanding Alabama retailers as “Retailers of the Year.” The presentations were made at The Club in Birmingham during the UAB School of Business’ 2009 Retail Day Luncheon. This marked the 10th presentation of the Retailer of the Year Awards since 1999.

    Andy and Andrew Brown , owner/general manager and vice president/sales manager, respectively, of Brown Lumber & Building Supply Inc., a third-generation family business in Columbiana, received the Gold Award in the “Annual Sales More than $5 Million” category. Stacy Walkup, executive director of the South Shelby Chamber of Commerce, nominated the Browns for this prestigious award. Read more.

    Tuesday, October 20, 2009

    Webinar: Combustible Dust

    W E B I N A R
    Combustible Dust: Not Just a Grain Elevator Hazard!
    Tuesday, November 17, 2009 at 3:00p.m. (EST)
    $139.00 per logged on computer.

    The combustible dust hazard is not limited to grain elevators; lumber yards and wood working activities are at risk as well. OSHA has had a Combustible Dust National Emphasis Program (NEP) since March 2008. As a result OSHA has increased their educational enforcement actions in this particular area due to a number of explosions resulting from combustible dust.

    This webinar will provide attendees with a basic understanding of the combustible dust issue, discuss critical housekeeping tips, precautions you should take, what standards apply to our industry and recommendations as they pertain to OSHA’s NEP.

    About the presenter – Bill Adams is an Associate with SafeX and is a Certified Industrial Hygienist, Certified Safety Professional, and Certified Professional Environmental Auditor. He has extensive experience in all aspects of health and safety. Bill has assisted manufacturing facilities in designing and implementing health and safety management system programs, including self directed work teams.

    Click on images to enlarge, print and use the registration form.



    NLBMDA News

    Contact Your Senators Today About the Homebuyers Tax Credit
    The Senate Banking Committee will hold a hearing Tuesday, October 20 to hear the latest on the housing market from Housing Secretary Shaun Donovan and industry representatives. Home buyer tax credit champion Sen. Johnny Isakson (R-GA) will also address the committee to press for an extension and expansion of that credit before it expires at the end of November. One option that remains on the table is for the credit to be attached to an extension of unemployment benefits the Senate may vote on this week. Dealers are encouraged to keep calls and letters coming to their Senators to press them to act sooner rather than later to preserve the credit. Visit www.BuildtheVote.org to take action today. Read more here.

    NLBMDA Submits Comments to U.S. Green Building Council on Second Draft of Certified Wood Credit Benchmarks
    On Oct. 14, NLBMDA submitted comments to the U.S. Green Building Council (USGBC) on its second draft of proposed revisions of the benchmarks for the certified wood credit in the LEED rating tool. Currently, wood certified by the Forest Stewardship Council (FSC) is the only wood eligible for credit toward LEED certification. USGBC has proposed a new system of "benchmarks" that any certification scheme could be evaluated against to determine if their certification procedures would be acceptable to USGBC. Read more.

    Health Care Negotiations Continue
    Negotiations continue this week between Senate Majority Leader Harry Reid (D-NV), Finance Chairman Max Baucus (D-MT) and Health Committee member Sen. Chris Dodd (D-CT) to reconcile the competing health bills passed out of those two committees. Reid has stated plans to bring a final reform bill to the Senate floor next week. Read more.

    OSHA Announces Emphasis Program on Recordkeeping
    The U.S. Occupational Safety and Health Administration (OSHA) recently announced it is initiating a national emphasis program (NEP) on recordkeeping to assess the accuracy of injury and illness data recorded by employers. Read more.

    Climate Change/Energy Hearings Set in the Senate
    While most of the health care negotiations are now taking place behind-the-scenes, several Senate committees are gearing up for hearings and mark ups of climate change/energy legislation. The Senate Energy and Natural Resources Committee holds a hearing this Wednesday, October 21, on the costs and benefits of greenhouse gas emissions allowances. The Boxer-Kerry bill (S.1733) is expected to be marked up in the Senate Environment and Public Works Committee following three days of hearings set to begin next Tuesday, October 27.

    Legislation Introduced to Tie Tax Credit for Windows, Doors and Skylights to Energy Star
    On October 15, Sens. Jay Rockefeller (D-WV) and Chuck Grassley (R-IA) introduced legislation that would modify the existing tax credit for energy efficient windows, doors and skylights for 2010 by tying it to established ENERGY STAR® standards for fenestration products. The current $1,500 tax credit, passed as part of the American Recovery and Reinvestment Act (ARRA), limited the tax credit to windows, doors and skylights "equal to or below a U-factor of 0.30 and SGHC (solar heat gain) of 0.30," commonly known as the ".30/.30 standard." Read more.

    FLAME Act Passes Senate
    As part of the 2010 Interior and Environment Appropriations Act, the Senate passed legislation Sept. 28 to create a dedicated fund within the Forest Service to pay for fire suppression activities and prevent forest management funds from being raided during high fire activity years. Between 1999 and 2003, $2.2 billion of the $3.5 billion spent on forest fire fighting was diverted from other programs. The dedicated fund will help ensure other important forest management programs are not disrupted by budget shortfalls. The legislation now goes to conference with the House.

    Have You Subscribed to the NLBMDA Green Update?
    NLBMDA recently announced that it has partnered with MultiBriefs to create the new NLBMDA Green Update, a free, opt-in e-mail resource providing comprehensive biweekly news briefings of interesting stories important to the building material industry. Read more.