Vol. 7, No. 7 – April 1, 2008

GREEN BUILDING – WHAT DOES IT MEAN?

As your customers, particularly builders, start requesting more “green” options, wouldn’t you like to be the expert they turn to as a resource on this timely issue?

On March 31^st, LBM Institute (LBMI), the educational arm of the National Lumber and Building Material Dealers Association, sponsored a four-hour Green Building Forum featuring speakers that focused attention on the various rating systems available to designate commercial buildings and residential properties as “green.”

Valerie “Val” Hansen, Big Buck Building Centers, Inc., Racine, Wis., provided a presentation as a trustee of the LBMI. LBMI has adopted this resolution: “LBMI respectfully requests the American Lumber Standards Committee (ALSC) to adopt a new eco-forest management standard, accredit agencies to certify the standard, and establish a corresponding eco-label (grade stamp).” The intent of the resolution is to support the reliable and efficient movement of lumber from eco-managed forests, to mills, through the distribution channel, to job site. Their position is the eco-label/grade stamp would document origin of product (replacing chain-of-custody) and become the industry standard – a cost-effective, tested, totally reliable solution.

Just as you rely on the grade stamp on your lumber to tell you what you need to know about it, an “eco-label” would inform you and your customer about the origin of the product (where it comes from and what has been done to it).

The current chain-of-custody standard is cumbersome and, if you, as dealer, have not been certified, you break the “chain-of-custody” when you purchase FSC (Forest Stewardship Council – www.fsc.org) lumber, rendering the lumber no longer certified. You can obtain chain-of-custody certification through the Rainforest Alliance (click here for two-page application). Lumber is the only building product that has to bear this chain-of-custody paperwork.

There are several rating systems in the marketplace and they vary in price, availability and acceptance. They are:

Green Globes – Green Building Initiatives purchased the license to Green Globes from a Canadian organization. Their web site is www.thegbi.org. They offer a 30-day trial of their software package. They are urging market-driven solutions vs. legislation to enact green building standards. From their web site, you can link to DSIRE: Database of State Incentives for Renewables & Efficiency showing incentives offered in various states.

National Green Building Standard – This is a new certification process from the National Association of Home Builders. The final release of this system will be available in May. NAHB has set up special web sites around the green building issue and standards: www.nahbrc.org/gbstandard and www.nahbgreen.org . NAHB estimates that 10 percent of homes built in 2010 will be “green” homes, up from just two percent in 2006. The NAHB standard has been submitted for ANSI approval, which is anticipated soon.

(If you participate in your local NAHB chapter, you already receive Green Builder magazine. If not, go to www.greenbuildermag.com to subscribe – most of you will qualify for a free subscription.)

Energy Star Qualified Homes – Everyone is already familiar with the Energy Star label, as it appears on appliances and other products, which is probably one of the greatest advantages this system has: high level of familiarity among consumers. There currently are 850,000 homes with the Energy Star label, and they anticipate the number to rise to one million by year-end. This rating system, like the others, is focused on the efficiency and performance of the home. In our industry, we tend to get “lumber-focused” sometimes, but there is much, much more that these rating systems cover: air flow, thermal flow and moisture flow are measured. When looking at insulation, it’s not just about the R-rating but how it is installed. High performance equates to lower utility costs, so it is as much about performance as the products that go into the home or building. For more information, visit www.energystar.gov/homes.

LEED for Homes – According to the Green Building Council (www.gbc.org), “LEED for Homes is a voluntary rating system that promotes the design and construction of high-performance green homes, including affordable housing, mass-production homes, custom designs, stand-alone single-family homes, duplexes and townhouses, suburban low-rise apartments, urban high-rise apartments and condominiums and lofts in historic buildings.” Even though affordability is touted, LEED is one of the more expensive rating systems. Energy Star is the starting point, so this rating system goes several steps beyond an Energy Star home. Currently, there are 12,000 homes registered to receive the LEED for homes certification and 600 are fully certified. (The certification process takes 12 months to complete.) This rating system can also be used for renovations. Visit www.regreenprogram.org for guidelines for “greening” an existing home. Their consumer site is www.greenhomeguide.org.

Finally, LBM Journal is offering its own Certified Green Builder program, which is an online education program to learn about green building – products and processes. For more information, visit www.lbmjournal.com.

There is sure to be much more information to come on green building, certification programs and rating systems. This is a quick overview that we hope will help you in the “greening” of your company and the products you offer. While “green” is a good idea now, it is likely to be mandated or at least receive tax incentives in the future as everyone becomes more concerned and mindful of the use of natural resources and each person’s impact on the environment.

Footnote:

Green building continues to be at the forefront on Capitol Hill. In a January bill to reauthorize a Housing and Urban Development (HUD) community development program, language was originally included that mandated non-residential projects be certified under LEED. NLBMDA and allies, concerned that this language would be incorporated into other building-related bills this year, successfully lobbied to have rating-system neutral language inserted instead.

NLBMDA continues to advocate against government mandates that would inhibit competition in the green building industry.

(To read an in-depth article on receiving the certification for chain-of-custody for FSC and SFI lumber, go to:

http://www.prosalesmagazine.com/Industry-news.asp?articleID=599116 )

2008 COST OF DOING BUSINESS SURVEY

You run a profitable business, but there is room to grow. See firsthand how you stack up against your competition and learn how to grow your business by participating in the NLBMDA Cost of Doing Business Survey.

The Cost of Doing Business Survey will provide you with forecasted financial statements and cash flow analysis for key profit variables such as projected sales change, gross margin, inventory turns, salary and other expense changes based on last year’s performance. Participate in the survey and receive your individualized report and industry analysis for only $150.

To complete the survey, please contact Jim Enter at jim@aaroundtables.com to receive a password and security code to complete the survey. Survey Deadline: May 2, 2008.

BOB AIKEN SCHEDULED FOR AREA SEMINARS

MLA will provide Bob Aiken’s popular plumbing and electrical sales seminars in August. Scheduled for August 21-22 in St. Louis and August 25-26 in Wichita, Bob Aiken will help your employees better understand these important topics to boost your sales.

HOW TO SELL PLUMBING SUPPLIES

This seminar is designed to present product knowledge through a combination of classroom and hands-on training, as well as teaching selling skills to retail salespeople. Both beginners and experienced store personnel will benefit greatly from Bob Aiken’s 35+ years of retail and plumbing experience. This seminar is fast-paced, entertaining, interactive and informative. Attendees will leave with a better understanding of electrical products and their uses, and be able to sell the correct plumbing items to consumers.

Topics covered include:

Ø How a plumbing system works

Ø Types of shock arrestors and why they are needed.

Ø Valves-different types and their specific uses

Ø Selling and repairing faucets

Ø Different types of pipes and where you can use them- CPVC, PVC, Copper, PEX, PE, ABS and PB

Ø Soldering

Ø Installing a garbage disposal, dishwasher, air-gaps, ice-maker and under-sink drainage.

Ø Water heaters

HOW TO SELL ELECTRICAL SUPPLIES

This seminar is designed to present product knowledge through a combination of classroom and hands-on training, as well as teaching selling skills to retail salespeople. Both beginners and experienced store personnel will benefit greatly from Bob Aiken’s 35+ years of retail experience and electrical training. This seminar is fast-paced, entertaining, interactive and informative. Attendees will leave with a better understanding of electrical products and their uses, and be able to sell the correct electrical items to consumers.

Topics covered include:

Ø How an electrical system works

Ø The difference between 120 Volts and 240 Volts

Ø Dryer and range wiring – 4 wire vs. 3 wire

Ø Understanding electrical panels and grounding

Ø Breaker types and uses – what can be used where

Ø Fuses – types and uses

Ø Cables, cords and uses.

Ø Metal vs. plastic boxes, and how to select the right size and type.

Ø Wiring a variety of residential circuits.

Ø Understanding receptacles and switches, including GFCIs and AFCIs, Single-pole, double-pole, three-way switches.

Locations for programs and registration information will be forthcoming in April. For now, mark your calendar and give thought to who from your store would benefit from this outstanding training opportunity.

SAVE THE DATE

May 1-2 - Missouri Swing-into-Spring Event

June 13 - Kansas Sunflower Shootout

August 21-22 – Plumbing and Electrical Seminars – St. Louis

August 25-26 – Plumbing and Electrical Seminars – Wichita

October 1-4 – NLBMDA Industry Summit – Chantilly, Va.

Nov. 6-7 – MLA Fall Fling

Call the MLA Office – 800-747-6529 – for additional information or email: mail@themla.com

NLBMDA Offers Delivery & Fleet Safety Certification Program

The National Lumber and Building Material Dealers Association and LBM Institute have completed production of Delivery & Fleet Safety, the only load transportation training program specific to the lumber and building material industry. The LBMI project is designed to protect people, product and property at lumberyards nationwide.

The full Delivery & Fleet Safety program includes the training video on VHS and DVD, one trainer’s guide, 10 operator training workbooks and program completion certificates, and one full-color poster outlining the program’s concepts.

To help dealers train their employees to be a more safe, productive and efficient workforce, a Delivery & Fleet Safety order form can be downloaded at www.dealer.org or call NLBMDA and the LBM Institute at 800-634-8645. The full program is $199 for members and $349 for nonmembers.

LUMBER NEWS – QUICK GLIMPSES

Immigration Penalties Increase March 27… In the absence of immigration reform legislation, the federal government is stepping up enforcement and penalties against businesses who hire illegal immigrants. Beginning March 27, fines for knowingly employing an illegal immigrant will increase to as much as $16,000 per employee, and fines for non-fraudulent paperwork violations will increase to $1,100 per violation. Visit the DHS web site to make sure you are filing the correct paperwork for new hires: www.dhs.gov/ximgtn.

Source: NLBMDA Advocate, March 2008

Politics at the Office is Recipe for Disaster… No matter what your political affiliation, it’s hard to avoid the controversy and media attention surrounding this year’s election. Unless you’ve been isolated on a desert island, you’re bound to be exposed to other people’s opinions and preferences regarding the presidential race.

The good news is that by mid November, who is or isn’t the best candidate will be a moot point. But in the meantime, there are political-discussion booby traps wherever you go. And these situations – in or out of the office – with co-workers can be particularly hazardous. Read more….

Source: Connie Glaser, bizjournals.com, cited in U.S. Chamber SmartBrief, March 19, 2008

Feeling Stressed? Check Out "10 Things to Do Now to Thrive in Today’s Market"… Not every dealer is suffering as much as the biggest ones. What are they doing differently? Craig Webb, Editor, ProSales magazine, compiled many findings from his recent travels into a free half-hour webinar called "10 Things to Do Now to Thrive in Today’s Market." Click here to register for the Webinar and within half a minute you’ll be able to start watching the program. Just make certain your computer has speakers attached so you can hear his commentary. It’s free, and you can watch it anytime day or night. Go to the Webinar

Source: Craig Webb, Editor, ProSales Business Update, March 19, 2008

Work/Life Balance… A recent study by authors Hewlett and Luce, as quoted in the Harvard Business Review, [shows that] a third of workers under 44 years old who work 60 or more hours per week are likely to quit within the next couple of years. Only 19 percent of workers older than that were ready to leave. To younger employees, the extra hours are a big turnoff. Generation Y (28 and under) often make a job decision based on the number of hours they must work vs. the number of hours they have to play. Balance is a key to their lives. Look at the positive side: Workers that are less stressed and fatigued are more productive while at work.

Source: Bob Losyk, MEd., M.B.A., C.S.P. is a Certified Speaking Professional, master trainer, author, and President & CEO of Innovative Training Solutions, a Greensboro, NC consulting firm. For more information on Bob’s keynotes, seminars, best practices facilitation, panel discussion leader, and products, please visit his web sites at www.boblosyk.com and www.getagriponstress.com or call 1-800-995-0344.

D.R. Horton Hit with Lawsuit by Union… It was announced on Thursday that the New Jersey Regional Council of Carpenters filed a class action suit against D.R. Horton, one of the largest homebuilders in the U.S. The suit was filed in New Jersey Superior Court under the state's new Construction Industry Independent Contractor Act. The Union apparently is accusing the homebuilder of tax evasion: As an employer, D.R. Horton allegedly avoided paying social security and other taxes on a portion of its employees.

"This is about protecting all of us – protecting our state and protecting working people. It hurts New Jersey because we all pay more for schools, highways, health and welfare benefits, and other services when lawbreakers find ways to scam the system," announced Frank Spencer, Eastern District Vice President, United Brotherhood of Carpenters. "It's especially troubling during a state fiscal crunch. Not only does it take funds away from vitally important state programs, it also depresses the wages of all construction workers."

Source: LBM Daily, March 21, 2008

Latest Farm Bill Proposal "Dead on Arrival" in Senate… The latest outline for spending on the still unfinished 2008 Farm Bill has been called "dead on arrival" with Senator Max Baucus (D-MT), chairman of the Senate Finance Committee, and several other Senators. Baucus, who is also a senior member of the Agriculture Committee, led his own committee to create a fully offset $5.1 billion disaster assistance fund, but refuses to support the current bill, which cuts that fund in half.

"This new farm bill proposal is dead on arrival. I won't vote for or help to fund any agreement that does not do disaster assistance right for our farmers in need," he said. "I bet other Senators will feel the same."

Baucus noted that the National Farmers Union (NFU) made a stable and permanent system its first priority for the latest farm bill and noted that the Finance Committee had compromised funds in order to allow the Agriculture Committee to pursue other priorities. "The Finance Committee did something it's done nowhere else," he said. "Finding resources and freeing up funds for the Agriculture Committee to pursue priorities like nutrition programs."

"If we continue to work together, we can keep America's farmers from getting the short end of the stick on disaster assistance," added Baucus. "This proposed agreement isn't good enough."

Negotiations on this year's Farm Bill are ongoing.

Source: Jacob Barron, Staff Writer, NACM E-News Weekly Update, March 25, 2008

84 Lumber consolidates in six markets … 84 Lumber closed nine stores today as part of a consolidation plan in six markets. The shuttered units whose operations will be moved to nearby locations are: Frederick and Seabrook, Md.; Omaha, Neb.; Covington, Ga.; Loveland, Colo.; Tampa and Sarasota, Fla.

The company closed its Sacramento, Calif., store and truss plant on March 17. Customers of that location will be serviced out of Auburn, Calif., which was expanded last year, and 84 Lumber will contract with a third-party truss fabricator.

The industry’s third largest pro dealer has also closed its location in Santa Rosa, Calif., thereby exiting the market, according to today’s announcement.

In the privately held company’s most recent financial statement, released last month, 84 Lumber reported revenues of $3.1 billion for 2007, a 21 percent drop from its revenues in 2006. It reduced its head count by 175 positions at its headquarters during that time period. Approximately 850 additional employees were cut at other locations.

Source: Home Channel News, March 25, 2008

New-Home Sales Move Down Further In February… Sales of new single-family homes fell by 1.8 percent in February to a seasonally adjusted annual rate of 590,000 units, according to newly released numbers from the U.S. Commerce Department. This sales pace was nearly 30 percent below a year earlier and down by 58 percent from the peak in July 2005.

“Builders have been pulling out all the stops to sell homes and narrow the supply of units on the market,” noted Sandy Dunn, a home builder from Point Pleasant, W.Va. and president of the National Association of Home Builders (NAHB). “Unfortunately, buyer demand remains very weak heading into the spring home buying season. Clearly, Congress needs to act decisively upon its return from recess next week to enact measures that will keep housing from dragging the economy into a recession.”

Source: National Association of Home Builders, March 26, 2008

Potlatch to Permanently Close Down Arkansas Mill… Citing the tanking market, Potlatch announced on Thursday that it has decided to permanently close its Prescott, Arkansas lumber mill. The Prescott mill's main product is southern yellow pine dimensional lumber, used in residential home construction and the demand has weakened as the housing crisis worsened.

“Our Prescott employees have done exceptional work over the years and we regret that despite those efforts the operation is not viable,” announced Manufacturing Manager Brad Fountain. “We will work with state and federal agencies to help lessen the impact of the closure for our employees.”

Source: LBM Daily, March 28, 2008

BLS Reports… The Bureau of Labor Statistics (BLS) issued a report on Compensation Costs for 2007 that details significant differences between private- and public-sector employee compensation and benefit trends. Compensation costs for private-sector employees rose on average 3.0% in 2007 as compared to 3.2% in 2006, while their benefits costs rose 2.4%. For state and local government employees, compensation costs rose 4.1%, the same as in 2006, while their benefit costs rose 5.5%. Go to www.bls.gov.

Source: Milliman Monthly Benefit News and Developments, March 2008

FMCSA Proposed Changes… NLBMDA was asked by dealers to weigh in on a proposed rule at the Federal Motor Carrier Safety Administration (FMCSA) that would significantly increase the driver training requirements to obtain a commercial drivers license (CDL). Currently regulated at the state level, the new proposal would mandate 120 hours of training at an accredited driving school for a Class A license, and 90 hours for Class B or C licenses. Dealers are concerned that this would drastically impair their ability to hire new drivers in a cost effective and timely manner. NLBMDA is filing comments on the proposed rule, and has provided input to the Small Business Administration (SBA) to incorporate the building supply industry’s perspective in their comments.

Source: NLBMDA, Your National Perspective, Winter 2008

A Matter of Timing

Prompt Claims Reporting Can Enhance Service

By promptly reporting claims and maintaining good records you can help us fulfill our promises to you.

Here are some helpful tips:

· Designate one person to report claims promptly to our claims office.

· Take pictures of your building, both inside and outside before the loss. Include computer equipment, stock and any tools or specialized equipment. Store the photos away from your business premises and update them yearly or as major changes occur.

· Document sales, purchases and expenses to help determine values in a business income loss.

· Record vendor agreements, dates of sales, products sold and dates of repairs to help in product liability claims.

· Keep receipts for equipment and tools to verify age and costs of items.

Set a procedure for reporting workplace injuries and help your employees understand why these steps will help reduce claims expenses and lost time.

This article provided courtesy of Federated Mutual Insurance Company, your association’s recommended insurer.

MLA is proud to endorse….

THOUGHT FOR THE DAY

“Few things help an individual more than to place responsibility upon them, and to let them know you trust them.”

- Booker T. Washington

Many thanks to Bryn Myers, Economy Lumber & Hardware, Warrensburg, Mo. for sending us a copy of daughter Katie's Letter to the Editor in the March 21 edition of The Daily Star-Journal. Katie, who has started an environmental club at the local high school, wrote an inspired letter urging their community to sign on to Earth Hour after reading about it in the last issue of the MLA LINE. Katie also is making a short film regarding Earth Hour to show on "Tiger Talk," the high school TV program. We love hearing about members' local news and activities!