Members Urged to Review Compliance with DOT, OSHA, Others… A recent letter from Lee Johnson of Brittney, Inc. shared information about a recent accident and invited members to contact them for assistance with compliance issues. Brittney, Inc. is endorsed and recommended by Mid-America Lumbermens Association to assist members with compliance. Please call them at 417-866-8686. Brittney serves the entire MLA territory.

Congress Overrides Veto to Pass 2008 Farm Bill… The U.S. Senate recently voted to override a presidential veto of the 2008 Farm Bill, making the nearly $300 billion bill the law of the land for the next five years. President Bush vetoed the bill due to concerns about fiscal irresponsibility and what he considered to be a bloated $40 billion in subsidies to an industry that is currently booming amid high global food prices. The bill also includes several new disaster aid provisions and tax relief measures.

"When the sun sets on farm country tonight, hard-working folks can know that this Congress believes in America’s agricultural sector. By voting to override the President’s veto, we did what’s right for farm families across the country," said Senator Max Baucus (D-MT), chairman of the Senate Finance Committee and champion of the farm bill’s disaster assistance provisions and fully funded tax relief measures. "Farm life will never be easy, but the disaster assistance and tax relief in this new law will help American ag producers shoulder the load of providing food and fuel to the world. Strong reforms make the farm bill fairer and require everyone to do their share."

The Senate override passed by no small measure, with only 13 Senators voting to uphold the President’s veto and 82 of them voting to override and make the bill into law. For more information on several of the farm bill’s provisions, click here.

Source: Jacob Barron, NACM staff writer, NACM E-News Weekly Update, May 27, 2008

Ply Mart To Close… Ply Mart, the Norcross, Ga.-based pro dealer, is closing down its operations after struggling with declining housing starts in the Atlanta market. Randy Mahaffey, Ply Mart’s chairman, told Home Channel News that the company is in negotiations to sell its installed sales and stair manufacturing divisions. Its four remaining lumberyards will be closed, Mahaffey said. “We’re selling off our inventory,” he added.

Ply Mart was one of the Southeast’s largest LBM players before the downturn, pulling in $335 million in revenues in 2006, when it operated 14 units in Georgia, North Carolina and South Carolina.

The housing market slowdown hit Atlanta and the Carolinas late, but unfortunately, it still arrived. Housing permits have declined 25 percent in Atlanta, Ply Mart’s primary market, since August of 2007, according to Mahaffey.

During the last 18 months, the company’s accounts receivables ballooned to $20 million. Ply Mart began reducing staff and mothballing lumberyards, and members of the Mahaffey family began pumping their own money into the company to keep it afloat. But it wasn’t enough.

Source: ProDealer Digest, homechannelnews.com, May 28, 2008

84 Lumber Stores Get FSC Chain of Custody Certification… Twenty-six of 84 Lumber’s stores across the country have received Forest Stewardship Council Chain of Custody certification, allowing them to sell FSC-certified material. “FSC-certified products are a value-added service for our increasingly environmentally-conscious customers,” said Kathleen Mannas, green products manager at 84 Lumber, in a press release.

Source: ProSales Business Update, May 28, 2008

Editor’s Note: Are you taking steps to get Chain of Custody Certification? Your wholesale lumber supplier may be able to help you… contact MLA if you have questions.

Weyerhaeuser May Sell Railroads… On Thursday, timber giant Weyerhaeuser announced that it is considering the sale of its Westwood Shipping Line along with four regional short line railroads. The regional lines are the DeQueen & Eastern, Columbia & Cowlitz, MSV, and Golden Triangle railroads, servicing Weyerhaeuser's mills in Arkansas, Oklahoma, Mississippi and Washington.

Source: LBM Daily, May 30, 2008

Gas Prices, Job Worries Erode Confidence… Americans, pinched at the pump and at home, feel increasingly pessimistic about the economy. According to The Conference Board, the Consumer Confidence Index slipped again in May, settling at 57.2. It represents the lowest reading in 16 years for the indicator, which started in 1985.

"Weakening business and job conditions coupled with growing pessimism about the short-term future have further depleted consumers' confidence in the overall state of the economy," explained Lynn Franco, director of The Conference Board Consumer Research Center. "Consumers' inflation expectations, fueled by increasing prices at the pump, are now at an all-time high and are likely to rise further in the months ahead."

There are many reasons for consumers' growing negativity, from sinking home values to spiking fuel prices. The national average price for gas today is $3.937 per gallon, according to the American Automobile Association's Daily Fuel Gauge Report (www.fuelgaugereport.com). Home prices have fallen between 3.1 percent (Office of Federal Housing Enterprise Oversight) and 14.1 percent (S&P/Case-Shiller), depending on the index. Even worse, it hardly matters which figure one uses; both OFHEO and Case-Shiller say the drops are the steepest in the history of their data.

Consumers don't exactly sound hopeful about the workplace, either. One-third (33.6 percent) of respondents told The Conference Board in May that they believe business conditions will get worse during the next six months; 28 percent stated that jobs are "hard to get."

Source: Alison Rice, Senior Editor, Online, Builder Business Update, June 3, 2008

Even as Homebuilders Request Aid from Congress, the House of Representatives Ends Timber Payments Bill… On Thursday, the National Association of Home Builders (NAHB) appealed to Congress for a temporary home buyer tax credit to help the housing market.

"House prices and inventories obviously are central to the outlook for the economy and the financial markets," explained Joe Robson, first vice president of NAHB. "Policies that stimulate home purchases in the immediate future can pay huge dividends and a temporary home buyer tax credit provides the most bang for the buck."

Meanwhile, the House voted 218-193 against the bill, approved by the Senate, that provides funds to rural counties hard-hit by slumps in the timber industry.

Source: LBM Daily, June 6, 2008

Delays Enforcement of Oklahoma Immigration Law… A U.S. District Court judge postponed enforcement of employer-related portions of an Oklahoma immigration law because it is "substantially likely" that the provisions of the law unconstitutionally interfere with federal regulation of the employment of unauthorized workers. Joining as co-plaintiffs are The State Chamber of Oklahoma, Greater Oklahoma City Chamber, Tulsa Metro Chamber, Oklahoma Restaurant Association and Oklahoma Hotel and Lodging Association. A final judgment in Chamber of Commerce of the United States et al. v. Henry is still pending.

Source: U.S. Chamber of Commerce News, June 4, 2008

Palco Gets New Owner… On Friday, a federal bankruptcy judge ruled that Pacific Lumber Company will be taken over by a $525 million joint venture of San Francisco’s Fisher family and an East Coast hedge fund. The judge also would not allow Palco to liquidate 210,000 acres of redwood timberlands.

Source: LBM Daily, June 9, 2008

FUELING CHANGE SURVEY

Workers Altering Their Commutes Due to Rising Gas Prices

Feeling pressure at the pump, many workers are changing their commuting habits to ease the financial burden of rising gas prices, a new survey shows. More than four out of 10 (44%) professionals interviewed said higher gas prices have affected their commutes, up from 34% two years ago when a similar survey was conducted.

Among those who said they have altered their work arrangements, the most common changes they reported making include increased carpooling or ridesharing (46%), driving a more fuel-efficient vehicle (33%) and telecommuting more frequently (33%). Three in 10 said they are looking for a new job closer to home.

The national survey included responses from 539 workers 18 years of age or older and employed full or part time.

Workers were asked, "Have higher gasoline prices affected how you are commuting to work or your work arrangements?" Their responses:

Workers whose commutes have been affected by higher gasoline prices also were asked, "Which, if any, of the following changes have you made because of higher gasoline prices?" Their responses*:

Respondents who said their commutes have not been affected by rising gas prices were asked how much more per-gallon gas prices would have to rise before impacting their work arrangements. The mean response was $1.14.

The survey also found that employers are launching a variety of initiatives to ease the burden on employees. The most common benefits companies are implementing to offset the rising cost of commuting, according to those interviewed, are increased mileage reimbursement for travel, ridesharing or vanpooling programs and subsidized transportation. Almost six in 10 respondents (59%), however, said their companies are not offering programs to alleviate higher gas costs.

Workers were asked, "What benefits, if any, is your company implementing or planning to implement to offset the rising cost of commuting?" Their responses*:

"Employers may be missing an opportunity to improve morale and reduce turnover by helping their staff cope with the burden of rising gas prices. Often, it can be as simple as communicating to employees what programs are already in place," said Max Messmer, chairman and CEO of Robert Half International and author of Human Resources Kit For Dummies®, 2nd Edition "Companies can build loyalty and motivation by showing employees that they are empathetic to their concerns during challenging times."

Source: Robert Half International and NACM E-News Weekly Update, June 3, 2008

MEMBER NOTES

George Ollie Jr….It is with regret that we inform you of the death on May 28 of George Ollie Jr. of Geo. Ollie Lumber in Poteau and Pocola, Okla. Services were held on May 31 at the First Christian Church in Poteau. He was the brother of Gradie Ollie Sr. and father-in-law of Jerry Hetherington. You may make a contribution to the charity of your choice in his name.

WILL YOU BE OPEN FOR BUSINESS?

A community cannot survive a disaster unless businesses like yours survive, and a business cannot survive unless its employees survive.

Federated has become a member of the Institute for Business and Home Safety (IBHS), a national nonprofit group that works to reduce commercial and residential property losses associated with extreme weather events and natural disasters. As a result, many valuable resources, relating to disaster and recovery planning are available to you and your employees at no cost.

One of the exciting new programs available through IBHS is called Open for Business ®. It contains a variety of tools for small business owners to reduce their potential for loss should disaster strike, and to reopen quickly should they be forced to close. Open for Business is designed to walk a business owner through the steps to develop a continuity plan to keep a business profitable after a disaster. It is available online or in a print version.

The IBHS web site includes a ZIP Code tool designed to concentrate the efforts of a business in preparing for specific perils. By entering a ZIP Code, IBHS provides customized results for the disasters most likely to occur in your area. These guides are critical to your business and may also be used for your home. Your employees may also benefit from these guides and from additional information available at www.disastersafety.org.

These are just a sample of the many valuable features available to you through IBHS. In addition, as a Federated client, you can access tools to create your own customized disaster planning and recovery program through the Open for Business program. Your secure information will be saved online to be available whenever you may need it.

Federated Insurance and IBHS believe that together we will make a difference in helping secure long-term financial success to small businesses throughout the country.

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

 THOUGHT FOR THE DAY

“Women and cats will do as they please, and men and dogs should relax and get used to the idea.”

--Robert A. Heinlein