Plan to Attend 2008 Fall Fling

Emerald Ash Borer Found in Missouri

A Big MLA Thank-You

Save the Date

Virus/Scam Alert

Bankruptcy Numbers Near Million Mark

Findings from July 16 Forum on Eco-Labeling

Analysis of FTC "Red Flag" Rule

LP Closes Two OSB Mills

Treasury takes over Freddie Mac, Fannie Mae

Federal Agency Regulations Update

PrimeSource Purchases Assets of Compass Internat'l

Uncover a New Profit Center

Today's Quote

The “Fall Fling” is the Annual meeting of MLA members. Thanks to members’ enthusiastic response, we are continuing this outstanding event and it keeps getting better. This year’s seminar on Friday, November 7, will be “Benchmarking for Excellence” – a  fact-filled half-day program presented by Mike Butts of LBM Solutions. This seminar will provide the independent lumberyard with the tools necessary to benchmark or “baseline” their entire operation.

LAKE WAPPAPELLO-State and federal officials are working overtime to determine the extent of an emerald ash borer infestation at Lake Wappapello and develop a strategy for containing the problem.

The infestation came to light July 23 when U.S. Department of Agriculture (USDA) scientists discovered seven suspicious beetles on traps at the U.S. Army Corps of Engineers' Greenville Recreation Area in Wayne County. Officials with the USDA confirmed the identity of the insects Friday.

Collin Wamsley, state entomologist with the Missouri Department of Agriculture, said his agency and the Missouri departments of Conservation and Natural Resources are prepared to deal with the infestation. Before proceeding, however, both state and federal agencies need to determine its extent.

"Although it is a disappointment to find the early detection of the emerald ash borer, it is not a surprise," said Wamsley. "We have been preparing for an event like this for some time. Right now, we are doing what we can to determine the location of the emerald ash borer. We hope to have that information soon and begin the next steps in battling this pest."

Wamsley said the first steps that will be taken include conducting visual searches for emerald ash borers and placing more traps around the initial detection site. This is under way. The results of these surveys will dictate further actions.

The emerald ash borer is a small, metallic green beetle native to Asia. Its larvae burrow into the bark of ash trees, causing trees to starve and die. While the emerald ash borer does not pose any direct risk to public health, it does threaten Missouri's ash tree populations.

Ash trees make up approximately 3 percent of forests and 14 percent of urban trees in Missouri. Since no ash trees in North America are known to be resistant to the pest, infestations are devastating to these tree species.

Missouri is the ninth state to have a confirmed emerald ash borer infestation. The pest was first found in Michigan in 2002. Since that time, seven other states (Ohio, Indiana, Illinois, Maryland, Pennsylvania, West Virginia and Virginia) have confirmed infestations. Missouri is the farthest south and west of any other known emerald ash borer infestation.

The emerald ash borer trapping effort that revealed the infestation is part of a monitoring program started in 2004. It is Missouri's contribution to a nationwide early detection effort coordinated by USDA in partnership with the Missouri Departments of Agriculture, Conservation and Natural Resources and the University of Missouri.

Emerald ash borer traps are purple, prism-shaped devices with sticky outer surfaces. The borers are attracted by the color and by chemical scents that mimic a stressed ash tree. Insects that land on the traps are stuck and can be identified by periodic checking. So far, emerald ash borers have not shown up on any other traps throughout the state.

Although adult emerald ash borers are strong fliers, they are less likely to travel long distances when plenty of host trees are available nearby. However, they can move long distances on firewood and nursery stock. State officials urge Missourians not to transport firewood from one site to another. Instead, they suggest that campers buy firewood
locally.

"The discovery of this highly destructive pest at a campground is a strong indication that it probably arrived in firewood," said Conservation Department Forest Entomologist Rob Lawrence. "If people knew how devastating this insect can be, they would never consider
bringing firewood from out of state."

For further information about the emerald ash borer, visit www.mdc.mo.gov/firewood, or call Wamsley at 573-751-5505 or Lawrence at 573-882-9909 x.3303.

 Federated Insurance

Virus/Scam Alert… We received this virus alert and wanted to pass it on to you. It IS real; it checked out with Snopes.com. Click on the link below to read more about it.

The newest virus circulating is the “UPS or Fed Ex Delivery Failure.” You will receive an email from UPS or Fed Ex Packet Service along with a packet number.  NOTE: The word packet is misspelled on this line. It will say that they were unable to deliver a package sent to you on such and such a date. It then asks you to print out the invoice copy attached. DON'T TRY TO PRINT THIS. IT LAUNCHES THE VIRUS! Pass this warning on to all your PC operators at work and home. This virus has caused millions of dollars in damage in the past few weeks.

Check it out at: http://www.snopes.com/computer/virus/ups.asp

Source: Michigan Lumber & Building Material Dealers Association

Bankruptcy Numbers Near Million Mark for 12-Month Period Ending June… Bankruptcy numbers for the 12-month period ending June 30, 2008 came close to the million mark, with 967,831 bankruptcies filed, representing a 28.9% increase compared to the 751,056 filings for the 12-month period ending June 30, 2007. The statistics, released by the administrative office of the U.S. Courts, also showed that business filings totaled 33,822 in the 12-month period ending June 2008, up 41.6% from the 23,889 reported in the same period a year ago.
 
On a quarterly basis, filings for the third quarter of 2008 were the highest of any quarter this year, topping out at 276,510, compared to 226,413 in the first quarter of 2008 and 245,695 in the second. This quarter also marked the highest quarterly filings since the Judiciary’s first fiscal year quarter in 2006, the quarter after the tenets of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) went into effect. Filings surged in the last two quarters of 2005 due to the rush of filings prior to the BAPCPA and topped out at 667,431, dropping to 116,771 in the first quarter of 2006. Since then, filings have increased consistently every quarter.
 
Chapter 11 filings specifically rose by 30.6% to 7,293 for the 12-month period ending June 2008, compared to 5,586 filings during the same period a year prior.

Source: Jacob Barron, NACM Staff Writer, NACM National eNews Weekly Update, September 2, 2008

The NLBMDA Institute presented its findings from the July 16^th Forum on Eco-Labeling for Dimensional Lumber to the American Lumber Standards Committee (ALSC) on Aug. 27.  Trustee Valerie Hansen presented on behalf of the Institute.  The ALSC members were very engaged in the discussion and quizzed Hanson on the findings from the Forum, which demonstrated broad support on the part of lumberyards, component manufacturers, and home builders for an eco-labeling system. The expected 15-minute presentation stretched to over an hour and half and drew nearly 20 ALSC committee members.  The chair of the committee commended the industry for taking on this important issue and asked for a follow-up report at the ALSC November meeting.  For more information on the findings of the July Forum, visit the NLBMDA  webpage at www.NLBMDAInstitute.org.

Source: NLBMDA Bi-Weekly Update, September 5, 2008

NLBMDA has prepared an analysis of the new Federal Trade Commission (FTC) “Red Flag” rule, which goes into effect on November 1, 2008.  Responding to continuing concerns about identity theft, the rule was promulgated as required by the Fair and Accurate Credit Transactions (FACT) Act of 2003.   The FACT Act added several new provisions to the Fair Credit Reporting Act of 1970 (FCRA) and directs the various banking regulators and the Federal Trade Commission (FTC) to issue joint regulations and guidelines regarding the detection, prevention, and mitigation of identity theft.

The FTC regulations will apply to non-financial institutions that may engage in the extension of credit within the meaning of the new rules.  The NLBMDA analysis is limited to those provisions and aspects of the new rule within the jurisdiction of the FTC.

The new rule requires creditors to implement “a program to detect, prevent, and mitigate instances of identity theft.”  The program, if required, must be in place by November 1, 2008, and “must provide for the identification, detection, and response to patterns, practices, or specific activities – known as “red flags” – that could indicate identity theft.”  FTC staff has emphasized the intended flexibility of the new rule as the rule applies to business accounts and the determination of the risk of identity theft relating to such accounts.  To obtain a copy of the analysis, visit the NLBMDA website here:  http://www.dealer.org/KB/KB_SingleWebPage.php?KBID=1511.

Source: NLBMDA Bi-Weekly Update, September 5, 2008

LP Closes Two OSB Mills… Last week, Louisiana Pacific announced indefinite closures for two OSB mills; one in Chambord, Quebec and the other in Athens, Georgia. The two mills produce an estimated 815 million square feet.

"We are faced with one of the weakest housing markets in decades, which has substantially reduced the demand for OSB. In these conditions, we simply cannot justify running these mills. With these closures, we should improve our operating efficiencies while satisfying all the needs of our customers," says OSB executive vice president Jeff Wagner.

Source: LBM Daily, September 8, 2008

Treasury Department Takes over Freddie Mac, Fannie Mae… In another new twist in the struggling mortgage market, the federal government has placed the country’s top two mortgage lenders – government-sponsored entities Fannie Mae and Freddie Mac – under the “conservatorship” of the Federal Housing Finance Agency (FHFA), effectively putting the two companies under government control.

The “up to” $200 billion bailout of the organizations potentially saddles taxpayers with billions of dollars in losses.

The announcement came Sunday, as the federal government sought to stabilize the mortgage giants, which combined hold nearly 50 percent of the country’s $12 trillion in mortgages, including 70 percent of all new home loans. In the past year, the two companies have lost approximately $14 billion.

Treasury Secretary Henry Paulson told media outlets the move was meant to restore stability to the crumbling housing market, a stabilizing plan necessary to help the nation’s economy and financial markets regain their footing.

As part of the move, the federal government also will replace the CEOs and boards of directors at the mortgage giants. Fannie Mae CEO Daniel Mudd has already been replaced by Herbert Allison, former CEO of TIAA-Cref; while Freddie Mac CEO Richard Syron has been replaced by David Moffet, vice chairman of U.S. Bancorp.

The Treasury's takeover is primarily meant as a stopgap measure to keep the two companies floating until next year, when a new presidential administration will determine the long-term future of Fannie and Freddie.

Source:  Home Channel News, ProDealer Digest, September 10, 2008

Federal Agency Regulations Update… With the Fair and Accurate Credit Transactions (FACT) Act Compliance Deadline just about six weeks away, NACM National would like to provide you with some important facts regarding the legislation. Here is what you need to know: 

• Not all companies will be affected. Most companies will not be affected by the new legislation regulating red flags. Those businesses that will be affected include banks, credit unions, and mortgage brokers, but also utility companies, telecommunications companies, healthcare providers, debt collectors and auto dealers.

• The legislation is designed to prevent Identity Theft. The regulations require businesses extending credit to customers to have comprehensive programs in place for verifying an applicant’s identity, and for taking specific actions if a potential fraud is detected.

• Deadline for compliance is November 1, 2008. Although implemented in January, these new “Red Flag” rules will officially go into effect on November 1.

To obtain more information about the requirements of FACTA, members can download this PDF from the FTC.

Source: NACM, September 15, 2008

PrimeSource Purchases Assets of Compass International… PrimeSource Building Products, Inc., the country’s largest full-service wholesale distributor of building materials and purveyor of construction fasteners worldwide, is purchasing the assets of Compass International, Inc., originator, marketer, and distributor of the well-known MARKER and DARTS fasteners. Compass International is headquartered in Anaheim, Calif., with additional offices in Chicago, Houston and Atlanta.

Ken Fishbein, Co-Chief Executive Officer of PrimeSource, says customers of both PrimeSource and Compass International products should expect normal business operations to continue throughout the course of the transaction. Existing Compass customers will soon be able to purchase items from the Grip-Rite family of products along with their usual orders. Terms of the acquisition were not disclosed.

Source: PrimeSource, September 10, 2008

Uncover a New Profit Center

Examine losses to find savings

Business owners are attuned to profit statements, whether looking at in-store sales, average operating income per location, or measuring results per profit center. But, are you well-informed about your insurance loss experience?

§         Do you know the types of losses and the number of each type at each location?

§         Do you realize the impact of those losses on your bottom line?

§         Is someone responsible to monitor losses ... possibly a designated risk manager?

§         Are losses analyzed at least annually, or better yet, quarterly?

A loss analysis provides a systematic method of categorizing loss data to identify accident trends and pinpoint work activities, locations, employees, equipment, materials, and environmental conditions commonly associated with accidents. Your loss analysis should show both the frequency (number) and severity (cost) of losses. Many times the frequency does not correspond with severity. Using a chart or graph will make it easier to watch trends.

Your loss history can be ordered from your business insurance provider. Enter the data into a spreadsheet and sort the loss information into specific categories meaningful to your operation. The results should help you develop an action plan to reduce the possibilities of future losses. You can also compare your organization’s losses with others in your industry.

Each year, Federated analyzes losses to show frequency and severity of losses for various industries. Compare your company’s loss analysis with these results and take advantage of risk management resources specifically designed to help eliminate specific types of losses. You just may uncover a new profit center opportunity through risk management.

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

 THOUGHT FOR THE DAY

“Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it.”   -- Will Rogers