Mid-America Lumbermens Association

MLA LINE

Lumber Industry News Express

 

Vol. 8, No. 23 November 16, 2009

 

 

In this issue:

2009 Fall Fling a Success

Thanks to Fall Fling Sponsors

NLBMDA Applauds Passage of Key Legislation

Save the Date

Lumber News

New Home Inventories Continue to Improve

FTC Extends Enforcement Deadline

New EEOC Poster Required

Welcome Back

2010 Outlook Positive for Lumber Demand

Feud Continues Between Wood Certifiers

Who is Liable for Green Building Performance?

Scam Alert

Preparing for a Pandemic is Serious Business 

Today's Quote

 

 

Watch for Survey!

 

ProSales magazine plans to launch an online survey in which they will ask dealers to summarize how things have gone for them in 2009 and give their economic and operational outlook for 2010. Watch for an email later this week and take some time to respond. ProSales will share their results with MLA and participants.

 

 

2009 FALL FLING A SUCCESS

 

If you were not among the dealers who attended the MLA 2009 Fall Fling, you missed a great meeting and important information.

 

Mike O’Brien, NLBMDA President, updated us on current national issues, including the housing stimulus package, health care legislation and more.

 

Our keynote speaker, Phil Mitchell, Discovery-Based Retail, gave an inspiring presentation on “Making Your Spot Shine.” He cited some interesting studies on retail and store design to inspire members to rethink their store layouts.

 

MLA also introduced their new officers and directors for 2010:

 

President

Gary Smith, Smith & Sons Building Center, Inc., Anadarko, Okla.

 

1st Vice President

Brad Isdell, Town & Country Building Supply, Higginsville, Mo.

 

2nd Vice President

Ken Blackmon, Ken’s Discount Bldg. Materials, El Dorado, Ark.

 

3rd Vice President

Kevin Rasure, Rasure Lumber Do It Center, Goodland, Kan.

 

Immediate Past President

John Duncan, Schmidt Builders Supply, Inc., Topeka, Kan.

 

NLBMDA Representative

Woodie Acord, Acord’s Home Center, Eureka Springs, Ark.

 

Secretary/Treasurer

Ed Page, Bowling Green Lumber Co., Bowling Green, Mo.

 

Missouri/Arkansas Director

Bob Scruggs, Scruggs Lumber, Jefferson City, Mo.

 

Kansas/Oklahoma Director

Curt Pfannenstiel, Heartland Building Center, Hays, Kan.

 

State Cmte. Chairman - AR

Greg Smith, E. C. Barton & Company, Jonesboro, Ark.

 

State Committee Rep. - KS

Jim Bishop, Vesta Lee Lumber Co., Bonner Springs, Kan.

 

State Committee Rep. - MO

Lowell Littrell, Bethany Building Center, Bethany, Mo.

 

State Cmte. Chairman - OK

*Position open*

 

Associate Directors

David Benner, BlueLinx Corp., Englewood, Colo.

Pat Sinclair, Forest Products Supply Co., St. Louis, Mo.

Don Rieger, Cargotec USA, Inc. – HIAB., St. Louis, Mo.

 

The MLA Fall Fling annually brings members together in an exciting atmosphere where great information is shared and new ideas are developed. Be sure to attend in 2010!

 

 

THANKS TO FALL FLING SPONSORS

 

MLA extends deep appreciation to the companies that supported our recent event:

 

Presenting Sponsor:

 

Federated Insurance

 

Sterling Sponsors:

 

Cargotec USA Inc., HIAB

Forest Products Supply Co.

Mid-Am Building Supply

Rollex Corporation

Westfall GMC Truck

 

Silver Sponsors:

 

Blish-Mize Co.

The Monarch Cement Co.

 

This event simply would not be possible without the generosity of these members. Thank you, Sponsors!!

 

 

NLBMDA Applauds Passage of Key Legislation

 

The National Lumber and Building Material Dealers Association (NLBMDA) applauded the passage of legislation today by the U.S. Congress what would expand and extend the homebuyer tax credit and expand net operating loss (NOL) carryback tax relief to more businesses. President Obama has indicated he will sign the legislation on Friday.
 
Specifically, the legislation would:

  • Extend the current $8,000 first-time homebuyer tax credit to purchases of primary residences under contract by April 30, 2010 and closed by June 30;

  • Create a $6,500 homebuyer tax credit for those that have owned their primary home for five years;

  • Raise qualifying income limits to $125,000 (single) and $225,000 (couple);

  • Expand NOL relief to all businesses so that they can offset current losses against taxable profits earned in the previous five years. 

 

Extension of the homebuyer tax credit and expanded NOL relief have been top legislative priorities for NLBMDA in 2009.  Both have been deemed critical to reviving the housing market during the prolonged recession.
 
“The enhanced and extended homebuyer tax credit will go a long way toward assisting the economic recovery of our industry by speeding up the disposition of foreclosures, stabilizing home prices and helping to bring equilibrium to housing inventories in many parts of the country,” said NLBMDA Chairman Dan Fesler, CEO of Lamperts in St. Paul, Minn.  “Further, the expansion of the net operating loss carryback provision will free up capital and save jobs at a time we need it the most.”

 

 

Source: NLBMDA, November 5, 2009

 

 

SAVE THE DATE

 

Jan. 7-8 – MLDAC Winter Meeting – Columbia, Mo.

Jan. 14-15 – KYL Dealer Winter Meeting – Pratt, Kan.

March 15-17 – NLBMDA Legislative Conference, Washington, D.C.

 

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

 

 

 

 

 

 

 

LUMBER NEWS – QUICK GLIMPSES

New Home Inventories Continue to Improve, But Demand Remains Weak… For 29 consecutive months, home builders have been doing what they need to do in the face of weak demand by reducing their inventory of unsold homes.

 

New home inventories peaked at 572,000 in July 2006. In September 2009, they were down by more than half to 251,000, the lowest level since November 1982.

 

On top of this, even in places with steady sales, builders are experiencing difficulty in lining up production credit. Builders cannot replenish their inventory because financial institutions, their traditional source of credit, have shut their doors to residential construction. Bolstering demand and fixing the regulatory overkill are keys to reviving the housing market and moving the economy out of recession.

 

Source: NAHB, Eye on the Economy, October 30, 2009

 

FTC Extends Enforcement Deadline for Identity Theft Red Flags Rule… At the request of Members of Congress, the Federal Trade Commission is delaying enforcement of the “Red Flags” Rule until June 1, 2010, for financial institutions and creditors subject to enforcement by the FTC.

 

The Commission previously delayed the enforcement of the Rule for entities under its jurisdiction until November 1, 2009. The Commission staff has continued to provide guidance to entities within its jurisdiction, both through materials posted on the dedicated Red Flags Rule Web site (www.ftc.gov/redflagsrule), and in speeches and participation in seminars, conferences and other training events to numerous groups. The Commission also published a compliance guide for business, and created a template that enables low risk entities to create an identity theft program with an easy-to-use online form.

 

Source: Federal Trade Commission, October 30, 2009

 

New EEOC Poster Required The EEOC has revised its “Equal Employment Opportunity is the Law” poster. This new version reflects current federal employment discrimination law (including the Americans with Disabilities Act Amendments Act of 2008). The poster was revised to add information about the Genetic Information Nondiscrimination Act of 2008, which is effective November 21, 2009. The revised poster also includes updates from the Department of Labor. Follow this link to download a copy of the revised poster:

http://www.dol.gov/ofccp/regs/compliance/posters/pdf/eeopost.pdf

 

Source: Department of Labor

 

Welcome Back As we come out of the recession, you may be able to rehire people who were laid off. Who will you bring back and why? Is there a chance you could be discriminating and risk a lawsuit?  Be careful not to hire a male employee over an equally qualified female, or a Caucasian over an equally qualified person of color. Also, consider what you are going to do about benefits. Some firms are allowing people to come back and retain all previous benefits as if they never left, such as accrued vacation. This is a great way to get someone back who really was top notch.

 

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 websites at www.boblosyk.com and www.getagriponstress.com or call 1-800-995-0344.

 

2010 Outlook Positive for Lumber Demand Timber industry observers are predicting that the year 2010 will see a rise in the demand for lumber. According to Western Wood Products Association, demand will grow to approximately 34.5 billion board feet. This outlook is in stark contrast to that of 2009, where production has fallen to about half of what was consumed in the year 2005. Much of the improved demand will be due to increased housing starts, which should slowly regain their strength of years past.

 

Source: LBM Daily, November 6, 2009

 

Feud Continues Between Wood Certifiers Another shot has been fired in the battle between rival certifiers of environmentally friendly wood products. The Coalition for Fair Forest Certification has filed a complaint with the Federal Trade Commission charging that the Forest Stewardship Council – the premier certifier of green forestry products in the United States – engages in unfair and deceptive trade practices. The group also asserted that the United States Green Building Council's Leadership in Energy and Environmental Design rating system for efficient and sustainable buildings – known widely as L.E.E.D. – is anticompetitive because it only recognizes products certified by the Forest Stewardship Council and not those of other certifying bodies. More

 

Source: NLBMDA Green Update (from The New York Times), November 9, 2009

 

Who is Liable for Green Building Performance? Green building performance, or rather failure to perform, has long topped the list of legal risks related to sustainability-minded construction, but developers face even greater stakes this year as government-mandated LEED standards loom and achieving certification becomes more difficult.

 

Though just a handful of green building cases have actually gone to trial, North Bay industry experts say disputes are most often tied to falling short of promised financial savings or tax incentives. Shaw Development v. Southern Builders is the most noted case, where the party sued for the loss of about $635,000 in tax credits, though the matter was eventually settled out of court. More

 

Source: North Bay Business Journal, November 2, 2009

 

 

SCAM ALERT

 

A mid-Michigan member contacted his association regarding a $2,800 check they received, along with a request to confirm the transaction. The Association researched the matter and determined it definitely is a scam.
 
The check was allegedly sent to the member from Bailey/Laurerman/Marketing/ Communications in Lincoln, Neb. The check was drawn on a Tier One Bank account from Lincoln, Neb.  It contained an official looking UPS Next Day Air tracking number. It was sent from the Kennedy Space Center making it look like the Space Center is a client of Bailey/Laurerman.
 
A message at the bottom of the correspondence informed the member:
 
"We would like you to email our secure payment department on payverifier2009@live.com.  For your confirmation and more information before you continue the transaction, please don't ignore this email. Make sure you email us to the provided email and don't agree with any correspondent abuse about this email. This Payment Verification is to confirm you receive the payment successfully."
 
How do we know this is a Scam?  There is a real P.R. firm in Lincoln, Neb. by that name but it has one less letter in its name; Tier One Bank is located in Lincoln but the address on the check is 20 digits off the real address; and the overall spelling and general approach is unprofessional and bogus. Canadian and Australian scammers have apparently been using this tactic with increasing frequency.
 
If you receive something like this, do not respond to verify its receipt. The culprits have a way of using your response to rip you off.

 

Source: Michigan Lumber & Building Material Dealers Association, October 28, 2009

 

Preparing for a Pandemic Is Serious Business

 

Can you imagine what would happen at your business if ten percent of your employees were too ill to come to work on the same day? Now imagine if 25 percent of them were absent for three months or more. Then imagine all businesses are facing these same absentee rates at the same time.

 

As hard as it may be to comprehend, this could happen – in fact, most experts say it’s just a matter of time. What’s the reason? An outbreak of pandemic flu. Pandemic flu will spread rapidly and easily from person to person, affecting all age groups. It will cause illness in a majority of those infected.

 

Influenza pandemics are not isolated events like hurricanes or tornadoes, nor are they confined to a specific region. Pandemics come in multiple waves and experts believe many organizations will have difficulty maintaining operations because of absenteeism due to illness or to employees caring for the sick.

 

Effects on Your Business

 

A pandemic flu could disrupt your business and perhaps even force it to close down for a time. According to independent research, a flu pandemic has the potential to cause a typical employer’s revenue to drop by 8% and profits by 16-17%. The research showed even a moderate scenario would reduce a typical employer’s revenue by 2% and profit by 3-4%.*

 

Do you have a plan?

 

To say a pandemic is serious business is an understatement. However, the effects of a pandemic can be lessened if preparations are made ahead of time.

 

Ten Steps You Can Take Now**

 

Here are some things you can do now to help maintain business continuity in the event of a pandemic. Keep in mind that many strategies take time to implement.

 

1.      Check that existing business continuity contingency plans address long-term absenteeism rates.

 

2.      Identify your essential functions and cross-train employees to perform essential functions to ensure resiliency.

 

3.      Plan for interruptions of essential governmental services, such as sanitation, water, power, and transportation, or disruptions to the food supply.

 

4.      Determine which outside activities are critical to maintaining operations and develop alternatives in case they cannot function normally.

 

5.      Update sick leave and family and medical leave policies and communicate with employees about the importance of staying away if they become ill.

 

6.      Establish or expand policies and tools that might enable employees to work from home with appropriate security and network access to applications, such as billing and payroll.

 

7.      Collaborate with insurers, health plans, and major healthcare facilities to share your pandemic contingency plans and to learn about their capabilities and plans.

 

8.      Maintain a healthy work environment.

-        Ensure adequate air circulation.

-        Post tips on how to stop the spread of germs at work.

-        Promote hand and respiratory hygiene.

-        Ensure wide and easy availability of alcohol-based hand sanitizer products.

 

9.      Tell your employees about the threat of pandemic flu and the steps you are taking to prepare for it.

 

10.  Establish an emergency communications plan and revise periodically if necessary.

 

Valuable Resources

 

The intent of this article is to draw your attention to this very real risk. The federal government, states, communities, and various industries have taken steps to prepare for and respond to an influenza pandemic. It is important that you take action as well. Here are some web sites with many valuable resources.

 

HHS and CDC – The Department of Health & Human Services and the Centers for Disease Control & Prevention have developed guidelines, including checklists, to assist businesses, industries, and other employers in planning for a pandemic outbreak, as well as for other comparable catastrophes.
www.pandemicflu.gov

 

U.S. Chamber of Commerce – The Chamber’s Web site offers brochures and other resources.
www.uschamber.com/issues/index/defense/pandemic_influenza.htm

 

Open for Business® - The Open for Business® program is available through Federated Insurance and the Institute for Business and Home Safety (IBHS). It is more than a planning tool for weather-related emergencies – many features help prepare for illness-related emergencies as well. To get started with this program, visit Federated’s Web site and click Open for Business / Disaster Planning under Client Login.
www.federatedinsurance.com

 

 

  * Pandemic Planning [http://www.uschamber.com/issues/index/defense/gsk_calculator.htm] 10/9/09

** U.S. Chamber of Commerce [http://www.uschamber.com/issues/index/defense/pandemic/10steps] 10/9/09

 

 

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

MLA is proud to endorse….

 

 

THOUGHT FOR THE DAY

A man’s health can be judged by which he takes two at a time – pills or stairs.”

Joan Welsh

 

 

We're here to help. Until next time....

 

 

MLA Staff     

816-561-5323

800-747-6529

 

  

The opinions, views, and interpretations expressed in this publication do not constitute legal advice.  Questions and concerns regarding your company’s compliance with Federal or State regulations should be directed to the appropriate Federal or State agency.