MLA Line: FEBRUARY 13, 2012 - V11N4
In this issue
Q&A About New Design Values
Tight Credit Conditions Impeding Housing Recovery
Blair Collings Internship Application Available
New Service for Members
LuDPAC Helps You
Save the Date
Lumber News
Housing Analyst: Get Rebound Ready
Incomes Up Strong 0.5 Pct., Consumer Spending Down
Great Southern Acquires Rocky Top
Fixing the Housing Markets: Three Proposals
U.S. Home Sales Fell in December
Obama Wants Small Business Bill This Year
3 Ways to Lower Your Break-Even Point
Employment Rise Little Help to Construction Workers
OSHA Rules are Killing Businesses, Builders Say
Bernanke Holding Line on Low Rates
Add a Pinterest Button to Your Web Site
The Case for Double-Digit Growth
Industry Dashboard for February 13
Back Up Your Back Health Program
Today's Quote
Q & A About New Design Values
A collaborative effort by industry stakeholders, including NLBMDA and facilitated by the Southern Forest Products Association, has created a Q&A series that addresses the many questions left unanswered by the recent "partial" approval by the American Lumber Standard Committee's (ALSC) Board of Review of the Southern Pine Inspection Bureau (SPIB) design values proposed last fall with little public scrutiny or preparation.
As it stands now, with the "partial" approval by the ALSC Board of Review earlier this year, SPIB issued Supplement No.9 to the 2002 Standard Grading Rules for Southern Pine Lumber providing new design values effective June 1, 2012. The only design values that will change on June 1 apply to visually graded Southern Pine and Mixed Southern Pine sized 2" to 4" wide and 2" to 4" thick (2x2s through 4x4s) in No.2 and lower grades (No.2, No.3, Stud, Construction, Standard and Utility).
The approval of the grades and dimensions mentioned above, and the stated implementation date of June 1, 2012, left an unacceptable lack of guidance and numerous unanswered questions, creating a layer of uncertainty that further supports NLBMDA's call for a clearly defined process and procedure for this very important function of the ALSC.
Due to a lack of leadership elsewhere, industry stakeholders stepped up to the task of addressing this uncertainty with a just-released Q&A series. This new collection of questions and answers can be viewed by clicking here.
NLBMDA will continue to lead the charge urging greater clarity and certainty in both how the design values for southern pine will be further considered and implemented and how existing design values for other species will be tested, reviewed, and acted upon by the ALSC Board of Review.
Tight Credit Conditions Impeding Housing Recovery
Restraints on credit for home buyers and home builders alike continue to impede the housing and economic recovery, Federal Reserve Chairman Ben Bernanke said today in an address to the National Association of Home Builders (NAHB) Board of Directors in Orlando.
"Banks remain reluctant to make loans, both to mortgage borrowers and home builders,” said Bernanke, who noted that current credit conditions are too tight for the financial system, for the construction industry and the economy.
The Fed chairman said that his message to regulators is for them to take a balanced approach and to approve loans for those who meet sound underwriting standards.
“Do not turn away creditworthy borrowers, and that includes home builders,” he said.
“Chairman Bernanke understands that today’s tight credit conditions are preventing qualified buyers from obtaining home loans and builders from getting financing for the construction of viable new home building projects – and that this is harming the housing market as well as the overall economy,” said Barry Rutenberg, the newly elected chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, Fla.
Noting that many local markets have an overhang of empty and foreclosed homes, the current harsh lending environment, and that the weak housing market is impairing the financial health of home owners, Bernanke said that the “state of the housing market has been a key impediment to a faster recovery.”
“For these reasons, and because the troubled housing market depresses construction activity and employment, we need to continue to develop and implement policies that will help the housing sector get back on its feet,” the Fed chairman said. “No single solution will be sufficient. But sustained efforts to address the many interlocking factors holding back the housing market will pay dividends in the long run.”
He also added that the Fannie Mae and Freddie Mac limits on investor loans are counterproductive in the current economic climate and that policy should be to encourage more loans to help ease the inventory of distressed properties.
Bernanke’s remarks on the need to take more aggressive action to support a housing recovery confirms what the nation’s home builders have been saying for some time and reiterates similar themes in a Jan. 4 white paper provided to Congress, in which the Federal Reserve noted that “restoring the health of the housing market is a necessary part of a broader strategy for economic recovery.”
Fixing the nation’s housing woes is taking on a sense of increasing urgency in Washington. In unveiling a new plan last week, President Obama cited the important role that housing plays in the economy.
“A lack of building demand has kept hundreds of thousands of construction workers idle,” said Obama. “Everybody involved in the home building business – folks who make windows, folks who make carpets – they’ve all been impacted. The challenge is massive in size and scope, because we’ve got a multi-trillion dollar housing industry.”
Yesterday, the President reiterated the high value that Americans place on homeownership and the need to help home owners while commenting on the mortgage settlement agreement reached between the states and five major banks.
With the proper policies in place, housing can serve as an engine of job growth, said Rutenberg, who noted that building 100 homes creates more than 300 full-time jobs and generates $8.9 million in federal, state and local revenues to fund local schools and strengthen communities across the nation.
“In this key election year, the voters are calling on the Administration and Congress to take actions to restore the health of the housing industry in order to create jobs, increase household wealth and keep the economy on an upward trajectory,” he added.
Watch a replay of Bernanke's address.
Source: NAHB, February 10, 2012
Blair Collings Internship Application Available
Do you know a young person who would be interested in an internship in Washington, D.C.?
Annually, NLBMDA sponsors an intern in their Washington, D.C. office. The winning applicant spends eight weeks there beginning in June 2012. The intern will attend industry-related coalition meetings, observe the U.S. Congress, write issue summaries and conduct other research pertinent to congressional or federal agency issues. The primary emphasis of the internship will be on federal government affairs, but the intern will also be involved with the overall operation of the national association. A stipend of $2,500 will be paid to the intern in installments during the course of the internship to offset expenses for the eight-week stay in Washington.
The applicant must have a high-school diploma but not a four-year college degree at the time of the internship. Applicants must have attained at least 17 years of age, but not more than 24 years, on or before June 1 of the year of the internship. Applicant must be the child or grandchild of a retail lumber and building material owner or employee. The company affiliated with the intern applicant must be a member of an NLBMDA state or regional association.
The applicant must be interested in the lumber and building material industry and have demonstrated this interest in one of several ways: part-time or full-time employment in a lumberyard; enrollment in an industry-related college curriculum; membership in an industry organization for young people; attendance at an NLBMDA conference; or verification from a sponsor that the applicant has firm plans to enter their business in the future.
This is a great opportunity. Click here to download an application.
New Service for MLA Members
MLA now endorses ICS-National Collection Services to provide debt-collection services for members.
ICS-National Collection Services offers a unique approach, which eliminates the three primary reasons that businesses are reluctant to use a traditional collection agency: 1) the cost, 2) the unpleasant impact on customers, and 3) the administrative hassles of account management.
By providing collection services in a new way, ICS-National gives businesses a new option for employing the power of the collection agency to convert their “dead money” into cash.
And, just as important, they provide their services in a professional manner. You can rest assured that this agency will never perform in a manner that will reflect badly on you. They can even show you how their services can be provided at a zero net cost to your business.
If you would like to get more information about working with this new MLA partner, please contact Todd Elliott by email at telliott@ICS-National.com or by phone at 877-622-2331.
As always, if you have any questions or concerns, please don’t hesitate to contact your MLA at 800-747-6529.
LuDPAC HELPS YOU
The 2012 Election Cycle is in full swing and the Lumber Dealers Political Action Committee (LuDPAC), the political fund of NLBMDA, needs every lumber dealer to participate in the political process. Enroll in LuDPAC and receive monthly political updates straight from Capitol Hill, election information, and invitations to special LuDPAC events. To enroll in LuDPAC, simply click here and fill out the online LuDPAC prior approval form.
Completing the approval form does NOT obligate you to donate – it just opens the opportunity to receive information and updates. That said – donation is a great idea – no one else is fighting for the survival of your business in Washington. Get involved in LuDPAC today!
SAVE THE DATE
March 5-7 - NLBMDA Legislative Conference, Washington, D.C.
March 22-23 - Arkansas Spring Meeting, Hot Springs, Ark.
March 23-24 - Blish-Mize Spring Market, Overland Park, Kan.
April 13 - Deadline to submit scholarship applications (Mo. & Kan.)
May 3-4 - Swing-into-Spring, Lake of the Ozarks
June 8 - Sunflower Shootout, Hutchinson, Kan.
Call the MLA Office – 800-747-6529 – for additional information or email: mail@themla.com
LUMBER NEWS – QUICK GLIMPSES
Housing Analyst: Get Rebound Ready… A regional housing analyst who studies the Omaha, Neb., market is warning local builders and bankers that: “We’re going to run out of lots.” Read more.
Source: Nation’s Building News, January 30, 2012
Incomes Up Strong 0.5 Pct., Consumer Spending Down… Americans' income rose in December by the most in nine months, a hopeful sign for the economy after a year of weak wage gains. But consumers didn't spend any more than they had in November. Read more.
Source: Associated Press, January 30, 2012
Great Southern Acquires Rocky Top… Abbeville, Ala.-based Great Southern Wood Preserving, the nation’s leading producer of pressure treated pine lumber, acquired the assets of the Rocky Top Building Products companies. Read more.
Source: Home Channel News, January 30, 2012
Fixing the Housing Markets: Three Proposals… It has been six years since U.S. housing markets peaked and began their tumble, yet housing prices continue to fall despite the few markets that have stabilized. Foreclosures continue at historic levels and housing starts are at their lowest level in decades. Meanwhile, nothing the federal government has done to address the situation to date has had much impact. Read more.
Source: Urbanland (Remodeling Daily Update), January 30, 2012
U.S. Home Sales Fell in December… Fewer people bought new homes in December, according to the Commerce Department, making 2011 the worst sales year on record, reports the Associated Press. New home sales fell to a seasonally adjusted annual pace of 307,000 during the final month of the year. That pace is less than half of the 700,000 houses that economists say must be sold in a healthy economy. Total sales for 2011 were less than the 323,000 sold in 2010, making it the worst year since 1963.
Source: ProSales Business Update, February 1, 2012
Obama Wants Small Business Bill This Year… Seeking cooperation in a polarized climate, President Barack Obama on Tuesday urged Congress to act quickly on bipartisan measures that would extend tax breaks for small businesses and help startup companies raise money. He said he would sign the legislation "right away." Read more.
Source: Associated Press, January 31, 2012
3 Ways to Lower Your Break-Even Point… Taking steps to improve profitability can actually help you to increase customer value and build brand equity. Read more.
Source: Inc.com, February 1, 2012
Employment Rise Little Help to Construction Workers… The recent national upturn in job growth has not reached the construction industry, where unemployment rose from 16% in December to 17.7% in January. Read more.
Source: Home Channel News, February 7, 2012
OSHA Rules Are Killing Businesses, Builders Say… Owners of small home-construction businesses say they're watching their livelihoods collapse under safety regulations they feel are more about punishing them than protecting their workers. Read more.
Source: ProSales Business Update, February 3, 2012
Bernanke Holding Line on Low Rates… Federal Reserve Chairman Ben Bernanke was back in the usual hot seat before Congressional lawmakers itching to garner TV coverage in an election year. And though news has been mostly positive about the U.S. economy, the Fed appears ready to continue on its path, no matter how popular or unpopular it may be with members of the U.S. House and Senate. Read more.
Source: NACM’s eNews Weekly Update, February 9, 2012
Add a Pinterest Button to Your Web Site… Pinterest is a new social media platform that has quickly become as important as Facebook and Twitter are to publishers. Read more.
Source: Business Insider, February 8, 2012
The Case for Double-Digit Growth… The official housing forecast from the National Association of Home Builders (NAHB) is similar to last year's forecast – with pent-up demand and improving demographics pointing toward growth in the double-digit percentages. Read more.
Source: Home Channel News, February 9, 2012
Industry Dashboard for February 13… The average gas price for a gallon of regular crept over the $3.50 mark. But stocks are soaring on the Home Channel Stock Roundup, especially TSCO. Click here for dashboard.
Source: Home Channel News, February 13, 2012
Back Up Your Back Health Program
A successful back health awareness program takes more than a one-time safety meeting to instill awareness in employees. It depends on good communication and long-term commitment from the owner and management. Federated’s BackTalk™ program provides material that can be used over several weeks or months to keep your employees focused on back injury prevention.
Here are a few ideas for using these materials:
- Hold a meeting to launch the program. Show a back safety video or arrange a presentation by a health expert or insurance risk consultant.
- Place a new poster each month in common areas such as entrances, break rooms, meeting rooms and on bulletin boards.
- Send the companion brochure to each employee through office mail, with paychecks, or other means. Also, mail a copy to the home — perhaps with a cover letter restating your concern for their well being.
- Use your company newsletter or send bulletins to support the program and report successes.
- Consider using contests or rewards for reducing or eliminating back injuries over a certain period or to encourage employees to exercise.
The BackTalk™ program is available at no charge to Federated clients to help implement a back safety awareness program at your business. The kit includes posters, brochures, information, and ideas to help you raise awareness among your employees and prevent back injuries. Call 800.838.1760 and ask for Federated’s back injury awareness program today.
THOUGHT FOR THE DAY
“Don't let the emergencies of others inappropriately become your urgency.”
~Rick Davis
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.
