Mid-America Lumbermens Association
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MLA LINE Lumber Industry News Express |
Mid-America Lumbermens AssociationMLA LINELumber Industry News ExpressVol. 5, No. 1 – January 3, 2006
Happy New Year!
Mold and Moisture Seminar MLA is pleased to be co-sponsoring a special Mold & Moisture Seminar presented by Mark LaLiberte of Building Knowledge, Inc. LaLiberte is sponsored by our educational partner, Hallmark Building Supplies, Inc. As a distinguished trainer, author and consultant, Mark LaLiberte of Building Knowledge, Inc. has devoted nearly two decades to educating the building industry about the benefits of constructing more durable, energy efficient and healthier homes. It is LaLiberte’s commitment to helping builders reduce callbacks and litigation that keeps him traveling nationwide, reaching more than 8,000 builders annually. Join us to learn about…
Who: MLA members and their contractor customers When: Wednesday, February 1, 2006 9 a.m. – 12 p.m. with continental breakfast provided 8 – 9 a.m. Where: Holiday Inn Select, 2200 I-70 Dr. SW, Columbia, Mo. Price: $35 per person for pre-registration by January 20. ($50 per person after Jan. 20) Free EEBA Water Management Guide (an $18 value) to everyone who registers by January 20. Go to www.themla.com to download a registration form. Or call MLA at 800-747-6529 to have a form faxed to you today. MLA EDUCATION PROGRAMS Early Bird Deadline – February 15! The Basic Materials Estimating School… This is a two-day school designed to teach participants the basic piece-by-piece estimating of building products usually sold in a full-service lumberyard/home center. Students learn the basics of blueprint reading, how to use the LT1 Guidebook for estimating that contains tables, checklists, construction illustrations and estimating reminders; and finally how to estimate a simple house plan piece-by-piece. March 6-7 – Fayetteville, Ark. March 8-9 – Kansas City, Mo. Advanced Materials Estimating School… This advanced piece-by-piece estimating seminar is designed to assist the estimator or outside salesperson/estimator who already knows how to estimate but wants some shortcuts and instructions in multi-pitched roofs, including stick framing and finding wall lengths, floor area, and more complicated house layouts. Students receive the estimating guidebook as part of the class. March 10 – Kansas City, Mo. Member Pricing: Basic Estimating - $450 per person Advanced Estimating - $325 per person Early Bird Discounts available – see registration form for details. Sign up early to get the best price. Complete information and registration forms are available upon request from MLA at 800-747-6529. Or, simply reply to this email and we’ll send complete information today! NLBMDA Continues to Press for Tariff Relief & Celebrates Repeal of Byrd Amendment
Earlier this
month, Canadian
softwood lumber
tariffs were cut
in half by the
U.S. Department
of Commerce in
an apparent
effort to
finally begin to
comply with the
numerous rulings
finding those
tariffs in
violation of
NAFTA and WTO
trade rules. The
U.S. Ambassador
to Canada, David
Wilkins, has
tried to
reassure
Canadians that
this latest move
is a show of
"good faith"
that the
Canadians had
asked for before
returning to the
negotiation
table. However,
any such
negotiations are
on hold at least
until after
Canadian
elections
scheduled for
January 23. Unfortunately, significant opposition in the Senate led to a 72-19 vote in support of a motion instructing Senate negotiators to remove the Byrd repeal language when reconciling the Senate and House-passed versions. Over the weekend, the House passed compromise language that would delay the effective date of repeal until October 1, 2007; this compromise language was included in the final budget reconciliation bill passed in the Senate on Wednesday by a vote of 51-50, with Vice President Cheney casting the tiebreaking vote. Senate allies have assured us they will continue to seek opportunities to accelerate the effective date; nevertheless, this is a significant victory that few thought would ever be successful in the Senate. Please join us in thanking House Majority Leader Roy Blunt (R-MO), Ways & Means Trade Subcommittee Chairman Clay Shaw (R-FL), Senator Jim DeMint (R-SC) and the additional 18 senators who supported Byrd Repeal. You can see how your Senators voted by accessing our Government Affairs Issues Library at www.dealer.org. Source: NLBMDA, Industry News, December 2005
LUMBER NEWS – QUICK GLIMPSES
November Housing Starts… “News that the construction of new homes in the month of November was up 5.3 percent over October and 17.5 percent over last year is the latest indication that the American economy is growing at a steady pace, and that the benefits of that growth are touching more Americans every day.
“We can see now that 2005 will be a record year for housing starts, and with permits to build continuing to exceed starts, it appears as if residential construction will remain robust – and that’s great news for American families.”
Source: Department of Treasury press release, December 20, 2005
Bankruptcy Filings Hit New Records in Run Up to New Bankruptcy Law Implementation… Bankruptcy cases filed in federal courts grew 10 percent in fiscal year 2005, according to the Administrative Office of the U.S. Courts—rising to the highest number of bankruptcies ever filed. During the 12-month period ending September 30, 2005, 1,782,643 bankruptcies were filed, up from the 1,618,987 bankruptcy cases filed in fiscal year 2004.
Filings for the 3-month period from June 30, 2005 to September 30, 2005, also were the highest number filed for any quarter in the history of bankruptcy, totaling 542,002. The large number of filings is due to the many individuals who filed for bankruptcy before October 17, 2005, the implementation date of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.
The federal Judiciary’s fiscal year is the 12-month period ending September 30. The bankruptcies reported are for October 1, 2004 through September 30, 2005.
Source: NACM E-news, December 20, 2005
Housing Market Index Dips 4 Points in December… On Monday the National Association of Home Builders and Wells Fargo released the December 2005 Housing Market Index (HMI). The overall HMI declined four points from a slightly revised November number to 57, while the component measuring builder expectations for future sales held firm at 65.
“As expected, the housing market appears to be coming off the recent record pace of home sales,” said NAHB Chief Economist David Seiders. “Our surveys indicate that three out of every four builders are experiencing some buyer resistance to current home prices, and many are offering certain concessions to buyers in order to help maintain sales volume. NAHB’s forecast continues to anticipate an orderly cooling down process for single-family sales and production in 2006.”
Source: LBM Daily, December 20, 2005
American Lumber Producers Appeal Latest NAFTA Ruling in Softwood Lumber Case… Although the U.S. Commerce Department has agreed to reduce subsidies on softwood lumber, the Coalition for Fair Lumber Imports on Tuesday submitted an appeal to the NAFTA ruling. NAFTA has until February 20, 2006, to decide whether or not to hear the ruling.
“The determination can’t be reconciled with U.S. legal requirements,” coalition lawyer Harry Clark said Tuesday. “The levels we’re arguing about now are absurd.”
The new rates went into effect on December 12, 2005. However, the U.S. is also in the process of deciding whether or not to appeal.
Source: LBM Daily, December 21, 2005
Wholesale Inflation Drops in November… Inflation at the wholesale level fell in November by the largest amount in 2-1/2 years, reflecting big declines in gasoline and other energy products. The declines were expected to be short-lived, however, given that energy prices are on the rise again.
The Labor Department reported Tuesday that wholesale prices dropped by 0.7 percent last month, the biggest decline since a 1.5 percent plunge in April 2003. The drop reflected a sizable 4 percent fall in energy prices, which came after four months of sizable gains related to higher global oil prices and hurricanes Katrina and Rita, which caused widespread shutdowns of oil wells and refineries along the Gulf Coast.
The big drop in wholesale prices in November mirrored a similar 0.6 percent fall in consumer prices, the biggest drop in 56 years. But analysts cautioned that the good news on inflation might not last with gasoline prices rising again and Americans facing substantial increases in home heating costs compared to a year ago.
Source: Martin Crutsinger (AP Online), Builder Online Business Update, December 20, 2005
Don’t Burn New Types of Treated Lumber… Treated lumber – including lumber treated with chromated copper arsenate (CCA) and alkaline copper quaternary (ACQ – should not be burned, according to the Environmental Protection Agency. CCA treated lumber contains arsenic, and the smoke and ashes produced by burning the wood can be toxic. Although ACQ treated lumber lacks arsenic, it too can create toxic smoke and ashes when burned. Pressure treated wood should also not be used for mulch, the EPA says. Treated lumber should instead be disposed of with regular municipal solid waste, not yard waste, according to the EPA.
Source: NLBMDA Industry News, December 2005, quoting Charlotte Observer (NC) (11/26/05); Norwood, Allen
Congressional Task Force Releases Proposed Changes to NEPA Legislation… On Wednesday, a U.S. House Resources Committee task force issued over 20 recommended changes to the current National Environmental Policy Act (NEPA) – the 1970’s era act responsible for mandating environmental impact reviews for timber harvests – many of which are of interest to the timber industry.
One proposed reform would grant local areas more of a say about environmental impact. Another would limit environmentalists’ ability to hold up federal projects by establishing a 180-day period in which lawsuits must be filed. Also, lawmakers may institute an 18-month deadline in which federal agencies must complete environmental impact statements.
Source: LBM Daily, December 23, 2005
Eight Of Ten Small Business Owners Do Not Plan To Retire… Many workers may dream of retiring at 65, but a new Wells Fargo/Gallup Small Business Index finds that eight of ten small business owners surveyed are happy running their businesses and have no intention of retiring. In fact, almost four out of every ten say the only thing that would force them to retire is their health.
Forty-two percent of small business owners surveyed indicate they may cut back on work, but will never completely abandon their business. The Index also shows that almost two-thirds of small business owners expect their business to continue operating after they have retired. Only 19 percent plan on traditional retirement.
Of those business owners who expect their businesses to carry on beyond their working years, 41 percent expect someone in their family to keep the business going. Additionally, 34 percent expect to sell their business to someone from outside the business, and 21 percent say they will sell it to one or more employees in the business, who are not family members.
“Small business owners have a different definition of the word ‘retirement,’” said Rebecca Macieira-Kaufmann, executive vice president and small business segment manager for Wells Fargo. “Since many are living their dreams and love what they do, they do not want to stop working. This survey shows that more than ever they’re dedicated to the success of their business. It’s their passion and they want to stay engaged in their business as long as possible.”
The Index tracks six key measures for both current conditions and future expectations as reported by small business owners: current financial situation, revenues, cash flow, capital spending, number of jobs, and credit availability.
Four Months After Katrina, Trees Still Down in Louisiana… Katrina flattened an estimated 3 billion board feet in Louisiana, and Rita an estimated 1.6 million board feet. That amounts to about three times the state’s annual harvest. However, the state Forestry Association predicts that it will only be able to recover 1/4 of all felled timber.
Mills owned by Georgia-Pacific and Weyerhauser have been working overtime to increase logging capacity, but the amount of downed trees is considered extremely daunting.
Source: LBM Daily, December 30, 2005
Weyerhaeuser Continues Streamlining Its Operations… In line with earlier sales of assets, Weyerhaeuser announced Friday that it would sell its composite panels assets in France to a Spanish particleboard manufacturer, Financiera Maderera S.A. (FINSA).
Because Weyerhaeuser’s presence in Europe is not as great as FINSA, the Washington-based company’s transfer of property was a strategic move.
Source: LBM Daily, January 3, 2006
What’s In, What’s Out for 2006Products
In: building with components Out: building on site
In: Old World ceramic tile Out: white ceramic tile
In: moisture-resistant, fiberglass-covered gypsum Out: traditional drywall
In: bamboo flooring Out: oak flooring
In: bottom-mount refrigerators Out: top-mount refrigerators
Source: Remodeling On-line Business Update, December 28, 2005
Safety Interview How can you tell if prospective employee is safety-minded? The employment interview is an opportunity to evaluate a prospective employee’s attitude toward safety as well as their other qualifications for the job. During the interview, ask prospective employees about their own past experiences. Have them recall a situation in a past job or a personal situation that involved a safety issue. Ask them to describe how they dealt with that situation.
The response may provide valuable information about the person’s experience, character and ability to think and act decisively. Very often, this type of questioning elicits additional information about a person’s training, life experiences and attitude. Perhaps at a previous job, the prospect observed a dangerous situation and acted to prevent an accident. Or, in a crisis situation, was the person able to remain calm and use good judgment? Did they notify the proper people and act to prevent further harm or damage? Also, ask job candidates what they learned from their experiences. Even if they admittedly could have done something differently, an honest answer and a willingness to follow procedures may be the qualities you are looking for.
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