Vol. 6, No. 2 – January 15, 2007 

 

 

SCAM ATTEMPTS CONTINUE

 

MLA continues to receive reports of attempted scams in our territory. Most of the scammers contact the target business via a relay operator who transmits the “customer” information, but declines to provide additional information requested by the dealer.

 

Usually the dealer receives a phone call asking to order a quantity of a common item, such as paint or tools. They advise that they will make payment via credit card and fax the credit card to the dealer. When pressed to provide additional information, they decline to do so. Local police advise that this is highly suspicious activity and under no circumstances should you move forward with such a transaction. There is a strong possibility the individual is using a stolen credit card.  

 

Another practice we’ve seen is long-distance transactions where the caller wants to send you a money order or cashier’s check in excess of the amount of the order. They want you to refund the difference and ship merchandise to an out-of-state address. Needless to say, the money order or cashier’s check is fraudulent, and you’ll be out the money you refunded and your merchandise.

 

This is an alert to continue to use due diligence in your daily business and be aware of these practices. As you’ve heard many times, if the deal is “too good to be true,” it probably is. Trust your instincts and have cash in hand before releasing merchandise to anyone unknown to you.

 

Contact Art Brown or Olivia Holcombe at MLA – 800-746-6529 – if you have questions or need additional details.

 

WTCA and NLBMDA Partner for Conference

 

In an effort to maximize the visibility of the building components and supply industries on the federal level, WTCA – Representing the Structural Building Components Industry (WTCA) and the National Lumber and Building Material Dealers Association (NLBMDA) are partnering together during their annual legislative conferences in Washington, D.C. this year.  On April 16-18, WTCA and NLBMDA simultaneously will empower their combined membership to lobby Congress effectively on priority issues in 2007.

 

"By bringing our members to Capitol Hill at the same time, NLBMDA and WTCA's partnership will allow us to cover more ground in the new landscape of the 110th Congress," said Shawn Conrad, NLBMDA President. "Working together, we will increase our industry's impact on legislation critical to the building supply channel."

 

Members of each organization will continue to visit their lawmakers separately, to maximize the quantity of meetings held with Congressional delegates.  However, WTCA and NLBMDA will work together to coordinate the analysis and messaging on each issue so that members of these two organizations will present a united front.  In addition, WTCA and NLBMDA will host a joint morning session on Tuesday, April 17^th, where Senator Ben Nelson (D-NE), a member of the new Democrat-led majority in the U.S. Senate, has been invited to speak.

 

“Our collective membership will be the biggest beneficiaries of our coordinated efforts,” added Kirk Grundahl, Executive Director of WTCA.  “Our primary goal is to ensure that as WTCA represents the issues important to the structural building component side of the industry, and NLBMDA represents the issues important to the building material distribution side of the industry, that our voices are distinct, clear and coordinated.  This will have a big impact and provide additional value and greater resources to all our members.”

 

The joint morning session will include an in-depth overview of legislation affecting their combined industries, as well as a “Lobbying 101” breakout session to help acclimate those who are meeting with their lawmakers for the first time. As a result, WTCA and NLBMDA members will be well prepared in their cooperative grassroots effort to positively influence Congressional action on important legislation.

 

John Smith of Foxworth-Galbraith Lumber Company, a member of the WTCA Board of Directors and Chair of the NLBMDA Risk Management Committee, emphasized, “I think this is a very important step in the evolution of both these organizations as they strive to provide even more world class services to their members.  I know that our company certainly sees the value in this partnership and appreciates their efforts.”

 

Source: NLBMDA

 

 

early-bird deadline near

 

You still have time to sign up for MLA’s popular estimating workshops at the lowest price – but the February 1^st deadline is fast approaching.

 

MLA is pleased to announce that we have engaged Mike Butts, LBM Solutions, to provide our popular estimating training in 2007. Mike is one of the most recognized trainers in the lumber and building material industry. The training will be offered in Wichita, Kan. on Feb. 20-21 and in St. Louis, Mo. on March 6-7.

 

Day 1 leads participants through a typical blueprint format, scale and content. Students will develop an understanding of architectural symbols such as wood, concrete, insulation and electrical schedules, knee walls, wall sections and cantilevered joists. They’ll also learn about “specification and general notes” – their necessity, importance and how they relate to retail sales. In addition, the seminar teaches participants how to approach reading a blueprint to ensure thoroughness and accuracy when completing an estimate of materials.

 

Day 2 focuses on the skills necessary to calculate the framing lumber requirements of the complete shell of the house through comprehensive study of each construction item. Included in this is a review of contemporary “cut roofs” and their unique estimating requirements. Attendance at Day 1 is mandatory for attending Day 2 or the student must have proficiency at reading blueprints.

 

Mike Butts is the founder and President of LBM Solutions.  His abilities and experience have been called "unsurpassed by other consulting firms in the industry.”  His experience has been gained through extensive work in the field at "street level," implementing the programs and practices he teaches.

 

When/Where:

 

February 20-21 – Wichita at The Best Western Airport Inn & Conference Center

March 6-7 – St. Louis at the Embassy Suites Hotel St. Louis Airport

 

Member Pricing:

• Sign up for Day 1 or Day 2 separately at $225 per day.

• Two-day workshop package - $395 for the first person from a member firm -- $375 each for additional personnel.

• Sign up by February 1 – a $50 per person surcharge will be added for late registrants.

Nonmember pricing is available.

 

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! Information and a registration form also are available at www.themla.com.

 

 

 

 

LUMBER NEWS – QUICK GLIMPSES

 

Missouri Minimum Wage Increased… Missouri’s new minimum wage law went into effect January 1, 2007, increasing the minimum wage from $5.15 to $6.50 per hour. The new law also requires the state minimum wage to adjust annually beginning January 1, 2008, based on changes in the Consumer Price Index.

 

The Division launched a new web site at www.mominimumwage.com to assist employers and employees understand the new minimum wage law under Proposition B. The new web site provides answers to frequently asked questions, links to ballot language and additional state and federal contact information.

 

Source: Missouri Dept. of Labor and Industrial Relations, December 11, 2006

 

Telephone Excise Tax Refund! You will notice that your long-distance telephone calls do not have the 3 percent federal excise tax assessed. Billings after July 31, 2006 do not include this tax. As a result of losing many court cases on the taxing of long-distance calls, the IRS has agreed to discontinue collection of the 3 percent federal excise tax. Can I get a refund of excise tax paid on long distance on past billings? Yes, you can.

 

Individuals – on your 2006 Form 1040, 1040A or 1040EZ income tax returns there will be a refundable credit line for excise tax. The IRS will provide a table for an amount allowed or you may compute your actual excise tax paid on service provided after February 28, 2003 and before August 1, 2006. Except for individuals using the IRS table, records must be retained to substantiate the amount. Businesses – start gathering those telephone bills now and determine the amount spent on long distance. Businesses have to use actual – no table will be provided.

 

Source: Southern Building Material Association, January 2007

 

Lumber Demand Seen Falling Off… A slowdown in home building is likely to end the record run enjoyed by lumber manufacturers over the past four years. The Western Wood Products Association (WWPA), which represents lumber manufacturers in 12 Western states and Alaska, said in its forecast that lumber demand fell in 2006 and is expected to slow further during 2007. The WWPA expects new housing starts will be down nearly 9 percent in 2006, and fall another 10 percent to 1.69 million in 2007. Residential construction is the largest market for lumber, accounting for more than 40 percent of the lumber used each year.

 

Source: Builder Business Online Update, January 2, 2007

 

Nardelli Out - Blake In… The Board of Directors of The Home Depot® and Bob Nardelli announced today that they have mutually agreed that Nardelli would leave his position as The Home Depot's chairman, president & CEO and as a Director effective January 2, 2007. Frank Blake, the Company's current vice chairman of the Board of Directors and executive vice president succeeds Nardelli, effective immediately. Frank Blake was elected chairman and CEO of The Home Depot and a full voting member of the Board of Directors.

 

Since joining The Home Depot in 2002, Blake has served as vice chairman of the Board of Directors and executive vice president. His responsibilities have included strategic business development, growth initiatives, real estate, store construction, credit services, and the Home Services business. Prior to joining The Home Depot, Blake served as deputy secretary for the U.S. Department of Energy (DOE). Prior to that, he served in a variety of executive roles at General Electric, including senior vice president, Corporate Business Development.

 

Nardelli and the Company have agreed in principle to the terms of a separation agreement that would provide for payment of the amounts he is entitled to receive under his pre-existing employment contract entered into in 2000. Under this agreement, Nardelli will receive consideration currently valued at approximately $210 million (including amounts which have previously been earned or vested). This consideration will include a cash severance payment of $20 million, the acceleration of unvested deferred stock awards currently valued at approximately $77 million and unvested options with an intrinsic value of approximately $7 million, the payment of earned bonuses and long-term incentive awards of approximately $9 million, the payment of account balances under the Company's 401(k) plan and other benefit programs currently valued at approximately $2 million, the payment of previously earned and vested deferred shares with an approximate value of $44 million, the payment of the present value of retirement benefits currently valued at approximately $32 million and the payment of $18 million for other entitlements under his contract which will be paid over a four-year period and will be forfeited if he does not honor his contractual obligations.

 

Nardelli has also agreed not to compete with the Company for one year, not to solicit employees or customers of the Company for four years and other restrictive covenants.

 

Source: The Home Depot, January 3, 2007

 

Added Value… To attract the best talent and earn loyalty, employers must offer benefits. The trick: Earn employee loyalty without sacrificing profits.

 

Benefit costs are out of control in the U.S., driven upward almost entirely by rising health insurance premiums. In the first two quarters of 2006, the average employer in the U.S. spent $25.16 per hour on each employee, and 29% of that cost went to benefits. Last year the average employer-paid premium rose by 9.2%, marking the fifth consecutive increase of at least 9%. Since 2000, health insurance premiums have grown 73%, nearly five times the rates of inflation and wage growth over the same period.

 

The costs can be staggering. But economists, human resources experts, and many employers agree that in the long term, a stable and loyal work-force is well worth the investment. Workers want benefits and are more likely to stay with a company that provides them. While it's not necessarily true that wages are secondary to benefits in employees' minds, a number of surveys have shown that workers are more inclined to work for companies that provide the benefits they want.

 

Source: Remodeling Online, January 10, 2007

 

Gradual Rise Projected for Home Sales… After bottoming in the fourth quarter of 2006, existing-home sales are forecast to gradually rise through 2007 and into 2008, while new-home sales should turnaround by summer, according to the latest forecast by the National Association of Realtors®.

 

David Lereah, NAR’s chief economist, said annual totals for existing-home sales will be fairly comparable between 2006 and 2007.  “We have to keep in mind that we were still in boom conditions during the first quarter of 2006 with a high sales volume and double-digit price appreciation,” he said. “We are starting 2007 from a relatively low point, so even with a gradual improvement in sales it’ll be pretty much of a wash in terms of annual totals.  The good news is that the steady improvement in sales will support price appreciation moving forward.”

 

Total housing starts for 2006 are likely to be 1.81 million units, with 1.51 million forecast in 2007, which would be the lowest level in a decade.  Builders are pulling back on new construction to support prices of remaining inventory.

 

Source: National Association of Realtors, January 10, 2007

 

Emerald Ash Borer… The U.S. Dept. of Agriculture’s Animal and Plant Health Inspection Service (APHIS) is expanding the emerald ash borer quarantine to include the entire states of Illinois, Indiana and Ohio. The new quarantine became effective on December 1 following the issuance of a federal order. APHIS is expanding the quarantine in response to the destructive nature of this invasive plant pest and the significant threat it poses to the ash resource in our nation’s forests and residential landscapes.

 

Regulated articles under USDA’s quarantine include firewood of all hardwood species, such as ash, oak, maple and hickory, and nursery stock. All hardwood firewood is regulated. (Once a log has been cut and split, it is extremely difficul