Vol. 7, No. 2 – January 21, 2008

EARLY-BIRD DEADLINE – JAN. 25!

MLA is pleased to announce that Mike Butts, LBM Solutions, is returning to our area to provide our popular estimating training in 2008. Mike is one of the most recognized trainers in the lumber and building material industry. The training will be offered in Cape Girardeau, Mo. on February 12-13 and Kansas City, Kan. on March 4-5. The early-bird deadline is January 25 – so register now to get the best rates.

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 “specifications 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 12-13 – Plaza Conference Center – Cape Girardeau, Mo.

March 4-5 – Best Western Inn & Conference Center – Kansas City, Kan.

Member Pricing:

Sign up for Day 1 or Day 2 separately at $275 per day.
Two-day workshop package ~ $445 for the first person from a member firm ~ $425 each for additional personnel.

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.

Note: Attendance at Day 1 is mandatory for attending Day 2 unless person has proficiency at reading blueprints.

NLBMDA Accepting Applications for Internship

NLBMDA is looking for qualified candidates for the 2008 Blair Collings Internship in government affairs. If you are a college student between 17 and 24 with an interest in both the legislative process and the lumber and building materials industry, this is the ideal opportunity for you.

The Blair Collings intern will spend eight weeks in the summer at NLBMDA’s headquarters in Washington, D.C. where he or she will receive a hands-on education in government affairs. The intern will assist NLBMDA’s government affairs team in drafting issue papers, conducting legislative research, attending industry-related coalition meetings, monitoring legislation, and note-taking at hearings of the U.S. Congress.

To apply for this exciting opportunity, download a copy of the Blair Collings Internship Application at www.dealer.org. Applications are due February 1, 2008.

NEWS RELEASE – January 17, 2008

The following news release was issued on January 17, 2008 by the International Trade Commission, U.S. Department of Commerce, on an investigation and ruling on imported nails. One industry publication speculated this could cause an increase in nail prices soon. Our thanks to the Lumber Association of California and Nevada for sharing this news from ProSales Magazine.

WASHINGTON – The U.S. Department of Commerce today announced its affirmative preliminary determinations in the antidumping duty investigations on imports of steel nails from the People’s Republic of China (China) and the United Arab Emirates (UAE). Commerce determined that Chinese and UAE producers/exporters sold certain steel nails in the United States at 20.77 to 118.04 percent and 4.47 percent less than fair value, respectively.

“Price discrimination hurts American manufacturers,” said Assistant Secretary for Import Administration David Spooner. “The Administration is committed to aggressively enforcing America's trade remedy laws in order to achieve strong and fair relationships with our trading partners. ”

The merchandise covered by these investigations is certain steel nails, having a shaft length of up to 12 inches. Certain steel nails are produced from various grades of steel and principally used to fasten two pieces of material, such as wood or other solid building material. Nails that are subject to these investigations have a variety of finishes, heads, shanks, points, and sizes.

Mid Continent Nail Corporation (MO); Davis Wire Corporation (CA); Gerdau Ameristeel Corporation (Atlas Steel & Wire Division) (FL); Maze Nails (Division of W.H. Maze Company) (IL); Treasure Coast Fasteners, Inc. (FL); and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (PA) are the petitioners for these investigations.

Dumping occurs when a foreign company sells a product in the United States at less than fair value. As a result of these preliminary determinations, Commerce will instruct U.S. Customs and Border Protection to suspend liquidation of entries of subject merchandise and to collect a cash deposit or bond based on the preliminary rates.

For more information about Import Administration or for the fact sheet on today’s decision, please visit www.trade.gov/ia.

SAVE THE DATE

Feb. 12-13 – Blueprint Reading and Estimating Workshop – Cape Girardeau, Mo.

March 4-5 – Blueprint Reading and Estimating Workshop – Kansas City, Kan.

May 1-2 - Missouri Swing-into-Spring Event

June 13 - Kansas Sunflower Shootout

Nov. 6-7 – MLA Fall Fling

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

LUMBER NEWS – QUICK GLIMPSES

New Battery Rules for Airline Passengers… The U.S. Department of Transportation has determined that lithium batteries are a potential fire hazard, and as a result, as of January 1, airline passengers are no longer allowed to pack loose lithium batteries in checked luggage.

Most lithium batteries will be allowed on board when installed in electronic devices. Spare batteries can be placed in carry-on bags if they’re packed properly. However, it’s not as simple as that. All lithium metal batteries (versus lithium-ion batteries) that have more than two grams of lithium are forbidden. And lithium quantity limits apply to both your spare and installed batteries.

A chart of what lithium batteries are permitted in checked baggage and in carry-on baggage, as well as information on how to safely pack spare batteries, can be found on the DOT website.

Source: U.S. Department of Transportation – NACM E-News Weekly Update, January 8, 2008

Fed Keeps Its Options Open… The Federal Reserve Board continues to take a very cautious approach to managing the nation's economy, signaling in its Dec. 11 minutes the need for further rate cuts and even rate increases based on market conditions.

According to the minutes released today by the Federal Open Market Committee (FOMC), the members are concerned that the credit crunch will restrain economic growth further, leading to additional credit tightening.

Source: Builder On-Line Business Update, January 8, 2008

NLBMDA Picks Association Veteran as New President… The National Lumber and Building Material Dealers Association (NLBMDA) announced today it has selected Diane Swenson to serve as the association’s new president. She succeeds Shawn Conrad, who left the organization Oct. 1. Swenson previously served as EVP and COO of the National Association of Federal Credit Unions. She also spent 13 years with the American Tort Reform Association, an advocate of lawsuit reform, where she served as EVP and chief financial/operational officer. She’ll be based in Washington.

Source: NLBMDA, January 8, 2008

Stable Existing-Home Sales Expected in Early 2008, then Gradual Rise… Over the next few months, existing-home sales are expected to hold fairly steady as indicated by pending sales activity, then rise later in the year and continue to improve in 2009, according to the latest forecast by the National Association of Realtors®.

Lawrence Yun, NAR chief economist, said there is a pull and tug exerting itself on the market. “On the one hand, we have a pent-up demand from the four million jobs added to our economy over the past two years of sales decline,” he said. “On the other, consumers continue to wait for additional signs of market stabilization. There are more people with financial capacity now than in 2005, but many are trying to market-time their purchase. As a result, the exact timing and the strength of a home sales recovery is a bit uncertain. A meaningful recovery in existing-home sales could occur as early as this spring, or it may be further delayed toward late 2008.”

Source: National Association of Realtors, January 8, 2008

Forest Products Supply Co… has announced they have signed an agreement with Weyerhaeuser Company to purchase their Kansas City and Newton, Kan., building materials distribution centers. The transaction will close on February 25^th. With this new agreement, Forest Products Supply Co. (St. Louis) will be the exclusive Weyerhaeuser iLevel, TJI, and Structurwood distributor between Kentucky and Colorado.

Source: Forest Products Supply Co., January 10, 2008

NAHB Introduces Certified Green Professional Designation… A new professional designation program from the National Association of Home Builders (NAHB) will soon provide home buyers with additional assurance that the builder or remodeler they’ve chosen is authentically “green.”

The Certified Green Professional™ designation will be unveiled Thursday, Feb. 14 during Green Day at the International Builders’ Show in Orlando, Fla. Application information will be available at the show.

“We know green is the future of building. With the Certified Green Professional designation, we’re helping our qualified members demonstrate to their clients that the future is here,” said NAHB President Brian Catalde, a Southern California home builder.

Builders, remodelers, and other industry professionals must have at least two years of building industry experience and be involved in the construction of at least one home in the past 24 months to apply for the Certified Green Professional designation, Catalde explained.

The designation is based on the “Green Building for Building Professionals” course, a two-day training and education session that more than 700 builders have already completed since the course was piloted two years ago. Candidates must also complete a University of Housing management course, agree to continuing education requirements and adhere to a code of ethics.

Source: National Association of Home Builders, January 10, 2008

U.S. Coalition for Fair Lumber Imports Scrutinizes Canadian Government's Bail-Out of Timber Industry… When Canadian Prime Minister Stephen Harper made public his government's plan for a $1-billion fund to assist economically hard-hit industries such as forestry, fishing and manufacturing, the U.S. Coalition for Fair Lumber Imports decided to take a closer look, perhaps suspecting the aid is little more than unfair subsidies?

Source: LBM Daily, January 14, 2008

Weyerhaeuser sells European iLevel division… Weyerhaeuser announced that it has reached an agreement to sell its iLevel European engineered wood products operations to Finland-based Finnforest. The terms of the sale were not disclosed.

Included in the transaction were approximately 30 sales and technical support associates as well as supply commitments for iLevel wood products.

Source: Home Channel News, January 15, 2008

BC: Tembec Cuts Production… On Monday, Tembec announced that it would take three weeks of production downtime in the form of reduced shifts at its Elko sawmill and corresponding planer mill starting January 14, 2008, as well as at its Canal Flats sawmill and corresponding planer mill, starting January 21, 2008.

"These curtailments are being taken due to the sharp decline in demand for lumber given poor housing market conditions in the United States, low lumber prices and the impact of the high valued Canadian dollar relative to the U.S. currency," said Dennis Rounsville, Executive Vice President and President of Tembec's Forest Products Group. "We are doing all we can in order to minimize the impact of this decision on our employees and the affected communities."

Source: LBM Daily, January 15, 2008

Keeping Older People… According to a survey of 1,000 organizations by Manpower, Inc., only 28% of employers have a strategy to retain people past retirement age. Only 18% have a strategy to recruit workers over 50 years old. There will be a severe shortage of people in the next five years due to many Boomers retiring, a smaller generation of X’ers in the workforce, and the fact that the Millennials (Gen Y) are not all in the workplace yet. Although many firms admit they are having trouble finding qualified workers, they continue to search for young ones, and there are not enough of them. I would suggest finding a way to keep people who don’t want to fully retire yet, and implement a strategy to recruit and hire the many qualified people over 50.

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.

United States Would Arbitrate What It Sees as a Violation of 2006 Agreement… On Friday the Office of the United States Trade Representative announced it would seek arbitration over Canadian aid to its lumber industry. The two governments have apparently failed to resolve their disagreements over the nature of the aid, and arbitration is the next step. "The United States and Canada have tried, through consultations since last April, to address U.S. concerns about new provincial subsidy programs that appear inconsistent with the terms of the SLA (lumber deal)," announced Trade Representative spokeswoman Gretchen Hamel from Washington.

Source: LBM Daily, January 21, 2008

Don’t Let a Fire Leave You in the Cold

Coinsurance penalties can intensify a loss

A fire in a building less than two years old started from an extension cord being used temporarily to carry power to heavy equipment. Over-current apparently damaged the extension cord’s insulation, causing a short in the wire that sparked the fire. Total loss to the building and contents — about $2.5 million.

Claims for property damage from overuse or inappropriate use of extension cords have been increasing with Federated clients. With proper risk management, these fires are preventable. What can you do to prevent fire damage to your property? Here are some helpful hints:

· Walk through buildings and premises daily to check for common hazards such as heating, electrical, housekeeping, and smoking.

· Immediately repair or disconnect hazardous electrical or heating equipment.

· Train employees to follow safe practices for handling flammable materials.

· Keep work areas clean and free of debris.

· Prohibit smoking or allow it only in designated areas.

If limits of insurance are inadequate, you may be responsible for a significant part of the loss due to a common provision, coinsurance, found in most property insurance policies. Simply put, “coinsurance” is an agreement between you and an insurance company that provides reduced property rates in exchange for your maintaining minimum limits of insurance, usually 80, 90, or 100 percent of the value of the property. If your coverage limit is only 60 percent of the required amount at the time of a loss, your loss payment may be only 60 cents on the dollar.

How can you minimize the chances of inadequate limits at the time of loss and avoid coinsurance penalties?

· Obtain an appraisal of your buildings.

· Work with an insurer that is willing to remove the coinsurance provision (as Federated does on almost all of its property policies).

· Meet with your insurance representative at least annually to identify areas of risk and establish adequate limits of insurance.

· Keep business records secure and store copies away from the premises.

Federated’s Annual Client Review® and our Spot Cost Estimator can help. Together, we can establish adequate limits to help avoid inadequate limits if a serious loss should strike.

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

MLA is proud to endorse….

INNER TALK BECOMES YOU

Imagine that you have a friend who criticizes your every move and puts you down. For some of us, that person lives inside our mind. Each of us conducts an internal dialogue. Change your self-talk from negative to positive, and you may find you accomplish more with increased confidence. For example:

Focus on solutions. When you find yourself thinking “this will never work” or “I’m so stressed about this,” take a step back, take a deep breath or take a walk to clear your head. Mentally list or write down your options, and act on them.

Avoid the word “should.” It may signal that you are fulfilling others’ expectations (real or imagined), rather than your own goals. Recognize that you always have choices.

Ease up. Does your internal dialogue label you a failure? If you are trying to kick smoking or lose weight, does one slip make you a loser? Of course not. Don’t waste energy dwelling on setbacks. Remind yourself you’re a worthy, competent person who sometimes makes mistakes, who can learn and do better next time.

Source: Federated Insurance, “Meeting Your Goals for Good Health” newsletter, July 2007

THOUGHT FOR THE DAY

“Change your thoughts and you change your world.” –

Norman Vincent Peale