Vol. 7, No. 3 – February 4, 2008

 

 

MLA Announces New Program for Members

 

Most retailers agree that accepting credit cards brings higher sales at the cash register. But, to extend this convenience to consumers, merchants pay transaction fees, which fluctuate in amounts based on several factors. MLA has found a way to save you significantly in this area.

 

In November, the MLA Board of Directors heard the details of a new credit card concept that could save your company a lot of expense in credit card processing. They unanimously endorsed this concept and steps were taken to make this program available to MLA members.

 

The new MLA Co-Op Program is a true cost-up program. We’ll be working closely with Sam Nardi and Brian Relph, of Merchant Services of North America, who will be marketing this program to members. Their partner, CentralBANCARD, an Iowa-based company, www.centralbancard.com, will handle the account set-up and full monetary and technical support. We are extremely happy with their knowledge, experience and immediate “on-demand” customer service / technical support.

 

Credit Card Processing is not what it used to be: Easy. Today, Visa and MasterCard have several dozen ways they bill for the many different card types.  Most banks and processors think it’s easier for you to understand it if the bill is in three or four categories. That is partially true, but the end result is that you pay more and the bottom line is effective rates over 3 percent.

 

Part of your expense is related to the way information is entered in the credit card terminal. The most important step merchants can take is to enter all required data when prompted by their credit card terminal. It saves money. That’s what makes MSNA such a great partner for this program. Once you sign up with them, they will work with you and your staff to train everyone to optimize your savings.

 

This program has cut costs on average of 20 percent to more than 100 lumberyards so far in the Illinois Lumber and Material Dealers Association and the Southern Building Materials Association, bringing cost savings of well over $25,000 monthly or $300,000 annually. We are extremely excited to bring this same program to MLA members.

 

The next step is as easy as 1 – 2 – 3:

 

1)   Nancy Salerno will call you to set a time to review details and ask you to fax your current V/MC statement to “ME” at 815-455-5317. 

2)   MSNA will analyze it and fax back your results.

3)  They will follow up with you to explain your savings, answer questions and help you enroll.

 

You should have already received information about this exciting new program. If you’d like to know more, call the MLA office at 800-747-6529.

 

 

STILL TIME TO REGISTER FOR WORKSHOP!

 

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 Kansas City, Kan. on March 4-5. The early-bird deadline has been extended to Feb. 15 – 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:

 

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.

·       Sign up by February 15 – 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.

 

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

 

 

Congressional Outlook 2008

 

Congress returns to Washington January 22, with the 2008 presidential primaries in full swing. On the forefront of the legislative agenda is completion of the Farm Bill, passed by the Senate in December but now needing to be reconciled with the House. They will also continue to focus on steps to help the housing crisis, and continue debate on Iraq. Tax reform and health care will be debated, but major legislation on either subject is unlikely to see final passage during the highly partisan atmosphere of an election year.

 

NLBMDA will continue to press forward on the Innocent Sellers Fairness Act (H.R. 989), placing particular emphasis on building grassroots relationships between dealers and the moderate, pro-business Democrats whose support will be critical to moving our legislation forward. Make plans now to join us in Washington March 31 – April 2 for NLBMDA’s Legislative Conference and help us continue to build on the momentum created in 2007 for this essential liability protection for the building supply industry, and to ensure your voice is part of the debate on the important issues facing the industry.

 

Energy Bill Signed Into Law with Green Building Mandates

 

In mid-December, President Bush signed the “Energy Independence and Security Act” into law. The bill represents a year-long effort to address renewable fuels, auto fuel efficiency and green buildings. The bill increases the fuel efficiency standards for cars and light trucks, and directs steps to be taken towards the establishment of efficiency standards for heavy trucks as well. This could mean higher up-front costs for delivery vehicles in the future, but ideally this will be offset by fuel savings. The bill contains mandates for “zero net energy” federal buildings, commercial buildings, manufactured and affordable housing. The final language is rating system neutral, after attempts to mandate LEED-only certification for federal buildings were successfully blocked. The bill establishes an Office of Commercial High-Performance Green Buildings to focus on research, education and technical assistance. It is likely that these initiatives will be expanded to residential construction and NLBMDA will continue to monitor these efforts.

 

Source: NLBMDA Advocate, January 2008

 

 

 

 

SAVE THE DATE

 

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

 

UFPI Closes Six Plants… Citing a deteriorating housing market, Universal Forest Products, Inc. has announced the closure and intended sale of six U.S. and Canadian plants, located in North Carolina, Mississippi, Indiana and Ontario, Canada.

 

UFPI President and CEO Michael B. Glenn remains optimistic about the company's financial future. “We’ve worked hard to maintain a solid financial position in the face of a housing downturn that had a devastating impact on so many other companies,” he said. “Our balance sheet is strong and we continue to generate positive cash flow, which will help fuel our ongoing growth strategy.”

 

Source: LBM Daily, January 22, 2008

 

Paulson Remarks on the Economy… Secretary of Treasury Henry Paulson Jr. remarked on the economy when speaking to the U.S. Chamber of Commerce: “The U.S. economy is experiencing a significant housing correction. This was inevitable after years of unsustainable home price appreciation, and it is exacting a penalty to our economic growth. That, coupled with high energy prices and capital market turmoil has caused our economy to slow materially in recent weeks.

 

“We are already taking aggressive action to minimize the impact on homeowners and the real economy by preventing avoidable foreclosures. We will continue to work with Congress to do more on housing. At the same time, we will work with Congress to quickly enact a broader temporary growth package to support our economy this year, as we weather the housing correction. The President has asked me to lead this effort, and so far we are engaged in a collaborative, bipartisan process that should result in a robust, broad-based, temporary growth plan that can be swiftly passed and enacted.”

 

Source: U.S. Dept. of Treasury, January 22, 2008

 

Lumber Prices Hit Two-Year Low… Prices for some construction materials such as lumber and finished items are at a two-year low due to weakening demand for building supplies around the U.S. and a seasonal downturn in local construction activity.

 

According to the National Association of Homebuilders, the price of composite lumber as of Jan. 11 was $256 per 1,000 board feet. Prices last dipped below $260 per 1,000 board feet in early 2005.

 

Source: Builder Business Update, January 22, 2008

 

Homebuilder Centex Reports 3rd Quarter Loss… Centex Corp, ranked number 4 among U.S. home builders, reported Tuesday its third-quarter loss widened, due to continued slow sales and falling home prices.

The U.S. Commerce Department said in a statement Monday that sales of new single-family homes fell 26 percent in 2007, a record low.

Centex reported a third quarter loss of $975.19 million, or $7.94 per share.

 

Source: LBM Daily, January 30, 2008

 

NLBMDA Calls for Green Lumber Standard… The National Lumber and Building Materials Dealers Association (NLBMDA) is seeking to simplify chain-of-custody issues for its members through a new grade stamp on eco-friendly lumber.

 

Through its affiliated group, the LBM Institute, association members have asked the American Lumber Standards Committee (ALSC) to adopt an eco-forest management standard, accredit agencies to certify the standard and establish a grade stamp similar to other designations for dryness, size and species.

 

The request was submitted to the ALSC on Jan. 4. A spokesperson for ALSC, an independent agency that oversees the accreditation of softwood and pressure-treated lumber, told Home Channel News that the proposal is under review and will be discussed at an upcoming meeting.

 

If adopted, the new grade would identify each piece of lumber that is milled from ecologically managed forests. Lumberyard dealers would no longer have to keep the lumber physically separate all the way to the job site; nor would they need to maintain proof of certification and other paper documentation to prove its eco-lineage. These practices, currently required by some green building designations, add costs to the building supply channel, particularly at the builder and retailer end, according to the proposal.

 

The LBM Institute is the research and education arm of the NLBMDA, a Washington, D.C.-based trade organization that represents more than 8,000 lumber and building material distributors across the country.

 

Source: ProDealer Digest, Home Channel News, January 30, 2008

 

NAR Says Economic Stimulus Legislation Will Help Jumpstart Sluggish Housing Market… The National Association of Realtors congratulated the U.S. House of Representatives and President Bush for their bipartisan actions to help families in need, the housing market, and the U.S. economy.

 

“We believe the economic stimulus bill approved by the House today is good legislation in that it can quickly be signed into law, quickly be implemented, and therefore, would quickly have an impact on families and the nation’s economy. We are pleased that both the Federal Housing Administration (FHA) and the Fannie Mae and Freddie Mac (GSE) loan limits have been increased, even if only temporarily,” said Richard Gaylord, NAR president.

 

Source: National Association of Realtors, January 30, 2008

 

Text Messaging for Recruiting Generation Y… If the Millennial Generation is sometimes known as the text messaging generation, then you might want to think about how to use this technology in your recruiting. Savvy employers are starting to add a text messaging component to their job ads. Now we are beginning to see ads run at college basketball games and arena concerts on the big screens.  Attendees are asked to text a word to a specific number, and in return will get a website where they can apply for a job. Radio advertising during prime drive time is asking interested people to text a word to a number and they get a reply about open houses, interviews, and a website to submit their application. This is a cutting edge trend that will not go away.

 

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.

 

Weyerhaeuser May Sell Commercial Construction Sales Division… Timber giant Weyerhaeuser announced on Friday the possibility that it will sell all or pieces of its commercial construction sales division, which currently employs 320 workers.

 

"The decision to proceed with a strategic alternatives review is driven by our desire and need to focus on our core strategies in the residential structural frame market," explained Lee Alford, senior vice president of residential wood products.

 

Source: LBM Daily, February 4, 2008

 

President Signs Bill Expanding FMLA Coverage… President Bush signed a defense authorization bill that includes an expansion of coverage under the Family Medical & Leave Act (FMLA) to families of military personnel.

 

The National Defense Authorization Act for FY 2008 expands unpaid FMLA leave to family members of military service personnel on active duty or in need of care after being wounded in combat. It covers family members of the National Guard and military reserve units as well as full-time military units. Family members would qualify for up to 12 weeks of FMLA leave and up to 26 weeks of FMLA leave to care for a combat-wounded service member.

 

It does not change the coverage threshold. The law and its new provisions apply to employers with 50 or more employees.

 

The law takes effect immediately.

 

Source: North American Retail Hardware Association, Washington Alert, February 4, 2008

 

Strategies to Face Today’s Risks

 

Business owners purchase insurance to protect them from the risks that could cause the most damage to their businesses. In past decades, those potential catastrophic risks were fire, storms and accidents. Today, these risks still exist, and a host of others have been added: the threat of terrorism, environmental exposures from mold, asbestos and other contaminants, exorbitant liability lawsuits, and increased costs from medical inflation. Many of these emerging risks are beyond the control of insurers or any one industry, but there are steps that business owners can take to help alleviate the worry.

 

Today, it’s more important than ever to pay attention to safety and security. And, the best way you can control costs is by investing in loss prevention strategies and taking measures to reduce or eliminate the possibility for loss. It is also critical that you assume more control of your insurance program. These steps will help you get on the right track: First, select a stable insurance company; second, obtain your loss history from your current and past insurers; and third, assign a “designated risk manager.”

 

Choose your insurer carefully

In today’s environment, financial stability and corporate accountability is paramount. Choose a company rated A or better by the leading insurance industry analyst, the A. M. Best Company, and rated highly by others as well. Also, look for risk management assistance from your insurer that will help you develop good business practices that prevent losses and save profits. It is equally important to work with an insurance company experienced in insuring your industry.

 

Assign a “designated risk manager”

Companies that have an individual specifically assigned to prevent and reduce losses are the most successful at controlling them. Top management must support the designated risk manager. This person is responsible and accountable for identifying loss exposures and implementing risk management solutions. The goal is to change ineffective business practices that often lead to losses that can adversely affect your bottom line.

 

Tips to obtain affordable insurance

Start your insurance renewal process early, three to six months before your policy’s expiration date, even sooner if you have several locations. Find out what types of records are needed and organize all information before meeting with your insurance representative. Present your loss information and financial statements early in the quoting process and make sure all information is complete. Also provide other critical information about your business such as your safety program, driving standards and motor vehicle report (MVR) procedures, hiring practices, unique risks, etc. If you need to contact several insurance companies to gather your loss information, start early. Many companies require key information to be submitted two to three months before your renewal.

 

The best advice is to establish or improve upon sound risk management practices that will help you remain profitable and provide some peace of mind during worrisome times.

 

 

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

MLA is proud to endorse….

 

 

 THOUGHT FOR THE DAY

 

“It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.” – Charles Darwin