Vol. 7, No. 4 – February 18, 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.

 

 

Source: North American Retail Hardware Association (NRHA), Washington Info Alert, February 4, 2008

 

A FEW SEATS STILL LEFT!

 

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.

                                                                                    

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 $325 per day.

• Two-day workshop package ~ $495 for the first person from a member firm ~ $475 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.

 

 

Key Components of Economic Stimulus Bill

 

As you are no doubt aware, Congress passed a federal economic stimulus bill earlier this month. According to Treasury Secretary Henry Paulson Jr., "It was a pleasure to work in a bipartisan spirit with House and Senate leaders to act quickly to support our economy and create jobs this year.   Our cooperative effort demonstrates to the nation and the world that we can come together to address the needs of the American people.”

 

Thanks to our friends at Michigan Lumber & Building Materials Association, we provide this “at a glance” summary of key components.

 

Provisions for Individuals:

• It is expected that checks will begin to be distributed in May.

• Up to $600 rebate check ($1,200 for joint filers).  

• Flat $300 rebate check for any tax filer with at least $3,000 in earned income or tax liability of at least $1 in 2007.

• $300 bonus for each dependent child.

• Social Security income and federal payments to disabled veterans and their widows to be counted as earned income for the purposes of determining rebate eligibility.

• Income caps to phase out rebates for individuals with an adjusted gross income of more than $75,000 or joint filers with an AGI in excess of $150,000. Bill trims total rebate by 5 percent for each $1,000 in earnings over the cap.

 

Provisions for Businesses:

• Businesses may expense up to 50 percent of value of capital goods placed into service in 2008.

• Nearly doubles the maximum amount that businesses can write off under tax code Section 179 , from $128,000 to $250,000 during 2008, and raises phase-out threshold from $510,000 for 2008 to $800,000.

 

Provisions for Housing/Financial Services Sector:

• Temporarily raises limit on government-sponsored enterprises conforming loans and Federal Housing Administration-insured loans to $729,750.

 

To link to the Treasury web site and view a “Fact Sheet” showing examples of how the stimulus package will affect people in different income brackets and circumstances, click here.

 

 

 

LUMBER NEWS – QUICK GLIMPSES

 

Proposed Federal Gasoline Tax Increase... The National Surface Transportation & Revenue Study Commission released a report calling for an increase in the federal gasoline tax by as much as 40 cents a gallon over five years to pay for infrastructure improvements, including more investment in high-speed rail and other modes of transportation. An alternative source of revenue cited is a vehicle miles traveled fee. The commission said the U.S. would need to spend $225 billion a year for the next 50 years to fix current problems and address future transportation needs.

 

Source: NRHA, Last Week in Washington, February 4, 2008

 

Slump Fuels Home Lot Sell-Off… Home sales are down, but there's a mini land-buying spree going on in metropolitan Phoenix.

Home builders are selling off land that they can't sell homes on in the near future. Investors are buying home lots for bargain prices, which lets them hold onto the properties until the demand for homes picks back up.

In the last few weeks of 2007, as many as 8,000 vacant but finished home lots ready for construction sold in the Phoenix area, according to Scottsdale-based land brokerage and consulting firm Nathan & Associates.

 

Source: Builder Business On-Line Update, February 5, 2008

 

Canadian Legislature Unanimously Approves Forestry Aid Package… There was all-party agreement in Canada's House of Commons on Tuesday to fast-track legislation to create a $1-billion relief fund for laid-off forestry and manufacturing workers across Canada. This means the communities which have been hardest-hit by the slowing U.S. economy and the value of the dollar could expect funds to begin flowing within weeks. If the bill is approved by the Senate this week, it could be given royal assent as early as Thursday, freeing the government to create the fund and begin dispensing the money.

 

Source: LBM Daily, February 6, 2008

 

ProBuild Completes Purchase of HD Supply Lumberyards … ProBuild Holdings has announced the completion of its purchase of HD Supply’s LBM assets, a collection of 39 lumberyards, seven truss plants, 10 engineered wood production facilities and a construction services division, all located in Florida and Georgia.

 

Terms of the sale, first reported by Home Channel News late in November, were not disclosed. The purchase follows other acquisitions in the Florida and Georgia markets by the Denver-based ProBuild, now the nation’s largest distributor of building materials to professional customers. In a prepared statement, CEO Paul Hylbert said the company will continue to pursue an aggressive strategy in the Southeast, which he described as a “long-term, high-growth housing market.” ProBuild now operates more than 520 locations in 40 states.

 

The remainder of HD Supply is still owned by three private equity groups, who bought the entire division from Home Depot on Aug. 23 for $8.5 billion. The LBM side of the business, now spun off to ProBuild, was built upon three major acquisitions: Williams Bros. Lumber outside Atlanta; Cox Lumber in St. Petersburg, Fla.; and Forest Products Building Materials in Sarasota, Fla.

 

Source: ProDealer Digest, Home Channel News, February 6, 2008

 

TimberWest Forest Corp. to Close Elk Falls Sawmill… TimberWest Forest Corp announced on Thursday that it will be closing its Elk Falls sawmill on Vancouver Island. The company has been trying to sell the mill since 2005. The mill employs more than 250 workers and produces approximately 115 million board feet a year.

 

Source: LBM Daily, February 8, 2008

 

Weyerhaeuser Posts 4Q Results… Weyerhaeuser has shown that it too is feeling the effects of the slumping U.S. housing market, posting a $63 million loss.

 

"The continuing erosion of the U.S. housing market created very unfavorable market conditions for our timberlands, wood products and real estate businesses," said Steven Rogel, CEO and chairman, in a statement. He added that he expects difficult market conditions to continue through 2008.

 

Source: LBM Daily, February 11, 2008

 

Wheeler's Files for Chapter 11 Bankruptcy Protection… Wheeler's Building Materials, the Rome, Ga.-based dealer that ranked 24th on the 2007 ProSales 100, filed Monday for protection against creditors under Chapter 11 of the federal bankruptcy laws, the Rome News-Tribune reported Tuesday. “We will figure something out. We always have,” chief executive officer Mark Manis told the newspaper. “It’s a sad day, but these are sad times for the whole building industry.” Wheeler’s officials didn’t respond to ProSales’ requests for comment.
Read More

 

Source: ProSales Business Update, February 13, 2008

 

Create a Niche to Increase Sales… Retaining customers and targeting local markets are key to building a shop's clientele. "A small independent store has to have a niche, has to be known for something, because you simply can't compete with the bigger stores in things like pricing and advertising," according to one expert. CNNMoney.com/Fortune

 

Source: U.S. Chamber of Commerce, SmartBrief, February 13, 2008

 

New NAHB Green Standard… The new National Green Building Standard will maintain the flexibility of green building practices while providing a common national benchmark for builders, remodelers and developers – another big step for the green building movement, said panelists today at a news conference during the International Builders’ Show in Orlando, Fla.

 

The first and only true consensus-based standard for residential green building is in its final comment period and almost ready for prime time, according to the National Association of Home Builders (NAHB).

 

The National Green Building Standard is expected to be approved by the American National Standards Institute (ANSI) and published by NAHB and the International Code Council (ICC) early this spring, a panel of builders and those involved in the standards process told reporters. The ANSI process ensures that the best technical reviews were used to create the standard.

 

The latest public comment period closed on Feb. 4 and more than 600 comments were logged. Consensus committee members, who represent all facets of the home building industry as well as government agencies and the environmental community, have until March 3 to register their votes on the public comments.

 

Source: National Association of Home Builders, February 15, 2008

 

Identity Theft Tops Fraud Complaints… Congress cleared two bills to assure the popular national Do-Not-Call Registry continues to protect consumer privacy. One makes the registry permanent by eliminating the five-year limit on do-not-call registrations; the other gives the Federal Trade Commission (FTC) a permanent right to collect fees from telemarketers and standardizes annual fee increases.

 

Also on the privacy front, the FTC reports that, for the seventh straight year, identity theft topped its list of consumer fraud complaints. Credit card fraud was most common, followed by utilities fraud, employment fraud and bank fraud.

 

Source: NRHA, Last Week in Washington, February 18, 2008

 

Employers Must Pay for Most Personal Protective Equipment

New OSHA rule clarifies old standards.

 

This month, new regulations regarding personal protective equipment (PPE) go into effect. The rule, promulgated by the Occupational Safety & Health Administration (OSHA) in late 2007, clarifies what PPE employers are required to provide at no cost to their employees. Previous OSHA standards had established that employers must provide PPE, but the issue of who must pay for it had been unclear. The new rule obligates employers to pay in most cases, but does not require employers to provide PPE where none was required before. Employers must comply by May 15, 2008.

 

The list of all equipment covered in the rule is rather long and pertains to industries outside of construction, but the items relevant to remodeling companies are listed.

OSHA estimates that employers previously paid for 95% of the PPE covered in the rule, as a business practice. Indeed, the added burden on employers as a result of the regulations is minimal. There's no formal recordkeeping requirement, but the text of the rule states that the standard practices of keeping receipts for tax purposes should be enough to resolve any dispute. Given that a complaint by an employee would likely turn into a “he said, she said” situation, however, it might be a good idea to take extra steps. D.S. Berenson, managing partner of construction law firm Johanson Berenson LLP, suggests that companies “on the radar screen for OSHA issues” should talk with an expert about a compliance program. “You'll get your head handed to you one day if you don't,” Berenson says.

 

The rule gives significant wiggle room on how PPE gets into the hands of employees. Keeping a stock of PPE handy seems to be the method that minimizes administrative issues, and purchasing PPE for employees on an as-needed basis seems relatively painless, as well. Some companies may prefer to provide workers with allowances for purchasing their own PPE, or to reimburse employees. That's fine with OSHA, as long as employers are diligent about doing so in a timely fashion.

 

Source: Remodeling Online Update, February 1, 2008

 

For more information and a complete list of PPE, click this link:

http://www.remodeling.hw.net/industry-news.asp?sectionID=194&articleID=651388

 

For help with your compliance issues, contact Brittney, Inc. at 866-248-8961. Brittney is MLA’s endorsed provide of compliance services for members. www.brittneyinc.com

 

 

IN MEMORIAM

 

Daniel W. Roever passed away on Thursday, February 14, 2008, at Midland Hospice Care Center in Topeka, after a courageous three-year battle with cancer. Dan was born August 27, 1951 in Hanover, Kansas. He attended schools in Hanover, graduating in 1969. Dan entered the military in 1970, serving four years in the U.S. Air Force. For three of those years, Dan served at RAF Chicksands, England, where he met his wife.

 

They were married in Clapham, England on November 27, 1971. Dan was a member of Our Saviors Lutheran Church in Topeka since 1978. Dan had been in the lumber business, both retail and wholesale, since 1975, with more than 20 years experience with Georgia Pacific/BlueLinx Corporation.

 

Dan is survived by wife Carole of Topeka, son John and daughter-in-law Therese of Olathe, and brother Bill and sister-in-law Mary of Topeka. Memorial services will be held at Our Saviors Lutheran Church, Topeka, at 1:00 p.m. on Thursday, February 21, 2008. In lieu of flowers, the family requests contributions to help cover medical expenses are made to the Daniel W. Roever Memorial Fund c/o Capital City Bank, 3710 SW Topeka Blvd, Topeka, KS 66609.

Published in the Topeka Capital-Journal from 2/15/2008 - 2/16/2008.

 

 

DISTRACTED DRIVING HARMFUL TO HEALTH

 

Distracted driving accidents contribute to higher costs for property and liability insurance due to high repair costs and personal injury lawsuits. They also add to workers compensation costs when employees are injured in vehicle accidents on the job. They even cause harm to your health insurance plan.

 

The medical expenses coverage on your auto policy may range from $5,000 to $20,000 or more. When you are injured in an accident, any medical expenses that exceed that limit are submitted to your health insurance carrier for coverage.

 

Even a minor fender bender with little property damage can cause injuries such as whiplash, muscle strains or cuts that require medical treatment. More serious accidents carry much higher costs - some of which can last for years and cannot be measured in dollars. A few examples from Federated Insurance Company’s group health claims department are shown here. 

• Medical costs for fractured hip and facial bone fractures exceeded $168,000. Ambulance cost was $7,300, hospital expenses $130,400, and other medical expenses $30,400.

 

• Costs for skull fracture and eye injuries were over $100,000. Ambulance expense was $10,000, hospital over $47,000, and other medical expense $43,000.

 

• Just over $1 million spent in the first 18 months for spinal cord injuries suffered in motor vehicle accident.

 

What can you do to help prevent these types of accidents and help to keep health insurance costs from rising?  Follow safe driving practices and use Federated’s safety program Distracted Driving – At What Cost? to encourage your employees and family members to do the same. 

 

 

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

MLA is proud to endorse….

 

 THOUGHT FOR THE DAY

“You can change without improving, but you can’t improve without changing.”