Lumber Industry News Express

Vol. 5, No. 5 – February 27, 2006

credit card alert

It has been brought to our attention that merchants have been receiving correspondence that may tempt them to contact a new credit card processing provider to upgrade their equipment and subsequently change processors. You might receive such a letter regardless of who currently provides your credit card processing.

The information being circulated states, “Visa & AMEX have announced their intention to discontinue doing business with this processor, affecting thousands of merchants. Data security concerns continue to be a growing concern.” They list account number truncation and outdated equipment as the reason. Many merchants have received this letter although it does not say who “this processor” is.

NOVA, MLA’s endorsed provider of credit card processing services, continually updates their terminal programming based on the strict requirements of the card associations. Occasionally, merchants may need to upgrade their equipment to be able to accept these programs and NOVA will provide incentives to assist our merchants to achieve this.

Please always check the source of correspondence, then call MLA or contact customer service for your current provider. If the source of the correspondence is not your current provider, the letter could be a scam.

NLBMDA Shares Industry Views on Softwood Lumber Trade, Asbestos Litigation

Last week was busy on Capitol Hill, as the full Senate debated NLBMDA-priority asbestos liability resolution legislation, and a Senate subcommittee held a hearing exploring the impact of the U.S.-Canada softwood lumber dispute on U.S. industries. NLBMDA submitted testimony for the softwood lumber hearing, which was useful in highlighting the importance of achieving a lasting solution to this long-standing dispute. With a new Canadian government in place, experts view the next several months as a window of opportunity for a negotiated settlement. NLBMDA will continue to provide negotiators the building supply industry perspective should negotiations resume.

The “Fairness in Asbestos Injury Resolution (FAIR) Act” was temporarily pulled from the Senate floor following a 58-41 procedural vote. Senator Arlen Specter (R-PA) is confident he can round up the final votes needed to secure passage of this bill, and is negotiating with Senate Majority Leader Bill Frist (R-TN) to bring the bill back to the floor when the Senate returns from the Presidents’ Day recess Monday, February 27. Even if you have already contacted your Senators, it is critical that they continue to hear from dealers in their states encouraging them not to give up on this important legislation.

If it cannot garner enough votes to pass now, it is unlikely to be brought up again this year. Asbestos lawsuits are not going to stop simply because Congress gives up - write your Senators today! NLBMDA’s new action center at www.buildthevote.org enables you to send an e-mail to your Senators with just a few clicks of the mouse. For more information, contact Colleen Rocha Levine at colleen@dealer.org.

Legislative Conference Hotel Rooms Going Fast

The NLBMDA room block will be held until March 3rd – that’s this week! After that date, rooms will be available at prevailing rates, which are much higher than the NLBMDA rates of $249 single/double.

So don’t delay, call 202-835-0500 now, and be sure to identify yourself as an attendee of the NLBMDA conference. Early April is a very popular time in Washington, DC, and the hotel is sure to sell out.

GOLF! GOLF! GOLF!

The calendar still says February, but at MLA we’re in full swing planning the golf tournaments coming up this spring. Before your calendar fills up, block these dates and plan to participate in the golf event nearest you. Everyone is welcome, regardless of ability. The only requirement is that you come out and have fun. Here are the dates and locations:

Missouri – Swing-into-Spring Event – May 4-5 at Lake Ozark, Mo. Activities include the annual bass fishing tournament on the 4^th and golf on the 5^th at Bear Creek Valley Golf Club.

Oklahoma – Oklahoma Masters Tournament – First annual golf tournament will be held May 12 at Cherokee Hills Golf Club, Catoosa (Tulsa), Okla.

Kansas – Sunflower Shoot-out – The 17^th annual event is being held at a new location, Tex Consolver Golf Course, Wichita, Kan. on June 9.

These events are open to all dealers and sponsoring associates. For more information, contact Art Brown at MLA, 800-747-6529. We hope to see you at one of these member get-togethers.

LUMBER NEWS – QUICK GLIMPSES

Risk Averse… Pro dealers that install products for builders—and believe that their liability for construction defects or jobsite injuries can be passed onto subcontractors—should take a second look at their exposure.

Source: ProDealer magazine, February 2006 - Read the entire article: http://www.prosalesmagazine.com/

Oregon Legislator Takes the Reigns on State and National Forestry Issues… Today (Tuesday), Senator Gordon Smith will lead a hearing to examine the economic effect of the Canadian softwood-lumber dispute on U.S. Industries. Among those who will testify are Steve Swanson, chairman of the Coalition for Fair Lumber Imports, and Bill Kluting, the legislative representative of the Western Council of Industrial Workers/United Brotherhood of Carpenters of America.

Source: LBM Daily, February 14, 2006

Following Favorable WTO Ruling, Bush Administration Defends Timber Policies… The Bush administration asserted before a Senate subcommittee that tariffs are needed to prevent damage to U.S. businesses as a result of unfair subsidies from Canada’s provincial governments.

“The United States will continue to enforce our trade remedy laws vigorously to ensure that U.S. industry is able to compete fairly,” Deputy U.S. Trade Representative Susan Schwab explained to the Senate Commerce subcommittee on trade. “However, our strong preference is to get off the litigation track and reach a negotiated resolution.”

Source: LBM Daily, February 16, 2006

Housing Construction Soars in January… Construction of new homes and apartments, defying forecasts of a housing slowdown, shot up in January at the fastest pace in more than three decades.

The Commerce Department reported Thursday that building activity was up 14.5 percent last month when compared to December, pushing construction to a seasonally adjusted annual rate of 2.276 million units.

That was the fastest construction rate since March 1973, but it was expected to be a one-time blip caused by unusually warm weather in January that prompted builders to start work on more homes. Analysts are forecasting that housing construction will slow this year as the nation’s five-year housing boom quiets down.

Source: Builder On-Line Business Update, February 16, 2006

Latest Rail Hikes… The Union Pacific and the BNSF Railway recently announced carload rate increases of $250 and more on most lumber and panel commodities, effective this month and next. The railroads say the rate hikes are a function of unprecedented demand, and their need to reinvest to maintain equipment and facilities.

Source: Random Lengths, quoted in NAWLA Bulletin, February 17, 2006

New Canadian Government Doesn't See Quick Fix to Softwood Lumber Dispute… New Canadian Prime Minister Stephen Harper will meet with American President George W. Bush and Mexican President Vicente Fox Quesada later on this month, and while the softwood lumber dispute will certainly be on the agenda, Harper doesn’t expect a resolution to be made there.

Source: LBM Daily, February 22 2006

U.S. Critical of Ontario’s Decision to Subsidize Timber… Ontario’s government released word of a regional aid package worth $191 million (U.S.) for the timber industry. U.S. representatives viewed the subsidies in a less than favorable light, fearing that the announcements would escalate the already tenuous softwood tariffs negotiations.

Source: LBM Daily, February 23, 2006

Last Chance to Send in Applications for Blair Collings 2006 Summer Internship… The annual Blair Collings Internship in Government Affairs provides a once-in-a-lifetime opportunity for the college-aged relative of a member dealer to spend eight weeks interning in the government affairs department of NLBMDA’s Washington, DC, office. Interns have the opportunity to learn about our federal government and issues affecting the building supply industry firsthand. Applications are available at www.dealer.org and please remember that all applications must be sent in by March 1, 2006. For more information or to request an application, please contact Nikki Mayers at nikki@dealer.org or 800-634-8645.

Source: NLBMDA News, February 24, 2006

Calendar of Events

March 8-9 – Basic Estimating Seminar, Kansas City, Mo. (Sold out!)

March 10 – Advanced Estimating Seminar, Kansas City, Mo.

April 3-5 – NLBMDA Legislative Conference, Washington, DC

April 10-11 – Round-Table 2, El Dorado, Ark.

May 4-5 – Swing into Spring, Lake of the Ozarks

May 11 – Board of Directors Meeting, Tulsa, Okla.

May 12 – Oklahoma 1^st Annual Masters Golf Tournament, Tulsa, Okla.

June 9 – Sunflower Shoot-Out, Wichita, Kan.

Deadly Sin #5

Sometimes, treating everyone “equally” can be very unfair.

In a recent seminar, Keeping the Family Business in the Family, Jim Leighty, Ph.D., noted author and Federated’s Director of Business Planning, discussed 10 Deadly Sins to avoid when designing an exit strategy for a family-owned business.

According to Leighty, “Deadly Sin Number 5” is Confusing Equality with Fairness.

When first asked about their estate planning wishes, a couple may often say, “We want to treat all of our kids fairly – we don’t want any fighting after we’re gone. That’s why we’re leaving our (company) stock to all three kids.”

But a little later in the conversation, they may likely say, “No matter what, our child who is active in the business should control the business.”

Sometimes, treating everyone “equally” can be very unfair. Stock ownership by heirs who are inactive in the business denies majority control to the successor responsible for the survival and success of the business.

Initially, many couples think that fairness means splitting assets equally among the children. After consideration, they understand that what they really want is equality in value for each child, not necessarily equality in assets.

Once their goal is clarified, they can work with a legal specialist to plan the proper mix of assets and values.

To create an exceptional exit strategy, Leighty recommends that all business interests be left to family members who are active in the business and will make it prosper. But, make sure your funding plans allow for all children to receive an equal value—then, everyone receives a fair share.

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

MLA is proud to endorse….

THOUGHT FOR THE DAY

“Thanks to the Interstate Highway System, it is now possible to travel across the country from coast to coast without seeing anything.” – Charles Kuralt

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