Vol. 5, No. 6 – March 13, 2006

NLBMDA Cost of Doing Business Study

Participation in the 2006 NLBMDA Cost of Doing Business Survey is now OPEN and ready for your company’s data. This year we are excited to offer the survey in an Excel worksheet format with easy, step-by-step instructions. You will find the survey on the NLBMDA website, www.dealer.org. Simply return the file by May 4 to Steve Davis at sdavis@mgtstrategies.com or by post to:

MGT Strategies

P.O. Box 4008

Greenville, SC 29608

In addition to the benchmark of your performance vs. other CODB participants, you will be provided with a personalized forecasting tool. The tool will be an interactive Excel spreadsheet that will allow you to run forecasted financial statements and cash flow analysis, based on your past year’s performance, and projections for some key variables such as projected sales change, gross margin, inventory turns, salary, and other expense changes. You will also receive a complimentary copy of the industry report for participating.

As an added benefit, a complimentary regional report with be provided for states in our region if we have at least 15 members participating in the survey. We think this will be a great tool, so please plan to participate in this important study.

As always, all information is completely confidential and will be used strictly for the purpose of compiling this report. If you need additional information after reviewing the survey, please contact:

Steve Davis, our consultant at MGT Strategies at 864.322.8874 or info@mgtstrategies.com or

Anna Gilbert, NLBMDA Program Assistant at 800.634.8645 or Anna@dealer.org.

Please make your check for $150 payable to NLBMDA and return to MGT Strategies at the address above.

Another useful tool – Strategic Analysis Program

For those of you who are looking for an additional financial tool, MGT Strategies has developed a program that is easy to use and provides quarterly updates of trends and benchmarking data. Trend analysis reports are provided within 10 business days from data submission and benchmarks are provided within 45 days of every quarter end. Contact MGT Strategies by phone or email for more information on how you can participate in this valuable program.

Thank you for your participation in NLBMDA’s Cost of Doing Business Survey and please look for your completed industry report in June.

GOLF! GOLF! GOLF!

The calendar still says March, 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.

What Needs to be in Your Written Safety Program?

Wednesday March 22, 2006 1:00pm EST

In this teleconference you will learn the issues surrounding written safety programs in lumberyards. If you are unsure where to begin, or are looking to improve your current program, this seminar is ideal. Learn information on the following topics and more!

· Where do I start? What is the most common mistake in starting a safety program?

· What criteria does OSHA use for evaluating a safety program? Can OSHA ask to see our written safety program? Do we have to show it to them?

· Does a lumberyard have to have a written safety and health program?

· What is all this talk about a Hazardous Communications Program?

· Can a written safety program actually get you out of a citation from OSHA? What about OSHA Consultation Services?

Don’t leave your company vulnerable; register today to participate in this teleconference led by an expert on OSHA requirements.

To complete a registration form, go to: http://www.dealer.org/

LUMBER NEWS – QUICK GLIMPSES

Lanoga Acquires Wolohan Lumber… Principals cite culture and operations match in Wolohan Lumber acquisition that adds additional geographic scale and manufacturing capacity to Lanoga’s United Building Centers. Financial details of the transaction were not released, but the deal is expected to close on March 27 and bring all of Wolohan’s 18 locations in Michigan, Ohio, and Indiana, and $140 million in 2005 gross sales into the fold of Lanoga’s Winona, Minn.-based United Building Centers (UBC) division.

Source: ProSales Online, February 28, 2006

U.S. Senate Wants to Derail Bush Land Sale… Senators from both sides of the aisle came together Tuesday to challenge the Bush administration’s plan to sell off over 300,000 acres of national forestland. The Bush plan would use the profits from the sale to help pay for rural schools in 41 states. Senators maintain that the short-term gains of the sale would not make up for the permanent loss of public lands.

Source: LBM Daily, March 1, 2006

Canadian Ambassador Reveals That A Deal Was Near… Canada’s outgoing ambassador, Frank McKenna, told media sources Wednesday that an agreement regarding long-disputed softwood tariffs between the U.S. and Canada had been in the offing before the Canadian elections in January.

Then Prime Minister Paul Martin apparently pushed heavily for the deal, McKenna reported, but political leaks helped derail negotiations.

Source: LBM Daily, March 2, 2006

Job Rotation Rewards… When people do the same thing all day, day in and day out, they can get stale. This impacts their creative thinking. They become used to doing things in a certain way, and tend to repeat that behavior, no matter what the circumstances are. They don’t think about what a better alternative might be. It pays to rotate people on and off certain jobs, so that they are fresh mentally and creatively. Increase your cross training so people can do other jobs. You will see their creativity and problem solving abilities increase along with their morale and job satisfaction.

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.

U.S., Mexico Smooth Out Cement Deal… Negotiators from the United States and Mexico have resolved the final sticking points in a deal that will end a 16-year dispute between the two nations over cement, officials said Friday. The United States began imposing penalty duties on Mexican cement back in 1990 after ruling the cement was being sold in this country at unfairly low prices, a practice known as dumping.

The agreement will take effect in April. It will clear the way for imports of cement from Mexico to increase from 2.2 million metric tons last year to 3 million metric tons annually. The U.S. tariffs, which have added $26 to the price of each ton of cement, will drop to $3 per ton over the next three years.

Source: Builder On-Line Business Update, March 7, 2006

Orgill Inc. to Acquire Certain Assets of Wright & Wilhelmy Co…. Ron Beal, President and CEO of Orgill, Inc. has announced that Orgill has signed a Letter of Intent to acquire certain assets of Wright & Wilhelmy, a 131-year-old wholesale hardware distributor based in Omaha, Neb. The addition of the Wright & Wilhelmy sales force and customer base is expected to significantly increase Orgill’s penetration into the states of Nebraska, Kansas, Iowa, North Dakota, and South Dakota. Beal stated that the transaction is expected to be completed before the end of March 2006.

According to Orgill Executive Vice President and CFO Byrne Whitehead, Orgill intends to offer Orgill’s complete product assortment and service offerings to Wright & Wilhelmy’s customers immediately. Whitehead further stated that the existing Wright & Wilhelmy distribution center will operate as an Orgill redistribution branch supplied by Orgill’s Memphis distribution center.

Source: Orgill News & Information, March 10, 2006

Calendar of Events

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.

May 15 - Deadline to advertise in the MLA Buyer’s Guide

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

First Impressions Work Both Ways

An interview with a prospective employee may reveal characteristics that help you judge the person’s safety attitude and behaviors. Generally, interviewers cannot ask about an individual’s health, disabilities, sick leave or workers’ compensation history, or health benefits records. However, you may ask relevant questions about how the applicant might handle certain situations that can normally arise in the particular job. Merely asking these questions expresses your commitment to safety.

Even if the job description does not include driving, checking the prospect’s motor vehicle record is recommended if allowed under state law. Violations for speeding, recklessness, or other such behavior may indicate a lack of consideration for the person’s own safety or that of others. Reference checks are always a good idea and criminal background checks may be warranted in some cases.

In a study of workers’ compensation claims, Federated found that a significant number of losses involve newer employees, particularly in their first six months. New employees want to appear knowledgeable and experienced and may hesitate to ask questions. They may rely on past job experience, observation or hearsay to form work habits that may not always be correct.

An orientation program will help assure that new employees understand your safety procedures, conduct guidelines and instructions for handling emergencies. Ongoing reminders help increase awareness for all employees. Finally, make sure to properly train new employees in performing their duties and using all equipment safely.

First impressions set the direction for future success. Your hiring and training procedures can make an impression about your commitment to safety and get new employees off to a good start.

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

MLA is proud to endorse….

THOUGHT FOR THE DAY

“It’s not enough that we do our best; sometimes we have to do what’s required.” – Winston Churchill

MLA LINE

Lumber Industry News Express

Vol. 5, No. 6 – March 13, 2006

NLBMDA Cost of Doing Business Study

First Impressions Work Both Ways

Mid-America Lumbermens Association