MEMBERS GATHER IN WASHINGTON

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.

New Canadian Ambassador Meets with NLBMDA

U.S. Lumber Consumer Alliance Addresses Issue of Softwood Lumber Trade

[Washington, DC – March 29, 2006] — National Lumber and Building Material Dealers Association (NLBMDA) lobbyist Colleen Rocha Levine met last week with new Canadian Ambassador to the U.S., the Honorable Michael Wilson. Newly arrived in Washington, this was the ambassador’s first briefing from U.S. lumber consumers on the issue of softwood lumber trade. Also represented at the meeting were fellow members of the American Consumers for Affordable Homes, a 17-member alliance founded by NLBMDA and the National Association of Home Builders in 2000. 

“NLBMDA continues to lead efforts in Washington to build Congressional and administration support for free trade in softwood lumber between the U.S. and Canada,” said Shawn Conrad, NLBMDA President. “Over the past several years we have garnered the support of nearly 140 members of Congress for ending trade restrictions on Canadian softwood lumber.”

Canada is our nation’s largest trading partner and supplies more than a third of the lumber demanded by our housing industry. Lumber consuming industries in the U.S. provide more than 6.5 million jobs: 25 to 1 when compared to those in the forestry industry. NLBMDA most recently helped repeal the so-called Byrd Amendment that was a primary obstacle to reasonable negotiations towards an enduring settlement.

With President George W. Bush and Prime Minister Paul Martin set to meet at the end of the month in Mexico, this meeting came at an opportune time to ensure Canada’s leaders are fully aware of their support within the United States.  NLBMDA continues to call on the Administration to honor our commitment under NAFTA and lift the current duties on softwood lumber imports that have repeatedly been found illegal under that bilateral trade agreement.  As both sides prepare to return to the negotiating table, NLBMDA remains committed to achieving a lasting solution that does not include market-distorting measures such as a quota or export tax.

Data Shows U.S. Housing Boom Over… The five-year housing boom in the United States is indeed over, judging from growing statistical evidence and the performance of some of the nation’s leading builders, and the slowdown is already rippling through the economy.

In recent weeks, the U.S. Commerce Department reported that January sales of new single-family homes fell 5 percent – the fourth decline in seven months – and the backlog of unsold new homes hit a record.

And the National Association of Realtors said used home sales slipped 2.8 percent in January, the fourth straight drop and 5 percent below January 2005.

Source: CNN, quoted in the NAWLA Bulletin, March 21, 2006

Stock Building Supply Acquires K&A Lumber Company… Stock Building Supply, a leading supplier of building materials and services to professionals in the United States, today announced the acquisition of K&A Lumber Company, in Homestead, Fla. K&A is a leading supplier of framing lumber and rebar to commercial and residential builders in south and central Florida.

Source: NAWLA Bulletin, March 21, 2006

Despite Urging, Canada Sees No Softwood Progress This Week… Despite appeals from the Canadian Chamber of Commerce and British Columbia Premier Gordon Campbell, Canadian Prime Minister Stephen Harper does not foresee any progress being made in the softwood lumber dispute this week, when he meets with U.S. President Bush in Cancun.

President and CEO of the Canadian Chamber of Commerce Nancy Hughes Anthony on Monday called on both sides to resume discussions. “If there is a single economic issue that is certain to be discussed by U.S. President Bush and Canadian Prime Minister Harper at the March 30-31st Cancun summit, it is softwood lumber. And it should be, because the timing is right to find an enduring solution,” she wrote.

Source: LBM Daily, March 28, 2006

Can An Employer Require Employees To Lead Healthy Lives?… A Michigan employer made news last year by terminating employees who refused to quit smoking (over 15 months). Now that same employer is requiring its employees to take mandatory medical tests and physical examinations or face increases in their out-of-pocket monthly healthcare premiums. The employer says it is not discriminating against unhealthy employees, but pushing them to adopt healthier lifestyles to reduce their health costs as well as the company's health costs. The employer's practices are contentious. Employee groups, and many legislators, argue that what the employee does off the job is none of the employer's business so long as the activities are legal, and that includes smoking, drinking, recreational activities, and even overeating and other unhealthy activities/

Some states have already passed laws stating that employees cannot be terminated for engaging in legal activities, including smoking, and we are seeing laws prohibiting the use of genetic information as a basis for hiring, promoting or terminating employees. With skyrocketing health costs, employers are looking for ways to reduce their health cost exposure so this debate is just getting started.

Source: The Howe & Hutton Report, quoted in NACM E-News, Weekly Update, March 28, 2006

Retailing… Believing that more sales are to be made in the “do it for me” market, Lowe’s is testing an in-home sales program. Lowe’s, based in Mooresville, N.C., is testing its new program in Atlanta, the hometown of its rival Home Depot. In the program, Lowe’s employees go to customer’s homes and help them on the details of their home improvement project and make them comfortable with big-ticket purchases. Last year, Lowe’s installation-related sales accounted for 6 percent of the retailer’s $43.2 billion in sales. Sales in that department increased 9.1 percent in the past five years, almost double the 4.8 percent increase in do-it-yourself sales.

Source:  HCI Business Report, March 30, 2006

Canada, U.S. Take Steps To Resolve Softwood Lumber Dispute… At the summit in Cancun, U.S. President George Bush and Canadian Prime Minister Stephen Harper showed positive signs that softwood negotiations would resume, even though the two differ on whether they would be full negotiations or “talks about what to talk about.”

“I assured him that our intention is to negotiate in good faith, in a timely fashion, to resolve this issue,” said Bush.

Source: LBM Daily, March 31, 2006

U.S. Wins Latest Softwood Lumber Ruling by WTO, Still Optimistic for a Resolution… In the latest chapter of the ongoing softwood lumber dispute between the U.S. and Canada, the World Trade Organization ruled yesterday that the method used by the U.S. Department of Commerce to calculate tariffs against Canadian lumber imports is valid, and complies with international trade law.

“The United States did not act inconsistently with its obligations under the asserted WTO agreements.” according to the ruling. 

Source: LBM Daily, April 4, 2006

Home Depot Completes Purchase of Hughes… The Home Depot Inc., the nation’s largest home improvement store chain, said Friday it has completed its $3.2 billion purchase of Hughes Supply Inc., a distributor of construction, repair and maintenance products.

The deal, announced Jan. 10, called for Atlanta-based Home Depot to pay $46.50 per outstanding share for Orlando, Fla.-based Hughes Supply and assume $325 million in debt.

The deal doubles the size of The Home Depot Supply division, which serves business customers, such as homebuilders, professional contractors, municipalities and maintenance professionals. It’s Home Depot’s largest acquisition ever.

Hughes Supply has more than 500 locations in 40 states.

Source:  Builder Online Business Update, April 4, 2006

Canadian Lumber Organizations Celebrate U.S. Court Decision, Explain Away WTO Rulings… In a ruling handed down Friday, the United States Court of International Trade found the U.S. to be in violation of laws governing anti-dumping and countervailing duties on Canadian lumber.

Meanwhile, Carl Grenier, a spokesman for the Free Trade Lumber Council lobby group, attempted to distinguish the WTO rulings, which run contrary to that of a NAFTA panel’s and, now, the U.S. Court of International Trade’s: “The rules at the WTO are negotiated amongst the parties,” of which there are 150.

Source: LBM Daily, April 10, 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 mail  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 will 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.