Vol. 4, No. 11 – May 23, 2005

 

RISK MANAGEMENT SEMINAR

 Plan now to attend the MLA Risk Management Workshop on Tuesday, August 23, in Kansas City. This is an opportunity for business owners and risk managers to gain valuable insight into causes and solutions for workplace risk.

 Federated Insurance is holding a series of workshops for risk managers throughout the country. The workshops so far have been well attended and very beneficial to dealers. The workshops are filled with valuable information designed to increase dealers’ profitability and improve employee safety. This program will show you how to reduce operating costs and control insurance increases. Here’s a sampling of the topics that will be covered from a risk management perspective: 

• Industry and Individual Loss Analysis
• Motor Vehicle Records
• Designated Risk Manager
• Hiring Practices – Human Resources
• Controlling Workers Compensation Costs
• Distracted Driving
• Contractual Liability
• Forklift Operations
• Securing Cargo

All of these areas are rife with pitfalls, challenges and potential costly accidents. The workshop will be held from 8 a.m. – 4 p.m. and will be limited to 20 participants. If you’d like to attend or send someone from your company, please let us know as soon as possible by calling Olivia at 800-747-6529. Registration forms will be mailed to members in early June. Don’t miss out on this money-saving opportunity.

 GOLF TOURNAMENT – JUNE 10 

You still have time to register or sign up to sponsor the Kansas Sunflower Shootout XVII. Here are the details:

 Location:  Rolling Meadows Golf Course, Junction City, Kan.

Date: Friday, June 10, 2005

Headquarter hotel: Marriott Courtyard Inn, Junction City.  

If you need additional information on sponsorship or registration, contact MLA at 800-747-6529. 

NLBMDA Offers Direct Dealer Membership

 After two years of discussions and planning, the National Lumber and Building Material Dealers Association (NLBMDA) Board of Directors has agreed to change the Association structure to enable dealers to join the national association through a “Direct Dealer Membership.”

 You can expect a mailing from NLBMDA around the end of May offering you the opportunity to join. As a member of MLA, you are already a member of NLBMDA and have access to all the same benefits and opportunities that direct dealer membership offers to those who join in that way.

 Direct dealer membership is an idea that gained acceptance as many large pro-dealer chains have expanded across the country. This form of membership is aimed at those large operations that cross the boundaries between several geographically separate affiliated (state and regional) associations. Direct dealer membership enables them to join the national association without joining one or more affiliated organizations, which was not an option previously.

 Until now, NLBMDA was a “federated” association, which means dealers joined their state or regional association, which was a member of the national organization. Under the new plan, dealers can still join the national association by joining their state or regional organization, such as MLA. By joining and maintaining membership in MLA, for instance, you reap the benefits of both organizations – that hasn’t changed.

 If you have any questions about this new NLBMDA membership, please call the MLA office at 800-747-6529.

 LUMBER NEWS – QUICK GLIMPSES

 Roadcheck 2005 Scheduled for June 7-9…The 18^th annual international truck and motor coach safety and security event, Roadcheck 2005, is scheduled for June 7-9 for 72 continuous hours in Canada, Mexico and the United States. During this three-day period thousands of certified truck and busy safety inspectors will be at inspection sites along major highways and roving patrols will be inspecting commercial vehicles. This year’s event will highlight the importance of safety belts and commercial vehicle security.

 In previous years, safety inspectors and federal personnel have conducted more than 60,000 inspections at 1,500 locations during the three-day blitz. This is a great reminder to make sure your trucks and drivers are following the applicable regulations and safety practices.

 Source: NLBMDA Regulatory News, May 2005

 Canada's Trade Minister, U.S. Trade Representative Meet on Softwood… Canada's International Trade Minister Jim Peterson met for the first time Monday with new U.S. Trade Representative Rob Portman. Peterson was told that U.S. officials are committed to a solution to the softwood lumber dispute and an election in Canada won't slow talks. He also said the U.S. administration will continue working to oppose the so-called Byrd Amendment that allows American companies to profit from penalties levied on Canadian imports. 

Canada is considering two U.S. proposals on softwood but no date has been set for talks to resume, said Peterson.

 Source: LBM Daily, May 10, 2005

 Federal Judge Rules Against Environmentalists in California Logging Case… A Federal Judge ruled Monday against environmentalists who had filed suit against the U.S. Forest Service in order to stop logging in the Plumas National Forest. Environmentalists argued the logging would affect endangered species.

 Loggers can begin cutting and removing 40 million board feet from around Meadow Valley. A Quincy, Calif. coalition has plans to log approximately 1.4 billion board feet of timber in three forests in the Sierra Nevada.

 Source: LBM Daily, May 11, 2005

Home Building Trends… If you give potential homebuyers a choice between more space or higher quality features, they are overwhelmingly opting for the latter, according to the latest report from the National Association of Home Builders (NAHB). When choosing between a bigger house with fewer amenities or a smaller house with high-quality products and amenities, nearly two thirds of respondents opted for the latter. The report also noted that the top features homeowners want in the kitchen are a walk-in pantry (84 percent), island work area (77 percent), special use storage (62 percent) and a built-in microwave (62 percent). The top bathroom “wants” included a linen closet (91 percent), exhaust fan (88 percent) and separate shower enclosure (78 percent). Nine-foot ceilings are also a must these days, as consumers feel the extra foot provides more openness and more light.

 Source: HCI Business Report, published by the Home Center Institute, May 12, 2005

Retail Sales Trends… The National Retail Federation (NRF) reported that retail sales in April increased 4.4 percent over the same period last year, while increasing 1 percent over March figures. Though Easter occurred before the month of April began, consumers still headed to the stores last month for spring apparel and home merchandise. The arrival of spring also brought traffic to building material and garden equipment and supplies dealers, whose sales increased 4.8 percent unadjusted over last year and 1.2 percent from March. The gains were stronger than NRF had been anticipating when considering the rising cost of gasoline. The NRF expects sales to increase 5.0 percent in the second quarter and 4.8 percent this year over 2004.

 Source: HCI Business Report, published by the Home Center Institute, May 12, 2005 

Canada Seeks Increased Softwood Duties Calculation… Canada on Friday requested that the World Trade Organization look into the United State's resistance to a WTO ruling that ordered a revision of the method used by the U.S. in calculating the dumping duties it imposes on Canadian lumber.

 In addition, International Trade Minister Jim Peterson announced that Canada intends to impose sanctions on C$400 million of imports from the U.S.  

Source: LBM Daily, May 23, 2005

 Retirement Confidence… A majority of workers who do not contribute to their retirement plans at work would do so if their employers provided a higher matching contribution, according to the 15^th annual Retirement Confidence Survey sponsored by the Employee Benefit Research Institute, the American Savings Education Council, and Mathew Greenwald & Associates. The study found that 66 percent of noncontributing workers said automatic enrollment would make them “very likely” or “somewhat likely” to participate. A similar percentage of surveyed workers expect to work for pay in retirement. The 2005 survey results are available at: www.ebri.org/rcs/index.htm.

 Source: Monthly Benefit News and Developments, published by Milliman, Inc., May 2005 

HSA Brochure… The Treasury Department has issued a brochure on health savings accounts (HSAs). Directed at consumers, the brochure describes: who can have an HSA; what high deductible health plans (HDHPs) are; how much an individual may contribute to an HSA; what medical expenses qualify under an HSA; the advantages of HSAs; and companies that provide HDHP coverage. Go to: www.treas.gov.

 Source: Monthly Benefit News and Developments, published by Milliman, Inc., May 2005 

Safety Awards Deadline Extended

 To accommodate dealer requests for additional time to complete applications, NLBMDA is extending the application deadline for our first annual safety awards to June 30, 2005. Now is your chance to apply and be recognized.

NLBMDA wants to recognize dealers for the time and money they consistently invest in keeping their workers and workplaces safe! Make sure that your boss, board, employees, customers and community know that you are leading the industry in safety.

Apply for NLBMDA's first annual safety awards. The application process is simple and award recipients will be recognized locally and nationally with awards and customized press releases to announce your company's accomplishments. Take 15 minutes out of your day to fill out an application and reward yourself and other employees for the hard work that goes into keeping your lumberyard safe.

Go to www.dealer.org or call 800-634-8645 for applications and more information!

 NLBMDA's Cost of Doing Business Survey - Proven to Work

 “The program you have designed has been one of the most powerful management tools we have incorporated into our business here at Dixie Lumber... With this report, we can see where our yard is proficient, and where we need to improve... I would highly recommend these reports to anyone who wants to gain more insight and control of their building materials business.” 

Mac Lawton, Dixie Lumber Company, Inc.
User of MGT Strategies management tools

 It's not too late for you to get your business involved in this year's CODB. To get a copy, call 800-634-8645 or download one at www.dealer.org. The deadline is May 31^st, so act now.

 

 

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.

                                       MLA is proud to endorse….