Vol. 6, No. 17 – August 13, 2007

 

 

MLA ACCEPTING NOMINATIONS

 

MLA’s Nominating Committee will accept names of prospective candidates for the MLA Board of Directors until August 31^st for four positions to be filled in November at the Annual Meeting in Kansas City. Nominations are being accepted for these positions:

 

Third Vice President

Director – Missouri/Kansas

Director – Kansas/Oklahoma

State Committee Chairman

 

If you would like to be considered, or if you would like to propose another member to serve on the MLA Board of Directors, please contact one of these members of the 2007 Nominating Committee:

 

Brad Isdell, Town & Country Building Supply – 660-584-5841 – isdell@ctcis.net

Woodie Acord, Acord’s Home Center – 479-253-9642 – acordshomecenter@cox-internet.com

Kevin Rasure, Rasure Lumber Do It Center – 785-899-7149 – rkrasure@yahoo.com

Rich Bass, Mill Creek Lumber & Supply Co., Inc. – 918-747-8027 – richb@millcreeklumber.com

 

Complete information and job descriptions were mailed to all voting members last week. If you have questions, please contact Olivia Holcombe at the Association office (800-747-6529) or any member of the nominating committee.

 

 

NLBMDA Issues in Brief

 

House Bill Requires OSHA to Establish Ergonomics Standards for Lumber/Building Material Retailers

 

In the report accompanying the fiscal year 2008 Labor, Health and Human Services, Education Appropriations Act (H.R. 3043), the Appropriations Committee expressed dissatisfaction with the Occupational Safety and Health Administration’s (OSHA) progress on ergonomics activities. The Committee directed OSHA to develop guidelines for 13 additional industries, including “Lumber/Building Materials – Retail” and to step up enforcement on ergonomics hazards.

 

NLBMDA previously weighed in with the Committee to express opposition to directing OSHA to increase enforcement on the building supply industry before industry-specific guidelines could be drafted. NLBMDA could work with OSHA on developing common-sense guidelines for the industry.

 

Court Sets Aside Hours of Service Provisions for Truck Drivers

 

On July 24 the U.S. Appeals Court for the District of Columbia set aside provisions in a 2005 Transportation Department rule that increased allowable driving time from 10 hours daily, where it had stood previously, to 11 hours per day. The Court also rejected a provision of the rule that allowed truckers to “restart” their weekly allotment of driving time after a 34-hour rest period. Industry groups are planning to challenge this decision.

 

House Committee Approves Affordable Housing Trust Fund Legislation

 

On July 31, the House Committee on Financial Services approved legislation (H.R. 2895) to create a national housing trust fund intended to help build, refurbish, or maintain 1.5 million affordable-housing units in 10 years. The bill is slated for consideration by the full House of Representatives this fall.

 

Know Your Enemy: Trial Lawyers Target Building Supply and Construction Industries

 

The American Association for Justice (AAJ), formerly known as the American Trial Lawyers Association, held its annual convention in Chicago July 14-18. The convention program lists the meetings of AAJ Litigation Groups, lawyers who specialize in suing various groups. Included in this list are Lead Paint, Construction Defects – Property, and Stand-Up Forklift. Unfortunately, AAJ sponsors workshops to advise trial attorneys how best to sue those who produce, sell, or provide such products and services. NLBMDA’s Innocent Sellers Fairness Act (H.R. 989) is designed to protect dealers from abusive lawsuits against the building supply industry.

 

Small Business Administration Offers Regulatory Alerts

 

The Small Business Administration (SBA) Office of Advocacy maintains a Regulatory Alerts web page to highlight pending regulatory proposals. The alerts provide critical links to proposed rules, staff contacts, the place to comment, and www.regulations.gov, the federal government’s regulatory information site. For the latest on proposed rules, please bookmark the http://www.regulations.gov/fdmspublic/component/main page.

 

Softwood Lumber Agreement Headed to Arbitration

 

Unable to resolve U.S. complaints lodged against Canada under the 2006 Softwood Lumber Agreement, the two countries are headed to binding arbitration over claims on volume caps and that Canada is circumventing the Agreement by funding forest management and wood promotion programs. There is now a two-month period to select arbitrators who must then issue their finding within six months.

 

Source: National Lumber & Building Material Dealers Association (NLBMDA), Aug. 8, 2007

 

 

 

MINIMUM WAGE POSTER AVAILABLE

 

As you know, the federal minimum wage went up to $5.85 per hour effective July 24, 2007. By law, you are required to post the “Fair Labor Standards Act” in a conspicuous location accessible to employees. There is no need to purchase a new “all in one” poster – simply click on this link: http://www.dol.gov/esa/regs/compliance/posters/flsa.htm  The Act and the rules pertaining to it are explained there, and you can click on the appropriate link to print either a black-and-white or color version of the law.

 

If you are in Missouri, the state minimum wage went up to $6.50 per hour on January 1. Since this is higher than the new federal wage, the Missouri minimum wage prevails. You still need to post both the federal minimum wage poster and the Missouri minimum wage poster. The Missouri poster is available at this link: http://www.dolir.mo.gov/ls/minimumwage/52-AI.pdf

 

If you have any questions or concerns, please don’t hesitate to contact the Association office.

 

  

 

 

 

            

JOIN INDUSTRY LEADERS AT THIS YEAR’S INDUSTRY SUMMIT – OCTOBER 4-6, 2007    
 

This year’s theme, The 16% Solution, will focus on how you can maximize your value in builders’ eyes through creativity, operational excellence and most of all, the ability to focus on your builder’s bottom line without losing sight of your own. The 2007 Industry Summit will explore the key areas you need to focus on to capture market share and maximize your profitability by making builders more efficient. Dealers are the solution — that is the bottom line!

 

Join us at the beautiful JW Marriott Resort & Spa and explore all Las Vegas has to offer. MLA’s own Harold Baalmann, B&B Lumber, Wichita, Kan., will become NLBMDA’s Chairman at this event.

“Vision, in its purest form, is IMAGINATION.” 

Erik Wahl’s strategic visioning presentation on Friday, Oct. 5, will open your eyes to a new approach to organizing your business. Your best sustainable edge is being better at mastering change and innovation than your competition. The Art of Vision is an entertaining and highly practical program that uncovers new ways to make your organization more creative, more productive, and ultimately, more profitable.

 

Wahl is a recognized artist and speaker who inspires professionals to achieve greater levels of performance. His consulting firm, The Wahl Group, challenges organizations to implement breakthrough-thinking techniques to accomplish extraordinary results.

 

Participate in the Industry Golf Tournament at Angel Park, scenic tours and network with your LBM industry peers. For more information and to register today, go to www.dealer.org!  

 

 

LUMBER NEWS – QUICK GLIMPSES

 

Pulte Homes CEO: "Another Challenging Operating Period"… Pulte Homes reported a second quarter loss of $507.6 million for continuing operations last week. This compares with the prior year second quarter income of $243.9 million from continuing operations. The enormous difference is a result of approximately $749.4 million of impairments and pre-tax charges from land-related transactions along with another $40 million in restructuring charges. The company says it will continue to focus on "reducing its land and speculative home portfolio, and properly adjusting overhead spending to navigate through this continued severe downturn."

 

Source: BUILDER Business Update - July 31, 2007

 

New-Home Sales Dip Again in June… One day after news that the rate of decline in existing home sales in June was double what analysts had expected, and as battered public builders continue to report plummeting sales and heavy losses, the Commerce Department estimated this morning that the sale of new homes was off by 22.3 percent in June to a seasonally adjusted annual rate of 834,000 units, compared to the same month a year ago. New home sales were also down by 6.6 percent from May.

 

Source: BUILDER Business Update - July 31, 2007

 

"Combat Illegal Logging Act" Introduced in U.S. Senate… On Wednesday, Senators John Kerry (D-MA) and Ron Wyden (D-OR) introduced the "Combat Illegal Logging Act." If passed into law, the act would ban the import and sale of illegally harvested timber. Technically, the bill would extend the Lacey Act to apply to wood and timber products. Currently, the Lacey Act prohibits importation of wildlife obtained in violation of conservation law.

 

Source: LBM Daily, August 2, 2007

 

Treasury Economic Update … "The U.S. economy and the job market are healthy, with sustained job growth, low unemployment, and rising wages. Solid fundamentals will support continued growth in household spending and business investment."

 

Source: U.S. Treasury Department, Assistant Secretary Phillip Swagel, August 3, 2007

 

Weyerhaeuser Reports Profits, Beats Wall Street Expectations… Weyerhaeuser reported higher-than-expected second-quarter earnings on Friday. Profits were bolstered by the company's packaging and fibers business, while its wood products and real estate businesses dipped, pulling the overall profits down.

 

"We were pleased that the bottom-line result exceeded our expectations, though the quality of the beat was somewhat disappointing," stated JPMorgan analyst Claudia Shank in a note to clients.

 

Source: LBM Daily, August 6, 2007

 

Homeownership Rates Continue to Slip… The Census Bureau released figures last week showing that the country's homeownership rate had fallen for the fourth consecutive quarter, to its lowest level since 2003. The news lent statistical ballast to the fear that the subprime mortgage meltdown, which is seeping into the prime market, could be undermining federal housing policy that, for the past 20 years, has relentlessly encouraged and promoted the American Dream.

 

Source: BUILDER Business Update, August 7, 2007

 

U.S. Seeks Arbitration Under Softwood Lumber Agreement… The U.S. is seeking arbitration with Canada, claiming the Canadian government is in violation of the year-old softwood lumber treaty by pushing lumber onto the U.S. market and by allowing Ontario and Quebec to carry out forest-industry support programs.

 

U.S. Trade Representative Susan Schwab announced the decision. “It is truly regrettable that, just 10 months after the agreement entered into force, the United States has no choice but to initiate arbitration proceedings to compel Canada to live up to its SLA obligations . . .” she said in a statement to the media Tuesday.

 

Source: LBM Daily, August 8, 2007

 

Coalition Supporting Innocent Sellers Expands… NLBMDA is pleased to announce the addition of several new coalition partners supporting Innocent Sellers Fairness Act: Associated Equipment Distributors, National Association of Chain Drug Stores, and the National Retail Federation.  For a complete list of coalition partners, please visit www.buildthevote.org.

 

Source: NLBMDA Advocate, August 8, 2007

 

B.C. Lumber Strike Long Way from Resolved… The B.C. coastal forest strike is a long way from being resolved, and could last into 2008. The two sides appear to be at a standstill.

 

"Our position has not changed; we would like to see the union take our offer to its members for a vote. . .We are firm in our resolve that the offer we have made is as far as we are willing to go and we think it is fair and reasonable, especially considering the economic condition the industry finds itself in," said Ron Shewchuk, spokesman for Forest Industrial Relations.

 

Source: LBM Daily, August 10, 2007

 

NEW HAZMAT PROGRAM announced

 

Federated's New HAZMAT Training Program

 

Many types of businesses, including building material dealers, are involved in shipping and receiving hazardous materials in the course of their operations, either between their own locations or with other companies. The ability to safely transport hazardous materials can