Mid-America Lumbermens Association

Lumber Industry News Express

Vol. 4, No. 20 – September 26, 2005

TARIFFS COULD BE CUT ON LUMBER, CEMENT

By Martin Crutsinger, Associated Press 

Officials said Monday that the Bush administration is considering adjusting high tariffs imposed on such items as lumber from Canada and cement from Mexico if building needs from Hurricane Katrina cause prices to spike.

Treasury Department spokesman Tony Fratto said that the administration has the executive authority to adjust the tariffs to meet special needs.

The administration has created a rebuilding task force that includes the departments of Treasury, Commerce and Labor to coordinate the government’s response to the costliest natural disaster in U.S. history.

Source: Houston Chronicle, September 12, 2005

 MESSAGE FROM SHAWN CONRAD 

What a terrific idea!

My best to you,

Shawn Conrad
NLBMDA President

PLAN NOW TO ATTEND 2005 FALL FLING

You probably already know something about Greg Brooks and his expertise from reading the top publications in the building materials industry. Now, you’ll have the opportunity to meet him and hear him speak about what’s happening now in the supply chain, how it affects you and the opportunities that await. His topic will be “Point of Impact: The Coming Shake-Out in Construction Supply.”

We’ll draw from over 50 years of research to trace the evolution of production home building and its impact on the channel, analyze case studies of successful dealers throughout North America, and examine the unprecedented threats and opportunities facing construction suppliers.

Greg Brooks is president and CEO of the New Albany, Ind.-based Building Supply Channel, Inc., a training and development firm serving the building products industry.

Brooks is a 36-year veteran of the construction supply business who spent over 20 years in the field, in all facets of operations, sales, and management. As a trainer, he has developed programs for organizations that include Huttig Building Products, Lumbermen’s Merchandising Corporation, Wickes Lumber, and the National Retail Hardware Association. 

He was a co-founder and editor of ProSales magazine in the 1990s, and is now chief editor of LBM Journal. Brooks is a member of the Steering Committee at the Harvard University Joint Center for Housing Studies, and has conducted seminars and workshops on building product distribution trends for thousands of industry executives throughout North America.

Call or email Olivia for a registration form today! Don’t miss this outstanding opportunity to visit with fellow dealers in a relaxed, fun atmosphere and to hear one of the finest speakers in our industry today. We’ll look forward to seeing you in November!

2nd Annual Risk Management Meeting in Vancouver, BC

AREA MEETINGS START IN NOVEMBER

The Mid-America Lumbermens Association (MLA) announces a series of area meetings to be held at a location near you. Two important topics are scheduled for these meetings, in addition to offering a forum for the discussion of current industry news and issues.

Online HR compliance management 

Human Resources management (HR) is an area that is vitally important to the success of all businesses.  Comply Solutions is the most effective tool available to manage employee training, regulatory compliance and other key human resource issues. A must-attend for any CEOs, human resource managers and safety engineers and worth serious consideration for all MLA members if you ever wonder whether or not you’re meeting all the requirements surrounding employee hiring, retention and safety issues. Among some of the services that will be discussed are on-line delivery of employee handbooks, management guides, training of managers and employees to maintain a safe, non-discriminatory, harassment-free workplace, maintaining regulatory content and notification of compliance law and other management and training tools.  Feel free to visit their web site www.complysolutions.com. Go to the “take the tour” tab to learn much more about this increasingly necessary part of everyone’s business operations.

PostFrame Manager

Interested in attending?  We hope so.  A continental breakfast will be served at the morning meetings and hors d’oeuvres will be served at the evening meetings. They will be provided at no charge. To help us guarantee an accurate meal count, please fax your reply no later than one week prior to the meeting you plan to attend.

We are offering these meetings at 16 locations throughout the MLA territory. Call the MLA office at 800-747-6529 for a registration form. Select the time and place that works best for you and return your form today!

STATE NEWS

MISSOURI WORKERS’ COMPENSATION LAW FIXED

In the regular session, the legislature approved a massive overhaul of the workers’ compensation system, but in doing so inadvertently excluded many workers’ injuries from coverage under the system. Apparently, those employees now could sue employers in court for damages due to workplace injuries rather than going through the workers’ compensation system. 

The workers’ compensation system was developed many years ago to avoid employees going to court and suing their employers for worksite injuries. Instead, the system determined a fair resolution for injuries occurring in the workplace.

Because of that action, the correction will not go into effect for 90 days after its passage.

The original workers’ compensation revision included a number of tighter definitions to determine that an injury to an employee was primarily caused on the job in order to be eligible for assistance from the program.  

MISSOURI TRUCK SAFETY COMPLIANCE 

There has been some confusion lately on what is exact Missouri law regarding federal safety compliance for commercial vehicles. Trucks used by Missouri businesses are exempt from the Federal Motor Carrier Safety Act if the commercial vehicle weight is under 26,000 pounds, is operated only within the State of Missouri, and is not hauling hazardous material as defined by the federal government.

Missouri legislators changed the state motor carrier safety law in 2004 to enact the 26,000-pound limit. Before that, the limit was the federal standard of 10,00l pounds. The 26,000-pound limit for Missouri is higher than some other states. Missouri legislators felt the more stringent weight limitation inhibited Missouri businesses from carrying on their local transportation activity, which had nothing to do with interstate commerce.

Businesses must keep in mind they cannot have trucks cross state lines for any reason or they must then abide by the stricter federal standards.

The Federal Motor Carrier Safety Act requires a myriad of administrative and mechanical compliance measures for truckers, including driving hour limitations and numerous inspection procedures.

If a business is hauling hazardous material it must meet these stringent federal regulations. Basically, if cargo carries a hazardous placard, it is considered hazardous material under state and federal law. If a business has doubts about whether their cargo is hazardous material or not, we suggest contacting the Missouri Department of Transportation.

The 26,000-pound limit is a combination of truck and trailer weight. If you have questions or need more information, contact the Missouri Department of Transportation toll-free at 866-831-6277.

Plan to participate in the NACM Mid-America seminars set for October 11 at the Waterford Marriott, Oklahoma City. A UCC Seminar will be held from 8:00 a.m. until noon. A lien seminar will then be held from 1:00 – 5:00 p.m. For complete information and a registration form, contact MLA at 800-747-6529. Or, call NACM Mid-America at 800-593-0907.

LUMBER NEWS – QUICK GLIMPSES

Economists Forecast Slower Growth… Hurricane Katrina is likely to cut second-half U.S. economic growth and employment, raise the inflation rate, and create a dilemma for the Federal Reserve.

Fifty-six economists were polled for the September Wall Street Journal Online Forecasting Survey. They all said they’ve lowered their forecasts for growth in gross domestic product – a broad measure for the economy’s output of goods and services – for the second half by 0.4 percentage point as a result of Katrina.

Economists expect some boost to the economy from post-hurricane construction, but not much. On average, they expect the economy to expand at a 3.3 percent rate in the first half of 2006, only slightly higher than earlier predictions.

Source: NAWLA Bulletin from Wall Street Journal, September 9, 2005.

Coalition for Fair Lumber Imports Brings Federal Suit Against NAFTA… The U.S./Canada softwood dispute has led to a questioning of the effectiveness of NAFTA. The Coalition for Fair Lumber Imports (CFLI) filed suit in the U.S. Court of Appeals for the District of Columbia, saying that the NAFTA dispute panels “overstep their authority and violate the U.S. Constitution.”

“The Constitution does not permit these panels to be the final arbiter of whether U.S. law provides for relief from unfair subsidies and dumping for U.S. producers and workers,” said Steve Swanson, the group’s chairman.

Canadian International Trade Minister Jim Peterson responded to the lawsuit on Tuesday by saying, “This is nothing more than a veiled attempt by the U.S. coalition to undo the softwood victories that Canada has achieved through NAFTA. . .We stand ready to vigorously defend the NAFTA and we will take all steps open to us to ensure it is respected.”

Source: LBM Daily, September 14, 2005

Senate Delays Estate Tax Vote… The U.S. Senate will delay voting on the future of the estate tax in the wake of Hurricane Katrina, Senate Majority Leader Bill Frist announced last week. Other federal tax cuts have also been postponed as recovery costs grow.

Frist had called a vote on whether to permanently repeal estate taxed “first order of business” when the senate returned last week form its annual August recess. The bill, a main plank in the Republican’s tax-cutting agenda, will now be temporarily shelved.

The move came just hours after Senate Majority Leader Harry Reid, of Nevada, urged Republican lawmakers to back off of planned tax cuts in the aftermath of Katrina, which Senate leaders are estimating may cost upwards of $200 billion.

Source: NAWLA Bulletin from www.inc.com, September 9, 2005.

Canadian Duties Exemptions: An Unforeseen Benefit of Katrina?… Senior officials in the Bush Administration began Thursday to investigate exempting the long-contested duties on Canadian softwood lumber exports.

The possibility of an exemption after all this time has arisen due to the massive increases in demand for and costs of lumber in the wake of Hurricane Katrina. Nevertheless, an exemption on duties because of the reconstruction efforts would also have the beneficial result of ending the dispute between the United States and Canada.

Source: LBM Daily, September 16, 2005

U.S. Housing Outlook Mixed… After yesterday’s news that the Federal Reserve would narrow interest rates, homebuilder stocks took hits. Today, news that U.S. housing starts dropped by a larger-than-expected 1.3 percent in August was met with a mixed reaction.

“We see a flattening of housing starts and the beginning of a cooling process,” said David Seiders, chief economist at the National Association of Home Builders.

Source: LBM Daily, September 21, 2005

MEMBER NEWS

W.H. “Bill” Ransopher, Clyde, Kan., died September 4, 2005 in Clyde. He was the manager/owner/operator of the Hays Lumber Store in Clyde, Kan., until he retired in 1983 when his son, Jack, took over the family business. Ransopher was a former president of the Kansas Lumbermens Association. He is survived by his wife, Virginia; one son, two daughters, six grandchildren; and eight great-grandchildren. He was preceded in death by his parents and one sister. Memorials may be made to Meadowlark Hospice and Clyde Area Foundation.

FEDERATED WEIGHS IN ON HURRICANE KATRINA

Hurricane Katrina has created a very challenging response and recovery environment for all involved. Insurers, not unlike other aid organizations, must overcome huge logistical challenges as they seek to provide assistance to victims of this devastating storm. Private sector property-casualty insurance is one of several financial security systems in place to aid in the recovery of the Gulf Coast. The other systems include 1) the National Flood Insurance Program; 2) other city, state and national government resources (that will pay to repair and replace infrastructure such as roads and bridges); and 3) charitable organizations, who no doubt will be heavily relied upon by a large segment of uninsured victims.

Adjusters still haven’t been allowed into much of the storm-ravaged area, so Federated can make no informed statements about claims or claims-related issues in those areas. The facts on the ground are important, and vary from street to street, even building to building. Federated also strictly protects the confidentiality of our clients and will not discuss individual claims situations. This being said, Federated does anticipate significant losses in the Gulf Coast area and is mobilized to serve our clients pursuant to our policy obligations as quickly as circumstances allow. We are confident that we have both the financial and staffing resources to fulfill our obligations to our valued clients.

Source: Federated Insurance, September 12, 2005

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THOUGHT FOR THE DAY 

“People with goals succeed because they know where they are going. It's as simple as that.” - Earl Nightingale