Vol. 6, No. 21 – October 8, 2007

 

 

SAVE THE DATE – NOVEMBER 1-2

 

It’s no secret that home construction is down in most markets. But, that doesn’t mean your sales have to fall. Increase sales and profits by taking customers away from your competition, learning new sales and closing techniques and finding new approaches.

 

Plan to attend this year’s Fall Fling – the Annual Meeting of MLA members – on Thursday and Friday, November 1-2, 2007, at the Marriott Country Club Plaza, Kansas City, Mo. We’ve brought back the popular “dine-around” on Thursday evening and you won’t want to miss the presentation on Friday morning by industry veteran, Bob Janet.

 

You should have already received information and a registration form with your MLA newsletter in early September. (This information is also posted on the MLA web site at http://www.themla.com/Fall-Fling.htm, along with complete sponsorship information.)

 

We realize you sometimes measure the value of a meeting in its price. But, don’t assume because we don’t charge you a registration fee, it’s not worth your time.  While we provide this meeting to members at no charge, the Association and our generous sponsors are covering the costs associated with the meeting. Bob Janet’s fun-entertaining programs are loaded with sales and marketing skills and techniques that help members increase sales and profits even in a slowing market. Plan to attend and register today!

 

 

CONRAD LEAVES NLBMDA

 

In a letter to members on October 1^st, NLBMDA Chair Steve Kelly announced that President Shawn Conrad has left NLBMDA to pursue other professional interests.

 

Right now, Conrad will be replaced by Interim President Russ Snyder, the senior vice president of client management at the D.C. office of association management firm SmithBucklin Corporation.  The NLBMDA Executive Committee and Board of Directors met at the Industry Summit to consider options to replace the chief staff executive of the association. Until an announcement is made, Director of Membership and Operations Manager Henry Wallmeyer will control the day-to-day operations of the office.

 

Russ Snyder joined SmithBucklin in May 2007 after serving as executive vice president of association management firm Kellen Company, where he worked for six years.

 

 

Providing Career Growth: A Key to Employee Retention
 

Smart managers know that top performers are their firms' strongest assets. These dedicated staff members demonstrate a level of drive and commitment that makes them valued by both supervisors and colleagues.

 

As a manager, it's your responsibility to keep these workplace stars enthused and engaged in their work. After all, if the professional challenges dry up, they may decide to leave your company and take their talents elsewhere. This makes it important for you to offer constant career growth and advancement opportunities. Here are some tips for creating a work environment that will make employees want to stay:

 

• Provide new challenges. Top-performing employees enjoy constantly improving their arsenal of professional skills. Keep staff engaged by avoiding micromanaging and allowing an appropriate degree of autonomy. Clearly explain project objectives, and then step back and let staff members use their creativity to accomplish their work. Giving employees control over their projects shows that you trust them to make good decisions. Additionally, they'll gain valuable insights as they flex their problem-solving muscles, preparing them for greater responsibility down the road.

 

• Promote internally. As often as you can, promote from within. This not only shows staff that you are committed to their professional development, it also reduces training time and costs associated with hiring outside candidates. Internal promotion can boost morale and productivity throughout your firm, as other employees see that advancement is possible.

 

• Understand employee goals. Cultivate an open atmosphere so that employees feel comfortable talking with you about their aspirations. Work together to plot a career map outlining their growth potential within your firm. This is particularly important for high-potential staff — just because you have a particular candidate in mind for a promotion does not mean he or she has the same goals in mind. While performance reviews are a natural forum for these discussions, feedback from more frequent check-ins can help you identify new ways to challenge your staff, even if immediate promotion is not possible. For instance, the chance to work on special projects or attend seminars may make employees feel supported and valued. A formal mentoring program may provide just the support a particular worker needs.

 

Source: NACM E-News Weekly, September 25, 2007, from Robert Half Finance

 

LUMBER NEWS – QUICK GLIMPSES

 

Ace Reveals $154 million Accounting Error… In a surprise announcement, Ace Hardware revealed on September 5 that it discovered a $154 million “accounting error” in the company’s financial statements. The co-op is now in the process of reviewing several years of financial records to determine the cause of the discrepancy, how far back it goes and exactly how much money is involved.

 

Source: Brae Canlen, Home Channel News, September 24, 2007

 

Bernanke: Rate Cut to 'Get Out Ahead' of Credit Crisis… Federal Reserve Chairman Ben Bernanke said Thursday that the central bank is trying to "get out ahead" of financial markets with its larger-than-expected half-point interest rate cut this week.

 

In testimony to the House Financial Services Committee, Bernanke said a freeze-up in credit markets since August could worsen an already sharp housing downturn and hurt other segments of the economy. He offered few signals as to future policy, however.

 

Source: Builder Business Update, September 25, 2007 (from USA Today)

 

U.S. House of Representatives Passes Timber Legislation… On Wednesday, the U.S. House of Representatives approved passage of the bill extending federal payments to 700 counties hard hit by limitations on timber harvests in the country's national forests.

 

Funding for the legislation is to be provided by rising revenues from federal offshore oil and gas leases.

 

''Other committees' bills are eyeing the same pot of money, so it's a race to the finish line,'' explained Representative DeFazio, the legislation's sponsor. ''Whoever gets there first gets their program.''

 

Source: LBM Daily, September 27, 2007

 

Retailing… The world’s largest retailer, Wal-Mart, plans to sell its own compact fluorescent light (CFL) bulbs in more than 3,000 of its stores under its Great Value brand. The company reports that their CFL bulbs will be less expensive than many on the market, as four of the bulbs will sell for the price of three brand-name bulbs.

 

Source: Home Center Institute, September 27, 2007

 

Home Depot… Home Depot says it will shut the doors on its 11 Landscape Supply stores in Texas and Georgia. The closures are thought to be part of the company’s efforts to focus more on its more traditional stores. The Landscape Supply division of Home Depot started in 2002 with three locations in Georgia and expanded into Texas the next year.

 

Source: Home Center Institute, September 27, 2007

 

U.S. Home Sales Fell in August… According to figures released by the U.S. Commerce Department, new home sales fell another 8.3% in August, the slowest pace for new home sales since 2000. The mortgage market continues to suffer, as well, inhibiting new home purchases.

 

Source: LBM Daily, September 28, 2007

 

Weyerhaeuser to shut sections of two mills… In connection with its ongoing strategic review, Weyerhaeuser Company (NYSE: WY) today announced it would convert its Dodson, La., plywood operation to a 100 percent veneer manufacturing operation, effective Oct. 26, 2007. The company will also stop veneer production at its Colbert, Ga., mill within the next 30 days. The Colbert site will continue manufacturing Parallam® using veneer supply from Dodson and other Weyerhaeuser veneer operations beginning Nov.1.

 

These operating posture changes will affect about 70 employees at Colbert and less than 50 at the Dodson site.

 

“Today’s announcement is part of the ongoing effort to strengthen Weyerhaeuser’s residential wood products portfolio,” said Cathy Slater, vice president of Veneer Technologies. “There’s a shrinking demand for plywood and an increasing availability of alternative products. We made the decision after a thorough review of short-term and long-term demand for our plywood panels and to further integrate dry veneer into our engineered lumber products.”

 

Source: Weyerhaeuser, Inc., October 1, 2007

 

Mortgage Problems Continue to Hamper Pending Home Sales… Pending sales of existing-homes activity will be dampened near-term as mortgage disruptions continue to impact the housing market, according to the National Association of Realtors®.

 

The Pending Home Sales Index, a forward-looking indicator, fell 6.5 percent to a reading of 85.5 from an upwardly revised 91.4 in July, based on contracts signed in August. It was 21.5 percent below the August 2006 index of 108.9.

 

Lawrence Yun, NAR senior economist, said the mortgage market impact is quantifiable.  “Fewer contracts were being written because of mortgage availability issues, and a separate internal survey of our members shows more than 10 percent of sales contracts fell through at the last moment in August, primarily the result of canceled loan commitments,” he said. “The volume of activity we’re seeing today is below sustainable market fundamentals because some creditworthy people are trying to buy homes but can’t because of the credit crunch.”

 

Source: National Association of Realtors, October 2, 2007

 

Boot Safety Recall… The Timberland Co. announced Friday a voluntary recall for the Timberland PRO Direct Attach Steel Toe Series boots sold nationwide between September 2005 and September 2007.

 

According to a company press release, product testing has demonstrated that the boots may not comply with applicable safety standards for compression and impact resistance. Although Timberland says people who wear the boots could potentially suffer from an impact foot injury, none have been reported.

 

This product was sold under model numbers 26002, 65016, 26038, and 38021. The boots were made in the Dominican Republic and have a four-digit date code ending in 35 and beginning with a number from 25 to 45 (e.g., 2535, 2635, ... 4535). Consult the green loop tag inside the boot to determine whether your boots are subject to this recall. Products made in China are not subject to this particular recall.

 

The company strongly recommends that consumers stop wearing the recalled boots immediately and contact The Timberland Co. to receive a free replacement pair of boots. For additional information, contact The Timberland Co. toll free at 1-800-445-5545 Monday - Thursday 8:00 a.m. - 5:30 p.m. EST, Friday 8:00 a.m. - 5:00 p.m. EST, or visit www.timberlandpro.com.

 

Source: Builder Business Update, October 2, 2007

 

American Standard approves company name change … Shareholders of American Standard have approved an amendment to the company’s certificate of incorporation to change its name to “Trane.”

 

Trane is the company’s heating, ventilation and air conditioning business. In July, the company announced it would sell its iconic American Standard bath and kitchen business to Bain Capital Partners for $1.75 billion.

 

Bain Capital Partners is a global private investment firm – most recently, Bain Capital was one of four private investment firms to purchase Home Depot’s HD Supply unit.

 

Earlier, the company said it also would spin off its WABCO vehicle control business, in favor of focusing on the more well-known Trane HVAC business. The company still manufactures air conditioning systems under the American Standard brand.

 

Last year, the company’s HVAC business generated sales of $6.8 billion, according to the company.

 

Source: HomeChannel News Newsletter, October 3, 2007

 

Hanley Wood launches green construction trade show and magazine… Washington, DC-based Hanley Wood is entering the green building market by launching the GREEN PRODUCTS AND TECHNOLOGY network, which will include a magazine, Web site, trade show and e-newsletter.

Hanley Wood will launch the Green Products and Technology Expo in October 2008 in Austin. The show will also focus on the residential construction sector.

The Green Building & Technology Expo will be led by Rick McConnell, Vice President of Hanley Wood Exhibitions. Day-to-day operations will be managed by Amy Allen.

In February 2008, the company will also roll out GREEN PRODUCTS AND TECHNOLOGY, a magazine that will be published four times in 2008 and will feature product information, case studies on innovative green homes and best practices. It will have an expected circulation of 35,000 builders, remodelers and architects active in the green market. At the same time, the company will introduce Green Product News, a bi-weekly e-newsletter with product information, and GreenProductsMagazine.com, a Web site devoted to residential construction professionals interested in green building.

 

Source: Expoweb News, October 4, 2007

 

 

PROTECTING YOUR BUSINESS AND EMPLOYEES FROM WORKPLACE DISCRIMINATION

 

During 2003, the Federal Equal Employment Opportunities Commission (EEOC) received 81,293 charges of discrimination. For each charge, a business much like yours faced legal proceedings, as well as possible loss of productivity and business reputation.

 

Examples:

 

 

It is not uncommon for defense costs to reach $100,000 in these types of claims even when there is no actual liability on the part of the business. Most liability policies, however, exclude coverage for liability due to employment related practices such as:

 

• Refusal to hire

• Termination of