Vol. 4, No. 22 – October 24, 2005

NEW FEDERAL RESERVE CHAIRMAN

Statement by Secretary John Snow on Nomination of Ben Bernanke as Federal Reserve Board Chairman

Dr. Ben Bernanke will bring a wealth of experience in economic and monetary policy to the Federal Reserve chairmanship.  He will be a worthy successor to  Alan Greenspan. Ben's background as a distinguished economics professor  and researcher,  as  chairman of the the Economics  Department at Princeton University, as member of the Federal Reserve Board of Governors and, most recently, as an economic policy advisor to the President make him an ideal nominee for this critical position.

I've had the pleasure of working closely with Dr. Bernanke in his capacity as Chairman of the President's Council of Economic Advisors, and I am continually impressed with both his economic acumen and his intellectual integrity. Alan Greenspan, in his 18-year tenure as Chairman, has expertly helped to guide the Federal Reserve Board and our economy through challenges with prescience and remarkable insight. The American people have reaped the benefit of his wise leadership in the form of a strong growing economy and low inflation. Chairman Greenspan leaves an outstanding legacy. In Ben Bernanke the President has chosen the right person to carry on the strong, independent leadership of the Fed. 

PLAN NOW TO ATTEND 2005 FALL FLING 

It’s not too late to register for the MLA annual meeting, scheduled to be held Thursday and Friday, November 3-4 at Harrah’s North Kansas City Conference Center and Casino. The location itself is a reason to attend, but you’ll want to attend the timely and informative program planned for Friday, November 4, as well.

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.

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. 

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 or click here. Select the time and place that works best for you and return your form today!

LUMBER NEWS – QUICK GLIMPSES 

New U.N. Study Shows That Deforestation Does Not Trigger Floods… A new study released by the United Nations’ Food and Agriculture Organization (FAO) and the Indonesia-based Center for International Forestry Research (CIFOR) reports, “There is no scientific evidence linking large-scale flooding to deforestation.” Tracking floods as old as 120 years ago, the study noted that their frequency has been quite stable, thus eliminating the idea that deforestation is contributing to floods.

Source: LBM Daily, October 13, 2005

USFS Wants to Resume Halted Activities in Forests… The U.S. Forest Service requested from a federal judge Thursday that it be allowed to resume approximately 1,500 different projects involving the national parks. The suspended projects run the gamut from a ski resort, to guided hunting and fishing trips, and even National Guard training.

Environmental groups are certain to protest the move, but the business community backs up the Forest Service. “We are hoping and praying somebody comes to their senses,” explained Karl Kapuscinski, CEO of Mountain High Resort, which stands to lose millions if environmentalists continue to delay the transfer of a permit to operate on the Angeles National Forest. “It’s almost comical, but it’s not.”

Georgia-Pacific Out of the Hardwood Lumber Business… In a letter dated Aug. 23, 2005, Georgia-Pacific (GP) officials notified NHLA [National Hardwood Lumber Association] that the company had completed the sale of its sawmill in Richwood, WV, concluding the company’s divestiture of its hardwood lumber group. With its exit from the hardwood lumber business, the company also resigned from the association.

Established in Augusta, Ga., as the Georgia Hardwood Lumber Company, GP joined NHLA in 1928.

Source: Hardwood Matters, published by the National Hardwood Lumber Association, October 2005

Will Bush and Martin Be Able to Hash Out a Deal… When President Bush indicated interest in a negotiated settlement of the highly contested lumber tariffs on Friday, Canadian Prime Minister Paul Martin seemed only mildly interested. Martin responded to the rekindled efforts of the Bush Administration by threatening a lawsuit in U.S. courts.

Nonetheless, the Administration remains hopeful that the Canadians will come around: “The president said we should get back to the negotiating table and work to find a lasting solution,” explained White House spokesman Scott McClellan.

Source: LBM Daily, October 17, 2005

Plan for Disaster… Any business owner witnessing the devastation in New Orleans after Hurricane Katrina has to have wondered: Could it happen to me? Could my office, my shop, my warehouse, my factory be completely destroyed? Of course, the answer is yes. Among the resounding shocks of devastating events like Hurricane Katrina and the September 11 attacks, is the realization that the unimaginable can happen.
Read the full story here

NLBMDA's Role in Katrina and Rita Relief … NLBMDA staff has taken an aggressive approach to involving lumber dealers in the rebuilding efforts in the Gulf Coast in the aftermath of Hurricanes Katrina and Rita. I am proud to say that we have forged valuable contacts in both Congressional offices and within FEMA and the Department of Commerce. Thanks in part to our efforts, the Commerce Department recently announced a new effort to ensure rebuilding contracts go to local and small businesses. Details on how dealers can register as both donors and vendors in the rebuilding effort in Louisiana, Mississippi and Alabama can be found at http://www.themla.com/hurricane.htm. 

Source: Laura Levitan, NLBMDA, October 18, 2005

FEMA To Re-bid Contracts Issued In Aftermath Of Hurricanes… The Federal Emergency Management Agency is reviewing contracts it issued in the aftermath of hurricanes Katrina and Rita and will re-bid those that were accepted with little or no competition, said acting FEMA Director R. David Paulison.

“I am going to do everything humanly possible to make sure that we follow government procurement guidelines from here on out for the rest of the expenditures that we’re going to do,” Paulison told the Senate Homeland Security and Governmental Affairs Committee. “You have given us $60 billion to manage this disaster and we have to spend it in a fiscally sound manner, and that’s what we want to do. I’m going to do everything I can do to make that happen.”

Members of the committee railed against several contracts FEMA issued during the past month with limited or no competition.

Paulison said FEMA will review and re-bid contracts that were signed last month. The former chief of the U.S. Fire Administration took over the embattled agency on Sept. 12 after former director Michael Brown resigned in the face of mounting public criticism over the initial response to Hurricane Katrina.

Source: NACM E-News Weekly Update, October 18, 2005

Secretary Rice to Make a Splash Visiting Canada… After canceling her trip to Canada in April, Secretary of State Condoleezza Rice visits Canada on official business for the first time Monday.

At the top of the Secretary’s agenda is the softwood lumber dispute. Although the Bush administration insists that the Secretary is not in Canada to provide “damage control,” it is hoped that she will help calm the mounting tensions between the two governments.

Source: LBM Daily, October 24, 2005