Vol. 3, No. 24– November 22, 2004

 

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MLA 2004 Educational Symposium

For Retail Dealers and Associates

December 8-9, 2004 

The Agenda - This is a “mix or match” event.  You can participate in both programs, or pick and choose between either one.  

December 8:  We must leave the hotel no later than 6:45 a.m. for the trip to the FPL in Madison.  It is approximately a two-hour trip. Bus transportation and lunch will be provided. Our thanks to BlueLinx for their commitment to sponsor the bus for the trip to Madison. After the tour, we will eat dinner in Madison and return to Chicago. We should be back in Chicago by approximately 10:00 p.m. 

December 9:  You are on your own to get to the Chicago Mercantile Exchange.  It is a short cab ride to 30 S. Wacker Dr. We need to be there by no later than 8:30 a.m. An on-site luncheon will be provided, and the seminar will conclude at approximately 3:30 p.m. After that, you’re on your own. 

Additional activities you may want to take advantage of include:  

Dinner – Wednesday, December 7: On December 7, we have an 8:00 p.m. reservation at the world famous Lawry’s The Prime Rib in Chicago (www.lawrysonline.com). If you would like to be a part of the group dining at this world famous restaurant, indicate on the registration form. (The Hilton Garden Inn has a new Weber Grill restaurant located in the lobby area if you prefer.) 

Shopping – A short walk from the Magnificent Mile in December… no explanation required. 

Forest Products Laboratory, Madison, Wisc. - Founded in 1910 by the U.S. Dept. of Agriculture Forest Service, the Forest Products Lab (FPL) serves the public as the nation’s leading wood research institute. On site, more than 250 scientists and support staff conduct research on expanded and diverse aspects of wood use. Some of their research includes pulp and paper products, housing and structural uses of wood, wood preservation, wood and fungi identification, and finishing and restoration of wood products. What an outstanding opportunity not only for you, but also for one or more of your best customers!  This is the preeminent location in the country for the study of mold in the construction process.  

The staff of the Forest Products Lab studies recycling, develops environmentally friendly technology, and understands ecosystem-based forest management.  These are all huge issues that are confronting our industry.  All participants will receive the publication Profile 2003:  Softwood Sawmills in the United States and Canada.  This book has listings for all softwood lumber mills in the United States and Canada: their capacity of production; the species they process; what they process (dimension, studs, etc.) and their locations.  For a lumber buyer, it is an incredible resource; and it is yours for participating in the tour.  We will end the day with a fabulous meal in Madison, and return to Chicago that evening. 

The Chicago Mercantile Exchange - The Chicago Mercantile Exchange will conduct a six-hour workshop that provides the “nuts and bolts” of the world of commodity trading and, specifically, how lumber futures are traded.  The Chicago Mercantile Exchange (CME or “Merc”) is the nerve center for all commodities and futures trading.  Items as diverse as butter, foreign currencies, cotton, cattle, and of course, lumber are all traded at the CME.  A trip to the floor of the CME is included to give you a firsthand look at the way transactions are handled. One-on-one visits with lumber traders will be a popular highlight of this seminar. At the conclusion of the event, you will have a grasp of the skills necessary to utilize this most valuable tool in your own business.  

Hotel - The headquarters hotel for this event is the Hilton Garden Inn located at 10 East Grand Avenue in Downtown Chicago. Located a short distance from the “Magnificent Mile,” Chicago’s ESPN zone, DisneyQuest, the Hard Rock Café and a short cab ride (or complimentary shuttle from the front of the hotel) to the famous Navy Pier. For reservations, call 1-877-865-5298.  

Travel Arrangements – All transportation arrangements to/from Chicago are the participants’ responsibility. Bus transportation will be provided to/from the Forest Products Lab on December 8. Unless otherwise indicated, all meals and incidentals are at your expense. Tours are provided at no charge. 

For more information or a registration form, please reply to this newsletter or call the Association office at 1-800-747-6529. 

MLA FALL FLING – A SUCCESS! 

The Fall Fling was jam-packed with fun and education, as dealer members from throughout MLA’s states gathered in Branson at the Chateau on the Lake. Ideal fall weather was the backdrop as members heard keynote speaker Bill Sharp address all-important profitability issues. Everyone that attended walked away with money-saving and money-making ideas to add three to five percent to their bottom-lines during the next year.  

The education was enhanced by a special presentation by Jack West with Federated Insurance discussing hiring and employee retention ideas. In addition, Sam Dunn, NLBMDA’s new chairman, talked about national lumber issues and the Association’s focus for 2005. Bob Erwin, Lee Resources, provided valuable benchmarking information based on the dealer round-tables he conducts nationwide. 

Many thanks to our sponsors who helped to make this event a success: 

            Federated Insurance, Presenting Sponsor

            Cargotec, Inc.

            Frontline Marketing Group

            Mid-Am Building Supply

 Plan to make the MLA Fall Fling a part of your plans in 2005. The more members attend the better the experience for all.  

MLA EDUCATION PROGRAMS

Train Employees … Serve Customers 

The Basic Materials Estimating School… This is a two-day school designed to teach participants the basic piece-by-piece estimating of building products usually sold in a full-service lumberyard/home center. Students learn the basics of blueprint reading, how to use the LT1 Guidebook for estimating that contains tables, checklists, construction illustrations and estimating reminders; and finally how to estimate a simple house plan piece-by-piece. 

Feb. 14-15 – Wichita, Kan.

Feb. 16-17 – Kansas City, Mo.

March 10-11 – Tulsa, Okla. 

Advanced Materials Estimating School… This advanced piece-by-piece estimating seminar is designed to assist the estimator or outside salesperson/estimator who already knows how to estimate but wants some shortcuts and instructions in multi-pitched roofs, including stick framing and finding wall lengths, floor area, and more complicated house layouts. Students receive the estimating guidebook as part of the class. 

Feb. 18 – Kansas City, Mo. 

Managing Outside Yard Operations… This course is for yard foremen and key personnel supervising the efficient operation of the “outside yard.” Seminar topics include: protecting profit dollars in the yard, customer service in the yard, pre-emptive management and equipment maintenance.  

Feb. 17 – Columbia, Mo.

Feb. 24 – Oklahoma City, Okla. 

Member Pricing: 

Basic Estimating - $425 per person

Advanced Estimating - $300 per person

Yard Foreman Seminar - $310 per person 

Early Bird Discounts available – see registration form for details. 

Complete information and registration forms are available upon request from MLA at 800-747-6529. Or, simply reply to this email with your fax number, and we’ll send complete information today! 

 

LUMBER NEWS – QUICK GLIMPSES 

International Paper Sells Land in Maine to GMO Renewable Resources, But Will Continue to Manage It… International Paper (IP) has agreed to sell more than 1 million acres of Maine forestland, some of which it has owned for more than a century, to Boston-based firm GMO Renewable Resources. 

The sale comes as a bit of a shock for industry experts, but shouldn't affect Maine's economy negatively. IP has negotiated with GMO to continue to manage the land, and GMO will provide the IP mills in Jay and Bucksport with enough wood fiber to meet their needs. The management arm of IP, an independent firm called Sustainable Forestry Technologies, already manages about 2 million acres of land throughout the United States and Canada. Under its new ownership, the property also will remain within the Sustainable Forestry Initiative certification program, at least while under IP management.  

Source: LBM Daily, November 11, 2004 

Small Business Tax Breaks… Before recessing Congress passed the American Jobs Creation Act, which President Bush signed. The core purpose of this bill was to repeal tax breaks for multi-national companies that the World Trade Organization deemed illegal subsidies. It did that and replaced them with a reduction in taxes on revenues derived from domestic production.   

The new law does many other things, too, including several tax breaks for small businesses. Three significant provisions: 

An extension of the $100,000 limit on equipment expensing under Section 179 of the Internal Revenue Code and the accompanying $400,000 phase-out threshold through 2007 but reducing the deduction for vehicles with gross weight of 14,000 pounds or less, primarily sports utility vehicles, to $25,000.  

Reduction of the 39-year depreciation period for improvements to leased property to 15 years for changes made before Jan. 1, 2006. 

Revision of rules on S corporations to allow all family members to be treated as one shareholder and increasing the maximum number of shareholders to 100. 

And for consumers, the law allows taxpayers who itemize deductions to take a deduction for state and local sales taxes in place of the existing deduction for state income taxes in 2004 and 2005. 

Source: The Washington Report, published by the National Retail Hardware Association, November 2004. 

Baucus' Bill on Softwood Lumber Tariffs Duties Has Canadians in Uproar… News of plans made by Sen. Max Baucus, Democrat of Montana, to introduce a bill to "liquidate" tariff duties is the latest in the ongoing softwood debate.  

At present the duties are being held pending the outcome of various trade litigations. However, if past Canadian successes are anything to go by, then the collected tariffs would ultimately be refunded to the Canadian companies that paid them.  

Under the Baucus bill, U.S. Customs would hold onto the money in escrow accounts and the funds to pay American producers would issue from U.S. government itself.  

Source: LBM Daily, November 15, 2004 

Pesticide Stop-Sale Date Coming… Dec. 31, 2004, is an important date for hardware stores. After that date it will not be legal to sell residential home, lawn and garden pesticides containing Diazinon. The stop-sale date, imposed by the Environmental Protection Agency, covers products such as Ortho Diazinon Insect Spray, Ortho Diazinon Soil and Turf, Hi-Power Ant, Roach, Spider Spray Formula and Scotts Lawn Insect Control.  

Manufacturers are offering a buyback program in which they will repurchase unopened and unused residential products from retailers.  

Consumers can continue to use these products already in their possession but are cautioned to follow carefully instructions on the labels and to contact local hazardous waste disposal officials for proper disposal instructions if they want to get rid of the products.   

Source: The Washington Report, published by the National Retail Hardware Association, November 2004. 

Housing Cools Slightly in Third Quarter, But No Bubble… The U.S. housing market has shown some signs of cooling in the third quarter, with gains up 7.7 percent overall, and Fannie Mae reporting a probable third-quarter profit drop of 9 percent. However, according to the National Association of Realtors, there is no strong evidence that the U.S. housing market is experiencing a price bubble, and thus there is no expectation of a sharp drop in housing prices in the near future. 

Source: LBM Daily, November 16, 2004 

YOU NEVER REALLY KNOW 

Sometimes you may be tempted to take shortcuts or overlook background checks on prospective employees, if you know them and feel they are trustworthy. But, you never really know. 

Even though you use a hiring checklist for a new employees and try to gather all of the right information, you might miss something.  Just because an employee’s motor vehicle record (MVR) shows no violations, you can’t assume the driving record is spotless. If you don’t ask to see the driver’s license or check the number you may not get an accurate MVR.   

In some states, Social Security Numbers are used as drivers’ license numbers. The Social Security Act allows any state to use the Social Security number (SSN) to establish identity. However, individuals or the state may change drivers’ license numbers for a variety of reasons. 

 Be sure to look at the license, check to see if the driver has changed license numbers, and use the current number and state of license when requesting MVRs. When an old license number is submitted, the MVR report may show “license expired.”  This could result in a dispute about the individual's status and cause unnecessary delays. It’s important to follow up on reports that seem unusual. It may be a simple error, or it could be cause for concern.  

There are conditions for furnishing and using consumer reports such as MVRs for employment purposes. Employers can get a consumer report on a prospective employee if the individual provides consent. To help comply with the Fair Credit Reporting Act (FCRA) requirements, you should have prospective or current employees sign a “notice” and/or “release” form, before ordering MVRs. 

 You can obtain MVRs from local law enforcement centers, your State Department of Motor Vehicles, a consumer reporting agency or an MVR vendor. Insurance companies can order MVRs for underwriting purposes, but may not provide copies or release the information to employers. However, the insurer can let you know whether the driver meets its standards for acceptability.  

Businesses insured with Federated Insurance may use Federated’s Driver Insurability Service to check the insurability of a prospective employee before hiring by calling 1-800-335-4687.

It is important to always check the MVR of any prospective employee who may drive a company vehicle. In most cases, ordering the report is a simple matter, especially if you have an MVR program in place. However, any time you receive a questionable report or one that shows “expired license” it pays to investigate further. You just never know. 

 

This article is intended to provide general information and should not be considered as legal advice or opinion regarding any specific facts or circumstances. You should seek qualified legal counsel in your state regarding questions specific to your circumstances. ©Copyright 2003, Federated Insurance Companies. 

 

 

MEMBER NEWS 

Congratulations… to Walt Dowd, Beverly Lumber Company, on his retirement in early December. Walt will reside in Arkansas, but will continue to visit Beverly Lumber on a fairly regular basis to ensure a smooth transition. We wish Walt a long and happy retirement, and hope to still see him occasionally at MLA events! 

In Memoriam… Alden W. “Swede” Lyon passed away Friday, November 12, at his home in Leonardville, Kan. Mr. Lyon worked as a manager for retail lumberyards in Arkansas City, Kan. from 1958-1963, Mulvane, Kan. from 1963-1973, and Larned, Kan. from 1973 until his retirement in 1990. While living in Mulvane, he also served as Mayor and Councilman from 1965-1966. He was a resident of Manhattan since 1990 and worked part time at Kansas Lumber, Homestore and Mead lumber Companies. He most recently was employed at Homestore Direct. He is survived by his wife, Wilma Jean, four sons, a brother, a sister, and nine grandchildren. 

In Memoriam… Pauline Mitchell passed away November 16 at her home at the age of 52. She is survived by her husband, Phil Mitchell, of Blish-Mize, two daughters and their husbands, two brothers, three sisters and four grandchildren. Memorials to the First Christian Church, Iola, may be sent to the funeral home – Waugh-Yokum & Friskel Memorial Chapel, 16 N. Buckeye St., Iola, KS 66749. 

 THOUGHT FOR THE DAY 

“Do not spoil what you have by desiring what you have not; but remember that what you now have was once among the things only hoped for.” – Epicurus (Greek philosopher - 341 BC - 270 BC)

  Happy Thanksgiving!