Vol. 5, No. 26 – December 18, 2006 

 

 

 

NLBMDA Year-End Legislative Report
 

The 109th Congress is expected to adjourn in mid-December after completing action on appropriations measures.  A brief summary of NLBMDA’s accomplishments and priority issues for 2006 is provided below:

 

•Lawsuit Reform - Innocent Sellers Fairness Act (ISFA)

Under NLBMDA’s leadership, the Innocent Sellers Fairness Act (ISFA; H.R. 5500) was introduced in the House of Representatives and garnered 22 cosponsors. Although legislative action is improbable before the 109th Congress adjourns, NLBMDA already is making plans to secure reintroduction of ISFA in the 110th Congress. Please watch for alerts on NLBMDA’s advocacy website, www.buildthevote.org, and future issues of The Advocate for the new bill number and ways that you can help promote ISFA and other industry priorities to legislators.

 

•Lawsuit Reform – Asbestos Litigation

Senator Arlen Specter’s (R-PA) legislation, the Fairness in Asbestos Injury Resolution (FAIR) Act (S. 852), failed to gain the 60 votes necessary for consideration in the spring. The FAIR Act, which would create a trust fund to pay individuals who have been exposed to asbestos, thereby reducing the liability burden on retailers, was reintroduced as S. 3274. No further legislative action is expected on the FAIR Act before the 109th Congress adjourns.

 

•Health Care – Small Business Health Plans (SBHPs)

After nearly a decade of inaction, the entire Senate debated legislation (S. 1955) to allow small businesses to band together to purchase health insurance for their employees through the creation of SBHPs. Unfortunately, the Senate fell short of the votes necessary to end debate and pass the bill. Expanding access to affordable health care for small businesses will continue to be a priority for NLBMDA and the 110th Congress.

 

•Tax – Estate Tax Reform

The Senate failed to achieve the 60 votes necessary to end debate on a compromise on permanent repeal/reform of the estate tax. This will continue to be one of NLBMDA’s priorities in 2007. 

 

MLA Offers Popular Estimating Workshops

 

MLA is pleased to announce that we have engaged Mike Butts, LBM Solutions, to provide our popular estimating training in 2007. Mike is one of the most recognized trainers in the lumber and building material industry. The training will be offered in Wichita, Kan. on Feb. 20-21 and in St. Louis, Mo. on March 6-7.

 

Day 1 leads participants through a typical blueprint format, scale and content. Students will develop an understanding of architectural symbols such as wood, concrete, insulation and electrical schedules, knee walls, wall sections and cantilevered joists. They’ll also learn about “specification and general notes” – their necessity, importance and how they relate to retail sales. In addition, the seminar teaches participants how to approach reading a blueprint to ensure thoroughness and accuracy when completing an estimate of materials.

 

Day 2 focuses on the skills necessary to calculate the framing lumber requirements of the complete shell of the house through comprehensive study of each construction item. Included in this is a review of contemporary “cut roofs” and their unique estimating requirements. Attendance at Day 1 is mandatory for attending Day 2 or the student must have proficiency at reading blueprints.

 

Mike Butts is the founder and President of LBM Solutions.  His abilities and experience have been called "unsurpassed by other consulting firms in the industry.”  His experience has been gained through extensive work in the field at "street level," implementing the programs and practices he teaches.

 

When/Where:

 

February 20-21 – Wichita at The Best Western Airport Inn & Conference Center

March 6-7 – St. Louis at the Embassy Suites Hotel St. Louis Airport

 

Member Pricing:

• Sign up for Day 1 or Day 2 separately at $225 per day.

• Two-day workshop package - $395 for the first person from a member firm -- $375 each for additional personnel.

• Sign up by February 1 – a $50 per person surcharge will be added for late registrants.

Nonmember pricing is available.

 

Complete information and registration forms are available upon request from MLA at 800-747-6529. Or, simply reply to this email and we’ll send complete information today! Information and a registration form also are available at www.themla.com.

 

Note: Attendance at Day 1 is mandatory for attending Day 2 unless person has proficiency at reading blueprints.

 

 

 

LUMBER NEWS – QUICK GLIMPSES

 

Last Week In Washington… The 109^th Congress has adjourned. It leaves in its wake a big budget headache for the Democratic-led 110^th Congress and a huge tax-trade-health care bill. Lawmakers left Washington with nine of 11 appropriations bills still unfinished. The government is operating on a short-term funding bill that runs through Feb. 15, 2007. With the new Congress set to convene on Jan. 4, this will have to be one of its top priorities.

 

Other items on the Democratic agenda for the first 100 legislative hours include increasing the minimum wage, making college education more affordable, rolling back tax breaks for oil companies, implementing recommendations of the 9/11 Commission, giving the government authority to negotiate Medicare prescription drug prices and funding embryonic stem cell research.

 

Source: North American Retail Hardware Association, December 11, 2006

 

NLBMDA Accepting Applications for 2007 Blair Collings Internship… NLBMDA is looking for qualified candidates for the 2007 Blair Collings Internship in Government Affairs. To download a copy of the Blair Collings Internship Application, go to www.dealer.org or contact Sarah Owen at 800.634.8645 or at sarah@dealer.org. Applications due February 1, 2007. 

 

Source: NLBMDA Legislative Update, December 5, 2006

 

Introducing Business.gov… The Small Business Administration (SBA) has unveiled the newly redesigned federal website for businesses, www.business.gov.  According to the SBA, the site “provides a single access point to government services and information to help the nation’s businesses with their operations.”  Business.gov allows businesses to search for compliance information by topic or industry and for federal forms from all major U.S. federal agencies regulating or serving businesses.

 

Source: NLBMDA Legislative Update, December 5, 2006

 

Construction spending fell by 1.0 percent in October – the sharpest decline since September 2001 and the lowest level of construction since last October…Overall construction spending fell at the fastest pace in more than five years as private home construction suffered its longest streak of declines on record, the Commerce Department said Friday.

 

Source:  Forbes.com, December 1, 2006

 

Mortgage Rates Drop Nationally… Mortgage rates around the country fell this week, with rates on 30-year mortgages dipping to the second-lowest level of the year, pushed down by further economic weakness.

 

Mortgage giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages averaged 6.11 percent, down from 6.14 percent last week. The only time rates have been lower this year was the week of Jan. 19, when the 30-year mortgage dipped to 6.10 percent.

 

The Mortgage Bankers Association on Wednesday said loan applications were 8 percent higher last week and up 1.9 percent from the same week in 2005.

 

Source: Builder Business Update, December 12, 2006

 

Home Depot May Be Target of Private Equity Firms… Home Depot is apparently a target of private equity firms Kohlberg Kravis Roberts & Co. and Texas Pacific Group, according to recent news reports from CNBC and the New York Post. The first would pay a record $100 billion in a leveraged buyout of Home Depot, which has been rapidly growing its new wholesale division, HD Supply.

 

The Post reported no formal offer for Home Depot has been made, but firms have been talking with investment banks about structuring the debt needed to finance what would be the largest leveraged buyout in history. CNBC reported investment bankers have contacted Home Depot’s board members to gauge their interest.

 

The company has refused to comment on the takeover reports. Analysts told news sources that a buyout would have to be made at a premium, and that raising the capital to buy out Home Depot could be tough.

 

Source: NAWLA Bulletin quoting Modern Distribution Management Online, December 12, 2006

 

Softwood Lumber Case Dismissed by U.S. Court… A Washington, D.C. appeals court dismissed the case brought by industry group the Coalition for Fair Lumber Imports, which represents a number of U.S. lumber companies. The CFLI's case challenged the authority, established under the North American Free Trade Agreement, of decision-making panels.

 

Source: LBM Daily, December 13, 2006

 

 

PART TIME EMPLOYEES

 

Are you having problems motivating part-time employees? Because they are often treated as outsiders by the full-timers, it can be difficult. Part-timers have little chance for advancement, and often do jobs that others won’t do. If you want to make them feel more at home, then you have to take action. When they first come on board, be sure they are trained and given orientation on who is who and where to go for what they need. Next, link them up with two mentors, one full-time employee, and one supervisor. This will really make them feel like part of the company, and will also lower their stress and increase their productivity.

 

Next, mix up their job tasks and responsibilities. If they are doing the same thing all the time, your chances of keeping them go down dramatically. If they have special skills, use them to their utmost. Be as flexible as possible with scheduling, but let them know up front the times you must absolutely have them working. If they are topnotch, create financial incentives and bonuses that make it too costly to go look for work elsewhere.

 

Source: Bob Losyk, MEd., M.B.A., C.S.P. is a Certified Speaking Professional, master trainer, author, and President & CEO of Innovative Training Solutions, a Greensboro, NC consulting firm. 

 

MEMBER NEWS

 

Star Lumber & Supply Co., Wichita, has announced plans to build a $3 million, 33,000-square-foot store at K-18 and Scenic Drive just west of Manhattan, Kan. The 4.34-acre complex will include several buildings, including sales and operations offices, a builder’s showroom, millwork warehouse and two lumber storage buildings.

 

Source: The Wichita Eagle, December 15, 2006

 

 

POLLUTION LIABILITY OFTEN OVERLOOKED

 

Pollution liability claims tend to be low frequency, high severity claims; they don’t happen often, but when they do, they are usually expensive, even catastrophic.

 

Consider this claims example:

A fire broke out in a building at a building material dealer’s location where herbicides, pesticides, paints and thinners were stored.  As the fire was extinguished, some of these materials were washed into a storm sewer that fed into a nearby creek.  Cleanup of the creek was extensive; over 80,000 gallons of contaminated waste had to be removed. Total cost of the cleanup was $300,000.

 

Federated clients have many different pollution exposures, including but not limited to:

 

·         Auto Dealers – motor oil, lubricants and antifreeze stored in bulk, waste oil, paint over-spray

·         Machine Shops – parts cleaning solvents and machine lubricants stored in bulk

·         Hardware Stores – pesticides, herbicides, paints and thinners

·         Auto Parts Stores and Auto Repair Shops – accumulated old batteries, cases and drums of motor oil, windshield washer fluid, leaking hydraulic lifts

·         Equipment dealers – motor oil, oil/water separators

·         Printers – toxic inks and dyes

·         Contractors – portable petroleum storage tanks, solvents, lubricants

 

You can help reduce your pollution exposure by taking the following steps:

• Train employees in the proper handling and storage of potentially hazardous materials.

• Establish proper emergency procedures such as who to call and how to recognize a pollution incident in the event a release occurs.

• Consider purchasing insurance coverage for situations that cannot be prevented.

Insurance coverage may be available—at affordable rates—that can indemnify your business for the cleanup costs and third party damages for which you may be held legally responsible. This type of coverage has become more available and affordable in recent years.

 

Take time to uncover