TODAY - LAT · 2 | July - December 2010 LAT Today TODAY is the official publication of the Lumbermen’s Association of Texas located at Suite 150, 1016 La Posada Drive Austin TX

Volume 24 - Number 7/8/9 - 10/11/12 July - December 2010

The Premier Organization of Quality Building Material Suppliers in Texas and LouisianaServing Dealers. Supporting Builders. Since 1886

TODAY

Featured Articles:

Comply Ability ..........................3

LAT 2010 Convention ...............5

125th Anniversary ....................9

Credit Card Savings ................ 15

Louisiana Legislature .............. 18

Alamo Photos ........................ 22

ARCHER’s TARGET

By LAT PresidentRobert ArcherMorton Lumber, Borger TXTriple A Lumber, Amarillo, TX

Why Participate? Writing a column is definitely

not in my bag of tricks, so bear with me. Should it be a pep talk? ie: Let’s get out there and get more members! Should it be a philosophical treatise on “The intangible benefits of coming to the LAT show”? Should it be scholarly, and reference quotes by industry experts, or rock solid and give examples of how coming to LAT paid off for me? Why did I join? What do I get out of this association?

Contacts? Politics and access to our legislators? Buying opportunities? Networking? Friends that work like I do?

leaders in our industry have considered LAT a part of their success.

I encourage everyone to bring someone from “the next generation” of your company to the meetings and get them involved in a committee. Take a minute and share what coming to the LAT means to you.

For a tangible tidbit, Marilyn was reading a LAT e-newsletter early this year and picked up on the fact that if you pay your sales tax a month in advance, the state of Texas allows an extra 1.25% discount. This is in addition to the .5% you get for paying on time, for a total of 1.75% of the sales tax collected that you get to keep. We’ve saved over $2700 since March,the savings will be over $8000 by the end of the year, way more than we spend coming to and being a member of LAT. We wouldn’t have even known about it if we had not been members.

I am looking forward to seeing you at upcoming meetings. Bring a Protege’. Thanks for your indulgence. Robert Archer

All these things ran through my mind as the deadline approached. Truth is, LAT is all these. If you are in the position in your company to come to LAT, then you understand the benifits and consider them worth the time and money to be here. We all would express it in different ways.

Why does Walter Foxworth come to LAT meetings and events? Why are Brian McCoy and Meagan McCoy Jones involved? Why do Melvin and Ginger Faircloth come? Why do associates like Bobby Crowley, Aaron Elliott, Bobby Byrd and Al Cron always show up? Whether or not you try and tag a specific sale, or a specific relationship you have formed, or how many good deals you got at the show,or how many customers you saw at the show, we must realize that for 125 years

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EPA Lead Safe Work Practices Training Available –

LAT MEMBERS Can Benefit - by Providing Your Conference Room for final 2 hour On-site Training Session!

Many paint contractors and remodelers, along with painters, roofers, electricians, plumbers, mechanical contractors and landlords, aren’t aware of the EPA mandate that went into effect April 22, requiring Training for Lead-Safe Work Practices. Some are simply ignoring it. Either way, ignorance is no excuse when you’re facing a possible $37,500 fine per incident per day.

LAT is now working with ComplyAbility – an online training, testing and performance tracking system based in Lawrence, Kansas. It is an EPA certified and accredited Lead-Safe Work Practices training provider under Section 402 of the Toxic Substances Control Act.

Six of the required eight hours of training can be taken online. The final two hour training component needs to be “hands on” and this is where LAT members can benefit. If you have a meeting room or can coordinate any suitable facility that will hold 15 (minimum required) to 20 (maximum allowed) people, and are willing to promote this training among your customers, you will receive $15 per trainee from ComplyAbility. You will also be responsible for up to (but no more than) $250 in travel expenses for the “hand on” trainer. If you do the math, it will cost you $25 if the 15 person minimum attends, or you could pocket $50 if the maximum 20 people attend. You will also need to provide one individual to be available to assist the trainer if requested for the 2-hour session.

Regardless, this could be a great benefit to your paint contractors and remodelers, and in turn benefit for your paint and other lead-safe material sales.Call 800-708-6460 to speak to a staff member for details.Post several copies of the attached Lead Bulletin in your store for your customers to take and be sure your paint sales people provide copies to their customers.Go to www.LeadSafeOnline.com for online information.

2 | July - December 2010 LAT Today

TODAY

is the official publication of the Lumbermen’s Association of Texas

located at Suite 150, 1016 La Posada DriveAustin TX 78752.

Phone 512/472-1194 Fax 512-472-7378

E-mail [email protected]

Effective July 1, 2010,

TODAY is published biannually as a service to members of LAT.

No endorsement is implied of services or products advertised in this publication. Advertising is available with discounts to

associate members / for repeat ads. Classified ads are free to

retail/dealer members only and on a limited basis. All members

are encouraged to send company news, press releases, etc. to LAT

for publication. All publication materials must be received in

the LAT office by the first of the month prior to that quarterly publication. Materials received

after the first of January and July will be used in the next available

publication of LAT TODAY.

OfficersRobert Archer, PresidentRufus Duncan, First VPMatt Mullin, Second VP

Mary Cunningham, TreasurerJohn Jones, Secretary

Frank Fazzio, Sgt. at ArmsKC Cox, Associate VP

Jon Cromwell, Louisiana VPBob Ashley, Past President

StaffBarbara Douglas,

Executive VP & EditorCraig Lukshin,

Service & Finance Manager

Activant Solutions Inc.

Alamo Forest Products

BlueLinx

Boise Cascade

Bradco Supply

Capital Lumber

Cedar Creek Texas

Cedar Supply, Inc.

CertainTeed

Denver Southwest

DixEquip

Dixie Plywood

DMSi

Do it Best

Dow Chemical Company

DuPont Tyvek – WPL

DW Distribution

ECMD

Federated Insurance

Gaiennie Lumber

GRK Fasteners

Guardian Building Products

Handy Hardware

Hixson Lumber Sales

Holland Southwest Intl.

Hoover Treated Wood Products

Huber Engineered Woods

Huttig

I-Level by Weyerhaeuser

Indiana Lumbermens Insurance

LAT Co-op Credit Card Program

TriSource

Lumber Insurance Services

Marwin Company

Orgill, Inc.

Ozark Natural Paneling /Curtner Lbr

PALFleet Truck Equipment

Pennsylvania Lumbermens Insurance

PrimeSource

ProBuilt DIY Aluminum Railings

Richardson Timbers

RMAX Operating LLC

Roy O. Martin Lumber

Silvaris/Low Grade Lumber

Snavely Forest Products

Tamlyn

Temple-Inland

W.W. Cannon, Inc.

SUPPORT LAT EXHIBITORS & SPONSORS

LAT is grateful for the following companies who supported LAT and dealers attending the 2010 LAT convention. PLEASE CALL THEM FIRST WHEN YOU NEED A SUPPLIER!

LAT TODAY July - December 2010 | 3

Make several copies of this for your contractor bulletin board(s)!

AnnouncingLead-Safe Training – Now Available Online

We’re proud to team with the Lumbermens Association of Texas & Louisiana to bring you Lead-Safe Work Practices training online!ComplyAbility is an EPA Certified provider of Online Lead-Safe Work Practices Training. Six (6) hours of online training is accompanied by two (2) hours of “hands-on” skills assessment.Who is covered? Painters, Remodelers, Renovators, Contractors, Plumbers, Electricians, Roofers…You must use Lead Safe Work Practices when working in child occupied facilities or homes built before 1978. To become RRP Certified, you MUST receive training from an Accredited Training Provider!

“Hands-On” classes are scheduled at locations as convenient to you as possible. You must sign up for a hands-on training class in advance by responding to an email you will receive upon completion of the online portion of the training. Bring your “Online Training Completion Certificate” with you to gain admittance to the hands-on training.

The online price is $195 per person. Your cost, however, is just $180. Use the Promotional Code: LA4BC when you register to receive the discount.

Take mandated Lead-Safe Work Practices training when it’s convenient for you. No sitting in uncomfortable chairs, in stuffy rooms, daydreaming or thinking about what you •have to do when you return to work. You learn in a non-stressful environment because you have control over your training •experience. No taking time away from your business and no lost income as a result• . Instant access to training manuals, required forms, brochures (Renovate Right pamphlet that •you must distribute, etc.), Plus permanent access to these materials. •There are many additional benefits to Online training!•

Act Now to Avoid Stiff Financial Penalties!All EPA forms, manuals and other materials are permanently accessible via the ComplyAbility LeadSafeOnline system…Licensed Firm & Renovator Application, Training Verification Record, RRP Rule Handbook, On-the-Job Training Verification Form, and more.

Register @ www.leadsafeonline.com or call 1-800-708-6460

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LAT 2010 CONVENTION GOLFERS boosted LUMPAC funds!

Barbara,Kudos on a great convention in a still-difficult business

environment. The numbers may have been down but the spirits seemed to be improved over last year with most of the folks that I talked to feeling that we’ve hit the bottom and are on the climb back up. Thanks again for all that you and Craig did to make the event so special and fun for my family and me.You do a super job and your efforts are greatly appreciated.

John L. Jones Cassity Jones Companies

Barbara,I did want to say thank you to the L.A.T. organization for

the award and it means a great deal to me to be recognized by the dealers and vendors. I take great pride not only in my job, but also the L.A.T. and all of its members. I have made many good friends within this industry, but also the L.A.T. family is a special group of people who care about one another, as well as the industry as a whole. It’s been a wonderful experience for me to be a part of this organization. Thank you for you and Craig and all that you two contribute everyday. Respectfully,

Bobby CrowleyRichardson Timbers


2010 GOLF, cont.


LAT 2010 CONVENTION PRIZE WINNERS

Brenda Gloor LAT President Robert Archer & winner Lonnie Goolsby Joe Breeden

Luke Archer Winner Marvin Fikac Winner James Garza Marcie Heidrich & Rufus Duncan & Craig Lukshin


LAT 2010 CONVENTION CRAWFISH FIESTA

Robert & Marilyn Archer Luke Archer

Steve & Gay Herren Eddie Stafford Eddie & Ann Howard

Grady Ashley & Claire Ashley Joe & Carolynn Breeden

Bill & Joanne Lawson


Lumbermen’s Association of Texas & Louisiana

Serving Dealers. Supporting Builders. Since 1886.

phone: 512.472.1194 fax: 512.472.7378 www.lat.org

1016 La Posada Drive, Suite 150 Austin, Texas 78752

NURTURE THE ROOTS

Celebrate your history … preserve the past

Plan now to include YOUR company history in the 125 Year HISTORY of LAT and 70 Year HISTORY of LBMDA!

In 2010, LAT will prepare to publish a 125 year history of the association and ALL the members – both dealers and associates – to commemorate the 125th anniversary of LAT – and the 70th anniversary of LBMDA - in 2011.

The history will be available for purchase in 2011 in a one-color, soft-cover version, and will also be available on the LAT website - www.lat.org By publishing a one-color, soft-cover book, we will keep printing expenses low in order to keep the purchase price as affordable as possible.

In addition to the histories of the Texas and Louisiana associations, the book will include histories of every member who wishes to submit text and photographs on their businesses.

Each member may purchase one or more pages for only $100 per page, payable upon submission of pages Deadline for submission is September 1, 2010. Submissions accepted February 1 through September 1, 2010.






Begin work now on your page(s) for this once in a lifetime anniversary publication – celebrating you, your business, and 125 years of LAT in Texas – and 70 years of LBMDA (10 years with LAT) in Louisiana! Sept. 1, 2010, deadline for copy submission!

Details and Publishing tips – In addition to any photographs you wish to submit: (do not send original photographs – submit as jpg files via email to Barbara @lat.org)

1. include the founding date of your business, 2. owners and name changes, family names and relationships 3. city locations and changes over the history of your business, 4. current size and types of material sales of your business (retail / contractor, sales volume and / or number of employees), 5. unique characteristics of your business, community, and owners – past and present. 6. Payment by check must be submitted to LAT when your company history is sent. Checks only - $100 per page. 7. Copy must fit into a minimum of a 8” wide by 10” high page, using a 10 point Tahoma font. 8. LAT reserves the right to edit copy to fit as needed. 9. At least one photo file image should be included of your business. More images are encouraged! 10. All images will be printed as black & white. 11. All material must be submitted electronically – as a separate word document and separate jpg files for each photo /

image - email to [email protected] 12. 2010 LAT dues must be paid on or before submission of materials. 13. 2011 LAT dues must be paid before January 15, 2011 for pre-press inclusion. 14. LAT dealer & associate members whose dues are paid for BOTH 2010 and 2011, and who do not purchase a page will

have their company names listed in the 125 year anniversary publication.

In preparation for this, we plan to recreate – on Friday, April 9, at the 2010 LAT convention in San Antonio - the early 1900 era photo of LAT members posed in front of the Alamo! Everyone invited to join in on this free photo opportunity on Friday, April 9, 2010!

Celebrate your history … preserve the past

NURTURE THE ROOTS

A tree with strong roots can withstand the most violent storm, but the tree can't grow roots just as the storm appears on the horizon.

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You manage the daily operations of a highly successful business. You are a pillar of the community and a person of honesty and integrity.

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LAT 2010 CONVENTION GALA



LAT 2010 CONVENTION BAND

Jackson Truitt Johnny Castillo

Victor de la Garza

Build with Proven

TEXAS Strength

Available in a complete range of dimensions and grades, Temple-Inland lumber products have been the choice of Texas builders for over 100 years. Build with the standard that sets the standard for all.

www.templeinland.com 800-231-6060Robert Archer

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ALLNEW!


LAT 2010 CONVENTION MEETINGS & EXHIBITS


LAT 2010 CONVENTION ALAMO PHOTO OP!This may have been the highlight of the 124th annual convention – as more than 100 LAT members and their families

gathered in front of the Alamo to recreate the photo taken 100 years ago.

THANKS to all of the participants who truly MADE HISTORY by being part of this photo. 8x10 copies are available for $20 each – see order form in this newsletter

LAT 2011 CONVENTION April 7-9

BACK IN THE SADDLE! In Fort Worth


LOUISIANA LEGISLATIVE SESSION REPORT UPDATE!

Lien Laws –HB 763 legislation was amended

to become HB 1465. It now clearly differentiates “movable” vs “immovable” items, which should eliminate any need for lumber & building material dealers to comply with this proposed legislation UNLESS you sell appliances, furnishings that are NOT ATTACHED to a home. HB 1465 was still scheduled for final call by the House as of May 11, 2010.

HOUSE BILL NO. 1465 (Substitute for House Bill No. 763 by Representative Gary Smith)

Abstract: Requires that the owner receive notice of certain liens under the Private Works Act prior to recording the lien. Present law requires the seller of movables sold for use or consumption in work on an immovable for residential purposes to deliver a notice of nonpayment to the owner at least 10 days before filing a statement of his claim and privilege.

Green Jobs – HCR 122 was introduced by

Representative Walt Leger (D-) to create the Louisiana Green Jobs Workforce Advisory Council to develop and consider measures that state and local government may take to encourage the advancement of environmentally sustainable jobs. The measure stipulates that a representative of the Louisiana Pulp and Paper Association be a member of the Council.

COMMITTEE THROWS OUT CIVIL JUSTICE REFORM OF 1996

A bill that would strike a devastating blow to the business community passed out of the Senate Judiciary A Committee in early June.

While we all continued to watch aghast as the BP oil spill kept spewing and growing in the Gulf of Mexico, using the BP oil spill to sensationalize the legal issue of punitive damages, is a threat to businesses of all sizes. In addition to allowing punitive damages to apply in cases involving the exploration of and drilling for oil and gas, such damages could also be applied in cases involving the handling, storage and transportation of hazardous substances. Such substances are not defined in the bill, but are based upon the determination of the federal government. That list has been known to include such far-fetched items as cotton, various cleaning materials, and oily rags.

Plaintiffs are already made whole through general damages. Punitive damages are added on top of those. In the case of this legislation, punitive damages have no limits. Your immediate help is needed

in urging senators to kill SB 547. This broadly-written legislative interpretation would be left to individual judges, with businesses not knowing what they face from jurisdiction to jurisdiction.

A wide range of business interests turned out to show opposition to the bill, but a vote by Committee Chairman Sen. Julie Quinn (R-New Orleans) sent the bill to the floor. Voting WITH LABI and making studied and precise points in their comments and questioning were Senators Claitor, Donahue and Kostelka. Joining Sen. Quinn in a vote AGAINST LABI were Senators Nick Gautreaux, Marionneaux and Murray.

LAT belongs to the Louisiana Association of Business & Industry.

Gulf of Mexico Mess – how can one person help?

We’ve all been watching aghast as the oil keeps spewing and the spill gets larger and more deadly to fish and wildlife, and those who depend on the sea for their livelihoods in the Gulf of Mexico. As frustration grows over BP’s inability to control the spill and a government response that many believe has been too slow, some are taking matters into their own hands, raising funds and helping directly in cleanup efforts.

With oil from the now hitting shore, biologists and volunteers are bracing for a wave of animals caught in the pollution and an ecological punch that could bruise the region for generations. Over 65 miles of shore have been affected by oil, threatening more than 400 species of wildlife, including birds, sea turtles, marine mammals, fish, oysters and other creatures.

Oil seeping into the marshes and wetlands areas has already sullied two major rookeries for brown pelicans, the Louisiana state bird. Large swaths of fisheries have been polluted, throwing the Louisiana seafood industry into a disastrous situation.

How You Can HelpIf you live in the coastal region and need

to report a sighting of wildlife injured or affected by the spill, call BP’s oiled wildlife retrieval hotline at 866-557-1401.

The Gulf Coast Oil Spill Volunteers Facebook group has been created to help mobilize people who want to get the training required to help in cleanup efforts. Over 8,000 members have joined the group, where they have posted information for residents in Louisiana, Alabama, Mississippi, and Florida.

See details from the group are here: h t tp : / /www. facebook . com/g roup .

php?gid=121928837818541&v=infoThe National Wildlife Federation (www.

nwf.org) is helping coordinate the on-the-ground volunteer effort, including NWF’s Gulf Coast Surveillance Teams, which are being set up to monitor the coastline for wildlife in distress. Here are some other things you can do to help Donate to the National Wildlife Federation’s Gulf Oil Spill Restoration Fund - You can help wildlife threatened by the oil spill by donating online, making a leadership gift or donating via your mobile phone. Your support will help NWF’s on-the-ground volunteer and restoration efforts. Text “WILDLIFE” to 20222 to donate $10 Speak Up for Cleaner Energy Choices - Tell your senators that now more than ever we need to pass comprehensive legislation that provides America with cleaner and safer energy choices. Help Spread Messages Online - Follow @NWF on Twitter or join them on Facebook to get all the latest updates about the BP Oil Spill. And, again,if you find wildlife along the Gulf Coast that you think may have been injured by the oil spill, do NOT attempt to rescue it. Call the Oiled Wildlife hotline at 866-557-1401.

TEXAS LEGISLATIVE

NEWSGeneral elections are only five

months away – ARE THERE STATE LEGISLATORS IN YOUR DISTRICT WHO MERIT SUPPORT FROM LUMPAC? Please let us know asap, so we can assist in their campaign efforts if needed. General elections will be held November 2, and Prefiling of legislation for the 82nd Texas Legislature begins November 8.

On January 11, 2011, the 82nd Texas Legislature convenes at noon. The LAT Legislative committee meets June 23 to discuss possible lien law legislation currently being worked on by the Construction Suppliers Association, mostly contractor members, but who share the same concerns on Texas Lien Laws.

Already, next year’s session is going to be dominated by budget concerns, and sunset recommendations for several agencies. If we’re going to move any legislation forward, we need to begin lining up our friends in both the House and the Senate, so call (800-749-5862) or email [email protected] with your key legislative contacts who may need our support.


It’s official: Chinese drywall attacks and severely damages copper and silver components of homes where the drywall is installed, and to correct the problem, all the drywall in the home must be removed and replaced, along with wiring, plumbing, air conditioning equipment (including ductwork), and interior finish components such as trim, flooring, cabinetry, and carpeting. That’s the ruling from U.S. District Court Judge Eldon Fallon in the first “bellwether” trial in the Multidistrict Litigation proceedings for homes containing Chinese drywall. In houses where Chinese drywall is mixed with non-corrosive U.S.-made drywall, the judge ruled, all drywall from whatever source must be stripped, and all wiring, plumbing, and air conditioning systems throughout the house must be replaced.

The case is called “Germano, et al. v. Taishan Gypsum Co. Ltd., et al., case no. 09-6687,” and pits seven Virginia homeowners against the Chinese government-owned manufacturer Taishan Gypsum. Judge Fallon’s decision in the case is posted at the court’s website. In the published ruling, the judge walks through a point-by-point description of the damage the drywall causes to various home components, explaining why the only appropriate remedy is to completely remove and replace the affected building materials. The court rejected all suggestions by drywall manufacturer Knauf Tianjin, appearing on behalf of the absent Taishan Gypsum, that the problem might be solved by removing only certain pieces of drywall or by cleaning copper components rather than replacing them; this partial fix, the judge determined, would be ineffective as well as too expensive, and would not suffice to make the homeowners whole.

The judge issued a finding of fact that Chinese-made drywall creates a “severe industrial” corrosive environment inside the home, as defined in a standard created by Batelle Laboratories — the most severe of four levels of corrosion risk set forth in that

Federal Judge Rules for Homeowners in Chinese Drywall Trialstandard. The corrosive gases emitted by the drywall can penetrate wiring insulation, he stated, and once the process has begun, corrosion caused by deposits on original wiring, plumbing, and air conditioning coils would continue even after all drywall has been replaced. Furthermore, the judge ruled, replacement of selected portions of wiring, plumbing, and air conditioning is not practical or cost-effective. Accordingly, the judge ordered, remediation in affected homes must extend to replacement of all the vulnerable building materials. “The only economically feasible option, at least at the present time,” the judge writes, “is to totally gut the structure, take it down to the studs and remove and replace all wiring.”

Other elements in the home that have to be removed in order to gain access to the drywall, wiring, plumbing, and air conditioning elements are likely to be damaged in the process, the judge ruled, and should be replaced as part of the remediation. This requirement applies to cabinets, carpeting, and wood or vinyl flooring — all must go. Some tile flooring, the judge ruled, might be able to be protected and left in place. Wall or ceiling insulation, however, must be replaced. Same for kitchen and bath fixtures, the judge ruled: “Sinks, toilets and shower enclosures generally must be removed when the drywall is removed because they are installed on top of drywall or to enable the remediation workers to move freely. It is more cost-effective to replace these items than to gently remove, safely transport and store, and reinstall at a later date.”

After removal of drywall and components, the judge ordered, homes must be vacuumed with HEPA vacuum equipment, wet-wiped or power-washed, and allowed to “air out” for several weeks.

The judge ruled that loss of value in the homes after remediation could not be firmly established, calling these economic losses “speculative.” However,

he ruled that homeowners were entitled to reimbursement of their living costs outside the home while remediation is accomplished.

The dollar damages awarded in the case apply only to the seven homes involved in this “bellwether” example case. After a detailed discussion of the experience of each homeowner in the case, Judge Fallon awarded damages to each based on their particular circumstances. In total, the seven families are entitled to collect $2,609,129.99, he ruled.

However, there’s no telling whether these families, or any homeowners whose drywall was provided by Taishan Gypsum, will ever collect a dime from the manufacturers. Taishan Gypsum did not appear in court, and there is no indication so far that the Chinese government, which owns the firm, intends to recognize the U.S. court’s authority. To date, diplomatic efforts by the U.S. have not produced any tangible result. On the other hand, the precedent set in the Taishan case will apply to other homes with Chinese drywall, including drywall supplied by Knauf Tianjin. And the parent company, German-based Knauf, may be accountable in the U.S. because of the company’s extensive business here, which involves a wide range of building materials. The court appears ready to consider all Chinese-made drywall as essentially equivalent in terms of its harmful effects: wrote the judge, “The Court was presented evidence by both [the Plaintiffs’ Steering Committee] and Knauf experts that the chemical and physical properties of Chinese-manufactured drywall do not differ significantly from region to region or state to state.”

Judge Fallon has already heard evidence in a second case involving Chinese drywall supplied by German-owned Knauf Tianjin; a ruling in that case has not yet been handed down, but the judge has promised to act quickly.

The HIRE Act is focused on job creation. It includes many provisions that impact employers, including payroll tax reductions and tax credits for employers that have employees that meet certain eligibility requirements:

The 6.2% Employer Social Security Tax •exemption applies to 2010 wages paid after March 18, 2010 to individuals hired after February 3, 2010, who were previously unemployed for at least 60 days.

This exemption has no cap or limit as to the total amount of tax benefits that can be claimed by an employer. Employers can save up to $6,622 per qualifying worker, whether they hire one worker or hundreds of new workers.

Employers are also eligible for a $1,000 •income tax credit on their 2011 business tax returns if these qualified workers are employed for at least 52 consecutive weeks and earn at least 80 percent of annual wages.

However, the legislation specifies that any tax exemption savings realized through March 31, 2010 must be applied as a credit to second

quarter employment taxes. The new law requires that employers get a statement from each eligible new hire, certifying under penalties of perjury, that he or she was unemployed during the 60 days before beginning work or, alternatively, worked fewer than a total of 40 hours for anyone during the 60-day period. Employers can use Form W-11 to meet this requirement. You can find this form at www.IRS.gov, and search for “Form W-11”.

REGULATORY NEWS


They’re GoneA term I coined over the last year is

“supply chain destruction”, and it appears many in the industry are just now realizing it’s real. My concern is the destruction process is far from over, based on the depletion of retained earnings and the inability to secure adequate lines of capital. The inability by many companies to show a profit based on reduced levels of business and overwhelmingly bad debt further hampers any chances of securing the capital required to go further. Because of these reasons, I believe the bloodletting in the industry is far from over and the next nine months will be tough.

The last two major recessions of our generation occurred in 1982 and 1991, and housing starts during both remained above the 940,000 mark. It appears 2010 could be year three in which housing starts end far less than the previous two recessions. The interest rate for an average 30-year fixed mortgage was 16.04% in 1982; 9.25% in 1991; and today, it’s 5.1%. The problem in the previous two recessions was the cost of money, while today you can get money. That’s why so many people are getting wiped out. In the other recessions, companies would reduce spending to cover the higher cost of money and hang on for dear life, but businesses today have no opportunity to do this.

I recently spoke with an executive at a major distribution company and he said customers were asking him, “Why don’t manufacturers re-fire the mills and put the loggers back in the woods, since there is a spike of demand?” His answer was short and to the point, “They’re gone.” The small companies that owned the trucks and saws to pull logs out of the forest are no longer in business, with many of their trucks on the auction block. The second and third shifts at the mills are gone, leaving many

An Independent Voice - I excerpts from articles in the Florida Building Material Association’s E-NewsletterDon Magruder is a former Chairman of the Board for the Florida Building Material Association and is currently the Vice President and General Manager of Ro-Mac Lumber & Supply, Inc. of Central Florida www.romaclumber.com. He also serves as Chairman of Citizens for Better Government, L.L.C. www.lakecountygov.infoLet us know what you think about his views – we thought they were compelling enough to share in this issue of the LAT TODAY.

companies unwilling to ramp up production for a blip in business. In fact, what real motivation would any company have to crank up production if price levels are still below profitable levels? A comfortable long-term profit level must be reached by these companies to crank up production, especially given the odious layoff rules the government has imposed, not to mention the future healthcare debacle.

Look at your own operation. Many of us have reduced staffs by 50%, or greater, for a long period of time. Have you tried to call any of these people back? For us at Ro-Mac Lumber, many of these folks have secured jobs in other fields or moved away. They’re gone. Most people in our industry haven’t come to grips with the absolute brain drain that has occurred over the last three years. I’m not talking about warehouse people that are no longer employed; I’m talking about senior managers, top notch support people, experienced department heads, and qualified salespeople. Like the horror movie “The Body Snatcher”, these people are gone and will probably never return.

Because cash is, indeed, king and capital is so tight, inventories on all levels are being held to extremely low levels as many dealers have decided the right strategy for them is to follow the market’s ups and downs. Do you blame them? Unless you have a crystal ball, based on lack of confidence being sent from Washington, you’d have to be out of your mind to load the wagon now. This only exacerbates the “they’re gone” principle in the supply chain. This means every sneeze, hiccup or cough that occurs in the supply chain for the next few years – yes, years!

This same scenario is how Ro-Mac Lumber & Supply, Inc. came into existence. After World War II and The Great Depression, Buck Robuck and his brother founded the company with the McDonald family based on assurances they could get lumber

from Buck’s brother-in-law, who ran Foley Lumber Company. Between the war, The Great Depression, and the housing boom from returning soldiers, lumber was in short supply and was being rationed by the government. Buck’s ability to buy lumber is how this company started. History has a way of repeating itself.

In my view, the entire building material supply chain has been decimated, and most will not see how bad it truly is until housing starts to kick back up to the 600,000 plus range or a bad tornado season or major hurricane hits the U.S. Then, hold on Nelly, prices will skyrocket and supplies will be tighter than a bottle of whiskey at an AA meeting. Builders will complain and demand, but not much can be done, and dealers, other than building great relationships and loyalty with your primary vendors, not much can be done for you either. Trying to buy a six-month supply of building materials at a price which could crater in three months because of something done in Washington makes no sense in light of the capital issues. Dealers should spread the message to builders to watch out for long-term quotes and make sure they are aware of the precarious situation the supply chain is in.

Supply chain destruction is not a problem that will correct itself in three months or even in three years, because it’s still occurring. Until real confidence is restored at all levels and until housing starts show signs of a consistent million units per year, don’t expect much investment in this industry. Can you imagine going to a bank in Florida today and saying, “Hey, I’d like to borrow $5 million to start up a lumberyard.” The next thing you know, security guards are ushering you out the door. The bottom line is this - supply chain destruction is real and those who try to outsmart it will probably become another one of its victims.


• What is LuDPAC?The mission of the Lumber Dealers Political Action Committee (LuDPAC) is to engage lumber and building

material dealers in the political process and promote the building material industry’s legislative agenda by electing industry-friendly, pro-business candidates to federal office. LuDPAC allows likeminded members

to come together to elect candidates who will be their voice on Capitol Hill.

• Why should I join LuDPAC?Every day in Washington, DC, politicians make decisions that impact your business. From advancing the Innocent Sellers Fairness Act, to expanding small business’ access to health insurance, to raising or

lowering taxes – your perspective and involvement as a business owner can have a powerful impact on how your elected officials vote in Congress. LuDPAC provides an easy way for you to contribute personally

to advance the building supply industry’s legislative agenda.

Participating in LuDPAC is an investment in the success of your business and your industry!

• Who decides where the money goes?The LuDPAC Board of Trustees is composed of volunteer NLBMDA leaders who are responsible forgeneral supervision over the activities and funds of LuDPAC. One Trustee represents each of the five

political regions of NLBMDA’s membership, with the LuDPAC Chair, Vice Chair, and the GovernmentAffairs Committee Chair serving in at-large positions. In keeping with the LuDPAC mission of

electing building material industry-friendly, pro-business candidates, candidates must demonstrate support for NLBMDA priority issues. The LuDPAC Board reviews requests from dealers and candidates and selects candidates who will receive endorsements and financial support. You can view the list of currently

endorsed candidates at www.BuildtheVote.org.

LuDPAC 2010 AUTHORIZATION YES, I’m interested in joining forces with others to increase our industry’s political effectiveness.I authorize NLBMDA to communicate about LuDPAC with me and the executive or administrative personnel of my company, for the following four years (or the years signed and agreed to in writing below). My organization has not approved a solicitation by any other trade

association federal political action committee for any of these years.Federal Election law requires NLBMDA to have this form on file for each contributor to the LuDPAC. Signing for multiple years is optional but

will save time in the future. Signing this form does not obligate you to contribute. Thanks for your cooperation!

Please complete the following information:

Name:________________________________________________Title:___________________________________________

Company Name:_______________________________________________________________________________________

Address:________________________________________City:_________________________St.:______Zip:______________

Phone:______________________Fax:______________________Email:___________________________________________

Please sign by each year for which you would like to grant LuDPAC authorization:

2010:_________________________________________ 2012:_________________________________________________

2011:_________________________________________ 2013:_______________________________________________

Return by mail to: NLBMDA-LuDPAC, 2025 M Street NW Suite 800, Washington, DC 20036-3309 or fax to: 202.367.2169

ALAMO GROUP PHOTOGRAPHS AVAILABLE NOW! A limited number of black & white 8x10 photographs taken at the 2010 LAT convention are available for $20 each – which includes mailing & handling. The professionally developed photos have the date and LAT logo on it as pictured below, and comes in a nice display folder. We opted for black and white to conform with the historical photographs of LAT members in the office.

Complete the form below and & mail with a check payable to LAT – $20 - for each photo you wish to purchase. Or, if you prefer, we can invoice you and the photo(s) will be mailed to you upon receipt of payment.

ALAMO PHOTO ORDER FORM Please send ____ photographs @ $20 each to: (quantity)

Name_________________________________ Company_____________________ Mailing Address__________________________City__________St____Zip_______ ____Check enclosed – payable to LAT ___Please invoice me





sample


INDUSTRY NEWSNew Resource for Deck Builders

The Southern Pine Council has launched a new website where professional deck builders can find the key information they need to build safe, durable real wood decks. “There’s a lot of information and misinformation out there about the pros and cons of using real wood versus composites, and we thought it was time to tell people why wood is still the best material available,” said Richard Kleiner, director of treated markets for the Southern Forest Products Association, which sponsors SPC.

The site – www.ProWoodDecks.com – explains why real wood is the preferred material, offers specification tips for Southern Pine decking, covers steps in the deck-building process, and more. Links to the American Wood Council’s Design for Code Acceptance: Prescriptive Residential Wood Deck Construction Guide appear throughout the site.

The Southern Pine Council (SPC) is a promotional program sponsored by the Southern Forest Products Association (SFPA), a nonprofit trade association representing Southern Pine lumber producers. SPC is the leading source of information about Southern Pine products for design-build professionals and consumers.

www.southernpine.com

New Spans app from WWPA

The Western Wood Products Association has released a new Lumber DesignEasy Joist/Rafter Spans application for the iPhone and iPad. This app enables architects, engineers, building code officials and other design professionals to quickly calculate simple joist and rafter spans for Western lumber structural grades. Lumber products sized from 2x4 to 3x16 can be selected. Price: 99 cents! Go to www.wwpa.org

MEMBER NEWSCONDOLENCES to….

… the family of Weldon Wallace “Wally” Poole III, owner-manager of Poole Lumber Company in Covington, Louisiana, who passed away April 19, 2010. He was 37, a native and lifelong

resident of Covington, LA. Wally graduated from St. Paul’s School, Class of 1991 and the University of Alabama, Class of 1996, where he became a member of the Delta Kappa Epsilon fraternity. He was a former LAT Director and committee member, as well as a member of NLBMDA, Wood Unlimited, NFIB, St. Tammany Economic Development Foundation, Louisiana Retailers Assn., St. Tammany HBA, Louisiana Forestry Assn., Forest Land Owner’s Assn., Southern Forest Heritage Museum, Louisiana Wildlife Agents Assn., past board member of the Livingston Parish Forestry Assn., and a board member of the St. Tammany Parish Forestry Assn. and a member of the Krewe of Olympia carnival organization. Survivors include his mother Genita Schorling Poole, a brother, two sisters and numerous nieces and nephews. A Funeral Mass was held at St. Joseph Abbey in Covington, followed by burial in The Poole Family Cemetery. In lieu of flowers, donations to St. Paul’s School, P.O. Box 928, Covington, LA 70434.

… the family of Dorothy Jean Parker, wife of Harvey Parker of Stephenville. Dorothy passed away May 3, at a Fort Worth hospital. Services were held at Lacy Funeral Home Chapel and burial was at Goldthwaite Memorial Cemetery in Goldthwaite. Harvey is the manager of the Stephenville Barnes & McCullough Lumber Company and a former LAT Director.

CONGRATULATIONS to….… Ronnie Spradlin, owner of East Texas Lumber Company, Kilgore, Texas, who was elected Mayor of Kilgore on May 11 with a lead of more than 87%! The photo below is from ProSales’ Craig Webb’s weblog from 2007, where perennial animal lover Spradlin was pictured with this squirrel that he rescued, bottle-fed and named Sammy.

Cedar Creek Purchases Alamo Forest Products Wholesale

Distribution Locations TULSA, OK, June 3, 2010 – Cedar Creek

announces the purchase of Alamo Forest Products wholesale distribution locations in San Antonio, Houston and Harlingen, Texas. The transaction is structured as an asset purchase. Clark Wiens, Vice President of Business Development for Cedar Creek, who led the acquisition effort, said, “We view this as a great opportunity to increase our presence in Texas and enhance our reputation for premier service.”

Bill Adams, CEO of Cedar Creek, added, “This acquisition underscores our commitment to growing the footprint of Cedar Creek to better serve our existing customers and open new markets.”

“We have known Cedar Creek for years,” said Alamo’s George Vaughan. “We believe that our distribution company is a great fit for them, and that our customers and employees will be well-served by this change.”

Cedar Creek is a leading wholesale building material distribution company with headquarters in Tulsa. In May, it was recapitalized by Boston-based Charlesbank Capital Partners, with the goal of providing flexible capital for the company to grow beyond its current trade areas.

LATOne La Costa1016 La Posada Drive Suite 150Austin TX 78752phone 512-472-1194fax 512-472-7378www.lat.orgemail [email protected]

ADDRESS SERVICE REQUESTED

The Premier Organization of Quality Material Suppliers

in Louisiana And Texas

CHECK OUT www.lat.org for the latest news, upcoming webinars and seminars, 2010

convention info, products & services and more! Thanks to McCoy’s Building Supply,

Higginbotham’s, Cassity Jones for their contributions in helping to fund the web redesign.

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TODAY - LAT · 2 | July - December 2010 LAT Today TODAY is the official publication of the Lumbermen’s Association of Texas located at Suite 150, 1016 La Posada Drive Austin TX