New South Construction Supply eNews - December 2007

Dear Friends:

I want to take this opportunity to wish all of you a happy holiday season. I hope that 2008 will be a great year for you.

The end of 2007 has proven to be challenging. Many forecasters are concerned about the outlook for 2008. We, however, are not being affected as much as many for a variety of reasons. For that, we are very grateful.

As you know, the Federal Reserve made a 25 basis point reduction in interest rates recently. While it was not as much as many had hoped for, it is a step in the right direction. Hopefully, this will help the construction industry get back to where it was a year ago.

Despite the recent downturn, suppliers continue to increase prices on some products. For an in depth look at the pricing outlook for the main products we sell, please see below:

As noted in last month’s newsletter, many manufacturers of construction materials have been forced to either increase prices or announce price increases effective January 1, 2008. Increased costs for raw materials, fuel, transportation, and manufacturing costs have forced manufacturers to raise prices despite relatively weak demand due to the residential market slump.

The worldwide price for steel continues to rise. The domestic price for scrap steel increased $40.00 per ton the week of December 3rd and demand for steel construction products in China and other Asian counties continues to fuel increased prices for rebar, welded wire mesh, masonry reinforcing, masonry anchors, and even nails.

Nucor announced a $25.00/ton price increase on rebar effective January 1st and other mills have followed their lead. It is also expected that another increase of as much as $40.00/ton will take effect in mid January or the first of February. With the cost for scrap continuing to rise, as well as manufacturing costs, most steel experts expect further increases in the early spring. Please be sure to factor these price increases in when you are bidding upcoming projects. You may want to consider purchasing rebar now for any future projects you may have, due to the expected increase in prices

Domestic rod manufacturers announced yet another price to take effect in January. Due to this increase, several welded wire mesh manufacturers have announced a 5% increase effective February 1st. This increase is in addition to the 8 - 10% increase this past month, which was noted in our November newsletter. As with rebar, please be sure you factor in this upcoming increase for wire mesh when bidding projects.

Hohmann & Barnard, Wire Bond, and Dur-O-Wal have all announced they will increase prices effective January 14th by 8 - 10%. With their costs for wire rod, galvanizing, and manufacturing costs having risen dramatically over the past few months, they have been forced to increase prices. With yet another increase in their cost for wire rod going into effect in January, expect further increases in the next few months. We recommend you consider buying out any projects you may have booked now that require masonry reinforcing, ties, and anchors.

All major manufacturers of steel rebar and wire mesh supports raised prices effective January 1st. The average price increase was 8%, plus many increased the dollar requirement to receive prepaid freight. In many instances the increased requirement for prepaid freight would cause the cost to the contractor to be as much as 5 - 7% more.

Polyethylene manufacturers increased prices by approximately 5% in December. It is expected that resin manufacturers will raise prices in January between 5 - 8%. If their cost for resin increases, expect polyethylene manufacturers to raise prices again by 5% or more in January.

Most major construction chemical manufacturers have announced price increases effective January 1st. As reported in our November newsletter, BASF Construction Chemicals will increase prices between 3 to 8% on January 1st, depending on the product. Other manufacturers of construction chemicals increased prices by approximately the same percentage as BASF.

The one bright spot is copper and stainless steel thru wall flashings. The worldwide price for copper and stainless steel has stabilized and even declined slightly since November. Although most manufacturers of copper and stainless steel thru wall flashings expected to raise prices by as much as 10% in January, the expected increase appears to be in the 2 to 3% range.

This month, we are featuring the following suppliers:

RectorSeal is one of our long-time suppliers of fire stopping materials. They have a full line of products, including fire caulking, pillows, spray, and all other fire stopping materials. We never get a complaint on their products. We highly recommend them. Their products are available at all of our branches, so let us know the next time you need any fire stopping materials.

Euclid Chemical has been a supplier of ours for only the past year. Most of you know them as one of the oldest and most reliable suppliers of construction chemicals, sealants, and powders in the construction industry. We are now stocking Euclid products at all locations. Please see below for more information about their wide product line.

QC Construction Products is one of the industry leaders in decorative concrete products such as stains, sealers, stamps, concrete dye, and anything else related to the art of decorative concrete. As you know, the use of decorative concrete is growing like wildfire. For only a little more than plain, boring, gray concrete, you can make concrete look like slate, stone, terra cotta, or whatever else you can imagine. The entire QC line is available at your nearest New South branch.

This month’s management article is entitled, “Get Ahead of the Pack.” All of us in business look for ways to differentiate ourselves from our competition. I found this article to have a lot of good ideas on how to do that. I trust you will as well.

In closing, I wanted to let you know that, as in past years, rather than send out Holiday cards, which will quickly be discarded, we are making a donation to the Make-A-Wish Foundation in the name of our customers. Thank you for your tremendous support throughout the year. I wish a healthy and prosperous 2008 for all of you.

Best regards,
Jim
Jim Sobeck
President
(864) 325-6518
jim.sobeck@newsouthsupply.com

This month we are featuring the following suppliers:

 

RectorSeal: A LEEDer in Green Building


RectorSeal provides the only complete line of firestopping products that contain no harmful chemicals or poisons (such as ethylene glycol.) Made in the USA, our products meet the requirements for earning LEED accreditation points. With unparalleled quality, our “NO Time Limit” warranty, and built-in mold inhibitors, they contribute to the sustainable design concept of your building project. RectorSeal firestop sealants eliminate the health hazards associated with installation, are safe for the environment you work in, have excellent freeze-thaw capabilities and do not require hazardous waste disposal for used materials. Add firestopping value, life-safety cpliance and peace of mind to your projects by calling your nearest New South branch today.


The Euclid Chemical Company, founded in 1910, is today a worldwide supplier of quality products and services for the concrete and masonry industry. Marketed under the EUCO, Tamms, Dural and Speed Crete brand names, we offer a full line of concrete construction products based on the latest technologies for new, repair and maintenance applications. The Euclid Chemical Company is unique in our offering of superior products and unparalleled customer service and industry support. Euclid products are now available from all New South branches.

 

 

 


Look for many new products from
QC Construction Products in 2008!

 


QC Construction Products provides a comprehensive product line for the architectural concrete industry. A family of dependable, durable products designed to work together in creating stunning effects. Integral colors, color hardeners, release agents, reactive and penetrating stains, penetrating dye, solid-color stain, stampable and micro-topping overlays. Along with curing agents, accessory products and a variety of sealers, QC Construction Products has the products necessary to maintain the beauty of each project, year after year.

Quality extends beyond our product line. Nationwide distribution, an experienced sales team, the industry’s best technical direction and knowledgeable Customer Service Representatives are available to give you a clear edge over the competition. Specification assistance (IIDA, ASLA, AIA/CES, CSI), product demonstrations, production samples, sales aids and literature are available to ensure the client gets what they want. QC Construction Products has color lab technicians on site to provide color matching and custom color services meeting the challenges of project perfection.

Everything we do at QC Construction Products is geared towards you. Contractors, architects, designers, construction managers and homeowners are all part of our business and members of the QC family. Our products are in your home, children’s schools, offices and the mall where you shopped last week... We’re with you every step of the way.

 


Get ahead of the pack

All leaders want to be part of a top-performing company. All employees do, too. And partners and customers seek out businesses that are at the top of their game, as well. It’s natural to want to spend our working hours engaged with dynamic organizations that flourish, not struggling ones that flounder. But have you ever wondered what makes a company a top performer? Rick Lepsinger has—and when his company did a research study on a related subject, he discovered some surprising answers.

“ Our research on how top-performing companies prepare for and manage change and what they do to ensure they are able to execute plans and strategies effectively reveals some interesting similarities and differences between the most and least successful companies,” says Lepsinger, president of OnPoint Consulting (onpointconsultingllc.com) and coauthor along with Dr. Gary Yukl of Flexible Leadership: Creating Value by Balancing Multiple Challenges and Choices (Jossey-Bass/A Wiley Imprint, 2004, ISBN: 0-7879-6531-6, $44.00).

“ First, the similarities between the two groups are striking,” he continues. “Companies in both categories can point to visions that employees believe are clear and strategies that are perceived to be realistic. They have employees who understand that the “customer is king” and who are engaged and have the skills required to do their jobs.”

What, then, differentiates the very best companies from those that are less successful? Lepsinger says top-performing companies are characterized by cultures that are flexible, adaptive, participative and innovative — and they operationalize these cultural attributes through leader behavior and organizational structure and systems.

Leader behavior: Four ways to lead your company into “top-performer” territory
“ Leaders in top-performing companies are capable in four areas: managing paradoxes, leading change, participative leadership and leading by example,” says Lepsinger.

If you’re a leader, you need to ensure that you’re comfortable in all four areas. If you’re a CEO, make sure all your leaders meet the following criteria:

1) Get comfortable with managing paradoxes. Leaders in top-performing companies are better at finding the right balance between what appears to be mutually exclusive outcomes: achieving short- and long-term goals, establishing control and providing autonomy, ensuring stability and managing change, and keeping costs low and quality high while growing the business. They are also better able to manage the sometimes contradictory needs of customers, employees and stockholders/owners.

2) Understand (and use) the five magic keys to managing change. OnPoint’s research identifies five behaviors that enhance the ability to lead and manage change effectively:

Be forthright about the change and its impact. Sixty-four percent of the 655 participants in OnPoint’s survey said that open and honest communication from leaders, even when they don’t have all the answers, would make change easier. People want leaders to be accessible and to engage in “change talk.” What is change talk? Lepsinger says it’s an open discussion of the pros and cons of making the change or maintaining the status quo, and of the behaviors required to support the change and boost people’s confidence in their ability to transition successfully to the new way of doing things.

Model behaviors that support the change. It is not enough to just say the right thing or even enthusiastically communicate the benefits and the business case for the change. Employees want to see those words backed up with behavior. That is how they judge how effectively someone is leading and managing a change.

Set realistic objectives and milestones. As employees reach realistic goals and milestones, they become more positive about the change and will see its benefits. Targeting unattainable goals will frustrate and demoralize employees during the first few critical months, and the time and energy you’ve spent preparing for the change will have been a waste.

Don’t underestimate the resources required. Over committing existing resources or underestimating what it takes to accomplish objectives is a primary cause of change initiatives failing to meet their intended outcomes. Keep in mind that your employees have commitments to annual performance goals in addition to the work they need to do to make the change a success.

Maintain enthusiasm and excitement among your employees. During the first month of a change, managers meet with employees to get their support. After the first month, though, those managers return to their day-to-day jobs, and employees can lose focus. Leaders need to model behaviors that support the change for the duration of the initiative, not just at the kickoff.

3) Involve team members in the decisions that affect them. Participative leadership matters. In 2006, the NBA introduced a new basketball and never asked the players for input while it was in development. As a result, the players refused to use a new ball they felt was difficult to handle. Involving the players early on would have increased the quality of the ball and the acceptance of the decision.

“ Employees should be involved in critical decisions that affect them, and they should be able to freely share their thoughts and concerns,” notes Lepsinger. “It gives employees a sense of ownership and nothing truly great can occur in the absence of that.”

4) Lead by example. Leaders in top-performing companies understand that people will not trust or follow them if they are not willing to live by the same values and support the same priorities they require of others. Take, for example, two contrasting approaches to the leadership by example factor: Donald Carty, former president of American Airlines, who offered gigantic “stay bonuses” to senior executives after asking employees to take significant pay and benefits cuts, and Carlos Ghosn, CEO of Nissan, who, when he took over the floundering company in 1999, pledged to step down if Nissan failed to show a profit in 2000. Carty lost credibility and had to step down, while Ghosn is celebrated as a “master of execution” and a “turnaround artist.”

Structure and Systems: Three ways to change yours for the better
“ Of course, having the best leaders in the world won’t matter if your organization isn’t set up in a way that allows them to use their skills,” says Lepsinger. “As our research revealed, your corporate structure and operational systems are just as important as your leader’s behavior.”

Here are some goals to shoot for:

1) Strike a proper balance of centralized and decentralized responsibility and ensure that people at all levels have the freedom to take action to achieve results. This improves responsiveness and allows issues to be managed right where they happen.

When Mark Hurd took over as CEO of Hewlett-Packard, he understood that the key to success was to make the Compaq acquisition work. He did just that when he reorganized the company into three divisions, with each division having its own sales force, making the heads of the divisions responsible for sales. He also reorganized the IT function. Instead of having 85 data centers, he centralized them into three. Essentially, he decentralized the sales force and centralized the IT function of the company. This is the opposite of the way the company was organized before, and it ensured the organizational structure would be better aligned with the business strategy. One measure of HP’s success is that operating profit increased during 2006 by 31 percent.

2) Excel at coordinating decisions and actions across organizational boundaries. In 2006, Ford demonstrated how difficult this is. When the company decided to update the Ford Focus, the North American operation wanted to simply refresh the existing model, while the European operation wanted to develop a new version of the model. The two groups couldn’t come to an agreement, so they each did what they wanted to do. The North American group updated the existing model, and the European group developed a new model. As a result, Ford couldn’t share parts or take advantage of economies of scale and it cost the company money.

3) Ensure that systems are aligned with strategic initiatives. For example, if your strategy calls for innovation, does the organization have systems in place to facilitate organizational learning and creative thinking? To encourage innovation, a company needs a mechanism to screen and fund these ideas.
“ Individuals shouldn’t have to struggle to find support and resources to help develop their ideas,” says Lepsinger. “People frequently cite the efforts of Art Fry and Spencer Silver, the 3M employees who invented Post-Its, as a shining success story of personal initiative and perseverance. We would ask, ‘Why did those guys have to work so hard? Wouldn’t it have been better for everyone if a support system had been in place?’“

The bottom line? Being a top-performing company is a rigorous challenge not for the faint of heart. Indeed, recent events at Dell, Motorola, and Chrysler illustrate how difficult it is to execute effectively and maintain top performance year after year. Still, the results are worth the effort.

“ Becoming a top performer requires constant attention to the differentiating factors discussed above and a willingness to review and continuously improve products, services, and the business model itself,” says Lepsinger. “But the alternative is settling for mediocrity, and in a global economy mediocrity is the kiss of death. After you claw your way to the head of the pack, and after you realize how much fun you and your employees are having, you’ll be glad you didn’t settle.”




New South Construction Supply Locations

 

Main Office
Shipping:
951 Harbor Road
West Columbia, SC 29169

Mail:
PO Box 512
Columbia, SC 29202

Phone: (803) 791-8700
WATS:(800) 849-6768
Fax: (803) 796-0713

Concrete/Masonry Products Sales
Phone: (803) 791-8700
Accounting Dept. (803) 791-8724
WATS: (800) 849-6768
Main Fax: (803) 791-8191
President- Jim Sobeck (864) 325-6518
EVP/CFO- Kurt Herwald (864) 268-3970

VP Purchasing- David Hodgin
(704)-358-9797
Director of Finance and Operations- Dave Lewis
Operations Manager- Donald Whately
Sales Manager- Jon Black



Other Locations

9 N. Kings Rd
Greenville, SC 29605
Phone: (864) 269-7007
WATS: (800) 849-4454
Fax: (864) 269-6004
Operations Manager- Rob Hovanec
Sales Managers- Russ Lott & Lance Perry

1427 Mechanical Blvd.
Garner, NC (Raleigh) 27529
Phone: (919) 662-9012
WATS: (800) 849-4677
Fax: (919) 662-9412
Operations Manager- Vic Murray
Sales Manager- Bud Driggers

 

Other Locations

4987 Banco Road
N. Charleston SC 29418
Phone: (843)760-0780
WATS: (888)224-3140
Fax: (843) 760-6127
Operations Manager- David Starr
Sales Manager- Trip Moore

9050 D W. Market St.
Colfax (Greensboro) NC 27235
Phone: (336) 992-0237
WATS: (800) 609-0889
Fax: (336) 992-0839
Operations Manager- David Perkins
Sales Manager- Kearns Cheek and Anthony Bunting

180 Rodeo Drive
Myrtle Beach SC 29579
Phone: (843) 236-6447
WATS: (800) 821-2676
Fax: (843) 236-6521
Operations Manger- George Acerbi
Sales Manager- Clint Paul

649-51 Anderson St.
Charlotte NC 28205
Phone: (704) 358-9797
WATS: (866) 375-9660
Fax: (704) 358-9646
Operations Manager: David Hodgin
Sales Managers: Jim Harris,
Walt Bell, and Chris Daleus

358 Industrial Park Rd
Hardeeville (Hilton Head) SC 29927
Phone: (843) 784-1580
WATS: (866) 326-8802
Fax: (843) 784-1581
Acting Operations Manager- Dave Davis
Sales Manager- Ray Bryant

17251 Highway 53
Gulfport MS 39503
Phone: (228) 539-2519
WATS: (866) 506-7257
Fax: (228) 539-2771
Operations Manager- John Jalanivich
Sales Manager- Blake Boone