New South Construction Supply eNews - February 2008

Dear Friends:

As the New Year progresses, the commercial construction sector continues to hold up fairly well while the residential market continues to limp along. Hopefully, the commercial market will continue to do well. If the Fed cuts interest rates again (and this time the pundits are saying it is going to be a “significant” cut), that may give us enough of a boost to keep commercial construction out of a recession. Let’s all keep our fingers crossed!

This month, I am proud to announce that we have selected the dates for our second annual New South Charity Classic golf tournaments benefiting the Make-A-Wish Foundation. Those of you who were there last year told us that we achieved our goal of hosting the best construction industry golf tournament in the Carolinas. Those of you who were not there missed a tremendous outing for a fantastic cause. If you want to play this year, our tournament in Greensboro, NC, will be on October 20th, and our tournament in Columbia, SC, will be held on September 15th. Put the dates on your calendar now. For more information, click here.

Despite the construction market struggling in some areas, the price of petroleum and steel continues to drive up the prices of many of the major products we sell. For more specific information, please see below.

The cost of wire rod continues to see record increases. As reported in our February newsletter, domestic wire rod manufacturers increased prices in February and have already announced another price increase of approximately 8% in March. With import prices at record levels, little or no imported wire rod is available in the US. This has forced producers of masonry reinforcing, concrete reinforcing mesh, and concrete mesh and rebar supports to once again raise their prices and announce their intent to increase prices again in March.

Wire Bond, Hohmann & Barnard, and Dur-O-Wal, have all announced a 10% price increase for masonry reinforcing and masonry ties effective March 1st. Industry analysts expect another increase by wire rod manufacturers in April of between 8-10%, so this will force masonry reinforcing manufacturers to increase prices again in April. If you have upcoming projects that require masonry reinforcing and masonry ties, we strongly recommend you buy out these projects prior to April to avoid the expected increase.

Concrete reinforcing mesh manufacturers increased prices 6-8% between February 18-25. With their cost for wire rod increasing in March and with speculation of another increase in April, most concrete reinforcing manufacturers will be raising prices again in April. As with masonry reinforcing, if you have upcoming projects requiring concrete reinforcing mesh, you should consider purchasing now to avoid the upcoming increases.

Manufacturers of rebar and wire mesh supports increased prices by approximately 8% in February. All major manufactures of rebar and wire mesh supports announced another price increase effective March 1st of another 8%. With their cost for wire rod expected to increase again in April, most forecasters expect another increase of 8-10%.

Nails are another product group which has seen a huge increase in recent weeks. China imposed a 35% tariff on all exports of nails effective February 1, 2008. This tariff along with the increased cost for wire rod has caused Chinese manufacturers to increase prices by as much as 50% in February. This increase is being passed along to domestic importers of nails immediately. This includes orders which had already been produced and shipped, but not yet delivered to US ports. This has caused nail prices to skyrocket, not only in the US, but worldwide. With the price of wire rod expected to increase even more over the next few months, further increases for nails can be expected.

Nucor, along with most major domestic manufacturers of rebar, announced in mid February, that they would not increase prices in March. This was due to a slight decline in the price of scrap steel and weak domestic demand. Although there will be no increase in March, many industry analysts expect the price of scrap steel to increase in March. As demand usually increases in March, as we head into the “construction season,” expect rebar prices to rise again in April.

Manufacturers of copper and stainless steel thru wall flashings have held their prices for the past few months. With many projects now using alternative thru wall flashings and with weak domestic demand, it is expected that copper and stainless steel thru wall flashings will remain stable for the next 30 to 60 days, unless the worldwide price for copper and stainless steel moves upward.

Although polyethylene and plastic vapor barrier resin manufacturers tried to increase prices again in February, this increase didn’t “stick”. This was due to weak domestic demand in the residential construction and home improvement markets. Prices for polyethylene and plastic vapor barriers should hold steady in March and into April. With agricultural demand for polyethylene normally increasing in late March, resin manufacturers may try to increase prices again in late March or early April. If so, expect another increase in April.

This month, we are spotlighting the following suppliers:

  • Zurn Flo Thru is the industry leader in trench drains and accessories. All of their products are available from any of our branches. To see more about their product line, please see their ad below.
  • Hohmann and Bernard is one of the most comprehensive manufacturers of masonry accessories and flashings, among many other products. They have been a long time supplier of ours and are known for their quality and on-time delivery. Please see below for information about one of their newest products.
  • Dow Chemical is a multinational manufacturer of many types of construction products. Many of you are familiar with their “Great Stuff” product line but may not even be aware that Dow makes “Great Stuff.” For more information about Great Stuff, please take a look at their ad below.

This month’s management article is entitled “Four Keys to Soaring Past Your Competition.” In a tough market, we are all looking for an edge on the competition. Hopefully this article will give you some new ideas on gaining the upper hand on your competitors.

In closing, as mentioned above, let’s hope that the construction market recovers sooner than economists are projecting. In the meantime, let’s all keep a positive attitude and remember that economists have predicted seven out of the last three recessions!

Best regards,

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

 

This month we are featuring the following suppliers:

 

Hohmann & Barnard’s Textroflash Liquid™ is an excellent air & vapor barrier/moisture barrier. It allows proper drainage of the wall system, while providing protection from the detrimental effects of air exfiltration and infiltration, such as energy loss, condensation, efflorescence, bacterial growth, mold, etc.

Environmentally friendly, it is both VOC-free & HAPs-free. Suitable for application to concrete, CMU or cast-in-place concrete.

Applied by brush, squeegee, or spray (no on-site mixing required), it has an application rate of just 40 dry mils, so multiple coats are not required.

 


 

Zurn Flo-Thru Features Grating for Z886 Trench
Drainage System

Zurn Flo-Thru, a division of the Zurn Industries, LLC, features decorative grates, H20/H25 grates, FAA load rated grates, and ADA-compliant grates for its Z886 Perma Trench drainage systems. The standard grate for the Z886 Perma Trench is a heavy-duty, slotted ductile iron grate. Zurn Flo-Thru offers a variety of grating options for the Z886 trench drain system, grating must be specified.

The Z886 Perma Trench is a high-density polyethylene [HDPE] trench drain, constructed in 80” modular sections. The HDPE material allows 0% water absorption. It features a 0.75% built-in, uniform slope which handles greater flows, and a radiused bottom that offers a better flow rate with less solids build-up. The channel sections are durable and lightweight.

The Z886 Perma Trench system also offers catch basins, closed endcaps, and both end and bottom outlets. Tee, 90-degree “corner” and 45-degree fabrications are available upon request. Sidewall extensions, which allow for runs longer than 120 feet, are also offered.

For more information, please visit www.zurn.com or call 1-800-906-5060.








STICKING POINTS

GREAT STUFF PRO™ Wall & Floor Adhesive is applied with a PRO Series foam dispensing gun for a simple and neat application. And the secure bonds created with GREAT STUFF PRO Wall & Floor Adhesive reduce nail pops in drywall, and floor and stair squeaks - which will help keep homeowners happy and minimize callbacks.
In addition to its ability to adhere to dry, damp or frozen lumber, GREAT STUFF PRO Wall & Floor Adhesive is admired for its:

• Excellent bonding to plywood, rigid foam insulation, drywall, concrete and more
• Quick cure (initial bond in approximately 2 hours)
• Ability to reduce drywall nail pops and floor squeaks
• Freeze/thaw stability
• High yield (one can replaces up to 16 quart tubes of traditional caulk adhesive)

 

Across the Board Adhesion

GREAT STUFF PRO1™ Wall & Floor Adhesive is compatible with foam panels as well as lumber, plywood, particle board, masonry, drywall and concrete. And its excellent bonding power means fewer fasteners are required in most applications. GREAT STUFF PRO Wall & Floor Adhesive can be applied in a single 1/2" bead on joists and studs. For optimum performance, apply adhesive bead in a continuous zigzag, ensuring adhesive layer will completely cover joists and framing on sistered joints or studs or wherever wood panels and drywall edges meet.
.

Formulated for the Pros

Count on the GREAT STUFF PRO™ family of products to help you handle the toughest jobs.
• GREAT STUFF PRO1™ Wall & Floor Adhesive
• GREAT STUFF PRO1™ Gaps & Cracks Insulating Foam Sealant
• GREAT STUFF PRO1™ Window & Door Insulating Foam Sealant
• GREAT STUFF PRO1™ Gun Cleaner
• PRO Series foam dispensing guns

Keep projects moving with Dow, even when cold and wet.


Four keys for soaring past your competition
by James Feldman

The new motto of innovative organizations should be "catch me if you can." Confronted with a constantly shifting array of customers, competitors and increased market volatility, the only hope for survival lies in the ability to change as rapidly as your competitive environment. It is time to think and act beyond the bounds of conventional wisdom.

However, a business plan that is defensive, designed merely to keep up with the competition, is not good enough. The strong emotions that feed our competitive spirit should be used to promote innovation. We must lead with our minds and follow with our hearts. Ideas are the spark that ignites the fire of creative innovation, and innovation is a business leader’s best offensive weapon.

When you get right down to it, only four viable strategies for coping with this accelerated pace of change exist: continuous change and improvement, innovative thinking, creative marketing and speed of implementation. Here’s how to do that.

Continually change and improve

Most people find change, particularly rapid and unpredictable change, frightening and upsetting. But turbulence and change are not going away. Change happens and there is nothing your company can do to stop it – nor should they. In change there is inherent opportunity just waiting to be discovered by those who are quick enough and bold enough to take advantage of it. It is time to readjust your thinking to understand that you should be causing change, not reacting to it.

Your best chance to succeed is to be the one who is driving most of the changes. Of course, not everyone gets to be the leader. So it is incumbent on the rest of us to do the next best thing, namely develop super-fast reflexes that can respond quickly. There is simply no alternative if you want to stay competitive.
While we can’t slow the pace of change, we can use many strategies to speed up our own corporate processes. The only effective response to rapidly changing conditions is to develop the capacity to move at ultra-high speed – in other words, increase your operating velocity. While no one can realistically expect to move as rapidly as the constantly changing environment around us, those who can come closest will be best positioned to survive.

Think innovatively

Opportunities will be waiting for you in today’s business world if you can overcome resistance to new ways of thinking. What stops most companies from innovation is hesitation due to uncertainty. But when you cast aside uncertainty and start to ask “what if,” you will unleash the unlimited possibilities of innovative problem solving that result in new profits for your organization.

As you search for innovative solutions to your business challenges, consider the following:

• Have I defined the problem accurately?
• Does my thinking recognize its imperfections and liabilities?
• Have I substituted assumptions for facts?
• What are the weaknesses of this solution?
• Is the solution intellectually honest?
• Am I applying the same standards to myself as I demand from others?
• Is this something others can use?
• What would happen if our competition came up with this first?

The key is to recognize the competitive power of speed and to turn the pursuit of innovation into a central organizing principle in your company and career.

Market creatively

One essential practice to integrate into your business strategy is superior client communication. You can strengthen your client relationships by introducing your business innovations without technical jargon. We all have seen new products introduced with a fanfare of technical terms so complex that companies may as well be speaking a foreign language to their customers. You can avoid this mistake by talking to your customer in terms they can easily understand. They will be grateful for your ability to communicate clearly, and you will be giving them intelligible information they can relay to others in their organization.

When giving a presentation to a client, you may be tempted to spend time telling them how good your new product is, but this is a waste of time. Instead, tell them how much better they will be when they use it. Every communication should demonstrate the benefit to the client, not congratulate the seller. Use words like “you” and “your” more than “we” and “our” to keep their interest and keep the emphasis on them.

Make sure your client has a Call-to-Action list. This list shows them step-by-step what needs to be done to requisition your product. If prospects don’t know when or how they are supposed to buy from you, they simply will not try to buy.

Remember, innovation is how we make money from creativity, but your product can’t be recognized as innovative if no one buys it. Benjamin Franklin may have discovered electricity, but it is the person who invented the electric meter that is making all the money.

To convince your customer, leverage the power of the new information technologies by delivering your materials into the right hands at the right time. Web sites and e-mail are wonderful communication tools, but it is essential that they are easy to access or download. Try to select a domain name that is easy to remember and easy to associate with your company name.

Implement swiftly

Just as action ultimately accomplishes far more than pure analysis, speed will beat perfection every time in today’s business environment. Because failure is intricately interwoven with success, you must create a safety zone in which everyone understands that failures will not curtail attempts to succeed. Learn from your failures and then quickly overcome them.

You’re far better off being 80 percent right and first to market than 100 percent right and six months late. Implement now and perfect later. Try something, test it, learn from it and try it again quickly. As an example, Bic Pen often introduced products while it biggest competitor, Gillette, was still field-testing. The result was that Bic owned the disposable razor market first, as well as the inexpensive ballpoint pen market, while their competition refined product features.

Let’s be perfectly clear about what’s at stake here. For those who really can do things faster than their competitors, the rewards may be extraordinary, including:

• ownership of the de facto industry standards;
• lasting position on the leading edge of innovation by incorporating technological advances;
• rapid responses to market opportunities;
• opportunity to claim premium prices;
• attractive and strategic distribution channels;
• higher staff morale and commitment;
• off-balance competitors, bewildered and put on the defensive by your constant, quick-paced innovations.

The future is now

To survive and compete in the new business environment, you will have to create and maintain a business model that recognizes the supreme importance of urgency and speed. You must learn to anticipate your customers' future needs, which will be fueled by a new type of demand that is constantly changing.

Make speed and urgency core values by placing them at the center of your action plan. By doing so, you will be well positioned to take advantage of the opportunities the future will surely provide.

 

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 Whatley
Sales Manager- Jon Black & Chuck Pardue



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 & Jey Yates

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 & 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, & 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 Managers- Steve Melton & 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