New South Construction Supply eNews - July 2007

Dear Friends:

The year is more than halfway over, and those in the construction field who specialize in commercial construction are experiencing a good year, and those who are mainly focused on residential construction are experiencing a significant downturn. The downturn in residential construction is longer and deeper than most “experts” predicted. I am sure this is not news to most of you.

The only bright spot due to the construction downturn is in the area of material pricing inflation. The rampant inflation over the past two to three years has abated considerably. There are some exceptions to that, but by and large inflation has dampened quite a bit. For more information about pricing trends for some of the most popular products we sell, please see below:

Basically all steel products, with the exception of concrete reinforcing mesh have seen no movement since last month. Due to weak demand, wire mesh manufacturers rescinded their increase at the end of May and prices are at April levels. They have done this to try to secure orders to avoid temporary shut downs. With the price of wire rod still moving upward, expect wire mesh manufacturers to increase prices again when demand increases.

Rebar prices remain at the same levels as they have over past two months with little movement. It appears that most of the stockpiles of rebar purchased prior to the April increase have diminished. July demand has been weak, and therefore prices have remained the same. Expect rebar prices to remain at or about current levels for the next 30 to 60 days, unless demand increases or the worldwide price of scrap steel moves upward.

The June increase for masonry reinforcing and masonry ties appears to be holding despite weak nationwide demand. The increased cost for wire rod and galvanizing have forced manufacturers to hold the line on prices. There are no indications of further increases at this time, so prices should remain at current levels for the next 60 days.

The price of copper and stainless steel continues to spiral upward and is expected to continue. Copper and stainless steel thru wall flashing manufacturers will only hold their quotes for 30 days. If you have any copper or stainless steel thru wall flashings to purchase for upcoming jobs, we recommend you purchase now, as prices will continue to rise.

Several major manufacturers of construction chemicals have sent notices that due to the rising cost of solvents and transportation costs, that they may be forced to raise prices in the near future. None have said what percentage the increases will be. Please keep this in mind when bidding new projects.

Polyethylene prices continue to rise due to the increased costs of resins and transportation. Prices have increased approximately 3% in the past 30 days and further increases are expected as the price of petroleum continues to rise.

Below are also links to the latest PPI tables as well as some charts showing how prices have increased on key products. These may be helpful when meeting with project owners so you can show them the effect of inflation on building products.

PPI Tables | PPI Charts for the month (MS PowerPoint file)

Also following is a link to the latest forecast for construction in the Carolinas. This is a slide show consisting of 33 slides so there’s a lot of detail involved. I encourage you to look at it if you’re doing a budget for 2008 in the next few months.

View the forecast for the Carolinas here (MS PowerPoint File)

We’ve added a photo gallery to our website so you can see photos from seminars at our branches, photos from Customer Appreciation Days, and other New South events. Click here to go to the photo gallery.

Sign-ups for our charity golf tournaments benefiting the Make-A-Wish Foundation are going well. Quite a few customers have inquired about putting together their own foursomes so they can play with friends and/or suppliers. We have also had some customers inquire about bringing a spouse/guest just for the cocktail hour and banquet. I had not thought about that, but it is a good suggestion, so if you would like to bring someone just for cocktails and dinner, the cost for that is $50. Our registration website has been amended to reflect that option.

As the $1,000, 000 shootout and the finals of the putting/chipping contest will be during the cocktail hour that should make for a fun and amusing time. The banquet will include not only a first-class dinner but a live comedy show, a live auction, and the raffle drawings. Please don’t wait to register if you want to play, as we are limited to 112 players in Columbia, and 128 in Greensboro due to restrictions imposed upon us by each golf course. I would hate for you to wait until August to register and then find that the tournament is sold out.

Our brand new branch in Hardeeville, SC is now open. We have a 5,500 SF showroom with a full array of tools, hardware, safety equipment and most everything else you need for the jobsite. No more standing in line at a big box! See below for some pictures of this branch.

We also took delivery this month of seven brand spanking new tandem axle Freightliner trucks with mounted forklifts. Now all of our branches have the ability to deliver materials almost anywhere you want them on the jobsite. See below for pictures of one of the new trucks.

Our featured suppliers this month are listed below:

  • Euclid Chemical is one of the oldest and most specified manufacturers of construction chemicals in the construction industry and we’re proud to announce that we now are authorized distributors for them. See below for more information and remember to let us quote you the next time you need any of their products.
  • Wire-Bond is one of the largest manufacturers of masonry reinforcement in the US. They are also known for being an innovator and constantly coming up with new products that will save you time and/or money. For information on one of their latest products, please see the following ad.
  • Dow Chemical is best known for their Styrofoam ® brand insulation. Generally, it has been used for roof insulation and wall sheathing, but it has most recently been approved instead of DensGlass for commercial projects as well. Using Dow Styrofoam in this application can save you significant time, money, and best of all - it does not get moldy; therefore, you will not be involved in any mold lawsuits if you use it. For more specifics on this application, please see the ad below.

Our management article this month is entitled, “The Seven Rules of Negotiations.” As being a good negotiator is critical to success in the construction industry, I know that all of you will be interested in reading this article.

In closing, as always, thank you for your business, and don’t hesitate to give me feedback on how we can do a better job of serving you.

Sincerely,

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



This month we are featuring the following suppliers:

 

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.

 



Wire-bond Introduces:

Sure-Tie system

Sure-Tie® installs quickly and easily on steel stud/brick veneer applications. 1” #12-24 tapping thread pierces ½” and 5/8” wallboard and various sizes of insulation. Special chuck adaptor isi used for installation. Climaseal coating provides superior corrosion resistance. Triangular adjustable ties are 3/16” in diameter and are available in hot dipped and stainless steel finishes.

Sure-Tie and all other WIRE-BOND products are available at all New South locations.


Jumper Carter Sease Architects, P.A., Columbia, Specified Dow STYROFOAM CAVITYMATE SC on the exterior of the steel stud walls on the Lexington Medical Center’s new five story MOB project on the main campus. The exterior walls consists of interior gypsum, steel studs (no batts) 2” CAVITYMATE SC extruded polystyrene insulation; followed by precast panels and brick veneer. The CAVITYMATE SC insulates the entire exterior of the building, and solves the moisture and thermal bridging problems associated with using fiberglass batts between the studs.

Why insulate on the exterior of the steel studs?

  1. Solves the thermal bridging of studs when fiberglass batts are used.
  2. Solves moisture and dew point problems associated with batts that can lead to mold and mildew.
  3. Provides a more energy efficient structure. By using 2” of CAVITYMATE SC, the exterior wall has a 30% more effective R-Value vs. a wall with R-19 batts.
  4. STYROFOAM CAVITYMATE SC gets the building enclosed faster than using gypsum board.
  5. With no fiberglass batts in the walls, there is one less inspection needed.
  6. The system saves the owner money vs. the fiberglass and gypsum wall system.
  7. Less labor with CAVITYMATE SC.
  8. The CAVITYMATE serves as a thermal barrier, air barrier, and vapor barrier.
 

Architect: Jumper Carter Sease Architects, P.A., Columbia.
Distributor: New South Construction Supply, LLC, Columbia
General Contractor: McCrory Construction Company, Columbia.
Installation Contractor: Alpha Insulation, Charlotte

Accessory items: Pos-I-Ties by Heckmann Corp (brick ties) and Dow Butyl tape for the seams.

For more information, contact your nearest New South Construction Supply branch.


Seven rules of negotiations
by Jack W. Kaine

Most people have the impression that a negotiation is a competition where one side wins and the other side loses. Do you really want anyone on your staff, your suppliers or your customers to feel they have lost? Any negotiation that only favors one party ultimately favors none of the parties. Good salespeople know how to build in value so that everyone wins.

A second common misperception is that negotiation is something that is done to reach agreement. That is only part of the story. A successful negotiation produces not only an agreement, but an agreement that will work for all the parties. Getting an agreement is the easy part. Keeping the agreement is the hard part. If one party feels beaten, that party will not want to keep the agreement and will spend a great deal of energy to get out of fulfilling the terms imposed by the agreement.

Negotiation is the process for addressing and solving problems. Problems and conflicts must be negotiated as soon as they arise, because they do not age gracefully. This is particularly true where money is concerned. Conflict is inevitable. It can be positive, negative, or irrelevant; it is how the conflict or problems are handled that makes the difference.

Here, then, are seven rules to guide your negotiations.

Rule 1: Avoid escalating the conflict

The person who speaks first sets the tone for the negotiation, and it is much easier to set a positive tone at the start of the negotiation than to overcome a bad start. A good negotiation requires that the parties share information to change the relationship, and when people are angry or distrustful of one another they do not share information. If they do, anything they share will be designed to deceive or mislead the other party. Don’t worry about getting in the last word. Work hard to get in the first word. The one part of a negotiation you want to have scripted and rehearsed to the point of spontaneity are your opening remarks. How you position the negotiation affects the outcome more than any single factor.

Skilled negotiators know how to use aggressive behavior. Good negotiators avoid aggression escalation in a negotiation. A negotiation is not a defend/attack spiral. Skilled negotiators, if they use aggressive behavior in a negotiation, will hit the other party as hard as they can the first time. They do not piecemeal their aggressive behavior. A bankruptcy attorney I work with said it best: “You can make love and war at the same time. Some people will not make love until they know you are willing to make war.” There are people who will not negotiate in good faith until they know they cannot push you around. However, as soon as the other party changes (starts to cooperate) the effective negotiator quickly changes and starts to cooperate as well.

Rule 2: Know when to walk

The world is full of people who feel the first thing they must do in a negotiation is see how far they can push the other party. Sometimes you have to walk away from a bad deal to make a good deal. If bullies get away with it, they will continue to be bullies. Difficult people are difficult because they have been rewarded for being difficult. Stop wishing they were different; they are not going to change. However, if you change how you negotiate with them, they have to change how they negotiate with you.

Rule 3: Agreements are built on agreement

The third rule of skilled negotiation is to be a careful, clear communicator. The truth is, the better the negotiator, the easier he or she is to understand.

Expert negotiators label their communication. Labeling signals a change of direction, very much like using turn signals when driving a car, and makes it easy for anyone to follow and understand a conversation. For example, before making a point, the expert negotiator says “I would like to make a point.” He then makes his point. He says, “May I ask a question?” and then asks a question. If he has a concern, he will say, “I have a concern,” and then states it.

Why do expert negotiators label their communications? First, it is clearer. Second, it creates receptivity. If the negotiator says, “May I ask a question?” and the other person says “No,” it sounds rude. By asking for permission, the negotiator creates a more receptive environment.

There is one exception: Good negotiators do not label their disagreements. They do not say, “I disagree with you because...” When stated in that form, the disagreement comes first and the reasons for it second. What is being said is, “Here I come. Get ready to disagree with me in return.” The other person then starts to listen for points to argue about rather than for reason to change his or her mind.
Another negotiating axiom is: No one has ever won an argument. Someone convinced against their will is still of the same opinion. An argument creates two people who actively resist one another.
One way in which a skilled negotiator handles disagreement is by asking questions about the points of disagreement. These questions weaken the other person’s position by pinpointing flaws in their argument. Once the position has been weakened, the skilled negotiator will make a proposal that addresses these concerns. Note the proposal is put on the table not in opposition to the other party’s proposal but as a solution to the mutually identified problems.

The second way to disagree is to say, “I have this point I would like to discuss with you. It is...and as a result, I disagree.” In this case, reason comes first, then disagreement. This is much more effective than disagreeing first.

Negotiations are full of paradoxes. One paradox is, if I agree with you, you tend to like me. However, if I am always disagreeing with you, you tend to dislike me. The question becomes; “How can I disagree with you when you are wrong, and still have you like me?”

Practice the 4Fs. The four Fs are Feel, Felt, Found, and Facts. When someone is wrong say to them: “A lot of people feel like you do right now. In fact, I felt that way myself until I found out the following” (then share the information you found that caused you to change your mind). This is a nice way for someone to change his or her mind without losing face.

Rule 4: Lead by questioning

You control a negotiation by questions, not by talking. The person who asks the most questions controls the content and direction of the negotiation. Questions are valuable because questions produce information; questions give the negotiator control; and questions give the negotiator time to think and deprive the other person of thinking time. (Most people cannot answer a question and think about something else at the same time.)

It is also smart to ask questions to which you already know the answers. First, it enables the questioner to assess the honesty of the person answering. If the answers are not honest, the questioner should be cautious. Second, asking questions may make it appear the questioner isn’t well-informed. People will often share much more information with someone they feel knows less than they do. It’s amazing how much people will tell you about their businesses if they feel they are smarter than you are. Peter Falk used this technique masterfully in his role as the slow-thinking detective Columbo.

Questions offer another advantage; they allow you to reframe an issue. Several years ago I got a call from an advertising agency executive who was about to lose one of his large accounts and wanted to know if I could save the account for him. Instead, I reframed his question. I asked what would happen if he did nothing. He said, “We’d lose the account, and I would have to lay off some very good people.” I replied that I couldn’t leave him in a worse position than that, and he decided to use my services.

People want guarantees. Rather than giving them one, a good technique is to get them to confront their most dreaded fear. They then will often sell themselves on the change you want. When James Baker was negotiating the formalities for the 1988 presidential television debates, the Dukakis staff wanted their candidate to stand on a box so he would appear taller and more presidential to viewers. Baker asked if they planned to take a box with them for Dukakis to stand on when he negotiated with Gorbachev. That question took the issue off the agenda.

The same technique can be used in personal situations. Several years ago, I was about to buy a new BMW. My wife asked a question that canceled the sale. She said, “Do you really need that much car to drive to and from the airport?” I didn’t buy the car.

Rule 5: Avoid making counter proposals

The fifth lesson of negotiation is to avoid bargaining over positions. This also means to avoid making counterproposals. Most negotiators put their proposals on the table too soon, opposing the other party’s proposal.

When the other negotiator has advanced a proposal or taken an opposite position, that person is in the least receptive frame of mind. If you want someone to see things your way, you must first see things their way. Don’t offer a counterproposal. Instead, ask questions about the proposal. How would this work? What does this mean? How would this affect...? And so forth. When the proposal’s shortcomings have been clearly identified, make suggestions to resolve the problems. Skilled negotiators advance their proposals, not in opposition to the other side’s proposal, but as solutions to problems mutually identified in discussion.

This one technique helps establish an atmosphere of trust and cooperation. Good negotiators do not think of themselves as negotiators but as problem solvers.

Rule 6: Focus on your strongest positions

Raising weaker points, instead of focusing on the most persuasive point, tends to dilute the strength of your position. In school, we were taught that the more reasons we advance to a position, the stronger our argument. However, one cast-iron reason that cannot be challenged will stand up to scrutiny. When it is combined with two weak reasons, the weaker reasons will be challenged.

When the other party offers a reason, the skilled negotiator will ask, somewhat skeptically, “Is that your only reason?” The person is tempted to say, “No, no...” and offer a half-dozen more supporting reasons. When the negotiator hears one reason that sounds weak, he or she will say, “Now, just a minute, let’s examine that last thing you said.” People use facts, reasons, information and logic to manipulate us in a negotiation. We undo our own strong cases because we talk too much in a negotiation. The more you talk in support of your position in a negotiation, the weaker it becomes.

Good negotiators will summarize their findings frequently in a negotiation to make sure each party clearly understands the agreement. How many times have you and the other party gotten down to the final stages in a negotiation thinking you were in sync, only to find out their understanding was entirely different from yours? Testing understanding is a good way to avoid this problem. Summarizing refreshes what has been covered so you can keep moving toward agreement. Good negotiators know that any agreement that will not stand up to close scrutiny will not last, but will be the source of further conflict and negotiation.

Rule 7: Negotiate an agreement that is workable

Smart negotiators know an agreement that won’t stand up to close examination will not last and will cause further conflict. Good negotiators know it is not in their best interest to slip anything past the other party. In fact, expert negotiators who feel the other party has agreed to something that is not in the other party’s best interest will call it to their attention. This builds trust and puts an obligation on the other party to make the next concession and help you out. That brings us to the seventh lesson and a point made earlier — the objective of a negotiation is not only an agreement, but any agreement that will work. Most people do less testing at the moment of agreement than at any other time. Yet an agreement that doesn’t stand up to close scrutiny at the time of agreement will not be strong enough to stand up to the test of real life.

One of the best questions you can ask after the agreement has been reached is, “If we are going to have problems with this agreement, what do you think they will be?” At the moment of agreement, the trust level should be quite high if you have had a good negotiation, since all parties want the agreement to work. It is at this point that people will bring out their hidden agendas.

When you hear their concerns, don’t argue. Agree that their concerns are valid and ask what other concerns they may have. Then talk about what you see as potential problems. Finally, ask this question: “Now, if this does occur, how are we going to handle it?” What makes this concept so powerful is that any solution you work out before a problem occurs will be fairer to all parties concerned than a system you work out after the problem. Good negotiators are hard on problems and soft on people.
Rarely will you get 100 percent of what you ask for in a negotiation. However, each negotiation should end with a positive solution for both sides. There is always a better deal for all parties involved in a negotiation than is first apparent at the start.


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 and Walt Bell

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- Steve Melton

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