New South Construction Supply eNews - June 2007

Dear Friends,

I hope this month’s newsletter finds you busier than ever and with a good backlog for the rest of the year. We’ve seen a slowdown in some markets, mainly in the resort areas, and centered in the areas of retirement housing and beach condos. The residential housing slump appears to have spilled over into some parts of commercial construction, but most parts of the commercial sector continue to be strong. Most housing analysts are saying that the housing correction will not end until early to mid 2008. There was too much overbuilding done to satisfy the demand created by real estate “flippers,” and mortgage lenders were overly aggressive, especially in the area of sub-prime loans. It will take some time for this excess inventory to be sold off before housing will recover. Last week it was announced that single family housing starts are now annualized at 1.2 million versus 1.8 million single family starts just a year ago. That’s a rather steep decline, and it will take some time for the recovery to begin.

This slump in residential housing is easing the inflation in most building products as many of the products we sell are used in both residential and commercial construction. As residential construction is off so significantly, the demand for certain products has eased, and some price increases have not stuck or are less than what was originally planned.

As announced in last month’s newsletter, masonry reinforcing and tie manufacturers all increased prices by 5% the first of June. Increases in the cost of wire rod and galvanizing continue to drive the increased costs for these items this year. With the June price increase, this makes the third increase for masonry reinforcing and ties this year. There are no other increases planned at this time.

Wire mesh manufacturers increased prices 5 to 8% at the end of May. Although another increase in the cost of wire rod is expected in July, wire mesh manufacturers have not announced an increase for July. This is due to overall nationwide demand being weak. It’s expected that wire mesh prices will remain at current levels through July.

Rebar prices have increased less than the expected 5 to 6% announced in the June newsletter. This, as with wire mesh, is due to weak nationwide demand. Domestic rebar manufacturers have not increased prices since April, although their transportation and manufacturing costs have risen. As stockpiles continue to diminish, expect rebar to increase moderately in July.

Copper and stainless steel thru wall flashing prices continue to rise, as the worldwide price for these two metals continues to increase. With their costs for copper and stainless steel continuing to increase, flashing manufacturers are only holding their quotes for 30 days. Although no manufacturers have announced an increase to date, expect an increase of approximately 10% by the first part of July.

Polyethylene resin producers increased resin prices effective June 18th. This increase in the cost of resin will force polyethylene manufacturers to raise prices again by July 1st. Although polyethylene manufacturers would like a 10% increase, an increase of 5% is expected. This is due to weak nationwide demand in the residential market.

Lumber prices have bottomed out and are up slightly from their low point. Plywood and OSB is up a little from the 4th quarter.

Gypsum board is still at record highs but prices have been stable so far this year and aren’t expected to change much.

If you want to read the 6.18.07 ENR cover story on material costs and projections for the future, click here. Also, the current Producer Price Index (PPI) tables are available by clicking on this link. These may be helpful to you when preparing quotes or when you need to justify price increases you are passing along to your customers.

Also, if you’re interested in sitting in on any of our webinars (web-based product training), the latest schedule can be viewed by clicking on this link.

As mentioned in previous newsletters, the New South Charity Classic (our golf tournaments to benefit the Make-A-Wish Foundation) continue to progress well in the planning stages. We have over 60 corporate sponsors lined up so far with more sponsors signing up every day. The sponsorship money, on top of our contribution, will ensure that we’re able to grant significant “wishes” for terminally ill children.

If you want to sign up for the tournaments (the Greensboro tournament is on September 7 at the Grandover Resort and the Columbia tournament is on September 17 at the Woodlands Golf & Country Club). The registration website is now up and running. The cost to play in each tournament is $195 for one player or $600 for a foursome registering at the same time.

As I have mentioned in previously newsletters, these tournaments will be the best golf tournaments in the construction industry in the Carolinas. From a million dollar shootout for the winning foursome, a brand new Ford King Ranch pick-up truck as a hole-in-one prize at each event, a cruise for two to the winner of the putting contest, a grand prize of a vacation to Puerto Vallarta, Mexico for the grand prize raffle winner, great food and copious amounts of beverages. If you don’t think this is the best golf tournament you have played in at any construction industry event, just let me know afterwards, and I will refund your fee. How is that for a guarantee? Plus, we cannot think of a better cause than the Make-A-Wish Foundation. Can you?

We are also excited to announce that we have relocated our Greenville, SC, branch to a facility over twice as large as our previous facility on White Horse Road in Greenville. Our new location is 9 North King’s Road in Greenville. This is a 23,000 square foot facility at the intersection of I-85 and Mauldin Road. We bought this facility about three months ago and had it remodeled to include a large, well-stocked showroom for your shopping convenience. Below is a picture of the new branch.

We also have completed construction on a brand new facility in Hardeeville, SC. Hardeeville is one of the fastest-growing towns in the South and is centrally located to service Hilton Head, Beaufort, Savannah, and Coastal Georgia. This new branch, as well as our relocated Greenville branch, now have on-site rebar fabrication capabilities. If you need fabricated rebar for any of your jobs, please let us quote you. The new Hardeeville facility opens for business on July 2.

This month we are profiling the following suppliers:

QC Construction Products is one of the leading providers of decorative concrete products and accessories in the construction industry today. On top of their outstanding product line of stains, sealers, and other decorative concrete products, they also have recently unveiled the hottest product in the decorative concrete industry today , Newlook. For more information about this, please see below or call your local New South branch.

Simpson Strong Tie is the undisputed market leader in both anchors and connectors. For more specifics about their MAB product line, take a look at their ad below and give us a call for pricing.

TAMMS Industries is one of the oldest and most respected companies in construction chemicals. In addition to a full line of cures, coatings, and grouts, they have an outstanding line of concrete repair products and water repellants . Their products are in stock at each of our branches. Let us quote you the next time you need any of the products they make.

This month’s management article is entitled Selling to the Four Temperament Styles. Just as a good pitcher does not throw the same pitch to every batter, you need to tailor your presentation to each of the different temperament styles you will find in business. I hope this article will help you close more deals!

In closing, thanks as always for your business, and we look forward to seeing you at our golf tournaments in September, if not sooner.

Sincerely,

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

 

This month we are featuring the following suppliers:

 

Newlook by QC is a non-acrylic, non-acid, VOC free water-based concrete stain.

Newlook by QC is available in Solid Color Stain (to completely cover existing concrete) or Color Enhancer (for depth and faux finishing) to meet the needs of any project.

Newlook by QC is a revolutionary water-based stain that enhances existing concrete with completely non-hazardous materials. Newlook by QC does not react with the concrete, but penetrates the surface without changing concrete texture to ensure consistent, controllable color, every time. Available in 80 standard colors.

Contact your nearest New South branch for more information about this great new product.

Tamms Industries

Use the power of our brands!

HEY'DI K-11, a cement based, crystalline waterproofing system offers the best in waterproofing technology. Applied above or below grade, inside or out, Hey'di K-11 protects against hydrostatic water pressure using a unique proprietary crystalline structure which blocks the egress of water.

 

SPEED CRETE RED LINE is the only answer when you need it done right, and right now! Initial set in 8 – 10 minutes with final set in 20 minutes…inside or out, vertical, horizontal, or overhead, SPEEDCRETE RED LINE patches it all.

These and all Tamms products are available at your nearest New South branch.

Simpson Strong Tie Fasteners

Need more time? Use the MAS.

  • The MAS can be used in place of the prescriptive anchor bolt.

  • The MAS can be installed over the sill plate for   easy attachment and no drilling into the sill plate saving valuable dollars on installed costs.

  • The MAS can be installed in line with a stud member where a stud is attached to the mudsill.

  •  Simpson Strong-Tie offers 3 additional corrosion protection coatings for pressure treated lumber.
 
  • Alternate installation available for wall panel applications.

Selling to the four temperament styles

by John Boe
Have you ever wondered why you seem to hit it off right away with some customers, while with others it's more like oil and water? That's because we respond intuitively to the natural chemistry, or lack there of, between temperament styles.

Our temperament style not only determines our behavioral traits, body language patterns and buying style, but it also influences our compatibility with other people.

Today we have access to innovative tools such as the Internet, cell phones, faxes and voice mail all designed to enhance our communications and support us in selling more effectively.

Nevertheless, even with all of these technological tools at our disposal, the alarming number of failed relationships, dissatisfied employees and lost sales all reflect the fact that none of us are as effective at understanding others as we would like to believe.

For example, what about that sale you thought you had made, but for some unknown reason your prospect changed their mind and didn't buy, or at least they didn't buy from you. Chances are you lost that sale because of your inability to recognize and adjust to your prospect's preferred buying style. This temperament mismatch is often referred to as a "personality conflict."

Research in the field of psychology tells us that we are born into one of four primary temperament styles (aggressive, expressive, passive or analytical).

A person's temperament style is determined genetically and has nothing to do with his or her astrology sign, birth order or childhood experiences. Our temperament style is also unrelated to race or gender. Each of these four primary behavioral styles requires a different approach and selling strategy.

Ancient wisdom
Hippocrates, the father of medicine, is credited with originating the basic theory of the four temperament styles 2,400 years ago. Since the days of ancient Greece there have been many temperament theories and a wide variety of evaluation instruments, but essentially they utilize the four temperament styles that Hippocrates identified.

Hippocrates observed that these four styles have a direct influence on our physiology, character traits and outlook on life.

Aggressive
The aggressive or worker style is extroverted, determined, demanding, domineering, controlling, practical, self-reliant, decisive and insensitive.

Their major weakness is anger management. Under pressure the worker will work harder and may become ill natured or explosive.

The impatient and goal-oriented worker prefers a quick, bottom-line presentation style. They expect you to be on time and well prepared. They like it when you avoid small talk and get right down to business.
Workers are generally quick to make a decision. They are focused on results and ask “what" questions. Keywords to use when presenting to a worker are results, speed and control. Give them options so you don't threaten their need for control.

Expressive
The expressive or talker style is extroverted, enthusiastic, emotional, sociable, impulsive, optimistic, persuasive and unorganized.

Their major weakness is emotional management. Under pressure the talker will talk more, shop or eat, and may display an emotional outburst.

The playful and friendly talker prefers a fast-paced and enthusiastic presentation style. Use a short warm up and allow extra time in your presentation for them to talk.

Talkers can be impulsive shoppers and are generally quick to make a decision. The keys to making a sale to a talker is to keep them focused on the presentation and allow time for them to express their feelings.

Talkers seek social acceptance and are concerned about what other people think of them. They ask "who" questions. Keywords to use when presenting to a talker are exciting, fun and enthusiastic.
Keep your presentation big picture and avoid giving them too much detail. Consider using colorful pictures, pie charts or graphs when presenting to this style.

Passive
The passive or watcher style is introverted, accommodating, harmonious, indecisive, patient, polite, uninvolved, friendly and sympathetic.

Their major weakness is self-esteem management. Under pressure the watcher will avoid conflict by sleeping-in longer.

The peaceful and stoic watcher prefers a slow, deliberate presentation style. Watchers, unlike the impatient worker, require extra time to warm up before you begin talking about business.
Watchers are very sensitive to conflict or sales pressure. They have a need to accommodate others and tend to ask "how" questions. Keywords to use when presenting to this style are family, service and harmony.

Help the watcher make a decision by giving them assurance. They dislike having to make decisions and are natural born procrastinators who love the status quo.

Analytical
The analytical or thinker style is introverted, thoughtful, organized, critical, shy detailed, pessimistic, introspective, secretive and aloof.

Their major weakness is stress management. Under pressure the thinker becomes withdrawn, depressed and worries more. They stress out and seek perfection.

The cautious thinker prefers a slow, detailed presentation style and warms up slowly. They are skeptical and typically research before they purchase. Thinkers want detailed information and they tend to ask "why" questions.

Keywords to use are logical, safety and quality. Because they are concerned about making a wrong decision and appearing incompetent, you can expect the thinker to want to take their time.

Their frugal nature will cause them to shop your numbers to make certain they are not paying too much. Because of their desire for research and their need to avoid making a mistake, thinkers often get bogged down in details. They get what is called paralysis from analysis. Close the sale with the thinker by reducing their fear of making a mistake. Give them evidence, facts, testimonials and guarantees.

While there are certainly many factors that influence the selling process, by far the most important factor is to identify your prospect's preferred buying style. Once you learn how to quickly and accurately determine your prospect's temperament style using body language, you will be able to close more sales in less time.
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 Sales and Operations- Bryan Shelton
(770) 560-6932
Operations Manager- Donald Whately
Sales Manager- Jon Black
Controller- Dave Lewis


Other Locations

2829 White Horse Road
Greenville, SC 29611
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 Mangers- 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

9156 Speedway Boulevard
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