New South Construction Supply eNews - October 2007

Dear Friends,

Now that autumn is here, budget time is also here. If you do a budget for your company, you will want to read this issue of our newsletter closely. We are in the middle of finalizing our budget for next year, so I have been gathering a lot of information about what the “experts” say will happen in the construction industry next year.

If you don’t want to read all of the attachments, the executive summary is this:

Most forecasters predict that residential construction will not improve until late 2008. Commercial construction is forecasted to be up in almost every major segment and market for all of 2008. Now, the Fed could throw a monkey wrench in the works by jacking up interest rates, but at this time that appears unlikely. Inflation in construction products is expected to grow in 2008 as petroleum prices continue to increase, due to continued strong demand for all types of construction products in Asia.

For more information on the economy, construction products inflation, and the latest PPI charts and tables, click on the following links: PPI tables, PPI charts, Construction Product Inflation, 2008 economic outlook.

At present, below is the outlook for pricing on the major products we sell:

Domestic producers of wire rod increased prices unexpectedly the week of October 7th. Wire rod’s primary use for the construction industry is in the manufacture of welded wire mesh and masonry reinforcing. The increase was due to another increase in the price of scrap steel- - $30.00 per ton in the past 60 days, and the limited amount of import wire rod available in the U.S. The limited supply of import wire rod is mostly due to the building boom in China and other Asian countries which are purchasing most of the production of foreign wire rod producers. It is also rumored that domestic rod manufacturers may try to raise prices again in late November or early December.

Because of the increased cost of wire rod, welded wire mesh manufacturers have announced price increases effective almost immediately. The increases range between 6 to 10% depending on the market. If you have upcoming jobs that require welded wire mesh, we recommend you purchase this now, as prices may increase again in the next 45 to 60 days.

Masonry reinforcing manufacturers are trying to hold the line on prices due to weak demand. Most intend to increase prices in late December, but may be forced to increase prices sooner if another rod increase goes into effect in November or December. None have indicated how much they intend to increase their prices. As with welded wire mesh, if you have upcoming projects that require masonry reinforcing, you should consider purchasing now to avoid any increase.

Although the price of petroleum continues to increase, polyethylene and vapor barrier manufacturers are holding the line on prices. This is despite another increase in their cost of resin that took effect the first of October. Simply stated, the weak market demand will not allow increases at this time. If demand increases, expect poly prices, as well as other vapor barriers to increase.

Historically, most construction chemical manufacturers increase prices the first quarter of each year. With the cost of petroleum-based raw materials increasing due to the rising price of petroleum, several construction chemical manufacturers have indicated they intend to raise prices in January. Although none have officially announced an increase, it’s a pretty safe bet that most will increase prices in January. Keep this in mind as you bid your projects.

Rebar prices continue to hold at the same level as they have for the past few months. Although the price of scrap steel has increased, and with a limited supply of import available in the U.S., rebar mills continue to hold the line on prices at this time. Weak demand in the residential market is the primary reason prices have not risen. If another increase in the price of scrap takes place in November, it’s expected that Nucor will increase prices the first of December. The increase could be as much as 8 to 10% depending on the cost of scrap steel. If Nucor increases prices, most other domestic rebar manufacturers will probably follow Nucor’s lead.

The good news is that copper and stainless steel thru wall flashing prices have stabilized over the past few weeks. Unless the world wide price of copper and stainless steel increases, expect prices for copper and stainless steel thru wall flashings to remain at or near current levels.

We hope the above information is helpful to you as you prepare your current bids and as you finalize your 2008 budget.

Shifting topics to something more fun, we conducted a survey of the people who participated in our inaugural New South Charity Classic golf events benefitting the Make-A-Wish Foundation, and we were happy to see that 100% of the people who played in this year’s event intend to play next year. The most prevailing comments made were that people enjoyed the event while also helping a good cause. However, next year we are going to do the events about one month apart to give our suppliers a break, as many of them played in both events, as well as our staff. At this point, we are planning on holding the North Carolina event in mid September and the South Carolina event in mid October. Another change is that we are going to start the tournaments at 10:30 a.m. instead of noon so that the banquet and auction / raffle will be over by 6:00 p.m. instead of 8:00 or 9:00 p.m. like they were this year. Look for more information about the 2008 tournaments in the near future.

This month we’re featuring the following suppliers:

Engineered Plastics Inc. EPI is the manufacturer of the industry leading detectable warning device, Armor Tile. Armor Tile is the undisputed leader in detectable warning systems (truncated domes), and they have the widest variety and best quality of any manufacturer in the business. Below is more information about their product line.

MM Systems is one of the leading providers of expansion joint covers. Not only do they make a wide variety of expansion joint covers, including fireproof covers, but they have a wide variety of options in terms of colors, styles, and finishes. For more information on MM Systems, or to obtain a price quotation, simply contact your local New South branch.

• BASF Construction Chemicals makes Sonneborn, MBT Protection and Repair Products, Thoro, Thoroc, Hydrozo, Watson-Bowman, and many other premier construction industry products. To learn more about Hydrozo and MBT Protection and Repair products see the below information.


Our management story this month is entitled “How to Attract the Best People.” As great people are the difference between good and great companies, this article should be of great interest.

In closing, all of us here hope that the fourth quarter is a good one for you, and we once again thank you for your business.

Sincerely,

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


This month we are featuring the following suppliers:

 

TRUNCATED DOMES –THE HOTTEST CURB RAMP SUBJECT

Does your maintenance budget
need to weather storms?







We are proud of the service, credibility and integrity we have brought to this industry.

Supplying detectable warning systems for curb ramps and transit platforms nationwide.

•The Industry Benchmark
•Lowest Lifecycle Cost

For technical specifications or to arrange for a product demonstration please visit www.armor-tile.com/response

Setting the standard for durability & detectability in tactile systems.
1-800-682-2525 | www.armor-tile.com


MM Systems offers an expansion joint for every condition. Let MM take care of your expansion joint checklist.

_ interior / exterior applications
_ wide range of joint openings
_ thermal / seismic movement
_ pedestrian / vehicular traffic
_ ADA compliant
_ fire rating / life safety
_ water resistant / waterproof
_ no bump, flush solutions
_ corner conditions
_ narrow sightlines
_ various finishes / colors

MM Systems has over 40 years experience in the market, www.mmystemscorp.com. MM Systems is locally represented by Styro Systems of the Carolinas. Just ask your NSS sales representative for assistance.


BASF Construction Chemicals – Building Systems

As part of BASF and BASF Construction Chemicals, BASF Building Systems is much more than the union of the construction industry’s market-leading brands. It’s a partnership focused on trust, reliability and commitment to making products and systems better.

BASF Building Systems offers more than you ever thought possible – intelligent solutions for every building challenge, innovative products and tailored services, unparalleled access to far-reaching expertise, resources, innovation... and the ability to bring it all directly to you, our customer.

With our eyes on the future, we will be continuously working to develop technologies and methodologies to dramatically improve the properties of products, services, the built and natural environments and the success of our customers. Log on to learn more at www.buildingsystems.BASF.com

Hydrozo® Products
Hydrozo® clear sealers protect commercial buildings from water and chloride intrusion, airborne contaminants, and general wear and tear – but do not alter the original appearance. Whether used on new construction or the rehabilitation of older structures, Hydrozo products enhance the value of buildings and add years to their lifetime. A wide range of sealers is available for various applications to commercial, municipal, and industrial buildings, as well as stadiums, bridge decks, parking structures, highways, and other reinforced concrete structures.

MBT Protection and Repair Products
MBT Protection and Repair solutions provide the commercial construction industry with a wide range of products for preserving, repairing, and restoring concrete in demanding environments. Our products include specialty concrete repair mortars, epoxy and polyurethane injection resins, cement-based and epoxy grouts, dry-shake surface hardeners, cementitious coatings, curing compounds, sealers, architectural coatings, epoxy floor coatings, and more.


Attract the best people
by John Strelecky

Smart leaders don’t recruit the best people; they attract them. Why do they do it? They do it because it makes their lives easier, and their companies more successful. How do they do it? They have a clearly defined corporate Purpose For Existing (PFE), they tell the world about it; they live it; and the best people come to them.

The success of this method is based on two principles. The first is a very basic tenant of life on the planet: Like attracts like. It is the reason zebras run together on the African plains, similar looking fish travel in schools, and in any given crowd of people, each sub-group is composed of individuals with similar characteristics. A leader who has defined their company’s PFE is saying in essence: "I am a zebra. If you are a zebra, come out here on the plains and join me."

The second principle is that the best and the brightest in the workforce seek more than just a paycheck from their job, they seek fulfillment of their own personal Purpose For Existing (PFE). On average, employees spend 70 percent of their waking hours Monday through Friday either at work, getting to work, or preparing for work. For the most part, their work is their life. The best and the brightest know this and understand this. They want to make sure that while spending 70 percent of their life at work, they are in some way fulfilling their own PFE. They seek out companies where the organization’s PFE supports their own.

The concept of attracting vs. recruiting might not seem like an important topic in an era of economic uncertainty where companies are laying people off, or putting freezes on hiring. The U.S. has been in that situation now for almost the last three years.

However, data from the Bureau of Labor Statistics, and independent studies from professional staffing and Human Resource Management firms indicate a change is coming. Projections are for labor shortages starting this year in certain industries and increasing to approximately 6 million skilled workers in 2012.

The repercussions of such a shortage won’t just be felt in lost opportunity costs as companies can’t get the necessary qualified talent to serve their customers. More painful and directly impactful will be the costs felt as employers try to fill open positions. According to Human Resource studies, total costs to replace a skilled managerial level employee can total as much as 150 percent of the departing person’s salary by the time recruiting, training and productivity costs due to losses with current customers are factored in.

With studies showing 55 percent of salaried people planning on moving as jobs become available, this cost could be substantial for individual companies.

In light of this future, the opportunity to attract vs. recruit the best people, as well as the issue of maintaining the right employees, both become more relevant.

Leaders interested in creating an environment where they attract instead of recruit the best candidates should follow three key steps:

• clarify your PFE;
• tell the world what your PFE is; and,
• fulfill your PFE.

Clarify your PFE

What is your organization's PFE? Why was the organization formed? What unique function does it serve? Many organizations already have their PFE as a deeply imbedded part of their culture, and often it exists in some written form. It may seem obvious to you as a leader, or to your employees. Now is the time to either turn it into the written word if it isn’t yet, or make sure it is clearly articulated if it already exists in writing.

An example of a PFE that is clear, influential and to the point is that of Merck & Co. Inc. Merck is a global pharmaceutical products and services company that focuses heavily on research. Their PFE is stated in the following way: “Our business is preserving and improving human life.” They back this up with the following sub-statement. “All of our actions must be measured by our success in achieving this goal.”

Tell the world what your PFE is

When you have a clearly articulated version of your PFE, let the world know what it is. Put it on all your marketing materials, internal documents, Web sites and communications with buyers, suppliers, customers, campus placement offices and partners.

Make sure that when people hear the name of your company, they automatically know what your PFE is. It is through these efforts that you are saying to the world: “I am a zebra. If you too are a zebra, come join me."

Your PFE will have an impact on the people who interact with you. Those who have a personal PFE that is similar to your organization’s and who in fact can fulfill their PFE by helping your organization fulfill its PFE, will now be attracted to you. Think in terms of Merck. How attracted do you think someone is to Merck if their personal PFE is to improve human life?

Fulfill your PFE

Ralph Waldo Emerson said: “What you do speaks so loudly that I cannot hear what you are saying.”
This is something for organizations to remember. To succeed in attracting, not recruiting the best people, an organization must live up to the PFE that it identifies and promotes to the world.

Exhibiting actions incongruent with that PFE will quickly damage the company’s credibility and decrease their attraction. However, for organizations that live the PFE they create, every action they do makes the attraction that much stronger for potential candidates.

Organizations that follow these three steps will find themselves approaching hiring in an entirely new way. Creating awareness about the organization’s PFE and then interviewing people attracted to the company will become the norm, not recruiting.

For organizations that are doing the three steps very successfully, having to work hard to recruit someone should be an indication that they are trying to get the wrong person. If someone clearly understands your organization’s PFE and your organization has done an effective job of fulfilling its PFE, but the person still needs to be convinced, then you don’t want them in your organization.

Make your life easier, make your company more successful. Don’t recruit the best people, attract them.



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- 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