New South Construction Supply eNews - April 2010

 

Dear Friends:

As the year progresses it looks like the construction industry is continuing to slowly improve. The economy has gotten slightly better, and the weather in our market areas has gotten significantly better, and the combination of the two has been very positive for the construction business. After a slow start to the year our business boomed in March and is continuing at the same pace in April. The only negative that persists is the continuing inflation in most of the products that we sell. For more information about commodity pricing, please see below.

Raw material costs for many construction products continued to increase in March and early April. The exception to this was the price for scrap steel. In April, for the first time in three months, scrap steel prices held at prior month’s level. Costs for all types of resins continued to rise in March and April. Raw copper prices increased by approximately 5% since mid-March and stainless steel prices moved up by10%.

For the first time in three months, domestic rebar mills will not increase prices for their May rollings. Nucor announced on April 12 that there would be no price increase for May and other rebar manufacturers followed with their own announcements stating they would not increase their prices. Although rebar mills did not increase prices for May, primarily due to scrap prices remaining neutral in April, many analyst expect scrap steel prices to increase in May, as worldwide demand for scrap steel is expected to increase. If scrap prices move upward in May, expect rebar mills to increase their prices for June rollings.

As of this date, domestic manufacturers of wire rod have made no announcements concerning prices for May shipments. Most analysts expect domestic prices for wire rod to remain at April levels in May due to scrap steel prices holding steady in April. Because it appears that wire rod prices will not increase in May, concrete reinforcing wire mesh manufacturers have indicated that there will be no price changes in May. If scrap steel prices do rise as expected in May, concrete reinforcing wire mesh manufacturers will, in all likelihood, increase prices in June.

Both Hohmann & Barnard and Wire Bond sent out notices in late March that they would increase prices in mid-April. Both increased prices by 15% for masonry reinforcing and ties. They also increased prices for copper thru-wall flashings and stainless steel products by 10%. Sandell Construction Products also announced a price increase for copper and stainless steel products that went into effect in April. Manufacturers have indicated that they will increase prices for copper and stainless steel products again in May, as the price for both raw copper and stainless steel rose in April. The other big news in the masonry industry is that Hohmann & Barnard and Dayton announced in early April that Hohmann & Barnard will acquire the assets of the Dur-O-Wal masonry division from Dayton effective as of April 23.

Polyethylene sheeting prices increased for the fourth consecutive month by 8% as resin prices continued to spiral upward. Polyethylene resin manufacturers have already announced they will increase prices again for May shipments by another $.05/lb. Due to the May resin increase, manufacturers of polyethylene sheeting have indicated they will increase prices in early to mid May by another 6 to 8%. If you have upcoming projects that require polyethylene sheeting, consider buying out your requirements now, as prices are expected to continue to increase in the coming months.

Meadow-Burke, Universal Building Products, and Dayton Superior, the three largest manufacturers of bar supports and concrete forming accessories in the US all have announced they will increase prices the first of May between 10 to 15%. All three cited their increased cost for steel over the past several months as being the reason for this increase.

Raven, Stego, and other manufacturers of under slab vapor barriers increased prices by 6% in mid April due to their increased resin costs. Resin manufacturers increased prices by approximately $.06/lb in April and have already notified their customers that there will be another resin increase in May, therefore; manufacturers of under slab vapor barriers have indicated they will increase prices again in May. You would be well served to buy out any upcoming projects you have that require under slab vapor barriers as soon as possible to avoid further price increases.

This month we are featuring the following suppliers:

  • ABT PolyDrain is one of the most recognized names in trench drains, and ABT®, Inc., is a world leader in surface drainage solutions. ABT products are now available at your nearest New South branch. Let us quote you on your next job calling for trench or surface drains.
  • BoMetals is one of the top suppliers of metal keyway, PVC waterstops, masonry control joints, and other concrete and masonry accessories in the industry. They have a wide range of products available, and all of them are available at your nearest New South branch.
  • L.M. Scofield is the undisputed leader in decorative concrete products. They have a full array of stains, stamps, sealers, and other related products. The next time you have a job that calls for decorative concrete, please think of us.

This month’s management article is entitled “How to Give Your Website a Lead Generation Checkup”. A lot of contractors have what I call “first generation websites”, which is they are simply “billboards” in cyberspace. Here are some tips on how to have your website actually generate business leads for you.

In this kind of economy we are all trying to do more with fewer employees. To that end, about 30% of our customers are now receiving their invoices from us via e-mail. The biggest advantage of this is that invoices from us can be imported directly into most software programs such as QuickBooks and Peachtree electronically. No more keying invoices into your computer system. This is a great timesaver and your accounting department will love you for doing this and you will save on the labor costs to re-key invoices. Talk about win-win.

In closing, let’s hope that the construction market continues to improve and that the last few months have been the beginning of an upward trend, not just a blip.

Best regards,

Jim

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

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This month we are featuring the following suppliers:

Surface Drainage, Containment, and Utility Ducts

PolyDrain®, the most recognized name in trench drains, and ABT®, Inc., the world leader in surface drainage solutions, provides engineered products to meet the complex requirements for wet processing, automotive facilities, industrial sites and storm water collection and filtration. PolyDrain® is manufactured with slopes ranging from .0% up to 40% sloped channels in 4 inch through 24 inch internal widths with a wide range of grates and frames to meet applications from Pedestrian to heavy Port and Airport applications. PolyDrain® is UL listed to meet NFPA codes. Located in Troutman, NC, ABT, Inc. products meet LEED credits as a local supplier along with many other LEED credit requirements.

ABT® also offers the Trench Former® system. Trench Former is a pre-engineered cast in place forming system available in 8 inch through 24 inch trench widths standard and as wide 36 inch custom. Frames and grates are available for everything f rom Pedestrian to Airport ratings along with solid covers for utility applications. Forms are available in radius or square bottoms and can be ordered in any slope needed to meet hydraulic requirements.

Visit ABT, Inc. at www.abtdrains.com


April's Management Article

Give Your Web site a Lead Generation Checkup

By  Bob  DeStefano

Is your Web site a lead generation machine? Your Web site can be your most powerful marketing tool, delivering a steady stream of new business leads and filling your sales pipeline. Unfortunately, most companies do not optimize their Web sites for lead generation —offering, instead, nothing more than passive online brochures.

 

What about your Web site? Find out your Web site's lead generation potential by giving it a lead generation checkup. Review the following 10 questions, and give yourself one point for each Yes answer. Good luck! (To print this blog, use the article tools on the right.)

 

1. Does your homepage clearly communicate what your company does and the audiences you serve?

_____ Yes _____ No

 

First impressions count, and more people will see your home page than any other page on your Web site. So, make sure your home page is as welcoming and useful as possible. It should clearly communicate your capabilities and the solutions your company provides.

 

Moreover, it should provide a timely digest of the latest and greatest information you offer deeper within the site. Most important, it should focus on your prospects' needs and serve to guide them through your Web site to find the information that can best help them.

 

2. Do you use a conversational tone in your Web site's copy?

_____ Yes _____ No

 

People think their Web site is designed to serve the thousands of people that will visit it. The reality is that one person will visit your Web site at a time.

 

Make sure you connect with each visitor by taking a friendly, conversational tone in your copy. Write as though you're sitting with them over coffee. Demonstrate that you understand the challenges they face and offer a solution.

 

3. Do you offer useful educational content in addition to product and service information?

_____ Yes _____ No

 

Don't just sell — educate. Complement your product and service information with valuable educational information that helps your customers do their jobs better. Pack your site with "how-to" articles, best-practices guides, training videos, and other educational content. They will turn your Web site into more of a resource center that your customers and prospects will trust and visit regularly.

 

4. Is your Web site optimized for top ranking in the search engines?

_____ Yes _____ No

 

Search engines such as Google are your best source for targeted, motivated leads. Your prospects are searching for you. Make it easy for them to find you by boosting your rank in the search engines. To turn your Web site into a search-engine magnet, fill your Web site's copy and coding with the keyword phrases your customers use most often. In addition, build a network of quality inbound links to your Web site from reputable and industry-relevant external Web sites.

 

5. Are you updating your Web site's content on a regular basis?

_____ Yes _____ No

 

Is your latest press release from 2008? Does your copyright notice still say 2009 or earlier? People want to do business with dynamic companies. And, to project your dynamism, you need to have a fresh and relevant Web site. Make it a point to take a critical look at your Web site at least monthly, and add or remove information to improve its value to your customers and prospects.

 

6. Does every page of your Web site include a compelling call to action?

_____ Yes _____ No

 

Don't make the mistake of relying on your Contact Us page as the sole method for prospects to take action. To turn your Web site into a lead generation machine, pepper your Web site with a variety of relevant calls to action inviting prospects to reach out and take the next step.

 

7. Do your calls to action address prospective customers at each stage of the buying cycle?

_____ Yes _____ No

 

Not everyone is ready to buy from you today. Some people are kicking tires; others may have a basic early-stage question. Look for ways to compel all prospects to reach out to you by offering tailored calls to action that appeal to prospects at each stage of the buying process. Examples include Ask the Experts forms, complimentary consultations, downloadable best-practice guides, free trials, etc.

 

8. Is your phone number prominently displayed on every page of your Web site?

_____ Yes _____ No

 

Don't forget to prominently display your phone number on every page of your Web site. In our experience, people are at least as likely if not two to three times more likely to pick up the phone when they are browsing a company's Web site. And there is no better time to be talking with a prospect because you can use your Web site as a presentation tool.

 

9. Are your online forms short, asking only for basic contact information (e.g., name, company, phone, and email address)?

_____ Yes _____ No

 

Are your online lead generation forms as long and daunting as a tax return? If so, shorten them. The more fields your forms include, the less likely prospects will be to fill them out. Ask only for basic contact information that your salespeople will need to make an intelligent follow-up. You can program those forms to identify the page the person was on, so your salesperson can prepare for the call.

 

10. Do you have a process in place to ensure your Web site inquiries receive immediate follow-up?

_____ Yes _____ No

 

How long does it take for your salespeople to follow up on online lead inquiries? If the follow-up is not immediate, you are leaving money on the table. Assign salespeople to follow up on online leads, and make sure the inquiries get to them as soon as possible. To streamline your lead-management and follow-up process, tie your Web site forms into a customer-relationship-management (CRM) system such as SalesForce.com or SugarCRM.

New South Construction Supply Locations

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

Mail: PO Box 512 Columbia, SC 29202

Sales Managers - Jon Black, Julie Ham Operations Manager - Rodny Dahlgren 803.451.7027 Product Sales: 803.791.8700 Accounting: 803.451.7045 Toll-Free: 800.849.6768 Fax: 803.791.8191 President - Jim Sobeck 864.325.6518 CFO - Kurt Herwald 864.915.5813 VP Purchasing - David Hodgin 704.358.9797 Controller & IT Manager - Jimmy Sobeck 803.451.7040

Other Locations

9 N. Kings Rd Greenville, SC 29605 Phone: 864.269.7007 Toll-Free: 800.849.4454 Fax: 864.269.6004 Operations Manager- Rob Hovanec Sales Managers- Russ Lott & Jey Yates Atlanta Sales Manager - Marshall Frasier

1427 Mechanical Blvd Garner, NC (Raleigh) 27529 Phone: 919.662.9012 Toll-Free: 800.849.4677 Fax: 919.662.9412 Operations Manager- Vic Murray Sales Manager - Larry Smythe

Other Locations

4987 Banco Road N. Charleston SC 29418 Phone: 843.760.0780 Toll-Free: 888.224.3140 Fax: 843.760.6127 Operations Manager- David Starr Sales Manager - Bailey Williams

9050 D W. Market St. Colfax (Greensboro) NC 27235 Phone: 336.992.0237 Toll-Free: 800.609.0889 Fax: 336.992.0839 Operations Manager- David Perkins Sales Manager - Kearns Cheek

180 Rodeo Drive Myrtle Beach SC 29579 Phone: 843.236.6447 Toll-Free: 800.821.2676 Fax: 843.236.6521 Operations Manger- Peter Bemisderfer Sales Managers - Clint Paul, Russell Davis, Frank Crouse

140 Dorton St Charlotte NC 28213 Phone: 704.358.9797 Toll-Free: 866.375.9660 Fax: 704.358.9646 Operations Manager: Adam Kent Sales Managers - Chris Daleus, Rick Bunch, Julie Ham, Angie Puckett

358 Industrial Park Rd Hardeeville (Hilton Head) SC 29927 Phone: 843.784.1580 Toll-Free: 866.326.8802 Fax: 843.784.1581 Operations Manager - Artie Helmey Sales Manager - Steve Melton