New South Construction Supply eNews - February 2009

 

Dear Friends:

As I write this letter on February 16 President Obama is getting ready to sign the much touted economic stimulus bill. What started out as a program designed to mainly fund infrastructure and construction spending has largely turned into a spending bill that is either creating or adding onto existing entitlement programs.

The bill, as it exists on February 16, only allocates 24% of the total spending towards the construction industry. Only $188 billion of the $788 billion plan is being spent on construction projects. Over $600 billion is being spent on food stamps, extending unemployment benefits, incentives to buy cars, tax credits for first-time homebuyers, etc.

President Obama has had a remarkably short honeymoon as only three Republicans in the Senate and none in the house voted for this bill. So much for getting bipartisan support for this bill. The lobbyists and special interest groups that plague Washington did their dirty work once again and caused this bill to be laden with pork and social welfare programs as opposed to things that will benefit the construction industry. Old habits die hard in Washington and if our current economic situation can’t get politicians to change how things have been done in Washington for over 200 years I don’t know that anything can.

I hate to sound pessimistic and cynical but, while I didn’t vote for our new president, I was hoping he could deliver on his campaign promise to change how things are done in Washington. It looks to me like we’re going to get more of the same.

The current economic downturn continues to keep price increases in check. In fact, we’ve even continued to see some additional price decreases. For more information on the pricing trends for the products we sell please see below:

Although the cost for some commodities, such as copper, scrap steel, oil, and stainless steel inched upward in late January and early February, most manufacturers of construction materials, which use these commodities in their finished products, did not increase their prices. This is due to the weak demand in both the residential and commercial construction sectors.

Domestic rebar mills announced they would not increase prices for March rollings, although their cost for scrap steel continues to rise. Some analysts believed that Nucor and Gerdau Ameristeel might increase prices for March rollings, but both elected not to do so due to weak demand. Typically, rebar manufacturers increase prices in March or April, as demand normally increases in the spring and summer. With construction starts being at the lowest point in recorded history, most analyst believe domestic rebar manufacturers will hold prices for April rollings at current levels, unless their cost for scrap steel increases dramatically in March.

Masonry reinforcing and anchor prices held steady in February and are expected to remain at current levels in March. Although in January, wire rod manufacturers indicated they might increase prices in late February or early March, they elected not to do so, due to falling demand. Since their cost for wire rod is not increasing, Wire Bond, Hohmann & Barnard, and Dur-O-Wal should hold their current prices through March.

Copper and stainless steel thru-wall flashing prices held steady in February and are expected to remain at, or about, current levels in March, despite the price for these two alloys rising over the past several weeks. With demand being weak, most major manufacturers such as Sandell Manufacturing, Hohmann & Barnard, and Advanced Building Products elected not to increase prices in February or March. If the price of copper and stainless steel rises again in March, expect copper and stainless steel thru-wall flashing prices to increase in April.

Concrete reinforcing welded wire mesh prices declined slightly in early February. Although the cost for wire rod and production costs have not fallen, welded wire mesh manufacturers decreased prices to try and gain more market share. Many manufacturers have been forced to cut production as demand remains weak. Expect prices for welded wire mesh to remain about the same for March and April, unless there is an increase in wire rod prices.

As reported in last month’s newsletter, polyethylene prices did fall by approximately 5% in early February. Although demand remains weak, this decrease is expected to be short lived, as polyethylene resin manufacturers increased resin prices by $.10/lb in February. Most polyethylene manufacturers purchased heavily in January in order to beat the price increase and have sufficient resin inventories to carry them through March. Prices for polyethylene should remain steady through March, but are expected to rise in April by 8% or more due to the resin increase. If you have upcoming projects that require polyethylene vapor barriers, you should consider purchasing in March to avoid the expected April price increase.

The latest PPI charts and tables are out. Click here for the charts and here for the tables.

This month we're profiling the following suppliers:

  • Simpson Strong-Tie is the undisputed leader in construction anchors and fasteners. They not only have an extremely broad product line but are known for their quality and on-time delivery. For more information about their products, please see below or visit your nearest New South branch.
  • Polyguard is one of our favorite suppliers of waterproofing products. They are very innovative and continue to release new products that save you both time and money. For more information on their newest products, please see below.
  • 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.

This month’s management article is entitled “Eight strategies for turning the slow economy into a successful business period”. I think all of us can use some help making lemonade out of the lemons we’ve been handed.

In closing, I hope you are weathering the turbulent economy as well as can be expected. We appreciate your business and stand ready to help you in anyway we can.

Best Regards,

Jim

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

This month we are featuring the following suppliers:

Polyguard is fast becoming the leader in new technology to solve your waterproofing issues. Now focused nationwide the company has many projects with the newest technology of waterproofing blindside and underslab jobs.

Not only are the products superior to other option to the owner they will save you the contractor a lot of time and money on the job! We provide free job start-up to help with details and general application.

Visit us on our website at www.polyguardproducts.com

Simpson Anchor Systems has the product, the testing, the approvals and the specifications to satisfy your structural anchoring needs.

Adhesives Anchors, Mechanical Anchors and Powder Actuated Pins and load products are available at your local New South Construction Supply Branch.

Need a jobsite visit?
Arrange a field visit for product demo, safety training, or application trouble shooting with your New South Construction Supply Representative.

Simpson Anchor Systems
IN THE SPECS-ON THE JOB-AT YOUR SERVICE


DO YOU KNOW BO?

Since the 1980’s, BoMetals has earned a reputation in the concrete and masonry accessory market for constant innovation and tireless customer service. Although our name includes “Metals”, we offer an extensive line of both metal and plastic products. Bo keeps the concrete industry together with QuicKey (tm) and PRO-KEY (tm) keykold joint systems for concrete slabs and a comprehensive offering of PVC, TPER, Mastic & Hydrophilic Waterstop products, Chamfer & Radius Formers, Nail Stakes, Bar Foundation Chairs, Grade Stakes, Expansion Board Cap, Zip Joint plus much more. Bo serves the masonry market by manufacturing Dovetail Anchor Slots, Control Joints, Weep Tubes and Block Caps.

To learn what these products can do for your next project, call your New South Construction Supply professional or visit www.bometals.com

February's Management Article

Eight strategies for turning the slow economy into a successful business period

by George Ludwig

If you haven’t felt assaulted by bad economic news lately, you live in the woods with no TV, newspaper and Internet service. The stock market has lost trillions. Real estate values and sales have declined at record rates all across the U.S. Layoffs are epidemic, small businesses can’t get loans they need to make ends meet, and retirement 401(k)s have plummeted 30 percent on average. And to add insult to injury, banks and automakers have their hands out, imploring Uncle Sam to rescue them from their own incompetence and bad judgment.

If you’re a business professional or salesperson, you may well be wondering: Who’s going to bail me out? The answer, of course, is “No one.” Not the government, not the new president, not your employer, not your customers. You must use smart, time-tested business and sales strategies to bail yourself out.

How do business and salespeople conquer this crisis and orchestrate their own rescue plan? Here are eight fundamental keys:

Put the economy in perspective. The economy has been falling, not failing. It’s down, but it’s down from the biggest economic boom of all time, the biggest housing boom of all time, and the easiest loan requirements of all time. Sure, home sales are down 33 percent, but even with this negative statistic, five million homes will still be sold this year.

All of this just means the low-hanging fruit of two years ago is a little higher in the tree. There’s still business in the marketplace — just not as much as a couple of years ago. We’re all going to have to work harder and smarter than ever before, but sales opportunities are still available.

Replay the crises that you’ve overcome in the past. Virtually every person and business has conquered at least one crisis. Now’s a good time to reflect on those memories and remember how you came through those crises and found yourself stronger. Remind yourself that tough times never last, but tough people do.

Reflecting on a difficult period that you’ve already overcome will give you the confidence you need to conquer the current economic crisis. New growth and more prosperity are just down the road.

Decide that you will make it through the slow economy. This economic crisis is like a crucible that provides us an opportunity to do what’s necessary to recast and forge ourselves into something bigger, better and stronger. We can’t control the events of our lives, but we can control what we decide to think, believe, feel and do about those events.

The only way to come out of this crisis triumphant is to make a defiant decision to think and act like you can’t be stopped. Just as your muscles won’t grow stronger without your making the committed decision to push past your comfort zone into harder resistance, you can’t recast yourself in the event of a crisis without making a committed decision to be an unstoppable selling machine during the recession.

Strengthen your body and your mind. Because fear and worry hijack the mind, one of the best ways to stay healthy and focused during the economic crisis is to strengthen yourself both physically and mentally. Start today on a committed exercise and fitness plan that will not only condition you to feel stronger than ever before, but will also help you manage the stress and anxiety that you are feeling these days.

Condition your soul through daily meditation, by talking to the Higher Being of your choosing, or by writing down what you’re grateful for. You might also want to consider giving yourself a vacation from all of the bad news in the media every day. Feed your mind pure, powerful and positive stories and information by reading biographies of people who have triumphed over crisis, by listening to inspirational music and by watching uplifting movies.

No matter how bad things are for you or your business right now, rest assured there is someone out there who has it worse than you, who doesn’t know where his next meal is coming from or where he’ll be sleeping on a given night. Take time to reflect on how truly blessed you are. Your positive thinking will attract more good things your way.

Focus only on your goals. One of the Laws of the Universe is the Law of Attraction. Perhaps you read about it in the recent national bestseller “The Secret.” Simply stated, it’s the idea that everything that comes into our life, we’re attracting into our life. And those things are attracted to us by virtue of the images we hold in our minds. Unfortunately, most people spend more time thinking about what they don’t want than what they do want, and then they wonder why what they don’t want keeps winning out. In a down economy, people’s powerful fears about what might happen are even more likely to become self-fulfilling prophecies.

To keep this from happening to you, write down exactly what you want to accomplish from a sales and business standpoint and then review those goals every day. Connect frequently to all the emotional reasons why you want to achieve those goals. Write down what it will mean for you and your family. How will it affect your retirement? Will it help you send your child to college? Will it make a much needed vacation a possibility? Stack the deck with so many compelling reasons why, that you simply can’t resist achieving your vision. Handling a tough today is much easier if you have an unshakable vision of a bright tomorrow.

Keep training to get better. If there’s ever a time to keep getting better at what you do, it’s during a down economy. Continuously learning and improving is the only way to be more effective and efficient than ever before and to ensure you are doing everything in your power to out-do your competitors.

Too often, successful salespeople and managers develop an overconfidence in their abilities and in their way to sell or do business. Then they hit some hard times, struggle, and start blaming the economy, when their own failure to keep learning and training is partly to blame for their slow period. When times are tough, salespeople can’t afford a single misstep.

Step up your high-impact sales activity. During a tough economy it becomes mission critical to spend a greater percentage of time performing high-impact sales activities, which involve selling or prospecting to well-qualified ideal buyer types face-to-face or on the telephone. In other words, stop wasting so much time on things that don’t matter.

Recent research confirms salespeople on average spend only 90 minutes per day in high-impact selling activities. That’s a death rattle in a tough economy. Everyone must prioritize their time and make sure they schedule quality high-impact selling time every day and become more efficient in executing all the other tasks they have to perform.

Take the modeling-for-success shortcut. One other fundamental for achieving success rapidly in tough and uncertain times is to find a mentor, coach or colleague who’s achieving the outcomes you desire and model his approach. Or find someone who has experience overcoming past economic crises and ask her what strategies she plans to employ. Spend time with this person so that you can observe the skill sets necessary to achieve success.

This is simply a shortcut as opposed to the trial-and-error approach most people take in their pursuit of success. Find someone who is achieving what you want to achieve in these economic times and then model his or her behavior. Just keep reminding yourself, if they can do it, you can do it.

Use the challenges you are facing to energize and motivate you during the slow economy. And remember that if you make it a priority, sales success is possible. You know the saying, “What doesn’t kill you makes you stronger.” It applies in sales too. If this economic period doesn’t put you out of business, it will make you a stronger and better business person.

New South Construction Supply Locations

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

Mail: PO Box 512 Columbia, SC 29202

Sales Manager - Jon Black Operations Manager - Rodny Dahlgren 803.451.7027 Inside Sales Manager - Donald Whatley 803.451.7028 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 864.268.3970 VP Purchasing - David Hodgin 704.358.9797 Director of Finance and Operations - Dave Lewis 803.451.7025

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

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

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- Ted Finucan

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 Managers - Kearns Cheek

180 Rodeo Drive Myrtle Beach SC 29579 Phone: 843.236.6447 Toll-Free: 800.821.2676 Fax: 843.236.6521 Operations Manger- George Acerbi Sales Manager- Clint Paul

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

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 Managers- Steve Melton & Ray Bryant