Dear Friends:
As I write this near the end of February, the temperature is in the 20's every morning and we have had snow twice in the last week in Greenville, SC, where I live. I was in Raleigh and Greensboro last week and was shocked to see how much snow was on the ground there. Obviously freezing cold weather and snow isn't conducive to construction and when you add this to the impact of the economy we are dealing with a one-two punch.
However, I just finished reading an in-depth forecast done at the end of January by MIMI, a leading economic forecaster and I liked what I saw. They are calling for the prime rate to stay below 4% for all of 2010, GDP to be between 2.8 and 3.5%, and housing starts to annualize at 1.8 5 million in the fourth quarter of 2010. In other words they are calling for a slow but gradual recovery which is probably better for all of us than a dramatic V-shaped recovery that would put strains on most companies' cash flow and staffing levels.
Based upon what I am seeing, reading, and hearing I think we will start to see a gradual increase in business in March and then a slow steady increase during each month of 2010. I sure hope I'm correct!
Despite the sluggish economy many manufacturers continue to increase prices. For more detailed information about this, please see below.
The costs for some raw materials used to make many construction items continued to rise in late January and early February, especially resins made from natural gas and oil. Manufacturers of plastic, polystyrene, polyethylene and PVC resin increased prices in February and plan to raise prices again in March. Copper prices fell slightly in late January, but rebounded in February. For the first time in four months February scrap steel prices did not increase, due to weakened demand in Europe and Asia.
After several months of resin price increases The Dow Chemical Company announced on February 5th that they would increase prices on all
Styrofoam extruded polystyrene insulations by 10% effective March 1st. Other manufacturers of extruded polystyrene insulations also announced an increase for March shipments. As manufacturers of polyethylene resins have already indicated they will raise prices again in March, extruded polystyrene insulation manufacturers may increase prices again in late spring or early summer. Be sure that you factor in this price increase as you are preparing your bids.
Wire rod manufacturers increased prices in February by approximately 8% and have indicated they will increase prices in March
by another 3%. Due to their increased cost for wire rod, most
concrete reinforcing wire mesh manufacturers have announced they will raise prices March 1st for both sheets and rolls by 7%. This increase is the second in as many months and many analysts predict another price increase in April or May. If you have projects which require wire mesh, we advise you buy out these projects as soon as possible to avoid any further price increases.
Although their costs for wire rod and zinc continue to increase, manufacturers of
masonry reinforcing and masonry ties have indicated they will not raise prices in March, due primarily to weak domestic demand. As there was an industry wide price increase in January, manufacturers do not think that the market will accept another increase now. As noted previously wire rod prices will be increasing in March by 3%. If wire rod and zinc prices go up again in April, expect masonry reinforcing manufacturers to increase prices again in the spring.
PVC resin prices have increased for three consecutive months and manufacturers have indicated there will be another price
increase in March. Due to these resin increases manufacturers of
PVC waterstops, masonry control joints, and flashings are increasing prices in March. Prices for these items will increase by 8 to 10%.
Nucor, Gerdau Ameristeel, and other domestic rebar manufacturers announced that prices for their March rollings will be
the same as in February. . Scrap steel prices held steady in February and demand remains weak, therefore;
domestic rebar mills decided to hold the line on prices after two consecutive months of double digit increases.
As noted in last month's newsletter, polyethylene resin prices increased for three consecutive months and another resin
increase of $.03/lb will go into effect in March. Although demand continues to remain extremely weak,
polyethylene sheeting manufacturers can no longer absorb these higher resin costs and will raise prices by 10% on or before March 1st. Domestic polyethylene sheeting demand usually increases in March and April, due to higher usage by the agricultural industry, so expect prices to increase again in April. You should consider buying now any poly you need for the next few months.
Manufacturers of many construction materials made from steel, such as
dowel baskets, dowels, metal key way, and nail stakes either increased prices in February or will increase prices in March by 8 to 10%. Increased costs for steel were cited as the primary reason for these increases by manufacturers.
Copper thru-wall flashing prices were expected to increase in February, but manufacturers did not raise prices due to the unexpected drop in raw copper prices in late January. As raw copper prices rebounded in early February and are expected to continue to move higher, copper thru-wall manufacturers are expected to increase prices by April. If you have upcoming projects which require copper thru-wall flashings, we advise you to buy out these projects by early March to take advantage of the current prices.
The producer price index (PPI) for finished goods rose 1.2% in January, not seasonally adjusted (1.4%, seasonally adjusted), and 4.6% over 12 months, the Bureau of Labor Statistics (BLS) reported on Thursday.
Click here for January Producer Price Indexes (PPIs) for Construction Materials and Components, and Slides
The March 2010 Edition of Dr. Bruce Yandle's Economic Situation Report
can be downloaded here. This is a good read, I recommend
you take a few minutes and at least skim it.
This month we are profiling the following supplier:
- Hohmann & Barnard is one of the top manufacturers of masonry reinforcement and flashings. They have a broad line of top quality products as well as service you can depend on. All of their products are available at any of our branches. To see more about them please see their advertisement below.
- Emseal is the leading manufacturer of interior and exterior expansion joints. They are the market leader and are constantly coming out with new products, so they are widely specified. The next time you need expansion joints for one of your jobs please check with us.
- Green Resources is a major provider of erosion control products, chemicals, fertilizer, turfgrass seed, and other products for landscaping and erosion control. They have four warehouses in our marketing area to be able to get you what you need, when you need it. Please call us when you have a need for any of these type products.
This month's management article is entitled,
Don't Be So Touchy! The Secrets for Giving Feedback to Millennials. It's no secret that we can't manage people in their 20's the way we manage people in their 50's. This article has a lot of tips on how to manage the next generation. I got a lot of good ideas from this and I hope you will as well.
Speaking of the younger generation, our followers on Twitter continues to grow and I see more and more companies in our
industry communicating with their customers and suppliers via Twitter is well. If you're not already following us, please go
to www.twitter.com/newsouthsupply and sign up.
In closing, let's hope that I'm right about business picking up in March as I think we've all had enough of The Great Recession. Thanks again for your business and never hesitate to let me know how we can serve you better.
Best regards,
Jim
Jim Sobeck
President
(864) 325-6518
jim.sobeck@newsouthsupply.com
Stay up to date on the latest industry news by following us on Twitter.
http://www.twitter.com/NewSouthSupply
Don't Be So Touchy! The Secrets for Giving Feedback to Millennials
by Joanne G. Sujansky,
CSP and Jan Ferri-Reed, Ph.D.
Brian Castro's help desk department serves more than 1,000 end-users at his
company's distribution center. Among the 23 employees in his multi-generational
staff are several Millennials (born 1980-1999) who he hired last year, fresh
out of college.
Like the rest of Brian's help desk staff, his Millennials are excellent at
solving difficult computer problems, usually under a critical deadline. Overall
Brian, a Baby Boomer, is pleased with his new hires and tells them just how
much he values them.
That's why Brian was shocked when his most promising Millennial showed up at
his office Monday morning and announced that Friday would be his last day. The
young employee was leaving for a new job "where he would be truly appreciated."
Brian was speechless. How had he gone wrong?
The Challenge of Managing Millennials
Actually, Brian may be an above-average manager whose confidence in his staff
is deeply appreciated by most of his employees. But his style of coaching and
giving feedback may be better suited to his more tenured employees rather than
his Millennials. Both the WWII generation and their offspring, the Baby
Boomers, were raised on the mantra of "just get the job done." Although
feedback is important to them, they may not demand high doses of it like the
Millennials.
For Millennials, on the other hand, constant feedback is an almost critical
ingredient in performance and job satisfaction. It sometimes seems as if this
younger generation has an insatiable appetite for praise. And if they don't
receive the recognition they feel they deserve, they may be more likely to bail
out of their jobs for greener pastures. Why the craving for feedback and praise?
The children of Baby Boomers, the Millennial Generation (sometimes also
called Generation Y) have been raised in an atmosphere of high expectations,
plenty of feedback and heaps of praise. They have received feedback on class
assignments at each stage of development and are used to getting support
throughout the completion of tasks and projects. Many observers consider them
to be spoiled and unrealistic in their job expectations. They complain that
Millennials show up late, leave early, refuse overtime, and expect to be
promoted without "paying their dues."
However we can't escape the fact that Millennials are going to transform the
workplace over the next five years. By 2014 there will be more than 58 million
Millennials employed in various organizations in the U.S. alone! Employers must
begin adapting to the challenge of managing Millennials or risk high employee
turnover and decreased productivity.
Communicating With Millennials
Brian's problem with his disgruntled Millennial
employee is rooted in miscommunication. Brian thought he was conveying a sense
of appreciation to the young man by providing him with lots of corrective
feedback to get him on the right track. Instead of feeling appreciated,
however, the few short accolades of "good job" were overshadowed in the
employee's mind by the more frequent criticisms he received - without
guidance as to exactly how he could improve.
So what's a manager to do? Coddle his or her employees? Hardly!
Managers must give feedback to their employees (it's central to the job
description) but feedback won't work if it doesn't penetrate the layers of
expectation and sensitivity surrounding most Millennials.
The secret is to structure your feedback - whether positive or
negative - in a framework that leaves no room for misunderstanding.
Feedback has to be clear and specific to be effective. And by the way, this is
true for all employees, no matter what age!
So, to make sure your feedback hits the mark employ these strategies:
- Strike a Balance
- Find opportunities to provide both corrective feedback and
positive feedback. Let the employee know that he or she is a valued member
of the team who can make even greater contributions by changing some
behaviors.
- Describe the Problem
Specifically - Don't just label the employee's behavior
"unacceptable." Explain the nature of the problem in detail and how it
affects the organization. Build on the employee's strengths by explaining
what aspects of the job he or she is doing well and how improving the
specific area of performance will benefit him or her and the organization
- Involve the Employee
in the Solution - Instead of dictating, "Here's what
you need to do to change," ask the employee for ideas about what he
or she can do differently. Be ready to provide specific examples of how
the employee can be even more successful.
- Establish a Follow-up
Expectation - Ask the employee to commit to behaviors that
need to change and set a due date for review. Stick to that follow-up
schedule and make sure you acknowledge changes and improvements.
And also try to give plenty of on-the-spot feedback as the employee is
progressing. Don't make the mistake of confining your praise to formal
meetings. Catch your employee "doing something right" and let him or her know
on the spot that you noticed. Give a pat on the back when it's deserved!
Cracking the Millennials' Code
Millennials are far more accustomed to receiving praise, congratulations and
positive reinforcement as opposed to criticism and negative feedback.
Corrective feedback can seem like an attack to many Millennials. It may
actually raise their defenses, thus causing them to "tune out" and miss
valuable guidance. To provide solid feedback you have to "crack the
Millennials' code," giving feedback that acknowledges areas for improvement
while building on their strengths.
Managers too often give feedback in vague generalities that come across as
threatening, frequently saying things like:
"Your behavior is not acceptable. You need to stop (the problem
behavior) now because you are causing problems for others. If you don't change
there will be consequences. Correct it and we'll talk about this again at a
later time."
This doesn't resonate with employees, particularly Millennials, because they
would rather hear something more positive (and unrealistic), such as:
"You've been doing a terrific job and I'm very happy with the results.
Regarding (the problem) I know you had the best of intentions and that it
really wasn't your fault. I know that you know best what needs to change and
that you will follow through. I trust you to do the right thing and make these
changes as soon as you can."
While more positive in tone, this approach is just as general and as
unlikely to yield results as the first example. Instead, following the model
above, you need to say:
"I'm very happy with many of the things that you've been doing, such as
(give examples). However, if you improve (the problem behavior) it will be good
for you and for the organization. I understand what you intended, but if you
make these changes you'll be more successful. However, if you don't make the
changes there will be consequences (give examples). What are you willing to
commit to? Let's agree to review progress on the changes that you committed to
make by (set a date)."
Managing Millennials may be challenging. But when you take the time to
consider reframing your communication, you'll find that your Generation Y
employees will respond with enthusiasm and commitment. You may even be
surprised at how well this applies to all generations of employees!
