Dear Friends:
As 2008 continues to unfold, we find ourselves in somewhat uncharted waters. The US banking system is in crisis, and the construction economy continues to be terrible as it relates to residential construction, but commercial construction continues to hold up in most markets. I am very concerned that commercial construction could take a hit if the banking crisis is not resolved quickly. As of this writing, commercial construction continues to be quite good, and 2008 is another record year for us thus far. This is only possible because of your support. I want all of you to know how much we appreciate the support of our great customers and suppliers. As a distributor, our success is only possible by having great customers and suppliers (and of course, great associates), and we know that we do.
Our annual customer satisfaction survey results are in, and I want to thank each of you who responded for the very positive comments and ratings you gave us. It is gratifying to see that we are executing on our customer commitments based upon the high scores you gave us across all categories. I pledge that we will not rest on our laurels but will continue to try to not only meet but to exceed your expectations every day.
Inflation continues almost unabated in most of the product categories we sell. While residential construction products continue to be at very low pricing levels, the strong commercial construction market, the demand for steel overseas, and the relentless price increases for anything made from petroleum byproducts has caused the prices for most of the products we sell to continue to escalate every month. We hate to have to continue to raise prices, but our prices from our suppliers and the ever increasing field surcharges we are being assessed by our vendors necessitate passing these increases along to you. Below is a more detailed analysis of pricing for the main products we sell.
Commodity metal prices continue to increase due to strong foreign demand, the weak dollar, and rising energy costs. Prices for steel, copper, and stainless steel reached record highs during June and July and have caused prices for related construction products to continue to spiral upward.
Nucor announced in July they would increase their price for rebar by $65.00/ton effective August 1st and other domestic mills followed Nucor’s lead. The increase was partially due to an increase in the cost of scrap steel, which rose by the same amount during the first two weeks in June. Although domestic demand remains weak, foreign demand remains strong and further increases are expected for the next several months. Please be sure you factor in these increases when you are preparing your bids.
Manufacturers of dowel baskets and doweling systems increased prices by 5% in June due to their increased costs for steel. This follows an increase of 5% which went into effect in May. With steel prices still on the rise, expect further increases in August and September. Also, leading rebar and wire mesh support manufacturers, Meadow-Burke, Dayton Superior, and Universal Building Products announced another 10% increase effective August 1st.
Masonry reinforcing and tie manufacturers announced in June they would increase prices by 10% the first of August. Both domestic and foreign producers of wire rod continue to raise their prices which have caused Wire Bond, Hohmann & Barnard, and Dayton Superior to raise prices for the 6th consecutive month this year. As further increases are expected, we advise you to buy out any projects you have which require masonry reinforcing and ties now, as prices will continue to increase.
Due to weak domestic demand, concrete reinforcing mesh manufacturers did not implement an increase in July. Although demand remains weak, manufacturers of concrete reinforcing mesh have announced they will be increasing prices by approximately 10% the first of August, due to the rising cost of wire rod. Manufacturers also expect to increase prices again in September and October, as they have already been notified by wire rod manufacturers that there will be more price increases over the next few months. Please be sure to factor these increases in as you are preparing your bids.
Copper and stainless steel thru-wall flashing manufacturers did increase prices in July by approximately 6% as reported in our June newsletter. As the worldwide price for copper and stainless steel is at all time highs, manufacturers of these types of thru-wall flashings expect to increase prices by as much as 10% in August or early September. If you have any upcoming projects that require copper or stainless steel thru-wall flashings, we strongly advise you to purchase the requirements for these projects as soon as possible.
Nearly every manufacturer that uses plastic resins in production of construction materials increased prices in July. These increases are due to their increased costs for resins. Advanced Drainage Systems (ADS), the industry leader of polyethylene drainage products, and other domestic manufacturers increased prices in July by a whopping 45%. They also have announced another price increase of 10% effective August 1st, as they were hit with yet another resin increase in July.
Producers of polyethylene film vapor barriers increased prices by approximately 15% in July and have announced they will raise prices by another 8 to 10% in early August. As they have been notified by resin manufacturers that resin prices will be $.04 to $.06/lb higher in August, polyethylene manufacturers will be increasing prices by 10% or more in late August or early September.
Manufacturers of PVC construction products, such as waterstops, control joints, and flashings, continue to raise prices for their products. As reported in last month’s newsletter, most increased prices by 6 to 8% in July and have announced they will increase prices again in August due to the spiraling cost for resins.
Although Simpson Strong-Tie just increased prices this past June, they have announced they will implement another price increase effective September 1st. They are increasing prices again due to their increased cost for steel and plastics. Connector prices will increase by 12%, steel mechanical anchors will increase by 4 to 35%, depending on the type of anchor, and adhesive anchors will increase by 4%. Other manufacturers of timber connectors and anchors have also announced they will increase prices by similar amounts in September.
Due to the rising cost of solvents Pecora Corporation, and most other manufacturers of joint sealants and waterproofing products, increased prices in July by approximately 7%. With solvent prices continuing to increase, manufacturers of urethane and silicone joint sealants, and sheet and liquid membrane waterproofing products may be increasing prices again in the 4th quarter of 2008.
Also, the latest Producer Price Index is out, and if you would like to see it,
please click here.
This month, we are featuring the following suppliers:
- 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.
- Zurn Flo-Thru is the preeminent supplier of preformed trench drains in the construction industry. They have a wide variety of sizes and shapes, as well as numerous types of grates ranging from purely functional to highly decorative brass grates. The next time one of your projects calls for trench drains, please give us the opportunity to give you a quote.
- Armor Tile is a product manufactured by Engineered Plastics, Inc. The ADA requires the use of tactile warning devices at all new or redone intersections and at the curb level of many retail stores and public facilities. Armor Tile is the top product available to the construction industry. While there are cheaper products that fall apart in a number of years, nothing else on the market compares to Armor Tile. The next time one of your projects calls for a tactile warning system, please let us give you a price.
As announced in last month’s newsletter, our golf registration websites are now active for this fall’s second annual New South Charity Classic golf tournaments benefiting the Make-A-Wish Foundation. We have an early bird special for those signing up at least 30 days prior to each event. I was surprised to see how many people signed up in the last month even though the tournaments are not until this fall. I think that is a testament to how outstanding the tournaments were last year. I see that many players from last year have already registered, and many new players have signed up as well. If you want to play in one (or both) of these tournaments, please do not wait to register, as we will definitely have waiting lists for both tournaments.
Click here to register for the Greensboro Tournament at Sedgefield Country Club and
click here to register for the Columbia Tournament at Woodlands Country Club.
This month’s management article is entitled, “Six Ways to Manage Your Anxiety at Work.” Given that we are all operating in “anxious times,” I think you will find this story to be timely and worthwhile.
In closing, once again, thank you for your support, and do not hesitate to let me know your comments and suggestions.
Best Regards,
Jim
Jim Sobeck
President
(864) 325-6518
jim.sobeck@newsouthsupply.com
Six ways to manage your anxiety at work
If you're a leader, you feel it in your gut: Stress is at an all-time high. No wonder. The uncertain economy keeps everyone, even those who work for successful companies, slightly off balance. Doing more with less has become a way of life: fewer dollars, fewer employees, and what feels like fewer hours in the day. (The only thing there seems to be more of is competition!)
It all adds up to anxiety overload—and according to Jeffrey A. Miller, that can be deadly for an organization. Miller is author of “The Anxious Organization, 2nd Edition: Why Smart Companies Do Dumb Things” (Facts on Demand Press, January 2008, ISBN-13: 978-1-8891505-2-9, ISBN-10: 1-8891505-2-5, $19.95).
Of course, some anxiety in the workplace is normal and even desirable, points out Miller. It goes back to our primitive survival instincts. All organizations face threats, both internal and external, and anxiety is an instinctive response to any threat to one's survival. But when the natural chronic anxiety in an organization rises to an excessive level, employees become like a herd of stampeding wildebeests. They start operating on "fight or flight" instinct rather than thinking clearly, creatively, and in a flexible manner.
Dismal as this scenario sounds, there is some good news. Rather than accepting the cost of excessive anxiety as a way of life, you can change your organization for the better. Miller offers the following suggestions:
Strive to be a predictable leader. The least stressful companies to work for are those in which the rational system—the officially stated goals, values, policies, procedures, job roles, and so forth—is a fairly accurate description of what actually transpires on the average workday. This means that the rational system and the emotional system are reasonably well aligned. What the leaders of such companies have in common is their predictability. If you want to guess what the leader will do in any given situation, check out the company's mission statement, current objectives, policy manuals, and reporting structure. The leader's behavior is consistent with what the rational system of the company would lead you to expect.
When there is a conflict between the rational system of an organization and its emotional system, the latter will usually prevail. Employees tend to disregard the rational system when the emotional system contradicts it. They will, for instance, ignore their written job descriptions if the emotional system rewards them for doing something else, and disregard policies and procedures that conflict with the interpersonal ecology. The emotional system of an organization is simply more compelling than the rational system. People apprehend it with their entire bodies. It's personal.
Map the anxiety in your situation. Because anxiety feels uncomfortable, we tend to play "Hot Potato" with it: We dilute the pain by passing it on to someone else. When you understand this mechanism, it's possible to figure out where your anxiety originated. Draw a circle that represents you and other circles labeled with the names of those around you. Use arrows to indicate where anxiety is coming from and where it is going. Interestingly, you may find that some of your anxiety is coming from a family member or even a figure from your childhood. Once you've mapped your anxiety, you can use the following techniques to help you defuse it.
Learn to take an "I-position." When you have to solve a problem, it's tempting to worry about how your decision will affect the feelings of other people. But keep in mind that you'll never please everyone. It's impossible! Trying to control the reactions of other people is anxiety-driven behavior, and it results in only more anxiety. To take an I-position, you need to make a principle-based decision rather than one based on feelings and personalities. It's true that taking an I-position may temporarily cause anxiety to rise, but in the long run, the entire system will be able to calm down.
Calm yourself with a six-second vacation. When you are in a situation that makes you feel anxious, you must distance yourself from it before you can think clearly. If you're in the middle of a meeting, conversation, or other incident that is triggering your anxiety, try taking a six-second vacation:
- Inhale for two seconds, sending the air where you need a little help. It can be sent to any part of your body, mind, or spirit, or you can direct it to a troubling idea, a present worry, a concern, even a recurring theme.
- Exhale for two seconds, releasing all muscle tension in your body, starting at the head and moving to the toes. Think of yourself as a boneless chicken.
- Do NOTHING for two seconds.
"Detriangle" yourself. Did you know that any relationship between two people seeks to stabilize itself by pulling in one or more third parties? This process is called "triangling." Suppose you have a conflict with a co-worker (let's call him Mike). Because the two of you can't reach an agreement, anxiety builds up. You decide to draw in a third co-worker (let's call her Mary) to get her "on your side" and relieve your anxiety. You have created a triangle: you and Mary against Mike.
Triangles are perfectly natural, but they can sometimes create even more anxiety. The good news is that you can "detriangle" yourself. Here's how:
- Look for the objective cause of the anxiety that has led the triangle to rise.
- Take sides with issues, not with people. Take an "I-position" and state it clearly.
- Maintain an independent one-on-one relationship with each of the other members of the triangle.
Correct an overfunctioning/underfunctioning relationship. Overfunctioners take over responsibilities that belong to another person. Underfunctioners allow this to happen. It is a reciprocal relationship—neither can exist without the other—and both parties are reacting to anxiety. Needless to say, too much of this type of behavior is unhealthy for both people and for the organization as a whole.
Fortunately, either party can break the cycle by taking the all-important I-position. If you are an overfunctioner, realize that you are not responsible for someone else's success or failure. You cannot do his job for him, even if he is a subordinate. If he fails, he fails (but he probably won't). On the other hand, if you are the underfunctioner in the relationship, you must realize that your long-term passive approach serves to maintain the other person's overfunctioning behaviors (micromanaging, controlling, etc.). Get clear on your responsibilities and take actions that will reverse the overfunctioning/underfunctioning cha-cha.
