New South Construction Supply eNews - May 2010

 

Dear Friends:

As I compose this letter at the end of May we continue to see an increasingly more healthy construction economy. That's not to say that we are totally out of the woods but business has been steadily increasing every month, in most areas. I think that the huge amount of debt being taken on by the US government is going to dampen GDP growth for perhaps as long as the next 10 years. So, while we may not see a boom as in years past, I hope we won't see the kind of bust we just went through either.

The downside of economic growth is that there are even more price increases coming than in the past. For a look at pricing trends for some of the key commodities that we sell, please see below:

Many manufacturers of steel construction products, who to this point have absorbed the sharp increase in the price of steel since the beginning of 2010, are now increasing prices. Also, although domestic steel manufacturers have held the line on prices over the past couple of months, foreign manufacturers increased prices in May and some have announced another increase for June. Because most manufacturers of construction products buy from both domestic and foreign sources, their costs continue to increase. Polyethylene and plastic resins manufacturers increased prices again in May. Also it should be noted that some polymers used to manufacture coatings, stucco, and resins, are in short supply. Because of the short supply, most manufacturers of these products have increased prices and have put their distributors on allocation until supply increases.

Simpson Strong-Tie announced they will increase prices between 6.5% and 12%, depending on the product, for connectors, nails, Strong-Wall, mechanical anchors, and adhesive anchors on July 1st. Increased raw material costs was cited by Simpson as the reason for this increase. Most other manufacturers of competitive products announced similar increases for July. PNA Construction Technologies announced on May 12th that they will increase prices on all dowel baskets, dowels, Armor Edge, and Diamond Dowels between 5-6% effective June 11th. NDS will increase prices between 3 to 10% on their entire product line, depending on the product with steel and metal products having the largest increase. Also, prices for all types of construction fasteners, such as nails, screws, expansion bolts, etc. are expected to rise in June and July.

Domestic rebar manufacturers announced prices will be unchanged for their June rollings. This is the second consecutive month that domestic rebar manufacturers have not changed their pricing. Although domestic rebar prices have held steady, most foreign rebar mills increased prices in May and have announced another increase for June. If scrap steel prices increase appreciably in June, expect domestic manufacturers to increase their prices in July.

Polyethylene resin prices increased by $.05/lb in May and resin manufacturers have announced another $.05/lb increase for June orders. Because of these increases polyethylene sheeting manufacturers have indicated they will increase prices between 4 and 6% in June. Also, prices for many other construction products made from polyethylene resins, such as polyethylene expansion joint and backer rod have increased appreciably (5 to 10%) over the past 60 days and further increases for these products are expected.

Concrete reinforcing wire mesh prices held steady in May and are expected to remain at current levels through June. Although foreign wire rod manufacturers increased prices in May (as much as 50% of rod used by domestic manufacturers of concrete reinforcing wire mesh is imported), most wire mesh mills had sufficient quantities of wire rod in stock and did not have to purchase wire rod at the higher May prices. With another increase pending from foreign wire rod manufacturers and with domestic prices holding steady, expect concrete reinforcing prices to increase in July.

Hohmann & Barnard and Wire Bond each announced they will increase prices for masonry reinforcing and ties between 15 and 20% in early June. This increase is in addition to the 15% increase in mid-April. Both companies cited their increased costs for wire rod and steel bar stock as being the reason for the June increase. If you have upcoming projects requiring masonry reinforcing and ties, you should consider buying out these projects prior to June 1st to avoid the increase.

As noted earlier, there currently is a critical shortage of certain types of polymers used to manufacturer acrylic coatings, paints, and stucco. Because of these shortages, most manufacturers of these products have placed their distributors on allocation, which means that at least for the foreseeable future, distributors may not be able to fill orders from their customers for certain products when the customer requires these products. This situation is completely beyond both the manufacturers' and distributors' control. If you have upcoming projects which require these types of products, you should contact your distributor and place your orders as soon as possible, as orders will be shipped on a first come, first served basis. Also, polymer manufacturers have increased prices due to the limited supply and manufacturers of construction products made from these polymers have announced they will increase prices between 3 to 7%, depending on the product in June or July.

The April PPI tables are out. Click here for April PPI tables.

This month we are featuring the following suppliers:

  • Tremco Tremco is a $1 billion + market leader in the area of coatings, sealants, waterproofing products, firestopping, and everything for the entire building envelope. They are one of our newest suppliers and we are happy to let you know that we are now a Tremco distributor. Please keep this in mind when you see Tremco products specified on a job you're doing.
  • STO is the worldwide leader in stucco, EIFS, and coatings. This is also another new product line for us and one with which we have had immediate success landing several very large projects. The next time you need stucco, EIFS, and/or coatings, please let us know. We're happy to give you a quote.
  • Right Pointe is one of the most diversified manufacturers of concrete chemicals and accessories. Not only do they have a top quality line, but their products are priced right for a tough economy. To see more about some of their products, scroll down.

We have a special offer this month. Noted industry consultant Bill Lee has just released another new book and this one is entitled 30 Ways Managers Shoot themselves in the Foot. To get the condensed Ebook version, 30 Ways in 30 Minutes, for free click here. It's a short book and it's an easy read. There are a lot of good tips in this book about what NOT to do as a manager.

This month's management article is entitled, Reach Customers with Social Media Marketing. Social media is one of the hot buzzwords these days. It refers to things such as Facebook and Twitter. If you're still not using Facebook and Twitter to promote your business you should really read this article. Speaking of Twitter, if you still haven't checked out our Twitter feed you should do so. We post a lot of great industry related articles every day. To take a look go to www.twitter.com/newsouthsupply.

In closing, let's all hope that business continues to improve steadily each month. As always, please don't hesitate to call me if we ever fall short of your expectations.

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

This month we are featuring the following suppliers:

New South is pleased to announce our new partnership with Tremco, Incorporated to carry their Commercial Sealant and Waterproofing Line of Products in all New South branches. Tremco is a global leader in Building Envelope Solutions with a full range of waterproofing materials, deck coatings, air barriers, firestop and sealants. Tremco prides itself in being one of the few companies that can offer single-source moisture protection from the footing to the roof. We know many of you are already familiar with the Tremco family of products and we look forward to assisting with all of your Tremco needs. More information can be attained at your nearest New South branch or at www.tremcosealants.com.


About Sto Corp.
Sto Corp., based in Atlanta, Georgia, is an innovative world leader and producer of a broad range of versatile cladding and coating systems for building construction, maintenance and restoration. Sto Corp. is ISO 14001:2004 (environmental management) as well as ISO 9001:2008 certified and operates production plants strategically located to serve more than 200 distributor shipping locations across North America. At research and development laboratories in the U.S. and Europe, Sto continues to revolutionize the industry with the highest quality products and application technology.

For more information, visit www.stocorp.com or call toll free (800) 221-2397 or (404) 346-0755. Follow Sto Corp. on Twitter as well as the Sto blog “Building with conscience” at http://www.buildingwithconscience.com/


For more information call your local New South branch or visit them at www.rightpointe.com.

May's Management Article

Engage Customers with Social Media Marketing

By Daniel Burrus

Create social media guidelines to reach your customers

The new frontier of Web 2.0 is not just about informing your customers; it's about communicating with them. Today's Web 2.0 tools, such as blogs, Twitter, Facebook, LinkedIn, and the many other social media options, are all about customer engagement.

When you send your prospects or clients an email, a mailer, or a newsletter, or when you place a TV, radio, or print ad, you're informing your readers about something. Those are information age tools that still have a purpose.

However, social media is about the communication age. You're attempting to creating a dialogue, trying to get engagement, and hoping to elicit a response. So it's not just about talking; it's about listening. Ultimately, social media is not about the media. It's about the social - about trying to get people talking about something important to them and to your business.

What is Your Focus?
In order to make the best business use of social media, your organization needs to pinpoint the specific message you want to put out so that all employees have a guide to follow - so they know what direction their messages should take and how they should focus their posts. In other words, is your company's focus to increase customer service? To enhance awareness of your products or services? To boost your brand recognition? Each of these things would have a different consistent message for your employees to focus on.

For example, one insurance company uses Twitter and Facebook to let people know all the philanthropic things they are doing for the community. All the posts are about events they're sponsoring and contributions they're making.
Employees know that they should post information about personal things they're doing for the community, such as volunteering at the local animal shelter or helping out with Habitat for Humanity. With a clear guideline that the social media effort is to increase philanthropic awareness, it's easy for employees to know the kinds of things they should be doing on social media sites. They have a clear focus and a unified purpose.

Another company in the retail industry uses social media to improve customer service. All their posts highlight things they're doing internally to improve the customer experience, what they're doing online to make shopping easier, and how they're handling phone inquiries to deliver a memorable shopping experience. They also regularly ask customers how they'd like the company to improve customer service. With that as the key message, all the company's employees are focused on problem solving and on making the customers happy.

Therefore, a good social media strategy and employee guidelines are far more than a list of good and bad words or topics. Instead, they need to focus on the core message your company wants to portray and then determine the best ways to spread that core message. That's why upper management needs to take the time to determine the core message and share it with all employees.

Creating the Guidelines
Creating social media guidelines for your company does not have to be difficult. Once you get clear on the core message you want to send out and the dialogue you want them to engage with, use the following tips to create guidelines that your staff can use to shape their posts around the strategy.
(Note: the following suggestions are general in nature. Please adhere to your state's HR laws and seek legal counsel as needed.)

Build trust. Your employees should use their posts to build a reputation of trust among clients, media, and the public. When they are reaching out to others on social media sites, they should take every opportunity to build a reputation of trust and to establish themselves as a credible and transparent representative of the company.

Transparency. When participating in any online community, your employees should disclose their identity and affiliation with the organization, clients, and professional and/or personal interest. When posting to a blog, they should always use their real name, not an alias.

Be direct. When creating posts and content, your employees should be direct, informative, and brief. They should never use a client's name in a posting unless they have written permission to do so.

Give due credit. If your employees post copyrighted materials, they should identify the original source. This includes sources for direct or paraphrased quotes, photos, videos, and anything else they did not originally create.

Self-edit. Your employees should always evaluate their posting's accuracy and truthfulness. Before posting any online material, they need to ensure that the material is accurate, truthful, and without factual error. This includes doing a spell and grammar check on everything. Remember, content never disappears entirely once it's been posted. Should your employees find an error, have them correct it promptly. Since transparency is key, have them admit the mistake, apologize if necessary, correct it, and then and move on.

Responsibility. Make sure employees know that they are responsible for what they post. Negative or questionable posts will not be tolerated.

Additionally, while what they do on their own personal pages during personal time is their business, what they publish on those sites should not be attributed to the company and should not appear as endorsements from the company. If they choose to list their employer on a personal social network, then they must regard all communication on that network as they would in a professional network. Online lives are ultimately linked.

Be professional. When posting comments, employees should refrain from writing about controversial or potentially inflammatory subjects, including politics, sex, religion or any other non-business related subjects. The tone of their comments should be respectful and informative, never condescending or "loud." Additionally, they should avoid personal attacks, online fights, and hostile communications. If a blogger or any other online influencer posts a statement with which your company disagrees, your employees can voice their opinion, but not escalate the conversation to a heated argument. Instruct them on how to write reasonably, factually, and with good humor.

Privacy. Employees should never disclose proprietary or confidential information. This includes product releases, service updates, and employee information not made public yet.

Obey the rules. All employees should follow local, state, or federal laws and regulations; the company's internal rules (typically found in the employee handbook); as well as the rules established by each social networking venue. Ultimately their online activities will be a reflection on the company.

Propel Your Message Forward
Today's Web 2.0 tools are great for business building, provided that your employees know how to use them for the company's ultimate benefit.

Therefore, determine why your company is using social media sites, and then let that purpose be known throughout the entire organization. Additionally, implement clear social media guidelines that employees can follow, and you'll have the people, processes, and tools you need to further your company's mission. Ultimately, when employees know how they are supposed to use today's Web 2.0 tools, they can do so with focus and purpose, leading the organization confidently into the communication age.

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 Manager - Russ Lott

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

1065 Bankhead Highway Winder, GA (Atlanta Market) 30680 Phone: 803.319.0137 Sales Manager - Julie Ham

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