New South Construction Supply eNews - September 2011

 

Dear Friends,

Since my last letter near the end of August the economy hasn't gotten any better and in fact, quite a few economists are saying that it is likely we will have double-dip recession. As construction never fully came out of the last recession I hope that we won’t to see any big change in our industry.

I hate to sound negative but I try very hard to the realistic when I compose my monthly letters. I read the Wall Street Journal daily and I also read every issue of Forbes, Fortune, Engineering News Record, and a host of other industry publications and newsletters. The majority of what I have read isn't very encouraging about commercial construction and the only bright spots in residential construction are in apartment construction (because people who have had their homes foreclosed on can't get a mortgage and most young people can’t qualify for a new home with the new higher down payments required now) and low-end homes along the coast which are being bought by retirees, second-home buyers, and young people with good jobs.

Also, another of our competitors has announced they are closing. CMC Contractor Services (formerly known as Shepler’s in the Carolinas), the distribution arm of CMC Metals is getting out of distribution. Their locations in Charleston, Columbia, and Greer, SC will all be shutting down in the near future. Since this downturn began Concrete Accessories shut down all of their locations, White Cap closed several locations, and Kenseal closed in Myrtle Beach and Virginia Beach. We are grateful to be among the survivors.

After many consecutive months of price increases we are finally seeing some relief from price increases.  For a more detailed look at the pricing outlook for our main products, see below:

Despite raw material prices remaining virtually unchanged in August and September, some manufacturers of construction materials increased prices or have announced they will increase prices in October. Fortunately, for the contractor, prices for most of the construction materials we distribute have stabilized and should remain at or near the same levels for the next 45 to 60 days.

Although scrap steel prices in early September went “sideways” (remained at the same level as in August) the three major domestic rebar mills, Nucor, Gerdau Ameristeel, and SDI announced price increases for October. Gerdau Ameristeel unexpectedly increased their price on September 19th by $.50/cwt and announced another price increase of $1.00/cwt on October 1st. Nucor and SDI will increase their prices by $1.50/cwt on 20’ lengths and $1.00/cwt for all other lengths on October 1st. Also, domestic mills cut production in August and there have been spot “shortages” of some sizes of rebar in the Southeast over the last few weeks. Most analysts expect the mills to cut production even more in September so that there will not be an oversupply of rebar, which could cause the price increase not to stick.

Both Hohmann & Barnard and Wire Bond, the two largest domestic manufacturers of masonry reinforcing and other masonry accessories have indicated that prices for their entire product lines should remain unchanged for the next 30 to 60 days, as their costs for raw materials have stabilized in the past few months. This applies to masonry reinforcing, anchors, ties, cavity drainage, copper thru wall flashing, and peel and stick flashing. This should be good news for masonry contractors as prices for masonry accessories has been volatile for most of 2011.

As in August, wire rod prices remained unchanged in September and there is no indication that manufacturers will increase prices in October. Due to wire rod costs remaining unchanged concrete wire mesh reinforcing prices should hold steady in October and November.

Although polyethylene sheeting manufacturers increased prices in early September, due to their increased resin costs, the price increase did not hold, as demand remained weak and manufacturers lowered their prices back to August levels. Most manufacturers have indicated that they will increase prices by 5% in early October to try a recoup their increased costs for resins, however; unless there is an uptick in demand, most analysts do not expect the increase to hold.

Waterproofing, joint sealant, and caulking manufacturers continue to increase prices this year. Pecora Corporation, following Tremco’s lead in September, announced a price increase effective October 15th. They will increase prices by 5% on silicones, 3 to 5% on urethanes, and 5% on acrylic latex caulking and joint sealants. Other manufacturers are expected to increase their prices soon, so factor in these increases on any projects you are bidding.

The August PPI tables have been updated. Click here to view PPI data.

This month we are featuring the following three 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.
  • Wire-Bond is one of the oldest and most innovative manufacturers of all sorts of masonry reinforcement products. They are constantly innovating and coming up with new ways to save you time and money on your masonry jobs. Check out their ad below. All of their products are available from any of our branches.
  • 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, see below for information on their new Poly-Wall product.

This month's management article is entitled, Accountability: Sharpening Your Competitive Edge to Develop Loyal Customers. In this economy we all need to do whatever we can to inspire loyalty from our customers.

In closing, I wish I had better news to report but frankly, at this time I don't. I think we all need to continue to hunker down and plan on riding out the storm for the foreseeable future.

Best regards,

Jim

Jim Sobeck President 803-451-7035 jim.sobeck@newsouthsupply.com Connect with us: Twitter | Biz 101 Blog | Facebook | LinkedIn

This month we are featuring the following suppliers:

Click the picture above to download the full PDF version of this ad.


September's Management Article

Accountability: Sharpening Your Competitive Edge to Develop Loyal Customers

By Walt Zeglinski

In today's highly competitive business climate, most successful companies are finding new and creative ways to win business. By building customer-centric business plans and increasing their commitment to company-wide execution, they've managed to succeed in a turbulent economy. Most of all, they've discovered they simply cannot afford to make mistakes in their customer relationships. They strive to "out-execute" the competition in every aspect of their business that touches the customer. These organizations understand that the key to creating loyal customers is building a culture of accountability.

Most of us have heard the stories of accountable employees who have made a difference – the 911 dispatcher that stays on the phone and calms a caller until the EMT arrives or the jewelry clerk in a department store that helps a customer to pick out a new dress. Unfortunately, there are far more employees that do not share this commitment to customer accountability and, as a result, fail to deliver on their goals.

Organizations that foster accountability run like well-oiled machines, as people and processes work in lock-step to achieve more predictable and profitable results. I'm not referring to the sort of organizational accountability that focuses on catching employees doing something wrong. Rather the kind of positive accountability that is combined with high levels of employee satisfaction – as individuals are enabled with the right resources and management support. From the outside, these organizations appear to have some magical formula that helps them win even as others are struggling to stay in the race. We have found three keys to creating a culture of customer accountability – exceptional leaders, process discipline, and workforce engagement.

Setting a Direction
Establishing a customer-accountable culture starts with developing exceptional leaders. They are the navigation system that guides employees toward the finish line. These leaders have a foundation of management expertise that can maximize the talents of their teams as they keep them focused on their customers. Fifty years of client research has led us to six job functions that are critical for exceptional leaders – communicating, planning, organizing, controlling, staffing, and leading. Leaders who are effective at these functions consistently elevate the performance of their people.

Transforming leaders from average to exceptional requires they get beyond their perceptions of their abilities. Managers who understand the impact they have on others have been given a unique gift. In our experience, "feeling" the perspective of others is a significant catalyst for getting managers committed to improving their skills, attitudes and beliefs. Gaining this realistic perspective can be transformational. Unfortunately, many managers subscribe to the adage "if it ain't broke don't fix it", content to continue with the management practices that have allowed them to be successful in the past. But when market conditions are constantly in flux, leaders must be exceptional. They must find new and better ways to improve performance.

Doing Things Right
Process discipline is the fuel that accelerates customer accountability. Leaders who hold their teams accountable for exceeding customer expectations establish a systematic approach to monitoring progress and taking corrective action. This typically involves a regular, top-down examination of goals and tasks, enabled by a plan for overcoming obstacles to success. But a consistent methodology is not enough if there is not a clear understanding of the importance of customers to accomplishing key business drivers. Identifying and planning to execute on these "vital few" is the key to energizing employee commitment to individual, departmental and corporate goals.

In years past, many companies have been able to succeed because of great products and people. When markets get tough, accomplishing the same results requires more. A "flexible" approach to goal achievement can encourage mediocre performance. Process discipline drives accountability and insures success even in a turbulent economy.

People Make It Happen
Leaders who support employee development and clearly communicate goals enable workforce engagement. For many organizations it's the engine that drives accountability. When an individual feels leadership is aligned with their efforts to serve customers and understands the role they play in achieving the company's vital few, they tend to maintain their customer needs-focus. It helps them to show up for work on purpose and provide their employers with the discretionary effort that can distinguish them from competitors. An engaged employee views each customer experience as a "moment of truth" — an opportunity to deliver value and create another loyal customer.

Ultimately, workforce engagement enables commitment to excellence. When individuals understand how their dedication plays into the organization's broader goals, they see themselves as part of a team and work to better themselves to ensure the whole team wins. What's most interesting is how an environment of engaged employees can thrive, not only because it's a great place to work but also because it creates a vibrant, productive culture that delivers predictable and profitable results.

Customer-accountable cultures with exceptional leaders, process discipline, and an engaged workforce have the unique ability to establish a competitive advantage. Companies with an uncompromising commitment to leadership, process and people, by extension, are committed to their customers. Accountability makes customer loyalty possible.

New South Construction Supply Locations

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

Mail: PO Box 512 Columbia, SC 29202

Sales Manager - Jon Black 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 - Brian McCormick

1065 Bankhead Highway Winder, GA (Atlanta Market) 30680 Phone: 770.656.2772 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- Andrew Myers 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 Managers - Kearns Cheek, Angie Puckett

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

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 - Andrew Black Sales Manager - Steve Melton