09 Jun February 2017 Newsletter
The warmer and dryer than usual weather in February has been quite favorable to the construction business. As I write this it is 73° in late February and construction in the South is booming. The slight uptick in interest rates hasn’t hurt the construction business but several developers I know tell me that getting financing for multifamily construction has tightened considerably because many
Dear Friends:
The warmer and dryer than usual weather in February has been quite favorable to the construction business. As I write this it is 73° in late February and construction in the South is booming. The slight uptick in interest rates hasn’t hurt the construction business but several developers I know tell me that getting financing for multifamily construction has tightened considerably because many banks believe they are overexposed in this sector. There is still a lot of demand for multifamily construction so some nontraditional lenders are making inroads in this area. I believe that when demand exceeds supply American entrepreneurs find a way to get the financing to construct their projects.The continuing boom in construction continues to have a negative byproduct: price increases. For a detailed look at price increases announced for our major product lines just scroll down.
- After the price for scrap steel increased for three consecutive months, beginning in November, scrap steel posted down by $22/ton on the Chicago Metals Exchange on February 8th. Resin manufacturers increased prices in February and have announced another price increase for March. Prices for other raw materials used in construction products that we distribute continued to rise in January. As a result of these increased costs several manufacturers of products we distribute increased prices or announced price increases in February.
- The three manufacturers of extruded polystyrene insulations, Dow Building Solutions (Styrofoam), Owens Corning (Foamular), and Kingspan (GreenGuard) announced that they will increase prices in March by 8%, due to higher resin cost. All will limit the amount of insulation that can be purchased by distributors from the date of their price increase announcements in February. If you have projects which require extruded polystyrene insulations we strongly urge you to buy out these projects as soon as possible.
- Polyethylene sheeting manufacturers announced that they will increase prices by 7-10% on March 1st due to their increased cost for resin and rising manufacturing costs. If the March resin price increase sticks, polyethylene sheeting manufacturers have indicated they will increase prices again in April. If you have any projects which require polyethylene you should consider buying out these jobs as soon as possible.
- Sonoco Products, announced they will increase prices on Sonotube column forms by 8% effective March 1st. Increased costs for paper and transportation costs was cited by Sonoco as the reason the price increase.
- The Euclid Chemical Company announced on January 23rd that they will increase prices on all cement based products by 5% effective April 1st. Prices for all other products will be unchanged.
- SpecChem, LLC will increases on selected products on March 9th and prices for some products will be unchanged. The amount of the price increase will vary by product and will be between 2 and 5%.
- Due to rising resin and other raw material costs, Carlisle Coatings & Waterproofing will increase prices on all Miradrain drainage products and accessories by 4% on March 13th. They will also increase prices for R2+ insulation products by 7%.
- Several manufacturers of polypropylene drainage and stabilization fabrics announced price increases of 11 to 18% in February. The effective dates of the price increases vary by manufacturer, but all will increase prices by the first week in March. Consider buying out any projects you have for these products as soon as possible to avoid paying substantially higher prices in the future.
- Mar-Mac, Inc. announced on February 7th they will increase prices on their Premium Building Products (domestic) wire products by 2% on March 6th. Items included are tie wire, merchant coils, and bar ties.
- Effective March 1st, dee Concrete Accessories will increase prices by 3% on all straight forms, curb and gutter forms, and accessories. Other manufacturers have indicated they will increase prices in March as well by a like percentage.
- Prices for southern yellow pine dimensional lumber and plywood have increased each week since the first week in February and analysts expect this trend to continue into March and April. Backlogs at most lumber mills in the southeast are the highest they have been in several years and lead time for mill direct trucks is now 3 weeks. We recommend you buy out any requirements you have for SYP lumber and plywood as soon as possible to avoid paying higher prices in the coming weeks.
- As the price for scrap steel posted down in February, domestic rebar mills have indicated there will be no price changes for March orders. Prices for shipments of imported rebar that will be delivered to ports in the southeastern US in late March and early April will be 4-5% higher than they are now. If you use imported rebar on any of your projects you should consider buying out your requirements in early March.
- The producer price index (PPI) for final demand in January, not seasonally adjusted, increased 0.5% from December and 1.6% year-over-year (y/y) from January 2016, the Bureau of Labor Statistics (BLS) reported on February 15. AGC posted tables and an explanation focusing on construction prices and costs.
Click here for the latest update on the construction economy from Ken Simonson, the chief economist of the AGC.
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Jeanette Brezeale
Our associate profile this month is of Jeanette Brezeale, accounting manager at our main office in Greenville, SC. Jeanette is originally from New Orleans where she graduated from John Ehret High School. After high school she spent five years in the United States Navy with a final rank of Petty Officer Second Class. Prior to joining us she worked for three other building products or construction companies so she has a deep background in our business. She has an Associate of Arts degree in Business and is actively pursuing a Bachelor’s Degree in Accounting at Liberty University. She and her husband, Jared have sons Jonathan (18) and Miller (11). Jeanette started with us in June, 2016 and has made a big impact in our accounting department. We are proud to have her on our team.
Our management article this month is Three Secrets to Giving Corrective Feedback. Some managers, especially new managers, can make a problem worse by not giving corrective feedback in the proper fashion. This article has some great tips on how to do this effectively.
Our big news this month is that we have relocated our Greensboro area branch from Colfax, NC to Greensboro, right next to the airport. Our new address is:
7207 Cessna Dr., Greensboro, NC 27409. Our phone number remains the same as Colfax: (336) 992-0237. This is our biggest branch yet with over 40,000 square feet under roof across three buildings sitting on 3.4 acres. We are significantly increasing our inventory in Greensboro and we will be opening a rebar fabrication shop for the first time in this area. We will also have a shop to coat R-10 insulated panels required under slabs and on the outside of basement walls in certain northern counties of North Carolina and southern Virginia. We are very excited about this facility and we hope that you are as well. Below are a few pictures that will give you an idea about the size of this branch.
FEBRUARY’S MANAGEMENT ARTICLE
Three Secrets to Giving Corrective Feedback
By Dan Rockwell
#1. Provide abundant positives:
In a recent workshop, one leader asked, “How can we maintain the practice of giving three positives for one negative? I suggested that he show up every day looking for behaviors to affirm. Don’t worry. The bad stuff will find you.
One leader prints business cards with, “You are ‘Incredible’,” on the front. He writes the affirmation on the back and hands it to team members. He’s averaging two a day.
“Employees who report receiving recognition and praise within the last seven days show increased productivity, get higher scores from customers, and have better safety records.” -Tom Rath
#2. Choose a ‘good’ moment:
Timeliness is more important than the perfect moment. The longer you wait the less useful and more difficult the conversation becomes.
Wait for a ‘good’ moment, not a perfect moment to give corrective feedback.
When you wait too long it feels like you’re gathering evidence for a conviction. It’s also embarrassing. “Why did you let me walk around with food in my teeth for two weeks?”
#3. Tear the bandage off quickly:
“If you have an important point to make, don’t try to be subtle or clever.” -Winston Churchill
Don’t judge. Just say what you see. “I notice that you….” After saying what you see, explain the impact of their behavior.
Don’t:
- Socialize.
- Discuss other issues.
- Begin with compliments. An affirmation given before corrective feedback goes in one ear and out the other.
That’s it for this month. Were excited about how 2017 is unfolding for us and we trust the year is starting out well for your company too. As always, never hesitate to let me know how we can better serve you.
Best regards,
Jim Sobeck
President 864-263-4377
jim.sobeck@newsouthsupply.com
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Author of The Real Business 101: Lessons From the Trenches
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