May 2016 Newsletter

• The price for scrap steel posted up by $20/ton on the Chicago Metal Exchange on May 7^thand the price for scrap steel in the US is now $90/ton higher than it was in February. Polyethylene and polyolefin resin manufacturers were able to push through a $.05/LB price increase for May and have announced another price increase of $.04/LB for June.  Because of their increased costs for raw material, several manufacturers of products we distribute have increased prices recently or will increase prices in June.

• Several polyethylene sheeting manufacturers increased prices by approximately 5% in May, due to their increased costs for resins and those that have not increased prices are expected to do so by the first week in June. If resin manufacturers are able to get the $.04/LB June price increase, polyethylene sheeting manufacturers have indicated they will increase prices again by another 4% in late June or early July. If you have any projects that require polyethylene sheeting, we strongly urge you to buy out these projects as soon as possible.

• As resin prices increased in May, polyolefin under slab vapor manufacturers such as Raven Industries and Stego increased prices the last week in May by approximately 6%. If the June resin increase price increase holds, most manufacturers have indicated they will increase prices again in July. Be sure you buy out any projects you have which require polyolefin under slab vapor barriers to avoid paying even higher prices later this summer.

• Concrete reinforcing wire mesh prices have risen by approximately 11% since the end of March and another price increase is probable in July. The May wire rod price increase by both domestic and foreign mills held and several manufacturers have announced another price increase for June. If the June wire rod price increase holds, expect concrete reinforcing wire mesh manufacturers to increase prices by another 4 to 6% in July. As with polyethylene and polyolefin vapor barriers, we urge you to buy out any projects you have which require concrete reinforcing wire mesh as soon as possible.

• As was reported in our April newsletter, masonry reinforcing manufacturers were expected to announce a price increase for June. Both of the major manufacturers in the US, Wire Bond and Hohmann & Barnard announced they will increase prices on June 1^st between 12 and 15% depending on the type of masonry reinforcing. Orders placed prior to June 1^st must be shipped by June 30^th in order to be billed at current prices. If you are bidding any projects which require masonry reinforcing, be sure you get a current quote.

• Domestic rebar mills increased prices for the third time since mid-March on May 2^nd and 3^rd by $30/ton. Since early March, domestic mills have increased prices by $90/ton. May offerings for imported rebar for delivery in late August or early September remained at or about the same prices as they were in April, so at least for now, imported rebar prices seem to have stabilized, despite a modest increase in the price of scrap steel. Some analysts predict that Chinese billets and the price of scrap steel will increase in June. If they do, expect foreign rebar mills to increase prices in June and if foreign mills raise prices, expect domestic mills to increase their prices in June as well.

• The producer price index (PPI) for final demand in April, not seasonally adjusted, increased 0.1% from March but was flat year-over-year (y/y) from April 2015, the Bureau of Labor Statistics (BLS) reported on May 13. 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.

Our big news this month is that we have relocated our Atlanta area branch to a new location in the Atlanta suburb of Tucker. We are four miles south of the Jimmy Carter Boulevard exit off of I-85 and we are also close to I-285 and I-20 so we are easy to get to from most parts of Metro Atlanta. This is our biggest investment in a branch yet. We have five outside salespeople, a well-stocked showroom, and our largest rebar fabrication facility yet, by far. If you are based in the Atlanta area or do work in Atlanta be sure to check out our new facility. Below are a few pictures for your review.

Jim Morton

Our associate spotlight is on Jim Morton this month. Jim is a sales manager working out of our Garner (Raleigh) branch. Jim was born in North Carolina and graduated in 1988 from Northwest Guilford high school in Greensboro. He then graduated from Wingate University in 1992 with a degree in communications and a minor in business administration. He and his wife have two children, Conor and William, eight-year-old twin boys. In his spare time Jim still plays basketball and likes saltwater fishing, outdoor activities, and keeping up with his kids. Prior to joining us last November he was with Thomas Concrete for 16 years as a sales rep covering the Raleigh area and prior to that he was with Unicon concrete as a pit manager at their Garner location. Jim has been a great addition to our Garner team as his deep experience in the concrete business has already proved invaluable to our customers.

Our management article this week is titled, The Complete List of Toxic Behaviors that Poison Teams. Do you have any of these toxic behaviors on your team?

MAY’S MANAGEMENT ARTICLE

The Complete List of Toxic Behaviors that Poison Teams
By Dan Rockwell

Toxic behaviors connected to communication:

1. Assume silence is agreement.
2. Overstate teammate’s opinions and question their motives.
3. Sweep difficult topics under the carpet.
4. Speak for others. Begin sentences with “you” – you always and you never.
5. Polish terminology until the message is lost, obscure, and acceptable to everyone on the planet.

Toxic behaviors connected to lack of humility and disrespect:

1. Tolerate drifters.
2. Allow power-members to drone on and on.
3. Share your feelings without regard for others.
4. Make decisions in private meetings, before team meetings begin.
5. Fight for everything you want.
6. Don’t adapt, as a matter of principle.
7. Start over when late-comers arrive.
8. Interrupt each other.
9. Use sarcasm to put people in their place.
10. Refuse to admit you’re wrong and pretend you know more than you know.

Toxic behaviors connected to diversity and innovation:

1. Don’t mix genders.
2. Marginalize new members who don’t know that you’ve always done it that way.
3. Invite the same people to the table, year after year.
4. Explain why new ideas won’t work as soon as they are introduced.

Toxic behaviors connected to planning and execution:

1. Get lost in the weeds.
2. Don’t identify project-champions.
3. Don’t talk about purpose and goals.
4. Assume things won’t work and remind everyone when they didn’t.
5. Solve every problem and address every imaginable contingency before you try something.

Toxic behaviors connected to meeting agendas:

1. Don’t state the purpose for the meeting.
2. Write long agendas.
3. Deal with a few “quick” items before you address important topics. Don’t leave enough time for the big stuff.
4. Discuss, but don’t decide.

Four top tips for making teams work:

1. Identify the reason for the team’s existence.
2. Connect everything you do to the reason for the team’s existence.
3. Assign champions and establish deadlines for every project or initiative.
4. Monitor energy. When you feel energy going up or down, ask, “What just happened?”