The construction industry, beset by one of the biggest drops in employment in the current economic downturn, could be poised for a rebound under President-elect Barack Obama's expected stimulus package.
Mr. Obama hasn't offered details, but anticipating a surge in public-works spending, investors bid up construction and engineering stocks. URS Corp., a San Francisco-based engineering and construction company, rose 34%, global giant Fluor Corp. rose nearly 17% and Granite Construction Inc., a domestic engineering company, rose 22%.

Steven Fisher, an equity analyst for UBS in New York, said that 11 engineering firms he tracks had lost, on average, two-thirds of their market value this year through Friday as big construction projects were delayed due to state and local budget concerns. But Monday, share prices for that group rose by an average of 16%, far outperforming the broader market.

Stephen Sandherr, chief executive of the Associated General Contractors of America, a lobby for largely non-residential builders, said that a stimulus plan could "absolutely change the scenario for companies that have been talking about laying people off." His group's chief economist, Kenneth Simonson, noted that some 52,000 jobs in the heavy and civil engineering sector -- primarily highway projects -- have been lost in the past 16 months. Overall, construction had the highest unemployment rate, 10.8%, in October, he said.

As the housing market imploded, some companies that had focused on residential construction have been bidding on road projects, and bigger engineering firms have bid on smaller projects just to keep their work forces busy, industry officials said.

From highways to schools, state and local governments have been postponing approved construction projects in recent months. Assured funding would jump-start these projects. The American Association of State Highway and Transportation Officials, a group of state and local government officials, has a list of 3,109 "ready-to-go" highway projects that could break ground in 30 days to 90 days worth $18.4 billion.

Two former Clinton administration transit officials, Mortimer Downey and Jane Garvey, are among those spearheading transportation issues for the Obama transition. They have reached out to state and local officials to be ready for a spending package.

"What we've been told is to be ready, it's coming," says Christopher Ward, executive director of the bistate Port Authority of New York and New Jersey. His agency has several infrastructure projects in planning, including a new rail tunnel connecting New Jersey and Manhattan that is seeking federal funds. That project would create 6,000 jobs, according to Mr. Ward. "Clearly we have the construction capacity to get shovels in the ground."

Robert Murray, economist at McGraw-Hill Construction, says "the general criticism is, by the time these stimulus packages are passed and implemented, the economy is already coming out of recession. But given the prolonged slowdown expected in 2009, if this package passed early next year, it has potential to be helpful."

Russia delays wood duty hike

Russia will postpone a planned increase on export duties on raw timber by 9 to 12 months, Prime Minister Vladimir Putin said Wednesday according to Russian news agencies.

Nordic paper makers and the European Union trade chief praised the move, which came ahead of an EU-Russia summit Friday.

Russia had planned to raise the duties from 25 to 80 percent as of Jan. 1, adding to costs for Nordic paper companies.

"Considering the fact that reduction of exports from Russia could lead to production cuts at Finnish factories but could also have negative social consequences, the Russian government deems it possible to postpone an increase in customs duties by 9-12 months," Putin told Finnish Prime Minister Matti Vanhanen, according to Interfax.

Finland is one of the world's largest paper and wood product manufacturers and buys much of its raw material from Russia.

The wood duties have been one of the points which have kept Russia-EU trade talks in a stalemate. The European Commission have also previously said the timber duties could hamper Russia's negotiations to join the World Trade Organization.

EU leaders lauded Russia's decision to postpone the increase in tariffs. Sweden's Minister for Trade Ewa Bjorling described the decision as "gratifying."

"This breathing pause gives us space to continue the work to find a long-term solution," she said. "I see it as a great success, not the least for Sweden's and Finland's efforts during the negotiations," she said in a statement.
EU Trade Commissioner Catherine Ashton called the decision "a very positive move by Russia and a welcome result" of lengthy negotiations.”

Source: Natalaliya VasilYeva, AP

The Hardwood Plywood and Veneer Association is pleased to announce that they are offering enhanced services to meet product testing and certification program needs.  With the new California formaldehyde product emission standards for composite wood products (CARB) taking effect in January next year, and more related requirements in other environmental stewardship programs on the near horizon, HPVA is approved by California as a third party certifier.  For more information on CARB Formaldehyde testing visit HPVA’s website www.hpva.org.

At their Reston testing facility, they have made necessary upgrades in their pre-conditioning room to meet stringent, new requirements for zero background levels, added new DNPH analytical testing capability, and new small scale chamber capacity for QC testing.  This combines with almost 25 years of large scale chamber testing experience and thousands of desiccator QC tests conducted at the Reston facility to offer an unparalleled service provider.

Experience counts and HPVA has also completed the certification requirements for the International Accreditation Service (IAS) for ISO 65.  This builds off the IAS accreditation for the fire testing that has also been a mainstay of HPVA’s testing and certification program.

The Reston facility has sufficient capacity to meet the testing needs of both association members and non-members of the association with testing facilities on both the East and West coasts.

HPVA continues to offer fire and flame spread and physical performance product testing.  Visit them at: www.hpva.org or call 1-703-435-2900 for more information and prices.

First presented in 1980, the NAWLA Mulrooney Award has been given to 28 individuals for exemplary service to the North American forest products industry and the community at large.  Award recipients are people who exemplify the highest standards of honor, integrity, innovation, activism, community service, leadership and like qualities within the industry. The award is dedicated to the memory of John J. Mulrooney, 1916-1979, whose 20 years of distinguished service as executive vice president of NAWLA helped turn NAWLA into a viable and potent force in the lumber industry.

The NAWLA Mulrooney Award is presented at the NAWLA Executive Conference in April.

The award itself is magnificent, hand-crafted eagle carved from the most precious of woods, symbolizing the freedom, basic to North America, that each of its recipients has exercised in pursuit of the highest values of family, country, and business.

More information and the nomination form can be found on the NAWLA website at www.nawla.org.

If you did not attend the 2008 NAWLA Traders Market® – November 6-8 – in Chicago, you certainly missed an historical event on many fronts.

NAWLA had it all in 2008 – Coach Mike Ditka, a CNBC Contributor, Bank of America and Euler Hermes (Canada) executives, complimentary tours of the Chicago Board of Trade building, experts on SFI® and FSC Chain-of-Custody certification, nearly 1500 total full registrants and 289 exhibiting companies in the lumber, millwork, building products and wood products industry. What’s more is that NAWLA was nestled amidst a National election where Chicago was at its very best.

NAWLA pulled off a fantastic show especially in light of these difficult times when many shows are experiencing huge fall off. “From an exhibitor view, I could not ask for much more. The number of wholesaler aisle traffic was fewer, however, the people were actual purchasers or Managers from large companies. We were very impressed! My hats off to NAWLA for pulling off an extraordinary event during these economic times,” said Jason Mann of AJ Forest Products.

This sentiment was repeated many times during the show where nearly 1500 people were in attendance,
500 people attended the pre-show educational and business programs and exhibit traffic was brisk.

For a photo recap of the 2008 NAWLA Traders Market®, please visit www.nawlatradersmarket.com

The results of the post-show survey will be published in the January 2009 issue of the NAWLA Bulletin.

Mark your calendars for future NAWLA Traders Markets®:
November 5 – 7, 2009 and November 4 – 6, 2010 at the Hyatt Regency on the River Walk Chicago

Thanks to a great wholesaler turnout at the NAWLA Traders Market®, Exhibitors were turning out in force and sticking with NAWLA through these tough times.

NAWLA can boast of nearly 1500 full registrants and 289 exhibiting companies in 2008. The NAWLA Traders Market® continues to be the show for the wholesale industry in lumber, millwork and building material interaction.

For a photo recap of the 2008 event and for a complete list of NAWLA Exhibitors, please visit www.nawlatradersmarket.com

The NAWLA Meetings Committee has planned a total of six NAWLA Regional Meetings for 2009. There is no better time than now to band together with your regional community, to discuss local issues facing your company and colleagues and to educate yourself and your staff. At $89 / person for a reception, dinner and top-notch speakers, you cannot afford not to attend one of NAWLA’s regional events.

Meetings are currently planned for: Statesville (NC), February 10; Birmingham (AL), February 19; Portland (OR) March 31 (tentative); Vancouver (BC), April 2; Boston (MA), April 2009; and Southern California, May 2009. Support your local area by attending.

For the details on an event near you, please visit NAWLA’s Website at: http://www.nawla.org/meetings/regional/events.asp

Join NAWLA at 11:00 am CT / Noon ET on December 16, 2008 for the final Webinar in our 2008 series.  James Olsen – President of Reality Sales Training, Inc. in Portland, Oregon – will teach you the The Four Personality Types and How to Sell to Them.

Register now at $89 / logged on computer by visiting NAWLA’s Website at http://www.nawla.org/education/webinars.asp

What will be covered in the Webinar?

Why won’t my customer talk to me? Why won’t they open up to me? Our industry is built on relationships, but we can’t begin to build relationships with customers if our approach puts them off. To sell, manage and lead we must understand the following the four personality types – Drivers, Expressives, Analyticals and Aimiables. You also must know the following:

1. What our personality type is? – Tells us how we affect others with our general approach
2. What is the personality type of our customers? – Tells us how they are affected by others and which approach works best for them!
 

Who is James?
James Olsen of Reality Sales Training spent twenty years selling in the lumber industry and now works with companies nationwide in our industry to increase their sales. If you would like to connect better and faster with your customers, then this NAWLA Webinar is for you!

James Olsen sold for 20 years, with Nike, North Pacific Lumber and Forest City Trading Group. James continues to sell everyday. For much of the time James was selling, he was also training new sellers how to succeed. Over time he developed a system for training salespeople that works.

In 2001, James left trading to start his own sales training business, Reality Sales Training. James bottom line approach to sales training is designed to give you and your sales team immediate results. Profitability, teaching, learning and winning are James' passions. He is author if Selling Lumber: Sales Secrets of a Lumber Broker. For further information on James and his services, please visit http://www.reality-salestraining.com/

Welcome NAWLA’s newest members for the month of November

A recent agreement between BMD, Inc. and LP makes BMD the definitive distributor for LP brand Engineered Wood Products for Southern California.

BMD, Inc. will carry the full line of Louisiana Pacific EWP products at their Riverside, California  distribution center including LP SolidStart® I-joists, Laminated Veneer Lumber, Rim Board and Laminated Strand Lumber.

SFI® Launches New Blog

After 30 years of extensive research, Purdue's Forestry and Natural
Resources Professor Dan Cassen has released a new CD Lumber from
Hardwood Trees. It is a fact-filled resource of field research and
information that thousands of people have shared with Dan over the
years.  

Enjoy over 30 years of knowledge with Dan Cassens, Professor of Forestry and Natural Resources, Purdue University, on 35 of the nation’s popular hardwood trees. Whether you are weekend wood craftsman or seasoned sawmill operator, this CD will be your resource of hardwood tree information.

This comprehensive CD(CD-FNR-406) on hardwoods covers the following:

• Tree Species: Ash; Aspen; Basswood; Beech; Birch; Black Cherry; Black Gum; Black Locust; Black Walnut; Boxelder; Buckeye; Butternut; Catalpa; Chestnut; Coffeetree; Cottonwood; Dogwood; Elm; Hackberry; Hard or Sugar Maple; Hickory; Holly; Honey Locust; Magnolia; Mulberry; Osage Orange; Persimmon; Red Oak; Sassafras; Soft Maple; Sweetgum; Sycamore; White Oak; Willow; Yellow-Poplar
• Decay Resistance: Learn the decay properties of various hardwood species.
• Mechanical Properties: Learn about different properties of various hardwood species.

• The Production Process: See how hardwood lumber is processed from start to finish.
• Purchasing and Selling Hardwood Lumber: Learn who to contact when you are buying or selling lumber.
• Shrinkage: Learn how much lumber can shrink and expand due to relative humidities.
• Steam Bending: Ability of different woods to bend
• Understanding Lumber: Learn different characteristics of hardwood lumber, terms and definitions, and sawing techniques.
• Wood Machining: Find out how different hardwood species respond to planing, shaping, turning, and boring.

This CD is dedicated to the thousands of companies and individuals Dan has met and shared knowledge with at numerous events and workshops over the years.

The U.S. Green Building Council, which recently held its annual GreenbuildConference & Expo in Boston, made two key announcements regarding its LEED and LEED-Neighborhood Development programs. 

The organization announced that LEED 2009, the update to its flagship, commercial LEED green building rating system, passed member ballot and will therefore become the certification program’s latest iteration next year. Among the changes are the additions of regional credits that will provide extra points for elements identified as priorities in a project’s geographic area and a scientific re-weighting of credits designed to reflect climate change and energy efficiency as priorities. 

The USGBC’s LEED-ND, aimed at green neighborhood design and development, opened for public comment yesterday following a nearly two-year pilot program. Comments will be accepted until Jan. 5.

A Survey of Sales Organization Practices by DePaul University, College of Commerce, Center for Sales Leadership reveal that in academics and business, there is little substantial and reliable research conducted on the state of the sales organization on an ongoing basis which can be used by educators and practitioners to provide benchmarks in their programs.  The Center for Sales Leadership faculty has developed a repository of ongoing research into the attitudes and behaviors of a broad range of target respondents.
For the full Benchmarks in Sales Productivity 2008 report click here.
Key findings in our 2008 survey include:

• Average sales force is 69% male and 76% Caucasian
• Cost of Hire averages $27,700
• Investment to break even averages $43,000
• Turnover (22%) cost averages $35,000
• 75% of firms compensate on base plus commission systems
• Average compensation of top performers is $101,900
• Only half of firms provide leadership training

Training fails when behaviors not reinforced and tie to benefit

Benchmarks in sales Productivity 2006

For the full Benchmarks in Sales Productivity 2006 report click here.
Key findings in our 2006 survey include:

• Average sales force is 70% male and 80% Caucasian
• Only 35% of firms report a formal training program, averaging less than 45 days, for new hires
• Firms average only 3.5 hours interviewing candidates prior to hire
• Training at most firms omits important skills such as – technology, CRM, team selling, critical thinking
• 76% of firms compensate on base plus commission systems
• Sales compensation of high performers is double that of an average producer – quadruple that of a poor performer
• Over 25% of firms report a turnover in their sale force of greater than 20% annually
• Firms estimate that every sales force turnover costs $68,000, excluding the cost of lost sales
• 70% of turnover occurs in the first two to three years of employment

Source: Dave Hoffmeister
Director Emeritus
DePaul University
Center for Sales Leadership