June 2009

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Becoming a Regional Meeting sponsor helps NAWLA keep costs down for Regional Meetings and obtain better speakers and provide better programming during the event.

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Blue Book Services on Schedule to Launch lumberbluebook.com

Blue Book Services, NAWLA’s Recommended and Approved Service Provider for industry specific credit information will be ready to launch their credit information resource this summer. The full blown online tool is now at the beta testing stage where select companies log onto the site and fully test all options and tools to ensure a satisfactory and valuable resource.

The online offering will enable users to search for companies as a prospecting tool, obtain credit ratings and information on potential new customers, track pay history and use the numerous other tools and options the site will offer.

Those companies who have not yet logged onto lumberbluebook.com to verify existing data on their company and submit information are urged to do so a.s.a.p.  This can be accomplished now by visiting http://www.lumberbluebook.com, clicking on the “submit your company data tab,” and following the instructions.

NAW Smartbrief

 
House Panel Discusses Forests, Biomass Energy

A House Agriculture subcommittee conducted an oversight hearing on June 3 examining the future of the nation's forest policy, hearing from the new Administration and several private sector witnesses. Many subcommittee members said that the nation's forests should supply more biomass energy, and criticized the definition of renewable biomass both in the existing Renewable Fuel Standard and in the Climate bill recently approved by the House Energy & Commerce Committee.

In his first hearing in his new position, Agriculture Deputy Undersecretary for National Resources and the Environment Jay Jensen suggested that the Forest Service and USDA would play a leadership role in “balancing sustainable wood products and the biomass industry which helps restore healthy ecosystems.” Jensen acknowledged that the agency must make efforts to help sustain the existing wood products infrastructure, saying “loss of strategic infrastructure only makes more difficult the task of managing these forests.”

Several members of the subcommittee questioned whether changing the federal definition of what qualifies as "renewable biomass" would help reduce the threat of wildfires by allowing hazardous fuels from forests to be used as biomass for energy production. When asked by subcommittee ranking member Jeff Fortenberry (R-Neb.) whether the new administration would be open to expanding that definition, Jensen said, "It's safe to say that the secretary feels that a really narrow definition would not be helpful to that goal," although he stressed that the development of bioenergy supplies must be done sustainably.

The Subcommittee also heard from a Tree Farmer, the President of the Society of American Foresters, Mississippi Forestry Association, and Jim Neiman, President of Neiman Enterprises, the second largest purchaser of federal timber in the country. Neiman noted that overall lumber consumption is expected to bottom out this year, down more than 50% from its 2005 peak. Neiman stressed the need to improve the definition of biomass, but also to take steps to improve the housing market.

American Forest and Paper Association – ForestResources – June 8, 2009

NAW SmartBrief - Bloomberg

 
 

NAWLA Search for New President and CEO

Since the departure of their previous president and CEO in early March, NAWLA has been forging ahead with many new programs and initiatives.  The search is now under way to fill the position.

A search committee made up of five NAWLA members of varying backgrounds has crafted a job listing advertisement for the open position. The committee hopes to have the new President and CEO in place sometime prior to the NAWLA Traders Market in November.

 

Are you a visionary?  Do you seek a challenge?  Are you interested in bringing NAWLA
to a Global landscape?  If so, this opportunity is for you.

President

NAWLA has over 650 member companies who collectively sell over $30 billion annually.  Reporting to the Board of Directors, the President will be a part of a dynamic group of entrepreneurs and will be responsible for growing the membership of the association from its North American base to a Global base.

The President must have the following expertise:

  • Implementing strategic plans
  • Building and motivating strong teams
  • Providing value to association members
  • Effective communication skills with a focus on public speaking
  • Strong business acumen with an entrepreneur aptitude
  • Lumber industry knowledge/expertise

 

If you are interested in this exciting opportunity, please submit your resume and cover letter to:

Bloch Lumber
c/o Deanna Klyczek
123 N. Wacker, Suite 1350
Chicago, IL  60606
or email deannak@blochlumber.com

 

North American Wholesale Lumber Association

Headquartered in Suburban Chicago, NAWLA is an international trade association of over 650 leading forest products and building material wholesalers, manufacturers and industry affiliated companies.

 All resume submissions will be held in the strictest confidence.
 
 
BMHC files for Chapter 11

Early Tuesday morning, June 16, Boise, Idaho-based BMHC announced that it filed a plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code.  BMHC will reduce its outstanding funded debt, establish a new revolving credit facility and lower annual interest expenses once the plan kicks in.

In a statement released this morning, the company said it "plans to continue to operate as usual while it restructures its balance sheet and will honor all of its commitments to customers.  All of the company's locations are open today and are continuing to serve customers in the normal course."

The move punctuates a difficult period for the pro dealer that seemed to rise and fall with the fate of the biggest builders.  In the first quarter of 2009, the company posted a net loss of $45.2 million, compared with a $33.9 million loss in the same quarter of 2008.  For all of last year, the company reported a net loss of $215 million.

The company, which ranked fifth on the 2008 Home Channel News Pro Dealer Scoreboard, closed 42 outlets and consolidated 15 locations last year.  In fiscal 2008, BMHC had sales of $1.3 billion.

BMHC pointed to commitments for $80 million in debtor-in-possession financing.  The agreement with lenders, plus "the fact that our new financing is coming from existing lenders, is a sign that our business partners have confidence in our strength as a company and our long-term potential," said chairman and CEO Robert Mellor.

Of the $80 million in DIP financing, $40 million will be immediately available to the company upon interim court approval.  That figure represents an incremental increase in availability of $20 million from the company's current $20 million revolver.  The full $80 million will be accessible to BMHC upon final court approval.  The company said it expects the new financing to provide ample liquidity to meet its ongoing obligations to employees, customers and suppliers.

Attached to the announcement -- titled " BMHC Reaches Agreement With Secured Lender Group on Plan to Restructure Balance Sheet" -- was a list of business risks.  Among them:  "substantial doubt about our ability to continue as a going concern;" "losses of customers as well as changes in the business models of our customers may limit our ability to provide building products and construction services;" and "intense competition."

But the company's prepared statement had a far more positive slant.  Mellor said he was "very pleased" to reach the agreement with the bank group.  The CEO added: "Importantly, this agreement caps a series of actions we have taken to aggressively respond during this unprecedented housing downturn.  By lowering costs, aligning our expense structure with reduced demand and selectively scaling back our presence in non-core markets where the prospect of recovery is years away, we have made BMHC a leaner, more competitive company."

Home Channel News


  Temperate Forest Foundation monthly newsletter, Click Here  
 
Correction

Please note that NAWLA inadvertently missed listing PLS Logistics Services as an official exhibitor at the 2009 NAWLA Executive Conference at the Loews Lake Las Vegas in Henderson, Nevada.  For further information on PLS Logistics Services, please visit www.pghlogistics.com

Mark Your Calendar!  NAWLA Educational Programs in 2009

A slower market is a better time than ever to “sharpen the skills” of your staff! Join us for one or more of the upcoming 2009 NAWLA events

NAWLA Webinar – Complimentary
Lumber Blue Book: How Will It Benefit Me?
Presenter:        Blue Book Services (NAWLA’s recommended and approved service provider)
Date:                Thursday, June 25, 2009
Time:               11:00 am CT / Noon ET
Register Here!  http://www.nawla.org/pdf/BlueBookWebinar6-25-09.pdf

NAWLA Webinar
North American Wood Panels Industry – An Economic Outlook
Presenter:       Greg Lewis, Vice President, Wood Products, RISI
Date:               Thurs., July 16, 2009
Special Rate:  Only $59 / logged on computer
Register Here!  http://www.nawla.org/education/RISIWebinar7-16-09.pdf

NAWLA Webinar
North American Lumber Industry – an Economic Outlook
Presenter:       Paul F. Jannke, Senior Vice President, Wood Products and Timber, RISI
Date:               Wed., Oct. 7, 2009
Time:               11:00 am CT / Noon ET

NAWLA Wood Basics Program
Salbasgeon Suites & Conference Center
Corvallis, OR • September 14- –17

NAWLA Traders Market®
Hyatt Regency Chicago Regency
Chicago, IL • November 5 – 7

For further information on the above offerings, please contact NAWLA at 800-527-8258 or 847-870-7470.

 

 
NAWLA Wood Basics Course

September 14-17, 2009 • Corvallis, OR
NAWLA is returning to the Pacific Northwest this fall with the 38th NAWLA Wood Basics Course.  This course is ideal for individuals who are new to the lumber and wood-related products industries.  Modules on Forest Ecology and Silviculture, Dimension Lumber, Engineered Wood Products, Structural Panels, Lumber Manufacturing, Grading, Wood Alternatives, Marketing, Sales and Transportation & Logistics will be taught by nearly a dozen different instructors.  And, there’s more

Three Tours in 2009!
The signature, off-site tours include three excursions in the Willamette River Valley.  Students will begin the week with a tour of nearby Starker Forest Lands & Education Center in Philomath.  The tour includes a peek at a harvesting operation (off-trail), ¼- mile hike (on-trail), and species identification.  For further information on Starker Forest Lands, please visit www.starkerforests.com

On Wednesday, students will journey to Eugene to see Zip-o-Log Mills – a “specialty timbers” sawmill that produces 100 percent Douglas Fir products, including 52-footers.  For further information on Zip-o-Log Mills, please visit www.zipolog.com

A final tour of Rosboro in Springfield will afford students a first-hand look at three operations – sawmill, plywood plant and engineered wood plant – all at one location.  For further information on Rosboro, please visit www.rosboro.com

If you have questions, please contact NAWLA at 800-527-8258 or at 847-870-7470.  Visit www.nawla.org for the most up-to-date information.

 

 
  Registration Open: NAWLA Traders Market®

It’s hot off the presses!  The official brochure for the 2009 NAWLA Traders Market®
should have arrived in your mail boxes in early June.  Register NOW!  At $399 for Members and $699 for Non-Members, you will not find a better deal.  Your NAWLA Traders Market® and NAWLA Education Committees have worked diligently to provide you with top-notch events and outstanding speakers in 2009.

You won’t want to miss networking with fellow industry professionals in addition to the below “Schedule Highlights.”  For a complete schedule, please visit www.nawlatradersmarket.com

CME Group Excursion – See the Chicago Board of Trade (CBOT) building and trading floor.  Additional sign-up is required.

Thursday General Session with Rick Grandinetti of Succeed Inside the Box

NAWLA Magellan Club Luncheon & Program – Expanded Format
Additional sign-up is required.

Thursday afternoon Education: Winning Strategies for an Evolving Channelwith Dr. Adam J. Fein of Pembroke Consulting, Inc.

Friday morning Education Double Offering:
Lumber Blue Book: Helping to Manage Credit Risk for Your Company
with Blue Book Services (NAWLA’s recommended and approved service provider) and
     
Green Products: Labels, Building Standards and Selling for the Lumber Industry with John D. Wagner, Green Product Consultant & Trainer

Grand Opening Luncheon Friday – Entertainer – Frank Miles

Reserve guestrooms at the Hyatt Regency Chicago by calling 312-565-1234 or 888-421-1442.  Online reservations are available at www.nawlatradersmarket.com

 
 
     

 
 

T.W. Hager Lumber Company to Close

The T.W. Hager Lumber Company and its affiliated brands, including The Hager Group, a leading provider of lumber and building materials providing value added services to retail and industrial markets, announced that the company will cease operations.  All assets, including machinery, real estate and inventory, will be liquidated.  "We are deeply disappointed that it has come to this, but with market and industry conditions being what they are, it has become impossible for us to continue operations at this time," said Gary Vitale, CEO of Hager. "Over the next several months we will work with our customers to transition them to alternate sources as we begin shutting down operations."

According to Vitale, a combination of factors led to the decision to cease operations including the simultaneous downturn of the financial, housing and lumber industries.  "We have explored all of our options and unfortunately for employees and loyal customers of Hager, we have determined that this is the only possible path left for this company at this time," said Vitale.


 
  Green Buildings - What Are They?
Ten years ago any reference to green in the building construction industry would have translated to either profits or to the color of the countertops. Today, however, "green" is ......Read more

Green Home Builders Facing New Economic Reality

It may be one of the worst times in history to be a home builder, but the green home market is expanding despite the downward trends of the market as a whole.

Not yet Expired : expiry date is 6/3/2099 10:37:00 AM
High-performance builder Ferrier Custom Homes, in Ft. Worth, Texas, is having a record year despite the fact that the economy has been tough on some clients.
Photo Credit: Courtesy Ferrier Custom Homes
Super-tight lending standards, dwindling buyers, the stock market crash, and a global recession have made this one of the worst times in history to be a home builder.

“The market is devastated all across the country, across the board: single-family, multifamily, remodeling, and even low-income, every sector has been affected,” according to Carlos Martin of the NAHB.

Green building pros have not been spared from economic gloom, says Martin, assistant staff vice president for construction, codes, and standards:  “It’s disingenuous to act like there is not any bad news for green builders.”

Nevertheless, many green pros are finding an upper hand that’s helping them survive the market, and some are even thriving due to increasing demand for eco-friendly dwellings, new funds for green public projects, and passage of the $787 billion federal economic stimulus bill.

Business at a Standstill
In some markets, green builders and architects report business is at a near standstill.  Home buyers battered by the stock market crash have put their sustainable projects on hold indefinitely.  Even with new government tax credits and rebate programs and the promise of lowered utility bills, many cash-strapped homeowners are hesitant to spend money on energy-efficient remodeling projects.

Like traditional builders, green pros are laying off coveted employees, in some cases even family members.

In an ironic twist, regions that have been on the forefront of the green movement seem to be hit the hardest by the slowdown.  Green builders in California, Colorado, and New England are suffering more than those in other areas because the general construction market is doing so poorly, Martin says.  “Housing is always localized,” he explains.  “Even though in California you have heightened awareness of green building and remodeling, the housing market there has been devastated, so green is really struggling in places like that.”

San Francisco residential architect David Baker concurs.  “As a business, market-rate housing is close to dead right now,” says Baker, a partner of David Baker + Partners Architects. “Some long-term projects are still going through the approval process, but that’s pretty much it for the private sector.”

Even some non-profit affordable housing projects--which are almost always green--are being delayed due to California’s budget crisis, which has made it difficult to sell bonds and tax credits, Baker says.

Heather Ferrier of Ferrier Custom Homes in Ft. Worth, Texas, says the stock market decline had the biggest impact on her family’s sustainable-building business.  “We had clients who overnight were severely impacted by the plunge, which caused their home building plans to be postponed, in some cases indefinitely.”

In Denver, where housing starts are down 59% from a year ago, officials of Colorado’s 14-year-old green building program recently made a painful decision:  Built Green Colorado, one of the first programs of its kind in the country, stopped accepting home registrations June 1.  “We are facing an economy that is extremely challenging for us all,” said director Kim Calomino in a letter to members.  “The financial realities of today’s housing market force us to make very difficult decisions.  The HBA of Metro Denver has in fact reached one of those difficult decisions regarding Built Green Colorado:  Built Green Colorado cannot afford to operate under its current structure and in its current form.”

And late in May, Oakland, Calif.-based Michelle Kaufmann Designs shut down, a victim of deflated housing prices and the credit industry meltdown.  The closing of the company, a highly respected designer of pre-fab green homes, sent shock waves through the residential architectural community.  “Despite our best efforts, the financial meltdown and plunging home values have caught up with us,” architect Kaufmann wrote on the company blog.  “The recent closing of a factory partner as well as the gridlocked lending faced by homeowners has proved more than our small company can bear.”

Eco-friendly affordable housing projects are helping to keep David Baker + Partners, a San Francisco architectural firm, afloat. The firm has two such projects in the planning stages. “Without them our current situation would have been bleak,” Baker says.
Photo Credit: Courtesy David Baker + Partners
Silver Lining
For some green pros, in certain markets, there is a silver lining to all the bad news.  
For example, Ferrier says although some of her clients have had to deal with financial setbacks, others have recommitted themselves to building sustainable homes.  “For those individuals, the current market conditions have only refueled their passion to move forward with building sustainable homes,” she says.

Her company is proof that there are still financial opportunities in her Texas market for veteran green builders:  Ferrier Custom Homes is having a record year.  “The experienced green builders who have been doing this for a while--who know that green is more than just a fad,” are surviving and even thriving, she says.  “Those who are truly committed, and have established themselves as so, are riding it out.”

Chevy Chase, Md.-based Bethesda Bungalows also is riding the wave of interest in sustainable and energy-efficient homes.  The company is known for building small- to medium-sized green residences on infill lots in Washington, D.C.’s close-in neighborhoods.

While the market for spec homes has dramatically dropped, vice president Brad Beeson says the company’s custom home business is thriving.  “It’s been really busy - super busy,” he says.  “A lot of it is because that we are known locally as a green builder.  That has been really good for business.”

Even though customer interest in building high-performance homes has not waned since the economy turned sour, Beeson says financing is trickier now.  “We’ve had situations where deals were discussed 18 months ago, and when we finally get to the settlement table, sometimes it’s a different story with the bank,” he says.

Other Ways to Survive
Some green pros are staying afloat with public-sector projects.  Baker says his firm is working on green affordable housing complexes funded by the California Department of Housing and Community Development’s Proposition 1-C bond program.  “Without them our current situation would have been bleak,” he says.

On the federal front, the $787 billion economic stimulus bill is expected to create jobs for insulation contractors, window installers, and other pros whose work involves making existing homes more energy efficient.  Two provisions that offer tax credits to homeowners for energy-efficient upgrades and pay to weatherize the houses of low-income families could spur an estimated $6 billion of activity in the remodeling industry, according to congressional estimates.

The NAHB’s Martin says green remodelers are on track to benefit from these programs, but it will take a while to get them up and running.  Many technicalities have yet to be worked out for the weatherization program and consumer interest in rebates has been lackluster.  “The problem is homeowners are still holding back because they don’t know if they can afford to do anything to their homes, even with the credits,” he says.  “But anything that helps spur interest in housing investment is a plus for builders and remodelers.”

Los Angeles-based Pardee Homes is banking on green’s appeal to help sell more houses, at every price point.  The company recently expanded its LivingSmart brand--a package of products and measures that boost energy efficiency, save water, and improve indoor air quality to include every price point and every market in which Pardee is building or developing master-planned communities.  The company’s research determined what buyers want in a green home and what they feel they can afford, according to president and CEO Michael McGee.  “Green programs must be tempered with feasibility in the production housing framework,” says McGee.  “We have maintained this dual focus since introducing our first energy-efficient homes and it has paid off with greener homes that are competitively priced.”

Other recent research bears this out.  In a recent McGraw Hill study, 40% of builders reported a marketing advantage from green homes during the current housing slump. More importantly, 70% of consumers said they would be more inclined to purchase a green home in a down market.

Analysts believe the green home market is expanding despite the downward trends of the industry as a whole. With a stronger construction market expected over the next five years, eco-friendly building is expected to see healthy growth, according to McGraw Hill’s 2009 Green Outlook. “We expect it to double over the next five years, to be worth 12% to 20% of all residential construction starts by value, or $40 billion to $70 billion,” the study’s authors say.

The future of residential building is uncertain for now, but most green pros say they are confident that once the market bottoms out, eco-friendly home building will help lead the industry out of its economic doldrums.

“Our market conditions did not end up like this overnight, and there won’t be a quick fix either,” concludes Ferrier. “We plan to keep at it, to keep doing what we’ve been doing, but with a new sense of urgency.”

By:  Jennifer Goodman


From:  ECOHOME 2009

Jennifer Goodman is senior editor for EcoHome online.

 

 
 

How to Find Cash Back for Building Green

Few buyers are willing to pay more for a green home. Bring costs down by taking advantage of rebates and incentives.

Although consultant Pierter VanderWerf believes builders should construct green homes (“It’s the right thing to do”), he told attendees at the NAHB Green Building Conference in Dallas there are few buyers willing to pay more, even though the houses cost 2% to 18% more to erect.  So, in order to bring the costs down--and increase the number of potential buyers--VanderWerf advises his developer clients to obtain cash back, up to $5,000, for building green.  The president of BuildingWorks in Chestnut Hill, Mass., said there are three major subsidies available for pros: federal tax credits, utility rebates, and trade association programs.  Homeowners also can qualify for utility rebates, energy-efficiency mortgages, and insurance discounts totaling thousands of dollars.

First, VanderWerf told attendees they need to at least build to the Energy Star for Homes standard, which he noted is not hard to achieve.  (Energy Star-rated homes must be at least 15% more efficient than a standard code-built house.)  VanderWerf, a former builder who constructed with insulated concrete forms (ICFs), admitted it will cost $400 to $700 to have the home rated, but that the certification will open the door to rebates and other dollars.  VanderWerf also noted that even though other national green certifications, like the National Green Building Standard and LEED for Homes, don’t come with rebates or discounts, they offer many intangible values.  They allow builders to have independent proof that their homes are green and to generate media coverage and other free publicity.

Federal Tax Credits
Building to the Energy Star standard, the presenter said, qualifies a home for a federal tax credit of up to $2,000 to the builder.  The tax credit is set to expire Dec. 31 for homes built and sold in 2009, but VanderWerf said he believes the Obama Administration will extend the credit.  VanderWerf noted that some states also offer energy tax credits to builders and to homeowners, and that your local Residential Energy Services Network Home Energy Rater (HERS) should know.

Local Utility Programs
Although there is a wide variation in these programs, VanderWerf said they usually pay the buyer or builder or both $150 to $1,500 for a home that meets a specified energy-savings requirement.  Typically, these programs reward dollars for overall efficiency or for specific features, like Energy Star-rated appliances or energy-saving construction techniques.

Most metropolitan-area utilities offer rebates.  If your local utility doesn’t, ask it to develop one, the consultant recommended.  One Kansas City, Mo., builder in the audience noted he and other area builders convinced one of their local utilities to start a rebate program, and after that, the other two area utilities followed suit.  VanderWerf mentioned that consumers who install solar energy systems, including photovoltaics and solar hot water heaters, qualify for a federal tax credit and often utility rebates.  But he said even with the incentives, the systems still may cost tens of thousands of dollars and be cost-prohibitive for most buyers.

Builders and their clients can find out more information about tax credits for renewable energies and energy-efficiency improvements to existing homes at the Department of Energy’s Web site.
Association Programs
Some trade associations also offer rebates and other incentives.  For instance, VanderWerf said that when he was building with ICFs, the Portland Cement Association (PCA) provided him with $1,000 for the first home he built in a development, and up to $20,000 for 10 houses. A PCA official in the audience confirmed that those rebates still exist.  In addition, many trade groups will help a builder promote its green homes to the local media and may even pay for open houses.  “And this can be for as little as one house,” VanderWerf commented.

Energy-Efficiency Mortgages
Typically, these mortgages offer better terms for buyers of green homes, such as slightly lower closing costs and interest rates.  Most require that the home have a green certification from a well-recognized organization.  The energy-efficiency mortgage doesn’t provide money to the builder, but it does allow buyers to qualify for larger mortgages, typically 5% to 8% more, which can help the pro sell more green homes, VanderWerf said.  But, he cautioned, it is hard to find out if lenders offer energy-efficiency mortgages because even if a national lender has a program, local branches often don’t know about it.

“Local lenders deal in five to ten types of mortgages,” he noted, advising pros to always verify with a mortgage company that it offers energy-efficiency mortgages before sending clients there.  And if a lender doesn’t offer energy-efficiency mortgages, ask it to develop a product, he said.

Preferential Insurance Policies
Green homes often are built with advanced construction techniques or alternative building systems, such as ICFs or structural insulated panels (SIPs), that may better withstand violent weather conditions.  And many insurance companies will give homeowners a discount ($50 to thousands of dollars) on their annual premiums for dwellings built with these systems, VanderWerf said, noting that about half of all insurers offer such discounts.  The discounts aren’t money in the builder’s pocket, but again, they can help sell more houses, the consultant said.

In wrapping up the session, VanderWerf told pros their eco-friendly houses can qualify for more than one rebate or incentive from utilities, governments, and trade groups.  “No program is exclusive,” he said with a smile.

For more information, contact VanderWerf at pvander@buildingworks.com.

From: ECOHOME 2009

By:  Jean Dimeo

   
 
Market Trends
  Economy should recover later his year, Bernanke says

The U.S. economy should turn around later this year, according to Federal Reserve chairman Ben Bernanke.  "As inventory stocks move into better alignment with sales, firms should become more willing to increase production," Bernanke testified before the House Budget Committee.  But Bernanke said the health of the financial sector could continue to be a risk for economic recovery.  Forbes/Reuters

From:  NAW SmartBrief.com