April 8, 2009

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The United States imposed yesterday nearly $55 million worth of import duties on softwood lumber from the Canadian provinces of Ontario, Quebec, Manitoba, and Saskatchewan over what it said was Canada's failure to fix a breach of a 2006 agreement between the two countries. The action follows a Feb. 26 ruling by a tribunal of LCIA, an international arbitration group, that found Canada violated the Softwood Lumber Agreement by failing to calculate quotas properly during the first six months of 2007.
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In a major deal that could reshape the housing industry, public builder Pulte said today that it would merge with fellow public builder Centex in a $3.1 billion, stock-for-stock agreement with $1.8 billion in net debt. If approved by shareholders, the deal would create the country's largest home builder, with 39,000 combined closings in 2008 and pro forma revenue of more than $11 billion.
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We’re all about the Benjamins in this month’s issue of ProSales. Click here to view a digital edition of the magazine, or check out the Web versions of the individual stories below:

• Re-Learning Credit 101--In good times, it was easy to let a payment slide past its due date. But these days, that's no longer an acceptable business practice. Here's how some dealers balance collecting on past-due accounts with keeping the customer happy. Story
• Bank Shot--Dealers are chafing under banks new rules that they have to abide by if they want to have access to credit and maintain this vital business relationship. Story
• The Truth About Financials--To survive the housing slump, you'll need to keep a closer eye on your balance sheet, income statement, and cash flow report. We point out 16 places in these reports where financial experts say you should pay extra attention. Story
• Is an ESOP for You?--Even in this down economy, it might make sense to convert a private company into an employee-owned one. Story
• Selling Outside the Box--For a new source of revenue, you may not need to look any farther than the local prison, hospital, or university. Story
• Green Goods: The Retro Network--Federal and state rebate programs can help you boost sales through insulation retrofits. Story
• Editor’s Notes: Don’t Be Miss Understood--How many officials and people who can make or break your business have no idea of what you do for a living? Editorial
• New Dimensions: Sub Tactics--New state laws are altering how you can use subcontractors for installed sales, Mike Butts says. Story
• Sell Sheet: Make ‘No Bid’ Your Trump Card--Rick Davis says you should never launch your sales pitch by offering a price. Focus instead on ways to help your builder boost his profit. Story

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We have added a new feature to our blog page that shows a map and spreadsheet listing of all the LBM facilities ProSales knows of that have been closed or mothballed since January 2008. Now you can review closures by company as well as by location. The list now exceeds 550, thanks in part to your contributions. You can help our industry get the best possible picture of what’s been happening to LBMs during this housing crash by e-mailing Craig Webb at cwebb@hanleywood.com or calling him at 202.736.3307 with reports of other closures.
View Closures Map and Spreadsheets

Legislation that would make it easier for unions to organize worksites suffered another body blow Monday when Sen. Blanche Lincoln, D-Ark., said she will oppose the Employee Free Choice Act as currently written.
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The home construction market is about to enter a comeback that will see a near-doubling of housing starts over the next 20 months, leading in turn to a spur in lumber dealers' need to stock up on softwood, a leading economist for the lumber industry forecast.
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Wood-framed buildings are going higher in North America, Japan, and especially Europe, ProSales contributing editor John Caulfield reports in a story for Builder magazine’s April edition. British Columbia just raised the allowable height of wood-framed buildings to six stories from four. Meanwhile, an apartment tower in London that has eight wood-framed stories over one of concrete has just been completed, and the tower’s architect is planning a 17-story wood building.
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ProSales’ publisher wants to learn about how become familiar with and then recommend products. Take our two-minute survey and become eligible to win a $100 American Express gift card.
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A growing number of states are moving to require home builders to offer solar electricity and hot-water systems in new homes, right alongside more traditional options such as fancy kitchen countertops and special window treatments
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“It sure feels like we’ve hit bottom,” former ProSales editor Boyce Thompson says in his latest blog for Builder Online. … The Journal of Light Construction, a sister publication to ProSales, has written one of the most complete analyses we’ve seen yet of the energy retroffiting sections of the economic stimulus bill. ... The NAHB Research Center named Michelle Desiderio director of green building programs. Most recently, Desiderio was a planner with the National Capital Planning Commission. ... Jordan, Knauff & Co. has published the inaugural issue of its Foreign Competition Report for the U.S. Building Products Industry. The report summarizes import statistics and growth rates of the top importing countries in 11 different building products categories. Among its conclusions: Watch out for China.

Hampton Affiliates announced it will cut operating hours by 60% at its sawmills in Tillamook, Ore., and Darrington, Wash., slightly reduce production in Willamina, Ore., and run its Morton, Wash., facility at 50% capacity once it comes back on line in September. ... Ply Gem Industries announced it will consolidate production across several of its manufacturing facilities. Operations in Missouri, Mississippi, Virginia, California, and Washington are affected. ... iLevel by Weyerhaeuser has opened a new iLevel Service Center in Easton, Pa. ... Leviton named Enmanuel Hwong to the newly-created position of business development specialist for the Caribbean market.

Do you have a question, a tip, or a sage piece of wisdom? Feel free to contact ProSales' editor, Craig Webb, at cwebb@hanleywood.com.

And don't forget you can find previous WebbLogs now online!