February 17, 2010

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Lots of Dealers Would Dump Their Current IT System, ProSales Survey Finds

Nearly a quarter of LBM dealers would reject the software package they're using now if they could choose a system all over again, a new ProSales survey indicates. Just under half would keep it. But the poll also revealed that dealers have intense feelings--both positive and negative--about the computer systems they employ at their yards.
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US LBM Buys Chicago's Edward Hines Lumber

US LBM Holdings LLC will buy Edward Hines Lumber Co. of Chicago, Hines' Indiana-based Hall & House subsidiary, and certain other units, US LBM's parent, BlackEagle Partners LLC, announced Monday. The deal is expected to be concluded by March 17 via a nonjuducial process, and both companies will remain in operation through then.
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Owens Cornings Posts Big Jump in '09 Building Materials Profits

A surge in roofing prices late in 2008 enabled Owens Corning's building materials subsidiary to more than double its pretax profit to $401 million last year from $175 million in 2008, the company 's latest profit report indicated today. Earnings before interest and taxes (EBIT) for the roofing group jumped to $530 million in 2009 from $185 million in 2008, while the insulation segment swung to an $85 million loss from a $14 million profit in 2008. The loss for all other building materials products deepened to $44 million from $24 million.
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	The 2009 ProSales Dealer of the Year Senior Editor, Andy Carlo, meets with Myron Andersen who was named the 2009 ProSales Dealer of the Year. Click here to watch.

Beacon Buys Orlando Roofing Dealer

Beacon Roofing Supply acquired Independent Building Materials (IBM), a distributor of mostly residential roofing systems and related accessories with one location in Orlando, Fla. "IBM presents us with an excellent opportunity to enter the Orlando market and begin to expand our footprint in Florida," Paul Isabella, president and chief operating officer of Beacon, said in a statement.
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In This Month’s ProSales: Chapter 11, Installed Sales, Supply Chain Innovations, Wet Wood, Vinyl Windows, Hot Finds, Solid Advice ...

Aside from our main features, this month’s ProSales magazine has plenty of other provactive content. Click here for the digital edition or check out individual stories below:
• A Loose Noose--Filing for Chapter 7 or 11 once was seen as LBM suicide. That's no longer the case. Story
• The Growing Call to Install--While new-home construction still is depressed, dealers with installed sales operations are spotting opportunities elsewhere. Story
• Islands of Innovation--Progress on supply chain integration remains slow, but it is moving ahead. Story
• Engineered Wood and Mold--Who's All Wet?: Experts disagree over how prone engineered wood is to mold. Story
• Product Monitor: Vinyl Windows--Manufacturers improve the looks and performance of their products. Story
• February Hot Finds—Featuring products from Marvin, Boise Cascade, Typar, CertainTeed, and PGT. Slideshow
• My Yardsticks: Michael Hayden—The co-owner of New Orleans’ Riverside Lumber reflects on LBM life in the Big Easy. Profile
• New Dimensions: Down, Yes, But Not Out--That former big builder still may want to buy from you at remodeler volumes, Mike Butts notes. Don't ignore him. Column
• Sell Sheet: Delay Is Not Defeat—Rick Davis urges you to accept the fact that sales take longer to complete today because the economy makes people cautious. How should you respond? Column
• Rader’s Edge: How To Win in 2010--Our online "Rader's Edge" columnist presents 10 ideas to boost your dealership's productivity. Column
• Editor's Notes: Wistful Thinking--I bet we all wish housing would rebound, particularly when the construction is done by our favorite customers: small, single-family home builders. But as this issue and recent editions report, the building material market is changing markedly. Editorial

... and Don't Forget This Month's Feature Focus: Recovery in 2010

“You might not recognize the builder and remodeler customers most likely to help keep your business afloat this year,” the prelude to this month’s feature package in ProSales magazine declares. “Some of those who bought from you in the past have been transformed by this recession into companies that are building a much different type of home. Remodelers likely will account for a bigger share of business, if only because some of your builder customers have moved into that line of work. And because of federal stimulus and energy programs, a slew of potential customers in the public sectors have more money to spend than ever before.” Here’s our three-part examination of this new world.
• Building Momentum: The government is giving billions to groups across the country to build and rehab homes. Have you made those groups your customers? Story
• New House on the Block: With no real housing recovery in sight, builders are turning away from super-sized, super-customized homes and offering a more limited range of slimmer, greener choices. Story
• The Vultures Are Circling: But is the McMansion truly dead? There are signs America has changed its ways, while experts hedge on whether this style will rise again. Story

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Builders Cash in on Tax Refunds

Extension of net operating loss carry-back provision to five years are returning millions of dollars to public builders, some of which are using the money to buy land at bargain prices. (BUILDER ONLINE)
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WebbThreads

• The Southern Building Material Association selected Smith Phillips Building Supply, Winston-Salem, N.C., as its Dealer of the Year and ECMD as Supplier of the Year.
• Mobile (Ala.) Lumber & Millwork recently created two new divisions: INCOM Commercial Construction & Distributor Supply, and Coast Design Kitchen & Bath.
• Housing starts rose 2.8% from the prior month, to 591,000, the government reported today. That’s 21.1% above the January 2009 figure. More
• Builder confidence in the market for newly built, single-family homes rose two points to 17 in February, according National Association of Home Builders/Wells Fargo Housing Market Favorable home buying conditions and signs of healing in the job market were credited.
• Koltes Lumber closed its Wenaukee, Wis., branch on Jan. 28. Story
• Lacillade Lumber plans to close its lumberyard in Williamstown, Vt.
• ProBuild closed late last year a lumberyard and truss plant in Klamath Falls, Ore., reports from several sources indicate.
• ESPN football analyst Lee Corso will be the keynote speaker at the Florida Building Material Association’s annual convention Sept. 22-24 in Orlando, Fla.

• Advanced TrimWright announced it split from distributor Brockway-Smith Co. and will begin selling its PVC trim and millwork products, plus adhesives and sealants, direct to dealers.
• Tools of the Trade editor Michael Springer has posted his review of the neatest tools that he saw displayed at the International Builders’ Show. More
• Bilco Co. announced its standard Type S and NB steel and aluminum roof hatches have received Miami-Dade County’s Notice of Acceptance, certifying they conform to high-velocity hurricane zone standards in Miami-Dade County.
• Eastern Engineered Wood Products received Forestry Stewardship Council Chain of Custody Certification. It also has chain of custody certification from the Sustainable Forestry Initiative.
• Milwaukee Electric Tool Corp. expanded its Lithium-Ion product slate by adding the M12 Cordless No-Hub Driver.
• Uniboard named Tom Ruedy Director, Business Development MDF/HDF – at its Moncure location.
• PureWood thermally modified wood decking, is now available through BlueLinx's Springfield, Mo., and Tulsa, Okla., locations.
• AZEK Building Products rolled out two new colors in its Terra collection: Sedona, a medium brown, and Tahoe, a gray shade.
• NuCedar Mills expanded its line of clapboard, vertical siding and mouldings milled from cellular PVC to include NuCedar R & R Shingles and Shingle Panels.
• Kolbe introduced Majesta windows: made-to-order units will be available in sizes as large as 6x12-feet with high-performance glass.
• CertainTeed added three blended colors—in gray, brown, and green—to its Bufftech Chesterfield with CertainGrain line of vinyl privacy fences.

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 ProSales Business Updates online!