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January 22, 2009

INDUSTRY ACCESS*

Republic Windows Factory May Reopen

The shuttered Chicago windows factory that was the site of a six-day worker sit-in last month over severance pay is close to being purchased by a California company. The deal would put those employees back to work. Under the deal, the building and assets of Republic Windows and Doors, which closed abruptly Dec. 5 and declared bankruptcy Dec. 15, would be purchased by Serious Materials, a company based in Sunnyvale, CA, that produces green building materials, reported The Chicago Tribune. Full Story

Click here for more Industry Access news including recent new hires, merger & acquisition activity and who's offering new products.

* DHI Members may submit news releases to be considered for inclusion in DHI's IndustryWatch. Send to: jmadden@dhi.org.

BUSINESS UPDATE

The American Institute of Architects (AIA) reported the December Architecture Billings Index rating was 36.4, up from the 34.7 mark in November (any score above 50 indicates an increase in billings). The inquiries for new projects score was 37.7. Full Story

The December Producer Price Index for Wood Doors (flush & panel, interior & exterior) was down 0.2% from 2007 and the Other Wood Doors (Incl. garage, screen, storm, etc.) PPI was up 2.2% compared to a year earlier. Compared to November, the unadjusted December PPI was down 0.1% for Wood Doors and the PPI for Other Wood Doors was up 0.7%, according to the Bureau of Labor Statistics. The PPI for Metal Doors, Sash & Trim was unchanged from November and up 6.4% from 2007. The PPI for Builders Hardware was up 12.7% from 2007 and up 0.8% from a month earlier. Click here to view the full December Producer Price Index report. (PDF file - Wood Door information is on page 16, Builders Hardware and Metal Door data is on page 22)

Orders and shipments for construction materials and supplies tumbled steeply in November according to the latest Census Bureau data. This means that materials buyers should expect a prolonged period of weaker pricing, coming right at the end of the sharp October-December price cuts that resulted from the bursting of the worldwide commodity bubble. Adjusting for materials price inflation, the volume of construction materials and supplies sales declined at a 6% annual pace since the end of the housing boom in February 2006. Inflation was high in 2006-07, surged higher in the first half of 2008 and then prices fell 5.5% from July to November. The decline in materials purchases accelerated in November. Sales fell 3.3% as prices fell 3.2%. This is about a 6.5% volume decline in one month, reported Reed Construction Data. Full Story

The U.S. construction sector stands to lose 30% of its jobs in 2009 unless Congress approves a stimulus package soon, Associated General Contractors of America (AGC) warned. A slowdown that began in the U.S. housing sector has spread to a broad swath of nonresidential construction projects, AGC said in its annual forecast. "While the last few months have been difficult for the economy, they've been simply devastating for the construction industry," AGC Chief Executive Steve Sandherr said. Full Story

Health Facilities Management published a Hospital Building Report from a survey conducted in cooperation with the American Society for Healthcare Engineering, data supplied by Reed Construction Data/RSMeans and extensive interviews with leaders in the hospital planning, design and construction fields. Read the Report

CONSTRUCTION & DESIGN

As the overall U.S. economy continues to struggle, nonresidential construction spending is expected to decrease by 11% in 2009 in inflation adjusted terms. Commercial projects including office buildings and retail establishments will see the most significant decrease in activity. On the positive side, prices have dropped for key construction commodities, according to the American Institute of Architects semi-annual Consensus Construction Forecast, a survey of the nation’s leading construction forecasters. Full Story Full Report

According to Wells Fargo's 2009 Construction Industry Forecast survey, the largest percentage of respondents expects 2009 to look very much like 2008, with comparable levels of construction activity in both the non-residential and residential sectors. However, 42% of contractors and 39% of construction equipment distributors foresee less non-residential activity. Fifteen percent of contractors and 17% of distributors expect nonresidential activity to increase, compared to just 11% of each group who see a better year ahead for residential building. Full Report (PDF file)

Even as the University of California and California State University grapple with construction shutdowns, the Los Angeles Community College District awarded $400 million in new building contracts, the latest phase in a $5.7-billion construction program that experts describe as one of the biggest college public works projects in the nation, reported The Los Angeles Times. Full Story

Canadian building permits fell 12% in November to the lowest level since February 2007, led by a drop in licenses for non-residential buildings such as schools and hospitals. The total value of permits issued by municipalities tumbled to C$4.8 billion ($4 billion) after dropping 16% the month before, reported Bloomberg. Full Story

SECURITY & SAFETY

A new report from the Security Industry Association (SIA) calculates the electronic physical security market in the U.S. totaled nearly $10 billion in 2007. In the same year, the industry’s commercial, institutional and government sectors produced 180,000 jobs nationwide and had a national economic impact of nearly $18 billion, reported Security Sales & Integration. Full Story

Chippewa Area (WI) Catholic Schools is installing key card doors and is going digital with its surveillance cameras. The exterior doors will also be converted into electronic locks, which will only be accessible with key cards when not in use during school day. Any staff member or athletic coach needing to access the building will be given a key card, which can be programmed to work only at the times which the staff member would need to access the building, reported Chippewa.com. Full Story

GOVERNMENT AFFAIRS

The proposed federal American Recovery and Reinvestment Bill includes an estimated $141 billion for education. U.S. News & World Report gives a breakdown of the part of the stimulus legislators are calling "Education for the 21st Century." Full Story

As Congress begins considering the American Recovery and Reinvestment Act of 2009, the American Institute of Architects (AIA) expresses encouragement of the initial draft version of the bill released January 15 by the House Appropriations Committee – but believes that Congress needs to do more to ensure that the stimulus achieves its goals of job creation and a 21st century infrastructure. The draft proposal advocates for energy-efficient upgrades for a cross-section of buildings, which account for nearly half of all U.S. energy use, including schools, homes, federal and private sector buildings, and healthcare facilities. Full Story

SMALL BUSINESS NEWS

The House of Representatives wasted no time in moving on some of organized labor’s issues, approving two bills, H.R. 11, Lilly Ledbetter Fair Pay Act, and H.R.12, Paycheck Fairness Act, by substantial margins.

H.R. 11 would amend Title VII, the ADA, and the ADEA to clarify that compensation discrimination occurs each time compensation is paid even though the original discriminatory decision was made many years ago. Under current law, there is a 180-day window for filing discrimination charges after the act of discrimination. In 2007, the U.S. Supreme Court ruled that Lilly Ledbetter, who had filed a complaint many years after the initial compensation decision, was prevented from filing a claim. Under the proposed legislation, an employee could file a discrimination claim any time the employee receives a new paycheck, thus rendering moot any statute of limitations.

The coverage threshold for a business for Title VII and the ADA is fifteen or more employees and the ADEA threshold is twenty or more employees. Most folks do not realize it, but the Equal Pay Act amended the Fair Labor Standards Act (FLSA). For the most part, almost all businesses that have an employee are covered by the FLSA and thus subject to the EPA but, because the evidentiary requirements of the EPA are so technical, not many claims are filed against small businesses.

Because of the coverage thresholds, fewer small businesses might be subject to a Ledbetter claim but a Title VII case is more subjective than an EPA claim and a business potentially covered by both might have more exposure in the Title VII claim.

DHI's Jerry Heppes sits on the board of the Small Business Legislative Council. If you'd like more information on these or other issues affecting small businesses, feel free to contact him at jheppes@dhi.org.

This material is protected under copyright law and contains confidential information. It is for the sole personal, informational use of DHI members. It cannot be distributed, reprinted, referenced as a source for attribution, or otherwise made public.

DHI NEWS

Registration is NOW AVAILABLE for DHI’s Upcoming National Education Session
May 10th – 17th, 2009 in Lansdowne, VA

This MEGA school offers 29 different classes – including DAI 600 Fire Door Assembly Inspection class! For a complete list of course offerings and to register online click here! With the current economic climate, it is vital that you stay up-to-date with the latest industry trends and advancements. DHI education can help provide you that edge by increasing your technical knowledge and honing your skills. MAKE YOUR PLANS TO ATTEND TODAY because the next National Education offering won’t be until September 2009 in Orlando!

Don’t Miss DHI’s Upcoming FREE ONLINE Program:
"Overview of the DHI-Sponsored Commercial Insurance Program"

Join us online, Wednesday, January 28, 2009 at 11:00 am EST as host, Peter Elliott, President and CEO of Telcom Insurance Services Corporation (TISC), discusses the DHI Sponsored Insurance Program.

Elliott will focus on insurance and risk management topics distinctive to door and hardware companies including liability, property and professional exposures. Elliott will also address the unique insurance needs of NFPA 80 fire door assembly inspectors, specification writers, and consultants with an overview of the professional liability insurance policy that has been specifically designed for DHI members.

Click here to download DHI’s VCE program and participate in this "live" seminar. If you have any questions please contact DHI directly at 703-222-2010.