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February 19, 2009

INDUSTRY ACCESS*

Accu-Weld Acquisition Saves 140 Local Jobs

While window manufacturers across the country are shuttering their businesses due to economic hardships, employees and customers of Accu-Weld have just been given new hope. Haddon Windows LLC acquired the assets of Accu-Weld LLC from H.I.G. Capital.

Newly named Accu-Weld president John Haddon Jr. says his firm is interested in further acquisitions as well: "We have the capacity to grow and are seeking other window manufacturers with high-quality products and loyal customer bases."

For more information visit accuweld.com.

ASSA ABLOY Acquires Maiman, a High-end Door Manufacturer

ASSA ABLOY has acquired The Maiman Company, a U.S. manufacturer of high-end thermally fused laminate and wood doors.

Maiman designs, manufactures and markets wood door products for the commercial, industrial and institutional sector. The company is a supplier of stile and rail wood doors as well as thermally fused laminate doors. Maiman is a family owned business established in 1977 and headquartered in Springfield, MO.

Read more about Maiman and their products at www.maiman.com.

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 January Producer Price Index for Wood Doors (flush & panel, interior & exterior) was up 3.0% from 2008 and the Other Wood Doors (Incl. garage, screen, storm, etc.) PPI was up 3.1% compared to a year earlier. Compared to December, 2008, the unadjusted January PPI was up 1.1% 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 down 0.6% from December and up 4.6% from January 2008. The PPI for Builders Hardware was up 12.3% from 2008 and up 0.3% from a month earlier. Click here to view the full January Producer Price Index report. (PDF file - Wood Door information is on page 16, Builders Hardware and Metal Door data is on page 22)

The January value of construction starts, excluding residential contracts, totaled $21.590 billion, 5.3% more than in Jan., 2008. However, starts fell 23% from December, which was a decrease of almost 20% after allowing for the usual small seasonal decline in the first month of the year. Strong increases compared to Jan. 2008 were posted for hospitals, nursing homes and schools/colleges, reported Reed Construction Data. Full Story

CONSTRUCTION & DESIGN

Children's hospital design is trending toward more sophisticated, family-friendly environments that address patient and parent needs without alienating the staff. Building Design & Construction looks at nine ideas that illustrate what's expected in today's best children's hospitals. Full Story

Metropolis magazine asked eight leading design firms to submit a recent K–12 school project that featured an innovative approach, application, or idea. Click to view the submissions.

Paul Prouty, who heads the U.S. General Services Administration, says he has 500 projects ready to go to utilize stimulus funds. GSA owns or leases more than 352 million square feet of space in 8,600 federal buildings in 2,200 cities and towns. GSA said many retrofits will be cheap and fast, as energy efficiency improvements can be as simple as placing thicker insulation, installing LED lights, replacing windows and installing water-saving toilets, reported CNN Money. Full Story

SECURITY & SAFETY

Fort Payne Middle School was recently selected as one of 12 nationwide for a grant that takes school safety to another level. The project tracks nearly every person who walks through the school door. When a visitor checks in at a school, they must present a valid ID card. Information then is fed into a computer program that would quickly alert school officials of those who might jeopardize school safety, reported the Times-Journal. Full Story

GOVERNMENT AFFAIRS

The $789 billion compromise stimulus bill negotiated by House and Senate leaders could boost window and door sales. The package substantially increases the value of tax credits provided for energy efficient home improvements, including windows and doors, reported Window & Door Magazine. According to a statement released by Speaker of the House Nancy Pelosi, the compromise package retains $20 billion worth of spending targeted at energy efficiency and renewable energy that was part of both the Senate and House bills. Specifically, the statement notes, the final bill includes provisions to promote "energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation." Full Story

Title XIV of the American Recovery and Reinvestment Act of 2009 (ARRA) provides $53.6 billion for education by means of a "State Fiscal Stabilization Fund." Money is allocated to the states on the basis of their total population and number of school age children. The states receive a total of about $39.5 billion "for the support of elementary, secondary, and postsecondary education, and, as applicable, early childhood education programs and services." The states also receive a total of about $8.8 billion "for public safety and other government services, which may include assistance for elementary and secondary education, and for modernization, renovation, or repair of public school facilities and institutions of higher education facilities, including modernization, renovation, and repairs that are consistent with a recognized green building rating system." The states appear to have complete discretion in distributing this money, making anything possible in terms of how it is spent, reported The National Clearinghouse for Educational Facilities. Note that the bill allocates no money specifically for school modernization, and, while eligible for funding, modernization projects may prove to be a low priority compared to other critical state and district educational needs. Information about education funding, including state and local allocation tables, is posted on the U.S. Department of Education's ARRA web page.

President Barack Obama issued an executive order backing the use of union labor for large-scale federal construction projects. The order encourages federal agencies to have construction contractors and subcontractors enter project labor agreements. Those agreements require contractors to negotiate with union officials, recognize union wages and benefits and generally abide by collective-bargaining agreements. Full Story

SMALL BUSINESS NEWS

American Recovery and Reinvestment Act

The President recently signed the American Recovery and Reinvestment Act (ARRA) into law.

Internal Revenue Code Section 179 allows business to write off small amount of annual investment in capital assets such as machinery in the year of purchase in lieu of depreciating the investment over a number of years.

Under present law, there was a temporary increase in the maximum amount a taxpayer could expense for taxable year 2008. The amount was $250,000 of the cost of qualifying property placed in service for in that taxable year. The new legislation extends the $250,000 maximum through 2009.

It is important to note that this extension is a temporary increase. For taxable year beginning in 2010, the limitation goes back down $125,000, and the cap is $500,000.

Net Operating Losses

Under present law, a net operating loss ("NOL") generally means the amount by which a taxpayer's business deductions exceed its gross income. In general, an NOL may be carried back two years and carried over 20 years to offset taxable income in such years. The new law will permit an eligible small business to elect to increase the present-law carry back period for an applicable 2008 NOL from two years to any whole number of years elected by the taxpayer that is more than two and less than six. An eligible small business is a taxpayer meeting a $15,000,000 gross receipts test. Corporations, partnerships, and sole proprietorships are all included. The general rule for the gross receipts test is a business meets the $15,000,000 gross receipts test for any prior taxable year if the average annual gross receipts of such entity for the 3-taxable-year period ending with such prior taxable year does not exceed $15,000,000.

See IRS Publication 536 Net Operating Losses (NOLs) for Individuals, Estates, and Trusts

For a complete summary of H.R. 1 and its potential impacts on small businesses, click here.

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 The Door and Hardware Institute members. It cannot be distributed, reprinted, quoted, or otherwise made public.

FOUNDATION NEWS

Overview of the Impact of the Stimulus Plan on the Openings Industry

The $787 billion economic stimulus was signed into law on February 17th. From an initial glance, President Obama's stimulus package has a number of provisions that may positively impact the openings industry. The stimulus bill includes language that will create a program called the State Fiscal Stabilization Fund, which will have a school modernization/public school component.

For a summary of how this Fund will be distributed as well as a look at other construction projects that have received funding and may have a direct and positive impact on the openings industry, click here.

Keep up-to-date with the latest Foundation news and programs, please visit www.lifesafetysecurity.org

DHI NEWS

DHI FREE ONLINE Webinar - Wednesday, March 18th, 2009 at 11:00 am EST
"Overview of DHI Education and Certification Program Changes"
Presented by Keith Pardoe, DAHC/CDC, CDT

Join DHI's Director of Education and Technical Services, Keith Pardoe, DAHC/CDC, CDT as he explains the latest improvements to the Education and Certification programs and how these changes will be implemented in the upcoming spring and fall Mega schools. In addition to that, he will also provide an overview of the new Learning Management System (LMS) that administers the Challenge Exams.

Please note: if you have not already done so, you will need to click here to load DHI’s VCE program onto your computer prior to the session. If you have any questions please contact DHI directly at 703-222-2010.

Secure Your Spot at DHI’s Upcoming National Education Session
May 10th – 17th, 2009 in Lansdowne, VA

Space is FILLING FAST for DHI’s May MEGA school! In today's economic climate it is more important than ever that you maintain your competitive edge! DHI can help you stay on top! With 29 different classes – including DAI 600 Fire and Egress Door Assembly Inspection class, you can't afford to miss this education opportunity! For a complete list of course offerings and to register online click here. MAKE YOUR PLANS TO ATTEND TODAY because the next National Education offering won't be until September 2009 in Orlando!