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June 25, 2009

INDUSTRY ACCESS*

Bellevue Builders For Sale

Stock Building Supply is seeking to sell the former Bellevue Builders Supply chain as it exits the New York market as part of its Chapter 11 reorganization. A Stock official said privately that the company has lined up a buyer for its six New York stores and door-manufacturing plant, and that it hoped to sell the business as a going concern with no interruption in operations, reported the Times Union. 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

Business information modeling (BIM) offers specifications writers an even larger role than before in the design process, according to Tom Dunbar, past president of CSC (Construction Specifications Canada). In an interview with Reed Construction Data – Canada, Dunbar noted that when BIM includes specifications, specification writers will have to become involved in the design process at an earlier stage. Watch the interview

Autodesk is working with three cities to learn how best to put digital 3D data into plans for buildings submitted for approvals. The concept is to engineer a process for the public, city government, construction and business communities to combine mapping, building, civil engineering, and utility information into an accurate city model to simulate the future impact of development on a city-wide scale, reported Daily Commercial News. Full Story

The May Producer Price Index for Wood Doors (flush & panel, interior & exterior) was up 1.7% from 2008 and the Other Wood Doors (Incl. garage, screen, storm, etc.) PPI was up 2.5% compared to a year earlier. Compared to April, the unadjusted May PPI was up 0.3% for Wood Doors and the PPI for Other Wood Doors was unchanged, according to the Bureau of Labor Statistics. The PPI for Metal Doors, Sash & Trim was unchanged from April and up 4.4% from 2008. The PPI for Builders Hardware was down 0.2% from 2008 and down 3.5% from a month earlier. Click here to view the full May Producer Price Index report. (PDF file - Wood Door information is on page 16, Builders Hardware is on page 21 and Metal Door data is on page 22)

At the Plymouth, MN Home Depot store, sales of windows and doors are $200,000 above projections for the year. Management attributes this to the federal tax credits for energy-saving improvements to existing homes, reported KARE11.com. Full Story

Early signs of another commodity price up cycle are beginning to appear. But construction materials prices will probably ebb slightly lower in the next few months before this takes hold, reported Reed Construction Data's Jim Haughey. The next surge in materials prices is likely to be somewhat smaller than the 10% jumps over eight months in both 2004 and 2008. The economic environment a few months ahead is very similar to the conditions that set off commodity price surges in 2004 and 2008 except that there is more surplus commodity supply capacity in 2009 at the end of a very deep worldwide recession. The consequence of this is that the period of rising construction materials prices could last longer as surplus capacity is absorbed while accumulating at most the same percentage price increases. Full Story

The index of U.S. leading economic indicators probably rose in May for a second straight month, reinforcing signs that the worst recession in five decades may end this year. The Conference Board's gauge of the economic outlook for the next three to six months climbed 1%, according to the median forecast in a Bloomberg News survey. That would match April's gain and mark the first back-to-back increase since September-October 2006. Other reports may show the manufacturing slump is easing while job losses continue, reported Bloomberg.com. Full Story

In Canada, the Industrial Product Price Index (IPPI) and the Raw Materials Price Index (RMPI) were both down 0.5% in April compared with March, halting their upward movements since the start of the year according to Statistics Canada. From April 2008 to April 2009, prices for raw materials fell 31.2%, reported Modern Distribution Management. Full Story

CONSTRUCTION & DESIGN

New Buildings Institute (NBI) and the American Institute of Architects (AIA) are proposing comprehensive changes to a national model energy code for new commercial buildings, the International Energy Conservation Code (IECC), which would create buildings that are 20-25% more energy efficient than what today's average standards require. Full Story

Construction has begun on the Westside Medical Center in Hillsboro, OR. The final plans scaled back the size of the total facility, though still call for an incremental build-out totaling 780,000 square feet by 2040. At completion of the initial phase in 2013, the new 280,000 square-foot Kaiser Westside Medical Center will provide 126 patient beds; an emergency room; intensive care, general medical, surgery and maternity services; and inpatient diagnostic and pharmacy care, reported OregonLive.com. Full Story

Construction on Portneuf Medical Center's new facility in Pocatello, ID is underway. Slated for completion in 2011, the new hospital will bring together PMC’s two locations on one roughly 80-acre plot of land. Once completed, PMC will feature 187 beds, about 300,000 square feet and all private rooms, reported Idaho Business Review. Full Story

SECURITY & SAFETY

During the PSA-TEC 2009 event, Security Sales & Integration Editor-in-Chief Scott Goldfine conducted exclusive video interviews with many industry insiders about their individual businesses and the industry overall. One interview features Paul Iverson of HID on convergence, network solutions and logical access control. Click here to view the videos.

GOVERNMENT AFFAIRS

A piece of legislation recently introduced by U.S. Rep Connie Mack, R-Fort Myers, would eliminate minimum compensation provisions for construction workers on public works projects. Mack is proposing the legislation would stimulate the economy by creating more jobs by repealing the Depression-era Davis-Bacon Act, which requires workers on large, federally-funded projects to be paid a "prevailing wage," reported the Naples Daily News. Full Story

Members of the Senate Energy and Natural Resources Committee passed the American Clean Energy Leadership Act, its version of an energy bill. Like the House climate change bill, the American Clean Energy and Security Act, the Senate legislation does not address windows and/or fenestration specifically, but it includes numerous measures designed to improve building energy efficiency, reported Window & Door. Full Story

California could have some of the most energy-efficient buildings in the nation come Aug. 1. The state is upping the ante on green building codes by raising its own requirements for energy-efficient construction, known as Title 24, which is already recognized as the most rigorous in the U.S. The 2009 update of the code will raise the energy efficiency of new construction in California 15% to 20% from the previous standards set in 2005, and more than 20% above national standards set by the U.S. Department of Energy. Retrofits and renovations done after Aug. 1 also will have to meet the 2009 code, reported The Desert Sun. Full Story

SMALL BUSINESS NEWS

Employee Sick Leave

The "Healthy Families Act," has been introduced by Representative Rose DeLauro (D-CT), and the companion bill, S. 1152, has been introduced by Senator Edward Kennedy (D-MA).

The purpose of this legislation is to require an employer to provide each employee with not less than 1 hour of accrued paid sick time for every 30 hours worked up to a total of 56 hours of paid sick time in a calendar year.

The proposal includes part time employees. If the normal work week of such an employee is less than 40 hours, the employee shall earn paid sick time based upon that normal work week.

An employer is any "person" engaged in commerce or in any industry or activity affecting commerce who employs 15 or more employees for each working day during each of 20 or more calendar work weeks in the current or preceding calendar year.

For the purpose of counting employees for coverage, an employee is basically anybody on the payroll for any amount of time. This aspect of the definition has its roots in the Fair Labor Standards Act definition which is much broader than other employee definitions such as those found under equal opportunity laws.

Employees will be eligible to earn paid sick time at the commencement of their employment. An employee shall be entitled to use the earned paid sick time beginning on the 60th calendar day following commencement of the employee's employment. After that 60th calendar day, the employee may use the paid sick time as the time is earned.

IRS and Treasury Ask Congress to End Taxation of Personal Use of Employer-Provided Cell Phones

The Obama administration asked Congress to overturn a 20-year-old law requiring workers to pay taxes on the personal use of employer-provided cell phones. The law originally came about in the days when few people owned cell phones, and on the rare occasions when companies divvied them out to workers it was considered a special fringe benefit, like a luxury car, with any personal use subject to tax, reported MarketWatch. "The passage of time, advances in technology, and the nature of communication in the modern workplace have rendered this law obsolete," said IRS Commissioner Doug Shulman. "The current law, which has been on the books for many years, is burdensome, poorly understood by taxpayers, and difficult for the IRS to administer consistently," he said. Full Story For more on the issue 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 DHI members. It cannot be distributed, reprinted, referenced as a source for attribution, or otherwise made public.

FOUNDATION NEWS

For All of Our Supporters - Here are a Few Things That We are Able to Do Because of You!

• Working with the California and New York to train AHJs so that they understand more about the enforcement of the NFPA 80 fire door inspections coming in August '09 and January '10 respectively. These are two influential states where we need to provide outstanding support.

• Creating awareness within the Senate Judiciary Committee on the role life safety and security play as it pertains to H.R. 748 – Campus Safety Act of 2009.

• Working at the state and local level to create awareness for the role this industry plays in regards to the appropriation of state stabilization money i.e. stimulus funds for schools and how that money can be spent to bring long-term life safety solutions to our nation's K-12 infrastructure.

• Working with Virginia's Department of Justice to provide educational programs to college campus security officers so that they become more knowledgeable of the security solutions that are available for the opening.

These are big undertakings and we cannot, and will not succeed, without your support.

Ways to make a pledge:
Website: www.lifesafetysecurity.org/FoundContribute.htm (using PayPal),
Email or call Bill Johnson: bjohnson@dhi.org, 703.766.7039
Mail: 14150 Newbrook Drive Suite 200 Chantilly, VA 20151.

As a strong supporter of this association, we believe you understand the opportunities that the Foundation can provide for the future.

Thank you again for helping us with this important work.

DHI NEWS

DHI’s 34th Annual Conference & Exposition Update:
ONLY 5 DAYS LEFT TO RECEIVE DHI’S REDUCED REGISTRATION FEES!

DHI’s 34th Annual Conference and Exposition
September 16 – 25, 2009
Orlando, FL

DHI’s "Stimulus Special" features full conference registration packages as low as $105* UNTIL JUNE 30th, 2009!!!!

Click here for the complete conference brochure and to see all that is new and different this year in Orlando!

Additional information and registration for this event is available online at www.dhi.org.

* Members only rate. Price for non-members is $205. Offer non-refundable and valid only through June 30th, 2009.

2009 FORUM FOR THE FUTURE IS NOW INCLUDED WITH YOUR REGISTRATION – A $100 SAVINGS!

With all of this year's enhanced content, the 2009 Forum for the Future will span 2 days and features critical industry information, including:

The release of cutting edge industry research
A short and long term economic forecast and how it impacts the non-residential construction industry
Problems to avoid as the recession ends and ways to recession-proof your business in the future
A discussion of distribution channel partners' best practices

Not an "optional event" this year, the Forum is the cornerstone of the entire Conference and Exposition.

For the complete 2009 Forum for the Future Executive Overview click here.