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November 12, 2009

INDUSTRY ACCESS*

Stanley Works and Black & Decker to Merge

The Stanley Works will buy Black & Decker Corp. in an all-stock deal worth about $4.5 billion. The new company will be called Stanley Black & Decker and will have its corporate headquarters in New Britain, Stanley's longtime home. John F. Lundgren, Stanley's current chairman and chief executive, will be president and CEO, and Stanley shareholders will own just over 50% of the new company. The deal brings together two famous national tool brands with combined revenues of $8.4 billion through the end of October and minimal product overlap. The merger is expected to close in the first half of 2010. 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

Green building could create an economic boom when the real estate market recovers, according to a study by the U.S. Green Building Council, which says the industry could generate 7.9 million jobs in the next four years. The study said green building could generate about $554 billion in gross domestic product between now and 2013 with about $396 billion of that coming in wages, reported the Denver Business Journal. Full Story

The Blue Chip Economic Indicators newsletter for November found forecasters had raised their 2010 projections for gross domestic product for a fourth straight month. However, they still expect the pace of growth to fall short of the typical post-recession bounce. The U.S. economy should expand 2.7% next year, the newsletter said. That marked an upward revision from the 2.5% pace the survey panel had expected a month ago, reported Reuters. Full Story

Construction contract disputes may loom ahead as demand grows for buildings that meet environmental efficiency standards, insurance and legal experts say. Available property/casualty insurance products, meanwhile, will pay property owners for the additional cost of rebuilding to a "green standard" after damage to an existing building. Insurance policies also will protect property owners from losses during the course of construction of a "green" building, insurance sources said. But property/casualty underwriters have refrained from insuring a potential liability that contractors and design professionals may face, several experts said. The potential exists, they say, for disputes between building owners and contractors or architects and engineers, should a new building fail to meet certification standards, such as those established by the U.S. Green Building Council, reported Business Insurance. Full Story

In the wake of an extended global economic slump, local communities are pushing ahead and expanding their green building programs. More than one in five U.S. cities with populations greater than 50,000 surveyed by the American Institute of Architects (AIA) report having a policy to promote green buildings, accounting for more than 53 million people. Full Story

Corporate real estate (CRE) executives are increasingly willing to invest in refurbishing their owned assets to meet sustainability goals, according to the results of the 2009 CoreNet Global and Jones Lang LaSalle sustainability survey. In a survey of CRE executives responsible for real estate portfolios totaling billions of square feet across the globe, 70% said that sustainability is a critical business issue for CRE today, reported Building Design & Construction. A significant 89% consider sustainability criteria in making leasing decisions, with 46% always considering energy labels (such as Energy Star or HPE), and 41% always considering green building certifications (such as LEED, BREEAM, IEMA, NABERS Energy, Green Star, GreenMark or CASBEE). Full Story

CONSTRUCTION & DESIGN

Jobsite spending on nonresidential building construction fell 1.6% in September. Spending for commercial buildings has fallen 34% since the peak in early 2008. Most of the steep decline in this market is now over, according to Reed Construction Data. Spending for institutional buildings has dropped 3% since the peak earlier this year. Full Story

Over the past 30 years or so, the healthcare industry has quietly super-sized its healthcare facilities. Since 1980, ORs have bulked up in size by 53%, acute-care patient rooms by 77%. Now it's time for AEC healthcare professionals and hospital executives to put the emphasis on right-sizing, not super-sizing, acute-care facilities, according to Building Design & Construction. Full Story

Green building activity has sustained impressive growth during 2009, amid a brutal construction market that has decimated other segments of the construction marketplace, according to the 2009 Green Building Market & Impact Report published by GreenerBuildings.com. Floor area registered and certified by the U.S. Green Building Council's LEED green building rating system in 2009 is estimated to grow by over 40% compared to last year's totals, for a cumulative total of over 7 billion square feet worldwide since the standard was launched in 2000. Full Story

The Penn State Board of Trustees approved final plans for a new, free-standing Penn State Hershey Children's Hospital to be built on the campus of Penn State Milton S. Hershey Medical Center in Hershey, PA. The new 252,000-square-foot Children's Hospital is a five-story building with an additional floor below ground. The facility will include pediatric surgical suites, private pediatric and adolescent patient rooms, outpatient clinics for children with cancer, and a new pediatric radiology unit, reported Penn State Live. Full Story

SECURITY & SAFETY

Security Management magazine looks at biometrics, as these technologies become more affordable and user-friendly. The article also offers a case study on a health club that implemented a biometrics solution for member access at its 16 facilities. Full Story

GOVERNMENT AFFAIRS

Alabama Gov. Bob Riley announced the allocation of $236 million in interest-free bonds to help all 46 school systems that applied from across Alabama to finance the construction or repair of public school buildings, reported WAFF48News. Full Story

Wyoming Gov. Dave Freudenthal has stated that he will not mandate green building codes in his state. While many other states in the nation are instituting green building programs, Wyoming will buck the trend, reported Mother Nature Network. Full Story

SMALL BUSINESS NEWS

On Friday, November 6, 2009, the President signed the Worker, Homeownership, and Business Assistance Act of 2009 into law. In addition to extended unemployment benefits, the new law extends and expands the temporary first time homebuyer's tax credit and the temporary Net Operating Loss (NOL) carryback relief. The bill also extends a temporary FUTA surtax of 0.2% of wages up to $7,000 per employee that was scheduled to expire at the end of this year. It has been extended through June, 2011. It also increases a failure to file penalty for partnership and S Corporation entity level returns.

Earlier this year, the American Recovery and Reinvestment Act of 2009 extended the net operating loss carryback period from two to five years for tax years beginning in or ending in 2008 for small businesses with gross receipts of $15 million or less.

The new law allows all businesses to carry back net operating losses for up to five years for losses incurred either in 2008 or 2009, but not both (at the election of the taxpayer). Businesses will be able to offset 50% of the available income from the fifth year and 100% of all income in the remaining four carryback years. The two positives for small business is if you were fortunate enough not to have an NOL for 2008, but the economy caught up with your business in 2009 you can use the additional years. The second positive is that our understanding of the new law is that small businesses as defined by the provision that have already elected to carry back 2008 under the American Recovery and Reinvestment Act may also elect to carry back losses from 2009.

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

Bring DHI Classes to YOU!

Local Chapter and In-house Education enable DHI chapters and companies the means to provide DHI's renowned education sessions conveniently to local members and employees. Time away from home and out of the office will be reduced, which translates into even greater cost savings for your company. Chapters/Companies can purchase the instructor and student materials for many DHI training classes. The official end-of-class exam is included, and students who pass the exam receive the same, full credit towards a diploma - or towards meeting the requirements necessary for taking the AHC, CDC or EHC exams - as do students who pass courses offered through DHI's national schools.

Upcoming classes include:
Hoosier Chapter
November 19 & 20
CDC300 - Using Door and Frame Standards (16 hrs.)

Tennessee Valley Chapter
December 18 & 19
COR120 - Door and Frame Applications (16 hrs.)

For a complete schedule of upcoming classes in your area OR to find out how to conduct DHI local chapter or in-house training in your area, go to: www.dhi.org or contact DHI's Education Department at 703/222-2010 for details.

SPACE IS LIMITED AND CLASSES ARE FILLING FAST!
DHI's National School
April 25 – May 2, 2010 in Lansdowne, VA

Now is the time to set yourself above your competition! DHI's National Education and Certification Program are designed to help you do just that! With only 2 National schools scheduled this year, take advantage of DHI's upcoming May National school to increase your technical knowledge and hone your skills!

This upcoming school offers 28 different classes – including DAI 600 Fire and Egress Door Assembly Inspection class!

Please note that due to consistent high demand for DHI National Education, we recommend that you sign-up for classes as soon as possible to secure your spot BEFORE classes sell out. For a complete list of course offerings click here!

***Please be sure to check out the December issue of Doors & Hardware for a summary of the Fall National School.***