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December 17, 2009

INDUSTRY ACCESS*

Overhead Door Completes Wayne-Dalton Buy

Dallas-based Overhead Door Corp. has completed its purchase of the door and storm-panel operations of Wayne-Dalton Corp., based in southern Ohio. The deal creates the largest maker and distributor of residential and commercial overhead doors in North America, with a combined 3,800 employees, 24 manufacturing facilities, 79 regional distribution centers and 2008 revenue of about $1 billion, reported the Dallas Business Journal. 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 November Producer Price Index for Wood Doors (flush & panel, interior & exterior) was up 0.6% from 2008 and the Other Wood Doors (Incl. garage, screen, storm, etc.) PPI was up 1.7% compared to a year earlier. Compared to October, the unadjusted November PPI was unchanged for both categories, according to the Bureau of Labor Statistics. The PPI for Metal Doors, Sash & Trim was down 0.4% from October and down 3.3% from 2008. The PPI for Builders Hardware was down 3.5% from 2008 but up 0.4% from a month earlier. Click here to view the full November Producer Price Index report. (PDF file - Wood Door information is on page 16, Builders Hardware and Metal Door data are on page 22)

Manufacturing revenues will grow 5.7% in 2010 compared to a 10.7% decrease in 2009, according to purchasing and supply chain management executives in the Institute for Supply Management's December 2009 Semiannual Economic Forecast. The manufacturing sector, overall, is positive about prospects in 2010, with revenues expected to increase in 13 of 18 industries, while the non-manufacturing sector appears slightly less positive about the year ahead, with 8 of 18 industries expecting higher revenues, reported Industrial Distribution. Full Story

Construction materials orders, production and sales slipped lower in October and the previous few months were also revised lower. The temporary summer recovery was driven by the abrupt pickup in housing starts driven by federal home buying subsidies. The more recent cutback was the result of the delay in extending the homebuyer tax credit and the continuing decline in nonresidential construction spending. Some commercial building projects were suspended after work had started, reported Reed Construction Data. Full Story

Declines across the nation's commercial real estate sectors appear to be easing slightly as 2010 approaches, according to the Investment Trends Quarterly report, a study produced by the CCIM Institute and Real Estate Research Corporation (RERC). Despite the positive signs, however, growth across the commercial property markets is expected to remain sluggish through at least the first quarter of 2010, followed by a potentially meaningful recovery during the second half of the year, reported Facilitiesnet. Full Story

CONSTRUCTION & DESIGN

The year-to-date value of construction starts through November 2009, excluding residential contracts, totaled $247.1 billion, 6.1% less than in the same period in 2008, according to Reed Construction Data. Individual month of November starts were 7.0% higher than in October so the November total was more than a 20% increase after seasonal adjustment. November 2009 starts were about 8% higher than last November. Full Story

Wake Forest University Baptist Medical Center will build a 50-bed, $100 million hospital in Advance,NC and Novant Health Inc. will build a 50-bed, $100 million hospital in Clemmons, NC, reported The Business Journal of the Greater Triad Area. Full Story

Work had halted on 515 New York City construction sites as of November 29, the bulk of which were residential developments, according to a report by the New York Building Congress which was based on an analysis of Department of Buildings data. Full Story

SECURITY & SAFETY

A Vanderbilt professor has come out with a new book that argues that high-tech security measures, police officers in schools and zero-tolerance policies for drugs and violence do little to deter crime. In fact, Professor Torin Monahan argues, they may actually make students feel less safe, by sending them the message that adults distrust and fear them, reported the Tennessean. Full Story

Security professionals fitting applications and security products to a door, take on some of the responsibility for it. If the door does not perform its intended function, whether that is security, fire protection or panic or emergency escape, the finger of blame will point at the security professional, according to the UK's Info4Security. Full Story

Deerfield Elementary School will get a new, more secure entrance, paid for with a school safety grant from the Indiana Department of Education. Randolph Central Schools was one of eight districts to earn an Innovative School Safety Grant from IDOE. The $10,000 grant will help build a new entrance at the rural school, reported The Star Press. Full Story

GOVERNMENT AFFAIRS

The American Institute of Architects (AIA) and the National Electrical Manufacturers Association (NEMA) have called on Congress to support the enlarging the Energy Efficient Commercial Building Tax Deduction from $1.80 per square foot to $3.00 per square foot in order to help stimulate immediate job creation. A letter to Congressional members was also co-signed by over 50 organizations in the construction and environmental arenas. Full Story

A new program which would be formally dubbed Homestar but called in some circles "cash for caulkers," is aimed at spurring homeowners to retrofit their homes with energy-efficient technologies, reported The Christian Science Monitor. The White House aims to offer $23 billion in incentives for everything from weatherization to new doors and windows. These enticements will only work, many analysts believe, if the package can appeal to contractors and retailers as well as homeowners. Full Story Meanwhile, House Democratic leaders unveiled a $75 billion job-creation package that doesn't include the "cash for caulkers" plan, reported The Wall Street Journal. Full Story

A new green building law in Rhode Island applies to new construction of buildings larger than 5,000 sq. ft. and renovation of spaces larger than 10,000 sq. ft. It will apply to buildings entering the design phase after Jan. 1, reported the Providence Journal. Full Story

Illinois Gov. Pat Quinn signed into law a bill that allows the state to issue federal stimulus-supported bonds to fund capital projects, including school building projects. The state expects to issue up to $488 million in school construction bonds by the end of the first quarter of 2010, reported The Times. Full Story

After intense opposition from building owners, New York City Mayor Michael R. Bloomberg has dropped the most far-reaching initiative of his plan for reducing greenhouse gas emissions. The plan, which the owners said was too costly, called for all buildings of 50,000 sq. ft. or more to undergo audits to determine which renovations would make them more energy efficient, and for owners to then pay for many of those changes, reported the New York Times on the Web. Full Story

A proposal to establish green-building standards for commercial and multi-family residential projects in Atlanta is going to have to wait until next year. At its last meeting of 2009, the Atlanta City Council postponed action on a "sustainability" ordinance after failing to come to grips with whether the new law should lean more toward mandates or voluntary incentives, reported the Atlanta Business Chronicle. Full Story

SMALL BUSINESS NEWS

Formaldehyde Standards for Composite Wood Products Act

On December 10th, a bill to establish national formaldehyde standards for composite wood products was passed out of a U.S. Senate committee and could be up for a full Senate vote early next year.

Called the Formaldehyde Standards for Composite Wood Products Act, S. 1660 would set standards for domestic and foreign producers.

It would establish the first ever national standard for formaldehyde emissions, based on the new standards that California has started phasing in.

The California Air Resources Board, which is responsible for implementing that rule, has issued extensions to give businesses longer to clear their inventories of noncompliant products. California's rule covers emissions from products such as hardwood plywood, particleboard and medium density fiberboard, which are commonly used in furniture.

Under the proposed federal legislation, by Jan. 1, 2012, products sold in the United States would have to meet a formaldehyde emission limit of about 0.09 parts per million, which would be the toughest standard in the world

The Environmental Protection Agency will establish controls for the rule. The rule also requires Housing and Urban Development to update codes on formaldehyde levels in manufactured homes.

The legislation would require third party testing and certification to ensure compliance and direct the EPA and Customs and Border Protection to collaborate to enforce standards.

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

K-12 School Construction Legislation

Recently, DHI staff met with members of the U.S. Green Building Council, along with other associations, to discuss the creation of a coalition that will provide a strong voice for school construction issues.

This is timely since several pieces of legislation in both the House of Representatives and the United States Senate focus in on providing federal support for school building improvements.

The House passed H.R. 3221, the High Performance Green School Buildings Act in July 2009. The mandate is to make K-12 schools safe, healthy, high-performing, and technologically up-to-date.

The Senate's version of this legislation, the Reauthorization of the Higher Education Act, is also expected to include funding for school renovation, repair, modernization and construction, although no action has been taken to date.

In a separate piece of legislation, the Senate Appropriations Committee approved $700 million for the same purpose of school renovation and construction. This language is part of the Labor, Health & Human Services and Education Appropriations bill passed before the August recess. Debates still need to be scheduled for FY10 Appropriations legislation.

H.R. 748 – National Center for Campus Public Safety

DHI met with staff members of the Senate Judiciary Committee to receive an update on H.R. 748. This bill, sponsored by Rep. Bobby Scott (D-VA), has passed the U.S. House of Representatives and is awaiting action with the Senate committee. DHI will be working to gather support on the Senate side for this bill.

H.R. 748 is legislation which authorizes The Director of the Office of Community Oriented Policing Services to establish and operate a National Center for Campus Public Safety. Functions of the Center will include:

Providing quality education and training for campus public safety agencies of institutions of higher education and the agencies' collaborative partners, including campus mental health agencies.
Fostering quality research to strengthen the safety and security of institutions of higher education.

DHI NEWS

SURVIVING TO THRIVING IN 2010 AND BEYOND...

The 2009 Forum for the Future Video Presentation is NOW available! With 2010 just around the corner, resolve to re-visit this important industry research and remarkable business acumen delivered at DHI's Orlando, Fl Conference. Make a resolution to best position your company for what lies ahead in the coming year.

If you were a registered attendee at the 2009 Conference & Expo, or you are a DHI Corporate Member, contact us at 703.222.2010, or send us an email at forumvideo@dhi.org, with your contact/mailing information to receive a free Forum for the Future DVD, transcripts of the presentation, and online viewing access.

For all others who would like to purchase the DVD for your personal library for $99, click here to order through PayPal, or contact us with your credit card information and contact/mailing information.

Watch and listen to the feedback we received from the
2009 Conference and Forum for the Future

For those who wish to purchase the transcripts only (includes presentation graphics), for $50, please contact us for purchasing instructions at 703.222.2010 or E-mail: forumvideo@dhi.org

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