News from G.W. Smith Lumber Co.

G.W. Smith Lumber Co.

... Since 1905

720 West Center St, Lexington, NC, 27292

ph 336.249.4941, fx 336.249.4913 Hours: M-F 7:00-4:00

www.gwsmithlumber.com

G.W. Smith Lumber Co. Newsletter

March 2011

Dear Customer,

Although the Spring season doesn't technically begin until March 22nd the recent weather has us hoping that Spring is arriving early this year... and not a moment too soon. Weather seems to affect our attitudes more than any one of us likes to admit. Warm, sunny weather leads to sunny dispositions. Although the housing market continues to suffer from a long hard winter, recent news such as the Builder Helper article enclosed provides glimpses of better times ahead. Local building activity has improved recently and more blueprints are being circulated for bid. More than likely Old Man Winter is not finished with us yet and the housing market will surely have more storms to bear. It is easy to let these unknowns translate into vulnerability, fear, and negativity. Just as the sun and warmer weather usher us into the Spring season our attitudes can usher the housing industry into a prosperous season. Take a hint from mother nature and help your business grow. But don't just "make hay while the sun is shining", stow some of that sunshine in your pocket for when it isn't. The struggles we face of boosting consumer confidence is half of the battle of getting our industry back on track. Arm yourself with a little sunshine and a postive attitude. If you're forced to go into battle you might as well do so with a smile on your face.

Sincerely,

Mark F. Smith

Meet Your Service Partner

This month's service partner is Wanda Stafford, who works in counter-sales and is also the outside-sales coordinator for Calvin Payne. Therefore, Wanda seldom has many free moments. She is an awesome multi-tasker though, juggling her resonsibilites between inside and out.

Wanda is a wife, mother and grandmother, who doesn't even look old enough for all that. She is also very busy at home, keeping up with husband Dennis, the grandkids, dogs, cats, hampsters and a fish pond.

Wanda also enjoys being outside working in the yard and the flowerbeds. Lots of fresh air and sunshine boost her spirits.

Thank you Wanda for your faithful service to GW Smith Lumber Co.

T E S T I M O N I A L

To whom it may concern:

G. W. Smith Lumber Company has been a business acquaintance of ours for the past nine years. We have been impressed with not only the quality of their products, but the quality and quantity of time they invest to be sure we get the best product for the job.

We have found them to be fair in pricing of their products, and willing to answer any questions we may have concerning any materials purchased from them. They have always served us with integrity, including treating warranty work with the same importance as new work.

We feel confident that G. W. Smith Lumber Company would be an excellent choice for getting quality service and products for other builders.

Sincerely,

Joseph Williams, President
LMI Builders, Inc.

Market Update

SYP LUMBER

Last weeks activity level is ongoing. Mills are enjoying renewed interest in for now. Bad weather has slowed production as well as take away, so the balance between the 2 seems to be in tact. Some of the bad weather has pushed loads that were supposed to ship last week into this week. Now with the weather being much more mild across much of the county take away has increased. Look for prices to continue to climb slightly for a while at least.

EASTERN SPRUCE

Activity was a little slow to start the week. Mill price levels were up compared to last week and order files were occassionally reaching into March. Buyers were a little surprised/ cautious about replacement costs and backed away from offers that did not meet immediate needs. Distributors were busy just making calls to figure where they should try and determine new selling levels

PRESSURE TREATED

Dimension: Treated lumber sales remain slow this week with another round of cold winter weather covering a large portion of the country. Prices on all # 2 dimension headed downward, staying within the single digit range, except for 2x12 westside.
Decking: Pricing should be flat to up $5/m by Friday's print.
Timbers: All items will continue to climb.

OSB

It took a few days to percolate, but the market kicked into gear this week after distribution and wholesalers found much of the prompt OSB they were counting on covering shorts with gone when they went to book it. Where did it go? In the hands of the LMC membership. Love it when a plan comes together! Expect sharp increases across the board when Random Lengths prints tomorrow. Order files range from 2-21 on the sghort side to 3-7.

ROOFING

For now most of the announced price increases have been pushed forward to April. Increases of from eight to ten percent have been promised.

GYPSUM

There is an announced increase for March 7 of $20/msf which would equate to about two cents a square foot, with higher amounts on specialty items like moisture resistant, mold resistant and shaft wall panels.

REBAR/METAL

Pricing has stabilized after the February 1 price increase, which was the fifth since November 30. No price changes have been announced yet for March 1. Scrap metal is currently flat.

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If you are receiving this newsletter by regular mail and would like to receive it by e-mail please call Fonda Moser at 336-249-4941 or e-mail her at fmoser@gwsmithlbr.com

Builder Helper

Fannie Mae: Housing Starts to Triple by 2013

Source: LoanRateUpdate.com

February 22, 2011 (Shirley Allen)

Despite data indicating otherwise, Fannie Mae is predicting that it expects housing starts to triple by 2013. According to the agency's economic outlook, housing starts are predicted to increase 17.3 percent and hit 710,000 this year, with another 47 percent increase to 1.1 million in 2012 and another gain of 42 percent in 2013 to nearly 1.5 million.

However, based on January's data, their prediction may be a little over optimistic. Data in January saw housing starts jump 15 percent compared to December for a total of 596,000 seasonally adjusted units, but building permits were down 22.4 percent, which is a sign of future building activity.

The highlight of the January housing report is the robust 80% gain in multi-family housing as single-family home construction dropped 1 percent compared to December. Multi-family construction is expected to increase as the housing crisis and tighter lending standards increase the number of renters.

In 2010, there were approximately 587,000 housing starts, that includes single family and multi-family units.

"We expect a small rise in home sales this year, but significant amounts of supply and shadow inventory of expected foreclosures will continue to hamper a robust housing picture for some time," said Doug Duncan, Fannie Mae's chief economist.

Fannie Mae projects total sales of new and existing homes to climb 4.5% in 2011 to 5.43 million, following an estimated decline of 6% for 2010 to about 5.2 million from 5.53 million for 2009. Mortgage originations will drop to $1.04 trillion this year from $1.53 trillion last year. Fannie Mae also expects mortgage rates will increase in 2011, but with rates remaining under 5.5 percent.

The median new home price in 2011 is expected to drop, as is the median existing home sale price, down 2.1% to $214,500 and 2.1% to $167,900, respectively, due to the large amount of competing foreclosures expected to enter the housing market this year.

Company News

G.W. Smith will be giving away 1,500 white pine tree seedlings Arbor Day week to local schools to be planted by students. Any leftover seedlings will be given away FREE to the general public on Friday, March 18th. Contact Fonda Moser at 336- 249-4941 for inquiries.

First come. First serve.

PRODUCT SPOTLIGHT

FAIRWAY VINYL SYSTEMS will be our new provider of VINYL RAILING and brought their Product Display Van (pictured above) to the GW Smith Chili Cookout on February 10th. There was a drawing for a Tiger Claw deck-fastening gun. The winner was Jeff Brinkley. Congratulations Jeff!