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
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Greetings!
Cooler air temperatures aligning perfectly with the
Labor Day holiday provided most of us with a nice break from the summer
grind and a preview of the oncoming Fall season. Activity in
construction historically picks up betwen now and the Thanksgiving
holiday and we look for the trend to continue this
year. Taking advantage of any increase in demand
while performing to quality standards can be a daunting task
in today's business climate. Most of us in the industry
today are having to do more with less in terms of job
duties. Last month's newsletter
spoke about the "business as usual" model being a
poor model in this economic environment. I recently an
article by Peter Bregman from the Harvard Business Review which
expands on this thought. Here is an excerpt:
"To really think out of the box - you might be better off
starting from a different box than you're in. But that's easier said
than done: how can we escape the confines of our own history? Michael
Newcombe is the general manager of the Four Seasons in
Dallas. The recession has hit the hospitality industry
hard. Yet, when I stayed at the hotel recently, I was pleasantly
surprised by how little the downturn seemed to affect the hotel's
atmosphere. The quality of everything was impeccable, the staff were
warm, and morale seemed high. So I sat down with Michael again, this
time to discuss how he's managed to keep morale high in the midst of the
downturn. What I learned was a lesson in out-of-the-box thinking. In
the hotel business, jobs are specialized: maids clean the rooms, golf
attendants prepare the golf carts, and gardeners do the landscaping.
Historically, in a downturn, you cut each of those positions to the
minimum necessary to keep things moving at normal demand. But demand
is rarely normal. During a golf tournament, you need more golf staff;
during a corporate event, you need more dining staff. When there's a
spike, the skeleton staff in a particular area get overworked, and
performance, as well as morale, suffers. Entering this downturn,
there were two things that were most important to Michael and his
executive committee: remaining fiscally responsible and maintaining a
high-quality guest experience. So their goal was to reduce staffing
costs while keeping morale high - an almost impossible combination.
Almost. That's where they got creative. Rather than following
history, they started from their goal and worked backwards, questioning
everything else. Which is how Michael and his executive committee
decided to ignore the silos. They focused on retaining their highest
performing core staff - the ones who'd been with the hotel for 15 to 20
years - no matter what department they were in. That left gaps in
certain departments. Then, they aggressively cross-trained their core
staff. The people in laundry learned to clean golf carts. Housekeeping
learned to landscape. And room service learned how to work in the
restaurant. Initially there was some resistance as people moved
beyond their comfort zones, but they quickly adjusted. They were happy
to maintain their hours, increase the diversity of their work, and learn
additional skill
sets.
Instead of dipping, morale soared. Michael didn't evolve his
model from current practices. He broke the mold by questioning
everything in the service of his objective. Which, it turns out, is a
powerful model for creativity: think backwards from where you're going,
rather than forwards from where you've been. Identify the objective
that's most important and then question everything else, especially
standard practice."
Whoever thought backwards thinking could be an attribute!
Sincerely, Mark F. Smith G.W. Smith Lumber Co.
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Market Update:
SYP Lumber
Most buyers are very reluctant in purchasing anything past there two week needs because of uncertain demand. As
we proceed forward production continues to be reduced on the mill side.
We will see a leveling of print as the demand come in balance. There
have been a couple of 2-4 week production shutdown announcements this
week. Plan on deliveries to be 2 weeks and keep inventories at 30 days.
SPF Lumber
Activity was about the same
yesterday as it has been. Eastern mills are mostly relying on 2 week
order files hoping buyers will return before the files disappear. Price
levels are soft in comparison to western spruce pricing which is on the
rise. Buyers are mostly covering immediate needs or striving to hit
margins required for pending jobs.
OSB Panels The
OSB market ran flat this week as sales weakened. Order files extended
to 2 weeks at best, and higher asking levels were met with indifference.
With the Labor Day holiday approaching, prices will likely head
sideways. Dissapointing home sales data dealt a blow this week. Clearly,
further production curtailment and/or hurricane activity are required
to raise prices from this point.
The
Southern Pine Plywood market continues to struggle to gain ground.
Suppliers firmed their price levels and took the opportunity increase
the spread between 1/2 4 ply and 5/8 sheathing on the westside. What
remains noticeably absent, is the activity necessary to keep prices firm
and extend order files. Keep in touch with your LMC Plywood Buyer for
up to the minute market information.
Roofing
Roofing
activity and pricing are quiet for the time being, with no prices
increases posted at this time. Distributor inventories are ample
right now with product readily available.
Gypsum
The
major gypsum manufacturers had announced increases for August ranging
from fifteen to twenty percent. However activity and pricing are soft
right now, so the increase has been postponed until next
month. It's a wait and see game right now.
Fasteners & Metals
Price increase announcements have been made by Nucor (a major rebar
mill) for a $25 per ton ($1.25 cwt) or about 4% to be effective on
September 1, 2010.
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Meet Your Service Partner
Calvin Payne is
this month's service partner. As an outside salesman for GW
Smith, Calvin sometimes meets himself coming in as he's going out.
He logs a lot of miles in his attempt to keep his customers supplied
and happy.
Calvin is husband to Teresa and father to Adam, Tiffany, Heather
and Kristi. On the rare occasions when he gets to have some
free time, he stays busy with family, golfing and an ongoing
remodel of his residence.
Having logged thirteen years plus at GW, he is working on his next
thirteen. Calvin is definitely a salesman "in transit", but if you
look quickly you can see him low-flying through the store. But you will
have to be fast.
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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. |
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Join Our Mailing List
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
Deadline to Apply for EPA Lead Paint Certification Fast Approaching Remodelers
and other contractors have until Sept. 30 to get their companies
certified and to sign up for the training required to comply with the
EPA's Lead: Renovation, Repair and Painting Rule. Under this rule, which
went into effect on April 22, remodelers, window installers and other
contractors who work in housing and child-occupied facilities built
before 1978 are required to use lead-safe work practices unless those
homes are tested and found to be free of any lead paint. They also must
conduct consumer education and verify the clean-up of projects that
disturb lead paint in such buildings. In addition, the EPA requires
remodelers and contractors to complete six hours of classroom or online
training and two hours of hands-on training to comply with the rule. NLBMDA
along with NAHB and other industry groups spearheaded efforts to make
EPA aware that it had not approved enough trainers under the lead paint
rule and that consumers in some parts of the country could not find
certified renovators. As a result, EPA agreed to delay enforcement of
the certification requirement only. While remodelers now have until
Dec. 30 to complete the training, they may be required to demonstrate
that they have scheduled their training before this date. Contractors
should be aware that fines for infractions of the rule range as high as
$37,500 per violation per day.
TO APPLY
For
a firm certification form, click here. A completed form and $300 fee
must be sent to the EPA for approval. Once approved, your firm will
receive an EPA Lead Safe Certified Firm logo. Your firm will also be
added to the EPA's searchable database of firms certified to work in
pre-1978 homes. A list of approved training providers for individual
certification (certification that is required for the employee
supervising the lead-safe work practices for your company) is available
on the EPA website.
Builder Preparation For An Improving MarketWritten By Edsel Charles, MarketGraphics Research Group 1. Recognize the changing demographics in the home buyer's market: a. Baby Boomers are headed into a different buying pattern for house product, size and price. b. The regular retirement market started changing and growing in early 2006. c. There is a need for smaller, attached home product for first-time home buyers, older couples and singles. d. Price per square foot product is on the rise. 2. Plan on how to grow your business by borrowing little to no money. Yes! There is a way. 3. Direct your focus on pre-sales, not spec building. 4. Focus on offering exceptional, but limited, product lines. 5. Use MarketGraphics' Risk Analysis Marketing (R.A.M.) Data to locate the best areas to build for specific price ranges. 6. Know the affects that the interest rates have on home buyers. 7. Well planned Merchandising. 8. Creative marketing. 9. Test Real Estate Agents on their closing abilities. (9 Visible Signs of an Agent that will get Superior and Poor Results) 10. Surround yourself with correct business advisors.11. Refine estimating process. 12. Focus on advanced purchasing methods. 13.
Focus on not just the big things but also the little things. Doing so
could significantly increase your net (before tax) profit. 14. Know your weekly and monthly costs. a. Budget vs. Actual (by Job) b. Budget vs. Actual (by Company) c. Reviews and Projections on Cash Flow d. Reviews and Forecasting on Profit Margins e. Variance Review f. Fix Cost Before Buying g. Profit Program Use 15. Surround yourself with those who can be open with you and your decisions.
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New in our warehouse, 1x6
v-groove decking, has a full v-joint face on one side and an edge and
center bead on the other side.
"Ashton Lewis Southern Yellow
Pine Pattern & Finish Work is precision milled with a Weinig
moulder to an architectural quality. We are proud and stand by the
quality and consistency of our millwork."
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TAMKO -TAKE IT OUTSIDE- REDEMPTION FORM
Sign up for rewards for using Tamko roofing and decking products
Click on the link below - download the redemption form - fill out and mail per instructions
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