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June 12, 2008

INDUSTRY ACCESS*

Stanley Works To Acquire Sonitrol Corporation

The Stanley Works has entered into an agreement to purchase 100% of the shares of Sonitrol Corporation from an ownership group comprised of Carlyle Venture Partners, Wachovia Capital Partners and Spire Capital Partners as well as selected members of Sonitrol management for $275 million cash. Sonitrol, headquartered in Berwyn, PA, provides security monitoring services, access control and fire detection systems to commercial customers in North America via two monitoring centers and a national multi-channel distribution network.

Stanley Works is also developing plans to exit several small, non-strategic product lines during the remainder of the year with associated revenues of approximately $60 million. 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 current surge in construction materials prices is similar in scale to the initial period of the steep price rises in 2004-05, according to Reed Construction Data's Jim Haughey. That period of rapidly rising materials cost persisted for 22 months with an accumulated 18.3% rise in costs. Materials prices rose at a 16.5% annual pace in the first four months of 2008, close to the 18.4% rise in the same months in 2004. Full Story

The U.S. Green Building Council (USGBC) announced that as of January 2009 it will no longer certify buildings. That responsibility will pass to independent, accredited certifiers overseen by USGBC’s sister nonprofit corporation, the Green Building Certification Institute (GBCI), reported BuildingGreen.com. Full Story

Energy efficiency can contribute to the growth of state economies, and, by extension, to the U.S. as a whole, according to a sweeping new report of 48 state and regional energy efficiency studies by the American Council for an Energy-Efficient Economy (ACEEE). The review of 48 state- and regional-level efficiency potential studies performed over the last 16 years, concludes that energy efficiency will result in a small but net positive benefit for the American economy as a result of policies that emphasize investment-led energy efficiency improvements. Full Story View the full report (Free registration required)

CONSTRUCTION & DESIGN

The American Institute of Architects (AIA) Home Design Trends Survey found that as the housing market woes deepen, inflation affects the overall economy and utility costs continue to escalate, the size of the typical U.S. home is declining. Additionally the survey found there is an emphasis on greater accessibility throughout the home to address the needs of an aging population. Full Story Full Report

As California faces one of its worst droughts in two decades, building projects are being curtailed for the first time under state law by the inability of developers to find long-term water supplies. Water authorities and other government agencies scattered throughout the state have begun denying, delaying or challenging authorization for dozens of housing tracts and other developments under a state law that requires a 20-year water supply as a condition for building, reported the New York Times on the Web. Full Story (Free registration required)

The University of Chicago Medical Center, preparing to embark on a $700 million expansion, has settled on a final design for a new hospital pavilion that will use a modular design executives say allows for flexibility should future renovations be needed, reported The Chicago Tribune. Hospital executives say the design is flexible because it uses modular cubes that are each 31.5 feet across and 18 feet high. The more than 100 "repeating modules" on each floor can be reconfigured for a wide range of uses, allowing the facility to adapt to new technology and the ever-changing delivery of medical care. Full Story

An architectural movement is re-imagining the hospital of the past into a new building that brings in sunlight and nature, welcomes family and friends, and puts patients in charge in as many ways possible. The movement, called evidence-based design, is influencing the construction of hospitals and medical buildings across the nation, reported the Jacksonville Business Journal. Full Story

SECURITY & SAFETY

World demand for security equipment is projected to climb 7.8% annually through 2012 to over $90 billion. The strongest market gains will be registered in developing parts of Asia, Eastern Europe, Africa and the Middle East, and Latin America. Full Story

GOVERNMENT AFFAIRS

The House committed more than $20 billion over the next five years to help states build and renovate schools to make them more energy-efficient and good for the environment. Democrats said the 21st Century Green High-Performing Public School Facilities Act would save school districts billions in energy costs while reducing asthma and other environmentally linked health problems. The White House threatened a veto, saying it was wrong for the federal government to launch a costly new school building program. The money can also be used by states to bring public schools into compliance with fire, health, and safety codes. Full Story View the entire bill

A bill that's being heralded as a way for security integrators and manufacturers to greatly increase business with state and local governments passed the Senate June 10 and is expected to be signed into law by the president shortly. Called The Local Preparedness Acquisition Act, the bill extends cooperative purchasing to GSA Schedule 84. This means that state and local governments can purchase fire alarm systems, access control devices, perimeter security, video surveillance systems and other homeland security goods and services at GSA-approved prices, reported Security Systems News. Full Story

Just over ten years ago, California’s stringent environmental regulations had a reputation for scaring businesses away. Now, building owners are rising to the challenge out of a concern for the environment and the nation is beginning to look at California to set the bar, reported Green Building Services. Full Story

SMALL BUSINESS NEWS

2009 Budget Resolution

Congress has finally passed a fiscal year 2009 budget resolution, Senate Concurrent Resolution 70. For the record, it does include the "place holder" for estate tax relief. The budget numbers were calculated based on the expectations (primarily in the view of Senator Baucus as it was his amendment to the resolution) of what relief might be considered – a 45% rate and a $3.5 million exemption, but Congress can craft any type of relief as long as it fits within the budget numbers.

The 45% rate and the $3.5 million exemption are what will be in place in 2009 before the estate tax temporarily expires in 2010. In 2011, the law reverts to a 55% top rate and a $1 million exemption. If relief is to be enacted under the budget resolution, it would need the supermajority of 60 votes in the Senate to overcome objections, it would have to be offset with revenue raised elsewhere, and it would have to survive some other procedural hoops. A tough row to hoe to say the least, but it might just happen this year.

Electronic Payment Reporting

The House Small Business Committee will hold a hearing on Thursday, June 12, on the tax gap-closing credit/debit card receipts reporting proposal upon which we have reported on in previous issues of Industry Watch.

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

Over 1,000 AHJ’s attend Foundation’s Fire-Door Class

Since the first of this year, over 1,000 AHJ’s have attended Foundation events for the fire-door inspection program. Attendees are given a half-day overview of the code change, who will be performing the inspections, the industry leading this effort and information on why this needs to be enforced. Most recently, events in New Jersey, a state –wide fire marshal conference in Virginia, and a class in the state capital of Augusta, Maine have combined to attract over 500 individuals. In Virginia, the state fire marshal was in attendance for the entire class and in Maine, the state fire marshal was there to both welcome and thank the Foundation for putting on the seminar. Senator Susan Collin’s (R-ME) office was aware of our session in Maine and has been very supportive of our efforts in her state.

A special thanks to ASSA Abloy, Ingersoll Rand Security Technologies and VT Industries for their willingness to sponsor all of the AHJ classes and related events.

In a future edition, look for a complete list of those companies that have supported the Foundation by sponsored one or more of these AHJ events.

Foundation Fund-Raising Coming to a Close June 30th

Please consider continuing/renewing your support of the Foundation efforts. The programs the Foundation have created has established this industry as a leader in life safety and security and your financial support will allow these programs to continue.

Your name will appear on numerous occasions at this year’s DHI Conference and Exposition in Boston, on the Foundation’s website, and within numerous editions of the DHI Doors and Hardware magazine.

Most importantly, you have invested into the future of our industry and helped in establishing a dominant role in the inspection and secured environment process.

If you want to join us in this worthy cause, you can make a pledge by visiting www.lifesafetysecurity.org/FoundContribute.htm and clicking on 'Make a Donation' OR sending in your Foundation pledge to: 14150 Newbrook Drive Suite 200, Chantilly, VA 20151.

As always, thank you for your support.

Keep up-to-date with the latest Foundation news and programs, please visit www.lifesafetysecurity.org

DHI NEWS

Make Your Plans To Attend DHI’s 33rd Annual Conference and Exposition!
November 7 -15, 2008 in Boston, MA

CONFERENCE UPDATE: Housing Filling FAST! Make your reservations today!

Hotels rooms for DHI’s upcoming Conference and Exposition in Boston this November are filling quickly. DHI host hotels include: Westin Boston Waterfront, Doubletree Hotel Boston-Downtown, Renaissance Boston Waterfront Hotel and the Seaport Hotel.

For more information about the hotels and rates, please visit the DHI conference Web site at www.dhi.org/annual or call the DHI Housing Bureau at 866-578-8809. To take advantage of DHI’s conference rates, be sure to book your reservation by Friday, October 10, 2008.

Need DHI Education Locally?

DHI’s Local Chapter Education System and In-House Training Programs now make it possible! DHI Chapters and companies can purchase the instructor and student manuals for many of DHI’s technical classes and conduct the education session locally. Students who pass that exam will receive the same credit as students who attend DHI’s national class session. These programs help you to further customize your DHI education experience to be even more convenient and affordable!

For more information or to find out how you, your chapter or your company can participate in local DHI education, please contact Carol Granger directly at 703-766-7032