July 26, 2007

INDUSTRY ACCESS*

Owens Corning Reaches Definitive Agreement to Sell Norandex for $371 Million

Saint-Gobain has acquired the Norandex group from Owens Corning. Norandex group is split into two units: building materials distribution and vinyl siding manufacturing. The deal values Norandex at $343 million. Norandex had sales of $866 million in 2006. The Norandex brand, which will be integrated into Saint-Gobain’s Building Distribution sector, has a network of 153 specialized distribution branches dealing mainly in exterior building products (siding, doors, windows, etc.) 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 Architecture Billings Index (ABI) increased more than four points in June reaching its highest mark of the year. As a leading economic indicator of construction activity, the ABI shows an approximate nine to twelve month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the June ABI rating was 59.3 (any score above 50 indicates an increase in billings), and inquiries for new projects was 62.6. Full Story

A boom in construction activity and a shortage of skilled labor continue to drive up construction costs, though not as rapidly as the past two years, an executive for Turner Construction in New York said. Turner's Building Cost Index registered 847 in the second quarter, a 1.9% increase from the first quarter and 7.6% increase from a year ago, reported BuilderOnline. Full Story

The June Producer Price Index for Wood Doors (flush & panel, interior & exterior) was up 0.5% from 2006 and the Other Wood Doors (Incl. garage, screen, storm, etc.) PPI was up 1.5% compared to a year earlier. Compared to May, the unadjusted June PPI was down 0.1% for Wood Doors while the PPI for Other Wood Doors was unchanged, according to the Bureau of Labor Statistics. The PPI for Metal Doors, Sash & Trim was unchanged from May and up 2.3% from a year ago. The June PPI for Door locks, locksets & locktrim was up 0.5% from May, and was up 6.4% from 2006. Click here to view the full May Producer Price Index report. (PDF file - Wood Door information is on page 12, Lock data and Metal Door data is on page 17)

ANSI-accredited standards developing organizations (SDOs) are invited to participate in the High Performance Building Council (HPBC), launched under the auspices of the National Institute of Building Sciences (NIBS). The HPBC has undertaken an assessment of current voluntary consensus standards and rating systems for high performance buildings, how they can be used, and what other standards are needed. By conserving, harvesting, and reusing nature’s resources, high performance buildings incorporate sustainable features to minimize strain on the environment and local infrastructure. Full Story

By June of 2007 employment in the construction industry had fallen only 44,000 from a cyclical peak reached last September, despite major contractions in other measures of construction activity, according to estimates from the Bureau of Labor Statistics. A statistical modeling based on these official estimates suggests that construction employment could fall another 246,000 by the fourth quarter of 2008, reported Building Design & Construction. Full Story

The Green Chamber, the first national business organization created to serve the practical and legislative needs of thousands of “green” businesses and organizations was introduced recently. Formed as a non-profit, 501c6 organization with lobbying capability, the Green Chamber is a direct result of thousands of green companies looking for an organization that can serve their diverse interests, including providing a standard for defining what is, indeed, a "green" business as well as having an organization that can speak to their needs for legislation to advance the growth of green businesses in the U.S., reported GreenBiz.com. Full Story

CONSTRUCTION & DESIGN

The year-to-date value of construction starts through June 2007, excluding residential contracts, totaled $152.2 billion, 19.7% higher than in first-half 2006, according to Reed Construction Data. A decline in year-to-date residential starts is expected to offset most of the increase in non-residential starts. Non-residential starts in June, at $31.4 billion, were at a record-high level, 16% above the previous peak last November and 39% above year-ago June. The largest gains in new contracts were for offices, stores, hotels, factories and hospitals. The only significant month-to-month declines in new contracts were for public buildings, bridges and other civil projects. Full Story

Nonresidential building in June was $253.2 billion (annual rate), up a substantial 29% from the prior month with the help of a number of very large projects. These included five projects valued each in excess of $500 million. By structure type, hotels led June’s nonresidential expansion with an increase of 185%, reported Construction.com. Full Story

With existing structures comprising about 99% of the nation's building stock, LEED for existing buildings (LEED-EB) arguably should be the U.S. Green Building Council's top LEED category, one that could have a much bigger environmental impact than LEED for new construction (LEED-NC). With its focus on sustainable maintenance practices and on improving performance throughout a building's life cycle, LEED-EB is packed with potential that hasn't been realized since its provisions were finalized in October 2004, reported Building Design & Construction. Full Story

The retail sector has been slow to adopt LEED. Of the nearly 6,500 projects registered for certification through the end of April 2007, fewer than 100 were retail projects. The U.S. Green Building Council is hoping to boost its retail numbers with two new initiatives. The first is LEED-NC for Retail, which was recently released in pilot program. Currently, the USGBC is looking for large retail chains and major developers to partner with in order to test LEED for Retail standards. The second initiative is the volume build program, which allows companies to certify credits for all building aspects that don't change (such as interior layout), allowing them to concentrate on aspects that do change, such as site factors, reported Building Design & Construction. Full Story

The new LEED for Neighborhood Development pilot, which will include about 300 participants nationwide, is a more comprehensive look than existing LEED certification programs for buildings and interiors. Smart, environmentally conscious, infrastructure-related development is rewarded. Prerequisites include close public transportation, use of an infill or previously developed site, and nearby services like stores, schools, banks and restaurants, reported Reed First Source. Full Story

SECURITY & SAFETY

Property management, a key vertical for the security industry, has strong growth potential for the future. For example, commercial office space was identified by 30% of dealers and integrators responding to the SDM 2007 Industry Forecast Survey as the one non-residential market sector they expect to contribute most to their companies' growth in 2007, reported Security Distributing and Marketing. Full Story

The National Burglar & Fire Alarm Association (NBFAA) is urging its members and others to support the Long-Term Care Life Safety Act, a new bill introduced by Rep. Michael Arcuri, D-N.Y. Introduced recently at the request of NBFAA, the legislation (H.R. 2882) is designed to establish a grant program within the Department of Health and Human Services to promote professional retrofit installation of fire alarm detection systems and other fire prevention technologies in assisted living and hospice facilities, and nursing homes, reported Security Sales & Integration. Full Story

GOVERNMENT AFFAIRS

A bill in the Massachusetts Legislature would provide tax credits to building developers, owners, and tenants, who for commercial and multi-family residential buildings invest in measures to increase energy efficiency, improve indoor air quality, and reduce overall environmental impacts. The proposed tax credits would begin in 2008 and apply to commercial construction larger than 20,000 square feet and residential projects of 12 units or more. The credits would be distributed over a five-year period once the project is underway. The green building tax credit subsidies would be capped at an annual cost to the state of $25 million with a per project maximum benefit of $2 million, reported The Boston Globe. Full Story

Minnesota Gov. Tim Pawlenty today announced the establishment of the Minnesota School Safety Center, which will develop a framework for all-hazard safety planning for schools and will coordinate activities of federal, state and local partners, reported The Hutchinson Leader. Full Story

SMALL BUSINESS NEWS

Small Business Procurement

During a hearing on small business contracting last week, Senate Small Business Chairman John Kerry (D-MA) and Ranking Member Olympia Snowe (R-ME) indicated that they will support legislation that will help ensure that small businesses are competitive in bidding for federal contracts.

Senators Snowe and Kerry contended that the federal government has fallen short of the goal, put forward by Congress, to ensure that small businesses receive at least 23 percent of the federal contracts. While the Small Business Administration (SBA) continues to insist that the federal government exceeds the 23 percent threshold mandated by Congress, closer inspection reveals that a substantial number of contracts intended for small firms go to larger businesses. According to Eagle Eye Publishers, Inc., only 20 percent of the $412 billion of federal contracts went to small businesses in 2007.

The differences between the two percentages stem, in large part, from a lack of oversight of federal contracting procedures. According to Senator Kerry, the large majority of federal contracts that are meant for small businesses are not reviewed after they are granted. As a result, many end up going to companies that had once been small businesses but which grew into large businesses or that were acquired by large corporations. These small business contracts sometimes are not even granted to companies, but instead go to state or local governments or nonprofit groups.

On June 30, 2007, the SBA promulgated new rules that were intended to close loopholes that allow large companies to win and keep small business contracts. These new regulations would require companies with federal contracts to recertify their size status. Under previous law, federal agencies were allowed to count all contracts given to small businesses as small business contracts, even if the company had been acquired by large corporations or had exceeded the size standard.

SCHIP Reauthorization

While Congress is not ready to take on the cost of health care, there is some activity on the health care front. Congress is considering an expansion of the State Children's Health Insurance Program (SCHIP). The program, originally enacted 10 years ago, is designed to help ensure health insurance coverage for children whose parents' income are above the level to qualify for Medicaid assistance but cannot afford to buy their own insurance. The bill has bi-partisan support and will easily garner the 60 votes necessary to avoid filibuster in the Senate.

There is some concern about expansion of the program as a precedent for universal coverage proposals. The SCHIP proposal seeks to expand coverage to families who are at 300% of the federal poverty level. According to the Department of Health and Human Services Poverty Guidelines for 2007, this would cover a family of four with an income of $61,950. The median household income in America was approximately $46,000 in 2005.

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.

FOUNDATION NEWS

Foundation to Help Raise Awareness in Large Northern Virginia School District for Additional Security.

Foundation president James Tartre, CDC was invited to a meeting with the deputy superintendent of the Loudoun County Public Schools in Northern Virginia to discuss ways to help raise awareness for the merits of additional security at the county's K-12 schools. The school system is in the midst of implementing these additional security features as part of increased funding in their recently approved budget.

"It is important for parents to understand the benefits of this increased security without really infringing on the conveniences that they have been accustomed to when visiting the school." said Jim Tartre. "So many of these schools are relatively new so the changes will be subtle, but effective. We are looking forward to providing Loudoun County with information that will be useful to the parents and to continue to position the Foundation as a strong advocate in this area of expertise."

President Tartre Meets with the Staff of Senator Joseph Lieberman

President James Tartre, CDC met with the staff of Senator Joseph Lieberman (I-CT) to discuss school security issues in the aftermath of recent activities on college campuses.

Originally scheduled to meet with Senator Lieberman himself, that meeting had to be postponed due to conflicts that arose for the senator and a needed resolution of DOD funding issues that demanded the senator’s time.

"The fact that Senator Lieberman was willing to meet with the Foundation says a lot about how far we have come in a relatively short amount of time." said Tartre. "To eventually have the ear of the senator, who is also the chairman of the Senate Committee for Governmental Affairs and Homeland Security is a very positive outcome to our numerous visits to Capitol Hill."

The outcome of the meeting has produced a fire-door inspection class for first responders in Connecticut and has opened the door to discussions with the governor’s office and the Department of Education on issues that the foundation can play an active role in.

Companies and Chapters Committed to Making a Difference

Thank you to all of the individuals, companies and chapters that continue to support the foundation.

It is with this type of commitment that the foundation is able to continue to advance our important message of life safety and security.

Your support continues to make a difference. Thank you.

Donate Online at Foundation’s Website

To make an online donation, please visit www.lifesafetyandsecurity.org, click on 'Support Us'. You will see a button for 'Make a Donation'. You can use your credit card or your PayPal account.

Thank you for your consideration of support.

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

DHI NEWS

ONLY 9 DAYS LEFT TO RECEIVE ADVANCE REGISTRATION PRICING!
Sign-up by August 3rd, 2007 for EXTRA SAVINGS!

Make sure you receive ADVANCE REGISTRATION pricing for DHI's 32nd Annual Conference and Exposition in Music City, Nashville, TN, October 13 – 20, 2007!
Stay connected to the heart of the industry, be empowered by ALL that is available to you at this year’s event and establish yourself and your company as leaders in Life Safety and Security. You can't afford to be left out! With the launch of the Annual Fire Door Assembly Inspection Program (AFDAIP) and over 150 exhibiting companies showcasing the latest technologies, products and services, this event is the perfect opportunity to strengthen your position as an industry leader and advance the strategic direction of your company. This year's event will advance your career, improve your business and change your life!

HOUSING IS FILLING FAST— Contact the Housing Bureau directly at 866-578-8809 to make your reservations!

To register for DHI’s 32nd Annual Conference and Exposition, go online to www.dhi.org/annual or contact DHI directly at 703-222-2010 and we can get you registered over the phone!

Don’t Miss the LARGEST selection of DHI courses in ONE location!
October 13 – 18th, 2007 in Nashville, TN!

This is your LAST chance to receive DHI National Educational THIS YEAR! DHI education is for EVERYONE! Whether you are looking to expand your industry knowledge, working towards a DHI certification or just need Continuing Education Program (CEP) points, there is something for you! Come experience the most comprehensive and unparalleled technical education for the openings industry!

PLUS! Buy one day of education and receive access to the Conference and Exposition FREE! For a complete course listing and to register go online click here or contact DHI directly at 703-222-2010.