September 6, 2007

INDUSTRY ACCESS*

JELD-WEN Continues to Expand

About 85 manufacturing jobs are expected to be created over the next three years as JELD-WEN begins to operate a new feeder facility for its existing plant in Yakima, WA. The Klamath Falls, OR-based window and door manufacturing company plans to spend about $6.5 million renovating an older building that was on the property when the company purchased the land several years ago, reported the Yakima Herald-Republic. 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 National Association of Wholesaler-Distributors (NAW) is one of nine organizations that joined in filing an amicus curiae ("friend of the court") brief in the Supreme Court of Ohio in a case focused on the retroactive application of the doctrine of strict liability (i.e., liability based on the condition of a manufacturer’s product rather than the conduct of the defendant) in product liability actions brought against non-manufacturer product sellers (e.g., wholesalers, distributors and retailers). According to NAW President Dirk Van Dongen, the association views DiCenzo as a "major, even seminal case that carries with it profound legal and economic ramifications for wholesaler-distributors in Ohio and across the nation." Full Story

Key players in real estate and construction misjudge the costs and benefits of green buildings, creating a major barrier to more energy efficiency in the building sector, a new study by the World Business Council for Sustainable Development (WBCSD) reports. Respondents to a 1,400-person global survey estimated the additional cost of building green at 17% above conventional construction, more than triple the true cost difference of about 5%. At the same time, survey respondents put greenhouse-gas emissions by buildings at 19% of world total, while the actual number of 40% is double this, reported Buildings.com. The findings are disclosed in a new report titled Energy Efficiency in Buildings: Business Realities and Opportunities that summarizes the first phase of the WBCSD's project. Full Story

Canada's non-residential construction industry is expected to overcome rising costs and post record profits of C$2 billion in 2007, before tailing off for four years, the Conference Board of Canada says in its industrial outlook report. The prediction comes after more than three years of growth, reported The Toronto Star. Full Story

Here's the next shoe to drop as a result of the bursting of the credit bubble: commercial real estate. It won't be anywhere near as dramatic as the fallout in the residential real estate market. But, at the same time, it won't simply be a temporary disruption in financing followed by a modest correction in pricing that the industry is now predicting. In markets like Washington, New York, Boston and San Francisco, the last four years have been among the best the industry has ever seen - falling vacancy rates, rising rents, soaring values and a ton of new development. Now, that's all about to come to a grinding halt as financing becomes more expensive and more restrictive, the economy slows and a big slug of new inventory hits the market, reported The Washington Post. Full Story

BEES 4.0 (Building for Environmental and Economic Sustainability version 4), the new version of the National Institute of Standards and Technology's (NIST) software tool for selecting environmentally preferred, cost-effective building products, was released. It updates data on more than 200 products and adds 30 new products for review. It also offers users the option of a new set of consensus weights for scoring the environmental impact of individual building products. Click here for more information.

CONSTRUCTION & DESIGN

State and local governments are in the middle of a building boom that has helped keep the economy afloat and offset job losses from the decline in home construction. The construction of sewer plants, schools, ball fields and other government facilities soared 11.1% in the first four months of the year to a record annual rate of $257 billion, according to a USA Today analysis of the most recent Census data. Full Story

Eco-conscious retail development is catching on across the country, especially in California, where cities from San Diego to San Francisco are considering new commercial building ordinances to encourage builders to go for the green. However, multi-tenant retail outlets don’t want to modify store designs, pay higher rents, or replace vendors to obtain recycled materials, reported Building Design & Construction. Full Story

SECURITY & SAFETY

Inspectors found numerous building and fire code discrepancies at the University of Connecticut during a summer-long inspection blitz to check the safety of buildings renovated through the UConn 2000 construction program. Most of the discrepancies involved problems such as a lack of emergency lighting, missing exit signs and inadequate door hardware, but inspectors also found problems with some fire doors, handrails and alarm systems. The university corrected many of the problems before classes started. The remainder will take longer because they involve ordering parts, such as new fire doors, reported The Hartford Courant. Full Story

Security Sales & Integration summarizes security improvements in K-12 schools in various states. Full Story

Security dealers today have more options than ever for controlling access to customers’ doors or other openings. A Security Distributing & Marketing article focuses on stand-alone electronic lock systems that have an extra level of intelligence at the door or entry point, eliminating the need to run wiring from the door to a centralized access system controller. Full Story

GOVERNMENT AFFAIRS

The number of government green building programs has nearly tripled in the last three years to over 113 municipal programs, according to a recently updated Government Green Building Programs Inventory, reported Facilitiesnet. Full Story Read the Report

Dozens of New York State construction projects will have to meet new environmental standards beginning next year. The Dormitory Authority, a state agency that provides financing and construction services to public and private universities and nonprofit health care facilities, will require new projects to meet Leadership in Energy and Environmental Design, or LEED, standards, reported Newsday (NY). Full Story

SMALL BUSINESS NEWS

A Look Ahead

While those industries dependent on the housing market will tell you they have seen it coming for awhile, the harsh reality of a soft market on folks such as the construction industry have now settled in. Groups representing financial services were still feeling pretty good this spring. Now with subprime lending problems followed on the heels of "carried" interest, it will be a busy fall on Capitol Hill for them.

Consumer product safety will be on the Capitol Hill agenda. Senators Dick Durbin (D-IL) and Amy Kobluchar (D-MN) gave us a preview with some activity this summer. If your industry is even remotely associated with consumer products, consider this your five minute warning. At a minimum, look for efforts to beef up the Consumer Product Safety Commission’s (CPSC) authority to regulate. While China will get some short term attention because of an upcoming CPSC-China meeting here in DC this month, it is not just a "China thing;" it is a broader consumer safety pitch. One subtext is the regulatory emphasis appears to be shifting to a more prohibitive regime rather than one of disclosure.

Trade alphabet soup. The Trade Promotion Authority (TPA) has expired. This allows the President to negotiate trade agreements and Congress can only vote to approve or disapprove. The Trade Adjustment Assistance Act (TAAA) is expiring. This bill helps workers in industries most affected by trade problems to get training and so forth. Guess which one the President wants, and which one Congress wants. While everybody will be taking about trade, you've got to listen closely to what they are talking about as they are not speaking the same language.

Tax Gap vs. Revenue Offsets. The Department of Treasury’s report to Senator Max Baucus (D-MT) has taken some of short term energy out of that gap closing push. Instead, for the fall, the touchstone will be revenue offsets. Sleeper issue? Tinkering with independent contractor classifications could pop as somebody’s revenue offset.

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

Thank You!

The Foundation would like to thank our board members for taking the time to participate in the August board meeting. Board members include:

Officers
President James R. Tartre, CDC
Vice-President Martin J. Walsh
Treasurer Barry Shovlin

Trustees
Warren Hager
Jon Laing
Rick Liddell
David Neuner
Gary Phillips
Jason Pulliam
Ralph Vasami, Esq.
Gerald Heppes Sr., CAE

Development Committee
Richard Barnhard, DAHC/CDC, FDHI
Susan Gosney, FDHI
Mark Hallgren, AHC
James Jeffrey Wherry

BOG Liaison
Dale Garrett, AHC

We thank you for taking the time away from your schedules to be a part of these important meetings and to continue setting the direction of the Foundation.

The Foundation’s 2007 Online Auction is Looking for Donors and Sponsors

The Foundation for the Advancement of Life Safety and Security, in conjunction with the DHI Conference and Exposition, is hosting their 2nd annual online auction. Donors can offer items such as vacation getaways, prime seats at a sporting event, VIP access to special events, unusual trips, golf outings, sail boat ride, etc.

If you don’t have direct access to a travel package or prime seats at an event, you may want to consider sponsorship. Sponsoring a package would enable you to advertise your company name in conjunction with a specific item. A few of the packages available for sponsorship include:

Super Bowl XLII on February 3rd in Glendale Arizona w/Airfare
New York Broadway Package w/First Class Airfare
Golf anywhere in US/UK for 5 Days/4 Nights at any Marriott Golf
Resort

If you would like to support the Foundation by making a tax-deductible donation or have an interest in sponsoring a travel package, you can:

Send an email to Bill Johnson (bjohnson@dhi.org) or call 703.766.7039 to discuss your auction item or interest in sponsorship.

We will continue to collect donations until late September. Following the close of donations, we will open bidding to the online auction on Thursday October 18th, during DHI’s 31st Annual Conference and Exposition. The auction will run until November 2nd. As a donor or sponsor to the auction, we will place a sign in your booth (if you are exhibiting) showing your support and we will also have a sign at the Forum for the Future advertising your support of our auction event along with other printing material and a place on the Foundation's website.

This is an excellent opportunity to support the Foundation. If you have any questions about this online auction, or need further information, please contact Bill Johnson directly at 703-766-7039.

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

DHI NEWS

ONLY 8 DAYS LEFT to Pre-Register for DHI’s 32nd Annual Conference and Exposition, October 13 – 20, 2007 in Nashville, TN!

Many of your peers have already made their plans…Have you?

Take Advantage of DHI’s Full Conference Package!
For only $245 member/ $345 non-member, you will receive access to the Conference and Exposition activities PLUS select Thursday DHI Education Sessions including:

Aftermarket Sales & Building Renovations [ELT500]
How to Develop & Retain Customers [ELT510]
Professional Sales [COR165]
Writing Electrified Hardware System Specifications [EHC415]

Class sizes are limited, so call TODAY to reserve your spot!

This is YOUR industry and YOUR event! As a leader in Life Safety and Security you can’t afford to miss monumental industry event featuring the launch of the Annual Fire Door Assembly Inspection Program (AFDAIP), the debut of the AFDAIP business model at the Forum for the Future and the most expansive DHI course offerings in one location!

PRE-REGISTRATION CLOSES SEPTEMBER 14, 2007! Make sure you reserve your spot for this industry event TODAY!

Go to www.dhi.org/annual/Attendees/Nash_AttRegistration.html or call DHI directly at 703-222-2010 to get registered for this exciting event!

Don’t forget to ALSO make your housing arrangements! The Gaylord Opryland Resort & Convention Center, the Radisson Hotel at Opryland, the Hyatt Place Opryland and Embassy Suites Nashville-Airport ARE FULL! Space is still available at the Holiday Inn Select Hotel/Opryland/Airport. Go online to www.dhi.org/annual/Attendees/Nash_AttHousing.html for more information. Contact the Housing Bureau directly at 866-578-8809, Monday – Friday from 9:00am through 8:00pm EST to make your reservations

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

Classes are FILLING FAST!!!!! CORE1 TRACK (Basic Architectural Hardware, Hardware Applications, and Using Codes & Standards), COR103 Using & Understanding Construction Documents and COR125 Takeoff & Estimating are ALREADY FULL!!!

Hurry to reserve YOUR spot!
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 to www.dhi.org/education/courselistings.asp or contact DHI directly at 703-222-2010.