September 20, 2007

INDUSTRY ACCESS*

Marshfield DoorSystems, Inc. Purchases Precision Architectural Corp.

Marshfield DoorSystems, Inc. has purchased assets of Precision Architectural Corporation and is now operating the former Precision Architectural factory in Largo, FL. In addition, the company is manufacturing routed MDF doors for residential and commercial markets.

Largo will be managed within the Bolection Residential Door Division of Marshfield DoorSystems, Inc. Bolection is a division of Marshfield DoorSystems, Inc. out of Greensboro, NC. Located in Marshfield, WI, Marshfield DoorSystems is the leading manufacturer of architect specified commercial wood doors and door components. Marshfield DoorSystems, Inc. is owned by Wind Point Partners, a Chicago based private equity firm and its management.

For more information contact Marshfield DoorSystems at 715-486-2200 or visit www.marshfielddoorsystems.com

Stock Building Supply Acquires ProSource

Stock Building Supply has acquired ProSource Building Supply Ltd, Houston, TX, a construction services business supplying commercial doors, trim, hardwood, related specialty products and installation services, reported Modern Distribution Management. 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

After three months of substantial growth, the Architecture Billings Index (ABI) in August receded to a figure more in line with the scores seen throughout the spring. 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 August ABI rating was 53.9, down significantly from the near record 60.0 in July (any score above 50 indicates an increase in billings), and inquiries for new projects was 60.5. Full Story

The August Producer Price Index for Wood Doors (flush & panel, interior & exterior) was up 0.2% from 2006 and the Other Wood Doors (Incl. garage, screen, storm, etc.) PPI was up 2.1% compared to a year earlier. Compared to July, the unadjusted August PPI was unchanged for Wood Doors while the PPI for Other Wood Doors was down 0.1%, according to the Bureau of Labor Statistics. The PPI for Metal Doors, Sash & Trim was up 0.2% from July and up 2.5% from a year ago. Click here to view the full August Producer Price Index report. (PDF file - Wood Door information is on page 12 and Metal Door data is on page 17)

Fiberglass entry doors have been growing in popularity with homeowners and contractors since they were introduced in the 1980s. Although metal and wood doors still dominate the world’s residential entry door market, with the majority in metal, fiberglass, primarily compression molded sheet molding compound (SMC), has steadily gained market share in recent years and now accounts for about 30% of the U.S. market. While Canadian and U.K. usage is lower than that figure and there is currently little penetration in the rest of the world, some experts predict fiberglass doors soon will account for 50% of U.S. entry door installations, and they believe the product has good potential for growth around the globe, reported Composites Technology. Full Story

At mid-2007, the mounting turmoil in the financial and credit markets has raised concerns about the impact on the construction industry. During July and August, the financial stress widened, not just affecting subprime mortgage lenders, but also lenders engaged in more mainstream lending, as well as the stock market. Overall, total construction starts in 2008 had been expected to edge up 2% in current dollars, following a 6% decline this year. With the credit crunch further weakening single family housing and dampening commercial building, it is now likely that total construction starts in 2008 will see a current dollar decline of about 3%, according to McGraw-Hill Construction. Full Story

The economic environment for construction worsened significantly in August and early September as the damage from the collapse of the subprime mortgage market became both deeper and wider. Reed Construction Data (RCD) believes that the spillover to the broader economy will be largely contained, dropping real (inflation-adjusted) Gross Domestic Product (GDP) growth in 2007, and again in 2008, by approximately 0.3 percentage points. Full Story

Engineering News-Record has published it’s first-ever survey of the Top Green Contractors. The list is based on contractors’ 2006 revenue from projects registered with or certified by third-party ratings groups under objective environmental or sustainable development standards. Full Story

CONSTRUCTION & DESIGN

Office construction spending was sluggish early in this business expansion, but then jumped 31% during the 15-month period ending in June. A further 18% gain is expected by the end of 2008. The building surge is being fueled by a decline in office vacancy rates, according to Property & Portfolio Research, with rates falling from 17% to under 15%. Office rents also are rising, up 10% over the last 15 months. Low-rate rental contracts signed during depressed market conditions in 2002 are now being renewed at 10-20% higher rates. Real estate investors see offices as an attractive market that offers positive net operating income and potential capital gains as office properties continue to increase in value. The office building boom will last several more years, although the growth pace will slow, reported Building Design & Construction. Full Story

A growing share of homeowners are concerned with utility costs, which has led to an increase in demand for energy efficient solutions, greater popularity of home offices, along with healthy business conditions in the home improvement sector, according to the American Institute of Architects Home Design Trend Survey for the second quarter of 2007 that focused on systems, technologies, and functional rooms in the home. Full Story Full Report

New RSMeans data shows that vocational schools carry the highest construction costs among K-12 schools. Full Story

SECURITY & SAFETY

School administrators, teachers, parents, law enforcement and community groups can now better coordinate efforts to ensure their schools are prepared for external and internal threats, thanks to a new school safety CD launched in Pennsylvania. Attorney General Tom Corbett explained that the PA Attorney General's Office followed a concept and model created by the Susquenita School District and its superintendent Dr. Dan Sheats, to create a CD that walks schools through the step-by-step process of designing a school safety plan. Full Story

The U.S. General Services Administration Public Buildings Service has just completed a new publication that establishes guidance, explores various elements and best practices and lays out the process for designing site security at federal facilities. The Site Security Design Guide establishes guidance, explores various elements and best practices, and lays out the process security professionals, designers, and project managers can follow in designing site security at GSA’s federal facilities. The guide’s approach is also applicable to nonfederal facilities as well. Full Story

Security Distributing & Marketing offers a general list of questions or a template of issues that need to be discussed with customers when designing and installing a job that integrates access control and video surveillance equipment. Full Story

GOVERNMENT AFFAIRS

The construction industry is predicting "economic chaos" will result in Texas and the U.S. if new federal immigration reform regulations are launched. The new rules from the U.S. Department of Homeland Security require employers to start firing illegal workers as early as mid-January 2008, or employers could face possible criminal prosecution and steep fines. The change was to have gone into effect on Sept. 14, but was delayed until after an October hearing in an AFL-CIO lawsuit over the edict, reported the Dallas Business Journal. Full Story

In California, a state public utilities commissioner and administrative law judge issued a proposal for energy-efficiency measures , including "zero net energy" standards for new residential construction projects beginning in 2020 and commercial construction beginning in 2030, reported the Sacramento Business Journal. Full Story

SMALL BUSINESS NEWS

Tax Identification Numbers

The Treasury Inspector General for Tax Administration (TIGTA) has issued a report about the Internal Revenue Service’s handling of Forms 1099. This is the statement that a business files with the IRS when it pays someone over $600 for services. It found in Tax Year 2004 alone, the IRS received about 3.8 million miscellaneous income statements (reporting approximately $150 billion in earnings) that could not be computer matched to a filed tax return because of missing or erroneous identification numbers.

TIGTA went on to note that one of the tax gap proposals in the President’s Fiscal Year 2008 budget recommended legislation that requires businesses to verify the accuracy of identification numbers for the independent contractors they hire and to withhold taxes from those whose identification numbers do not match IRS records.

Immigration Reform

The Department of Homeland Security’s (DHS) proposal to tie the Social Security Administration’s "no match" letter program to DHS enforcement efforts has been put on hold.

Opponents have secured a temporary restraining order and now opponents and the DHS will duke it out in court. The SSA issues no match letters when there are 10 or more W-2s for which they cannot match the information to an account. These letters are issued annually after employers file their W-2s and they were due to be issued this month.

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

Foundation Board Sets Direction

The Foundation board met in mid-August to discuss programs and initiatives important to the direction of the Foundation. A few of the decisions made include:

Continue to create awareness for the fire-door inspection initiative by offering the one-day fire-door training class to the AHJ community. The end result of this class is to provide a high-level overview to the AHJs so that they have a better understanding of the complexities of the fire-door inspection initiative and a clear vision of the role DHI trained, and Intertek Warnock Hersey certified, individuals play in this initiative.

Continue the Foundation’s goodwill program by helping Head Start centers in three areas of the country by upgrading a few of their facilities with needed doors and hardware. This is a program designed to 'give something back' from an industry that recognizes the need for improved life safety and security.

Create a program for the Foundation so that it will be the source for the Owner’s Guide: Swinging Doors with Builder’s Hardware and the AHJ Guide: Swinging Doors with Builder’s Hardware. These were two manuals written by DHI staffer Keith Pardoe, DAHC, CDC, to support the fire-door inspection program. The Foundation will be making these manuals available for sale.

Work on K-12 and college campus safety and security guidelines by offering the expertise and knowledge of the door and hardware industry. These guidelines will be used as a means to support school’s efforts and to educate local and federal officials as they all continue to address the increased needs in these important areas.

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

Please visit lifesafetyfoundation.cmarket.com to see what will be available for bid starting October 18th. There is still time to donate or sponsor an item. Please contact Bill Johnson if you would like additional information. bjohnson@dhi.org or 703.766.7039

Companies, Chapters and Individuals Committed to Making a Difference

Thank you to all of the individuals, companies and chapters that continue to support the foundation. Click here for a complete list of contributors (as of September 5th).

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

Avoid Standing in Long Onsite Registration Lines for DHI’s 32nd Annual Conference and Exposition,
October 13 – 20, 2007 in Nashville, TN— Contact DHI to Register!

For only $245 member/ $345 non-member, DHI’s FULL CONFERENCE PACKAGE provides you 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 this 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!

PLUS! Don’t Miss the 2007 Forum for the Future, Thursday, October 18, 2007, from 12:30 – 4:15pm! Sponsored by the Foundation for the Advancement of Life Safety and Security, this foremost industry event will speak to the business aspects associated with the 2007 edition of NFPA 80 Standard for Fire Door and Other Opening Protectives requirements for the annual inspection of fire-rated door assemblies. This year’s event will provide exclusive insight into the insurance, staffing, marketing and financial ramifications of becoming engaged in this initiative. Additionally, DHI will provide an overview of the inspection guidelines, checklists, reports and model contractual agreements that will be used to support anyone providing these inspections. Register TODAY to reserve YOUR spot!

Call DHI directly at 703-222-2010 to register for this annual industry event!