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March/April 2008
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Volume 8 | Issue 2 | www.nbmda.org |
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Inside NBMDA NBMDA's Copyright
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 DISTRIBUTION CEO
The ROI of Going Green: A CEO's Rationale for Adopting Sustainability by Anna Clark, President of EarthPeople
Profit Capture in a Down Market By Carl Cullotta Economic indicators and industry experts point to a prolonged downturn in new residential construction. Based on my conversations during this year's International Builders' Show, industry sentiment suggests a rebound will not occur until 2010. Moreover, there is increasing sentiment that the uncertain economy, new housing recession and tight credit will likely depress the remodel market over the next two years. What can manufacturers do to survive the next couple of years? Simply cutting costs to sustain profits may result in irreparable harm to your long-term market position.
NBMDA MEMBER SPOTLIGHT
Ken Harris: A&M Supply Corporation 
How long has A&M Supply Corp. been a member of NBMDA? Why did it join?
ASSOCIATION NEWS
NBMDA Partners with the Institute for Trend Research Economic Outlook Report Provides Insight into Key Leading Indicators for Building Material Distribution NBMDA announced that it has partnered with the Institute for Trend Research (ITR) to develop a series of customized economic reports produced exclusively for NBMDA members. Produced four times per year by an ITR Senior Economist, the NBMDA Economic Outlook Report correlates macroeconomic data to specific product categories directly related to the building material distribution industry. The reports allow member companies to forecast what effect the economy has on their business and what they can reasonably expect for up to six quarters in the future. .
Financial Dashboard & Industry Benchmarking
Register Now for the NBMDA Executive Management Conference
HOUSING HEADQUARTERS
Headlines from Around the Housing Industry
TAX TIPS
Selling Advantage/Reinvestment Advantage - The Low or No Tax Rates of Capital Gains and Dividends By Dr. Bart A. Basi Many people, from general employees, to business people, to investors don't have enough of an understanding of the tax rules and tax rates to effectively utilize the United States' tax code in their favor. Among all of the tax rules, an understanding of two key tax rates is vital for investors and business persons to lower their taxes. The two tax rates critical to business people and investors relate to dividends and capital gains . Dividend rates and capital gains rates have gone through such changes that most investors and business people are unaware of the current tax rates. Being that many sophisticated individuals lack this knowledge, people are missing out on many current opportunities to take gains at a tax free or nearly tax free rate.
The Other Part of the Economic Stimulus Package By Dr. Bart A. Basi Undoubtedly, by now, you have all heard of the Economic Stimulus Act of 2008 and the fact that tax rebate checks will be sent in May or June of this year. The media has done a wonderful job of broadcasting and informing the public of this part of the law. Unfortunately, the media has not informed taxpayers and business people of the other aspects of the Stimulus Act. The Economic Stimulus Act of 2008 also contains provisions to entice businesses to spend more money on large investments. Specifically, 1) the Section 179 Deduction, an additional depreciation election, has been greatly enhanced, and 2) Bonus Depreciation, also an additional depreciation section, is back.
DISTRIBUTION MANAGEMENT
Now is the Time By Dr. Rick Johnson With everything that has happening in the world around us including the economic crisis, the Bear Sterns bail out, the war in Iraq, the Presidential race and the scandal in New York about both the old and new governors, I thought I'd take this opportunity to suggest to all of you that Now is the Time to reflect on what's happening in our lives, around us and what we should expect from the future. First and foremost, now is the time to reevaluate our thoughts and our position regarding the war in Iraq . There is no question that our troops have done a tremendous job. I admit I was a staunch supporter of the war when it began. After 9-11 I would have reenlisted in the military myself if they would have accepted me. Now, however, I find myself struggling with many internal questions regarding this war. I am sure many of you have some of those same doubts. Not doubts about our troops but doubts about our reasoning behind our commitment to stay and what our real purpose and expectations should be. The pursuit of freedom is a chase of a lifetime but then we have freedom in this country. I believe it is never too late to become what we should be and not what a group of politicians say we should be.
Ten Strategies for Outsmarting the Competition It doesn't take any brains to beat the competition on price. But outsmarting the competition is quite different––and far more challenging and worthwhile. While low price gets an order, out maneuvering the competition gets a customer. Here are 10 moves to put competitors on the defensive. 1. Don't even think about faking it. Anyone in business who attempts to control the truth is extremely dangerous. It can't be done––at least for very long. There's always someone watching, blogging or carrying a cell phone with a camera. And there's always YouTube. Vaunted Southwest Airlines took a huge hit for its alleged overly cozy relationship with FAA inspectors. The company allowed 46 of its planes to fly that were out of compliance. There were no accidents but the airline's image crashed.
BUILDING GREEN
LEED for Homes Reference Guide Now Available Online The LEED for Homes Reference Guide, a comprehensive tool for residential builders using the LEED for Homes Green Building Rating System, is now available for purchase online at www.usgbc.org/store. The Reference Guide offers over 350 pages of information, resources and standards for the LEED credits covered within the residential green home certification program. LEED for Homes is a national, third-party certification program for green homes developed by the U.S. Green Building Council (USGBC). The rating program provides a framework for "whole building design" of homes that have lower utility bills, are healthier and more comfortable for the occupants, and are better for the environment.
Newly Released Studies Confirm Energy Savings Significant in LEED, ENERGY STAR Buildings Two recently released studies, one by the New Buildings Institute (NBI) and one by CoStar Group, have validated what the green building community has known all along: third party certified buildings outperform their conventional counterparts across a wide variety of metrics, including energy savings, occupancy rates, sale price and rental rates. In the NBI study, the results indicate that new buildings certified under the U.S. Green Building Council's (USGBC) LEED certification system are, on average, performing 25-30% better than non-LEED certified buildings in terms of energy use. The study also demonstrates that there is a correlation between increasing levels of LEED certification and increased energy savings. Gold and Platinum LEED certified buildings have average energy savings approaching 50 percent.
Nation's First Green Residential Remodeling Guidelines Launched Organized into the ten most common remodeling projects, the REGREEN Guidelines are designed to provide professionals and homeowners with resources and tools to green their home remodeling projects. The guidelines can be applied to a variety of projects, from remodeling a kitchen to executing a full-scale renovation.
HUMAN RESOURCES
The Sales to Payroll Delta: A Critical Planning Tool By Dr. Albert D. Bates, President, Profit Planning Group March 2008 Profit Improvement Report Payroll control is a critical issue for all NBMDA members. According to the latest OPR report, payroll and associated fringe benefits account for 62.2 percent of total expenses. In slightly different terms, payroll costs are 1.6 times as large as all other expenses combined. One important challenge in controlling payroll is finding a practical procedure for planning what payroll costs should be. It is not enough to simply suggest that payroll should be a lower percentage of sales, as that does not suggest how much lower payroll costs should be or how fast a reduction can be made.
Expert Insight - Five Ways to Reduce Work Distractions The main symptom of cogitus interruptus should sound familiar: an inability to complete a thought or a task without losing focus due to relentless interruptions. It steals time executives normally devote to solving problems and thinking strategically and, if left untreated, drains productivity – and quickly. But there's hope for sufferers - five techniques to help you find some quiet time to think. In order to overcome an annoying level of attention deficiency, it's important to understand to what extent interruptions now define our work days. Technology research firm Basex in 2005 surveyed more than 1,000 employees and found that knowledge workers lose about two hours per day due to unnecessary interruptions such as instant messaging, spam and phone calls. That same year, University of California , Irvine researcher Gloria Mark studied workers for about 1,000 hours and discovered each employee statistically spent only 11 minutes on any given project before being interrupted. Moreover, it took 25 minutes on average to return to that task.
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