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In This Issue
12.06.2016
  • Real Issues. Real Answers. Razor-Thin Margins
  • The 5 Real Estate Trends That Will Shape 2017
  • Survey Says! The Biggest Threats to Housing: Compliance Burdens, Access to Credit
  • 2017 Housing Market Hinges On Consumer Sentiment
  • Heads Up Homeowners: Mortgage Interest Deduction on Trump's Chopping Block
  • News Briefs
  • Industry Events

Real Issues. Real Answers. Razor-Thin Margins

This month's question came from a dealer in Northern California, who wrote: "If a rising tide raises all boats, why do I feel like a submarine? We are several years now into the housing 'recovery' and margins are as challenged as ever. It is a very expensive proposition to run a full service production lumber yard, and there are not that many of us left. Am I the Lone Ranger, or is anyone else fist-fighting for a profit?"

As always, we reached out to our opt-in list of readers for their insights on this tough question, and we got another healthy response to our brief survey. A big thank you to the readers who took time to share their insights into this issue. If you'd like to participate in future surveys, please drop me a note, and I'll make sure we add your name to our list.


Read the whole story at LBM Journal

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Unified Purchasing Group: Volume Discounts for Your Organization

Unified Purchasing Group UPG offers eligible members significant savings on essential products and services from the most respected brands. We bring together independent suppliers in the construction industry to leverage collective purchasing power to negotiate significant volume discounts with vendor partners such as Verizon Wireless, UniFirst, Staples and other well-known brands. UPG membership provides economies of scale that help your organization better manage supply and operating costs.

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The 5 Real Estate Trends That Will Shape 2017

We won't pretend to know everything that 2017 will bring-heck, 2016 sure surprised us-but we're pretty certain there will be changes. A lot of them. And while the surprise triumph of Donald Trump in the presidential election won't alter the fundamentals shaping the 2017 real estate market, its impact is already being felt.

We've seen interest rates jump since the election, a movement that's likely to affect the youngest generation of home buyers.

Read the whole story at Realtor.com

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How long will we be holding steady?

BlueTarp IndexBlueTarp's quarterly Index shows how the health of the building supply industry is trending, compared to last year, by taking a look at driving factors:

• BlueTarp proprietary contractor spend and delinquency

• Building permits

• Consumer confidence

• Construction spend


Register to download BlueTarp's Index and review the factors influencing the overall state of the industry.
 

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Survey Says! The Biggest Threats to Housing: Compliance Burdens, Access to Credit

The industry is making progress when it comes to access to credit and compliance, but the same headwinds that burdened the industry over the past year aren't easing anytime soon, at least that's what people inside the industry believe.

Taking advantage of all the people in attendance at the 2016 Mortgage Bankers Association Annual Convention and Expo in Boston In October, Genworth Mortgage Insurance, an operating segment of Genworth Financial, surveyed industry executives, gathering opinions from more than 200 mortgage professionals to see the state of the industry.

Read the whole story at Housing Wire

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Viance announces Clarification and Enhancements to Above Ground Treated Wood Warranties

VianceViance’s warranty coverage includes Above Ground treated wood framing members that are critical to the safety and performance of the structure, including joists and beams. The recent modifications to the AWPA standards have created confusion with builders, dealers and code officials, and the misconception that all deck framing must be Ground Contact treated; this simply isn’t true.

Above Ground treatments remain code compliant for framing, including joists and beams, and should meet customers safety and performance expectations without introducing excessive chemicals into the environment, or to potentially increase costs unnecessarily.


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2017 Housing Market Hinges On Consumer Sentiment

Bad news for your favorite HGTV home renovation show. According to U.S. Census Bureau data, the rate-of-growth for Total Construction Spending on Residential Properties (single-family and multi-family homes) in the United States, including renovations, has drastically fallen over the course of 2016 following a five-year period of general improvement.

We entered 2016 with construction spending coming in 11.8% ahead of January 2015. By September of this year, that number had decelerated to a mere 0.9% improvement over September 2015. Similarly, during the same time frame, we saw growth in Total New Privately Owned Housing Units Started go from a robust first quarter performance, where starts came in 16.8% higher than the first quarter of 2015, to softening conditions during 3Q16 where starts came in 0.9% below the corresponding three-month period in 2015. See the chart below for further illustration.

Read the whole story at Forbes


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Trust Epicor® ERP Software to Help Boost Your Profitability

Epicor Century GordonIn today's market, you need business management systems that help you do more with less. Our customers-LBM dealers and distributors like you-say they have increased profitability through:
  • Increased employee efficiency,
  • Smarter purchasing and stock management,
  • Insightful pricing, rebate, and margin control,
  • Timely and accurate information, at all branches and while mobile, for better decision-making,
  • Enabling customer self-service.
We look forward to showing you the impact Epicor systems can have in your business. Explore Epicor LBM industry solutions at epicor.com/LBM or contact an LBM specialist at 1.888.463.4700 or LBM@epicor.com

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Heads Up Homeowners: Mortgage Interest Deduction on Trump's Chopping Block

For more than a century, homeownership has come with a small bonus: The mortgage interest deduction. It allows borrowers to deduct the interest paid on their home loans from their income taxes. Real estate agents, homebuilders and mortgage lenders have long used it as a selling point. Every so often it comes up in debate, but it is so popular that lawmakers are more than a little bit afraid to touch it. The future Trump administration apparently is not.

"We'll cap the mortgage interest, but we'll allow some deductibility," said Steve Mnuchin on CNBC Wednesday after confirming that has been asked by President-elect Donald Trump to head the Treasury Department.

Read the whole story at CNBC

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Screw Products, Inc. Receives ICC ESR-3654 For Selected Structural Screws!

Screw Products Screw Products, Inc. has received ICC Code Approval (ESR-3654) for its Bronze Star CCTX Star Drive Structural Lag Screws and Timber Hex TH & THG 5/16” Hex Head Structural / Landscape Screws. The Bronze Star CCTX are packaged in Bulk, 100ct, & 50ct with Free Star Drive Bit. The Timber Hex TH Black and THG Gray are packaged in Bulk & 50ct with Free Hex Bit. These screws are also available individually with UPC sticker. See our website for more information.

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News Briefs

DIGITAL CASE STUDIES: The Detering Company MORE

Tum-A-Lum to Acquire Marson and Marson Lumber MORE

U.S. LBM Names McGuiness Executive VP and CFO MORE

BlueTarp's Q3 Building Supply Index Shows Little Change Over Last Year MORE



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Roseburg DuraTemp® Real Wood Siding

Roseburg Roseburg DuraTemp® siding has a natural textured appearance with a surface that is 100% clear and free of patches and repairs. It's easy to paint and can withstand exposure to the elements. DuraTemp is manufactured with a strong plywood veneer inner core made of western softwood veneer and a fully water resistant (NAUF) phenolic resin. The surface is a tough hardboard face that won't split, crack or check -- even with rough treatment. The plywood core is easy to handle and install yet stronger than most other siding products. Unlike vinyl and cement siding, DuraTemp siding is made from real wood, an environmentally friendly renewable resource.

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Industry Events

2017

Jan. 11-13, International Builders Show, Orlando, FL, www.buildersshow.com

Jan. 16-17, Northwestern Lumber Association (NLA) Building Products Expo, Bloomington, MN, www.nlassn.org

Jan. 17-19, North Dakota Retail Lumberman's Association Annual Convention, Fargo, ND, www.NDRLA.com

Jan. 31, Wisconsin Lumber Dealers Convention, Wisconsin Dells, WI, www.nlassn.org

Feb. 1-2, Building Material Suppliers Association (BMSA) Building Products Show, Hickory, NC, www.mybmsa.org

Feb. 15-17, Northeastern Retail Lumber Association (NRLA) LBM Expo, Providence, RI, www.NRLA.org

March 8-10, LMC Annual Meeting, New Orleans, LA, www.LMC.net

March 13-15, LBM Advantage Annual Meeting & Business Conference, Orlando, FL, www.LBMAdvantage.com

March 27-29, National Lumber & Building Material Dealers Association (NLBMDA) Spring Meeting & Legislative Conference, Washington, DC

April 5-7, Lumbermen's Association of Texas & Louisiana (LAT) Annual Convention & Buying Show, Grapevine, TX, www.lat.org

May 20-22, Do it Best Spring Market, Indianapolis, IN, www.doitbestcorp.com, 888-DOITBEST

Oct. 14-16, Do it Best Fall Market, Indianapolis, IN, www.doitbestcorp.com, 888-DOITBEST

Nov. 8-10, NAWLA Trader's Market, Chicago, IL

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