AUGUST 26, 2013
Green Bay, Wis.-based US LBM Holdings was founded in 2009 as a federation of independent lumberyards with highly autonomous local operators building their businesses with services tailored to local markets. Among the company’s original lumberyard players are Wisconsin Building Supply in Green Bay, Wis.; Bellevue Builders Supply in Schenectady, N.Y.; and East Haven Builders Supply in East Haven, Conn.
US LBM Holdings has enjoyed impressive success since its formation, as it has built a culture of constant improvement, open communication and local knowledge in the markets it serves.
The company is also one of the fastest-growing companies on the HCN Pro Dealer Industry Scoreboard. In less than five years, the company has grown into a 55-unit pro dealer ranked 14th in sales, with year-over-year sales growth of 15.7% in 2012.
Government employment data indicate the rate of construction sector job openings is at its highest level since 2007. While the increase in unfilled positions is consistent with the uptick in construction sector activity, particularly for home building, the data reflect only modest increases in total employment thus far.
For the construction sector, Job Openings and Labor Turnover Survey (JOLTS) data from the Bureau of Labor Statistics (BLS) indicate that gross hiring for the construction sector fell to 285,000 in April from 320,00 in March.
April 23, 2013
We are pleased to inform you that Shelly Enterprises, Inc. (d/b/a Shelly’s) was acquired by US LBM Holdings, LLC and will join its family of companies. US LBM is a collection of leading building material distributors serving the Midwest, Northeast and Mid-Atlantic in eight states with more than 50 locations. Shelly’s represents US LBM’s ninth major acquisition since 2010 and is recognized as one of the fastest growing suppliers of building materials in the U.S. As an operating company of US LBM, Shelly’s will continue to manage its business as it does today operating under the same leadership structure. In fact, all of US LBM’s companies operate independently with a primary focus on the local customer while delivering a wide breadth of products and service. Regarding day-to-day operations, Shelly’s will use the same business practices and systems that it has used historically for servicing your business needs. Your quotes, order acknowledgements, invoices and statements will all be provided just as they are now. Bill, Greg and the team of professionals you rely on within Shelly’s will continue to serve you in the future! With a 90-year history of family ownership, we take great pride in our commitment to our customers and our communities. When we decided to make this transition, we made sure to align ourselves with a strong financial partner that is committed to the building products industry, who understands builder’s needs, and is well positioned for growth As the housing market recovers. Feel free to direct any questions you may have to your sales representative or any member of our management team. For more information on US LBM and its other companies, please visit www.uslbm.com. Again, on behalf of all of our employees, thank you for your continued support, we sincerely appreciate it!
Bill and Greg Shelly
Our Service Department is awarded “Highest Customer Satisfaction & In Home Experience Award”.
Congratulations for a job well done!
See Organized Living of Fox & Friends Weekend Show!
The segment airs Sunday, February 24, 2013 at 8:30am. During the show, the host will provide tips on how to organize a variety of couples to help bring harmony to a home and will use a freedomRail closet, pantry and garage as props.
Be sure to tune in and watch. Tell your customers too!
The American Taxpayer Relief Act of 2012
In order to avoid the “fiscal cliff,” yesterday Congress passed The American Taxpayer Relief Act of 2012. While the bill does take some positive steps on the tax side for business owners, it fails to address the core fiscal problems facing our nation. There was no attempt to control spending though this legislation and it merely delayed discussion on sequestration and its automatic budget cuts for two months. NLBMDA remains concerned about the economic uncertaintly that will continue as a result.
Income Tax Rates
Capital Gains Rates
Direct Expensing & Bonus Depreciation
Energy Efficient Tax Credits
Payroll Tax Holiday
We will continue to provide additional guidance as it becomes available.
Getting materials to your jobsite on schedule has always been one of Shelly’s top priorities. That’s why, in 2006, Shelly’s opened a state-of-the-art 28-acre distribution center and warehouse, complete with a 450ft rail spur. The ultimate goal of this project was to more efficiently service professional developers and contractors throughout Northeastern Pennsylvania. We feel that we have achieved this goal, as our Quakertown location is currently responsible for most of your deliveries. In light of this success, we have decided not to renew our lease in Freeland and will consolidate Freeland’s staff, inventory, equipment and other resources primarily in our Lehigh Valley facility.
Your customer support and personal sales staff will continue to service you without interruption from our Lehigh Valley facility located just north of Bethlehem and the Lehigh Valley Airport. As of November 1, 2012 our store in Freeland will be closed.
We are confident that this decision to shift our resources from Freeland to our Bethlehem facility will help us to better serve all our customers. With 7 other locations, including full service lumberyards in Perkasie, Souderton, Kimberton and Bethlehem along with their design center; a truss and wall panel manufacturing facility in Telford; a Design Center in Downingtown and the distribution center in Quakertown, we are always adjusting to make it better for you to get what you need when you need it – guaranteed.
As we move our staff and inventory from the Freeland facility we guarantee that your deliveries will continue to arrive as expected. Please continue to communicate with your sales team as you have in the past for orders and information, and we will continue to provide you with top quality products and customer service.
Perhaps you have noticed the jump in Shelly’s Framing Composite Index this month! The index jumped from $470 to $507 from July to August; 8% in one month! The index is up 23% since January. While lumber continues its steady 2012 mill price recovery the strong monthly jump in our recent index has been driven primarily by price pressure on sheet goods or panels. For example, the most popular size of OSB has risen in price at the mills by more than 50% in the last month.
While prices are up at their highest in 5 years we do need to keep a little perspective. The last five years for the industry have been miserable. Prices have been depressed and forest product producers have been struggling financially, just like the rest of us. Their capacity has been reduced significantly and I do not believe capacity will be added back quickly. The mills have to repair their balance sheets just like everyone else. Additionally, with credit availability restricted everywhere in the distribution chain, there is limited wholesale inventory throughout the country. Just the modest up-tick in national housing starts we have seen recently creates upward stress on price structures.
Where prices go from here is anyone’s guess. Short term I believe we could be in for a modest correction, particularly with regard to panels, but I do not believe we will get back to January’s prices. Price averages for 2012 will continue upward, but keep in mind prices were in the tank back in 2009. The forest product industry would have disappeared if 2009 prices had persisted until now.
As always Shelly’s continues to be committed to keeping you our customers informed of the market conditions. In addition to
publishing the framing composite graph in our monthly newsletters, you can now find it at any time on our website in the contractor corner section. Please contact one of our staff members if you have any questions.
After years of depressed activity, home prices and new construction have started to pick up in recent months as foreclosures have slowed, suggesting the housing market may have finally bounced off the bottom.