North America Bathroom News August 2009 · 2012-08-24 · Asians. “Even under low immigration...

Mexico '09 Bathroom Report (Baths, Faucets, Ceramic, etc.) NOW Available!USA Housing Starts, Building Permits Jump in JuneUSA Fed Sees Signs That the Economy Is StabilizingUSA Big Boost in Housing Demand Expected From Echo BoomersUSA Foreclosures Up Despite Moratorium and Legislative EffortsUSA Obama’s Strategy to Reverse Manufacturing’s FallUSA AMERICAN STANDARD Announces New Personnel AppointmentsUSA HOME DEPOT Retools As It Hits MilestoneUSA Hornsby Steps Down As WOLSELEY CEO; Successor AppointedUSA BRASSCRAFT Line Compliant With Low-Lead RulesUSA New York Receives $4 Million in Economic Recovery Funds to ImproveUSA & World First Quarter Stainless Production Lowest Since 2000USA HETs Save Substantial Water and MoneyUSA PMI Adopts New Position Statement Calling for Maximizing ConsumerUSA GEORGE T. SANDERS Reaches Out To War Veterans

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North America Bathroom NewsAugust 2009

International Market Strategy

International strategic market research and consultancy on building product and related markets

BRG Consult NewsletterNorth America Bathroom News August 2009

Mexico: '09 Bathroom Report (Baths, Faucets, Ceramic, etc.) NOWAvailable!BRG CONSULT is pleased to announce the publication of its final Bathroom Report on the Mexicanmarket.

Products included in the report are:

o Bathtubs (cast iron, steel, synthetic)

o Shower Trays (synthetic)

o Ceramic Sanitary Ware (and plastic alternatives)

o Faucets/Taps/Mixers

o Shower Wall Products (shower doors/kits)

o Hydrotherapy Products (jetted baths, hydrotherapy cubicles, shower panels).

Full reports for the US and Canadian Bathroom markets will be published later on during the summer.

These 2009 BRG Reports give information on the market size in $ and units, a ten-year markethistory, five-year product forecasts, product segmentation, 2008 manufacturers market shares andend use analysis. The full bathroom industry reports include a background information with details onthe country's economy, the construction market, the distribution sector, detailed market data, as wellas the profiles of suppliers and distributors.

For more information on these reports, please contact Victor Post ([email protected]).

Source: BRG CONSULT NORTH AMERICA

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USA: Housing Starts, Building Permits Jump in June18 July 2009, WASHINGTON — Construction of new homes rose in June to the highest level inseven months, a sign builders are starting to regain confidence as they emerge from the housingbust.

The Commerce Department said Friday that construction of new homes and apartments jumped 3.6%last month to a seasonally adjusted annual rate of 582,000 units, from an upwardly revised rate of562,000 in May.

That was better than the 530,000-unit pace economists expected, and the second straight increaseafter April's record low of 479,000 units.

In another encouraging sign, applications for building permits, seen as a good indicator of futureactivity, rose 8.7% in June to an annual rate of 563,000 units. Economists polled by Reutersexpected an annual rate of 520,000 units.

The jump in housing starts reflected a more than 14% rise in construction of single-family homes.

Over the past three years, the collapse in the housing market led to soaring loan losses, a severebanking system crisis and the longest recession since World War II. Even with the better-than-expected figures, analysts don't expect a quick rebound in housing. That's because the economy isstill shedding jobs and home prices are falling, making people hesitant to commit to buying a newhome.

The National Association of Home Builders said Thursday that its housing market index rose twopoints to 17 in July, the highest level in nearly a year. Readings below 50 indicate negative sentimentabout the market. The last time it was above 50 was April 2006.

While housing normally leads the economy out of a recession, a glut of unsold homes and a recordwave of mortgage foreclosures dumping more properties on the market is expected to temperdemand. Despite the rise in housing construction for June, activity was still 46% below the year-agolevel.

Source: www.usatoday.com

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USA: Fed Sees Signs That the Economy Is Stabilizing29 July 2009 -- In most parts of the United States, the recession is losing force or economies arebeginning to stabilize, the Federal Reserve said Wednesday in a snapshot of economic activity fromacross the country.

But the picture remains grim in many parts of the country, with retail sales falling in the Midwest, loandemand falling in New York, commercial real-estate weakening and manufacturing activity stumblingalong in many parts of the country.

Those assessments were part of the Fed’s “beige book”, a regular assessment of economicconditions from 12 Fed districts nationwide. Since the spring, the various Fed districts have reportedthat things are still bad, but not hurtling downward at an accelerating pace.

And even if conditions are stabilizing in economies from New York to Chicago to Kansas City, fewbusinesses or industries are girding for a rebound. Manufacturers anticipate a “modest and unevenrecovery.” Some retailers are bracing for a “long, slow recovery.” And the job market is still dismal,and likely to stay that way for some time.

“The weakness of labor markets has virtually eliminated upward wage pressure, and wages andcompensation are steady or falling in most districts,” the Fed said.

Also on Wednesday, the government reported that new orders to factories for durable goods fellsharply in June as demand for commercial aircraft and motor vehicles plunged from a month earlier.

The 2.5% drop in manufacturers’ orders was the largest decline in five months, but economists saidthe picture was brighter than it might seem. Excluding volatile orders for transportation equipment,manufacturers’ orders rose 1.1% for the month, a larger increase than forecasters had expected.

Economists said the numbers reflected more stability in the manufacturing sector after months ofdeclines that came as factories shut down, cut their inventories and scaled back production as theyconfronted the worst economy in decades. Now, manufacturing seems to be finding its footing,economists said.

“It tells me we’re on the cusp of a very slow and gradual recovery,” said Tim Quinlan, an economicanalyst for WELLS FARGO. “Businesses have been in absolute lockdown all year. Everybody hasbeen scaling back and saving money. Orders seem to be in a bottoming process.”

Still, new orders for all durable goods were down 26.7% in June from a year earlier, the CommerceDepartment reported, and shipments of goods fell 19.5%.

In June, there were more new orders for metals, machinery, electrical equipment and appliances.Orders for military aircraft jumped by 30% in June from a month earlier, the Commerce Departmentreported.

But declines in automotive orders, coupled with a double-digit decline in orders for commercialaircraft, demonstrated continuing weakness in manufacturing, as well as the volatility of thegovernment’s figures on durable-goods orders.

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New orders for motor vehicles and parts fell 1% in June, reflecting turmoil caused by the bankruptciesof GENERAL MOTORS and CHRYSLER in addition to sagging demand for domestic automobiles.Orders for civilian aircraft plunged 38.5%, one month after they shot up 60%.

Source: New York Times

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USA: Big Boost in Housing Demand Expected From Echo Boomers30 June 2009 -- Depicting the current housing downturn in sobering terms, the 2009 "State of theNation’s Housing" report released by Harvard University’s Joint Center for Housing Studies on June22 nevertheless gives home builders firm assurances of a resurgence in demand once the echo-boom generation gains a footing in the housing market.

Born from 1981-2000, members of the echo-boom generation, Harvard says, will boost annualaverage household growth to more than 1.25 million during the decade of 2010-2020 — even underthe worst of circumstances.

“While the economic crisis has dampened household growth, the sheer size of the echo-boomgeneration will give a powerful boost to long-run housing demand,” the report says.

However, “a severe and prolonged recession,” according to the housing economists at Harvard, couldreduce immigration, which is a key driver of household growth.

Two household growth projections were made for this year’s report: one based on the latestpopulation projection from the Census Bureau in which annual net immigration increases from 1.1million in 2005 to 1.5 million in 2020, and more than 2.0 million by 2050; and one in which theseimmigration assumptions are cut by half as the result of a worse than expected recession.

Even under the weaker scenario, in which there would be 2.3 million fewer household formations in2010-2020, average annual household growth can be expected to be comparable to the growthexperienced from 1995-2005 as members of the echo-boom move into the prime household formationand home buying ages of 25 to 44.

“The number of echo boomers aged 25 to 44 will eclipse the number of baby boomers when theywere those same ages by more than 5.9 million,” according to the report.

“With the number of households in this age group projected to increase between 2.0 million and 3.4million, the demand for rentals and starter homes will surge,” the Joint Center says. “Meanwhile, withtheir longer life spans and sheer numbers relative to the preceding generation, the baby boomers willadd dramatically to the number of households over 65. This will lift demand for retirementcommunities as well as services and home improvements that help seniors age in place.”

Among other results related to household growth that will be felt in the home building industry:

- The ethnic diversity of the echo-boomers will accelerate household growth among Hispanics andAsians. “Even under low immigration assumptions, Hispanic household growth will increase from 3.5million in 1998-2008 to 4.5 million in 2010-2020, while Asian household growth will increase from 1.5million to 2.5 million. White household growth, in contrast, will slow sharply from 4.3 million to 3.3million, and black household growth will slip from 2.4 million to about 2.2. million.

- Married couples without children — including empty-nesters — will be the fastest growinghousehold type, followed closely by single-person households. “While the number of married coupleswith children will fall by nearly a million among whites, it will increase by more than a million amongAsians and Hispanics.”

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- Housing now occupied by many older white baby boomers will be well suited to the needs ofyounger and generally larger minority households, although there is a question about whetherminority households, with their lower incomes, will be able to afford these homes.

“As the baby boomers and older generations begin to turn over their homes to younger households,adjustments to the existing stock are likely, both through remodeling and pricing,” the report says.“The first wave of change will occur in the inner suburbs of large metropolitan areas where peoplenow in their 70s and 80s are concentrated, then fan out to the outer suburbs as the baby boomersstart to downsize.”

“With the echo baby boom driving demand for starter homes and apartments and the baby boompowering demand for homes suited to older Americans,” the design professions will be called upon todeploy new technologies and designs to meet the aesthetic tastes and functional needs of a new,more diverse younger generation on the one hand and a generation in need of home modifications tohelp them age more safely and healthfully in place on the other,” said Mohsen Mostafavi, dean of theHarvard University Graduate School of Design.

Finding the Bottom

Housing analysts at the Joint Center were less optimistic about the near-term outlook for housing,with “withered” housing demand struggling to get out from under the weight of crushing job losses,house price deflation and tighter credit standards.

“The best that can be said of the market is that house price corrections and steep cuts in housingproduction are creating the conditions that will lead to an eventual recovery,” said Eric Belsky,executive director of the Joint Center. “For now, markets remain under considerable stress.”

On hand for the release of the report in New York, Gary Garczynski, president of NAHB in 2002, saidthat the association is “perhaps a tad more optimistic about the immediate outlook for housing” thanthe Joint Center.

“We believe that we are at or very near the bottom of the market,” Garczynski said. “Existing homesales are rising, new home sales have bottomed, the inventory of unsold homes is slowly beingwhittled down and the decline in home values appears to be moderating. Equally important, buildersand consumers appear to be a little more confident than they were three to six months ago.”

He also cited the beneficial effects of a significant rise in housing affordability and the $8,000 federaltax credit for first-time home buyers, but voiced agreement with the Joint Center’s view that rebuildingthe housing finance system and restoring the flow of credit to home builders is critical to turningaround the housing market.

“The credit crunch for builders has seriously undercut the nation’s housing delivery system. Until weget credit flowing to builders for construction and development loans, it will be tough to revive thiseconomy,” Garczynski said.

“Moreover, the nation’s housing finance system needs to be shored up. Today, nearly all newmortgage originations are government backed — flowing through FANNIE MAE and FREDDIE MACor insured or guaranteed by FHA and VA.” Also, “the private market for jumbo loans is virtually

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nonexistent....Private investors must regain their confidence and get back in the market before thejumbo loan market can turn around.”

Garczynski said that the recovery is likely to be slow and spotty, beginning in places that did notexperience unsustainable increases in housing production during the boom years. “Generallyspeaking, housing markets closer to the urban core and job centers could be on the leading edge ofthe recovery. Outlying rings of metropolitan areas will recover later once the inventory of unsold unitsdeclines to more normal levels.”

He also noted that demand for infill and higher density development could increase markedly in theperiod ahead. “This will require a spirit of cooperation between builders and the local officials whocontrol the zoning and development process,” he said. “Hopefully, this will lead to greater acceptanceof the smart growth principles NAHB has been advocating since the beginning of this decade."

Source: National Association of Home Builders

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USA: Foreclosures Up Despite Moratorium and Legislative Efforts16 July 2009 - U.S. properties in the process of foreclosure in the second quarter rose to a recordquarterly level of nearly 890,000, RealtyTrac reported on Thursday.

The total is up 11% from the first quarter and 20% from the year-earlier period, the Irvine, Calif.,online marketplace and research firm reported.

In June, properties in foreclosure totaled 336,000, exceeding 300,000 for a fourth month and drivingthe second-quarter total to the highest level since RealtyTrac began its survey in the first quarter of2005.

As of June 30, nearly 1.53 million U.S. properties were subject to a default notice, auction-sale notice,or bank repossession, RealtyTrac reported.

Nearly 1.2% of all U.S. housing units -- 1 in 84 -- were subject to a foreclosure filing in the first half,RealtyTrac reported.

Despite an industrywide moratorium on foreclosures earlier this year plus legislative action and moreefforts by lenders to modify the terms of mortgages, "foreclosure activity continues to increase torecord levels," RealtyTrac Chief Executive James J. Saccacio said in a statement.

People who've lost jobs "account for much" of the increase, and borrowers who owe more on theirmortgages than their homes are worth represent a significant risk going forward, he said.

"Stemming the tide of foreclosures is a critical component to stabilizing the housing market," andlenders and the government must find new approaches to the issue, the executive said.

In the first half of 2009, properties in foreclosure rose 9% from second-half 2008 and 15% from theyear-earlier period, RealtyTrac reported.

Nevada was the state with the highest first-half foreclosure rate, 1 in every 16 housing units,RealtyTrac reported. Foreclosed properties totaled more than 68,700, up 23% from second-half 2008and up 61% from first-half 2008.

Arizona was second, with 1 in every 30 properties in foreclosure, and Florida was third, with 1 in 33,RealtyTrac reported.

In absolute numbers, California was No. 1, with more than 391,600 properties subject to a foreclosurefiling. That's 1 in every 34 of the state's housing units, which is the fourth-highest rate among thestates. The total was up 14% from second-half 2008 and up 15% from first-half 2008.

Florida was second, with more than 268,000 properties, and Arizona was third, with nearly 90,000.

Source: MarketWatch

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USA: Obama’s Strategy to Reverse Manufacturing’s Fall20 July 2009 -- If the Obama administration has a strategy for reviving manufacturing, DouglasBartlett would like to know what it is.

Buffeted by foreign competition, Mr. Bartlett recently closed his printed circuit board factory, founded57 years ago by his father, and laid off the remaining 87 workers. Last week, he auctioned off themachinery, and soon he will raze the factory itself in Cary, Ill.

“The property taxes are no longer affordable,” Mr. Bartlett said glumly, “so I am going to tear down thebuilding and sit on the land, and hopefully sell it after the recession when land prices hopefully rise.”

Though manufacturing has long been in decline, the loss of factory jobs has been especially brutal oflate, with nearly two million disappearing since the recession began in December 2007. Even a fewchief executives, heading companies that have shifted plenty of production abroad, are beginning toexpress alarm.

“We must make a serious commitment to manufacturing and exports. This is a national imperative,”Jeffrey R. Immelt, chairman and chief executive of GENERAL ELECTRIC, said in a speech lastmonth, while acknowledging that G.E. was enriched by its overseas operations too.

President Obama, agreeing in effect, has declared, “The fight for American manufacturing is the fightfor America’s future.”

The United States ranks behind every industrial nation except France in the percentage of overalleconomic activity devoted to manufacturing — 13.9 percent, the World Bank reports, down 4percentage points in a decade. The 19-month-old recession has contributed noticeably to thisdecline. Industrial production has fallen 17.3 percent, the sharpest drop during a recession since the1930s.

So far, however, Mr. Obama’s administration has not come up with a formal plan to address the rapiddecline. Instead, it has pursued ad hoc initiatives — bailing out GENERAL MOTORS andCHRYSLER, for example, and pushing green energy by supporting the manufacture of items like windturbines and solar panels.

“We want to make sure that we grow a manufacturing base for renewable energy,” said MatthewRogers, a senior adviser in the Energy Department, explaining that this is being accomplished in partby “accelerating loan guarantees from zero” in the Bush years.

Xunming Deng, a physicist and the chairman of the XUNLIGHT CORPORATION, sees himself as abeneficiary of what he describes as the Obama administration’s more flexible loan guarantees. Hisfactory in Toledo, Ohio, with 100 employees, is in the early stages of making solar panels, and Dr.Deng is already planning to quadruple the plant’s size. He has applied to the Energy Department fora $120 million loan guarantee. If he gets it, he will not have to pay the hefty fees charged for loanguarantees before Mr. Obama took office.

“Getting rid of that fee makes the loan guarantee very attractive and very helpful,” Dr. Deng said. “Wecan’t grow as fast without it.”

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Beyond energy, the administration’s approach gradually outlines the elements of a manufacturingpolicy — what Lawrence H. Summers, director of the National Economic Council, described as “anumber of things to support manufacturing.”

The auto bailout, for all its improvisations, served notice that the administration would probably rescueany giant manufacturer it deemed too big (or too iconic) to fail, and would help the suppliers of failinggiants transition to other industries.

The Buy America clause in the stimulus package pointedly favors the purchase of American-madegoods for infrastructure projects. The Commerce Department is adding $100 million, more thandouble the current outlay, to a program that helps American manufacturers operate more effectively.And trade agreements negotiated by the Bush administration — agreements that would make theUnited States more open to imported manufactured goods — have been allowed to languish inCongress.

“The administration’s policy is evolving in the right direction,” said Representative Sander M. Levin,Democrat of Michigan, who is particularly concerned about auto imports. “I think they haveessentially shed the political chains that prevented government from having a role in manufacturing.They are working their way toward what makes sense.”

Not everyone agrees.

“Bush and Obama,” Mr. Bartlett said scornfully, “one is as bad as the other in terms of manufacturingpolicy.”

He acknowledged that the recession was the immediate reason for the demise of his family’sbusiness. But what really did it in, he said in an interview, was the competition from less expensiveChinese circuit boards — less expensive, he argued, because the Chinese undervalue their currencyand this administration, like the ones before it, lets them get away with it.

“Our orders went from $8 million at an annual rate to $4 million, which was not enough to makemoney,” he said.

Mr. Bartlett, who is co-chairman of an organization called the Fair Currency Coalition, said thatChinese competitors charged only $1 for each printed circuit board sold in this country, while hecharged $1.40. Like many economists and government officials, he says he believes the Chinesecurrency is artificially undervalued. As a countermeasure, he said the Obama administration shouldimpose a 40 percent tariff on imported Chinese goods.

“I can compete against Chinese entrepreneurs, and Chinese labor cost is not that big a factor,” hesaid, “but I cannot compete against the Chinese government’s manufacturing policies.”

Manufacturing has long been viewed as an essential pillar of a powerful economy. It generatesmillions of well-paid jobs for those with only a high school education, a huge segment of thepopulation. No other sector contributes more to the nation’s overall productivity, economists say.And as manufacturing weakens, the country becomes ever more dependent on imports ofmerchandise, computers, machinery and the like — running up a trade deficit that in time couldundermine the dollar and the nation’s capacity to sustain so many imports.

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One tactic for strengthening the manufacturing sector, in the administration’s view, would be a shift intax policy. The research and development tax credit, which is now subject to renewal by Congress,would be made permanent, encouraging much more R.& D. among manufacturers, a seniorCommerce Department official argued. And foreign taxes paid on profits earned overseas would notbe deductible in this country until the profits were repatriated, a restriction that might discouragelocating factories abroad.

The goal is to arrest manufacturing’s dizzying decline. It “was the pillar on which we built the middleclass,” said Thea Lee, policy director for the A.F.L.-C.I.O., “and it is hard to see how you rebuild themiddle class without reviving manufacturing.”

Source: New York Times

USA: AMERICAN STANDARD Announces New PersonnelAppointments8 July 2009 -- AMERICAN STANDARD BRANDS announced five recent senior leadership additionsto its marketing and sales teams. These and other staff adjustments are a part of the company’s planto focus on new business developments and product creation in key market segments, according toPresident and CEO of ASB Don Devine.

Chris Capone has been appointed Vice President Wholesale Sales and is responsible for expandingboth the residential and commercial growth of the ASB companies via the wholesale distributionchannel.

Tom Santer is now Vice President Distribution Strategy and is charged with expanding both theresidential and commercial growth of the ASB companies via the wholesale distribution channel.

Scott Meyer has been named General Manager Faucet Division, with responsibility for AMERICANSTANDARD’s residential product lines.

Jeannette Long has been appointed General Manager E-commerce, leading a new sales channel forASB.

Mark Hamilton is the new General Manager for Luxury and Showrooms, responsible for sales of theJADO, PORCHER and AMERICAN STANDARD luxury products.

Also joining the ASB team is Gerry Messina as Director of Customer Development – Retail Faucets.In this role he will manage the marketing efforts between product management and field sales for theretail business. Carter J. Thomas has been named Director, Industrial Design – Luxury Business.He will oversee the creation of innovative kitchen and bath styles for the JADO, PORCHER andAMERICAN STANDARD luxury brands.

Source: Supply House Times

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USA: HOME DEPOT Retools As It Hits Milestone12 July 2009 -- HOME DEPOT's founding is corporate lore - a classic story of turning lemons intolemonade.

Bernie Marcus and Arthur Blank, fired from hardware chain HANDY DAN, got their revenge bycreating HOME DEPOT, a warehouse hardware concept. The first two stores opened in Atlanta onJune 22, 1979. Over the next three decades the company grew into the nation's second-biggestretailer behind WAL-MART.

As the chain turns 30, Marcus is not bashful about burnishing the legacy.

"When you look at what Arthur and I have accomplished, today over 300,000 people are working atthe HOME DEPOT," he said last week. "We probably lowered costs to homeowners by about 25 to30 percent. We had more of an impact on the economy than any Congress since."

But the milestone comes at a humbling time for HOME DEPOT. In recent years the stock price hastumbled and expansion has ground to a halt. Internal reorganizations have forced layoffs, and thecompany known for its "You can do it. We can help." ad tagline is scrambling to regain its customer-service edge.

None of the founders is still on the board of directors, and in conversations last month they were frankabout how the company has evolved with different leadership.

"I would say for a period of about four to five years, we lost our way through the last CEO," saidMarcus. He was referring to the December 2000-January 2007 reign of Bob Nardelli as chiefexecutive. Recruited from GENERAL ELECTRIC, he was the first CEO brought in from outside.

Nardelli, hired to give HOME DEPOT discipline and structure, was criticized for changing a culturethat had been working. He tried to build new revenue streams by creating a wholesale division, HDSUPPLY, intended to become the leading supplier to big infrastructure projects such as sewer linesand bridges.

"I think Nardelli came in because Arthur and I felt we had grown the business and the systems werevery antiquated," said Marcus. "We were very entrepreneurial and we needed some discipline.Nardelli provided that. But unfortunately, he had his own culture he tried to infuse into the HOMEDEPOT, and that culture didn't work well."

Blank, who left HOME DEPOT shortly after Nardelli's hiring, said, "I think the board's decision aboutNardelli clearly was not the right one."

Pat Farrah, another co-founder who now runs garden retailer SMITH & HAWKEN, was moreemphatic.

"None of the three of us should ever have handed over the reins of the company," said Farrah. "Weknew how to do everything, and do it well and people loved us. We should still be running thecompany today."

Nardelli, who left HOME DEPOT to run now-bankrupt CHRYSLER, declined to be interviewed for this

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story.

Wall Street analyst David Schick, however, said blaming Nardelli is too easy.

"I don't think it's fair at all to throw Bob under the bus," said Schick, of STIFEL NICOLAUS EQUITYRESEARCH, a firm that does business with HOME DEPOT.

"I think the growing pains HOME DEPOT ran into are pretty interesting glimpses into the history ofAmerican retail," he said. Nardelli's effort to update internal systems and diversify revenue were notmistakes, he said, but part of the company's "life cycle."

It's easy in hindsight, Schick said, to say building HD SUPPLY or EXPO, a store dedicated to high-end designer items that actually pre-dated Nardelli's arrival, was wrong.

"But when you're 20 years old and pretty built out, it's easy to think, 'Lets look at other businesses,'"he said. Wall Street also wouldn't have embraced slowing growth, he added. "It's Wall Street's faulttoo."

If debate about Nardelli's tenure persists, Marcus said he thinks the current CEO, Frank Blake, isheaded in the right direction. He shed HD SUPPLY, although HOME DEPOT still owns a 12.5percent stake, and shut down EXPO. He's emphasizing the core retailing that was the company'soriginal calling card.

"Frank Blake has done a yeoman's job in two and a half years in turning that around," said Marcus.

"Frank is not wedded to everything in the past," agreed Blank, "but he understands the value ofculture and those fundamentals."

In the face of a housing-led recession, however, sales, profits and stock price have all been underpressure during Blake's still-young tenure.

Excluding the HD SUPPLY division, revenues dropped nearly 10 percent over the last two years to$71.3 billion. The company's market cap, or the value of all outstanding shares, is about $40 billion,down from $70 billion in January 2006.

Archrival LOWE'S has wrestled with similar downdrafts, though the North Carolina-based chain is stillgrowing its U.S. store base and has started expanding to Canada.

HOME DEPOT plotted overseas growth many years ago, hoping to emulate No. 1 U.S. retailer WAL-MART and its expansion into South America, Asia and Europe.

HOME DEPOT's progress has been limited to 176 stores in Canada, 74 in Mexico, and 12 outposts inChina. An attempt to gain footholds in Chile and Argentina last decade fizzled.

"We did expand at one point," said Marcus. "We went south to Chile and Argentina, but we didn't dowell. We were not ready for it. Frankly, we didn't have systems to control those businesses and wepulled out."

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Now, retail expert Howard Davidowitz sees international growth as HOME DEPOT's next frontier.

"HOME DEPOT is very small internationally, and that may mean a lot of potential for them to grow,"said the New York retail consultant and investment banker.

But analyst Schick doesn't think the chain should be looking abroad.

"No, absolutely no," he said. HOME DEPOT "is very housing-related" and has a "different equation"than WAL-MART. The latter has a self-service model, while HOME DEPOT's calling card is helpinghomeowners solve problems.

"American retailers and companies often think we know how to do things here, so we can do it there,"said Schick. "You have to be very careful about assuming your model is exportable."

What does the current CEO think? Blake said international growth is "absolutely an opportunity forus," and that he will probably look to Latin America first - but only "when the time is right."

Meanwhile, HOME DEPOT's biggest growth opportunities now are stealing market share back fromLOWE'S, and in making its U.S. stores more efficient and profitable, he said.

Blake believes he can "drive" up revenues by improving U.S. stores and increasing Internet sales.

He's working to create "advantages" for HOME DEPOT over LOWE'S by improving inventory andmerchandising systems. The company is spending hundreds of millions of dollars building newproduct distribution centers. Blake said company research shows HOME DEPOT's brand is still"incredibly strong."

"Thirty years is still pretty young," said Blake. "There are more opportunities to play offense here thanoverseas. You have to remember where you're going to create more of your value."

As consumers cut spending, HOME DEPOT lowered prices last year on more than 1,000 items. Thisyear it launched the price-conscious tagline, "More Saving. More Doing."

Davidowitz thinks HOME DEPOT should have capitalized more on being a "warehouse" brand duringthe "biggest trade down" in retail history. He said stores should have areas "where everything is $10or less, to drive footsteps. Why don't they have that?"

As for the next 30 years, HOME DEPOT's future will remain pegged to the consumer, and theeconomy.

"What's tarnished is our economy," said Davidowitz. "HOME DEPOT will come back if we can get allthis stuff back and the economy improves a little."

Said Schick: "I do think housing will still age, paint will still crack and faucets will still leak 30 yearsfrom now. I don't think we'll all be levitating, so we'll still be wearing out carpets."

Source: Palm Beach Post

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USA: Hornsby Steps Down As WOLSELEY CEO; SuccessorAppointed1 July 2009 -- On June 30, WOLSELEY PLC announced that Chip Hornsby has stepped down asGroup Chief Executive with immediate effect. Ian Meakins was appointed to succeed Hornsby asGroup Chief Executive effective July 13.

Hornsby has spent over 31 years in the construction materials distribution industry, joining theWOLSELEY GROUP through its acquisition of FERGUSON in 1983. Since taking over asWOLSELEY CEO in August 2006, he has led the drive to reduce costs and improve cash flow inresponse to increasingly challenging trading conditions arising from the global financial crisis.

Meakins, 52, was until recently chief executive of TRAVELEX HOLDINGS LTD, the internationalforeign exchange and payments business. He has considerable international operational experienceand was previously CEO of ALLIANCE UNICHEM PLC until its merger with BOOTS in July 2006.Prior to that he was president, European Major Markets and Global Supply for DIAGEO PLC,between 2000 and 2004, spending over 12 years with the company in a variety of internationalmanagement positions. He was also a non-executive director of MM02 PLC.

John Whybrow, WOLSELEY PLC chairman, said: “The Board recognizes Chip’s significantcontribution to the Group throughout a long and distinguished career, including nearly three years aschief executive, during which time WOLSELEY has faced some extremely difficult market conditions,and we wish him well for the future.

“Ian brings a wealth of operational experience in global business, having undertaken a number ofleadership roles in brand, retail and wholesale distribution operations on an international scale. Histrack record on improvement of business performance is impressive and we are delighted to welcomehim as CEO.”

Meakins commented: “WOLSELEY is a company with a proud history and an exciting long term futureand I am delighted to be appointed chief executive. I look forward to getting to know the businessand working with employees to help manage through the current tough conditions, while furtherclarifying the strategy and execution to ensure we deliver value to our shareholders.”

Source: The Wholesaler

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USA: BRASSCRAFT Line Compliant With Low-Lead Rules9 July 2009 -- BRASSCRAFT’s much-anticipated line of plumbing products that is compliant withCalifornia’s and Vermont’s low-lead legislation is now available. The new legislation limits the leadcontent of pipes, pipe fittings or plumbing fittings and fixtures intended to convey or dispense water forhuman consumption through drinking or cooking. BRASSCRAFT’s high quality, 100% compliantproducts have been released far in advance of the January 1, 2010, the date these laws take effect.

The checkmark on the packaging is the confirmation that the new line is 100% compliant withCalifornia and Vermont. The extreme durability of these high-performance parts makes them ideal formost standard household installations – including water heater applications.

Since the enactment of this legislation in 2007, BRASSCRAFT has been preparing for the anticipatedchange with respect to product development and availability. The launch schedule was designed togive plumbing professionals ample time to adjust their inventories before the law’s effective date.


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USA: New York Receives $4 Million in Economic Recovery Funds toImprove Water Quality, Create Jobs13 July 2009 -- In an effort to improve water quality and create jobs, the U.S. EnvironmentalProtection Agency (EPA) has awarded $4,369,100 to the New York State Department ofEnvironmental Conservation under the American Recovery and Reinvestment Act of 2009. A total of$39 million will be awarded nationally to states for Water Quality Management Planning (WQMP)grants, which will keep and create jobs to help prevent water pollution and protect human health andthe environment.

"The Recovery Act investments are meeting urgent needs for economic growth and protecting humanhealth and the environment,” said EPA Administrator Lisa P. Jackson. “Communities across thenation can count on green jobs to help pull them out of this downturn and ensure the long-termstrength of our economy and our environment.”

"This funding will not only stimulate local economies and create new jobs across New York, it willboost the state’s capacity to provide clean water to its residents," said EPA Acting RegionalAdministrator George Pavlou.

Planning is an important step in EPA’s goal to improve water quality in America’s lakes, rivers andstreams. WQMP grants support a broad range of activities, such as setting standards, monitoring thequality of the water, developing plans to restore polluted waters, and identifying ways to protecthealthy waters from becoming polluted. States are also encouraged to use these funds for moreinnovative planning activities like developing plans to adapt to climate change, analyzing trends inwater availability and use, and creating low-impact development programs. Grants are awarded tostate agencies and some of the funds can be awarded to regional and interstate planningorganizations.

President Obama signed the American Recovery and Reinvestment Act of 2009 on February 17,2009, and has directed that the Recovery Act be implemented with unprecedented transparency andaccountability. To that end, the American people can see how every dollar is being invested atRecovery.gov.

For information on EPA’s implementation of the American Recovery and Reinvestment Act of 2009,visit www.epa.gov/recovery, and for information on implementation in New York, visit www.epa.gov/region02/eparecovery.

Source: Environmental Protection Agency

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USA & World: First Quarter Stainless Production Lowest Since 20001 July 2009 -- The International Stainless Steel Forum released preliminary stainless steel productionfigures showing that 4.8 million metric tons of stainless was produced worldwide in the first quarter of2009. This is the lowest level of first quarter production since 2000.

Production in China and the Americas increased in the first quarter when compared to the alreadydepressed fourth quarter of 2008. The relatively good performance of the Chinese stainless industrymay be partly explained by the government’s economic stimulus package, which seems to havecreated some additional demand for stainless in the country. The increase in the Americas region ison a very small volume of just 411,000 metric tons. All other regions showed decreases inproduction.

Compared to the first quarter of 2008, global stainless steel production was down more than a third inthe first three months of 2009. Most stainless steel producing areas showed losses of more than40%. The exception is China, where production fell by just 10.3%. All areas of the world are showingextraordinary stock reductions and low levels of demand in stainless steel-using industries due to theglobal economic slowdown.

The market share of chromium-nickel steels is largely unchanged in the first quarter of 2009compared to the full year 2008. However, chromium stainless steels have seen a relatively largereduction in their market share, which is mainly due to the global downturn in car production. Themarket share of chromium-manganese grades has risen somewhat due to demand from the Chinesedomestic market.

Source: Supply House Times

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USA: HETs Save Substantial Water and Money1 July 2009 -- It is estimated that 30% of the water used in a home is used by toilets. Homes built inthe 1950s and 1960s often had toilets using seven gallons or more of water per flush. By the 1980s,technology had improved to use 3.5 gallons per flush. In 1995, a 1.6 gallon or less toilet wasmandated in all states in the United States. Toilet technology has advanced considerably in the last20 years, and now the average household can save thousands of gallons of water in just one year.

Located in Dania Beach, Florida, College Gardens Apartments is a complex with more than 60affordable housing units. During late 2008, CAROMA toilets were installed in three buildings,including 24 three bedroom, two bathroom units to help conserve water in the region. Sydney 270Easy Height Elongated and 305 model Round Front Plus high efficiency dual flush toilets werechosen.

CAROMA toilets were selected for College Gardens Apartments for three reasons: waterconservation to protect the environment, to reduce water bills, and lower maintenance costs. Prior tothe CAROMA installation, the apartments had a mix of 3.5 gallon per flush toilets, 2.5 gallon per flush,and 1.6 gallon per flush toilets.

The Sydney toilet range is a two button dual flush: one button using 1.6 gallons per flush for solidwaste and one button using 0.8 gallons per flush for liquid and paper waste. The average flushvolume is only 0.96 gallons per flush, saving 40% more water compared to the federal mandate of 1.6gallons, 62% more water than a 2.5 gallon toilet, and more than 72% water savings compared to a 3.5gallon toilet.

The water savings in College Gardens Apartments have been impressive. Sixteen units had toiletsinstalled during October and November 2008, and the remaining 8 were completed in December.

During the first six month period recorded, the average water usage was 272,167 gallons at a cost of$2,452 per month. The following six month period during and after the CAROMA installation wascompleted, there was a 45% reduction in water usage. The average water used was 150,667 gallons,averaging $1,704 per month. This equates to an average of 121,500 gallons in water savings permonth (more than 1.46 million gallons per year) and nearly $9,000 in yearly cost savings!

In addition to water and cost savings, CAROMA toilets also reduce maintenance expenses. The twopiece Sydney toilets have a large trapway, nearly double the industry average, virtually eliminatingblockages. In the six months the toilets have been installed at College Gardens Apartments, therehave been no calls to maintenance due to overflows or clogging. Because the toilets use washdowntechnology, waste is pushed from the bowl, creating greater drainline carry, minimizing the chance ofbloackages further down the pipe.

Tenants have also benefited from the CAROMA toilets. The stylish toilets have clean lines, socleaning is very easy. Because the toilets are virtually clog-free, they do not need an unsightlyplunger nearby. The best part: they are helping to substantially reduce the amount of indoor waterusage with every push of the Sydney dual flush toilet button.

Source: PHC News

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USA: PMI Adopts New Position Statement Calling for MaximizingConsumer Choice and Water Efficiency24 July 2009 -- The Plumbing Manufacturers Institute (PMI) recently adopted a new positionstatement advocating the efficient use of water while also maximizing consumer choice on water-saving products. As the new statement notes, “We believe that these two objectives are not mutuallyexclusive and can be achieved simultaneously.”

PMI Executive Director Barbara C. Higgens says PMI believes that responsible water use begins withawareness and education, which put consumers in a better position to make personal decisions andtrade-offs. “Water efficiency is best achieved by pursuing the overall goal of water savings as asociety, but not by dictating how the savings are to be achieved,” Higgens remarks. “Everycircumstance is different, and PMI believes that providing end users with flexibility to make their owndecisions is the best way to move the marketplace towards true water savings.”

Higgens adds that allowing manufacturers and designers the freedom to innovate “in both form andfunction” results in better solutions that do not require great sacrifice to save water.

“It was the freedom to innovate that led to the current generation of top-performing toilets that actuallyexceed the federal standard of 1.6 gallons-per-flush, saving 20% or more on water use withoutsacrificing performance,” Higgens notes. These new high-efficiency toilets, called HETs, work so wellat saving water and meeting consumer performance standards that PMI successfully led the effort topass legislation in California and Texas, calling for all newly installed toilets to be HETs.

“Just as PMI believes in its members’ abilities to innovate our way to water-savings, we also believethat the American consumer can be our strategic partner in this efficiency effort,” Higgens comments.“Educate consumers on our society’s water predicament. Then give them an array of options, backedby a pricing system that reflects water’s true market value. Do all these things in a proper and above-board manner, and we at PMI have faith that most American consumers will make the right choices tosave enough water to make a difference everywhere without lessening our quality of life.”

Read and download the full text of the position paper at SafePlumbing.org.

About PMI: The Plumbing Manufacturers Institute is the voluntary, not-for-profit international tradeassociation of manufacturers of plumbing products, serving as the Voice of the Plumbing Industry.Member-companies produce a substantial quantity of the nation’s plumbing products.

Source: The Plumbing Manufacturers Institute

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USA: GEORGE T. SANDERS Reaches Out To War Veterans22 July 2009 -- What better way to help injured war veterans than to build them accessible homes thatfit their particular needs. That’s the cause GEORGE T. SANDERS has decided to contribute to byteaming up with BENDER PLUMBING and Homes For Our Troops.

Staff Sergeant John P. Jones of Fort Collins, Colo., was injured on January 3, 2005 serving in Iraq.He was with the 1st. Battalion/7th Marines when his hummer was hit by an anti-tank mine, launchinghim 25 feet through the top of the vehicle. This resulted in Jones losing both of his legs below theknee, making life difficult, unable to maneuver around his home safely.

Fort Collins branch manager Mike Irvin connected with BENDER PLUMBING, Homes For Our Troopsand several vendors to supply materials at no cost to Jones and his family’s new home. Their newhome is being built by Spring Creek Homes in Fort Collins. By the time the project is done, 300 to400 people will have contributed or volunteered in some way. When all is said and done, the Jonesfamily will move in this summer, mortgage free.

GEORGE T. SANDERS thanks Irvin for taking the initiative on this project and supporting hiscommunity. Irvin, who has been with GTS for 34 years, has invested a lot of his own time and effortinto making this happen for the Jones family and is dedicated to seeing the project through to the end.In addition, GTS would like to thank the vendors for their contributions and recognize their donations:

• MANSFIELD PLUMBING (Swirl-Way), care of DALCART• BUCHE CARMCO SALES• BRADFORD-WHITE, care of BUCHE CARMCO SALES• CANPLAS, care of BEN COOK AND ASSOCIATES• GERBER FIXTURES, care of BEN COOK AND ASSOCIATES• MOEN FAUCETS• BRASSCRAFT, APOLLO and CONBRACO, care of MARSHALL RODENO ASSOCIATED• AMERICAN EAGLE, care of DILLON COMPANY• UPONOR, care of T.M. SALES• IPS, WATCO, WATTS and INSINKERATOR.

Homes for Our Troops has built 40 specially adapted homes for severely injured veterans all over thecountry including four in Colorado. For more information, or to contribute to this cause visit www.homesforourtroops.org.

GEORGE T. SANDERS has been servicing the needs of the professional plumbing and heatingtrades for over 50 years. Recently the company aquired HOUSTON SUPPLY in Wyoming, expandingtheir coverage to serve the greater Rocky Mountain region, now with 14 locations.


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