August 2008
Transcription
August 2008
August 2008 FALLOUT FROM NEW YORK TIMES ARTICLE KEEPS MIA VERY BUSY It is a very challenging time for our industry as some misleading allegations of two manufacturers of quartz surfaces got the attention of a leading newspaper, and the hype that followed. Since it appeared on July 24, MIA has been fighting fallout from the New York Times article. To complicate matters, the U.S. EPA has recently tempered some of its original statements made in basic support of granite countertops. While it is true that coverage and blog postings have slowed somewhat in early August, MIA has been extremely busy identifying and developing spokespersons and material needed to defend our industry from this unnecessary panic. Unfortunately, we do not expect the attacks on granite to end soon. Opponents have learned that partial truths, portrayed out of context often gain media attention. What continues to frustrate MIA most, however, is that the efforts by opponents/ competitors of granite seem less aimed at truly protecting the public than simply destroying our industry and the jobs we support. Executives of the U.S. Environmental Protection Agency did tell the Marble Institute of America that the Agency fully supports the MIA’s efforts to facilitate the creation of new scientific standards for the testing of granite countertops for radon. Speaking to MIA representatives, the Agency’s Indoor Environments Division executives indicated support for the industry’s effort, and indicated they will consider becoming involved in the standard-setting effort. It appears to be no coincidence that Cambria and Silestone both issued advertisements and announcements in the last week that their products are “certified” to be radon-free just as the public furor over this issue boiled over. MIA is shocked and saddened that anyone would attempt to prey on public fears, particularly those generated through the dissemination of misleading information, to benefit financially from the consumer panic. MIA is fully aware that many members are dealing with customer concerns, and materials have been distributed that can be of assistance. In addition, MIA recommends that, if you wish to refer customers to an independent web site that provides a rational discussion of the radon realities, you refer them to http://www.radon.com/radon/ granite.html. You will find a special page posted just last week by Air Chek, Inc., one of America’s largest providers of radon test kits. I think you will find the page to be both useful and calming to your customers. MIA does not currently have the resources in place to undertake this kind of aggressive defense of the industry. The association needs financial support, and encourages all stone industry firms to help us protect our industry’s good name by writing a check to the Marble Institute of America/Truth About Granite Fund. You can send those checks to Marble Institute of America; 28901 Clemens Road; Suite 100; Cleveland, OH USA 44145. Over 100 companies from around the world have already contributed, and that support is very much appreciated. Jim Hogan of Carrara Marble Company of America is MIA President for 2008 The issue of radon and granite is still being distorted and manipulated by those who would benefit from the confusion. The MIA is the gainsayer. We continue to confront the nonsense, half-lies and questionable science of the hucksters who are attempting to remove granite as an option for the consumer’s kitchen. The last week of July provided us with the most recent examples of media nonsense. It was a toss-up as to whose presentation was more sophomoric: Kate Murphy in the New York Times or Harry Smith on the CBS Early Show. I spent a great deal of time talking with Kate Murphy in an attempt to educate her on radon and radioactivity in natural stone. I also shared with her the “questionable science” of Continued on Page 10 President’s Message …………...….1 Technical Q & A ..……………….…..2 Monthly Quiz ..………………….…….4 Housing Market ...……………….….7 MIA Education …………...……….....9 Calendar of Events …………….….11 New Members of MIA …………….12 mm or cm ◄ ► My Opinion Have a technical question? Check MIA’s Dimension Stone Design Manual VII first. If you can’t find the answer there, contact MIA’s Technical Director, Chuck Muehlbauer at [email protected]. This FREE service is for MIA members only! (Non-member charge—$85/hour) As a courtesy to other members, please limit phone conversations to ten minutes per call. All opinions and advice provided by Chuck Muehlbauer or anyone else from MIA are provided as general information only. MIA assumes no responsibility and shall not be liable for any damages resulting from your use of this information. Any information provided by the MIA are the exclusive property of MIA and shall not be disseminated, republished, or reproduced in any manner without the prior written consent of MIA. Q: You’re driving me crazy with your use of mm whenever I read your column. In the stone industry, we’ve always used cm – it’s 2 cm or 3 cm slabs, not 20 mm or 30mm! I’m always forced to convert between the two. A: Fortunately for you, the conversion only entails moving the decimal point one place, so it’s not like I’m forcing you to convert miles per hour to furlongs per fortnight. I would agree with you that most in the North American stone industry probably prefer the use of the unit centimeter, particularly when referring to slab thicknesses. That’s probably because our first taste of metric in this industry was purchasing product from Europe, and in Europe the centimeter is much more commonly used. In other parts of the world, the Far East for example, it is more common to use millimeters. Neither is right or wrong. In the metric system, there is a preference to use prefixes that fit into the 103, or one thousand times factors, so that pico-, nano-, micro-, and milli indicate 10-12, 10-9, 10-6, and 10-3 respectively, and kilo -, mega-, giga-, and tera- indicate 103, 106, 109, and 1012 respectively. There are some exceptions to this where other units are acceptable, and the centimeter is one of these. My preference for the millimeter unit is simply that when used in construction, the millimeter is usually the finest increment that one needs to measure. It would be very rare that we ever need to measure in tenths of a millimeter, and therefore I never need to use a decimal point. Using decimal points when one is preparing shop 2 August 2008 tickets is somewhat prone to error, as the guy in the shop can’t always determine if there’s a decimal point or a flyspeck on the paper. I’ve always chuckled when I see shop drawings where the drafter used the dual dimension feature in AutoCAD, and converted the metric equivalents to tenths of millimeters. A ream (500 sheets) of standard weight photocopy paper measures nearly exactly 50 mm deep, so a tenth of a millimeter is nearly exactly the thickness of a sheet of paper, that degree of accuracy is not needed in construction plans! There is a very comprehensive document available on the proper use of the metric, or SI system. It’s titled SI 10 – 2002, American National Standard for the Use of the International System (SI) of units, and is published by ASTM (visit www.astm.org). And for anyone who cares, a furlong is 1/8 of a mile, and there are 24 hours in a day and 14 days in a fortnight, so one mile per hour equals 8 x 24 x 14, or 2,688 furlongs per fortnight (or 2.688 kilo-furlongs per fortnight). Q: Is there a specified maximum length of time that water is allowed to pond on a stone plaza after a rain? A: Actually, yes, but the length of time would be zero. A conventional mortar bed set stone plaza has to have aggressive surface drainage over its entire surface to perform. If you have an area that is “ponding” then that area is not draining at all. Elimination of the ponded water by evaporation is very slow, and much of the water will seep into the setting bed. Repeated saturation cycles in the setting bed will eventually break it down, and the performance and service life of the pavement system will be significantly reduced. Q: We’ve got a wood frame floor that doesn’t meet the MIA L/720 deflection recommendation. I see in the Dimension Stone Design Manual that L/360 is acceptable for concrete floors. If I put a cement board over the existing, I’m assuming that would qualify as a concrete substrate, in which case we don’t need the L/720? A: No, the use of a cementitious backer unit would not be considered a concrete substrate. The recommended deflection limits would still be L/720. Q: How thick does a granite paver have to be for pedestal pavement system? A: That would be dependent upon the flexural strength of the particular granite, the span between the pedestals, and the anticipated loading. I’ve done pedestal support granite pavement in all thicknesses from 1¼” to 6”. The heavy weight of design excellence by Deborah Burnett Deborah Burnett, ASID is a registered interior designer and licensed building contractor who appears on National TV with timely design segments and frequently teaches design pros and business owners on the power of COLOR LIGHT TEXTURE and STONE! Find out more at http://www.deborahburnett.com Here are the facts: Most top notch designers are sticklers for color. Most granite slabs vary in color; therefore, the best way to select granite is for the designer to view the entire slab in natural light …but here’s the rub: no way to provide accurate color sampling throughout the lengthy design process except for small ‘hard to visualize ‘ stone cuttings weighing in at 3- 5 pounds each! So when you consider that design pros are dependent on a mountain of product chips, cuttings, and samples all in an effort to color coordinate the overall project, it’s no wonder that so many designers are now specifying engineered stone. Could it be that the smaller, lighter weight, and consistent colorations of engineered stone samples are driving the trend? If so, then a touch of old fashioned chivalry and an updated supply of oversized granite samples throughout the process could be all it takes to ensure that natural stone products are specified and installed! It’s as easy as: 1 Contacting design pros for current projects 2 Identifying current color palettes that they are specifying 3 Arranging for a showroom van to visit the designer’s office or job site outfitted with hefty 18 x 18” minislabs selected to compliment their specified color palettes … who knows, with regular visits and color updates, granite and natural stone could be specified in more areas than originally intended! Deborah SAVE MONEY PROCESSING CREDIT CARDS The MIA engages endorsed partner programs within various sectors of the business industry in order to provide benefits to its members. Given the current, difficult economic times, it is now even more imperative for businesses to focus on cost saving measures. Through MIA’s partnership with EMS Payment Solutions, several members have saved thousands of dollars annually with respect to their credit card processing fees. In a business where reduced costs are the ultimate goal, EMS Payment Solutions, has additionally provided superior expertise, consultation and support to many MIA members. In addition to lower processing fees, EMS Payment Solutions also offers alternatives to the various ways you accept credit cards. They provide state of the art methods and equipment to accept credit cards as a form of payment. One such example involves MIA member Best-Way Marble of Los Angeles, CA. “EMS Payment Solutions provided a concise, easy to understand rate comparison. They were able to save us approximately $1,000 annually on our credit card processing fees and made changing processors seamless. On top of everything, they were extremely knowledgeable and genuine to work with,” states Shelley Herrera. EMS Payment Solutions provides complimentary rate reviews for any merchant currently accepting credit cards and consultation for merchants looking to begin to accept credit cards as a form of payment. For questions or a complimentary rate review and consultation, please contact Ryan Bendure toll free at 800.915.2406. Paid Advertisement August 2008 3 BRAZILIAN GRANITE MINING REGULATIONS By Selma Tosta Silveira, SDL Consultoria E Representacoes LTDA While reading a letter published by the president of BuildClean®, I was extremely surprised by the sentence, “Worse yet, most of the granite imported into the USA comes from developing countries where laws and regulations to protect the environment may be non existent or loosely enforced.” The Environmental Crimes Law Since the statement does not represent the truth or the reality about the Brazilian granite industry, we would like to share some very important information on mining and quarry regulation in our country. citizen to propose a Class Action against any person responsible for the damaging act to the environment, whether it be the government or a private person, plus, Brazil plays an important roll today in natural stone market of the United States. We are a consistent and growing supplier to the US market. We are a country of very modern and strict laws in regards to the mining and granite quarry extractions, always manageable. The Federal Constitution of Brazil has a specific, well-defined chapter for this subject. The importance of the environment is clearly a priority given the number of mechanisms which were created by our legal system in order to ensure its protection. The National Environment Policy Law 6938 of August 31, 1981, consolidates the national policy. Brazil's National Environment System, or SISNAMA, includes CONAMA (the National Environment Council), the highest ranking body responsible for ruling, consulting and taking decisions on environmental issues Quiz: 9.605/98, calls for criminal and administrative penalties in cases that damage the environment. A specific Law-Decree for Mining Activities (227/67). A very efficient law allows any An enormous number of resolutions and uniform decisions added as regulations. Another small but very effective example of how Brazilian law covers real needs is contained in the Brazilian Federal Constitution, article 225, §2º we have the written requirements how the entrepreneur will recover and reforest the environment where mineral resources were quarried. By law, granite mining activities in Brazil are conducted with loving respect for our land, the richness of our rivers, and the surrounding animal habitat. The law demands that one must first obtain legal authorization from the National Department of Mineral Production before commencing mineral survey and viability analysis. Licenses are demanded in specific stages: Previous License (LP), Installation License (LI) and Operation License (LO). The Previous License concerns the very basic concepts of the project: location, environmental viability and lays out the basic re- For years the Brazilian granite industry has advanced social and health conditions in conjunction with our national government policy. We have held seminars, courses and lectures covering topics from optimization of responsible mining activities to block transportation, and from slab handling to individual protection equipment and much more. Moisture Barrier (answer on page 11) August 2008 We have governmental agencies supervising quarries for their entire life-time, with accompanying administrative, civil and penal responsibilities, a set of surrounding laws for the rightful consolidation of justice. With an extensive list of requirements and procedures, Brazilian laws focus first to assure that mining activities will accomplish the social purpose as defined by the Johannesburg 2002 Report of the World Summit on Sustainable Development, which is, preserving the environment and enhancing human dignity. What will happen if you do not install a moisture barrier between the sub-floor and the setting bed in a slab-on-grade project? 4 quirements for the next licensing phase. Once the initial project is detailed and the proper environmental protection measures are defined, we must pursue the Operation License in order to initiate any construction or settling of equipment. Finally, the Operation License will allow us to initiate operations. Our purpose is to end wrongful ideas about our commitment to sustainable development. We observe strong and modern national laws. Thousands of families enjoy a strong and modern granite mining industry as their honest livelihood. All levels of our industry work effectively with maximum effort to please and provide remarkable products to the USA construction market. POSTER SCAMS HIT FIRMS OF ALL SIZES AND TYPES Employers know that the law requires them to display the state and federal labor law posters, but many businesses have lost money to poster scam artists. Ashley Kaplan, compliance attorney for Poster Guard Compliance Protection, explains how the con works. “A scam artist visits a business posing as a government agent, or mails an official-looking solicitation to a business. Business owners are led to believe that the labor law posters they are displaying are not in compliance with the current regulations and are then strong-armed into paying excessive fees for outdated or unnecessary posters.” Kaplan offers there tips for busi- ness owners to know they are dealing with a legitimate provider. 1. When choosing a provider, check with the Better Business Bureau to verify the seller’s quality and service standards. 2. Choose a provider that understands both state and federal laws, employs labor law attorneys and interpret regulatory changes and guarantees unlimited protection from fines. 3. Ask for written assurance that the posters meet exact agency specifications for font, size, poster size, color and layout. 4. Be suspicious of misleading poster offers that appear to be from the government. 5. If you are visited by someone posing as a government agent, ask to see credentials. 6. Be sure to report fraudulent incidents to the state attorney general. To obtain posters or for more information about poster requirements or other compliance assistance matters, contact the U.S. Department of Labor by telephone at 1888-9-SBREFA [972-7332], by email at [email protected] . Note: Several of these posters are available at Costco Business Centers and at the Business Center on costco.com MIA GOING PAPERLESS The Marble Institute of America is taking a major step this month to make virtually all of its communications with members paperless. Beginning with this issue, the monthly MIA newsletter and inserts will be sent electronically to all international members. Domestic members have an option to receive the Cutting Edge and its inserts either electronically or by mail. The either/or option begins with the September edition. “These are the first steps which we eventually hope will lead to total electronic distribution of the newsletter,” said Gary Distelhorst, executive vice president of MIA. “Many associations are now communicating with their members in this manner and it makes sense for a lot of reasons for MIA to move in that direction.” Paid Advertisement August 2008 5 CONTRACTOR PROFIT REPORT PREPARED FOR FABRICATORS — WATCHING PROFITS SLIP AWAY MIA members have made significant strides in recent years in terms of management sophistication. Even so, profits continue to lag. Despite the advances at the top of the organization, decisions continue to be made at the bottom that systematically erode profits. This article explores the issue of how profits continue to slip away, usually without even being noticed. It does so by looking at two specific issues: Determining the Magnitude of the Profit Reductions—Many of the profit losses are unseen, so it is only possible to develop an appreciation for how profit is undermined. In doing so, the focus will be on the sales force. The reality is that most of the profit challenges originate with pressures on the sales force. Eliminating Profit Erosion— Realistically, the problem of profits slipping away will never be entirely resolved as there will continue to be a massive number of activities associated with each individual job. However, both employee education and better sales tracking can go a long way in reducing the problem. Determining the Magnitude of the Profit Reductions There is no line item on the income statement that measures how much profit is lost due to ineffective decisions. By their very nature, the 6 losses are invisible, almost defying management to do something about them. Addressing the issue requires that a more detailed analysis of profit be generated within the firm. Based upon the latest numbers available, the typical MIA contractor firm has the following key operating characteristics: Net Sales Typical Job Size $3,000,000 $5,000 Number of Jobs 600 typical contractor has both fixed expenses and variable expenses. Fixed expenses are overhead expenses that tend to be difficult to shed as sales fall. Variable expenses, including things such as commissions, interest, bank-card charges and bad debts, are expenses that rise and fall with sales volume. For analysis purposes, variable expenses are assumed to be 7.0% of sales. The second column of numbers looks at what happens when the size of the typical job declines by 5.0%. This does not represent a price reduction. Instead, it might be a move to lower-quality materials or possibly a situation where all of the potential add-ons to the project are not suggested. The reality is that to generate $3,000,000 in annual revenue, the firm must complete a lot of jobs. Each job, in and of itself, is relatively small. However, small problems with each of them can multiply into a crisis for the entire firm. Exhibit 1 looks at the nature of the unseen slippages by focusing on sales force activity. The first column simply presents the profit results for a typical MIA member. The numbers reflect the results identified above. On the $3,000,000 in revenue the firm produced a gross margin of 38.0%. The bottom line was 3.5%, or $105,000. It is reasonable performance. The impact on profitability of 5.0% less revenue per job is often grossly underestimated because there is no way to measure how much profit was lost job by job. It is only after this occurs several times that total firm profits are suddenly smaller. As can be seen in the exhibit, though, the firm’s profit has fallen to $58,500 or 2.1% of sales. This is a reduction in dollar profit of 44.3%. Like every firm in every industry, the Exhibit 1 The Impact on Profitability of a 5% Reduction in the Size of the Job and a 5% Price Cut Job Size Number of Jobs Net Sales Cost of Goods Sold Gross Margin Variable Expenses Fixed Expenses Total Expenses Profit Before Taxes Profit Margin August 2008 Typical Job $5,000 600 5% Smaller Job $4,750 600 5% Price Reduction $4,750 600 Both at the Same Time $4,513 600 $3,000,000 1,860,000 1,140,000 210,000 825,000 1,035,000 $105,000 $2,850,000 1,767,000 1,083,000 199,500 825,000 1,024,500 $58,500 $2,850,000 1,860,000 990,000 199,500 825,000 1,024,500 -$34,500 $2,707,500 1,767,000 940,500 189,525 825,000 1,014,525 -$74,025 3.5% 2.1% -1.2% -2.7% The third column examines an even more troublesome scenario: a 5.0% price reduction on each job. In this situation, the sales decline is identical to the sales reduction associated with doing Continued on next page CONTRACTOR PROFIT REPORT FOR FABRICATORS continued from previous page smaller jobs. After that, though, everything changes very quickly. Since only the price is being reduced and not the size of the job, the cost of goods remains constant. As a result, gross margin falls dramatically. This works its way to the bottom line in a very negative fashion. The reasonably profitable operation quickly becomes a losing operation. In the case of the typical firm, the loss is $34,500 or 1.2% of sales. Both of these represent real-world situations. With diligence, it is possible to pick up most of the major price reductions. However, the vast majority of the minor ones slip by unnoticed. In contrast, the failure to generate as large a job as possible is extremely difficult to control under any circumstances. The final column of numbers indicates what would happen if both a reduction in the typical job size and a price reduction occurred at the same time. It should be almost self-evident that two negative scenarios combine to make a terrible one. With such a combination in effect the firm faces a massive profit challenge. Eliminating Profit Erosion It will never be possible to completely capture all of the potential profit on every job. There will always be too many activities per job to monitor each one closely. However, there are two significant steps that management can take that should help alleviate the problem. Profitability Education—The vast majority of sales employees, as well as much of the management team, probably has a very poor understanding of how profitability is generated (or undermined) in the firm. For example, when asked about the impact of a 5.0% reduction in job size, most employees would suggest that profit will fall 5.0% to 10.0% percent. There is no under- standing of how traumatic this situation quickly becomes. No firm wants to turn all of its employees into cost accountants. However, a more thorough understanding of how seemingly inconsequential actions dramatically impact profits is essential to success. Better Monitoring Systems— Traditional accounting systems do little to help firms control the issues identified in Exhibit 1. However, new database programs do provide a relatively easy means to undertake such an analysis. It is essential to begin to track key profit drivers, such as the average size of the job booked, by sales person over time. Without measurement, there is no basis for improvement. Moving Forward Most firms routinely experience reductions in profitability without even being aware of it. Such slippages are not limited to the sales area. They occur throughout the business. In order to achieve truly high-profit performance, the typical MIA member must begin to educate its employees on the nature of profit relationships. In addition, it needs to implement a tight control system that regularly tracks each of the key profit drivers in the firm. About the Author: Dr. Albert D. Bates is founder and president of Profit Planning Group, a distribution research firm headquartered in Boulder, Colorado. ©2004 Profit Planning Group. MIA has unlimited duplication rights for this manuscript. Further, members may duplicate this report for their internal use in any way desired. Duplication by any other organization in any manner is strictly prohibited. NOTE: Wholesale slab distributors are urged to participate in a new benchmarking survey administered by Profit Planning group. Contact MIA for more information. HOUSING MARKET: SAME REFRAIN If the monthly Cutting Edge housing column is beginning to sound like a broken record, there’s a good reason. The words and lyrics are pretty much the same – bad, and there’s not much hope that the tune will change anytime soon. We could probably just get by with the headlines, and you fill in the blanks: “Existing home sales skid in June.” “Builder confidence declines in July.” “Single-family housing starts and permits decline in June.” “June construction slips one percent.” “New home sales edge down in June.” “Fannie, Freddie rescue put at $25B” “Foreclosures filings more than doubled in second quarter.” “Home prices fell in May.” “No end in sight to three-year housing slump.” About the only piece of good news was the fact that residential building, including multi-family rose two percent, largely because of three projects in New York valued at $366 million and one in Salt Lake City valued at $139 million. Combined, they pushed the multi-family category up 11 percent. On the flip side, single-family slipped an additional one percent. All of this courtesy of McGraw-Hill Construction. Stay tuned. August 2008 7 CAMERON’S RESTORATION TIP OF THE QUARTER: LIPPAGE REMOVAL AND OVERLAPPING…...Cameron DeMille, DeMille Marble & Granite This is the first of an ongoing series titled, "Restoration Tip of the Quarter.” This article will cover a minor detail that can potentially create a huge problem; lippage removal and overlapping. Whether the job is big or small, the last thing you want to do is go backwards. Restoration and refinishing seems to be the fastest growing aspect of the stone industry these days, and paying close attention to these issues will set your work apart from the rest. that are left. These will be the darker, or shiny spots at the edges of the tiles. Take care to make your marks on the very edge of the tile right against the grout joint, otherwise it won’t do you any good. Make sure you use a color (red, white or black) that contrasts the stone so it will stand out through the water when you are grinding. The water will not wash away the markings, so you grind until the markings are gone. Now you know the tiles are truly flush. When you make your first cut on a floor to remove lippage, most likely you will not remove all the lippage on the first shot. You will need to go back over those areas to make sure it gets nice and flat. With all the water and slurry on the floor, it is impossible to tell whether or not you've completely eliminated all of the remaining "shiny spots." This is where one of my favorite pieces of equipment comes in, the china marker. Overlapping, as anyone associated with restoration knows, is a critical part of the process. Marking your edges in between grits gives you a clear cut path to follow when moving on to your next stage, ensuring that you're overlapping the right amount without any guess work. Marking in the correct spot is just as important as the grinding and honing itself. Rogue scratches on the outside of the scratch pattern must also be eliminated. After you've made your first pass, the floor should dry out fairly quick. Make your way around the floor and carefully mark all of the low spots There you have it, the cheapest tool in the tool box can make life easier. This can also serve as a training tool for the new tech on the crew. Hope this helps and thanks for tuning in. MIA WORKING ON INSURANCE PROGRAM TO COVER RADON MIA’s insurance advisors are in the process of negotiating a policy that will be made available through the Marble Institute of America for the benefit of its member natural stone companies. The carrier will be a national player and coverage will predominantly provide defense reimbursement in the event that a lawsuit is initiated that claims radon emissions from stone caused damages. The insurance industry previously provided similar insurance coverage for other groundless class action claims which, despite the ultimate outcome of the case, may cost substantial amounts of money to defend. The cost of the insurance would not be outrageous, it is anticipated that annual premiums would range between $1500 $3000 per shop. Watch for more details in the weeks ahead. 8 August 2008 (e.g. member in good standing, years in industry, etc - refer to MIA/CEU program handbook). MIA Expands CEU Program to help Members Conduct Natural Stone Presentations to the Design Community Odds are you have been asked to give (or have considered giving) a presentation to architects, kitchen & bath dealers, and others in the design community. When you conduct an architect lunch-and-learn or host an NKBA chapter event at your facility, it is a great way to provide much needed education about natural stone and become a stone “expert” in the eyes of the design community. Attends a train-the-trainer session. Adhere to the program guidelines as outlined in the program handbook. Sign an annual commitment form. Pay a $250 annual program participant fee and individual session administrative fees (when appropriate). MIA will: Maintain provider status with AIA. Conduct the train-the-trainer session for members. Provide approved powerpoint presentation for member to use. Assist member with necessary forms required for each presentation. Submit forms to AIA and maintains all records based on guide- lines. There are slight variations for the NKBA model, but the basic process is the same. To learn more about this program, members are encouraged to: Obtain a copy of the MIA/CEU program handbook – go online to: http://www.marbleinstitute.com/education Attend the train-the-trainer session that will be conducted at StonExpo. Contact Jim Hieb at the MIA office if you have any questions. Other Education News: Registration is now open for the “Making Money in a Tough Economy” Webinar Series (see schedule below). This online series addresses controlling costs, aggressive marketing efforts, and maximizing sales efforts. The StonExpo education program is set and offers a wide array of seminar & workshop programs – see insert. “ON-THE-ROAD” AGAIN WITH MIA Countertop & Floor Repair August 13-14, 2008 – San Leandro, CA OSHA / Stone Shop Safety Seminar One missing link is how to provide continuing education units (CEU) or learning units (LU) to those attending. The major associations (AIA, ASID, NKBA, etc) that represent the design community all require their members to acquire a number of continuing education credits. In 2005, the MIA launched a pilot program to provide CEU credits to architects, and this program is being expanded beyond the initial test group. Using the architect model, here is a quick summary of how the program works: Member will: Meet qualifying components August 20, 2008 – San Diego, CA Making Money in a Tough Economy Webinar Series (4 or 5 great programs for 1 low price) Making Money in a Tough Market – September 10, 2008 Marketing - Yellow Pages and Online Search: Being in the Right Place When Customers Look for a Stone Contractor September 17, 2008 Insurance and Your Bottom Line-Insure or Not to Insure September 24, 2008 Understanding Your Countertop Fabrication Costs October 1, 2008 Growing Revenue — October 8, 2008 August 2008 9 JIM HOGAN ON DEALING WITH THE RADON ISSUE….Continued from Page 1 DIRECT MAIL AD PROGRAM Sarah Selberg, BuildClean, Consentino/SileStone, and Cambria. Evidently the subject matter was beyond her comprehension and she made no effort to sort through the difference between fact and fiction. But so it goes for the New York Times: conclusions first, evidence and facts later. The Marble Institute is committed to helping its members aggressively battle to win over every potential new customer. Our efforts on the national level are unprecedented and now we’re bringing that same support to the local level. Next up: Harry Smith, a morning show host who is so verbally incontinent that he seemed to have rendered even the charlatan Stanley Leibert incoherent. Stanley was introduced as the resident radon and granite oracle and then proceeded to break every rule you remember from eighth grade science, eventually confusing radon with radioactivity as if they were declensions of the root word radio. And what a spectacle it was: Stanley selling snake oil and Harry as his carnival barker. Like many of you, I am already on the jobsite or the plant during broadcast of these morning shows. So I had to watch this later on the CBS website. As this segment was playing out on my computer screen I was unsure if I was on the correct website. I thought perhaps I wandered on to National Enquirer.com (with apologies to the National Enquirer). In any event, 10 August 2008 among Kate Murphy, Harry Smith and Stanley Liebert it was a bad week for honest reporting, sound science, and facts. Caveat Emptor is the watchword for the daily consumer of mainstream media. So what is the MIA doing about all this? First of all, we are fully engaged. Other newsletter articles will enlighten you as to our actions. Second, visit our website; we have added a micro website on our homepage that will allow you, with one click of the mouse, to immediately access all information available regarding radon and granite and the most current engagements of the MIA on this subject. Third, we are continuing to work with the scientific community to establish standards for testing and data interpretation that will allow all of us – from quarrier, to fabricator, to distributor and eventually the consumer – to put the issue to rest by confirming the safe use of granite in the home. Paid Advertisement Jim This issue of our newsletter contains information about a brand new, member-only, direct mail marketing program; the kind of initiative fabricators have asked MIA to undertake on their behalf. In light of the recent attacks upon the natural stone industry by engineered stone competitors, MIA executive director Gary Distelhorst says this type of aggressive, grass roots marketing campaign can be just the thing to win back business for your company. “This program is designed to help our members capture their share of the billions of dollars worth of remodeling and new construction projects that will be starting in the coming months,” said Distelhorst. Each participant will be able to customize two full pages of an oversized, glossy, four page color mailer with their own photos, copy, logo, and contact information. MIA is providing layout, coordination and mailing services at no additional charge. Participants can use their own mailing lists or MIA members can purchase lists based on the fabricators’ marketing specifications. For those participants who are new to direct mail or who want more detailed demographic analysis, MIA is offering access to exclusive research information to help fabricators identify and locate their best customers and prospects. “Instead of flooding the market hoping to find a few customers, we can help you pinpoint your mailing so it goes only to the people who are most likely to do business with your company,” said program coordinator Marty Gould. Continued on next page Stone Industry Calendar August 26-29, 2008—Cachoeiro 2008 Stone Fair, Cachoeiro de Itapemirim, Espirito Santo - Brazil. +(55) 27 3337.6855, www.cachoeirostonefair.com.br September 9-12, 2008—Remodeling Show 2008, Baltimore Convention Center, Baltimore, MD, 800.681.6970, web: www.theremodelingshow.com *** October 15-18, 2008—StonExpo 2008 & MIA Annual Convention, Mandalay Bay Convention Center, Las Vegas, NV. This is THE Stone Industry Show, 972.536.6440, web: www.StonExpo.com *** January 20-23, 2009—The International Builders Show, Las Vegas Convention Center, Las Vegas, NV. 800.368.5242; www.BuildersShow.com February 2-5, 2009—Surfaces 2009, Sands Expo and Convention Center, Las Vegas, NV Phone: 800.547.3477; Fax: 972.536.6401 www.SurfacesExpo.com. *** February 10-13, 2009—Vitória Stone Fair, Pavilion of Carapina - Serra Espirito Santo - Brazil. +(55) 27 3337.6855; [email protected] February 19-21, 2009—Surface Fabrication & Design Expo, Orange County Convention Center, Orlando, FL. Phone: 800.827.8009, www.SFDExpo.com April 21-24, 2009—Coverings, McCormick Place Convention Center, Chicago, IL. 866-285-3691, e-mail: [email protected] *** April 30-May 2, 2009—American Institute of Architects Convention & Expo, San Francisco, CA, 617.406.4000, e-mail: [email protected] April 30-May 3, 2009—National Kitchen & Bath Association (KBIS), Georgia World Congress Center, Atlanta, GA. 800.843.6522; www.nkba.com *** Here and There On the occasion of the 20th Anniversary of the Maryland Small Business Development Center, Janan Broadbent of Stone Exotics, received one of five Special Appreciation Awards. Stone Exotics, located in Baltimore, was founded in 2002 as an importer/fabricator/installer of natural stone products for residential and commercial development. The award from the MDSBDC was given to Dr. Broadbent to recognize her hard work and commitment to developing her business within Baltimore. Dimensions of Marble (DoM), a nonprofit organization created by local leaders to honor the history and artistry of the people who carved out an international market for the Vermont marble industry, has announced a May 2008 launch for a series of educational, cultural and historic events designed to reinforce civic pride throughout the State and underscore the creative economy marble has long supported in Vermont. Projects already in development include a cultural heritage DVD, an international symposium of sculptors that involves a partnership with Sias International University in China and the launch of The Vermont Marble Trail, complete with web-based interactive educational materials. DIRECT MAIL AD PROGRAM Continued from previous page Answer to Quiz: Moisture may travel to the face of the stone from the ground or structural slab, carrying salts with it and causing the stone to darken. Salts in the cement in the structural slab will percolate to the face of the stone pavers. The floor may fail. “I urge you to review this program and incorporate it into your fourth quarter marketing plans,” said Distelhorst. “It will not only generate new business for your company, it will send a message across the country that natural stone remains the most desired, reliable and safe solid surface product on the market today.” Sign up by September 15 and save $300 on your participation cost. Details and enrollment forms can be found inside this month’s newsletter or online at www.marble-institute.com. August 2008 11 Welcome New MIA Members CONTACT Executive Vice President & CEO Garis Distelhorst: [email protected] Special Projects Director Jim Hieb: [email protected] Technical Director Chuck Muehlbauer: [email protected] Meetings, Events, & Awards Director Helen Distelhorst: [email protected] Membership Director Cathy Mayer: [email protected] Accreditation Program Manager Garen Distelhorst:[email protected] Office Administration Marcie Becker: [email protected] Membership Relations Manager Jeff Handley: [email protected] Industry Information & Research Manager Mike Loflin: [email protected] COMPANY Nick Goumas Austin Yavorsky Dan Vieira Ray St. Gelais Claudio Sandrini Zeynep Acar Anthony Stock Tom Breeding Jay Rauton Jason Galek Rosalie Hershfield Grant McGrenera Brandon Fish Joe Pieri Donald Truetken Kenny Laymons Mark Heitman Ravikumar Gaddam Michelle Monaco Price Wills Mark Hari Joe Blackmon Maria Albuquerque Richard Pease Michele Bernardini Mark Zografos Attila Secchin Greg Eshbach Zachary Hallberg Massimo Perinelli Beatriz Olivera Filippo Tedeschi Giuseppe Telara CITY/STATE/COUNTRY Nik-A-De Granite Dominion Granite & Marble Diamant Venturi TWD Surfaces Pemagran-Pedras IZFAS-Izmir Fair Australian Stone Advisory Assn Levantina USA (MD) Melcer Tile Co., Inc. SL Laser Systems L P Waterworks Levantina USA (IL) Levantina USA (GA) Levantina USA (LA) Progressive Stone Specialists Durcon Inc. Durcon Inc. (MI) Southern Rocks Pacific Ltd Shell Fab & Design, Inc. Montana Tile & Stone Technical Cabinetry & Millwork Myrtle Beach Granite & Marble Canada Stone Inc. Contempo Ceramic Tile Pietra Fina Italian Marble & Granite Inc. Gramil - Granitos E Marmores Malsnee Tile & Stone TAB India Granites Pvt Ltd. Tutto Marmo, Inc. Mendoza Marble & Granite La Ponte Marmi SRL La Ponte Marmi Wadsworth, OH Ashburn, VA Deerfield Beach, FL Bridgewater, MA BRAZIL Izmir/TURKEY AUSTRALIA Jessup, MD North Charleston, SC Charlotte, NC Danbury, CT Bensenville, IL Lawrenceville, GA Folsom, LA McCordsville, IN Taylor, TX Canton, MI NEW ZEALAND West Seneca, NY Bozeman, MT Cedar Knolls, NJ Myrtle Beach, SC BC/CANADA Salt Lake City, UT Hayward. CA Clarence, NY BRAZIL Leesport, PA INDIA San Diego, CA Wharton, NJ ITALY Freehold, NJ Office Assistant Megan Knight: [email protected] NATURAL STONE FABRICATOR CogswellStone-Palmyra, VA, Creative Countertops-Las Vegas, NV, Ferrazzoli Imports of New England-Middletown, CT, Great Lakes Granite and MarbleRedford, MI, Innovative Surfaces, Inc.-Hastings, MN, Johnson Granite, Mt. Airy, NC, Malisani, Inc.-Great Falls, MT, Marble Emporium-Northbrook, IL, MARBLEX, Fairfax, VA, NBC Solid Surfaces-Springfield, VT, Premier Surfaces-Alpharetta, GA, Radtke Tile and Marble-Carson City, NV, SolidtopsEaston, MD, Stone Interiors-Loxley, AL, Stone Interiors East-Gaston, SC, Surface Products, Inc.-Cornelius, NC COMMERCIAL B CONTRACTOR Grazzini Brothers & Company-Eagan, MN ** = Newly Accredited 12 August 2008 New Economic Environment = New Business Strategies Business Owners... Are You Ready? Today’s ever-changing business environment demands that stone companies stay ahead of the competition. The MIA will be introducing a new webinar series offering stone industry owners and key executives the skills and strategies needed to be out in front regardless of the economic conditions. Controlling costs, getting aggressive with marketing efforts, and maximizing sales are all critical components that will be addressed in the upcoming webinars. Five new business owner-oriented webinars (interactive, 60-minute seminars conducted online) will be offered in part through the generous support of the Kohler Company. “Business owners need to tackle the tough decisions in today’s economy. This program will provide you a convenient and affordable way to access valuable professional development and networking opportunities without taking time off from work or paying travel expenses!” – MIA Vice President Guido Gliori, Grazzini Brothers & Company Four Great Ways to Participate! 1 Just $49 per webinar for MIA members. Take advantage of the Webinar Package for JUST $199 (includes live events, archive make-ups, & CD Box Set) SAVE $175 September 10, 2008 Making Money in a Tough Market September 17, 2008 MARKETING Online Searches & Yellow Pages Placement: Being in the Right Place When Customers Look for a Stone Contractor Live Webinar $49/webinar for members $69 for non-members You can have an unlimited number of participants from your company join you in your office or conference room. Participants will have an opportunity to ask the instructor questions through the online webinar messaging system. The webinar will be streamed so just turn up the speakers on your computer. If you are concerned about your busy schedule and the webinar times, we recommend that you take advantage of the 5 webinar package offer which includes a CD Box Set of all 5 seminars. Webinar 2 Archived $49/webinar for members $69 for non-members The MIA Webinar Series: • Addresses topics for business owners given today’s economy • Requires no travel • Allows for five sessions at ONE LOW COST • Includes tips that can be implemented immediately All LIVE events will occur at: 3:30pm (ET) • 2:30pm (CT) 1:30pm (MT) • 12:30pm (PT) Additional webinars may be announced. Watch for additional offerings on the MIA website. This is the same class we conducted live. While you won’t have the opportunity to ask questions, you'll see the same great presentation and hear what questions were asked by the live audience. The archive webinar provides you and your team with up-to-10 opportunities to watch the class online. Box Set 3 CD All 5 Webinars $129 for members • $169 for non-members You’ll receive a CD Box Set with all five webinars (shipped following the conclusion of the fifth webinar). The CD Box Set allows for unlimited views. September 24, 2008 Live Events + Archive Make-ups + CD Box Set Package 4 Five $199 for members (SAVE $175! Best Value!) • $249 for non-members Insurance and Your Bottom Line: Insure or Not to Insure You’ll be registered for each of the live webinars. If you can’t participate in the live webinar, you’ll automatically receive an email with a link to participate in the archived event (similar to a make-up class from your school days). AND you’ll receive a CD Box Set with all five webinars. October 1, 2008 Understanding Your Countertop Fabrication Costs October 8, 2008 Growing Revenue Through Diversification Register Online: All registration is done online. Simply go to www.marble-institute.com. Discounts are available if you purchase 2-4 webinars - go online for more information. 28901 Clemens Road • Suite 100 • Cleveland, OH 44145 Ph: 440.250.9222 • Fax: 440.250.9223 www.marble-institute.com THE BEAUTY OF STONE THE POWER OF TEAMWORK MIA MEMBERS, BUILD YOUR BUSINESS AT STONEXPO/MARMOMACC AMERICAS! Meet and learn from the best at StonExpo/Marmomacc Americas—where fabricators, installers and designers all come together to sharpen their skills. As a member of the MIA, receive additional discounts on educational sessions, conference packages and MIA events when you register by September 25! MIA EVENTS Official Show Sponsors American Monument Association Building Stone Institute Canadian Stone Association Elberton Granite Association National Building Granite Quarries Association Northwest Granite Manufacturers Association Gala Reception Thursday, October 16 5:30 pm - 6:30 pm Awards Luncheon & Annual Meeting Friday, October 17 12:00 pm - 2:00 pm President’s Reception Friday, October 17 6:00 pm - 7:00 pm Official Endorsers CONFERENCE OCT 15-18, 2008 | EXPO OCT 16-18, 2008 MANDALAY BAY CONVENTION CENTER | LAS VEGAS, NV Register Today at www.StonExpo.com Help a Young Industry Colleague! MIA created the MIA Natural Stone Scholarship Fund to provide educational opportunities for individuals relatively new to the natural stone industry and interested in furthering their careers within it. The scholarship will cover travel and registration costs to StonExpo for the person(s) selected. Your Contribution is Needed Your financial contribution to the MIA Natural Stone Scholarship Fund will enable MIA to send one or more individuals to StonExpo and the MIA Annual Meeting, where they can glean valuable technical and practical knowledge from educational programs, meet and network with leading stone professionals, and deepen their commitment and potential for future leadership within the natural stone industry. The Scholarship Selection Process Each year, interested fabricators, installers, and administrative apprentices with fewer than five years of experience in the stone industry will be invited to submit an application for consideration. Applicants will be reviewed by a committee of the MIA Board of Directors, MIA staff, and industry veterans. The number of scholarships awarded annually will depend on the level of industry support through contributions. “Winning the MIA Scholarship broadened my perspective and exposed me to new ideas and leaders within the stone industry. The MIA is an invaluable resource and this award has given me new goals to achieve within the industry.” Alberto Garcia, 2007 Recipient Maintenance Machanic and Fabricator Castle Rock Marble and Granite, Inc., Bronx, NY Please Send Your Contribution Today! I’d like to support the 2008 MIA Natural Stone Education Scholarship Fund Drive! ✔ Yes, Enclosed is my credit card info or check made payable to: Marble Institute of America Scholarship Fund. Complete Contact Information Contact Name:___________________________________________________________________________________ Company Name: _________________________________________________________________________________ Address: ________________________________________________________________________________________ City: ________________________________________ State: ____________________ ZIP: ___________________ Phone: ______________________________________ FAX: _____________________________________________ E-mail: ________________________________________________________________________________________ Select Form of Payment ❑ Check (Payable to MIA) ❑ MasterCard ❑ VISA ❑ American Express Credit Card No.: ___________________________________ Verification Code: ___________ Expiration:________ Signature:_______________________________________________________________ Date: __________________ If credit card billing address is different than address above please list info below: Company Name: _________________________________________________________________________________ Address: ________________________________________________________________________________________ City: ________________________________________ State: ____________________ ZIP: ___________________ Send your tax-deductible contribution to: Marble Institute of America 28901 Clemens Road • Suite 100 • Cleveland, OH USA 44145 Phone: 440.250.9222 • Fax: 440.250.9223 Your Shipping Connection “AMJ Supply has been saving thousands of dollars in shipping costs with the MIA Discount Shipping Program through PartnerShip. I ship to multiple stone professionals every day from both my Atlanta and Denver locations via FedEx Ground®. The money I save on my shipments pays for my MIA membership many times over. I’d recommend the services of PartnerShip to any MIA member. Even if you ship only occasionally, the MIA Discount Shipping Program is free to MIA members and is no hassle at all.” – David Howard, President, AMJ Supply Join the 600 MIA members who saved over $982,800 using the endorsed MIA Discount Shipping Program, a member benefit provided by PartnerShip and the Marble Institute of America. 31%* 20% 10% Enroll online today at PartnerShip.com/27MIA For more information, call PartnerShip at 800-599-2902. or simply complete and fax back the enrollment form (on reverse) to PartnerShip at 800-439-8913. *Includes a bonus 5% online processing discount. Full details available at www.partnership.com/27mia/discounts.asp For eligible FedEx services and rates, contact your association or PartnerShip. All FedEx shipments are subject to the applicable FedEx Service Guide. FedEx service marks used by permission. PartnerShip LLC, an independent transportation broker, produced this flyer. (2773)