Scouting Report Jan/Feb 2012

An ALLPRO® Publication VOL. 22, ISSUE 1 JANUARY / FEBRUARY 2012

by: Joe Poliseo

Looking Ahead Whew! Enough for one year. Moving a Distribution Center, Relocating offices, Opening a 2nd Distribution Center from scratch, working on a complete computer conversion. Oh, and a record volume of Business…that should do it for 2011.

What’s coming up? What’s New? Let’s start with the Spring Sales Promotion Meeting in March (14 – 18).

A BRAND NEW venue for the group…Rosen Shingle Creek in Orlando, FL. The notification for the meeting invitation has already been sent and registration is open. Our purchasing committee members are in the process of contacting all vendors to arrange meaningful show specials, and we are putting particular emphasis this year on AT SHOW ONLY SPECIALS. We plan to list these separately to the members a couple of weeks prior to the meeting and know that these promote more visitation and conversation during the exhibit hours, allowing our vendors to tell their story.

We anticipate record attendance for the premier event in the industry, so please be sure to get your reservations and information in early. We have a few twists on the visitation contests this year, as members will continue to be rewarded for booth meetings with the suppliers and order writing at the show.

With the addition of three new ALLPRO members beginning in January (B & B Paints, GA; Clement’s Paint, TX and Koopman Lumber, MA) the membership total will reach an all-time high of 274 companies and is now approaching 1,600 store fronts. We have witnessed a lot of progress as we enter our 52nd year and truly look forward to providing assistance and value for many more years to come.

Led by Vice President Vic Meier, the ALLPRO Business Development Team continues to offer

sound assistance to members and vendors alike as they visit and consult with the membership throughout the year. Their efforts support and enhance the communication, progress and success stories of the organization. Please feel free to call on any of the team (names, phone numbers and e-mails are all on the ALLPRO website under “Member Companies”) whenever assistance is needed.

Plans for the fall Stockholders meeting this year include more member workshops and seminars, as well as a focus on our Operational and POS suppliers. That meeting will be in late October. The schedule and locations for ALL ALLPRO spring and fall meetings is listed in every Scouting Report and available 24/7 on the ALLPRO website under the “Meeting Info” tab.

As an added reminder, the ALLPRO Corporate website (www.allprocorp.com) is a complete, password protected business to business site with a wealth of information for members and suppliers. Up-to-date member company/ contact info (Member Companies) and Supplier program, pricing and contact info (Supplier Information) is always current and fresh.

The above mentioned show specials are posted as soon as they are agreed upon and approved by the committee members so that members can begin planning their show buys. Communication on anything that is occurring with our vendors is sent and archived every two weeks via our purchasing updates. Please be sure to utilize this valuable informational tool as needed.

While we do not have plans for as many new and challenging logistical events in 2012, we anticipate a great and productive year and thank all of you for your ongoing support.

Cost Containment Strategies

especially costly because unless you act within a 30 day window your agreement will automatically renew for the same term that just matured. I have had clients that have had a telecommunications agreement auto renew for another 36 months and they were not able to get out of it. Six years is a long time to be locked into a technology vendor due to all the technology advances that occur annually. The good news is that most vendors will remove the auto renew clause without too much prodding, but you have to catch it and make the request.

By Neal Vick, Optimum ERC

As a utility cost containment professional I am often asked by businesses what they can do themselves to control their overhead costs. They often feel that their overhead costs are fixed and there is nothing they can do about them and most are resigned to simply budget for an annual increase at the end of the year. However, there are quite a few things that businesses can do to control costs - the key is taking the time to do what is needed. The savings can be substantial.

Be aware of vendor agreements that guarantee a discount but not a base rate. These are often found in telecommunications and freight. The discount remains fixed for the term of the agreement but the vendor can raise the base rate that the discount is based off of thus eroding your effective discount over time. Your choices are to enter into a shorter agreement to limit exposure or ask that the base rate as well as the discount be locked into place for the entire term. It has been my experience that business owners can sometimes find value in working with brokers on these types of agreements. The reason is that brokers can save business owners time while also comparing and contrasting vendor offers. Also some brokers do so much business with vendors that they are not subject to the annual rate increases that the general public experiences and can pass that on as a benefit to their clients. Working with a broker is an individual decision that each business owner will have to make according to their own needs.

Watch Those Invoices Pay attention to price increases. This is not always easy because some vendor agreements don’t require notification of a price increase and other vendors sometimes include notification of a price increase on the last page of their invoice. If you notice a price increase you need to first determine if this is due to a billing error by the vendor. Perhaps it is an issue where a discount is being applied incorrectly or it could be a general rate increase you are subject to.

Your job is to get to the root of the price increase and have it reversed if possible.

Hands On Make sure you can always put your hands on your vendor agreements. Many clients I consult with cannot locate their agreements and it puts them at a disadvantage because business owners are not able to determine when their current agreement will come up for renewal. If you cannot find a vendor agreement you signed then contact the vendor and ask them to send you a copy. If they cannot produce a copy after a reasonable amount of time then you can consider yourself not under a term agreement with that vendor.

Use It or Lose It One of the most common issues I find in working with my clients is that they often have telecommunications services that they pay for that they don’t need any more. This can be either telephone lines or dial up modems that they may have thought were cancelled months or years ago. In evaluating the services you have you may also encounter third party charges that have been crammed on your invoice. Most telecom carriers will remove the services and offer a credit once you have brought it to their attention but the credit will usually be limited to three to six months.

The Fine Print There is a lot of money to be saved in the fine print of vendor agreements. When entering into vendor agreements make sure you are aware of the following pitfalls. Watch out for the one sided agreement. This agreement locks you into using the vendor for a specific term but you have no protection on the vendor raising their price during the term of the agreement. Your choices are to require an addendum that reflects a price freeze for the term of the agreement or an addendum that will put a rate cap on the amount the price can be increased on an annual basis. You could also negotiate a one year agreement instead of the twenty four or thirty six month agreement. This will limit your exposure to price increases.

Watch out also for the auto renewal agreement. These are becoming more common in telecommunications and waste removal agreements. These can be

Most businesses engage cost containment companies because they don’t have the time or resources to do everything that is needed but as you can see there are quite a few ways in which business owners have more control than perhaps they initially thought. The steps I outlined are pretty simple but it does take due diligence and time. But after all, time is money.

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Laredo Paint & Decorating

stock market just one year later, soon gave way to the lost opportunities and poverty that were hallmarks of the Great Depression.

By Scott Morath It was the decade of the 20’s or more appropriately, the roaring twenties. The United States was in the middle of a period of economic prosperity it had never experienced before.

Mass production of everything from toys to Model T’s was just hitting its stride and jobs were plentiful. So much so that people were moving into cities in record numbers to obtain their share of what would later be called the American Dream. One such dreamer was a young Texan named Emmett Lee Addison, who left the small community of Carrizo Springs to carve out a niche for himself in the South Texas border town of Laredo.

Fortunately for Emmett, the Rio Grande Paint Co. catered largely to the Mexican trade, so it was less dependent on the U.S. economy than it was the local economy of Nuevo Laredo - Laredo’s sister town which sits on the Mexican side of the Rio Grande. In those days Mexican nationals would regularly cross the border to purchase goods from the paint store. This was due primarily to the superior quality of products that were available in the states relative to Mexico.

Mexican customers would buy paint and art supplies then smuggle those goods into Mexico to avoid paying high Mexican duties.

Even with the benefit of the Mexican trade, times were tough and business was very lean. To put it in perspective, current owner and Emmett’s son Tom Addison recalls his dad telling him, “In those days, if you sold a couple gallons of white paint the family would eat that night.”

Still, if there’s one thing a border town Texan knows how to do its make the best of a tough situation and Emmett did just that. In 1932 he changed the name of the company to Laredo Paint and Wallpaper to better reflect the market Emmett wanted to serve and the product assortment available.

Emmett came to Laredo and initially took a job operating a lumber yard. While work at the lumber yard was steady and paid the bills, Emmett soon realized there were other, even more Perseverance saw Emmett and promising opportunities for a Laredo Paint through those tough young man willing to show true years and in time the company grit. For Emmett, the opportunity truly began to prosper. As with came in the form of the Rio most family businesses kids soon Grande Paint Co., named after the entered the picture and one in river that separates the sister particular would follow in his cities of Laredo in the U.S. and father’s footsteps. Tom Addison Nuevo Laredo in Mexico. got involved in the business in Emmett Lee Addison behind the counter of what Presumably, he learned of the the mid-50s - although, he’ll was still the Reo Grande Paint Col opportunity to purchase the paint quickly tell you he was being groomed for the business from day one. As he puts it, store through his contacts at the lumber yard.

“My parents gave me a paint brush instead of a rattle.”

Whatever the circumstance, Emmett purchased the Once he was old enough to work Tom traded his paint company in 1928 and set about pursuing his dream brush for other, more practical tools. He started out in earnest. sweeping the floors and painting the top of enamel The business was located in a three story building, cans to set out on display, and performed other which consisted of a basement, a main floor and a housekeeping duties. Those duties were soon followed mezzanine. In addition to paint the store carried a by other tasks like making deliveries, mixing paint, and even calling on contractors. Throughout his teenage variety of wallcovering, glass, art supplies, and picture years and during his time as a Marine in the Reserves frames. For that reason the paint inventory had to be Tom worked in the store. It was in the late 60’s when stored in the basement via wood panels used to slide Tom began to transition into the business full time. the paint down from the ground floor. Whenever a sale was made the paint had to be carted back up to the Up until the early 70’s Laredo Paint was a single main floor. Overall, the store was about 4,000 sq. ft. location paint store. It was during that period when the and originally had about four employees, which Mexican trade that helped buoy the company through included Emmett’s wife Ruby, who served as the the depression began to become more of a detriment. company bookkeeper. Unfortunately, the wide spread Specifically, the Mexican peso would routinely be prosperity that embodied the idea of the American devalued and when that occurred business would Dream was short lived and, with the collapse of the (continued on page 7)

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QR Codes: What Are They?

and 55. Another indication of more good news for the paint and decorating industry is that females account for 64% of all QR scans and these females are generally head of households.

By Al Kinnear, Bigeye Productions The Background and Growth of QR Codes A QR code is a matrix barcode that was invented in the automotive industry by Toyota in 1994 to identify and track auto parts in their manufacturing plants. QR stands for Quick Response and has created a very effective way of connecting with consumers through their smart phones. QR codes are now being used to direct consumers to mobile websites where additional information, videos and/or promotional information has been setup by a website owner.

Potential uses of QR Codes in the paint and decor industry include QR code links on paint can labels or lids to MSDS information or surface preparation tips, video's of proper application of coatings or faux finishes, and even troubleshooting information.

CalgaryPaint.com QR Code Campaign In October 2011, Dave Allan of Southpointe Paint & Decorating in Calgary, Alberta contacted Bigeye Productions to work with the Calgary Benjamin Moore Retailers on a Bus Advertising campaign that included a QR code.

If you scan the QR code at the top of this article with your smart phone it will take you to an advertisement for Ben Paint meant to raise brand awareness for Benjamin Moore Ben and the Calgary Benjamin Moore dealers. The mobile website contains repetition of the Ben Paint & Primer Ad and price point and a link for more information for the 13 local Benjamin Moore dealer locations.

QR codes are beginning to show up on every form of advertising, from posters, brochures, magazine ads and other traditional print media to appeal to users of iPhones and other smart phones. Generally a call to action is incorporated with the QR code that draws the user to pull out their phone, scan the QR code and then be taken to a mobile website that has been created for a specific advertising campaign, or to allow the user to have quick and easy access to information such as store locations, phone numbers, interactive maps and additional product information.

As per Dave Allan, "I like the fact that this moving ad, has created an interest in our group website (www.calgarypaints.com), and now people are looking out for other ways we will market ourselves in unique ways." The bus ad campaign is a 16 week program that is still underway. The QR code can be seen on the right side of the bus.

One of the current challenges to QR code advertising is that smart phone users must download a QR Reader onto their smart phone. Many QR Code Apps or readers for smart phones exist, and they are free, but without a QR code reader 'onboard' of a consumer's smart phone, they cannot benefit from the QR Code experience. A couple popular QR code scanners are CertainTeed (Blackberry App) and QR Reader (Free iPhone App). Despite the consumer need to download a QR Code reader, it is still very impressive that QR Scans grew an impressive 1200% from July to December of 2010 and the growth continues. QR Codes are an effective means of advertising, and a new way to attract consumers to learn more about products and services.

According to Dave Allan, of Southpointe Paint & Decor, one of the challenges was how consumers observing the bus might scan the QR code while the bus was moving; consideration is being given for a future campaign of including QR codes on the interior of the bus with matching advertising information on several Handrail signs. Despite this challenge the QR Code has been scanned over 150 times in the first few weeks of the campaign providing additional benefit to the fact this bus is on the road every day of the week advertising the CalgaryPaints.com website and raising the profile of Benjamin Moore and its local dealers.

Dave seems really happy with both the advertisement strategy and the results from the QR Code, "Purely from an impact point of view, this has been one of the most successful campaigns we have run. People that have seen it, love it. People that have heard about it, want to see it. Literally we made it look as thou someone had spilled a big can of paint on the top of the bus and it was dripping down. Including a QR Code on the bus was really just an experiment to see how it would work, the fact that we have seen some pretty good scan numbers is really just icing on the cake to a fantastic advertising campaign.

According to a Mobio Identity Systems study, 68% of the QR Code scans are performed by Apple iPhones, while 26% of the scans are performed by the Android platform. What could possibly be the best news for paint and decorating retailers is that people between the ages of 35-44 are actually performing the most QR code scans at an impressive 25% of scans, while the 25-34 and 45-54 year old age groups both perform 22% of scans which results in a total of 69% of all scans coming from individuals between the ages of 25

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ALLPRO® Member & Suppliers Profiles

By Angel Nemath ALLPRO has had the good fortune to add the highest quality companies in the industry to the group.

We continue to grow and are pleased to profile some of our members.

ENCORE PLASTICS • • • • • • • • •

•

•

• # Full-Time Employees: 8 • Wholesale/Commercial/Contractor: 55%, Retail/DIY: 45%

Founded: 1987 Location: Sandusky, OH 44870 Telephone: (419) 541-1488 Web site address: www.e-encore.com Founders: John Rathbun and Don Diecks Current President: Craig Rathbun ALLPRO Contact: Al Wallenhorst # Full-Time Employees: 243 Encore Plastics is a paint sundry supplier of plastic containers and paint trays. We maintain a competitive edge in quality, service and productivity to result in the best total value. Our commitment is to understand and meet our customer’s requirements.

Our employees are the strength of our company which provides quality products, engineered innovation, creative development and continuous improvement in the elimination of unnecessary costs.

Encore Plastics was established in 1987 in Pittsburgh, PA as a regional paint sundry distributor.

The company was relocated to Sandusky, OH in 1993 and the current management assumed control of the operation in 1977. With the acquisition of Jonathan Bye Industries in 1998 Encore began manufacturing all of their injection molded plastic products. In 2000 Mid States Plastics was acquired and began manufacturing all of our thermoformed plastic products. In 2008 Encore established its western presence with a facility in Salt Lake City, UT and in 2010 the company opened a facility in Forsyth, GA. Company Slogan: One Team. One Direction.

• Clements Paint & Decorating is a retail paint

•

KOOPMAN LUMBER CO. INC. • • • • • • • • •

•

CLEMENT’S PAINT & DECORATING, INC. • • • • • • • •

store. We sell Benjamin Moore paints and paint related sundries to contractors, DIY, as well as commercial accounts.

Clements Paint opened in 1986. We took on Benjamin Moore paints in 1991. In 2008 we expanded by acquiring a second location Arrow Paint & Supply.

Founded: 1986 Location: Austin, TX Telephone: (512) 480-8466 Web site address: www.clementspaint.com Founder: Clement Ebbo Current President: Clement Ebbo ALLPRO Contacts: Clement Ebbo, Scott Lawson and Marco Davila 2 Stores

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Founded: 1939 Location: Whitinsville, MA Telephone: (508) 377-5152 Web site address: www.koopmanlumber.com Founder: Peter Koopman ALLPRO Contacts: Dirk Koopman and Darrell Baker 5 Stores # Full-Time Employees: 120 Koopman Lumber is a family owned and operated lumber, hardware, and paint dealer located in south central Massachusetts. We operate 3 full line stores, 1 paint store, and a distribution facility for delivery fulfillment of building materials. A power shop is in one of our stores, and equipment rental is offered in 2 stores. The Koopman family continues to manage the daily operations.

Peter Koopman began as a carpenter in the 1930’s.

Due to a lack of good materials suppliers in the area, he began to buy materials in bulk for his operations. Over time, he began to provide material supply services to other tradesmen. After establishing the material supply side of the business, his son Don firmly established the hardware side, and eventually grew the business to 3 retail locations. His son Dirk, daughter Denise and her husband Tony all joined with dad growing the material supply business and expanding the paint business with a new paint store acquisition.

Company Slogan: Serving the Blackstone Valley Since1939

ALLPRO’s Newest Team Member

In The Media Kudos to Sun Wallpaper & Paint, who was recently named one of the” Best of Hudson Valley for 2011,” in Hudson Valley magazine. Each year the Hudson Valley magazine compiles a compendium of the “crème de la crème” of Valley life and this year recognized Sun Wallpaper as the best place to find interior décor solutions, citing their wide selection of design books and services.

We'd like to officially introduce and welcome Matt Spire as the newest member of our accounting staff. Matt was born and raised in Ohio and came to Florida in 2005 to live closer to is family. He just recently graduated from DeVry University with a Bachelor of Science degree in Computer Information Systems. Matt has previously held positions with Bank of America, Countrywide Financial and Coca-Cola.

The Ben Moore “Color Care Across America” campaign, which provides a free color makeover to shelters that provide housing for those in need, continues its success. Congratulations to Economy Paint & Supply and Johnston Paint Center who recently contributed to the campaign by donating paint respectively to the Abby House, which is a homeless shelter women and Welcome Home Inc., a shelter dedicated to serving the homeless veterans.

Congratulations to Wooster Brush Company who was recently featured in the December DECO magazine in celebration of their 160th anniversary.

The article provides a brief history of the company and also highlights Wooster’s tradition of manufacturing high quality “Made in the USA” products. According to President William Fagert, “Wooster is totally committed to ‘Made in the U.S.A.’ - it is at the core of what Wooster is all about”. Wooster Brush has also played an integral role with ALLPRO. The company became a supplier partner in 1964 and has been an approved ALLPRO label supplier since the late 1960’s.

Matt has a 3-year old son named Zayne who occupies all of his spare time. Matt, his new wife Melanie and Zayne can be spotted most weekends at Busch Gardens, the mall, the beach or just watching the newest Cars movie at home.

About working at ALLPRO Matt says, "Every day is learning something new and everyone is wonderful to work with. I can see a long future for me at ALLPRO." Please join us in welcoming Matt to the ALLPRO team!

IMPORTANT DATES TO REMEMBER …

ALLPRO 2012 Spring Show & Sales Meeting Rosen Shingle Creek Orlando, FL, Mar 14 – 18, 2012

ALLPRO 2013 Spring Show & Sales Meeting JW Marriott Starr Pass Resort & Spa Tucson, AZ, Mar 20 – 24, 2013

ALLPRO 2014 Spring Show & Sales Meeting JW Marriott Desert Ridge Phoenix, AZ, Mar 19 – 24, 2014

ALLPRO 2015 Spring Show & Sales Meeting Rosen Shingle Creek Orlando, FL, Mar 18 – 22, 2015

ALLPRO 2012 Fall Stockholder’s Meeting Westin Kierland Resort & Spa Scottsdale, AZ, Oct 25 – Oct 28, 2012

ALLPRO 2013 Fall Stockholder’s Meeting Westin Hilton Head Island Resort & Spa Hilton Head Island, SC, Oct 24 – 27, 2013

ALLPRO 2014 Fall Stockholder’s Meeting Westin Diplomat Resort & Spa Miami, FL, Oct 16 – 19, 2014

ALLPRO 2016 Spring Show & Sales Meeting J.W. Marriott Desert Springs Palm Desert, CA, Mar 13 – 20, 2016

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so it’s not difficult to see which one is low on certain items and which may have a surplus they can pull from.

(continued from page 3)

drop off sharply. It got to the point where it began creating financial problems for the paint store. In response Tom made the decision to try to become less dependent on the Mexican market by opening a second location further into the suburbs of Laredo. The addition would ideally provide a more convenient location for, and base from which to build, the company’s non-Mexican contractor customer base.

The new location was about 12,000 sq. ft., which also allowed Laredo Paint to expand its product offering in an effort to appeal more to the retail segment.

Originally, Laredo Paint sold the Elliott Paint brand but with the move brought in the Benjamin Moore line.

They also added a larger selection of spray equipment and wallcovering, which at one point totaled over 700 different patterns. The new store quickly proved to be a success and Tom’s strategy paid off, in that the expansion helped broaden the company’s customer base and ultimately minimize its dependency on Mexican currency.

Laredo Paint’s relationship with ALLPRO began in 2001.

As it happened, Tom Sr. knew of ALLPRO but was somewhat reluctant to join. When he heard that Vic Meier, whom he knew from Vic’s days with Premier Paint, had joined the ALLPRO team as the Vice President of Business Development he called Vic to get the inside scoop. As Tom puts it, “After speaking with Vic I felt it was a good move. The buying opportunities were great, the billing was easy with a lot less checks to write, and the benefit of a full time staff was a huge plus for me.”

However, Tom was not one to sit on the proverbial sideline. In 2008 Tom approached Vic once again, this time to inquire about serving on the group’s Sundry Purchasing Committee. Soon thereafter Tom found himself actively collaborating with other committee members, negotiating with suppliers, and generally involved in a wide range of issues that confront the group on an almost daily basis. Tom only recently rotated off the committee but continues to contribute by working with vendors on show special assignments.

About his time on the committee Tom says, “The committee is a lot of work but it gave me a chance to see both sides of the table – vendor and dealer. I must say I’ve really learned a lot about how the industry really works and that knowledge has made me a better business person.”

As the company expanded outwardly it also began undergoing an internal expansion as Tom’s two sons Tom Jr. and John and daughter Dianne began to make their presence known in the stores. Like their father, each of the kids grew up in and around the stores doing jobs appropriate for their age. As time passed each found their niche in the family business. John began working full time for the company right out of college and today serves as the general manager for the business. After completing an MBA and working in the municipal bond market in New York, Tom Jr. returned to the family business to help update the company’s IBM iSeries software infrastructure. Dianne, after completing her studies in design school, held various positions before her current role of supervising inventory management and control – if the paint store sells it, Dianne at some point had contact with it.

By far the greatest and most endearing addition to the company was Tom Sr’s wife, Carmela. Following Ruby’s passing, Carmela was “volunteered” by her mother, Esperanza Flores, to fill the void. Since 1972 Carmela has been a fixture to the company’s daily operations and today serves as the Chief Accounting Officer for the company.

Since the late 90’s the company has gradually expanded, today Tom now owns and operates two locations in Laredo and three locations in neighboring San Antonio under the name Alamo Paint & Decorating.

As it applies to managing multiple stores in separate towns Tom and John share those duties - Tom lives in Laredo and John in San Antonio and each week they swap locations for a few days.

Tom Sr. with son John Addison

Tom is presently going on 50 years with Laredo Paint and Decorating and today the company is the largest independent paint dealer in South Texas. After such a long and distinguished career, most would be looking forward to a well deserved retirement but not Tom. As he puts it, “I just don’t think retirement is for me. I don’t think I’d know what to do with myself.” When asked what that means for the future of Laredo Paint Tom says, “I would like to expand the business again but not in today’s business climate. While we are seeing increases in sales, it’s just not quite where it should be to consider any opportunities that may be out there.”

While it may seem like a lot of shifting around the procedure works out well because it helps both Tom and John keep in touch with each location and, as product is needed at the various locations, it allows them to act as a fill in delivery service so-to-speak.

They utilize one centralized network for all their stores,

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NEWS AND VIEWS ALLPRIME Makes Master Painter’s Institute Approved Product List The December 1st update to the MPI list of approved products included a number of items near and dear to ALLPRO members – the ALLPRO exclusive line of ALLPRIME primers and paint. MPI evaluates interior and exterior coatings products for universal performance and quality assurance. The approved product list, which is used by some federal agencies and other entities to specific products is published twice a year in booklet form and is also updated regularly on the MPI website (www.specificypaint.com/APL/Ad_News/paintinfonewsletter/mpi-apl-new.asp).

The addition of ALLPRIME to the MPI approved products list adds another layer of credibility to this program and offers members a valuable selling tool.

An End to Shrinking Housing Prices?

Those of us looking for an end to the ever shrinking housing prices don’t have much longer to wait. According to the Nov 23rd Kiplinger Letter, housing prices are expected to stop sinking by spring. What’s more, by the end of 2012 it is anticipated we will see a 3% - 4% average gain in the price of housing. Kiplinger asserts this shift will be due to the lower priceto-income ratio, which basically indicates housing prices have become more affordable to more people. Low interest rates and demand from abroad will also help. Canadians are buying in Phoenix, Brazilians in Miami, and the Chinese in Las Vegas, California, and New York City. U.S. investors are also entering the market – looking specifically for opportunities in the rental market.

But Wait, There’s More…

Kiplinger also reports that housing construction is set to climb next year as well…by about 15%. This hike in housing starts will come mostly from apartment buildings in the areas of Texas, Louisiana, Oklahoma and the Dakotas. Kiplinger reports this is primarily due to a very robust energy industry in those areas and the fact that earlier over building was avoided.

Short term projections still come in at under a million starts next year.

However, long term outlook is set to pick up with pent up demand from recent college grads anxious to get out of mom & dad’s home and 30 somethings looking to start families, which have been delayed by the recession and tough job market. According to Kiplinger, by 2014 look for housing starts to be in the neighborhood of 1.5 million and sales of new and existing home of about 6 million.

Editor/Production Scott Morath

Proofers Ann Spire, Julia Thomas, Angel Nemath, Chris Gingell, Pat Brulfer Elaine Henry Matt Spire

Contributing Writers Scott Morath, Angel Nemath, Joe Poliseo - ALLPRO, Al Kinnear - Big Eye Productions Steve Ryan - Mad Dog Paint Products, Inc.

ALLPRO® President Travis Detter

Exec. Vice President Joe Poliseo

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