Industry Dashboard for July 29, 2013
June’s existing-home sales went down by a mini-margin of 1.2% to a seasonally adjusted annual rate of 5.08 million, though still well ahead of last year. Meanwhile, gas was down 2 cents from last week.
Tom Oreck in deal to buy back Oreck stores
TTI Floor Care and Tom Oreck announced that they are close to an agreement for the purchase of an unspecified number of Oreck retail stores by Tom Oreck, the son of Oreck vacuum cleaner brand founder David Oreck.
TTI assumed ownership of the stores as part of the post-bankruptcy asset purchase agreement for the Oreck Corporation, which has been finalized.
In addition, Tom Oreck and TTI Floor Care are close to an agreement to give him a continuing role as the brand’s public spokesman and as a senior adviser to the Oreck team.
“We are excited at the potential for a partnership with Tom Oreck. He brings a great deal of successful experience with both the Oreck brand and customer service driven retail operations,” said Simon Lawson, president of TTI Floor Care. “We believe that combining this with TTI’s strength in innovation and product development will offer an exciting future for the Oreck brand, its retail partners, employees and consumers.”
“The strength of the Oreck brand has always come from our people. I am incredibly proud of the people who make their living operating the Oreck stores,” Oreck said. “The legacy of the Oreck stores is their unyielding commitment to the Oreck customer. The power of the Oreck Experience combined with the resources of TTI will serve to enhance and sustain the Oreck brand and the fine people who build, sell and service Oreck for generations to come.”
TTI will maintain production at the Cookeville, Tenn., facility and "is reviewing the opportunity with regard to the remaining Oreck company-owned stores," the company said.
Market Recap: RISI Crow’s Construction Materials Cost Index
A price index of lumber and panels used in actual construction for July 26, 2013
*Western – regional species perimeter foundation; Southern – regional species slab construction.
Crow’s Market Recap — A condensed recap of the market conditions for the major North American softwood lumber and panel products as reported in Crow’s Weekly Market Report.
Lumber: The SPF market was not as “peppy” as in previous weeks, but limited availability left prices firm to higher. A combination of recent sales to China, volumes allotted for overseas shipments in August and September and summer shutdowns at mills in eastern Canada all contributed to fewer mill offerings. Good demand levels in the Southern Pine lumber market, despite significant caution among buyers, continued to absorb mill production, keeping upward pressure on prices. Mill sales in the Coastal species lumber market remained strong, leading prices to higher levels. Buyers continued to replenish inventories, experiencing good demand. Most Inland mills report their inability to fill numerous customer requests. Mill order files are solid, extending out two to three weeks on Std&Btr/#2&Btr dimension. Radiata Pine sellers report that they are also getting keen demand for Shop lumber, but many of them cannot secure much stock to sell. Ponderosa Pine demand has converged to produce pressure on both 5/4 and 6/4 Shop at the same time, with 6/4 especially tight. Demand for Ponderosa Pine 4/4 boards is good; supplies have become more limited. Eastern White Pine producers report that demand is good for highly mixed truckloads of material. Mills have low inventories and strong order files, which puts them in an enviable position with regard to prices. Idaho White Pine producers are pushing for stronger prices for their new production Several Western Red Cedar producers reported improved sales and better inquiry levels, some suggesting the market was late arriving this year. Sales to customers in the Midwest improved while demand out of the Pacific Northwest was steady.
Panels: OSB has become a muddled picture, with distributors and wholesalers attempting to catch up with mill pricing and failing to do so. Most regions quieted considerably from their pace of a week ago. Although not as active as in previous weeks, enough sales took place in the eyes of Southern Pine plywood producers to raise rated sheathing prices $10-15. While some mills reported selling a week’s worth of production, order files generally remained at the midpoint of August or a week beyond. Traders had varying opinions on when and how much market activity in Western Fir plywood improved, but by the end of the week, demand was certainly better and prices were firmer and higher. Activity picked up strongly in Canadian softwood plywood again, sending mill prices upward in steady increments. Those who were able to purchase plywood at discounts early in the week were forced to buy back in, if they did so, at levels 1% to 4% above the previous mark. Particleboard and MDF orders remained down from June, but mills continued to see some slight improvements as the market moves closer to August.
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