Trade News Lion, up 23% from the Same Period a Year Ago
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Distributors Post Modest Sales in Q2 Message Con’t. from page 1 STAFDA distributors averaging $15 million in annualized sales posted a 2.6% generation of young people coming out sales increase over Q2 2014. Dodge Data & Analytics reported for the first of school looking at the road their lives half of 2015, total construction starts on an unadjusted basis were $336 bil- will take. It’s up to us to help guide and Trade News lion, up 23% from the same period a year ago. If the volatile electric utility and steer their career journeys. The best way August 2015 gas plant category is excluded, total construction starts to date would be up to do that is by setting a good example. In This Issue: w Phoenix Exhibitor List to Date w Quarterly Trend Report 11% from the same period a year ago. “For the first half of 2015, construc- tion expansion continues with a few nuances,” stated Robert Murray, chief Here are some daunting numbers: An A One-Two Punch for Small Businesses economist, Dodge Data & Analytics. “The lift to total construction starts ear- estimated 9 million of America’s 15 mil- Two recent decisions out of Washington In February, the Treasury Department lier this year in the electric power and gas plant category will subside as 2015 lion business owners were born in/be- D.C. will have a significant impact on busi- announced a delay in the enforcement progresses. Public works construction revealed strength in the first half of the fore 1964. Soon $11 trillion will be trans- President’s nesses. STAFDA belongs to the Small Busi- of this rule allowing legislators to begin year, but is expected to subside due to flat federal funding. The institutional ferred from one generation to the next. Message ness Legislative Council (SBLC) and the working on a bipartisan solution to fix this building segment has maintained an upward track from last year, and the In a recent survey on business transi- National Association of Manufacturers glitch. The Small Business Healthcare manufacturing plant construction category saw the start of more petrochemi- tion conducted by CliftonLarsonAllen, It’s already mid- (NAM) who lobby on behalf of members. Relief Act would allow small businesses cal plants.” Here’s what STAFDA distributors reported for Q2: they discovered 54% of Baby Boomer August and the businesses owners are “somewhat pre- to continue to use HRAs without penalty Region Q2 ‘15 Sales to Q2 A/R 6/30/15 to Avg. A/R Days STAFDA office is One: Healthcare Changes ‘14 6/30/14 pared” for leadership transition; 19% or fine. working hard at Rod Gowett June’s Supreme Court decision to uphold 1-Northeast +5.7% +4.6% 41 are “very prepared;” and 27% said they making sure all Acme Construction King v Burwell on the right of federal Two: Independent Contractor Status 2-Mid-Atlantic -2.8% -9.7% 34 are “somewhat” to not prepared at all! the pieces come Supply Milpitas, CA assistance guaranteed millions the right Under the new Department of Labor’s 3-Southeast +7.8% +8.3% 36 The report also showed 45% of lead- together for our ers are planning to turn over the reins to keep their healthcare, but less than Wage and Hour Division’s interpretation 4-South Central -8.5% +5.3% 42 Annual Convention & Trade Show to the next generation in one to five one week later, the IRS began enforcing for independent contractor qualification 5-Midwest +3.7% +1.8% 46 this November in Phoenix. The ex- years. That’s a fast transition time if your a $100/day fine per employee on small status, the Division noted “only carpen- 6-North Central +4.5% +8.5% 53 hibit hall is already 77% sold and company isn’t ready. A strong work- the fastest response and businesses offering traditional Health Re- ters, construction workers, electricians, 7-Rocky Mountain +1.0% -13.2% 40 marks force demands strong leadership. Em- fill rate STAFDA has ever received imbursement Accounts (HRAs). The new and other workers who operate as in- 8-Northwest +0.9% -4.1% 35 ployees can see the owners’ age and if for its Trade Show. So if you’re IRS policy took effect July 1. As an unin- dependent businesses, as opposed to 9-Pacific +7.9% +19.8% 41 they don’t see a transition plan in place, a STAFDA distributor – vendors tended consequence of the Affordable being economically dependent on their 10-Canada +6.0% +8.6% 38 they’ll work elsewhere. Experts recom- are counting on seeing you in a Care Act (ACA), HRAs were outlawed for employer, are independent contractors.” Overall Average +2.6% +3.0% 40 mend at least a 5-10 year window of few months! It’ll be a big show businesses with 49 or less employees who They concluded “most workers are em- pre-transition planning if you intend to with many new products and new didn’t fall under the employer mandate or ployees under the Fair Labor Standards Nonbuilding construction jumped 62% compared to the same period a year exit the business within the next decade. manufacturers exhibiting (see meet the law’s “Essential Health Benefit” Act’s (FLSA) broad definitions.” On July 15, ago. The electric power and gas plant category soared 351% due to LNG ex- Remember…employees quit leaders, pgs 2-3). It provides the best op- requirement. This eliminated the often the Division clarified the “suffer or permit” port terminals in Hackberry, LA, Corpus Christi and Freeport, TX, a liquefied not companies. portunity to see what to add to utilized healthcare tool for small busi- standard when classifying a worker as an petroleum gas export terminal also in Freeport, and a LNG receiving termi- your line card in 2016. nesses, including the self-employed. Only employee or independent contractor un- nal in Ingleside, TX. Gas-related projects led the way January-June with 71% Thank goodness I had great mentors “small businesses” with 50+ employees growth in power plants, thanks to several solar farms in California. Highway along the way, starting with Don New- der the FLSA. Here at Acme, we just finished our that met ACA rules could continue to of- and bridge construction advanced 30%. At the six-month mark, non-resi- comb who always led by example and mid-year management meetings fer HRAs. Employers who rely on independent con- dential building increased 4% compared to ‘14. Commercial building held taught me what building relationships is putting together our plans for the tractors should reevaluate the status of steady at its 2014 pace, but was aided by a 41% increase in hotel construction all about. He was a true leader and now balance of this year and 2016. By Historically, HRAs have been effective their workforce. The “economic realities” and office construction (+12%). The institutional building group is +6% and it’s up to us to be leaders for the next the end of this year, we will have tools for employers to help employees test courts apply in determining whether educational facilities are +5%, YTD. Residential building in dollar terms is generation of STAFDA business owners. added three new branches to our pay for crucial healthcare needs. Further- a worker is suffered or permitted to work up 17%. Multi-family registered a YTD increase of 29%. Single family hous- portfolio. It’s been a busy year so more, HRAs are fair and impartial: Em- ing is +13% YTD with the West up 21%, South Atlantic (+17%), South Central far! It seems like just yesterday I emphasizes each factor be guided by the ployers must offer the same amount to (+10%), Midwest (+6%), and Northeast (-6%). STAFDA distributors foresee Q3 was accepting a position with FLSA’s broad definition of employment. 2015 to be: each employee who has an HRA account. Punch Con’t. from page 1 Don Newcomb Tool and de- The “economic realities” test includes: 1). ciding the direction my work life But without the 50-employee threshold The extent to which the work performed Regional Forecast Q3 ‘15 to Q2 ‘15 Sales Q3 ‘15 to Q3 ‘14 profit/loss depending on his/her managerial was going to head, not knowing to be considered for the small business is an integral part of the employer’s busi- skills; 3). The extent of the investments of the 1-Northeast +1.0% +4.3% the twists and turns ahead for me exchange, many firms now don’t meet all ness; 2). The worker’s opportunity for employer and the worker; 4). Whether the 2-Mid-Atlantic +5.4% +4.6% and my family. If I could change the law’s requirements. Continued on page 4 work performed requires special skills and ini- 3-Southeast +6.8% +10.0% anything in my personal or work www.stafda. tiative; 5). The permanency of the relationship; Please be sure to visit the members-only section of STAFDA’s website, 1 4 4-South Central +5.5% +1.8% life, it would be to slow down and org, to get detailed information on the following members. and 6). The degree of control exercised or re- 5-Midwest +8.0% +7.2% smell the roses along the way. tained by the employer. One day, you’ll wake up, it’s 35 Distributors Threadline Products, Inc. – Charlotte, NC 6-North Central +9.8% +7.2% Bird’s Fastener & Tool Co. – Mandeville, LA years later, and you’re coming to Associates 7-Rocky Mountain -2.4% +2.5% Many employers may find their independent Central Purchasing LLC – Calabasas, CA the end of your career.