Southern Pine Integral to Destin Boardwalk Project

The Destin Harbor Boardwalk Project

Recently Published in PileDriver Magazine

by Keith Harris

Well over 15 years in the making, the Destin Harbor dream of a unified harbor boardwalk finally came true. Phase one of the project, was completed at the end of May and opens access to over a half mile of the northern edge of the Destin Harbor to public access.

The boardwalk is part of a multi-year, $90 million capital improvement program for the 400-acre Destin Harbor District that includes a public park and plaza, roadway improvements, and land acquisition as part of the initial $15-million phase. Known as the “World’s Luckiest Fishing Village,” Destin offers unparalleled recreational opportunities and easy access to the aqua waters of the Gulf of Mexico. Its beautiful white sand beaches, world-class fishing, and family-friendly atmosphere draw approximately 4.5 million visitors per year.

Using more than 200,000-board feet of Southern Pine and 1,080 driven wood piles, the 6 month long project is certainly impressive. Wider walkways, better lighting and the beauty of new natural wood, highlight the improvements. “All of these improvements provide for a user-friendly, relaxed atmosphere which encourages and promotes use and enjoyment by the public” Public Services Director Steve Schmidt said.

Speegle Construction Inc, the general contractor and Decks and Such Marine, was responsible for the project and driving the southern pine piling treated with CCA preservative. The 8” tip piles ranged from 20 to 40 feet in length. Early plans to reuse piling had to be changed and all new piling was driven. Special precautions had to be taken in areas where the boardwalk was in very close proximity to businesses. In these cases, instead of vibrating the piling in, which was the original plan, “they took a proposal to the CRA Board that would instead, use an auger type of system to install the piling” said David Campbell, the city’s CRA project manager.

City Planners also chose to top the substructure with real wood decking. Over 85,000 board feet of 2×6 decking was supplied by Cox Industries Inc. “While there are other options available, such as plastic-based alternatives, real wood gives builders the ‘beauty and flexibility’ they are looking for, not to mention the cost savings, as real wood can be 30 to 50 percent cheaper than its competitors”, said Haigler Bozardt of Cox . The DuraPine decking was treated with an innovative wood stabilizing solution which is free of heavy metals.  Viance Chemical produces the Ecolife preservative, a wood stabilizer system that offers the natural beauty of real wood combined with advances in dimensional stability, weathering protection, fastener performance, and environmental attributes.

“As a renewable resource, by choosing Southern Pine piles and decking, as a building material, the city of Destin definitely put their hands on a “green” product. Family-owned companies farm the Southern Pine used by Cox Industries on plantations” , said Keith Harris Cox Industries, VP of Marketing.“About 1 billion Southern Pine seedlings are planted annually,” Harris said of the trees renewability. “Typically re-planting exceeds harvest by more than 30 percent each year.” Looking at the project itself, Harris said “The harbor area is a beautiful and inviting place so it’s an honor for our team to be chosen to supply the natural wood that is being used to add to the warmth of Destin”.

Given the focus on maintaining nature and protecting the environment interwoven throughout the tapestry of Destin, it’s no surprise that real wood was chosen to complete the boardwalk project. The city’s focus on and awareness of natural-made products and their cumulative effect on the environment dovetailed perfectly with natural wood.

The project, according to Harris, would not have happened or even been possible without the great working relationship between Cox, Hodges Brothers Lumber, and the city of Destin, as well as with contractor Speegle Construction, who subcontracts to Decks and Such Marine.

The project ties together much collaboration including seven property owners and nine different properties. “We are thrilled to see this project come to fruition,” said Community Redevelopment Agency Board Chair Sandy Trammell. “This boardwalk gives us the continuity and marketability that we have always needed along our harbor, and our businesses, residents and tourists will be able to enjoy it for years to come.”

For more information visit coxwood.com

Voting on Time

by Mikee Johnson, Cox Industries, CEO

Welcome to 2012!  Most likely, you have already been besieged with articles regarding New Years’ Resolutions.  While I have quite a list myself and do believe they are a worthwhile endeavor, I would like to focus on one of Cox’s New Years’ Resolutions.  We do not call them “resolutions”; we call them strategic tactics.  These tactics are, of course, derived from our core strategies and driven by key metrics.  Again, while our core strategies have many tactics, I would like to focus this article (and maybe future articles) on the topic of vendor relationships.

The idea of reviewing how Cox handles vendor relationships was sparked recently, while I was reading an article in a manufacturing magazine when a particular quote resonated with me, “You vote for a vendor and their practices when you purchase their goods or services; at the same time, you vote against another vendor.”  This quotation really stirred my conscience as I began to ask myself, “How much do I really know about the businesses where my own family spends our hard earned money?”  Then, I thought the same about Cox.  While I believe Cox has always been mindful of the people we do business with, my real conclusion was comforting in that I realized each of us can shape our communities and our industry by making thoughtful purchasing decisions.  I am sure your mind is already swirling with the many ways you can positively change the world around you with your own purchasing decisions.

Thematically, allow me to draw a relevant comparison, with the upcoming Republican Primaries and ultimately the Presidential Election in 2012, by asking: have you been considering how you will vote?  Many readers are probably entirely too frustrated with the behavior of our representatives in Washington, DC; and in light of your frustration, one may choose not to vote at all!  In fact, recent statistics from the United States Census Bureau, 41.8% of American voted in the 2010 Presidential election.  Interestingly enough, only about 50% of the United States is even registered to vote.  Below are several other interesting statistics from the 2010 Presidential Election:

• The most common reason people did not vote was that they were too busy (27 percent). Another 16 percent felt that their vote would not make a difference.
• Homeowners were more likely to register and vote than renters; 74 percent of homeowners were registered to vote and 68 percent actually voted; 61 percent of renters were registered and 52 percent voted.
• People with at least some college education made up 68 percent of voters. Individuals without a high school diploma comprised 6 percent of voters.

• People living in families who earned $100,000 or more were more than twice as likely to vote as those who lived with families earning less than $20,000 (61 percent and 30 percent, respectively).

I find these voting statistics disappointingly amazing.  Disappointing because we should all recognize the price paid for the right to vote.  Amazing because certainly more than 50% of Americans know the struggle to vote and still do not vote.  However, if it is of any comfort, the fact is we all cast votes every day.  We cast our votes when we spend our dollars or the dollars of our companies.  Now substitute the concept of voting for a candidate with selecting a vendor.  There are countless variables involved with selecting a vendor:  products, services, price, quality and many more.  Just like with political candidates, one might ask what is under the proverbial hood.  What is my vendor doing behind the scenes?

Within our industry, we are beset by a host of organizations with seemingly pertinent purposes and relatively inexpensive dues structures.  These organizations are best known in our industry by a host of acronyms:  TWC, SPTA, AWPA, SBMA, SFPA, SLMA and many more.  (Explanations below)  Some of these organizations are designed to promote our products, some are designed to protect our products and others are designed to insure the proper use of our products.  Whatever the case may be, their existence is critical if we are to be a vibrant lasting industry in the future. 

As for the associations that promote our products and services (SBMA, SFPA, SLMA), while these agencies are not an absolute must; as a fragmented industry, we regularly face more unified competing products that are continuously creating marketing campaigns to either out-promote or denigrate our products.  I am all for products and campaigns that promote their own features; I am even comfortable when they fairly compare their products.  Unfortunately, many in the business world choose not to participate in this fashion.  As for the organizations that protect our products, this is often little more than an extension of the aforementioned.  Legislatively, we must hold government bureaucracy in check.  We are often witness to unfounded statistics and measurements that can cause havoc in our industry.  We must also be cognizant of specific lobbying efforts that could unfairly target our products. Lastly, we must have up to date and accurate standards by which consumers can effectively utilize our products. 

All of these industry mechanisms cannot exist without two simple investments:  time and money.  The former is much more important than the latter.   The simplest answer is to write a check and let someone else do the real work. Time is so precious.  If you are a believer in the products that come from the treated wood industry, do you know who puts in the time in their organizations?  Who do you see investing in your industry’s organization?  Money is important, but time is really what it takes.

I will conclude by simply sharing with you Cox’s industry involvement.  If you would like to share where and how you are involved in our industry, we would like to hear your thoughts and also which organizations you think are valuable.

• Treated Wood Council:  Mikee Johnson (Cox CEO) – Executive Committee; Jane House (Cox EH&S) and Brian Hayson (Cox VP International  Sales) – Governmental Affairs  www.treated-wood.org
• American Wood Protection Association:  Mikee Johnson – Executive Committee; Greg Campbell (Cox COO) – Quality Control Committee Chair; Jim Healey (Cox VP) – Poles and Piling Committee Vice-Chair  www.awpa.com; Brian Hayson – Member
• Southern Pressure Treaters Association:  Mikee Johnson – Former 2-term President; Jim Healey – Board Member; Greg Campbell – Board Member  www.spta.org
• Southern Building Materials Association:  Cox Associate Member  www.southernbuilder.org
• Southern Forest Products Association:  Brian Hayson – Chair International Committee and past Chair of Treated Committee   www.sfpa.org
• Southeastern Lumber Manufacturing Association:  Cox Associate Member  www.slma.org
• American Lumber Standards Committee:  Brian Hayson – Treated Committee www.alsc.org
• International Research Group:  Matt Yaun (Cox Sales & Marketing VP) – Attendee; Mikee Johnson – Attendee  www.irg-wp.org
• Utility Supply Management Alliance – Don Surrency (Cox Industrial Sales) Past Board Member www.usma.com
• Pile Driving Contractors Association – Andrea Edwards (Cox Industrial Sales) – Treasurer www.piledrivers.org    
• North American Wood Pole Council – Jim Healey (Cox Industrial VP) – President  www.woodpoles.org
• American National Standards Institute 0.5 – Jim Healey – Voting Member; Byron Altman (Cox Purchasing) – Alternate  www.ansi.org
• Forest Products Society – Jim Healey – Executive Committee www.forestprod.org
• WoodWorks.Org – Keith Harris (Cox Marketing) – Advisory Panel  www.woodworks.org
• SC Forestry Commission – Keith Harris – Marketing Task Force  www.state.sc.us/forest

While this is only a partial list, it is a clear commitment of time and effort on behalf of our industry.  If you would like to share where and how you are involved in our industry, we would like to hear from you.  We would like to know which associations you believe are worthwhile to channel your energies.

Unified Voice Needed for Port

BY DICK WILKERSON

Thursday, December 15, 2011

There has been much debate in recent weeks about the South Carolina Department of Health and Environmental Control’s decision to issue a permit to the Army Corps of Engineers to dredge the Savannah River, thus deepening the Port of Savannah. Many wonder how a state agency could make such a decision, and in its legitimate oversight role, the General Assembly has asked for more information.

That process, as well as judicial review of the DHEC decision, will run its natural course. Our priority, however, is harbor deepening at the Port of Charleston, and for us, nothing is more important.

Each of us is a major user, or has customers that are users, of the Port of Charleston, as well as other ports. We believe it is critical South Carolina focus on two key issues: Continuing to move forward on the navy base expansion and deepening our Charleston harbor to 50-plus feet.

If we accomplish these objectives, Charleston will be the premier port on the East Coast, and business in South Carolina, as well as in Georgia, North Carolina, Kentucky and Tennessee, will flourish. Gov. Nikki Haley and state officials recognize this point.

It is time to remove politics from the overall decision-making process surrounding the Port of Charleston. Instead, we must focus on the regional business decisions that are in the best interest of our state. Many of our companies ship goods internationally through the Port of Charleston, so its success is essential to our operations.

In this case, if competition drives costs, ports can better compete for market share. Competition between ports is a good thing and results in more efficient commerce.

With the widening of the Panama Canal expected to be completed by 2014, the race is on to better receive the post-Panamax ships that will dock somewhere on the East Coast. The Port of Charleston, with its deep water passable channels, already has the clear advantage. It is important to continue plans for deepening the Port of Charleston to maintain that advantage. With the end of congressional earmarks for infrastructure projects, a new way is necessary to secure funding for dredging.

Fortunately, South Carolina’s congressional leaders are working on a regional funding model based on merit. A federal merit-based system is the best way to make funding decisions. South Carolina can succeed based on merits, not by blocking others’ efforts. Both Gov. Haley and Sen. Lindsey Graham have consistently supported deepening the Port of Charleston channel. This relatively new administration in South Carolina has aggressively pursued job-creating economic development and has realized early successes, some of them from our companies. Future successes will depend upon the competitiveness of the Port of Charleston, and as users of those facilities, we believe our state’s leadership is taking the right steps to secure the funding necessary to deepen the channel, just one of the many items needed to ensure the port’s place as a destination of choice for our imports and exports. As we move forward, let’s not pre-empt the success of other ports that South Carolina businesses use. Concentrate our energy and limited resources on building and improving our port. In doing so, we hope our public policy makers will present a unified voice to federal funding authorities, to existing South Carolina industry and to future users of our ports.

In the end, if South Carolina gets the deepening of the Port of Charleston right, we will be a clear shipping leader on the East Coast, and circumstances in Savannah will be a secondary concern.

Dick Wilkerson is chairman emeritus of Michelin North America and past chairman of the S.C. Chamber of Commerce. This column was also signed by Mike Brenan, president of BB&T, South Carolina, and chairman-elect of the S. C. Chamber of Commerce; Derick Close, president of Springs Creative and past chairman of S.C. Manufacturers Alliance; Harris DeLoach, chairman and CEO of Sonoco, and past chairman of the S. C. Chamber of Commerce; Barry Falin, vice president of Thompson Construction Group, and chairman of the S.C. Manufacturers Alliance; Mike Johnson, president of Cox Wood Products, and second vice chairman of the S.C. Manufacturers Alliance; Jim Reynolds, CEO of Total Comfort Solutions and chairman of the S.C. Chamber of Commerce; Pete Selleck, chairman and president of Michelin North America and board member of the S.C. Chamber of Commerce.

New Design Values for Southern Pine Remain Under Review

The American Lumber Standard Committee (ALSC) Board of Review deferred decision on approving a recommendation by the Southern Pine Inspection Bureau (SPIB) that would modify design values for visually graded dimension lumber. As announced in an October 19 e-mail:

“The Board has determined that (in addition to the October 20 hearing) it will hold a second hearing approximately 60 days later to afford all interested parties an opportunity to comment in person on the technical aspects of the SPIB submission.”

The Southern Pine Inspection Bureau (SPIB) had submitted new design values for visually graded Southern Pine dimension lumber, for approval by the American Lumber Standard Committee (ALSC) Board of Review at its October 20 meeting.  Some 60 industry representatives attended to hear presentations from affected groups.  Attendees represented all major stakeholder groups including lumber producers, component manufacturers, truss plate and software suppliers, builders, contractors, engineers, building officials, building material dealers, universities and government agencies. The ALSC Board of Review heard testimony from 11 speakers:

– Kirk Grundahl, representing the Structural Building Components Association (SBCA) and Qualtim.

– Steve Shroeder, representing SBCA and ProBuild

– Joe Hikel, representing SBCA and Shelter Systems

– Mike Cassidy, Truss Plate Institute

– Mark Rey, Michigan State University, representing Travis Lumber

– Gary Raven, Builders FirstSource

– Frank Moore, National Lumber and Building Material Dealers Association

– Ed Sutton, National Association of Home Builders

– Rubin Smulsky, Mississippi State University

– Zachary Lowe, CLW Inc.

– Clayton Traylor, Leading Builders of America  

In general, the speakers commented on the process, the available data, and the timing of publishing new design values on notice, and suggested a suitable transition plan would help.    

The next scheduled ALSC Board of Review hearing will be January 5, 2012 in Washington, DC.

“This 60-day comment period will afford all parties time to consider all available data, all technical issues related to the science behind these proposed new values and help the ALSC Board of Review to render some equitable decision in the near future,” stated Adrian Blocker, president of the Southern Forest Products Association (SFPA), the marketing organization for Southern Pine lumber. 

In announcing the 60-day comment period, ALSC requested that all interested parties submit their remarks in writing or in person at the January 5, 2012 meeting.  “Parties should be mindful that the proposed changes are significant and should take steps they deem appropriate in the interim,” the announcement by ALSC President Tom Searles stated.  Any interested party can request a copy of SPIB’s submittal from Tom Searles.  Requests and comments may be directed to Mr. Searles, by e-mail to alsc@alsc.org, FAXed to 301/540-8004, or mailed to P.O. Box 210, Germantown, MD 20875.

SPIB is the first rules-writing agency to submit new values. Rules-writing agencies responsible for other species are in different stages for evaluating design values. The new values will ensure that Southern Pine lumber will continue to be a reliable material in the construction of residential and commercial buildings. Upon receiving final approval from ALSC’s Board of Review, SPIB will publish new design values for visually graded Southern Pine dimension lumber.

The last major change for visually graded dimension lumber occurred in 1991 when design values for Southern Pine and other North American species were published based on In-Grade testing of full-size samples of commercially produced lumber. Since 1994, SPIB has conducted an annual resource monitoring program developed in collaboration with the U.S. Forest Products Laboratory (FPL). Although the level established to trigger additional testing was never reached, overall trends in the annual test data suggested a possible shift in the resource mix. These trends, along with anecdotal external information, prompted SPIB to conduct a year-long program of testing and data review.

For additional background information plus answers to questions about the proposed new design values for visually graded Southern Pine dimension lumber, visit www.southernpine.com.

Cox Industries Receives the 2011 Small S.C. Manufacturer of the Year Award

The South Carolina Chamber of Commerce announced that Cox Industries, Inc. of Orangeburg, was named 2011 Small S.C. Manufacturer of the Year. Winners and nominees were honored before an audience of fellow manufacturers and business leaders at the Manufacturer of the Year Awards Luncheon on September 13 at the Embassy Suites in Columbia.

“We are humbled by the recognition, but this award is not about the way we manufacturer products, but about the culture our employees have established as they helped build our business over the last 5 decades. Without our great people, none of this would be possible.” Michael Johnson, CEO Cox Industries.

Cox Industries Nominated for SC Manufacturer of the Year

S.C. Chamber of Commerce names Manufacturer of the Year nominees Staff Report Published July 20, 2011 The S.C. Chamber of Commerce announced the nominees for its 2011 Manufacturer of the year Awards. All nominees and winners will be recognized before an audience of fellow manufacturers and business leaders at the Manufacturer of the Year Awards Luncheon on Sept. 13 at the Embassy Suites in Columbia.

The nominees are:

■AFL – Spartanburg

■Ahlstrom Nonwovens LLC – Bethune

■A.O. Smith Water Products Co. – McBee

■Cox Industries Inc. – Orangeburg

■Domtar Corp. – Fort Mill

■ESAB Group Inc. – Florence

■Honda of South Carolina Manufacturing Inc. – Timmonsville

■Meritor – Manning

■PPG Industries Fiber Glass Products Inc. – Chester

■PurePower Technologies LLC – Columbia

■Sensor Electronic Technology Inc. – Columbia

■UEC Electronics LLC – Hanahan

 The Manufacturer of the Year program recognizes the accomplishments and contributions of S.C. manufacturers and will culminate with the announcement of four S.C. Manufacturer of the Year awards. “South Carolina’s business community congratulates the Manufacturer of the Year nominees. The South Carolina Chamber of Commerce is proud to showcase outstanding manufacturing companies in the state that are providing great jobs for South Carolinians and giving back to their communities,” said Otis Rawl, president and CEO of the state chamber.

Cox Industries and iLevel Collaborate to Offer Treated Wood Products

iLevel now distributing Cox fire-retardant and preservative-treated building materials in Eastern U.S.; Companies teaming up on continuing education for building professionals

 

Orangeburg, S.C., July 11, 2011 – Cox Industries and iLevel by Weyerhaeuser have joined efforts to expand distribution of Cox fire-retardant and preservative-treated lumber, plywood and columns in the Mid-Atlantic area under the Cox D-Blaze® and Ecolife™  brands. When used properly, Cox D-Blaze® fire-retardant treated lumber and plywood can help control the spread of flames and smoke and Ecolife™ by Cox  can help protect wood against fungal decay, termite damage and weathering.  Specific Cox products available through iLevel vary by market, distributed by the Richmond, Charlotte and Jacksonville distribution centers.  Cox Industries is a leading manufacturer of treated wood products, based in South Carolina, and iLevel is one of the nation’s largest building material distributors with 30 facilities across the country. www.ilevel.com, www.coxwood.com

In addition to creating new distribution avenues for Cox’s wide breadth of outdoor building materials and fire-retardant lumber, the companies will work together on marketing and sales promotion activities, including leveraging the extensive continuing education sales program created by Cox in 2008.  This series of events delivers both product and building practice curriculum to designers, code officials and builders – resulting in more than 15,000 continuing education credits in 2010.

“This collaboration is about more than moving products to market, it’s about delivering quality products and services in innovative and socially responsible ways,” said R. Michael Johnson, CEO of Cox Industries.  “We could not have found a better company to team-up with than Weyerhaeuser, which was recently named the world’s most admired forest and paper products company by Fortune magazine.”

“Cox treated-wood products are a logical addition to the full-line of building materials iLevel distributes,” said Jim Warnke, East Division General Manager for iLevel Distribution.  “We’re focused on meeting our customers’ needs with a strong base of quality products and services, and Cox is one of the most recognized and trusted brands in treated materials.”

“With over 165 years of combined experience in the lumber products industry, both Cox and Weyerhaeuser are determined to deliver a level of customer support and product diversity unequaled in the industry,” added Johnson.  “By working together, we aim to provide increased value to LBM dealers throughout the eastern U.S. by enhancing rapid order fulfillment with an impressive array of products.”

Customers can contact the companies for more information at:

• Cox Industries:  Weyerhaeuser@coxwood.com
• iLevel by Weyerhaeuser:  iLevel@weyerhaeuser.com

About iLevel by Weyerhaeuser

iLevel by Weyerhaeuser provides the building industry’s most comprehensive and innovative collection of structural framing products, technical support and software for homes, multi-family and light construction.  It is a leader in developing ways to help builders and dealers improve quality, reduce costs and streamline construction.  iLevel’s Trus Joist^® brand celebrates 50 years of engineered wood product innovation, building on a legacy started in 1960.  All of the engineered wood products and specialty dimension lumber iLevel manufactures are SFI^® certified.  iLevel is the world’s largest engineered lumber products distributor.  iLevel continues to grow on 90 years of building products distribution experience, offering both iLevel and third-party products through an extensive network of company-owned and independent distribution facilities.  www.ilevel.com.

About Weyerhaeuser

Weyerhaeuser Company, one of the world’s largest forest products companies, began operations in 1900. We grow and harvest trees, build homes and make a range of forest products essential to everyday lives. We manage our timberland on a sustainable basis in compliance with internationally recognized forestry standards. At the end of 2010, we employed approximately 14,000 employees in 10 countries. We have customers worldwide and generated $6.6 billion in sales in 2010. Our stock trades on the New York Stock exchange under the symbol WY. Additional information about us is available at http://www.weyerhaeuser.com.

About Cox Industries

Since 1954, Cox Industries has been a leading manufacturer and distributor of treated outdoor wood products for the residential, commercial, industrial and utility markets. Headquartered in Orangeburg, SC, this family-owned and operated company produces a variety of quality wood products—from decks, fences and framing to utility poles, docks, retaining walls and other specialty items. Included on the SC list of the 100 largest privately held companies for 2010, Cox operates 12 manufacturing facilities and 5 distribution yards and employs more than 300 people in 10 states. Cox brand-name products are distributed via select building supply dealers, specialty distributors, and utility companies throughout the eastern United States and overseas. For more information, visit www.coxwood.com or find us on Facebook at http://www.facebook.com/coxwood.

Cox Continues to Invest in its People, Products & Customer Service

 Two roads diverged in a wood, and I,
I took the one less traveled by,
And that has made all the difference.

Mikee Johnson, CEO

So ends the famous poem by Robert Frost, “The Road Not Taken.” The difficulties presented to us in the last 4 years have certainly changed our outlook on how we live our lives and how we operate our businesses. At Cox, while our core values and driving principles remain the same as they have for over 50 years, we have evaluated our business model more closely than ever before. We have asked our vendors to evaluate their business models more closely than ever before. We have ultimately made efforts to adapt to the changing business models of our customers and likewise asked them to trust our exploration into new technologies that will prepare us all for the future of our businesses.

 In the latest edition of the “Communicator”, (our quarterly newsletter), there are articles on our new customer web portal and details of one of the components of our sustainability initiatives. In addition to these two initiatives, a little further down, you will read about some new preservative systems we have embraced as a part of improving your product offerings. However, these are merely small components of a much larger strategy and set of strategic initiatives we have embarked on during this economic recession. The story is not really in these details; the story is in the architecture behind these details. I would like to delve more into an overview of our key initiatives but first, I would like to talk about our people and secondly, about two new preservatives we believe will improve our residential product offerings.

 Cox continues to invest in the ongoing development of our team. We continue our routine training exercises including regular safety briefings, regulatory and licensing compliance and our cross-training initiatives. However, over the last three years, in an abundance of caution, our leadership decided to limit all compensation adjustments to only those employees taking on additional responsibilities. We have not extended salary increases or cost of living adjustments. Fortunately, until recently, the cost of living increase has been miniscule. On top of the sacrifice from our team at large, the executive leadership team volunteered to take reduced salaries as we worked our way through this uncertain economy. Long-term stability and managed risk are of paramount important to our ownership, not for themselves, but rather for the countless number of families that have committed so much of their life to Cox Industries. Our team has been resilient. They have thrived in this environment with an inspired commitment to excellence. This response has prompted the development of a new management development program with its inaugural class that began their program the last week of April. I would tell you more about this program, but I will let one of the participants do so in our next edition. For now, I will simply tell you who is in the program and you can ask them next time you see them. Congratulate Byron Altman (Director of Purchasing-Orangeburg); Pam Bedenbaugh (HR Manager-Orangeburg); Jeremy Byrd (Fleet Manager-Orangeburg); Blake Colston (Industrial Sales-Gulf Coast Region); Alec Mecionis (Inside Sales Manager-Orangeburg); Norwood Morrison (Outside Sales-Northeast Region); Kelly Phillips (Director of Specification Programs); and Mike Rouse (Plant Manager- Leland).

 As for the new preservatives mentioned earlier, first, we have altered our fire retardant offering to provide the product you have been asking for and that is a competitively priced product, with an outstanding smoke rating that addresses the code requirements of architects and code officials. D-Blaze produced by Viance meets that menu of objectives. Viance, is ultimately a subsidiary of Dow Chemicals; and therefore, we believe a long-term leader in the development of new preservatives for our industry. We are now also carrying a low to no-metal preservative with one of the most impressive wood stabilizers available on the market. Eco-Life, also produced and distributed by Viance, in our evaluations offers the most stable above ground product in the marketplace. While this added dimensional stability comes at a slight premium, we are firm believers that the appearance of your outdoor project is just as important, as its potential life. We have long sought a product that could provide the durability you have come to expect with the long-term aesthetic appearance you have longed to have. We are also excited that Eco-Life is approved by the American Wood Protection Association (AWPA). The chemical industry has more changes in store for us in the coming years, and we will continue to serve as your advocate by doing our research and determining what we believe to be the best product on the market to meet your requirements.

 In closing, the Cox Industries’ team did not “circle the wagons” during this recession by cutting services to our customers or putting off sensible long-term investments. Rather, we embraced the time to delve into our business model and determine how we could emerge a stronger company to better serve the needs of our customers, our community and our Nation. I look forward to hearing from you over the coming months as we roll out these new products and initiatives. Whether you are a customer, vendor or partner, your input and feedback are critical to our planning and our future. You can always contact us on the web at coxwood.com, or on facebook.

What Do You Mean the Menu Price is Wrong? (SC Unemployment Tax)

Michael Johnson, CEO

When you go into a restaurant, you read the menu to determine your entrée selection based on taste preference and price.   Let’s say you are interested in the “Blue Plate Special,” and the menu indicates the price is $5.00.  Being satisfied with the food and price, you order the “Blue Plate Special.”  When it arrives, you add salt, pepper and hot sauce that are sitting on the table to accent the flavor of the plate.  After eating your meal, you walk up to the register to pay your bill and the cashier informs you the price is $20.00.  You stand in astonishment with only $5.00 in your wallet for lunch and tell the cashier that is incorrect.  The cashier responds, “Well, recently the town council voted for our restaurant to improve the selection of condiments on the table and consequently, the prices have gone up.”  You respond, “Condiments?”  The cashier says. “Sure, the salt is from China, the pepper is from Mexico and the hot sauce is from Malaysia.  Weren’t they delicious?”  “Well, I guess so, but I have never had to pay for those condiments before,” you reply.  The cashier extends his hand with a measure of finality and states, “Either pay up the extra money to get our restaurant out of debt from purchasing these condiments or face the local authorities.”  As you fork over all of your cash, knowing this will preclude you from eating dinner or breakfast you say, “Maybe, I should take my restaurant business to another town where the town and restaurants take responsibility for their own decisions.”   

This is exactly what is happening with unemployment insurance in South Carolina right now.  Industry sat down at the table, ate their meal and is now being expected to pay much more than they were originally told because the laws governing unemployment insurance were poorly written to begin with.  How is that businesses are being charged with malfeasance when they did not write the laws, they only abided by them?

This scenario goes without saying, there are bad businesses that unnecessarily dumped the proverbial salt, pepper and hot sauce on the floor just to use up a resource that costs them nothing, but most do not behave in such a manner.  Cox Wood Preserving has paid into the unemployment fund for as long as we have been required and done so without question or complaint.  In fact, Cox Wood had largely avoided lay-offs up until the housing market plunged almost 80% from January of 2006 until February of 2011.  However, during these times, we did change our business model and were required to release some permanent employees for the long-term survival of the business.  In doing so, we were happy that these employees (all of which who received severance) were able to collect on the unemployment benefits they were entitled to as they sought gainful employment elsewhere.  Through this, Cox maintained a positive balance in their paid-in reserve fund.  That is correct, the balance in our government-held reserve fund exceed the benefits that were paid out during this difficult time.  Despite our responsible use of this social safety net over the past 57 years we have been in business, we, as one of many businesses with employees, were charged by the State to fully repay the entire debt owed to the Federal government in a period of time mandated by more legislation.  While Cox does not mind picking up this burden of the State, to be vilified by the careless stereotyping of some outspoken parties is very disheartening.  

Another point worth noting is those required to repay the $1,000,000,000,000.00 (Yes that is $1 Billion), are not the 4,500,000 citizens of South Carolina, rather it is the couple thousand individuals that are owners of these businesses.  Cox Wood Preserving employs about 125 team members that live and work in South Carolina.  We have 37 shareholders.  As we received the notice of our increase in early April, the first matter we had to cover was the fact that the legislation was retroactive to January first so we had a one-time fee of approximately $60,000.00; from an ongoing basis, our cost per employee increased from $86 per employee to over $600 per employee.  (If you are up on the legislation, we fall in category 14 out of 20.)  I remind you that we paid more into the system than was taken out over the past 7 years.   In fact, we have paid much more into the system, but the South Carolina Department of Employment and Workforce only has records going back 6 years.  Interestingly enough the legislation that exists now actually took thousands of small employers (less than 5 employees) off of the tax rolls and shifted the burden to the remaining businesses.  Again, this article is not a complaint about businesses taking South Carolina up on their shoulders and carrying them through this repayment of debt.  This is simply about the political demagoguery that is demonizing businesses for expecting to pay what was on the menu.  What if the South Carolina businesses decided to take their businesses elsewhere?  What if they decided China, Malaysia or Mexico were less expensive options?

I applaud those individuals serving in our State Legislature.  They make tremendous sacrifices to serve our State and they are faced with difficult decisions every day.  They recently had to decide how to handle the 1,500 potential jobs brought to our State by Amazon.  Many of their constituents would have appreciated the jobs; many felt it was necessary to make a statement about State incentives.  Each Legislator had to cast their vote and stand by their decision.  This will be a similar case except my hopes are that each can cast their vote to structure the best repayment plan without demonizing the very businesses that pay the taxes that keep our Great State solvent.

Finally, thanks to Governor Haley for her stand on not borrowing more money and getting our debt paid down and the legislators that recognize businesses’ willingness to work for a better South Carolina. 

Also, as a late note, the $100,000,000.00 that was recently introduced as a piece of Scenario 34, is not bad for South Carolina, nor is it a “bailout.”  This unconventional re-investment is needed to encourage South Carolina businesses to keep fighting for growth.

Mikee Johnson

CEO & President

Cox Industries

www.coxwood.com

Cox Industries Receives HUBZone Certification

We are proud to announce receipt of the U.S. Small Business Administration‘s (SBA) HUBZone (Historically Underutilized Business Zone) designation.

Established in 1997, the purpose of the HUBZone program is to provide federal contracting assistance for qualified small businesses located in historically underutilized business zones in an effort to increase employment opportunities, investment, and economic development in such areas. Qualified HUBZone small business concerns are also recognized by numerous non-governmental “supplier diversity” programs throughout the United States. The intent of these programs is to effectively expand business opportunities through outreach, purchasing exchanges and creating powerful partnerships with diverse suppliers

“We are very excited about the HUBZone designation. For three generations Cox has invested in the small communities and the employees have who have driven our success. This designation will differentiate us in the marketplace, expand our business and in turn, help us bring more jobs to our hometowns.”  Michael Johnson CEO Cox Industries.

For over two and half years, Cox has been navigating the bureaucratic hurdles associated with applying for the designation of a “HUBZone Small Business Enterprise”. HUBZones are “historically underutilized business zones”, which are designated by the U.S. Small Business Administration. These areas have, for instance, a lower average income and higher unemployment rate than the national average. The program is designed to promote business and employment in these areas. Cox has operations in several of these communities, so the designation fits nicely to push our core value of supporting our nation and local communities.

 Accomplishing this goal for Cox was a true team effort. Just to compile the thousands of pages of documentation required support from Human Resources, Accounting, Marketing, the Shareholders and the Senior Leadership team. Many employees helped with their personal residence information so we could prove Cox met the employment requirements of the program.  Often in order to respond in a timely manner,  team members were forced to drop their daily tasks and work long hours to gather the information required by the SBA.  We even lobbied our SC Congressional delegation almost monthly to keep the project moving.  The team deserves a huge THANK YOU and hearty CONGRATULATIONS!