NEWS - March 2003

Titles:

President's Letter

“United We Stand, Divided We Fall.”
Ben Franklin  

Perhaps it is appropriate that Ben Franklin, who also played a rather shocking role in the history of electricity, spoke the above.  

Our Electric League has many roles. It educates us. It creates opportunities to gather together socially and spend time getting to know those with whom we make our livings. It provides a way for us to help the greater community through our Holiday Party donations, our scholarship fund and the work of the Safety Committee. It provides ways for each of us to improve our businesses with programs from Federated Insurance.  

One role that doesn't get discussed very often is one we'll call a defensive role. On one hand, we are fortunate that we rarely have to band together to protect ourselves from an outside threat. On the other, now is one of those times. The rest of this article will focus on that threat and what we feel our response to it should be personally and as an organization. 

At a recent national meeting of electrical contractors, several contractors reported that at least one large national general contractor was soliciting bids from several of the major distribution equipment manufacturers. The idea was to bypass the distributor and the electrical sub to supposedly save money. If you observed our industry for any length of time you would quickly see what a bad idea it is.  

First, it ignores the fact the distributors and electrical contractors add a tremendous value in the chain of commerce. Material is handled, submittals prepared, logistics arranged, warranties extended, credit extended to name a few. Neither the manufacturer nor the general contractor is equipped to perform these functions efficiently. 

Next, this invasion of our industry threatens its health. An outside observer might say, “If you as distributors and electrical contractors truly add the value, after a period of time, the system will revert back to you. If you don't add the value, you don't deserve to be in the chain of commerce.” We all know the value is there. We have an extremely hard-Working industry, constantly on the lookout for ways to improve efficiency. We don't need to lose business even for a short period of time to `prove' this point. The economy makes it difficult enough.  

So what should each of us do? Factory sales people and manufacturer's reps protect us, your customers. If you hear talk, stand up and be counted to support those that support you. Distributors, use your connections to discuss it with those at all levels of your suppliers. Don't stop at the local office. Speak to the regional and national policy-making people. Tell them what a bad idea this is. Get their commitment. Understand where their limitations are. (We all know, for example that ballast manufacturers sell direct to lighting manufacturers and that there are some gear and lighting jobs sold to the owner.) Make sure they live within those limitations. Electrical contractors talk to your distributors and the manufacturers. We have to use our clout to stand together. Any breakage in the chain hurts us all. Let's nip this one before it grows into something ugly and expensive.  

Joe Privitera, President
Tom Isenberg, Past President

  Missouri House Small Business Committee

For the first time in our state's history, a Missouri House Small Business Committee will convene to support and improve the welfare and success of our state's largest job creator and employer, small business.  

Sixteen state representatives will serve on the Committee and Reps. Craig Bland and Curt Dougherty from Jackson County are two of the chosen few.  

As a member of the House Small Business Committee, these representatives will consider and report upon bills and matters referred to the Committee that relate to the establishment, growth, development, expansion, retention and operations of small businesses in Missouri.  

The development of this committee is extremely important to the future of small business in this state.  

Please take a moment to contact Reps. Bland and Dougherty to congratulate them on their appointment. You will not only be informing your legislator that you appreciate the formation of the Small Business Committee, but that you will also be paying close attention to the work that it does. 

Source: National Federation of Small Business (NFIB), Feb. 19, 2003

Economic Development - Topic of April Luncheon

John Trevor, General Manager of Indian Springs Marketplace, is a strong supporter of economic development in Kansas City, Kansas. He has been with the mall for the past seven years, and in that time has worked to bring businesses and customers back to the area. His plan to fill vacancies is working - come to the luncheon and find out about his unique concept and what it can mean for you and your business.  

John has an extensive background in property management. He managed retail and office property for Block and Company for 12 years, is a licensed realtor and has been a member of National Association of Realtors and Metropolitan Kansas City Board of Realtors for 14 years.   

Mark your calendar for Friday, April 25 to attend the Electric League Luncheon at the Embassy Suites Hotel on the Plaza in Kansas City. A registration form is included with the March newsletter.  

  Get Ready for Golf

Dust off those clubs, shine those shoes, and get ready for the Spring Electric League Golf Outing! The thermometer may say 20° today with a fresh blanket of snow on the ground, but spring is just around the corner. Our first golf outing of the year is set for May 12 at Shirkey's Golf Club in Richmond, Mo. Members and guests who have played this course will agree that it is one of the premier courses in the Kansas City area.  

So, mark your calendar for May 12 and plan to spend the day with other Electric League members and guests out on the course. More details about this popular event are enclosed in the March newsletter.

  Watch Your Website

The FBI's cyber security arm is warning that the imminent threat of war with Iraq and escalating tensions with North Korea could lead to increased attacks against U.S. networks.  

The clearest example of these kinds of politically motivated attacks is the brief increase in activity between Chinese and American hackers during the spy plane crisis in 2001. Security experts say there were numerous incidents in which China-based hackers - or those sympathetic, defaced American-owned Web sites. 

Bottom line is to check your own web site often and keep your files ready to rebuild your site should your sites be attacked.

Terrorism - An Act of War?

You may be wondering if you have coverage for terrorist acts.  

Generally, the peril “acts of war” is excluded from insurance policies; however the insurance industry has not categorized terrorist acts as “war.” Because of the potential catastrophic nature of terrorist events on the insurance industry, national legislation has been proposed to offer alternative coverage for terrorism. However, until Congress acts on these issues, insurance companies must find their own solutions. As a temporary measure, most state insurance departments have approved optional exclusion endorsements for acts of terrorism. That means businesses may no longer be covered for terrorism.  

Federated continues to provide some coverage for damages resulting from terrorist acts for most clients.* (We will generally handle this peril as we do others, such as fire and theft, that are included in our property insurance packages.) Coverage will be underwritten and rated based on the extent of risk and reinsurance costs.  

Good risk management practices can help you control premium costs and protect your business from possible terrorist acts. First, assess your company's risk of being targeted by terrorists. Answering these questions may help:

 If you are unsure about any of your answers, Federated offers many resources to help you protect your business and employees.  

* Some larger property or umbrella policies may exclude coverage for a terrorist event that exceeds a certain amount. These are handled on an individual basis.

National Legislative News

President's Plan for Taxes
President Bush's tax plan began its long way through Congress when Sens. Don Nickles (R-OK) and Zell Miller (D-GA) and Rep. William Thomas (R-CA) introduced bills (S 2, HR 2) to implement the $694 billion plan. Its success rests heavily with centrists in the Senate - Republicans as well as Democrats. There aren't enough conservative Republican votes to pass the package as proposed and only one Democrat has given public support to the proposal. So far, the centrists aren't buying the full package. Most vulnerable is elimination of taxes on corporate dividends for investors; higher direct expensing for small businesses has broad bipartisan support.  

Tax Bills Introduced in the House
Two bills introduced in the House would change the tax structure. Rep. John Linder (R-GA) introduced the Fair Tax Act (HR 25) to replace federal income, payroll, estate and gift taxes with a national sales tax administered by states. Rep. Phil English (R-PA) introduced the Simplified USA Tax (HR 269) to replace the existing income tax with a two-level tax on business and individual income. The proposed system would impose an 8 percent to 12 percent business tax when income is produced and tax individual wages, interest, dividends, capital gains and other income at 15 percent, 25 percent or 30 percent. 

Source: National Retail Hardware Association

Scholarship Applications Available

Scholarship applications are available from the Electric League office and the the Electric League web site, www.electricleague.org, for the 2003 Electric League Scholarship. The scholarship is available to children and grandchildren of Electric League members. Contact Jane at the League office for an application or more information - phone - 816-561-5323.  

The deadline has been extended to April 13 for returning completed applications. 

Best Ways to Communicate With Your Legislators

Writing Your Elected Officials  
Elected officials are impressed by large volumes of mail from their constituents on a particular issue. They are not however, impressed by 5,000 copies of the same letter or postcard with different signatures. Personal letters are always the best choice. Elected officials respond positively to mail by constituents who really cared enough to write. 

Letter Writer's Guide
Concise, original letters are the best way to communicate with your legislators. Even a letter that just tells an elected representative to support House Bill 000 is better than no letter at all. Avoid preprinted postcards.  

Use letterhead, if possible, and sign your name over your typed signature at the end of your message. Clearly handwritten letters are as effective as typewritten ones. 

Use an inside address on the letter, not just on the envelope. Sometimes envelopes are thrown away before a letter is answered. Also include your daytime phone number.  

Stay to one subject if at all possible. Be specific and state the name of the legislation you are writing about. If you know it, provide the House or Senate bill number as well. 

Clearly state your reason for writing. Personal experience is terrific supporting evidence. Explain how the issue affects you, your family, your community, your business or your profession.  

Avoid stereotyped language. It can give the appearance of form letters and might identify your message as part of an organized pressure campaign. Be clear and concise. 

Be reasonable. Don't ask for the impossible. Don't threaten. Don't say things like, “I'll never vote for you unless you do such and such.” Such attitudes don't work. 

Ask your legislators to state their positions in a reply after you have told them where you stand. As a constitutent, you are entitled to know.  

Thank your legislator and commend him or her when it is deserved. 

Time for Extending Mechanic Liens on Non-Residential Properties in Kansas

A compromise has been reached in the Kansas legislature on legislation which would extend the time period within which mechanic's liens may be filed on commercial property. Substitute for House Bill No. 2064 was approved by the House on a vote of 122 to 2. Under the compromise legislation, contractors and sub-contractors may extend the four-month period within which liens must be filed by filing a Notice of Extension with the Clerk of the District Court. The period may be extended to five months on commercial properties. This is somewhat different from the original House Bill No. 2064 which would have extended the time period within which liens must be filed to six months. The legislation is expected to pass the Senate.

The People Column

Happy St. Patrick's Day to one and all.  

Get well wishes go out to Shirley Henderson at C&O. This month's Birthday Greetings go out to: Jim Stanker and Pat Saviano at C&O, Jay Rains at Rains Electrical Sales, and Mary Oberholz, Jeannie Pappas, and Mark Hood at Graybar.   

Luke Stanker (son of Jim at C&O) is studying in Australia as part of an exchange program with K-State.  

Keep your e-mails coming in - this is your column and we're here to print your news. Send your news to: peoplecolumn@electricleague.org

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