With stimulus, forecast looks good for Oklahoma City companyPublished: Saturday, March 21, 2009 7:00 am By: Debbie Blossom
The new federal stimulus bill is expected to directly influence business at one longtime Oklahoma City manufacturer that has for almost 90 years produced products aimed at making homes more weather-resistant.
Privately owned M-D Building Products, the former Macklanburg-Duncan Co., has for decades designed, manufactured and marketed residential and commercial weatherproofing products.
But demand for its weather stripping, caulking and pipe insulation is expected to increase during the next year from the $5 billion allocated to state programs aimed at improving housing in low-income areas and increased tax credits to homeowners for weatherproofing their homes.
"The stimulus plan hits right at our sweet spot," said Loren Plotkin, M-D Building Products' president and chief executive officer. "This bill provides the incentives and financing, as well as the motivation, for Americans to weatherproof their homes."
The company employs more than 400 people and sells 3,500 products, producing about 70 percent of them in its 500,000-square-foot manufacturing and distribution facility on N Santa Fe Avenue, said Andrea Welsh, director of corporate development. And management is looking to make even more locally, she said.
A second 40-employee plant in Gainsville, Ga., produces interior and exterior caulk marketed under two brand names.
M-D Building's door thresholds, window insulation kits, air conditioning covers, water heater insulated blankets and dozens of other products and tools are sold at Lowe's, Home Depot and Westlake Ace hardware stores, Plotkin said. The company maintains a 10,000 distributorship base.
How will it help?
The effects of the stimulus plan are two-fold, Plotkin said.
The first installment of the $5 billion available will arrive in April and will be channeled from the state Commerce Department to local agencies administering the Weatherization Assistance Program.
Secondly, homeowners will be eligible for energy tax credits from 10 to 30 percent on energy-efficient improvements.
To provide information on the assistance program and guidelines on products and energy-saving projects for contractors and consumers, M-D Building Products helped develop a new Web site -- weatherizationsource.com -- that details those topics.
"The sheer fact that weatherization is included in the stimulus bill validates the significant energy savings we can realize in both summer and winter months," he said.
"Homeowners can save energy and money by taking some very simple and inexpensive steps such as properly sealing doors and windows with weather strips, thresholds and caulk."
And according to the U.S. Energy Department, weatherproofing a home can reduce heating bills by 32 percent and overall energy bills by $358 per year.
Westlake Ace hardware stores have seen an increased demand in the products, said Brian Barbee, the retailer's Oklahoma district manager.