Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from the line of Deane Dray.
Mark Zeff - Goldman Sachs & Co
Good morning. This is Mark Zeff calling on behalf of Deane. Dave, I was wondering if you could put the restructuring moves in context. How much of the $14.5 million here is just within the normal course of business of the Carlisle operating system, and how much is specifically related to changes in your end markets in reacting to market conditions?
David Roberts
If you look at that, the COS, probably of the $12 -- the $14.5 million, about $10 million of it is through the COS, and the other $4 million is basically the closure of the Insulfoam plant just because of the residential construction.
Mark Zeff - Goldman Sachs & Co
Okay. And then have you identified the cost savings expected to be realized in 2009, and then what the full year annualized run rate going forward would be on a cost-savings basis?
David Roberts
Yeah, we think that probably in ?09, there’s going to be in an area of about a $9 million cost savings, and then you’ll annualize that as you get into the following year. Most of these have, with the exception of the Insulfoam operations, have about a year payback on the closing cost. So, as you get into -- in the future years, that’s going to be in the $10 million range for the consolidation of the wheel plants. Insulfoam has a little bit longer payback. I think it was almost 2.5 years payback on the closure of the Insulfoam operations. So that payback will take place over the next basically 2.5 years.
Mark Zeff - Goldman Sachs & Co
Okay, that’s helpful. And then just quickly, if you could comment on the specifics you are seeing in the price/cost dynamic in construction. If you roll the clock back a few months, oil was at $140 and there were a slew of price increases announced for the fall. Have those price increases stuck at the competitive response? And then going forward, are you looking at having to roll back some of those price increases with the raw material costs coming down as sharply as they have?
David Roberts
Yes. Actually, the earlier price increases, with certain percentages we got most of those. It’s the ones that we announced for October 1st, we are continuing to go with those, but frankly it’s becoming more difficult to get them. Competitive pressure has really caused us to be a high-cost player in the market with our new price increases. We plan to hold where we can. We’ll be competitive where we can, but my estimate going forward is that the October price increases which were 5% are going to be very difficult to get. And December I think will be difficult as well particularly with the [upticks] of materials coming down or raw materials declining.
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