With many builders experiencing an industry downturn for the first time, HBAs across the county — like the 1,100-member Tidewater Builders Association in Chesapeake, Va. — have provided educational sessions to give their members vital expertise from those who have been through the housing cycle.
The Tidewater Builders, for instance, has had “seasoned” housing industry professionals who have weathered multiple downturns as guest speakers at three well-attended breakfasts, said John Ainslie, president of the association and a principal with Ainslie-Widener, a builder-developer.
The HBA tapped a custom builder and a volume builder, both former HBA presidents, to discuss how to handle subs, suppliers and home owners during the downturn.
At another breakfast, four local attorneys told the builders “how to get their houses in order” and prepare themselves for all eventualities, according to Channing Pfeiffer, the association's CEO.
At a third breakfast, four bankers told builders that banks “were very nervous” and did not want to hear about possibilities. They only wanted to know about what definitely could be achieved.
Ainslie and Pfeiffer said they began the breakfasts, which have been attended by 60 to 80 builders, depending upon the topic, a year ago.
“We wanted to make sure that the builders were well prepared,” Ainslie said. “Many of the builders have come into the industry since 1991 and have not gone through a downturn. We wanted to give them relevant information. Many of the new builders got used to the booming market.”
The Greater Atlanta Home Builders Association has several programs to keep its members informed of market changes.
The HBA’s Builder/Developer/Lender Council conducts monthly roundtable discussions among builders, lenders and developers, and once a quarter, Dr. Roger Tutterow, of Mercer University, presents a consumer confidence survey, according David Ellis, the association’s executive vice president.
In addition, Terry Morris, of GMAC Home Services, and Phillip Rassel, of Metrostudy, provide the members with a regular market report and update.
The HBA also e-mails its members a comparison of local versus national housing statistics every quarter and conducts regular cash flow management workshops to help its members manage their businesses.
Like the Tidewater and Atlanta associations, HBAs around the county have tapped “seasoned” builders, bankers and other local experts for similar programs to give their builders a local perspective on the downturn and tips on how to weather it. These programs have been well attended.
