Nation's Building News Online: November 20, 2006Print All Articles Text Version |
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News Stories Not the Driving Force Behind Home BuyingThe nation’s prospective home buyers may derive some of their information on the housing market from the news media, but at the end of the day the things that matter far more when they are deciding whether to make a purchase include the price of the new home, mortgage interest rates and their housing needs, according to a new nationwide survey commissioned by NAHB. “While the majority of the households we polled indicated that they found the media a reliable source of information on the housing market, what they read in the newspaper, saw on television or heard on the radio was no substitute for actually going out and shopping the market,” said Thomas Riehle, a partner in RT Strategies, which conducted the research for NAHB. “When people are actually thinking about buying a home, they are driven by the details of how it will impact their family budget and lifestyle and contribute to their long-term wealth, and that gives them a much closer perspective on the market than what can be conveyed in news coverage,” Riehle continued. When asked to rate the importance of several factors that might affect their decision to buy or not to buy a home, survey respondents put the home’s price at the top of the list, with 80% citing its significance. That was followed by: the potential for the new home to appreciate in value, 71%; the prospect of selling their current home at a fair price, 70%; the level of mortgage interest rates, 69%; and personal life changes, such as a new job or an addition to the family, 60%. On a list of eight items, news stories on real estate market conditions ranked second from the bottom, with 28% saying that it was an important factor behind their decision to buy. When further asked about the influence of the news media on their decisions of when to buy a home, only 19% of the respondents said it played an important role; 23% indicated that it had some importance on their decision; and 7% said it played a minor role. A full 48% said it had no influence whatsoever. Sixty-one percent of the survey participants said that the media is “sometimes trustworthy” as a source of information on the housing market and 5% said that it is “always trustworthy.” Twenty percent and 8%, respectively, said it is “seldom trustworthy” and “never trustworthy.” “The media provides an important service by giving consumers the big picture of what is occurring in the housing marketplace, even the big picture in their local markets. But despite that, local reporting can't convey the information that consumers consider the most when they are looking for a new home,” said NAHB President David Pressly. “The fact is that even as the national market is slowing down from the unsustainable pace of the past few years, there are sizable numbers of families who need new homes. And with a wide selection of new homes to choose from, with mortgage rates remaining near historic lows and with incomes and jobs continuing to grow, the opportunities are extremely favorable for buyers in today’s marketplace. Home builders are working down their existing inventory of homes fairly quickly and the current slowdown in production is expected by NAHB economists to have run its course by the middle of 2007. From that point forward, the industry is expecting to see a good balance in the marketplace between supply and demand, setting the stage for a healthy and sustainable trend for housing, supported by a growing U.S. economy. The NAHB survey of 2,000 households, including more than 1,750 registered voters, was conducted from Oct. 26 to 29. It's a Great Time to Buy New materials from NAHB — “It’s a Great Time to Buy” — provide association members with information that consumers will find helpful in assessing opportunities for purchasing a home in today’s buyer’s market. Resources in the free, members-only buy-now package include:
For more information, e-mail Niki Clark at NAHB, or call her at 800-368-5242 x8061. IBS to Feature Two Showcase Homes, Ted KoppelThe 2007 International Builders’ Show (IBS) in Orlando, Fla. will feature two showcase homes for the first time ― one “new” and one “remodeled” — that reflect the challenges and advantages of the “re-gentrification” movement with in-city housing. In addition, Ted Koppel, former anchor of ABC’s “Nightline” and a 42-year veteran of ABC News, will be the keynote speaker at the grand opening ceremonies. Set for Feb. 7-10 at Orlando's Orange County Convention Center, the IBS also will feature a record 1,800 exhibitors, 450 of them for the first time, and more than 290 education sessions covering every facet of the home building industry.
Both showcase homes are located in the Lake Eola Heights Historic District in downtown Orlando, approximately 15 minutes from the convention center. Koppel now serves as managing editor for The Discovery Channel where he continues to provide in-depth reporting on global issues. He also serves as a contributing editor for the New York Times and gives regular comentary on National Public Radio. Last year, more than 105,000 housing professionals attended the builders’ show. Discounted Online Registration Available Now Discounted online registration ends Jan. 5. To register online, visit www.buildersshow.com. Attendees can register on site at the show beginning on Sunday, Feb. 4. Visitors can also see in advance what the show has to offer at www.BuildersShow.com/VTS, a virtual showcase for exhibitors and their products. To read more about IBS elsewhere in this issue, click here. Advice From Industry Experts: Ramp Up Sales and MarketingTom Stephani, S. Robert August and Bill Becker ― industry veterans who have been through market shifts more than once ― will discuss what changes you should make to your sales and marketing in order to thrive in today’s market during an upcoming audio conference. The hour-long teleconference, “Ramp Up Your Sales & Marketing in a Changing Market,” will begin at 2:00 p.m. EST, Jan. 9 and is available free to NAHB members. Stephani, August and Becker will counsel participants to be proactive and adjust their sales and marketing processes. This includes assessing and changing their sales team and how they work with prospects, reducing their inventory, shopping the competition more effectively and more. The conference will include a 40-minute presentation, followed by 20 minutes of questions and answers from participants. Think Like a Retailer Builders who haven’t made any changes to their sales and marketing approach in response to the changing market need to do so — yesterday, says Becker, MIRM, CMP, managing director and president of the William E. Becker Organization in Teaneck, N.J. He will share insights on how to develop a marketing plan that focuses on moving forward, and discuss how to re-evaluate that plan and adjust it if necessary. “We’re in the retail business. The three things that keep people coming back are: ‘new,’ ‘grand opening’ and ‘free,’” Becker says. “Retail makes money by having something new every day.” Keeping models fresh and offering new events on a consistent basis are crucial, he says. Begin Building a Strong Customer Base Now “Now is the best time to execute new sales and marketing campaigns,” says August, MIRM, CMP, Master CMP, of the S. Robert August Company, Inc., in Greenwood Village, Colo. During the conference, he will discuss how to overcome objections, build a stronger customer base and initiate unique and distinct sales and marketing programs for the business-to-consumer and business-to-business markets. “You’ll be able to adapt these concepts to a profit-building marketing campaign for your business, regardless of your size,” says August, who has weathered six adjustments since he’s been in the industry. Slight Adjustments Can Improve Your Conversion rate Moderator and veteran builder Stephani, CGB, CAPS, MIRM, CMP, of William Thomas Homes, Inc./CCC, Inc., in Crystal Lake, Ill., who also has been through numerous market shifts, says that small changes can make a big difference. “Just some slight adjustments can improve your conversion rates and help you adjust to a changing market,” he says. He also encourages builders to look for solutions that go further than incentive packages. “Incentives are just one part. Let’s be better salespeople,” he says. “Let’s make sure the soft contracts turn into hard contracts.” Finally, Stephani cautions, the worst thing builders can do is lose hope. “We have to make sure that people understand the sky is not falling; it’s just a little cloudy.” Conference Topics The 40-minute presentation will cover:
To Register For more information, or to register for the free “Changing Market” audio conference, click here, e-mail Wil Heslop at NAHB, or call him at 800-368-5242 x8472. Teleconference materials will be e-mailed to registered participants in advance. The conference is co-hosted by NAHB’s National Sales and Marketing Council and Biztools, NAHB’s business management comprehensive resource on the NAHB Web site. Nation's Building News Will Not Be Published Nov. 27Nation's Building News will not be published on Nov. 27, the Monday after Thanksgiving. It will return to its regular weekly schedule on Dec. 4. Happy Thanksgiving! Housing Decline Pushing Down the Price of LumberComposite lumber prices have dropped from $380 per thousand board feet on Jan. 6, 2006 to $274 per thousand board feet on Nov. 8. The price this time last year was $350, according to NAHB. Prices of drywall and concrete have remained steady, in part due to energy costs, but plastic insulation and other building products have also declined in price. Chris Cromyak, manager of The Lumber Yard in Reading, Pa., said that while big purchases from larger builders and developers are off, smaller contractor purchases remain steady. “Those guys always seem to have something going on,” he said. Reading area builders are expecting the market to remain flat through next spring or summer. (www.readingeagle.com)
It’s a Buyer’s Market, Baby: But That’s OK, Because Shoppers Can Now ‘Sleep on It'The number of existing homes on the market in
Bathrooms to Fit Clark Kent
Boomers Spur Remodeling Trend
For Homes, Rich Drivers Pick 4-Door Model; Some Towns Changing Regulations to Fit TrendsFour-car garages are the latest example of super-sized American culture. In 2005, 30% of all new homes included garages with three or more bays. Home buyers in a new, upscale development in
Splitting the Difference; Some Want a Taste of City Life without Giving Up the Suburbs
Informal Reaches New Level: As Entertaining Goes Casual, Guests Sit at Higher ‘Gathering Table'Like a lot of Americans these days, Tanya and Andrew Smith have only a distant relationship with their dining room. "We use it for Thanksgiving, Christmas and special occasions," Tanya Smith says. Most parties take place in the couple's commodious, high-ceilinged kitchen, which is why the Smiths recently decided to replace their kitchen table with the latest in home furnishings ― a counter-height table that can seat eight. Generally called "gathering tables," these higher dining sets began appearing on the market only a few years ago. A phone survey done last year by Electrolux, the appliance manufacturer, found that more than two-thirds of adults said they used their kitchens for socializing and entertaining guests. "It just ends up being easier," says Tanya Smith. The bigger gathering table solves the kitchen-seating shortage she regularly faced. In open-plan dwellings with just one area for eating, they're replacing dining tables. Some families are even putting them to use as work and craft tables. But gathering tables won't work in every house. They're largely a creature of newer home-building trends. NAHB notes that more than half of all newly built single-family homes in 2004 had ceilings on the first floor that were 9 feet or higher. Thirty years ago, only about 15% of homes had ceilings that high. Says Tomkins: "We're seeing the older, more mature set getting interested in them — the 50- and 60-somethings who are having issues with their joints...and don't like a lot of ups and downs. With a counter-height seat, you just slide into that chair." (www.phillynews.com)
Lawmakers Elect Leaders for 110th CongressAs NAHB prepared to work with the new 110th Congress in a bipartisan fashion to advance the national housing agenda, congressional lawmakers from both parties elected their leadership last week for the 2007-2008 congressional term. Below is a list of key Senate and House leaders: Senate Leadership — Democratic Majority (51 seats)
It's a Marathon, Not a Sprint, NAHB Tells Congress
Designed to reinforce NAHB’s status as the voice of the nation’s housing industry, the advertisement above was published in the Nov. 18 issue of the National Journal. It is the first in a series of advertisements that will appear in the publication, which is widely read by members of Congress, the Administration, regulators and others whose decisions affect the housing industry. Katrina Cleanup, Political Wrap-Up Highlight SGLA ConferencePanel discussions and breakout sessions on the Hurricane Katrina cleanup, Nov. 7 elections wrap-up, impact fees, green building, inclusionary zoning, fire sprinklers, eminent domain, immigration reform and other issues were part of the 2006 State and Local Government Affairs Conference in New Orleans earlier this month. The conference, attended by 320 members, local and state HBA government affairs staff and others, featured more than 20 sessions that provided attendees with strategies for implementing effective programs. Additional panels included: leveraging philanthropy to promote government affairs, environmental trends, affordable housing, McMansions and PAC development. MSNBC commentator Tucker Carlson offered a wrap-up of the recent midterm elections. Pollster Frank Luntz provided advice on the home building industry and public relations. For more information, e-mail Alex Strong at NAHB, or call him at 800-368-5242 x8279. Next year’s conference will be Nov. 8-10, 2007 in Austin, Texas. Starts, Permits Decline in OctoberHousing starts and the issuance of building permits — a key indicator of future building activity — both were down in October as builders moved on a backlog of inventory to bring housing demand and supply more in balance, according to figures released by the U.S. Census Bureau Nov. 17. Housing starts were down 14.6% to a seasonally adjusted annual rate of 1.486 million units for the month and the issuance of total building fell 6.3% to a seasonally adjusted annual rate of 1.535 million units. The pace of construction was 27.4% below a year ago. “Today’s report shows that builders have been reacting appropriately to bring supply and demand back into balance following a period where sales were falling, cancellations were rising and inventories were growing,” said NAHB President David Pressly. “As builders continue to work off excess inventory, we expect that new housing starts will bottom out by the middle of 2007, with most of the decline occurring this year,” said NAHB Chief Economist David Seiders. “Economic conditions and results from our recent builder surveys show that the demand side of the market appears to be stabilizing as affordability measures move up,” Seiders continued. ”Mortgage rates and energy prices have been declining in recent weeks, applications for new home loans are up, consumer sentiment is rising and employment and income growth are on the rise.” Single-family housing starts were down 15.9% to a pace of 1.177 million units while multfamily housing construction dropped 9.1% to a rate of 309,000 units. Regionally, construction of new homes and apartments for the month fell 26.4% in the South, 11.7% in the Midwest and 2.1% in the West. Starts rose 31% in the Northeast, rebounding to a level similar to that reported in August following an unusually low reading in September. Single-family permit issuance was down 3.8% to 1.173 million units while multifamily units fell 13.6% to a rate of 362,000 units. “The lower permit figures are actually a good sign,” said Pressly. “Builders are also continuing to offer value-added incentives to purchase a new home. Factor in today’s low interest rates, competitive prices and great selection and it all adds up to a very good environment for housing consumers.” Want to Know the Housing Starts Through 2015? Find out in HousingEconomics.com’s Long-Term Forecast. HousingEconomics.com includes downloadable Excel tables featuring the housing starts forecast, GDP, demographics and more. To learn more, visit www.housingeconomics.com. NAHB Kit Gives Builders Back-to-Basics Tips in Changing Market With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. Moving Pumps $170 Billion a Year Into the EconomyHome buyers and renters spend approximately $170 billion a year just by moving, according to a survey recently conducted by Move, Inc. Examining nearly 40 purchase categories, the 2006 Mover Survey found that the average household spends nearly $9,000 on products and services directly linked to the move. About half of moving-related expenditures are for household goods and services, including home decorating, improvement and repair. Movers spend 60% more on such purchases than non-movers. The rest of the moving-related expenses are for switching to new merchants for services like banking, cable or satellite television, telephone service and Internet access. Movers also switch to new grocery stores, insurance companies, auto mechanics and pharmacies. Analyzing the consumer timeline for purchasing move-related goods and services, the study by Move found that many buying decisions are clustered around the two weeks immediately before and after a move. The majority of people surveyed reported purchasing major appliances, home electronics, furniture, window treatments, bedding and linens, as well as home repair, lawn and garden and pest control supplies, within the first two weeks of moving in. Move also spoke to home improvement retailers, utility providers, general retailers and other companies with the most to gain from the mover market and found that the majority of them market to a mass audience instead of targeting consumers at critical decision-making points in the moving process, ignoring a segment of the market that could offer a significant return on their investment. Move.com is the official new homes Web site of NAHB. Want to Know the Housing Starts Through 2015? Find out in HousingEconomics.com’s Long-Term Forecast. HousingEconomics.com includes downloadable Excel tables featuring the housing starts forecast, GDP, demographics and more. To learn more, visit www.housingeconomics.com. NAHB Kit Gives Builders Back-to-Basics Tips in Changing Market With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. Builders Confidence Buoyed by Stabilizing Shift in MarketRising affordability, low mortgage rates and other suggesting stabilizing conditions in the nation’s single-family housing market boosted home builder confidence in November as it edged up for the second consecutive month, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today. The HMI gained two points from the previous month to stand at 33. “More and more builders are seeing light at the end of the tunnel,” said NAHB President David Pressly. “Our members are telling us that the market is steadying after a significant downward correction. On the demand side, we look for sales to stabilize and gradually move up in the coming months.” “With home prices leveling off, mortgage interest rates remaining near historic lows, energy prices declining and the economy continuing to generate solid growth in employment and household income, affordability is now on the mend and many consumers recognize that home buying conditions have improved,” said NAHB Chief Economist David Seiders. “Builders are picking up on this change in market momentum.” Derived from a monthly survey that NAHB has conducted for almost 20 years, the index gauges builders’ perceptions of current single-family home sales, sales expectations for the next six months and traffic from prospective buyers. The scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view sales conditions as good than poor. All three component indexes moved higher in November. Current single-family homes sales registered a 33 on this month’s index, one point higher than the September reading; expected sales rose four points for the second consecutive month to 46; and traffic was up three points to 26. “Looking ahead, builder outlook is perking up,” said Pressly. “With builders continuing to offer significant sales incentives and affordability on the rise, home shoppers have greater opportunities today than they have had for several years, making this an opportune time to buy.” Regionally, the HMI rose two points to 37 in the Northeast and two points to 40 in the South. Builder confidence edged down two points to 16 in the Midwest and one point to 34 in the West. Want to Know the Housing Starts Through 2015? Find out in HousingEconomics.com’s Long-Term Forecast. HousingEconomics.com includes downloadable Excel tables featuring the housing starts forecast, GDP, demographics and more. To learn more, visit www.housingeconomics.com. NAHB Kit Gives Builders Back-to-Basics Tips in Changing Market With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. Eye on the Economy: Long-Term Interest Rates to Remain FavorableGrowth of U.S. economic output (real Gross Domestic Product) slowed down further in the third quarter as the housing production component (Residential Fixed Investment) subtracted more than a percentage point from the overall GDP growth rate. Further below-trend GDP growth is in the cards for the fourth quarter of the year, due largely to another sizeable negative contribution from RFI. But the drag from housing should ease off early next year and the economy should easily avoid recession in 2007. The Job Market Is Doing Remarkably Well Despite preliminary indications of relatively weak payroll job growth for last month, including further slippage of the residential construction component, the October employment report was fundamentally strong. The report included large upward revisions to payroll employment growth in both August and September, maintenance of strong growth in average hourly earnings, and strong growth in both the labor force and household employment — along with a decline in the unemployment rate to a new cyclical low in October (4.4%). The Mix of GDP Growth and Labor Conditions Has Inflationary Implications The combination of slowing GDP growth, solid job growth, shrinking slack in labor markets and upward momentum in average hourly earnings has sobering implications for both labor productivity (output per hour) and unit labor costs (labor cost per unit of output). Indeed, slowing productivity growth and rising unit labor costs are already in evidence, and continuation of those patterns would have downside implications for business profit margins and upside risks for inflation in the U.S. economy. Core consumer price inflation (excluding food and energy prices) still is running above the upper bounds of the Federal Reserve’s implicit tolerance ranges, largely because of the influence of the government’s imputation for “homeowners’ equivalent rent.” It’s still reasonable to expect core inflation to recede as the below-trend economic expansion proceeds and upward pressures on market rents abate, although that picture has been clouded by the recent slowdown in productivity growth and the renewed upward pressure on unit labor costs. The Fed Remains Friendly Despite Current Inflation Issues The Federal Reserve held monetary policy steady at the Oct. 24-25 meeting of the Federal Open Market Committee (FOMC), stressing the importance of a “cooling” housing market in the current slowdown of economic growth and projecting moderation of core inflation from recent “elevated” levels. The Fed is likely to hold policy steady into 2007 despite the recent troubling news on productivity growth and unit labor costs, and we’re still expecting a bit of monetary easing around the middle of next year. Long-Term Interest Rates Figure to Remain Quite Favorable The employment report for October (released Nov. 3) provoked immediate increases in long-term interest rates as inflation expectations in financial markets were marked up and prospects for near-term Fed easing were marked down. Even so, long rates remain well below their midyear highs, and the outlook for Treasury bond and long-term mortgage rates remains quite favorable in the context of our projections for real economic growth, core inflation and Fed policy. Our forecast currently shows less than a quarter-point increase in long-term rates over the coming year. Stabilization of Home Buyer Demand Should Occur Soon Home sales still appear to be slowing from the unsustainable levels recorded in 2005, and sales cancellations still are a major issue. However, affordability conditions have improved a bit in recent months and forward-looking indicators — including NAHB’s monthly surveys of single-family builders and the Mortgage Bankers Association’s weekly surveys of home mortgage lenders — suggest that home buyer demand is likely to stabilize in the near future. Indeed, a number of key economic and housing market developments now are underpinning housing demand, and many home sellers (particularly home builders) are trimming prices and offering a plethora of non-price sales incentives to bolster sales and limit cancellations. Inventory Overhangs Should Delay Turnarounds in Housing Production The inventories of unsold single-family homes and condo units have edged down a bit from recent records, but inventory levels and inventory-to-sales ratios still are quite high. Furthermore, inventory overhangs undoubtedly are larger than shown by published data, and vacant units now account for an unusually large share of homes for sale — accentuating the seriousness of the inventory situation. The weight of the inventory situation is likely to exert downward pressure on housing production and home price appreciation for at least a few more quarters. NAHB’s housing forecast shows a trough in home sales in the first quarter of 2007, a trough in housing starts in the second quarter and a bottoming-out of home price appreciation in the second half of 2007. The projected recovery process lifts sales and production back up toward trend by the end of 2008, and national house price appreciation will be comfortably in the positive zone by then. The Current Housing ‘Correction’ Is Not a Classic Cyclical Downswing The recent and projected housing “correction” is roughly half as long and deep as the housing downswing that accompanied the 1990-1991 economic recession ― largely because the overall economic and financial market environment is likely to remain relatively positive as this housing downswing plays out. This housing correction has been a relatively isolated sectoral event provoked by earlier excesses within the housing and housing finance sectors — including a wave of “exotic” ARM lending and a massive influx of investors/speculators that drove home sales and home prices to unsustainable heights and decimated affordability conditions in many areas. The November Elections Have Limited Implications for Housing and the Economy The outcome of the Nov. 7 Congressional elections should not have major implications for the economy or the housing market in 2007-2008. The independent Federal Reserve will hold the major economic policy lever during that period, Democratic majorities are razor thin in both houses of Congress, and the White House will be able to effectively exercise veto power. Major decisions on things like Social Security and tax reform certainly will not occur prior to the 2008 elections, and the Democratic Congress is likely to devote much of 2007-2008 to positioning the party for the 2008 campaign. This presumably will include bringing popular bills that Republicans traditionally have opposed to the House floor and daring the Republicans to vote against them. Comprehensive immigration reform could fall into this category. NAHB Chief Economist David Seiders analyzes the economy from the point of view of the housing market every other week in the free e-newsletter, “Eye on the Economy.” The preceding is a reissue of his Nov. 15 edition. To subscribe to “Eye on the Economy,” click here. Want to Know the Housing Starts Through 2015? Find out in HousingEconomics.com’s Long-Term Forecast. HousingEconomics.com includes downloadable Excel tables featuring the housing starts forecast, GDP, demographics and more. To learn more, visit www.housingeconomics.com. NAHB Kit Gives Builders Back-to-Basics Tips in Changing Market With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. Builder's Tip: Making Low-Cost Crown-Molding Clamps
In my cabinetmaking business, I am faced with a fair number of crown-molding installations. While searching for ways to ease the job of pulling tight the moldings on outside corners, I considered buying some spring miter clamps — the kind that use a C-shaped spring with pointed ends to draw parts together — but blanched at the price. Instead, I looked at the tools I already had and wondered how they might solve this problem. The accompanying drawing illustrates my solution.
Using the clamps is easy.
I’ve modified a dozen such clamps so that I can finish an entire job without needing to recycle clamps before the glue sets up. If you don’t have enough clamps to do the job, use a pin nailer to secure a clamped joint while the glue dries. Incidentally, these clamps are equally useful for picture frames. — Mike Hathaway, Huntington Beach, Calif. Tips & Techniques provided by Fine Homebuilding.
To request a reprint of this feature, e-mail Christina Glennon at Fine Homebuilding.
BuilderBooks.com Offers More Than 250 Books That Help You Build Your Business BuilderBooks.com is your source for training and education products for the building industry. The official bookstore for NAHB, BuilderBooks.com offers award-winning publications, software, brochures and more available in both English and Spanish. To view these publications online, click here, or call 800-223-2665.
Free NAHB Kit Gives Builders Back-to-Basics Tips in Cooling Market With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar on the NAHB Web site. For assistance, call the NAHB Member Service Center at 800-368-5242. More Than 100,000 Expected at International Builders’ ShowMore than 100,000 housing professionals are expected to attend the 2007 International Builders’ Show (IBS) ― the housing industry’s largest annual light construction trade show and exhibition — in Orlando, Fla. on Feb. 7-10. Just How Large Is the Show? Held in the Orange County Convention Center, one of the biggest convention centers in the country, the 2007 IBS boasts the housing industry’s largest new-product showcase at more than one million net square feet, with a record 1,800 exhibitors displaying the latest cutting-edge products, services, designs and technologies available to the home building community. “The International Builders’ Show continues to grow because it is the event of the year for builders who want to stay on the cutting edge,” said NAHB President David Pressly “With 450 new exhibitors, an impressive lineup of speakers and some truly amazing show homes, we expect this year’s show to be the best yet and certainly not one to miss.” The exhibit floor will feature suppliers spanning more than 300 categories ranging across every aspect of the residential and light commercial construction fields. Cutting Edge Technology, Education, Two Showcase Homes and More Building professionals looking for an edge on the latest in home building technologies can visit nextBUILD™, the newly renamed technology component of IBS, which will showcase more than 200 exhibitors. Builders and their affiliates will also be able to choose from more than 290 educational sessions and have the opportunity to earn credit toward a professional designation by attending pre-show educational seminars. For the first time ever, IBS will also feature two showcase homes — one new and one remodeled. Enough Food to Feed a City With attendance numbers rivaling the population of a city the size of Boulder, Colo., convention caterers expect to keep busy. During the 2006 show, they sold the equivalent of 2.5 miles of hotdogs and sausages; 75,000 slices of bread or enough to span one mile; 2,000 pounds of salad; 3,000 pounds of potato chips; and more than 6,000 gallons of beverages, equivalent to the amount of gasoline needed to fuel a car for 13 years. Discounted Online Registration Available Now Discounted online registration ends Jan. 5. To register online, visit www.buildersshow.com. Attendees can register on site at the show beginning on Sunday, Feb. 4. Visitors can also see what the show has to offer at www.BuildersShow.com/VTS, a virtual showcase for exhibitors and their products.
Try Technology Before You Buy, at IBS Computer LabsIndustry professionals will be able to sample the latest information technology business solutions at 20 computer labs at nextBUILD™ — the home building technologies component of the 2007 International Builders' Show (IBS) — coming to Orlando, Fla. in February. In the 90-minute labs, attendees will be able to "try before they buy" such technologies as computer-aided design and drafting software, estimating software, workflow management software that can help reduce cycle time, voice recognition software that can streamline communications and help make jobsite supervisors more productive, and more. The following is a preview of several labs at nextBUILD™: Speech Recognition Software to Streamline Field Communications BuilderWerks automatic speech recognition software, by IntoText of Tampa, Fla., can streamline communications from the field by enabling construction superintendents and others to bypass cumbersome technology when sending critical business data to their back office systems. Brig Johnson, president of IntoText and a former construction superintendent, said BuilderWerks only requires that users learn a simple “dictation protocol” to send vendor-, customer- or other data to support personnel. At nextBuild™, computer lab participants will learn how to create a voice profile, configure the few setting that control e-mailing and faxing reports, and then use BuilderWerks in a guided walk-through of a virtual house to enter punch items and schedule activities. Participants also will learn about how BuilderWerks can improve processes, speed jobs and document key details and agreements. Computer-Aided Architectural Design Software SoftPlan Architectural Design Software is computer-aided design and drafting software to help create floor plans, picture elevations, offer three-dimensional renderings and generate materials lists rapidly and easily. Participants in the SoftPlan-sponsored computer lab will use the software to complete a hands-on project ― such as a pool house or garage. They will also get an overview of all of SoftPlan’s design tools and be given demo CDs. A Complete Management System for the Production BuilderMT Sage Timberline offers a complete information and process management solution for production builders to reduce cycle time and improve customer service and warranty performance. Participants in BuilderMT’s lab on workflow solutions will learn how the tool helps builders tighten their operations “from dirt to defects” and grow their bottom line. A second BuilderMT lab focuses on field management technology to improve superintendent effectiveness and includes demonstrations of Web-based trade portal and tablet technologies. Attendees at both labs will receive demo CDs and can sign up for in-depth presentations on the show floor. Full Potential From Estimating Software Sage Timberline Office lab participants will learn how to take full advantage of their estimating software investment sooner by using new tools for database setup and implementation. Demonstrations will include the Database Builder Wizard andfeatures that decrease the amount of time needed for the database-building process. A second lab featuring Sage Master Builder will demonstrate how an integrated solution can help improve project management and allow jobs to proceed more smoothly. Participants will view a new Executive Dashboard to enable builders to constantly take their company’s financial “temperature.” One-on-one demonstrations will be offered on the show floor and special discounts will be offered for purchases made on site at IBS. Other computer labs will allow nextBuild™ attendees to sample:
Go to My Planner to Sign Up for the Labs To sign up for the labs, go to My Show Planner for dates and times on the IBS Web site. Register for IBS Early for Your State Hotel Room Block Last year, more than 105,000 housing professionals attended the builders’ show. Register early to request a room in their state hotel room block. For more information, or to register, visit www.buildersshow.com. NAHB Has Nearly 300 Resources to Help You Run Your Business More Profitably Go to NAHB's Business Management Tools Web pages (available to members only) for instant access to nearly 300 timesaving, moneymaking and cost-cutting business resources to help you run your business more profitably. Get guidance on accounting and financial management, business strategy, computers and information technology, customer service, human resources and more. Resources are added weekly, so bookmark www.nahb.org/biztools to go directly to these vital business management resources. Local and state home builders associations can link directly to www.nahb.org/biztools from their Web site and give their members instant access to these resources. It will make your HBA's Web site the place to go for the information and guidance that members need to succeed. NAHB Kit Gives Builders Back-to-Basics Tips in Cooling Market With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. Subscribe to NAHB’s Business of Building e/Source NAHB’s Business of Building e/Source is your monthly electronic guide to the hot issues and emerging trends in home building business management. You’ll find practical advice, tricks of the trade and sound business guidance — all delivered monthly, straight to your desktop, in a quick and easy-to-read format. Business of Building e/Source is available free to NAHB members and their employees. To subscribe, visit www.nahb.org/BoB on the Members Only side of the NAHB Web site. FEMA Retooling Flood Maps for Uniformity, But at What Price?
An ambitious plan to update the nation’s 92,222 Flood Insurance Rate Maps (FIRMs) is going slower than originally planned, but it is still on track to deliver a hurricane-sized hit to home builders in certain parts of the country. Launched five years ago, the Federal Emergency Management Administration’s (FEMA) Flood Map Modernization program was established to bring uniformity to the nation’s widely divergent floodplain measuring tools and “provide communities with flood maps and data that are more reliable, easier to use and more readily available than ever before,” according to FEMA’s Web site. The outcry from affected parties and the catastrophic flooding from Hurricanes Katrina and Wilma during the 2005 hurricane season led FEMA to retool its plan earlier this year and issue a Mid-Course Adjustment. While all maps eventually will be updated, FEMA is initially concentrating on creating detailed maps in those areas where both flood risk and population numbers are high. The agency also extended its deadline to 2010. Already, however, builders, property owners and others are concerned about the methodology that FEMA is using for the project and, subsequently, the accuracy of the maps. In Washington’s Skagit River area, a coalition of building industry representatives, other businesses and municipalities has sent FEMA a letter outlining its concerns. “We are aware that modernization of the nation’s flood maps was designed to provide for engineering updates, including the validation of existing flood data. Unfortunately, it has become clear to us that FEMA’s effort is woefully underfunded, resulting in shortcuts that have compromised the quality of the maps,” the letter said. “FEMA has sacrificed its primary goal of improving the quality of its maps, settling instead for little more than the digitization of its existing, inaccurate maps. This is indeed unfortunate.” The Retooling Process Generates Community Concerns FEMA’s National Flood Insurance Program (NFIP) plays a critical role in directing land use in flood-prone areas and managing the risk of flooding for residential properties. The FEMA maps, used to outline the geographical scope of the floodplain, are the basis for state and community management regulations, flood insurance premiums and determinations on whether property owners are required to obtain flood insurance. The maps also indicate which properties must comply with flood-related building requirements because all homes built within the so-called Special Flood Hazard Area (SFHA), or 100-year flood zone, must meet strict minimum elevations and building or renovation constraints. But as FEMA consultants move through communities to update the maps, some residents are surprised by the results. The project, known as the Multi-Year Flood Hazard Identification Plan, has drastically increased the amount of land designated as within the 100-year flood zone ― land identified as having a 1% chance of significant flooding in any given year, or a 26% chance of flooding during the life of a 30-year mortgage. According to preliminary maps for Lee County, Fla., for example, the number of lots that fall within the upgraded 100-year flood zone would increase by about 7,600. The increase is attributed to fact that the measuring equipment used today is more accurate than the equipment used during previous mapping projects. Mappers also have more meteorological history to draw upon. Meanwhile, the country’s population continues to grow, bringing more development and more impervious surfaces and increasing the likelihood of flooding. “Because flood hazards are dynamic and usually increase over time as development occurs, old maps tend to understate actual, existing flood hazards,” said Susan Asmus, staff vice president for Environmental and Regulatory Affairs at NAHB. “Consequently, we expect to continue to see increased flood elevations and expanded SFHAs in the updated maps. This not only extends the obligation for those with financing provided by a federally insured or licensed lending institution to obtain flood insurance, it also includes mandatory construction requirements,” Asmus said. “Overall development in floodplains is also under increasing scrutiny, as are increased mitigation requirements, because communities are being pressured to seek innovative ways to reduce and ameliorate public risks. As a result, builders and developers need to pay close attention to any changes to the extent of the floodplain, the base flood elevation and any revisions to community floodplain management plans. The impact can be very significant,” Asmus continued. Communities Urged to Participate in Mapping Process FEMA believes that full community support is integral to the map modernization process and is encouraging community participation. Each preliminary map will be made available for public comments to give citizens an opportunity to submit technical and scientific data to refute a specific mapped area, or to appeal the accuracy of the mapping process in general. Members of the home building industry can help to shape the final maps and should participate in the process. Once the appeals and protests are reviewed and map changes incorporated, FEMA will issue a Letter of Final Determination. Six months later, after the community adopts an ordinance approving the new Digital Flood Insurance Rate Map, the maps become effective, along with any new flood insurance requirements. As soon as the preliminary maps are released, however, they will be used in helping to determine requirements for construction and development projects. Local Jurisdictions Have Open, Public Processes NAHB is urging members of the home building and development community to stay in contact with local jurisdictions, Asmus said. “They should be following a fairly open and public process, in concert with FEMA, to update the maps.” FEMA has also published preliminary schedules to give a sense of when specific counties will come up for review (see www.FEMA.gov). FEMA Also Has Developed Stringent Criteria for Dams and Levees In addition to updating the flood insurance rate maps, Skagit County, the state of Washington, and the federal government are in the unique situation to consider increasing the flood storage capacity of the Baker River Hydroelectric Project, also know as the Baker Dam. Increasing the capacity of the dam could significantly decrease the base flood elevation (BFE) for the surrounding areas minimizing the extent of any changes to the rate map. The U.S. Army Corps of Engineers has suggested that the new BFE may be seven to eight feet higher than current elevations in many locations, said John Piazza, of Piazza Construction, one of the coalition leaders. “Think of the wheelchair ramps we’d have to build if we had to raise all the buildings by eight feet. Think of all the remodeling projects. Nothing would look the same,” he said. But if the Corps had the authority to supersede the local electric utility, which owns Baker Dam, and lower the water level when a storm was in the forecast, it might be able to prevent flooding from occurring in the first place, he said. “Right now, the excess water just goes over the top of the dam, and that’s the problem,” he said. In those areas of the country that rely on dams, levees and other significant structural mechanisms to control floodwaters, there is another initiative that has the potential to have a great impact: levee certification. Because of recent flooding in places that were thought to be protected by structural controls, FEMA is revisiting how levees are certified and has developed stringent criteria that must be met before any system can be considered to provide adequate protection from the 100-year flood, Asmus said. “FEMA discovered that a number of certified levees actually failed to meet that standard. Now, some of areas that are behind levees that were excluded from the SFHA may be included when new FIRMs are issued, which means flood insurance must be purchased and flood-proof construction measures followed,” she said. NAHB Is Developing a Flood Map Toolkit for HBAs, Members FEMA’s map modernization is complex and far reaching and will bring changes that, at this point, are difficult to assess. In response, NAHB is developing an HBA toolkit with resources that will enable local associations to help their members understand the impact of the new maps and fight unreasonable flood plain boundary decisions when necessary. The HBA flood map toolkit should be available in time for the International Builders' Show in February. Multifamily Stock Index Jumps Again in October
Apparently buoyed by a positive outlook for the rental apartment market, investors’ confidence soared last month in publicly held firms whose primary business involves apartments and condos, according to the latest NAHB Multifamily Stock Index (MFSI), released on Nov. 17. “A good economy that is creating jobs is good for the rental apartment market” said David Seiders, NAHB’s chief economist, who added that the multifamily rental market is also benefiting from a tight supply. “In the past two years, so many apartments were converted to condominiums that the number of units in the rental pool significantly decreased in places like Florida and California,” Seiders said. “So while there is softness in the condo market right now, multifamily housing in general is still an attractive asset class compared to other types of investments.” The index tracks the total returns (including capital gains and dividends) of 24 publicly traded firms including 20 Real Estate Investment Trusts (REITs) principally involved in owning, developing and managing multifamily housing. In October, the MFSI gained just shy of 277 points — a little more than 8% — to reach an index value of 3,648, up from 3,371 the month before, and more than 44% higher than a year ago. In comparison, the S&P 500 with dividends reinvested gained 3.25% in October and 17% higher than it was a year ago. The MFSI appears monthly in NAHB's electronic newsletter Multifamily Market Outlook. For more information about NAHB Multifamily, click here. For more information, e-mail Ann Marie Moriarty at NAHB, or call her at 800-368-5242 x8350. Enter Pillars to Be 'Best of the Best' in Multifamily
The application deadline for NAHB Multifamily’s 2007 Pillars of the Industry Awards program — which honors excellence in multifamily design, development, marketing and management — is Nov. 30. A showcase of innovation and future trends, Pillars is considered to be the most prestigious national awards competition in the multifamily housing industry. “The Pillars awards represent a perfect opportunity to promote the benefits of apartmetn and condo living, and for multifamily professionals to be recognized for their commitment to proving superior housing choices, both rental and for sale, for today's consumer," said Leonard Wood, director of Wood Partners, LLC and chairman of NAHB's Multifamily Leadership Board. The winners will be honored at a gala ceremony held in conjunction with NAHB Multifamily’s Pillars of the Industry Conference on April 11-13 at the Westin Diplomat Resort and Spa in Hollywood, Fla. For more information about the awards and to apply, visit www.nahb.org/pillarsawards, or e-mail Laura Zaner at NAHB, or call her at 800-368-5242 x8563. Save the Date for the Multifamily Pillars of the Industry Conference Attend the Multifamily Pillars of the Industry Conference, the premier industry event for the multifamily industry, on April 11-13 at the Westin Diplomat Resort and Spa in Hollywood, Fla.
Visit www.nahb.org/pillars for more information. Concrete Counters, Safety Lighting Top Trends in 2007Seven hot new trends are poised to make a big splash on the home improvement and remodeling scene in 2007, according to Case Design/Remodeling, Inc., the nation’s largest full-service remodeling company. Trends Case says remodelers can expect to see next year include:
‘Concrete At Home’ Available at BuilderBooks.com “Concrete At Home,” available through BuilderBooks.com, offers tips on incorporating architectural elements such as counters, sinks, columns and water pieces into the project. To view or purchase this publication online, click here, or call 800-223-2665.
Downturns: Fertile Ground for Great IdeasThe business cycle can be a wonderful, though painful, impetus for business improvement. Though we are unwilling to admit it at the time, for most of us, downturns are when we begin to formulate the next great idea — when we start a new business or reinvent our existing one. I have made a life out of residential general contracting for more than 30 years. I started out, as so many of us do, working with my hands, learning the trade and gradually having my contracting become more and more of a business. It is interesting to look back at where the “leaps” have occurred. During the early 1980s, the condominium and the small commercial market was booming. Then came the "tax reform” of 1986 that took away the credit we used to get for losing money. (Imagine that, our tax laws used to encourage us to invest in losing propositions by giving us credits and deductions against other income that more than compensated us for the losses.) Banks were caught with their assets down. Loans were called. The enormous real estate downturn and the overall economic recession of 1990-1992 were on. For my business in New England, this period was more akin to a depression. If, in the beginning, I had known how bad it eventually would get, I simply would have gone out of business. It would have been cheaper. As it was, however, it turned out to be a terrific opportunity for me to reinvent my business. Up until 1990, I had operated as a trade-based contracting firm. That is, most of the work was performed by in-house staff. We only subcontracted the licensed and specialty trades. Because we were almost self-contained, I had an enormous weekly payroll and an entire staff of tradesmen culturally tied to a work ethic (good and bad) that they had established. I was forced by lack of business to lay off 75% of my staff. It was a wrenching and expensive task, but it led to a whole new business model for F. H. Perry Builder. As we came out of recession in 1993, business started picking up and we needed new staff resources. Having laid off so many two years before, I was reluctant to hire again. So, we made the decision to become a management organization and subcontract all our trade work. This had three important effects:
It is, of course, unclear where the current downturn in the housing industry will take us. Fed by the “irrational exuberance” of the ‘90s, the low interest rates of the first half of the current decade, America’s obsession with and obedience to a “more and better” housing market, and those in power in Washington willing to put the country significantly back in debt, residential real estate has been the economic driver for 10 years. It remains to be seen whether the slowdown will become a recession, but I for one will welcome it if it comes ― the first opportunity of the next 30 years. Finley Perry is owner and president of F. H. Perry Builder, Inc., a Hopkinton, Mass. company he founded in 1975. The firm provides a broad range of design, construction, remodeling, management and maintenance services to residential clients throughout the Greater Boston area. Perry is a member of the board of directors of NAHB, past president of the Builders Association of Greater Boston (BAGB), the current president of the Home Builders Association of Massachusetts and is the NAHB state representative for Massachusetts. Finley is a former chair of the BAGB Remodelors™ Council, has been honored as Remodeler of the Year at the local and state level, received the Big 50 recognition from Remodeling Magazine in 1998, and his company was named one of the "Best 101 Companies to Work For" by Professional Builder magazine in 2002 and 2003. Last year he was honored as Builder of the Year by the Builders Association of Greater Boston. For more information, visit his Web site at www.fhperry.com, e-mail Perry, or call him at 508-435-3062. Home Depot Finds Aging Baby Boomers Want to Stay PutA majority of people who are 50 and older want to stay in their homes for the foreseeable future and plan improvements or a remodel during that time, according to a new study conducted by Focalyst for The Home Depot, a member of the National Council of the Housing Industry — The Supplier 100 of NAHB. The study, which gathered data from more than 30,000 consumers from the baby boom generation and older, is the largest and most comprehensive study ever conducted of this market, according to Home Depot. “This is a dynamic consumer group with a wide range of interests and needs, and we want to enable them to make the most of their home regardless of life stage,” said Roger Adams, the home improvement retailer’s vice president of marketing. Key home improvement findings for consumers 50 and older include:
In the kitchen:
"Boomers on the Horizon: Housing Preferences of the 55+ Market,” available through BuilderBooks.com, outlines characteristics of 55+ households and will show you the statistically significant differences in their preferences. You’ll learn the shopping practices, opinions and attitudes of these customers. Based on a study conducted by the NAHB Economics Department with funding from the 50+ Housing Council, this book provides convincing evifdence that boomers are on the verge of drastically changing the home building industry. The book is currently on sale, at 50% off. To view or purchase this publication online, click here, or call 800-223-2665.
Mark your calendar for the 2007 50+ Housing Symposium. The 2007 seminar will be held May 30-June 1 in Denver. For more information, visit www.nahb.org/build4boomers.
Flipping Houses Is Not as Easy as It Looks on TelevisionNow is probably not the best time for house flipping, but even in the recent boom market when houses in many locations were virtually selling themselves, amateurs who were convinced from watching too much reality television that buying the right property, fixing it up and selling it was the way to make a quick buck were probably guaranteeing more trouble for themselves than they had imagined, according to Scott Frank and Andy Heller, two executives who have succeeded in making residential real estate their sideline for 15 to 20 years. “Most people want to get into house flipping to make a quick buck,” said Heller. “It usually doesn’t take them long to find out that while that is possible, fast profits are the exception rather than the rule. And success rarely comes easy.” Frank and Heller, in their new book on the subject of regular people amassing real estate riches, provide five caveats about flipping:
Remodeling Puzzle Solvers Win PREP ExamsTwenty-eight puzzle solvers who competed successfully in the puzzle and scavenger hunt on the exhibit floor at the Remodeling Show in Chicago last month won free PREP exams. The PREP exam — a $195 value — is the first step towards the Certified Graduate Remodeler (CGR) designation, an exclusive and highly marketable professional designation that emphasizes business management skills as the key to a professional remodeling operation and sets CGR remodelers apart from their competition. PREP allows participants to apply their past professional experience and course attendance to earn credit towards their CGR designation. The PREP exam also outlines the necessary steps remaining to fulfill CGR requirements. PREP exams are offered throughout the year, both through local Remodelors® Councils and in conjunction with trade shows and conferences. For more information, visit www.nahb.org/designations; or call the Professional Designation Help Line at 800-368-5242 x8154, or via e-mail CGRinfo@nahb.com. Prep Success The following 28 members successfully took their PREP exams on Oct. 21:
Education Calendar
Learn More About The NAHB University of Housing Whether you’re new to the industry, hope to make your next career move or want to improve your company’s bottom line, The NAHB University of Housing can assist you in your educational pursuits. Visit www.nahb.org/education for a comprehensive listing of courses throughout the country. Be sure to visit often in order to view the most up-to-date information in your area. NAHB Kit Gives Builders Back-to-Basics Tips in Cooling Market With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar on the NAHB Web site. For assistance, call the NAHB Member Service Center at 800-368-5242. OSHA Considering Costlier Standard for Paints, ChemicalsNAHB is questioning a change to the hazard communication standard for paints, solvents and other chemicals under consideration by the Occupational Safety and Health Administration (OSHA) that, if enacted, would establish a new international standard that could be more costly to builders — without adding to worker safety. While NAHB believes the international standard potentially could give employers and employees quicker access to necessary health and safety information, the association questions whether the changes would actually increase worker safety over the OSHA rules already governing hazard communication. OSHA wants to use the Globally Harmonized System of Classification and Labeling Chemicals (GHS), created by an international body seeking more uniformity in the process. NAHB believes the international standard possibly could be confusing to employers and employees and impose additional training-related compliance costs and procedures on builders and other small business owners. In addition, NAHB questions whether using GHS would circumvent OSHA’s required method of hazard communication. NAHB sent a letter to OSHA last week outlining these concerns. The Occupational Safety and Health (OSH) Act “is very explicit about the hazard determination process,” the NAHB letter said. “The standard must protect workers, but it also must be feasible and it must be based on evidence, facts, research and experience.” Under the OSH Act, OSHA is required to publish a determination in the Federal Register, accept public comments and then create the final rule. GHS does not use the same process, the letter pointed out. “NAHB is concerned that OSHA will regard the GHS as fact or evidence, then tweak the existing OSHA regulations to conform to GHS. The opinions of an international body may interest OSHA or National Institute of Occupational Safety and Health (NIOSH) staff, and they may stimulate research to shed light on whether OSHA should adopt such a standard as GHS has done, but they do not constitute evidence,” it said. NAHB members currently rely on Material Safety Data Sheets from manufacturers and sellers to help them determine the hazards of adhesives, sealants, paints, lubricants and other chemicals common to the home building process. These data sheets meet OSHA requirements and are uniformly accepted and understood in the United States. Using the GHS would “change the established scheme of data sheets and labels,” using unfamiliar pictograms “which may impair the safety of workers,” the letter said. OSHA’s announcement does not claim that GHS will improve worker safety. In an example OSHA provided to illustrate the new system, “the pictogram is the same for each category of carcinogenicity but uses different signal words (‘Danger’ vs. ‘Warning’) and different hazard statements (‘May Cause Cancer’ vs. ‘Suspected of Causing Cancer’). With this information, it is not clear what the difference in the hazard is and what action an employer or employee must take,” the letter pointed out. “Procedures that work in other countries on other continents may not work well here because of cultural differences or differences in established work practices and habits . . . . OSHA has no authority to incorporate other countries’ standards by reference. There is no part of the law — at least OSHA cites none — that mandates OSHA to harmonize its regulations with those of other nations. OSHA’s mandate is ‘To assure safe and healthful working conditions for working men and women,’ which is to be accomplished ‘by authorizing enforcement of the standards developed under the Act.’” “Hazard communication compliance assistance and training materials should provide clear and concise guidance that will aid residential construction employers in providing effective Hazard Communication information to their employees [and] emphasize the most important information critical to protecting employees/workers from hazardous chemicals . . . in a manner that easily understandable and relevant,” the letter said. The new system, the letter concludes, does not fit the bill. OSHA will gather responses and decide what modifications are necessary in the rule before proceeding. Protect Your Workers and Your Profits The “Jobsite Safety Video,” available through BuilderBooks.com, provides an overview of the key safety issues residential builders and workers need to focus on to reduce accidents and injuries. Based on the “NAHB-OSHA Jobsite Safety Handbook,” this DVD is intended to be used as part of an essential residential construction safety-training program and includes two 20-minute videos. To view or purchase this DVD online, click here, or call 800-223-2665. Panels Knock Up to Five Weeks Off Building ScheduleSecond-generation Austin, Texas carpenter and small custom builder Fred Ballard says that he doesn’t have to worry about warped walls, mold issues or termites now that he’s using steel structured insulated panels (SIPs). “The first home we built with SIPs had a 20-foot top plate,” Ballard said in an August case study by the Partnership for Advancing Technology in Housing (PATH). “After a few hours of connecting panels, it was amazing how consistent and absolutely straight the walls were. Even better, they can knock three to five weeks off the framing and insulation stage of construction.” “Steel SIPs are also able to withstand extreme weather conditions during construction,” he said. “They’re waterproof, which means we build more houses since our construction schedule is less dependent on the seasons. Our homes are engineered to withstand hurricane-force winds, making them safer as well.” Specializing in residential, multifamily and light commercial projects, Ballard’s company, Blue Horse Building and Design, builds about five homes a year, ranging in price from $650,000 to $1.4 million, and he has built more than 20 homes using steel SIPs since 2001. SIPs are made from a thick layer of polystyrene or polyurethane foam sandwiched between two layers of oriented strand board, plywood, light-gauge steel studs or fiber cement. The result is an engineered panel that provides structural framing, insulation and exterior sheathing in a solid, one-piece component. Arriving precut to the job site, the panels can be rapidly assembled by workers without extensive training. A Better Thermal Envelope SIPs add between 5% to 10% of the overall cost of construction, he says, which can be offset by monthly energy savings of 30% to 50% from the better thermal building envelope the technique provides. The investment in steel SIP construction is usually recouped within a 10-year period, he says. Steel SIPs can be used for floors, interior and exterior walls, ceilings and roofs, according to PATH. Manufacturers of steel SIPs usually produce specific widths, so designing with modular increments corresponding to stock panel widths is recommended. Stock panels are typically 4 feet wide and range from 8 to 12 feet high. Even if the panels are cut to fit one wall, the remaining portion can usually be used in another location to minimize waste. Ballard uses TransconSteel UltraFrame panels that are made with Delta Studs, a patented lightweight steel framing system with the same geometric profile as conventional steel stud C-channels. A moisture-cured adhesive is then used to glue expanded polystyrene foam between the Delta Studs. The foam has a fire retardant built into its cellular structure and also includes a Borate treatment to keep pests from nesting in the walls. The panels come in thicknesses of 3-1/2 and 5-1/2 inches with light gauge (24 ga.) Delta Studs at either 16 inches or 24 inches on center, he said. He uses both thicknesses, but leans more to the thicker panels “to create a more satisfying-looking wall with deeper window jambs and increased sound attenuation.” As Easy as Building With Legos “We prefer SIPs with pre-cut openings, which include headers and require accurate door and window measurements to minimize cut-out waste,” he said. “The alternative is to field cut openings and deal with the extra waste. Even with precut panels, unforeseen plan changes are accommodated fairly easily. There’s nothing that can happen in the field that’s unfixable.” Ballard said he sometimes orders a few extra panels because if the need for an additional panel arises it won’t be available at a typical home improvement store and could cause a delay. Most SIPs weigh between 30 and 80 pounds, requiring only two men to position them, and Ballard usually has three to five crew members on site to install the panels. “As long as your crew knows square, level and plumb, they can install the panels just fine,” he said. “A typical house, around 2,000 square feet, takes about three to four days to get the SIP walls and roof up.” “As with any home, but even more so when using SIPs, it’s really important to make sure that the slab is formed and poured properly to ensure straight edges and a level finished surface,” he said. “We measure the slab, lay the bottom track out, much the same way we would lay out a bottom plate for a wood-framed wall, and then use the anchor bolts to attach the track to the slab shortly after the concrete has set up. “I like to hang the track off the slab 1/2 inch to create a drip ledge even though we also have seal underneath the track. Once the bottom track is set in place, we start at a building corner and set two corner panels into the track, joining them with a sealing caulk adhesive before fastening them together. It’s almost like building with Legos — it’s truly that easy. Most SIPs have chases already pre-made for electrical and plumbing, and training trades usually involves a brief explanation, said Ballard. “On interior wall surfaces, standard gypsum board can be attached directly to panels containing electrical and plumbing chases,” he said. “Otherwise, drywall is attached to the hat channels on furred walls and finished with conventional tape and mud. We frame interior partition walls conventionally with either finger-jointed wood studs or light-gauge steel and insulated with either fiberglass batts or spray-applied foam. For fireplaces and chimney shafts, we use Isokern systems that ate modular masonry units made from volcanic pumice that can be installed in under a day.” Illegal Immigrant Charges Against Home Builder DroppedA federal judge dismissed all charges against five employees of Fischer Homes, based in Crestview Hills, Ky., for knowingly allowing illegal immigrants to work on their job sites. Federal agents raided several of the company’s work sites in May and subsequently indicted five Fischer Homes supervisors, charging them with conspiring to harbor illegal aliens. The charges were dropped on Nov. 14, just two weeks before the case was to go to court, when U.S. District Court Judge David Bunning refused the government's request to delay the trial after Nelson Trejo, a key witness, went missing. The charges could be reinstated if Trejo is located. The government's case centered on whether the Fischer Homes supervisors should be held responsible for the actions of subcontractors — Trejo Brothers Construction and Robert Pratt. It was alleged that Trejo supplied illegal workers to Pratt, one of 30 companies that provided framing services to Fischer Homes. Fischer Homes notes that Pratt's company, like each of the more than 450 independent companies with whom Fischer Homes does business, signed a comprehensive contract that warrants and represents that it would only use workers eligible to work in the U.S. After the district court dismissed the charges, Henry Fischer, CEO of Fischer Homes, issued the following statement: "Fischer Homes is pleased with the government's decision to dismiss all charges against its five associates. Yesterday was a great day for them and their families. From the onset, our associates maintained their innocence and Fischer Homes fully supported their decision to prove their innocence at trial.” “When the case was brought against our associates, our nation was entrenched in a national immigration debate,” Fischer continued. “I firmly believe that our company unfairly fell victim to this political debate. I am confident that Fischer Homes has in the past and will in the future continue to operate with the highest legal and ethical standards. It is our hope that this ordeal is finally behind us and we can now focus on our core mission of satisfying our customers and building great homes.” For more information, e-mail David Crump, director of legal research at NAHB, or call him at 800-368-5242 x8491. Settlement Proposed for Steel Tubing LawsuitBuilders may receive questions from home owners about a proposed settlement of a class action lawsuit involving corrugated stainless steel tubing (CSST) that has been used in residential, commercial and industrial buildings after Sept. 5, 2006. The tubing is used to transmit gas. According to the plaintiffs in the case, tubing manufactured by Titeflex, Ward, OmegaFlex or Parker Hannifin poses an unreasonable risk of fire from lightning strikes. The tubing in question is stamped with one of the manufacturers’ marks.
CSST is a continuous, flexible, stainless steel pipe that typically is covered with a yellow plastic coating. It is usually installed along floor joists, above basements, in attic spaces or connected to exposed appliances such as water heaters. The suit alleges that the tubing is not thick enough to prevent damage in the event of a lightning strike and that the manufacturers have failed to warn consumers about this alleged danger. Under the proposed settlement, those who qualify ― which includes home owners ― will receive payment vouchers of between $200 and $2,000 to defray the cost of buying and installing a lightning protection system, or between $75 and $160 to install a bonding and grounding system. Participants who plan to make a claim must submit a claim form to the CSST Settlement Administrator by Sept. 5, 2007. A hearing to determine whether the proposed settlement is fair, reasonable and adequate will be held in the Circuit Court of Clark County, Ark. on Feb. 1. For more information, visit www.csstsettlement.com, call the CSST Settlement Administrator at 800-420-2916, or write the administrator at P.O. Box 4349; Portland, Ore. 97208-4349. Business Leaders Help Florida Teachers Buy HomesAn innovative local program established by a group of business leaders in Southwest Florida to provide $1.2 million in financial assistance to help qualified public school teachers and educators at colleges and universities in Lee County buy homes is being championed as a model by educational leaders and statewide elected officials. Working with the Lee County Housing Development Corporation (LCHDC), the Bonita Bay Group and its chairman, David Lucas, have contracted to purchase 60 new condominiums in the Osprey Cove Community on Nov. 22. The goal of the private partnership is then to convey the units to qualified purchasers as soon as possible. The partnership’s first goal is to provide interest-free loans for downpayment assistance with no repayment required until the property is sold. Recovery of the downpayment assistance will be used to help another teacher buy the property at an affordable price, preserving the property for subsequent teachers in perpetuity. The group is also working with the LCHDC to obtain additional funds through various sources for teachers that quality for federal and state funds to further underwrite the purchase prices to ensure that they are affordable. Second, the partnership will work with local lenders to obtain mortgage financing at reduced rates. To be eligible for the program, the annual family income of teachers can be no higher than $80,000. The educators who are chosen will receive a minimum of $10,000 in financial assistance from partnership grants to potentially $50,000 for a family who is eligible for additional state and federal grants. The community partners include Bonita Bay Group, Chico’s Charities, Oswald-Trippe & Company, Inc., the Southwest Florida Community Foundation, Gates-McVey Companies, Colonial Bank, Steve and Kathy Shimp, and Alan Freeman. “I am inspired by the generosity and vision of the leadership of these outstanding community partners and appreciate their commitment to addressing the critical workforce housing crisis facing our region and state," said Republican state Rep. Mike Davis from Naples. He sponsored the $637 million bill to promote affordable housing for essential public workers that was passed in the state legislature this year. “Giving back to the community has always been one of our company’s core business values and supporting the critically important work being done by teachers is our privilege,” said Lucas. “I have been pleased to see how quickly our community partners joined this effort to solve a critical issue facing our community.” Participants in the program agree to deed and resale restrictions that require them to give LCHDC the right of first refusal to purchase their condo when they are ready to sell. They also agree that they are entitled to receive only a percentage of the appreciation on the home when it is sold; the remaining equity will be retained by the partnership and used to ensure that the unit remains available at an affordable price for the next teacher. For information on workforce housing issues, e-mail Blake Smith at NAHB, or call him at 800-368-5242 x8583. Student Successes Bolster Growth of Training Programs
As more students successfully complete the Home Builders Institute’s (HBI) various training programs, learn news skills and join the home building industry’s labor force, their success is also contributing to the success and expansion of HBI’s training programs. HBI, the workforce development arm of NAHB, oversees such training programs as Project CRAFT/Nashville, one of 10 programs funded by the U.S. Department of Labor’s Reintegration of Youth Offenders as an Accountability Based Transition to Employment Model, and Project TRADE (Training, Restitution, Apprenticeship Development Employment), a program designed to train and place adult ex-offenders. Success at Project CRAFT/Nashville
Antwon Scott, a graduate of Project CRAFT/Nashville, succeeded through commitment and perseverance. Though he began the program in May 2005, he had to leave one month before graduating for financial reasons. He eventually returned to the program, however, out of a desire to learn his trade and build a career in the construction industry. After successfully completing his remaining requirements, Scott was hired by Affinity Stone of Nashville, Tenn., earning $11 an hour as an installer. His employer took notice of his work ethic, attitude and skills and gave him additional responsibilities and a hefty pay raise. Today, nearly 25% of Scott’s work is outside of Tennessee and, at times, he supervises as many as three workers. “When I hired Antwon, he assured me that I would not be disappointed and he was absolutely right,” said Steve Cress, owner of Affinity Stone. “He is a hard worker, always on time and well liked by the entire staff. I hope we can hire more HBI students like him.” HBI’s Workforce Training and Employment (WTE) department trains hundreds of students like Scott each year. WTE currently operates 12 training programs in Florida, Colorado, South Carolina, Louisiana and Tennessee. Newest ProjectTRADE Trains Female Offenders HBI newest ProjectTRADE program trains female offenders at the Pinellas County Jail in St. Petersburg, Fla. and is the first such program for female offenders. Sixteen students are enrolled. The program began Nov. 9, and when students complete the 12 to 16 weeks of training required, they will earn HBI’s industry-sponsored Pre-Apprenticeship Certificate Training (PACT) certificate. “Project TRADE has been a great program for both its students and our industry,” said Bill Paul, HBI vice chairman as well as president of Phoenix Construction and Development in Tampa, Fla. “We need to have programs like this one to reach people who can potentially increase the ranks of the home building trades. Plus, it really does change lives.” For more information on WTE programs, e-mail Dennis Torbett at HBI, or call him at 800-795-7955x 8908. Software Lets Owners Check Their Business at a Glance
Sage Software is now shipping its Sage Master Builder Version 12, with new reporting capabilities via an Executive Dashboard that gives business owners the ability to quickly check the overall health of their company at a glance, with instant access to information such as cash balance, cash position, job status and change orders. The new version also offers an improved, faster licensing process. With a Construction and Real Estate Solutions office in Beaverton, Ore., Sage is a member of the National Council of the Housing Industry — The Supplier 100 of NAHB. Sage Software is an award-winning, fully integrated construction business management solution that links key areas of a construction company’s business — estimating, production/project management, accounting, analysis and reporting — into one integrated process. Since acquiring the product from Intuit in May, Sage Software has reengineered Master Builder to maintain all of its features and functionality while improving its performance and adding a new key reporting tool that meets a long-standing need of existing clients. “This release paves the way for us to continue to add value to the latest addition to our portfolio of market-leading products for the construction and real estate industries, immediately improving our Master Builder clients’ return on investment,” said John Geffel, the senior vice president and general manager of the company’s Construction and Real Estate Division. Sage Master Builder Version 12 is now available from authorized Sage Master Builder business partners. For pricing and to locate a Sage Master Builder business partner, call 800-628-6583, or log on to www.sagemasterbuilder.com. This feature is solely for educational and informational purposes. Nothing on this page should be construed as policy, an endorsement, warranty or guaranty by the National Association of Home Builders of the featured product or the product manufacturer. The National Association of Home Builders expressly disclaims any responsibility for any damages arising from the use, application or reliance on any information contained on this page. NAHB-Produced Programs on HGTV & DIY This WeekThe NAHB Production Gro | |||||||||||||||||||||||||||||||||||||||||||||||||||