Nation's Building News Online: June 23, 2008Print All Articles Text Version |
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Worst Housing Slump in 50 Years Has Not Run Its CourseThe current housing downturn is shaping up to be the worst in 50 years, and it has not yet run its full course, according to the annual “State of the Nation’s Housing" report issued on June 23 by the Joint Center for Housing Studies of Harvard University. “Despite product cuts rivaling those in the 1978-1982 downturn, the number of vacant for-sale homes on the market did not shrink in the first quarter of 2008,” the report says. “The weak economy, tight credit and concerns over whether house prices had bottomed out continued to suppress demand and delay the absorption of excess units,” according to the study, which marks the 20th year that Harvard has been reporting on housing in the U.S. “Until this oversupply is reduced, housing markets will not mend,” the study warns. While Harvard’s housing analysts remain bullish about the longer term prospects for housing demand, currently the industry faces what is described as “a rocky road ahead.” Over the next decade, demand fundamentals should support average annual completions of more than 1.9 million units, including manufactured homes, the study says. But “the housing market must first work off the one million or more excess units that were vacant and for sale or temporarily taken off the market at the beginning of 2008,” a process that could trim demand to an annual average of 1.8 million units in the decade ahead. A severe economic recession could make today’s situation worse, by further reducing household formation rates and forcing more households to double up, dampening immigration, keeping older units in the supply longer and reducing sales of second homes. In the case of a mild downturn, which appears to be what the nation is now experiencing and is the consensus forecast for a majority of economists, “the fundamentals of demand are likely to drive a strong rebound in housing once prices bottom out and the economy begins to recover.” However, “with credit markets in such disarray, the for-sale housing inventory at record levels and only small declines in interest rates, emerging from today’s housing slump could take some time,” the report cautions. The good news is that the industry has made some progress in working down its inventory of new single-family homes, which has declined from a peak of more than 570,000 units in mid-2006 to less than 500,000 early this year. The bad news is that a precipitous drop in home sales has pushed the inventory to an 11-month supply, the highest it has been since the late 1970s. Existing single-family home sales haven’t fared much better, with the supply “rocketing” to 10.7 months by this April. “With a supply of more than six months considered a buyer’s market, homes for sale can languish for some time, inviting lowball offers that motivated sellers eventually accept,” the report says. “Since home owners often resist selling at below-peak prices, adjustments in many markets have been larger on the new home than on the existing home side. Nonetheless, most current owners are unwilling to accept lower prices even if doing so enables them to buy new homes at more deeply discounted prices.” House prices will remain under pressure until the number of vacant for-sale units on the market or being held off the market falls significantly. From 2005 to 2007, vacant single-family homes for sale were up more than 45%, according to Census Bureau figures, and vacant units being held off the market were up almost 10%. The report says that working off today’s oversupply of homes will require some combination of the following:
Demand has not been stimulated by declining mortgage interest rates as much as in past downturns, the study notes. “In fact, after adjusting for points, real 30-year fixed mortgage interest rates were down marginally some 24 months after housing starts peaked. At the same point in previous cycles, real mortgage rates had fallen anywhere from 0.5 to 6.8 percentage points.” Other factors putting more prospective buyers on the sidelines than in the past include a dramatic drop in home prices and the highest foreclosure rates since recordkeeping began in 1974. “All of these factors may make this downturn more protracted than usual, and credit market woes may slow the eventual rebound,” the report warns. Spending on home improvements “will also come under increasing pressure because it is sensitive to both credit availability and house price appreciation.” Floor Plans: A Union of Form, Function and WarehousesDeveloped by:
Architect:
Union Row in the heart of the historic and rapidly-developing “U Street Corridor” in Washington, D.C. was created to attract hip, urban home buyers. A mixture of old and new, Union Row is actually comprised of two very distinct communities — The Warehouses, an adaptive reuse of two two-story warehouses; and The Flats, a new, nine-story building of loft-style condominiums that covers a city block and boasts three different facades to blend in with its surrounding neighborhood. Union Row was named the best new loft community in the 2008 Pillars of the Industry Awards honoring the best in multifamily construction.
Many of the condominiums in The Warehouses also feature lofts, grade-level garages and terraces. Developer PN Hoffman, which has been developing upscale condominium residences and mixed-use properties in the Washington, D.C. area since 1993, also added a third level to The Warehouses by building three-level townhouses above the historic warehouses. The units in The Warehouses feature a variety of ceiling heights and multiple living levels.
The Flats boasts a residents’ lounge, three underground levels of parking and a courtyard with a waterfall, while the building is cantilevered over the top of one of Washington, D.C.’s subway lines.
Union Row is within two blocks of the nearest subway stop and within a block of a city bus stop and is part of a vibrant streetscape of shops, cafes, restaurants and even an organic market.
Congress Urged to Pass Housing Stimulus Bill NowNAHB has initiated an all-out effort to get Congress to pass badly needed stimulus legislation that will help stabilize the economy and housing market and assist millions of current and potential home owners. A central component of this legislation is a temporary home buyer tax credit to stimulate home purchases by qualified first-time buyers. With the goal of urging lawmakers to act before their July 4th recess, NAHB is waging its effort on several fronts, including a grassroots lobbying initiative among the association’s 235,000 members and an ongoing national advertising campaign. Among NAHB’s more visible efforts are this week’s placement of “An Open Letter to Congress” ad in The Washington Post and USA Today and two of the most widely read publications on Capitol Hill, Roll Call and Politico. Under the headline “A Time for Leadership,” NAHB President and West Virginia home builder Sandra Dunn writes that, “The landmark housing stimulus legislation now before both the House and Senate would help end the downward housing spiral that is the biggest threat to the health of our economy. Housing is in the grips of the most crippling downturn since the Great Depression, consumer confidence has plunged, economic growth has slowed to a crawl and unemployment lines are growing longer. This is not the time for demagoguery or partisanship. It is the time for flexibility and compromise. It is the time for action.” Legislation currently being debated in Congress includes the all-important temporary home buyer tax credit, which would stimulate home buying and reduce excess supply in housing markets. NAHB Executive Vice President and CEO Jerry Howard calls this element “the best stimulative measure — it will get buyers off the fence, shore up home prices and halt the downward spiral in the housing market.” The legislation also includes several other provisions to help revive housing and the economy, including FHA modernization, reform of housing government sponsored enterprises Fannie Mae and Freddie Mac, expansion of the mortgage revenue bond program and enhancement of the Low Income Housing Tax Credit to help spur production of much needed affordable rental housing. To view the letter to Congress, visit: www.nahb.org/openletter. South New Jersey Builders Not Dogged by Big Home InventoryResponding to the concerns of prospective buyers about conditions in the local real estate market, the Builders League of South Jersey (BLSJ) launched a public information campaign in early May, with a new www.buynewitstime.com Web site as its centerpiece to tell consumers why waiting to buy might not be such a bright idea. “While New Jersey is in the middle of a market correction after 15 years of home prices steadily rising, South Jersey is not experiencing the woes faced by other areas of the country,” said Bob Brown, the association’s president. “The bad news on the national housing market, however, is feeding consumers’ fears about investing in a home and their future.” While a large surplus of homes has contributed to the downturn in many parts of the country, densely-populated southern New Jersey doesn’t have a large outstanding inventory, according to Brown, because there isn’t a lot of vacant land to develop and what land is available is saddled by difficult land-use regulations. The selection of housing available to buyers today is larger than it will be in the future, he said. “Coupled with an increase in the value-added incentives being offered by many new home builders, the market is perfect for building a new home today,” Brown said. “It’s not going to last. In three or four years, those who waited to buy may regret it.” In video and audio formats, the association’s multi-media Web site includes interviews with housing experts and builders, answers to common buyer questions and testimonials from recent home buyers. The site also provides contact information for 90 new home builders, with Web site links that make it easy for shoppers to see what they have to offer. “It’s given us an opportunity to do something we’ve never done before — let home buyers tell their stories, which can be more compelling than someone with a vested interest in a sale,” said Mary Danielsen, director of public information for the BLSJ. The site is also designed to convey the facts to the media. “One of the major local papers has next to no one in their business department, and now they are just picking up national wire stories about housing,” said Danielsen. “So this is a way we can get in front of them on a regular basis with facts showing that our market is very different, even from those just 30 miles up the road.” The BLSJ has promoted the site with regional ads on move.com and the Web sites and print editions of several local newspapers. It has asked its members to put the site URL and logo on their advertisements, Web sites and roadside signs around their developments. Danielsen said the association has used content from NAHB’s Myth Buster resources on the site. “We also provided Myth Buster materials directly to our members’ sales teams, then showed them how to use the information internally and incorporate it into their discussions with buyers,” she said. Future plans for the Web site include adding information and interviews with experts about mortgage financing and pricing an existing home to sell. Go to www.nahb.org/mythbuster to access the continuously-updated resources and read more Myth Buster success stories about locals around the country. For more information, e-mail Gwyn Donohue at NAHB, or call her at 800-368-5242 x8447. Higher Energy Prices Threatening Home BuildersDevelopers’ costs are escalating not only because the prices of raw materials are soaring, but also because the energy needed to manufacture and transport the goods is rising. “Still-robust global demand and speculation in some commodity markets is driving up the cost of building a home at the same time house prices are falling,” said Mark Zandi, chief economist at Moody’s Economy.com. Declines in lumber and drywall prices, coupled with a construction labor surplus, have helped mitigate the effects of rising costs, but oil is contributing mightily to higher costs for materials. Oil is an ingredient in asphalt for roads in developments and for roof shingles, plastic used in siding and other products, vinyl flooring, windows, and paint and other coatings. For example, some builders are reporting that paint prices have nearly doubled in the last year — including increased costs of oil-based additives and energy surcharges. The price of cement “is rising steadily because it is energy intensive — especially the cost of moving it,” said Bernard Markstein, an economist at NAHB. While demand for cement in the U.S. has fallen during the last year, more of what is being produced is being sent abroad, especially to China for its booming commercial construction market, Markstein said. (www.philly.com)
House Hunting in the Age of $4 GasIf gas prices continue their inexorable rise, commuting costs will become a critical factor in where people choose to live, according to transit specialists and economists. Most will probably not take as radical a step as relocating; instead, the next time they have to move, for a job or a bigger house, proximity to work or mass transit will be a much bigger consideration. “When gas was cheap, it was financially possible to live out in the exurbs and the outer reaches of the suburban ring and commute in,” said Mark Zandi, chief economist for Moody’s Economy.com. “That’s where we’ll see the largest impact from the surge of commuting costs.” In a survey of its agents by Coldwell Banker, 81% said they are seeing more interest from prospective buyers in urban living because of high gasoline prices. Fifty-four percent said access to public transportation is more important to their clients now. A May study by CEOs for Cities, a research organization supported by government and business, said rising gas prices would push new housing developments closer to the urban core in Boston, Seattle and other U.S. cities, while suburbs with few transit options will lose value. “The market for higher-density development in close-in neighborhoods is likely to grow stronger,” the report said. (www.boston.com)
New Crisis Threatens Healthy BanksFollowing last year, when soaring mortgage defaults sparked a crisis of confidence in the financial system, increasing struggles by consumers and businesses to make payments on a variety of loans are setting off a new wave of trouble in the financial sector that is battering even institutions that had steered clear of subprime loans. The root of the problems is the downturn in the broader economy, with consumers strapped for cash with job losses growing and retail sales falling. “We are not finished with the mortgage problem, but you are starting to see increased delinquencies in other forms of consumer debt, “ said Paul Kasriel, an economist at Northern Trust Securities. “We are in the eye of the hurricane. We had the first wave of the credit crisis, and it was damaging. But there’s another wave coming, and it’s likely to be as destructive.” The institutions most at risk in this new phase of the credit crisis are regional and local banks that are key drivers of economic activity in communities across the country. Without them, consumers would lose a source of personal loans and small businesses would struggle to stay afloat. Construction companies often can’t finance local projects without these banks. (www.washingtonpost.com)
Builders Try New Ways to Fuel MarketLast winter, many builders said that the days of huge incentives of $50,000 and more were numbered because the deals had gotten out of control. So incentives seem to be taking a more imaginative approach. Kimball Hill Homes is offering $50 gas cards to those who go to its Web site and pre-qualify for a loan with its mortgage subsidiary. The gas certificate can be printed out and traded in for the card when visiting one of the builder’s subdivisions. The site is also offering the gas to agents who bring in clients. One builder in the Village of Manhattan, Crescenzo Construction Inc., is offering to pay the electric bills of home buyers in its Bench’s Farm development for up to $150 a month for 10 years. Wiseman Hughes Enterprises will pay moving expenses, an agent’s commission and a special-service tax, among its mix-and-match options. A San Diego real estate brokerage, Wellsford Realty, is offering to rebate one-third of its commission to same-sex clients getting married, who can use the money “to celebrate their wedding day or plan that perfect honeymoon.” (www.chicagotribune.com) Real Estate Agents Go After Gen YTo connect with 20-something members of Generation Y, real estate agents are unleashing a new breed of marketing tactics, from posting homes for sale on YouTube to building Facebook pages. Edina Realty in Edina, Minn. has begun a major drive to reach out to Gen Y and Gen Xers. It is shifting its spending to outlets that reach younger adults. The company stopped advertising property listings in standard print media. Instead, money is going toward electronic billboards, ads outside elevators doors and bus shelters, and viral marketing campaigns, such as spots on YouTube, which they hope will generate buzz with young buyers. Potential buyers can also receive information on homes for sale via text message, and Edina’s agents are using Facebook to reach out to potential clients. These agents also blog and use other social-networking sites such as MySpace. Real estate agents determined to reach younger adults are also trying to hire younger agents who may feel more comfortable in using Web technology to reach buyers than baby boomers do. A 2007 report by Deloitte Research found a troubling gap between the number of younger real estate agents and the growing buying potential of Gen Y home buyers, and warned that real estate agencies that want to survive must focus on bringing more Gen Y agents into their fold. (www.usatoday.com)
FHA Calls for an End to Seller-Funded Downpayment CharitiesThe Federal Housing Administration wants to pull the plug on downpayment “gift” programs in which all or most of a home buyer’s equity stake comes from the seller, funneled through a third party. Under these programs, third-party intermediaries, typically tax-exempt charitable organizations that advertise their specialty, send a contribution to the organization roughly equal to the money the buyer needs, pocketing a fee of $400 to $600 and passing along the balance for the downpayment. Although rare in the nongovernmental loan market, these deals have accounted for more than one-third of total FHA volume in recent years, cutting the minimum 3% downpayent required to zero. The FHA says these arrangements result in excessive defaults, foreclosures and losses so severe that they threaten the solvency of the agency’s insurance funds. On top of that, in the past year the IRS has revoked the tax-exempt status of 31 nonprofit organizations that specialize in downpayment-gift programs. (www.washingtonpost.com)
Housing Starts Lose More Ground in MayProviding the latest evidence of the ongoing downturn in the nation’s housing market, the U.S. Commerce Department reported on June 17 that new-home starts declined 3.3% to a seasonally adjusted annual rate of 975,000 units in May, their lowest level since March of 1991. “Builders are doing the right thing by slowing new production in view of the very weak demand in the market and reluctance of prospective buyers to move forward with a purchase at this time,” said NAHB President Sandy Dunn. “Production of new homes won’t pick up until the demand side does, and it’s going to take some decisive policy action on the federal level for that to happen,” said Dunn. “It’s high time for Congress to move on a housing stimulus package that will substantially bolster our weakened national economy.” “This clearly shows that the housing downswing is still underway, with systematic declines in both housing starts and building permits for May,” said NAHB Chief Economist David Seiders. “It also squares with the results of our own builder surveys, which indicate that builders recognize the fundamental weakness on the demand side of the market and are taking the appropriate steps to limit new inventory,” he said. “Evidence suggests that some pent-up demand is there, but Congress and the Administration need to do what they can to help release it. A temporary home buyer tax credit would be just the incentive that many qualified buyers need to go forward with their homeownership plans.” Single-family starts fell 1% to an annual rate of 674,000 units in May, their lowest since January of 1991. Multifamily starts — which typically display significant month-to-month volatility — receded 8% to a 301,000-unit yearly rate following a substantial uptick in April. Regionally, housing starts fell 4.4% in the South, 10.3% in the West and 25% in the Midwest. On the heels of a large decline in April, starts surged 61.5% in the Northeast, a questionable number that is likely to be revised downward next month. Building permits, which can be an indicator of future building activity, were down 1.3% overall in May to a seasonally adjusted annual rate of 969,000 units. Single-family permits fell 4% to a rate of 623,000 units, while multifamily permits rose 3.9% to 346,000 units. Regionally, issuance of building permits was mixed in May, with the Midwest and South reporting declines of 7.6% and 8.6%, respectively, and the West and Northeast showing respective gains of 4.1% and 30.6%. Want to Know the Housing Forecast for the Top 100 Metros? Find out in HousingEconomic.com’s 2008 to 2009 Metro Forecast (free preview). Get the metro forecast with in-depth analysis, overviews and downloadable Excel tables. To learn more, visit www.HousingEconomics.com. Free NAHB Kit Gives Builders Back-to-Basics Tips to Navigate the Slowdown What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn. To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here. 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. Useful Links to Monitor Economic and Housing TrendsThe following are links to useful information from government agencies and NAHB that will enable you to monitor the housing market. To access the latest information available, simply click the links.
Want to Know the Housing Forecast for the Top 100 Metros? Find out in HousingEconomic.com’s 2008 to 2009 Metro Forecast (free preview). Get the metro forecast with in-depth analysis, overviews and downloadable Excel tables. To learn more, visit www.HousingEconomics.com.
Free NAHB Kit Gives Builders Back-to-Basics Tips to Navigate the Slowdown What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn. To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here. 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’ Tip: Simple Drying Racks for Painted Trim Work
I especially dislike the chore when it comes to new construction where I consider it practically unnecessary. My crews paint or stain virtually all the woodwork and trim before we put it up. This policy has its drawbacks, however. It requires us to find a place to lay out all those hundreds and hundreds of linear feet of baseboard, casing and crown moldings while they dry. For years, we had to wait for good weather. Then we’d set up every sawhorse, stepladder and milk crate we could find along with a few dozen 1x3s for crossbars. We’d paint or stain outside, then spend a lot of time picking mosquitoes and black flies from the dried finish. Yuck. Last autumn, I got a bit behind schedule and wound up finishing a major kitchen project in November. Staining the wainscoting, chair rails, baseboards and crown moldings outside was not possible. Already, six inches of snow covered the ground and my next window of good weather was about seven months in the future. The solution that I came up with was so laughably simple that I nearly smacked myself on the back of the head for not having thought of it years ago:
Although the racks didn’t cost much, I didn’t toss them at the end of the job. Instead, I wrapped them into bundles and put them in the shed. They’re never there for long, though. If I charged rent to my friends and competitors for each time someone borrowed them, I’d probably be able to take a little more time off and work on my own house. — T. H. Richards, Mont-Tremblant, Quebec, Canada Tips & Techniques provided by Fine Homebuilding.
To contact Fine Homebuilding, e-mail Christina Glennon.
Set Yourself Apart With CGB Designation Join the ranks of the nation’s top building industry professionals with the Certified Graduate Builder (CGB) designation. The “Builder Assessment Review” (BAR) is your first step towards obtaining the CGB. This comprehensive assessment measures your expertise in the four key areas of the building industry: building technology, business and finance, project management and sales and marketing. Your results will show the areas where your knowledge is strongest and weakest and will help determine the courses required for you to obtain your CGB. To learn where the next BAR will be held, visit NAHB’s education listings, or call the Professional Designation Help Line at 800-368-5242 x8154.
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 to Navigate the Slowdown What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn. To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here. 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. Thinking Green? Experts Say Start Small, Don’t Over PromiseBuilders, remodelers and other industry professionals considering green building should start small, manage the expectations of potential customers and thoroughly educate themselves on this growing segment of the industry, a panel of green building experts told listeners during an hour-long NAHB audio seminar earlier this month. “Things have grown rapidly in the last few years and with the new green building standard coming out, it’s going to be more and more widespread,” said Matt Belcher, president of Belcher Homes, in St. Louis and a nationally-known expert and consultant in green building, “Materials prices have gone down and are more accessible. Most suppliers and sales staff are now being trained to know these products.” While Belcher talked of opportunities, David Jaffe, NAHB staff vice president for construction and liability research, cautioned listeners to avoid liability claims by managing consumer expectations. Builders must be careful with contract language, definitions and descriptions of green capabilities. Builders, he said, will have to be able to discern between what products can actually do and what they claim they can do. “Your success as green building professionals may depend on your ability to avoid green building claims and liability,” said Jaffe, while noting the litigation that surrounded synthetic stucco and mold not too long ago. “In the interest of managing expectations, I should point out that this is an emerging field for attorneys and risk management professionals as well, and we do not have all of the answers,” Jaffe cautioned. “In some ways we are looking into that proverbial crystal ball.” Belcher noted that consumers are learning more about green building through resources like the Internet and are better educated about green building than in the past. However, he also said that consumers are seeking advocates who can educate them further and stressed that builders should be those advocates. The third panelist, Don Ferrier, CGB, president of Ferrier Custom Homes and Ferrier Builders in Ft. Worth, Texas, said consumer demand for green is strong given current market conditions ― primarily because potential home buyers are more educated about building. He noted that green building is not just about energy and resource efficiency and indoor air quality, it is also about sustainability. Green building is no fad, Ferrier said. “It will be a standard of building.” And it is making inroads in the marketplace. Ferrier said that green building has helped him differentiate himself from the competition and that his company had its second-best year last year. He expects this year to be his best yet. Industry professionals interested in learning more about green building can visit the NAHB National Green Building Program (nahbgreen.org) and download the NAHB Model Green Home Building Guidelines for more information. “The information is out there,” said Belcher. “As a builder who’s looking to do this, the more education you have the better decisions you can make as far as your business goes.” The audio seminar, “Green Building Is Good Business,” was held June 11 and was sponsored by NAHB’s Business Management Department, the NAHB National Green Building Program and The NAHB University of Housing. A recording of the seminar will be available by July 1 for purchase at www.nahb.org/gobuildgreen. ‘National Green Building Standard’ Coming Soon From BuilderBooks.com The “National Green Building Standard” from the International Code Council® and NAHB will be available from BuilderBooks.com soon. For multifamily, home remodeling and additions, site development and single-family housing, the standard covers lot design; resource, energy and water efficiency; indoor environment quality; and owner education. Visit BuilderBooks.com for availability. 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. The Future of Residential Construction Is Green The Certified Green Professional (CGP) designation teaches builders, remodelers and other industry professionals techniques for incorporating green building principles into homes using cost-effective and affordable options. Earning the CGP demonstrates to clients and peers your commitment to the best and latest in green building practices and techniques. More than 500 people have earned the CGPdesignation to date. For more information, visit www.nahb.org/CGPinfo.
Deliver Exceptional Customer Service Take the “Profitable Business Through Quality Practices” course from The NAHB University of Housing and learn key strategies for providing a quality building/remodeling experience for home owners.
To find out where upcoming courses are being held, click here, or call 800-368-5242 x8154 for more information. ‘Beyond Warranty’ Helps Builders in Eye of Service StormTo help home builders manage the “perfect service storm” of increasing right-to-repair laws and more sophisticated and demanding home buyers, BuilderBooks.com has released “Beyond Warranty: Building Your Referral Business” by Carol Smith. The book takes builders step-by-step through the complicated but essential process of creating a home warranty program that can improve housing quality and earn satisfied customers and referral business. “Beyond Warranty: Building Your Referral Business” teaches readers how to:
The book includes a companion CD with 14 ready-to-use documents and forms to help builders create a first-rate warranty program. To view or order this publication online, click here, or call 800-223-2665. 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. ESCs Are a Critical Home Building TradeBy Keith Davis, Residential Technologies Home technologies have their own space and location issues, and timing and scheduling are important, much like in the installation of plumbing, HVAC and electrical systems. Quality workmanship requires time and cooperation among the trades, so make sure the ESC is adequately scheduled. Also, in order to fully meet customers’ needs, ESCs should be involved from the beginning of the design process so that customers don’t have to be told that they cannot enjoy a particular technology that they wanted because it wasn’t planned for or designed into the home. Because of their importance, here are several things you should know before choosing an ESC:
Information About Home Technology Available From HTA The Home Technology Alliance (HTA) is a partnership between NAHB and the Custom Electronic Design Installation Association (CEDIA) that was formed to position the housing industry to effectively meet the growing home buyer demand for home technology and provide maximum return on investment in the new home building and remodeling process. For more information, visit www.nahb.org/HTA. CEDIA: A Source for Experienced ESCs The Custom Electronic Design Installation Association (CEDIA) is a founding sponsor in the Home Technology Alliance and an international trade association of companies that specialize in designing and installing electronic systems for the home. CEDIA members are established and insured businesses with bona fide qualifications and experience in this field. CEDIA serves as a source for Electronic Systems Contractors (ESCs). For more information on CEDIA, visit the association’s Web site at www.cedia.org. To find an ESC, click here. Blaze a Trail to Success at the Custom Builder Symposium Attend NAHB’s Custom Builder Symposium, October 24-26 in Austin, Texas and get the knowledge to make the most of the current market. Advanced education sessions and new tracks on design and technology provide tactics to help identify and capitalize on trends and areas of growth. Also, learn how to market your business to capitalize on the growing demand for green. To learn more, visit www.nahb.org/Custom. Survive or Dive: Facing the Challenging MarketBy Karen Dry and Linda Hebert
The Women’s Council is taking the taboo out of talking about the large, pink elephant that stands in the center of all the industry turmoil. That elephant of course is that many of us may not make it through this downturn. Perhaps the scariest thing in this downturn is not what it does to you personally, but the ripple effect it has on those in your life. When you own your business, you not only feel responsible for your own family, but the families of your employees, customers, vendors and subcontractors as well. You can deal with cutting back when it comes to your own needs, but not being able to provide for those who have been supportive to you can be heart-wrenching. In the United States, 73% of women who own their own businesses founded them on their own ― as opposed to buying or inheriting them ― compared to 59% of men. Still, when we think of women-owned businesses, we often envision small, mostly sole, home-based proprietorships. However, according to the Center for Women’s Business Research (CWBR), 3% of all women-owned firms have revenues of $1 million or more, compared with 6% of men-owned firms. In the building industry, while the number of sole, women-owned businesses is below the national average, these businesses make up about 18% of the NAHB registered member companies, reporting sales on average of $2.5 million every year. That’s not exactly small business, is it? Whether a business is women-owned, small or home-based — the reality is that it faces a building industry in a cyclical decline with a challenging future. That's why many women in the building industry are now confronting significant obstacles to their financial well-being — both personally and professionally. As with every challenge, today’s market brings opportunity as well. The economic clout that women have — and the depth of knowledge they bring to clients and cohorts — are vital to the building industry. This simple fact is important because it means any woman in the building industry can survive, re-tool and gracefully weather this industry downturn. The best offense is to take advantage of available resources, and CWBR reports that women business owners are on the right track, as women owners of firms with $1 million or more in revenue are more likely to belong to formal business organizations, associations or networks like NAHB and the Women’s Council than other women business owners — 81% to 61%. The key is creating relationships with people in all types of industry. Jobs come and go; relationships do not. Look for employees who bring more to the table. No company will let go of a team member who is bringing in substantial contacts or revenue stream. Job security is directly proportional to the people who you know and know you. A healthy dose of mind over matter also helps. Tom Reilly, author of “How to Sell and Manage in Tough Times and Tough Markets” said, “You can thrive, but it doesn’t happen by accident. It starts with attitude, since attitude drives behavior, and we become what we believe. You must get yourself in the right frame of mind.” Michelle Roberts, founder and CEO of Chatham Hill Residential Design and Build, LLC and Ecohealth Homes of Boston, said she has had many doors open despite the market outlook. Face-to-face networking, she said, is critical to building and maintaining a business. “I believe if everyone was busy, and making money, people would not be looking at my company or its business model,” said Roberts. “I think my advantage is that I am a woman-owned company, I am well versed in safe and healthy housing and my professional background is in sales and marketing.” According to Reilly, 70% of companies will survive today's tough times, 25% of businesses will fail and 5% will actually grow and thrive during this period. To ensure that your company lands in the first category, you must go back to business management basics. You need to do your research — and these slower times are the perfect excuse to find some quiet time and reflect on your realities. NAHB Women’s Council Vice Chair Karen Dry is president of Garrett Interiors, Inc., an interior design company based in Westlake Village, Calif. specializing in model home merchandising along with residential, commercial and hospitality interior design. For more information, e-mail Dry, or call her at 818-991-3487. Linda Hebert is the chair of the Women’s Council communications subcommittee and president of Diversified Marketing & Communications, of Pleasanton, Calif. For more information, e-mail Hebert, or call her at 925-577-5300. Next: The authors explore the basics — five key questions to consider when evaluating how your business fits into the market. Enter The Nationals Sales and Marketing Awards by Sept. 26Enter your best in new home sales and marketing and design for 2009's The Nationals — the National Sales and Marketing awards, the largest and most prestigious competition for new-home sales and marketing professionals and communities. Sponsored by NAHB’s National Sales and Marketing Council, The Nationals honor the best in architectural achievement, product and community design, advertising and promotion, interior merchandising, Web site design and more. The awards are open to individual sales and marketing professionals, home builders, associates and sales and marketing councils. All entries, including fees and exhibits, are due Friday, Sept. 26. Late entries will be accepted by Oct. 3, with an additional fee. The Nationals recognizes innovation and excellence in 52 categories. During a three-day judging process, a panel of industry professionals from across the country selects Silver and Gold award winners from a field that typically includes more than 1,200 entries.
To Apply
Awards Gala at IBS on Jan. 20 Category winners will be honored during a gala event at Caesars Palace in Las Vegas on Jan. 20 during the International Builders' Show. For more information, visit www.TheNationals.com, e-mail Lisa Parrish, or call her at 800-658-2751. To Get Entries Noticed For expert advice on getting noticed, participate in the sales and marketing council (SMC) conference call, "Tips from The Nationals — Secrets to Help Your SMC Awards Program Take the Prize," on Wednesday, July 9 from 2:00-3:00 p.m. EST. Parrish and DeWalt will provide tips on how to create winning awards entries for The Nationals. To participate in this workshop, call 888-813-8477 and use the passcode 2668066.
Subscribe to Sales + Marketing Ideas Magazine for Cutting-Edge Information For additional cutting-edge sales and marketing information, subscribe to NAHB’s Sales + Marketing Ideas magazine (www.smimagazine.com). Click here to learn about membership benefits of the National Sales and Marketing Council and the Institute of Residential Marketing. LED Lighting Solutions Can Help Turn Parking Lots GreenBuilding green is quickly becoming the staple of commercial construction as many quantifiable solutions — such as commercial outdoor illumination — make their way into the industry. There are about 4.9 million commercial buildings in the U.S., and these facilities’ lighting systems consume more than 30% of all electricity. Energy use is one of the most expensive operating costs for a commercial property and, with no end in sight to rising energy prices, the industry is always seeking innovations to reduce consumption. Energy-efficient light emitting diodes (LEDs) for commercial applications provide a unique opportunity to fulfill general outdoor illumination requirements. They can dramatically lower energy costs and help protect the environment. In addition, LED lighting fixtures can also reduce system maintenance — a huge factor when calculating ROI and payback. LEDs are small, semi-conductors used to produce millions of different colors and brightness levels of light with significantly less energy than traditional lighting methods. Early adaptations made use of color mixing but did not deliver substantial light levels or have the output necessary to match high intensity discharge (HID) light sources. Today, LEDs convert an electrical current directly into light, eliminating energy waste. They do not burn out like a standard lamp, so individual diodes do not need to be replaced. Instead, the diodes gradually produce lower output levels over a long time. Well-designed fixtures can last more than 100,000 hours, and if one LED fails, it will not cause a complete fixture outage. Another advantage of LEDs is that they do not require any special equipment or drivers to deal with temperature conditions. They are able to tolerate high heat and humidity and can work effectively down to negative 40 degrees Celsius. This enables them to be operated by instant on/off control without specially designed circuitry. Additionally, LED lighting for general outdoor use provides durability and a longer life span. This new LED technology enables lighting designers to provide quality lighting within the requirements of the latest energy codes as well as life-long energy savings and decreased re-lamping costs to facilities’ owners. Many of us have seen buildings, parking facilities and outdoor lots that use too much light at night — strapping their owners and operators with high electric bills and causing light pollution for the neighbors and glares for passers-by. With non-LED lighting technology such as HID, 30% of outdoor lighting is wastefully directed skyward. LED fixtures can direct more of the light to where it is needed. With more innovative design and dozens of individual LEDs, light control is managed via individual optics on each LED, making them inherently easier to prevent light pollution and glare. According to the 2007 Inventory of New York City Greenhouse Gas Emissions report, commercial buildings account for 80% of New York City’s greenhouse gas emissions. At the same time, the pollution associated with the energy needed for lighting accounts for about 450 million tons of carbon dioxide and 3 million tons of smog-generating nitrogen oxides and sulfur dioxide annually. If the city replaced 1,000 streetlights with LED luminaires, green house gas emissions could be reduced annually by about 294 tons of CO2. Commercial buildings account for about one-third of all California electricity consumption, at an annual cost of $9 billion. Although aggressive efforts by California to improve building design have led to significant increases in commercial building energy efficiency over the past 20 years, the savings are still well below technical and economic potential. Across the country, electricity consumption in buildings doubled between 1989 and 2005, and if this growth rate is sustained, electricity demand in buildings will increase another 150% by 2030. If high-efficiency LED luminaires were used for outdoor illumination, energy costs could decrease by 50% or more. These savings add directly to the bottom line. What does this mean in real numbers? With the current cost of energy, even a 50% reduction in energy consumption can lower operating costs by nearly $42,000 per year for every 50,000 square feet of office space. Exterior lighting is a key to safety, security and ambiance for commercial properties and city streets. Both the private sector and municipalities need to address these issues while also considering controlling costs. Kevin Orth is national sales manager for Beta LED, a manufacturing company specializing in LED lighting products for outdoor commercial applications. For more information, e-mail Orth, or call him at 800-236-6800 x3132.
Enter Commercial Builders Awards of Excellence by Aug. 1 Applications for the National Commercial Builders Council’s (NCBC) 2009 Awards of Excellence program are due Aug. 1. The awards recognize achievements in the national commercial building industry for design (remodeling and new construction), market appeal, energy efficiency, challenges faced during building and overall success of projects and are open to projects from less than 5,000 to more than 100,000 square feet. Eligible projects must have been completed after Dec. 31, 2005 and may be entered in commercial, industrial, institutional, medical, mixed-use commercial/retail, recreational, retail and green building categories. Details can be found on the Commercial Builders Council section of the NAHB Web site, or for more information, e-mail Kisha DeSandies at NAHB, or call her at 800-368-5242 x8455. Apply for 2008 NAHB Remodelers AwardsNAHB Remodelers invites its members to apply for a variety of awards each year that recognize the achievements of both local councils and individual members. The awards include: National Remodeling Hall of Fame
Homes for Life CAPS Project Award
Increase Your Professional Credibility The Certified Graduate Remodeler (CGR) designation emphasizes business management skills as the key to a professional remodeling operation. Remodelers who earn the CGR become members of an exclusive national program and gain recognition as industry leaders. To learn more about the CGR designation, visit www.nahb.org/CGRinfo, or call The Professional Designation Help Line at 800-368-5242 x8154.
'How to Find a Professional Remodeler' Available at BuilderBooks.com "How to Find a Professional Remodeler," available at BuilderBooks.com, promotes the professionalism of your remodeling business by offering valuable advice to your customers on the process of selecting a remodeler. The brochure guides consumers from the dream to the reality of having their homes remodeled by skilled and trained professionals. Sections include what to look for in a professional remodeler and what questions to ask. To view or puchase this publication online, click here, or call 800-223-2665 to order.
Blaze a Trail to Success at the Custom Builder Symposium Attend NAHB’s Custom Builder Symposium, October 24-26 in Austin, Texas and get the knowledge to make the most of the current market. Advanced education sessions and new tracks on design and technology provide tactics to help identify and capitalize on trends and areas of growth. Also, learn how to market your business to capitalize on the growing demand for green. Plan to Attend the Remodeling Show in BaltimoreNAHB Remodelers who want to learn about the latest technical skills and business practices should plan to attend the 2008 Remodeling Show, Sept. 10-12, in Baltimore. The NAHB Remodelers will host numerous events, pre-show education, an onsite booth and more. NAHB Remodelers events at the show include: Tuesday, Sept. 9
Increase Your Professional Credibility The Certified Graduate Remodeler (CGR) designation emphasizes business management skills as the key to a professional remodeling operation. Remodelers who earn the CGR become members of an exclusive national program and gain recognition as industry leaders. To learn more about the CGR designation, visit www.nahb.org/CGRinfo, or call The Professional Designation Help Line at 800-368-5242 x8154.
'How to Find a Professional Remodeler' Available at BuilderBooks.com "How to Find a Professional Remodeler," available at BuilderBooks.com, promotes the professionalism of your remodeling business by offering valuable advice to your customers on the process of selecting a remodeler. The brochure guides consumers from the dream to the reality of having their homes remodeled by skilled and trained professionals. Sections include what to look for in a professional remodeler and what questions to ask. To view or puchase this publication online, click here, or call 800-223-2665 to order.
Education Calendar
Learn More About Upcoming Conferences and Designations Interested in attending a University of Housing conference or learning more about NAHB designation programs? Visit www.nahb.org/notifyme, and sign up to receive more information.
Free NAHB Kit Gives Builders Back-to-Basics Tips to Navigate the Slowdown What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn. To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here. 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. Precautions Needed to Protect Workers From Summer HeatWith summertime bringing extremely hot weather to many areas of the country, home builders are being reminded that employees who work outdoors need to take precautions to avoid falling victim to heat-related illnesses. According to the Occupational Safety and Health Administration (OSHA), the two most serious forms of heat-related illness are heat exhaustion and heat stroke, which can be fatal. Recognizing the symptoms of these illnesses and taking appropriate action quickly is essential. In the NAHB study, “Residential Construction Industry Fatalities 2003-2006,” exposure to environmental heat was the cause of 2% of worker deaths in the home building industry. OSHA provides information to help employers and their workers prevent many heat-related deaths and injuries. Its “Heat Stress Quick Card,” identifies these common symptoms of heat exhaustion and heat stroke: Heat exhaustion:
Click here to order laminated copies of the “Heat Stress Quick Card” in English and Spanish for distribution to workers or to download a PDF. To help prevent heat-related problems, OSHA recommends that employers take the following basic precautions to protect their workers:
NAHB works with OSHA to provide the residential construction industry with information, guidance and access to training resources to help them protect employees' health and safety. Through BuilderBooks, NAHB offers a comprehensive set of resources that are geared to helping companies improve the safety awareness and practices of their employees. Too see all of NAHB’s safety resources available through BuilderBooks, go to: www.builderbooks.com/safety. For more information on NAHB safety resources, e-mail Lindsay Cather, or call her at 800-368-5242 x8163. Boost Job Site Safety With Fall Protection Training Products In an effort to increase job site safety and reduce the chance of job related accidents, NAHB has produced the “Fall Protection Video, English-Spanish” and “NAHB-OSHA Fall Protection Handbook, English-Spanish.” Both are available through BuilderBooks.com. The 30-minute “Fall Protection Video, English-Spanish” can be used by builders to train workers to use safe work practices that eliminate fall hazards and comply with OSHA fall-protection standards. The “NAHB-OSHA Fall Protection Handbook, English-Spanish” provides guidelines for creating a written fall-protection plan and identifying safe work practices that can prevent costly accidents and injuries. Written with clear text, photographs and illustrations, the book serves as a user-friendly resource for promoting safety on any job site. To purchase the handbook and video online, click here, or call 800-223-2665. Four common hazards cause 90% of the injuries and fatalities on residential construction job sites. The “Recognizing the Big-Four Safety Hazards for the Home Building Industry” course from The NAHB University of Housing shows how to comply with OSHA regulations and to recognize and minimize those hazards most likely to cause accidents. The course teaches builders to protect their workers from harm and themselves from liability. This course is also available in Spanish. To find out where upcoming courses are being held, click here, or call 800-368-5242 x8154 for more information. Toolkit Provides Information on Storm Water ControlThe NAHB Environmental Issues Committee has released a new toolkit for home builders and home builders associations on effective storm water and erosion control techniques. The information is available at www.nahb.org/stormwatertoolkit. Containing storm water runoff and eliminating erosion not only helps home builders and developers comply with Clean Water Act regulations, it can also reduce costs, add value to homes and increase profitability. With increased consumer awareness about green building and other environmental concerns, home buyers increasingly expect more attention to be paid to environmentally-friendly lot and site development. As part of NAHB advocacy efforts to rein in overreaching regulation that can drive up costs and erode housing affordability, the educational materials contained in the toolkit are aimed at helping home builders comply with storm water management regulations, potentially decreasing the need for increased regulation and the fees that accompany it. The toolkit can help HBAs devise strategies to support their members by:
E-mail Lindsay Cather at NAHB to order a set, or call her at 800-368-5242 x8163. She can also provide information on additional storm water resources available from NAHB.
'Storm Water Permitting: A Guide for Builders and Developers' Available at BuilderBooks.com “Storm Water Permitting: A Guide for Builders and Developers,” available through BuilderBooks.com, provides a starting point for builders and developers to use in locating and understanding storm water permitting requirements. The publication has been prepared to help builders comply with the U.S. Environmental Protection Agency's storm water requirements, and includes information on state permitting programs and more than 50 of the most commonly used Best Management Practices. Also included are tips on compliance, including how to handle visits from inspectors. To view or purchase this guide online, click here, or call 800-223-2665. Judges Named for 2009 EnergyValue Housing AwardsSix nationally renowned experts in residential energy efficiency have been selected by the NAHB Research Center to serve as judges for its 2009 EnergyValue Housing Awards (EVHA). The annual award honors companies that voluntarily incorporate energy efficiency into the design, construction and marketing of new homes. The judging panel for the 2009 awards includes a mix of new and returning judges specializing in the fields of engineering, residential energy, construction, architecture and design. In addition to recognizing energy-efficient practices, the EVHA program is aimed at educating the home building industry and the public about advanced technologies and successful approaches to energy-efficient construction that can be implemented by mainstream builders. The EnergyValue Housing Awards, which are now in their 14th year, will be presented during the 2009 International Builders’ Show (IBS) in Las Vegas. Award categories include affordable, custom, factory-built, production and multifamily for hot, moderate and cold climate regions. This year's judging panel includes:
The judging panel will meet as a group in October to discuss their findings and select the winners. NAHB Teaches Nigerians About American Housing System
This was the second year in which NAHB’s International Department hosted a delegation from the Republic of Nigeria at the National Housing Center in Washington, D.C. Classes attended by the 18 Nigerians covered building technology, land planning, regulatory and housing policy, energy efficiency, green building, construction contracts and business management, and the information was customized so that it could be applied to their own building industry back home. NAHB members and certified instructors John Barrows, Tom Stephanie and Jim Niehoff led key education sessions. In addition, participants received briefings from in-house experts at NAHB on green building, construction codes and standards, housing finance, advocacy and government affairs. The program also included a visit to the NAHB Research Center in Upper Marlboro, Md. International builder member Ismaila Muhammad Nalado of Nigeria, helped organize the program. For more information on international resources available from NAHB, e-mail Barbara McMurray or call her at 800-368-5242 x8243. Bosch Recalls Unsafe Hammer DrillsThe Robert Bosch Tool Corporation in cooperation with the U.S. Consumer Product Safety Commission on June 13 issued a safety recall notice directing consumers to stop using Bosch Hammer Drills immediately. According to the notice, the recall was issued because the drill’s trigger switch may stick in the “on” position, causing the drill to continue to operate after the trigger has been released. This can result in user injury, although no injuries have been reported so far. All hammer drills with serial numbers beginning with the number seven are included in the recall. The drill is blue with “BOSCH” printed on the side. The model number 1191VSR is on the product nameplate mounted on the side of the motor. The drills were manufactured in Malaysia. The recall affects about 9,700 drills that were sold nationwide at Menards and other hardware retailers and industrial distributors from July 2007 to April 2008 for a retail price of around $100. Bosch hammer drills that are suitable for use and not affected by the recall include those packaged in cartons affixed with a green dot near the UPC code and having serial numbers beginning with the number eight or greater. Consumers should contact the Robert Bosch Tool Corp. toll-free at 877-472-0007 between 7:00 a.m. and 7:00 p.m. CDT Monday through Friday, or visit the firm’s Web site at www.boschtools.com for a free repair or with any questions. Pulte Homes Promotes Diversity Among Its Interns
Sponsoring the “Team Builders” program for a second summer, Pulte Homes has welcomed 10 college interns into its regional offices across the country, assigning them to jobs according to their area of study.
Student participants have reported that Pulte Homes has made a strong impression and that their internships have started them thinking about a possible career in home building. “My supervisors here at Pulte have been mentors to me. When I arrived, I was thrown right into the fire and everyone has shown patience and dedication to furthering my professional development,” said Manuel Mejia, a finance intern in Pulte’s Granite Bay, Calif. office. “In just the few weeks that I’ve been here, I can say confidently that Pulte Homes is a company that values its employees highly.” Pulte puts a great deal of effort into maintaining a staff that fully represents the diversity of the housing market, and its work environment is ideal for introducing college students to residential construction and presenting them with a desirable career path. “My experience with Pulte Homes and the Team Builders program has been beneficial to my growth and development in the pursuit of my professional career,” said Joseph Frye, who had experience in home building before interning in the Construction Management Department at Pulte’s Atlanta office. For more information on Team Builders, e-mail Page Browning at HBI, or call her at 800-795-7955 x8918.
Sponsored by Lowe’s Commercial Services, Sed de Saber™-Construction Edition was developed by a team of subject matter experts — including superintendents, craft skills experts, remodelers and builders — to ensure that its contents was relevant to today’s home building workforce. HBI also created a seventh book based entirely on the NAHB-OSHA Job Site Safety Handbook to address job site safety issues related to the language barrier. Sed de Saber™-Construction Edition uses proven LeapFrog technology to allow learners to listen, record and play back their pronunciation of more than 500 vocabulary words and 340 phrases. Participants who practice 30 minutes each day will complete the program in about five months. Learning at home, on their own time, also eliminates scheduling conflicts. NAHB members can purchase the learning system, all seven books and a skills assessment to chart progress for $395 per kit. The non-member price is $495. Order today at www.seddesaberconstruction.com or at www.lowesforpros.com. $2,500 in Rebates Per Home Available From ManufacturersIn this year’s first quarter, Woodland Homes of Huntsville, Ala. was recognized by Builder Partnerships (BP) as the builder member most active in signing up for BP programs and in recording the greatest increase in manufacturer rebates. “Through Builder Partnerships, I am able to deal with the manufacturer directly instead of them being shielded by the local vendor,” said Jeannie Samz, controller for Woodland Homes and an advisory board member for BP. She said that she also likes being able to submit homes for rebates on the Internet. Builder Partnerships is an innovative organization aimed at changing how builders and manufacturers work together by promoting direct communication between the two. John Boersma, Jr., for example, who is the estimating and purchasing manager for Olthof Homes in St. John, Ind., was able to switch from Lennox to Trane products with help from Builder Partnerships. “I’m happy that we now get a rebate on something that we didn’t get before,” he said. Builder Partnerships is more than just a rebate program with more than $2,500 in incentives available per home from leading manufacturers across more than 30 product groups. The company starts by working with manufacturers to offer competitive incentive programs that it manages for its builder members. It then uses this as a springboard to enhance relationships, share market intelligence and build positive interaction. The company’s main focus has been on creating a strong network within its membership so builders feel they can just pick up the phone and call if they have any questions specific to product offerings or even relating to the purchasing managers’ responsibilities. Builder Partnerships hosts monthly conference calls with its members to discuss hot topics and issues they are facing, resulted in great conversations and idea sharing among builders. Builder Partnerships also focuses on training, for both manufacturers and builders. It helps builders develop sales strategies, provides in-depth training on effective sales and marketing, and conducts tailor-made market research to help builders improve their message. It has also developed training for manufacturers’ marketing and sales teams, providing a better understanding of the private builder, the total home building process and the role manufacturers can play in each stage of the building process. Builder members see many other benefits in addition to a competitive, easy-to-use rebate program. They have increased collective bargaining strength by becoming part of a network of more than 85 builders who construct some 25,000 homes annually. The manufacturers benefit from an extended sales team reaching out to builders on their behalf. The Builder Partnerships team works closely with manufacturers to create a sales strategy and provide feedback from the builders on manufacturer products, distribution and services that allow them to diversify away from public builders. Each manufacturing company has its own dedicated Web page on the BP Web site that features incentive program details, products and a link to their corporate Web site. Both sides benefit from a monthly newsletter distributed to more than 5,500 readers and from numerous opportunities to collaborate and interact with other leading, non-competitive manufacturers and builders in the industry — an interaction that is helping all involved improve their bottom line. Based in Littleton, Colo., Builder Partnerships is a member of the National Council of the Housing Industry — The Leading Suppliers of NAHB. It is part of the Shinn Group of Companies, which has more than 114 years of combined experience and knowledge within the home building industry and access to more than 500 committed home builder clients. To learn more, e-mail Glenn Singer, or call him at 610-745-7025. 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 DIY, Fine Living and HGTVThe NAHB Production Group produces weekly television shows on DIY, Fine Living and HGTV for consumers. The following is the latest lineup: "Rock Solid" on DIY
"I Want That" on Fine Living
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