Residential Remodeling Picks Up the Pace in Second Quarter
Professional remodelers were busier in this year’s second quarter than they have been at any time in the past two years, and most expect business to continue improving throughout the coming months, according to results of the National Association of Home Builders’ Remodeling Market Index (RMI).

The latest RMI was based on a quarterly survey of about 550 professional remodelers, whose answers to a series of questions were assigned numerical values in order to calculate two separate indexes. The first index gauges current market conditions and is based on remodelers’ reports of major and minor additions and alterations, plus maintenance work and repairs, on both owner- and renter-occupied dwellings. The second index gauges expectations for the near future and is based on remodelers’ reports of their calls for bids, amount of work committed for the next three months, job backlogs and appointments for proposals. A variety of “special questions” are also asked at the end of the survey to help pinpoint market perspectives.

Both indexes recorded substantial gains in this year’s second quarter. The index gauging current market conditions rose 7.2 points from the first quarter to 53.6, its highest mark since the second quarter of 2001. A year-over-year comparison — which is more appropriate since the RMI is not seasonally adjusted — reveals a three-point gain from 2002’s second quarter. Likewise, the index gauging future expectations rose to its highest level in two years, at 54.8. That is 4.5 points above its standing in the first quarter and 2.6 points above its year-ago level.

“What’s remarkable is that almost every category under the future expectations index showed gains from both the first quarter of this year and the year-ago period,” said NAHB Chief Economist David Seiders. “Remodelers are registering substantially more calls for bids, commitments for work over the next three months and backlogs of jobs in the pipeline than they have since at least the beginning of last year. That’s a good basis for a truly optimistic outlook.”

The West was the strongest region for professional remodeling in 2003’s second quarter, posting the highest RMI readings for both current market conditions and future expectations. Every region posted gains from the previous quarter with the exception of the Northeast, where current market conditions rose but future expectations slid several points.

Meanwhile, results of the “special questions” section of the RMI reveal that local labor and regulatory issues remain at the top of many remodelers’ concerns.

A full 57% of those surveyed identified “shortage of skilled labor” as a significant problem faced by their firms in the past 12 months. Past surveys show this is a continuing concern in the industry.  Moreover, few expect the labor crunch to lessen in the near future. Asked for their perspectives on the most significant issues that will likely shape the remodeling industry over the next five years, “quality of skilled labor” and “availability of skilled labor” were at the top of remodelers’ lists, with an overwhelming 75% and 70% of respondents naming these factors, respectively.

Thirty-five percent of remodelers in the latest survey identified “local government regulations” as a significant source of challenges for their firms, and this, too, is a continuing concern charted by past surveys. Looking forward, 52% predicted that government regulations regarding mold, lead paint removal and other issues would weigh heavily in the industry over the next five years.

A growing concern among remodeling pros is “low bidding by fly-by-night contractors,” which 49% identified as a problem in their market in this year’s second quarter. That’s up from the 40% who named this as a significant issue at the end of 2001. “Legitimate professional remodelers are definitely raising a red flag regarding low-ball operators in their area,” said Weiss. “We’re advising consumers to ask for references, check with their local Better Business Bureau and verify that they are dealing with a reputable business before signing a contract for home remodeling and/or repairs.”

Asked to rate the importance of a variety of factors to their businesses’ growth potential, “company reputation” was by far the most strongly valued element, followed immediately by “availability of trained labor.”

“Shortages of skilled labor are a typical symptom of a strong remodeling market,” said NAHB’s Weiss. “It makes sense that amidst such an atmosphere, a remodeler’s standing in the local community makes all the difference because it indicates whether the company can do a good job, on-time and on-budget. Members of NAHB’s Remodelors Council are clearly aware of this and benefiting from their solid reputations.”

Tables of specific data can be obtained at: http://www.nahb.org/reference_list.aspx?sectionID=136.

Boston Board Update
The 2003 NAHB Fall Board meeting in Boston was a huge success.  Here are the latest developments coming out of the September meetings:

Certified Aging-in-Place Specialist Board of Governors

• The CAPS Board reported a total of 208 CAPS graduates nationwide.
• A total of 33 CAPS classes have been conducted in 2003 with another 24 classes scheduled for the remainder of the year. A total of 517 students have taken the CAPS classes in 2003.
• The NAHB Research Center has generously provided a copy of the Directory of Accessible Building Products catalogue to each student taking the Home Modifications course.  The directory is provided with the student manual.
• CAPS PowerPoint Consumer Presentation is nearly completed.  Board members were provided a copy of the slides to review.  Talking points will be added to the slides.  The final presentation will be available by the end of the year.  CAPS graduates will automatically receive a copy via email.

Certified Graduate Remodelor Board of Governors

• The CGR Board is moving the focus from the number of CGR applications submitted to the number of candidates that have taken PREP.  Using the number of candidates completing PREP is a better indicator for the CGR program.
• To date, a total of 120 candidates have graduated in 2003.
• Five states with the highest number of active CGRs — WA, MI, TX, PA, IN.
• The CGR Board is pleased to announce that the CGR Board has awarded Carroll Bogard from Pella and Beth Hattel from Frank Lynn & Associates the honorary CGRA designation and now sit on the CGR Board of Governors.
• In response to issues raised by members regarding PREP, a task force is being formed to review and revise the assessment content outline.  The item bank will also be reviewed and edited.  The projected timeline is to complete the review by mid 2004.

Education and Business Development Committee

• The Remodelors Council will be sponsoring 12 education programs at the 2004 International Builders’ Show.
• IBS has a new type of session — called Ideas and Innovations. Room layout is roundtables and speakers are encouraged to lead discussions with the audience. The Council has one program in this format, "The Best Remodeling Companies to Work For" with speaker Kim Sweet from Professional Remodeler magazine on Wednesday, January 21, 2004 at 9:00 a.m.
• The committee had a Brainstorming Session to discuss future initiatives; ideas included developing educational programs related to small business wealth accumulation and retirement strategies, developing slide presentations for local councils to use for consumer issues; how to find a remodeler, how to live with your project, and investigating the possibility of conducting the Cost of Doing Business Study (the study was last done in 1993).

Past Chairs

• The council is considering hosting a Build-Pac luncheon fundraiser at the IBS in Las Vegas. If the council raises $35,000 at the event, it will earn a seat on the Build Pac Board.
• More than $1,630 has been raised for the Bryan Patchan Scholarship Fund. A scholarship will be awarded to a local council chair or vice chair to help defer expenses for the spring board meeting.
• Candidates seeking appointment to the Remodelors Council Board of Trustees or Chairman of the Board are encouraged to complete a leadership form and schedule an interview. Bill Owens CGR, Alan Hanbury CGR, and Jan Williams CGR have been appointed to the interview committee.

Membership Committee

• National Membership Day (May 6) winners who received $100 NAHB Builder Books gift certificates are:
            Category 1: Less than 50 members — Porter County HBA, IN
            Category 2: 50 - 100 council members — MBA of Pierce County, WA
            Category 3: 100 or more members — HBA of Greater Columbia, SC
• Current Membership Statistics:
            June 2003 — 6,301 members
            June 2002 — 6,032 members
• New Councils
             HBA of Fredericksburg, Fredericksburg, VA
             Greater Columbus HBA, Columbus, GA
             Northwest Arkansas HBA, Springdale, AR
• Status of Year Long Membership Contest as of June 03
              Large — Greater Houston (52 new members)
              Medium — HBA of Greater Tulsa (30 new members)
              Small — Peninsula Housing & BA, VA (30 new members)
• The Reach Out and Touch Survey that the Remodelors Council traditionally did for many years will be revived.
• Peter Wallstrom of NAHB Associates Committee presented a mentoring program that could be adopted by local councils that to increase membership in the HBAs and councils.
  

Public Affairs

• A total 21 entries were submitted for the 2003 CADRE Awards. Judging was completed on Saturday, September 20.  Awards will be presented at the Remodelors Show Gala in Baltimore.
• The committee is seeking volunteers to draft articles for NBN Online, bylines and photos of author are placed with article.  NBN Online is a weekly e-newsletter disseminated to NAHB members. Interested volunteers should contact the Remodelors Council at remodel@nahb.com or 800-368-5242 x8216.
• The second quarter Remodeling Market Index (RMI) was reviewed. Committee is looking for volunteers to participate in the RMI survey participant.  Interested candidates should contact the Remodelors Council at remodel@nahb.com or 800-368-5242 x8216.
• It was reported that there wouldn’t be a Rebuilding Together project as part of the Remodelers’ Show in Baltimore. The committee is investigating the possibility of doing project in Chicago with Rebuilding Together as part of the 2004 Remodelers Show.

Remodelors Council Board of Trustees

• The Remodelors Council Membership Initiative and the proposed bylaw change was passed during the Fall NAHB Board meeting.  The purpose of the initiative is to remove the perception of high cost for membership as a barrier to NAHB membership for remodelers and small builders.  The discount in national member ship dues is for one year through participating pilot programs.  State and local HBAs interested in participating in the pilot program need to contact at remodel@nahb.com or 800-368-5242 x8216 for more information.
• CAPS and CGR graduates are now listed by state on the NAHB web site — currently under the Education pages — will also be listed under the consumer pages in October.
• The Sales and Marketing Council proposed creating a second vice chair appointed by a senior officer to develop a leadership ladder for the NAHB Councils. The Remodelors Council supports the second Vice Chair position for all Councils.

  [return to top]

Free CGR Applications
If you are interested in earning the Certified Graduate Remodelor (CGR) designation, come to one of the booths outlined below durning the Remodelers' Show in Baltimore, October 23-25 to complete your CGR application free of charge.  The sponsoring companies will cover the $50 application fee. 

CGR credentials help you standout among professionals in a competitive market.  CGR is the only remodeling industry designation program that emphasizes business management skills.  The CGR designation can help you succeed by:

• Increasing your professional credibility
• Enhancing your competitive edge in the consumer/remodeler relationship
• Expanding your consumer base
• Broadening your networking opportunities within the industry
• Providing educational opportunities designed to improve your business management and technical skills
• Demonstrating recognition as an industry leader and member of an exclusive program that supports remodeler business needs

Take advantage of this special opportunity to sign up for  the CGR program at the Remodelers’ Show at no cost ($50 value).  Pick up an applictaion at one of the following booths:

Pella	Booth 439
Dupont Tyvek	Booth 1802
Georgia Pacific	Booth 549
Marvin Windows & Doors	Booth 633
Simonton Windows (at the Remodelors Council booth)	Booth 219
CertainTeed	Booth 1622

CGR stands for professionalism, experience and a commitment to quality. Demonstrate your commitment by continuing your industry education through the CGR designation program. 
[return to top]

Don't Miss the NAHB Remodelors™ Council Events
The NAHB Remodelors™ Council hosts three industry events at the Remodelers' Show in Baltimore, October 23-25, that provide education, networking and recognize the industry's achievements.

• The Local Council Workshop is an educational seminar designed to provide practical ideas to manage local councils.  Come to the Local Council Workshop on Wednesday, October 22, to learn how to improve your council.  The theme is “Leading the Industry, Building Your Council.”  The workshop is free.  RSVP is requested by Friday, October 17.  Send your RSVP to remodel@nahb.com or call 800-368-5242 x8216.

• The CGR Reception is the only industry event for CGRs.  It’s a time to reconnect with peers and congratulate the new CGR designees.  The CGR Reception is free for CGRs (nominal fee for CGR candidates) and RSVP is required by October 10.  Send your RSVP to bdrobins@nahb.com or call 800-368-5242 x8217.
  
  
• A highlight to the Show is the Remodelors Council Gala.  Put on your best and enjoy fine food and dancing on Friday, October 24. The Gala will be hosted at Oriole Park at Camden Yards in the historic B&O warehouse.  During the Gala the CADRE award winners and the America's Best Hall of Fame inductees are announced.  Ticket prices are $75 for NAHB Members and $85 for non-members; tickets can be purchased when registering for the Show.

Go to www.remodelersshow.com for show registration or for detailed show information.  [return to top]

Earn the CAPS Designation in Baltimore
Learn More — Earn More with the new designation program designed to educate you on the burgeoning aging-in-place market.  The Certified Aging-in-Place Specialist (CAPS) two-day designation program (three days if you need to take the Introduction to Business Management course) teaches the technical, business management, and customer service skills essential to competing in the fastest growing segment of the residential remodeling industry: home modifications for the aging-in-place. The NAHB Remodelors Council, in collaboration with the AARP, NAHB Research Center, and NAHB Seniors Housing Council, developed this program to provide comprehensive, practical, market-specific information about working with older and maturing adults to remodel their homes for aging-in-place.  CAPS is acceptable for CGR continuing education. 

To sign-up for the classes, go to www.remodelersshow.com. 

• Working with and Marketing to Older Adults
  Monday, October 20, 9:00 a.m. - 5:00 p.m.
  Working with and Marketing to Older Adults provides a background on the older adult population; communication techniques; common remodeling expenditures and projects. The course also provides information and techniques to assist you in accessing the aging-in-place remodeling market.
  
  
• Home Modifications
  Tuesday, October 21 9:00 a.m. - 5:00 p.m.
   Home Modifications provides information on the codes and standards, common barriers and solutions as well as product ideas and resources.

New NAHB University of Housing Courses
The NAHB University of Housing will be offering two new courses at the Remodelers' Show in Baltimore.  Go to www.remodelersshow.com to register for the classes.

• New Managing a Profitable Family-Owned Business
  Tuesday, October 21 9:00 a.m. - 4:00 p.m.
  Attend this course and avoid some of the most common mistakes made by family-owned businesses.  You’ll learn how to communicate better with your employees/family, balance the personal and business aspects of your relationships, develop a succession plan, and much more. An essential course for anyone engaged in a small, family-owned business.

• New Train the Trainer — University of Housing
  Wednesday, October 22 8:00 a.m. - 5:00 p.m.
  The Train the Trainer course is a one-day course designed for instructors who will teach NAHB University of Housing courses. This course focuses on preparing for, presenting and facilitating NAHB courses. During this course, participants have the opportunity to practice presentation skills and facilitation techniques.

BuilderBooks.com Giveaway at the Remodelers’ Show
Visit BuilderBooks.com at booth #219 to get a free copy of Remodeling Your Home handbook. Impress your clients with the new customer Remodeling Your Home handbook by BuilderBooks.com.  This professional and informative handbook will educate your customers about the ins and outs of remodeling a home.  Supplies are limited so get to booth #219 early.

Remodelors Council Member Only Benefit – A special discount is being offered to Remodelors Council members for bulk orders of the Remodeling Your Home consumer handbook.  Visit BuilderBooks.com booth #219 for your special bulk order form.

Remodeling Your Home consure handbook (sold in packets of 10)
10 packets                    reduced member only price $150.00
25 packets                    reduced member only price $312.50
50 packets                    reduced member only price $500.00 [return to top]

NAHB Teaches Kids About Home Safety with New Bob the Builder™ Awareness Promotion

Home builder associations, members and Women’s Councils are using the Bob the Builder Blueprints for Home Safety activity book that teaches young children about staying safe from accidents and injuries in their homes. The activity book is part of a public awareness promotion sponsored by NAHB and HIT Entertainment (Bob the Builder’s owners) and features a pullout poster with 10 key safety points.

The activity books were available for a limited time as part of this promotion and were free, apart from the cost of shipping and handling. NAHB is hoping to make more of the Bob the Builder activity books available in the future. For more information and the "Blueprints for Home Safety Member Idea Guide," visit http://www.nahb.org/generic.aspx?genericContentID=12954.

New 2003 Silver Strategic Partner — Intuit
The Remodelors Council is pleased to announce it’s latest 2003 Silver Strategic Partner – Intuit.  Intuit’s goal is to create new ways to manage finances and businesses that are so profound and simple, customers cannot imagine going back to the old way.

Intuit's "Right for My Business" strategy for business customers delivers specially designed, industry-specific business management solutions, and develops accounting solutions for bigger, more complex businesses. With its QuickBooks®, QuickBooks®: Premier Contractor Edition, and Intuit® Master Builder™ software products, Intuit offers remodeling professionals a range of solutions to meet their business needs — from those who are just starting out, to the more established remodeler with advanced business management needs.

Following a standard of customer-driven innovation, Intuit is using technology to create solutions based on what customers want and need instead of requiring them to fit their business into a one-size-fits-all solution. Intuit also offers a broad array of tools to help businesses process payroll, manage employees, administer benefit programs and offer retirement plans. Currently, there are more than 350,000 contractors using Intuit products to help manage their businesses more efficiently.

Thank you to Inuit for supporting the NAHB Remodelors Council and the remodeling industry. [return to top]

Remodelors Council Staff News
Please welcome Darlene Somerville as the Council’s new Program Assistant.  Many of you may already know Darlene; she has been with NAHB since 2000 as a Senior Secretary with Builder and Affiliate Services department.  Darlene will provides administrative and program support for the Council’s education, networking, and product development activities.  You can reach Darlene at the central Remodelors Council number 800-368-5242 x8216 or e-mail dsomerville@nahb.com.

Welcome Darlene! [return to top]

Visit the Platinum and Gold level IPRO/Strategic Partners
The Remodelors Council thanks the 2003 Platinum and Gold level IPRO/Strategic Partners.  Show your appreciation for their support by visiting their web sites. It’s just a click away!

Platinum
Pella

Gold
Dupont Tyvek
Georgia Pacific
Marvin Windows and Doors
Simonton Windows
[return to top]

Member Advantage: save up to 20% on postage costs with Pitney-Bowes
Members can eliminate time-consuming trips to the post office for stamps and to weigh packages while saving up to 20% on postage costs with Pitney-Bowes Personal Post™ postage meter. For more information, or to order, call toll free 888-253-7900 Reference # 999998521. To order online and for details on more than a dozen other money-saving Member Advantage discount programs click here, or go to http://memberadvantage.nahb.org.

Go to www.nahb.org to explore the numerous advantages associated with membership in your local, state and national home builders association.
[return to top]