February 26, 2012

"The Other Two-Thirds"

In today's blog we will bring to you a guest blogger, one who will highlight for those who may not understand what the make up of our Federation is truly all about. I'm talking about the much needed inclusion of associate members. Today's guest blogger is Dr. David Crowe, Chief Economist and Senior Vice President at the National Association of Home Builders (NAHB).   Dr. Crowe is responsible for NAHB’s forecast of housing and economic trends, survey research and analysis of the home building industry and consumer preferences as well as micro-economic analysis of government policies that affect housing. 

While some may say that this is a builders association most would agree that it is a builders association that needs the entire building industry's involvement. There are associations designed for such disciplines as the title companies, lumbers companies, bankers and the like but the National Association of Home Builders is where I give my true commitment because "if it affects builders it will affect associates" and without the work of NAHB's volunteers and staff, there probably won't be a need, at least not where housing is concerned, for the "other" associations. 

click here to read the rriginal article reprinted from BuilderOnline.com

The Other Two-Thirds

"The home building industry is more than just builders."

by Dr. David Crowe, NAHB Chief Economist

Dr. Crowe
Home building is supported by one of the largest, most diverse collection of businesses in the country. The NAHB categorizes the two-thirds of its members who supply builders as “associates.” But without these businesses, without their products, services, and people, no homes would be built. And, like home builders, the companies that comprise the supply chain range from large national giants to small local businesses.
Traditionally, home building has been a major contributor to recovery employment and a significant share of the boost comes from associates. The NAHB estimates that for every 1,000 single-family homes built, 3,000 jobs are created. Half of those jobs and 43 percent of the income generated are on-site construction jobs such as framers, electricians, plumbers, sheet rock installers, and the many other subcontractors that are needed to complete a home. Nearly half of the NAHB associate members are subcontractors or specialty trades. Subcontractor and specialty trade companies are small with a median payroll of seven and annual gross receipts in 2010 of $720,000.
Top subcontracting specialties in the NAHB associate membership include plumbing and heating and air conditioning, electrical, carpentry, and masonry and plastering. One-third of hard construction costs are framing and trusses, excavation and foundation, plumbing, HVAC, and electrical wiring.
The other half of jobs generated by home building are off site and include retail, wholesale, manufacturing, and professional services. Retail and wholesale companies account for 16 percent of associate members and provide builders and their subcontractors with their appliances, flooring, wall coverings, cabinetry, and building materials. The retail and wholesale job impact accounts for 14 percent of the job creation, or over 400 jobs for every 1,000 homes built. The retail and wholesale businesses tend to be some of the larger companies within the NAHB. Median payroll size is 14 and annual gross receipts are $2 million.
Manufacturing the items placed in a new home accounts for nearly 500 jobs for every 1,000 homes built and 16 percent of the total income generated in building a home. Manufacturers represent a relatively small portion of associate members but that may be because they depend upon the wholesaler and retailer outlets to represent them at the local level and because single companies represent large amounts of output. The vast majority of exhibitors at the International Builders’ Show are manufacturers.
Professional services members, including financial and insurance companies, comprise one-fifth of the associate members and the same share of jobs created from building homes. Collectively, the professional, financial, and insurance industries account for a quarter of the total income generated by home building because many of these services require experience, education, and involve accepting risks. Professional services companies are similar in size to subcontractors with a median payroll of seven and annual gross revenue of $770,000 while financial and insurance companies are larger with a median payroll size of 12 and annual gross revenue over $5 million.
Typical retail, wholesale, and financial service associate members have been members for as long as the typical builder member (10 years) but subcontractors and professional service companies have shorter tenures (six and seven years respectively). Home building firms are predominantly male-headed with only 7 percent headed by a female. Associate members are more diverse stretching from over one-quarter female-headed professional and financial businesses to 16 percent of the wholesale/retail companies to 12 percent of the subcontractors headed by a female.
While the stylized model of the home building industry may be the small local firm building a couple dozen homes a year, the force behind that business is a massive collection of strong, competitive, and diverse businesses supplying and supporting an industry integral to the U.S. economy and home buyer.
NOTE: Dr. Crowe is also responsible for the development and implementation of an innovative model of the local economic impact and fiscal cost of new home construction, which has estimated the net impact of new housing in over 500 local markets.  Past research has concentrated on home ownership trends, tax issues, demographics, government mortgage insurance, local land use ordinance impacts and the impacts of housing on local economies. 
Before becoming NAHB’s Chief Economist, Dr. Crowe was NAHB’s Senior Vice President for Regulatory and Housing Policy.  Prior to NAHB, Dr. Crowe was Deputy Director of the Division of Housing and Demographic Analysis at the U.S. Department of Housing and Urban Development. 
He has served on federal advisory committees to the Census Bureau and to the U.S. Department of Housing and Urban Development. 
Dr. Crowe holds a PhD in Economics from the University of Kentucky.

Submitted by:
Michael Kurpiel, CGA, CGP

February 19, 2012

"Meet the Newly Elected NAHB Senior Officer Team"

Placing titles to names, then names with faces, is a way of having our Federation members at home see the actual volunteer leaders who have made a decision to give back to their industry what their/our industry has provided them; a career in the most noble of professions, providing shelter. As you will see and read below, our senior officer team may remind you of leaders at home. In fact, they were, still are, leaders back home. Another way to demonstrate to our Federation members is to follow what our national volunteer leadership is working towards; our industry's recovery. 
Our NAHB senior officers, in particular,Chairman of the Board Barry Rutenberg, need our engaged passion to help them with initiatives designed to help the builder get back to work. If it affects a builder it will affect an associate so the overall goal is to help our entire membership get back to work. While the media keeps touting "job creation" our senior officers are delivering strategic road maps that will help with "job retention" and eventual "job restoration." 

The board of directors in Orlando just experienced a very passionate debate regarding certain by-law amendments, with those in favor engaging the grassroots to support and those opposed equal to the task of messaging. NAHB now needs the membership, who fought hard on both sides of the by-law(s) issue to bring that same enthusiasm, that same passion and that same grassroots outreach, to deliver to our senior officers the membership mobilization needed to help them help all of us. 

NAHB advocacy; political investing, calls to action and grassroots passion uniting builders AND associate members, along side HBA staff giving us all the power of one voice in Washington, DC. That one voice carries with it the echoes hundreds of thousands building industry professionals.

Our newly elected NAHB Senior Officer team, BRAVO!
(From NAHB.org)

NAHB Chairman of the Board
Barry Rutenberg, Gainesville, Fla. 
Taking the reins as 2012 IBS Chairman this month, Barry Rutenberg is president of Barry Rutenberg and Associates, Inc., and has more than 35 years of experience in the housing industry. He has developed more than a dozen communities and 1,000 homes in and around Gainesville. He has also been active in the NAHB leadership structure at the local, state and national levels throughout his career, having served on NAHB’s Board of Directors since 1980 and on more than 25 NAHB committees and councils. He has also served as an NAHB National Vice President representing Florida and Puerto Rico for three two-year terms. Read more here.

NAHB First Vice Chairman
Rick Judson, Charlotte, N.C.

Rick is a builder and developer who owns the Evergreen Development Group. He has several decades of experience in land development and construction of single-family, multifamily and commercial projects. Read more here.

NAHB Second Vice Chairman
Kevin Kelly, Wilmington, Del. 
Kevin has been a builder and developer since he joined Leon N. Weiner & Associates in 1979 and became actively involved in the Home Builders Association of Delaware. His building experience includes land development, multifamily and single-family home building, with an emphasis on affordable housing. Read more here. 

NAHB Third Vice Chairman
Tom Woods, Blue Springs, Mo.
The newest member of the NAHB Senior Officer team, Tom joined the NAHB leadership ladder with his election to the post of Third Vice Chairman during the 2012 International Builders' Show. He is president of T.E. Woods Homes, a company he founded in 1974. His firm has developed scores of communities and more than 1,000 homes in the Greater Kansas City area. Read more here.

NAHB Immediate Past Chairman
Bob Nielsen, Reno, Nev.A leader in the Reno area home building and development industries for more than 25 years, Bob is president of Shelter Properties, a development and management company headquartered in northern Nevada. Read more here.

NAHB Chief Executive Officer
Jerry Howard, Washington, D.C. Jerry heads up NAHB's professional staff working out of the National Housing Center in Washington. He has served as the association's CEO/EVP since February of 2001. Read more here.

Let's also give special acknowledgement to all the past presidents, and now past chairmen, of our Federation, too many to name here on this blog but each extremely special in their leadership efforts and dedication in protecting our industry. Thank you, to all.

click here for the history of NAHB > http://www.nahb.org/NAHB_History/index.html

Submitted by:
Michael Kurpiel, CGA, CGP

February 12, 2012

2012 IBS: "And the 2011 Winners Are...."

The 2012 International Builders Show delivered as promised. Spectacular exhibits, educational courses that are second to none, close to 10% increase in attendance fro 2011 and that high quality, professional effort from our staff members. 

Our leadership team of the 2012 senior officers were installed and we thank them for their dedication to all our members in their efforts to defend all of our businesses. Three officers in particular should be recognized; Bob Jones, the 2011 immediate past chairman, Bob Nielsen, the new immediate past chairman and Barry Rutenberg, our 2012 chairman of the board. Once NAHB.org has been updated to include the entire team, with biographies and pictures, I will post.

Meetings during the week were highly productive, with volunteerism ever present, and our 2011 board of directors wrapped up the week with thought provoking conversation and direction. While certain initiatives were not voted on to move forward the discussions for some were, if not eye opening, certainly needed. (To read about the associate senior officer proposed by-law amendment click here > Associate senior officer )
I personally left IBS 2012 with a good feeling for the future of our Federation and a re-energized determination to help affect positive change in our industry.

One of the volunteer members highlights of the week came on Thursday morning, February 9th, at our annual Associates Awards Breakfast, with many in attendance, builder and associate as well as HBA staff from across the country and the event was held at The Peabody Hotel in Orlando, Florida

This year's group of honorees has demonstrated that actively engaged associates will keep on providing the deeply needed dedication that helps to keep our Federation of local and state HBAs at their best. Within NAHB these individuals were, and are, recognized for their accomplishments because they realize that "if 'it' affects builders 'it' will affect associates."

The 5 awards/inductions are;

1. Associate of the Year
(Presented to the most outstanding associate member for his/her dedication and proactive leadership at the local, state and, with heavy emphasis, the national level. The voting is based on a points system with past winners and builders as the judges.)

2. Bill Polley BUILD-PAC Award
(The associate member who's dedication in political fund raising efforts and helping to expand the importance of political action. The award was named after Bill Polley. Bill passed away several years ago but his political activism lives on.)

3. Induction into the Society of Honored Associates
    (3 of 4 finalists for Associate of the Year)

4. The B.E.A.M. Award 
Given to the builder who best exemplifies NAHB's motto "It's good business to do business with a member." BEAM stands for Builders Engaging Associate Members

5. The Chairman's Award
Given to an associate who went"above and beyond the call of duty" on behalf of the Associate Members Committee.

Drum roll please.................

Lanny Tillery, CGA, CGP, CAPS
Whirlpool Corporation
Michael LeCorgne, CGA, CGP, CSP
2-10 Home Buyers Warranty Corporation

Jerry Cowan
Builders Mutual Insurance Company
North Carolina

Monica Sommerfeldt Lewis, CGA
Archer Lion Inc.

H. James Lowe
Land Title Guaranty
South Dakota

"2011 B.E.A.M. AWARD"
Bill Asdal
Asdal Builders, LLC
New Jersey

Ann Hagen
Bonded Builders Warranty Group

The NAHB members, from around The Federation, congratulate you. Bravo!

I encourage associates from all over the country to make sure your state HBA submits names to NAHB staff member Betty Thweatt (bthweatt@nahb.org). Betty will send to you the forms needed for submission. It is a great way to make sure the country knows who you are proud of back home.

Submitted by:
Michael Kurpiel, CGA, CGP
2011 NAHB Associate Members Committee Chairman