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BUILDER north coast building industry association
Table of Contents Letter from the President
NEWSLETTER
North Coast Building Industry Association (NCBIA) BUILDER newsletter is the official newsletter of the NCBIA and is published monthly by the NCBIA. The NCBIA is an affiliate of the Ohio Home Builders Association (OHBA) & the National Association of Home Builders (NAHB).
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Congratulations: Mr. & Mrs. Tyler & Jennifer Yost
4
NCBIA Office
Welcome New Members
5201 Waterford Dr., Sheffield Village, OH 44035 Ph: 440.934.1090 Fax: 440.934.1089 info@ncbia.com www.ncbia.com
Spike Update
NCBIA Staff Executive Officer - Judie Docs judie@ncbia.com Administrative Assistant - Ashlyn Bellan ashlynncbia@gmail.com Marketing Associate - Maria Sabala maria.sabala.ncbia@gmail.com
Jeremy Vorndran Named NCBIA Lifetime Director
2017 NCBIA Officers
19 27 27
OHBA Executive Update
5
Eye on the Economy
6
Wire Fraud
7
OSB Price Declines
8
Installation Banquet Flyer
11
Builder Confidence
12
Fed Survey
12-13
Spike Roladex
15-17
OSHA Class
18
Executive Officer’s Report
19
Thanks for Renewing
19
Maximize Time at IBS
20-21
Evolution of Building Envelope 2018 Events Calendar
President - Chris Majzun Jr., Majzun Construction Co. Vice-President - Jeff Hensley, Lake Star Building & Remodeling Associate VP - Liz Schneider, Dollar Bank Treasurer - Steve Fleming, Shamrock Development Secretary - Jeremy Vorndran, 84 Lumber Company Immed. Past President - Mary H. Felton, Fidelity National Title
2017 NCBIA Board of Directors
22 24-25
Girls Night Photo Gallery
26
Spike Report
27
2017 NAHB & OHBA Directors These are our members who represent our local industry in Washington DC and Columbus.
Ashley Caruso-Noe, Caruso’s Cabinets Mark Craig, Mark F. Craig, Esq. Chris Husted, Prete Builders Sara Majzun-Garwood, BCT Alarm Services, Inc. Keith Martin, MBD Homes Timothy McLaughlin, CFP®, Wells Fargo Advisors, LLC Shannon Niebes, Integrated Restoration Michelle Nowlin, First Federal Savings of Lorain Tom Sear, Ryan Homes Tyler Yost, Dale Yost Construction
2017 NAHB Directors Mary H. Felton, Fidelity National Title Jeff Hensley, Lake Star Building & Remodeling
NAHB Alternate Director
Tom Caruso, Caruso’s Cabinets
Sr. NAHB Life Director & Ohio’s State Rep. to NAHB Randy Strauss Dan Strauss
NCBIA Life Directors
Strauss Construction Strauss Construction
1975 1996
OHBA Past Presidents
Tom Caruso, Caruso’s Cabinets Mary H. Felton, Fidelity National Title Jeff Hensley, Lake Star Building & Remodeling Tom Lahetta, Tom Lahetta Builders, Inc. Chris Majzun Sr., Majzun Construction Co. Chris Majzun Jr., Majzun Construction Co. Randy Strauss, Strauss Construction Bob Yost, Dale Yost Construction
Dan Strauss 1975
Randy Strauss 1996
2017 OHBA Trustees Mary H. Felton Liz Schneider Keith Martin
Fidelity National Title Dollar Bank MBD Homes
OHBA Alternate Trustee Advertising Policy - The North Coast Building Industry Association reserves the right to reject advertising in the Builder newsletter based on content. Acceptance of advertising does not imply endorsement of the product or service advertised.
November 2017
Tom Ostrander Tom Lahetta
84 Lumber Company Tom Lahetta Builders & Remodelers, Inc.
OHBA Area 2 Vice-President Mark Zolllinger
www.ncbia.com
Zollinger Builders
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A Letter from the President by Chris Majzun, Jr., Majzun Construction Co.
Congratulations to Mr. and Mrs. Tyler and Jennifer Yost
As you probably know, November is Spike Appreciation Month. If you look in our newsletter you will see our Spike Honor Roll. As I look over the names listed there, I realize that these members have the talent, hard work, perseverance and generosity that make them such extraordinary recruiters and who allow our association to grow and thrive! I personally want to tell Spikes thank you! They deserve our recognition and appreciation for being our top recruiters and for the role they play in building a solid and vital membership base for our association. As with anything else, the more you put into it, the more you get out of it - and this is true of being a Spike. The more members that Spikes recruit and retain, the more connected we all are to the power of the building industry. Greater numbers mean; a strong voice with the legislative and political decision makers that can help protect our industry, community and jobs; a greater and more reliable source of revenue to provide valuable member services to help you run your business better; greater purchasing power that we can pass along as savings and discounts to you; and more talent, ideas and expertise to help us achieve our association goals.
November 4, 2017
And one thing about a Spike is that they started with just one new member! That’s where YOU come in. If you want to increase your business contacts, networking opportunities, gain visibility and recognition among your peers - - just start with one new member. I am sure that you know of a few companies, suppliers, manufacturers, builders or remodelers, or other associated companies, who are not members. Do us all a favor, ask them to join the NCBIA. You will feel good about your contribution to our industry and you will be doing a favor for your new member company as well. With our new membership year coming up don’t stand back and let somebody else recruit someone you wish you recruited. This is your opportunity! Stand up for your industry today! We really need more members to accomplish our goals of producing quality, affordable housing in the communities we serve.
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November 2017
Mark These Dates in Your Calendar
OHBA Update
DEC 13 & 14 - OSHA Training - NCBIA Office
by Vincent J. Squillace, CAE, OHBA Exec. VP
OHBA’S NEW OFFICERS It is more the norm that the unexpected becomes the expected. I guess there is no more normal. With government interactions and legislative politics, one may as well ask a weatherman just what to expect next. In any event, it keeps things interesting.
JAN 01 - NCBIA Office CLOSED - Happy New Year JAN 09-11 - International Builders Show - Orlando, FL JAN 17 - Executive Committee 3:30 / Board of Directors Meeting 5:00 JAN 27 - Installation of Directors & Officers 5:00-8:00 PM FEB 16 - Home & Remodeling Show Setup 4:00-6:00 PM FEB 17 - Home & Remodeling Show 10:00 AM - 6:00 PM
Check the website at www.ncbia.com for up-to-date changes, additions At our recent board of trustees meeting officers for 2018 were elected. and corrections to these events! Each of them are eager to serve. Our President is Chris Tsonton of Cleveland; Vice President Tom Daniel of Tiffin and Secretary/Treasurer Jeff Wieland of Cincinnati. Our Area Vice Presidents are Enzo Perfetto of Cleveland; Richard Bancroft of Akron; Charles Ruma of Columbus and Mark Zollinger of Wayne County. This is a great group of builders who unselfishly give of their time to serve you as a member of the homebuilding industry. We are all watching events in Washington DC as the tax bill waddles through the US Congress. We hear of evolving issues as they impact the housing industry as well as the overall economy. With such an intense level of acrimony in DC it is difficult to predict what may or may not happen. Fortunately, our NAHB staff and officers are vigilant and there to help in any way they can. It’s a zoo but, more importantly, to have an advocate there fighting for you is a real asset. We wish NAHB well. OHBA does the same for you here in Columbus. The winds are always swirling and the political arena is, as mentioned above, at times a bit irrational. Hate to reduce it to such terms but it is the arena where many important items are decided. Despite it all, good thing OHBA is there doing the best we can. The best way to help is support your officers as they commit themselves to keeping OHBA a strong advocate working for you.
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Eye on the Economy
Tax and Monetary Policy Impacts on Housing
BY ROBERT DIETZ
Tax reform is the big debate in Washington, and the stakes are high. Certain components of the proposals would sideline and limit the mortgage interest and real estate tax deductions — two major factors in determining the costs and incentives of home ownership. Other elements of the proposals would provide reductions in small business and corporate tax rates and, due to NAHB advocacy efforts, protect the business interest deduction for real estate development firms.
New Home Sales Show Strength in September September’s new home sales data delivered some positive news for a housing market that has recently shown signs of sluggishness. Sales contracts for newly built single-family homes grew 18.9% in September and are running 8.6% higher on a year-to-date basis. Inventory levels of new homes have been rising, but currently register at only a 5 months’ supply. Moreover, the largest gains in new home sales are homes listed in inventory but which have not begun construction — a clear signal that additional home building is needed. Another indication of unmet demand is the rise in home prices, which recently posted an annual gain of 6.1%, according to the Case-Shiller Index. However, the higher prices have not negatively affected the national home ownership rate, which increased to 63.7% during the second quarter, making it the fifth consecutive quarter of noticeable gains. Recent gains for home ownership appear to mark a turning point for housing demand.
Side-by-side, the Senate plan is much better for housing. It offers more generally favorable treatment for S Corps and LLCs due its rate schedule and more usable 17.4% pass-through business income deduction, while also protecting important affordable housing policies like the LIHTC and the tax-exempt bond program. Change is also coming for monetary policy. Federal Reserve Governor Jerome Powell has been nominated to replace Federal Reserve Chair Janet Yellen, whose term ends in February. Powell is an excellent choice for the housing sector and will likely maintain the Fed’s current approach to monetary policy with gradual interest rate increases and balance sheet reductions. Given current market challenges — highlighted by recent reports concerning ongoing labor shortages,declining housing affordability and lagging single-family construction — tax reform and monetary policy should promote economic growth while recognizing the important role the housing industry plays in the overall economy.
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November 2017
Wire Fraud Creeps Through Real Estate Industry obtain wiring instructions. • Companies should consider adding a notification below email signatures. For example: IMPORTANT NOTICE: Never trust wiring instructions sent via email. Cyber criminals are hacking email accounts and sending emails with fake wiring instructions. Always independently confirm wiring instructions in-person or via a trusted and verified phone number. Never wire money without double-checking that the wiring instructions are correct. If you have any questions — or if you have been a victim of wire fraud, a spyware attack or other data security breach and would like to share your experience — contact NAHB’s Becky Froass at 800-368-5242 x8529.
Email hackers are becoming increasingly devious. And now, more of them are targeting consumers involved in real estate transactions. A growing trend among hackers is to rummage through consumers’ email inboxes to identify people in the process of buying a home or land. When these hackers find a potential target, they send a bogus email that looks like it’s from the home buyer’s real estate agent, title company or attorney saying there are new money-wiring procedures. The home buyers are given falsified instructions and a fraudulent account number to which many of them unwittingly wire funds — which rarely are recovered. The American Land Title Association recently formed a coalition of industry organizations to discuss best practices and develop methods of educating consumers to better recognize possible scams. In addition to NAHB, the coalition includes representatives from the Credit Union National Association, the National Association of Realtors, the Mortgage Bankers Association, the American Bankers Association, Wells Fargo and others.
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Some of the tips shared by these groups, as well as feedback from NAHB members, include: • Consumers should use caution when hitting “Reply” to certain emails. Criminals often use email addresses that are very similar to legitimate ones. When drafting a reply email, it’s safest to delete the email address in the “To” field and then re-type the intended address to ensure it goes to the correct person. • Title companies and lenders should require all wiring instructions either to be faxed, delivered by courier, or requested inperson. Many businesses have already deemed email and telephone calls as unacceptable methods of conveying wiring instructions.
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• Consumer requests regarding wire transfers should only be done in-person at a financial institution. In the case of requests to wire loan proceeds, the bank should initiate contact with the attorney to November 2017
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OSB Price Declines Consistent with Random Lengths Data BY DAVID LOGAN The price of OSB fell 1.0% in October, in contrast to prices paid for softwood lumber (+2.3%), gypsum products (+0.3%) and ready-mix concrete (+0.2%), which all increased. In addition, the price index measuring inputs to residential construction rose 0.1% in October, according to the latest Producer Price Index (PPI) release by the Bureau of Labor Statistics. The drop in OSB prices followed a three-month period in which prices increased 7.1% over the prior three months. While the monthly decline is welcome news, OSB prices remain 12.9% and 37.0% higher than they were at the beginning of 2017 and 2016, respectively. Two important factors drive disparities between price changes builders have experienced and the PPI index changes: 1. The producer price index tracks prices paid by wholesalers, distributors, and retailers rather than what those businesses charge customers. 2. The index does not include prices paid for Canadian products as it does not include imports (just as the consumer price index does not reflect prices paid for exports).
More recent data published by Random Lengths shows an even steeper decrease over the past month in the prices paid by end-consumers for OSB (just as a person is considered the end-consumer in consumer price inflation (CPI), businesses such as builders and remodelers are considered end-consumers for the purposes of PPI).
The economy-wide PPI advanced 0.4% in October after a 0.4% increase in September. The increase was driven by 0.5% and 0.3% gains in prices paid for services and goods, respectively. Final demand prices for core goods (i.e. goods excluding food and energy) increased 0.3%, accounting for over two-thirds of the monthly increase in the prices paid for goods. Final demand prices less food, energy, and trade services rose 0.2% for the third consecutive month. Three-quarters of the increase in prices paid for services was due to the 1.1% advance in margins for final demand trade services (i.e. changes in margins received by wholesalers and retailers). In contrast, margins for food retailing fell 2.1%.
The BLS report showed prices paid for softwood lumber resumed their climb after a monthly decrease in September. Softwood lumber prices have increased in all but two months of 2017.
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November 2017
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Builder Confidence Climbs to 8-Month High in November for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” Builder confidence in the market for newly-built single-family homes “average” or “low to very low.” Scores for each component are then rose two points to a level of 70 in November on the National Association used to calculate a seasonally adjusted index where any number over of Home Builders/Wells Fargo Housing Market Index (HMI). This was 50 indicates that more builders view conditions as good than poor. the highest report since March. Despite the increase, builders continue to face supply-side constraints, such as lot and labor shortages and Two out of the three HMI components registered gains in November. The component gauging current sales conditions rose two points to ongoing building material price increases. 77 and the index measuring buyer traffic increased two points to 50. Nonetheless, demand for single-family housing is increasing at Meanwhile, the index charting sales expectations in the next six months a consistent pace, driven by job and economic growth, rising dropped a single point to 77. homeownership rates and limited housing inventory. With these economic fundamentals in place, we should see continued upward Looking at the three-month moving averages for regional HMI scores, the Northeast jumped five points to 54 and the South rose one point movement of the single-family housing market as we close out 2017. to 69. Both the West and Midwest remained unchanged at 77 and 63, respectively. BY ROBERT DIETZ
HMI tables can be found at nahb.org/hmi.
Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations
Fed Survey Confirms Broader Economic Improvement BY MICHAEL NEAL Information provided by the Federal Reserve Board in its October 2017 release of the Senior Loan Officer Opinion Survey (SLOOS) indicates that lending standards on commercial and industrial (C&I) loans to large and medium-sized firms continue to ease on net. The continued easing in standards on C&I loans suggests that that the loan stock of C&I loans continued to expand. It also confirms the lower unemployment rate as well as the recent growth in the nation’s economy.
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November 2017
According to the SLOOS, lending standards on C&I loans, the largest loan category on bank balance sheets, eased by 8.5 percent on net over the previous 3 months ending in late September/early October. The net easing on C&I loans reflected the 8.5 percent of respondents mentioning that standards on these loans had eased at their bank over the past quarter. Meanwhile, no senior loan officer reported tightening standards on C&I loans over the quarter.
Previous analysis has noted that not only is the unemployment rate low, but it is also below the Congressional Budget Office’s (CBO) estimate of the natural (non-accelerating inflation) rate of unemployment. At the same time, the nation’s total economic output now exceeds CBO’s estimate of its potential level. The relationship between the locations of the actual unemployment rate relative to its natural rate and actual GDP relative to its potential level is captured by Okun’s Law:
The importance of these responses is illustrated in the figure above, easier lending standards on net coincide with growth in the stock of C&I loans held at FDIC-insured banks. At the same time, net lending standards on C&I loans can foretell a recession approximately one year into the future. The acceleration in net lending standards on C&I loans then indicates that a recession is unlikely in the next 12 months (a previous blog cited yield curve analysis by the Federal Reserve Bank of New York which put the recession probability over the next 12 to 18 months at approximately 10 percent), but also that the stock of these business loans should continue to grow.
(YPotential – YActual)/YPotential = c(uActual – uNatural Rate) Okun’s law, which ignores the role of capital and the role of productivity in the determination of total GDP, posits that the percentage distance of actual GDP from its potential, (YPotential – YActual)/YPotential, is directly related to the gap between the actual unemployment rate and its natural rate, (uActual – uNatural Rate), with c denoting the factor relating changes in unemployment to changes in total output, GDP. The scatterplot above, which uses data going back to 1949, illustrates the direct relation between the two sides of the equal sign. Periods in which actual GDP exceeds its potential coincide with periods when actual unemployment rate is below its natural rate (bottom left box). Similarly, periods when the actual GDP is above its potential coincide with periods when the unemployment rate is below its potential (upper right box). The results of the October iteration of the Fed SLOOS indicate that lending standards on C&I loans continue to ease. This result suggests continued improvement in the nation’s labor market and continued growth in the nation’s economy. However, monetary policy typically tightens in response to periods when actual GDP exceeds its potential, and there is little expectation that policy should deviate dramatically if the nominated Chairman is confirmed.
Assessing prospects for the trend of C&I loans in the near future is important because the trend in the stock of C&I loans is inversely correlated with the direction of the unemployment rate. As illustrated by the figure above, periods of growth in the stock of C&I loans held at FDIC-insured institutions corresponds to a decline in the unemployment rate. Similarly, sustained decreases in the stock of C&I loans held by these banks coincide with an increase in the unemployment rate. Intuitively, growth in business investment, partly stemming from easier lending standards on business loans, spurs additional hiring thereby lowering the unemployment rate.
November 2017
Although net lending standards on C&I loans, which continues to ease, is the theoretical input to estimating future macroeconomic conditions, demand for C&I loans weakened on net for the third consecutive quarter. The relatively weaker demand for C&I loans may be restraining the growth in the stock of these loans. In addition, despite the low unemployment rate, inflation is expected to return to a sub-2 percent rate. At the same time, there is a possibility that some consensus emerges that doubts the accuracy of the current estimate of potential GDP. If inflation remains low and potential GDP is higher than currently estimated, then current macroeconomic conditions would be still recovering, and the policy rate should reflect this state of play.
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November 2017
Executive Officer’s Report by Judie Docs, CSP, MCSP, MIRM, CMP, CGP
I am grateful all year round to be a part of this great association, but in November, the month most commonly associated with feelings of gratitude I would like to take a moment to express my thanks and sense of gratefulness for so many things. It is my privilege to serve the North Coast Building Industry Association who work for the good of the industry.
count. People who make up the unmet need, who for one reason or another, don’t have the means or wherewithal for shelter, safety, health, sanctuary, count.
The job of so many of us in housing is to expand the universe of people its resources of real estate, money, talent, time, and materials reach. It’s not to accept the way things are of who counts today in housing data, but to extend the number of people housing includes and gives access There is a lot to be thankful for when looking at the current state of the to. industry as this 2017 Thanksgiving has come and gone. Recovery is continuing, and production has increased. The young child of one of our children. He or she is housing data that counts. To know why what matters, it might help to remember what housing means. Housing puts us in the business and livelihood we’re in. Not the other way around. Housing is defined as a) shelter, lodging; and b) dwellings provided for people. These thoughts are thoughts of gratitude to the men and women–the people–who make housing a people business. This is a thank you to all Housing is also an industry sector. It’s a community of people who plan, our members who commit their lives and careers in the housing industry. legislate, entitle, invest in, design, develop, engineer, build, market, sell, manage, or rent homes as a livelihood and as a value-generating enterprise. Housing can operate off a kitchen table, in a pickup truck, a garage, a double-wide, or a sleek urban office high-rise. Chris Collins
Welcome New Member
Housing is a people business, but so much more is involved. People, land, money, time, and materials make it happen, and some of those people do extraordinary things to make it happen. Just the same, people can get in the way of it happening, and go to extraordinary lengths in their push against it. But even when that push against it makes land, money, time, talent, and other resources harder to secure and invest, people figure out ways to work around those obstacles. Still, we are mistaken if we think housing is no more than an industry. Homes are not merely structures, homes are where we live. The street, a bench, a shopping cart, a car can be home, and is for too many. Housing is a mirror to society. When it comes to housing data, we don’t get to count only the ones we want to count when it comes to who has access to it and who doesn’t. Those people priced out of housing access today count. Those who don’t have it, and don’t even aspire to have it,
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16 Ways to Maximize Your Time at IBS Make the Most of the International Builders’ Show with Good Planning BY CHARLIE SCOTT Advance planning and some pro tips will help maximize your time at IBS The 2018 International Builders’ Show (IBS) marks my 27th consecutive year of attendance. My total investment in IBS over those years works out to be about 27 weeks of time and well over $100,000 in costs. Has IBS attendance been worth all this time and money? Honestly, sometimes it has, and sometimes it has not. But that’s my fault, because the return on investment was up to me and my preparation, and as is the case in almost all aspects of home building, the devil is in the details. IBS has more education, products, displays, networking opportunities, and events than any person could hope to digest in a three-day visit. Going to IBS without a plan and goals would be the equivalent of trying to build a house without blueprints or specifications. To help you maximize your IBS ROI, I am going to share my top 15 secrets that I learned over the past two decades of attendance. Your top goal for attending IBS has to be to learn. When I began my home building career, I wanted to earn more money. My goal was simply to triple my income. To pursue this lofty goal, I became a new home salesperson. Success was not immediate—it took three months of intense education, practice, and work before I began to make progress. The first lesson I learned in home building was that earning only comes before learning in the dictionary. In other words, if you want to earn more money or be successful, first you have to grow your knowledge and skill base. This is as true today as it was 30 years ago, and IBS can be instrumental in that pursuit. Two other goals should be to look for processes and thought leaders that challenge the way you currently operate. Don’t make the mistake of only looking for the things that reaffirm what you are already doing. And finally, despite what Curly said in the movie “City Slickers,” your IBS ROI will not likely be based upon “one big thing,” but actually on a lot of little discoveries, so keep a list of these little things that can add up big over time. Now, here are the secrets.
Before You Go to IBS 1. Set specific objectives (e.g., research new specifications, expage 20
plore new products, learn about customer service and sales training options, etc.). All staff members going to the show must have several pre-planned goals. An “I’ll figure it out when I get there” attitude is less productive than committing to specific activities. Also, keep in mind that many staffers would prefer a week of education, growth, and learning at IBS over a salary increase. This can work out as a win-win-win for the staff and the company, and ultimately provide better service to your homeowners. Never underestimate the value of taking a promising staff person to IBS. I can’t tell you how many staffers excitedly left IBS with a new appreciation for the industry and an incredible sense of scale (suddenly 45 homes a year wasn’t that many after all). 2. Create daily plans for each of the three IBS days from 7 a.m. until 9 p.m. Remember, this isn’t a vacation, it’s some of the hardest work of the year. If you want to add a few days before or after IBS for vacation time, do, but maximize the three IBS days to their fullest extent. Also, be sure to leave an out-of-office voicemail and email, so you do not have to deal with fires back home while you’re away. Oddly enough, many of these fires somehow find a way to extinguish themselves by the time you return four to five days later. 3. Review all IBS Educational Programs and pick a first, second, and third choice for each slot. If choice No. 1 doesn’t pan out or is full, then immediately head for choice No. 2. For critical No. 1-rated sessions arrive at least 20 minutes early. Most rooms have strictly enforced capacity limits and I have seen 100-plus frustrated attendees standing outside their desired program. I am estimating that IBS attendance will be up 10 to 20 percent this year, but the educational programs were only increased by a fraction, so room capacity will likely be an even bigger challenge at IBS 2015. 4. Research networking groups prior to the show, such as Builder Partnerships and software user groups. Many have meeting at IBS and are a great way to both leverage your IBS investment and expand your networking opportunities. 5. Fill in the holes in your Educational Program list by exploring the exhibitors space or arranging one-on-one meetings with fellow builders, consultants, manufacturers, etc. Some builders report the best sessions were held on the exhibit floor. These sessions were informal and allowed for more questions. Invest some time reviewing those offerings and selecting any that resonate.
At IBS 6. Meet each morning with your team at 7 a.m. and discuss your daily plans. If you are attending with others split up educational sessions so
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November 2017
as to maximize coverage. Have everyone keep notes/handouts and share the information. If you are not taking other staff members, then arrange to meet each morning with an industry peer to compare notes. 7. Download each evening with your team at 5:30 p.m. to share findings and adjust the following day’s plan. Say for example a purchasing manager made a great contact with a window manufacturer that may be a perfect solution to one of the pre-show objectives. Adjusting your educational program list to meet with a vice president of national sales may be a better option to enhance your overall IBS ROI. 8. Complete the educational program surveys. The program selectors want to give the attendee’s evaluations their due weight in selecting future programs. Top programs and speakers should be rated highly and vice versa. Also, if the session is especially good, make a point to walk up to a speaker and introduce yourself and exchange business cards. Many speakers at the Builders’ Show are on their own nickel as a means to give back to the industry. They may be interested in sharing more of their knowledge with you. 9. Tour the Exhibitors space with a plan. Walking around aimlessly leads to impulse discussions that burn your valuable goals/objectives time. The Exhibitors space can justify the IBS investment alone by offering new product information, installation solutions, etc. Many of the manufacturers’ booths also have their designers, engineers, technology staff, and executives in attendance, too. If you are having challenges with anything from creaks to leaks—the answer is out there. And, if you are really on top of your game, then pre-schedule meetings with these Exhibitors weeks in advance, and confirm meeting location, time, and topics.
There may be other opportunities for learning while you are in town. 15. Visit the IBS show homes, including the ones at Professional Builder’s Show Village outside the convention center and The New American Home, which is off site.
After IBS 16. Teach others. When you (and other staff) return from IBS, organize your notes and handouts and prepare a group presentation of findings and outcomes with your office staff, salespeople, superintendents, trade partners, bankers, etc. The more you teach what you learned the deeper it becomes ingrained in your own learning, not to mention increasing your ROI by sharing this newfound knowledge. To the best of my math reckoning, I believe the IBS time and $100,000 investment has produced well over $10 million in net profits. That’s a hundred-fold ROI and illustrates the value of IBS, and what can be gained if attendance is maximized. The 10 Don’ts 1. Don’t go to IBS for half days. IBS is clearly a full-time job. 2. Don’t meet your local trade partners at IBS. You can do that at home. 3. Don’t bring your office work to IBS. The show is an important investment in growing your knowledge. Returning emails is a misuse of your personal investment. Even checking in with the office can lead to hours of IBS disruption.
10. Eat a big breakfast—and take a snack for lunch. Long lines, lack of seating, and difficulty in coordinating lunch schedules can be a major time killer and pain. And, speaking of pain, it would be a good idea to take some ibuprofen along, too.
4. Don’t stay out late or have bad health habits. Be well rested. Every day at IBS is game day.
11. Wear comfortable shoes. You won’t believe how many miles you will walk (I estimate at least five miles per day).
5. Don’t stay in an educational session that isn’t teaching you anything. If it doesn’t meet your expectations, move on. Sometimes a program doesn’t match the description, which is why you preselected some backups.
12. Distribute and collect 25 business cards. Exchange cards with fellow builders, consultants, and exhibitors. Do not rely on the exhibitor’s space booth card scanning system. Sometimes, the information you need arrives months later, or is not specific to your request. A lot of the exhibitors get overwhelmed with booth visitors and cannot distinguish the urgent needs from the general information inquiries. If you exchange business cards, then you can follow up as your need requires. 13. Visit the NAHB Bookstore. It is a repository of hundreds of specific books on topics from land planning to customer service and everything in between. The bookstore offers you the opportunity to review the books before purchasing. Many of the Builders’ Show educational session speakers are also authors and have their books in the bookstore, for a deeper educational dive into their areas of expertise. 14. Be sure to check for pre- or post-IBS educational programs. November 2017
6. Don’t forget to fill out the educational session evaluations. And if a home builder is a speaker, the session should get bonus points. Learning from fellow builders was invaluable in my IBS learning. 7. Don’t neglect your routine. Build into the plan your normal hours of sleep and exercise. 8. Don’t develop conference guide tunnel vision. There are many learning opportunities in the education sessions, exhibitors space, and networking. Have a plan for all three. 9. Don’t count on the Exhibitor space scanning system. For important information or networking, exchange business cards. 10. Don’t forget to call home. Behind every successful person is a supportive family and home life.
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The Evolution of the Building Envelope
Through the last few decades, the building industry has seen immense innovations that have contributed to safer, faster building practices and more energy-efficient homes. Builders’ curiosity in bringing those innovations to their projects has propelled building structures into the 21st century. Now, home building design and engineering looks much different than it did in the 18th century.
Building Structures of the Past Mortise and tenon joints have given way to today’s advanced wood framing, thanks to revolutionary products that have simplified the process and allowed builders to focus on innovation.
layers ourselves and determine how to manage or mitigate the potential for water intrusion and the infiltration and exfiltration of air,” said Kurt Koch, vice president of engineering and innovation for Huber Engineered Woods. “We observed practices in the field and consulted with experts so that we could develop a system that would revolutionize wood-frame construction.” Enter ZIP System® sheathing and tape. With its built-in water- and air-resistive barrier, ZIP System sheathing and tape integrates builders’ envelope needs with structural sheathing requirements. Originally adopted by progressive builders, ZIP System sheathing and tape is now used by a widespread audience from production and custom home builders to multifamily, mixeduse and remodeling specialists. To learn more about how ZIP System sheathing and tape is revolutionizing the construction process for builders, visit ZIPRevolution.com.
Buildings were once made out of millennium-old trees that allowed a large amount of energy to flow in and out of building structures. Without insulation, buildings dried out in the summer and contracted in the winter. But as time passed, so did consumers’ desire for greater indoor comfort. To satisfy this new need, builders began to fill wall cavities with insulation, which started a domino effect. Drying slowed down as more thermal insulation was added, but builders could no longer turn a blind eye to water and air control. The importance of control layers was a major shift in the industry. Filling wall cavities led to examining control layers in building enclosures and, ultimately, the prioritization of those layers to satisfy structural and fire safety ratings. With this newfound knowledge, builders began to learn the order of importance — water, air vapor, thermal management.
Building Envelope Priorities Now Curiosity and demand for better building enclosures have propelled the industry forward. Water barriers weren’t considered an integral part of the wall system until recent history. Now, water management is the No.1 focus, followed by air management. To meet these needs and simplify the building process, Huber Engineered Woods developed an exterior roof and wall system that not only solved water and air management challenges, but also made the installation process more efficient. “Prior to launching a new product, we had to learn about the control page 22 www.ncbia.com
November 2017
NEW HOME BUYERS LIMITED WARRANTY BOOKS NOW AVAILABLE Warranty book Updated and Available FOR ONLY $20 EACH! In a binder so you can include other walkthrough documents, warranties, etc.
Email your order to judie@ncbia.com or call the NCBIA Office at (440) 934-1090 November 2017
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Photo Gallery -- Girls Night
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geico.com/disc/nahb 1-800-368-2734 Some discounts, coverages, payment plans and features are not available in all states or all GEICO companies. GEICO contracts with various membership entities and other organizations, but these entities do not underwrite the offered insurance products. Discount amount varies in some states. One group discount applicable per policy. Coverage is individual. In New York a premium reduction may be available. GEICO may not be involved in a formal relationship with each organization; however, you still may qualify for a special discount based on your membership, employment or affiliation with those organizations. GEICO is a registered service mark of Government Employees Insurance Company, Washington, D.C. 20076; a Berkshire Hathaway Inc. subsidiary. GEICO Gecko image Š 1999-2016. Š 2016 GEICO
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November 2017
THANK YOU SPIKES!
STATESMAN SPIKE (500-999 SPIKE CREDITS) Bob Yost.......................Dale Yost Construction............................ 605.25 SUPER SPIKE (250-499 SPIKE CREDITS) Mary H. Felton...........Fidelity National Title............................. 368.25 Terry Bennett...............Bennett Builders....................................... 297.75 ROYAL SPIKE (150-249 SPIKE CREDITS) Jack Kousma...............Kousma Insulation................................... 233.50 Chris Majzun Jr. .........Majzun Construction............................... 229.00 Bill Perritt....................Perritt Building Co................................... 220.50 Bucky Kopf..................Kopf Construction Corp......................... 190.00 Randy K. Strauss........Strauss Construction............................... 175.00 Bill Comerford............Hovey Kaiser Insurance Associates...... 173.50 Jeff Hensley.................Lake Star Building & Remodeling......... 162.25 RED SPIKE (100-149 SPIKE CREDITS) Tom Lahetta................Tom Lahetta Builders.............................. 137.00 Chris Majzun Sr..........Majzun Construction............................... 101.00 GREEN SPIKE (50-99 SPIKE CREDITS) Patrick Shenigo...........ShenCon Construction, LLC.................. 96.50 Thomas Caruso...........Caruso’s Cabinets.................................... 91.75 Tom Sear......................Ryan Homes............................................. 91.25 Mike Lapos..................Lapos Construction................................. 75.50 Chris Mead..................Maloney & Novotny, LLC...................... 64.00
Sara Majzun- Garwood.... BCT Alarm Services................................. 64.50 Aaron Kalizewski.......Grande Maison Construction................. 57.50 Ray Allen Thom..........Thom Concrete ........................................ 50.50 LIFE SPIKE (25-49 SPIKE CREDITS) Jason Scott...................North Star Builders.................................. 39.00 Steve Schafer...............Schafer Development.............................. 30.50 Jeremy Vorndran........84 Lumber................................................. 30.50 John Daly.....................Old Republic Title.................................... 25.50 BLUE SPIKE (6-24 SPIKE CREDITS) Liz Schneider..............Dollar Bank............................................... 18.50 Jason Higgins..............Sunnyside Chevrolet............................... 14.00 Ken Cassell..................Cassell Construction................................ 13.50 Chris Collins...............Carter Lumber Company....................... 12.50 Michelle Nowlin.........First Federal Savings of Lorain.............. 13.00 Tom Ostrander............84 Lumber Co........................................... 11.50 Tami Lanphere............Town Money Saver.................................. 10.50 Jeff Lugar.....................ABC Supply Co........................................ 10.00 Keith Martin................MBD Homes............................................. 9.00 John Wargo..................Mason Structural Steel............................ 6.50
Our SPIKES are Our FOUNDATION
Jeremy Vorndran, named NCBIA Lifetime Director The status of North Coast Building Industry Association (NCBIA) Lifetime Director is to recognize and honor special members of the association who have made outstanding contributions and who have shown longstanding dedication and support for the building industry. On November 8, 2017 the NCBIA Board of Directors named Jeremy Vorndran, NCBIA Honorary Lifetime Director. In our 74-year history only 22 members have been named Honorary Life Directors and only 8 are Honorary Active Life Directors meaning they still participate in association activities either at the local, state or national level. Jeremy has been a member of the association since 2002 and was first elected to the Board of Directors in 2003 and continues to serve to this day. Jeremy is presently serving as Secretary of the association. In addition to serving as chairperson and committee member for numerous committees, Jeremy has always actively recruited new members and has achieved Life Spike Status having recruited and/or retained over 30 members for the association. November 2017
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1 Private offer amount varies by model. Up to $500 offer for retail deliveries and up to $1,000 offer for fleet deliveries. Valid toward the purchase or lease of eligible new 2016 and 2017 model year vehicles. Customer must take delivery by 1/2/18. Not compatible with other private offers. Not valid on prior purchases. Compatible with many current incentives. Incentives are subject to change without notice. Offer excludes Chevrolet Bolt, Camaro, Chevy SS, Corvette, Sonic, Spark, Trax, Volt, Buick Cascada, Lacrosse, Regal, Verano and all Cadillac vehicles. Additional GM models may be excluded from time to time at GM’s sole discretion. See dealer for details. 2Offer available to qualified fleet customers. Not compatible with some other offers. Take delivery by 12/31/17. See dealer for details. 3To qualify, vehicle must be used in the day-to-day operations of your business and not solely for personal/non-business-related transportation purposes. Must provide proof of business. For complete program requirements, including information regarding offers, vehicles, equipment, options, warranties, and ordering, consult your dealer or visit gmbusinesschoice.com. Take delivery by 1/2/18. 4 Not eligible on associated accessories from third-party independent suppliers. Not available with some other offers. Take delivery by 1/2/18. See dealer for details. ©2017 General Motors, LLC. All rights reserved. The marks appearing in this ad are the trademarks or service marks of GM, its subsidiaries, affiliates, or licensors.