Sutton Leads Remodelors Council in 2004
Doug Sutton, Sr., CGR, CAPS, of Springfield, IL, took the reins as the 2004 chair of Remodelors™ Council during the Remodelors Council Chairman’s Dinner on Jan. 20 at the International Builders Show in Las Vegas.

Residential Remodeling Enters 2004 on a Strong Note
Professional remodelers posted their highest year-end numbers in the fourth quarter of 2003 than in any fourth quarter of the past two years, and most expect business to stay strong as they enter 2004, according to the results of the National Association of Home Builders’ Remodeling Market Index (RMI).

“We anticipate that when the final numbers are tallied, the 2003 remodeling market will close at $182 billion, surpassing last year’s $173 billion by about five percent,” said NAHB Remodelors™ Council Chairman Doug Sutton, CGR, CAPS, a remodeler from Springfield, IL. “It has been a banner year for the remodeling industry as a whole, and we feel very good about our businesses as we move into the new year.”

The latest RMI is based on a quarterly survey of 565 professional remodelers, whose answers to a series of questions were assigned numerical values 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 trends.

While the RMI fell three points from the third quarter of 2003, from 53 to 50, both indexes showed marked improvement over the fourth quarter in 2002, which is the best comparison because the RMI is not seasonally adjusted.

The index gauging current market conditions rose to 50.3, a seven-point gain over 2002’s 43.2. The index measuring future expectations moved to 48.3, a nine-point gain over last year’s 39.1. The West posted the largest year-over gain, rising 13 points to end at 56.4. Every region posted a gain of at least six points over 2002’s fourth quarter.

Minor additions and alterations (less than $25,000) among both owners and renters improved seven points over 2002’s fourth quarter, a change from 43 to 50. Major additions and alterations increased by 12 points over last year, from 38 to 50. Maintenance and repairs saw a minor growth compared to 2002, from 48 to 50.

Consumers Become More Knowledgeable

Meanwhile, results of the “special questions” section of the RMI provide valuable insight into today’s remodeling consumer, including: customer expectations, the public’s view of the remodeling industry, and common reasons why people remodel.

While fly-by-night contractors have plagued the industry and damaged its reputation for a number of years, 70% of respondents felt the public’s image of industry has improved.

“As consumers become more sophisticated in their choices and more knowledgeable about remodeling, they can decipher who are the ‘fly-by-nighters’ and who are legitimate contractors who continue honing their professional knowledge and skills to better their craftsmanship,” said Sutton.

Indeed, consumers have become more sophisticated in their knowledge of and participation in their remodeling projects. Fifty-seven percent of respondents noted that customers are better informed on remodeling projects, up from 47% when remodelers were polled in 2000. Also, while consumers have expected a quicker turnaround on proposals and estimates for their projects for years, the demand has fallen to 53% from a high of 60% in 1998. The reason could be that customers now have a better understanding of their projects because of their increased involvement.

Also notable is the fact that more than 53% of respondents said their customers have an improved awareness of brand names for products and appliances for remodeling projects. These respondents add that homeowners today more often than not, request product and material information to help their decision process.

According to 79% of respondents, the number one reason why consumers remodel is because they need more space.

To view the latest RMI, click here. 

If you would like to participate in the RMI survey, contact Melanie Hinton. [return to top]

Couldn’t Attend IBS? Here is What You Missed…
The Winter Board Meetings have come and gone but the work goes on. Here are the latest developments coming out of the January meetings:

CAPS Board of Governors

To date:

• 76 CAPS graduated in 2004

2003 Statistics:

• 58 CAPS courses were conducted in 2003
• 173 CAPS graduates in 2003
• The CAPS Board is pleased to report that Mike Weiss, CGR, GMB, CAPS, was reappointed and that Steve Robinson, CGR, CAPS, GMB, was recommended and approved to sit on the CAPS Board of Governors.
• The CAPS program will have it’s own full color newsletter. It will be called CAPS Connection. Plans are for three issues per year: two hardcopy and one electronic. The first issue is scheduled for March 2004.
• The CAPS Board approved the Graduate Realtors Institute (GRI) designation as an exemption from the Introduction to Business Management CAPS course requirement.

CGR Board of Governors

To date:

• 55 CGRs have graduated in 2004
• Since 2001, the CGR program has had a 145%  increase in graduation rates
  In 2003, 126 CGR applications were received
  290 candidates took PREP in 2003
• The CGR Board is pleased to report that the following individuals were recommended and approved to sit on the CGR Board of Governors:
  • Eric Graham, CGR, CAPS, GMB;
  • Alan Hanbury, CGR, CAPS;
  • Steve Robinson, CGR, CAPS, GMB; and
  • Scott Sevon, CGR, CAPS
• The CGR Board awarded Kieren Corcoran of Georgia-Pacific and Brett Boyum from Marvin the honorary CGRA designation. Both now sit on the CGR Board of Governors.
• The CGR Board approved Risk Management and Insurance for Building Professionals course for the CGR designation program. Successful completion of this course will enable CGR candidates to meet the Contracts, Liability & Risk Management content area. This course is also approved for CGR continuing education.

Education & Business Development Committee

• The majority of the meeting was focused on follow-up from our Education Program Development Brainstorming session during the Fall Board meeting.
• The committee reviewed the 1996 Cost of Doing Business Study and the Remodeling Market Index (RMI) surveys.
• The committee discussed the process for developing education programs related to small business wealth accumulation and retirement strategies.
• BuilderBooks staff requested comments on the “How to find a Professional Remodeler” brochure. The brochure is being redesigned in 2004.

Membership and Local Council Development Committee

• Current Membership Statistics — As of November 2003, there are 6,787 active members. In November of 2002, there were 6,155 active members. That is an increase of 632 members.
• Four new councils formed in 2003:
  • Greater Columbus HB;
  • Lake Norman HBA;
  • Fredericksburg HBA; and
  • San Juan HB
• Seven Locals were selected among many applicants to participate in this two-year pilot initiative offering 50 percent off dues to new members their first year of membership. The locals:
  • Greater Indianapolis HBA
  • BA of Metro Pittsburgh
  • HBA of Greater Columbia
  • All of Iowa - Remodelors Councils
        - Greater Cedar Rapids Area Home Builders
        - HBA of Greater Des Moines
        - HBA of Iowa City
  • Greater Fort Worth HBA
  • BIA of Whatcom County
  • Valley HBA (non Remodelors Council HBA)

Past Chairs Leadership Development Committee 

• $600 has been collected for the Bryan Patchan Scholarship Fund since December. Another $2,000 was accepted or pledged at the Remodelors™ Council General Session meeting on January 18. The scholarship for $1,000 to defray travel costs to the spring board meeting will be awarded in early March.
• An interview committee made up of Jan Williams, Alan Hanbury and Bill Owens will be interviewing candidates for the Board of Trustees and the Observer position.
• It was proposed that past chairs volunteer to be a liaison to a Remodelers Council committee for a period of one year.
• Six basic questions have been developed to interview past chairs about the history of the Remodelors™ Council.

Public Affairs Committee

• The Remodelors™ Council will participate in a Rebuilding Together project during the Remodeling Show (formerly known as the Remodelers' Show) in early October. Leading the project will be representatives from Rebuilding Together Chicago and the Remodelors Council™ of Greater Chicago.
• The Public Affairs Committee will work with NAHB staff member Ken Ford to create a template or brochure for local councils on how to organize and promote the benefits of working with NAHB members with the emphasis on the Remodelors Council after a natural disaster.
• The Public Affairs Committee created a task force to review and create the process of selecting the America’s Best Hall of Fame Award recipient.
• The Public Affairs Committee created a task force to review the criteria for the CADRE and Remodelor of the Year awards.

 Remodelors™ Council Board of Trustee 

• Chairman Mike Weiss highlighted the Remodelors™ Council successes for 2003. These included the new brochure, “Leading the Way”, the new member pilot program, new contracts with the magazine publishers, and the joint promotion with NARI.
• President Kent Conine toasted the Remodelors™ Council and thanked them for being a valuable asset to the organization
• An new standing committee has been established for the Remodelors™ Council to be called Business Associates Committee

May is National Home Remodeling Month
In the spring, a home owner's fancy turns to thoughts of sprucing up his/her very own little corner of the universe. With spring cleaning comes a fresh look at the home, and for many this is the time when the decision is made to make a change, to remodel. What better time of the year for National Home Remodeling Month®.

This year, the Remodelors™ Council will promote the idea of aging in place and our CAPS designation.

Throughout May, be sure to take advantage of the opportunities surrounding National Remodeling Month to help publicize the industry and emphasize to home owners the importance of hiring qualified, professional remodelers. Contact your local council to find out about plans for the month and join this important campaign. 

The National Remodelors™ Council will have downloadable material to help promote National Remodeling Month including proclamations, public service announcements, press releases and articles by the end of February. Visit the Remodelors™ Council section at www.nahb.org for more information. We are currently looking for consumer-oriented articles from members to promote throughout the month. If you are interested in writing an article, contact Melanie Hinton. [return to top]

Why Do I Need a Designation?
You may ask yourself, why do I need to spend my time and money on a designation. Or perhaps, what’s in it for me? Like many industries, the building and remodeling industry has various associations offering accreditation for continuing education and training. But is it worth the time and expense to pursue them?

There are several angles to view the rewards from: marketing, professional development, business development and personal development are just a few.

From a personal and professional development standpoint, great value can be realized by attending the classes/seminars in pursuit of any designation. Sitting with like-minded professionals with similar goals, in a focused presentation designed to help you with your business pursuit has real value. It’s a time to focus, and exchange ideas with other folks with similar business interests and similar backgrounds. That idea exchange and thought-provoking atmosphere alone is worth the time and money to participate. You can’t get that from a cassette tape!

From a business standpoint, the advantages and rewards are similar: you acquire knowledge on a specific area of business to help you gain an edge over others. You have the opportunity to hear it from someone who’s ‘been there, done that.’ You get a chance for one-on-one dialogue, specific questions and examples, and often establish a resource for future questions. The relationships formed in pursuit of a designation can help you continue in your business endeavors. I believe the value of networking is one of the most understated advantages of everything we do in our association—whatever association that might be.

The marketing opportunities are boundless. As a business person, I’m sure everyone can recognize the need to leverage any investment (time or money) for maximum return. You can use your new credentials as a tool to demonstrate your expertise in a particular area, to express your commitment to the industry, to capitalize on the recognition you receive and more. You can now be the voice of an authoritative expert, and may very well find yourself fielding calls and questions from magazines, newspapers, civic groups, or just curious consumers. All of that can help you establish credibility.

In all, it’s far beyond the day or two you spend in a ‘classroom.’ It’s the personal growth, the professional knowledge and expertise, the networking that often lasts a career span, and the satisfaction that you’ve taken steps to raise your performance. It’s no small coincidence that when you read success stories, or read trade publications, that the people featured always seem to have some initials after their name, indicating a deserved designation that’s reflected in their business success.

In recognition of this and much more, NAHB has announced that February is ‘Designation Month.’ Watch NAHB’s web site for special events and a listing of classes. By educating — and continuing to educate — its members, NAHB works hard to assure its own continued success and excellence.
 

Greg Miedema, CGR, CAPS, is president of Dakota Builders in Tucson, AZ.  He is chair and founder of the local Remodelors™ Council, and a member of the Remodelors™ Council Board of Trustees and currently serves as the chairman of the Remodelors™ Council Public Affairs Committee. The Southern Arizona Home Builders Association (SAHBA) has named Dakota Builders, Inc. Remodelor of the Year in 1998, 1999, and 2000.   [return to top]

Did You Ever Wonder If? Need Some Advice?
If that’s the case, visit the Remodelors™ Council new message board on www.nahb.org. The Remodelors™ Council message board allows you to ask questions and get the answers from seasoned industry peers. Feel free to ask you question or respond to your peers. Visit www.nahb.org/forums for the current list of discussions or give us your suggestions.

Contact Melanie Hinton, 800-368-5242 x8451 for details. [return to top]

President Bush Mentions Remodeling Industry in Economic Report
Everyone says that the builiding industry has played a key role during this time of economic recovery and now the president of the United States has remarked on it too. While in New Hampshire discussing his six-point economic plan, President George W. Bush highlighted homeowners taking their latest tax relief checks and using it to remodeling their homes.

Bush told the story of Steve Marshall, who works at Fidelity Investments in New Hampshire. Marshall received a $2,200 tax credit from President Bush’s relief plan. Marshall put that $2,200 towards a new bathroom in his house.

“Steve remodeled his house with his tax relief,” said Bush. “Somebody had to come and remodel the house. Somebody had to buy the equipment. The way this economy works is when you put money in circulation; you increase demand for goods and services. And that is important when times are slow.” 

President Bush used Marshall and others as examples of how his tax relief package has put money into the economy. And, looking at the latest Remodeling Market Index, anyone can see that the remodeling industry and the general homebuilding industry has indeed play key roles as the economy takes a positive turn. [return to top]

Online Coloring Book Educates Children About Home Building
Introduce the world of construction to a new generation. Teaching elementary-age children about home building and preservation not only promotes construction but also promotes your company to numerous new prospects.

NAHB’s Homes of Our Own educational coloring book has an interactive new home. Whether in school, at home or at the library, all children with Web access now can participate in Homes of Our Own, learning the process of building homes, discovering how builders protect the environment and even drawing and coloring pictures of their own homes in a virtual environment.

The online coloring book features the inventive, informative drawings of the original Homes of Our Own book, which children can color online using a palette of colors and brushes. Innovative new features allow children to e-mail their drawings to friends and family, print their masterpieces and receive an official “Junior Home Builder” certificate online.

To support the virtual coloring book program, NAHB developed additional online resources to help members and associations implement Homes of Our Own in their communities. Information posted online includes a resource kit with suggestions about using the online coloring book in your local community, information on ordering the Homes of Our Own companion video, tree-planting guides and a Homes of Our Own program script featuring a skit and tree-planting ceremony. Hard copies of the Homes of Our Own coloring books are also available; members can download order forms online.

The original Homes of Our Own coloring book was developed by NAHB Public Affairs, with support from the NAHB Women’s Council, to teach children in grades K-3 about home building and tree preservation. Members and associations across the country have featured Homes of Our Own as part of overall community and education outreach programs at schools, public libraries, home shows and special events. Since the Homes of Our Own program launched in 1996, hundreds of thousands of children have participated in the program.  [return to top]

Be a Part of the Excitement in Orlando in 2005!
The 2005 International Builders' Show Education Session Request for Proposals (RFP) is now available!

If you would like to be considered to present an education program at the International Builders Show in Orlando on January 13-16, 2005 go to www.nahbises.com and select the RFP submitter log in link.  Only online RFPs will be accepted and all speakers must have access to email and the Internet to participate as an IBS education speaker.  The deadline for RFPs is March 19, 2004.  For more information contact 1-800-368-5242 x8EDU. [return to top]

Have Your Words Heard
The NAHB Remodelors™ Council members have the opportunity to submit articles to NAHB’s weekly online newsletter, NBN Online. NBN Online is distributed to all NAHB members, more than 100,000. This is your chance to put pen to paper and share your industry wisdom. Topics should be related to remodeler and small business issues; articles are 400 words in length and include a byline and your photo.

If you are interested in being published, contact Melanie Hinton, (800) 368-5242 x8451. [return to top]

Thank You To Our 2004 Strategic Partners
The Remodelors Council would like to thank the 2004 Strategic Partners for their support our programs and services:

• Platinum level: Pella
• Gold level: Dupont-Tyvek, Georgia-Pacific and Marvin
• Silver level: CertainTeed and Intuit
• Bronze level: EnerBank and Frank-Lynn & Associates

For more information about sponsorship opportunities or to receive a 2004 Strategic Partner sponsorship brochure, contact Julie Mines. [return to top]

Member Advantage: Receive 15% Savings at NEBS on First Time Purchases and Future Orders
NEBS offers thousands of personalized products, including checks, forms, labels and more to make the business of doing business easier. To receive your special discount, be sure to use MAILCODE 33390 online or call 1-800-225-6380 and mention MAILCODE 33390.

This offer excludes Merchant Card Services, Payroll Processing, Work Clothing, Promotional Products and 401K Plans.

To order online and for details on more than a dozen other money-saving Member Advantage discount programs click here.

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]