June 9, 2004

Doug Sutton, Sr. CGR, CAPS
RemodelorsTM Council Chair
Springfield, Illinois

 
 
Subscribe to NAHB e-Newsletters
Email our Editor...
NAHB Home Page
. Browse other NAHB e-Newsletters
. Browse NAHB Books and Periodicals
. Search back issues
. Plain Text Version
Printer Friendly

Index Finds Confidence of Home Remodelers at Record Level
Residential remodelers are bullish on the outlook for their industry this year, according to NAHB’s Remodeling Market Index (RMI), which rose to a record level during the first quarter. The index measures current market conditions and future expectations for the nation’s $176-billion-a-year remodeling industry.

Current conditions in the first quarter rose to 59.0 on the index, which was 12.6 points higher than the same quarter of 2003. Future expectations were pegged at 62.8, a 12-point gain over the same period a year earlier.

“When the RMI moves above 50, it tells you that the industry is very healthy," said NAHB Remodelors™ Council Chairman Douglas Sutton, Sr., CGR, CAPS, of Sutton Siding and Remodeling in Springfield, IL. “And right now across the country we are also seeing record numbers of calls for bids and reports of backlogs that will keep us busy throughout the year.”

The RMI is based on a quarterly survey of some 600 professional remodelers. It is comprised of an index that gauges current market conditions based on reports of major and minor additions and alterations, and maintenance work and repairs, on both owner- and renter-occupied dwellings, and a second index on expectations for the near future based on calls for bids, the amount of work committed for the next three months, job backlogs and appointments for proposals.

The index showed that remodeling in every region of the country was stronger in this year’s first quarter than a year earlier. The biggest gain occurred in the Midwest, where the index jumped by 17.6 points to a healthy 62.1.

“The year-over-year gains in both indexes for every region are remarkable, and point to another banner year for the remodeling industry in 2004,” said NAHB Chief Economist David Seiders. “What’s more, substantial year-over-year gains are apparent for every single component of the future expectations index.”

A variety of “special questions” are also asked at the end of the survey to help pinpoint market trends.

An RMI question on communications technology found that 96% of survey respondents own a personal computer and 36% of them use their computers for sales presentations. Half of the respondents said they created a Web site for their business that includes contact information, pictures of finished projects, the types of jobs the company undertakes and a history of the company.

“Contractors today realize they have to keep up with technology and use it to promote their companies,” said Sutton. “More and more customers are looking for contractors on the Internet, and they want to see what each company has to offer before they even call. A Web site is an indispensable tool for remodeling companies today.”

Remodelors™ Council Welcomes Whirlpool as Newest Platinum Strategic Partner
The Whirlpool Corporation recently signed on as a Platinum level partner in the NAHB's Remodelors™ Council Strategic Partnership sponsorship program. Whirlpool Corporation’s Platinum level partnership ensures that the nation’s largest professional organization for remodeling contractors can continue providing high quality training and professional growth opportunities to its members so that they can meet the increasing consumer demands of a burgeoning $182 billion market.

“Whirlpool has a fantastic reputation for quality products and achieving success, their mission partnered with what we strive for at the Remodelors Council is a perfect fit,” said Remodelors Council Chairman Doug Sutton Sr., CAPS, CGR. “We feel that with Whirlpool supporting us we will be able to build our educational opportunities and programs to help our members reach the next level.”

“Having the opportunity to partner with the NAHB and the Remodelors Council is a strategic opportunity for us at Whirlpool Corporation,” said Guy D. Minnix, director of contract marketing & strategy for Whirlpool, headquartered in Benton Harbor, Mich. “Remodelers serve a unique niche in the industry. They understand the value of meeting customer expectations, value quality and appreciate powerful brands. With Whirlpool, KitchenAid and Gladiator, we have the most powerful brands in the industry. Along with our brands, our innovation, our consumer insights and our desire to work with the influencers in the industry, we value the opportunity to develop relationships with remodelers across the nation.”

As a Platinum Strategic Partner, Whirlpool has committed itself to furthering the Remodelors Council education initiatives, including raising awareness of NAHB’s Certified Graduate Remodelor (CGR) designation. [return to top]

Report Finds Insufficient Link Between Mold and Serious Illnesses
A long awaited report from the National Academy of Sciences’ Institute of Medicine finds insufficient evidence to link serious health problems — such as cancer, fatigue and neuropsychiatric symptoms — with damp indoor spaces and mold. The report does conclude, however, that indoor mold can be associated with upper respiratory symptoms, including coughing and wheezing.

The findings of the new report are “absolutely consistent with the findings of NAHB’s 2003 medical literature review on the same topic,” said NAHB President Bobby Rayburn. “Although this study does not completely rule out a link between mold and serious human illnesses, its review of the entire body of medical research is the most comprehensive to date.”

The institute’s report, “Damp Indoor Spaces and Health,” recommends that modification of regulations, building codes and building-related issues should be included in any future discussions on public health policies to promote healthy indoor environments.

The report was requested by the Centers for Disease Control and Prevention. To read the National Academy of Sciences’ report, click here.

To order NAHB’s 160-page report, “Scientific Literature Review of Mold — A Report on the Health Effects of Indoor Mold,” from BuilderBooks.com, click here; to download it for free, association members can click here.

NAHB’s Web site, MoldTips.com, provides home owners and tenants with easy-to-understand information on mold prevention and cleanup. NAHB also provides technical information on moisture control and building systems to home builders through the NAHB Research Center.

For questions about issues related to mold, e-mail David Jaffe at NAHB or call him at 800-368-5242 x8137. [return to top]

The Remodelor™ of the Year Search Begins
Who is the best of the best in the remodeling industry? The Remodelors™ Council is calling for entries for one of the Council’s most prestigious awards program, the Remodelor™ of the Year Award.

The Remodelor of the Year Award recognizes exemplary NAHB involvement at any level, superior business management, and an outstanding contribution to the remodeling industry. Councils should nominate individual remodelers, but the nominee must write his or her own entry essay. All entries in this category must come from local councils.

The Remodelor of the Year application can be downloaded online. The Council will present at the Remodelors Council Gala during the 2004 Remodeling Show in Chicago (Oct. 8).

The Remodelor of the Year award is sponsored by Qualified Remodeler magazine. The winner will be featured in an issue of the Qualified Remodeler magazine.

Award entries are due to the Remodelors Council by Friday, Sept. 3. For more information, contact the Remodelors Council or call 800-368-5242 x8216. [return to top]

Recognizing Local Remodelors™ Council Excellence
The Council Awards for Demonstrating Remodeling Excellence (CADRE) are the highest honors awarded to local Remodelors™ Councils for superior member service.

The CADRE call for entries was mailed to all local councils in May and can be downloaded online.  The winners will be announced at the Remodelors Council Gala during the 2004 Remodeling Show in Chicago (Oct. 8).

Show off your local council’s great work by submitting an application in one or all of the following categories:

  • Membership Recruitment & Retention
  • Community Service Project
  • Public Relations & Promotion
  • Outstanding Associate Member
  • Member Service/Education
  • Government Affairs/Legislation
  • Outstanding Council Chair
  • Outstanding Executive Officer/Council Coordinator

Enter the CADREs and win recognition for your great work! CADRE Awards entries due by Friday, Sept. 3.

The CADRE Awards are sponsored by Remodelors Council Platinum Strategic Partner Pella Corporation.

For more information, e-mail the Remodelors Council or call
800-368-5242 x8216.
[return to top]

Who Will Be Inducted to This Year's America's Best National Remodeling Hall of Fame?
It is that time of year again when the Remodelors™ Council begins searching for the best of the best for induction into the America’s Best National Remodeling Hall of Fame. This award honors those individuals who have made a significant and lasting impact on the remodeling industry whether on a state or national basis.

Induction into America’s Best National Remodeling Hall of Fame is open to individuals in any public or private sector entity or institution. Areas of contribution may include industry image, governmental affairs, education, business management or any other contribution that has helped advance the remodeling profession. The council encourages nominations of individuals who have made a positive impact on the remodeling industry. Self nominations are not permitted.

Completed applications must be received by July 12. The induction ceremony will take place at the Remodelors Council Gala during the 2004 Remodeling Show in Chicago, Oct. 7-9.

Thanks to the generous support of Weather Shield® Windows and Doors, the Remodelors Council can continue to honor those individuals who have made a noteworthy impact on the remodeling industry.

Click here to download an application from the Remodelors Council Web site. 

Contact Barbara Drobins, 800-368-5242 x8217 with questions regarding this prestigious awards program. [return to top]

NAHB Helps Me Stay in Business
By David Hawke, president of Hawke’s Home Improvement & Repair, Chattanooga, TN

This article should be read by anyone having a hard time with cash flow and running their business. I own a small remodeling company and have been in business just over a year. Recently, I placed an ad to hire a carpenter and a helper; I received numerous calls for the jobs, most for carpenters. Two of the people had previously owned their own construction business and one was a carpenter with 25 years of experience.

This started me thinking about why people who owned businesses or had that much experience were out of work? And why am I staying busy? I feel that the answer is the Home Builders Association of Southern Tennessee, its Remodelors™ Council and profit margins.

I am an active member in my association and the council and see many visitors and members come and go to meetings. Many of them come a few times and then never return because they feel they should not spend even few hours a month sitting in a meeting when they could be working their businesses.

What these people don’t realize is the benefits they have over others who are trying to run a business by themselves. I, as a member of the NAHB and the Remodelors Council, have more than 600 members in the HBAST and about 50 members of the Remodelors Council to draw information and help from when I need it. Also, they keep me abreast of the latest information and many of the members are as interested in seeing my business succeed as I am.

My recommendation to anyone who owns a construction or remodeling company would be to join their local association and one of the councils, and above all be active — membership is only worth what you make it. For me, it produced much more than the dues to amount to at a nice margin. Afterall, I learned at my HBAST meetings what I should be charging in profit margins from my so-called competitors! I was told to bid my jobs at 45%–50% nothing lower! Why? Because that is what it takes to survive. I was advised by my fellow members to figure in everything such as license, general liability, workman’s compensation, vehicles and tool fees. Look at the successful remodelers and builders around town; they don’t bid jobs at 10%.

Hawke’s Home Improvement & Repair is a residential remodeling company that specializes in Additions, Kitchens and baths. For more information about this article, contact Hawke.

Read this and other helpful business-related articles each week on NBN Online. Sign up for NBN Online.

Have a story to share? Have you discovered a great marketing tool that everyone should know about? If so, consider sharing your wisdom with other Remodelors Council members and write an article for NBN Online. If you want to have your words heard, contact Melanie Hinton. [return to top]

Research on Aging Baby Boomers Provides Insights Into Housing Preferences
With record numbers of World War II baby boomers heading rapidly into their mature years, the seniors housing market is studying them intensely to determine their likes and dislikes — no easy task because this group at every stage of life has behaved differently from generations preceding them.

Focused on seniors housing but of interest to any professional in the industry who wants to capitalize on this big demographic chunk of the marketplace, speakers at this year's NAHB’s Senior Housing Symposium, “Building for Boomers and Beyond” in Chicago presented an impressive bundle of research aimed at fleshing out these prospects.

“If you want to build homes for today’s older Americans — men and women 50 or older — and are wondering where you will find them, don’t look in a rocking chair,” advised Nanette Overly, director of sales and marketing for EPMARK, Inc. in Dublin, OH.

The concept of retirement housing is outmoded, Overly said, and today’s aging baby boomers don’t envision spending the rest of their lives playing bridge or shuffleboard and tucking into early dinner smorgasbords. They don’t even like to be called seniors, she said, and they are not expected to be flocking to warm weather destinations.

Overly cited an NAHB survey finding that two-thirds of the home builders polled expected their older customers to stay close to their existing community or within their state when they decide to relocate. And the Joint Center for Housing Studies of Harvard University projects that the active adult population will be geographically distributed roughly in proportion to where baby boomers and their parents currently live, she said. That same Harvard study found that no less than 10% of each state’s population will be over 65 by the year 2025.

Other insights Overly gave about this age group include:

  • They are expected to remain mobile and independent longer than previous generations.
  • They are better educated and want to continue studying. About 32% of this group will be college graduates by 2019, twice as high as 25 years earlier. The North Carolina Center for Creative Retirement at the University of North Carolina – Asheville is one of several institutions that have sprung up around the country catering to this market, said Overly.
  • They are more affluent; only 10% are considered poor today, down from 30% in 1960.
  • Boomers look favorably on returning to places where they spent their youth and they are buying homes in college towns.
  • Travel and adventure are at the top of their list, ranging from such National Geographic pursuits as rafting the Colorado River, sea kayaking in Hawaii and dog sledding in Alaska to less extreme AARP activities like under-water sports, yoga and training for a five kilometer race.
  • Aging boomers value locations convenient to shopping, offices, entertainment, restaurants, healthcare services and community activities and want to stay close to family and friends.
  • Physical fitness for long-term health is a major goal. In Del Webb's annual baby boomer report, she said, 88% of respondents said they will be happier in retirement if they can remain physically active and 93% expected to exercise the same amount or more.
  • Many active adults want to do volunteer work for charitable organizations. In response, Habitat for Humanity launched an RV Care-a-Vanners initiative in which active adults drive around Canada and the U.S. to work on the organization’s home building sites and provide disaster relief. Another organization tapping into the benevolence of the elderly is Experience Corps, which consists of 13,000 volunteers in this country, most of whom are over 55.

Baby Boomers represent a very active and influential group in the remodeling industry. To learn how to Work With and Market To Older Adults, enroll in NAHB's Certified Aging in Place (CAPS) designation program today. [return to top]

Make Plans Today for the 2004 Remodeling Show!

The Remodeling Show
Oct. 6-9
McCormick Place | Lakeside Center
Chicago

IT’S ALL ABOUT YOU. It’s about getting everything you need to reap the rewards of the $176 billion remodeling industry. In three back-to-back, wall-to-wall days of focused business-building opportunities, you’ll receive:

RESOURCES. The leading industry contacts, manufacturers and suppliers in every major product category.

REAL WORLD INFORMATION. Seminars, workshops, clinics and technology events specific to every aspect of your operation.

RESULTS. Delivering everything you need to build your business and keep you on the leading edge.

Learn & Earn with the CGR & CAPS programs. Pre-show CGR & CAPS courses begin Oct. 4. 

Registration opened June 4.

  • When you register online, exhibits can registration FREE!
  • Register before Sept. 7 and save more than $40 off the full conference registration price.
  • Any questions regarding registration, visit www.TheRemodelingShow.com or call 800-681-6970.
[return to top]

Run Your Business Better, More Profitably
Want to run your business better and more profitably? Just click www.nahb.org/biztools to access hundreds of time-saving, money-making, and cost-cutting resources. You’ll find guidance in a concise, easy-to-read format on topics like financial management, production, sales and marketing, customer service and human resources … to name just a few!

Plus, you can get answers to your tough questions about how to use software to improve your bottom line in the Talk About Business & IT section.  

Remodeling is a competitive business — visit www.nahb.org/biztools and gain your edge today! [return to top]

Congratulations to Big 50 Remodelors Council Members
Induction into Remodeling magazine’s Big 50 is no small feat. When you are join the Big 50 legacy, it says you are now among the best of the best. The Remodelors™ Council congratulates our members who were inducted into the 2004 Remodeling Big 50.

Plumbline Builders                                         S.N. Peck Builder                                            
Hopkins, MN.                                                   Chicago        

Castle Creek Construction                           Butler Brothers
Kirkland, WA                                                     Clifton, VA

City Builders                                                    George Lewis Custom Homes
Seattle                                                               Dallas

Keohane Construction Co.                           Cardea Construction
Dedham, MA                                                    Ann Arbor, MI

Post & Beam Construction Co.
Forest Hill, MD [return to top]

Buy the Newest Edition of Contracts and Liabilty from BuilderBooks.com
Contracts and Liability, 5th edition
by: David Jaffe and David Crump

Publisher: BuilderBooks.com

  • Format: Soft cover
    Pub. Date: 2004
    Updated!
    Protect your profits! Reduce or eliminate litigation costs by learning how to write better contracts from the start. Contracts and Liability, 5th edition provides builders and remodelers with concise, informative insights into creating effective contracts.

Topics include:

  • Warranties
  • Environmental issues
  • Inspections
  • Trade contracts
  • Design-build contracts
  • Contracts with other team members
  • More

This updated and expanded version now includes sections on mold, arsenic (in drinking water and pressure-treated lumber), notices and disclaimers. Eliminate risks and protect against liability with well-written contracts. Contracts and Liability, 5th edition provides illustrative cases, sample language, and current guidelines for creating comprehensive contracts for the residential construction industry.

NAHB Member Price: $35.99
Non-Member Price: $39.99

To view or order this publication online, click here, or call 800-223-2665 to order. [return to top]

Help Solve GLI Crisis: Fill Out Survey Coming Your Way
More than 50,000 NAHB members will receive a “call to action” on general liability insurance (GLI) via a special survey mailing. The survey is part of a GLI initiative to get an accurate national picture of the loss experiences of the residential construction industry and to develop new GLI products exclusively for the NAHB membership.

“NAHB members who receive the mailing should sit down and complete the survey and provide the materials needed to make this project a success,” said NAHB President Bobby Rayburn. “With insurance costs rising and exemptions making coverage less effective, it’s in everyone’s interest to participate in this effort.”

NAHB is partnering with Marsh, a global insurance and consulting firm, to develop new GLI products that will meet members’ needs. Marsh and NAHB are working on a timetable that would bring new GLI products to the market by January 2005.

Elements of the mailing, which are also available online at www.nahb.org/gli, include insurance surveys — one version for builders/remodelers and another for trade contractors — plus a model consent letter authorizing insurance providers to supply crucial background information for this effort. The mailing is also going to NAHB-member insurance agents, who will play an important role in the GLI initiative.

For more information about the GLI initiative, go to www.nahb.org/gli. or contact Clayton Traylor at 800-368-5242 x8490 or Blake Smith (x8583). [return to top]

Mark Your Calendars for the Partnership for Prosperity Meeting
Join Mexico’s housing sector leaders including more than 20 of Mexico’s top builders and developers for high-level networking and roundtable discussions at the upcoming Partnership for Prosperity meeting June 27-29 in Guadalajara, Mexico. 
 
The Partnership for Prosperity initiative, created by Presidents George W. Bush and Vincente Fox, was established to stimulate economic development and trade between the U.S. and Mexico, our 2nd largest trading partner.
 
The Guadalajara meeting is an exceptional opportunity for NAHB members to establish or further strengthen relationships and gain valuable information and insight into the Mexican housing market. 
 
Registration is $250 and does not include travel or hotel accommodation.
 
For more information, contact NAHB International’s Matt Monjan  or call 800-368-5242 x8419. [return to top]

Get Your Members Involved in the 2004 Election with New Web Service

Did you know that election laws today are more flexible than ever? It's true. In fact, more than half of the states in the country have no restrictions on absentee or early voting. 

NAHB recently unveiled a new election Web site that allows users to register to vote and to vote early. This virtual get-out-the-vote site, available at www.NAHB.org/elections, is a unique service for your members and their families and employees.  

Here's how it works:

  1. Your company or association communicates to its employees or members that voter registration and early voting is available online. This can be done in a variety of ways (e-mail, newsletter, etc.), with a hyperlink to the Home Builders Helping Americans Vote Web site.
  2. The employee or member goes to the Home Builders Helping Americans Vote Web site and selects his or her state from the drop-down menu.
  3. The employee or member reviews the state-specific instructions and completes the voter registration or absentee voting form.   

Member associations can post the Home Builders Helping Americans Vote logo and link right on their home page. NAHB will be working with its state and local association partners to spread this information to as many members as possible.

The new election Web site contains several other helpful features, including:

  • Information on the 2004 U.S. Presidential Election
  • Up-to-date national political poll results
  • Information on NAHB's involvement in Election 2004
  • Instructions for making a contribution to a political party or candidate
  • Donation and sign-up forms for the George Bush and John Kerry presidential campaigns
  • Information on BUILD-PAC, one of the most successful and influential political action committees in Washington.

For more information on Home Builders Helping Americans Vote or the election Web site in general, contact NAHB's Marie Zenner at 800-368-5242 x8279. [return to top]

Sign Up for 2005 Committees, Councils By July 9
NAHB is looking for members to serve on any of the association’s various committees and councils for the 2005 term. Members will be able to provide leadership, expertise and experience on the issues and challenges facing the industry. This is your chance to represent the Remodelors™ Council and other NAHB committees in NAHB leadership positions.

The term begins immediately following the 2005 International Builders’ Show (IBS) in Orlando and continues through the completion of the 2006 IBS.

The deadline for applying for an appointment is July 9. Members are limited to serving on no more than two standing committees or councils.

Members can apply online by filling out the 2005 appointment sign-up form, indicating their interests. The form can be accessed on the NAHB Web site by clicking www.nahb.org/2005appointmentform, then return the completed form by e-mail, fax or mail to NAHB as indicated. Forms also can be found within the individual sections for the various committees and councils on the “members only" side of the NAHB Web site.

Final appointments will be made following the Fall NAHB board of directors meeting and members will be notified by mail.

For more information, e-mail Cynthia McKinley or call her at 800-368-5242 x8346. [return to top]

Member Advantage: NAHB Members Can Get One Month Free from Williams Scotsman
Williams Scotsman offers a full line of temporary-space products and accessories, including sales office and centers, construction trailers, mobile offices, storage products, and floor plans and specifications.

With 90 locations in North America and more than 50 years experience, Williams Scotsman has a money-saving plan specifically designed for NAHB members — with up to one month's free rent. When you sign up, your seventh month is FREE — with a maximum value of $500.

For more information, call 877-884-3068 today and be sure to identify yourself as an NAHB member. Or visit www.willscot.com.

For the most up-to-date details on the Member Advantage discount program and all of the participating companies, go to http://memberadvantage.nahb.org.

Or visit www.nahb.org to explore the full range of benefits associated with membership in your local, state and national home builders associations. [return to top]

The Remodelors™ Council Thanks Our Platinum Level Strategic Partners

Remodelors™ Council Platinum Level Sponsors

The NAHB Remodelors™ Council appreciates the commitment presented by all of its sponsors and would like to send a special thanks to the Remodelors Council Platinum Sponsors.


                                                 
                                
These Strategic Partners provide valuable financial support for the Council’s year round activities; in addition, all Council members have the opportunity to meet with representatives of sponsor companies at NAHB and Council events.

[return to top]

For more information or to contact us directly, please visit www.NAHB.org l ©2004, National Association of Home Builders