september 2014 building buzz

BBBUILDING BUZZSEPTEMBER 2014

President’s Letter Parade Season in Full Swing | page 3

Political Action PAC...To Break Bread With or Be Eaten | page 5

BMHBA News Charitable Cause to Benefit from Fall Parade of Homes | page 8-9

National NewsKey Building Material Shortages Ease in 2014 | pages 10-13

NDAB NewsContinuing Education Opportunities| pages 14-15

September 2014BMHBA Building Buzz

Building BuzzPublisher/Editor:

Dot Frank

Layout Editor: Chelsea Gleich

Building Buzz is a publication of the Bismarck-Mandan Home Builders Association

2600 Gateway Ave., Suite 1Bismarck, ND 58503

Phone: 701.222.2400 Fax: 701.250.9730

Like Us! www.facebook.com/bmhbaFollow Us! www.twitter.com/bmhba

Your membership is three-in-one: BMHBA, NDAB and NAHB

Scan to visit www.bmhba.com

Bismarck-Mandan Permit Reports Through July 2014BISMARCK - monthly/yearly permit reports can be found at www.bismarck.org

Permit Type YTD 2014 YTD 2013New Residential Single Family Detached Single Family Attached Duplex 3 or 4 Unit 5+ UnitResidential GaragesNew CommercialAlter Public

308/$80.04M177/$32.58M110/$17.29M11/$1.75M4/$1.41M6/$27.01M54/$.501M31/$12.02M5/$12.40M

373/$81.49M258/$46.74M97/$14.85M6/$1.05M2/$1.15M10/$17.70M63/$.547M31/$10.08M13/$36.64M

MANDAN - monthly/yearly permit reports can be found at www.cityofmandan.com

Permit Type YTD 2014 YTD 2013New Residential Single Family Two Family Condos ApartmentsRemodel and AdditionsNew CommercialAlter Commercial

50/$25.56M43/$12.01M0/$0M4/$.90M3/$12.62M89/$1.92M32/$8.25M26/$2.90M

Professionals building our community through promotion of home ownership, education and legislation since 1958.

145/$51.19M105/$29.82M0/$0M36/$7.77M4/$13.60M88/$1.51M11/$5.44M17/$3.11M

September 2014 BMHBA Building Buzz

A Word from Our President

Vance VetterBoard President

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For over 70 years, we’ve been the area’s leading Builder Dealer. We’ve added new brands, new products and new choices that give you and your cus-tomers options for their new home. Budget models or high-end gourmet, we have it all. Plus our people are second to none when it comes to advice and assistance.

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15 BUILDER PACKAGES

Parade season is in full swing. This month marks the 22nd anniversary of the Fall Parade of Homes for our association. According to Wikipedia, the first Parade of Homes was hosted by the Salt Lake Home Builders Association in 1946. Our association held its first parade in 1992. That year, according to The People History:

• Year-End Interest Rates were6%• Average Cost of a New Homewas $122,500• Average Income was $30,030

• Average Monthly Rent was $519• Gas was $1.05 per gallonMuch has changed since 1992, including the program

I’m using to type this column. Back in 1992, I would have been testing out the first edition of Microsoft Works and operating off of Windows 3.1. The Parade of Homes, however remains mostly the same. We continue to host

this event to showcase our builders’ craft, introduce the community to new construction and sell homes.

One exciting addition to the 2014 Fall Parade of Homes is the incorporation of ParadeSmart, which is an app built specifically for HBA parades. Spectators will be able to download the BMBHA Parade of Homes app to their smartphone to view a profile of each home, map their route, get turn-by-turn directions, take notes, rate the homes and contact the builder.

Your participation in association events continues to impress me. We’ve shattered attendance records at each event and you’re stepping up your support through sponsorships. On behalf of the entire board and staff, thank you for investing in the BMHBA. I guarantee you’ll get out all that you put in.

Looking ahead, be sure to mark your calendars for the Fall Parade of Homes Sept. 25-28, attend OSHA 10 training on Sept. 9 and 10, register for Moneyball on Sept. 10 and purchase tickets to the Fall Awards Mixer on Oct. 30.

Lastly, I encourage you to stay up to speed on events and issues as well as help us expand our reach by liking us on Facebook and following us on Twitter.

Vance Vetter

Building & Planning Officials’ Corner

From the City of Bismarck Storm Water Department: Terry Halstengard would like to say thanks to our builder members. “This year has been a good one,” he relayed to the BMHBA. “They [builders] have been doing a good job at re-sponding to the issues at hand; there are still a few that I have to meet on site and remind but for the most part they have been doing a good job.”


July 2014 New MembersChoice Financial | Tim Karsky

Website: choicefinancialgroup.com Banking

Cullen Insulation | Quinn EggertInsulation, Insulation (Spray Foam), Architecture

Kendall Cabinets, Inc. | Maureen KendallWebsite: kendallcabinets.com Cabinets

Century 21 Morrison Realty | Kristin EisenzimmerWebsite: century21morrison.com Real Estate

Gate City Bank | Lynn KleinWebsite: gatecitybank.com Banking

Schauer Construction | Jerry SchauerHome Builders (Custom), Concrete Contractor, General Contractor

United Printing | Taylor RashWebsite: unitedprinting.com Advertising, Printing, Web Design

2014 Board of DirectorsPRESIDENTVance VetterVance Vetter HomesPhone: (701) 751-8218

1ST VICE PRESIDENTDrew KnutsonKnutson Homes, Inc.Phone: (701) 258-3464SECRETARY/TREASURER Lynn KleinGate City BankPhone: (701) 355-7633Nathan JonesTollberg HomesPhone: (763) 205-2037Scott MoranHallmark HomesPhone: (701) 471-8796 Bill SchmidTownsquare MediaPhone: (701) 250-6602

PAST PRESIDENTEric BrendenNorthwest ContractingPhone: (701) 255-7727

2ND VICE PRESIDENT Greg ZenkerFerguson EnterprisesPhone: (701) 663-2446Paula HaiderHaider Glass SpecialtiesPhone: (701) 250-6787Chad MoldenhauerK & L Homes, Inc.Phone: (701) 258-4584Shannon ReichenbergDiversity HomesPhone: (701) 220-8177 C.J. SchorschFleck’s Furniture & AppliancePhone: (701) 323-0891

September 2014 AnniversariesAmerican Plumbing | Pete Weisbeck | Join Date: 2010

Plumbing Contractor

Apple Creek Builders | Cory Mowder | Join Date: 2008Concrete Countertops, Remodeling

Design That Sells | Kari Huber | Join Date: 2013Home Staging, Interior Design

Garage Logic | Darin Martell | Join Date: 2013Cabinets, Concrete Decorative, Garage Design (Interior), Industrial Coatings

Gietzen Construction, LLC | Sam Gietzen | Join Date: 2013General Contractor, Millwork

Holly & Company Classic Homes | Holly Rieger | Join Date: 2012Home Builder

Kirkwood Bank & Trust Co. | Ken Knodel | Join Date: 1988Mortgages

Lausch Construction | Kerry Lausch | Join Date: 2013Home Builders (Custom)

Mees Masonry Corp | Todd Mees | Join Date: 2011Masonry/Brick/Stone

Mitzel Contractors, Inc. | Eddy Mitzel | Join Date: 1996Home Builders (Custom), Real Estate/Developers

Rivers Edge Plumbing & Heating, Inc. | Kenneth Kleinsasser | Join Date: 2010 Heating & HVAC, Plumbing Contractor, Water Systems, Custom Showers

Roughrider Hardwoods | David Jensen | Join Date: 2003Building Supplies, Millwork

Sherwin Williams Co. | Chad Schumacher | Join Date: 2008Paint Supplier

Sol Design Build | Jeff Ubl | Join Date: 2011Architecture, Home Builders (Custom), Home Designing, Planner/Designer

StoneCoat of North Dakota, LLC | Michael Wynn | Join Date: 2013Masonry/Brick/Stone

The Blind Guy of North Dakota | Tamara Schlosser | Join Date: 2012Window Coverings

Thrivent Financial - Dakota Heartland Group | Stacy Voegele | Join Date: 2013Insurance, Financial Services

Trans Trash | Mitchell Kaelberer | Join Date: 2007Waste Collection, Waste Reduction

Universal Homes, Inc. | Jeff Kilber | Join Date: 2008Home Builders (Custom), Land Development Services

Wagner Construction | Dan WagnerHome Builders (Custom), General Contractor, Remodeling, Kitchen/Bath

Remodel & Design, Carpentry

Woodcraft Unlimited, Inc. | Bob LussendenCustom Cabinets


Don’t Miss These Upcoming Events!Sept. 9: Events Committee Meeting

Sept. 10: Moneyball: Managing by the Numbers

Sept. 17: Membership Committee Meeting

Sept. 19: Executive Committee Meeting

Sept. 25: BMHBA Board Meeting

Sept. 25-28: Fall Parade of Homes

By Wayne Solberg, One Source Lighting

PAC Man, PAC Lady, Ms. Pac Man - When I was younger I always thought they were games! Years later I think of PAC (Political Action Committee) much differently - such as having an influence on our political and legislative processes. A PAC is the officially registered arm of an interest group authorized to contribute money to candidates in federal elections, organize lobbying efforts to persuade legislators to support or oppose pieces of legislation, organize group members and mobilize them to have influence, trying to get their messages across through letters, phone calls, or e-mail messages. These all play a supporting role deciding who gets what, how, where and when - our state's upcoming 2015 legislative session. What values will be promoted and endorsed and imposed by government. We, in the building industry, should be paying special attention to pertinent home-builder subjects being bandied about and discussed in legislative committees since our construction industry can be affected immensely.

Me Versus We - Why Do PAC Groups Form?Some of the most common PACs are economic groups

like our BUILD-PAC, social policy or ideologically based groups, public interest groups, and labor unions. Building industry members have common interests and it's incumbent on us as a group to follow up on those interests.

I view it this way, "The power of We will have more influence than the power of Me." At the individual level,

there are powerful incentives to ride on the coat tails of the group without getting involved personally or monetarily since the group is pursuing your interests anyway (free riders). So then what incentive is there to contribute time or money to a group's efforts?

Some people join groups because they are strongly motivated by the group's goals and they believe they can exercise power within the group that they would not otherwise have, the We and Me concept. They become

emotionally committed to the common cause. Maybe it's their bank account that could get affected.

Now is the Time Before the 2015 Legislative Session To Begin Mobilizing

Together we support the legislative programs, initiatives, and philosophy of creating a favorable climate for our industry. Now is the time to identify and define our messages, issues, and challenges - engage the legislators to view the world through our lenses.

Building industry members CAN make a difference in our legislative issues, but we need to take action now, opening the

lines of communication with our lawmakers in order to earn a front row seat at the table on upcoming policy decisions.

We are builder and supplier professionals all working together building our community through promotion of home ownership, education, and legislation since 1958 (Article 3 Bylaws Mission Statement)

This is reason enough to participate through a monetary or time investment.

PAC... To Break Bread With or Be Eaten


Your Ad Could Be Here

Only $25!Call 222-2400 or email

[email protected] to find out how.

Courageous Leadership: The Difference between Great and Average Contractors

By Fred Reikowsky, LPBC

If you’re striving to be a mediocre building or trades company, this article is not for you. Of the many contractors I speak with every week, most have defaulted to this category. Not by choice of course, but because they lack one simple, yet powerful game-changer: uncommon courage and intentional leadership.

Most contractors are risk takers with a strong will to win in a brutally unforgiving industry. Problems and challenges mark the landscape we walk every day, poised to derail our best intentions and frustrate our hard work. The difference between great contractors and average contractors, is that great contractors choose to depart from the subtle slide into ‘average’ and fight the battle on their own terms.

Great contractors leverage courage and intentional leadership to develop enduring, self-sustaining success, provide satisfying careers for their employees and leave behind a legacy of great proportions. Average leaders generally do not.

Armed with a compelling desire to be great, a courageous leader’s first step to lasting success is to establish a clear and compelling purpose. Ask yourself:

• Why do you exist?• What is so important and exciting that moves you

and those following you to do the right thing, make

great decisions and instinctively guard against threats?

• What is it that must never be violated in order to produce exceptional results that please customers and distance your company from the competition every day?

People everywhere, leaders included, navigate life with a deep need to know there’s a meaningful purpose to their everyday existence. Jim Collins notes in Good to Great that:

“…In the end, it is impossible to have a great life unless it is a meaningful life. And it is very difficult to have a meaningful life without meaningful work.”

People follow purpose and the cost of overlooking it can be staggering.

Courageous leaders seek to understand the unique purpose for their business, articulate it clearly and teach it relentlessly. They also lead on purpose, inspiring others to be a significant part of something bigger than themselves. It’s the difference between average and great. Which will you be?

Fred Reikowsky, Legacy Business Leaders, LLC is a former building contractor and nonprofit leader. He coaches business owners in the construction and trades industry to take disciplined action and re-chart their road to success and profitability. He can be reached at 330-470-1300.


State Expands Homeownership OpportunitiesRapid wage growth, increased home prices and a

shortage of starter homes has prompted the North Dakota Housing Finance Agency (NDHFA) to offer more North Dakotans mortgage purchase assistance.

Through the agency’s North Dakota Roots program, any household earning up to 140 percent of area median income can now access the agency’s affordable interest rate loans, and down payment and closing cost assistance. The Roots program’s maximum income limits for Burleigh and Morton Counties is $107,380. The lock-in period for a Roots loan for new construction

is 300 days.More information

is available online at www.ndhfa.org/Homeownership/Roots.aspx or by contacting Homeownership Division Director Dave Flohr at 800-292-8621.

The U.S. Army Corps of Engineers has a number of ways to determine whether a particular piece of property should be classified as a wetland, and potentially subject to regulation under the Clean Water Act.

One of them is to see what sorts of grasses, sedges, trees and other vegetation is growing on the property – and while cattails might be a dead giveaway, other plants might not seem so obvious.

But when the Corps decides that a walnut tree native to the hills of arid Southern California is a sign of a wetland, according to the National Wetlands Plant List, something’s a little haywire.

That’s why, with the help of expert consulting botanists, NAHB questioned the Corps’ determination. The good news? The association found out in May that its challenge, along with a similar request to change the rating for Japanese honeysuckle in other parts of the

country, had been successful. The bad news? There are 8,055 challenges to go.

And unlike most other regulatory changes, the Corps can update the Plant List without going through the usual public notice and comment period. The list is updated at the Corps’ discretion and the changes appear online.

“This is a problem,” said NAHB Environmental Issues Committee Chair Charles “Chuck” Ellison, a builder in the Washington D.C. area and Delaware. “We need to know whether the decision to put a plant on the list is based on sound science. The process must be transparent.”

The committee is seeking the help of NAHB members whose projects have run afoul of the Plant List and will discuss its options during the Fall Board of Directors meeting in Phoenix Sept. 3-6. For additional information, talk to Owen McDonough at 202-266-8662.

A Walnut Makes a Wetland?

North Dakota News

The Bismarck-Mandan Home Builders Association is proud to offer its members free safety training through a cooperative agreement with the North Dakota Association of Builders, the North Dakota

Safety Council and North Dakota Workforce Safety & Insurance.

Members may now register for a limited number of seats at the OSHA 10 Construction Course, which runs from 8 a.m. to 5 p.m. on Oct. 9 and from 8 a.m. to noon on Oct. 10. The OSHA 10 Construction Course is valuable for employees and supervisors alike. It includes an introduction to OSHA standards, inspections process and citations. Walking and working surfaces,

PPE, fire protection, electrical, and several other subjects will be covered.

Registration is available online at bmhba.com/events, by calling 222-2400 or emailing [email protected].

Free Safety Training for Members


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Sporting Clays Shoot a SuccessThe HBA hosted its 7th Annual Sporting

Clays Shoot on Aug. 28. Members continued to show their support of our association by snagging up all 10 station sponsorships, picking up several tiered sponsorships, the dinner sponsorship and prize sponsorship slots.

59 shooters took to Capital City Sporting Clays to demonstrate their shotgun skills at ten stations. After their flurries, participants were fed grilled burgers courtesy of Dinner Sponsor Acme Tools and resident griller Tom Haider of Haider Glass Specialties.

The association thanks all shooters and sponsors including: Platinum Sponsor - BNC Bank, Gold Sponsors - CS Doors and Haider Glass, Silver Sponsor - D & M Industries, Station Sponsors - Allied Building Products, Dakota Community Bank & Trust, Gate City Bank, Knutson Homes, North Dakota Guaranty & Title, Quality Title,

Starion Financial, Northern Plains Plumbing, Heating & Air and Vance Vetter Homes.

Check out photos from the event at www.facebook.com/bmhba.


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ph: 701.204.6145 | f: 701.425.0425

Charitable Cause to Benefit from Fall Parade of HomesThis year’s Fall Parade of Homes will harness

the power of many people by peeling off $2 from each ticket sold as a contribution to Homes for Our Troops (HFOT). The national non-profit is in the process of constructing its first home in North Dakota for a local vet.

“We’re excited to expand our mission to the state of North Dakota,” says HFOT Community Fundraising Coordinator Brianne McNamara. “Through the support of parade of homes patrons and local builders and associates, we will build a home at no cost for a Bismarck veteran.”

Homes for Our Troops will coordinate construction of a specially adapted home with local homebuilder Tory Otto of Patriot Homes. The recipient of the HFOT house is Marine Cpl. Mark Haegele.

“The simple things, such as brushing my teeth are hard to do at a sink that I can barely reach. Overall, having the assistance from HFOT would benefit my life more than anyone could ever imagine because I would be able to maintain my independence,” said Haegele.

According to Bismarck-Mandan Home Builders

Association Executive Officer Dot Frank, the association’s Fall Parade of Homes presents a unique opportunity to crowd fund the cause. “Last year, more than 3,300 people visited our parade homes. In one weekend, we can collect and contribute in excess of $6,600.”

The Fall Parade of Homes runs Sept. 25-28 and features 37 new homes in Bismarck, Mandan and Lincoln. Tickets are $10 for adults and provide admission to all homes on the parade. Children 18 and under are free.

“Our board, builders and general membership is really excited about this cause. In fact, they’ve pledged to increase the contribution if we surpass last year’s attendance,” Frank added.

Visit bmhba.com for parade details, a mobile app and Haegele’s story.

Fall Awards Mixer is Oct. 30

Mark your calendars for our annual awards dinner on Oct. 30. The Fall Awards Mixer celebrates the Fall Parade of Homes price

category winners, presents fine dining and creates the chance to socialize with

association peers.

The cost to attend is $20 per person. Sponsorships are available that include recognition before, during and after the event. Certain sponsorships also include

tickets to attend.

The Fall Awards Mixer will kick off with a social at 5:30 p.m. followed by a short

program and served dinner. A cash bar will be available and door prizes given away.

Registration is available online at bmhba.com/events, by calling 222-2400 or

emailing [email protected].


L i k e B M H B A o n

facebook . com/bmhba

One of the perks of being an NAHB member is an open door to exclusive discounts on a variety of products and services that can benefit your business, employees and family.

In the past year, members have saved more than $7.2 million through the NAHB Member Advantage, which offers an easy way to reduce expenses, maximize profits and increase efficiency.

Major companies participating in the NAHB Member Advantage program include: General Motors, Dell, Geico and UPS.

Visit nahb.org/ma for the most up-to-date information about which companies are offering discounts as well as detailed information on how to access the savings.

National News NAHB Members Saved More than $7.2 Million Last Year

Protecting your assets is very important to you. After all, you have worked your whole life to obtain them. Your NAHB membership and GEICO are here to help. GEICO has more than 75 years of industry experience and understands what you need from your insurer.

GEICO and NAHB are proud to be working together to offer exceptional insurance products and a great savings opportunity for members of NAHB. As a member of NAHB, you could qualify for an exclusive discount on GEICO auto insurance.

When you consider the fact that new GEICO policyholders report average annual savings of over $500, you could be saving a lot of money. But there’s more to GEICO than just great rates. GEICO policyholders receive 24/7, professional, courteous service. When it comes to claim handling, GEICO is able to settle many claims within 48 hours of being reported, and sometimes a check can even be written on the spot. That’s why GEICO customers report a 97 percent customer satisfaction rate. As a subsidiary of Warren Buffett’s Berkshire Hathaway Inc, GEICO has the stability of a company you can trust. Savings, service, and reliability? They can all be yours.

Visit www.geico.com/disc/NAHB or call 800-368-2734 and mention NAHB, for a simple, no-obligation rate quote to see how much you could save with your exclusive member discount. GEICO can also help you obtain competitive rates on homeowner’s, condo, motorcycle and more insurance coverage.

Some discounts, coverages, payment plans, and features are not available in all states or in all GEICO companies. Discount amount varies in some states. One group discount applicable per policy. Coverage is individual. In New York a premium reduction may be available. Average savings amount based on national GEICO New Policyholder survey data through March 2014. GEICO is the second-largest private passenger auto insurer in the United States according to the 2013 A.M. Best market share report, published April 2014. Customer satisfaction based on an independent study conducted by Alan Newman Research, 2013. Homeowners, condo and renters coverages are written through non-affiliated insurance companies and are secured through the GEICO Insurance Agency, Inc. Motorcycle and ATV coverages are underwritten by GEICO Indemnity Company.

NAHB Welcomes the Gecko


Homes were less affordable in the second quarter of 2014, according to the NAHB/Wells Fargo Housing Opportunity Index (HOI), released Aug. 14.

In all, 62.6 percent of new and existing homes sold between the beginning of April and the end of June were affordable to families earning the U.S. median income of $63,900. This is down from the 65.5 percent of homes in the first quarter.

During that same period, the national median home price rose from $195,000 to $214,000 and average mortgage interest rates dropped from 4.57 to 4.44 percent.

That last statistic is especially good news for buyers. “With interest rates near historically low levels and strengthening job growth, now continues to be a great opportunity to buy a home,” said NAHB Chairman Kevin Kelly.

Visit nahb.org/hoi for tables, historic data and details about how the HOI is calculated. View NAHB’s Eye on Housing blog for more analysis.

National News

Housing Affordability Dips in Second Quarter

Fueled by strong single- and multifamily growth, housing starts rose 15.7 percent to a seasonally adjusted annual rate of 1.093 million units in July, according to newly released figures from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. This is the highest number since November 2013.

“A return to production levels over one million confirms consumer confidence continues to improve,” said Kevin Kelly. “Propelled by a healthier economy, more and more people are feeling ready to buy a home.”

Single-family housing starts were up 8.3 percent to a seasonally adjusted annual rate of 656,000 units in July, while multifamily production jumped 28.9 percent to 437,000 units. Multifamily production has not been this high since February 2006.

Regionally in July, combined single- and multifamily housing production rose in the Northeast, South and West, with respective gains of 44 percent, 29 percent and 18.6 percent. Total production fell by 24.8 percent in the Midwest from an unusually high June level.

Issuance of building permits registered an 8.1 percent increase to a seasonally adjusted annual rate of 1.052

million units in July. Multifamily permits rose 21.5 percent to 412,000 units while single-family permits increased by 0.9 percent to 640,000 units.

The Northeast, South and West registered overall permit gains of 18.8 percent, 9.6 percent and 7.2 percent, respectively, while the Midwest posted a 0.6 percent loss.

Housing Production on Upswing, Tops 1 Million in July

Free for Employers Job FairThe UTTC Career Development Center invites you to participate in the United

Tribes Technical College Fall 2014 Career Fair. This event will be held on Wednesday,

Oct. 22 in the James Henry Community Center Gymnasium from 1-4 p.m.

There is no cost to participate and you are able to register by contacting Nils Landin at (701) 255-3285 ext. 1333 or

you can access our online registration at http://www.uttc.edu/resources/cdo/cfreg/

cfreg.asp.


The NAHB Legal Action Fund: We’re Here to Help

Sometimes, what looks like a routine zoning decision gone bad turns into a case that ends up setting a legal precedent that informs how such cases are decided for years to come.

That’s one big reason why NAHB created the Legal Action Fund. The fund helps defray litigation costs for builders, developers and HBAs involved in litigation where the outcome may benefit – or harm, as the case may be – home builders, developers and home buyers nationwide. It’s another example of how your association provides an industry service.

The NAHB Legal Action Committee reviews applications for assistance three times a year in conjunction with scheduled meetings of the NAHB Board of Directors.

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National News Builder Confidence Makes Steady Gains

Builder confidence in the market for newly built, single-family homes rose two points to 55 on the NAHB/Wells Fargo Housing Market Index (HMI) for August. This third consecutive monthly gain brings the index to its highest level since January.

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 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,” “average” or “low to very low.” Scores from each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

All three HMI components posted gains in August. The indices gauging current sales conditions and expectations for future sales each rose two points to 58 and 65, respectively. The index gauging traffic of prospective buyers increased three points to 42.

NAHB Chief Economist David Crowe said that factors contributing to the increase include sustained job growth, historically low mortgage rates and affordable home prices.

Editor’s Note: The NAHB/Wells Fargo Housing Market Index is strictly the product of NAHB Economics, and is not seen or influenced by any outside party prior to being released to the public. HMI tables can be found at nahb.org/hmi. More information on housing statistics is also available at housingeconomics.com.


Unlike recent news that builders continue to face serious difficulties finding lots and labor to build new homes, a July NAHB survey shows that shortages of key building materials have actually eased in 2014.

In fact, only 15 percent of builders reported some or serious shortages of trusses or clay bricks, the highest incidence among the more than 20 materials builders were asked about. Fourteen percent reported shortages of windows and doors, gypsum wall board and cabinets, respectively.

The graph below shows the complete list of the 23 building materials and products in the survey, sorted by the share of builders reporting shortages.

For a number of key materials, the share of builders reporting any kind of shortage was lower in July 2014 than in May 2013.

For example, 18 percent of builders last May reported shortages of plywood, and 22 percent said there was a lack of oriented strand board (OSB). Those shares fell to 7 and 9 percent, respectively, in July 2014. Likewise, the percentage of builders reporting a shortage of framing lumber fell from 18 to 8 percent during this period, while for wallboard the share dropped from 20 to 14 percent.

Recent PPI data shows that building material prices by mid-2014 were about the same as at the start of the year. NAHB’s survey confirmed that price increases this year are far less widespread than in 2013.

For example, the share of builders reporting price hikes for OSB fell from 92 percent in 2013 to 68 percent in 2014; for plywood the year-to-year drop was from 90 to 70 percent, and framing lumber went from 92 to 73 percent.

The graph below shows the materials/products with at least a 10-point decline in the share of builders reporting price increases during this period. Despite the declines, however, it is important to recognize that a majority (or large pluralities) of builders still reported price increases in all these materials.

For a few materials, the share of builders reporting price increases in 2014 was slightly larger than in 2013. For hardwood flooring, the share rose to 55 percent from 46 percent; for cabinets, it went up to 63 from 57 percent; and the percentage of builders reporting a price hike in ceramic tiles rose to 40 from 34 percent.

National News Key Building Material Shortages Ease in 2014


NDAB NEWS Volume XXI, Issue 22 Monthly News from the North Dakota Association of Builders September 2014

Fall & Winter Energy Saving Tips

Cooler weather is on the way and we’ve found some great resources for you courtesy of the Energy.gov website. This article gives strategies to help you save energy during the cool fall and cold winter months. Some of the tips below are free and can be used on a daily basis to increase your savings; others are simple and inexpensive actions you can take to ensure maximum savings through the winter. So, get ready for fall and enjoy real

savings!

TAKE ADVANTAGE OF HEAT FROM THE SUN Open curtains on your south-facing windows during the day to allow sunlight to naturally heat your home, and close them at night to reduce the chill you may feel from cold windows.

COVER DRAFTY WINDOWS Use a heavy-duty, clear plastic sheet on a frame or tape clear plastic film to the inside of your window frames during the cold winter months. Make sure the plastic is sealed tightly to the frame to help reduce infiltration. Install tight-fitting, insulating drapes or shades on windows that feel drafty after weatherizing.

ADJUST THE TEMPERATURE When you are home and awake, set your thermostat as low as is comfortable. When you are asleep or out of the house, turn your thermostat back 10° to 15° for eight hours and save around 10% a year on your heating and cooling bills. A programmable thermostat can make it easy to set back your temperature.

FIND AND SEAL LEAKS Seal the air leaks around utility cut-throughs for pipes ("plumbing penetrations"), gaps around chimneys and recessed lights in insulated ceilings, and unfinished spaces behind cupboards and closets. Add caulk or weather-stripping to seal air leaks around leaky doors and windows.

MAINTAIN HEATING SYSTEMS Schedule service for your heating system and find out what maintenance is required to keep your heating system operating efficiently. Furnaces: Replace your furnace filter once a month or as needed. Wood- and Pellet-Burning Heaters: Clean the flue vent regularly and clean the inside of the appliance with a wire brush periodically to ensure that your home is heated efficiently.

LOWER WATER HEATING COSTS Water heating can account for 14% to 25% of the energy consumed in your home. Turn down the temperature of your water heater to the warm setting (120°F). You'll not only save energy, you'll avoid scalding your hands.

LOWER YOUR HOLIDAY LIGHTING COSTS Use light-emitting diode -- or "LED" -- holiday light strings to reduce the cost of decorating your home for the winter holidays. Learn about the advantages and potential cost savings of LED holiday light strings and look for manufacturers and brands of ENERGY STAR®-qualified decorative light strings.

Have a great start to fall and we look forward to seeing many of you in November at the Annual Banquet!

Ken

Ken Callahan NDAB President

North Dakota Association of Builders 1720 Burnt Boat Drive, Suite 207, Bismarck, ND 58503-0801 701/222-2401 or 800/326-4746 www.ndbuild.com

Back your PAC … your PAC backs you! NDAB-PAC is the North Dakota Association of Builders’ Political Action Committee. It is a non-partisan political action committee that provides support for candidates who are friends of the building industry. Contact NDAB at (800) 326-4746, (701) 222-2401 or [email protected] to contribute or learn more!

Continuing Education Opportunities Did you know that when you are a member of North Dakota Association of Builders you also have the opportunity to take free continuing edu-cation and safety classes? One of the many perks of your 3 in 1 memberships is that NDAB secures grant monies that allow us to offer varies classes across the state that are offered free of charge for our members only.

In the spring and the fall across the state the six local associations pick anywhere from one to four safety classes they would like offered in their area. The classes that were given in the spring and will be open in the fall are for OSHA 10 hr Construction, Defensive Driving, Lift Truck Operator, Construction Focus Four, CPR/AED/First Aid, Fall Protection and OSHA Recordkeeping. NDAB is able to offer these classes with the North Dakota Safety Council conducting them thanks to a grant we receive through North Dakota Workforce Safety & Insurance. These safety classes are for continuing education credit and often fill up quickly. If interested in attending, please make sure to check with NDAB or your local association for available dates and locations. As an NDAB member, you can attend any class that you are interested in under any local association. Just note that you do need to register with the local association that the class is being offered under. It is with great excitement that we also can announce a second grant that we recently were awarded through North Dakota Department of Commerce through their State Energy Program Financial Award. This funding allows us to provide training seminars on energy effi-ciency and the State Building Code. While plans are still underway for when classes will be offered, we do plan to hold sessions to builders and their employees in seven cities across North Dakota! These half day seminars will cover the energy efficient construction techniques for new and existing homes and the updated require-ments in the State Building Code. The cities we plan to hold these seminars in are Bismarck-Mandan, Dickinson, Grand Forks, Fargo-Moorhead, Jamestown, Minot and Williston. We hope to have the classes scheduled soon and look forward to seeing many of you there. Please remember that if you are attending any of these classes that you are well on your way to be a member of our North Dakota Pro-fessional Builder program which requires seven continuing education hours per year for continued certification. If you would like to learn more about the Professional Builder Program or any of the classes offered through NDAB, please contact the office. We always look forward to speaking with you. Take care, Kim Schneider

Kim Schneider NDAB Executive Officer


www.ndbuild.com North Dakota Association of Builders September 2014

Dot Frank, Executive Officer 701-222-2400 bmhba.com

148 golfers teed off at Apple Creek Country Club for the Association’s Annual PAC Golf Tournament. The evening ended with a bang as golfers were called off the course due to a wicked summer storm.

The association hit a milestone in

membership at the end of July. BMHBA is proud to represent 400 builders, associate and affiliate members.

The Membership Committee has

been committed to sharing the benefits of Affiliate membership with local Realtors. Presentations at sales meetings have resulted in new members and a better idea of our mission.

The Fall Parade of Homes is

scheduled for Sept. 25-28. This year’s event will feature 37 homes built by 24 builders.

Dickinson Area Builders Assoc. Irene Schafer, Executive Officer 701-483-0044 dickinsonareabuilders.com

Our annual Picnic was great! Over 150 people enjoyed the food catered by Lady J’s Club & Catering and beverages.

We are looking forward to an equally

great attendance at our annual Golf Scramble on Thursday, August 21st at Heart River Golf Course.

Future plans include 2 Safety Training

classes. October 14th will be split into morning and afternoon sessions: Forklift Training & Defensive Driving.

Our November 4th class will be on

Supervisor’s Safety Development. Our General Membership Meetings

start up on September 10th with a meeting at Lady J’s.

Bryce Johnson, Executive Vice President 701-232-5846 hbafm.com The HBA of F-M is planning a lunch

session Sept. 9 with North Dakota state legislators to give members an opportunity to hear reports on interim committee activity.

Members continue working with volunteers to construct a home in Moorhead for a veteran and her ten-year-old daughter as part of the Home Builders Care Build with Habitat. The HBA of F-M and Home Builders Care will host a house blessing ceremony upon completion of the build.

The HBA is hosting its Fall Parade of Homes Sept. 6-7 and 13-14 and Remodeled Home Tour Sept. 13-14 showcasing 48 new homes and ten remodeled projects. New this year is a “featured remodel project” that showcases an extensive full-house renovation. Cost is $5 to tour that home with proceeds donated to Home Builders Care of F-M Foundation.

The Fall Home Show will be Sept. 26-27 at Scheels Arena in Fargo. The Fall Home Show’s featured speaker will be Brian Santos, the “Wall Wizard,” giving practical tips for paint and wall coverings.

Forx Builders Association Betty McDonald, Executive Officer 701-746-4536 forxbuilders.com Plans are moving right along for our

September 11th Golf Outing at Valley Golf Course in East Grand Forks. Marvin Windows and Doors is the event sponsor, Happy Joes is the pizza meal sponsor, Premium Waters will provide bottles of water during registration, Alerus Financial is sponsoring the registration brats as well as doing the grilling honors and Weber Irrigation will sponsor the registration keg.

Foundation work has begun on our

2015 Project House at 820 13th Street SE in East Grand Forks. It will be a 1545 square foot ranch.

Minot Association of Builders Vicky Flagstad, Executive Officer 701-852-0496 minotab.com

We had fourteen teams participate in our annual Past Presidents’ Golf Tourney at the Vardon Golf Club.

Builders After Hours will be hosted by

Crane Johnson Lumber on September 9th at their location in Surrey.

Williston Area Builders AssociationBeth Sundheim, Executive Officer 701-572-5744 willistonbuilders.com We would like to thank member picnic

sponsors RDO Equipment, Gooseneck Implement, Miller Insulation and Bakken Realty. What a good turnout with food, games, laughs and social networking.

Our first Holiday Parade of Homes

will be in October with a special event to bring awareness of the association and members. We are reaching out to the community for donated & decorated Christmas tree to be placed in every home. The trees will be sold during the parade with the proceeds go to Community Action to help the “aging past youth” (elderly).

WABA is reaching out to growing

cities in northwestern North Dakota (Wartford City, Tioga and New Town).

Save the Dates: November 13-15, 2014 is our NDAB Annual Banquet and Board Meetings in Grand Forks. We will have a great program for you and would love to have you join us! More details to come this fall.

Around the State

North Dakota EO’s and staff at the 2014 American Leadership Conference in St. Louis.

37

2600 Gateway Avenue Suite 1

Bismarck, ND 58503

PRSRT STDU.S. Postage

PAIDPermit #72

Bismarck, ND58501

september 2014 building buzz

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