H B OME UILDERS A SSOCIATION NEWSBRIEF The Official Newsletter of the Home Builders Association of Greater Southwest IL The Voice of the Homebuilding and Remodeling Industries in Southwest Illinois. Representing Bond, Calhoun, Clinton, Greene, Jersey, Madison, Monroe, Randolph and St. Clair Counties February 2016 issue www.hbaswi l .org Front row left to right: Suzie Quinton, HBA Director of Member Services, Beth Jacob, Jacob Sunrooms, Exteriors & Baths, Mindy Shafer – Wells Fargo Home Mortgage, Joe Lanahan 2nd Vice President – Joe Lanahan Construction Services, David Padgett 1st Vice President – Padgett Building & Remodeling, Jeff Schmidt President -RLP Development, Chris Jones Immediate Past President– C.A. Jones, Inc., Michelle Null – Benchmark Title, Barbara Markham – RE/ MAX Preferred – The Markham Network, Tracy Butler – HBA Executive Officer (Back row left to right): Chris Matteo – Fulford Homes, John Snapat – Fulford Home Remodeling, Norm Etling - Village of Shiloh, Joe Knox – Copious Technologies, Mike Rathgeb – Spencer Homes, Robb Treat – New American Funding, Mark Fulford – Fulford Construction, Garrett Johnson – Garret E. & Herschel E. Johnson RE & DEV., Jerry Yaekel – Yaekel & Associates, Joel Keel – Custom Floors & More, Jason Klein – Ameren Illinois, Ron Padgett – Padgett Building & Remodeling, Jason Huelsmann – New Tradition Homes, Aaron Klemme - Klemme Construction, Robert Dee Jr.,– Homes by Deesign, Mark Vogt – Vogt Builders, Ken Diel - Diel & Forguson and Art Stumpf – AUTCOhome Appliances HBA members and extended family joined us for the 2016 Installation of Officers Banquet. The evening started with a large crowd at the PAC Government Official Reception including Congressmen, State Senators, State Representatives and Mayors. The banquet shared presentations for our Remodeler of Distinction Awards, Home Show Magazine winner, Presidential Citations and Life Time Achievement Award. Chris Jones thanked everyone for their support of our industry and appreciation for keeping the HBA strong. Then onto the Installation of our officers and finally, the moment everyone was waiting for, the Installation of our 2016 President, Jeff Schmidt. We are grateful to all those that continue to support the HBA and look forward to keeping members involved, informed and proud to be part of the only local residential building industry trade association.
Government Official Reception Pre–Party Event 2
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Installation Banquet After Chris Jones gave his last speech as President he was given a plaque to hang his gavel, provided by First American Title Insurance Company ,along with a few parting gifts as a sign of our appreciation for the wonderful year that he lead us through! The Mary Schmitt Award for Outstanding Industry Service Congratulations Jan Johnson with Garrett E. & Herschel E. Johnson R.E. & Dev. Jan has played a major role in establishing the Professional Women in Building Council. As Chair, she guided the committee to achieve all of their 2015 goals by holding seminars with local Mayors, bowling tournament and silent auction. All of these efforts made it possible for the committee to give back to the community in many ways: two scholarships, donations to the Collinsville Area Vocational CenterBuilding Trades, Partners for Pets, Cahokia Citizens Food Pantry and Community Basket as well as helping 6 children have a gift filled Christmas. Congratulations to a taskforce that made great strides in taking the 1-55 Corridor Plan from one that was far reaching and over bearing to landowners in its coverage as well as residential developers and builders to a plan that makes sense to everyone involved while keeping with current codes and practices. This committee also opened the door showing local municipalities that we can work together and be a great resource! Left to right: Robb Treat w/ New American Funding, Joe Lanahan w/ Joe Lanahan Construction Services, Mike Rathgeb w/ Spencer Homes, Jeff Schmidt w/ RLP Development. Not pictured Jeff Lantz w/ Lantz Homes 4 RECOGNITION OF your willingness to step forward and take on additional responsibilities during difficult times. IN APPRECIATION OF your dedication and commitment to moving the association forward in a positive way. IN GRATITUDE FOR your response to the needs of our industry with an outstanding attitude and efficiency that has established a professional standard for all. WITH THE ADMIRATION OF your peers who praise your performance and involvement on multiple committees, Councils, volunteering and participation at events.
The ONLY locally run industry home show in our local territory. Whether you are an exhibitor or a sponsor you cannot go wrong with the exposure for the modest investment you make. THANK YOU TO OUR SPONSORS! Corporate Sponsors: Ameren Illinois ActOnEnergy • FCB Banks FirstCo Mortgage • Jacob Sunrooms, Exteriors & Baths • Southwestern Illinois Housing Advancement Fund (SIAF) Community Service Sponsors: CertaPro Painters of Belleville• Light Brite Distributing •Padgett Building & Remodeling Kids Area and Under 12 Free: R.P. Lumber Lanyard Sponsor: New American Funding And the winner is…… Spencer Homes is featured on the Home Show Guide Cover (right) This magazine will be seen by over 80,000 consumers throughout the Metro East in the BND along with all consumers that enter the HBA Home Show. 5
2015 Remodelers of Distinction Award Winners Klemme Construction Jacob Sunrooms, Exteriors & Baths Klemme Construction Klemme Construction Helitech - Waterproofing & Foundation Repair Padgett Building & Remodeling Helitech - Waterproofing & Foundation Repair Bathroom Renovation & President’s Award J.T. McDermott Remodeling Contractors 6 Director’s Choice Fulford Home Remodeling Kitchen Renovation & Judge’s Choice Fulford Home Remodeling
Private Lunch with Tuesday - March 15th Mayor Allen Adomite of Troy Join HBA members as we learn more about the , 2016 11:30a to 1:00p Butterfly Patio 904 Edwardsville Rd Troy, IL 62294 City of Troy Housing & Business Starts • 2012 IRC Code Enforcement (267 Housing starts over the last 5 years) Triad School District • Community Activities and much more!! Allen Adomite is a native of Troy and a 1993 graduate of Triad High School. Allen attended the University of Missouri and graduated in 1997 from the School of Journalism and a Bachelor's degree with an emphasis in Broadcast Journalism and a minor in Political Science. He continued his education in 2001 at Southern Illinois University at Edwardsville with a graduate internship in City Management and graduated with a Master's degree in Public Administration and Policy Analysis in 2003. In the past 15 years, Allen has served in several different capacities in local, state and federal government, as well as work in advocacy-related non-profits. Allen has been the principal researcher and author of several important studies and reports regarding the Illinois civic justice system. His work has been featured by the American Tort Reform Association (ATRA), as well as cited by the Manhattan Institute's Center for Legal Policy, ABC's 20/20, the Washington Post and the New York Times. In 2003, Allen was honored with the legal Watchdog Award from the American Tort Reform Association. Allen has had the privilege to serve as staff for the Illinois General Assembly, the Illinois State Comptroller's Office, and for our local congressman John Shimkus. Allen was elected as Mayor of Troy, IL, in April 2013. Previously, eight years as Alderman and three years as Mayor Pro-Term. # of reservations ____@ $25 per HBA Member includes lunch Company Name: __________________________________________________________________________________________ Phone# & Email: _________________________________________________________________________________________ Name(s) of attending: ______________________________________________________________________________________ ___Amount enclosed or payment below ___Will pay at the door (no shows will be invoiced) ___Invoice company Charge to Visa/MasterCard Number*: __________________________________________ Exp Date ______ *credit card payments will include an additional 4% convenience fee Mail to: HBASWIL, 6100 W. Main Street, Maryville, IL 62062 –or- Fax to: 7 Signature _____________________________________ (618) 343-6335 HBA Policy: Registration for the HBA Event is considered confirmation of your participation and will be invoiced if cancellation is not made within 3 days of the event.
Installation of the 2016 Board of Directors For the fourth year in a row the Board of Directors had the privilege of being installed by Lt. Colonel Knaust - Scott Air Force Base Lt. Colonel Knaust is being re-assignment to Korea this spring for one year but will be back at SAFB in time for the 2017 SAFB Air Show and the 100th year SAFB celebrations. He was presented with plaque (shown on left) on behalf of the HBA . We would like to share our sincerest gratitude for your service to our nation, the friendship you have shared with our organization and letting our HBA be a part of the Scott Air Force Base Air Show. Lifetime Achievement Award It is a honor to present the Lifetime Achievement Award, provided by Benchmark Title Company, to a true leader of our local HBA - Herschel E. Johnson. Herschel truly had a passion for our industry and cared for all those in it. He was President in 2002, exhibited in many Home Shows, helped start our Homes on Parade Event and encouraged his wife Jan to start our Professional Women in Building Council. One of his favorite events was our Annual Golf Outing that has been named the Herschel E. Johnson Golf Classic. His passion didn’t stay just at our local HBA he also attended NAHB events and represented our collective voice on several committees as well as on the Board of NAHB. Johnson Family: Scott and Jennifer Gunn, Mike Geller, Garrett Johnson, Angie Long, Rachel Johnson, Jan Johnson, Lance Johnson and Courtney Johnson. The NAHB Professional Women in Building presented Jan with a Buiding Hope Scholarship in Hershcel’s name that has raised $2,500 to date. This scholarship helps high school and college students as well as PWB members pursue education and professional development opportunities in the residental construction industy. 8
Economic Forecast for 2016: Slightly Better Than 2015 Looking at 2016, the domestic economic landscape looks solid, albeit unspectacular. The unemployment rate should continue falling, house prices are likely to rise by 5%, and the economy will be led almost entirely by the continuing improvement in household balance sheets, and in conjunction with increased employment and slightly faster wage growth. Government spending will be slightly higher in 2016 (but not enough to matter), capital expenditures by firms will remain weak, and exports will continue to suffer due to the strong US dollar. The most serious domestic problem is weak inflation, and it should begin to increase. Despite continuing poor global economic growth, the American economy will not weaken, but is also unlikely to strengthen much. With this in mind, I expect fullyear 2016 GDP to come in at 2.4%, slightly higher than the expected 2.2% GDP growth experienced in 2015. New housing starts should increase by about 12%, with total starts coming in at 1.25 million. Single -family starts will likely total 830,000, up from 710,000, while multifamily starts should hit 410,000, up from 400,000. New and existing home sales should rise by about 4% and end the year at 6.0 million, with mortgage purchase volume advancing by $60 billion and refinance activity falling by about $250 billion. Housing inventories should jump by about 150,000 units, to 5.5 months of inventory, up from 5.0 months now. 2016 FORECAST Given the continued improving labor market, expect net new monthly job growth to average 185,000/month, which while down from 205,000/month in 2015, is excellent given the shrinking size of the working age population. As a result, the unemployment rate should fall from 5.0% today to between 4.6% and 4.8% by year end and possibly lower, depending upon the behavior of the labor force participation rate (LFPR). If the LFPR rises, and that would be good, unemployment may end the year as high as 4.8%, but if the LFPR continues to fall, an unemployment rate of 4.6% or even 4.5% is distinctly possible. As for inflation, headline inflation will noticeably increase while core inflation (which excludes food and energy) edges up only slightly. Inflation should rise because energy and commodity prices are not likely to fall further and the dollar is unlikely to continue strengthening. 9 As a result, the downward pressure these forces have exerted on headline inflation will cease and headline inflation, now at 0.3%, should move towards the core rate which is now at 1.3% and will probably rise to 1.7% by year end, which is still below the Fed target of 2%. As a result, the Federal Reserve will have the luxury of time to slowly raise the federal funds rate from where it is now, between 0.25% and 0.50%, to between 1.00% and 1.25% by year end, with a rate increase coming every three to four months. As a result of slightly faster GDP growth and falling unemployment in 2016, 10-year Treasuries will end the year at 2.75% and 30year mortgage rates will probably hover around 4.5% as the yield curve flattens due to faster rising short-term rates. But slightly easing credit conditions and rising consumer spending due to improving employment numbers and wages will keep the economy and housing market on track despite mildly higher interest rates. Finally, I put the chances of a recession in 2016 at 15% to 20%. So look forward to steady economic activity in 2016 and fear not slowly ascending interest rates. Elliot Eisenberg, Ph.D. is President of GraphsandLaughs, LLC and can be reached at Elliot@graphsandlaughs.net. His daily 70 word economics and policy blog can be seen at www.econ70.com.
Installation Banquet The final ceremony, Installation of the 2016 President, was performed by Robert Plummer to have all witness the oath and commitment of Jeff Schmidt as our incoming President. Jeff also received the President’s Gavel, provided by First American Title Insurance Company, along with the official NAHB Local President Pin. Jeff’s incoming speech acknowledged the importance and value of membership. He informed everyone that we are ranked 2nd in the State for total members and encourages everyone to recruit one member this year. His passion for this industry was truly heartfelt in his speech and we are fortunate to have him lead us in 2016! Thank you to the following for making the wonderful evening possible! Installation Committee Chair: Mindy Shafer - Wells Fargo Home Mortgage Michelle Null - Benchmark Title Company Jeff Schmidt - RLP Development Joe Knox - Copious Technologies To view more pictures from the evening visit our website at www.hbaswil.org/gallery.php Master of Ceremonies: Ron Padgett Remodelers of Distinction Awards: Joe Knox Lifetime Achievement Award: Tracy Butler 2015 Mary Schmitt Awards: Chris Jones Installation of 2016 Officers: Lt. Colonel Knaust - SAFB Installation of 2016 President: Robert Plummer, R.P. Lumber Co. 10
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Nathan Verning of Oasis Homes - NAHB Finalist for Best in Green Young Professional of the Year Award Nathan Verning of Oasis Construction pulled together extraordinary people and companies to build a high performance home that incorporated a multitude of materials, technologies and components. Many of these were used by him for the first time. Nathan built relationships with dozens of people and companies, primarily members of the HBA and Green Councils, to learn about the many options available to build a high performance home. He then integrated the materials, technologies and components into this high performance NGBS Green Certified home. Nathan is a member of both the HBA of St. Louis and Eastern Missouri and the HBA of Greater Southwest Il and drew on members from both. Nathan documented every step of the process and spent countless hours and resources sharing everything through their website www.oasishomesusa.com On this website, in the Gallery section, are dozens of hours of video completely documenting the build process, including time-lapse videos. The website, in The Project section, features technologies and services. Nathan’s unwavering commitment to use this project as an awareness building and education tool was demonstrated throughout the project. The project culminated in an open house for the industry and the public to learn about the process of building this high performance home. Nathan built the home with 3 primary goals: Energy Efficiency, accomplished with a tight, well insulated building envelope, earth source heat pump, radiant heat and air conditioning, energy-efficient electric home powered with 20 kw solar and 10 kw wind with battery back up. Lots of natural light, accomplished with 8 solarpowered ventilating skylights, 2 solar tubes and well placed windows Great air quality, accomplished with an integrated ERV, no VOC paints and augmented by natural ventilation from ventilating skylights In support of the total comfort, health and safety for the people living in this home, it features dozens of high performance components and systems. This NGBS Green Certified home truly is a home that looks great and performs well. 12
January 2016 Renewed Members Allen Roofing ASAP Contracting & Roofing, LLC Copious Technologies Diel & Forguson Financial Group Garrett E. & Herschel E. Johnson RE & Dev Helitech Waterproofing & Foundation Repair Regions Bank Ron Woods Excavating, Inc. Scott Credit Union Throm Construction Co., Inc. Vogt Builders, Inc. Wells Fargo Home Mortgage Remodelers Council Klemme Construction Green Building Council Copious Technologies Professional Women In Building Council Century 21 Advantage - The Veliz-Vice Team Houzz and NAHB have formed a strategic alliance to provide benefits for NAHB Members including personalized support and special discounts on local advertising and Houzz Shop. As part of the alliance, NAHB members in good standing can have membership badges added to their Houzz profiles. Houzz visitors can identify that they are working with NAHB members who have specialized expertise, many of whom have received additional education or professional designations from NAHB to further their proficiency. Badges provide a powerful way to educate consumers and let clients know your professional and education affiliations. Here’s how: Go to your Houzz account Edit Profile Scroll down to affiliations Type name of organization in text box Click organization from drop down menu Click add Scroll to bottom of page and click update Badge will appear on your profile page Each badge links to the organization’s Houzz profile. For more information visit http://info.houzz.com/NAHBmembers 13
More Than 110,000 Attend 2016 International Builders' Show, Design & Construction Week This marked the third year of the co-located mega-event, which included the National Association of Home Builders (NAHB) International Builders' Show (IBS), the Kitchen and Bath Industry Show, the International Window Coverings Expo and The International Surface Event. Official attendance for IBS was 59,687, which was 8 percent higher than last year's show. Nearly 1,400 IBS exhibitors filled more than 500,000 square feet of space, including a record-breaking 30,000square- foot outdoor exhibit space. New products focused on home technology and increased energy efficiency: two factors boosting the return of buyers to the new home market. "The packed crowds and positive energy throughout this year's Design & Construction Week are another indication of the residential construction industry's ongoing recovery," said NAHB Chairman Ed Brady, a home builder and developer from Bloomington, Ill. "We reached our goal of creating the 'must attend, must exhibit' week for anyone and everyone in the residential construction industry," said Tom Swartz, chair of the NAHB Convention and Meetings Committee, during his report to the NAHB Board of Directors on the last day of IBS. Visit BuildersShow.com to see photos and videos of the show, as well as more information about the exhibitors, events, educational sessions and award winners. The 2017 IBS, Jan. 10-12, moves to the Orange County Convention Center in Orlando. Ed Brady 2016 NAHB Chairman 14
2016 HBA Home Show Corporate Sponsors OFFICERS President, Jeff Schmidt - RLP Development 1st Vice President, Dave Padgett - Padgett Building & Remodeling Co., Inc. 2nd Vice President, Joe Lanahan - Joe Lanahan Construction Services Associate Vice President, Mindy Shafer - Wells Fargo Home Mortgage 2016 Home Builders Association Platinum Annual Sponsors Secretary, Jerry Yaekel, Jr. - Yaekel & Associates, Inc. Treasurer, Robb Treat - New American Funding Immediate Past President, Chris Jones - C.A. Jones, Inc. 2016 HBA Gold Annual Sponsors 2016 HBA Silver Annual Sponsors DIRECTORS Jason Klein - Ameren Illinois Michelle Null - Benchmark Title Company Art Stumpf- AUTCOhome Appliances Joel Keel - Custom Floors & More Robert Dee Jr. - Homes by Deesign Joe Knox - Copious Technologies Beth Jacob - Jacob Sunrooms, Exteriors & Baths Aaron Klemme - Klemme Construction Jason Huelsmann - New Tradition Homes Barbara Markham - RE/MAX Preferred, The Markham Network Mike Rathgeb - Spencer Homes Mark Vogt - Vogt Builders, Inc. 2016 HBA Bronze Annual Sponsors OFFICER REPRESENTATIVE DIRECTORS Ken Diel - Diel & Forguson Mark Fulford - Fulford Construction Chris Matteo - Fulford Homes, LLC 15 John Snapat, CAPS, CGR - Fulford Home Remodeling Ron Padgett - Padgett Building & Remodeling Norm Etling - Village of Shiloh
6100 West Main Street Maryville, IL 62062-6688 Office (618) 343-6331 Fax: (618) 343-6335 Email: hba@hbaswil.org WWW.HBASWIL.ORG 16
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