H B OME UILDERS A SSOCIATION NEWSBRIEF The Official Newsletter of the Home Builders Association of Greater Southwest IL To promote, educate and advocate for the Residential Building & Remodeling Industry; providing resources that benefit industry professionals and consumers in the communities we serve. February 2018 issue www.hbaswil.org Installation of Officers & Industry Awards Banquet Thank you to everyone that was able to join us for a wonderful evening filled with recognition, congratulations, cheers and laughter. It is with great pleasure to introduce our 2018 HBA President Chris Matteo Fulford Homes Complete coverage and details of the evening will be shared in the March Newsletter!
2018 HOME SHOW EXHIBITOR & SPONSORSHIP PACKET Available at www.hbaswil.org SHOW HOURS: FRIDAY ~ SATURDAY ~ SUNDAY March 2nd - 2pm to 7pm • March 3rd - 10am to 6pm • March 4th - 11am to 4pm SHOW LOCATION: Belle-Clair Exposition Hall 200 South Belt East (Route 13 & 159), Belleville, IL (618) 235-0666 Booth Costs $250 to $950 ~ Sponsorships from $500 to $5,000 HBA Home Show Floor Plan 2
Contractor Re-Sale Clear out your storage / warehouse while helping local building programs & Habitat for Humanity DONATION SUGGESTIONS Appliances Cabinetry Counter Tops Discontinued Inventory Doors Exterior Building Products Flooring Products Home Décor Insulation Lighting / Fixtures Lumber Paint Products Tools Windows CONTRACTOR RE-SALE MARCH 2, 3 & 4 Belleville Fairgrounds Complete the following form to make your commitment of donations. A friendly HBA rep will contact you between February 19th thru March 1st to make arrangements for delivery Primary Contact: __________________________________________________________________________________________ Company Name: __________________________________________________________________________________________ Address: __________________________________________________________________________________________________ Phone Number: ____________________________ E-mail: __________________________________________________ Description of item(s): Large Medium Small ____ # of possible items Type of items donating: _____________________________________________________________________ Can deliver Feb. 28 or March 1st Will need to make drop off arrangements prior to Home Show Home Builders Association of Greater Southwest Illinois 6100 West Main St., Maryville, IL 62062 3
Shore Fishing at Edwardsville Gun Club 4104 Staunton Rd., Edwardsville - (618) 656-2875 Bring your own live bait and tackle! $50 Team Entry (two persons/kids welcome) Includes: Give-A-Way, Dinner, Drinks and Friendly 12:00 pm - Registration 1:00 pm - Drop your line 4:00 pm - Reel it in 5:00 pm - Awards Winner Categories: Total Team Weight $100 hourly Prizes for Biggest Size: Bass, Catfish, Bluegill, Crappie Rod & Reel Raffle ($250 value) 1 ticket for $10 or 3 for $25 ~ limited # of tickets sold ~ Winner does not need to present to win Sponsorships to lure you! Beverage & Snack Cart Sponsor........$ 250.00 Signage on carts (3 opportunities) Exclusive Prize Sponsor......$ 200.00 Plaques with your logo to winners Bait & Hook Sponsor……..........$ 50.00 Signage at the lake Registration: complete the following information and return it to the HBA office (please print) ___$ 50 Team of two ___$ 250 Beverage & Cart Sponsor ___ $ 200 Exclusive Prize Sponsor ___$ 50 Bait & Hook Sponsor ___1 Raffle ticket for $10 ___3 Raffle ticket for $25 $ _______TOTAL DUE Method of Payment: ___Member Invoice ___Check ___Visa/MasterCard* *credit card payments will include an additional 4% convenience fee Credit Card# ___________________________________ Expiration: ______ Signature: ___________________ Company Name: ________________________________________________________________________________ Contact Name: _______________________________ Phone#/Email: __________________________________ Fisherman one (1) ______________________________ Fisherman two (2) ________________________________ HBA Policy: Registration for the Fishing Tournament is considered confirmation of your participation and will be invoiced if cancellation is not made within 3 days of the event. 5 Home Builders Association of Greater Southwest Illinois 6100 West Main St., Maryville, IL 62062 Office: (618) 343-6331 - Fax: (618)343-6335 www.hbaswil.org ~ Email: hba@hbaswil.org
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The owners of this house were wavering between a new home or staying and conforming their current home to fit their needs and lifestyle. After seeing the virtual reality transformation that could be accomplished they was not question but to renovate. The renovations gave this house exactly what the owners needed for their family. This home is located on a popular lake and fell behind in both design and upkeep. When entering the home it was stepping back into 1970’s. All of the renovations within the home truly lightened up the space while bringing in better views of the lake along with an additional bedroom allowing the family to continue their gatherings for generations to come. Now everyone can enjoy the lake at it’s best. This historic farm house built in 1900 was in desperate need of a kitchen remodel. The client requested to include current features with a high-end historic look. The final renovations did exactly as the client asked and brought older country charm into the current times. Adding nostalgia is the custom cabinetry made from cherry trees off of the 40 acre farm.
Economic Forecast 2018: Like 2017 But Slightly Better The combination of solid, widespread global growth; strong labor markets; low inflation; improving commodity prices; a slightly weaker dollar; and continued easy monetary policy from most central banks sets the stage for a good year. Moreover, the recently passed front-loaded tax cuts here in the US will help by adding a pleasant tailwind to the domestic economy. The possibility of increases in infrastructure and defense spending, along with the continued deregulatory efforts of the Trump administration, make the domestic economic landscape heading into 2018 as strong as it has been since the end of the Great Recession. However, there are also economic headwinds. The fear of inflation could spook the Federal Reserve to raise rates more rapidly than expected, which would slow growth and unsettle financial markets. A large confidence-shattering drop in the stock market, for any number of reasons, might hurt the economy. With the now low tax rate on repatriated earnings, American firms might bring back substantial profits from abroad, and in the process, boost the dollar, which will hurt manufacturing activity. Lastly, geopolitical problems always lurk and could easily have negative growth implications. With all this in mind, I expect full-year 2018 GDP to come in at 2.6%, slightly higher than the 2.3% growth experienced last year and the 2.1% average rate of growth since the end of the Great Recession. Headline inflation looks to pick up from roughly 2% to 2.3% in 2018, while core inflation (which excludes food and energy) will edge up only slightly. Because of the slow rise in core inflation, the Federal Reserve will probably have the luxury of time to raise the federal funds rate from where it is now, at 1.375%, to 2.125% by year’s end, with a quarter-point rate increase roughly every three or four months with the first one in March. Turning our attention to the labor market, I expect net new monthly job growth to average 150,000/month, which, while down from 167,000/month in 2017, is excellent given that 10 we are late in the business cycle and few potential workers remain on the sidelines. The unemployment rate will fall from 4.1% today to 3.6% or even 3.5% by year end, a rate not seen since the late 1960s! As the labor market tightens, nominal wage growth should increase in 2018, with average annual wage increases rising from 2.4% to 2.75% and as much as 3% by the end of the year: a healthy rise. Because of faster GDP growth and the falling unemployment rate, 10-year Treasuries will end 2018 at 2.75%, and the rate on 30-year mortgages will be at or near 4.40%. However, continued easing of credit conditions and rising consumer spending due to continued strong employment growth and better wage growth will keep the economy and housing market on track. Despite passage of the new tax bill, which is likely to modestly slow home sales and house price appreciation in some high -cost areas because of the reduced benefits of homeownership, housing starts should increase by about 7%, to 1.29 million. Single-family starts will likely total 930,000, up from 850,000, while multifamily starts should flatline at about 360,000. New and existing home sales should collectively rise by about 3% and end the year at 6.35 million, with mortgage purchase volume advancing by $100 billion, and refinance activity falling by about $200 billion due to the rise in mortgage rates. Housing inventories will, regrettably, remain unchanged, and combined with limited new home building, home prices will rise by 5%. Motor vehicle sales will slip to 16.5 million from 17.1 million and the chances of a recession in 2018 is low given the very solid global economic conditions that currently prevail. I peg the chances of a recession in 2018 at just 15%. Elliot Eisenberg, Ph.D., President GraphsandLaughs, LLC Email: Elliot@graphsandlaughs.net His daily 70 word economics and policy blog can be seen at www.econ70.com
January Renewed Members Arrowhead Building Supply Barnes Properties Coach House Garages Dossett Installation DRS Construction & Landscaping E.A. Knight Construction Fence & Deck Depot Fulford Homes LLC Fusion Realty Germantown Seamless Guttering, Inc. Heartland Turf Farms Illinois Title and Escrow John Bender, Inc. L.D.C. Homes, Inc. Mr. Handman of Metro East Munie Greencare Professionals P&A Drywall R.P. Lumber Company Regions Bank Rehkemper & Sons Building Components Ron Woods Excavating RSI Kitchen & Bath Sherwin-Williams Company Trost Plastics Vogt Builders Warrior Building Products, Inc. Remodelers Council First Integrity Mortgage Services (new) Professional Women in Building Council First Integrity Mortgage Services (new) January 2018 New Members Illinois Closet Concepts Paul Uhlmansiek 3512 Lebanon, Suite B Belleville, IL 62221 Phone: (618) 531-5744 Cell: (618) 589-9223 Email: paul@illinoiscloset.com Website: www.illinoiscloset.com Rose Creek Lumber, LLC Kyle Finnie 3180 Raleigh Rd Raleigh, IL 62977 Phone: (618) 559-9199 Cell: (618) 559-9199 Email: rclumberco@gmail.com Website: www.rosecreeklumber.com Veterans United Home Loans at SAFB Mike Dapkus 735 Seibert Rd., Suite 3 Scott Air Force Base, IL 62225 Phone: (618) 746-4699 Cell: (618) 789-1544 Email: mdapkus@vu.com Website: www.stlouisvaloans.com 11
Things Learned at the Builders Show Bill Ward, Executive Vice President, HBAI The 2018 International Builders Show and NAHB Board Meeting were held in Orlando. The second largest trade show in North America attracted an estimated 87,000 builders and associates from around the world. Held in conjunction with the Kitchen & Bath Show, there is no place on Earth to learn more in one week about your business, your association, and your industry. Here are some bullets of information I gathered at this year’s IBS. Government Affairs 1. Tax Reform has landed and it is now time for all of us to take a deep dive into how it will affect our individual & business taxes. NAHB is creating a webinar for this that will be available to all members and HBAI has requested a knowledgeable NAHB staffer to come to our state to provide guidance on what you need to know about tax reform. 2. Did you know that dropping the cap on home mortgage interest deduction from $1 million to $750,000 still includes 98.7% of all home mortgages in the U.S.? This may be a loss to us, but it wasn’t a bad one. 3. 34 million Americans filed itemized tax forms for their 2016 taxes. It is estimated that this number will drop to 14 million. Will that be bad for home ownership or will increased net income mean more home buying? 4. The price of softwood lumber and drywall may go up so Association Affairs The NAHB Board of Directors passed the Governance Bylaw changes allowing a more executive style board (corporate council) to operate most NAHB matters. The 1200 member BOD will be referred to as Delegates in the future and will still have the ultimate authority to make bylaw changes. Sooner or later, NAHB wants to go to a centralized, online membership payment process. Illinois State & Local Associations need to work together now to discuss our needs for functioning in a centralized, online system. We want every local to have a system that easily pays dues, makes payments for special events, and allows negative PAC fund checkoffs. A third meeting of the NAHB Board of Directors will be put back into place in 2019. The IBS, a Mid-Year meeting in Washington, D.C., and third meeting that moves around the country will be back on the calendar like it was for many years. Did you know that National Area Chair, Mike Nagel from Illinois, sponsored the resolution to bring back the third meeting? Chuck Fowke of Tampa, Florida defeated Fred Hoppe of Lincoln, Nebraska for 3rd Vice Chair at NAHB. Randy Noel of La Place, Louisiana was unanimously installed as the Chairman of the Board for NAHB. Kevin Chaffin is once again our State Representative to NAHB from Illinois and will have a seat on the new Corporate Council once it is initiated. You can experience the same when you attend the 2019 IBS in Las Vegas - February 18, 19, & 20th 12 much this year that NAHB has developed a “cost adjustment clause” for builders to place in their contracts to protect their profit margins. Call or write for more information. 5. 2017 was the most expensive year for natural disaster damage. Stronger building codes could result from this. 6. New Construction is back in the House Flood Insurance bill. This is good. 7. U.S. EPA is working on a new rule to replace the Obama WOTUS rule. U.S. Supreme Court to rule on WOTUS this year. 8. Bring Housing Home is scheduled for April 30 thru May 5, 2018. Do you know what that is? Call or write for more information. 9. NAHB wants President Trump to move on the Dreamers issue. We need to solve the Visa issue for our industry. Politics There will be 45 open seats in the U.S. Representative 2018 elections; 30 of those seats are in Republican districts. 11 Democratic Senators are running for reelection in Republican States. Arizona will have two open seats with the eminent departure of Senator John McCain. 4. BuildPAC has raised $1.2 million in this election cycle (2017/2018). Their goal is to raise $3 million in total this year.
The show was an exciting time for our organization as our HBA was recognized for hard work and contributions made to the industry! Local Councils WON these prestigious awards! Professional Women in Building Council Council of the Year (second year in a row) Outstanding Innovative Program for their work connecting with local leaders and their role at SAFB Air Show & Open House. Outstanding Legislative & Political Action Program for their work with local government officials who play a vital role in developing and/or amending regulations that impact our industry. Remodelers Council Jon Edler with Henges Interiors for winning the new award “One to Watch” that honors a remodeler member under the age of 40 who is an advocate for the remodeling industry, engages with peers, and has embedded themselves as exceptional members of their communities. Jon Edler (center) receiving his award from NAHB Remodelers Tracy Butler, HBA Executive Officer Michelle Null, 2018 PWB Chair Beth Jacob, 2016 PWB Chair Cherity Freeze, 2017 PWB Chair Jan Johnson, 2015 PWB Chair Jan Johnson presenting the NAHB PWB Woman of the Year Award Jon, Tracy & Mark Gau touring the Remodeled Home before the ceremonies Most of the gang stuck around to enjoy the concert from Chicago Chillin’ out after long days of meetings and walking the show floor at Blue Martini & the Ice Bar 13
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2018 HBA Home Show Corporate Sponsors OFFICERS President, Chris Matteo - Fulford Homes, LLC 1st Vice President, Beth Jacob - Jacob Family Enterprises 2nd Vice President, Aaron Klemme - Klemme Construction Southwest Illinois Housing Advancement Fund 2018 Home Builders Association Platinum Annual Sponsors Secretary, Jerry Yaekel, Jr. - Yaekel & Associates, Inc. Treasurer, Ken Diel - Kerber, Eck & Braeckel, LLP Immediate Past President, Dave Padgett - Padgett Building & Remodeling Co., Inc. DIRECTORS Jason Klein - Ameren Illinois Art Stumpf- AUTCOhome Appliances Michelle Null - Benchmark Title Company Coy Mullenix - CMI Construction Joe Knox - Copious Technologies Joel Keel - Custom Floors & More Robb Treat - Fairway Independent Mortgage Corp. Mark Fulford - Fulford Construction 2018 HBA Gold Annual Sponsors 2018 HBA Silver Annual Sponsors John Snapat, CAPS, CGR - Fulford Home Remodeling Steve Macaluso - Halloran Construction Jon Edler - Henges Interiors Robert Dee Jr. - Homes by Deesign Josh McDermott - J.T. McDermott Remodeling Contractors Jason Huelsmann - New Tradition Homes Ron Padgett - Padgett Building & Remodeling Barbara Markham - RE/MAX Preferred, The Markham Network Ryan Butler - Remington Properties Jeff Schmidt - RLP Development Sue Schultz - Sandberg Phoenix & von Gontard P.C. Mike Rathgeb - Spencer Homes Mark Vogt - Vogt Builders, Inc. 2018 HBA Bronze Annual Sponsors ADVISORY DIRECTORS Chris Jones - C.A. Jones Garrett Johnson - Garrett E. & Herschel E. Johnson R.E. & Dev. Scott Jacob - Jacob Sunroom & Exteriors Bruce Riedel - RLP Development Associate Vice President, Mindy Shafer - Wells Fargo Home Mortgage
6100 West Main Street Maryville, IL 62062-6688 Office (618) 343-6331 Fax: (618) 343-6335 Email: hba@hbaswil.org WWW.HBASWIL.ORG
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