JUNE 2019 June 21st 18th ANNUAL CLAY SHOOT 2019 TOP SQUAD Score of 302 Yaekel & Associates Insurance Services, Inc. July 19th Register Today Construction safety inspection blitz coming Some suggested items to pay close attention to: • Cranes with visible boom - operator qualifications in place for inspection • Electrical room access controlled, take damaged electric cords out of service, panel box protection • Protect all open excavations • Equipment back up alarms functioning • Fall Protection in place for anyone working over 6 feet on • Heat stress, make sure employees have access to water Cover - 2019 Sports Clay Shoot ...more inside State Legislative Updates & Progressive Tax Point / Counterpoint left to right: Tim Pruett, Jerry Yaekel, Dave Isselhardt, Mark Vasquez and Mark Frederich (not in picture) Bow Tie Economist - Worlds Dependency on China Upcoming Event Registrations & Membership Updates
HBR Sport Clay Shoot in action T-SHIRT SPONSORS Snack / Beverage Sponsors AUTCOhome Appliance Custom Marble, Inc. STATION SPONSORS ABC Supply Company, Inc. Allen Roofing & Siding Company Associated Bank Belleville News-Democrat BOS—Bank of Springfield Broadview Screen Co. CertainTeed Corporation Crown C Supply Drake Construction DRS Construction & Landscaping Heartland Turf Farms Himstedt Roofing, Inc. Kerber, Eck & Braeckel Light Brite Distributing Martin Glass Company Page 2 Red-E-Mix, LLC Ron Woods Excavating, Inc. Sandberg Phoenix & von Gontard P.C. Scott Credit Union Superior Home Products TheBANK of Edwardsville Wilke Window & Door Company, Inc. Yaekel & Associates, Inc.
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Sandberg Phoenix & von Gontard Score 245 Frank Srogus w/21 Dave Butz w/87 Sharp Shooter Winner Dave Pruitt $285 50/50 Winner Rocky Shemwell $185 Shotgun Raffle Winner Zec Bishop Page 4
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Check out the 2020 New Home Show Floor Plan Standard Booth $800 for HBA members All inside booths are 10’ x 10’ and include rear curtain, side rails and 110v electric. Tables and chairs are not included in booth investment. Page 6
Score Sheet Sponsors 290 Team SCI Engineering, Inc. Team Name XL Building Products Yaekel & Associates #1 SCI Engineering Yaekel & Associates #1 Henges Interiors SCI Engineering Henges Interiors SCI Engineering Dave Butz Jerry Yaekel Dave Dillow US Bank Home Mortgage Mark Dill Tim Pruett Jon Edler US Bank Home Mortgage Chris Mense Mike Hartoin TAMKO Building Products Mike Schaal Brent Phelps Yaekel & Associates #4 Yaekel & Associates #1 CA Jones Aaron Klemme Mike Farrell Dave Isselhard Jay Polar Shooter Name score 87 85 84 79 77 77 76 75 74 74 74 73 73 72 278 Team US Bank Home Mortgage, Red-E-Mix, LLC 267 Team Henges Interiors 259 C.A. Jones, Inc. Light Brite Distributing 265 Team Arrowhead Building Supply, TAMKO Building Products Page 7
Progressive income tax Senate Bill 687 passed the Illinois House Revenue & Finance Committee 9-6 along party lines for approval with some overlooked procedural rules meant to ensure deliberation and public notice. Members of the general public had no opportunity to voice their opinion on the measure in the days leading up to its passage. A Republican Committee member called out this maneuver noting that citizens were denied the ability to post witness slips supporting or opposing the rates bill prior to the hearing (nearly 10,000 opposing witness slips). The R&F Committee Chairman explained he was not in violation of the rules because the bill was posted for the committee hearing—though it wasn’t heard or voted upon—and he never technically adjourned that meeting, meaning they remained in a days-long recess. This allowed the committee to call a surprise vote on the rates bill. In addition to the surprise calling of the bill, three Democratic members of the committee who have either voiced opposition or withheld vocal support for the progressive income tax were substituted out of committee and replace with “yes” votes. What does this say about your confidence in this policy—in this measure—when the only way that you can get it through to the floor of this House is by engaging in legislative tricks and shout down people on the other side? On to the House floor (on Memorial Day) the progressive income tax amendment, SJRCA1, passed on a party line vote of 73-44. All Republicans voted “no and all Democrats voted “yes” with the exception of a Chicago Democrat who was not present. Now this will be up to the statewide voters whether to eliminate Illinois flat income tax protection on the November 2020 ballot. Though the rates plan approved by the House differs in some ways from Pritzker’s original proposal, the overall effect would be the same: a tax hike that would hurt small businesses, drag down economic growth, fail to close the budget deficit or pensions and serve as a bridge to higher taxes for the middle class. Illinois Policy Institute has been a viable source for taxpayers voicing their opposition to the progressive tax with over 12.5k calls made to lawmakers, tens of thousands of petition signatures and emails. Over the course of this session, the active email list has grown to over 530,000 that will continue to be informed of the importance of their vote to overturn the flat tax and change the Illinois Constitution. The fact that state lawmakers blew through internal deadlines to pass this amendment in late May, when voters weren’t watching, speaks volumes about their confidence in the plan. Page 8
Progressive Tax Lawmakers Celebrate Monumental Fair Tax Victory for Middle Class Families Leaders Also Announce Property Tax Relief Task Force As Part of Fair Tax; Bipartisan, Bicameral Task Force to Make Recommendations for Property Tax Relief Springfield, Ill. — Governor JB Pritzker and a bicameral group of lawmakers celebrated the historic passage of a constitutional amendment to let voters decide whether to change Illinois’ income tax system to make it fair for the middle class and working families, while asking those who make more than $250,000 to pay more. “For years, Illinoisans have been fighting to make our income tax system more fair to middle class families and those striving to get there, and this monumental vote in the General Assembly means that voters will have the right to decide our system for themselves in November 2020,” said Gov. JB Pritzker. “Together, we will continue our fight to make sure that 97 percent of Illinoisans will pay the same or less in income taxes and only those making more than $250,000 pay more. I want to especially thank Senate President Cullerton, House Speaker Madigan and the working group of lawmakers who put this constitutional amendment on the ballot.” Building on the Senate’s Fair Tax package, Gov. Pritzker and the group of lawmakers also announced the creation of the Property Tax Relief Task Force, designed to make recommendations that would give homeowners across the state property tax relief. The Property Tax Relief Task Force would be created through an amendment to the fair tax rate legislation that passed the Senate earlier this month, and the group would be required to report back to the Governor and the General Assembly by Dec. 31, 2019. An initial report will be due 90 days after the law takes effect. “For far too long, families across Illinois have struggled under too-high property tax burdens and an unfair income tax system that protects the wealthiest,” Gov. JB Pritzker said. “This task force is a commonsense addition to the fair tax, which aims to protect the middle class and those striving to get there while those making $250,000 and above pay more.” The Property Task Relief Task Force will be charged with using a racial and economic equity lens to identify the causes of increasingly burdensome property taxes across Illinois, review best practices in public policy strategies that create short- and long-term property tax relief for homeowners, and make recommendations to assist in the development of short- and long-term administrative, electoral, and legislative changes to create short- and long-term property tax relief for homeowners. The group will include two appointees from the Office of the Governor, as well as members of the House and Senate appointed by their chambers’ leaders. Page 9
The Home Builders & Remodelers Metro East Association (HBR) takes on the local, state and national issues that face our industry every day! When a municipality wants to update their codes or ordinances - WE ARE THERE! •Adopting IRC 2009+ includes mandatory fire sprinklers and other over reaching codes that we have been able to keep out of the Metro East. •Subdivision Codes utilities, stormwater & erosion control and land use resources have played a key role in keeping the industry costs reasonable to move forward with our building friendly communities. •Monthly attendance at Mayors meetings and Code Officials keeps us in the know and in good standing. If the State Legislature proposes new energy codes, sprinkler mandates or labor laws - WE ARE THERE! •Our members have the advantage of the Home Builders Association of Illinois to lobby everyday for the industry along with having their voices heard at Lobby Day in Springfield. •Implied Warranty, Building Code Freeze, Home Repair & Remodeler Act, Storm Chaser Laws, Vacant Lot Act, Bonds, Lien Laws and Energy Codes have all been at the top of the list over the past 5 years that the organization has been able to defeat, support or respectively oppose with agreed upon amendments that keep building affordable in our State. •Actively supporting and attending State Representative & Senator events have been vital to ensuring our industry gets a seat at the table. Federal policymakers take on issues with housing affordability, trade and tariffs, housing finance reform, building and energy codes - WE ARE THERE! •Constant updates of our Legislative priorities thru the National Association of Home Builders and respected relationships with our Congressmen make our case for industry issues with trusted and vast research done by the NAHB team of over 200 employees. •$5,500 is the average per housing start savings for a typical home builder that NAHB services and advocacy victories have saved as a result from 2018 thru flood insurance, I-codes and IRS ruling for remodeling expenditures. •NAHB has many other benefits to offer on building code expertise, legal advise and educational programs. Page 10
GENERAL CONTRACTOR LIABILITY FOR SUBCONTRACTOR PAYROLL HB2838 Thru the direction and efforts of HBA of Illinois to amend the bill that would make GC’s responsible to pay subcontractor employees if the subcontract didn’t pay them directly we have a slight victory! After this bill was sent to Senate it was assigned to the Judiciary committee that agreed to work with us to draft amendments for Safe Harbor language. Our HBAI team decided this route could be the best impact for our industry over asking for Residential Industry exemption that could be open to future changes in the definition of residential type properties. The Safe Harbor drafts included a slew of new documentation that would be necessary for the subcontractors to comply with along with giving up their proprietary knowledge, in part, of how their pricing breaks down as it relates to material/labor ratios. Not to mention employee names, partial SS#’s and the potential of exposing the subcontractor to potential “poaching” of good help. HBAI leadership agreed that this record keeping and distribution would cause an unneeded and costly burden to subcontractors. Back to the drawing board with talks to stall the bill and even go back to opposing on principal. Working towards the delay was best received with the possibility of gutting the bill as the Senate staff drafts were weakening our revisions. The Union sent a draft as well that included 3rd party ability to make a claim against a general contractor that was very concerning. In the final days of the Spring Session the decision to flight HB2838 with everything we had paid off, we can now take more time to draft a bill we should be able to live with later this summer. This victory was made possible through many efforts: phone calls, emails, in-district visits, lobby day meetings and participation in HBAI legislative conference calls. There is still a place in Illinois politics for good old fashioned grass roots campaigning. Page 11 Bill Ward shared “ Take ownership in this victory and know that it was the Home Builders Association of Illinois who led the charge with 14 other state business groups and associations backing out efforts. ”
Members save money through our GM, FCA, and Nissan discount programs. GM (Chevy, Buick, GMC) Members can save $500/$1000 Fleet ($1000 discount) is available on purchase or lease of 5 or more vehicles in a year/ or own or lease 15 or more vehicles of any kind FCA (Fiat, Chrysler, Dodge, Jeep, Ram) Members can save $500 – Member of Record, Household Family Members and Employees Nissan/Infiniti Members can save $3,000 - $9,500 on Nissan and Infiniti vehicles ALL YOU NEED IS YOUR PROOF OF MEMBERSHIP FORM EASILY ACCESSIBLE ONLINE OR CONTACT THE HBR OFFICE WWW.NAHB.ORG/SAVINGS Visit www.nahb.org/savings to see more available savings your NAHB membership gets you including: • Movie Tickets, Concerts & Sporting Events • Office Supplies • Rental Cars • Shipping Services Page 12
WORLD GROWTH IS INCREASINGLY CHINA DEPENDENT The global economy got off to a weak start in 2019. Equities went into a tailspin, the US government was closed for over a month, the weather was terrible and trade disputes seemed intractable. But of late, things have turned around. The government is open, the US and China seem on the brink of a trade deal, domestic stock markets are at an all-time high, and Q1 GDP came in at a surprisingly strong 3.2%. That said, the global economy really is cooling. At the start of 2018, there was broad-based synchronized global expansion, the broadest since at least 2010. Recently, forecasters have yet again reduced their growth estimates for 2019 and 2020. It’s tempting to blame President Trump for the reversal. After all, the global deceleration began around the time President Trump raised tariffs on washing machines and solar panels and then worsened as America slapped tariffs on steel and aluminum, and then on an increasing range of Chinese goods. But there is more to the global swoon than Trump’s trade war. The current global downturn bears a striking resemblance to the economic troubles of 2015. Then too manufacturing faltered and markets and also swooned. While it was partly due to the collapse in oil prices, China also played a big part. After massively stimulating its economy during the global financial crisis of 2007-08, by 2015 China’s leaders sought to wean their economy off easy credit, which had grown at mind boggling rates from 2009-14. At the same time, China also liberalized its financial markets, which led to massive capital flight and a stock market collapse. Financial turmoil radiated outwards, threatening to tip large swaths of the world economy into recession. China quickly reversed itself and re-imposed capital controls and their stimulus taps were turned back on; monetary policy was eased, and their deficit skyrocketed to well over 10% of GDP. Having survived that close call, China once again began to focus on stemming the ever-growing pool of fiscal red ink. To that end, lending to highly-indebted firms was restricted, and the government embarked on a bout of fiscal tightening on a scale rarely seen. Like clockwork, the deficit fell, but domestic demand weakened along with imports. In short, the world economy’s recent ups and downs are most closely related to China’s on-again off-again struggles to reform its economy and curb unruly borrowing. China should not matter as much as it does. Its tight capital controls keep its financial links with the rest of the world modest and it’s not yet the engine of global demand the way that the United States is. The problem is that the rest of the world is simply unprepared to lean against any Chinese headwinds. Interest rates remain at extraordinarily low levels, and as a result the United States has little room to cut rates while Japan and Europe have none. While fiscal policy could pick up the slack, Europe is unable to coordinate their policies and thus nothing gets done, while the US is already running unconscionably high deficits. Fortunately, China is once again turning on the stimulus taps, and in the process boosting growth and business and consumer sentiment. As a result, the current slowdown may well be as fleeting as that of 2015, if you even remember it. That said, these episodes show that the developed world has essentially chosen to put itself at the mercy of the fiscal management of the Chinese Communist Party! Page 13
HBR Sport Clay Shoot Score Card Team Name Yaekel & Associates #4 Srogus Construction Sandberg Phoenix von Gontard Light Brite XL Building Products Yaekel & Associates #1 Yaekel & Associates #2 First Mid Bank & Trust Light Brite Henges Interiors TAMKO Building Products Shooter Name Jerod Beckmann Joe Devereux Jerry Casey score 70 Taylor Scarltenbrand 69 69 Matt Salviccio Mark Frederick Scott Bauman Steve Goetten Pat Flowers Chris Brown Pat Conder Padgett Building and Remodeling Don Feitsam Sandberg Phoenix von Gontard Arrowhead Building Supply JK Yaekel & Associates #3 Srogus Construction Red-E-Mix Arrowhead Building Supply TAMKO Building Products Sandberg Phoenix von Gontard Yaekel & Associates #4 Yaekel & Associates #1 Yaekel & Associates #1 First Mid Bank & Trust First Mid Bank & Trust Yaekel & Associates #2 BOS Henges Interiors Yaekel & Associates #2 SCI Engineering TheBANK of Edwardsville Yaekel & Associates #3 Bobby Robinson Chris Berry CT Cook Scott Gifforn Trent Ketchum Rocky Shemwell Mark Vasquez Mark Eichholz Phil Lating Padgett Building and Remodeling Zec Bishop US Bank Home Mortgage Brent Borger Scott Gruber Casey Sweeney Bruce Bone James Browne Greg Brown Scott Billings Paul Millard Jim Lynch Padgett Building and Remodeling Don Padgett Padgett Building and Remodeling Gaines Smith XL Building Products Red-E-Mix TheBANK of Edwardsville Light Brite John Whitworth Larry Vitale Joe Neumann Jim Moss 68 68 67 67 66 66 66 65 65 65 64 63 63 63 62 62 Andrew Schoenberg 62 Steve Dill 61 61 61 60 60 60 59 59 59 59 58 57 56 55 55 54 54 54 53 53 Page 14 258 Team XL Building Products 256 Team Yaekel & Associates #1 234 Team First Mid Bank and Trust 234 Team Padgett Building & Remodeling, Co., Inc. 230 Team Yaekel & Associates, Inc. #2
HBR Sport Clay Shoot Score Card Team Name Cardinal Door 226 Team Yaekel & Associates #3, BOS—Bank of Springfield Henges Interiors SCI Engineering Yaekel & Associates #4 TheBANK of Edwardsville Crown C Supply CA Jones First Mid Bank & Trust First Mid Bank & Trust Yaekel & Associates #4 Yaekel & Associates #4 Yaekel & Associates #3 200 Team TheBANK of Edwardsville Arrowhead Building Supply XL Building Products Sandberg Phoenix von Gontard Authorized Appliance Yaekel & Associates #2 SCI Engineering XL Building Products Sandberg Phoenix von Gontard Yaekel & Associates #2 BOS 198 Team Srogus Construction Inc. CA Jones TheBANK of Edwardsville XL Building Products Ron Woods Excavating Ron Woods Excavating First Mid Bank & Trust Ron Woods Excavating 184 Team Cardinal Door Inc., Crown C Supply, HBAI Arrowhead Building Supply Srogus Construction HBA of Illinois Yaekel & Associates #3 Ron Woods Excavating Srogus Construction US Bank Home Mortgage Shooter Name Mark McBride David Padgett Mike Prather Kevin Benson Cale Henke Paul Seiberlich Jesus Lopez Joe Jarvis Lendell Phelps Bob Ketrow Terry Fowler Steve Mach Ryan Carlie Dan Haverstick Dave Corbitt Tad Berry Bill Dahlmann Erik Huber Chris Jones Paul Hanson Greg Korte Mike Yarber Dean Benson Paul Ottwein Joe Bauman Mike Geller Dr. Spezia Jason Paliatka Marty McCabe Ron Woods John G Brian Simmons Joe Srogus score 53 53 53 52 51 51 50 Chad Abernathy 49 Gabe Abernathy 49 49 49 49 49 49 49 48 Scott Behrmann 46 Tom Cummings 46 46 46 45 44 43 40 40 40 40 39 38 37 36 34 33 32 30 29 166 Team Ron Woods Excavating & Authorized Appliance Sandberg Phoenix von Gontard Nick Vansciever 29 Padgett Building and Remodeling Chris Srogus Construction Henges Interiors 28 27 Srogus Construction Page 15 Brandon McGraw 27 Frank Srogus 21
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RENEWALS Champion Waterproofing, Inc. - 18 years Earthworks, Inc. - 3 years Kaskaskia Mechanical Insulation Co. - 11 years Klemme Construction - 6 years Liese Lumber - 44 years Light Brite Distributing - 19 years Rebel, Inc. - 27 years Rose Creek Lumber, LLC. - 1 year Srogus Construction, Inc. - 8 years Woods Basement Systems, Inc. - 2 years Professional Women in Building Council Homes by Deesign, Inc. Sandberg Phoenix & von Gontard P.C. New ‘Connect 10’ Program Helps Younger Companies Grow If you’re early in your career as a home builder, it can be difficult to get the boost you need to start off right. That’s why NAHB’s 20 Clubs is expanding to a broader — and younger — audience. “Connect 10” is a new program geared toward companies that may not yet be established enough to warrant a traditional membership in the NAHB 20 Clubs, yet it offers similar networking and educational benefits. Modeled as a stepping stone toward membership in a 20 Club within two to three years, Connect 10 is based largely on virtual meetings. The virtual club model was developed as a convenient and appealing platform particularly for newer company owners. The Connect 10 program officially kicked off last month in Dallas, where the initial club held its formation meeting. “The program has essentially provided me with my own board of directors,” said Eric Visser, co-owner of Visser Construction in Anchorage, Alaska. “We’ve only just begun, but during that first meeting, we shared some of the successes and challenges we’re seeing in our markets, and those lessons will be a great benefit to me and my business.” The only requirement for a Connect 10 membership, aside from being an NAHB member, is that the member companies are less than 10 years old. Each club will comprise up to 10 members and meet quarterly for two, two-hour virtual meetings. In addition to a 20 Club facilitator, each club will have a dedicated mentor — a retired 20 Club veteran — to facilitate conversation and provide guidance. “By joining a Connect 10 club early in their careers, builders can get ahead of the learning curve on how to run their business effectively, thus increasing their company’s profit margins,” said Allan Brandt, mentor for Connect 10 and founder of the NAHB 20 Clubs. “Learning early on how to avoid major pitfalls is key and can significantly increase their company’s growth potential.” To learn more about NAHB’s Connect 10 program, email Mike Sutton or call 202-266-8241. Page 17
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Page 20 6100 West Main Street Maryville, IL 62062 Phone: 618-343-6331 E-mail: tbutler@hbaswil.org Web: www.hbrmea.org
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