September 2022 NEWSLETTER To promote, educate and advocate for the Residential Building & Remodeling Industry; providing resources that benefit industry professionals and consumers in the communities we serve. Back in Vegas! Don’t miss your chance to save on IBS 2023! • FREE Expo Pass for members • $100s in savings for Expo+Education 3-day Pass for Members • Save on a 1-Day Education Pass • Register your spouse FREE Enjoy Opening Ceremonies & the DCW Closing Concert along with other free and ticketed special events with NAHB Members from around the Country. 100+ IBS Education Sessions that you’re sure to walk away with actionable items you can apply to your business right away. Over 1,000 IBS Exhibitors & others displays to check out. WHATS INSIDE Upcoming Events: NEW 2023 Annual Raffle! Sept. 13 The “CAVE” Open House Sept. 16 Rocking On The River Oct. 6 Membership Social Nov. 3 Trivia Night Jan 31-Feb 2, 2023 NAHB IBS 2023 Home Show Information & Floor Plan 2023 RAFFLE WIN $500 WEEKLY Promotions: Remodeling Excellence Awards Membership Renewals 2023 Membership Directory Rates 2023 Annual Sponsorship HBA Rebates Belleville Infill Development Industry Leaders Rankings MORE INFO ON NEXT PAGE Industry News: IPI — Governor Pritzker Bus Tour NAHB — Stable July Construction Job Openings NAHB — Fed Warns of Pains in Inflation Fight Page 1
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Stable Reading for July Construction Job Openings The construction labor market is cooling off as economic activity slows in response to tighter monetary policy. However, the July data shows stability concerning the number of open, unfilled jobs in the construction industry. This trend will likely weaken during the second half of 2022 due to the policy decisions by the Federal Reserve. The count of open construction jobs ticked higher, rising from 353,000 in June to 375,000 in July. Despite recent slowing housing data, this is actually higher than the estimate from a year ago (337,000). The construction job openings rate inched higher, increasing to 4.6% in July after 4.4% in June. The data series high rate of 5.5% was recorded in April. The housing market remains underbuilt and requires additional labor, lots and lumber and building materials to add inventory. However, the market is slowing due to higher interest rates. Nonetheless, hiring in the construction sector increased to a 5% rate in July. The post-virus peak rate of hiring occurred in May 2020 (10.4%) as a rebound took hold in home building and remodeling. Despite slowing of building activity, construction sector layoffs remained low at a 1.9% rate in July. In April 2020, the layoff rate was 10.8%. Since that time however, the sector layoff rate has been below 3%, with the exception of February 2021 due to weather effects. The number of quits in construction in July (193,000) was effectively flat relative to the measure a year ago (190,000). Looking forward, attracting skilled labor will remain a key objective for construction firms in the coming years. However, while a slowing housing market will take some pressure off tight labor markets, the long-term labor challenge will persist beyond an ongoing macro slowdown. Robert Dietz CLICK HERE FOR MORE INFORMATION “The possibilities are limitless at the C.A.V.E. for high school students in Belleville. Over the past year, we have built the most advanced and innovative high school in the region dedicated to being an incubator for tomorrow’s leaders.” BRIAN MENTZER | BTHS 201 SUPERINTENDENT Page 4
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Gov J.B. Pritzker is on a bus tour celebrating his accomplishments for working families in Illinois. Accomplishment No. 1: Working families have paid more than $4,000 in additional taxes since Pritzker took office. Gov. J.B. Pritzker is heading around Illinois on a bus tour speaking about working families. They are at the center of his campaign, but not his administration – unless he needs their taxes. The tour kicked off in Elk Grove Village, where Pritzker took credit for his effort and record for working families. “I told many of you that if I were elected, I would work every single day to put Springfield back on the side of working families, and I’m proud to stand here with you in 2022 and say we’ve done just that,” Pritzker said Aug. 24. Pritzker didn’t mention when he first ran for office the price working families would have to pay. Because of his permanent tax and fee hikes, the average Illinois family has paid an extra $2,721 since Pritzker took office. If that weren’t enough, Illinoisans have paid $2,288 more in property taxes under Pritzker. Don’t worry, he has temporary relief for that, too: the median, one-time rebate is $279. That makes it a $2,009 property tax hike for working families. Property taxes in Illinois will continue to rise a guaranteed $2,149 should voters approve Amendment 1 on Nov. 8. The amendment grants government unions unconditional power to make endless demands with the weight of the Illinois Constitution, regardless of what it costs taxpayers. Pritzker isn’t the only one hitting the road. The U.S. Census estimated Illinois’ 2021 population shrank by over 140,000 people. That didn’t stop him from touting himself as the state’s “chief marketer” in a forum with the Illinois Farm Bureau. To fight rising inflation, Pritzker passed one-year temporary relief saving families $556, so they’re really losing $2,165 in net tax hikes. Working families in Illinois have a long history of paying more and getting less. Rejecting Amendment 1 is a small but crucial first step to some tax relief for families across the state. Page 6 Dylan Sharkey Budget + Tax
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2023 Home Show Floor Plan Page 9
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2022 MEMBERSHIP UPDATES RENEWING MEMBERS Absolute Specialty Services - 17 years Archway Cooling & Heating - 39 years C.A. Jones, Inc. - 10 new CMI Construction - 15 years Crown C Supply / Arrowhead - 17 years Eagle Flooring Outlet - 9 years Fairway Independent Mortgage - 6 years Fischer Lumber - 26 years Garrett E. & Herschel E. Johnson RE &Dev - 39 years HBD Homes - 12 years Heneghan and Associates, P.C. - 4 years Home Depot - 2 years MarketPlace Magazine - 5 years Martin Glass Company - 17 years Metro Marble & Granite - 5 years Morrison Plumbing, Heating & Air - 2 years Quantum Homes - 9 years RCC - 8 years Sandberg Phoenix - 16 years Wells Fargo Home Mortgage - 32 years PROFESSIONAL WOMEN IN BUILDING COUNCIL RENEWALS C.A. Jones, Inc. (new) First Mid Bank & Trust HBD Homes REMODELERS COUNCIL RENEWALS C.A. Jones, Inc. (new) Ambassador Floor CMI Construction Henges Interiors Page 13
REQUEST FOR QUALIFICATONS INFILL DEVELOPMENT OF VACANT PROPERTIES DEVELOPER PRE-QUALIFICATION LIST (2ND POSTING ANNOUNCEMENT) Introduction The City of Belleville, Illinois (population 44,478) is the county seat of St. Clair County and is located approximately 10 miles southeast of St. Louis, Missouri. The City is seeking a developer(s) to complete the construction of single-family homes on one or more City-owned vacant properties in Belleville. Scope of Project The City is seeking qualifications from experienced developers to be placed on a prequalification list to be considered for future sitespecific construction, of single-family residential homes, on identified vacant lots throughout the City. Future selection, of developers with specific projects, will be determined via a future RFP(s) identifying project locations and project scopes. All developers responding to future site-specific RFP’s, pertaining to this program, must be identified on the prequalification list. Timeline & Approval Process July 25, 2022: Request for Qualifications is advertised. September 30, 2022 (4p) Deadline to receive Qualification Proposals. Access the complete bid packet at the following link: https://belleville.net/bids.aspx?bidID=241 For any questions please contact Clifford Cross, AICP, Director of EDPZ via telephone at 618-233-6518 ext. 1251 or via email at ccross@belleville.net Page 14
Fed Chair Powel Warns of Pain During Inflation Fight Federal Reserve Chairman Jerome Powell adopted a hawkish tone on inflation during his Aug. 26 speech at the central bank’s annual economic symposium in Jackson Hole, Wyo. Powell stated that in order to bring down the rate of inflation, the Fed will continue to raise the short-term federal funds rate, which now has a top target rate of 2.5%. Economic forecasters estimate the Fed will ultimately raise this rate to between 3.5% and 4% by early 2023. If the rate ultimately reaches this range, that would mean a top mortgage rate in this cycle would surpass 6%. The average 30-year fixed-rate mortgage ticked up to 5.55% last week. Powell acknowledged that the fight to rein in inflation will cause economic pain, but said it is necessary to help avoid extended distress to the economy. “While higher interest rates, slower growth and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses,” said Powell. “These are the unfortunate costs of reducing inflation. But a failure to restore price stability would mean far greater pain.” Indeed, the housing sector is already feeling the negative economic consequences of tightened policy, as a housing downturn is underway. Additionally, Powell indicated that rates will not come down quickly after reaching their high point. “Restoring price stability will likely require maintaining a restrictive policy stance for some time,” he said. “The historical record cautions strongly against prematurely loosening policy.” NAHB Chief Economist Robert Dietz thinks that after reaching its maximum for this cycle, the federal funds rate will stay at that level for two to four quarters. As a result, the economy will see a rising unemployment rate during that time, per the NAHB economic forecast. Powell also indicated that as data reveal slowing inflation, the pace of rate hikes will also slow. “At some point, as the stance of monetary policy tightens further, it likely will become appropriate to slow the pace of increases,” he said. The next move by the Fed will occur on Sept. 21, with forecasters suggesting either a 50 or 75 basis point rate hike. Given the 75-basis point hike in July, a move of 50 will indicate that the slowing of the pace of increases has begun. A change of 75 would reveal that the Fed has not seen enough evidence of declining inflation. See this analysis by Dietz following the Fed’s last rate hike in late July. Economics Page 16
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OFFICERS P L A T I N U M President, Mike Lippert Liese Lumber 1st Vice President, Mike Needles C.A. Jones, Inc. 2nd Vice President, Steve Macaluso Halloran Construction, Inc. Associate Vice President, Jerry Yaekel Yaekel & Associates Treasurer, Richard Coolbaugh First Mid Bank & Trust Secretary, Jon Edler Henges Interiors DIRECTORS G O L D S I L V E R Allen Roofing & Siding B R O N Z Page 19 Jason Klein - Ameren Illinois Erik Huber - Bank of Springfield Matt Warren - Carrollton Bank Mary Ann Lopez Drake - Drake Construction Coy Mullenix - CMI Construction Michelle Rauk - Eagle Flooring Scott Gruber - First Mid Bank & Trust Mark Fulford - Fulford Construction Robert Dee, Jr. - Homes by Deesign Scott Blumberg - Huntington Chase Steve Dill - SLD Enterprises Josh McDermott - J.T. McDermott Remodeling Contractors Derek Brandmeyer - Light Brite Aaron Klemme - Klemme Construction Jason Huelsmann - New Tradition Homes David Padgett - Padgett Building & Remodeling Ron Padgett - Padgett Building & Remodeling Scot Lehr - Quality Installation & Home Improvement Jeff Schmidt - RLP Development Sue Schultz - Sandberg Phoenix & von Gontard P.C. Mike Rathgeb - Spencer Homes Mark Vogt - Vogt Builders, Inc.
6100 West Main Street Maryville, IL 62062 Phone: 618-343-6331 E-mail: tbutler@hbrmea.org Web: www.hbrmea.org ge
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