Congratulations, Theresa Springer Outstanding Associate Member CADRE Award Winner

Theresa Springer was recently honored with the 2009 Council Award for Demonstrating Remodeling Excellence for Outstanding Associate Member. The awards—known in the industry as the CADREs—were announced during NAHB Remodelers annual Gala at the 2009 Remodeling Show in Indianapolis. Winners in eight categories were honored for outstanding contributions and performance at the local council level.

Jarred Roy, from the Pella Corporation, with NAHB Remodelers Greg Miedema, CGR, CGB, CAPS, CGP, a remodeler from Tucson, Ariz., presented the awards from NAHB Remodelers.

Roy applauded Springer for “helping to promote remodelers, support professional development, and grow leadership at the local council.”

Theresa Springer, CGA, joined the Professional Remodelers at the HBA of Metro Portland in 2004 and has become a vital leader while representing the Pacific Residential Mortgage company. She actively participates in a long list of committee meetings, at luncheons, and at other events. Theresa has been working in home lending for more than 20 years and knows firsthand the challenges remodelers are experiencing with financing projects. She actively promotes council members to consumers through seminars and supporting website improvements.

The CADRE Awards, judged by members of NAHB Remodelers’ Board of Trustees, are presented each year to local Remodelers Councils and individuals whose work at the local council level exemplifies the best practices of the remodeling industry. The CADRE is the NAHB Remodelers highest national award for work at the local level.

Miedema added, “Local NAHB Remodelers Councils across the nation nurture excellence in professional remodelers with programs, education, and leadership development. The CADRE awards celebrate their achievements and raise the bar for local excellence.”

National News: For Remodelers, Recovery Won’t Mean Business as Usual

You have got to read this article from the Nation’s Building News giving highlights from the recent Remodeling Show. 

According to the article…

• The latest findings of the Leading Indicator of Remodeling Activity, which was released late last month by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University, spending on home improvements should begin rising early next year. Spending will, however, still have ample ground to recover, remaining 8.9% below its year-over-year level in the second quarter of 2010.
• Sixty percent of remodeling businesses never make a profit; 81% of them don’t track their profits by market and 64% don’t track profit by product. Most businesses don’t have a written business plan. Sixty-two percent of remodelers don’t track client retention and 64% don’t know their sales conversion rates. Consequently, roughly two-thirds of remodeling companies fail in their first five years,  roughly the same as the 60% failure rate experienced by small businesses overall. However, about 90% of remodelers perish before celebrating their 10th anniversary.
• Case Remodeling has found that after contracting an initial job, largely a smaller project coming in through its handyman division, 18% of its clients went on to a second job within 18 months. Of that 18%, 72% went on to a third project.

National News: Remodelers Action Needed!

NAHB Remodelers are urged to comment on a recent proposal by the U.S. Environmental Protection Agency that would add more requirements and costs — and subject the remodeling and renovation of an estimated 40 million additional homes — to the lead paint regulations that will go into effect in April 2010.

The proposed amendment is a direct result of EPA’s settlement with environmental advocates. Some of the proposed changes will drastically affect the rule and add further demands on remodelers.

The EPA’s lead paint rule is focused on homes built before 1978, which are more likely to contain lead. According to the U.S. Census Bureau, these homes account for 68% of the nation’s total housing stock.

The rule currently requires remodelers to certify their firms, have a trained and certified lead renovator on staff, educate home owners, contain and clean up dust, conduct a final dust wipe to confirm cleaning, and maintain records. The rule also allows an “opt-out” provision for homes without children under six and pregnant women as residents.

EPA is now proposing to remove the “opt-out” provision, which would drastically increase the number of homes impacted by the rule. If accepted, all pre-1978 homes would be subject to the rule, which is an estimated addition of 40 million homes.

Additional proposed changes to the rule include a requirement for remodelers to give the home owner a compliance checklist document to add to their home records for passing on to future owners. The checklist would describe the sections of the home renovated and details on rule compliance.

The window for comments to EPA on the proposed amendment to the rule is extremely short, yet is it is very important remodelers submit comments for the official record. NAHB is also submitting an official comment letter.

NAHB has created a member-only customizable letter to adapt and send to EPA by the comment deadline of November 27. The letter is accessible only to members and can be downloaded and tailored with comments and cost estimates.

The full proposed amendment was published in the Federal Register and can be downloaded in PDF format. Learn more about the current lead paint rule and how to prepare at  www.nahb.org/leadpaint.

Remodelers: Action Needed!

EPA estimates that compliance with the Lead: Renovation Repair & Painting Program increases the cost of each job by $35. Remodelers have expressed to NAHB the concern that $35 is well below the costs a firm will incur in working in pre-1978 homes. NAHB asks that you let EPA know the true costs of complying with the Lead Regulation.

Please send EPA a letter during the during the brief comment period, following the recent proposal to remove the opt-out provision and tell EPA how much it really costs to follow the regulation. Write and send your own letter or customize the member-only downloadable letter from the NAHB website with your story using the worksheet to estimate both the initial costs (certification, training, etc.) and the cost incurred for each job.

Questions? Contact remodel@nahb.org.

How to prepare your business for the flu season

This year’s flu season could potentially affect your business and employees. The H1N1 virus, also known as swine flu, has spread rapidly around the globe. One of the best ways to battle the flu season is by preparing your company now. Developing a game plan today will put you in a better position to keep operations running smoothly should the flu hit your workplace.

Here are six tips to prepare your business for flu season:

• Educate your employees: Inform workers about symptoms of the flu and how to prevent its spread to others. Post signs about good hygiene and put anti-bacterial soap or sanitizer in the office kitchen and bathrooms. Routinely wipe down computer keyboards, phones, door knobs, and light switches.
• Develop an absenteeism plan: How will you operate if there is significant absenteeism from sick workers, or those who stay home to care for ill family members? Determine, for example, who will assume the lead role if a manager becomes sick, or who will be responsible for payroll if your accountant is sent home.
• Alternative work arrangements: Train employees on how to telecommute from their home and set expectations for them if they have to work from home.
• Encourage vaccinations: Consider making flu shots available to your employees by brining in a service, or by subsidizing the cost for them to get them on their own.
• Keep sick workers home: Encourage sick workers to stay home without fear of losing their jobs. Workers who have flu-like symptoms (fever, chills, sweating) should stay home and not come to work until they’ve been fever-free for at least 24 hours. It may seem like an unbearable hardship for you, but you’ll have an even harder time if employees who contract the virus spread it to others.
• In case of an emergency: Have everyone’s mobile number handy to contact, or develop a phone tree to get the word out.For more information on the H1N1 virus, visit the Centers for Disease Control and Prevention.

November New Members of PRO

Welcome new members of PRO:

• Brian Bohrer, Cornerstone Construction Services
• Joe Yosso, Northwest Energy Savers
• Larry Gale Mock, Phoenix Group Construction

Energy Tax Credits

This is the easiest to understand explination of all the tax credits I have seen. Click on the picture below for the full size version. Then roll over this interactive poster to see the requirements and deadlines for remodeling-related energy improvements and equipment. The information comes from Remodeling magazine’s coverage of the stimulus package.

Market Your Business with Pumpkins

By Michael Stone, from the Mark up and Profit Blog

If you ever read the Peanuts comic strip, you’ll remember Charlie Brown and the Great Pumpkin. The Great Pumpkin appears on Halloween and does something (I can’t remember what).

Here is my take on pumpkins and your business. Many of us have small farms nearby selling pumpkins. How about offering the owner a lump sum for 100 – 150 – 200 pumpkins? You figure out what it’s worth and make an offer.

Then send a note to all former and future potential customers telling them they can take their kids or grandkids to the farm, using the coupon you are giving them, and get a free pumpkin. Maybe schedule it for one or two specific days only so you can be there to personally greet each family. In a few special situations, like military families where dad or mom are away serving our country, make sure everyone in the family gets a pumpkin even if you have to buy a few extra. (Don’t do that for business purposes – do it because it’s the right thing to do.)

When you send the note, thank each family for their past business and extend the assurance you will do a great job in the future. Ask if they know anyone who wants to do work on their home or building. Referrals are great things. One new job and you have paid for this whole program, and it’s fun as well.

Might be worth a try. Okay, it’s getting close to Halloween and you’ll have to really move to get it done before the holiday, but is there any special event in your area for Thanksgiving or Christmas? Maybe arrange for a discount on tickets to a show, or a tree lighting event, or for Christmas trees, or holiday candy somewhere, or a free ornament at a local bazaar, or . . . . get the idea?

October PRO Monthly Meeting

Thank you to Rejuvenation for sponsoring our October monthly meeting.

NAHB STAR

What is nahb STAR?

It is a singing contest, for NAHB Members and immediate family members only, to determine who will sing the National Anthem at the Grand Opening Ceremonies at the 2010 International Builders’ Show® in Las Vegas, January 19, 2010.

How Do I Enter?

FIRST, carefully read the official Rules and Regulations of the nahb STAR contest to make sure you are eligible.

SECOND, make your video! This must be a solo a cappella performance of the Star Spangled Banner.

THIRD, by November 2nd you must submit:

Your signed nahb STAR Entry Form/Contest Release form via fax to 202-266-8193

Your nahb STAR video via email to nahbstar2010@gmail.com

Further instructions on submitting each are listed on the bottom of page two of the Entry Form/Release.

Be sure to check out the nahb STAR important schedule to see what happens after the first round of voting!

That’s it! When voting begins November 16th, you’ll want to be sure and let all your friends know to visit www.BuildersShow.com to vote for their favorite nahb STAR!

Who Do I Contact With Questions?

Please send any questions to nahbstar2010@gmail.com

What’s the New Normal?

By Judy Miller from www.remodeling.hw.net

Last week I asked 12 successful remodelers to define “the new normal” – what did they expect the economy to look like over the next 3 years. Here are some of the more salient comments:

• Sustainability – Both from the perspective of the company as well as the buildings. We want to build projects that last, that protect the environment. We want to build our companies in the same fashion.
• Smaller confines – We’ll work in smaller areas, see fewer large projects. No one will build McMansions over the next 3 years – at least no one in our target market.
• Smaller job size – Not only will we work in smaller areas, the job sizes will be tightly controlled.
• Diversification across job scopes – We’ll do many more different types of jobs than we’ve done in the past. We won’t be able to rely on just ”whole house renovations.”
• Greater education on value – Clients must be educated to understand why we charge what we do. The value in hiring our company has to become crystal clear, both for the clients as well as our employees.
• Flat consumer confidence – Until and unless the economy shows clear and strong signs of strength, consumer confidence will remain flat.
• Short attention span – Consumers are less patient, they come to us with an idea in their minds that they want to see built sooner rather than later.
• Generational differences –Younger clients want instant gratification. They’re not as interested in building a long-term relationship with us; loyalty is not a prime consideration for them.
• Increase in “production oriented” remodeling – Concepts such as ”1-week bath” and ”1-month kitchen” require standardized systems more typical of production builders rather than the customized remodeling that we’re used to doing.
• Energy efficiency – This will be a slow sell, but will build in importance over the next 3 to 5 years.
• Change in buying patterns – Greater reliance on social networking; online pricing will change the sales process.
• Activating un-used spaces instead of adding on – Room configurations will change and un-used or under-used spaces will be adapted to better use.

One respondent said “the American buying public has a very short attention span. Once we’ve relaxed into the ‘new normal,’ things will go back to where they were. Everybody wants luxury.” I’m sad to say it sounds like he might be right: I read recently that given $10,000 to spend, no strings attached, 62% of American consumers would choose to upgrade their countertops rather than increase their energy efficiency – even as winter approaches.

That’s not what I’m betting on though.  I think the new normal looks like this:

• Less access to credit means fewer high-end jobs and less money spent on unnecessary upgrades.
• Fewer clients (and less money) in the high-end target market mean smaller market share in dollars.
• Therefore, many remodelers who relied on that target demographic will have to find other ways to meet their targeted sales volume.
• Therefore, smaller job size, greater job scope diversity, more emphasis on necessities rather than luxuries.
• More home-owner involvement in some parts of the project, such as painting.

In sum, I see a sea change coming that will appear as a tsunami to those who aren’t prepared. Now is a great time to move to higher ground – however you define that within your company – and continue to sharpen your saw by ensuring that the following systems produce predictable, desired results:

• Marketing throws off good leads in your target market, even after re-defining that market;
• Sales effectively sells those leads at a pre-planned gross margin;
  Production profitably produces on-time and on-budget – no slippage;
• Administration maintains smooth and timely communication throughout various departments;
• Finance protects cash flow, produces complete and accurate reports in timely fashion and projects future results well.
• Leadership and ownership equally value customer and employee satisfaction – holding the team accountable to agreed-upon goals and maintaining clear vision of where the company is heading.

Last, but certainly not least, one respondent emphasized that everyone, owners and employees alike, want to be involved in something bigger than themselves – they want to build a cathedral, not just lay stone, hang trusses, install cabinets, or process accounts payable.

Build a vision for the ”new normal” for your company that moves the company forward, meets a real need in your community, and provides a sense of great accomplishment – then the new normal will be just right for you!