Weekly Update: September 7, 2017

Mike Rowe Skilled Trades Event a Giant Deal!

We couldn’t be more excited about our Iowa Skilled Trades Event featuring Mike Rowe on September 8.  Here’s a little update:

Sponsorships – Over $150,000 Raised!

Currently our event partners are as follows Home Builders Association of Iowa, Plumbing Heating Cooling Contractors of Iowa, Master Builders of Iowa, Iowa Workforce Development, Iowa Economic Development Authority, Iowa Department of Education, Beisser Lumber, Whirlpool, Carpenter’s Union Local 106, McAninch, Pipefitters & Plumbers Local 125, Kirkwood Community College, Windsor Windows & Doors, Turner Construction & Pella Corp.

Table RSVP Updates: We have 115 table RSVPS

(1150 Seats Including Educator/Student RSVPs) with many contracts & payment coming in.  We are maxed out at 150.  Here’s how you can help out – a number of companies are purchasing tables for the educators and students!  They have no plans to attend, they just want to make sure as many educational influencers are taken care of since we’re not charging them to attend.

Educator & Student RSVP Update: We currently have 306 educator & student RSVPS.

As we stated in the marketing the first 200 are free based on 100 tables. We have the Iowa Events Center planning for over 1,500 people, so if we can get to that 150 table level we will allow more students in. Right now we are making them aware of the list, but also will be working very hard not to turn any educator or student away from this event.

Individual RSVP Update:

Currently we have 63 individuals signed up outside of the educator & student list.

Marketing Update:

We are continuing to share our press release with media folks across the state of Iowa.  If you have any influence with news outlets please share this event with them.  We have finalized production on our radio commercials for 1040 WHO.  They started airing this week and you should hear 5 different versions.  Each version names 3-4 different partners.  We have begun to post 2-3 times per day from the Iowa Skilled Trades Facebook page.  Please make sure that you are going out to Like & Share our posts from both the business page and your personal page.  This will help increase the awareness of this event.  If you have something you would like us to post we would be happy to schedule it.

FaceBook:

If you haven’t found us and Liked the page please do so! Make sure to invite your friends to like the page as well!  Click here.

Help Us Sell it Out:

We are continuing to hit others in the industry across the state of Iowa with information about our event!  We would really like this to be a sellout event and would love your help to do so.  Send this to your peers and encourage them to purchase a table.  We would hate for anyone to miss out!  Word of mouth for this event has already gotten us near 800 RSVPs, so we know with additional marketing & your support we can make this event very successful. Keep in mind that all profits for the event will be distributed back to you, the event partners, for scholarships that fit your organization’s needs.  Here are documents to use and share:

Sponsorship Packages

Sponsorship Contract

Save the Date Flyer

Speaker Flyer

Great Mike Rowe Articles and Other Content in Build Des Moines

Check out the latest issue of Build Des Moines – there are great articles and content to be viewed, most importantly excellent information on our Mike Rowe Event. Check it out by clicking here.

Here’s a Note That Came in About the Event…

This was sent in to our website as a note to Mr. Rowe:  Approximately 10 students from Burlington High School, Burlington, Iowa, will be attending “Iowa Skilled Trades” in Des Moines on September 28, 2017. We are very excited to hear the Governor Reynolds and Mr. Rowe’s message.

Burlington is an economically depressed old river town on the banks of the Mississippi in southeast Iowa. Our little city has a lot of poverty, areas of dilapidated housing, and very low property valuations. You need to know we aren’t complaining because we see it as an opportunity to do something about it.

The junior year phase of our Building Trades program began this year with a home remodel of a run down 1864 house that presents not a multitude of problems, but a house full of new options. Yes, it is a Dirty Job! Tons of trash, dusty horse hair plaster, and rotten flooring are only a few items on our list of things to do.

Our students will be subjected to all aspects of Construction Trades as this old house allows us to learn demo, wiring, plumbing, heating and cooling, insulation, flooring, windows, siding, drywall, trim, paint…you name it! Once the house is completed, an impoverished single parent, selected through a process, moves in for up to three years with stipulations, including pathways to breaking the cycle of generational poverty.

We have a great vision and plan, and are excited to share it with you. Mr. Rowe, you are a motivation for us, and thank you for helping people understand a four year college degree isn’t for everyone, and also how vital hard working skilled trades women and men are to our society. As we are in the beginning stages of the house remodel process and time is a restraint, our hope is by the time we attend your conference, we will have sent you the 10th Street House Remodel OPORD to help you better understand what we are trying to do and the true community based coalition we have built. We believe we are rebuilding the greater Burlington community one house and one family at a time.

Iowa vs. Iowa State BUILD PAC Tailgate

This Saturday, September 9, we will be tailgating at the Iowa vs. Iowa State football game in Ames.  It will be at Jack Trice Stadium in lot D4 from 9-11:00 a.m.  There will be a drawing for two sets of two tickets to sit in the Jack Trice Club for BUILD-PAC members.  For more information, email BUILD-PAC Trustee Rich Fitch or HBAI Executive Officer Jay Iverson.

There is public parking around the stadium on S 4th St. and S 16th St and University Blvd. The D 4 Lot is Northeast directly across the street from the Stadium we will be parked at the east end of that Lot plan to arrive early to get the best parking our tailgate starts at 9:00 a.m.

Member Advantage Discounts

Your 3-in-1 membership includes an exclusive program from the National Association of Home Builders (NAHB) called Member Advantage. This offers you ways to reduce expenses, increase efficiency, and maximize profits through discounts on products and services with leading, national companies. To learn more about these discounts and how to access the savings go to NAHB Member Discounts. Click here for an overview of all discounts.

Double Overtime Pay Threshold Struck Down

A federal judge has struck down the Obama administration’s overtime rule that would have doubled the salary threshold for workers to be able to receive overtime pay.

The Obama administration’s final rule that was set to take effect Dec. 1, 2016, raised the salary threshold for executive, administrative, or professional workers to receive overtime pay from $23,660 to $47,476.

Working with Congress and members of our business coalition, NAHB led the effort to mitigate the effects of the rule. Moreover, last year, NAHB joined other business groups in filing a lawsuit in federal court challenging the overtime rule. As a result of these efforts, the rule has not been enforced because a judge issued a preliminary injunction against it.

The Department of Labor filed an appeal of that preliminary injunction to the Fifth Circuit Court of Appeals, and that matter is still pending. At the same time, the district court refused to stay the case and on Aug. 31, issued a decision finding the Department of Labor exceeded its authority and the automatic update provision was unlawful. Accordingly, the court held the overtime rule is invalid.

The Trump administration has defended its legal authority to implement a new overtime requirement, but has not endorsed the Obama-era rule. Secretary of Labor Alexander Acosta testified at his Senate confirmation hearing that he would prefer a more modest salary threshold than previously proposed, one that is potentially tied to the rate of inflation.

In mid-July, the Department of Labor issued a request for information on the Obama administration’s overtime rule, and NAHB intends to submit comments independently, and as part of the Partnership to Protect Workplace Opportunity coalition.

Bigger Borrowing

After peaking at almost $375 billion in 2005, originations of home-equity lines of credit (HELOCs) plummeted to just $62.5 billion by 2010. Since then they have been steadily rising, and through 1H17 already total $84 billion, suggesting annual volume of close to $200 billion. Despite this rise, new originations are less than repayments. Bank holdings of HELOCs peaked in 2009 at $610 billion and now stand at $387 billion.  Elliot F. Eisenberg, Ph.D.

Average Time to Build a SF Home

The 2016 Survey of Construction (SOC) from the Census Bureau shows that the average completion time of a single-family house is around 7.5 months, which usually includes almost a month from authorization to start and another 6.5 months to finish the construction. The timeline from authorization to completion, however, which is not consistent across the nation, depends on the housing category, the geographic location, and metropolitan status.

Among all the single-family houses completed in 2016, houses built for sale took the shortest time, 7 months to completion after obtaining building permits, while houses built by owners required the longest time, 13 months. Homes built for rent took 10 months from permit to completion, and those built by hired contractors normally needed around 9 months. A large proportion of single-family homes built for sale and custom homes built by contractors on owners’ land began construction within the same month after obtaining building authorizations. However, homes built for rent and custom homes built by owners serving as general contractors had a one-month lag between obtaining permits and construction start in 2016.

 

Weekly Update: August 31, 2017

We had an excellent meeting with Congressman David Young last Thursday at the HBAI office.  It’s always great to cover a wide range of topics with him and he is highly supportive of our Federation and the industry.  From left to right – Dan Knoup, Rich Fitch, Keith Butz, Don Beal, LaDonna Gratias and Congressman David Young.

Q2’17 Rebate Claim Deadline Ends Tomorrow!

As a member, you can claim your rebates for any completed residential addresses from April 1 – June 30, 2017 that used any of the 50+ Manufacturer brands.  The deadline has been extended to tomorrow – Friday, September 1, 2017.  Check it out by clicking here.  It’s easy money and with no effort covers your Federation annual dues.

Interested in Volunteering?

We are starting to plan for 2018 already and we need you to be a part of our state organization.  If you’re interested in any capacity, please contact HBAI Executive Officer Jay Iverson.  It’s a great group, we have fun and are in the early stages of many awesome changes to our planning and service offerings.

IBS Registration August Discount Ends Today

The 2018 NAHB International Builders’ Show® returns to the Orange County Convention Center in Orlando, Fla., Jan. 9-11. IBS will again co-locate with the National Kitchen & Bath Association’s Kitchen & Bath Industry Show® for the fifth annual Design & Construction Week®. IBS registrants can take advantage of great August-only registration discounts.

Iowa vs. Iowa State BUILD PAC Tailgate

On Saturday, September 9, we will be tailgating at the Iowa vs. Iowa State football game in Ames.  It will be at Jack Trice Stadium in lot D4 from 9-11:00 a.m.  There will be a drawing for two sets of two tickets to sit in the Jack Trice Club for BUILD-PAC members.  For more information, email BUILD-PAC Trustee Rich Fitch or HBAI Executive Officer Jay Iverson.

Iowa Skilled Trades Hotel Block

If you’re planning to attend our Mike Rowe event September 28 and need a hotel room, we have a block at the Des Moines Marriott Downtown for $124 per night.  Here is the reservation link to make online reservations.  You must make your reservation by September 7 before the block is released.

Canadian Softwood Lumber Summit

NAHB CEO Jerry Howard (far right in photo) participated in a forum on Canadian softwood lumber last week at the Canadian embassy in Washington.  It included Canadian Ambassador David MacNaughton and special softwood lumber envoys from the Canadian provinces. Howard said that he can’t overstate the importance of solving the U.S.-Canadian softwood lumber dispute in which the U.S. Commerce Department has imposed duties averaging 26.75% on Canadian lumber shipments into the U.S. The tariffs are harming housing affordability and forcing builders to look overseas to Germany and Russia to meet demand. Howard added that it is important that Canadian provinces are working with NAHB to find an equitable long-term solution in lumber trade that provides a steady supply of lumber at a reasonable price.

Energy Efficiency Planning Meeting Last Week

Lots of people participated in a collaborative meeting last week to provide IPL with feedback. You may click here to find the presentation that was discussed and distributed by paper at the meeting. If you have any additional feedback for IPL, please provide a response by September 15, 2017.  It will continue to be refined and more information will follow in the future.

Almost 80,000 Starts Last Year Were Tear-Downs

NAHB economists estimate that about 10.2% of single-family starts in 2016 – roughly 79,300 homes – were tear-downs. That is significantly higher than the 55,200 tear-downs that NAHB reported in 2015, when they accounted for about 7.7% of single-family production.

DHS to Allow 15,000 Additional H-2B Guest Worker Visas

The Department of Homeland Security announced in July that it will allow an additional 15,000 H-2B temporary worker visas to be issued during this fiscal year, which ends Sept. 30. The H-2B program allows employers to hire temporary foreign workers for seasonal, non-agricultural positions. In past years, roughly half of the visas have gone to landscaping businesses.

New Start Ups Average $5k to Begin

Of 638,839 construction firms surveyed by the U.S. Census Bureau in its Annual Survey of Entrepreneurs (ASE), 20.1% report they raised less than $5,000 dollars to begin commercial activity.  The ASE is a relatively new information source released by the U.S. Census Bureau this year. It collects economic and demographic information on businesses and business ownership in all major industries, including construction. One of its advantages is that it provides statistics on finances and funding, like the start-up capital.

The ASE does not provide detail within the construction industry. Home builders and remodelers are lumped together with firms that build non-residential buildings, highways, and bridges; as well as with specialty trade contractors (roofers, electricians, drywall installers). As a previous study has shown, over two thirds of construction establishments are specialty trade contractors, which may help explain why a substantial percentage of construction firms require relatively little start-up capital.

The median amount of capital construction firms need to start their businesses is $33,529, which is $43,000 less than the median amount used by all industries, $77,227.  Exhibit 1 shows how, as the ranges of start-up capital increase, the percent of construction firms reporting steadily decreases, while the percentages of all industries are more evenly distributed.

Personal and family savings of the owner(s) of a business are by far the most common source of start-up capital for American firms. Exhibit 2 displays how these savings represent nearly two thirds of all start-up capital sources at 63.9%.

The sources of start-up capital for construction businesses are similar to the sources used by businesses in other industries, except for bank loans. The lower share of construction firms that use bank loans to start their businesses represents a possible barrier to entry. However, this discrepancy may be explained by the lower amount of start-up capital needed by many businesses in the construction industry. With a fifth of these firms raising less than $5,000 in start-up capital, bank loans may not be necessary if family and personal savings can cover the initial investment costs.

The contents of this post represent only a fraction of the data available in the 2014 Annual Survey of Entrepreneurs. For more information and statistics about construction businesses from the ASE, please read NAHB’s Special Study on their website HousingEconomics.com.

   Mike Farr (far right) is very generous in donating steak fry’s to auction off for our HBAI Educational Corporation.  Proceeds are used for scholarships to students entering the building trades.  Last Friday we were able to put one together for Hubbell Realty – somehow Mr. Farr managed to get Jeremey Frease (Cascade Manufacturing – orange) and Ben Richter (Beisser Lumber Company – blue) to cook the steaks and add cheese.  Sort of like a Tom Sawyer thing…