November 2022
Builder Confidence Declines for 10th Straight Month
In a further signal that rising interest rates and building material bottle- necks are weak- ening the housing market, builder sentiment fell for the 10th straight month in October and traffic of prospective buyers fell to its lowest level since 2012 (excluding the two-month period in the spring of 2020 at the beginning of the pandemic). Builder confidence in the market for newly built single-family homes dropped eight points in October to 38—half the level it was just six months ago—according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) released today. This is the lowest confidence reading since August 2012, with the exception of the onset of the pandemic in the spring of 2020. Derived from a monthly survey that NAHB has been conducting for more than 35 years, the NAHB/ Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.
Materials Prices See Slight Decline Led by a decline in softwood lumber and steel mill prices, overall building material prices fell in Sep- tember with the notable exception of ready-mix concrete, which continues to grow at a rapid clip. And while gypsum prices edged lower last month, they are up more than 20% over the past year. In tandem with a slowing housing market and economy, the prices of building materials decreased 0.3% in September (not seasonally adjusted) according to the latest Producer Price Index (PPI) report.
Builders' Show and DCW Just Keep Getting Better The opportunities for construction and design professionals continue to grow in conjunction with the 2023 Builders’ Show in Las Vegas with the addition of another co-dated wholesale buying event to Design & Construction Week (DCW). Las Vegas Market will co-date with DCW, which features the NAHB International Builders’ Show® (IBS) and the NKBA Kitchen & Bath Industry Show (KBIS). Las Vegas Market is the leading home furnishings and gift market in the western U.S. IBS takes place Jan. 31-Feb. 2, 2023. Register now. Newsletter Focuses on Workforce Development Is your association leading workforce development initiatives locally or planning for future events? Try the Workforce Development Champions Corner, a bi-monthly e-newsletter about promoting skilled trades. It provides workforce development advocates the latest resources, including marketing materials, activity ideas and notifications for future opportunities to connect with peers and share best practices. Complete the e-newsletter subscription form on nahb.org to subscribe.
New Independent Contractor Rule On Oct. 13, the U.S. Department of Labor (DOL) issued a proposed rule that will change the way DOL determines whether workers should be classified as employees or as independent contractors under the Fair Labor Standards Act (FLSA). If finalized, the proposal will replace the current standard, one that NAHB supports because it gives regulated employers and small businesses, including home builders and specialty trade contractors, a clearer and simpler federal test for determining worker status.
NAHB Webinars Look at IRA Impacts The Inflation Reduction Act (IRA) has spurred many questions within the home-building industry regarding the number of new energy tax incentives and updates to many tax provisions. NAHB has conducted two webinars about it. One looked broadly at how the IRA may affect housing. The second webinar focused on the IRA’s energy tax incentives. Watch replays of both webinars. home-building industry regarding the number of new energy tax incentives and updates to the many long-standing tax provisions it has created. NAHB has conducted two webinars to inform members of potential impacts of the bill. One webinar looked broadly at the IRA and the provisions that may affect housing. The second webinar focused on the IRA’s energy tax incentives. Replays of both webinars are available on nahb.org..
Builder Businesses Grew Significantly in 2021
Parents Like Skills Training The Madison Area Builders Association worked with the Boys & Girls Clubs of Dane County to provide a summer program full of engaging skilled trades activities for local students. Nearly 100 elementary, middle and high school students participated in job site tours, building projects and hands-on activities. Parents also expressed enthusiasm for the well-rounded program. Many parents told the BGC that they want their child to participate in skilled trades activities next summer. To learn more about NAHB's partnership with the Boys & Girls Clubs, visit the partnership page on nahb.org.
The business of the typical NAHB builder grew significantly between 2020 and 2021, according to results from NAHB's latest member census. The 2021 NAHB census shows that the median gross revenue of an NAHB builder in 2021 was an all-time high of $3.3 million, up 26.9% from the previous year. NAHB reinstated its member census during the industry-wide downturn of 2008, when median annual revenue of builder members was only around $1 million. Although their median revenue has increased recently, most NAHB builders remain relatively small businesses by conventional standards. According to the 2021 NAHB census: 14% of NAHB's builder members reported a dollar volume of less than $500,000, 13% reported between $500,000 and $999,999, 38% reported between $1 million and $4.9 million, 15% reported between $5 million and $9.9 million, 6% reported between $10 million and $14.9 million, and 13% reported $15 million or more. In comparison, the Small Business Administration's size standards classify most types of construction businesses as small if they have average annual receipts of less than $39.5 million.
Remodeling Index Sees Decline The National Association of Home Builders (NAHB) released its NAHB/Westlake Royal Remodeling Market Index (RMI) for the third quarter, posting a reading of 77, declining 10 points compared to the third quarter of 2021. An index number above 50 indicates that a higher share of remodelers view conditions as good than poor. Twenty-three percent of remodelers said the market had gotten worse in the third quarter of 2022, compared to only 10% who said it had gotten better. After a decline in 2022, NAHB expects a small increase in remodeling activity in 2023.
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If you are interested in serving on the Board and/or Becoming an Office please contact KT at 561-228-6137 or KT@GCBAFlorida.com
2022 GCBA Officers and Directors OFFICERS PRESIDENT Rafael Roca, DR Horton 1ST VP Michael Nunziata, 13th Floor Homes 2ND VP Frank Coppola, Coppola Brothers LLC ASSOCIATE VP Tony Macaluso, Universal Engineering Sciences VP FINANCE Steve Karp, Melamed & Karp PA IMMEDIATE PAST PRESIDENT Fred Pfister, Toll Brothers DIRECTORS Mark Richards, Stock Custom Homes Herb Tremble, Master Contractors & Subcontractors Assoc. of FL. Karl Albertson, DR Horton Mark Welsh, Lennar Jon Long, Ryan Homes Steve Dassa, Mattamy Homes Ethan Nelson, UMI Stone Rick Baxter, Localiq (Palm Beach Post) Mark Anderson, US Bank Executive Officer: KT Catlin Design: Gregory J. Del Deo
Calendar of Events Check GCBA's Wednesday Mid-Week eMail for current Location & Registration Information. Masks are recommended if unvaccinated for all indoor events.
Wednesday, November 16, 2022 2nd Annual Chili Cook Off 11/8/2022 - 11/11/2022 2022 FHBA Fall Conference Friday, December 2, 2022 Coffee & Conversation Saturday, December 10, 2022 Kids Cancer Foundation's Breakfast with Santa Tuesday, December 13, 2022 Hard Hat Happy Hour & GCBA PAC Dinner Friday, January 6, 2023 Coffee & Conversation Thursday, January 19, 2023 Awards & Installation of 2023 Officers Watch for 2023 Events to be posted to be posted to our website soon!
Leadership List
Strategies to Recession-Proof Your Business
As many builders learned during the previous downturn, weathering a recession often requires embracing lean business processes. But finding ways to deliver value on essential services while eliminating waste is easier said than done. NAHB members Robert Carroll, owner of Carroll Construction, and Jake Harris, CEO of BuildWallet, shared some lean-business strategies during a recent presentation as part of NAHB’s Young Professionals Week. The webinar covered a wide range of stra- tegies businesses can use during uncertain financial times. "Recessions are pivotal times to focus on business fundamentals, particularly during these periods of high inflation and rising interest rates," Carroll said. "Businesses that are prepared will have the best chance of succeeding and maximizing opportunities to grow." One of the methods discussed during the presentation focused on member-to- member collaboration. "What I love about the NAHB Federation is the collective knowledge that is shared among the membership," Harris said. "This is a community full of proven, talented professionals who can offer real-world solutions. The members who take advantage of that can drive real value for their businesses."
GCBA 2022 TOP RECRUITERS Michele Mockenhaupt – 16 KT Catlin – 11 Rafael Roca – 9 Michael Nunziata – 3 S. Robert August – 4 Ray Puzitiello – 1 Beth Cohen – 1 Kate Nordstrom – 1 Jay Huebner – 1 Herb Tremble – 1 Jamil Mikati – 1 Kathy Macaluso – 1 Michael Brown – 1 Fred Pfister – 1 Jamie Janson – 1 Peggy West – 1 Gary Brown – 1 Tom Corona – 2 Ron Yuter – 1 Andrea Flores – 1 Ron Ellish – 1 Cynthia DeShields – 1 Susan Burns – 1 Ethan Nelson – 1 GCBA SPIKE CLUB Members reach the GCBA Spike Club once you recruit 5 or more members in the current year. GCBA Spike Club Members will be recognized at Board Meetings & more!
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The deadline to update your membership information for the 2023 Membership Directory is November 30th. To check and update your profile use your Member hub.
ASSOCIATES Archetype Homes LLC Erik Scheuermann Sales@Archetype.Homes 1-800-961-8047 Spike: Michele Mockenhaupt Jade Communications Inc Serge Leblanc sergel@jade-com.com 561-239-8206 Spike: Michele Mockenhaupt Superstein PA Drew Superstein drew@supersteincpa.com 954-602-9100 Spike: Michael Dill If you sponsored one of these individuals please let KT know! We will be having year long contests and recognition for Recruiting & Retention!
mEMBERSHIP NEWS
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GCBA Announces Officers AND Directors for 2023 The following individuals were elected and appointed to 2023 GCBA Executive Officers and Board of Directors at the October 12, 2022 Annual Meeting of the members... Executive OFFICERS PRESIDENT Frank R Coppola lll, Coppola Brothers 1ST VP Michael Nunziata, 13th Floor Homes 2ND VP Jon Long, Ryan Homes VP FINANCE Steve Karp, Melamed & Karp PA ASSOCIATE VP Anthony Macaluso, Universal Engineering Sciences 2nd Assoc. VP Ethan Nelson, U.M.I. IMMEDIATE PAST PRESIDENT Rafael Roca, D.R. Horton Homes Board of Directors Builder Members Mark Richards, Stock Custom Homes Mark Kruger, Hierromat Development Mark Welsh, Lennar Homes Herb Tremble, Master Contractor and Subcontractor Association of Florida Matt Ellish, Ellish Custom Homes Michelle Mockenhaupt, D.R. Horton Associate Members Mark Anderson, U.S. Bank Tom Corona, Swellfi, LLC Sam Yates, Yates Associates Rick Baxter, Palm Beach Post At Large Andy Wyman, Wyman and Associate Interested in being involved? Call the GCBA Office for information on committee positions and 2024 Board Positions.
When remodeling or razing a property remember many items can be recycled. Habitat Restore sells cabinits, appliances and more. Before you dump - call Habitat.
FHBA Leaders Attend NAHB Fall Leadership Meeting Last week, NAHB members and executive officers met in Kansas City, Missouri for NAHB’s 2022 Fall Leadership meetings.The Federal Advocacy program discussions were enlightening, and the following was highlighted: Department of Energy (DEO) SEER Rating: Effective January 1, 2023, DEO is requiring a SEER Rating of 15 at the time of installation (up from 14). This would apply even if the building permit was issued prior to January 1,2023. Some Florida jurisdictions are posturing to require re-permitting for construction permits issued prior to January 1, 2023. NAHB is asking for the effective date to be delayed until July 1, 2023. Meanwhile, FHBA joined other groups asking the State DBPR and the Governor’s Office for interpretive relief. The state’s interpretive flexibility is likely limited as this is a federal rule, but they are researching possible solutions. Stay tuned to FHBA publications for further updates on this issue. “Latest Published Editions” Definition”: In 2018, NAHB got involved in the Disaster Recovery Reform Act (DRRA) which was passed through the Federal Aviation Administration (FAA) Reauthorization that year. DRRA made changes to the Stafford Act—which is the statutory authority for most of the Federal disaster response activities—regarding Pre-disaster Hazard Mitigation Funds. These funds are used for a number of things including elevation of properties, retrofitting existing buildings, stormwater management, and post-disaster code enforcement activities. The original language in DRRA required that in order for jurisdictions to qualify for these funds, FEMA would need to consider whether the state or local government has facilitated the adoption and enforcement of the latest published editions of relevant consensus-based codes that incorporate the latest hazard-resistant designs. This language was not workable for state and local governments and subsequently, home builders, as it did not allow for a robust code adoption process with the ability to amend the code to fulfill the needs of the local jurisdiction. In response to this language, NAHB negotiated a compromise to define “latest published editions” to mean the two most recently published editions of the code and preserve the ability to amend the code. Part of the compromise included a sunset on this definition so that eventually “latest published editions” would not be further defined. The is set for October of 2023. If the sunset is not repealed, FEMA would be free to define Latest Published Edition which could conflict with Florida’s deliberative process. To remedy this looming sunset, NAHB has been working with the House and Senate to find a vehicle to remove this sunset and to further cement our negotiated definition of “latest published editions” NAHB Build to Rent Policy: A resolution was adopted granting staff the ability to engage on the Build to Rent issues being discussed inside the beltway. NAHB is a strong supporter of private property rights and, at times with this issue, staff must have clear policy that allows them to engage on an issue where certain interest seek to over regulate the market. Additional Highlights Included: NAHB urges White House to act on transformer shortages. Lumber and steel prices down; concrete and gypsum remain high. New rules proposed for independent contractor status. These same leaders and staff turn their attention back to FHBA for the Fall Leadership Conference set to kick off next week. During the meeting a budget will be adopted, the 2023 Legislative Priorities will be solidified, three new members will be inducted into the Florida Housing Hall of Fame, and a new President and 2nd Vice President will be installed.
Ready to start shopping? Have questions? Need help? Visit the FHBA Private Health Exchangewebsite to: Shop the best pricing on plans from industry-leading carriers Use the live chat tool Schedule an appointment to have a licensed benefits counselor assess your needs, discuss your options, and determine potential savings from subsidies
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