February 2017
Home Show 2017 – page 2 Kansas Legislative Day – page 3 NAHB’s 2017 Leadership – page 4
Economic Forecast for 2017: Positive Growth Expected January 25 was a cold morning… but a tasty breakfast and intellectually stimulating conversation helped warm things up at KCHBA’s annual Economic Forecast Breakfast. Robert Dietz, chief economist and senior vice president of economics and housing policy for NAHB was first to present to an audience of more than 200 attendees. Chris Kuehl, managing director of Armada Corporate Intelligence followed up with his assessment of the top developments in 2016 and his outlook for 2017. Dietz reported that the general theme of the NAHB forecast is that there will be continued growth in home building, but the rate of increase has been reduced from earlier forecasted growth due to supply side limitations. Specifically, the limitations are the lack of the 3 L’s: lots, labor and lending. Labor, in particular, is reducing builder activity as the labor shortage is worse now than during the peak of the boom.
HBA’s Lookback Continues – page 16
Dietz predicts an increase in the demand for single family housing. Part of this is result of the continual economic growth during the past four years and the fact
that wages have begun to rise. The older members of the millennial generation have slowly started to move into the housing market and Generation X is now hitting their home buying peak. Builders will be faced with an increase in building material prices, according to NAHB’s forecast. Lumber and concrete prices will continue to rise along with a slow increase in the price of gypsum. Dietz expects the results of this presidential election to impact the economy in various ways, some of which include higher spending—resulting in a larger deficit and increased interest rates on mortgage loans. Kuehl expanded on the lack of labor availability and the consistent decrease in labor force participation. He stated
that there are shortages in construction, manufacturing and other fields summing up with: “we don’t need to create jobs, we need to fill the ones we have.” Filling these jobs will require a new direction in education for many schools and students—currently only a small percentage of secondary schools teach industrial art coursework.
www.kchba.org | Volume 23, No. 2 | February 2017
Tom Woods Receives Lifetime Honorary Membership
February Calendar Feb. 9 Associate Council Meeting Feb. 9 Sales & Marketing Council Meeting Feb. 15 Missouri Legislative Day Feb. 16 Lunch, Learn & Earn Credit Tom Woods
Feb. 21 Board of Directors Meeting
Home Show 2017: All Things Kansas City!
Feb. 22 Missouri North Area Council Meeting
Bartle Hall will soon be filled with the activity of landscapers and vendors moving into the hall for the 2017 Greater Kansas City Home Show. Featuring Jonathan and Drew Scott as Saturday’s headliners, the show opens on March 17 and runs through March 19. The ever popular central square area (Kansas City Power & Light’s “Energy Central”) will feature unique homes in all shapes and sizes: a decked-out Airstream camper, a specially decorated glamping tent, a tiny home and a container home. Each of these “residences” will be surrounded by themed landscaping, with interiors showcasing the most current decorating trends.
For more information or to register for any event, go to www.kchba.org or call 816-942-8800
STYLE THAT
WORKS
LENEXA 9301 ROSEHILL ROAD (913) 752–5660
N. KANSAS CITY 101 NE 91ST STREET (816) 468–8344
FERGUSON.COM/SHOWROOMS
KCFDA .COM
At its January meeting, the HBA Board of Directors voted to give Tom Woods a lifetime honorary membership for his dedication, service and commitment to the home-building industry, the KCHBA and NAHB. This is only the second honorary membership to be given to a member. Congratulations, Tom!
©2015 Ferguson Enterprises, Inc. 1215 73008
2
The 2017 home show is a celebration of Kansas City. Jennifer Bertrand, local designer and winner of HGTV’s Design Star, has been instrumental in developing the look and feel of this year’s event. Her lively design sense will guide the structures and landscapes in the central square and she has lots of surprises planned for
home show visitors. The Pop-Up Market, with stalls built by Sun Lumber, will offer wares from local companies. Food will be available to home show visitors from Kansas City food trucks parked on
the show floor. There will even be a special t-shirt available with a Kansas City home builder twist on the iconic Bartle Hall Sky Stations. Home show tickets will be available online beginning Feb. 13 at 10 a.m. and at Price Chopper stores. The KCHBA appreciates the sponsors who make this event possible: Alenco (ticket sponsor), Henges Insulation & Fireplace (lanyard sponsor), Kansas City Power & Light (central square sponsor), and Sun Lumber (pop-up market sponsor).
February 2017 | Volume 23, No. 2 | www.kchba.org
Kansas Legislative Day Unlimited Possibilities.
Custom colors. Unique shapes. Dynamic sizes. Smarter Windows for Smarter Homes ® VeriLock integrated security sensors Andersen® E-Series windows and patio doors featuring VeriLock® sensors can now be part of today’s connected homes. These patented, wireless sensors are the only sensors built directly into your windows and doors. Plus, they not only tell you if a window or patio door is open, but also if it’s unlocked.* No other sensors can do that.
andersenwindows.com/verilock *When properly configured and maintained with a professionally installed security system compatible with Honeywell® transmitters and/or self-monitoring system. See your dealer for more information. Honeywell” is a registered trademark of Honeywell International, Inc. “Andersen” and all other marks where denoted are trademarks of Andersen Corporation and its subsidiary. ©2016 Andersen Corporation. All rights reserved. MS1601_0102
Belton 617 N. Scott, Belton, MO (816) 331-2211 Excelsior Springs 24805 NE 69 Hwy, Excelsior Springs, MO (816) 628-6025
Bill Arnold, David Elliott, Rep. Erin Davis, Dee Grisamore, George Schluter and Harold Phelps On Wednesday, January 25, KCHBA representatives and members of the Kansas Building Industry Association (KBIA) gathered in Topeka for Kansas Legislative Day. The afternoon was spent visiting legislators to discuss issues of importance to the housing industry. Notable meetings included Speaker of the House Ron Ryckman, Senator Barbara Bollier, Senator Julia Lynn, Representative Stephanie Clayton, and Representative Erin Davis. The HBA made a point to meet with several newly elected legislators such as Representative Tom Cox and Representative Joy Koesten. The HBA’s immediate priority in the Kansas Legislature is protecting the sales tax exemption on labor as it relates to new construction and residential remodeling. Any addition of a sales tax on labor services would dramatically increase the cost of building a new home, make it more difficult to qualify for
owenlumber.com
mortgage financing, curtail new growth, and increase the risk of losing business across the state line.
Lee’s Summit 312 SE Main, Lee’s Summit, MO (816) 524-3522
ARE YOU READY TO TAKE YOUR BUSINESS TO THE NEXT LEVEL?
The ability of HBA members to meet with legislators face to face presented a valuable opportunity to discuss the harmful effect that taxing labor would have on Kansas business owners on a personal level. Other topics of discussion included the ongoing labor shortage, the need to fully fund technical education and apprenticeship programs, and curbing unnecessary regulations.
We have the communication & marketing solutions to help ONLINE • MAGAZINE • NEWSPAPER • EVENTS
In the evening, members attended a reception held by KBIA that was open to all Kansas legislators. There was a strong showing of Senators and Representatives, giving members the chance to continue to build relationships with elected officials who are regularly making decisions that impact the housing industry.
For information about promoting your business or new home community directly to new home buyers in your geographic area contact:
Jared Webb at 816-234-4734 or jwebb@kcstar.com 3
www.kchba.org | Volume 23, No. 2 | February 2017
Nation’s Home Builders Elect Leadership for 2017 The NAHB Board of Directors elected four senior officers to top leadership positions within the federation during the association’s International Builders’ Show in Orlando, Fla.
®
BUILDING COMMUNITY
PACIFIC MUTUAL DOOR AND WINDOW High-quality millwork lives here
Also moving up on the association’s leadership ladder during NAHB’s Orlando board meeting was Randy Noel, a Louisiana-based custom home builder with more than 30 years of experience in the home building industry. He was
NASB is one of the largest construction lenders in the Kansas City area. Visit nasb.com/construction or call a Construction Lending Specialist at 866-316-4508 to Discover NASB today.
816.531.0161 pacificmutualdoor.com S I N C E
ing affordability and partner with the Trump administration and new Congress to promote policies that encourage homeownership and affordable rental opportunities for all Americans,” said MacDonald.
1 9 1 2
nasb.com
Granger MacDonald With more than 700 affiliated state and local home builders associations and more than 140,000 members across the country, NAHB represents the interests of the nation’s housing professionals through advocacy, education and research. Taking the helm as NAHB’s Chairman of the Board of Directors this year is Granger MacDonald, a Kerrville, Texas-based builder and developer with 40 years of experience in the home building industry. MacDonald is chairman and CEO of the MacDonald Companies, a diverse development, construction, and property management enterprise with nearly 50 neighborhoods completed and managed throughout Texas.
We provide exceptional interior comfort and air quality for our client’s new homes and remodels. For over 13 years, we have been caring for the indoor needs of countless homeowners. Our service-oriented team delivers high quality products, at exceptional value.
913-441-7807 www.mikebryanthvac.com 4
“We will work this year to prevent expensive, pointless regulations from impeding home building and hous-
Randy Noel elected as First Vice Chairman of the Board. Noel is president of Reve Inc., a custom home building firm that has developed more than 1,000 custom homes in the greater New Orleans area. Greg Ugalde, a Connecticut builder and developer with more than 25 years of experience in the home building industry, was elected as Second Vice Chairman of the Board. Ugalde is president and chief legal officer of Torrington-based T&M Building Co., Inc., one of the largest home builders in the state. Continued on page 5
February 2017 | Volume 23, No. 2 | www.kchba.org
Continued from page 4 Dean Mon joined the NAHB leadership ladder with his election as Third Vice Chairman of the Board. He is president of the D.R. Mon Group Inc., which specializes in the development and construction of classic urban living projects throughout New Jersey. Since 1985, the company has created communities throughout Morris, Hunterdon, Union, Hudson and Monmouth counties. 2016 NAHB Chairman Ed Brady, from Bloomington, Ill., remains on the leadership ladder as Immediate Past Chairman. Brady is president of Brady Homes, a company founded in 1962 by his father, William Brady Sr. One of the longest standing home building firms in central Illinois, Brady Homes has developed 20 residential communities throughout the state, building more than 1,800 single-family homes, 2,000 apartment units and more than 100,000 square feet of light commercial property. Rounding out the association’s leader-
Dedicated to helping you put buyers into homes
P U
Your goal is to turn buyers into homeowners. Our goal is to provide financing to make that happen. So no matter what your client’s home buying goals, we can help you by providing financing options to meet nearly any homebuyer need.
Contact your Wells Fargo Home Mortgage branch today. Northland Office: 816-505-4110 Lee’s Summit Office: 816-329-2109 Overland Park Office: 913-319-7970 Greg Ugalde
KC Bank Office: 913-234-7703
ship is NAHB Chief Executive Officer Jerry Howard, from Washington, D.C. Howard heads up a professional staff of more than 240 working out of the National Housing Center in Washington. He has served as the association’s CEO/ EVP since February 2001. Previously, Howard was NAHB’s chief tax counsel.
Renovation Office: 913-234-2925
Buyer ConnectionsSM – connects buyers and sellers not already working with a real estate professional to professionals in their local market.
Information is accurate as of date of printing and is subject to change without notice. Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. © 2014 Wells Fargo Bank, N.A. All rights reserved. NMLSR ID 399801. AS1055681 Expires 5/2015
This month’s pro tip is:
Gen X - Most Likely to Buy a New Home At January’s Economic Forecast Breakfast, NAHB Economist Robert Dietz stated that Gen X (born 19651979) is the generation that is buying most of the new homes. Although they are the smallest of the generations, they have children at home and are at the peak of their earning years. Thus, Gen X-ers are our home buyers. And what are these potential customers looking for? According to NAHB’s Consumer Preference Survey, 72% of these buyers prefer a single-family detached home, with 65% hoping to find that home in the suburbs. Some of the details they’d like are: washer/dryer on the first floor, hardwood on the living spaces
T 4
on the main floor and open kitchen/ dining room plan. In other words, their home preferences are not too much different from those of older generations.
5
www.kchba.org | Volume 23, No. 2 | February 2017
Top Design Trends for 2017 Curious about the latest home design trends? At the start of each year, the Best in American Living Awards (BALA) recognizes dozens of new projects from this past year that featured the most innovative layouts and eye-catching design elements.
year’s BALA winners included several homes with natural wood ceilings which add warmth and can be used in either traditional or more contemporary designs. Shiplap inside and out. Horizontal shiplap – or long, overlapping panels of wood – is an increasingly popular choice
Wood ceiling in a Minneapolis Artisan Tour home Among a wide variety of award-winning for exteriors and is also featured in enhomes, several design trends are evident tryways, stairwells and living rooms. and will be sure to gain the attention of Board and batten. Many BALA winthose who might soon be buying, selling ners used this type of wainscoting either or remodeling a home. Some of these as exterior siding or to add a classic trends include: touch to today’s contemporary interiors. Modern farmhouse. Demand continues to rise for farmhouse sinks, repurposed wood siding for interior design details and barn doors customized for a more contemporary feel that incorporates glass, white tints and metal hardware. Natural wood beams. From remodels to new homes, wood beams left in their original state add a natural touch and create a focal point in interiors. Also, this 6
Some designs featured a unique spin by adjusting the width of the boards to create a more customized feel. Repurposed space. Designers are increasingly utilizing the space under staircases for more than just storage. These areas are great for installing bookshelves, displaying art or creating a nook for pets. One BALA winner even included an entire bar under the living room stairs. Continued on page 7
February 2017 | Volume 23, No. 2 | www.kchba.org
THE
Little Agency Roars!
THAT
Fasone &partners inc. Advertising | MArketing | Pr
Make your
Wine storage featured at the IBS New American Home
business
Continued from page 6 Prominent wine storage. Many new kitchens today include floor-to-ceiling wine storage with customized wine racks, glass doors and display lighting.
ROAR!
Contact Karol Angotti or Michal Fasone 816.753.7272 karol@fasonepartners.com or mj@fasonepartners.com
White on white. A long-standing trend remains intact, as many BALA winners featured a clean combo of white on white, most notably in kitchens. Big showers and tubs. Showers keep getting bigger and free-standing tubs have become increasingly luxurious. Walk-in showers with wall-to-wall glass are the most sought after. Metal roofs. A large number of new custom homes in regions across the country are favoring metal roofs. The trend isn’t solely among modern homes, but traditional homes as well.
Partners with HBA since 2010
A DYKE INDUSTRIES COMPANY
816-483-2550 morgan-wightman.com
Morgan-Wightman Supply Company is a proud supplier of JELD-WEN ® windows and doors. © 2017 JELD-WEN, Inc.
Fasonepartners.com 7
www.kchba.org | Volume 23, No. 2 | February 2017
It’s a Wrap: Home Tech and Energy Hit Big at 2017 IBS questions as builders continue formulating ideas for where their businesses are going. There are a lot more ‘meat-and-potatoes people’ here this year.” Ed Westlove, Florida territory manager for Lennox heating and air conditioning systems
The throngs were thick and the booths were bustling on the exhibit hall floor when NAHB returned to Orlando, Fla., for the NAHB International Builders’ Show (IBS) Jan. 10-12. Exhibit space was expanded this year to 569,000 square feet—nearly 20% larger than last year—to accommodate a growing
Valuable Vendor Demonstrations — “The show has changed a lot from when I first started coming 25 years ago, and especially in recent years. The self-promotion has diminished, and now, it’s very focused on just helping [the attendees] improve their businesses. For me, the most valuable part was getting to meet with many of the vendors that we currently work with. It’s been a great way for me to stay informed on what’s new across several different areas of the business.” James Kiefer, vice presi-
force for this event,” said Geoff Cassidy, NAHB vice president of exhibitions and meetings. “The exhibits were tremendous, and as our already-strong education program continues to expand, we saw many more builders take advantage of some great sessions.” About 80,000 home builders, remodelers, developers, designers and their trade partners networked with one another and witnessed countless demonstrations from leading suppliers during a show that spanned throughout the Orange County Convention Center.
dent of engineering with Traditions Building & Development Group in Cincinnati, Ohio Insightful Education Sessions — “IBS keeps giving us better and better info every year we come. We bring our whole team and it’s helped us find ways to adjust to [the shortage of] labor and how to work more efficiently. The education sessions gave us a long list of approaches and techniques that we aren’t currently doing, but can and should start doing right away—particularly how we can better manage our finances and our clients’ expectations.” Mike Stevens, president of Mike Stevens Homes in Knoxville, Tenn. Great Weather — “We love the fact that IBS and KBIS are together, and Orlando is a great spot for this.” (A chilly start with overcast skies on Tuesday quickly gave way to warmer temps and bright Florida sunshine by the Show’s close on Thursday afternoon.) Larry Costello, PR director for Kenmore, part of Sears Holdings Next year, NAHB will return to Orlando for IBS 2018 Jan 9-11. We look forward to seeing everyone there!
Here’s what a handful of exhibitors and attendees had to say about this year’s Show:
NAHB Past Chairmen Ed Brady and Tom Woods number of exhibitors, which totaled more than 1,500 on the show floor and in the outdoor exhibition areas. “The home building industry turned out in
Solid Foot Traffic —“The traffic has been really, really good. It’s very positive. There is a lot of optimism. People have calmed down after the election.” Lance Premeau, market intelligence manager for window manufacturer Kolbe Big Demand for Tech — “Builders are really interested in home automation and energy efficiency. Everyone wants to know how to reduce costs for their businesses as well as for their customers. We’re getting lots of
The Pfeifer Homes team enjoyed the KCHBA Hospitality evening at IBS 8
February 2017 | Volume 23, No. 2 | www.kchba.org
New MGE Hotline As MGE works to streamline processes, please note the new Builder Hotline 816-969-2231. This number rings directly to the Workload Planning Team who may assist with NEW Service Lines and Meter Sets (once city inspection is complete). Please contact Christy Meers direct for MAIN Extensions or any other needs. Christy’s cell number is 816-399-9401 or email her at Christy.Meers@spireenergy.com.
Step Up to Higher Profits. Welcome, Taylor! As many of you may know, HBA staff member Tricia French is on maternity leave. While she is away, Taylor Pond has joined the staff as membership and events support. Taylor will be handling registration for events and supporting the staff with other projects. Feel free to stop by and introduce yourself!
Construction Plus Financing Contact us today to learn more about our one-time close loan solution that saves you time and money.
Thanks to These HBA 2017 Sponsors PLATINUM SPONSORS
Bank of Blue Valley Kansas City Star Media Company Mike Bryant Heating & Cooling
Star Companies, Inc. Stewart Title Wells Fargo Home Mortgage
(816) 245-4160 • www.FFBKC.com/builders
GOLD SPONSORS
Bovard Insurance Group Capitol Federal Fasone & Partners Ferguson Enterprises First Federal Bank K&E Flatwork Kansas Gas Service Kansas Granite Mart Kenny’s Tile Laclede Gas
PROMISE
McCray Lumber Northcraft Flooring & Design Owen Lumber Phelps Engineering ProBuild Rew Materials Sun Lumber United Heating, Cooling & Plumbing
Bank of Blue Valley promises a partner, not just a bank.
SILVER SPONSORS Pacific Mutual Door Henges Insulation & Fireplace Shamrock Cabinet Morgan Wightman Supply North American Savings Bank BRONZE SPONSORS Commerce Bank Complete Home Concepts CrossFirst Bank Hermes Landscaping
Kansas City Title Locks & Pulls Pella Products of Kansas City ProSource
COMMUNITY PHILANTHROPHY ENTREPRENEURSHIP
Raynor Garage Door Co., Inc ReeceNichols Wilson Lighting
See how we can support your growing business today! www.bankbv.com | 913.338.1000 9
www.kchba.org | Volume 23, No. 2 | February 2017
Who is (Not) in the Labor Force The number of people not in the labor force has been growing. As of December 2016, 95.1 million people, aged 16 or older, were not in the labor force, according to data from the Bureau of Labor Statistics (BLS). An aging population is responsible for this growth, but what are the other reasons individuals cite for not being in the workforce? And how many of these people might return to the labor force? These are important questions given ongoing labor access issues in the construction sector. Let’s examine data from the 2016 Current Population Survey (CPS) and the Annual Social and Economic Supplement (ASEC) to seek answers. It should be noted that the data used in this article are limited to people
who were 16 years and older and neither worked nor looked for a job during 2015. (These numbers are different from
classified as “not in the labor force.”3) In the CPS and ASEC data, the respondents were asked the main reason for not working. The reasons included: ill or disabled, retired, taking care of home or family, going to school, could not find work and other. Among the 87.3 million people who were not in the labor force in 2015, 35 million (40%) were men and 52.3 million (60%) were women. And among all age groups, about 42% of individuals not in the labor force were aged 65 years old and over, 15% of them were between the ages of
the estimates from the BLS noted above. For the BLS numbers, anyone who does not qualify for the civilian labor force is
COMPANIES, INC DRYWALL
INSULATION
We’re Your Local Certif ied Energy Experts. Star Companies is proud to o be part of an elite group of Certified Energy Experts® chosen by Owens Corning.
What does that mean for you? • HIGHLY TRAINED INSTALLERS • EXCLUSIVE WARRANTY* • PREMIER PRODUCTS
• OUTSTANDING SERVICE
See why Kansas City’s finest builders have been trusting Star for over 30 years!
CALL TODAY FOR A FREE ESTIMATE! *See actual warranty for complete details, limitations and requirements. Ten (10) years from date of installation by an Owens CorningTM Certified Energy Expert®.THE PINK PANTHER™ & ©1964–2016 Metro-Goldwyn-Mayer Studios Inc. All Rights Reserved. The color PINK is a registered trademark of Owens Corning. Owens Corning Insulating Systems, LLC is a manufacturer of durable, high-quality fiberglass products and does not sell or endorse other insulation industry products.
8320 WESTRIDGE | RAYTOWN, MO 64138 | STARCOMPANIESKC.COM | (816) 353-2160 10
55 and 64, 25% of them were between the ages of 25 and 54, and the remaining 19% were people 24 years old or less. Intuitively, people aged 65 years and over had the largest share within the people who were not in the labor force in 2015. Building on the age data, about 45% of people reported retirement as the main reason for not working, which is close to the 42% of the not-in-labor-force population who were 65 years old and over. If the 45% “retired workforce” (people not in the workforce due to the self-reported reason of retirement) are further divided by age, 83% were 65 years old and over. Overall, about 37% of the notin-labor-force population was due to the self-reported reason of retirement and aged 65 year old and over. Persons in Continued on page 11
February 2017 | Volume 23, No. 2 | www.kchba.org
Continued from page 10 this 37% share are unlikely to return to the labor force.
labor force and aged 16 to 64 may be recruitable. The 25% who cited taking care of home or family were 91% women and include a fair number of stay-at-home moms. Only 9.2% of the construction labor force is female. This suggests that the construction industry must improve
Among the people who were between the ages of 16 and 64, the largest share, 31%, reported going to school as the main reason for not working in 2015. Another 26% cited being Number of People Not In Labor Force ill or disabled, followed by 25% who were taking care of home or family, 13% who were retired, and 5% who were unable to find work and other reasons. For those citing school, 85% were aged between 16 and 24. Overall, about 15% of the not-in-labor-force population was due to the self-reported reason of going to school and aged between 16 and 24. This group of people is likely to enter the labor force, although younger individuals will in turn replace them at schools. Thus, based on the CPS and ASEC data, only a small proportion of the remaining population reported the main reasons for not working were that they could not find work and other reasons. These numbers present challenges, and opportunities, for growing the labor force to promote construction employment. The 5% of individuals not in the
ONE Closing • ONE Rate • ONE Loan ONE place to call HOME
Capitol Federal’s Construction-To-Permanent Loan The financing your client deserves from a leading residential lender. Building True Blue® relationships for over 120 years! capfed.com
913-381-5400 or 913-652-2541
its recruitment of women in the future, or recruit more successfully from other labor market sectors. Regardless, the construction labor force is aging. The industry must recruit the next generation of workers as industry
Build for Comfort. Build with Natural Gas. Natural gas is efficient, affordable, reliable and proven to sell homes faster. With MGE's new rebate programs, it's easier than ever for builders to upgrade to high efficiency natural gas appliances.
Get paid to make the upgrade.
activity grows in the years ahead, given growth in population not in the labor force. Eye on Housing, 1/20/17
SaveWithNaturalGas.com/MGE/Builder 11
www.kchba.org | Volume 23, No. 2 | February 2017
Member Anniversaries
6950 Squibb Road, Ste 500
6950 Squibb Road, Ste 500 Mission, KS 66202 Mission, KS 66202 913-529-1130 913-529-1130 MID-CONTINENT GROUP
Multiple Warranty Options
General Liability Builders Risk Auto
Bonds
Worker’s Compensation Health/Life
Multiple Warranty Options
FREE subcontractor insurance certificate forRisk our clients General Liability review service Builders Bonds ****** Local Representation ******
Auto
Worker’s Compensation
Health/Life
12
1948 McCray Lumber and Millwork 1974 Graham Construction Company 1978 Barney Ashner Homes, Inc. 1983 Jim Haas Builders, LLC 1984 Brown Midwest, LLC 1987 Top Master 1988 Bickford & Company, Inc. Dixon Construction Company, Inc. 1990 United Heating, Cooling & Plumbing, Inc. 2000 J Davis Drywall, LLC 2001 Royal Metal Industries, Inc. 2002 Gahagan & Eddy Building Company, LLC 2006 Kirkwood Realty Co., LLC Kreimendahl Painting Window World 2009 Mooremark, Inc. Rosehill Gardens, Inc. 2010 Associated Air Products Integrated Electronics, Inc. Legacy Custom Homes, LLC 2012 Alenco, Inc. Kansas Gas Service 2013 Colt Industries, Inc. 2014 Aspen Contracting, Inc. JFE Construction Kelly Dunn Const. Inc.
FREE subcontractor insurance certificate review service for our clients
2014 Syler Construction, Inc. 2015 Befort Construction, LLC Still Contractors, LLC StrucSure Home Warranty 2016 Andersen Windows BSG Services, LLC Eagle 1 Construction Ethan Allen Retail, Inc. McBee Custom Homes Prospect Mortgage Safe Haven Security Services TF Forming Systems Inc United Missouri Bank
HBA Staff Josh Clark Executive Vice President jclark@kchba.org 816-733-2216 Marcia Jurgens Vice President of Administration marcia@kchba.org, 816-733-2215 Gina Battle Director of Parade of Homes gina@kchba.org, 816-733-2219 Dawn Allen Director of Member Services & Events dawn@kchba.org, 816-733-2239 Kelcee Schlotzhauer Permit and Show Sales Coordinator kelcee@kchba.org, 816-733-2246 Katie Walkley Government Affairs Manager katie@kchba.org, 816-733-2241 Kari English Communications Director kari@kchba.org, 816-733-2213 Taylor Pond Membership & Events Support taylor@kchba.org, 816-733-2218
February 2017 | Volume 23, No. 2 | www.kchba.org
New Members Culligan Water of Greater KC Warren Bayzman 19625 W Old 56 Hwy Olathe, KS 66061 (913) 782-4141 www.culligankansascity.com Energy One Rick Morrison 7500 College Blvd. Suite 500 Overland Park, KS 66210 (800) 816-4453 www.energyonesolar.com Integrity Operations, LLC David Ford 480 NE Lakes Edge Drive Lee’s Summit, MO 64064 (816) 916-7708 Kansas Granite Mart, Inc. Alvin Johnson 1223 Macon St. Kansas City, MO 64116 (816) 321-1218 www.kansasgranitemart.net KC Custom Cabinet Kaleb Settle 401 Park Drive Smithville, MO 64089 (816) 873-3353 kccustomcabinet.com
Affiliates Energy One Allen Townley 7500 College Blvd. Suite 500 Overland Park, KS 66210 (800) 816-4453 Missouri Gas Energy Christy Meers Brent Jones 700 Market, 5th Floor St Louis, MO 63101 (816) 399-9401 Phelps Engineering, Inc. Jeff Zimmerman 1270 N Winchester Olathe, KS 66061 (913) 393-1155 Reece & Nichols Linda Clemons Pam Morrison Robin Clark Sara Brice 11601 Granada Leawood, KS 66211 Rodrock Development Sara Corless PO Box 25390 Overland Park, KS 66225-5390 (913) 681-2121
YOU SEE DRY CLOTHES WE SEE SAVINGS FOR YOUR FUTURE.
Noble Contracting, LLC Kevin Gibson 1237 E. Meadow LN. Olathe, KS 66062 (913) 782-6955
Homeowners save with natural gas. Many natural gas dryers can handle two loads of laundry for the same cost as drying one load in an electric dryer.
Walker Custom Homes, LLC Jason Walker P O Box 3194 Independence, MO 64055 (913) 208-2026
A BETTER TOMORROW STARTS TODAY. www.kansasgasservice.com 13
www.kchba.org | Volume 23, No. 2 | February 2017
Three Innovative Products Honored at IBS
A Professional Concrete Flatwork Company
NAHB has named three creative new products as the Global Innovation Award winners for 2016. The winners are an educational course series by Wellness Within Your Walls, an exterior-wall insulation technology by Timber Block, and an electric fireplace replacement product by Dimplex. The annual award — announced this year at the NAHB International Builders’ Show — recognizes cutting-edge, advanced and original products or marketing strategies by global or domestic NAHB member companies: developers, builders, subcontractors, remodelers and lenders that offer products or services to consumers. Revillusions by Dimplex is an electric fireplace designed to create the bright, realistic look of flames, illuminating the
Affordable, Upfont Pricing High-Quality Flatwork Exceptional Customer Service Professionally Trained Staff Serving Kansas and Missouri
Call Kevin for a FREE ESTIMATE or visit www.keflatwork.com
BuildingBusinessNews THE OFFICIAL PUBLICATION OF THE HOME BUILDERS ASSOCIATION OF GREATER KANSAS CITY February 2017 • Volume 23 • Issue 2 Copyright 2017
Published by the Home Builders Association of Greater Kansas City 600 E 103 Street, Kansas City, MO 64131 (816) 942-8800
The Dimplex Revillusions 30” Fireplace full firebox and creating a pleasing sense of depth. “The Dimplex Revillusions electric fireplace is masonry in appearance, and cost effective while providing heat and comfort,” said S. Robert August, president of North Star Synergies and an NAHB Global Opportunities board member. “It provides an aesthetically pleasing electric replacement for masonry-built fireplace at a fraction of the cost.” NAHBNow, 1/25/17
Click this logo at
www.kchba.org
to login to your account
Editor Marcia Jurgens Contributing Writers Katie Walkley, Kari English Graphics Karla Peterie, Creative Services
2017 Executive Committee Home Builders Association of Greater Kansas City
President Harold Phelps Vice President Gary Kerns Secretary/Treasurer Shawn Woods Immediate Past President Brenner Holland Associate Representative Rosemary Vitale Past Presidents Representative Bob Frost To subscribe to Building Business News call (816) 733-2217 To advertise in Building Business News call (816) 733-2215 For change of address requests please fax changes to (816) 942-8367 or call (816) 942-8800 For more information, visit the HBA online at www.kchba.org 14
Online Resources for HBA Members! Register for HBA Events with Safe & secure online registration. Personalized calendar of events. Get notification of your events
Update Your Membership
Call today 816-942-8800, or email gina@kchba.org or dawn@kchba.org
February 2017 | Volume 23, No. 2 | www.kchba.org
2016 Marks Five Consecutive Years of Permit Growth The Kansas City metropolitan area ended 2016 with a 17 percent increase in single-family permits as compared to 2015, according to the Home Builders Association of Greater Kansas City’s (HBA) monthly Residential Building Permit Statistics report. The total of 5,489 single-family permits issued during 2016 marks the fifth consecutive year of increase in single-family permit activity and the highest level since 2007. Including the 4,169 permits for multi-family construction, a total of 9,658 units were permitted during 2016, compared to 8,695 in 2015 for an overall 11 percent increase. Kansas City, Mo., issued the most single-family permits in the area with 1,090 in city limits within Jackson, Clay and Platte counties — a 15 percent increase in building permit activity in Kansas City. The five most active cities also include Olathe at 599 single family units, Overland Park with 429, Lee’s Summit with 379 and Kansas City, Kansas/Wyandotte County with 245 permits issued. Builders anticipate that 2017 will continue the rebound in home construction. Robert Dietz, chief economist of the National Association of Home Builders (NAHB), confirmed this sentiment at the recent International Builders’ Show with his report that “NAHB expects solid 10 percent growth in single-family construction in 2017, adding to the gains of 2016.”
Want more detail on residential permits? HBA members can subscribe to a variety of reports. Contact Marcia (marcia@kchba.org) for information and pricing.
December 2016
Residential Building Permit Statistics
Residential Building Permit Statistics DECEMBER 2016 CASS COUNTY Archie Belton Cass County Cleveland Drexel Garden City Harrisonville Lake Winnebago Lee's Summit Peculiar Pleasant Hill Raymore Village of Loch Lloyd CLAY COUNTY Clay County Excelsior Springs Gladstone Kansas City Kearney Lawson Liberty North Kansas City Pleasant Valley Smithville JACKSON COUNTY Blue Springs Buckner Grain Valley Grandview Greenwood Independence Jackson County Kansas City Lake Lotawana Lee's Summit Oak Grove Raytown Sugar Creek PLATTE COUNTY Edgerton Kansas City Parkville Platte City Platte County Riverside Weatherby Lake Weston JOHNSON COUNTY De Soto Edgerton Fairway Gardner Johnson County Leawood Lenexa Merriam Mission Hills Olathe Overland Park Prairie Village Shawnee Spring Hill Westwood
Single MultiS-F M-F Total Family Family Total Units Units Units % Units^ Units Units YTD YTD YTD
Single MultiS-F M-F Family Family Total Units Units % Units^ Units Units YTD YTD LEAVENWORTH COUNTY Basehor 6 0 101 0 6 Lansing 0 0 18 0 0 Leav. County 5 0 73 0 5 Leavenworth 0 0 14 0 0 Tonganoxie 0 0 40 0 0 11 0 11 246 0
Total Units YTD
0 2 0 0 0 0 0 0 0 1 5 14 0 22
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 2 0 0 0 0 0 0 0 1 5 14 0 22
3 104 40 1 0 0 52 8 11 77 72 207 11 586
0 0 0 0 0 0 0 0 0 0 0 12 0 12
3 104 40 1 0 0 52 8 11 77 72 219 11 598
6 0 0 43 3 0 2 0 0 3 57
0 0 0 0 0 0 0 0 0 0 0
6 0 0 43 3 0 2 0 0 3 57
66 6 33 746 98 0 27 11 0 114 1101
0 0 0 387 0 0 48 0 0 12 447
66 6 33 1133 98 0 Totals 345 166 511 5489 4169 9658 75 11 Comparison of Single Family 0 126 Building Units for Greater Kansas City 1548 (Cass, Clay, Jackson, Platte, Johnson, Leavenworth, Miami, Wyandotte Counties)
19 0 12 0 5 7 2 8 0 20 4 0 0 77
0 0 0 0 0 0 0 40 0 0 0 0 0 40
19 0 12 0 5 7 2 48 0 20 4 0 0 117
180 0 112 0 31 81 68 81 4 368 49 0 0 974
43 0 0 0 0 0 0 1228 0 66 0 0 0 1337
223 0 112 0 31 81 68 1309 4 434 49 0 0 2311
0 15 5 0 5 0 1 0 26
0 126 0 0 0 0 0 0 126
0 141 5 0 5 0 1 0 152
0 263 58 0 126 27 16 0 490
0 472 0 0 0 0 0 0 472
0 735 58 0 126 27 16 0 962
2 0 0 8 2 2 7 1 0 44 30 1 13 3 0 113
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
2 0 0 8 2 2 7 1 0 44 30 1 13 3 0 113
16 1 6 94 54 47 201 4 1 599 429 29 155 45 3 1684 15
0 0 0 0 0 18 459 0 0 214 798 0 288 0 0 1777
16 1 6 94 54 65 660 4 1 813 1227 29 443 45 3 3461
WYANDOTTE COUNTY Bonner Springs Edwardsville KCK/Wyandotte Co MIAMI COUNTY Louisburg Miami County Osawatomie Paola Spring Hill
Month/Year January February March April May June July August September October November December Annual Total
2009 96 129 131 184 189 204 196 207 219 226 192 182 2,155
101 18 73 14 40 246
3 0 18 21
0 0 0 0
3 0 18 21
25 2 245 272
0 0 0 0
25 2 245 272
2 9 0 0 7 18
0 0 0 0 0 0
2 9 0 0 7 18
48 70 0 6 12 136
0 0 0 0 124 124
48 70 0 6 136 260
2010 137 145 252 228 213 239 180 243 173 279 173 209
2011 90 121 180 210 230 262 204 205 202 205 185 207
2012 2013 188 273 182 224 270 335 277 444 294 337 268 333 288 409 260 354 379 384 331 369 283 340 279 288
2014 287 216 362 439 385 364 375 352 383 468 312 328
2015 240 260 393 437 395 438 399 425 462 459 360 432
2016 274 408 542 523 503 578 494 530 418 462 412 345
2,301 3,299 4,090
4,271
4,700
5,489
2,471
Comparison of Permits By Units Issued Year to Date 2009 - 2016 2009 2010 2011 2012 2013 2014 2015 2016
S-F Units 2155 2471 2301 3299 4090 4271 4700 5489
M-F Units 1497 253 600 1775 2879 3910 3995 4169
Total Units 3652 2724 2901 5074 6969 8181 8695 9658
^The Single Family number is units and includes both attached and detached units. %Multi-Family units are in buildings with 5 or more units. # Not available at time of report Permit information reflects the most recent data at time of publication. In order to ensure accurate recording of residential building permit statistics, the HBA may revise monthly and year-to-date figures when updated data is made available. Copyright 2017 Home Builders Assoc of Greater Kansas City. All rights reserved.
www.kchba.org | Volume 23, No. 2 | February 2017
The HBA Becomes its Own Organization in 1947 Sometime in the 1950s, as the organization grew and strengthened, leadership began searching for a new place to call its own. The group ultimately decided to break ground on a new building at 3601 Main St. It formed a Building Committee and hired Fullerton and McCamis Architects. Once plans and specifications were drawn, members interested in participating by donating material, equipment or services, or desiring to submit a bid on any phase of construction, were to submit a letter of intent or bid to the chairman of the building committee, Jack Bear.
The first general meeting of the Home Builders’ Association of Greater Kansas City was held Nov. 25, 1947, at 6:30 p.m. in the Pine Room of Union Station. The meeting was attended exclusively by builders – both members and prospective members. President John Walker, Jr., called the meeting to order, introduced the new executive secretary, James L. Hutton, and explained the objectives and membership requirements of the association. The board’s second meeting, on Dec. 17, 1947, was aimed at soliciting prospective associate memberships, who were invited to the meeting. The associate dues structure for the associate membership was explained as well as why it was important for those allied in the home building industry to stick together. At the third meeting on Jan. 28, 1948,
the by-laws of the association were distributed to all present and were unan-
imously accepted as the by-laws of the association.
It was here the HBA would stay until it once again outgrew the space and built the HBA Housing Center where it is still headquartered today at 600 E. 103rd St. in Kansas City, Mo.
75° Perfect Balance Trying to stand out from the competition doesn’t have to drive you nuts. Deckorators helps set you apart with decking from the same source you’ve relied on for railings, balusters, post caps and more. Plus, the Deckorators composite decking lineup is the only one backed by a 25-year Removal & Replacement warranty.
Every degree matters.. ™
Visit deckorators.com for more information.
The builder’s choice in Kansas City.
816.761.5262
mccraylumber.com
16