PLAINS
BUILDER DECEMBER 2018 • www.hbafm.com
DEMOLISHING WORK FORCE BARRIERS
TEAMING UP AS A COMMUNITY TO SOLVE THE FARGO-MOORHEAD WORKFORCE PROBLEM READ MORE ON PAGES 15 & 17
Time:
4:30 pm: Board Installation 5 pm: Social Hour 6 pm: Dinner, Program & Mayoral Panel
JANUARY 24 Place:
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Cost:
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Install the 2019 HBA Board of Directors & Home Builders Care Board of Trustees Celebrate 2018's accomplishments Hear from local mayors on issues regarding the building industry
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Home Builders Association of Fargo-Moorhead was founded in 1956. It is a local 501(C)6 nonprofit trade organization. The HBA of F-M does not accept responsibility for or endorse any statements or claims made by advertisers or authors of any articles. Subscription rate is included in annual dues. Please address editorial inquiries to: Home Builders Association of Fargo-Moorhead 1802 32nd Ave. S., Fargo, ND 58103 (701) 232-5846 • info@hbafm.com • www.hbafm.com
ASSOCIATION STAFF Chief Executive Officer Bryce Johnson Executive Vice President Krista Mund Director of Accounting & Records Amanda Ohlsen Senior Events & Marketing Coordinator Allison Weckman Communications Coordinator Chelsea Diederich
O N T H E COVER Seth Carlson, Dakota Timber Company, demos a wall for the HBA’s workforce video.
FEATURES 15
Career Workforce Academy: One Solution To Local Skilled Labor Shortage
18
Health Plan Offers Valuable Benefit To Retain Employees
6 HBA President’s Message 12 NDAB’s Message
26 HBC President’s Message 30 Remodelers Council Message
Office Coordinator Tahra Doll
Four-Color Printing Specialized Coatings
Membership & Marketing Coordinator Sami Eidenschink
Foil, Embossing & Die Cutting Fulfillment Center
Education & Development Coordinator Summer Hammond Public Affairs Intern Mackenzie Ste. Marie
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HBA Supports Refresh For Former Inmates Through Support, Community
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PLAINS BUILDER Publisher Bryce Johnson Editor Krista Mund Coordination, Design and Production Chelsea Diederich Ad Sales Allison Weckman
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ADVERTISING DIRECTORY
Arvig................................................................... 3 Acme Tools...................................................... 32 Alerus............................................................... 19 Bell Bank.......................................................... 34 Blue Cross Blue Shield of ND........................... 34 Camrud-Foss Concrete Constr. Inc................... 19 Carpet World.................................................... 19 Cass County Abstract Company.......................... 7 Cass County Electric Cooperative..................... 18 Dawson Insurance.............................................. 7
Goodin Company.............................................. 35 Hauck & Buchholz Drywall, Inc........................... 7 Hayfield Window & Door Co............................. 33 Knight Printing.................................................... 4 Northland Truss Systems Inc............................. 16 Rigels............................................................... 16 Stenerson Lumber............................................... 7 Valley View....................................................... 16 Xcel Energy........................................................ 3
Plains Builder December 2018
DECEMBER
AT A GLANCE
MEETINGS LOCATED AT THE HBA OF F-M UNLESS OTHERWISE INDICATED
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12 DEC
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Public Issues Committee 11:30 a.m. - 1 p.m. Tuesday, Dec. 4
Education Committee 8 - 9 a.m. Thursday, Dec. 6
Membership Committee Noon - 1 p.m. Wednesday, Dec. 12
Board of Directors Meeting 11 a.m. - 1 p.m. Thursday, Dec. 13
Cancelled - Events Committee 8:15 - 9:15 a.m. Friday, Dec. 14
Cancelled - Parade of Homes Committee 3:30 - 4:30 p.m. Monday, Dec. 17
Lunch Session: Marketing Made Fun for Small Business Owners
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HBA Volunteer Holiday Happy Hour
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Home Builders Care Fundraising Committee
DEC
DEC
27 DEC
24 DEC
25 DEC
31 DEC
4:30 - 5 p.m. Speed Networking 5 - 6 p.m. Social Hour Tuesday, Dec. 18 Brewhalla, 1666 1st Ave N, Fargo
8:30 - 9:30 a.m. Wednesday, Dec. 19
Home & Garden Show Committee 8 - 9 a.m. Thursday, Dec. 27
HBA Closed
8 a.m. - 4:30 p.m. Monday, Dec. 24
HBA Closed
8 a.m. - 4:30 p.m. Tuesday, Dec. 25
HBA Closed
8 a.m. - 4:30 p.m. Monday, Dec. 31
11:30 a.m. - 1 p.m. Tuesday, Dec. 18
Plains Builder December 2018
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HBA Focused On Strategy, Workforce, Diversion, Elections This Year As an Association we must serve our long-time loyal members and emerging
PRESIDENT’S
MESSAGE
leaders who may have different priorities and goals than their parents. We started addressing this five years ago in our strategic plan. This year, we began a plan for the next three years. As I write this, our board has just approved new vision and mission statements for the HBA of F-M! Here they are: Vision: Nurture a thriving, innovative and diverse housing industry in our community.
Mission: Cultivate a strong community by being the meaningful resource at the forefront of homeownership and professional development to foster a prosperous building industry. I think these statements convey a forward-thinking and innovative organization and it’s exciting to continue working on our future. One of the actions I’m most proud of this year is the establishment of our Future Leaders & Entrepreneurs Xchange (FLEX). This group will focus on ways for emerging leaders in our industry to interact, build a network, strengthen the HBA of F-M and as a result, our industry. Now, let’s look to the past. Each year, your HBA of F-M always has a long list of issues to work on with you, from addressing overreaching regulations, helping you sell more homes, and generating workforce for the future. Here’s a recap of five of our top targets: 1. Workforce
You struggle to find qualified workers. We’ve found there are thousands of ways to engage with local schools, parents and students. This year we refined our focus to engage with local students, making sure we had a hands-on activity for them. We organized worksite tours that coincided with our Parade of Homes in the spring and fall. We also hosted a booth at Seeds for Hope, Walk Into My Future, with a goal to build career awareness for kindergarteners through fifth graders. Most importantly, HBA of F-M pledged $100,000 toward North Dakota State College of Science’s Career Academy. Our charity, Home Builders Care of F-M Foundation also pledged $100,000, and we are now well underway for fundraising another $800,000 from HBA members. This academy will allow students to enter the workforce sooner, with technical education certificates and skills. The trades will be promoted to grades K-14 on a continuous basis.
2. State legislative sessions and elections
We were engaged in Minnesota’s legislative session, with members traveling to participate in the Builders Association of Minnesota’s Day at the Capitol. At the same time, we worked with the North Dakota Association of Builders and our friends across the state to prepare for the coming year’s session in North Dakota. The HBA was diligent in engaging with those running in local elections, hosting three candidate forums in the spring, and meeting one-onone with more than 15 candidates vying for seats in North Dakota’s legislature this fall.
Dustin Murray,
Dustin Murray Construction I HBA President
EXECUTIVE COMMITTEE President Dustin Murray Dustin Murray Construction President Elect and Life Director John Gunkelman Dakota Construction of Fargo, Inc. Treasurer Darrick Guthmiller Kochmann Brothers Homes, Inc. Associate Vice President Dawn Cruff Dakota Plains Realty Secretary Scott Persoon Camrud-Foss Concrete Constr., Inc. Past President Tyrone Leslie Heritage Homes NDAB Build-PAC Trustee John Koerselman Red River Drywall & Decorating Services Life Director and NDAB President Dan Lindquist Dan Lindquist Construction, Inc. Life Director and NAHB State Representative Don Dabbert, Jr. Dabbert Custom Homes
BOARD OF DIRECTORS Ursula Hegvik Smart Spaces, Inc. Kim Hochhalter Building Concepts, Inc. Chad Johnson The Title Company Paul Krabbenhoft Berkshire Hathaway HomeServices Premier Properties Kimberly Krueger Tehan Krueger Construction, Inc. Robert A. Leslie Designer Homes of FargoMoorhead Gary Orth Cornerstone Specialties, Inc. Dan Parrow ISR Homes Todd Rasmussen Valley Lights Broc Roberson Stone Ridge Builders, Inc. Tom Spaeth Accent Contracting Robin Swanson Superior Insurance
Life Director Jason Eid Eid-Co Buildings, Inc.
President’s Message continued on page 8
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President’s Message continued from page 6 3. Recruitment of Builder members
Associate members outnumber our Builder members about three to one, so Builder recruitment and retention remains a primary focus for us. I’m happy to report that we have recruited 18 new Builder members this year! Builders are those companies who primarily build or remodel homes, or build commercial structures. Associate members are other homebuilding-related businesses that provide a direct role to the industry. As of press time, we are only eight members away from our overall recruitment goal of 90 members for the year. Congratulations to the Membership Committee for their efforts!
4. Involvement in continued work on the FM Area Diversion
Repeated flooding, and the threat of flood insurance, takes a toll on our local community and economy. Repeated spring flooding creates havoc for the homebuilding season because of its effect on consumer confidence and the strain it puts on both the industry and home buyers’ outlook. The HBA supports the FM Area Diversion, the preferred project moving forward. We took an active role in the comment process for Minnesota’s latest environmental review of the “plan B” for the Fargo-Moorhead Flood Risk Management Project. We are waiting to hear the next steps.
5. Re-directing actions on an office facility
HBA leaders have been exploring the possibility of a new home for the Association the past two years. We’ve found it challenging for many reasons, and are moving ahead with plan to renovate our current space! Watch for our annual report coming in January that will include the details on all of our programming and activities from 2018. It was an honor to serve the industry and this Association as president. Good luck to John Gunkelman, Dakota Construction of Fargo, Inc., as he begins his term as president next month. We hope that you continue to look to the HBA as a resource. If you aren’t currently engaged, give involvement a try. We’ve got something for everyone.
Dustin Murray HBA President Dustin Murray Construction
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Plains Builder December 2018
Concrete Pop-Outs Or Scaling? Find Out Why
by Summer Hammond, Education & Development Coordinator In September, Greg Johnson, Terracon, joined the HBA of F-M to discuss concrete pop-outs and scaling and why it’s happening. In 90 minutes, Johnson covered many reasons why it is important to maintain concrete and what contractors can do. In our geographic region we are hit with four season of intense weather which takes a toll on our concrete. Just like any other part of a new build or remodeled home, it has to be taken care of and maintenance is required. Otherwise, your concrete will develop scaling, mortar flaking and pop outs. First things first, contractors, Realtors and masons must educate home owners. Provide material to them when purchasing a previously owned home or a new build. When the home owner is educated on the maintenance responsibilities, and the possibilities of defacing if not maintained, the contractors can feel more at ease.
Preventative measures for everyone to know:
1. Avoid deicing chemicals: • Avoid fertilizer, magnesium chloride or calcium chloride. • Avoid parking your vehicle on driveways as salt/deicing chemicals will drip onto the concrete and could cause these issues as well. 2. Sand is the best traction substance to use. 3. Seal the concrete surface. • Sealing is recommended every 3-5 years, or follow manufacturer’s recommendations.
The top measures contractors can take to minimize surface issues:
• Proper concrete mix design (4,500 psi concrete in lieu of 4,000 psi that has been used most often in recent years for exterior slabs on the ground). • Encouraging owners/builders to select Qualified Concrete Contractors. • Ensure proper placement (not too high of slump, keep steel trowels/fresnos off of exterior concrete, don’t pour on too hot/windy/low humidity days without an evaporation retardant). • Apply curing compound (concrete needs to retain moisture in mix for strength gain and durability). • Seal the surface (there are different sealers, but any sealer is better than none, especially as we expose our concrete surfaces to more harmful deicing products being used on streets and highways).
Plains Builder December 2018
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Complying With The OSHA Silica Construction Standard: 1 Year After Compliance
by Chelsea Diederich, Communications Coordinator On March 25, 2016 the Occupational Safety and Health Administration issued its final Crystalline Silica standard. Following the ruling, litigation ensued, but the rule was upheld by the D.C. Circuit Court of Appeals. Full enforcement began in October 2017, and OSHA has worked to clarify the ruling since by providing helpful documents that can be found at osha.gov or in the HBA of F-M online Member Information Center. The National Association of Home Builders took a look back over the past year to highlight a few key areas and updates to the ruling.
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Plains Builder December 2018
Scope
NAHB is encouraging members to look at the scope of the project and determine if your operation is susceptible to the Silica Standard. • In most instances, things like: mixing small amounts of mortar; mixing small bags of concrete; mixing bagged, silica-free drywall compound, would not be in the scope. • In addition, occasional, brief silica-generating tasks (for 15 minutes or less) are also likely not covered by the standard; as well as anything that creates less than 25 micrograms of respirable crystalline silica per cubic meter of air. • If construction tasks are out of the scope of the standard, none of the standard’s requirements would apply.
Exposure Control Methods/Table 1
• Contractors do need to follow Table 1, which matches 18 common construction tasks with effective dust control methods, such as water to keep dust from getting into the air or using a vacuum dust collection system to capture dust. • Contractors do not need to follow all directions in the manufacturer’s instructions – only those related to minimizing dust emissions. • Contractors do not need to follow recommendations for respirator use contained in the manufacturer’s instructions – need to follow requirements in Table 1. • When determining time performing a task under Table 1 for purposes of respiratory protection, contractors do not need to track the exact amount of time, but make a good faith judgement.
Housekeeping
• Prohibitions on dry sweeping, dry brushing and the use of compressed air do not apply if exposure will remain under the action level of 25 micrograms under any foreseeable conditions. • Prohibitions apply only to regular housekeeping tasks, not when tasks are performed as a (nonhousekeeping) work activity. • Dust suppression compounds are allowable, including those that contain some crystalline silica.
Written Exposure Control Plan
• Contractors may develop a single comprehensive written exposure control plan that covers all required aspects of the plan for all worksites. • NAHB has developed a model written exposure control plan that contractors may use as a starting point. • Contractors do not need to prohibit access to whole floors or areas of worksite when performing silica generating tasks, must minimize employees in the work area.
Medical Surveillance
• The trigger for medical surveillance is wearing a respirator for more than 30-days a year. Any time contractors are wearing a respirator counts to the 30-day trigger; but it does not include voluntary use. • Rule itself simply makes employer required to provide medical testing to employees; employees are not required to take part. Standard does not prohibit employers to make medical surveillance mandatory.
OSHA Enforcement Focus
• Currently, inspections are largely complaint driven or visual (if an OSHA inspector sees a cloud of dust and does an inspection). • Tips to passing your OSHA inspection: • Ensure written exposure control plan is up-to-date and on site (including housekeeping methods). • Ensure that supervisors understand the plan and exposure control methods (Table 1). • If not following Table 1 fully, OSHA must still show exposures over the permissible exposure limits. • Ensure employees have received initial training. Plains Builder December 2018
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Thank You 2018! December is a month full of emotions, full hearts and time to reflect on another
year gone by. This past year has been a time of growth for me, our office staff and the Association. While sometimes change can be hard, it is always a time for new experiences and making new friends. A big thank you to North Dakota Association of Builder’s 2018 President, Dan Lindquist from the HBA Fargo-Moorhead for his leadership, his calm ways and for the countless emails, phone calls and text messages we exchanged. On Nov. 29, the NDAB Board of Directors and special guests gathered in Williston to toast the successful past year and celebrate the future year ahead of us. 2018 NDAB President Dan Lindquist was thanked for his past year’s service and pinned with NAHB’s Past State President pin. 2019 NDAB President Bob Horab was sworn in and pinned with NAHB’s State President pin. The North Dakota Association of Builders’ board of directors is made up of volunteers and we fully recognize and appreciate their time and dedication. To our outgoing board members, a heartfelt thank you. Your leadership is helping to push forth NDAB, NDAB-PAC and to help us to grow in our success. It has truly been a pleasure to work with you! Outgoing Board Members: • Bismarck-Mandan HBA: Lynn Klein • Bismarck-Mandan HBA: Greg Zenker • HBA of Fargo-Moorhead: Tyrone Leslie • Minot Assoc. of Builders: Melissa Francisco • Western Area BA: Joan Mainwaring Congratulations to our 2018 state award winners and nominees that were also announced at the annual banquet. If you were unable to join us, the winners will also be featured in the E-Newsletter and the Facebook Page. What an exciting year it has been! As 2018 goes down in the record books, we look forward to making new memories in 2019. Sponsorship opportunities are available, education opportunities will be offered, memberships will grow, and, in the end, new friendships will be made. Thank you all for making NDAB one of the best statewide Associations in the Nation!
Western Area Builders Association Amber Elizondo • 701-572-5744 www.willistonbuilders.com
• Exciting news! Williston Area Builders Association has proudly been serving Williams, Divide, Burke, Mountrail and McKenzie counties. We are not just Williston and have officially changed our name to the Western Area Builders Association! • 2019 Home and Garden Show planning has begun! We are looking to add more “Kids” items at the event. Kids will get the parents in the door!
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Bismarck-Mandan Home Builders Association Dot Frank, Executive Officer • 701-222-2400 www.bmhba.com
• The Holiday Home Walk featured eight homes decorated for Christmas. The lineup included new construction, a 1950s home that houses a non-profit and a tiny house. Proceeds benefit the Symphony Youth Orchestra. • The Association changed the meeting format for the Fall Awards Mixer & Board elections. A soapbox speech was used to deliver the event presentations. Award winning builders were unveiled and ballots were cast throughout the night. • Two builders were elected to serve on the 2019 board of directors. Brian Eiseman of Stoneshire Builders will be returning to the board for a second term and Jamie Schimdt is a newcomer from Triton Homes. Past President Shannon Reichenberg’s term ends in 2018. • The 2019 Home Show if filling up. Registration is open online at www. BisManHomeShow.com for the March 15-16 event.
NDAB’s
MESSAGE
Kim Schneider,
NDAB Chief Executive Officer
Dickinson Area Builders Association Lindsay Lange • 701-438-0044 www.dickinsonareabuilders.com
• The 2018 DABA Annual Christmas Party and Awards Banquet is one month away! We are putting the finishing touches on our “Grinchmas” celebration, and cannot wait for a night of fun with our members and their families. • The 2019 Home Show is less than six months away. We are gearing up for another great turnout April 6-7 at the West River Ice Center. • Congratulations to our local Builder of the Year, Willie Winn, Associate of the Year, Gene Kruger, BEAM, Steve Schwab of Schwab Messer Construction Inc., and Affiliate of the Year, Mike Schwab.
Plains Builder December 2018
President’s Message It’s truly hard to believe that a year has passed since I began my term as
president. Making it possible for directors at this level to maintain balance of volunteer hours, and the needs of work and family, takes the dedicated support from the North Dakota Association of Builders’ staff, board of directors, local HBA staff and the entire membership. Together we continually move the association in a positive direction and keep housing in the forefront of the economy. It takes a collective effort to make an association viable, and it is only fair to recognize the Senior Officers specifically who met monthly; Bob Horab, 1st vice president, Nate Applegren, 2nd vice president, Phil Risbrudt, secretary, Arnold Karsky, treasurer, and past president, Eric Brenden. Thank you to this group of leaders for your time and talent throughout the year. In addition, a sincere thank you to the entire board of directors, and NDAB CEO Kim Schneider and staff for your work to keep us pointed in the right direction. In May, we hosted the Bringing Housing Home event in Bismarck. The North Dakota Congressional delegation of U.S. Senator Hoeven, U.S. Senator Heitkamp and U.S. Representative Cramer were awarded a prestigious award from the National Association of Home Builders for their work ensuring that they made positive contributions to the housing industry when we needed them. NDAB held a candidate forum following the BHH event and we were able to meet with now Congressman-elect Kelly Armstrong and his opponent Mac Schneider, and secretary of state candidate Josh Boschee. At that time, Al Jaeger had not yet joined the race, but made a later announcement of his candidacy as an Independent. As you know, Mr. Jaeger went on to win the seat for another term. We congratulate and look forward to working with U.S. Senator-elect Kevin Cramer, U.S. Senator John Hoeven, and U.S. Representative-elect Kelly Armstrong along with the 2019 North Dakota State Legislature and local officials across the state. We added the Battle of the Builders blood drive as a community effort to support the ongoing needs of life-giving blood at hospitals in our local HBA communities of Fargo, Bismarck, Grand Forks, Minot, Dickinson and Williston. Seventy individuals took time out of their busy day to donate and provided for 210 lives. That’s impressive and thank you to everyone who showed up at their local blood drive. We thank Governor Burgum for issuing two proclamations relative to our industry – June as Homeownership Month and October as Careers in Construction Month. As the 2019 past president, I will continue to support the meaningful work on behalf of the association membership and welcome Bob Horab as your incoming president. Minot Association of Builders Elysha Head, Executive Officer • 701-852-0496 www.minotab.com
• Nearly 50 people attended the MAB 40 Below’s kickoff event, Bags ‘n Builders. Teams from both 40 Below and 40 Above went head to head in a cornhole tournament at Lowe’s Garden Center on Nov. 7. Thank you to sponsors: First International Bank & Trust, Lowe’s Garden Center, Gate City Bank and Muus Lumber and Hardware. • The Builders’ Bash will be Dec. 6 at Gravel Products! The Builders’ Bash is a culmination of our awards presentations into one BIG Night. This is where we come together to celebrate the industry, highlight MAB accomplishments this year and recognize the great work you do by presenting our Builder of the Year, Associate of the Year, Citizen of the Year, BEAM Award and the Dan Feist Extra Mile Award winners! The evening is emceed by Shaun Sipma, Minot Mayor. • Work has begun on the 2019 Home and Garden Show! Next year’s show will take place on March 1-2. Stay tuned for more details!
Forx Builders Association Stacy Anderson • 701-746-4536 www.forxbuilders.com
• Forx Builders Association would like say a Big THANK YOU to its 11 members who donated blood on Nov. 6. Dak Minn Blood Bank was an excellent partner for this event and we look forward to working with them again in the future. • Dec. 13 we will be celebrating our Holiday Builders After Hours at Keith’s Security World! It’s a tradition for our Membership Committee to provide a pot luck style meal for this event. We are all looking forward to some yummy homemade dishes! • Registration is open for the 44th Annual Home Design & Garden Show, March 2224, 2019, at the Alerus Center.
NDAB’s
MESSAGE
Dan Lindquist,
Dan Lindquist Construction I NDAB President
Home Builders Association of Fargo-Moorhead Bryce Johnson, Executive Officer • 701-232-5846 www.hbafm.com
• Over 200 members attended the HBA of F-M Awards Gala & Annual Meeting to hear from NAHB Chairman of the Board Randy Noel and find out who received the Association’s top awards. Thank you to diamond sponsor Red River Drywall & Decorating Services. Home Builders Care Foundation celebrated its 25th anniversary and $16,000 was given out to students going into the trades. • HBA of F-M members and staff met with and delivered checks to 15 legislative candidates. Locally, Moorhead elected a new mayor and council members. • 23 members participated at the HBA of F-M Blood Drive, saving over 80 lives! • The New Year Celebration & City Night will be Jan. 24 and will feature a year in review video as well as a mayoral panel.
Plains Builder December 2018
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Accolades, Trades Careers, Happy Hour! Each month, the HBA staff compiles a list outlining what the HBA has done for you. This includes education opportunities,
legislative work, events and meetings staff and members have attended. As of press time, November wasn’t over yet, so we’re always a month behind. Thank you for your understanding! October was a blur of activity at the HBA of F-M and Home Builders Care of F-M Foundation! We prepared for the Awards Gala & Annual Meeting, capped off the Fall Parade of Homes & Remodeled Home Tour with a celebratory Happy Hour and continued connecting with students, plus a whole lot more.
ACCOLADES & HONORS We welcomed National Association of Home Builders Chairman of the Board Randy Noel to the Awards Gala & Annual meeting to help celebrate Home Builders Care of F-M Foundation's 25th anniversary and award our highest honors. We also revealed directors elected to the 2019 HBA board: Devin Gaard, Hektner-Lybeck-Erickson Insurance; Eric Miller, Town & Country Credit Union; and David Reid, Radiant Homes. Additionally, Dan Parrow, ISR Homes, was named to the board as a presidential appointment (filling an open position vacated as a result of Jason Eid, Eid-Co Buildings, Inc., achieving Life Director status).
TRADES CAREERS October was Careers In Construction Month, and Home Builders Care of F-M Foundation hosted tours of a worksite for Fargo and West Fargo high school students. The Foundation also awarded $16,000 in scholarships to students pursuing careers in construction at our local colleges and trade schools.
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HAPPY HOUR We can't let a month go by without a little partying! That's exactly what went down at Floor to Ceiling Carpet One for our Happy Hour celebrating another successful Fall Parade of Homes & Remodeled Home Tour.
Plains Builder December 2018
Career Workforce Academy: One Solution To Local Skilled Labor Shortage
by Mackenzie Ste. Marie, Public Affairs Intern It is no secret that there has been a decline in skilled labor and an increase in delays when providing homes in the recent decade. Benjamin Anderson, president and CEO of Benjamin Custom Homes, knows this pain first hand. “Skilled labor has been a serious challenge facing our industry here in Fargo for over a decade. This has forced schedules to be stretched as vendors providing installation services are stretched thin,” he says. “Builders are forced to schedule entire projects based on the availability of the vendors because there aren’t other options.” With delays and a shortage of skilled labors comes an increase in material prices, which leads to questions of affordability to new potential buyers and builders. Within the last five years, lumber prices have nearly doubled. In May of 2018, lumber was almost $650 compared to May of 2013 when lumber prices were around $400. Anderson points out that another pitfall of a labor shortage is the price increases that ensue. “Ultimately, our homes are becoming less affordable based on the fact that it is harder to find people to do the work. This labor shortage unfortunately goes far beyond the electrician apprentice doing the wiring and carries all the way to the factory worker manufacturing the wire,” he says. “From the plastics, to the wood, to the shingles on the roof, a national skilled labor shortage increases the cost of the entire supply chain and unfortunately it leads to cost barriers for most people to invest into homeownership.” Career Workforce Academy continued on page 17
Terry VanWatermulen, CenturyLink, Ben Anderson, Benjamin Custom Homes, Monica Hart, Monica Hart Interior Design, Inc., volunteer to show trades careers to kids.
Plains Builder December 2018
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Plains Builder December 2018
NDSCS Career Workforce Academy What is it? A self-sustaining collaborative partnership that includes: • Private sector companies • K-12 school districts in Cass and Clay counties • Two-year educational institutions • FMWF Chamber of Commerce • Greater Fargo-Moorhead Economic Development Corporation • Cities of Fargo and West Fargo.
What does it offer? Career and technical education and training will focus on grades 10-14 and industry worker skill attainment. What does it mean specifically to the building industry? • Allows students to enter the workforce sooner, with technical education certificates and skills. • Trades will be promoted to grades K-14 on a continuous basis. • Offers customized training for the current workforce featuring courses that align with current demands.
Career Workforce Academy continued from page 15 What can we do to help with the shortage of skilled laborers? It may seem like an impossible task, but it may be easier than you think. Showing students the options that the trades offer and providing exposure to handson training in high school is one of the keys to solving the problem. With this type of education in place in school systems, more students will consider two-year technical degrees and trades careers. With the support of HBA of F-M members and the community, the North Dakota State College of Science’s Career Workforce Academy will give young people the education and resources needed to join the industry and help tackle the shortage problems. Anderson serves on the Home Builders Care of F-M Foundation board of trustees which has pledged $100,000 toward the academy.
He says, “The Academy allows the trades industry to reach into schools in a way never before possible. It gives students an immersive educational experience into a variety of trades and accurately depicts the trades as viable work alternatives to what has become an increasingly ‘office’ oriented society. Most students today have no idea how much money they can earn today working in a non-office setting. This academy will finally tell the story of the massive success you can have without a bachelor’s degree and the great financial reward and life satisfaction that comes from a job well done.” HBA of F-M has also pledged $100,000 toward the academy. Together, Home Builders Care and HBA will raise an additional $800,000 from members to fulfill a $1 million collective goal. See the sidebar on this for details on how to engage.
How do pledges work? Donations can be in a lump sum or pledged over five years. All donations should be made directly to the NDSCS Foundation. Visit www.hbcfm.com and click the Career Workforce Academy image or contact Summer Hammond at (701) 232-5846 or summer@hbcfm.com.
Ben Anderson, Benjamin Custom Homes, helped create the HBA’s very first workforce video promoting trades careers to kids and parents.
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Health Plan Offers Valuable Benefit To Retain Employees
by Sami Eidenschink, Membership & Marketing Coordinator The wind is a blustery blast of ice-cold air to the face and there is already a dusting of snow and treacherous patches of ice covering the streets. It is the start of one of the longest seasons in Fargo. Construction crews have been on the concrete blanket covered job sites since before the crack of dawn, braving what is only the start of icier winds and heavy snowfall because winter is coming. Every minute of these final days leading up to what is the coldest, darkest time of the year count
toward meeting deadlines and completing projects. With workforce shortage on the building industry’s mind, everyone is fighting to keep their best employees as winter looms on the horizon. Yet most employers are
Winter is HERE. 18
not familiar with a dependable way to gain employee loyalty, beyond wages, for the incoming and future workforce. Investing in an employee means going above and beyond their pay and staying competitive in a fierce industry where one can get a job wherever, whenever they choose. Fargo is unique in that the building industry continues to remain steady. What it does share with the rest of America, is the explosive trend in medical costs. The question employers are now frantically grappling with is how can they keep employees, their two-man operations, and even their doors open with medical costs on the rise, subcontractors to be paid and a family at home to support. HBA of F-M has always advocated for its members and works to support all sizes of businesses relating to the building industry. Support comes in various forms of member benefits ranging from networking events, being at the Offering Benefits continued on page 22
Attention Contractors and Builders: Cold weather charges for trenching are currently in effect. Please call the CCEC Engineering Department for more information. www.kwh.com • 701.356.4400
Plains Builder December 2018
2343_Plains_builder_ad_PR.pdf
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12/7/15
4:04 PM
FLAT CONCRETE WORK POURED FOUNDATIONS RESIDENTIAL & COMMERCIAL ESTIMATES GLADLY GIVEN www.camrudfoss.com
•
(218) 233-0065
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CONTACT US AFTER HOURS Scott Persoon (701) 219-0399 Toby Christensen (701) 219-0400
3380 8th St S Moorhead, MN 56560
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HBA Supports Refresh For Former Inmates Through Support, Community
by Chelsea Diederich, Communications Coordinator Not many can understand the struggle of acclimating back into society after serving time. How will you find a job, a place to live, a supportive group to keep you on track? Adam Martin, a former inmate, founded F5 Project in 2016 to help provide support and services in hopes of discouraging repeat offenders. After being released from serving time in prison, Martin realized the lack of services available to help former inmates work towards leading a positive life to help break the cycle. F5 was started to fill that need. With F5’s unique “in your shoes approach,” the transition from confinement to regular life begins with discussion and relationship building with other F5 members. To help members set goals and reacclimate, the organization uses five pillars: communication, housing, employment, healthy socialization and transportation.
“With the growing need for workforce, the HBA is excited to partner with an organization helping individuals towards a successful future. Their approach of working with community organizations to help provide housing and employment opportunities is inspiring and needed.” HBA Chief Executive Officer Bryce Johnson
F5 Founder Adam Martin Photo of: Fargo INC! 20Courtesy
Plains Builder December 2018
F5 Founder Adam Martin Photo Courtesy of: Fargo INC!
HBA of F-M member Shannon Roers Jones, Roers Construction Company LLC, says, “I am proud to be a supporter and a member of the board of directors for the F5 Project because they are filling a critical need in our community. F5 Project provides the support and community that a person leaving incarceration needs so they don’t fall back on old habits. Additionally, F5 Project connects people with the resources they need, whether that is housing, employment, transportation or access to counseling for substance abuse and mental health issues. They help rebuild those connections that are lost when a person spends time in jail.” The HBA is partnering with F5 for its annual holiday drive. HBA Chief Executive Officer Bryce Johnson says, “With the growing need for workforce, the HBA is excited to partner with an organization helping individuals towards a successful future. Their approach of working with community organizations to
help provide housing and employment opportunities is inspiring and necessary.” HBA of F-M is collecting laundry baskets filled with what the residents need to welcome them in and when they move out. Offices and groups are encouraged to collaborate to compile complete baskets filled with new items ready for F5 residents. Members are invited to donate individual items as well. Johnson says, “Have fun with this, and remember to think of unique items that would make someone smile!” See the insert included in this issue for details. F5 Project believes what happens in one’s past does not need to determine one’s future. With ongoing communication, safe and affordable housing, employment, healthy socialization and transportation, F5 helps transition citizens from confinement to a new life.
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Offering Benefits continued from page 18
forefront of advocacy issues at the local, state and national levels and includes offering employers a way to enroll in a potentially more affordable health insurance program. The program is called the Fargo-Moorhead Home Builders Health Plan and Trust. It offers employers an opportunity to snag the best in building by offering the additional benefits that incoming and current potential employees are looking for. The F-M Home Builders Health Plan and Trust is a nonprofit health insurance program available to qualified members of the HBA of F-M, created solely as an additional benefit to membership. This optional member benefit has existed for over 30 years and stands by its mission to serve members of the Association. Over its tenure, the program has always embraced change and acted on the fluidity in the needs of the building industry. From competitive plans and consistent rate stabilization, this program is run by a knowledgeable and outstanding group of leadership. The Trust is made up of a board of trustees who are member employers both large and small that are enrolled in the program and currently offer it as a benefit to their employees. From health club credits, rates and beyond, the members can rely on their industry peers to make decisions on the plan rather than large insurance corporations.
Interested in learning more? Please contact the Health Plan Trust’s Blue Cross Blue Shield of North Dakota Plan Representative.
22
The members are always on the minds of the trustees because the trustees are members. They have insight to the makeup of the current building industry and needs of the members. All employer members, whether new or a founding member, are welcome to connect with representatives of the plan at Blue Cross Blue Shield of North Dakota to learn more about whether the offered medical, dental and vision options would be a good fit for their company. To get started, contact Jean Griffin at (701) 2772232 or jean.griffin@bcbsnd.com. The Trust has a patient and helpful group of representatives at Blue Cross of Blue Shield of North Dakota who work with the membership to answer questions, assist in enrollment and walk them through required paperwork, participation agreements and more. You will find them mingling with the membership at committee meetings and events as they follow the trustee’s lead in keeping the members’ best interests in mind. The HBA has always worked hard to offer the best in benefits, programming and community service. It is evident that over the past 65 years, the group of tireless volunteers who serve on committees, boards and taskforces continue to make this organization a warm ray of sunshine on even the coldest winter day.
JEAN GRIFFIN Team Lead Fargo District Office
4510 13th Avenue S. Fargo, ND 58121
jean.griffin@bcbsnd.com
P: (701) 277-2232 F: (701) 277-2454
Plains Builder December 2018
New Year Brings New Look To Mayoral Panel Two New Mayors To Sit On New Year Celebration & City Night Mayoral Panel
by Allison Weckman, Senior Events & Marketing Coordinator Hear what the area’s two newest mayors have to share about the homebuilding industry in their communities! In addition to Dilworth Mayor Chad Olson, Fargo Mayor Tim Mahoney and Horace Mayor Kory Peterson, the New Year Celebration & City Night will feature newly elected Moorhead Mayor Johnathan Judd and West Fargo Mayor Bernie Dardis. HBA of
F-M Events Committee Chair Lucinda Goetz, F.F. Fisher Sales & Leasing, “This is a great opportunity for HBA members to hear from these newly elected officials about housing in our area. For those that haven’t attended in the past, the mayoral panel is very conversational and focused on our industry. If you have New Year Brings New Look continued on page 27 HBA CEO facilitates the 2018 Mayoral Panel
Event Details:
• Date: Jan. 24 • Cost: $40 if registered by Jan. 18 • Place: Delta Hotel, 1635 42nd St SW, Fargo • Time: 4:30 p.m. - 2019 Board Installation 5-6 p.m. - Social Hour 6 p.m. - Dinner, Program & Mayoral Panel Register at hbafm.com or by calling the office at (701) 232-5846. Meal choices include Burgundy Beef Jardinière or Minnesota Stuffed Chicken Breast.
Builders Association of Minnesota Executive Officer Remi Stone gives an update on the Minnesota legislative session.
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Education Summit & Trade Showcase Contractors will converge on the Holiday Inn Jan. 31 for the HBA of F-M’s
Education Summit and Trade Showcase. The day offers a unique opportunity to learn, network and explore. Plumbers, power limited technicians and building contractors: fulfill requirements to maintain your licensing, network throughout the day with others in your trade, then cap off the day at the Trade Showcase while exploring the latest in products and services from HBA member companies. Plumbing Education The course provides eight hours of continuing education covering installation standards for PVC (two hours of technical/other); combination systems looking at combination waste and vent systems (two hours of code review); and storm drainage as well as some basic DWV (four hours). Instructor: Scott Thompson, Minnesota State Community and Technical College Power Limited Technician Education The course provides eight hours of continuing education giving an overview of the National Electrical Code requirements for communication circuits, power limited class 2 and 3, raceway and cable requirements and low voltage lighting systems. Instructor: Ben Doyle, Minnesota State Community and Technical College Minnesota Building Contractors Education The course is pending approval for 7.6 hours of continuing education. Learn to add curb appeal to homes while making them more affordable, easier to build and energy-efficient. Plus, learn to effectively communicate your home’s energy-efficient features to buyers, Realtors, appraisers and lenders. Topics include siding and trim, engineered wood products and high performance homes. (This course will also be offered Feb. 15 at the Skills & Technology Training Center.) Instructors: Building Products, Inc., and Solution Design, Inc.
THANK YOU SPONSORS
MN Building Contractors Continuing Education: • Building Products Inc. of North Dakota • City of Moorhead • Minnkota Power Cooperative, Inc. Power Limited: • Dakota Supply Group • Cass County Electric Cooperative Plumbing: • Dakota Supply Group Trade Showcase: • Labor Masters • Brock White Co.
Members listen intently to instructors at Minnesota Building Contractor Continuing Education.
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Plains Builder December 2018
Details: • Education Summit: Plumbing, Power Limited Technician, Building Contractor Continuing Education • Jan. 31 • 8 a.m. – 4:30 p.m. • Holiday Inn, 3803 13th Ave S, Fargo ND • Cost: $105 Early Member Rate $210 Early Non-Member Rate Prices increase Jan. 7. Cost includes lunch. • Register at hbafm.com: click Events, then Calendar. • Trade Showcase • Network and explore all the latest products and services from fellow HBA members. Education Summit attendees will receive one free drink. Free appetizers and a cash bar will be available. All HBA of F-M members are invited. Contact Tahra Doll at (701) 232-5846 or tahra@hbafm.com for more information on exhibiting. • Jan. 31 • 4 – 6 p.m. • Holiday Inn, 3803 13th Ave S, Fargo, ND • Early Exhibitor Registration: $200 (before 4 p.m. Dec. 14) • Regular Exhibitor Registration: $225
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Foundation Showcases Homebuilding Careers To Thousands As I look back on 2018, I ask myself “Where did the year go?” followed by a flood
of memories involving Home Builders Care Foundation making impactful strides in our community and industry. One of our major accomplishments was completing the Dakota Boys and Girls Ranch Youth Home remodel project. It was truly inspiring to see HBA of F-M members coming together and making that facility a “home” for young people. The Foundation’s efforts on workforce has traveled down many different avenues this past year. Home Builders Care Foundation connected National Association of Home Builders’ Student Chapter members with current HBA of F-M members. There were volunteer projects including building handicap-accessible ramps, installing new flooring and more. One student also helped us develop a new workforce awareness video! These opportunities are more than just building or lending a hand; they are networking, establishing experience, mentoring and building relationships with our future workforce.
Our workforce accomplishments for 2018 include:
• Reaching over 5,000 young people through organizing the Lego Homebuilding Competition and Herdina Academy for the Construction Trades, and participating in Seeds For Hope, Walk Into My Future, and Health, Tech & Trades Career Expo. • Sponsorship of West Fargo High School’s Skills USA Competition team • Over $20,000 given in scholarships for high school and post-secondary students. • Mentoring our local NAHB Student Chapter International Competition Teams competing nationally. Hosting homebuilding worksite tours for tenth – 12th graders during the Spring and Fall Parade of Homes. • Supporting and fundraising for the North Dakota State College of Science Career Workforce Academy (Home Builders Care has pledged $100,000). Each one of our members has a special gift, and each one of these gifts is important to pass along. Each year the number of jobs increases, but the pool of workers is smaller and smaller. Together, with our members we have come together to provide local youth with an introduction to our industry. Many students don’t have access to mentors or family members working in construction. That’s why each of the opportunities listed above is so important and why your support is critical. This spring, Home Builders Care Foundation provided one high school student, Jonathon Kletsch, a $4,000 scholarship to pursue his dream of becoming an electrician. He attended the Herdina Academy where he experienced new skills and, most importantly, learned that a career in the trades is rewarding and lucrative. Jonathon has a very bright future in our industry. We also provided 18 post-secondary students with $16,000 in scholarships, encompassing North Dakota State College of Science, North Dakota State University, Minnesota State University Moorhead and Minnesota State Community and Technical College. As 2018 comes to a close, please consider choosing, Home Builders Care Foundation, in year-end donations. All donations make a difference in providing a positive outlet for the housing industry to give back to the community and building the framework for our future! It has been an honor being your 2018 President. For more information on any item listed in the president’s message, contact Summer Hammond at (701) 232-5846 or summer@hbcfm.com
Monica Hart HBC President Monica Hart Interior Design, Inc. 26
PRESIDENT’S
MESSAGE
Monica Hart,
Monica Hart Interior Design, Inc. I Home Builders Care President
Home Builders Care of Fargo-Moorhead Foundation 1802 32nd Avenue South Fargo, ND 58103 Phone: (701) 232-5846 www.hbcfm.com EXECUTIVE COMMITTEE President Monica Hart Monica Hart Interior Design, Inc. Vice President Randy Cramer NAI North Central Secretary Carlita Dietz Jay Dietz Construction Treasurer Sylvia Lunski Design Direction, Inc. Past President Casey Beckerleg Stenerson Lumber
TRUSTEES Ben Anderson Benjamin Custom Homes, LLC Dan Beecher Foam Doctor’s, LLC Kristie Eid Perry Eidem Allied Building Products Corp. Ryan Johnson Monarch Homes, LLC Nancy Kelly Labor Masters Trevor Odden Stone Ridge Builders, Inc. HBA Board Liaison Gary Orth Cornerstone Specialties, Inc.
Home Builders Care of Fargo-Moorhead Foundation was created in 1993 by the Home Builders Association of Fargo-Moorhead. It is a local 501(c)3 nonprofit charitable organization. It was established with funds donated by HBA members, fundraising events and the HBA itself. The purpose for its creation was to provide an outlet for the builder, remodeler, and companies related to the building industry to show the community that there is more to the building industry than demolition, construction and remodeling. The HBA handles the administrative duties for the foundation at no charge. Any contribution designated to the foundation Plains Builder Decembergoes 2018 directly to the foundation and its charitable work.
NDAB staff with State President Dan Lindquist of Dan Lindquist Construction.
New Year Brings New Look continued from page 23 specific questions you’d like to ask, you can submit them in advance to the HBA.” The program will also include a year in review video, recognition of Mark Bittner who retired from the city of Fargo’s engineering department this year and passing of the gavel from current HBA President Dustin Murray, Dustin Murray Construction, to President-Elect John Gunkelman, Dakota Construction of Fargo, Inc.
Dustin Murray is installed as the HBA of F-M’s 2018 President
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The Economy Is Not Overheating The U.S. unemployment rate recently fell to 3.7 percent, a rate last seen in
Elliot Eisenberg, Ph.D. is President of GraphsandLaughs, LLC and can be reached at Elliot@graphsandlaughs. net. His daily 70-word economics and policy blog can be seen at www. econ70.com. You can subscribe and have the blog delivered directly to your email by visiting the website or by texting the word “BOWTIE” to 22828.
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1969. This very low rate is giving the Fed and many other market watchers reasons to worry that the labor market, and thus the overall economy, may be overheating. While it is true we are late in a business cycle, labor market indicators suggest that we are not as late as we may think. To be precise, job growth remains too high, wage growth remains too low, and the employment rate still has room to rise before we run out of workers and hit full employment. Over the past year, the U.S. working-age population has grown by about 225,000 a month. Given that 60.4 percent of that population works, that means the U.S. economy needs to create 136,000 jobs/month to keep the unemployment rate stable. However, over the past three months job growth has averaged 218,000/month, and over the past year 211,000/month. As a result, the economy is creating more jobs than required to simply absorb new labor market entrants. This alone suggests that the economy is not at full employment. When we reach full employment, net new job growth will settle at or about 136,000 jobs/month. Another sign that we are not on the verge of an overheated labor market is that wage growth remains quite subdued. When an economy is short workers, employers compete for scarce labor, and in the process push up wages, causing inflation to rise. But we see none of that. Over the past year labor productivity growth has been 1.3 percent, and if you add to that the Fed’s 2 percent inflation target, you get 3.3 percent. Wage growth below 3.3 percent will not cause inflation to increase. And, sure enough, wage growth over the past year has been just 3.1 percent. If the economy really was overheating, wages would be growing at a much faster rate. Another clue that the labor market will not seize up anytime soon is that the percentage of working Americans at 60.4 percent remains well below its prerecession peak of 63.4 percent. While a return to 63.4 percent is unlikely, due to an aging population, more persons going to college, and a few other factors, the rate has been steadily rising since hitting a cyclical low of 58.2 percent in July 2011. Moreover, the percentage of 25 to 54-year-old persons (those of prime working age) that are working has been rising for almost eight straight years but is still full one percentage point below its pre-recession peak of 80.3 percent. As a result, I suspect that the percentage will rise at least a bit higher before it tops out. Lastly, the unemployment rate is no longer as good a measure of labor force slack as it was in the past. Here is one example why: Until recently, finding part time work that still allowed one to go on job interviews was virtually impossible. Thus, many who looked for a job were out of necessity unemployed. Today, with platforms such as Uber, TaskRabbit, Fiverr and others, one can be employed while actively looking for a more suitable full-time job. As a result, comparing the low unemployment rate of today to similar rates in the past will lead one to conclude that the labor market is tighter than it really is. Despite a near 50-year low in the unemployment rate, because of technological changes and a careful reading of demographics and data, it seems that the labor market still has some room to vigorously expand before monthly employment growth must slow. As a result, the Fed need not worry that the 3.7 percent unemployment rate is indicative of an economy that is about to overheat due to a worker shortage – yet.
Plains Builder December 2018
ELLIOT’S
Disagreeable Debt
Staggering Sacrifice
Crude Concerns
Copious Confidence
Since 1/1/2008, US public debt has risen from $5.1 trillion to $15.9 trillion. Luckily, rates have been low. In 2017, interest costs were $263 billion, 6.6% of government spending and 1.4% of GDP; very manageable. However, by 2028, and assuming no recession, debt service will skyrocket to $915 billion, 13% of government spending and 3.1% of GDP! By 2020, debt service will surpass Medicare spending; by 2023, national defense. Congress? With oil prices down 25% due to rapidly rising supply, slowing world growth, and more waivers than expected for Iranian oil purchases by nations such as China and India, OPEC has two unpleasant choices. Cut production to keep prices up but inevitably lose market share to US frackers, or keep production steady, protect its market share, and really hope US shale production at least temporarily plateaus due to lower prices.
Costly Cars
The price gap between new and used vehicles is as wide as it’s been in years, pushing buyers towards used cars. New cars are bigger, come packed with fancy technology, and average almost $37,000. Conversely, a used 3-year-old car costs $23,000 despite rising due to reduced repossessions and fewer vehicles coming off rental-car fleets. In 8/18, the average new car payment was $536/month, vs. $507/month in 8/17; $463 in 8/13.
World War I ended on November 11th at 11:00am, making yesterday the 100th anniversary of the armistice. It’s known as the Great War, as the number killed and wounded was unfathomably high. The last soldier killed; American Henry Gunter at 10:59am. Among the Allied Powers (which include US casualties), 6 million soldiers and 4 million civilians died. Among the Central Powers, the respective numbers were 4 million and 3.5 million.
BRIEF BLOGS
Crime Contraction
In 1995, there were 684.5 incidents of violent crime per 100,000 persons. That rate steadily declined through 2014 when it hit a low of 361.6, a staggering decline of 47.2%. Since 2014, the rate has risen and is now 394/100,000, a still strong decline of 42.4%. The violent crime rate is down for all categories including aggravated assault, homicide, robbery, and rape. The decline has been smallest for rape; 26.3%.
Vendor Value
According to the Conference Board, consumer confidence rose to 137.9 in October, its highest level since 9/00. According to the University of Michigan, consumer confidence is at 98.60, down slightly from the 3/18 reading of 101.4, the best reading since 1/04. While stock market declines and gyrations are a concern to wealthier Americans, job prospects are what matters to the middle and lower classes, and they are excellent!
In 18Q3, the vendor most popularly expensed by business travelers in North America was Uber, accounting for 11% of all transactions. Starbucks followed with 4.09%, while Amazon was third at 4.05%. Delta, American Airlines, Lyft, United Airlines, Walmart, Shell and McDonald’s round out the top 10. National was the most used car rental; Hampton Inn was the most popularly expensed hotel. Taxis collectively accounted for just 1% of all transactions.
More Money
GDP Gains
Last week, the Employment-Cost Index, which looks quarterly at wages and benefits paid to civilian workers, and another survey that looks at hourly earnings/month both showed wages rising at an annual rate of 3.1%, the fastest since 08Q3 and 9/09, respectively. Importantly, these increases remain non-inflationary as annual wage growth minus labor productivity growth (1.3%) is 1.8%, below the Fed’s 2% inflation target. The labor market can get still tighter.
At 3.5%, 18Q3 GDP growth was strong, but noticeably down from 4.2% growth in 18Q2. Household consumption grew a healthy 4%. Government spending rose a vigorous 3.3% and inventories rose by 2.1%, but both gains are transitory and thus short lived. Net exports fell 1.8%; investment in structures (residential and non-residential) fell 0.3%. 18Q4 GDP growth will come in at a solid but weaker 3.1% as the economy continues cooling.
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COUNCIL’S
MESSAGE
A Year Of Growth, Support, Success In the beginning of 2018, the Remodelers Council stayed with what it has known,
following regular agenda items and having discussion on topics as needed. As this year comes to a close, it has become so much more. Although the group only meets every other month, we have seen full meetings consistently, with not a spot left in the parking lot and not a chair left open. With full seats, comes good conversation between industry peers. Many members on the council are active within the Fargo-Moorhead community, other organizations and in multiple areas of the HBA. This widespread knowledge has added a standing item to our agenda, called industry issues. The council now not only plans the Remodeled Home Tour, acts a vetting and action-minded body for decision making on small scale community projects, but is now proving itself as a sounding board and gathering place where members can share struggles, celebrate accomplishments and get questions answered by their peers. Beyond the local issues, our council has taken interest is going beyond FargoMoorhead and is lucky enough to have a National Association of Home Builders Remodelers Council Trustee among us. Thanks to Tom Spaeth of Accent Contracting who serves as one of these trustees, the group has formed a bridge between the local and national association that allows them access to updates happening across the country and is regularly connected with opportunities available to them as a member. If forming a relationship with NAHB, connecting locally on industry issues and full meetings were not enough, the group continues to amaze me in their support of one another. The group is constantly supporting each other’s endeavors and celebrating the successes of the local remodeling industry. This support came in various ways including spending their weekends visiting the five projects on the remodeled home tour, including for the first-time-ever, two featured projects. It also came in the form of community service, whether it was volunteering time, materials or knowledge to a council project or a fellow members project. With so many great things happening, it is no surprise, the council also grew its membership by adding 11 new council members. Thank you for the opportunity to chair this progressive group of industry leaders. I am excited to welcome our new members and 2019 leadership team as they continue to grow and support a thriving remodeling industry.
Trevor Odden, Remodelers Council Chair Stone Ridge Builders, Inc.
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Trevor Odden,
Stone Ridge Builders I Remodelers Council Chair
Remodeler REMODELERS COUNCIL MEMBERS ABC Seamless Accent Contracting ACME TOOLS Allied Building Products Corp. Arvig Audio Video Extremes Braaten Cabinets Cable One Dakota Construction of Fargo, Inc. Dakota Supply Group Dave Anderson Construction Design Direction, Inc. Dustin Murray Construction engageBUILD Fargo Linoleum Company Ferguson Bath, Kitchen & Lighting Showroom Fiske Construction, LLP Floor to Ceiling Carpet One Foam Doctor’s, LLC Granites Unlimited Hirshfield’s Paint Home Heating, Plumbing & A/C, Inc. Homemakers Villa Kochmann Brothers Homes, Inc. Lake Agassiz Habitat For Humanity Laney’s, Inc. Luxury Custom Homes Mill Creek Custom Cabinetry Minnkota Windows, Inc. Opp Construction Pella Windows & Doors Precision Concrete Cutters, Inc. Precision Lawn & Landscape Rebuilding Together Fargo-Moorhead Area, Inc. Red River Electric, Inc. RRC Specialties, Inc. Rusco Window Company Showplace Cabinetry Design Center Simonson Lumber Smart Spaces, Inc. Stenerson Lumber Stone Countertop Outlet Stone Holding Company Studio West Homes Stone Ridge Builders, Inc. Syverson Tile & Stone TRN Abstract & Title Twin City Garage Door, Inc. Wood Specialists Inc. The Window & Door Store
Plains Builder December 2018
Plains Builder December 2018
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NEW MEMBERS
ASSOCIATE
Nitz Masongry 1308 16th St S Moorhead, MN 56560 John Nitzkorski (701) 361-4298 Masonry, Brick, Glass Block & Stone
Accent Plumbing 144 E Main Ave Unit D West Fargo, ND 5807 Wayne Shipley (701) 866-6034 Plumbing - Contractor Investment Center Advisor Group 511 101/2 St N Wahpeton, ND 58075 Linda Kocher (701) 672-7526 Financial Services Sponsor: Dan Biewer, Dakota Heating Huesman Schreiber Masonry, LLC 1811 26th St S Moorhead, MN 56560 Joe Schreiber (701) 219-1728 Masonry, Brick, Glass Block & Stone - Contractor Sponsor: Mike Opatril, Structural Materials
The Window & Door Store 815 Main Ave Bismarck, ND 58501 Jayden Chuppe (701) 223-1008 Windows
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Klein’s Carpentry 4733 36th Ave N Reile’s Acres, ND 58102 Terrill Klein (701) 793-8102 Cabinetry & Woodworking
The Tessman Company 610 39th St N Fargo, ND 58102 A.J. Ouradnik (701) 232-7238 Landscaping - Supplier Sponsor: Skylar Akason, Precision Lawn and Landscape
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Plains Builder December 2018
Goodin Company carries a full complement of products for the markets we serve. Are you in need of products for plumbing, HVAC, industrial, or pump and well applications? We are your Source of Supply, serving the industry since 1937.
PLUMBING
HVAC
Goodin Company maintains a complete inventory in a wide range of major brand plumbing products for both residential and commercial plumbing contractors. To support our plumbing inventory, we maintain showrooms in many of our branch locations.
Our HVAC division encompasses both hydronic and warm air heating as well as central and split system air conditioning equipment for residential and commercial systems. We also provide technical support in design and layout.
INDUSTRIAL
PUMP AND WELL
We supply a wide range of industrial pipe, valves, and fittings. To compliment our pipe inventory, we offer a complete in-house pipe fabrication service in which we are able to cut, thread and groove pipe to our customers’ specifications.
Goodin Company’s pump and well division maintains a complete inventory of pumps and repair parts for the residential water well drilling contractor, as well as the large commercial or municipal driller.
MINNEAPOLIS (612) 588-7811 ST. PAUL (651) 489-8831 DULUTH (218) 727-6670 DETROIT LAKES (218) 847-9211 ST. CLOUD (320) 259-6086
BRAINERD (218) 828-4242 ROCHESTER (507) 529-1284 FARGO (701) 298-3210 SIOUX FALLS (605) 332-3444 OMAHA (402) 331-6813
EAU CLAIRE (715) 830-1800 WAUSAU (715) 675-2513 MADISON (608) 663-0331 MILWAUKEE (262) 781-1770 GREEN BAY (920) 884-9494
www.goodinco.com
Plains Builder December 2018
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PRESORTED STANDARD US POSTAGE PAID FARGO ND PERMIT NO 1387 Home Builders Association of Fargo-Moorhead 1802 32nd Ave. S. Fargo, ND 58103 www.hbafm.com | info@hbafm.com (701) 232-5846
Wilsonart Quartz
Haida Q4008 Countertop installed in Bismarck, ND through Dynamic Cabinet Design WilsonartÂŽ Quartz is a stylish, sleek and strong surface with performance features that make this one of the most popular surface materials on the market today. Wilsonart quartz designs capture the authentic essence of natural stones while incorporating neutral colors in reimagined structures. Each design is uniquely suited to mix with a variety of styles and trends for evergreen spaces.
828 NP Ave | Fargo, ND | 701.298.0644 | fabricatorsupply.net
MASTERFUL MIXOLOGY
For commerical and residential interiors, Wilsonart Quartz is highly prized for its beauty, resilence, and versatile ability to seamlessly blend with any style. Solids or woodgrains, complementary hard surfaces and even metal laminates like bronze or gold can provide a cohesive, on trend design.
828 NP Ave | Fargo, ND | 701.298.0644 | fabricatorsupply.net
Holiday Drive 2018
Donate now through Jan. 7!
The F5 Project was founded in 2016 by Adam Martin, a former inmate, F5 helps to coordinate services and provide personal support to deter repeat offenses. HBA of F-M has made connections with leaders at F5 to explore workforce development channels in the future. HBA of F-M is collecting laundry baskets filled with what the residents need to welcome them in and when they move out. Offices and groups are encouraged to collaborate to compile complete baskets filled with new items ready for F5 residents. You're invited to donate individual items as well. Members should drop off donations at the HBA of F-M office by Jan. 7. If you have questions, contact Tahra Doll at (701) 232-5846 or tahra@hbafm.com. Social challenge: Upload a picture with your donations on Facebook and tag a fellow member to challenge them to donate to the HBA Holiday Drive! Don't forget to tag @HBAFargoMoorhead and use #HBAHolidayDrive. WELCOME BASKET (resident moves into F5 facility) Laundry basket with: • Pillow • Twin sheet set • Blanket • Set of towels • Set of hygiene products (unisex): shampoo, conditioner, body wash/bar soap, razors, toothbrush, toothpaste, hairbrush and comb, etc. • Fun ideas: hats, mittens/gloves, scarves.
MOVE-OUT BASKET (resident moves into housing) Laundry basket with: • Frying pan • Pot • Cooking utensils • Set of dishware • Set of flatware • Set of glasses • Can opener • Bathroom items: bathmat, shower curtain, shower hooks, bathroom cleaner, etc. • Fun ideas: slippers, mug and coffee, hot chocolate, candy.
Have fun with this, and remember to think of unique items that would make someone smile!
FROM
INDUSTRY FACTS
THE HOME BUILDERS ASSOCIATION OF FARGO-MOORHEAD
Up
3%
4.
31,600 Jobs in construction reported in August
2018
$
MINNESOTA AVERAGE:
$52,730
CONSTRUCTION AND EXTRACTION:
$57,650
28
Degrees in Construction management were awarded in 2015
NORTH DAKOTA MAY 2017 ANNUAL AVERAGE WAGES
$
NORTH DAKOTA AVERAGE:
$48,130
CONSTRUCTION AND EXTRACTION:
$53,660
CONSTRUCTION & EXTRACTION OCCUPATIONS:
CASS COUNTY
7,040 Jobs
MINNESOTA MAY 2017 ANNUAL AVERAGE WAGES
CLAY COUNTY
FARGO
CONSTRUCTION & EXTRACTION OCCUPATIONS:
127 Job Openings
Up
7.6
99,900 Jobs in May 2017
%
CAREER WORKFORCE ACADEMY
Offered by Home Builders Association of Fargo-Moorhead
MINNESOTA BUILDING CONTRACTOR CONTINUING EDUCATION Jan. 31 and Feb. 15, 2019
WHEN:
8 a.m. - 4 p.m.
7:30 - 8 a.m. Noon - 1 p.m. 4 - 6 p.m.
WHERE: Jan. 31
SPONSORED BY
Registration Lunch provided on-site Trade Showcase (CE attendees receive one free drink)
Holiday Inn
3803 13th Ave S, Fargo
Feb. 15
Skills & Technology Training Center 1305 19th Ave N, Fargo REGISTER AND PAY ONLINE: hbafm.memberzone.com/events/calendar
Member Rate: Early/Regular $105/$130 Non-member Rate: Early/Regular $210/$260
Home Builders Association of Fargo-Moorhead 1802 32nd Ave S, Fargo, ND 58103 (701) 232-5846 | summer@hbafm.com | hbafm.com 8 A.M. EXTERIORS: SIDE IT UP (1.5 CREDITS)
Sharp exteriors = curb appeal = sold homes. See the latest in exterior siding including cement, OSC substract siding, wood fiber composite, PVC and vinyl. This class covers everything from storage, tools to use, penetrations, fastening, finishing and more. INSTRUCTOR: BUILDING PRODUCTS, INC.
9:15 A.M. EXTERIORS: TRIM IT OUT (1.5 CREDITS)
Trim accentuates the lines and dresses up your homes. Learn about the different sizes and types of trims, including cement, PVC, wood-fiber and OSB. Get the rules on trimming a home, as well as best practices in fasteners, dealing with flashing and gaps, glazing, painting and cleaning. INSTRUCTOR: BUILDING PRODUCTS, INC.
10:30 A.M. BREAK 10:45 A.M. NOT YOUR GRANDPA’S LUMBER (1.5 CREDITS)
Engineered wood products like plywood and OSB have been around for decades, but this class will take you into the world of engineered wood joists. Learn about this option that can make your homes more affordable and easier to build, while offering sustainability, higher structural value and fewer defects. INSTRUCTOR: BUILDING PRODUCTS, INC.
NOON - 1 P.M. LUNCH (PROVIDED ON-SITE) 1 P.M. HIGH PERFORMANCE HOMES (3.1 CREDITS/INCLUDES ENERGY) Learn the key design areas for best energy savings, engineering a building envelope for savings and sustainability, as well as documenting key features above code for buyers, Realtors, appraisers and lenders. INSTRUCTOR: SOLUTION DESIGN INC.
2:30 P.M. BREAK 2:45-4 P.M. HIGH PERFORMANCE HOMES continued
IMPORTANT DEADLINE MARCH 1, 2019: Deadline for Minnesota contractors to submit documents to Dept. of Labor & Industry for renewal of licenses expiring March 31, 2019. APPROVAL AND CREDITS These courses are pending approval by the the Minnesota Department of Labor and Industry for seven credits of residential contractor continuing education (referenced to the left) satisfying requirements for building contractor, residential remodeling or residential roofing for re-licensure. This includes the required one hour of energy (for all contractors). If an approved class is cancelled, all fees will be returned within 15 days of the date of cancellation. Classes are pending approval for North Dakota Professional Builder credits through the North Dakota Association of Builders. For more on the NDPB designation: www. ndbuild.com.