chalk line
Local builders aim to succeed despite increased competition — PAGE 10
Large Commercial to Small Residential Projects
2024 Board of Directors
OFFICERS
PRESIDENT
Andrew Wheeler, T. Wheeler Homes
VICE PRESIDENT
Jordan Schweiger, Good Well Construction
SECRETARY/TREASURER
Beth Rhoades, C & R Remodeling
ASSOCIATE VICE-PRESIDENT
David Qualls, Parr Lumber
IMMEDIATE PAST PRESIDENT
Oleg Foksha, Foksha Homes
FORMER PAST PRESIDENT
John Hammer, John Hammer Construction
Board Members
Adam Kelley, Neighborly Ventures
Connor Reiten, PNGC Power
Dale Kaufman, Kaufman Homes
Dan Reynolds, Saalfeld Griggs PC
Gavin Radigan, Radigan Remodeling
Jason Flores, Celtic Homes
Jed Bennett, Steve Bennett Construction
Jeff Reynolds, Home Fire Stove
Justen Maron, Olsen Communities
Kayla Van Lydegraf, The Fixture Gallery
Samantha Crabb, Cherry City Interiors & Design
Scott Kelly, Kelly’s Home Center
Mike Erdmann, Chief Executive Officer mike@HomeBuildersAssociation.org
Haley Hamilton, Director of Shows & Events haley@HomeBuildersAssociation.org
Andrea Jenkins, Director of Member Services andrea@HomeBuildersAssociation.org
Roy Shawgo, Director of Safety & Loss Control roy@HomeBuildersAssociation.org
Tracy Mitchell, Contract Accountant accounting@HomeBuildersAssociation.org
Home Builders Association of Marion & Polk Counties 2075 Madrona Ave SE Suite 100, Salem, OR 97302
5 10 14 18 20 22
HBA Tour of Homes • Celebrating Two Years with PWB
National Inroads
Local builders aim to succeed despite increased competition. Member Spotlight
Mike Riddle of Mike Riddle Construction
tel 503-399-1500 | fax 503-399-0651 www.HomeBuildersAssociation.org The Chalkline is published by the HBA and Mt. Angel Publishing, Inc. Designer: Steve Beckner To advertise, call 541-944-2820 or email jerry.s@mtangelpub.com. Cover and inside image of Springwood Estates in Salem by Ashley Russell.
The Home Builders Association of Marion & Polk Counties association of building industry professionals committed to supporting our members. We advocate for balanced, efficient, and responsible development while promoting the social and economic values of homeownership in our community.
Welcome
Hello everyone! I can’t believe we are already into the summer, one of the best seasons to be in Oregon. I would like to start off by saying this is a very special addition of the Chalkline magazine, as this issue will be going out to both HBA members as well as all CCB licenses in Marion & Polk Counties.
To the members reading this thank you for your continued support of your industry’s association. For the non-members reading this, I’d really encourage you to become a member of the association. HBA membership has benefited my business tremendously, as well as the business of hundreds of other contractors and affiliated business in the region. The HBA continually works to protect our ability to do business, fighting against unreasonable rules, restrictions, and codes that makes building homes and running your business more difficult and costly.
I have personally used the many benefits that the HBA offers to their members that will easily save you much more than the cost of membership.
• Health insurance savings with Regence BlueCross BlueShield
• Workers’ compensation insurance savings with SAIF
• Fuel discounts that averaged nearly 50 cents per gallon last year
• Save roughly 50% on blueprinting printing costs
• Discounts on both Verizon and T-Mobile cell phone plans
HBA membership helps you grow your business by networking with others in industry and developing new business relationships.
• Monthly member dinners
• Annual golf tournament
• Networking events
HBA membership provides opportunities to market to consumers and drive additional sales through these special events that are truly some of my favorites.
• Tour of Homes
• Tour of Remodeled Homes
• Mid-Valley Home Show
• Yard, Garden & Home Show
The HBA keeps you informed on changes in the industry and up to date on your continuing education requirements.
• Regular email and print publications from the local, state and national HBA’s
• Free online education for HBA member to meet CCB continuing education requirements
• Lead paint renovator certification classes for those working on pre 1978 housing
• Building code update classes
I encourage you to join online at www.homebuildersassociation.org, or call the HBA at 503-399-1500 to ask questions or get more information.
Sincerely,
Andrew Wheeler
2024 HBA President
Discover the Best in Modern Living: HBA Tour of Homes, July 13th – 21st
The HBA’s 2024 Tour of Homes is almost here! This year’s Tour, presented by NW Natural, invites visitors to explore 15 homes crafted by many of the region’s premier home builders. This annual event, eagerly anticipated by homeowners and enthusiasts alike, showcases the artistry and skill of these builders and their teams of trade contractors and suppliers,
traditional craftsmanship and modern innovation. From classic designs to contemporary marvels, the Tour presents a range of architectural styles and construction techniques, highlighting the builders’ dedication to quality and attention to detail.
Addresses of individual Tour homes will be released on Monday, July 8th on the event website at www.tourofhomes.net. Tour homes will be open noon – 6pm on weekends and 6pm – 9pm
HBA News
Celebrating Two Years with PWB
By PWB Chair Samantha Crabb, Cherry City Interiors & Design
As our local Professional Women in Building (PWB) council marks its second anniversary, we are looking forward to an exciting lineup for the Summer of Second Annual Events! We hope you can take one if these opportunities to discover what PWB is all about.
1. Second Annual PWB Carpool Adventure: July
Join us this July during the Tour of Homes for our PWB Carpool Adventure. We will be touring many of the new homes presented by our HBA builders while creating new connections between members. It’s a chance to mingle, explore, and support our talented builders. Please email me if you are interested in riding along.
2. Second Annual PWB Cornhole Tournament and HBA Family BBQ: August 1st
Mark your calendars for August 1st as we host the PWB Cornhole Tournament, coupled with the first ever HBA Family BBQ. Whether you’re a seasoned pro or a newcomer to the game, grab a partner and showcase your skills in the tournament. Don’t miss out on the delicious BBQ and the
opportunity to chat with fellow members and their families. Register today for an afternoon of friendly competition.
3. Second Annual PWB BuildCamp: August 5th – 8th
Calling all aspiring builders in the Salem-Keizer area! Our PWB BuildCamp, scheduled from August 5th to 8th, invites students from grades 7 to 10 to immerse themselves in the world of construction. Under the guidance of industry professionals, participants will learn hands-on skills while constructing chicken coops. From reading and interpreting plans to mastering electrical work and power tool operation, this camp offers a comprehensive introduction to the building process. Interested in participating or volunteering? Please email me to get involved.
4. PWB Week: September 9th – 13th
Cap off your summer with PWB Week, running from September 9th to 13th. While specific details are still in the works, be ready for a series of engaging events full of inspiration, education, and connection. Keep an eye out for the upcoming schedule.
If you or one of your staff would like to join the Professional Women in Building Council, contact Andrea at the HBA office or you can easily join online at www.homebuildersassociation.org/pwb.
Don’t miss out on the fun this summer with PWB, hope to see you there!
July
July 13th - 21st Tour of Homes presented by NW Natural
July
July 15th HBA Annual Golf Tournament presented by Mann Mortgage (SOLD OUT)
Creekside Golf Club
August
August 1st First annual HBA Member BBQ and 2nd annual PWB Cornhole Tournament River Road Park
September
September 24th Trade Show Night at the Salem Convention Center
Members
Take advantage of these exclusive member discounts. Contact the HBA for information on how to enroll.
Substantial member discounts on health insurance with Regence BlueCross BlueShield of Oregon through the HBA’s Building Industry Insurance Trust.
365 Creative Co.
Ian Koenig (503) 428-4677
Allura
Scott Rowe (503) 896-1803
Best Cabinets LLC
Yelena Obedkov (503) 580-4268
BKH Custom Design LLC
Drew Charles (541) 254-1414
Built Tough Construction LLC
Alex Semerikov (503) 507-4617
Cline Designs LLC
Cristin Cline (503) 866-5021
Cojo Services Excavation and Asphalt
Cody Johnson (541) 409-9848
Last year, members saw average savings of 42 cents per gallon on unleaded gas and 57 cents per gallon on diesel in the HBA’s fuel discount program with Ed Staub Petroleum.
Contract Furnishings Mart
Garrett Anderson (503) 972-3636
Parr Lumber
Corbin Blater (503) 931-8865
Fineline Innovations Inc
Corbyn Kile (503) 428-3209
Habitat for Humanity
Adena Mikkelsen (503) 364-6642
JL Homes NW, LLC
Josh Lowry (503) 871-7746
Keptcar
Mateo Borrego (503) 512-6942
KT Contracting Co., Inc
Members in the HBA’s group workers compensation program with SAIF Corporation gets exclusive member discounts and customized safety and loss control consultation.
Michael Kelly (503) 390-0626
Lakeview Remodeling & Construction
Giesell Diaz (503) 984-5179
Lion’’s Roofing and Construction LLC
Valeria Sanchez (971) 719-9171
LNC Homes
Leonid Snegirev (503) 449-4946
MG Landscape & Construction,Inc.
Ana Magana (503) 519-7116
Pacific Lumber Company
Mitchell Morse (503) 858-9663
Mosaic Studio
Tony Dunham (503) 919-1717
Pettibone Family Construction
Jason Pettibone (503) 269-7013
Wilcox Custom Homes, LLC
Bret Wilcox (503) 569-1819
Willamette Valley Patio Covers
Chris Young (503) 987-2111
NATIONAL INROADS
Local builders aim to succeed despite increased competition
by James Day
Change is a given in the home building industry. Rules change. Customer tastes and preferences change. Building codes change. Access to money changes. And interest rates rise and fall.
Since 2017, the home building industry in the mid-Willamette Valley has seen a distinct rise in national builders entering the market. According to permit data compiled by the Home Builders Association of Marion & Polk Counties, two national builders, DR Horton and Lennar, have captured a 40% share of local single-family home business.
This is not necessarily bad news. The mid-valley and the state clearly need more housing, and the Oregon Legislature has been churning out bills and doling out money in recent years to try to move the supply needle. And when competition becomes a challenge, the challenged get competitive. Local builders have distinct advantages of their own to offer and the upshot is that consumers have more options.
Salem, Woodburn projects
The first major move, said Mike Erdmann, CEO of the Home Builders Association of Marion & Polk Counties, came when D.R. Horton of Arlington, Texas, the nation’s largest home builder, purchased the majority of the lots in northeast Salem’s Northstar subdivision off of Kale Road NE.
“Northstar was a 125-acre subdivision with nearly 700 building lots and was the largest subdivision developed in Salem in decades,” Erdmann said. “The sheer size of Northstar provided
an opportunity for a large, national builder to leverage their economies of scale. About the same time, Woodburn expanded their urban growth boundary by 406 residential acres. “Hundreds of lots in Woodburn were developed, with all of that going to D.R. Horton, Lennar (of Miami) and Richmond American (of Denver). With housing prices in the Portland metro area rising as high as they have, housing consumers are increasingly willing to commute further distances to find more affordable housing, which has made Woodburn and northeast Salem really attractive to those large builders targeting that market.”
Other well-known projects by the nationals, Erdmann said, include Eastpark Village, another massive D.R. Horton project with nearly 650 lots on the site of an old mushroom plant in East Salem. Lennar has done a smaller project in South Salem, a project in Mt. Angel, and has built a large number of homes in Woodburn’s Smith Creek development. D.R. Horton has also been active at Smith Creek.
The COVID factor
The COVID-19 pandemic also played a role, notes Jed Bennett of Steve Bennett Construction in Salem. Bennett once worked for D.R. Horton.
“Where people are living is different now,” Bennett said. “Builders used to do most of their building in major work centers, with the Bay Area the best example. In Oregon, it’s the Portland area. COVID changed all that and home building numbers reflect that.”
Essentially, Bennett said, COVID threw a huge monkey wrench into the conventional wisdom of where people work and live. Thousands of people who used to work in Portland began working remotely, a trend that continued even after the COVID pandemic subsided. People that were commuting because they were priced out of the Portland market found that their commute had disappeared, while others, either abandoning Portland or arriving from elsewhere, entered the housing market in places such as Woodburn or Salem at far better prices than Portland, although they still “worked” in the Metro area.
Coping with change
The inroads made by national companies have not really changed the way that local builders do business. There are a lot more ways to build than in 500-lot subdivisions, and the local guys occupy and work diligently to preserve niches that are challenging for the nationals to match.
First, there is the horizontal vs. the vertical. Some builders emphasize site prep and getting a lot ready to build on. Others go vertical and build on lots developed by others.
“Very few do both horizontal and vertical,” Bennett said. Then, there are the extras and amenities that are possible for builders to employ when working at a smaller scale. Your 500-lot subdivision usually produces three or four styles of construction, but custom builders can go beyond that in terms of amenities and materials.
Or as Erdmann put it, “for builders, that might be strategies such as developing your own land, building at a different price point, offering higher-quality finishes, taking on remodeling projects, focusing on custom jobs, etc.”
And for some builders, just being in the neighborhood longer and perhaps more visibly, can help.
Don Lulay of Don Lulay Homes has been hovering around construction sites since he was 5 or 6 and he has been building for 45 years. “Local” is his niche and he banks on it.
“A lot of local people who have a little acreage will call us before they call Horton or one of the big boys,” Lulay said. “That’s a compliment. We’re local guys building local homes for local people. I’m an ornery guy, and we’re here today and tomorrow.”
Lulay also recognizes that putting down roots in a community takes an investment of time and money and doesn’t always result in immediate benefits. But he believes in the ultimate value of those benefits.
“I donate hundreds of thousands of dollars a year,” he said. “The public sees that we are giving back to the community. Our customers are confident we’re going to be here for the long haul … 45 years is a long time to be building homes. We’re a sure thing.
“We’ve got homeowners we’ve sold to three times in 30 years. We’ve built homes for parents and their kids. That’s a compliment to us.”
Continued from previous page
Subcontractors and suppliers
It’s not just builders who are affected by the addition of national companies to the marketplace. Everyone needs subcontractors to take care of a wide range of functions (electrical, plumbing, HVACS, etc.) as well as reliable pipelines for materials and supplies, Erdmann noted.
“Subcontractors need to be paying close attention to what builders are actively building, especially given that new builders are coming into the greater Salem market on a regular basis,” he said. “ The national builders aren’t the only ones who are building here, with a number of larger regional builders coming in from the Portland area.
“Reach out early and work to get in front of those builders, especially as many may have existing relationships with subcontractors out of the Portland area they may be looking to bring down to this area. Your local presence may provide advantages with lower labor and transportation costs that may help you compete successfully. Recognize that if you’re aiming to work for the higher-volume builders, you’re likely going to need a larger number of employees to keep up with that work.”
The new crop of builders also can put a strain on supply chains, said David Qualls, regional sales manager for Parr Lumber. They also can test your management skills.
“It’s a lot easier to plan for that sort of customer,” Qualls said of the national builders. “We know how to work with them and we know exactly what we are getting into with regard to providing them with materials.”
But you still have to make it happen, and on a much larger scale than normal.
“Your communication needs to be functioning at a very high level and you must be accurate in supplying the things the project requires,” he said. “You need to be in tune with the pace in which they are building so you can be responsive in supplying them – and our other customers as well.”
The Spike Club is an exclusive group of members who contribute to the growth of the association by recruiting and retaining members. Spikes maintain a special status, have the respect of their peers as valued members of the HBA and are recognized for their efforts locally and nationally. To become a Spike, bring in six members to the HBA. Applications for prospective members may be obtained from the HBA office, or call to have one sent to the prospective member.
ALL TIME BIG SPIKE 1500+
John Gooley 2746
STATESMAN SPIKE 500+
Ric McNall 811
SUPER SPIKE 250–499
Mike Smith 487
John Mills 449
Rick Massey 438
Dan Dorn 373
Jeffrey Green 374
Chuck Foster 293
Jubal Frost 281
Mike Riddle 276
Greg Conser 252
Steve Johnson 251
Jordan Schweiger 262
ROYAL SPIKE 150–249
Tom Wheeler 215
Don Druliner 204
Rick Ziebell 175
RED SPIKE 100–149
Kelvin Dettwyler 146
Rob Rardin 127
Brad Moore 100
John Hammer 103
GREEN SPIKE 50–99
Matt Holstege 99
Kent Kaufman 92
Dan Fitzgerald 92
Rich Kansky 85
Eric Olsen 77
Bob Cavell 76
Larry Bilyeu 75
Don Sturgeon 71
Jim Hobbs 48
Michael Devlin 48
Ryan Bloedel 46
Jason Sawyers 41
David Hafner 40
Nolan Fridley 39
Mark Shipman 30
Kathy Temple 65
Kerry Kuenzi 65
Eric Templeton 61
Serge Serdsev 59
Mike Smith 56
Patrick Jackson 56
Randy Melton 51
Oleg Foksha 59
Rich Tovar 50
LIFE SPIKE 25–49
Laura Dorn 29
Kevin Stone 28
Randy Reeves 28
Chad Robb 28
Rich Fry 26
Andrew Wheeler 33
Steve Hurley 26
Hunter Emerick 30
BLUE SPIKE 6–24
Kraig Kelly 25
Peter Strauhal 23
Jason Robertson 23
Brett Tallan 13
Don Lulay 12
Gary Epping 12
Chad Montgomery 11
Ricky Fast 10
Chris Rasmussen 10
Santiago Sarmiento 12
Jim Sparkman 9
Kelli Terjeson 7
Dale Van Lydegraf 7
Samantha Crabb 7
Eric Olson 7
David Qualls 7
Caleb Remington 6
Member Spotlight
Mike Riddle
Mike Riddle of Mike Riddle Construction in McMinnville, was born in Whittier, California, but raised in Salem.
Riddle was an elementary school physical education teacher in Newberg for several years after studying sports medicine and health from 1993 to 1997 at Linfield College. In 2002, Mike began doing remodeling work in off hours for additional income so that his wife, Stefanie, could stay home with their daughter. He had worked for a custom home builder during his summers while at Linfield, so he drew on those skills and his enjoyment of the process.
In 2005, with another baby arriving, Mike retired as a school teacher and transitioned to a full-time builder, adding specs and custom homes to his repertoire. “And the rest is history,” as he puts it, with four children and a healthy business, Mike always says he is “living the DREAM!”
Riddle agreed to a “member spotlight” interview with the HBA.
HBA: Tell us about your business … how many years have you been involved?
Riddle: I’ve owned my own construction business for 22-plus
Age: 49
Residence: McMinnville
Hometown: Born in Whittier, California, but raised in Salem.
Education: Bachelor’s degree from Linfield (1997)
Family: Wife Stefanie and four children
Career stops: Elementary school teacher
Hobbies: Golf, travel, hunting and fishing
years. We do custom homes and remodeling in the Willamette Valley and the Oregon Coast.
HBA: How did you get your start in the industry?
Riddle: I started working for two small construction companies in Salem all through college. We did a variety of remodeling and new construction, and I was able to gain many valuable hands-on skills.
HBA: How has your business benefited from being an HBA member?
Riddle: Being a member for many years now has been one of the best business decisions I’ve made. As a member, I’m part of a large team of like-minded business people working hard to improve our industry and the clients we serve. Together, we are able to move the needle on many important issues and it’s rewarding to be a small part of that effort. I have met many new people, developed many new personal and business relationships and have saved tens of thousands of dollars participating in the fuel program through the HBA. (Editor’s note: HBA members are eligible for gas and diesel discounts with Ed Staub Petroleum).
HBA: What is your favorite thing about being an HBA member?
Riddle: I love the camaraderie, networking opportunities and the feeling of being part of something important in our society.
Member Spotlight
HBA: How would you suggest others maximize the benefit from their HBA membership?
Riddle: The first thing I would suggest is to join right away and sign up for the fuel program. If you never attend any meetings or take advantage of many of the other benefits being a member affords you, you can feel accomplished in that you’re giving back to your industry and community. The second thing I would suggest is come to the meetings, introduce yourself to as many people as you can and see what we’re about. If you’re “in,” reach out to the HBA and ask how you can get more involved.
HBA: Any tips or advice for new HBA members?
Riddle: Just join even if you don’t “feel” like you’re getting anything out of it … your support is critical!
HBA: What’s the best advice you’ve been given during your
building career?
Riddle: Be hungry, humble and smart. Hungry to constantly improve, humble knowing you can always learn and smart with people and relationships.
HBA: What’s unique about you that others probably don’t know?
Riddle: I want to become an owner’s rep someday, traveling this country and working with local builders in creating my client’s dream homes.
HBA: What’s your favorite project you’re working on?
Riddle: I’m building a really challenging home on the Oregon Coast for a family member. They trusted me with the biggest investment of their lifetime and it’s been an absolute blast creating this bespoke masterpiece.
Charles Darwin described it as a masterpiece of engineering, “absolutely perfect in economizing labor and wax.” The use of this shape reflects Hagan Hamilton’s ongoing commitment to proficiency and resourcefulness.
Much like a beehive, Hagan Hamilton is a humming, thriving community in which everyone plays a distinct role but is united in shared purpose. We are industrious, but also operate as a family — working toward something greater than ourselves.
Save Big with HBA’s Blueprint Printing Services!
Did you know the HBA can not only save you money but also make your life a little bit easier? Our blueprint printing services are here to help you get those all-important plans in hand at a fraction of the cost you’d find elsewhere. That’s right, we’re talking roughly half the price!
Whether you need prints on regular or waterproof paper, we’ve got you covered. And size is no issue – we can handle any sized print you need. Think of us as your one-stop shop for all things blueprint related.
Why choose HBA’s blueprint printing services? Here are just a few reasons:
1. Unbeatable Prices: Why pay more when you can get the same high-quality prints for half the cost? D size sheets, 24’ x 36”, are only $1.50 per page – roughly half of what you’ll pay elsewhere.
2. Versatility: From regular to waterproof paper, we cater to your specific needs. Scan, copy or print – we can handle it all.
3. Size Matters: No matter the size of your blueprints, we can print them to perfection.
4. Convenient Submission: Members can simply send their prints to plans@homebuildersassociation.org, or upload very large files to homebuildersassociation.wetransfer.com.
5. Fast Turnaround: We generally turn plans around within an hour.
6. Easy Billing: We offer convenient monthly billing for all your printing needs.
By using the HBA’s blueprint printing services, you’re not only saving money but also supporting your association. Every dollar you spend with us helps strengthen the HBA and the local building community.
So next time you need blueprints, remember to keep it in the family and print with HBA. You’ll save big and get exceptional service from a team that understands your needs.
Safety Update
A Safe Summer Season is Full of S’s
Summer is the season that satisfies. It’s a time of sun and fun. It is also a time to be vigilant about safety. Here are some areas that should be addressed to help make this summer a safe one on your jobsites.
Sun
The summer sun brings with it the potential for heat-related illnesses. It has been two years since the OR-OSHA heat illness prevention rule went into effect. Now is a good time to review your heat illness prevention plan if you haven’t already done so. The rule applies when the heat index equals or exceeds 80 degrees Fahrenheit. Make sure your training has been completed, shade and drinking water are provided, an emergency medical plan and acclimatization plan are in place, and you are prepared for high heat practices when the heat index exceeds 90 degrees.
Smoke
Summer puts us at a higher risk for exposure to wildfire smoke. It has also been two years since the OR-OSHA wildfire smoke rule went into effect. The Protection from Wildfire Smoke Rule applies when employees are or will be exposed to wildfire smoke where the ambient air concentration for fine particulate matter (PM2.5) is at or above 35.5 μg/m3 (Air Quality Index value of 101 for PM2.5).
Make sure your annual training has been completed, exposure assessment and communication systems are in place, and respiratory protection is available for use based on the AQI.
Stress and Strains
Summer is also the time when we have more exterior projects taking place around our homes. These projects, especially
Roy Shawgo HBA Director of Safety and Loss Control
if they involve heavy lifting, can use different muscles, and increase the potential for injury both at home and at the workplace if these strains are exacerbated.
Sports
Outdoor sporting activities can also use different muscles that can lead to stress and strain. Over-exertion can increase the potential for injury. Many times, the effects may take a day or two to manifest. This can make it difficult to determine if an injury was work-related or occurred during non-working hours.
Sleep and Fatigue
With more hours of daylight, employees may get less sleep during the summer. When we are tired, there is a greater risk of accidents and injury due to drowsiness and inattentiveness. When we are tired or fatigued, we may not use the proper posture for lifting, which increases stress on the body and can lead to musculoskeletal injuries.
Smile
Our mood improves during the summer with the abundance of sunlight. It is a time when we can be more productive in both our personal and professional lives.
There are numerous resources available to assist in making sure the S’s of summer are addressed satisfactorily. And that can lead to smiles.
Let’s make the most of the summer by making sure that we do all that we can to stay safe, secure, and smile a lot. The rain will be back before we know it.
Contact Roy Shawgo at roy@homebuildersassociation.org or at 503-898-0051 if you have questions or concerns.