Keystone Builder - Sep/Oct 2008 by Pennsylvania Builders Association

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KohlBrubaker, Building Products Builders Supply Lumber MoyerBuilders Lumber Supply J.H. Inc. LezzerIrwin Lumber MRD Lumber Co.Lezzer Strober-Haddonfield Irwin 8 Locations Bethlehem AllAllLocations All Locations Irwin Both Locations All Locations Group Irwin www.kohlbp.com www.ibspa.com 570-366-0578 www.lezzerlumber.com 610-868-2010 Easton 800-723-5546 www.lezzerlumber.com www.ibspa.com 800-578-5645 724-863-5200 Shellyâ&#x20AC;&#x2122;s Lumber800-326-9562 610-252-6190 800-326-9562 724-863-5200 Kohl Building Products MRD Lumber Co. The Lumber The Lumber Yard Yard All 8 Locations Moyer Lumber Building Supplies Both Locations All Locations All Locations www.kohlbp.com Bethlehem All Locations www.thelumberyard.com www.thelumberyard.com 800-578-5645 570-366-0578 610-868-2010 215-723-5108

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PBA electronic communications add value to membership

6 Examining water-related regulation PBA is fighting to lessen the impact of water regulation for its members

18 Concrete castles ICFs are catching on as a green, energy-efficient alternative to wood

21 PBA members find success in post-frame building Pole buildings move from the farm to suburbs

8 Strategies that deliver sales and profits

23 Make safety your overriding priority

PBA builders explain what works for their companies regardless of the market

Construction remains in the Top 10 of most dangerous jobs

11 Position your company to take advantage of New Ruralism

24 Make the association work for you … me Membership is a tool to make customers’ decisions easier

Rural isn’t your grandfather’s farm in the 21st century

12 Soy green construction Building products made from soybeans are in everything from paint to roofing materials

16 Giving credit where credit is due

25 Member spotlight The Mackeys of Target Homes started out by wanting to build their own home

26 Final word PBA’s secondary endorsed trade program earns $5,000 grant

For the state’s evolving Nutrient Trading Credit program, the devil is in the details as all of the stakeholders try to make it work Keystone Builder cover designed by Chris Anderson

Member Insider Member briefs . . . . . . . . . . . . . . . . . . . . . .A PACAH . . . . . . . . . . . . . . . . . . . . . . . . . . . .B, C On the hill . . . . . . . . . . . . . . . . . . . . . . . . . . .D

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CORRECTION: In the July/August issue of Keystone Builder magazine, Murray Rust, founder of development firm Montgomery and Rust near Pittsburgh, was misquoted. His company has found through its extensive experience building traditional neighborhood developments that people 55 and older do, in fact, enjoy living in TNDs because they like the variety found in communities that house families and people of all ages; they actually don’t want to be isolated in a senior community. We apologize for this mistake.

Keystone Builder

4 Does computer fear prevent you from using PBA benefits?

Volume 5 • Issue 5 • September/October 2008

PBA members enjoyed Las Vega-style games during the summer PaCAH fundraiser. (PBA photo)

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AssociAte Vice president Jim Miller, BIA of Lancaster County secretAry Joe Mackey, Pocono BA treAsurer Richard Clawson, Indiana-Armstrong BA immediAte pAst president Stephen Black, BIA of Lancaster County editor Eric C. Wise Associate editor Chris Anderson

printcomm staff publisher Kevin Naughton Assistant editor/publication director H.J. Hormel Graphic design Jason Gabel Advertising sales manager Brenda Poe Advertising sales Jeff Pinwar • 800-935-1592, ext. 118 Keri Gustafson • 800-935-1592, ext. 133 Address correspondence to: Keystone Builder 600 North Twelfth Street Lemoyne, PA 17043 Phone: 800-692-7339 or 717-730-4380 Fax: 717-730-4396 Web: www.pabuilders.org E-mail: ewise@pbabuilders.org Advertising does not imply acceptance or endorsement of the products contained in the publication. publishing and advertising sales services provided by:

2929 Davison Rd. • Flint, MI 48506 Phone: 800-935-1592 • www.printcomm.com An exclusive publication of the pBA Keystone Builder magazine is published six times a year by the Pennsylvania Builders Association®, Editorial Offices, 600 North Twelfth Street, Lemoyne, PA 17043. With the exception of official association announcements, the statements of fact and opinion that are made herein are the responsibility of the authors alone and do not reflect an opinion or philosophy of the officers or the membership of the PBA. Materials may not be reproduced without written permission from the PBA headquarters. postmAster: Send address changes to Pennsylvania Builders Association, 600 North Twelfth Street, Lemoyne, PA 17043. suBscriptions: Subscriptions available through membership to the Pennsylvania Builders Association.

President’s message

president-elect Gene Kreitzer, Lebanon County BA

By Ray Fertig • PBA President

president Ray Fertig, York BA

Does computer fear prevent you from using PBA benefits?

ach month, about 3,000 people visit the Pennsylvania Builders Association web site at PaBuilders.org. Chances are you are not one of them. Nearly 4,000 people receive each issue of PBA’s electronic newsletter, TradeSecrets. Again, chances are you are not among them. How do I know? Quite simply since PBA has about 9,000 members, web site visitors and TradeSecrets subscribers are in the minority. What puzzles me is why members decline electronic benefits. The generations now buying their first homes – Generation X and the Millennials – are the most computer savvy and best-connected adults. Builders and remodelers seeking to stay in business should consider the habits of these generations. But it’s equally important that builders – typically slightly older folks – stay connected to keep up with their association. It’s high time we members got over our computer fears and started taking advantage of all the electronic communications from PBA. PBA publishes lots of information on its web site, including countyby-county building permits, industry news, details about the association’s events and programs, and the model building contract. In addition to the bi-weekly TradeSecrets, PBA gathers and distributes daily news clips to hundreds of members interested in home building-related news from around Pennsylvania. It’s a free service for PBA members, who would pay thousands of dollars each year if they bought the service individually. PBA also publishes Baywatch, which updates members about the implementation of the Chesapeake Bay Tributary Strategy, which could severely limit building within the watershed as wastewater treatment plants face strict limits on nutrient discharge. In addition to these regular updates, PBA is planning an electronic green building newsletter and periodically sends other reminders of member benefits via e-mail. Tired of missing out? Contact Eric Wise at 717-730-4380, ext. 3003, or by e-mail at ewise@PaBuilders.org to sign up for these electronic member benefits. s

I Keystone Builder • september/october 2008

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Examining water-related regulation By M.H. Morrison ennsylvania Builders Association has been working diligently on a multi-front campaign to lessen the impact on members of increased regulations that have been advertised as protecting and improving water quality.

Setting an example in Pike PBA has been working to negotiate an industry standard that improves the plumbing portion of the Uniform Construction Code without being onerous. Recently, PBA and Pike Township have been collaborating on the municipality’s private well regulations, according to Frank Thompson of Sweet Water Builders, based near Pittsburgh. Thompson is PBA’s representative to the National Association of Home Builders executive committee and chairman of PBA’s UCC task force. Thompson said that he and others are trying to find realistic standards for private wells that can be applied across the commonwealth. In the case of Pike, the present ordinances are “extreme” and would negatively affect builders and individuals in terms of the cost of compliance and the volume of paper work. As he and others have looked at the state’s private well regulations, they discovered that neither the Department of Environmental Protection nor the Department of Health has any regulations for private wells. The International Plumbing Code (which is part of UCC) sets limited well standards, but they are less than what is considered general industry standards. The code has requirements that relate to depth, well construction and testing, but they are limited. The goal is to create a reasonable standard that can be used by all of the state’s municipalities for an efficient, safe and economical approach, Thompson said.

New stormwater regulations DEP is in the process of updating regulations (specifically Chapter 102) that address the control of stormwater to prevent erosion and sedimentation before, during and after earth disturbances. As of this summer, DEP staff reported that they were still working on the draft regulations. The main cause of the slow pace was the proposed mandatory buffers along areas adjacent to a stream, river, pond or lake. A PBA task force is reviewing and commenting on these regulations, especially in regard to mandatory buffer zones. PBA members are concerned about how the size of buffers will be determined based on what standards and considerations, such as water-body quality, location, elevation, development requirements, previously approved development and established best management practices. Also up for discussion and clarification is the transfer of the long-term operation and maintenance responsibility for buffers from developers to other parties once the developer has finished a project. PBA members have concerns about whether developers would lose developable land to buffer zones. 6

One additional development in the ironing out of the details for these buffers has been the creation of a “Buffers 100” campaign by a group of Pennsylvania environmental and other organizations. This initiative has called for mandatory 100-foot forested buffers on all Pennsylvania rivers and streams.

Total maximum daily load As part of the Clean Water Act (dating to 1972), DEP will release new standards for total maximum daily loads, which are the maximum amounts of various substances (including excess nutrients and toxic pollutants) allowed in various Pennsylvania water bodies. Scott Cannon, president of Cannon Custom Homes in Delaware County, and a member of the PBA’s Developers Council, said that the general concept is good, but there are concerns, specifically at what levels the TMDLs will be set and the method for arriving at these numbers. If the solution is to set the parameters by a “rule of thumb,” then they may be unrealistic or undoable for specific water bodies. For example, what if the levels chosen by the department are equal to what is already in the waterway. This may mean that the developer or land owner must clean up water before any construction can be started, or find a solution that creates no additional runoff. “It’s amazing what we’ve done to improve the environment over the last 20 years,” Cannon said, but those improvements were created from solving issues that he termed “low-hanging fruit.” To Cannon TMDLs are “splitting hairs” and will create very small incremental improvements, while increasing the cost of housing. “It’s unfair to the young people,” he said. “We just keep piling these [costs] on.” s

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Strategies that deliver sales and profit PBA builders explain what works for their companies regardless of the market. By M.H. Morrison hile no one way is the best to do business, PBA members share strategies that have worked to provide continuing growth and satisfied customers.

Great Lakes Construction: Big screen showroom Trying to picture what a home’s new siding will look like from a two-inch-bytwo-inch sample is tough. Michael Tarasovitch, president of Great Lakes Construction of Erie, said that even after decades in the business, he finds it a hard task, at least without using his company’s 40-inch LCD TV and large-scale showroom. With a few clicks of a button, the sales staff for the exterior remodeling company can show a homeowner the color and style options for a variety of products as they would look on the customer’s own home. “It’s true color and it’s their house,” Tarasovitch said. The pictures of the client’s home are snapped when initial measurements are taken, then loaded into the system prior to the first meeting. The virtual display, which can show colors and styles from various manufacturers, is the centerpiece of the company’s 6,500-square-foot showroom that Tarasovitch describes as a “supermarket for our products.” It’s all meant to help the customer make a decision, and it works. Tarasovitch said that despite today’s challenging economy, the company is 33 percent ahead of last year. “Our showroom builds trust and credibility. When they see the whole package, it’s basically sold,” Tarasovitch said.

Conner Construction: Cost plus business system Renovation projects at Conner Construction, New Castle, start out as 8

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A 40-inch LCD TV and large-scale show room at Great Lakes Construction of Erie allow homeowners to see exactly what their choices will look like.

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any other: by giving the customer the scope of the work and its cost. “The cost plus comes in when we go in and buy the materials,” said Jim Conner, company president. He scours suppliers to find the best prices for materials and determines the sub-contractors’ fees and his anticipated outlay for labor. To this he adds the company’s mark up, which covers overhead and profit. One of the positives of this system for the customer is that when materials are bought by Conner at a discount, he passes the savings on, which reduced one customer’s costs by $7,000. “I have to spend a lot more time shopping on my end,” Conner said, but it has worked well for the company, which has remained busy. He also spends a lot of time with customers helping them make good economical choices by knowing which companies give the best value for the dollar. But Conner’s system isn’t done there. He goes over the numbers with his customers on a weekly or bi-weekly basis,

providing them with invoices and time sheets for employees. He can tell a client exactly what it has cost to move a wall, for example, and why the project is or isn’t on budget.

Excel Interior Concepts & Construction: One-stop and six-phase design/build Jim Mirando Jr., president of Excel Interior Concepts & Construction, Lemoyne, has convenience for customers all in one showroom. “We have a 6,000-square-foot showroom where clients can see displays and samples of cabinets, countertops, tile, flooring, fixtures, etc.,” he said. In this one-stop design/build showroom, customers make all of their selections. This system, which is highly efficient, has resulted in fewer production headaches by allowing the company more control over the selection process. Another innovation at Excel is the sixphase design/build process. “We’re able to convert a phone call lead into a fully specified construction agree-

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ment in six weeks,” Mirando explained. Next the staff-led carpenters begin construction in six to eight weeks after the construction agreement is signed. “In spite of the shaky economy, we’ve actually increased sales this year,” he said. The company has designers and carpenters on staff, delivering professional, efficient and consistent results. Another advantage is that Excel designs the project from start to finish with every detail specified before work begins. “Clients want – demand – convenience and professionalism. Our process and showroom deliver both,” Mirando said.

In business for 19 years, Dormann said that for the last eight, he has used design/build, which was created over a number of years. The process begins with a meeting between S&D, the client and the architect. This initial meeting takes about two hours and costs the potential customer nothing. After that, S&D gives customer pricing on the design/build process, which outlines each step in the process. At any point, the customer may say no to moving forward, but 99 percent go through the entire process.

Knowing the cost early in the process, Dormann said, makes clients feel more comfortable with his company and has reduced the number who have gone to other contractors or solicited additional bids on the project. In addition to customer satisfaction, the design/build approach also has allowed S&D to achieve another goal, ensuring that design and cost issues are resolved before the final design is created. s

Spectrum Group and Affiliates: One-stop for customers The long list of services provided by Spectrum Group and Affiliates is what makes the company uniquely able to provide its customers with a one-stop experience for home selling, buying, building and renovation. Ken Snyder, president of the White Hall company, said he began as a construction company about 15 years ago, after working as a real estate broker for decades. Now, Spectrum has many “pots” going at any one time, which allows for control of the transaction, no matter the customers’ needs. For example, Spectrum may help a client who wants to build a home sell the old one. Through partnering, the company also can offer financing, settlement services and insurance. “It’s a one-stop arrangement. Everything complements” each other, Snyder said. By bundling its services, Spectrum is able to offer its customer a discount on fees. While over the last two years, Spectrum has increased the marketing of its renovation business to its client base, Snyder said that they have not ignored the new home business. The company is working on the paperwork to have its spec homes Energy Star certified. Another initiative is placing guarantees on the heating oil that will be required by these new homes.

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Position your company to take advantage of New Ruralism

By Jeffrey Burton ost home builders in America will take one look at a rural market and run the other direction. They’re missing a very viable avenue for profits these days, because the 21st century definition of rural isn’t your grandfather’s farm. Thanks to the power of information technology to connect any two points in the country, biotech companies, manufacturing plants and Internet powerhouses – to name a few – are searching to set up business in these once-isolated markets. The movement is called New Ruralism, and it represents a hidden gem for developers looking to survive in tougher times. Emerging real estate markets offer tremendous opportunities, such as pentup demand, affordable land prices and less resistance to development if it benefits the community. On the other hand, there are also real obstacles to jumping into these rural markets, including smaller economies, short building cycles, lack of experienced contractors and higher shipping costs. Professional builders need a game plan to navigate these markets. Here’s the blueprint.

The migration drive New Ruralism isn’t about bedroom communities ringing the perimeter of major markets. “Rural” in this context means a nonmature market: Approximately 30,000 people with a blue collar work base – with some professionals, perhaps, and a handful of employers. Folks here don’t drive to

Here’s where you come in

their job in the city; it’s in their backyard, around the corner or in a home office. When a market like this starts to expand — whether because a new employer is coming to town, a local military base needs more housing or the town was just listed by a national magazine as “one of the best places to retire” – experienced residential developers can be a knight in shining armor. These markets are typically dominated by small local builders. But this is their first opportunity to build more than one house at a time, and the large demand calls for knowledge of supply chains, contracting on a vendor level, leveraging, bank loans and sustainable design as opposed to driving over to the lumber store to put in an order for sticks. These local builders may have one or two nice amenities featured in their portfolio, but from an experienced buyer’s point of view, the choices are limited. They want heated tile floors in the bathroom, jetted tubs and professional kitchen appliances.

The situation begs for small- to medium-sized tract and production builders who know how to deliver quality and variety in a cost-efficient manner. For example, a company with a modular business structure, which means it has established centralized purchasing and national contracts based on overall volume, for starters, goes a long way in bringing both affordability and stability to the housing boom. So, what’s in it for the experienced builder? If you can find the right rural market, one poised for rapid growth with low barriers to entry and shortterm potential, here are the advantages it may offer: • lower land costs • predictable short-term cycles • market-share dominance potential • less organized competition • market access efficiencies • partner-ready municipalities Local political leaders can learn to appreciate your outside expertise, if you demonstrate a willingness to build social capital in the community. Many rural markets are wary of gypsy builders who swoop into town, throw up homes at the lowest price and then ride off into the sunset clutching their profits. They are looking for a development partner, one who is sensitive to rural design and local or regional political sensitivities. However, that doesn’t mean you can’t leverage your experience in urban or suburban markets. Continued on page 13

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Soy-green construction S By M.H. Morrison oybeans aren’t just for tofu anymore. This versatile plant now being used for a wide variety of everyday items, including green adhesives, coatings, lubricants and plastics. A major benefit of using soy-based construction products is that they meet several green building standards. To maximize the plant’s industrial potential, the United Soybean Board has pumped millions of dollars into research and development of new soy-based products. While many of these products are still more expensive than petrochemical-based materials, prices will drop as the market grows, some industry experts predict.

or wood, while Green Planet Paints are colorful alternative for walls. The SoyCrete for concrete and the AcriSoy for wood are recognized green building solutions and can replace highsolvent content or acidbased stains. Green Planet Paints are soy-based resins at their core with zero volatile organic compound ingredients that are selected to minimize the product’s environmental impact. The company uses mineral pigments, not synthetic colorants, to create its colors.

Color it soy

Soybeans stick together

SoyCrete and AcriSoy are two choices for staying green when staining concrete

The use of soy-based glues can lower or remove volatile organic compounds in plywood or particle board. Since the 1940s, the wood composites industry has used synthetic adhesive resins to bind wood pieces into composites. But recently a professor from Oregon State University created a soy protein that resembles the adhesive properties of mussels. Hercules Inc.

has provided a critical curing agent along with the expertise to apply it to the commercial production of plywood. Together, they have created soy-based adhesives to produce costcompetitive plywood and particleboard for interior uses. The soy-based adhesives do not contain formaldehyde or use formaldehyde as a raw material.

Insulating with soy BioBased Insulation as its name implies is a biologically based polyurethane spray-foam insulation. The waterblown soy product will seal a structure’s thermal envelope, making it more energy efficient and healthier than traditionally insulated homes.

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new rurAlism Continued from page 11

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Since its introduction in 2006, the company’s BioBased 1701 is the first spray-foam closed-cell insulation to pass the stringent Greenguard and Greenguard for Children & Schools certification standards for indoor air quality, with its use of Agrol, a 96 percent pure soy polyol, as component of the final product. This insulation is Class 1 fire rated and a Class II vapor retarder at 2.5 inches. It has an R-value of 19 at 3.5 inches.

The Environmental Liquid Membrane System is revolutionizing the industrial/ commercial roofing market with agricultural oil-based polymers that outperform petroleum-based products. These 100 percent waterproof liquid membranes are designed to hold ponding water, and are Cool Roof Rating Council listed. With its single-coat application, this membrane system is cost competitive. It also meets and exceeds the Class A flame rating for low-slope roofing. s

Walking on soybeans Soy-based carpet backing, Biobalance Polymers, is manufactured by Dow Chemical, and is typically used in hightraffic and frequently cleaned areas because of its durability. Biobalance incorporates soybean oil into its formulation to replace a portion of the petrochemical-based backing system. Additional research is under way to evaluate the same technology for attached foam carpet padding.

SoyCrete and AcriSoy www.ecosafetyproducts.com Green Planet Paints www.greenplanetpaints.com Hercules Inc. www.herc.com Dow Chemical www.dow.com/carpet Biobased Insulation www.biobased.net Environmental Liquid Membrane System www.greenproducts.net/products/ products.html

Although this may be their first foray into true zoning issues, building regulations and subdivision maps, most smalltown and rural county officials want to study up and make the right decisions for their communities. You’ll make a good impression by presenting a strategic planning approach, such as a master plan with phasing to ensure you don’t overbuild for the market. Emphasize sustainable housing approaches. Most rural builders don’t integrate green building into their homes, so differentiate yourself. More sophisticated builders are accustomed to providing amenities, such as parks, trails and open space that will give them an edge in the entitlement process. But take care to introduce new building concepts such as mixed-use gradually to educate the market. There are other advantages that tract and production homebuilders can introduce into the rural market, using every tool they’ve learned in larger markets to drive down cost: • strategic planning • sustainable business modeling • business intelligence • systems, modeling and planning • diagnostic analysis • sociographic-based decision making • nationally leveraged purchasing activity Is New Ruralism the solution for everyone? Of course not. If you are not prepared to work quickly with slimmer margins, a slower absorption rate and a finite opportunity horizon, then rural development quickly can become an operational headache. But those willing to do their homework before exploring this new world will discover a steady work load and very appreciative customers. Your company’s bottom line will thank you, too. Jeffrey Burton, president of American Dream Development, has spoken on New Ruralism at the International Builders Show and PCBC. He is available for consulting with towns, developers and builders on New Ruralism. He can be reached at 785-410-6018 or jburton@ adreamdev.com. s

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MeMberInsIder September/October 2008

Member briefs

Kreitzer pres .-elect; Mackey named secretary On July 26, Pennsylvania Builders Association’s board of directors elected Gene Kreitzer, the 2008 PBA vice president, as the association’s president-elect. Kreitzer, a member of the Lebanon County BA, will assume duties as PBA president in January. The board also accepted the resignation of Chauncey Wirsing, who had served as PBA secretary. Joe Mackey of the Pocono BA will serve in Wirsing’s place for the remainder of 2008 and will appear on the ballot in November for 2009 vice president.

Venema, Eberly vie for PBA secretary Ray Venema, West Branch Susquehanna BA, and Larry Eberly, Franklin County BA, will appear on the ballot in November, running for the office of PBA secretary. Serving as PBA secretary is the first of three steps toward becoming president of the association. Paul Graham, Lebanon County BA, and Jim Pigott, York County BA, are running for associate state director to National Association of Home Builders. Rob Jones, Central Susquehanna BA, and Eugene Minnick, Central Susquehanna BA and West Branch Susquehanna BA, are running for alternate associate state director to NAHB. Other PBA members running uncontested are Jim Miller of Lancaster BIA, PBA associate vice president (second year); Joe Harcum of Wayne County BA, PBA treasurer; Stephen Black of Lancaster BIA, NAHB state representative; Herb Miller of Lancaster BIA, builder state director to NAHB; and Ray Venema, West Branch Susquehanna BA, alternate builder state director to NAHB.

Meet the Builder set for Oct . 16 in Reading Imagine making as many business contacts in one night as you can make in months. Imagine more competitive bids and finding new suppliers and subs. Now, stop imagining and attend Meet the Builder! Joe Galantino, a 2007 Meet the Builder attendee, said “I walked out [of 2007’s Meet the Builder] with multiple jobs. It’s definitely worth the price and even a drive across Pennsylvania.”

PBA’s 2008 Meet the Builder event will be 6-8 p.m., Thursday, Oct. 16, at the Sheraton Reading Hotel in Wyomissing. Meet the Builder is a trade show-type event during which associate members meet the region’s top builders. Associate members ($75 per person) have three minutes to meet one-on-one with builders, allowing time to introduce themselves and their products or services. Builders (who attend for free) gain exposure to a diverse group of suppliers, ensuring that their current vendors’ bids are competitive. This year’s Meet the Builder will focus on members from Berks, Lancaster, Lebanon, Lehigh and Schuylkill counties, although all other members are encouraged to attend. For more information and to register, visit www.PaBuilders. org or contact Chris Anderson at PBA at 717-730-4380, ext. 3011, or via e-mail at canderson@PaBuilders.org.

Energy bill allows green-building choices NAHB’s green-building standards are among those that will qualify for certain grants and loans under the Alternative Energy Investment Act (Special Session House Bill 1), which was passed by the state House and Senate July 4. An earlier version of the bill recognized only LEED standards for green construction, but an amendment added other accepted standards. The inclusion of NAHB and other green-building standards is vital in gaining recognition for cost-effective green-building standards accessible to a larger share of Pennsylvania homebuyers. In contrast, other costly standards are priced out of the reach of thousands of Pennsylvania families. The bill, signed into law by Gov. Ed Rendell on July 9, allocates $25 million for residential green-building grants and loans. In total, the legislation will provide $650 million in a variety of grants and loans. PBA’s government affairs division currently is evaluating the law to identify new business opportunities it provides for our members.

PBA recognized for Fair Share involvement PBA has received the 2008 President’s Award from the Pennsylvania Association of Conservation Districts for its work in the Pennsylvania Fair Share for Clean Water Coalition. Continued on page D member insider • Keystone Builder

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PaCAH nets more than $54,000 during one weekend

ennsylvania Builders Association would like to thank everyone who helped contribute to making this year’s Pennsylvania Committee for Affordable Housing fund raisers a success! PBA members contributed more than $54,000 to PaCAH during its events and Board of Directors meeting in late July. This year’s PaCAH events – the Central PA Pleasure Ride, PBA Clay Shoot and the Las Vegas Night – netted nearly $22,000 for PaCAH. In addition to the fund-raising events, local associations presented checks totaling more than $31,000 during Saturday morning’s board meeting. Gifts to PaCAH are used to make contributions to political candidates who support housing-related issues.

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Alternative Energy Act recognizes alternatives in green The Alternative Energy Investment Act, as noted in TradeSecrets, will recognize different green building standards, including the National Association of Home Builders’, which was endorsed in March by PBA. Background: Special Session House Bill 1, the Alternative Energy Investment Act, sponsored by Rep. Eugene DePasquale, D-York, has been signed into law. This comprehensive green building and alternative energy grant and loan program was amended to change green building standards to accommodate NAHB green-build standards. Proposal: In addition to the standards, the new law includes $650 million in funding for loans, grants, reimbursements or rebates. Specifically, there is $25 million for residential green-build projects; $100 million for solar-energy projects; $25 million for geothermal technologies; and $92.5 million for the purchase and installation of consumer energy conservation projects. PBA reaction: PBA supports the legislation as passed, because it has several components that will benefit members.

On the hill

Fixing what the Supreme Court broke PBA and other interested groups have been working this past year on fixing two Pennsylvania Supreme Court decisions that affected land-use ordinances and land-use decisions. Background: Rep. David Kessler, D-Berks, sponsored House Bills 1329 and 1330 to address two Supreme Court decisions. These cases held that if a municipality failed to comply with required notices to the public, then the ordinances or land-use decisions were void from inception and had no validity Enacted bills: HB 1329, now Act 39 of 2008, amends the Municipalities Planning Code creating a process for land owners to provide optional duplicate public notice in cases where they believe the municipality may have failed to provide the required public notice regarding their land-use approval. HB 1330, now Act 40 of 2008, amends the Judiciary Code and creates a new process for municipal public notices for zoning change ordinances and a timetable for an individual to challenge the validity of that zoning ordinance change. PBA reaction: As an active participant in working on the planning code, PBA is in favor of the changes that we have helped create, which will help members and streamline the land-use process

Ending realty transfer tax double dipping New regulations and their interpretations from the Department of Revenue could mean paying double real estate transfer taxes on the same piece of land. Proposal: PBA along with the Philadelphia Bar Association and several other organizations are drafting a fix to clarify and make fairer existing RTT regulations. It is the belief of the organizations that the department is applying these regulations in ways they were not intended. PBA reaction: PBA is, of course, opposed to what some say will amount to double dipping under the new regulation and interpretation. The association is also concerned about how this issue will affect housing affordability.

memBer Briefs Continued from page A

The award, given during PACD’s annual awards banquet in late July, went to all five partners in the coalition. Other coalition organizations are the Pennsylvania Municipal Authorities Association, the Pennsylvania Farm Bureau, the Pennsylvania Association of Conservation Districts and the Chesapeake Bay Foundation. The Fair Share coalition was organized to improve the Chesapeake Bay Tributary Strategy. d

The group has advocated for legislation to address funding for sewage treatment plant improvements, along with agricultural and conservation district programs, to reduce pollution flowing into the Chesapeake Bay. The coalition also aims to reform the state’s nutrient credit training program to allow for future housing development.

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Add it up

BENEFITS. LOTS OF BENEFITS. THAT’S WHAT PBA PROVIDES. GO AHEAD, ADD ‘EM UP — YOU’LL SEE MEMBERSHIP MAKES SENSE, AND CENTS. PA One-Call • Member Rebate Program • Housing news clips • Hire a lobbyist to advocate • Buy Now co-op advertising program • Access to regulatory consultant • Access to UCC consultant • PBA educational seminars • Keystone Builder magazine • TradeSecrets e-newsletter • Discounted rates on PHRC seminars • Access to PR consultant • Associates Council • Developers Council • Networking opportunities • Aflac medical / disability insurance • Web site with homebuilder info • Insurance programs • Workforce training certification • Access to PBA field representative • Marketing advantage • Builders Gala • Office supply discounts • Discounted insurance rates • Issue advocacy • program • Industry Action Fund

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Giving credit where credit is due For the state’s evolving Nutrient Credit Trading program, the devil is in the details as all of the stakeholders try to make it work. By M.H. Morrison and Grant Gulibon ennsylvania’s Nutrient Credit Trading program was created as a vital part of a plan to reduce nutrient levels as required under a federal mandate and agreement signed by governors of states whose waterways feed the Chesapeake Bay. Unfortunately, the program has been slow to generate much support among many of its potential users. The Nutrient Credit Trading program is one element of the Chesapeake Bay Tributary Strategy, a policy that was developed by the Department of Environmental Protection to address the state’s commitment to reduce nutrient (primarily nitrogen and phosphorus) and sediment pollution to the bay by 2010. The Environmental Protection Agency expects that the deadline will be missed, which would trigger the development of even more stringent water quality requirements for the bay and its tributaries.

Trading in a nutshell Under the trading program, sewage treatment plants and developers would be able to buy nutrient “credits” to achieve required reductions. Credits are defined as a pound of reduction in nitrogen or phosphorus levels and are valid for one year. These credits can be generated in a number of ways, but the primary method is expected to be through agricultural best management practices that have been designed to reduce nutrient runoff. Despite the presence of the program, the vast majority of the state’s treatment plants in the bay watershed plan to meet their nutrient limits via capital upgrades, rather than relying on credit trading. This result has led a number of trading program stakeholders to propose reforms that they believe will address continuing concerns with its design and implementation.

Slow to start So far, Red Barn Trading Co., an offshoot of Red Barn Consulting, Lancaster, 16

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Removing chicken manure from the Chesapeake Bay watershed has earned Red Barn the only nutrient credits authorized by the state Department of Environmental Protection.

is the only aggregation company with certified credits, and it’s been that way for past three years, according to Peter Hughes, company vice president. Red Barn has chicken manure removed from farms in the bay watershed and spreads it on nutrient-poor land outside the watershed. Removal is coupled with best management practices on the farm from which the manure was removed. Hughes said that he already has 500,000 certified credits that are generated by 20 farms, although the market of buyers is almost non-existent. He added that at current credit prices, it would cost $63 annually in credits to offset the additional annual nutrient discharges associated with the average house.

It’s working, it’s working Ann Smith, nutrient trading coordinator for DEP, said there have been four contracts entered into for credits including one by Fairview Township in York County, which has purchased 20,000 credits per year for the next 15 years. John Hines, executive director of water planning for the DEP Bureau of Watershed Management, agreed that there needs to be a market of buyers, which is going to take time, but to him the program has made amazing strides in the three years it has been in effect. “It’s very functional. We [the department] believe the program will continue to evolve,” Hines said and explained that’s why the program has been devel-

oped as a policy document, rather than through regulation.

Working is all in the eye of the beholder The trading program also was meant to provide a mechanism for the pollution discharges to the bay associated with new projects to be offset by corresponding reductions elsewhere, which would then have to remain in place for the long-term, based on permitting requirements. Matthew Ehrhart, Pennsylvania executive director of the Chesapeake Bay Foundation, said that this issue of risk in terms of future availability and future price of credits has led to discussion of adding a nutrient credit bank to the program. According to Grant Gulibon, PBA regulatory specialist, adding a banking option to the trading program is intended to address several of the biggest roadblocks to its wider use. Under the current system, individuals who might be willing to use BMPs to reduce pollution by amounts large enough to generate credits have been hesitant to make the necessary investments without knowing that there are buyers for those credits. If a bank were to be created, a credit generator could sell those credits to the bank and use the funds they receive to invest in additional BMPs, which could generate more credits to sell. On the flip side, credit buyers have to be certain that there will be a volume of

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credits available that fits their needs and that will be there for the duration of the need, which can be as long as 15 to 20 years. A bank could guarantee that credits will be available for as long as they are needed for a given project at a fixed, predictable cost. The future availability and price of credits affects not only future housing development, but also commercial development and overall economic growth. Ehrhart said that there is concern that industries may be hesitant to locate in certain areas of the state when there are questions about how credits will work and if they will be available. The Pennsylvania Municipal Authorities Association does not see the trading program as the sole solution to the bay’s nutrient problems, although the group has said that parts of the trading program are well-thought out and innovative. It believes that adding a nutrient credit bank to the program will improve its functionality. Like PBA, PMAA supports providing tax incentives to farmers for conservation practices that can generate nutrient reduction credits. PMAA has also called for a dedicated state funding source to address

Chesapeake Bay problems, pointing to the solutions adopted by neighboring states. Maryland has enacted a “flush tax” to assist with bay-related pollution reductions, and Virginia has included monies in its general fund for this purpose.

Coalition obtains bay funding, presses for trading program changes In early April, a coalition consisting of PBA, PMAA, the Pennsylvania Farm Bureau, the Pennsylvania Association of Conservation Districts and the Chesapeake Bay Foundation was formed to seek funding for sewage treatment plant upgrades and agricultural improvements intended to help meet the requirements of the Tributary Strategy as well as the addition of a nutrient credit bank and other reforms to the trading program. The coalition was successful in obtaining more than $1 billion in funding for sewage treatment plant upgrades statewide, with priority being given to projects in the Chesapeake Bay watershed. This additional funding has the potential to limit the size of possible future

increases in sewage rates for affected future home buyers and/or tapping fees for home builders. One of the funding bills would allow nutrient credits to be purchased with a portion of the funds made available to sewage treatment plants, thus encouraging the use of the trading as an alternative method of nutrient reduction and improving the trading program’s viability as a means of providing for future growth and development. While reform of the trading program was not considered as part of the budget process, state Sen. Patricia Vance, R-Cumberland, introduced Senate Bill 1493, the Nutrient Credit Trading Program Act. The bill would allow for stakeholder and legislative input into the design of the program through the regulatory process; would establish an independent board to buy, sell and generate credits (the “bank” sought by the coalition members); and would stabilize the nutrient trading program so nutrient credit buyers could be assured credits would be available during compliance. A hearing is expected on the bill in early September. s

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to of september/october 2008 • Keystone Builder

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Building concrete castles By M.H. Morrison he Big Bad Wolf would have a tough time with a concrete home, and the sturdiness of the material is one of its many advantages. While slow to catch on in Pennsylvania, the use of insulating concrete forms and similar products is increasing as a way to cut energy costs and up the green quotient in construction.

Going with ICF Michael Adsit, president of Lattimore Construction, Melford, said he began using ICF about seven or eight years ago. About two years ago, the company built its first concrete home, despite there being few standard house designs for using the product. Since then Adsit has tracked that home’s utilities and determined that the concrete home requires about half the energy of a wood-framed house. In general, he has found that consumers are more aware of concrete houses from watching television programs or reading magazines. He also has found resistance from the industry because it is a different building system. “Home owners are aware of the more striking benefits” of ICFs, said Dave Farrington, vice president of the Pike County Builders Association and partner in SolutionPro EnergySmart, Shohola. “The green movement has enhanced ICF and the price of oil has enhanced interest.”

ICF breaks even Farrington said that just a few years ago the cost of building an ICF home was significantly more, but that cost difference is shrinking. Add to that the increase in utilities, and for home owners, the final monthly cost difference between an ICF and a wood-framed home is negligible, according to the Portland Cement Association. Adsit said that ICF construction calls for some adjustment. The differences in the width of ICF has meant find18

The concrete/ICF advantage • Concrete resists fires and holds up against storms, which may lower homeowners’ insurance policies. • Recycled materials can be used in the concrete mix. • Concrete/ICF offers an airtight, energy-efficient alternative to wood, which can rot and be damaged by insects. • Particleboard often contains volatile organic compounds that off-gas for years. ICF does not cause this problem. • Concrete homes offer unmatched durability without sacrificing choice of exterior “look.” • Concrete/ICF makes a superior sound barrier.

ing custom or customizing windows and doors. However, as ICF gains in popularity there are more ancillary products being marketed. On the plus side, Adsit said that in terms of call backs, ICF is superior to stick-built. Typically, his company, like others, returns to a newly constructed home for nail pops and similar issues, but not so for the concrete homes he has completed. Farrington said that once a builder uses ICF a few times, he will realize how fast the construction process can go. He said he knows of one company that changed to ICF for retaining walls because ICF installation goes so much faster than building with concrete blocks.

ICF is the new green Farrington said that using ICF can be a distinct advantage in getting certification under the National Association of Home Builders Green Building Standard. The list of green attributes is rather lengthy and includes the product’s energy efficiency, which is created by ICF’s air-tight thermal envelope.

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NAHB also gives weight to the product’s recyclability, the use of recycled products (in some ICF) and its lack of off gassing.

ICF changing the future? “The beauty of ICF is that you’re not limited,” said Farrington, who pointed out that the construction material can be used to build tall walls, cantilevers, virtually anything that can be done with wood. Adsit said that the ongoing cost of energy will substantially change how the industry builds houses, in general. “I’m almost predicting that wood frame is a dinosaur.” s

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A partnership between PBA, HBA of Berks County, BIA of Lancaster County, Lebanon County BA, Lehigh Valley BA and Schuylkill BA

2008 Meet the Builder 6-8 p.m. • Thursday, Oct. 16 • Sheraton Reading Hotel

You’re three minutes from new business Imagine making as many business contacts in one night as you’ll make in months. Imagine more competitive bids and finding new suppliers and subs. Now stop imagining — attend Meet the Builder!

What is Meet the Builder? It’s a trade show-type event where associate members meet top regional builders. Associates have three minutes to meet one-on-one with builders, allowing time to introduce themselves and products.

of suppliers that ensure their current vendors’ bids are competitive. Associate members ($75 per person) can meet more than 20 builders in two hours, forging new relationships and possibly leaving with contracts in hand.

Does this event really work? YES! Joe Galantino, owner of Illustrations Plus, said “I walked out [of 2007’s Meet the Builder] with multiple jobs. It’s deﬁnitely worth the price and even a drive across Pennsylvania.” And Joe’s not the only believer. You will be, too — all it takes is three minutes.

Who’s invited? This year’s Meet the Builder centers on the Pennsylvania Dutch region, mainly Berks, Lancaster, Lebanon, Lehigh and Schuylkill counties. But any PBA member is encouraged and invited to attend.

Why should I attend? Builders (who attend for free) gain exposure to a diverse group

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Questions? Contact Chris Anderson at PBA at 717-730-4380, ext. 3011, or at canderson@PaBuilders.org. Details online at www.PaBuilders.org.

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7DNH WKUHH PRUH PLQXWHV DQG UHJLVWHU QRZ WR DWWHQG BBBB , DP DQ DVVRFLDWH DIÀOLDWH PHPEHU: Registration is $75 per person (dinner and limited bar provided) BBBB , DP D EXLOGHU PHPEHU: Registration is FREE (due to space limitations, please only two attendees per company)

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Credit card #: _________________________________________ Expiration date: ______________ CRV (3 digit code on back): _________ Billing address (if different from above): _______________________________________________________________________________ Make checks payable to PBA; fax registration to 717-730-4396 or mail to: Attn: Meet the Builder, 600 N. 12th St., Lemoyne PA 17043 20

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PBA members find success in post-frame building

by Arden Bortzfield ome have argued that post-frame construction doesn’t get the credit it deserves. Although originally designed for agricultural buildings, the use of post-frame construction in commercial and residential buildings has increased significantly. Anthony Cochis of Lancaster Custom Construction in Lititz has spent eight years in the post-frame industry. He said that most customers still think of pole building as an old red barn with a tractor sitting out front. However, Cochis said that pole building is often a more efficient and durable way to build. Post-frame construction is both long-lasting and resilient, said John Fullerton, vice president of the National Frame Building Association, and is not just for temporary or agricultural structures. Post-frame construction utilizes a diaphragm design, including metal plate-connected wood roof trusses and shear walls, which add to its resiliency. This method of framing is also much stronger than conventional wood construction. Fullerton said that post-frame construction is built into the ground, which adds to the building’s stability. The horizontally strapped posts create a box that adds to wind and seismic resistance, while the diaphragm effect allows the structure to flex under stress. This eliminates cracking, crumbling and collapsing in the structure, Fullerton said. Post-frame construction also has a high level of efficiency; being efficient to build and efficient to own, said Fullerton. Unlike alternative framing methods, the use of wooden and steel components makes post-frame construction much less expensive to purchase and install. The wider column spacing saves time, since there are fewer structural members to assemble, and the sturdy columns allow for fewer materials to be used, Fullerton said. Traditional methods for a foundation involve digging a trench around the entire structure and adding in concrete and block afterward. Cochis said that in post-frame construction, holes are only drilled where posts will be inserted into the ground.

With its high energy-efficiency ratings, post-frame construction allows builders to follow trends in green building. Fullerton said that the structure allows ample room for insulation, making post-frame structures more appealing as energy costs increase. “Post-frame construction is considered green building, because it uses steel, wooden construction and concrete flooring, which are all considered green-building materials,” said Josh Sweinhart of Wood Originals in Bethel. These economical and energy-efficient structures are not just practical. Fullerton said that post-frame structures are capable of having high design efficiency and can be planned to meet the consumer’s specific needs. Sweinhart builds additions, garages, pool houses and recreational cabins on the residential side of post-frame construction. He said that one of the major advantages of post-frame construction is the ability to custom design each structure. The design efficiency of post-frame construction also allows structures to endure extreme external stress. Fullerton said that post-frame construction meets all major building codes and construction requirements. Like all types of construction, post-frame does have its disadvantages, said Cochis. Customers need to assess what they need built and find the most efficient and easiest way to do it. Post-frame construction is not ideal for dual story buildings, for example, because of increased weight load. Still Sweinhart said that it is not difficult to sell home buyers on this concept once the process is explained. s National Frame Building Association: www.nfba.org Lancaster Custom Construction www.lancastercustomeconstruction.net. Wood Originals: www.woodoriginalsinc.com/ september/october 2008 • Keystone Builder

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Make safety your overriding priority By Tom Rogers ood news: Working in construction is not the most dangerous job in America. Bad news: It continues to be in the Top 10. If you’ve worked in the building industry for a few years, you very likely know someone who has been seriously injured or even killed on the job. You too may have been injured badly enough to have been hospitalized or to miss work. The leading causes of work-place injuries, based on an annual report from Liberty Mutual insurance company, are all risks that our industry faces regularly: overexertion, falls, being struck by an object and injuries from bending, climbing, slipping or tripping. While injuries and even deaths can occur on job sites and in fabrication plants, they are not inevitable. All safetyrelated incidents are preventable. The key to preventing injuries and fatalities is to have a program in place that makes safety the overriding priority in your organization – above production, sales and everything else. Working safely doesn’t have to be complicated or difficult, but it does require regular attention from everyone in the workplace.

A safety-focused culture Noted safety consultant Dan Petersen reported that approximately 90 percent of injury risk is caused by unsafe behavior, rather than unsafe conditions. As a result, any effective safety program must put a major emphasis on employee behavior. Safety experts also stress the importance of everyone looking out for others’ safety, along with “engineering out” potential hazards. At Weyerhaeuser, parent company of Pennsylvania Builders Association Premier Partner iLevel, we’ve worked hard to make safety the top priority. It’s a focus that many visitors to our facilities notice right away, whether at the company headquarters, in the forest or in a mill. Our CEO has said his chief task at the company is to make sure injuries and fatalities do not occur. He is regularly seen reinforcing this message to associates and working with the leadership team to review and update our safety programs.

Leaders, managers and other associates throughout the organization are rated on how well they foster a culture of safety. As a reflection of this emphasis, one of the first things you’ll hear on a visit to a Weyerhaeuser facility is a safety briefing, and you’re likely to have an employee point out if you or others are doing something unsafe. Our intention is to create an environment with zero safety incidents. Toward that end, we have established a target to reduce our recordable incident rate to less than one recordable injury or illness per 100 employees per year. While we have not yet reached this target, through continuous strong leadership involvement and engaged employees we have made strong improvements, reducing the rate from 2.4 in 2002 to 1.7 in 2006, the lowest rate in our history. More important than these statistics is what they really represent – substantially fewer individuals injured on the job. Guiding our safety programs are five safety principals, which are basic statements of what is needed to create a safety culture that are easily understood and

remembered. They are broadly applicable to other organizations as well and are points that others in the industry may find useful for creating a foundation for a safety program. Weyerhaeuser’s five safety principles are: • All incidents are preventable. • Our commitment to safety is based on caring. • Line management is responsible and accountable for employee and contractor safety. • We are personally accountable for our own safety. • Safety is a condition of employment.

RADAR – moving from philosophy to action Establishing well-defined safety principles goes a long way toward helping employees have the understanding of what is expected when it comes to safety. But when faced with an unsafe condition, an additional set of clear and practical steps provides the guidance needed Continued on page 24

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Making the association work for you… me by Jim Brown, J.R. Brown Construction nstead of me telling you how the association can benefit you, let me tell you how it has benefited me. I can’t even begin to count how many times a customer or potential customer has commented on the fact that my company is a member of the Blair/Bedford Builders Association. I recently met with a couple interested in having several additions built onto their home. They mentioned that I have the association logo in my advertising. They, as well as others, view my membership in a professional builder’s organization as a tool to make their decision a little easier. We can all agree that in today’s marketplace we need as much help as we can get. Being an association member definitely helps define my standing amongst the competition. OK, so I can make money from being a member. But I can save money, too. After becoming president of the Blair/ Bedford BA in March, I decided I would contact some of the more active members

of the association involved in the insurance industry. I chose three, and asked them to provide pricing on all my business insurance. Within a few weeks, I received very competitive pricing and recently moved the majority of my business to my new agent. This is definitely a winwin situation for all involved. We all like referrals; they’re usually the best customers. Being a member of the association has brought me an outstanding number of referrals. And you may find it hard to believe, but we “supercompetitive” contractors sometimes refer each other. If I’m too busy, or a job is too big or too small, I, along with other members of this association, pass each others’ names along. People have a lot of respect for someone who isn’t afraid to help them as well as others in business. This doesn’t end with construction, though. As I mentioned earlier, my insurance agent is a member. But I’ve been referred to bankers, real estate agents, attorneys, etc. No matter what my needs have been, if I’m unable to find someone in this

association, somebody refers me to the right person. I look at a project we’re involved in right now … constructing a new home. This project came to us through the association. Of course, all of the building materials are being supplied by members: windows, roofing, siding, lumber, concrete and just about everything else. Not just because they are members, but because their membership has given us the opportunity to build a terrific relationship, giving my company excellent pricing and service. The plumbing, HVAC and electrical subcontractors are active members. Here again, this not only benefits me, but them as well. Finally, one of the results of meeting these people is that you not only build professional relationships, but friendships as well. Long after my tenure as president is over, even after I retire, and I’ve spent all the money I’ve worked so hard to earn, the friendships will still be there. I sincerely believe serving as president is the least I can do to give back to something that has given so much to me. Jim Brown is the president of Blair/ Bedford Builders Association. s

where you are standing. Make sure that you use the proper tool and watch out for other people just in case something breaks free. Watch the weight you are lifting and the position that you are lifting it in. Use the right PPE [personal protective equipment] and make sure that you lock out everything. And last, don’t be afraid to ask for help.” RADAR goes beyond how an individual associate conducts his or her own work. It is not enough for associates to follow safety practices themselves, they are strongly encouraged and expected to step in when others are behaving unsafely. We call this “the courage to intervene,” and it means speaking up about unsafe actions, regardless of who is committing them, which is a very real way of demonstrating that our commitment to safety is based on caring. In Weyerhaeuser’s iLevel business, one of the values it communicates to

associates, customers and other stakeholders is integrity. A key part of making that a reality is committing to safety as the overriding priority. It means that the people we work with can expect Weyerhaeuser employees to care about unsafe conditions and behaviors and act on them – every time. These ideas and actions are not unique to Weyerhaeuser or to iLevel. This same basic philosophy can be readily adapted to a wide range of construction industry work places, from the construction site to the fabrication plant to the back office, as well as in your personal life and travel. Safety must be a key focus every day. Tom Rogers is iLevel by Weyerhaeuser’s strategic product manager for Douglas fir and Hem-fir lumber. For information about iLevel by Weyerhaeuser, contact John Lincoln at 717-738-1111 or john. lincoln@weyerhaeuser.com. s

sAfety Continued from page 23

to resolve any problem – because all incidents are preventable. At Weyerhaeuser, we use a series of actions that follow the easy to remember acronym RADAR. • Recognize the hazard • Assess the hazard • Develop a safe solution • Act safely • Report. In essence, associates must identify the work area, equipment and circumstances, the specific hazard, the contributing factors, and the action taken to eliminate the hazard. No matter what circumstances you find yourself in at work, home or somewhere in between, RADAR can be applied using a 10-point evaluation. The practical use of this has been creatively summarized by one of our associates in manufacturing: “Pay attention to your surrounding and watch 24

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n . he dy g, ye p a y

Member spotlight

is. e,

Target Homes

he tremendous success of Joseph Mackey, a onetime computer programmer and his wife, Sandi, a chemist, was somewhat of an accident. The Mackeys, owners of Target Homes in East Stroudsburg, never intended to become successful builders. All they wanted to do was build a home of their own. It all began when they started building a home for themselves. Before the home was completed, an offer was made to buy the home. With the home completed and sold, they started another one, and the same thing happened … five more times. That’s when they decided to give up their full-time jobs and begin their new career in the home-building business. The Mackeys started J&S Custom Homes in 1987, later opening a second company, Target Homes. In the beginning, Target Homes offered modular homes. It wasn’t long before they decided to offer only site-built home construction. Building beautiful homes from the ground up was truly what they loved to do and it showed. Their customers agreed, and today, they operate exclusively as Target Homes. Target Homes offers semi-custom, single-family homes. The Mackeys consider their semi-custom homes an “affordable version” of a custom-built home. Target Homes does business in the Pocono Region, primarily in Monroe County, with 20 employees. Many employees have been with the company for more than 15 years. Joe Mackey attributes their success, in part, to having strong affiliations with industry-related associations, including the Pocono Builders Association. Likewise the Mackeys are involved in a national Builder 20 club, The Excels, and continue to use all of these relationships to grow and operate the business. The Mackeys have strong ties to the community as well. They are members of the Monroe County Habitat for Humanity and the affordable housing advisory committee to the Monroe County Commissioners. They also participate in the annual Rebuilding Together project, which helps low-income families with repairs and building projects. Through the years, they have worked hard to build a great team.

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Building their own home every time “We’ve always strived to have only ‘A’ players on our team,” Joe Mackey said. “We’ve finally reached that goal.” And even in these challenging times, he’s made a commitment to keep the team together. “What better way to succeed,” he said. Knowing that this year would be challenging, the company’s model home center was remodeled for a fresh look that would continue to wow customers. This investment has paid off as Joe Mackey explained, “The market may be down a little bit, but it’s a comfortable setback. It has enabled us to re-tool, and prepare to hit the ground running as the market strengthens.” This is not the couple’s first experience with a challenging economy. When they started, the market was in a slump, but they were able to grow the business year after year. The key, Sandi Mackey said, “is to build each home as if it were their own.” Keeping it all together is the magic,” Sandi Mackey said. “We each have our own dedicated organizational roles within the company, but decide on the common goals and direction of the company together.” They then delegate the implementation of these goals between themselves and the rest of the Target Homes team. The couple has two teenagers who work for the company as their school schedules allow. “We do it together. We always have,” Joe Mackey said, restating a philosophy that has helped create a successful company for the past 21 years. s

Business quick facts: Target Homes • Owners: Joseph and Sandi Mackey • Years in business: 21 years • County of operation: Monroe County and surrounding areas • Local association: Pocono Builders Association • Association involvement: Joe Mackey now serves as PBA secretary and is unopposed on the ballot to serve as vice president in 2009. He served previously as president of the Pocono Builders Association. Sandi Mackey served as Pocono Builders Association president, is chairwoman of the association’s building awards program and the public relations committees. • Company motto: Hitting the mark for quality and value • Website: www.targethomespa.com september/october 2008 • Keystone Builder

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Final word

PBA’s secondary endorsed trade program earns $5,000 grant

he National Housing Endowment has awarded a $5,000 grant to Pennsylvania Builders Association for its secondary endorsed trade program. The grant was awarded through the Challenge/ Build/Grow Matching Grant Initiative, which has provided more than $155,000 since 2001 to state and local builders associations. This program is the only residential building certification in the nation. It was developed to recognize superior construction programs in hopes of attracting qualified students. Certification also will provide the members of PBA a level of assurance that students completing their training in endorsed programs have received instruction and training based on national skill standards in residential construction. Endorsed programs will include carpentry, electrical occupations, plumbing, masonry, and heating, ventilation and air conditioning. A technical school may earn endorsement for one program or several. Each trade area is inspected by experts from that field. Skill sets for each trade area were determined using standards developed by the National Association of Home Builders Institute. Graduating students may earn individual skills certificates after achieving a competent or advanced testing score in both practical and written tests offered by the National Occupational Competency Testing Institute. Look for a feature article about the program in the November/ December issue of Keystone Builder.

Counties whose students may attend technical schools with endorsed trade programs Note: Schools serve at least some school districts within the counties listed. Erie Warren

Crawford

McKean

Potter

Forest Venango

Mercer

Elk

Sullivan

Cameron

Clinton

Clarion Clearfield Butler

Union Snyder

Indiana

Allegheny

Cambria

Mifflin Juniata

Blair

Westmoreland

Fayette

Lackawanna

Monroe Carbon Northampton

Northumberland

Schuylkill

Lehigh

Dauphin

Perry

Lebanon

Berks

Huntingdon

Fulton

Franklin

Western PA Career and Tech Center (Washington, Fayette and Greene) • Electric, masonry, carpentry

Adams

Pike

Luzerne

Bucks Montgomery

Lancaster

Bedford Somerset

Wayne Wyoming

Columbia Montour

Cumberland

Washington Greene

Centre

Armstrong

Beaver

Lycoming

Jefferson

Lawrence

Susquehanna

Bradford

Tioga

York

Chester Delaware

Philadelphia

Forbes Road Career and Tech (Allegheny) • HVAC, electrical technology, building construction trades

Eastern Westmoreland C & T (Westmoreland) • Trowel trades, plumbing, building construction occupations Indiana County Technology Center (Indiana, Armstrong and Jefferson) • Masonry, electric Cumberland Perry Vocational Technical School* (Cumberland, Perry, York and Adams) • Carpentry, Electric, HVAC and Masonry Lehigh Career & Technical Institute* (Lehigh) • Carpentry Reading Muhlenberg Career & Technical Center* (Berks) • Carpentry, masonry, building construction maintenance *Results pending

I Keystone Builder •september/october 2008

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titute*

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