Foundations - February 2014 by Rochester Area Builders, Inc.

A&A Electric & Underground, Inc. + AB Systems, Inc. + Abbco Company + ABC Seamless of Rochester, Inc. + ABC Supply Company, Inc. + Above All Roofing of Rochester, Inc. + Accord Electric, Inc. + Adair Electric Company + Adamson Motors + Advanced Builders & Remodeling + Advanced Builders, LLC + Advanced Building Center, Inc. + Advanced Disposal + Advantage Cabinets, Inc. + AgStar Home Mortgage Services + Alexander & Sons Builders + Mike Allen Homes, LLC + Allen Outdoor Solutions, LLC + All-Star Basements + Alpha Video & Audio + Altra Federal Credit Union + American Engineering Testing, Inc. + American Fence Company of MN, LLC + American Waterworks + Ames Construction, Inc. + Amirco, LLC + Andersen Windows, Inc. + Anderson Construction + Appliance Village Company + Arcon Development, Inc. + Arrow Building Center + Associated Bank + Athelon Enterprises, LLC + B&C Plumbing & Heating, Inc. + Al Barker Custom Homes, Inc. + Barrier Free Access, Inc. + Basement Water Control + Batzel Builders, Inc. + Beckley's Office Products + Beetles Bar & Grill, Inc. + Alvin E. Benike, Inc. + Scott Berberich Construction, LLC + Scott Berg Construction, LLC + Bessler Management + Beyond Kitchens, LLC + Bigelow & Lennon Construction, LLC + Bigelow Homes + K.W. Billman, Inc. + The Blue Book of Building & Construction + Bobcat of Rochester + Bob's Construction, Inc. + The Boldt Company + Bouquet Builders, Inc. + Bowman's Door Solutions + Brandrup Builders + Brauer Roofing, Inc. + Braun Intertec Corporation + Brekke Fireplace Shoppe + Bricewood, LLC + Briese Iron Works, Inc. + Bright Ideas + Brinkman Builders, LLC + Brock White Company + Tom Brogan Heating & Air Conditioning + Larry Brooks Builders + Brooks Excavating Company, Inc. + C.O. Brown Agency + Bruce Bucknell Construction, Inc. + Budget Blinds + Building Products, Inc. + Burdick Builders, Inc. + By Design Builders + Byrne Electric, Inc. + Cachiaras Building & Remodeling + Cambria + Carpet One + CarpetsPlus of Rochester + Castlewood Homes, Inc. + Charter Communications/Media + Chladek Construction, LLC + Chosen Valley Testing, Inc. + Christian Brothers Cabinets, Inc. + City of Byron + City of Chatfield + City of Eyota + City of Preston + City of Spring Valley + Citywide Insulation, Inc. + Clarey's Safety Equipment + Clear Channel Radio (Laser/Fox/KFAN) + Clements Chevrolet Cadillac Subaru + Closet Organizers + Coldwell Banker Burnet + Commercial Leasing Services + Construction Partnership + Coordinated Business Systems, Ltd. + Corban Homes, LLC + Cordes Construction + Cornerstone Builders & Real Estate, Inc. + Cornerstone Designs of Rochester, Inc. + Corporate Web Services, Inc. + Counselor Realty of Rochester, Inc. + Countryside Builders, LLC + Cravath Homes, LLC, dba Accessibility Solutions + Creative Hardwood Floors + Crescent Electric Supply Company + CRW architecture + design group, inc. + Culligan of Rochester & Kasson + Curry's Custom Cut Gutter, LLC + Curtin Drywall, Inc. + Custom Alarm/Custom Communications, Inc. + Custom Retaining Walls & Landscaping, Inc. + D2E, LLC + Dahl Home Builders, Inc. + Data-Smart Computers, Inc. + DeCook Builders, LLC + DeGeus Tile & Granite + Derby Construction LLC + The Design Connection + Design Studio B + DeWitz Home Builders, Inc. + DMC Plumbing & Heating, Inc. + Dolan's Landscape Center, Inc. + Donlar Construction Company + DoubleTree by Hilton - Mayo Clinic Area + DreamMaker Bath & Kitchen + Dunham Associates, Inc. + Dunlap & Seeger + JE Dunn Construction + M.H. Dutton Construction, LLC + E&M Consulting, Inc. + Eastwood Bank + eci, llc + Eckert Construction, Inc. + Edel Construction, LLC + Edge Homes & Construction, Inc. + Edina Realty Home Services + Todd Eidem Construction, Inc. + Elcor Construction, Inc. + Elcor Realty of Rochester, Inc. + Electrical Solutions & Service + Elias Construction, LLC + Energy Panel Structures + Energy Products & Design, Inc. + Enventis + Excel Homes + The Excelsior Group, LLC + Expert Insulation, Inc. + Express Employment Professionals + Extreme Panel Technologies, Inc. + Fairway Outdoor Advertising, LLC + Ferguson Enterprises + Fieldstone Family Homes, Inc. + First Alliance Credit Union + First Choice Homes, LLC + First General Services of SE MN + First Security Bank + R. Fleming Construction, Inc. + Ford Metro Glass, Inc. + Foster Construction, Inc. + Franklin Energy + Friedrich Construction, Inc. + Chris Fritsch Custom Homes, LLC + Gander Plumbing & Heating, Inc. + Dale Gathje Construction, Inc. + Steve Gentry Construction, LLC + Gerhards + Gift Book Plus + Robert Gill Builder, Inc. + Goodin Company + Great River Overhead Door + Green Lawncare Irrigation & Service Co. + Greenway Cooperative Service Company + Gregor Builders, Inc. + GulfEagle Supply + Habitat for Humanity - Rochester Area + Habitat for Humanity - Winona/Fillmore County dba Habitat ReStore + Haley Comfort Systems (Authorized FireSide Dealer) + W.L. Hall Company + Hammer Homes, Inc. + Hanson Construction & Specialty Cabinets, LLC + Hayfield Window & Door Company + HDR Architecture + Heartman Insurance + Heartwood Homes of Rochester, Inc. + Brandon Henderson's Construction Plus, LLC + Hentges Glass Company + HG Electric, LLC + HGA Architects and Engineers + Hicks Electric, Inc. + Higgins Custom Cabinetry + High Definition Homes, LLC + Hiller's Flooring America + HiMEC at Home + Jeff Hinkle Custom Homes + Hirshfield's Decorating Center + Holt Title Guaranty Company, Inc. + The Home Depot + Home Federal Savings Bank + Home Improvement Professionals, Inc. + Home Systems Installation, LLC + Howe Countertops + Hunt Electric Corporation + Hutch's Custom Cabinets + Int'l Brthrhd of Electrical Wrkrs Local 343 + Innovative Surfaces, Inc. + Institute for Environmental Assessment + Insty Prints + IntegraSpec Central/Jeff Mueller Construction + Michael Jack, LLC + J.P. Johnson Custom Builders, Inc. + JP's Construction Remodeling & Repair, Inc. + K&M Glass Company + K&S Heating, A/C, Plumbing & Electrical + Tom Kalmes Construction, Inc. + Kane & Johnson Architects, Inc. + Keller Williams Premier Realty + Key Builders, Inc. + King's Flooring, LLC + Kinzler Construction Services, Inc. + Kirkland Enterprises, LLC + Kitchen Concepts + The Kitchen Design Studio + Kitchens Plus + Gary Kline Roofing, Inc. + Knutson Construction Services + Koball's Poured Walls, Inc. + Kraus-Anderson Construction Company + Kreofsky Building Supplies + Kruger Electric, Inc. + Kruse Lumber + KTTC/KXLT-TV + Kuehn Motor Company, Inc. + Kuntz Electric, Inc. + Kwik Trip, Inc. + L&L Cabinets + Lacina Siding & Windows, Inc. + Laitala Tile Company + Larsen Industries, Inc. + Larson Siding & Windows + Legends Concrete, Inc. + Leitzen Concrete Products, Inc. + Leyendecker Homebuilders, LLC + Lodermeier's, Inc. + Lowe's Home Improvement + Luxury Bath Remodeling + Maas Companies, Inc. + Maier Tree & Lawn + Majestic Homes, Inc. + R.J. Manemann Custom Homes + Maplewood Homes, LLC + Markham Homes, LLC + markit + Marvin Windows & Doors + Massey Land Surveying & Engineering + Master Builders, Inc. + M a v o Systems, Inc. + McGhie & Betts - a Division of WSB & Associates, Inc. + McGladrey + McGough Construction + MDH, Inc. + Meadow Lakes Builders + MEC Construction, Inc. + Med City ucts, Inc. + Menards - South + MEP Associates + Merchants Bank Builders of Rochester, LLC + Medcare Prodchael's Custom Cabinets, Inc. + Mid American Financial Group + + Merit Contracting, Inc. + M i Midwest LeafGuard of Rochester, Inc. + Midwest Walls, LLC + Miller & Sons Construction, Inc. + Minnesota Energy Resources Corporation + Minnwest Bank + MLT Group + Morris Concrete, Inc. + Mosquito Squad of SE MN + Larry Newman Drywall + Nickelson Painting, Inc. + North Central States Regional Council + North Star Stone & Masonry + Northern Lights & Furnishings + Nuss Truck & Equipment + O'Connor Homes, Inc. + Ohly Law Office + Olmsted County Planning Dept, Insp. Div. + Olmsted County Public Health + Olmsted National Bank + J.B. O'Meara Company + On Site Companies + Otis Custom Homes, LLC + Overhead Door Co. of Olmsted County + Owner's Plumbing, Inc. + Oxi-Fresh C a r p e t Cleaning + Paape Energy Services + Pahl & Kaye, Inc. + Palmer Soderberg, Inc. + Paper & Graphics, Inc. + Walt Pappas Construction + mark Corporation + Payne Company + PC Applications ConsulParatants, Inc. + Pearson Builders, Inc. + Pebble Creek/Western Walls + Pella Windows & Doors + Pendle Hansen Bagne Insurance + Penz Custom Homes, Inc. + People's Energy Cooperative + G. Pestka Appraisals + Peterson Well Drilling, Inc. + Pine Island Lumber + Pompeii Painting, Inc. + Post-Bulletin Company, LLC + Powers Ventures + Prehn Building Sales, Inc. + Premier Bank Rochester + Premier Builders of Rochester, Inc. + Price Financial Services, Inc. + Prime Time Painting of Rochester, LLC + PrimeLending + Priority Claims Service + Pro Image Promotions & Apparel + ProBuild Company, LLC + Quality Overhead Door pany, Inc. + Quality Siding & Window, Inc. Com+ Michael Quinn Law Office + R&M Development Company + Radcliffe Homes & Remodeling + Range Construction, LLC + RCON Homes, Inc. + RCTC Carpentry Program + RE/MAX of Rochester + Region Millworks, Inc. + David Reiland Building Contractor, LLC + Reliable Contractors, Inc. + Reynolds Design and Construction + Rochester Area Appraisals, LLC + Rochester Area Chamber of Commerce + Rochester Area Econ. Development, Inc. + Rochester Area Foundation + Rochester Asphalt, Inc. + Rochester Building Safety Department + Rochester Concrete Products, LLC + Rochester International Event Center + Rochester Plumbing & Heating/Roto Rooter + Rochester Public Utilities + Rochester Public Works + Rochester Ready Mix Concrete Co + Rochester Sign Service, Inc. + Rochester Title & Escrow Company, Inc. + Rock Solid Retaining Walls + Ronningen Roofing, Inc. + RSP Architects + Ryan & Grinde, Ltd. + Ryan Electric, Inc. + Ryan Windows & Siding, Inc. + Sargent's Landscape Nursery, Inc. + Schad Tracy Signs, Inc. + Schmidt Goodman Office Products + Schoeppner, Inc. + Schumann Granahan Hesse & Wilson, Ltd. + Schwickert's Tecta America, LLC + Seavey Builders, Inc. + Dan Severson Builders, Inc. + Shanahan Building & Remodeling, LLC + Sherwin Williams Company + Shingobee Builders, Inc. + Sign Here, Inc. + Simonson Builders, LLC + SL Contracting + Smart Home Innovations & Engineering, Inc. + Smith Schafer & Associates, Ltd. + Solar Connection, nity + Space Concepts, Inc. + Spahn & Rose Lumber Company + Greg Speedling ContractInc. + Somerby Golf Commuing, Inc. + Spring Valley Overhead Door, Inc. + Stadsvold's Lawn & Landscape + Stantec + Steel Constructors, Inc. + Sterling State Bank + Stevens Heating, Inc. + Stewartville Economic Development Authority + Stier Construction, Inc. + StoneBridge Builders + Structural Design Group, Inc. + Struve's Paint + Robert G. Suk Law Office, PA + Summit Custom Homes, LLC + Summit Fire Protection Company + Superior Mechanical + Craig Swanson Builders, Inc. + Swenke Ims Contracting, LLC + Kenny Sylvester Construction, LLC + Synergy Products + Tag's Drywall, Inc. + Tamarack Materials of Rochester, Inc. + TDS Metrocom + Teigen Paper & Supply, Inc. + Thermo-Tech Windows + Thiemann Construction, Inc. + Thimijan Custom Homes, LLC + Think Mutual Bank + R. Thomas Consulting, LLC + Thomas Tool & Supply + Thompson's Garage Door and Openers + Thrivent Financial - Rochester Group + Tile Superstore & More + TLC Surfaces + Tonna Mechanical, Inc. + Top Shop of Rochester, Inc. + Total Electric of Rochester, Inc. + Townsquare Media Rochester + Tradesmen International, Inc. + Traditional Wood Builders + Tri Star Insulation + Tri State Insulated Concrete Forms + TSP Architects & Engineers + Turri Crane Service, Inc. + Turtle Creek Construction, Inc. + United Heating & Cooling + United Products/Allied Building Products Corp. + United Rentals + The Urban Studio, LLC + US Bank + Valor Mechanical, Inc. + Val-U-Blinds + Van Haren ICF + Vector Windows + Veit Companies + Vennehjem Building Corporation + Vertical Limit Construction + Viking Automatic Sprinkler Company + Viking Electric Supply + Vision Homes & Remodeling, LLC + Vollara Global/DPS + WA Insurance + Waddell & Reed + Warners' Stellian Appliance Co., Inc. + Waste Management + Weis Builders, Inc. + Greg Wellik Construction + Wells a publication of Fargo Bank Minnesota NA + Wells Fargo Home Mortgage + Wendland Utz + Werner Electric Supply + West Bank + Jim Whiting Nursery & Garden Center, Inc. + WHKS & Company + Widseth Smith Nolting + Wildwood Sports Bar and Grill + Women Communications, LLC + Woodruff Company + Wright Homes, Inc. + WT Lighting

FEBRUARY

2 01 4

F O U N D AT I O N S Rochester Area Builders, Inc.

AT THE RAB HOME SHOW 35 Annual th

On Sunday

On Saturday

See Seminars by

Stars of HGTV’s Renovate to Rent,

DANNY & DREW

See Seminars by HOMETIME Star

Featured Speakers

MIRIAM JOHNSON

February 7-8-9 Mayo Civic Center

Fri 3pm-8pm, Sat 9am-6pm, Sun 11am-4pm Signature Event Sponsor

� � � � � �

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RochesterAreaBuilders.com

News from The President January 24, 2014

Index

Home Show Information .......................... 2

Dear Fellow RAB Member: TGIF, no matter what day of the week it is! Thank God It’s February! If it’s February (or close), it must be time for the Rochester Area Builders Home Show! It’s not too late to take advantage of having thousands of potential customers see what your company has to offer at this once-a-year event. Though much communication (such as this newsletter) now happens through digital delivery and social media, we know that home improvement customers want to meet, know, and trust the people that they hire to help them with their most expensive and important asset. The Home Show Committee (made up of members like you who volunteer their time) works tirelessly to put together a ﬁrstclass event that people won’t want to miss. Nationally-known home improvement media “stars” will be right here in Rochester, helping to bring qualiﬁed buyers in contact with high-caliber RAB businesses such as yours. While you’re at it, be sure to enjoy all that the RAB Home Show has to offer, and have some fun yourself!

News from the President ......................... 3 January General Membership Meeting ..................................................... 4 February Networking Night ...................... 5 Doors Unhinged........................................ 6 Home Show Exhibitors ............................. 7 On the Job with Ryan ............................8-9 Hey Matt, What’s up with that? ............. 10 BAM Update ............................................11 Remodel It Right News ..........................12 Commercial Builders Council ................13 Rochester Permits .................................. 14 Byron/Pine Island Permits .....................15 Real Estate Data ....................................15 Elliot Eisenberg Article ........................... 16 Membership Information ....................... 17 NAHB Member Advantage .....................18

Please browse these pages to see what we’re doing to make this the strongest Home Show ever, and let us know how you’d like to get involved. The billboards are up, the ads are out, and we hope you can get involved in the premier home improvement event in southeast Minnesota. Why? Because you can’t e-mail a handshake. Stay warm, and I hope to see you at the Mayo Civic Center!

Kevin Worden 2014 RAB President

Executive Director/Editor John Eischen Production Ryan Kling-Punt The Rochester Builders newsletter is the ofﬁcial publication of Rochester Area Builders, Inc. This newsletter is published and distributed monthly to its members and others associated with the building industry. Neither the advertisers, nor RAB will be responsible or liable for misinformation, misprints, typographical errors, etc., herein contained.

108 Elton Hills Lane NW Rochester, MN 55901 Phone: 507-282-7698 Fax: 507-282-6351 E-mail: RAB@RochesterAreaBuilders.com

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Join us at the January

General Membership Meeting Tuesday, January 28th, 5:00 - 8:30 pm

at the Ramada Hotel & Conference Center 1517 16th St SW

5pm 6pm 7pm

Social Hour Dinner Program - Economic Forecast 2014: This Time the Forecasts are Right! Elliot Eisenberg, Ph.D.

You’ve probably read Dr. Eisenberg’s articles in our Newsletter, and you may have heard him speak at previous events. If so, you know that not only is Elliot extremely knowledgeable about economics, he is able to discuss what many ﬁnd to be a dry topic in a fresh and interesting way. We all know how important the economic climate is to our businesses, especially with all the new opportunities coming our way thanks to DMC. Elliot is able to break down economics in a way that is easy to understand, while still keeping it interesting enough to keep you from dozing off!

We will also be announcing our annual award winners at the meeting. Congratulations to all the nominees! 2013 Associate of the Year Karen Blissenbach, Design Studio B Missy Hale, Home Federal Savings Bank Jennifer Maass, Kitchen Concepts Al Mannino, Home Federal Savings Bank Sam Peyton, King’s Flooring Lindsey Rippentrop, Olmsted National Bank

2013 Builder of the Year Adam Benike, A.E. Benike, Inc. Delbert Feenstra, Knutson Construction Services Les Radcliffe, Radcliffe Homes & Remodeling Kevin Sternberg, Countryside Builders, LLC Chris Terry, Knutson Construction Services

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2013 Cornerstone Award for Outstanding Company A.E. Benike, Inc. Home Federal Savings Bank Kane & Johnson Architects, Inc. Kruse Lumber Rochester Public Utilities Superior Mechanical

Dessert Sponsor:

Join us at the February Networking Night Tuesday, February 25th, 5:00 - 7:00 pm

at Kreofsky Building Supplies 3731 Enterprise Dr SW Hours: 5pm - 7pm

President

Kevin Worden, Rochester Area Habitat for Humanity

Vice President

John Eckerman, The Boldt Company

Secretary

Lindsey Rippentrop, Olmsted National Bank

Treasurer

Carla Kilpatrick, Home Federal Savings Bank

Past President

Jean DeWitz, DeWitz Home Builders, Inc.

Directors

Karen Blissenbach, Design Studio B Christy Buchan, Energy Products & Design, Inc. Delbert Feenstra, Knutson Construction Services Rob Jones, Superior Mechanical Levi Kaiser, Alvin E. Benike, Inc. Bruce Laufenburger, First General Services of SE MN Sam Peyton, King’s Flooring, LLC Brian Shehan, Weis Builders, Inc.

Builders Exchange Council Representatives

J.J. Webster, Kraus-Anderson Construction Company, Chair Jake Schleusner, Merit Contracting, Inc., Vice Chair Tony Wintheiser, Hentges Glass, Past Chair

Commercial Builders Council

Chris Terry, Knutson Construction Services, Chair Nick Leimer, Kraus-Anderson Construction Company, Vice Chair

KBS is a family owned business in Plainview, MN that has been in South East Minnesota for 4 generations. KBS started as a construction company building agricultural buildings that has since grown into commercial building, full retail lumber and hardware sales, farm equipment products and repair, overhead door instillation and repair, and ﬂooring. Four generations of construction in southeastern Minnesota speaks to the Kreofsky commitment of providing quality products and services and building solid customer relationships. Henry Kreofsky began his construction career in the 1920s. He was well known for constructing the hip roofed barns we still see dotting the countryside today. Now, KBS provides a full range of construction services and products to a multi-county customer base. In recent years, a Rochester branch was added. Quickly outgrowing this location, KBS Rochester doubled in size when it relocated into its current site at 3731 Enterprise Drive SW in the winter of 2013. Clearly, the fourth generation of Kreofsky’s are carrying on the family tradition that their great grandfather, Henry Kreofsky, began nearly a century ago.

Hosted By:

Development Council Chair

John Sipple, Rochester Area Appraisals, LLC

Remodelers Council Chair Sam Peyton, King’s Flooring, LLC

National Life Directors Joe Weis, Weis Builders, Inc.

National Directors

Steve Buss, Cornerstone Builders & Real Estate, Inc. Mike Coats, MEC Construction, Inc. David Kane, Kane & Johnson Architects, Inc., Rep. Rory Lenton, Minnesota Energy Resources Corp.

State Directors

Jim Gander, Superior Mechanical John McGuine, Schoeppner, Inc., Rep. Mike Paradise, Bigelow Homes David Pederson, Wendland Utz Dan Severson, Dan Severson Builders, Inc.

Executive Director

John Eischen JEischen@RochesterAreaBuilders.com

Staff

Audra Bolduan ABolduan@RochesterAreaBuilders.com Marketing, Builders Exchange Trustees

Matt Limoges MatthewL@RochesterAreaBuilders.com Government Affairs, Commercial Builders Council, Development Council, Building Safety Advisory Group, Public Works Advisory Group, Community Relations, Green Building, Marketing Sharill Mueller SMueller@RochesterAreaBuilders.com Home Show, Showcase Committee Rebekah Nielsen RNielsen@RochesterAreaBuilders.com Ambassadors, Education, Membership, Program, Spike Club, Remodelers Council -Executive-Home TourRyan Kling-Punt RPunt@RochesterAreaBuilders.com Golf Outing, Sporting Clays, Directory, Newsletter, E-News Update

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T h e y s ay t h a t w h e n o n e door closes, another door opens, but what happens if the doors are all off their hinges? That’s the question facing the participants in our Doors Unhinged design contest, taking place at the 2014 RAB Home Show! The Challenge: Take and old, dilapidated door with one foot in the wood chipper, and turn it into… well, whatever you can imagine! Designers have full creative license, as long as they keep at least 50% of the door intact, and stay within certain size restrictions. Be ready for anything, from a stunning piece of art to a comfy bench, or an elegant wine rack. Not even we know what the designers have planned; you’ll have to visit the North Lobby at the Home Show to find out! The Participants: Advantage Cabinets, Inc. Design Studio B Hiller’s Flooring America Beyond Kitchens, LLC Re/Max of Rochester Weis Builders, Inc. Sign Here, Inc. Merchants Bank The Prize: Sure, you might be thinking, these displays will certainly be fun to look at, but what’s the point? What’s in it for me? Well, these displays aren’t just for show. You can buy a raffle ticket ($5 each or 3 for $10) and have a chance to bring home your favorite piece! You could win a cool piece of art, or a functional piece of furniture! Every single piece will go home with a lucky winner. And the winning designer will be chosen based on the number of raffle tickets sold.

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The Reason: All of the proceeds from the raffle ticket sales will go directly to benefit two Habitat for Humanity ReStores, one in Rochester and one in Winona. The ReStore’s mission is to serve as a nonprofit, low cost home improvement store. They sell new and gently used building materials, and all their profits are used by Habitat for Humanity to build homes, community, and hope locally and around the world. The Rochester ReStore is new, and will be opening in late May. It will be located at 3034 40th Ave NW. The Winona ReStore is located at 77 Laird St.

A list of Businesses positioning themselves to Succeed in 2014 (aka Home Show Exhibitors) Lacina Siding & Windows, Inc. Signature Event Sponsor ABC Water Conditioning Service, Inc. Above & Beyond Construction Above All Rooﬁng of Rochester, Inc. Absolute Chiropractic Advanced Disposal Advantage Cabinets, Inc. afm Countertops, Inc. Agape Chiropractic AgStar Home Mortgage Services Allen Outdoor Solutions, LLC Altra Federal Credit Union American Exteriors American Fence Company of MN, LLC American Waterworks Appliance Village Company Arrow Building Center Athelon Enterprises, LLC Basement Water Control Bath Fitter Bergland & Cram Architects Bigelow Homes K.W. Billman, Inc. Bobcat of Rochester Bob’s Construction, Inc. Brauer Rooﬁng, Inc. Brekke Fireplace Shoppe Bricewood, LLC Bright Ideas Budget Blinds Budget Exteriors, Inc. Cambria Carpet One CarpetsPlus of Rochester Chladek Construction, LLC Christian Brothers Cabinets, Inc. College Pro Painters Complete Basement Systems Counselor Realty of Rochester, Inc. The Country Barn Yard, LLC Country Financial Countryside Builders, LLC Creative Curb Appeal Creative Hardwood Floors Culligan of Rochester & Kasson Custom Alarm/Custom Communications, Inc. Custom Drapery & Blinds by Michael Esch Custom Remodelers, Inc.

Custom Retaining Walls & Landscaping, Inc. Derby Construction LLC The Design Connection Design Studio B DeWitz Home Builders, Inc. DreamMaker Bath & Kitchen Dura-Oak Kitchen Make Overs Earth Energy Heating & Cooling, Inc. Eastwood Bank Eckert Construction, Inc. ECOsmarte Planet Friendly Edina Realty Home Services Edina Realty Home Services Elias Construction, LLC Empowered Family Chiropractic Enercept, Inc. Energy Products & Design, Inc. Expert Insulation, Inc. Extreme Panel Technologies, Inc. Family Wellness Center, LLC Final Cut Construction First Choice Homes, LLC Ford Metro Glass, Inc. Chris Fritsch Custom Homes, LLC Steve Gentry Construction, LLC Gerhards Great Lakes Window & Siding Great River Overhead Door Greener World Solutions, LLC Haley Comfort Systems (Authorized FireSide Dealer) Heartland Security Brandon Henderson’s Construction Plus, LLC Hershberger Furniture, LLC Hiller’s Flooring America HiMEC at Home The Home Depot Home Federal Savings Bank Home Improvement Professionals, Inc. A Home of Your Own, Inc. Home Systems Installation, LLC IntegraSpec Central/ Jeff Mueller Construction Interlock Industries InTouch Communications - The Satellite Source K&M Glass Company K&S Heating, A/C, Plumbing & Electrical King’s Flooring, LLC

Kitchen Concepts The Kitchen Design Studio Kitchen Solvers Kitchens Plus KJR Group, LLC Kreofsky Building Supplies Kruger Electric, Inc. Land-O-Dreams Larsen Industries, Inc. Larson Siding & Windows Luxury Bath Remodeling Maier Tree & Lawn Maplewood Homes, LLC Marvin Windows & Doors Master Builders, Inc. Mayo Employees Federal Credit Union Med City Builders of Rochester, LLC Merchants Bank Michael’s Custom Cabinets, Inc. Midwest Fence & Manufacturing Midwest LeafGuard of Rochester, Inc. Miller & Sons Construction, Inc. Minnesota Energy Resources Corporation Minnesota Re-Bath Nordaas American Homes North Star Stone & Masonry North States Window & Door Systems O’Connor Homes, Inc. Olmsted National Bank Outdoor Expressions Overhead Door Co. of Olmsted County Pahl & Kaye, Inc. Pella Windows & Doors People’s Energy Cooperative Peter Dokken Realty / Counselor Realty Peters’ Patio & Landscape, Inc. Peterson Well Drilling, Inc. Phantom Screens Pine Island Lumber PR Connections Premier Bank Rochester Priority Claims Service Quality Overhead Door Company, Inc. Quality Siding & Window, Inc. Radcliffe Homes & Remodeling Reichel Insulation, LLC Reynolds Design and Construction Rochester Area Builders, Inc. Rochester Asphalt, Inc. Rochester Building Safety Department

Rochester Outdoor Living Rochester Plumbing & Heating/ Roto Rooter Rochester Public Utilities Rock Solid Retaining Walls Ronningen Rooﬁng, Inc. Ryan Windows & Siding, Inc. Sam’s Well Drilling & Geothermal Sargent’s Landscape Nursery, Inc. Schwickert’s Tecta America, LLC SEMA Equipment, Inc. Smart Home Innovations & Engineering, Inc. Solar Connection, Inc. Space Concepts, Inc. Spring Valley Overhead Door, Inc. St. Joseph Equipment Struve’s Paint Superior Mechanical Superior Protective Coatings & Polyjacking Synergy Products Terra-Therm, Inc. Thatcher Pool & Spa, Inc. Thermo-Tech Windows Think Mutual Bank Thompson’s Garage Door and Openers TLC Surfaces Tonna Mechanical, Inc. Top Shop of Rochester, Inc. Tri State Insulated Concrete Forms TS Custom Decks Twin City Jacuzzi US Bank Valor Mechanical, Inc. Val-U-Blinds Vector Windows Versa-Lok Retaining Walls Systems Vision Homes & Remodeling, LLC Vollara Global/DPS Warners’ Stellian Appliance Co., Inc. Wells Fargo Home Mortgage Window Concepts of Minnesota, Inc. XRG Concepts, LLC Your Home Improvement Company Look at all this room for more names! Your name could be here, and you could be getting ready for a great year ahead. It’s not too late to sign up for a booth. Call us today!

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�� Project: Home of Brandon Vagt and Alyssa Fordham-Vagt

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FOR OUR INAUGURAL EDITION OF “ON THE JOB,” WE ENTER THE MIND (AND THE FUTURE HOME) OF BRANDON VAGT.

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Brandon’s home is being built by Braden Markham of Markham Homes, LLC, but make no mistake, it is his brainchild. Well, I suppose we must give equal credit to his wife, Alyssa. The Design Director at CRW architecture + design group, inc., she provides some much appreciated architectural know how and design muscle. Meanwhile, Brandon is on site, putting his 4 ½ years of experience as a project manager for Weis, along with his current experience as a residential energy rater for XRG Concepts, to work. Their goal for the home is to reach the “Certified” level of LEED for Homes, and to achieve the MN Green Path - Tested certification. MN Green Path is a BATC program for green building that is all about choice and transparency for the homeowner. When I visited the site, Brandon had invited the home’s b u i l d e r, B r a d e n Markham, and a few other industry professionals over to watch as Brandon conducted a duct leakage test. By first sealing off the supply and return vents, then connecting a special calibrated fan and meter to the furnace, you can measure the amount of air that leaks from the heating & cooling distribution www.RochesterAreaBuilders.com 8 | January 2014

system. This is a way to measure the performance and distribution efficiency of the system. Brandon was even able to test the furnace equipment itself, and to his satisfaction, the system meets Energy Star for New Homes requirements. If he wanted to get really fancy, Brandon says, they could have attached a smoker to the system, which would show the exact points where leaks are occurring, but this system is so airtight, it wasn’t really necessary. This is just one example of Brandon and Alyssa’s vision at work. By spending wisely, not extravagantly, they hope to create a home that is as energy efficient as possible, but on a budget. Brandon’s calling it “Modest Efficiency.” His hot idea – spend a little extra

on upgraded materials, while keeping installation his in-ceiling lighting to prevent air from escaping into costs the same. For example, standard ﬁberglass batt the attic. insulation in his 2” x 6” walls would have an r-value (that’s a measurement of insulation efﬁciency, higher numbers are better) of 19. But by opting for high density batt, Brandon will be upping the r-value to 21. The high density batt costs a little more, but it installs just as easily as the regular stuff, so installation cost will be the same. He can do the same thing with the blown-in insulation in the attic, adding a couple more inches than normal to improve the r-value without doing any extra work. Brandon is also adding a couple of personal touches to the home, like putting in the time to add a bit of air sealing inside the outer walls before the batt

Another factor Brandon and Alyssa will be considering is efficiency vs. aesthetics. Many homeowners place a priority on the latter, but Brandon is hoping to flip the script for their home. That’s why, when choosing appliances, energy efficiency will be the first factor they consider. They’ll look for appliances that exceed the minimum Energy Star requirements. And even after narrowing it down to the most highly rated models, Brandon believes that there is enough variety in the market to find something that’s pleasing to the eye, as well as the environment and the wallet.

When all is said and done, Brandon hopes that the “Modest Efficiency” home can serve as a learning experience and an example. He wants everyone to insulation goes in, which will strengthen the home’s know that you can build green on a budget, and that air envelope. He’s hoping this combination of sealing building green can even be better for your budget in and insulation will approach the efficiency of full spray the long run. If you’re interested in learning more foam insulation, while giving him a significant cost about the project or following along with the progress, savings. He’ll also be building air tight boxes around visit http://www.modestefficiency.com.

Other RAB members who worked on this project include: • DeCook Excavating

• Advanced Building Center, Inc.

• Greg Wellik Construction

• Expert Insulation

• B&C Plumbing & Heating, Inc.

• Larry Newman Drywall

• Total Electric of Rochester, Inc.

• Warners' Stellian Appliance Co., Inc.

• Tonna Mechanical, Inc.

• Sargent's Landscape Nursery, Inc.

Www.RochesterAreaBuilders.com January 2014 | 9

As this winter drags on and on, let me warm your heart with this month’s

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“ H e y M a t t , w h a t ’ s u p w i t h t h e Saturday - Danny and Drew Real estate agent Drew Levin and Comprehensive Plan Update?” I have heard a lot of discussion from our members concerning the Comprehensive Plan update that the consolidated Olmsted County and City of Rochester’s planning department is doing. The main news is that there is no news yet. This update is not an overnight deal. It will take some time to develop. The planning department is still in the process of hiring a consultant to work with on the update. We have had conversations with planning staff, and offered RAB as a resource for the update process. While it is still early, expect this comprehensive plan update to start off with a transportation plan first, and go from there. Please call, email or talk to me if you have any questions about what happening, and what we’re doing to be involved.

his partner, licensed contractor Danny Perkins, have figured out how to make money in today’s housing market. With a Minnesotan background of buying old, foreclosed houses in good locations, completely renovating them from top to bottom, they then rent them out for top dollar. These guys are both only 30 years old but they already own multiple homes. And down the road, when it’s time to sell, they’ll be sitting on a gold mine. Come learn from Danny and Drew on Saturday, February 8th, at 10:00 am, 1:00 pm, or 4:00 pm.

Sunday - Miriam Johnson Miriam grew up here in Minnesota and moved back to the area not long ago after ten years in Los Angeles learning the ins and outs of the entertainment industry. Miriam “Hey Matt, what’s up with the Home takes a hands-on approach around the house, and also enjoys creating Show? I hear we’ve got some TV Stars and building furniture in her spare coming for our seminars!” time. Miriam has been enjoying the fun, the pranks, and the down-to-earth atmosphere at Hometime with Yes, it’s almost Home Show time! Again this her coworkers. Come see Miriam on Sunday, February year, we have some great talent doing seminars. 9th, at 1:00 pm. After the success of Nicole Curtis last year, we’re bringing in more HGTV talent, and once Again, if you have any questions, ideas, or again they’re from right here in Minnesota. And anything at all you want to talk to me about, we’ve expanded the featured speaker schedule give me a call at 507-282-7698, or email me at to Sunday, with a popular PBS personality filling MatthewL@RochesterAreaBuilders.com! that slot. Here is a little background on seminar speakers:

Matt

www.RochesterAreaBuilders.com 10 | January 2014

BAM Update: What We’re Doing For You: CWGQ Insurance TBG Insurance Gov. Relations Legal Action Education Online Forums Action Center Energy Payback Visit www.bamn.org and log-in to the Members Only site for more information on these BAM initiatives!

BUILDERS

ASSOCIATION OF MINNESOTA

T: 651.646.7959 T: 800.654.7783 W: www.bamn.org

Executive Committee President Chad Kompelein Builder VP KC Chermak Associate VP George Cundy President Elect Mike Paradise Treasurer Gerry Traut Secretary Kurt Welker Past President Keith Kylmala NAHB Representative Kathe Ostrom

December 2013

�� The holidays are a time to count your blessings and give thanks. Membership with the Builders Association of Minnesota is the gift that keeps on giving. Remember to “open” these gifts and take them out for a spin if you haven’t already!

you have access to high quality, discounted coverage from The Builders Group for workers’ comp, Corporate Four for general liability, and RMC for risk management. Check out our insurance deals here.

Legislative, Regulatory, and Legal Protection The biggest benefit of membership is representation and protection at the state Capitol, and before regulatory agencies and the courts. Together with your industry peers, your voice is stronger. It’s important to fight for the best building codes and laws possible. Membership means standing shoulder-to-shoulder with your peers to fight for what’s right.

Information - BAM membership means information. We make sure you're in the know and provide details on what's happening in the industry, the economy, at the Capitol, and right here at BAM. We're tweeting, blogging, posting on facebook, emailing, writing white papers, and more. Like us on Facebook, Follow us on Twitter, sign up to receive our Blog, and as member you get so much more.

Contract Templates - This is a gift that will keep on giving for years to come. Drafted by attorneys that specialize in residential construction, and updated when the law changes, these six members-only contract templates (and one change order) are available in both word and pdf so you can download and edit them right on your computer. These contracts are worth over $10,000. That is a holiday miracle! Members only section - contracts here. Code Guides - When the government puts out a new code, the language is provided but not the how. Enter BAM. For members-only we put together detailed code guides - written by experts - so you know exactly how to build to the new code. Members only section - code guides here. Discounts - An obvious gift of membership is the discounts on stuff you use. Members have access to discounts on fuel at Holiday, office supplies at Office Depot, and a 22% discount on your Verizon plan to name just a few. We have a rebate program that gives you money back and we haven't even talked about the perks at your local and national associations. These awesome savings can more than pay for your annual membership. Members only - get these sweet discounts now! Industry-specific Insurance - The residential construction industry requires special insurance coverage and as a BAM member

Action - Membership means getting influence, leadership training, political education, and networking. As a member you make decisions about real issues that affect your business. In serving on BAM’s committees you step up as a leader and make decisions for 3,000 member companies. At BAM it’s all about politics and by participating you get in on the action. And of course, BAM committee work and events mean networking with your statewide peers and the opportunity to meet, learn, and grow your business. Unity - One of the most important benefits of builders association membership is banding together with your industry peers across the state to create a strong unified front. BAM was created in 1974 to be the statewide voice of Minnesota’s builders and remodelers. We represent you and your business at the State’s Capitol, regulatory agencies and courts because industry unity and doing business with members is good business. Together we work to protect your business and bottom line for a better industry, a better economy, and a better state! We hope you enjoy the gifts of membership now and in the new year! Happy holidays from all of us at BAM! Visit www.bamn.org/membership for more information. Www.RochesterAreaBuilders.com January 2014 | 11

�� construction fashion expose

�� SPONSOR THE HOTTEST NEW SHOW IN TOWN!

Designers are already working on their fantastic pieces for our first ever fashion show, but we still need SPONSORS! By sponsoring this event, you not only get your name attached to an exciting new public event, you get to help contribute to the mission of Habitat for Humanity! Studs, Struts & Stilettos Fashion Expose is coming to the DoubleTree by Hilton on April 24, 2014! To sponsor, contact Rebekah at RNielsen@RochesterAreaBuilders.com. 35 Annual th

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February Meeting Tuesday, February 18, 11:30 AM Struve’s Paint 501 North Broadway Program: Color Forecast for 2014

Don’t miss out as we continue our new program series, “Construction Trends in 2014.” The February Meeting will be all about

color, style, and paint that will make you smile! Don’t forget to RSVP! Please respond by 10:00 am on Monday, February 17th. You can contact the office by phone at 507-282-7698, or email Rebekah at RNielsen@RochesterAreaBuilders.com.

Hosting a Remodelers Council Showroom Visit is a great way to share the newest products & services that you provide with your fellow remodeling professionals. Would you like to host one in 2014? The first half of the year is booked, but we still have openings in August, September, October, and November.

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To reserve your month, contact Rebekah at RNielsen@RochesterAreaBuilders.com!

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www.RochesterAreaBuilders.com 12 | January 2014

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Members

2014 Commercial Builders Council

107 Members as of 12/31/13 AB Systems, Inc. McGough Construction Accord Electric, Inc. MEC Construction, Inc. Advanced Disposal MEP Associates Alpha Video & Audio Merchants Bank Associated Bank Merit Contracting, Inc. Alvin E. Benike, Inc. Minnesota Energy The Blue Book Resources Corporation of Building & Minnwest Bank Construction Nickelson Painting, Inc. The Boldt Company Olmsted National Bank Braun Intertec OnSite Corporation Palmer Soderberg, Inc. Briese Iron Works, Inc. Pella Windows & Doors Brock White Company People’s Energy C.O. Brown Agency Cooperative Cambria Pompeii Painting, Inc. Carpet One Prehn Building Sales, Century Painting & Inc. Decorating, LLC Premier Bank Rochester Chosen Valley Testing, ProBuild Company, LLC Inc. Reliable Contractors, Construction Inc. Partnership, Inc. Rochester Area Counselor Realty of Appraisals, LLC Rochester, Inc. Rochester Area County Materials Economic Corporation Development, Inc. CRW architecture + Rochester Public design group, inc. Utilities Custom Alarm/Custom Rochester Ready Mix Communications, Inc. Concrete Co Dunlap & Seeger Rochester Sign Service, Eastwood Bank Inc. eci, llc Rochester Title & Elcor Construction Escrow Company, Inc. Energy Panel Structures Ryan Electric of Energy Products & Rochester, Inc. Design, Inc. Schoeppner, Inc. Enventis Schwab, LLC Expert Insulation, Inc. Schwickert’s Tecta Ferguson Enterprises America, LLC Friedrich Construction, Stantec Inc. Structural Design Gerhards Group, Inc. Goodin Company Superior Mechanical Haley Comfort Systems Tamarack Materials of (Authorized FireSide Rochester, Inc. Dealer) Think Mutual Bank W.L. Hall Company Tonna Mechanical, Inc. HGA Architects and TSP Architects & Engineers Engineers HDR Architecture TW Construction Heartman Insurance Solutions, LLC Hiller’s Flooring America United Rentals HiMec at Home The Urban Studio Home Federal Savings US Bank Bank Valor Mechanical, Inc. Hunt Electric Veit Companies Corporation Vertical Limit K&M Glass Company Construction K&S Heating, A/C, Viking Automatic Plumbing & Electrical Sprinkler Company Kane & Johnson Viking Electric Supply Architects, Inc. Weis Builders, Inc. Key Builders, Inc. Wells Fargo Bank Knutson Construction Minnesota NA Services Wendland Utz Komitt Concrete, Inc. Widseth Smith Nolting Kraus-Anderson Yaggy Colby Associates Construction Company Kreofsky Building Supplies Kruse Lumber Kuntz Electric, Inc. Kwik Trip, Inc. Leitzen Concrete Products, Inc. Ed Lunn Construction, Inc. Marvin Windows & Doors Mavo Systems, Inc. McGhie & Betts, Inc.

C OMMERCIAL C B UILDERS

OUNCIL

a division of Rochester Area Builders, Inc.

February MEETING DATE: Wednesday, February 5th, 2014 TIME: Registration & Networking at 7:00 A.M.

Program at 7:30 A.M.

PLACE: Ramada Hotel & Conference Center PROGRAM: “Commercial Builders and Affordable Housing” SPEAKERS: Paul Wilson, Olmsted County Commissioner EXECUTIVE COMMITTEE Chairperson: Chris Terry, Knutson Construction Services Vice Chairperson: Nick Leimer, KrausAnderson Construction Company Past Chairperson: Sue Hanson, Rochester Title & Escrow Company, Inc. Members-at-Large: John Hill, Schwab, LLC Shaun Knode, AB Systems, Inc. John Kuntz, Kuntz Electric, Inc. Levi Kaiser, A.E. Benike, Inc. Matt Mohs, WHKS & Company Mike Nordstrom, Superior Mechanical

February Meeting You won’t want to miss our February 5, 2014 Commercial Builders Council meeting. There is a need for affordable housing in the Rochester Area, especially in light of DMC. Come listen to Olmsted County Commissioner Paul Wilson as he discusses the need for affordable housing and hear how our commercial builders will play a crucial role in addressing this need.

Www.RochesterAreaBuilders.com January 2014 | 13

Rochester Building Permits New Residential Single Family Dwelling

2013

VALUATION

2012

VALUATION

4,954,444

3,554,044

December 2013

Single Family Homes 2004

January

2005 2006

2007

2008

2009

2010

2011 2012

2013

Townhome Dwelling

February

Two-Family Houses

Multi-Family Bldgs

1,756,000

March

Manufactured Home

April

110

May

106

June

109

July

August

September

23 34

Existing Residential Deck Addition

8,100

27,620

Room Addition

184,802

30,000

Porch Additions

28,500

Other Additions

Basement Finish Alterations Multi-Family Addition

243,240

October

168,487

November

December

962

702

506

417

302

274

200

191

299

326

322,236

290,011

TOTAL

*total may differ as permits may have been voided.

Assembly (Church)

Year To Date Statistics

Assembly (General)

Multi-Family Alterations

New Commercial

Assembly (Restaurant/Bar)

151,533

Business

1,548,436

Education

Factory/Industrial

Institution

Mercantile

1,393,104

1,200,000

Miscelaneous

Utility (General)

84,470

Residential (Care/Assisted Living)

8,543,750

Storage (General)

Storage (Warehouse)

Existing Commercial Addition

3,230,000

171,678

2,139,364

1,288,937

Structural Shell

100,000

“White Box”

150,000

Interior Demolition Only

20,000

9,000

Other Phased Permits

Business Signs

7,385

25,384

Advertising Sign

Footings & Foundations

600,000

Demolition

Alterations

Other Construction

www.RochesterAreaBuilders.com 14 | January 2014

2013 VALUATION

NO.

Building Permits Issued to Date

NO.

2012 VALUATION

2,232

329,111,548

2,141

329,039,136

Single Family Dwelling

322

77,033,675

299

68,171,380

Multi-Family Buildings Total Units: 40

7,151,000

12,661,774

Trade Permits Issued to Date

7,326

83,677,037

7,015

72,266,085

Electrical

2,403

41,979,355

2,318

27,558,854

322

74,835

294

61,545 22,576,573

Electrical (Temp. Service) Mechanical

1,907

20,977,648

1,837

Gas Piping

545

573,075

542

723,982

Fireplace

370

876,666

339

820,302

Hydronic System Plumbing

Total Permits YTD

141

6,455,462

156

7,397,168

1,638

12,739,996

1,529

13,127,661

9,558

412,788,585

9,156

401,305,221

Information and downloads available at Rochester Building Safety Department’s Website: http://www.rochestermn.gov/departments/bldgsafety/reports/building/index.asp

Byron

Building Permits DECEMBER 2013 New Residential Single Family Detached

NUMBER

VALUATION

731,500

14,000

Existing Residential Basement Finish

Building Permits DECEMBER 2013

New Listings Active Listings Year to Date Pending Listing Sold Listings Sold Listings Year to Date Median Sales Price (SOLD) SOLD Days on Market (DOM) Avg. Year to Date (DOM)

Dec. 2013

Dec. 2012

% Change

73 2,994

66 3,026

-10.6% -1.1%

100 139 2,064

109 120 1,928

-8.3% 15.8% 7.1%

164,900

155,500

3.0%

102

-21.57%

103 -22.33%

Information and downloads available at South East Minnesota Association of REALTORSâ&#x20AC;&#x2122; NUMBER

VALUATION

53,000

Additions

300,000

Alterations

5,000

Alterations

December 2013 Monthly Housing Data

Pine Island Existing Residential

Rochester Real Estate Monthly Housing Data

Website: http://semnrealtors.org/general/stats_market-trends.html

Existing Commercial

Information Provided By:

Www.RochesterAreaBuilders.com January 2014 | 15

Economic Forecast for 2014: Steady Improvement and Less Fiscal Drag Elliot Eisenberg, Ph.D. Looking at 2014, the economic landscape looks pleasantly solid. The American economy should continue to improve, unemployment rates should keep falling, house prices should rise by about 6% to 7% from current levels, and the manufacturing sector will continue to slowly pick up steam. Most importantly, DC budget brinksmanship appears to have taken a breather, thereby reducing policy uncertainty which should boost business spending and risk taking. In addition, the continued rise in consumer sentiment, along with the improving jobs picture, will insure that new home construction continues its steady, albeit unspectacular, ascent. Lastly, while the developing world will slow in 2014, Europe is out of recession, Japan looks better and China looks OK. The only serious domestic fly in the ointment is the fact that wage growth is slim to none and inflation is too low. With all this in mind, I expect full year 2014 GDP to come in at no less than 2.85%, a healthy rise from the expected 2.2% GDP growth experienced in 2013. As for housing starts, they should, for the first time in years, exceed a million units, with total starts coming in at 1.12 million. For all of 2014, single-family starts should total about 750,000 and in Q4, starts should hit an annualized rate of 800,000. Multifamily starts for 2014 should total 370,000 but exhibit no trend from quarter to quarter. As for jobs, given the slowly improving labor market, expect net new monthly job gains to average close to 215,000 per month. As a result, the unemployment rate should steadily fall from the current level of 7% to 6.5% and maybe even 6.4% by year end 2014, with much riding upon the behavior of the falling

labor force participation rate (LFPR). If the LFPR remains where it is, an unemployment rate of 6.5% will not be a stretch, but if the LFRP rises, and that would be a good thing, unemployment may end the year at 6.7%. Inflation will remain quite benign but possibly show modest upward drift. The combination of mildly improving global growth, flat to declining energy and commodity prices, and mildly rising food prices will keep the CPI pretty much where it is; at or below 2%. Moreover, the combination of miniscule rises in import prices, producer prices, and anemic wage growth means that personal consumption expenditure inflation, the Feds preferred inflation measure, will not exceed 1.7%. That will give the Federal Reserve ample room to slowly ratchet down its monthly purchases of Treasuries and mortgage backed securities in $10 billion increments until the program ends in late 2014. Importantly, the Fed should have no problem keeping short term interest rates at their current rock bottom levels, at least through the end of 2014. As a result of faster GDP growth in 2014, 30-year mortgage rates will probably end the year around 5%. But not to worry, as a combination of easing credit market conditions, rising house values, mild increases in consumer spending, and slightly rising exports will keep the economy on track despite mildly rising mortgage rates. In short, given decent GDP growth, the expected interest rate rise will not sap growth. Lastly, I put the chances of a recession in 2014 at only 10%. So look forward to steady improvement during the next 12 months and fear not rising interest rates.

Don’t Miss Elliot at our January General Membership Meeting! Elliot Eisenberg, Ph.D. is President of GraphsandLaughs, LLC and can be reached at Elliot@graphsandlaughs.net. His daily 70 word economics and policy blog can be seen at www.econ70.com.

www.RochesterAreaBuilders.com 16 | January 2014

Membership Information Membership Renewals

as of 12/31/13

One Year

Dunham Associates, Inc. Spring Valley Overhead Door, Inc.

2013 2013

Two to Four Years

Edge Homes & Construction, Inc. Lodermeier’s, Inc. Advantage Cabinets, Inc. CRW architecture + design group, inc. PrimeLending RSP Architects

2012 2011 2010 2010 2010 2010

Five to Nine Years

Bobcat of Rochester Cambria On Site Companies Tom Kalmes Construction, Inc. Vision Homes & Remodeling, LLC XRG Concepts, LLC Your Home Improvement Company Adamson Motors Franklin Energy G. Pestka Appraisals Insty Prints Key Builders, Inc. Massey Land Surveying & Engineering Rochester Area Chamber of Commerce

2008 2008 2008 2008 2008 2008 2008 2007 2007 2007 2007 2006 2005 2005

NEW APPLICANTS: The ﬁrms listed below have applied for membership in the Rochester Area Builders. Any member who objects to admission of any applicant shall notify the RAB Board of Directors in writing of the objection before the next Board of Directors meeting

DURA-OAK KITCHEN MAKEOVERS 5265 Timberidge Ct SE Rochester, MN 55904 Phone: 507-252-1184 Contact: Ed Feeder Associate Member Kitchen Cabinet Refacing Sponsored by: Mary Seehusen, Edina Realty Home Services

MEMBERSHIPS PENDING: NONE MEMBERSHIP TOTAL: 452 RETENTION RATE: 91.8% As of 12/31/13

WE WELCOME THE FOLLOWING NEW MEMBERS IN JANUARY:

Ten to 19 Years

Stantec MLT Group Gregor Builders, Inc. Simonson Builders, LLC Master Builders, Inc. Curry’s Custom Cut Gutter, LLC Rochester Sign Service, Inc. TSP Architects & Engineers Waste Management

2004 2001 2000 2000 1999 1998 1997 1997 1997

20 to 24 Years

DreamMaker Bath & Kitchen

1992

25 Years & More

Region Millworks, Inc. Rochester Title & Escrow Company, Inc. Schad Tracy Signs, Inc. Custom Alarm/Custom Communications, Inc. Wendland Utz DeWitz Home Builders, Inc. ProBuild Company, LLC Pendle Hansen Bagne Insurance US Bank Kruse Lumber

1989 1987 1983 1981 1968 1965 1961 1959 1955 1954

CLAREY’S SAFETY EQUIPMENT 3555 9TH Street NW, Suite 200 Rochester, MN 55901 Phone: 507-289-6749 Contact: Derek Clarey Associate Member Industrial & Fire Safety Training and Products Sales Sponsored by: None Listed R. THOMAS CONSULTING, LLC 2808 Century Court NE Rochester, MN 55906 Phone: 507-272-6964 Contact: Ronald Sobotta Associate Member Publishing Sponsored by: Jean DeWitz, DeWitz Home Builders, Inc. VENNEHJEM BUILDING CORPORATION 2500 County Road 42, #9 Burnsville, MN 55337 Phone: 952-890-3000 Contact: Joe Hilla Builder Member Residential Builder Sponsored by: Dayna Nosan, Ames Construction, Inc.