Foundations - February 2015 by Rochester Area Builders, Inc.

A&A Electric & Underground, Inc. + AB Systems, Inc. + Abbco Company + ABC Supply Company, Inc. + Above All Roofing of Rochester, Inc. + Accord Electric, Inc. + Action Plumbing, Heating & A/C + Adair Electric Company + Adamson Motors + Advanced Builders & Remodeling + Advanced Builders, LLC + Advanced Building Center, Inc. + Advanced Disposal + Advantage Cabinets, Inc. + Ag Services, Inc. + AgStar Home Mortgage Services + Alexander & Sons Builders + All Craft Exteriors, LLC + 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. + BARK.L Consulting Engineers, LLC + Al Barker Custom Homes, Inc. + Barrier Free Access, Inc. + Basement Water Control + Batzel Builders, Inc. + BBHA Rochester, LLC + 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 + Brooks Excavating Company, Inc. + C.O. Brown Agency + Bruce Bucknell Construction, Inc. + Budget Blinds + Building Products, Inc. + Burdick Builders, Inc. + Byrne Electric, Inc. + Cachiaras Building & Remodeling + Cambria + Carpet One + CarpetsPlus of Rochester + Castlewood Homes, Inc. + Centurion Ridge, LLC + Charter Communications/Media + Chladek Construction, LLC + Chosen Valley Testing, Inc. + Christian Brothers Cabinets + CHS, Inc. + City of Byron + City of Chatfield + City of Eyota + City of Preston + City of Spring Valley + Citywide Insulation, Inc. + Clarey's Safety Equipment + Clayton Thomas Blinds of Rochester + Clear Channel Radio (Laser/Fox/KFAN) + Clements Chevrolet Cadillac Subaru + CliftonLarsonAllen, LLP + Closet Organizers + Coldwell Banker Burnet + Commercial Leasing Services + Construction Partnership, Inc. + 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 Homes by Bradley, 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. + DiNicola & Pestka Appraisals + Distinguished Homes by Mitch Hagen, LLC + DMC Plumbing & Heating, Inc. + Dolan's Landscape Center, Inc. + Donlar Construction Company + DreamMaker Bath & Kitchen + Dunham Associates, Inc. + Dunlap & Seeger + JE Dunn Construction + Dura-Oak Kitchen Make Overs + Eastwood Bank + eci, llc + Eckert Construction, Inc. + Edel Construction, LLC + 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 + Exclusive Home Builders & Remodelers + Expert Insulation, Inc. + Express Employment Professionals + Extreme Panel Technologies, Inc. + Fairway Outdoor Advertising, LLC + Fat Willy's Bar & Grill + 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 + GAF + Gander Plumbing & Heating, Inc. + Dale Gathje Construction, Inc. + Steve Gentry Construction, LLC + Gerhards - The Kitchen & Bath Store + Gift Book Plus + Robert Gill Builder, Inc. + Godwin Law Office + Goodin Company + Great River Overhead Door + Green Lawncare Irrigation & Service Co. + Gregor Builders, Inc. + GulfEagle Supply + Habitat for Humanity - Rochester Area + Haley Comfort Systems (Authorized FireSide Dealer) + W.L. Hall Company + Hammer Homes, Inc. + Hanson Construction & Specialty Cabinets, LLC + Harmony Economic Development Authority + Hayfield Window & Door Company + HDR Architecture + Heartland Security + 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 + Holiday Inn Downtown + 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. + Insty Prints + IntegraSpec Central/Jeff Mueller Construction + Michael Jack, LLC + JNS Builders, LLC + J.P. Johnson Custom Builders, Inc. + JP's Construction Remodeling & Repair, Inc. + K&M Glass Company + K&S Heating, A/C, Plumbing & Electrical + Kahler Hospitality Group + Tom Kalmes Construction, Inc. + Keller Williams Premier Realty + Key Builders, Inc. + King's Flooring, LLC + Kirkland Enterprises, LLC + 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. + 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. + Low Voltage Contractors + Lowe's Home Maas Companies, Inc. + Maier Tree & Lawn + Majestic Homes, Inc. + R.J. Improvement + Luxury Bath Remodeling + Manemann Custom Homes + Manufacturer's Bank & Trust + Maplewood Homes, LLC + Markham Homes, LLC + markit + Marvin Windows & Doors + Massey Land Surveying & Engineering + Master Builders, Inc. + Mavo Systems, Inc. + Associates, Inc. + McGladrey + McGough Construction + MDH, Inc. + McGhie & Betts - a Division of WSB & Meadow Lakes Builders + MEC Construction, LLC + Med City Builders of Rochester, LLC + Menards South + MEP Associates + Merchants Bank + Merit Contracting, Inc. + MetLife Premier Client Group of the Upper Midwest + Michael's Custom Cabinets, Inc. + Midwest LeafGuard of Rochester, Inc. + Midwest Walls, LLC + Minnesota Energy Resources Corporation + Minnwest Bank + MLT Group + Morris Concrete, Inc. + Larry Newman Drywall + Nickelson Painting, Inc. + Regional Council + North Star Stone & Masonry + Northern Lights & North Central States Furnishings + Northgate Chiropractic Clinic + Nuss Truck & Equipment + Ohly Law Office + Olmsted County Planning Dept, Insp. Div. + Olmsted County Public Health + Olmsted National Bank + On Site Companies + Otis Custom Homes, LLC + Overhead Door Co. of Olmsted County + Owner's Plumbing, Inc. + Oxi-Fresh Carpet Cleaning + Paape Energy Services + Pace International + Pahl & Kaye, Inc. + Palmer Soderberg, Inc. + Paramark Corporation + PC Applications Consultants, Inc. + Pearson Builders, Inc. + Pebble Creek/Western Walls + Pella Windows & Doors + Pendle Hansen Bagne Insurance + Penz Custom Homes, Inc. + People's Energy Cooperative + 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 + Professional Education Resources, LLC + Quality Overhead Door Company, Inc. + Quality Siding & Window, Inc. + Michael Quinn Law Office + R&M Development Company + R. Thomas Consulting, LLC + Radcliffe Homes & Remodeling + Range Custom Homes, LLC + RCON Homes, Inc. + RCTC Carpentry Program + RE/MAX of Rochester + Region Millworks, Inc. + David Reiland Building Contractor, LLC + Reliable Contractors, Inc. + Renters Warehouse Rochester + Reynolds Design and Construction + 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. + Ronningen Roofing, Inc. + RSP Architects + Ryan & Grinde, Ltd. + Ryan Electric, Inc. + Ryan Windows & Siding, Inc. + S&S Overhead Door, Inc. + Sargent's Landscape Nursery, Inc. + Sawyer Construction Services, Inc. + Schad Tracy Signs, Inc. + Schmidt Goodman Office Products + Schoeppner, Inc. + Schumann Granahan Hesse & Wilson, Ltd. + Schwickert's Tecta America, LLC + Seavey Builders, Inc. + SEH Yaggy + Dan Severson Builders, Inc. + Shanahan Building & Remodeling, LLC + Shingobee Builders, Inc. + Sign Here, Inc. + Simonson Builders, LLC + SL Contracting + Smart Home Innovations & Engineering, Inc. + Smith Schafer & Associates, Ltd. + Solar Connection, Inc. + SOLO plumbing & ResSprinklers, LLC + Somerby Golf Community + Space Concepts, Inc. + Spahn & Rose Lumber Company + Greg Speedling Contracting, Inc. + Spring Valley Overhead Door, Inc. + Stadsvold's Lawn & Landscape + Stantec + Steel Constructors, Inc. + Stencil Homes + Sterling State Bank + Stevens Heating, Inc. + Stewartville Economic Development Authority + Stone Expressions + StoneBridge Builders + Structural Design Group, Inc. + Struve's Paint and Decorating + 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, Inc. + Thermo-Tech Windows + Thiemann Construction, Inc. + Thimijan Custom Homes, LLC + Think Mutual Bank + Thomas Tool & Supply + Thompson's Garage Door and Openers + Tile Superstore & More + 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. + Ultimate Surfaces + United Heating & Cooling + United Products/Allied Building Products Corp. + United Rentals + The Urban Studio, LLC + US Bank + Valor Mechanical, Inc. + Val-U-Blinds + Vector Windows + Veit Companies + Vennehjem Building Corporation + Vertical Limit Construction + Viking Automatic Sprinkler Company + Viking Electric Supply + Vision Homes & Remodeling, LLC + WA Insurance + Warners' Stellian Appliance Co., Inc. + Waste Management + Homes + Wausau Supply + Weis Builders, Inc. + Greg Wellik a publication of Wausau Construction + Wells Concrete Products, Inc. + Wells Fargo Bank Minnesota NA + Wells Fargo Home Mortgage + Wendland Utz + Werner Electric Supply + West Bank + Jim Whiting Nursery & Garden Center, Inc. + Widseth Smith Nolting + Wildwood Sports Bar and Grill + Women Communications, LLC + Woodruff Company + Wright Homes, Inc. + WT Lighting + Xcel Energy + XRG Concepts, LLC + Rick Yerhot Builder + Your Home Improvement Company + Zumbro Haven, LLC = RAB

FEBRUARY

2 01 5

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

Continuing Education

Don’t Let a Little Lead Paint

Lock You Out of Remodeling EPA Lead Renovator Refresher & Training Courses For: REMODELERS, GENERAL CONTRACTORS, SPECIALTY CONTRACTORS, PAINTERS, PLUMBERS, ELECTRICIANS, MECHANICAL CONTRACTORS, WATER & FIRE RESTORATION COMPANIES, OR ANYONE DISTURBING LEAD PAINT. Rochester Area Builders in partnership with the University of North Dakota Environmental Training Institute is offering four-hour EPA lead renovator refresher courses and an eight hour lead renovator initial course. EPA lead certification and/or recertification is required for any renovation that disturbs more than six square feet of interior or 20 square feet of exterior lead paint in residential or child-occupied facilities built before 1978.  The EPA has the ability to fine up to $37,500 per offense, per day to anyone who is not compliant.  More details available at www.epa.gov/lead These courses qualify for Minnesota Department of Labor & Industry continuing education credits.  EPA-Certified Trainers will teach these classes.

Classes held at Canadian Honker Events at Kahler Apache 1517  16th Street SW Rochester

Lead Renovator Refresher Courses

4 Hours of Building Contractor CE Credits Courses held from 8am-12pm and 1-5pm (only need to attend one 4 hr class)

RAB Member - $149 Non-member - $179

Wednesday, March 25th

Lead Renovator Initial Courses

8 Hours of Building Contractor CE Credits Course held from 8am-5pm (Includes Lunch)

CLICK HERE TO DOWNLOAD THE REGISTRATION FORM!

RAB Member - $250 Non-member - $300

Be Aware of Your Lead Recertification Date!

Thursday, March 26th

EPA lead renovator certifications expire every five years.

FOUNDATIONS

January 2015

www.RochesterAreaBuilders.com

News from The President December 30, 2014

I am writing this prior to Ground Hog Day 2015. Hopefully, Punxsutawney Phil does not see his shadow and spring is around the corner. For all of us in the building industry, an early spring will make our lives a lot easier.

This past week, I had the opportunity to attend the NAHB International Builders Show in Las Vegas. Over 50,000 attendees participated in America’s largest annual residential housing construction trade event for manufacturers and suppliers of home construction products and services. This was an incredible experience and I highly encourage anyone who is able, to attend in the future. There definitely was a buzz in the air, as most everyone I came in contact with, was bullish on construction opportunities in 2015. Locally, I hear the same and am excited to attend our own Home Show on February 6th, 7th, & 8th!

Index Lead Renovator Classes........................... 2 News from the President.......................... 3 RAB Home Show....................................... 4 January General Membership Meeting................................ 5 Public Works Dept. News.......................... 6 Hey Matt, What’s Up With That?.............. 7 Studs, Struts & Stilettos Forms...........9-11 Remodel It Right News...........................12 Commercial Builders Council.................13 Rochester Permits................................... 14 Byron/Pine Island Permits......................15 Elliot Eisenberg Article............................ 16 Membership Information........................ 17 NAHB Member Discounts.......................18

Last month, I mentioned how our organization is the Voice of Building in the Rochester area. I want to expand on that and discuss a theme I will refer to often this year - TEAM RAB. What is TEAM RAB? It is the concept of all of us working together to make our organization strong. The Bankers, Architects, Engineers, Contractors - all of us - Builder Members and Associate Members, working together to improve the organization. I mentioned this theme at our awards banquet last December. In rolling this out, we had TEAM RAB wristbands made and handed out that night. We also gave these out at the Christmas party…hopefully some of you are still wearing them. The idea behind this is simple. There are plenty of opportunities to become involved in our organization. We are all busy, but if each of us contributes in some way, even a small amount, we all benefit. If you would like to become more involved or try something different, contact an RAB staff member. They would be more than happy to explain what volunteer options are available. See you at the Home Show!

Executive Director/Editor John Eischen

John Eckerman 2015 RAB President

Premier Bank Rochester

Space for Lease at Multiple Locations

Downtown • Green Meadows • North Broadway & 37th Street

Contact Corey Heimer at 507-285-3700 or cheimer@premierbanks.com www.RochesterAreaBuilders.com

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

January 2015

FOUNDATIONS

U D E ND E N ER U O Y ON G N ER I H T Y O R O E F EV

AT THE RAB HOME SHOW February 6-7-8 Mayo Civic Center

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

L A C I N A

SIDING

& WINDOWS, INC. Because itâ&#x20AC;&#x2122;s your home.

HOME SHOW Facebook Page RochesterAreaBuilders.com

HOME SHOW Exhibitors Page 4

FOUNDATIONS

January 2015

www.RochesterAreaBuilders.com

Join us at the January

General Membership Meeting Tuesday, January 27th, 5:00 - 8:30 pm at the Holiday Inn Downtown 220 South Broadway

5pm Social Hour 6pm Dinner & Announcements 7pm Program - Perceptions Vs. Reality ... A News Anchorâ&#x20AC;&#x2122;s Perspective Robin Wolfram, KTTC Anchor

Christy Buchan, Energy Products & Design, Inc.

Delbert Feenstra, Knutson Construction Services

Carla Kilpatrick, Home Federal Savings Bank

Kevin Worden, Rochester Area Habitat for Humanity

Mike Allen, Mike Allen Homes, LLC Karen Blissenbach, Design Studio B Mickey Elias, Elias Construction, LLC Rob Jones, Superior Mechanical Levi Kaiser, Alvin E. Benike, Inc. Sam Peyton, Kingâ&#x20AC;&#x2122;s Flooring, LLC Jon Range, Range Construction, LLC Lindsey Rippentrop, Premier Bank Rochester Brian Sheehan, Weis Builders, Inc.

Secretary Treasurer

Past President Directors

Commercial Builders Council

Nick Leimer, Kraus-Anderson Construction Company, Chair Dana Hlebichuk, Widseth Smith Nolting, Vice Chair

Development Council Chair

Jill Mickelson, Braun Intertec Corporation

Jerry Jensen, Valor Mechanical, Inc.

Joe Weis, Weis Builders, Inc.

Steve Buss, Cornerstone Builders & Real Estate, Inc., Rep. David Kane, Widseth Smith Nolting

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

Remodelers Council Chair

2014 Associate of the Year Karen Blissenbach Jerry Jensen Al Mannino Lindsey Rippentrop

2014 Cornerstone Award A.E. Benike, Inc. Kruse Lumber Think Mutual Bank Smith Schafer & Associates, Ltd.

www.RochesterAreaBuilders.com

John Eckerman, The Boldt Company

Vice President

Jake Schleusner, Merit Contracting, Inc., Chair Tom Leimer, Knutson Construction Services, Vice Chair J.J. Webster, Kraus-Anderson Construction Company, Past Chair

We will also be announcing our annual award winners at the meeting. Congratulations to all the nominees!

Drink Sponsor:

Builders Exchange Council Representatives

Perception IS reality...or is it? In a deeply personal and often humorous presentation, Robin will share her experiences of how this concept has impacted her life, personally and professionally.

2014 Builder of the Year Adam Benike Jay Burke Brian Chladek Levi Kaiser

President

Dessert Sponsor:

National Life Directors National Directors State Directors

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 Tour-

Ryan Kling-Punt RPunt@RochesterAreaBuilders.com Golf Outing, Sporting Clays, Directory, Newsletter, E-News Update

January 2015

FOUNDATIONS

Winter Site Maintenance Winter conditions can make it difficult to stabilize construction sites. The mountains of snow will eventually melt and run off the site. Properly prepared sites will have best management practices (BMPs) that control sediments and erosion during winter warm-ups and the spring thaw. Taking the time to maintain your erosion and sediment control BMPs will protect our waterways from sediments and keep your site in compliance. Winter Maintenance • Check erosion and sediment control measures as snow melts to make sure they are working as you intended. • Minimize the ground you disturb and stabilize these areas immediately. • Conduct, at a minimum, weekly perimeter inspections. Use sandbags or other measures to repair damaged silt fence when frozen ground makes driving posts in feasible. • Keep sandbags and gravel onsite to address problems that need immediate attention. • Follow all winter maintenance strategies outlined in the site’s SWPPP.

An ESC log filled with rock and gravel can be used for perimeter control.

Winter Construction • Enlarge and stabilize site entrances to enable snow stockpiling. • Provide a 15 foot-wide buffer around perimeter controls to prevent damage from snow clearing. A 25 foot wide buffer from snow storage areas is also encouraged. • Stockpile frozen materials, including soil, separately and at least 100 feet away from any wetland or water resources. Frozen materials will melt in the spring and can become unworkable and difficult to transport because of high moisture content. • As always, limit the amount of ground you disturb. • Options for sediment barriers installed during frozen conditions include: compost berms, logs and rolls, fiber rolls, rock bags, and rock filters.

An example of a protected storm drain inlet.

Additionally, consider putting your hard surfaces on a low-salt diet this winter. It is important to keep our sidewalks, driveways, and roads free of ice and snow during winter; however, rivers and lakes pay a price when we over-apply deicing products. Once salt is introduced to water, it does not go away and it negatively impacts aquatic plants and animals. You can lessen your contribution to salt in our waterways by: matching your product to the conditions, reducing how much product you use, and sweeping up remaining product between storms. Find additional information and short videos on winter maintenance including winter salt applications here: http:// www.pca.state.mn.us/sbiz41 Sources: www.pca.state.mn.us; www.nebraskah2o.org

FOUNDATIONS

January 2015

www.RochesterAreaBuilders.com

of the project. The valuation is the best figure for year-to-year comparison when talking commercial construction because of the variation in the size of the projects. Our valuations have been all over the board, but it is easy to see that we are also experiencing growth in that sector. See the graph for trends:

HEY MATT!

What’s up with that?

Historical Commercial Construction Valuation Data 120000000 100000000 80000000

It is finally time for another edition of HMWUWT. This month, we are going to go over our 2014 permit numbers, and the year of construction over all.

60000000 40000000 20000000

We are going to touch on Single Family development 0 first, then dive into the commercial world. Over the 2006 2007 2008 2009 2010 2011 2012 2013 2014 last decade and a half, our permit numbers for single Valuation family homes in Rochester have been high, low, and As you can see, there is a lot more variance in commercial valuation from year to year. However there everywhere in between. In the early 2000’s, we is an interesting trend we can look at. If we take out the outlier of a year in 2012, we notice we have As you can see, there is a lot more variance in hovered around building 800 homes a year. Keep in maintained valuation levels or increased valuation levels since 2009. In 2010, commercial valuation commercial valuation from year to year. However mind that this was pre-recession. Starting in 2007, our level started to rebound. In 2012, single family development also started to rebound. What this shows is that when we have a strong commercial valuation increase, that single family residential construction there is an interesting trend we can look at. If we take numbers started to nose dive. In 2007, we built 417 follows a year or two later. out the outlier of a year in 2012, we notice we have It is finally time for another edition of, “Hey Matt, What’s up with that?” This edition we are going to go homes, and in 2008 we did 308 homes. To this day, we This is good news. With an increase of $17,000,000 in valuation from 2013 to 2014, and the commercial maintained valuation levels or increased valuation over our 2014 permit numbers, and the year of construction over all. have not reached the level of homes we built in 2007. projects coming down the pipe (Mayo Civic Center, Recreation and Senior Center, Broadway at Center, levels since 2009. In 2010, commercial valuation level We are going to touch on Single Family development first, then dive into the commercial world. etc) valuations will continue to grow. While we are seeing steady growth for single family construction In 2009, we built 281 Homes, compared to 200 homes today, that growth rate should, according to past trends, continue to rise. While 2014 may be along the Historically, our permit numbers for single family homes in Rochester have been high, low, and started to rebound. In 2012, single family development everywhere in between. In the early 2000’s, we hovered around building 800 homes a year. Keep in in 2010. 2011 was our worst year in this Millennium, lines of STEADY growth, I expect the single family construction growth rate to rise in 2015 and 2016. also started to rebound. What this shows is that when mind that this was pre‐recession. Starting in 2007, our numbers started to nose dive. In 2007, we built when we built 191 homes. We can see the rebound If you don’t agree with my future trends analysis, then just take this away: Construction activity is on the 417 homes, and in 2008 we did 308 homes. To this day, we have not reached the level of homes we we have a strong commercial valuation increase, that rise in both the Single Family and Commercial sectors! As always, if you have a question about anything built in 2007. In 2009, we built 281 Homes, compared to 200 homes in 2010. 2011 was our worst year starts in 2012 when we built 299, in 2013 we built 326. you find interesting/confusing during your work day, give me a call/email and hopefully I can find out single family residential construction follows a year in this Millennium, when we built 191 homes. We can see the rebound starts in 2012 when we built the answer for you! See the graph for historical numbers: 299, in 2013 we built 326. See the graph for historical numbers: or two later. Historical Single Family Permit Data

This is good news. With an increase of $17,000,000 in valuation from 2013 to 2014, and the commercial projects coming down the pipe (Mayo Civic Center, Recreation and Senior Center, Broadway at Center, etc) valuations will continue to grow. While we are seeing steady growth for single family construction today, that growth rate should, according to past trends, continue to rise. While 2014 may be along the lines of STEADY growth, I expect the single family construction growth rate to rise in 2015 and 2016.

600 500 400 300 200 100 0 2006

2007

2008

2009

2010

2011

2012

2013

2014

Permits

If you don’t agree with my future trends analysis, then Finally, the number we have all been waiting for. In just take this away: Construction activity is on the rise 2014 we built: 369 homes. This number is significant in both the Single Family and Commercial sectors! As for many reasons. One, we are seeing good STEADY always, if you have a question about anything you find growth. Our development is not hot one year, and then interesting/confusing during your work day, give me As for commercial construction. We typically talk about commercial construction in terms of valuations cold the next. These number shows good STEADY a call/email and hopefully I can find out the answer of the project. The valuation is the best figure for year‐to‐year comparison when talking commercial construction because of the variation in the size of the projects. Our valuations have been all over the growth for the last 2 years. From 2012-2013 we grew for you! board, but it is easy to see that we are also experiencing growth in that sector. See the graph for trends: roughly 9%. From 2013-14 we grew 13%. This steady growth is exactly what we want to see as we continue Thanks! to rebound from the recession.

Finally, the number we have all been waiting for. In 2014 we built: 369 homes. This number is significant for many reasons. One, we are seeing good STEADY growth. Our development is not hot one year, and then cold the next. These number shows good STEADY growth for the last 2 years. From 2012‐2013 we grew roughly 9%. From 2013‐14 we grew 13%. This steady growth is exactly what we want to see as we continue to rebound from the recession.

Matt

As for commercial construction. We typically talk about commercial construction in terms of valuations www.RochesterAreaBuilders.com

January 2015

FOUNDATIONS

January 2015

www.RochesterAreaBuilders.com

Sponsorships

STUDS, STRUTS & ST ET TOS

Studs, Struts & Stilettos will be a community event and a fund raiser for Habitat for Humanity. As such, all sponsorships are open to both members and non-members of RAB!

construction fashion expose

Studs, Struts & Stilettos will be held on Thursday, April 23rd, 2015, in the Mayo Civic Center Auditorium.

SOLD

Title Sponsor....................................$3,500 • • • • •

10 VIP tickets in Reserved Area ($650 value) Champagne in a keepsake glass ($100 value) Repetitive On-stage verbal recognition On air Recognition with media sponsor Your company logo on: - Tickets - Program - Promotional flyers - Website and social media pages - All advertising for the event (print ads, etc.) - Table tents at bar and cocktail tables

Gold Sponsor .................................................... $600 • 4 VIP tickets ($260 value) • Company Name on: - Program - Promotional flyers - Table tents at bar and cocktail tables - Website & social media pages Bronze Sponsor .............................................. $325 • 2 VIP tickets ($130 Value) • Company name on Program

Platinum Sponsor ...................................... $1,100 • 8 VIP tickets ($520 value) • On-stage verbal recognition • Company name on Website & social media • Logo on: - Program - Promotional flyers - Table tents at bar and cocktail tables

c Please charge my Credit Card (Visa, MasterCard, or Discover) the above amount. Number:

3 digit code:

c Please Invoice me for the above amount. Company: Phone:

Signed:

Email:

Return to: Rochester Area Builders, Inc. 108 Elton Hills Lane NW * Rochester, MN 55901 Fax: 507-282-6351 * RAB@RochesterAreaBuilders.com

Exp Date:

Date:

Sponsorship Deadline: Thursday, March 12th

REMODELERS

a division of rochester area builders, inc. www.RochesterAreaBuilders.com

January 2015

FOUNDATIONS

STUDS, STRUTS & ST ET TOS construction fashion expose

Design Entry

Are you interested in showing a design on the Runway? We’re looking for creative teams of designers to conceptualize and create stunning and unique looks for our show!

Design Entry Fee (non-refundable): $100 for RAB Member, $150 for non-member Details for Entry • • • • • • •

• • • •

At least 50% of the design must be made using raw building materials (examples, but not limited to quartz, tile, glass, wood, metal, landscaping materials, or anything you might utilize in the construction of a home). Non-visible portions of your design are not required to be construction related materials, and do not count toward percentage. All materials costs are the responsibility of the design team. Design concept will be reviewed by Committee to determine eligibility of design. Designers will be contacted if their designs do not meet the criteria. Submit a minimum of 10 pictures by April 9th of the of ensemble from beginning stages through final stages of costume creation. (email Ryan Kling-Punt at rpunt@rochesterareabuilders.com in jpeg format.) Photos will be used for a slideshow during intermission of the show. Have fun with them! Maximum of 2 assistants per model will be allowed to accompany the model behind stage. Assistants will be required to wear identification provided by staff. The assistant will remain back stage for the duration of the show. Design teams will receive two General Admission tickets, to be distributed as you choose. Tickets can be upgraded to VIP for an additional fee of $35 per ticket. No paints, over-sprays or flammables allowed to be brought on premises. Designers must supply their own models. Award winning designers agree to allow their designs to be used to promote future shows. Hair & makeup will be provided for models.

q Yes, on behalf of my company or myself, I, the below signed, commit to submitting a Design Entry in Studs, Struts & Stilettos, to be held Thursday, April 23, 2015 in the Mayo Civic Center Auditorium.

Signature

Company (if Applicable) Address Phone

Committee Contacts:

Contact Email

Christina Jorgensen, Beyond Kitchens, LLC - Chair 507.273.3099 Rebekah Nielsen, Rochester Area Builders 507.282.7698 Patricia McCleese, Habitat for Humanity 507.252.0849 Ext. 4

Return to: Rochester Area Builders, Inc. 108 Elton Hills Lane NW * Rochester, MN 55901 Fax: 507-282-6351 * RAB@RochesterAreaBuilders.com

Date

City/State

Zip

Entry Deadline: Friday, February 20th Visit the Habitat ReStore for great deals on Materials!

REMODELERS a division of rochester area builders, inc.

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January 2015

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STUDS, STRUTS & ST ET TOS construction fashion expose

Design/Team Information

The following information must be submitted by March 12th. Absolutely no changes after April 9th.

Event will be held on April 23rd, 2015 in the Mayo Civic Center Auditorium.

How you would like to be listed in the program: Designer(s):

Company (if applicable): Title of Design:

Design Description: (To be read by the MC as model walks the runway. No thank yous in the description. Keep under 30 seconds/120 words. Committee reserves the right to edit description for time restraints.)

List the construction related materials used in the design:

_____% of the design is construction related material (Must be at least 50%).

Will your model be wearing a hair accessory? q Yes q No (If yes, please provide a photo with this form.) Model Contact Information: Name:

Phone:

Additional Information:

Email:

Hair and Make-up will be provided for all models. If you choose to do your own, please notify Rebekah at RNielsen@RochesterAreaBuilders.com. Photos: As you are creating your design, please remember to take a minimum of 10 photos throughout the process. We will be putting together a slideshow of everyone working on their designs to display at the event while the judges tally their scores. Photos are to be emailed to Ryan Kling-Punt at RPunt@RochesterAreaBuilders.com by April 9th.

Visit the Habitat ReStore for great deals on Materials! Return form to: Rochester Area Builders, Inc. 108 Elton Hills Lane NW * Rochester, MN 55901 Fax: 507-282-6351 * RAB@RochesterAreaBuilders.com www.RochesterAreaBuilders.com

Awards: Most Wearable Best Craftsmanship Best Use of Construction Materials Bling Factor/Best Accessory (ex: handbag, shoes, jewelry, hat) Honorable Mention Best of Show Peopleâ&#x20AC;&#x2122;s Choice

REMODELERS a division of rochester area builders, inc.

January 2015

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REMODEL IT RIGHT NEWS February 2015

STUDS, STRUTS & ST ET TOS

PRESENTED BY:

construction fashion expose It’s time to get involved! The Sponsorship Forms and Design Entry Forms are ready and waiting for you to fill them out! Download them from our website right here:

Sponsorship & Design Forms And after you sign up, be sure to tell your friends and associates about the show. Get them involved, or just tell them to buy tickets. We’ll have a lot more seating this year at the new venue, so we’ll have room for everyone, and it’s definitely a show that you won’t want to miss!

Don’t Forget to

Studs, Struts & Stilettos on Facebook!

R E M O D E L E R S Remodelers

TOUR

S E P T E M B E R 11 AM 12th & 13th - 5 PM

Mark your calendars today and start thinking about your next Remodelers Tour entry! It’s an excellent marketing opportunity where customers can view your remodeled projects first hand.

Entry forms will be available in May! 2015 EXECUTIVE COMMITTEE Chairperson: Jerry Jensen, Himec at Home Vice Chairperson: Denyle Devlaeminck, Ferguson Enterprises Past Chairperson: Sam Peyton, King’s Flooring Katie Darval, Beyond Kitchens, LLC Rick Hampel, Merit Contracting, Inc. Kathy Blohm, Top Shop of Rochester, Inc. Brian Chladek, Chladek Construction, LLC John McMahon, Haley Comfort Systems/Fireside

FOUNDATIONS

January 2015

February Meeting Tuesday, February 17th, 12:00 Noon Canadian Honker Events at Kahler Apache 1517 16th St SW

Program: Building Code Update Speakers: Rochester Building Safety Dept. 11:30 Networking 12:00 Lunch & Program Cost for Lunch: $15 per person Please RSVP by Monday, February 16th. You can contact the office by phone at 507-282-7698, or email Rebekah at RNielsen@RochesterAreaBuilders.com.

Link Up with the Remodelers Council Don’t forget to include the Remodelers Council logo in your advertising! It adds credibility to your company by showing you belong to a professional organization in your industry. And if you include the Council’s logo on your website with a link to RemodelitRight.org, we will in turn create a link from the Council’s website to yours. Contact Audra at abolduan@rochesterareabuilders.com to receive the Council’s logo and link up today!

REMODELERS CORNER Every Issue of Rochester Women Magazine contains a wonderful column called Remodelers Corner. We have partnered with the magazine for years to provide them with Remodelers Council members to highlight. The January/February issue highlights the hard work and beautiful results of Elias Construction, LLC. What began as a Kitchen remodel soon evolved into several other projects, including energy efficiency upgrades throughout the house. Check out the article by clicking HERE!

www.RochesterAreaBuilders.com

Members

C OMMERCIAL C B

2015 Commercial Builders Council

120 Members as of 1/12/14 AB Systems, Inc. Kruse Lumber Accord Electric, Inc. Kuntz Electric, Inc. Action Plumbing, Kwik Trip, Inc. Heating, & A/C Leitzen Concrete Advanced Disposal Products, Inc. Alpha Video & Audio Low Voltage Contractors BARK.L Consulting Marvin Windows & Engineers, LLC Doors Alvin E. Benike, Inc. Mavo Systems, Inc. BEVCOMM McGhie & Betts - a The Blue Book of Division of WSB & Building & Associates, Inc. Construction McGough Construction The Boldt Company MEC Construction, Inc. Braun Intertec MEP Associates Corporation Merchants Bank Briese Iron Works, Inc. Merit Contracting, Inc. Brock White Company Midwest Walls, LLC C.O. Brown Agency Minnesota Energy Cambria Resources Corporation Carpet One Minwest Bank Charter Nickelson Painting, Inc. Communications/ Northstar Stone & Media Masonry Chosen Valley Testing, Olmsted National Bank Inc. On Site Companies Clarey’s Safety Palmer Soderberg, Inc. Equipment Pella Windows & Doors Clayton Thomas People’s Energy Blinds of Rochester Cooperative Clements Chevrolet Pompeii Painting, Inc. Cadillac Subaru Prehn Building Sales, Construction Inc. Partnership, Inc. Premier Bank Rochester CRW architecture ProBuild Company, LLC + design group, inc. Reliable Contractors, Custom Alarm Inc. D2E, LLC Rochester Area Donlar Construction Appraisals, LLC Company Rochester Area Econ. Doyle Conner Company Development, Inc. Dunham Associates, Rochester Public Inc. Utilities Dunlap & Seeger Rochester Ready Mix JE Dunn Construction Concrete Co Eastwood Bank Rochester Sign Service, eci, llc Inc. Elcor Construction, Inc. Rochester Title & Energy Products Escrow Company, Inc. & Design, Inc. RSP Archietects Enventis Ryan Electric, Inc. Expert Insulation, Inc. Schoeppner, Inc. Fat Willy’s Bar & Grill Schwab, LLC Ferguson Enterprises Schwickert’s Tecta Gerhards – The Kitchen America, LLC & Bath Store SEH Yaggy Goodin Company Stantec Haley Comfort Systems Sterling State Bank (Authorized FireSide Structural Design Dealer) Group, Inc. W.L. Hall Company Superior Mechanical HDR Architecture Tamarack Materials, Inc. Heartman Insurance Think Mutual Bank HGA Architects Tonna Mechanical, Inc. and Engineers TSP Architects & Hiller’s Flooring America Engineers HiMEC at Home United Rentals Home Federal Savings The Urban Studio, LLC Bank US Bank Home Improvement Valor Mechanical, Inc. Professionals, Inc. Veit Companies Hunt Electric Vertical Limit Corporation Construction P.A. Johnson Viking Automatic Construction, LLC Sprinkler Company K&M Glass Company Viking Electric Supply Key Builders, Inc. Weis Builders, Inc. Knutson Construction Wells Fargo Bank Services Minnesota NA Kommit Concrete, Inc. Wendland Utz Kraus-Anderson West Bank Construction Company WHKS & Company Kreofsky Building WHV, Inc. Supplies Widseth Smith Nolting

www.RochesterAreaBuilders.com

UILDERS

OUNCIL

a division of Rochester Area Builders, Inc.

February MEETING DATE: Wednesday, February 4th, 2014 TIME: Registration & Networking at 7:00 A.M.

Program at 7:30 A.M.

PLACE: Canadian Honker Events at Kahler Apache 1517 16th St SW PROGRAM: “The Place - Funding and BIM” SPEAKERS: Jodi Millerbernd, Boys & Girls Club of Rochester EXECUTIVE COMMITTEE Chairperson: Nick Leimer, KrausAnderson Construction Company Vice Chairperson: Dana Hlebichuk, Widseth Smith Nolting Past Chairperson: Chris Terry, Knutson Construction Services Members-at-Large: John Hill, Schwab, LLC Levi Kaiser, A.E. Benike, Inc. Brian Kopp, HGA Architects and Engineers Mike Nordstrom, Superior Mechanical Frank Streit, Premier Bank Rochester

New Member The CBC Executive Committee has approved the following new member at their January Meeting: Cambria Krystal Gillespie 400 S Broadway, Suite 105 Rochester, MN 55904 507-206-2323

February Meeting You won’t want to miss the first Commercial Builders Council meeting of 2015. We’ll be hearing about The Place, the wonderful new home of the Boys & Girls Club of Rochester, how it was built, and their plans for the future.

January 2015

FOUNDATIONS

Rochester Building Permits

Single Family Homes/Townhomes

VALUATION

2013

VALUATION

7,412,497

4,954,444

Townhome Dwelling

Two-Family Houses

Multi-Family Bldgs

17,746,134

1,756,000

Manufactured Home

Deck Addition

4,380

8,100

Room Addition

153,000

184,802

Porch Additions

28,500

Other Additions

Basement Finish

343,385

243,240

Alterations

226,241

322,236

Multi-Family Addition

Multi-Family Alterations

5,000

Assembly (Church)

Assembly (General)

Assembly (Restaurant/Bar)

151,533

Business

1,548,436

2,358

397,772,603

2,232

329,111,548

Education

Single Family Dwelling

375

85,577,343

322

77,033,675

Factory/Industrial

Institution

Multi-Family Buildings Total Units: 124

21,748,186

7,151,000

Mercantile

10,000,000

1,393,104

Miscellaneous

Utility (General)

33,500

84,470

Residential (Care/Assisted Living)

4,572,756

8,543,750

Residential (Care/Hotel/Motel)

Storage (General)

Storage (Warehouse)

New Residential Single Family Dwelling

2014

November 2014

Existing Residential

New Commercial

Existing Commercial Addition

3,230,000

7,648,028

2,139,364

Structural Shell

100,000

“White Box”

150,000

Interior Demolition Only

2,100

20,000

Other Phased Permits

300,000

Business Signs

368,015

7,385

Advertising Sign

Footings & Foundations

202,000

600,000

Demolition

Alterations

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

January

February

March

April

May

June

July

August

September

October

November

December TOTAL

702

506

417

302

281

200

191

299

326

369

*total may differ as permits may have been voided.

Year To Date Statistics NO.

Building Permits Issued to Date

2014 VALUATION NO.

2013 VALUATION

Trade Permits Issued to Date

8,020

97,997,072

7,326

83,677,037

Electrical

2,642

43,871,856

2,403

41,979,355

303

126,150

322

74,835

Electrical (Temp. Service) Mechanical

2,107

27,031,901

1,907

20,977,648

Gas Piping

628

952,062

545

573,075

Fireplace

422

1,109,831

370

876,666

Hydronic System

185

8,124,871

141

6,455,462

Plumbing

1,733

16,780,401

1,638

12,739,996

Total Permits YTD

10,378

495,769,675

9,558

412,788,585

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

Other Construction

FOUNDATIONS

January 2015

www.RochesterAreaBuilders.com

Byron

Building Permits DECEMBER 2014 New Residential

NUMBER

VALUATION

Single Family Detached

569,000

Single Family Attached

883,000

46,468

Existing Residential Basement Finish

Pine Island

Building Permits DECEMBER 2014 Existing Residential

NUMBER

VALUATION

Alterations

25,000

Reroof

5,000

Reside

5,000

Replace Windows

5,000

Furnace/Water Heater

6,250

A special offer for members only. Register now and save 2% on your Lowe’s Accounts Receivable purchases.** Plus, get free delivery on purchases of $500 or more.† To register, visit LowesForPros.com/NAHB or call 877-435-2440.

*Offer is not automatic. See store for details.**Offer valid now through 12/31/2014. Cannot be combined with any other statement discount. To be eligible for the 2% discount, you must register your NAHB membership by 12/31/2014 and make a purchase with your Lowe’s Accounts Receivable by 12/31/2014. Allow one to two complete billing cycles for your registration to be processed and for your discount to appear on your billing statement. Offer and discount provided by Lowe’s, and not GE Capital Retail Bank. Excludes Lowe’s Business Account Card, Lowe’s Consumer Credit Card, Lowe’s Visa Accounts, Lowe’s Business Rewards from American Express Card and all Lowe’s Canada Credit projects. Offer not valid on purchases made prior to registering NAHB membership at LowesForPros.com. Call 877-435-2440 for questions about this program. All purchases subject to credit approval. †Standard delivery rules apply. ©2014 Lowe’s. LOWE’S, Gable Mansard Design are registered trademarks of LF, LLC.

Lowes_2014 NAHB-HALFPAGE.indd 1

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11/26/13 12:22 PM

January 2015

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Economic Forecast for 2015+ + + + + + + +

Sunny Days with Occasional Cloudy Periods+++++

Elliot Eisenberg, Ph.D. + + + + + + + + + + + + + + + Looking at 2015, the domestic economic landscape finally looks solid if unspectacular. Unemployment rates should keep falling, house prices are likely to rise by 5%, and despite poor global economic conditions, the American economy will strengthen. Moreover, despite a deep partisan divide in Washington, the government will not close down nor will it fail to pay its bills. In addition, the ongoing improvement in household balance sheets, the improving fiscal health of state and local governments, and the likely rise in capital expenditures by firms, albeit not very large, all but insures better economic growth. The only serious domestic problems are weak wage growth and inflation that is a bit low. With this in mind, I expect full-year 2015 GDP to come in at no less than 2.85%, a healthy rise from the expected 2.4% GDP growth experienced in 2014, and the strongest since 2005. As for new housing starts, they should rise by about 14%, with total starts coming in at 1.14 million. For all of 2015, single-family starts should total 750,000 up from 640,000, while multifamily starts should hit 390,000, up from 350,000. Housing sales should rise by about 5% and end the year at 5.6 million. Housing inventories should rise by about 200,000 units, to 5.5 months of inventory up from 5.0 months now. Given the improving labor market, expect net new monthly job growth to average roughly 220,000/ month, which while down from 240,000/month in 2014, is excellent given the shrinking size of the working age population. As a result, the unemployment rate should steadily fall from 5.8% today to 5.2% by year end and possibly lower, depending upon the behavior of the labor force participation rate (LFPR). If the LFPR rises, and

that would be a good thing, unemployment may end at 5.3%, but if the LFPR falls, an unemployment rate of 5% would not be out of the question. Inflation will remain completely benign, with overall inflation possibly drifting lower, while core inflation (which excludes food and energy) shows modest upward drift. The combination of anemic growth in Europe and Japan and declining oil, gas and commodity prices will keep the CPI essentially where it is now, slightly below 2%. Add to this declining import prices due to the rising US dollar and slow wage growth, and core personal consumption expenditure inflation, the Feds preferred inflation measure, will not exceed 1.7%, well below their 2% target. This will give the Federal Reserve ample time to slowly raise the federal funds rate from where it is now, between 0% and 0.25%, to 1% by year end, with the first rate rise probably occurring in June. The thing to keep in mind is that this rate rise, the first in a decade, is likely to be accompanied by some stock and bond market volatility. As a result of faster GDP growth in 2015, 10-year Treasuries will end the year at 2.7% and 30-year mortgage rates will probably hover around 4.5% as the yield curve flattens due to faster rising short-term rates. But a combination of slightly easing credit market conditions and increasing consumer spending due to increased employment and rising wages will keep the economy and the housing market on track despite mildly rising interest rates. Finally, I put the chances of a recession in 2015 at 5%. So look forward to steady economic activity in 2015 and fear not rising interest rates.

+ + + + + + + + + + + + + + ++ +

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.

FOUNDATIONS

January 2015

www.RochesterAreaBuilders.com

Membership Information Membership Renewals

as of 12/31/14

One Year

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

2013 2013

Two to Four Years

Lodermeier’s, Inc. First Alliance Credit Union PrimeLending RSP Architects

2011 2010 2010 2010

NEW APPLICANTS: The firms listed below have applied for membership in Rochester Area Builders, Inc.

NONE

MEMBERSHIPS PENDING: NONE MEMBERSHIP TOTAL: 457 RETENTION RATE: 92.7% As of 10/31/14

Five to Nine Years

Bobcat of Rochester Cachiaras Building & Remodeling Tom Kalmes Construction, Inc. Vision Homes & Remodeling, LLC XRG Concepts, LLC Your Home Improvement Company Brooks Excavating Company, Inc. Eckert Construction, Inc. Franklin Energy W.L. Hall Company Key Builders, Inc. Massey Land Surveying & Engineering

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

Ten to 19 Years

Bricewood, LLC Space Concepts, Inc. Stantec Tri State Insulated Concrete Forms IntegraSpec Central/Jeff Mueller Construction Associated Bank Simonson Builders, LLC WT Lighting Brauer Roofing, Inc. Michael’s Custom Cabinets, Inc. Rochester Sign Service, Inc.

2004 2004 2004 2004 2004 2002 2000 2000 1999 1999 1997

WE WELCOME THE FOLLOWING NEW MEMBERS IN JANUARY:

North Central States Regional Council Of Carpenters 6692 10th Avenue SW Rochester, MN 55902 Phone: 507-282-3119 Contact: Brandy Heaser Associate Member Union Sponsored by: None Listed

20 to 24 Years

DreamMaker Bath & Kitchen Greg Speedling Contracting, Inc.

1992 1992

25 Years & More

Custom Retaining Walls & Landscaping, Inc. Culligan of Rochester & Kasson Rochester Title & Escrow Company, Inc. Tile Superstore & More AB Systems, Inc. Curtin Drywall, Inc. Schad Tracy Signs, Inc. Wendland Utz DeWitz Home Builders, Inc. Pendle Hansen Bagne Insurance Home Federal Savings Bank US Bank Wells Fargo Bank Minnesota NA Kruse Lumber

www.RochesterAreaBuilders.com

1988 1987 1987 1985 1984 1983 1983 1968 1965 1959 1955 1955 1955 1954

January 2015

FOUNDATIONS

National Association of Home Builders

Put your membership to work now. Money-saving discounts that benefit your business, your employees, and your family

www.nahb.org/MA

FOUNDATIONS

January 2015