Foundations - April 2016

Page 1

A&A Electric & Underground, Inc. + AB Systems, Inc. + Abacus Engineering + Abbco Company + ABC Supply Company, Inc. - Rochester + 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. + J.F. Ahern Co. + Alexander & Sons Builders + All Craft Exteriors, LLC + Mike Allen Homes, LLC + Allied Building Products + All-Star Basements + 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 Land, LLC + 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. + BDS Contract Door & Hardware Co. + Beckley's Office Products + Beetles Bar & Grill, Inc. + Alvin E. Benike, Inc. + Scott Berberich Construction, LLC + Beyond Kitchens, LLC + Bigelow & Lennon Construction, LLC + Bigelow Homes + K.W. Billman, Inc. + Blooming Prairie EDA + The Blue Book of Building & Construction + Bobcat of Rochester + Bob's Construction, Inc. + The Boldt Company + Bolton & Menk, Inc. + Bouquet Builders, Inc. + Brandl Anderson Homes, Inc. + Brandrup Builders + Brauer Roofing, Inc. + Braun Intertec Corporation + Brekke Fireplace Shoppe + Bremer Bank + Brennan Companies + Bricewood, LLC + Briese Iron Works, Inc. + Bright Ideas + Brinkman Builders, LLC + Brock White Company + Tom Brogan Heating & Air Conditioning + Brooks Excavating Company, Inc. + Bruce Bucknell Construction, Inc. + Budget Blinds + Burdick Builders, Inc. + Byrne Electric, Inc. + Cachiaras Building & Remodeling + Cambria + Carpet One + CarpetsPlus of Rochester + Centurion Ridge, LLC + Charter Communications/Media + Chatfield Lumber Company, Inc. + Chladek Construction, LLC + Chosen Valley Testing, Inc. + Christian Brothers Cabinets + CHS, Inc. + City Auto Glass + City of Byron + City of Chatfield + City of Eyota + City of Preston + City of Spring Valley + Citywide Insulation, Inc. + Claremont EDA + Clarey's Safety Equipment + Clayton Thomas Blinds of Rochester + Clear Channel Radio (Laser/Fox/KFAN) + Clements Chevrolet Cadillac Subaru + CliftonLarsonAllen, LLP + Coldwell Banker Burnet + Commercial Leasing Services + Consolidated Communications, Inc. + 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 Curb Appeal + 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 / CCI + Custom Homes by Bradley, Inc. + Custom Retaining Walls & Landscaping, Inc. + D2E, LLC + Dahl Home Builders, Inc. + Dakota Supply Group, Inc. + Data-Smart Computers, Inc. + DeGeus Tile & Granite + Derby Construction LLC + The Design Connection + Design Studio B + Destination Building Center + Destination Flooring Rochester, LLC + DeWitz Home Builders, Inc. + Diamond Vogel Paints + DiNicola & Pestka Appraisals + Distinguished Homes by Mitch Hagen, LLC + DMC Plumbing & Heating, Inc. + Dodge County EDA + Dolan's Landscape Center, Inc. + DreamMaker Bath & Kitchen + Dunham Associates, Inc. + Dunlap & Seeger PA + JE Dunn Construction + Dura-Oak Kitchen Make Overs + Dynamic Masonry Products, LLC + eci, llc + Eckert Construction, Inc. + ECSI System Integrators + Edel Construction, LLC + Edina Realty Home Services + Todd Eidem Construction, Inc. + Elcor Construction, Inc. + Elcor Realty of Rochester, Inc. + Electrical Solutions & Service + Elgin Economic Development Authority + Elias Construction, LLC + Elsmore Plumbing, LLC + Emergent Networks + Energy Panel Structures + Energy Products & Design, Inc. + EOJohnson Business Technologies + ERH Developing, Inc. + Excel Homes + The Excelsior Group, LLC + Exclusive Home Builders & Remodelers + Expert Insulation, Inc. + Express Employment Professionals + Extreme Panel Technologies, Inc. + F&M Community Bank + Fat Willy's Bar & Grill + Ferguson Enterprises + Fieldstone Family Homes, Inc. + Final Cut Construction + First Alliance Credit Union + First Choice Homes, LLC + First General Services of SE MN + First Security Bank + R. Fleming Construction, Inc. + FloCore + Ford Metro Glass, Inc. + Foster Construction, Inc. + Franklin Energy + Frattalone Companies, Inc. + Chris Fritsch Custom Homes, LLC + Gander Plumbing & Heating, Inc. + Dale Gathje Construction, Inc. + Steve Gentry Construction, LLC + Gerhards - The Kitchen & Bath Store + Robert Gill Builder, Inc. + Goodin Company + GP Development, Inc. + Nathan Gransee Construction, LLC + Great River Overhead Door + Green Lawncare Irrigation & Service Co. + Gulfeagle Supply + Habitat for Humanity - Rochester Area + Haley Comfort Systems + W.L. Hall Company + Hallmark Building Supplies, Inc. + Hamilton Plumbing & Heating, LLC + Hammer Homes, Inc. + Hanson Construction & Specialty Cabinets, LLC + Harmony Economic Development Authority + Hartman Complete Lawncare, LLC + Hayfield Window & Door Company + HDR Architecture + Heartland Security + Heartman Insurance + Heartwood Homes of Rochester, Inc. + Brandon Henderson's Construction Plus, LLC + Hentges Glass Company + HGA Architects and Engineers + Hiawatha Broadband Communications, Inc. + Hicks Electric, Inc. + Higgins Custom Cabinetry + High Definition Homes, LLC + Hiller's Flooring America + HiMEC at Home + Jeff Hinkle Custom Homes, Inc. + Hirshfield's Decorating Center + The Home Depot + Home Federal Savings Bank + Home Improvement Professionals, Inc. + HomePro Home Inspections, Inc. + 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 + Interiors by J.Curry, LLC + J&M Consulting + Michael Jack, LLC + James Hardie Building Products + JC Custom Homes, 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. + M.P. Kaye, LLC + Keller Williams Premier Realty + Key Builders, Inc. + Kimley-Horn & Associates, Inc. + King's Flooring, LLC + Kirkland Enterprises, LLC + The Kitchen Design Studio + Kitchens Plus + Gary Kline Roofing, Inc. Walls, Inc. + Kraus-Anderson Construction Company + Kreofsky Building Supplies + Kruger + Knutson Construction Services + Koball's Poured Electric, Inc. + Kruse Lumber + KTTC/KXLT-TV + Kuehn Motor Company, Inc. + Kuntz Electric, Inc. + Kwik Trip, Inc. + Lacina Siding & Windows, Inc. + Laitala Tile Company + Lake City EDA + Larkin Hoffman Daly & Lindgren + Larsen Industries, Inc. + Larson Siding & Windows + Legends Concrete, Inc. + Leitzen Concrete Products, Inc. + Lewiston Economic Development Authority + Leyendecker Homebuilders, LLC + Lodermeier's, Inc. + Low Voltage Contractors + Lowe's Home Improvement + Luxury Bath Remodeling + Maas CompaHomes, Inc. + R.J. Manemann Custom Homes + Manufacturer's Bank & Trust + nies, Inc. + Maier Tree & Lawn + Majestic Maplewood Homes, LLC + Markham Homes, LLC + Marvin Windows & Doors + Massey Land Surveying & Engineering Systems, Inc. + McGough Construction + MDH, Inc. + Meadow Lakes + Master Builders, Inc. + Mavo 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 + Meyer Borgman Johnson, Inc. + Michael's Custom Cabinets, Inc. + Midwest Walls, LLC + Minnesota Building Contractors + Minnesota Energy Resources Corporation + Minnwest Bank + MLT Group + Morris Concrete, Inc. + Larry Newman Drywall + North Central States Regional Council + North Risk Partners, C.O. Brown Division + North Star Stone & Masonry + Northern Lights & Furnishings + Northgate Chiropractic Clinic + Nuss Truck & Equipment + Ohly Law Office + Olmsted County Planning Dept, Insp. Div. + Olmsted County Public Health + O l m s t e d National Bank + On Site Companies + Otis Custom Homes, LLC + O ve r h e a d Door Company 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 + Pegram & Dexter Construction & Design + Pella Windows & Doors + Penz Custom Homes, Inc. + People's Energy Cooperative + Peterson Well Drilling, Inc. + Phantom Screens + Pine Island EDA + Pine Island Lumber + Pompeii Painting, Inc. + Post-Bulletin Company, LLC + PowerLift Doors by French Mfg, Inc. + Powers Ventures + Precision Signs + Prehn Building Sales, Inc. + Premier Bank Rochester + Prime Time Painting of Rochester, LLC + Priority Claims Service + Pro Image Promotions & Apparel + Professional Education Resources, LLC + Proscape of Rochester, LLC + Quality Overhead Door Company, Inc. + Quality Siding & Window, Inc. + Michael Quinn Law Office + R&M Development Company + Radcliffe Homes & Remodeling + Range Custom Homes, LLC + RCON Homes, Inc. + RCTC Carpentry Program + RE/MAX Results + 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. (RAEDI) + Rochester Area Foundation + Rochester Asphalt, Inc. + Rochester Building Safety Department + Rochester Concrete Products, LLC + Rochester Plumbing & Heating/Roto Rooter + Rochester Public Utilities + Rochester Public Works + Rochester Ready Mix Concrete Co + Rochester Title & Escrow Company, Inc. + Ronningen Roofing, Inc. + Rory's Home Improvement, LLC + RSM US LLP + RSP Architects + Ryan & Grinde, Ltd. + Ryan Electric, Inc. + Ryan Windows & Siding, Inc. + Rymark Construction, LLC + S&S Overhead Door, Inc. + Sargent's Landscape Nursery, Inc. + Schmidt Goodman Office Products + Schoeppner, Inc. + Schwickert's Tecta America, LLC + Seavey Builders, Inc. + SEH, Inc. + Dan Severson Builders, Inc. + Nick Severson Construction, LLC + Shanahan Building & Remodeling, LLC + Sign Here, Inc. + Simonson Builders, LLC + SL Contracting + Smart Home Innovations & Engineering, Inc. + Smart-HR + 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 Grove EDA + Spring Valley Overhead Door, Inc. + St. Charles EDA + Stadsvold's Lawn & Landscape + Stantec + Steel Constructors, Inc. + Sterling State Bank + Stevens Heating, Inc. + Stewartville Economic Development Authority + Stier Construction, Inc. + Stimets Home Building & Remodeling + Stone Expressions + StoneBridge Builders + 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. + Thatcher Pools & Spas, Inc. + Thiemann Construction, Inc. + Thimijan Custom Homes, LLC + Think Mutual Bank + Thomas Tool & Supply + Thompson's Garage Door and Openers + Tile Superstore & More + TLS Companies, LLC + 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 + Tub MD, LLC + Turri Crane Service, Inc. + Turtle Creek Construction, Inc. + Ultimate Surfaces + 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 + Wausau Homes + Wausau Supply + Weis Builders, Inc. + Greg Wellik Construction + Wells Concrete + Wells Fargo Bank Minnesota NA + Wells Fargo Home + Wells Fargo Private Mortgage Banking + Wendland Utz + Werner a publication of Mortgage Electric Supply + West Bank + West Concord EDA + Jim Whiting Nursery & Garden Center, Inc. + WHKS & Company + Widseth Smith Nolting + Wildwood Sports Bar and Grill + Wilson Tibor & Maves, Ltd. + Wintrust Mortgage + Women Communications, LLC + Workforce Development, Inc. + Wright Homes, Inc. + WSB & Associates, Inc. + WT Lighting + Xcel Energy + XRG Concepts, LLC + Rick Yerhot Builder + Your Home Improvement Company + Zen Custom Homes + Zumbro Haven, LLC = RAB

A P R I L

2016

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


From The Senator’s Desk A Special Message from Senator Dave Senjem Dear John, I cannot tell you how surprised and most importantly how touched I was when you announced me as a recipient of the Rochester Area Builders “Dennis Hanson Memorial Award.” As you probably recall I was totally out of it in terms of emotion and composure. I don’t know what I told your audience but I can only hope it was coherent and respectful. As you may recall, I was invited to attend that night to talk about sprinkler legislation and the related court decision and I was really fired up to give a good speech. As the program moved along it seemed like my speech was getting farther and farther from flowing very well into your program, but I clung to the idea that I would eventually be called upon at the end under “New Business” or guest comments, or something like that. About the time I had concluded that you’d probably forgotten about me or changed your mind about me speaking, you called my name on the Denny Hanson Award. What a shock! Whatever little I do or have done in the legislature is done with no need or expectation of a thank you, much less an award. In this case to receive an award named after one of my dearest friends was way off the charts and profoundly emotional. I think it would be pretty close to true to say that nearly everyone in the room that night had a “Denny story.” As a close city council friend and later as a legislator I have many. Unfortunately, until I leave office I cannot tell most. John and Rochester Area Builders, thank you again so very much. The award rests prominently on my Senate desk and has already attracted a goodly amount of conversation. The award, by the way, in so many ways symbolizes the greatness of your very special organization, in my mind, probably the finest networking and policy advocating organization in Rochester. You should all know and be proud of that. So, good luck in all your future holds. Know that I hold Rochester Area Builders in the highest esteem. I am so proud to call you all friends. Sincerely,

David H. Senjem State Senator District 25 STATE SENATOR DAVID H. SENJEM FORMER SENATE MAJORITY LEADER FORMER SENATE MINORITY LEADER 100 Rev. Dr. Martin Luther King, Jr. Blvd. 113 State Office Building St. Paul, MN 55155-1606 Phone: (651) 296-3903 Toll-Free: 1 (888) 509-1290 Email: sen.david.senjem@senate.mn


News from The President March 24, 2016

Happy Spring! We have some great events coming up for Rochester Area Builders. You can now purchase your tickets for Studs, Struts and Stilettos. The event is being held at the Mayo Civic Center Auditorium Thursday, April 21, 2016. There is a Pre-Party starting at 5 p.m. being hosted and held at the Cambria Gallery on South Broadway. The doors at the Civic Center open at 7 p.m. with a Cocktail hour and the glamorous fashion show to follow starting at 8 p.m. If you have not bought your ticket yet, you can visit the Rochester Area Builders website and go to the Studs, Struts and Stilettos event page to get your tickets now! If you are not able to attend the event, but would like to support Habitat for Humanity with a donation, you can also do this on the event page. Spring Showcase of Homes is quickly approaching. The Showcase is being held April 9-10 and 16-17 from noon to 5 p.m. We have 50 entries this spring, with homes, townhomes and developments right here in Rochester and in many of our surrounding communities. If you are on social media, please be sure to share any information about our events on your personal or business page, if acceptable. This is a great way to get the word out about our events and make them a great success. Please help support the association that supports you! Warmly,

Index A Letter from Senator Senjem.................. 2 News from the President.......................... 3 Studs, Struts & Stilettos........................... 4 February Networking Night....................... 5 Public Works Dept. News.......................... 6 Member Spotlight: Haley Comfort Systems............................. 7 Member Marketing Opportunities ................................................................8-9 Spring Showcase of Homes.................... 10 Association Scrapbook ..........................11 Building Permit Reports.......................... 14 Membership Information........................15 Elliot Eisenberg Article............................ 16 NAHB Member Discounts....................... 17

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

Christy Buchan 2016 RAB President

www.RochesterAreaBuilders.com

April 2016

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STUDS, STRUTS & ST ET TOS construction fashion expose

A Benefit for

April 21, 2016

Mayo Civic Center Auditorium

Doors open 7:00 PM Party Early & Party Late at

Cambria Gallery

Tickets and more information available at

#StrutForHumanity

RochesterAreaBuilders.com Event Partners

Platinum Sponsors

Jan & Rich Vetter

Title Sponsor 4

FOUNDATIONS

April 2016

Diamond Sponsor www.RochesterAreaBuilders.com


Join us at the March Networking Night Tuesday, March 29th, 4:30 - 6:30 pm

at Haley Comfort Systems 4320 US 52 North

President

Christy Buchan, Energy Products & Design, Inc.

Karen Blissenbach, Design Studio B

Delbert Feenstra, Knutson Construction Services

Rick Dold, Larkin Hoffman Daly & Lindgren

John Eckerman, The Boldt Company

Mike Allen, Mike Allen Homes, LLC Mickey Elias, Elias Construction, LLC Rob Jones, Superior Mechanical Levi Kaiser, Alvin E. Benike, Inc. Carla Kilpatrick, Home Federal Savings Bank Jon Range, Range Construction, LLC Brian Sheehan, Weis Builders, Inc. Frank Streit, Premier Bank Rochester

Tom Leimer, Knutson Construction Services, Chair Jason Snow, Brock White Company, Vice Chair Jake Schleusner, Merit Contracting, Inc., Past Chair

Dana Hlebichuk, Widseth Smith Nolting, Chair

Jason Woodhouse, CRW architecture + design group, inc., Chair

Vice President Secretary Treasurer

Past President Directors

Builders Exchange Council Representatives

ABOUT HALEY In 1990, brothers Tom and Joe Haley launched Haley Comfort Systems in Plainview, Minnesota. Thanks to hard work, strong customer-driven values, and a loyal group of customers, the original furnace and air conditioning (A/C) business has now expanded to offer much more. Today, Haley Comfort employs more than 70 people and has two beautiful showrooms in Rochester and Hastings, MN. Its business entities include Haley Comfort Systems and Bright Ideas. The company also sustains a powerhouse warehouse, fabrication shop and custom woodworking division located in the city where it all started, Plainview, MN.

Hosted By:

www.RochesterAreaBuilders.com

Commercial Builders Council Development Council Chair Remodelers Council Chair

Jerry Jensen, Valor Mechanical, Inc., Chair

Joe Weis, Weis Builders, Inc.

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

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

National Life Directors National Directors State Directors

Executive Director

John Eischen JEischen@RochesterAreaBuilders.com

Staff

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

Taylor Ridderbusch TaylorR@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

April 2016

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Building Towards Cleaner Water Clean water is important to all of us. From recreational activities such as fishing and water skiing to everyday uses including bathing and drinking, we all need water. Each of us has a responsibility to do what we can to keep our water resources clean for future generations. Are you doing everything you can at your construction sites to protect our water by preventing litter? Each year during the Help Make Rochester A Litter Bit Better! event, litter from construction sites is reported by volunteers throughout the city. Let this be the year you make a commitment to keeping your site litter-free each and every day. Use this checklist as a reminder of what you can do to “build towards cleaner water.”  Place litter collection containers in convenient locations around the site for ease of disposal.  Keep dumpsters, roll-offs, and other containers covered at all times to prevent litter from escaping.  Check these containers regularly to make sure they are not overfilled. Order additional dumpsters or request more frequent collection if overfilling is an issue.  Bag and tie up loose items before throwing them in a container.  Use snow fencing around construction or demolition sites to prevent debris from blowing into other areas.  Use a tarp or net when hauling materials in an open pickup truck or trailer. This prevents safety hazards as well roadside litter.  Smokers should use an ashtray, receptacle or a portable pocket ashtray to prevent “butt” litter …the #1 littered item in the U.S.  Routinely walk the site and collect loose items and debris that may have escaped.  Communicate with your staff, vendors, and subcontractors about their personal responsibility for a clean and safe working environment. Discuss proper disposal methods and locations of disposal areas.  Participate in this year’s A Litter Bit Better! event: o Pick a date between April 23-30 o Pick a location and register as an individual or group at www.RNeighbors.org/litterbitbetter o Pick up litter at your registered site during A Litter Bit Better! week It is up to all of us to do our part to prevent litter in our community. Please take the time to keep your construction sites clean and help make Rochester A Litter Bit Better!

Help Make Rochester A Litter Bit Better! April 23-30, 2016 To sign up for a pick-up location visit: www.RNeighbors.org

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FOUNDATIONS

April 2016

www.RochesterAreaBuilders.com


ABOUT HALEY Haley Comfort Systems is a locally owned, family operated business that has been great products and excellent service for the past 25 years. They sell, install and service reliable and efficient Bryant furnace and A/C units, a full range of fireplace and hearth products, and lighting for any style and budget.

WHAT’S ON HALEY’S MIND?

How long have you been in business? 26 years

Why are you a member of RAB? Networking with builders and associate members. What excites you about the expected growth of Rochester? There are a lot of changes happening in the building and remodeling industry. There is excitement for the homeowners who are building new or selling their existing house. They can personalize their home and make it their own. What makes your business special? We are a family based company that started in 1990 when two brothers, Tom and Joe started the business from scratch to now involving the second generation of their family. Haley’s is constantly updating our showrooms with new products, technology and ideas to make your home comfortable. We have a wide range of fireplace designs that can incorporate all the styles, Modern, Contemporary,

watch this video to learn more about Haley>> 4320 US 52 North Rochester, MN 55901 Phone: 507.281.0138 HaleyComfort.com www.RochesterAreaBuilders.com

Transitional or Traditional. We can take care of all your heating and cooling needs. What is one thing not even RAB knows about your business? We have multiple locations! besides our Rochester Showroom, we also have a showroom in Hastings that handles the Twin Cities metro Area. In our home town of Plainview, we have our production/ warehouse, sheet metal shop and cabinet shop. We are your One-Stop-Shop, we take care of everything from start to finish. We also have a lighting showroom, Bright Ideas, at our Rochester location. We work with the area’s leading builders, electrical contractors and designers. What changes are on the horizon in your industry? Technology is changing as we speak. Heating and cooling systems can be complicated, but with Bryant products they work together throughout your home. Everything can be controlled through remote access with a Wi-Fi thermostat to deliver whole-home comfort to your family. What changes are on the horizon for your business? There is excitement with the new products and displays that we offer in our showrooms. We offer the largest and most complete showroom displays in all of southeastern Minnesota.

feel the comfort of working with a company you trust

122 West 3rd St Hastings, MN 55033 Phone: 651.437.0338 HaleyComfort.com April 2016

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Rochester Area Builders Member Spotlight! 1 Hour Radio Show on KROC-AM with ads (10am-11am)—This is a perfect opportunity to talk about your business and field questions from callers! You also get two 30 second ads and an online ad during the show!

Video produced by RAB—A 30 Second Spot, which we will post on our YouTube Channel and promote. You will also be given the video to use as you please.

Weekly Email-News Update— Video will be linked to our membership in our Weekly Email-News Update

Newsletter Advertorial—Page in our monthly newsletter on your business, including pictures of your business, or projects, etc.

$2000 $1000

Social Media Campaign—4 posts (1 boosted) to our Facebook page, 4 tweets from our Twitter account about your business

Limited to 1 Member/month

Sign up now, only

$750

Sign up quickly! There are only 10 spots for the year! Once we sell out of the 10 spots, we will assign months to coordinate with seasonal timing. Contact Taylor at the RAB Office at 507-282-7698 or at taylorr@rochesterareabuilders.com

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FOUNDATIONS

April 2016

www.RochesterAreaBuilders.com


+ ClementsInc. Chevrolet LLP + Coldwell Services + Consolidated CommuniRochester, + Cadillac Subaru + CliftonLarsonAllen, Total Electric of Rochester, Inc. +Banker Burnet + Commercial Townsquare Leasing Media Rochester + Tradesmen Internanership, Inc. + Wood Coordinated Business Systems, Ltd. + Corban Homes, LLC + Cordes Construction + Cornerstone Builders & Real + Estate, Inc. +Insulated Corner+ Traditional Builders + Tri Star Insulation Tri State + Corporate Services, Inc. + Counselor Realty of Rochester, Inc. + Countryside Builders,Architects LLC + Cravath Homes, LLC, dbaMD, Accessibility Solutions Forms + WebTSP & Engineers + Tub LLC + Turri Crane rescent Supply Company + CRW architecture + design group, inc. + Culligan of Rochester & Kasson +Inc. Curry's CutSurfaces Gutter, LLC+ + United Curtin c. + Electric Turtle Creek Construction, + Custom Ultimate CI + Custom Homes by Bradley, Inc. + Custom Retaining Walls & Landscaping, Inc. + D2E, LLC + Dahl HomeBuilding Builders,Products Inc. + Dakota Group, Cooling + United Products/Allied Corp. Supply + United + DeGeus Tile & Granite + Derby Construction LLC + The Design Connection + Design Studio Center + DeWitz Home +c. The Urban Studio, LLC B+ + Destination US Bank Building + Valor Mechanical, Inc. + a Appraisals + Distinguished Homes by Mitch Hagen, LLC + DMC Plumbing & Heating, Inc. + Dolan's Landscape Center, Inc. + DreamMaker Bath & s + Vector Windows + Veit Companies + Vennehjem Building nc. + Dunlap & Seeger + JE Dunn Construction + Dura-Oak Kitchen Make Overs + Dynamic Masonry Products, LLC + eci, llc + Eckert Construction, n Vertical Limit Construction + Viking Automatic Sprinkler Company + + Edel Construction, Construction, Inc. LLC + Elcor Realty of Rochester, Inc. ctric Supply + Vision LLC + Edina Realty Home Services + Todd Eidem Construction, Inc. + Elcor Homes & Remodeling, + WA Insurance + Warners' + Elgin Economic Development Authority + Elias Construction, LLC + Elsmore Plumbing, LLC + Emergent Networks + Energy Panel Structures + Waste Management + Wausau Homes + Wausau ppliance Co., Inc. + EOJohnson Business Builders & Remodelers + Expert Inc. + Weis Builders, Inc. Technologies + Excel Homes + The Excelsior Group, LLC + Exclusive Home + Greg Wellik Construction + Insulation, Wells Concrete ls + +Extreme Panel Technologies, Inc. + Fairway Outdoor Advertising, LLC + Fat Willy's BarBank & Grill + Ferguson Fieldstone Family Inc. Wells Fargo Minnesota NA +Enterprises Wells Fargo+ Home Mortgage + ction Alliance Credit Union + First Choice Homes, LLC + First General Services of SEElectric MN + Supply First Security Bank + R. Construction, Utz + +FirstWerner + West Bank + Fleming Jim Whiting Nursery lass, Inc. Fritsch Custom Homes, LLC Nolting + Gander & Center, Inc.+ + Foster WHKSConstruction, Inc. + Franklin Energy + Frattalone Companies, Inc. + Chris & Company + Widseth Smith + Plumbing Wildwood ruction, Inc. +Ltd. Steve Construction, + Gerhards - The KitchenLLC & Bath + Robert Gill Builder, Inc.+ + Wright Godwin Law Office bor & Maves, + Gentry Wintrust Mortgage LLC + Women Communications, + Store Workforce Development, Inc. Homes, Inc. + Goodin WSB & CompaAssocireat River+Overhead Door + LLC Green Irrigation Co. +Improvement GulfEagle Supply + Habitat Humanity - Rochester Area + Haley l Energy XRG Concepts, + Lawncare Rick Yerhot Builder &+Service Your Home Company + Zenfor Custom Homes + Zumbro Haven, LLC Comfort = RAB ler) + W.L. Hall Company + Hallmark Building Supplies, Inc. + Hammer Homes, Inc. + Hanson Construction & Specialty Cabinets, LLC + Harmony + Hartman Complete Lawncare, LLCBuilders + Hayfield Window & Door + HDR Architecture + Heartland Security Heartman Insurance + HeartThe Rochester Area Newsletter isCompany an unbeatable opportunity to advertise to +members and individuals Brandon Henderson's Construction Plus, LLC + Hentges Glass Company + HGA Architects and Engineers + Hicks Electric, Inc. + Higgins Custom associated with America RAB. 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K&S Heating, A/C, Plumbing & Electrical + Kahler Hospitality Group + Tom Kalmes Construction, Inc. + Keller Williams Premier Realty Horn & Associates, Inc.are + for King's Flooring, LLC will +be glad to work Kirkland Enterprises, LLC your + The Kitchen Design Studio + Kitchens Our prices full color ads. We with you to design ad. Please send digital files forPlus all Knutson Construction Services + Koball's Poured Walls, Inc. + Kraus-Anderson Construction Company + Kreofsky logos, and artwork. PC format. We accept and Company, Photoshop (CS1). Convert fonts ectric, Inc.ad +copy, Kruse LumberWe + use KTTC/KXLT-TVIllustrator + Kuehn Motor Inc. files + Kuntz Electric, Inc. + all Kwik Trip, Inc. + Laitala Tile Company + Larsen high resolution Industries, Inc. .tif, + Larson Siding & Windows LeafGuard Gutters to outlines. 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Fax + ____________________________________________________________________ Rochester Building Safety Department + Rochester Concrete Products, ochester Plumbing & Heating/Roto Rooter + Rochester Public Utilities + Rochester Public Works + Rochester __________________________________________________________________ x Concrete Co + Rochester SignEmail Service, Inc. + Rochester Title & Escrow Company, Inc. + Ronningen Roofing, ory's Home Improvement, LLC + RSP Architects + Ryan & Grinde, Ltd. + Ryan Electric, Inc. + Ryan Windows & c. + Rymark Construction, LLC + S&S Overhead Door, Inc. + Sargent's Landscape Nursery, Inc. + cy Signs, Inc. + Schmidt Goodman Office Products + Schoeppner, Inc. + Schwickert's Tecta America, LLC + ilders, Inc. + SEH Yaggy + Dan Severson Builders, Inc. + Shanahan Building & Remodeling, LLC + Shingobee I have read, understand and agree to the terms +of Smart this contract. nc. + Sign Here, Inc. + Simonson Builders, LLC + SL Contracting Home Innovations & Engineering, ith Schafer & Associates, Ltd. + Solar Connection, Inc. + SOLO plumbing & ResSprinklers, LLC + Somerby Golf y + Space Concepts, Inc. Signature: + Spahn & Rose Lumber Company + Greg Speedling Contracting, Inc. + Spring rhead Door, Inc. + Stadsvold's Lawn & Landscape + Stantec + Steel Constructors, Inc. + Stencil Homes + ate Bank + Stevens Heating, Inc. + Stewartville Economic Development Authority + Stier Construction, Inc. + Home Building & Remodeling + Stone Expressions + StoneBridge Builders + Structural Design Group, Inc. + aint and Decorating + Robert G. Suk Law Office, PA + Summit Custom Homes, LLC + Summit Fire Protection + Superior Mechanical + Craig Swanson Builders, Inc. + Swenke Ims Contracting, LLC + Kenny Sylvester Contact on, LLC + Synergy Products + Tag's Drywall, Inc. + Tamarack Materials, Inc. + Thatcher Pools & Spas, Inc. o-Tech Windows + Thiemann Construction, Inc. + Thimijan Custom Homes, LLC + Think Mutual Bank + Thomas Phone: (507) 282-7698 Rochester Area+ Builders, Inc. Superstore pply + Thompson's Garage Door and Openers Tile & More + Tonna Mechanical, Inc. + Top Fax: (507) Attn: Ryan Kling-Punt Rochester, Inc. + Total Electric of Rochester, Inc. + Townsquare Media 282-6351 Rochester + Tradesmen Interna+ Traditional Wood Builders + RPunt@RochesterAreaBuilders.com Tri Star Insulation + Tri State Insulated E-Mail: 108 Elton Hills Ln NW Forms + TSP Architects & Engineers + Tub MD, LLC + Turri Crane c. + Turtle Creek Construction, Inc. + Ultimate Surfaces + United Rochester, MN 55901 Cooling + United Products/Allied Building Products Corp. + United + The Urban Studio, LLC + US Bank + Valor Mechanical, Inc. + s + Vector Windows + Veit Companies + Vennehjem Building n + Vertical Limit Construction + Viking Automatic Sprinkler Company + ctric Supply + Vision Homes & Remodeling, LLC + WA Insurance + Warners' ppliance Co., Inc. + Waste Management + Wausau Homes + Wausau Weis Builders, Inc. + Greg Wellik Construction + Wells Concrete Inc. + Wells Fargo Bank Minnesota NA + Wells Fargo Home Mortgage + Utz + Werner Electric Supply + West Bank Jim Whiting Nursery www.RochesterAreaBuilders.com April +2016 FOUNDATIONS Center, Inc. + WHKS & Company + Widseth Smith Nolting + Wildwood

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Spring Showcase of

2016 Spring Showcase R. Fleming Construction, Inc. 2637 Sand Trap Road SE The “Highlands” of Hundred Acre Woods

Pearson Builders, Inc. 503 Northern Hills Trail, St. Charles Northern Hills

Robert Gill Builder, Inc. 810 Somerby Parkway, Byron Somerby Golf Community

Radcliffe Homes & Remodeling 122 River Oaks Circle NE, Stewartville River Oaks Townhomes Fourth

Radcliffe Homes & Remodeling Chris Fritsch Custom Homes, LLC 5th Street NE, Racine 855 Somerby Parkway NE, Byron Meadowview Third Subdivision Somerby Golf Community Development

Bigelow & Lennon Construction, LLC Cravath Homes, LLC 6496 55th Ave NW 2315 Superior Lane NW Ridgeview Manor Third Subdivision Superior Ridge Townhomes

Nathan Gransee Construction, LLC 26111 607th Street, Mantorville Deer Ridge

Bigelow Homes, LLC 5662 Prosper Avenue NW Harvestview 4th

Cravath Homes, LLC 674 Shardlow Place NE, Byron Somerby Golf Community

Bigelow Homes, LLC 5674 Harvest Moon Blvd. NW Harvestview

Custom Homes by Bradley, Inc. 2551 Glenwood Lane SW Mayo Woodlands

Heartwood Homes of Rochester, Inc. 6203 Country Club Road SW

Bigelow Homes, LLC 2492 Dallman Lane SE Hawk Ridge

Derby Construction, LLC 6341 Oak Meadow Lane NW Oak Meadow 2nd

High Definition Homes, LLC 1360 Knob Creek Lane SW Boulder Creek

Bigelow Homes, LLC 1900 Kerry Drive NE Shannon Oaks 5th

Derby Construction, LLC 2353 Britwood Lane SW Scenic Oaks

Brandl Anderson Homes, Inc. 5179 61st Street NW Foxfield Luxury Townhomes

DeWitz Home Builders, Inc. 2937 Lake Meadow Drive NW Manorwood Lakes

Centurion Ridge, LLC 2650 Centurion Lane NE Centurion Ridge

Distinguished Homes by Mitch Hagen, LLC 3235 Woodstone Drive SW Fieldstone 4th

Countryside Builders, LLC 2304 Nickel Road NE Stonehedge Townhomes 5th Countryside Builders, LLC 3669 Cameo Lane NE Stonehedge Estates Countryside Builders, LLC 1532 Wickford Place NE, Byron Byron Towne Village 2nd Countryside Builders, LLC 2212 Glady Lane NE Northern Heights North 4th Countryside Builders, LLC Glady Lane NE Northern Heights North 4th Development

DATES AND TIMES TO REMEMBER 10

GP Development – Lilly Farms Lilly Farm Development

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Excel Homes 2643 Glenwood Road SW Mayo Woodlands Exclusive Home Builders & Remodelers 427 15th Ave NE, Byron Byron Town Village Exclusive Home Builders & Remodelers 604 Somerby on 9th, Byron Somerby Golf Community R. Fleming Construction, Inc. 1499 Belvior Lane NE, Byron Somerby Golf Community

Friday, April 8 Saturday, April 9 Sunday, April 10 Saturday, April 16 Sunday, April 17 Monday, April 18

M.P. Kaye, LLC 4203 Stone Crest Lane NE Cassidy Ridge Majestic Homes, Inc. 1328 Turnberry Drive SE Rochester Towne Club Villages R.J. Manemann Custom Homes, Inc. 5243 Scenic View Drive SW Scenic Oaks Maplewood Homes, LLC 1881 Kerry Drive NE Shannon Oaks 5th Maplewood Homes, LLC 720 Timberline Drive SE, Oronoco River Park Master Builders, Inc. 879 10th Street SW, Pine Island Rolling Woods

Radcliffe Homes & Remodeling Petersen Court NW, Stewartville Petersen 6th Subdivision Development Radcliffe Homes & Remodeling 2209 Petersen Drive NW, Stewartville Petersen Fourth Subdivision Range Custom Homes 3459 Hidden Creek Rd NE Hunter Pointe Rymark Construction, LLC 2335 Brandwood Drive SW Scenic Oaks Nick Severson Construction, LLC 3048 Pinewood Ridge Drive SE Pinewood Ridge Somerby Golf Community 855 Somerby Parkway NE, Byron Somerby Golf Community Development Vision Homes & Remodeling, LLC 1280 Fox Grove Place SW Fox Hill Fourth Wausau Homes 468 15th Avenue NE, Byron Byron Towne Village Wright Homes, Inc. 5999 Basswood Lane NW Crimson Ridge

MDH, Inc. – Fox Hill Builders 1028 Fox Valley Place SW Fox Valley Villas

Signs to be Picked Up Entries Open to Public Entries Open to Public Entries Open to Public Entries Open to Public Signs to be Returned

8:00 AM – 4:00 PM 12:00 PM – 5:00 PM 12:00 PM – 5:00 PM 12:00 PM – 5:00 PM 12:00 PM – 5:00 PM 8:00 AM – 5:00 PM

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13


Rochester Building Permits VALUATION

2015

VALUATION

14

2,986,018

19

4,952,161

Townhome Dwelling

1

237,164

0

0

Two-Family Houses

0

0

0

0

Multi-Family Bldgs

2

27,397,608

0

0

Manufactured Home

0

0

0

0

New Residential Single Family Dwelling

2016

Existing Residential Deck Addition

2

8,000

1

50,000

Room Addition

1

46,000

0

0

Single Family Homes/Townhomes 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

January

27

25

3

13

3

6

19

11

20

25

February

19

15

1

8

8

20

15

14

19

15 40

YTD TOTAL

46

40

4

21

11

26

34

25

39

March

30

29

16

27

24

32

29

28

30

April

44

27

29

25

19

29

39

25

22

May

50

30

33

20

14

22

27

35

19

June

43

36

40

12

26

32

33

47

51

July

60

23

22

23

8

39

39

38

29

Porch Additions

0

0

0

0

August

43

28

26

15

18

38

21

60

33

Other Additions

2

11,000

0

0

September

33

28

33

10

19

22

22

23

27

Basement Finish

26

491,583

30

336,630

October

34

19

31

14

16

23

34

35

49

Alterations

25

164,799

34

360,969

November

23

26

32

21

20

22

26

26

23

Multi-Family Addition

0

0

0

0

December

11

16

15

12

16

14

22

27

42

Multi-Family Alterations

0

0

7

333,600

417

302

281

200

191

299

326

369

364

TOTAL

40

*total may differ as permits may have been voided.

New Commercial Assembly (Church)

0

0

0

0

Assembly (General)

0

0

0

0

Assembly (Restaurant/Bar)

0

0

0

0

Business

0

0

0

0

Education

0

0

0

Factory/Industrial

0

0

Institution

1

Mercantile Miscellaneous Residential (Apartment)

Year To Date Statistics

NO.

2016 VALUATION NO.

2015 VALUATION

Building Permits Issued to Date

262

105,964,222

264

27,977,429

0

Single Family Dwelling

37

9,656,513

40

10,719,373

0

0

2,600,000

0

0

Multi-Family Buildings Total Units: 397

4

46,635,259

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Trade Permits Issued to Date

1,135

23,892,908

1,102

11,580,537

337

1,323,0597

329

3,253,395

Residential (Care/Assisted Living)

0

0

0

0

Electrical

Residential (Care/Hotel/Motel)

0

0

0

0

Electrical (Temp. Service)

39

19,050

31

6,400

314

432,3745

295

4,479,588

50,415

73

103,945

Storage (General)

0

0

0

0

Mechanical

Storage (Parking Garage)

0

0

0

0

Gas Piping

75

Storage (Warehouse)

1

350,000

0

0

Fireplace

60

178,319

54

153,644

25

3,324,423

29

1,405,485

285

2,766,359

291

2,178,080

1,397

129,857,130

1,246

39,557,966

Utility (General)

1

15,000

0

0

Hydronic System

Utility (Private Garage)

0

0

0

0

Plumbing

Total Permits YTD

Existing Commercial Addition Alterations

0

0

0

0

34

12,554,625

21

5,899,333

Structural Shell

1

11,500,000

0

0

“White Box”

0

0

0

0

Interior Demolition Only

1

5,000

2

6,167

Other Phased Permits

0

0

0

0

Other Construction

14

February 2016

Business Signs

2

7,589

3

17,966

Advertising Sign

0

0

0

0

Footings & Foundations

0

0

1

50,000

Demolition

7

FOUNDATIONS

April 2016

Information and downloads available at Rochester Building Safety Department’s Website: http://www.rochestermn.gov/departments/building-safety/reports/building-permits

Byron

Building Permits

February 2016 New Residential

NUMBER

VALUATION

Single Family Detached Existing Residential Basement Finish

1

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Membership Information Membership Renewals

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

NONE

MEMBERSHIPS PENDING:

as of 2/29/16

One Year

Dynamic Masonry Products, LLC ECSI System Integrators Elsmore Plumbing, LLC Hartman Complete Lawncare, LLC Workforce Development, Inc.

NONE

2015 2015 2015 2015 2015

MEMBERSHIP TOTAL: 468 RETENTION RATE: 92.3% As of 2/29/15

Two to Four Years

Coordinated Business Systems, Ltd. Stone Expressions First Security Bank Spring Valley Overhead Door, Inc. The Kitchen Design Studio Batzel Builders, Inc. Pro Image Promotions & Apparel

2014 2014 2013 2013 2013 2012 2012

Five to Nine Years

Brandon Henderson's Construction Plus, LLC Kitchens Plus Rochester Asphalt, Inc. Vertical Limit Construction Cordes Construction Maas Companies, Inc. Tri Star Insulation Derby Construction LLC Laitala Tile Company

2010 2010 2010 2010 2008 2008 2008 2007 2007

WE WELCOME THE FOLLOWING NEW MEMBERS IN MARCH: J.F. Ahern Co. 5315 Freitag Drive Menomonie, WI 54751 Phone: 715-233-1841 Contact: Dan Scholler Associate Member Mechanical & Fire Protection Sponsored by: John Eckerman, The Boldt Company

Nick Severson Construction, LLC 1086 20th Avenue SE Pine Island, MN 55963 Phone: 507-951-0362 Contact: Nick Severson Builder Member Residential Builder Sponsored by: Brandon Vagt, XRG Concepts, LLC

Ten to 19 Years

Counselor Realty of Rochester, Inc. Schwickert's Tecta America, LLC Turri Crane Service, Inc. Adair Electric Company Appliance Village Company Arcon Land, LLC Merchants Bank Think Mutual Bank Reliable Contractors, Inc. Larsen Industries, Inc.

2006 2004 2004 2000 2000 2000 2000 2000 1998 1997

20 to 24 Years

Allied Building Products Greg Speedling Contracting, Inc.

1993 1992

25 Years & More

Pine Island Lumber Stadsvold's Lawn & Landscape Heartwood Homes of Rochester, Inc. Coldwell Banker Burnet Edina Realty Home Services

1990 1990 1989 1988 1985

Nathan Gransee Construction, LLC 26111 607th Street Mantorville, MN 55955 Phone: 507-273-8799 Contact: Nathan Gransee Builder Member Residential Builder Sponsored by: Randy Hadrath, Arrow Building Center

Hook Up with Natural Gas Appliances Energy-efficient natural gas appliances make your homes even more attractive and a greater value for your customers. You’re building in comfort, convenience and cost savings—plus rebates available for qualifying natural gas appliances add even more value. Get more details at xcelenergy.com/EnergyPartners.

© 2016 Xcel Energy Inc.

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There will be No Recession + + + + + in 2016!++++++++++++++++++++++ Elliot Eisenberg, Ph.D. + + + + + + + + + + + + + + + Despite all the news to the contrary, the US economy is in pretty good shape, better than the financial pundits think. Sure, the stock market has taken a battering of late, exploration and production activity in the oil patch has been declining, and exports are performing poorly, but the rest of the economy is fine. The service sector continues to grow nicely and construction activity continues to increase. Let’s take a closer look at the facts.

well as related manufacturing, construction and oil services activity that supports oil and gas E&P. The key here is that cheaper energy prices have boosted household incomes by about $130 billion or $1,000/ household. While to date most of this money has been socked away, I expect that to change and to see increased consumer spending this year and next as households perceive the recent price declines as somewhat permanent.

The recent tumble in equity prices has nothing to do with a slowing economy and is not the precursor of a recession. Rather, the declines are the result of three quite independent factors. First, as the Fed raises interest rates, the value of financial assets must decline. Remember, the Fed initially lowered rates to boost asset prices and stimulate spending. As this process slowly unwinds, the value of equities must decline. Second, corporate profits have been flat for several quarters, and third, even at today’s somewhat lower equity values, P/E ratios remain high by historic standards.

Most importantly, the rest of the economy is already doing well. Unemployment is at 4.9% and will decline further as the year progresses, and at 4.9%, unemployment is already at one of the lowest levels in decades. Moreover, home sales and prices are up, as is loan demand. In addition, tight labor markets are finally leading to sizable increases in hourly earnings, which will boost household spending further, and inflation, which has been completely dormant for several years, appears to be rising. This is a particularly welcome development given that Japan and Europe continue to fight deflation.

As for exports, the US is much less dependent on them than most nations. Exports of goods to China total less than one percent of GDP, while exports of goods to Europe are about 1.5% of GDP. While exports of services such as movies, music and intellectual property add to these totals, they do not vary much with economic conditions. As a result, while a 10% decline in exports certainly hurts manufacturers and their employees and reduces GDP by about 0.2%, it is far from catastrophic in an economy growing by a healthy 2.5%.

Lastly, services, which account for roughly 84% of GDP, and construction activity, which accounts for about 6% of GDP, both of which are almost entirely domestically focused, are in fine shape and growing nicely. During the past 12 months, construction activity increased by 10.4% and services grew by 3%. In short, the parts of the economy that are inwardly-centered are doing well, and the negative impacts of softer growth from abroad are not nearly strong enough to derail our economy. As for the upcoming election, let’s fervently hope that the threats to dramatically raise taxes or increase the deficit do not come to pass.

Regarding falling oil and gas prices, the benefits to the economy are just beginning. Until now, the price declines have resulted in large cutbacks in exploration and production (E&P) activity, as

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

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.

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