A&A Electric & Underground, Inc. + AB Systems, Inc. + 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. + 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 Development, Inc. + Arrow Building Center + Associated Bank + Athelon Enterprises, LLC + B&C Plumbing & Heating, Inc. + BARK.L Consulting Engineers dba Abacus Engineering + 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. + 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. + Bowman's Door Solutions + 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 + 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 + 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. + 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. + Home Systems Installation, LLC + HomePro Home Inspections, Inc. + 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 + 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. + 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 + 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 Companies, Inc. + Maier Tree & Lawn + Majestic Homes, Inc. + R.J. 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. + McGough Construction + MDH, Inc. + Meadow Lakes Builders + MEC Construction, LLC + Med City Builders of Rochester, LLC + Menards - South + MEP Associates + Merchants Bank + Merit Contracting, Inc. + Meyer Borgman Johnson, Inc. + Inc. + Midwest Walls, LLC + Minnesota Building Contractors + MinnesoMichael's Custom Cabinets, ta 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 + Olmsted National Bank + On Site Companies + Otis Custom Homes, LLC + Overhead 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 + Pendle Hansen Bagne Insurance + 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 + Prehn Building Sales, Inc. + Premier Bank Rochester + Premier Builders of Rochester, Inc. + Prime Time Painting of Rochester, LLC + PrimeLending + Priority Claims Service + Pro Image Promotions & Apparel + ProBuild Company, LLC + 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 Sign Service, Inc. + 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. + Schad Tracy Signs, Inc. + Schmidt Goodman Office Products + Schoeppner, Inc. + Schwickert's Tecta America, LLC + Seavey Builders, Inc. + SEH, Inc. + 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 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. + 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 + 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 + Fargo Home Mortgage + Wells Fargo Private Mortgage Banking + Wendland Utz a publication of Wells + Werner 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
FEBRUARY
2016
F O U N D AT I O N S Rochester Area Builders, Inc.
Continuing Education for the Building Industry Let Rochester Area Builders provide you with your Continuing Education credits at a great price, with qualified instructors and interesting and useful topics. Our classes are just $79 for RAB members, which includes a 7 hour session, lunch, and all resource materials. Each 7 hour session contains 1 hour for your energy requirement. All classes/sessions to be held at Canadian Honker Events at Apache in Rochester. Thursday, January 28, 2015 8:00 - 4:00 (7 Credits)
Wednesday, February 10, 2015 8:00 - 3:20 (7 Credits)
* New Home Construction from Building Permit to Certificate of Occupancy
Scaffold Safety: An Overview (2 credits) * Understanding Attic Ventilation (2 credits) Technical and Environmental Considerations of Residential Siding (1 credit) Commercial Vehicle Regulations (1 credit) Preserving Payment Rights Through Contracts (1 credit) Education Expo sponsored by Larkin Hoffman Daly & Lindgren
Registration Deadline: January 25
Education Sponsors
BROCKWHITE C O N S T R U C T I O N
M A T E R I A L S
Registration Deadline: February 5
Click here for more info and the sign up form!
RAB E ducation E X PO Sponsored By
Following the end of classes on February 10th, all the builders will be invited to the RAB Education Expo. All builders who attended the January classes will also be invited to attend. Drinks will be served, and all builders who attended classes will be given a ticket for a free drink. The Education Expo is a chance for exhibitors to show off their new products and technology directly to builders in a relaxed environment. You can buy your favorite builders a drink, and show them your latest and greatest products. For more information or to sign up for a booth, click here! 2
FOUNDATIONS
February 2016
www.RochesterAreaBuilders.com
News from The President January 20, 2015
I hope the first month of 2016 is off to a great start for everyone! If you’re looking for a way to help ensure you have a successful year, sign up to exhibit at the 2016 Rochester Area Builders Home Show being held February 5, 6 and 7 at the Mayo Civic Center. Or, show your support for the Association by sending your family, friends, and clients down to see the show! We are happy to announce that we will be displaying two race driven stock cars, previously driven by Dale Earnhardt Senior and Richard Petty. See more details about the cars on Page 7. Both cars will be on display in the Arena to help pull traffic to all areas of the Civic Center. Along with the cars, we will be giving away a pair of four-day, four-race tickets to Chicagoland, including pit passes for all four races. Thank you Jeff Kalmes, from Hillers Flooring America, in helping to get the cars to display at the show.
Index Continuing Education................................ 2 News from the President.......................... 3 January General Membership Meeting.............................4-5 Home Show Booths Available................... 6 Home Show Features................................ 7 Association Scrapbook .........................6-7 Studs, Struts & Stilettos........................... 8 Public Works Dept. News.......................... 9 Newsletter Advertising...................... 10-11 Building Permit Reports.......................... 14 Membership Information........................15 Elliot Eisenberg Article............................ 16 NAHB Member Discounts....................... 17
We are also excited that Once Upon a Playhouse is again taking place at the Home Show. This year we will have 3 playhouses that will be raffled off at the show, with proceeds going to Family Services of Rochester. The playhouses will also be on display in the Arena to provide yet another draw to that area. Doors and Windows unhinged will be located in the North Lobby again this year, with proceeds going to Habitat for Humanity. Thank you Tom Walsky, from Habit ReStore, for providing all the doors and windows for our participants to make this happen. I would like to take this opportunity to thank all of the committee members for their time month after month to make this show a great success every year. The committee works very hard to make this the best show possible for everyone exhibiting. The construction at the Civic Center has provided some new challenges in how things are done at the show the past few years. We as a committee work very hard to take these changes and provide a solution with the best possible outcome for all of our exhibitors. If you would like to help make decisions as we get ready to start planning for the 2017 Home Show, I would encourage you to join the committee and help make a difference! Take a minute to check out the 2016 Home Show commercial linked below, featuring some familiar faces! I wish you all a successful month and a great show for those of you exhibiting in the Home Show. Warmly,
Christy Buchan
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
2016 RAB President
www.RochesterAreaBuilders.com
February 2016
FOUNDATIONS
3
Join us at the January General Membership Meeting Tuesday, January 26th, 5 - 8:00 pm at Canadian Honker Events at Apache 1517 16th St SW 5pm Social Hour 6pm Dinner/Announcements 7pm Program: Your Body is Talking, Do You Know What it’s Saying? Speaker: Sheryl Barlow, Corporate Web Services, Inc. Communication is not optional! Your body language is a huge part of what you “say.” Learn what your body is saying and how to get control of the messages you’re sending.
Don’t Forget to Register! The registration deadline is January 22nd!
NEW IN 2016! Starting wth the January General Membership Meeting, we will be requiring Registrations for all of our GMMs! You can Register for the January GMM on Eventbrite. Just follow the link below! Please note that you do not have to pay to attend just the social hour, but we do still want you to Register!
4
FOUNDATIONS
February 2016
www.RochesterAreaBuilders.com
We will also be announcing our annual award winners for Builder of the Year, Associate of the Year, Company of the Year, Spike of the Year and Rising Star! Congratulations to all the nominees! 2015 Builder of the Year 2015 Associate of the Year Adam Benike Christy Buchan Brian Chladek Jerry Jensen Jean DeWitz Carla Kilpatrick Mickey Elias Jill Mickelson Delbert Feenstra Dave Pederson Lindsey Rippentrop
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
Commercial Builders Council Development Council Chair Remodelers Council Chair
2015 Cornerstone Award Beyond Kitchens Cambria Think Bank Widseth Smith & Nolting
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
Social Sponsor
Dessert Sponsor
www.RochesterAreaBuilders.com
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
February 2016
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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 5-6-7 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 it’s your home.
Booths are still available. Visit the HOME SHOW Exhibitors Page 6
FOUNDATIONS
February 2016
www.RochesterAreaBuilders.com
FEATURING
RACE to the HOME SHOW! Enter to win a pair of four-day, four-race tickets to Chicagoland including pit passes for all races.
Race-driven, professional stock cars on display in the Arena. RCR Race Car driven by Dale Earnhardt Sr.
Richard Petty Motor Sports #43
• Built in the winter of 1989 as a CHEVROLET LUMINA for use at intermediate tracks. • Raced at Bristol International Raceway in the spring of 1990. Dale spun and backed into the wall. • Raced at Darlington Raceway and won the Spring Race in 1990. • Raced in “THE WINSTON” in May 1990 at Charlotte Motor Speedway and won flag to flag! • Raced in the “COCA-COLA 600” in May 1990, but was involved in a wreck and badly damaged. The car went on to finish the race. • n I these four races, the winnings this car earned were in excess of $412,000. • The car was re-skinned as a CHEVROLET MONTE CARLO in 1995. • Chassis #6.
Richard Petty drove this car in his last race at Daytona in 1992. The No. 43 car has become synonymous with seven-time NASCAR premier series champion and NASCAR Hall of Famer Richard Petty, who ran all but 60 of his record 1,185 starts and claimed 192 of his record 200 wins in the car. — NASCAR website
Tickets valued at $500. Enter at the Home Show or use the entry form in the RAB Home Show insert in the Post-Bulletin. Drawing will be held February 8th. Race dates are September 15-18, 2016 at Chicagoland.
ALSO FEATURING
DOORS s w o d n i W d e g n i unh
A Fundraiser for Family Service Rochester www.RochesterAreaBuilders.com
A Fundraiser for Habitat for Humanity ReStore February 2016
FOUNDATIONS
7
Studs, Struts & Stilettos Fashion Show
We’ve Got Plans!
PANTONE 19-3230 T CX Grape Ju ice
Title Sponsor
Diamond Sponsor
It is time to start planning for the 2016 Studs, Struts & Stilettos fashion show! We’re looking for: Bold and inventive Designers, ready to create the fantastic designs that our show has become known for!
Download the Design Entry Forms Sponsors who want to associate themselves with one of the hottest and fastest growing events in Rochester!
Download the Sponsorship Forms 8
FOUNDATIONS
February 2016
www.RochesterAreaBuilders.com
Communicating with Subs:
Permit Compliance is Everyone’s Responsibility We all know that subcontractors bring valuable skills to a construction site, but one of them is not mind reading! To achieve compliance with your construction stormwater permit, the permit holder must communicate the permit’s basic requirements with their subcontractors to prevent stormwater pollution. A subcontractor that is unaware of your permit requirements can accidentally put your site out of compliance. Ignorant actions such as not using the stabilized vehicle entrance (SVE) and tracking mud on the street, driving over a silt fence, leaving garbage on the ground, placing supplies in your temporary sedimentation basin, or washing concrete on the yard are just some examples of subcontractor missteps that could result in a construction delay or fine. One of the most effective Best Management Practices (BMPs) you can have onsite is for everyone to know the basics of pollution prevention. Permit holders should make sure their subcontractors understand how they can the site stay in compliance. Subcontractors can be mindful of their actions in order to keep dirt and garbage on-site. Always report erosion, litter, and drainage problems back to your developer or builder so that repairs can be made in a timely manner. As a permit holder, it is up to you to ensure site compliance. Success requires a communication BMP: 1. Determine the necessary information to share l Project details, including the name of the project and permit holders l The purpose of the permit: to contain sediment and garbage on site l Which erosion and sediment control (ESC) practices are most likely to be affected by subcontractors and where they are located
Uncontrolled Litter www.RochesterAreaBuilders.com
l l
Anticipated schedules Contact information for reporting problems
2. Clarify your expectations in writing l Make a simple drawing of the site showing the ESC practices to use or avoid l Add other details you want subcontractors to have at their fingertips l Share your contact information and what you want them to report back to you (e.g., street tracking, a full SVE, damaged silt fence, a full garbage corral, etc.) l Deliver your handout - over coffee, with your contract, or in an e-mail l Have subcontractors confirm their understanding of the information and answer any questions they may have 3. Continually exchange information l Respond to feedback promptly l When there are problems, contact your subcontractors and provide feedback on ways they can change their behaviors so that your site is in compliance l Thank your subcontractors for helping you comply with your permit On very large sites with hundreds of subcontractors, personal communications may not be feasible. In these situations, consider posting signs as a reminder of the practices you expect and who they can call to report problems. Good communication between subcontractors and the permit holder will help the site stay in compliance throughout the construction project and protect our waterways.
Tracking & Sediment on Roadway February 2016
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Association Scrapbook
Bear Creek Services Remodel
BEFORE: The floor was worn, cabinets were old, and the layout of the kitchen made it hard for direct care staff to monitor what was going on in the house because of low hanging cabinets blocked the view.
AFTER: New flooring, new cabinets, new countertops, new appliances, new light fixtures an a very open layout. Amazing job by our Remodelers Council members!
Bear Creek Services Remodel We’d like to thank the following companies and individuals for donating time and/or materials to the project:
Chladek Construction, LLC, Brian Chladek Valor Mechanical, Inc., Jerry Jensen
Top Shop of Rochester, Inc., Kathy Blohm The Home Depot, Jay Marking Bright Ideas, Becky Holmen Gander Plumbing & Heating, Inc., Bob Gander Ferguson Enterprises, Denyle DeVlaeminck 10
FOUNDATIONS
February 2016
Hiller’s Flooring America, Jeff Kalmes Prime Time Painting of Rochester, LLC, Carl Fugleberg Habitat ReStore, Tom Walsky Mike Allen Homes, LLC, Mike Allen
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 Web Services, Inc. + Counselor Realty of Rochester, Inc. + Countryside Builders, LLC + Cravath Homes, LLC, dba Accessibility Solutions Forms + TSP Architects & Engineers + Tub MD, LLC + Turri Crane rescent Supply Company + CRW architecture + design group, inc. + Culligan of Rochester & Kasson +Inc. Curry's CutSurfaces Gutter, LLC+ + United Curtin nc. + Electric Turtle Creek Construction, + Custom Ultimate CCI + 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 nc. + DeGeus Tile & Granite + Derby Construction LLC + The Design Connection + Design Studio Center + DeWitz Home + The Urban Studio, LLC B+ + Destination US Bank Building + Valor Mechanical, Inc. + ka Appraisals +Vector Distinguished Homes by Mitch Hagen, LLC + DMC Plumbing & Heating, Inc. + Windows Dolan's Landscape Center, Inc. ++ Vennehjem DreamMakerBuilding Bath & ds + + Veit Companies nc. + Dunlap & Seeger + JE Dunn Construction + Dura-Oak Kitchen Make Overs + Dynamic Masonry Products, LLC +Automatic eci, llc +Sprinkler Eckert Construction, on Vertical Limit Construction + Viking 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 Authority + Elias Construction, LLC + Elsmore Plumbing, LLCWaste + Emergent Networks + Energy Panel Structures + Management + Wausau Homes + Wausau ppliance Co., Inc. Development + EOJohnson Business Builders & Remodelers + Expert Inc. + Weis Builders, Inc. Technologies + Excel Homes + The Excelsior Group, LLC + Exclusive Home + Greg Wellik Construction + Insulation, Wells Concrete als Panel Technologies, Inc. + Fairway Outdoor Advertising, LLC + Fat Willy's BarBank & Grill + Ferguson Fieldstone Family Inc.+ +Extreme 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 Glass, Inc. Fritsch Custom Homes, LLC Nolting + Gander & Center, Inc.+ + Foster WHKSConstruction, Inc. + Franklin Energy + Frattalone Companies, Inc. + Chris & Company + Widseth Smith + Plumbing Wildwood truction, 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 & CompaAssociGreat River Overhead Door + Green Lawncare Irrigation & Service Co. + GulfEagle Supply + Habitat for Humanity Rochester Area + Haley Comfort el Energy + XRG Concepts, LLC + Rick Yerhot Builder + Your Home Improvement Company + Zen Custom Homes + Zumbro Haven, LLC = RAB aler) + 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. It +is HiMEC a source of valuable association and industry information, is published and emailed+ mes, LLC + Hiller's Flooring at Home + Jeff Hinkle Custom Homes + Hirshfield's Decoratingand Center + Holiday Inn Downtown + The Home Depot +Foundations Home Federal is Savings Bank + 800 Home Improvementindustry Professionals, Inc. + Home Systems Installation, LLC + Howe Countertops monthly. sent to over connected professionals. The sizes of ads are listed under Display Hutch's Custom Cabinets + Int'l Brthrhd of Electrical Wrkrs Local 343 + Innovative Surfaces, Inc. + Insty Prints + IntegraSpec Central/Jeff Mueller + Michael LLC + JC Custom Homes,are LLC located + JNS Builders, J.P. Johnson Customfrom Builders, Inc. +toJP's Construction Remodeling & Repair, AdJack, Dimensions, and prices below.LLC Ads+may be changed month month. 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 ad copy, logos, and artwork. We use PC format. We accept Illustrator and Photoshop files (CS1). Convert all fonts ectric, Inc. + Kruse Lumber + KTTC/KXLT-TV + Kuehn Motor Company, Inc. + Kuntz Electric, Inc. + Kwik Trip, , Inc. + Laitala Tile Company + Larsen high resolution Industries, Inc. .tif, + Larson Siding & Windows LeafGuard Gutters to outlines. We also accept the following file types: .eps and .pdf (with all+graphics and fonts& s Concrete, Inc. + Leitzen Concrete Products, Inc. + Lewiston Economic Development Authority + embedded) files. If you have any other formats, please contact us. + Lodermeier's, Inc. + Low Voltage Contractors + Lowe's Home Improvement + Luxury Bath ies, Inc. + Maier Tree & Lawn + Majestic Homes, Inc. + R.J. Manemann Custom Homes + Manuaplewood Homes, LLC + Markham Homes, LLC + markit + Marvin Windows & Doors + ering + Master Builders, Inc. + Mavo Systems, Inc. +12 McGladrey Newsletter Advertising Rates Per Issue Issues+ McGough Construcakes Builders + MEC Construction, LLC + Med City Builders of Rochester, LLC ciates + Merchants Bank + Merit Contracting, Inc. + MetLife Premier Full color 1/12 ________+ Meyer $35 Borgman Johnson ________ Midwest + Michael's$250 Custom Cabinets, Inc. Minnesota Energy Resources Corporation + Minnwest Bank + MLT Group Full color 1/6 Vertical ________ ________ $450Council + North Larry Newman$50 Drywall + North Central States Regional Northern Lights & Furnishings + Northgate Chiropractic Clinic + Nuss Ohly Law Office Dept, $450 Insp. 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(RAEDI) + Rochester Area Fax ____________________________________________________________________ on + Rochester Asphalt, Inc. + 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, Rory's Home Improvement, LLC + RSP Architects + Ryan & Grinde, Ltd. + Ryan Electric, Inc. + Ryan Windows & nc. + Rymark Construction, LLC + S&S Overhead Door, Inc. + Sargent's Landscape Nursery, Inc. + acy Signs, Inc. + Schmidt Goodman Office Products + Schoeppner, Inc. + Schwickert's Tecta America, LLC + uilders, 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, mith 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 erhead 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. + Paint 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. mo-Tech Windows + Thiemann Construction, Inc.Area + Thimijan Homes, LLC282-7698 + Think Mutual Bank + Thomas Phone: (507) Rochester Builders, Inc. Custom pply + Thompson's Garage Door and Openers + Tile Superstore & More + Tonna Mechanical, Inc. + Top Fax: (507) 282-6351 Attn: Ryan Kling-Punt Rochester, Inc. + Total Electric of Rochester, Inc. + Townsquare Media Rochester + Tradesmen Interna+ Traditional Wood Builders Tri Star Insulation + Tri State Insulated E-Mail: + RPunt@RochesterAreaBuilders.com 108 Elton Hills Ln NW Forms + TSP Architects & Engineers + Tub MD, LLC + Turri Crane nc. + 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. + ds + Vector Windows + Veit Companies + Vennehjem Building on + 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 February 2016 FOUNDATIONS Center, Inc. + WHKS & Company + Widseth Smith Nolting + Wildwood
Fa publication O U ofNRochester D A TAreaI Builders, O N Inc. S
2016
Newsletter Advertising
Fa publication O U ofNRochester D A TAreaI Builders, O N Inc. S
11
12
FOUNDATIONS
February 2016
www.RochesterAreaBuilders.com
www.RochesterAreaBuilders.com
February 2016
FOUNDATIONS
13
Rochester Building Permits
New Residential Single Family Dwelling
2015
30
VALUATION
2014
VALUATION
8,335,580
27
7,412,497
Townhome Dwelling
12
2,752,469
0
0
Two-Family Houses
0
0
0
0
Multi-Family Bldgs
0
0
2
17,746,134
Manufactured Home
0
0
0
0
Existing Residential Deck Addition
4
38,230
2
4,380
Room Addition
2
125,480
3
153,000
December 2015
Single Family Homes/Townhomes 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
January
39
27
25
3
13
3
6
19
11
20
February
31
19
15
1
8
8
20
15
14
19
March
37
30
29
16
27
24
32
29
28
30
April
58
44
27
29
25
19
29
39
25
22
May
69
50
30
33
20
14
22
27
35
19
June
59
43
36
40
12
26
32
33
47
51
July
36
60
23
22
23
8
39
39
38
29
August
36
43
28
26
15
18
38
21
60
33
31
33
28
33
10
19
22
22
23
27
Porch Additions
1
40,000
0
0
September
Other Additions
2
93,400
0
0
October
49
34
19
31
14
16
23
34
35
49
38
23
26
32
21
20
22
26
26
23
Basement Finish
22
449,509
29
343,385
November
Alterations
December
23
11
16
15
12
16
14
22
27
42
506
417
302
281
200
191
299
326
369
364
25
151,979
21
226,241
Multi-Family Addition
0
0
0
0
Multi-Family Alterations
2
14,033
1
5,000
Assembly (Church)
0
0
0
0
Assembly (General)
0
0
0
0
Assembly (Restaurant/Bar)
0
0
0
0
Business
0
0
0
0
Building Permits Issued to Date
2383
484,095,237
2,358
397,772,603
Education
0
0
0
0
Single Family Dwelling
289
71,997,081
375
85,577,343
Factory/Industrial
0
0
0
0
Institution
0
0
0
0
Multi-Family Buildings Total Units: 1,156
33
142,500,263
4
21,748,186
Trade Permits Issued to Date
8115
109,051,746
8,020
97,997,072
Electrical
2641
48,355,291
2,642
43,871,856
TOTAL
*total may differ as permits may have been voided.
New Commercial
Mercantile
0
0
1
10,000,000
Miscellaneous
0
0
0
0
Residential (Apartment)
0
0
0
0
2015 VALUATION NO.
2014 VALUATION
Residential (Care/Assisted Living)
0
0
1
4,572,756
Residential (Care/Hotel/Motel)
0
0
0
0
Electrical (Temp. Service)
307
92,250
303
126,150
2015
30,111,966
2,107
27,031,901
1,256,492
628
952,062
Storage (General)
0
0
0
0
Mechanical
Storage (Parking Garage)
0
0
0
0
Gas Piping
646
Storage (Warehouse)
0
0
0
0
Fireplace
369
999,989
422
1,109,831
Hydronic System
150
8,829,532
185
8,124,871
1987
19,406,226
1,733
16,780,401
10,498
593,146,973
10,378
495,769,675
Utility (General)
0
0
2
33,500
Utility (Private Garage)
0
0
0
0
Addition
0
Alterations
0
0
0
26
8,303,216
16
7,648,028
Structural Shell
1
1,345,000
0
0
“White Box”
0
0
0
0
Interior Demolition Only
1
10,000
1
2,100
Other Phased Permits
0
0
1
300,000
Other Construction Business Signs
8
45,578
27
368,015
Advertising Sign
0
0
0
0
Footings & Foundations
0
0
1
202,000
Demolition
9
FOUNDATIONS
Plumbing
Total Permits YTD
Existing Commercial
14
Year To Date Statistics
NO.
February 2016
1
Information and downloads available at Rochester Building Safety Department’s Website: http://www.rochestermn.gov/departments/building-safety/reports/building-permits
Byron
Building Permits
December 2015 New Residential
NUMBER
VALUATION
4
1,100,800
Single Family
47
10,717,480
Deck Addition
20
103829
Single Family Detached Year End Totals
2
27940
Basement Finish
Room Addition
22
292430
New Commercial
4
8793900
New Industrial
2
1382000
www.RochesterAreaBuilders.com
Membership Information Membership Renewals
as of 12/31/15
Two to Four Years
Dunham Associates, Inc.
NEW APPLICANTS: The firms listed below have applied for membership in Rochester Area Builders, Inc.
NONE
MEMBERSHIPS PENDING:
2013
NONE
2011 2010 2010 2008 2008 2008 2008 2008 2008 2008 2007 2007 2007 2006 2006 2006 2006
MEMBERSHIP TOTAL: 494 RETENTION RATE: 93.4%
Five to Nine Years
Lodermeier's, Inc. First Alliance Credit Union Owner's Plumbing, Inc. Beetles Bar & Grill, Inc. Bobcat of Rochester On Site Companies Tom Kalmes Construction, Inc. Vision Homes & Remodeling, LLC XRG Concepts, LLC Your Home Improvement Company Crescent Electric Supply Company Franklin Energy Summit Fire Protection Company Hutch's Custom Cabinets Key Builders, Inc. Kruger Electric, Inc. Kwik Trip, Inc. Ten to 19 Years
Stantec Tri State Insulated Concrete Forms Simonson Builders, LLC Brauer Roofing, Inc. Michael's Custom Cabinets, Inc. Gander Plumbing & Heating, Inc. TSP Architects & Engineers Waste Management
2004 2004 2000 1999 1999 1998 1997 1997
20 to 24 Years
DreamMaker Bath & Kitchen
1992
25 Years & More
Region Millworks, Inc. Custom Retaining Walls & Landscaping, Inc. Culligan of Rochester & Kasson Edel Construction, LLC Rochester Title & Escrow Company, Inc. Tile Superstore & More Curtin Drywall, Inc. Custom Alarm / CCI Wendland Utz Home Federal Savings Bank Post-Bulletin Company, LLC US Bank Kruse Lumber
1989 1988 1987 1987 1987 1985 1983 1981 1968 1955 1955 1955 1954
As of 11/30/15
WE WELCOME THE FOLLOWING NEW MEMBERS IN JANUARY: Blooming Prairie Economic Development Authority 138 Hwy Ave S - PO Box 68 Blooming Prairie, MN 55917 Phone: 507-583-7573 Contact: Tom Monson Contributory Membership Government Agency Sponsored by: None Listed Dodge County Economic Development Authority 721 Main Street North Mantorville, MN 55955 Phone: 507-635-6193 Contact: Tom Monson Contributory Membership Government Agency Sponsored by: None Listed Hamilton Plumbing & Heating, LLC 7919 Valley High Road NW Byron, MN 55920 Phone: 507-258-7644 Contact: Ryan Hamilton Plumbing & Heating Associate Member Sponsored by: None Listed James Hardie Building Products 103 12th Avenue SE Rochester, MN 55904 Phone: 507-261-0962 Contact: Brandon Larson Supplier: Siding Associate Member Sponsored by: None Listed M.P. Kaye, LLC 230 20th Avenue SW Rochester, MN 55902 Phone: 507-424-3657 Contact: Michael Kaye Residential Builder/Remodeler Builder Member Sponsored by: Doug Burton – Traditional Wood Builders
www.RochesterAreaBuilders.com
Minnesota Building Contractors 3690 318th Avenue Harmony, MN 55939 Phone: 612-419-8641 Contact: Bill Ferrie Roofing & Remodeling Builder Member Sponsored by: None Listed Spring Grove Economic Development Authority 118 1st Avenue NW Spring Grove, MN 55974 Phone: 507-498-5221 Contact: Tom Monson Contributory Membership Government Agency Sponsored by: None Listed TLS Companies, LLC 1952 Kerry Drive NE Rochester, MN 55906 Phone: 507-208-0679 Contact: Todd Severson General Contractor Builder Member Sponsored by: None Listed Wells Fargo Private Mortgage Banking 21 1st Street SW – 2nd Floor Rochester, MN 55902 Phone: 507-285-2836 Contact: Jon O’Reilly Mortgages Associate Member Sponsored by: Don Hoerle - Castlewood Homes, Inc. West Concord Economic Development Authority 180 Main Street West Concord, MN 55985 Phone: 507-527-2668 Contact: Tom Monson Contributory Membership Government Agency Sponsored by: None Listed
February 2016
FOUNDATIONS
15
Economic Forecast for 2016 + + + + + + + Slightly Better Than 2015 + + + + + + + + + + +
Elliot Eisenberg, Ph.D. + + + + + + + + + + + + + + + Looking at 2016, the domestic economic landscape looks solid, albeit unspectacular. The unemployment rate should continue falling, house prices are likely to rise by 5%, and the economy will be led almost entirely by the continuing improvement in household balance sheets, and in conjunction with increased employment and slightly faster wage growth. Government spending will be slightly higher in 2016 (but not enough to matter), capital expenditures by firms will remain weak, and exports will continue to suffer due to the strong US dollar. The most serious domestic problem is weak inflation, and it should begin to increase. Despite continuing poor global economic growth, the American economy will not weaken, but is also unlikely to strengthen much. With this in mind, I expect full-year 2016 GDP to come in at 2.4%, slightly higher than the expected 2.2% GDP growth experienced in 2015. New housing starts should increase by about 12%, with total starts coming in at 1.25 million. Single-family starts will likely total 830,000, up from 710,000, while multifamily starts should hit 410,000, up from 400,000. New and existing home sales should rise by about 4% and end the year at 6.0 million, with mortgage purchase volume advancing by $60 billion and refinance activity falling by about $250 billion. Housing inventories should jump by about 150,000 units, to 5.5 months of inventory, up from 5.0 months now. Given the continued improving labor market, expect net new monthly job growth to average 185,000/month, which while down from 205,000/ month in 2015, is excellent given the shrinking size of the working age population. As a result, the unemployment rate should fall from 5.0% today to between 4.6% and 4.8% 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 good, unemployment may end the year as high as 4.8%, but if the LFPR continues to fall, an unemployment rate of 4.6% or even 4.5% is distinctly possible. As for inflation, headline inflation will noticeably increase while core inflation (which excludes food and energy) edges up only slightly. Inflation should rise because energy and commodity prices are not likely to fall further and the dollar is unlikely to continue strengthening. As a result, the downward pressure these forces have exerted on headline inflation will cease and headline inflation, now at 0.3%, should move towards the core rate which is now at 1.3% and will probably rise to 1.7% by year end, which is still below the Fed target of 2%. As a result, the Federal Reserve will have the luxury of time to slowly raise the federal funds rate from where it is now, between 0.25% and 0.50%, to between 1.00% and 1.25% by year end, with a rate increase coming every three to four months. As a result of slightly faster GDP growth and falling unemployment in 2016, 10-year Treasuries will end the year at 2.75% and 30-year mortgage rates will probably hover around 4.5% as the yield curve flattens due to faster rising short-term rates. But slightly easing credit conditions and rising consumer spending due to improving employment numbers and wages will keep the economy and housing market on track despite mildly higher interest rates. Finally, I put the chances of a recession in 2016 at 15% to 20%. So look forward to steady economic activity in 2016 and fear not slowly ascending 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.
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February 2016
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