FOUNDATIONS SEPTEMBER - OCTOBER by Rochester Area Builders, Inc.

SEPT - OCT 2021

September November December October August June July 2021 2021 2021 2021 2021 2021

ROCHESTER AREA BUILDERS, INC.

OCTOBER IS CAREERS IN CONSTRUCTION MONTH FALL SHOWCASE CHECK OUT 2021 DIVISION WINNERS

SPORTING CLAYS RECAP OF ANOTHER SUCCESSFUL EVENT

JOB SHADOWING OPPORTUNITY TO BE APART OF SOMETHING BIG

D C

DEVELOPMENT COUNCIL a division of the Rochester Area Builders, Inc.

C OMMERCIAL C B UILDERS

OUNCIL

a division of Rochester Area Builders, Inc.

2 | SEPTEMBER - OCTOBER 2021

STAFF EXECUTIVE DIRECTOR John Eischen, John@RochesterAreaBuilders.com STAFF

Online Permit Submission

UPDATE!

Shelly Bahlmann, Shelly@RochesterAreaBuilders.com Golf Outing, Sporting Clays, Home Show, Directory, Newsletter, RAB Update

Audra Bolduan, Audra@RochesterAreaBuilders.com Builders Exchange Trustees and Showcase Committee, Website

Rebekah Fierst, Rebekah@RochesterAreaBuilders.com Ambassadors, Awards, Builders, Bags & Brews, Commercial Builders Council, Community Relations, Education, Membership, Fashion Show, Program, Remodelers Council, Executive & Remodelers Tour, 40 Below GOVERNMENT & PUBLIC AFFAIRS CONSULTANT

Rick Dold, Rick@GodwinDold.com

BOARD OF DIRECTORS PRESIDENT

Luke Stier, Stier Construction, Inc. VICE PRESIDENT Becky Holmen, Haley Lighting SECRETARY

Jennifer Mitchell, Edina Realty TREASURER

Jesse Buhl, MedCity Consulting PAST PRESIDENT

Alissa Moe, Bremer Bank DIRECTORS

Adam Giannini, Meyer Borgman Johnson Jennifer Lawver, ERH Developing, Inc. Tom Leimer, Knutson Construction Jason Scrimshaw, Kimley-Horn & Associates, Inc. Charlie Sweeney, Kraus-Anderson Construction Melissa Barbour, TLS Companies, LLC Megan Gallagher, Solar Connection

BUILDERS EXCHANGE COUNCIL CHAIR

Kurt Hoeger, United Rentals

COMMERCIAL BUILDERS COUNCIL CHAIR Jim Oeltjenbruns, F&M Community Bank DEVELOPMENT COUNCIL CHAIR Hal Henderson, HGA Architects & Engineers

When submitting your permit online doing the following will greatly improve your chances of acceptance, speedy processing, and approval. 1. Use your PDF software to optimize your plan before submitting a.

Optimizing the plan allows the city departments to more effectively process your submittal within the system.

Optimizing the plan will also improve the City’s ability to efficiently review your plans.

2. Only submit one Drawing per permit that includes all building and site plan information a.

The drawing should include the mechanical and plumbing information.

Any other plan information you submit should be submitted as additional information and not as a drawing.

You are allowed as much information as you need for your submittal, but each submittal should only have one drawing.

Submitting more than one drawing may cause the rejection of your submittal.

In the event your submittal is not rejected with more than one drawing, having more than one drawing results in multiple approvals within each which delays the process and approval of your application.

Use the link below to check the status of permits filed with the City of Rochester Agency Counter: https://rochestermn.agencycounter.com/m/home

REMODELERS COUNCIL CHAIR

Kailee Klevan, Beyond Kitchens 40 BELOW CHAIR Katie Olson, Kimley-Horn & Associates, Inc. NATIONAL LIFE DIRECTORS

Steve Buss, Cornerstone Builders & Real Estate, Inc. NATIONAL DIRECTORS Dana Hlebichuk, Widseth

Levi Kaiser, Benike Construction (Rep) Todd Severson, TLS Companies, LLC STATE DIRECTORS

Mike Allen, Mike Allen Homes, LLC Jean DeWitz, DeWitz Home Builders, Inc. (Rep) Kathy Einck, Maplewood Homes.LLC John McGuine, JM Consulting Dan Severson, Dan Severson Builders, Inc., Kenneth Bush, Bush Companies

MISSION STATEMENT The Rochester Area Builders, Inc, chartered in 1953, is a professional organization of commercial & residential builders, remodelers, developers and associated businesses dedicated to advancing the building industry in Southeast Minnesota. We are the trusted voice of the industry, providing leadership, education, networking, and information resources to our members, community and government officials.

3 | FOUNDATIONS NEWSLTR

9 16

10 UPDATE..............................................................2

Online permit update

RAB CALENDAR...................................................4

October 2021

STUDS, STRUTS & STILETTOS..............................5

Ticket Information

LETTER FROM RAB PRESIDENT............................7

NAHB EYE ON HOUSING.....................................20

Builder Confidence Steadies

JOB SHADOWING..............................................24

Host Information

NAHB EYE ON HOUSING.....................................23

Women Make Up 10.9% Of The Construction Workforce

NAHB EYE ON HOUSING.....................................30

Luke Stier, Stier Construction, 2021 RAB President

Price Index For Inputs To Residential Construction Declines

NEW MEMBER WELCOME.....................................6

BUILDING PERMITS...........................................30

September 2021

AUGUST NETWORKING NIGHT.............................8

Rochester, Byron & Pine Island

OLMSTED BUILDING PERMITS ...........................31

Tulip Tree/Valor Mechanical

August 2021

GENERAL MEMBERSHIP MEETING........................9

SEMR HISTORICAL OVERVIEW............................31

September GMM

FALL SHOWCASE WINNERS .........................10-14

Divisions 1 - 5

HOME SHOW.....................................................18

Booth Registration Information

SPORTING CLAY SHOOT ....................................13

Thank you Sponsors!

COMMUNITY DEVELOPMENT..............................14

Online Permit Process

August 2021

4 | SEPTEMBER - OCTOBER 2021

October 2021 Sunday

Monday

Tuesday

Wednesday

4 12:00 PM Government Affairs Committee

8:00 AM Remodelers Council Exec.

Friday

Saturday 1

7 8:30 AM K-M Job Shadowing

11:30 AM Program Committee

11:30 AM Executive Committee 11

3:30 PM 3:00 PM Builders Board Meeting Exchange Board of Trustees

Thursday

13 7:30 AM Green Building Committee

19 12:00 PM Remodelers Council Meeting

7:00 PM

20 11:30 AM CBC General Membership Meeting

7:30 AM Membership Committee

12:00 PM Ambassadors Committee 4:30 PM 40 Below Exec. 24

25 11:30 AM Home Show Committee

4:30 PM 7:30 AM Networking Night 40 Below - Cambria Professional Development

11:30 AM Community Relations Committee

3:00 PM Development Services Advisory Committee 31

MEETINGS ARE NOW BEING HELD IN PERSON UNLESS NOTIFIED DIFFERENTLY BY JOHN

5 | FOUNDATIONS NEWSLTR

Thursday, Oct 14, 14, 2021 Mayo Civic Center Auditorium Doors Open at 7 PM | Show at 8 PM

A BENEFIT FOR

#STRUTFORHUMANITY For more information or to purchase tickets, call 507.282.7698 or visit RochesterAreaBuilders.com PRESENTED BY

MEDIA SPONSOR

FOUNDATION SPONSOR

6 | SEPTEMBER - OCTOBER 2021

ROCHESTER AREA BUILDERS, INC.

MEMBERSHIP REPORT August 2021 Membership Total: Retention rate:

404 90.8

WELCOME

SEPTEMBER 2021 MEMBERS

As of August 31, 2021 ONE TO FOUR YEARS Electrical Solutions & Service.......................2020 American Turf Technicians.............................2019 Schad Tracy Signs...........................................2018 Greg Wellik Construction...............................2017 Schwab Construction Services......................2017

FIVE TO NINE YEARS H&H Company of Rochester, LLC............................2016 Meyer Borgman Johnson, Inc...................................2015 CLA....................................................................................2014 Distinguished Homes by Mitch Hagen, LLC..........2014 LVC Companies, Inc.....................................................2014 Pace International........................................................2014 Rochester Area Foundation.......................................2013 City of Chatfield.............................................................2012 Kraus-Anderson Construction..................................2012

TEN TO 19 YEARS

JERRY CARR

Kitchen & Bath Remodeling (507) 358-9520 valueaddservices.net

KYLE SHUBERT

Testing: Soils & Materials (507) 722-7365 terracon.com

Minnwest Bank..............................................................2011 Kreofsky Overhead Door............................................2007 Otis Custom Homes, LLC............................................2006 Tradesmen International............................................2005 Morris Concrete, Inc.....................................................2004 A&A Electric & Underground, Inc............................2003 Knutson Construction Services................................2002

20 YEARS & MORE Ferguson Enterprises.....................................1998 Reliable Contractors.......................................1998 Beyond Kitchens..............................................1995 FASTSIGNS.......................................................1991 Marvin...............................................................1987 Townsquare Media Rochester.......................1983 Hayfield Window & Door Company...............1981 Brogan Heating & Air Conditioning...............1980 Energy Products & Design, Inc......................1980 Benike Construction........................................1979 Pella Windows & Doors..................................1978

COMMITTEE OPPORTUNITIES

As a member of Rochester Area Builders, you a have an opportunity to get involved in one of our many Committees. If you are interested in participating in one of the following listed below, please reach out to Shelly. • Ambassadors • Home Show • Community Relations • Membership & Retention • Education • Program • Golf Outing • Showcase • Green Building • Sporting Clay Shoot

7 | FOUNDATIONS NEWSLTR

FROM THE PRESIDENT I prefer the fall over other seasons, and I hope you are getting time to enjoy the outdoors and the beautiful weather we have had lately! Upcoming Events

LUKE STIER

President

Rochester Area Builders, Inc Fall has arrived, and here at Stier Construction we have been busy prepping for our projects to be wrapped up before the holidays. This is always the busiest time of year for us, and it seems to fly by. Personally,

September General Membership Meeting: Stay up to date on our Government Affairs, and join the BAM legislative team of Executive Vice President Grace Keliher and Brian Halloran of Redmond & Associates as they discuss their work at the Capitol during the last session and preview areas of opportunity and likely challenges in the upcoming year. Event is Tuesday, September 28th, 5:00 – 8:00 PM at the Double Tree by Hilton, 150 South Broadway. Job Shadow: We are still searching for a few hosts for our KM students on the morning of October 7th. If you are interested please contact the Builders’ Office.

Studs, Struts & Stilettos: Come and support your local designers and fellow members, all while contributing to Habitat for Humanity. This year’s theme is “Strut Through History.” Ticket sales are now open, and we hope to see you there! Event is October 14th, 7:00PM. Save the Date: Our annual RAB Holiday Party is Friday, December 10th at the Hilton. And we have a little surprise to unveil, but you will have to stay tuned to find out what it is!

Luke Stier Stier Construction 2021 RAB President

1980’s

Holiday Party DECEMBER 10TH

6:00 PM

HILTON HOTEL 10 EAST CENTER STREET ROCHESTER, MN 55904

SPONSORSHIPS AVAILABLE Share your 80’s photos with us by sending them to Rebekah@RochesterAreaBuilders.com

8 | SEPTEMBER - OCTOBER 2021

Thank you Valor Mechanical and Tulip Tree Studios for hosting the August Networking Night.

9 | FOUNDATIONS NEWSLTR

GENERAL MEMBERSHIP MEETING Date: Tuesday, September 28, 2021 Time: 5:00 PM - 8:00 PM Location: DoubleTree by Hilton 150 S Broadway, Rochester, MN 55904 Program: 5:00pm Social Hour 6:00pm Dinner & Announcements 7:00pm Program: "How the State Legislature did (or didn't) affect your business this year" Join the BAM legislative team of Executive Vice President Grace Keliher and Brian Halloran of Redmond & Associates as they discuss their work at the Capitol during the last session and preview areas of opportunity and likely challenges in the upcoming year Dinner: $30

10 | SEPTEMBER - OCTOBER 2021

Stonebridge Builders, LLC 15351 OLD TERRITORIAL RD SE CHATFIELD

2-Story Home

Amenities • beams / timbers • bridge • stone fireplaces • custom railings • elevator • custm metal works • Exterior Material - LP, Stone Total Square Footage (Not Including Garage).......................................6750 Finished Square Footage (Not Including Garage).................................6572 Garage Square Footage............................................................................1218 Number of Bedrooms...................................................................................... 5 Number of Baths.............................................................................................. 4

This custom Mountain-style home built by Stonebridge Builders features a Great Room with real timbers and a timber bridge, custom elevator, custom painted cabinets, floor-to-ceiling stone fireplace, and so much more! This is a home you won’t want to miss! Come see us at the Showcase.

11 | FOUNDATIONS NEWSLTR

Maplewood Custom Homes 2160 THEA LN SW ROCHESTER Subdivision: Fieldstone Rambler / Ranch Home

Amenities • cul-de-sac, walkout wooded lot • covered porch & deck • walk-in pantry • flex room in lower level • 2 lower-level bedroom suites with heated floors • Exterior Material - LP Smartside Total Square Footage (Not Including Garage)............................................4116 Finished Square Footage (Not Including Garage)......................................4032 Garage Square Footage.................................................................................1008 Number of Bedrooms........................................................................................... 4 Number of Baths................................................................................................... 4

Introducing our newest model home in the SW Fieldstone Community. This home offers some of the latest selections of design, styles, colors, products, and privacy. We welcome you to visit with the builders, Denny & Kathy, at this warm and inviting Fall Showcase entry. This home is for sale and move-in ready.

12 | SEPTEMBER - OCTOBER 2021

Jim Kostroski Construction, LLC 3229 YELLOW ROSE LN SW ROCHESTER Subdivision: Fieldstone Rambler / Ranch Home

Amenities • large heated garage • large wooded backyard • full bar in lower level • screened-in porch • custom cabinets • quartz countertops • Exterior Material - Hardie Cement Board Total Square Footage (Not Including Garage).......................................... 3532 Finished Square Footage (Not Including Garage).................................... 3532 Garage Square Footage............................................................................... 1140 Number of Bedrooms..........................................................................................4 Number of Baths..................................................................................................4 A beautiful four-bedroom, daylight walkout in SW Rochester. Quartz countertops, custom cabinets and white oak hardwood floor. Finished lower level with two bedrooms, two baths and a walk-up full bar. Large screened-in porch and walk out patio area. Oversized three-car garage with hot and cold soft water, floor drain, sink and epoxy floor.

13 | FOUNDATIONS NEWSLTR

Bigelow Homes 290 LEHMAN DR NE BYRON Subdivision: Somerby Golf Community Villa / Patio Home

Amenities • 3-bedroom • screened porch • walk-in, tiled shower • gas fireplace • in-floor heat • finished / heated garage • Exterior Material - LP Smartside, Vinyl Total Square Footage (Not Including Garage).................................................1720 Finished Square Footage (Not Including Garage)...........................................1720 Garage Square Footage........................................................................................765 Number of Bedrooms................................................................................................ 3 Number of Baths........................................................................................................ 2 New slab on grade floor plan offers an open design with convenient one-level living. Stained birch cabinetry, granite surfaces, screened porch with access to a 14 x12 concrete patio. This home features in-floor heat (2-zone) house and garage plus forced air natural gas furnace and central air.

14 | SEPTEMBER - OCTOBER 2021

DeWitz Home Builders, Inc. 6218 SANDSTONE ST NW ROCHESTER Subdivision: Pebble Creek Split Level Home

Amenities • tile shower • center island • vaulted ceilings • stone accents • 3-car garage • Exterior Material - Stone, Vinyl Total Square Footage (Not Including Garage)............................................ 2480 Finished Square Footage (Not Including Garage)...................................... 1240 Garage Square Footage....................................................................................750 Number of Bedrooms............................................................................................2 Number of Baths....................................................................................................2

Custom split entry with 3-car attached garage boast open floor plan with cathedral ceilings, painted trim and cabinets, kitchen center island, and solid surface countertops. Tiled shower and tub walls, LVP throughout main living areas, vinyl siding with stone accents. Lots of room to expand in the unfinished lower level.

15 | FOUNDATIONS NEWSLTR

16 | SEPTEMBER - OCTOBER 2021

Thank you to the sponsors who supported this fun event. Everyone had a great time. See you next year!

17 | FOUNDATIONS NEWSLTR

TOP MALE SCORE 94 TRAVIS WITTWER - ROCHESTER MAYO

TOP FEMALE SCORE 90 AJ BARRERA - AUSTIN

TEAM TROPHY WINNER HASTINGS 89 ADV.

18 | SEPTEMBER - OCTOBER 2021

ROCHESTER AREA BUILDERS HOME SHOW 43 Annual rd

FEBRUARY 4, 5, & 6, 2022 ALL BOOTHS ON ONE FLOOR! CHECK OUT THE 2022 HOME SHOW MAP

Ease of entrance for a�endees, right oﬀ the skyway.

Easy access to the exhibit space (only one Ballroom door won’t be open, due to the �cket booth).

Less Confusion. One ﬂoor, one area. No need to worry about if a�endees saw all the exhibitors.

New booth spaces in the Ballroom lobby area.

Friday night ac�vity area and theseminar areas more visible and integrated with the rest of the show.

BOOTH REGISTRATION IS OPEN! RESERVE YOUR BOOTH TODAY! Registra�on and Exhibitor Informa�on can be found HERE.

Please contact Shelly with ques�ons.

19 | FOUNDATIONS NEWSLTR

City of Rochester, Minnesota 4001 W River Parkway NW, Suite 100 Rochester, MN 55901-7090

Phone: 507-328-2600 Fax: 507-328-2601 Email: buildingsafety@rochestermn.gov

The City of Rochester has launched new online services to streamline the permitting process. Read the full press release here: https://www.rochestermn.gov/Home/Components/News/News/8361/1121 Highlights of these enhancements include new appliance permits, online trust account payments, and automatic issuance of permits. What does this mean for you? Read on to find out! New Appliance permits – Licensed contractors can now apply for appliance permits online through Citizen Access (furnace, air conditioner, water heaters, and the associated electrical for appliances) as well as pay for the permit using a Trust Account or Credit Card. The permit will automatically issue without going through administrative review. This fast, convenient process allows you to better serve your customers. Trust Accounts in Citizen Access – All contractors with Trust Accounts can now use their trust accounts in Citizen Access to pay for permits by following these three easy steps. 1. Admin staff will intake your permit application, review it for accuracy, and formally accept the permit. 2. Upon acceptance, an automated email will be sent to the applicant, letting them know the permit is ready for payment. 3. The applicant will then log in to their Citizen Access account to make payment using either a Trust Account or a credit card. Other Updates



The City of Rochester has implemented a new kiosk available in the Development Services Infrastructure Center lobby to assist our customers with online permit submission and payments. One-on-one training is available! If you would like assistance navigating the Citizen Access portal, applying for permit applications, or scheduling inspections, please feel free to stop by or call our office at 507-328-2600 to schedule a training session. A push toward paper-free! o You will no longer receive a copy of your permit and receipt in the mail. All documents are now available in Citizen Access for you to download at your convenience. o Residential projects no longer require documents on-site. Building permits, inspection cards, and approved plans are electronic, so no need to print your documents!

Step-by-step guidance, located here Applications, Forms, and Guides COMING SOON: Beginning early 2022, the Community Development Department will begin implementing a fully paperless permitting process which will eliminate all paper applications received via email, fax, or walk-in submissions. Stay tuned for further updates!

20 | SEPTEMBER - OCTOBER 2021

Women Make Up 10.9% of the Construction Workforce BY NA ZHAO on SEPTEMBER 13, 2021 The number of women employed in the construction industry grew slightly in 2020, rising to around 1.17 million, while the construction industry lost 587,000 jobs in 2020 when the pandemic hit the economy. Currently, women make up a growing share of the construction employment, up to 10.9% in 2020 from 10.3% in 2019. As the construction skilled labor shortage remains a key challenge, adding new workers is an important goal of the industry. Bringing additional women into the construction labor force represents a potential opportunity for the future. Here we explore the state of women in the construction industry using labor force statistics from the Current Population Survey (CPS). During the Great Recession, the number of female construction workers declined sharply by almost 30 percent to 807,000 by 2010. From 2010 to 2017, the total slowly expanded to around 970,000 but remained below the peak of pre-recession levels. The number of women working in construction increased to 1.17 million in 2020, edged up by 0.4% in 2020 during the pandemic.

Overall, the share of women in construction increased to 10.9% in 2020. According to the Current Population Survey, women in the construction are mostly involved in such

occupations as office and admnistrative support, management, business and financial operations. Sales and office occupations employed the largest number of women within the construction industry. For example, women accounted for 69 percent of workers in sales and office occupations, including 444,000 women in office and administrative support, and 32,000 in sales and related occupations in 2020. Around 398,000 women were engaged in management, professional, and related occupations. While construction and mainenance occupations account for the largest number of employees in construction, and is where additional workers are needed, women comprised only 6 percent of the such occupations. More improvement is needed here. Other groups such as production, transportation, and material moving occupations, and service occupations employed only around 14,000 female workers.

21 | FOUNDATIONS NEWSLTR

Thanks to everyone who attended our Rochester Office Grand Opening!

Architecture + Engineering + Environmental + Planning | ISGInc.com | #ISGRochLaunch

22 | SEPTEMBER - OCTOBER 2021

JOB SHADOWING OPPORTUNITIES Rochester Area Builders provides job shadow opportunities for Kasson-Mantorville carpentry students. Our first opportunity to host is, October 7th, 8:30am - 11:45am. We are looking for hosts in the following areas:

• Architect • Auto Body Repair/ • • • •

Mechanic Carpenter Closets CNC Machinist Construction Management

• • • • • • •

Drywall Electrician Engineer Excavation Financial Advisor Fire Protection Heavy Equipment Operator

• • • • • •

HVAC/Plumbing Interior Design Linesman Mason Painting Siding & Windows

Contact Rebekah for more information.

23 | FOUNDATIONS NEWSLTR

Builder Confidence Steadies as Material and Labor Challenges Persist BY ROBERT DIETZ ON SEPTEMBER 20, 2021

Builder confidence inched up in September on lower lumber prices and strong housing demand, even as the housing sector continues to grapple with building material supply chain issues and labor challenges. Ending a three-month decline, builder sentiment in the market for newly built singlefamily homes edged up one point to 76 in September, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). Builder sentiment has been gradually cooling since the HMI hit an all-time high reading of 90 last November. The September data show stability as some building material cost challenges ease, particularly for softwood lumber. However, delivery times remain extended and the chronic construction labor shortage is expected to persist as the overall labor market recovers. NAHB expects housing affordability will be a key demand-side challenge in the coming quarters, given the rapid rate of growth for home prices and construction costs over the last year. Regionally, we continue to see growth in the South and the West, particularly the Mountain West. Exurban markets have expanded the most over the last year, although inner suburbs are now experiencing an acceleration, with townhouse construction having had the best quarter in 14 years this spring. Derived from a monthly survey that NAHB has been conducting for 35 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor. The HMI index gauging current sales conditions rose one point to 82, the component measuring traffic of prospective buyers posted a two-point gain to 61 and the gauge charting sales expectations in the next six months held steady at 81. Looking at the three-month moving averages for regional HMI scores, the Northeast fell two points to 72, the South dropped two points to 80 and the West registered a two-point decline to 83. The Midwest remained unchanged at 68. HMI tables can be found at nahb.org/hmi.

24 | SEPTEMBER - OCTOBER 2021

Make your new home your dream home. CONTACT OUR REAL ESTATE LENDER TODAY!

CRYSTAL HUGHLEY REAL ESTATE LENDER NMLS#1389898 Rochester Location 975 34th Ave NW (507) 424-1571 crystal.hughley@bankonONB.com

| BankonONB.com |

25 | FOUNDATIONS NEWSLTR

Goodin Company carries a full complement of products for the markets we serve. Are you in need of products for plumbing, HVAC, industrial, or pump and well applications? We are your Source of Supply, serving the industry since 1937.

PLUMBING

HVAC

Goodin Company maintains a complete inventory in a wide range of major brand plumbing products for both residential and commercial plumbing contractors. To support our plumbing inventory, we maintain showrooms in many of our branch locations.

Our HVAC division encompasses both hydronic and warm air heating as well as central and split system air conditioning equipment for residential and commercial systems. We also provide technical support in design and layout.

INDUSTRIAL

PUMP AND WELL

We supply a wide range of industrial pipe, valves, and fittings. To compliment our pipe inventory, we offer a complete in-house pipe fabrication service in which we are able to cut, thread and groove pipe to our customers’ specifications.

Goodin Company’s pump and well division maintains a complete inventory of pumps and repair parts for the residential water well drilling contractor, as well as the large commercial or municipal driller.

MINNEAPOLIS (612) 588-7811 ST. PAUL (651) 489-8831 DULUTH (218) 727-6670 DETROIT LAKES (218) 847-9211 ST. CLOUD (320) 259-6086

BRAINERD (218) 828-4242 ROCHESTER (507) 529-1284 FARGO (701) 298-3210 SIOUX FALLS (605) 332-3444 OMAHA (402) 331-6813 www.goodinco.com

EAU CLAIRE (715) 830-1800 WAUSAU (715) 675-2513 MADISON (608) 663-0331 MILWAUKEE (262) 781-1770 GREEN BAY (920) 884-9494

26 | SEPTEMBER - OCTOBER 2021

We’re in the offering NAHB members up to $1,000 business.

2018 Chevrolet Low Cab Forward 3500HD

2018 Chevrolet Express 2500 Cargo Van

2018 Chevrolet Silverado 2500HD

2018 GMC Sierra 1500

USING THE PRIVATE OFFER FOR NAHB MEMBERS IS EASY: 1. Get your NAHB Proof of Membership by logging into NAHB.org and obtaining your verification form. 2. Visit your local Chevrolet dealer and mention this Private Offer. 3. Select an eligible vehicle(s) to purchase or lease and present your NAHB proof of membership. For even more value, combine this offer with the National Fleet Purchase Program and Business Choice Offers. For full details on the Private Offer, NAHB members should visit nahb.org/gm. Example offer for NAHB members who are business owners purchasing a 2018 Chevrolet Express 2500 Cargo Van. Up to

$1,000 Private Offer1

$3,750

National Fleet Purchase Program (FVX)2

Up to

$1,200

Eligible Accessory Cash Allowance3

Up to

$5,950 In Potential Value

¹Private offer amount varies by model. City Express and Low Cab Forward receive a $250 Offer for both Fleet and Retail deliveries. Fleet deliveries on the Buick Enclave, Chevrolet Traverse, Silverado, Express, Suburban, Tahoe, GMC Acadia, Sierra, Savana, Yukon, XL receive a $1,000 Offer. All other Fleet or Retail deliveries receive a $500 Offer. Valid toward the purchase or lease of eligible new 2017 and 2018 model year vehicles. Offer excludes Chevrolet Bolt, Camaro, SS, Corvette, Sonic, Spark, Trax, Volt, Buick Cascada, LaCrosse, Regal, Verano, and all Cadillac vehicles. Additional GM models may be excluded from time to time at GM’s sole discretion. Customer must take delivery by 1/2/2019. Not compatible with some other offers. Not valid on prior purchases. See dealer for details. 2Offer available to qualified fleet customers through 1/2/2019. Not compatible with some other offers. Take delivery by 1/2/2019. See dealer for details. 3To qualify, vehicle must be used in the day-to-day operations of your business and not solely for personal/non-business-related transportation purposes. For complete program requirements, including information regarding offers, vehicles, equipment, options, warranties, and ordering, consult your dealer or visit www.gmbusinesschoice.com. Requires $500 minimum purchase. Cash Allowance will be equal to the amount spent up to $1,200. Not eligible on Associated Accessories from third-party independent suppliers. Not available with some other offers. Take delivery by 1/2/2019. See dealer for details. ©2018 General Motors, LLC. All rights reserved. The marks appearing in this ad are the trademarks or service marks of GM, its subsidiaries, affiliates, or licensors.

27 | FOUNDATIONS NEWSLTR

28 | JULY - AUGUST 2021

ROCHESTER BUILDING PERMITS NEW RESIDENTIAL

2021

Single Family Dwelling

9,729,799

5,190,707

Townhome Dwelling

637,380

Two-Family Houses

Manufactured Home

Multi-Family Bldgs (Units)

VALUATION 2020

VALUATION

AUGUST 2021

2012 2013 2014 2015 2016 2017 2018

2019 2020 2021

January

February

March

April

May

June

July

August

218 222 258

223

292 264 233

190

EXISTING RESIDENTIAL Deck Addition

122,430

201,527

Room Addition

30,000

74,000

Porch Additions

80,000

Other Additions

53,650

18,000

Basement Finish

363,657

363,600

Alterations

729,313

580,760

Multi-Family Addition

Multi-Family Alterations

63,877

405,635

TOTAL

168

164

September

October

November

December

TOTAL

299

326

369

418 429 347

289

266

166

*Total may differ as permits may have been voided.

NEW COMMERCIAL Assembly (Church)

Assembly (General)

15,000

Assembly (Restaurant/Bar)

Business

Education

Factory/Industrial

Institution

650,000

Mercantile

Miscellaneous

19,000

Residential (Apartment)

Residential (Care/Assisted Living)

Residential (Care/Hotel/Motel)

11,660,444

Storage (General)

Storage (Parking Garage)

2,363,689

Storage (Warehouse)

Utility (General)

30,000

Utility (Private Garage)

YEAR TO DATE STATISTICS NO.

2021 VALUATION

BUILDING PERMITS ISSUED TO DATE

NO.

2020 VALUATION

1549

335,450,956

1249

$225,200,958

Single Family Dwelling

170

60,015,722

146

41,609,266

Multi-Family Buildings Total Units: 319

37,800,000

10,640,000

TRADE PERMITS ISSUED TO DATE

6852

89,581,478

6390

$69,962,770

Electrical

2686

40,332,508

2426

30,936,794

Electrical (Temp. Service) Mechanical (HVAC)

168

70,955

180

67,825

1869

24,749,710

1764

20,895,878

Mechanical (Gas Piping)

420

538,598

401

663,282

Mechanical (Fireplace)

210

1,047,322

194

836,965

Mechanical (Hydronic) Plumbing TOTAL PERMITS YTD

108

6,406,606

101

2,909,353

1391

16,436,880

1324

13,652,943

8401

425,032,434

7639

295,163,728

EXISTING COMMERCIAL Addition

10,000

5,332,592

4,705,626

Structural Shell

998,000

“White Box”

Interior Demolition Only

Other Phased Permits

Alterations

OTHER CONSTRUCTION Business Signs

363,170

644,119

Advertising Signs

Footings & Foundations

Demolition

Information and downloads available at Rochester Building Safety Department’s website: https://www.rochestermn.gov/government/departments/building-safety/reports-building-permits/building-permits-2021

AUGUST 2021

PINE ISLAND

BUILDING PERMITS

NUMBER

VALUATION

Single Family Detached

NEW RESIDENTIAL

400,000

Single Family Attached

Basement Finish

30,000

Deck Addition

Existing Residential

29 | FOUNDATIONS NEWSLTR

OLMSTED COUNTY PERMITS YTD

2021

VALUATION

2020

VALUATION

2020

VALUATION

COMMERCIAL/INDUSTRIAL

Single Family-Detached

11,191,859

5,093,672

Single Family-Attached

1,891,761

Garage

2021

NEW RESIDENTIAL

AUGUST 2021

Addition

121,056

422,867

Alterations

166,000

635,438

Re-roofing

3,900

8,250

703,996

1,046,430

Deck

213,054

146,028

Pool, Retaining Wall, etc.

397,414

327,419

Addition

517,850

237,157

Manufactured Homes

114

1,528,235

1,082,810

97,099

9,612

150

1,085,851

135

1,645,179

788,313

1,096,911

500

21,709,530

417

18,689,428

RESIDENTIAL

Alterations Garage Addition

OTHER STRUCTURES

NEW COMMERCIAL/INDUSTRIAL Recreational

Church/Religious

Industrial/Warehouse

236,059

Service/Repair Station

Store/Restaurant

Nonresidential Building

2021

VALUATION $3,025,080 PERMITS 16

BYRON

VALUATION $15,000 PERMITS 1

Mechanical Plumbing

VALUATION $2,005,628 PERMITS 28

MISCELLANEOUS PERMITS

TOTAL PERMITS

BYRON NOW INCLUDED IN OLMSTED COUNTY PERMITS

OLMSTED COUNTY PERMITS AUGUST

2020

VALUATION $407,467 PERMITS 4

VALUATION $157,221 PERMITS 13

EYOTA

VALUATION $1,208,103 PERMITS 17

MARION

VALUATION $279,069 PERMITS 33

VALUATION $368,900 PERMITS 14

ORONOCO TWP

VALUATION $20,000 PERMITS 1

VALUATION $103,676 PERMITS 2

QUINCY

VALUATION $104,830 PERMITS 10

VALUATION $536,992 PERMITS 18

STEWARTVILLE

Activity Overview Key metrics by report month and for year-to-date (YTD) starting from the first of the year.

Key Metrics

Historical Sparkbars

New Listings 8-2018

8-2019

8-2020

8-2021

8-2018

8-2019

8-2020

8-2021

8-2018

8-2019

8-2020

8-2021

8-2018

8-2019

8-2020

8-2021

8-2018

8-2019

8-2020

8-2021

8-2018

8-2019

8-2020

8-2021

8-2018

8-2019

8-2020

8-2021

8-2018

8-2019

8-2020

8-2021

8-2018

8-2019

8-2020

8-2021

8-2018

8-2019

8-2020

8-2021

Pending Sales

Closed Sales

Days on Market

Median Sales Price

Avg. Sales Price

Pct. of Orig. Price Received

Affordability Index

Homes for Sale

Months Supply

8-2020

8-2021

Percent Change

YTD 2020 YTD 2021

713

685

- 3.9%

4,934

5,017

+ 1.7%

690

620

- 10.1%

4,616

4,585

- 0.7%

651

637

- 2.2%

4,163

4,219

+ 1.3%

- 45.7%

- 42.1%

$231,750

$250,000

+ 7.9%

$220,000

$245,000

+ 11.4%

$248,610

$276,879

+ 11.4%

$243,572

$274,273

+ 12.6%

98.6%

100.5%

+ 1.9%

97.5%

100.6%

+ 3.2%

188

171

- 9.0%

198

174

- 12.1%

1,039

765

- 26.4%

1.9

1.4

- 26.3%

Percent Change

30 | SEPTEMBER - OCTOBER 2021

Price Index for Inputs to Residential Construction Declines in August

BY DAVID LOGAN on SEPTEMBER 13, 2021 Prices paid for goods used in residential construction ex-energy decreased 0.7% in August (not seasonally adjusted), according to the latest Producer Price Index (PPI) report released by the Bureau of Labor Statistics. The decrease was largely driven by a decline in lumber and wood products prices and was the first monthly decline since the start of the last recession. The price index of services inputs to residential construction also decreased in August as smaller gross profit margins of building materials retailers outweighed increases in the prices of freight transportation and other services. Despite the monthly decline, building materials prices remain 12.3% higher than they were at the beginning of 2021. Prices increased 2.1% over the same period in 2020. Similarly, the price of services inputs to residential construction increased 6.6% from January to August 2020 but has already climbed 12.5% thus far in 2021.

5.1% over the past 12 months and 4.7% YTD—the largest year-to-date increase in August since 2006. Prices rose in every region with the largest increase occurring in the Northeast (+2.9%). Prices in the Midwest, West, and South increased by 1.9%, 1.7%, and 1.2%, respectively.

The PPI for gypsum products increased 0.5% in August. The index has increased 14.9% YTD and Softwood Lumber

Ready-Mix Concrete Prices paid for ready-mix concrete (RMC) rose 1.6% in August. The index for RMC has risen

The price indices for transportation and warehousing and services less trade, warehousing, and transportation increased 0.9% and 0.2%, respectively. The price of truck transportation of freight increased 0.9% in August and has advanced 9.5% YTD. Water transportation prices increased 1.3% over the month and have increased 9.0% YTD. Other Building Materials

22.7% over the past 12 months—the largest such increases since 2004 and 2006, respectively. Steel Products Steel mill products prices climbed 5.1% in August following a 10.8% increase in August. Prices have nearly doubled in 2021, accounting for nearly all of the 111.6% increase since January 2020.

Although the direction of the index value change is encouraging, the continued volatility is not. Price volatility remains at an all-time high for a 12-month period.

The price of services used as inputs to residential construction decreased 5.7% in August. The monthly decline was entirely driven by a 7.8% drop in the prices for trade services, the index for which accounts for roughly two-thirds of the PPI for “inputs to residential construction, services.” The trade services PPI measures changes in the nominal gross margins for goods sold by retailers and wholesalers. Unsurprisingly, hardware and building materials retailers make up the majority (56.4%) of trade services included as residential construction inputs. The PPI for building materials retailers decreased 11.6% in August while nominal gross margins for building materials wholesalers increased 5.7%.

Gypsum Products

The PPI for softwood lumber (seasonally adjusted) decreased 27.7% in August and has declined 49.0% since May. The steep two-month decrease comes on the heels of an unexpectedly mild 0.7% decline in June that was largely the result of PPI methodology. The PPI of most durable goods for a given month is largely based on prices paid for goods shipped in the survey month. This can result in lags relative to cash market prices during periods of long lead times.

Services

The monthly change in the steel mill products PPI increased by more than 10% only three times (in 1947, 1948, and 2008) over the 80-year period ending in 2020. Monthly increases have exceeded that mark four times in 2021.

The chart below shows the 12-month and year-todate price changes of other price indices relevant to the residential construction industry. As Congress continues to work on an infrastructure package, the Construction Materials index is particularly salient. This index, which has increased 23.9% year-to-date and 32.1% over the past 12 months, is much more heavily weighted with products used in large amounts in the production of “traditional” infrastructure (e.g., roads, bridges, rail).

31 | FOUNDATIONS NEWSLTR

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• 200 characters on search results

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CONTACT: Audra Bolduan Audra@RochesterAreaBuilders.com

WEBSITE BROCHURE

32 | SEPTEMBER - OCTOBER 2021

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33 | FOUNDATIONS NEWSLTR