FOUNDATIONS NEWSLTR OCTOBER

SPORTING

STAFF

EXECUTIVE DIRECTOR

John Eischen, John@RochesterAreaBuilders.com

Shelly Bahlmann, Shelly@RochesterAreaBuilders.com

Golf Outing, Sporting Clays, Home Show, Directory, Newsletter, RAB Update, Member Plus App & RAB Events App 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

Elizabeth Sullivan-Burton, Elizabeth@RochesterAreaBuilders.com Builders Exchange Trustees and Showcase Committee, Website GOVERNMENT & PUBLIC AFFAIRS CONSULTANT

Rick Dold, Rick@GodwinDold.com

BOARD OF DIRECTORS

PRESIDENT Becky Holmen, Haley Lighting VICE PRESIDENT

Jason Scrimshaw, Kimley-Horn & Associates, Inc. SECRETARY

Jennifer Mitchell, Edina Realty TREASURER

Jessica Markley, Elias Construction, LLC

PAST PRESIDENT

Luke Stier, Stier Construction, Inc.

DIRECTORS

Adam Giannini, Knutson Construction

Adam Kramer, Kramer Contracting

Jarett Jones, Merchants Bank

Aaron Thompson, The Design Connection

Austin Ryan, Ryan Windows & Siding

Charlie Sweeney, Kraus-Anderson Construction

Melissa Barbour, TLS Companies, LLC

Vanessa Hines, Widseth

Julie Herrera-Lemler, Rochester Area Economic Development, Inc. (RAEDI)

BUILDERS EXCHANGE COUNCIL CHAIR

Katie Reinhart, Kraus-Anderson Construction

COMMERCIAL BUILDERS COUNCIL CHAIR

Robbie Danko, The Boldt Company

DEVELOPMENT COUNCIL CHAIR

Hal Henderson, HGA Architects & Engineers

REMODELERS COUNCIL CHAIR

Krista Weisz, Stier Construction, Inc.

40 BELOW CHAIR

Adam Giannini, Knutson Construction

NATIONAL LIFE DIRECTORS

Steve Buss, Cornerstone Builders & Real Estate, Inc. (Rep)

NATIONAL DIRECTORS

Dana Hlebichuk, Widseth

Levi Kaiser, Benike Construction

Todd Severson, TLS Companies, LLC

STATE DIRECTORS

Mike Allen, Mike Allen Homes, LLC

Jean DeWitz, DeWitz Home Builders, Inc. Kathy Einck, Maplewood Homes.LLC (Rep)

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.

STRUTS & STILETTOS

ON HOUSING

October 2022

Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1

2 3

12:00 PM

Government Affairs Committee 4 8:30 AM Remodelers Council Exec. 11:30 AM Executive Committee 3:30 PM Builders Exchange Board of Trustees 5 7:30 AM Commercial Builders Council 12:00 PM Showcase Committee 6 11:30 AM Program Committee 7 8 9 10 11

3:00 PM Board Meeting 12 7:30 AM Green Building Committee 4:00 PM 40 Below: Fall Clean-Up 13 14 15 16 17 11:30 AM Fashion Show Committee 18 12:00 PM Remodelers Council Showroom Visit 19 12:00 PM Ambassadors Committee 4:30 PM 40 Below Exec Committee 20 7:30 AM Membership Committee 21 22 23 24 11:30 AM Home Show Committee 25 4:00 PM Networking Night 26 3:00 PM Development Services Advisory Committee 27 8:30 AM Job Shadow 28 29 30 31

OCTOBER

25

NOVEMBER

Rochester Area Builders

2022 Calendar of Events

Networking Night @ Warners’ Stellian

TBD Past Presidents Dinner

24-25

DECEMBER

2

Office Closed – Thanksgiving Holiday

Holiday Party @ The Hilton

23-26

JANUARY

Office Closed – Christmas Holiday 2023 CALENDAR OF EVENTS

TBD

24

31

FEBRUARY

Continuing Education Classes

General Membership Meeting @ TBD

NAHB International Builders Show – Las Vegas, NV

1-2

3-5

NAHB International Builders Show – Las Vegas, NV

Rochester Area Builders Home Show @ Mayo Civic Center

TBD Continuing Education Classes

28

Networking Night @ TBD

MARCH

APRIL

28

Networking Night @ Tulip Tree Studios & Valor Mechanical

TBD BAM Building Industry Day at the Capitol

20

25

Studs, Struts & Stilettos @ Mayo Civic Center

Networking Night @ TBD

15-16

MAY 29

JUNE 1

JULY

AUGUST

Spring Showcase of Homes 22-23

Spring Showcase of Homes

Office Closed – Memorial Day

RAB Golf Outing @ Willow Creek Golf Course 27

4

Networking Night @ Custom Alarm

Office Closed for Independence Day

TBD NAHB Mid-Year Board Meeting – TBD

25

Member Appreciation Night @ Mayowood Stone Barn

Builders, Bags & Brews @ LTS Brewing Company 29

12

SEPTEMBER

4

Networking Night @ TBD

Office Closed – Labor Day

14

16

16-17

23-24

26

OCTOBER

Sporting Clay Shoot

Sporting Clay Youth Shoot

Remodelers Tour & Fall Showcase of Homes

Fall Showcase of Homes

General Membership Meeting @ TBD

24

NOVEMBER

Networking Night @ TBD

TBD Past Presidents Dinner 23-24

DECEMBER

Office Closed – Thanksgiving Holiday

TBD Holiday Party @ The Hilton

25-26

Office Closed – Christmas Holiday

Membership Total: 401 Retention rate: 91.9%

As of August 31, 2022

ONE TO FOUR YEARS

Modern Design Cabinetry 2021

Jim Kostroski Construction, LLC

FIVE TO NINE YEARS

Schwab Construction Services

2020

2017

H&H Company of Rochester, LLC 2016

Meyer Borgman Johnson, Inc. ............2015

Pace International ................................2014 Distinguished Homes by Mitch Hagen, LLC 2014

CLA .........................................................2014

Are there young professionals in your organization who aren’t involved with 40 Below yet? Let us know so we can invite them to the next event and introduce them to this great group!

LVC Companies, Inc. 2014 Rochester Area Foundation

15 YEARS TO 19 YEARS

Kraus-Anderson Construction

City of Chatfield

2013

Coming up: 9.29.22 Professional Development 10.12.22 Fall Clean-up w/ Family Service Rochester 11.10.22 Friendsgiving at The Workshop

Contact Rebekah for more information.

2012

2012

Kreofsky Overhead Door 2007

Otis Custom Homes, LLC

Michael Jack, LLC

2006

2006

Tradesmen International 2005

Morris Concrete, Inc.

A&A Electric & Underground, Inc.

20 YEARS TO 24 YEARS

2004

2003

Knutson Construction Services 2002 Reliable Contractors

25 YEARS OR MORE

Beyond Kitchens

1998

1995

FASTSIGNS 1991

Townsquare Media Rochester

1983

1980 Energy Products & Design, Inc. 1980

Brogan Heating & Air Conditioning

Benike Construction

1979

FROM THE PRESIDENT

BECKY HOLMEN

President

Happy Fall Y’all. This is my favorite time of the year. The cooler temperatures, the leaves changing colors, the smell of campfires in the air, and the annual church dinners and bake sales are some of my favorite things.

I hope many of you are able to attend the September General Membership meeting, to learn more about the new UDC (Unified Development Code). Thank you all that have been providing your comments and questions to Rick to help with the final approved document. Since the beginning of my term as President, there has been a lot of discussion about the importance of the development of the UDC. I hope that the new codes will make the building permit application processes and land use and development process easier on you all.

Fall Showcase of Homes and

Remodelers Tour for RAB Members was a huge success this year. I spoke with several builders and remodelers about their entries and the amount of people they had come through the house was fantastic. I had the pleasure of handing out this year’s awards to some well-deserved builders. For Division 1, Distinguished Homes by Mitch Hagen, with his home on Yellow Rose Lane. For Division 2, Derby Builders, with their home on Merilaine Place. For Division 3, M.P. Kaye Builders their home on Trophy Lake Rd. For Division 4, Bigelow Homes, their home on Douglas Trail Drive. Congratulations to all the Builders and Remodelers for their great craftsmanship and attention to detail which made for a great Showcase and Tour.

The Sporting Clay Shoot was a huge success again. This event has consistently grown over the years. Thank you to all the sponsors and participants.

Mark your calendars for the RAB Holiday Party. This year’s theme is Family Game Night! Friday, December 2nd at the downtown Hilton. Better get a hotel room too just in case there is a blizzard like last year.

We are excited to offer Job Shadowing to the carpentry students of Kasson-Mantorville again. Please contact Rebekah or John if you would like to host a student for the morning. This will be held on October 27th.

Enjoy your cooler weather.

Becky Holmen Haley Lighting 2022 RAB President

OPPORTUNITIES

Consider your marketing investments now to get the best bang for your buck.

Look for more information about marketing opportunities coming soon!

Rochester Area Builders, Inc

Thank you Valor Mechanical and Tulip Tree Studios for hosting the August Networking Night. Lots of great conversation and networking were had by all.

Cheers to

Mechanical!

this beautiful lakefront home on over 3 acres from your screened porch or patio. Main floor living and open concept design that embraces today’s trends while remaining timeless. This home features large windows, custom cabinetry, spa-like master suite and a butler pantry.

lake

The Nominating Committee will be contacting members about placing their name in nomination for Board positions for 2023. Board members can serve two terms of two years each.

One builder director and one associate director will have their terms expiring or changing and they are noted with an asterisk *:

Current Board members and their status for 2023

Builders

Melissa Barber

Derrick Chapman

Adam Giannini

1st Year of 2nd Term

2nd Year of 1st Term

1st Year of 2nd Term

Adam Kramer Serving in Past President seat

Austin Ryan

2nd Year of 1st Term

* Charlie Sweeney Term Expired

Aaron Thompson 2nd year of 1st Term

Associates

* Becky Holmen

Julie Herrera Lemler

Vanessa Hines

Jarret Jones

Jennifer Mitchell

Jason Scrimshaw

Serving as Past President

2nd Year of 1st Term

2nd Year of 1st Term

2nd Year of 1st Term

2nd Year of 2nd Term

2nd Year of 1st Term

If you are interested in participating on the Board of Directors or would like to suggest another member, please contact John Eischen at the RAB office 507 282 7698 or Becky Holmen, 2022 RAB President at 507-424-1646.

Nominations will also be taken from the floor at the September General Membership Meeting.

JOB SHADOWING OPPORTUNITIES

Rochester Area Builders is providing job shadow opportunities for students in the Kasson - Mantorville carpentry program on Thursday, October 27th from 8:45am to 11:45am. We are looking for hosts in the following areas:

• Architect

• Auto Body Repair/Mechanic

• Carpenter

• Construction Management

• Electrician

• Engineering

• Excavation

• Fire Protection

• Flooring

• Heavy Equipment Operator

Home Security

HVAC

Interior Design Landscaping Mechanical Design (CAD/Drafting)

• Painting

• Plumbing

• Welding

The NAWIC SE Minnesota Chapter held our annual Industry Appreciation event on September 14 with a panel discussion from women in the construction industry as well as gave out awards for Partner of the Year and Member of the year. Thank you to our Gold Sponsor RSP and all our other sponsors. If you missed out, join us next year!

Member of the year Jodi Wiemerslage

Partner of the Year Benike Construction

Panel Speakers: Melissa Brinkman, Jessi Hanson, Tammy Rico. Moderator: Judy Braatz

MORE WOMEN WORKING IN CONSTRUCTION IN 2021

BY NA ZHAO on SEPTEMBER 12, 2022

The number of women employed in the construction industry increased to over 1.24 million in 2021, as the construction industry was quickly recovering jobs lost earlier during the pandemic induced recession. Currently, women make up 11% of the construction workforce, up from 9.3% in 2002. As the construction skilled labor shortage remains a key challenge for housing, 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. This post looks at 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 workers in construction declined sharply by almost 30% to 807,000 by 2010. From 2010 to 2017, the total slowly expanded to around 970,000 but remained below the peak of prerecession levels. The number of women working in construction grew rapidly in recent years, reaching a new high of 1.24 million in 2021.

record. According to the Current Population Survey, women in the construction are mostly involved in such occupations as office and administrative 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 71% of workers in sales and office occupations, including 440,000 women in office and administrative support, and 40,000 in sales and related occupations in 2021. Around 460,000 women were engaged in management, professional, and related occupations, taking up only 17% of all management positions

While construction and maintenance occupations account for the largest number of employees in construction and is where additional workers are most needed, women comprised only 3.7% of the such occupations. Additional steps should be taken to attract female workers into these high demand occupations. Other groups such as production, transportation, and material moving occupations, and service occupations employed only around 15,000 female workers.

Job gains by women have been outpacing overall job gains in construction in recent years. As a result, the share of women in construction increased 1.9 percentage points from 2017 to 2021. Currently, women make up 11% of the construction workforce, the highest share on

RAB OFFICE BID REQUEST

The RAB Board of Directors is considering turning the former physical plan room space into office rental space. Any RAB/ BER members interested can bid out the demo and construction of the new space.

Plans are also online with BER. November 4, 2022 bid date.

*RAB Office Plans*

Any questions, contact John. You can tour the space Monday - Thursday 8am to 3 pm, just call ahead. 507-282-7698.

talent to be a part of supporting single moms and their children.

The 2023 RAB Home Show will be featuring “Kitchens for Kids” – play kitchens for young children made by members of our community. Proceeds benefit Jeremiah Program. We invite you to be a part of this exciting activity!

A raffle will be held during the event. The people’s choice winner will be determined by the largest number of raffle tickets for each project.

These great mini-kitchens will be for children’s use but the raffle profits will go toward Jeremiah Program in Rochester MN. Jeremiah’s proven, holistic approach begins with establishing a supportive community for single mothers to pursue a career-track, college

education. Through a combination of quality early childhood education, a safe and affordable place to live, and empowerment and life skills training, families find stability and a path out of poverty.

You can also be a part of the Home Show and connect with customers by securing a 10’x10’ booth for the entire weekend (Friday, Saturday, and Sunday). Display, educate, and/or promote your business! Cost starts at $730. Open Registration begins in late summer, early fall.

Find the registration form at rochesterareabuilders.com/Kitchens-for-Kids-Registration

February 3-4-5, 2023 Mayo Civic Center

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?

,

the industry since 1937.

AD&C LOAN BALANCES

RISE AS SALES SLOW

BY ROBERT DIETZ on SEPTEMBER 8, 2022

Residential construction loan volume reached a post-Great Recession high during the second quarter of 2022, as home building activity and new home sales slowed. Outstanding builder loan balances are rising as development debt is being held longer as new homes remain in inventory longer. Loan balances will decline in coming quarters as the development loan market becomes more costly and tighter given higher interest rates. This is a reminder that tighter monetary policy affects housing demand but housing supply as well.

The volume of 1-4 unit residential construction loans made by FDIC-insured institutions increased 5% during the second quarter. The volume of loans increased by $4.7 billion on a quarterly basis. This loan volume expansion places the total stock of home building construction loans at $97.1 billion, a post-Great Recession high.

It is worth noting the FDIC data represent only the stock of loans, not changes in the underlying flows, so it is an imperfect data source. Lending remains much reduced from years past. The current amount of existing residential AD&C loans now stands 52% lower than the peak level of residential construction lending of $204 billion reached during the first quarter of 2008. Alternative sources of financing, including equity partners, have supplemented this capital market in recent years.

The FDIC data reveal that the total decline from peak lending for home building construction loans continues to exceed that of other AD&C loans (nonresidential, land development, and multifamily). Such forms of AD&C lending are off a smaller 24% from peak lending. For the second quarter, these loans posted a 3.7% increase.

On a year-over-year basis, the stock of residential construction loans is up 18%. Since the first quarter of 2013, the stock of outstanding home building construction loans has grown by 138%, an increase of more than $56 billion.

GET UP TO $5,400 TO GET THE JOB DONE

USING THE PRIVATE OFFERS1 FOR NAHB MEMBERS IS EASY:

1. Get your NAHB proof of membership.

2. Visit your local Chevrolet, Buick or GMC 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 2021 Chevrolet Silverado 2500 HD Crew Cab 1LT 4WD.

1Private offer amount varies by model; up to $500 offer for retail delivery and up to $1,000 offer for fleet deliveries. Valid toward the purchase or lease of eligible new 2020, 2021 and 2022 model year vehicles. Customer must take delivery by 1/3/2022. Not compatible with some other offers. Not valid on prior purchases. Excludes all Cadillac vehicles; 2020 Buick Cascada, LaCrosse, Regal and Verano; Chevrolet Colorado 2SA, Sonic, Trax, Volt and GMC Canyon 2SA; 2020-2021 Encore 1SV; Chevrolet Blazer, Camaro, Corvette, Equinox 1SM, Malibu 1VL, Traverse 1L0; GMC Acadia 1SV and Terrain 2SA. Additional GM models may be excluded at GM’s sole discretion. See dealer for details. 2Offer available to qualified fleet customers through 1/3/2022. Not compatible with some other offers. Take delivery 1/3/2022. 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. Must provide proof of business ownership. For complete program requirements, including information regarding offers, vehicles, equipment, options, warranties and ordering, consult your dealer or visit gmbusinesschoice.com. 4Eligible purchases must be equal to or greater than the amount of the cash allowance. Accessory Cash Allowance requires purchase of the eligible accessories from your dealer.

©2021 General Motors, LLC. All rights reserved. The marks appearing in this ad are the trademarks

of GM, its subsidiaries, affiliates or licensors.

YEAR TO DATE STATISTICS

TRADE PERMITS

Electrical

Electrical

Mechanical

Reach

Qualified Customers Advertise on the RAB Website!

More than 3,000 people visit the RAB website each month, many of them looking for a contractor. Advertise on our site and reach them when they’re primed to buy! Banner ads are available in a variety of locations on the RAB site, from job posts to the contractor directory. Higher tiers come with priority placement in directory search results too. Contact us today to learn how you can start advertising, starting at $299.

Contact Elizabeth Elizabeth@RochesterAreaBuilders.com or 507-282-7698

FOUNDATIONS

NEWSLETTER ADVERTISING

Rochester Area Builders Newsletter is an unbeatable opportunity to advertise to members and individuals associated with RAB. It is a source of valuable association and industry information, and is published and emailed monthly. Foundations is sent to over 1600 connected industry professionals. Ad sizes are listed under Display Ad Dimensions, and prices are located above. Ads may be changed from month to month.

Our prices are for full color ads. We will gladly work with you to design your ad. Please send digital files for all ad copy, logos, and artwork. We use PC format. We accept Illustrator and Photoshop files. Convert all fonts to outlines. We also accept the following high resolution file types: .tif, .eps and .pdf (with all graphics and fonts embedded). If you have any other formats please contact us.

RETURN TO:

ROCHESTER AREA BUILDERS

Shelly Bahlmann

Shelly@RochesterAreaBuilders.com

108 Elton Hills Ln NW Rochester, MN 55901 507-282-7698

Newsletter Advertising Rates Per Issue 12 Issues New Member 12 Issues

Full color 1/2 Horizontal c $70.00 c $650.00 c $490.00

Full color Full Page c $90.00 c $900.00 c $675.00

Full Color Full Page Press Release c $25.00

Newsletter Display Ad Dimensions

1/2 Horizontal 8-1/2 x 5-1/2 Full 8-1/2 x 11

Send artwork to Shelly@RochesterAreaBuilders.com by the 15th of the month to be included in the upcoming Foundation Newsletter.

SHIFT FOR HOMES BUILT IN LOW-DENSITY AND LOW-COST MARKETS SINCE THE PANDEMIC

BY NA ZHAO on SEPTEMBER 6, 2022

The most recent Home Building Geography Index (HBGI) shows that home building activities have shifted to low-density and low-cost markets since the beginning of the COVID-19 pandemic. The market share for single-family constructions in large metro core and inner suburbs has declined from 44.5% to 41.6% from the 4th quarter of 2019 (pre-COVID), to the 2nd quarter of 2022.

Housing demand has shifted from these higher density core areas to low density markets, where homes are larger and more affordable. At the beginning of the pandemic, homebuyers desired more personal space for the workfrom-home and remote learning models. Declines in housing affordability in high cost and highly regulated markets also drove homebuyers to low-density outer markets, which have a larger share of affordable homes.

NAHB’s HBGI shows that single-family home building in outer counties in large and medium sized metros has expanded to a 19% market share in the 2nd quarter of 2022 from 17.4% in the pre-COVID period. Meanwhile, the market share of new single-family constructions in rural areas increased from 9.4% to 10.4%.

Similar decentralizing trends also hold for multifamily home building from the 4th quarter of 2019 to the 2nd quarter of 2022. This market share increased from 6.8% to 7.9% in large and small metro outer markets and inched up from 20.8% to 22.9% in small metro core counties. In contrast, the market share slipped from 68.8% to 65.7% in large metro core and inner suburbs.

The Q2 2022 HBGI data can be found at http:// nahb.org/hbgi.

WEBSITE PROFILE ENHANCEMENTS

Company Name, Address and Phone Number

Links to Website, Address, and Phone

5 Categories

Medium Placement in Search Results

Link to Profile Page

12 Categories

Company Description (200 Characters)

Keywords (240 Characters)

Hours of Operation

Driving Directions

Higher Placement in Search Results

Company Description (1600 Characters)

Keywords (Unlimited Characters)

200 Characters on Search Results

Bulleted List with Hyperlinks

Logo on Profile Page Can Be Added

Search Results Summary (200 Characters)

Profile Page Header Can Be Added

Gold Map Pin

Logo On Search Results Can Be Added

Social Networks Can Be Added

Photo Gallery Can Be Added

YouTube Video Can Be Added

Contact Elizabeth for more information

STANDARD LISTING