FOUNDATIONS NEWSLTR MAY

2024 FEBRUARY MEMBERSHIP REPORT

Membership Total: 405 Retention rate: 94.12%

STAFF

Patrick Sexton Executive Director

Pat@RochesterAreaBuilders.com

Shelly Bahlmann Publications & Special Events Director

Shelly@RochesterAreaBuilders.com

Awards, Program, Golf Outing, Sporting Clays, Home Show, Trades & Toys, Newsletter, Showcase Magazine, RAB Update,Website, Member Plus App & RAB Events App

Amber Luhmann Planroom Director

Amber@RochesterAreaBuilders.com

Builders Exchange Trustees, Education, Showcase of Homes & Remodelers Tour

BOARD OF DIRECTORS

PRESIDENT

Adam Giannini, Knutson Construction

VICE PRESIDENT

Austin Ryan, Ryan Windows & Siding SECRETARY

Kelsey Vaszily, Kraus-Anderson Construction TREASURER

Aaron Thompson, The Design Connection

PAST PRESIDENT

J ason Scrimshaw, Kimley-Horn & Associates, Inc.

MISSION STATEMENT

DIRECTORS

Jeremy Moe, Boldt Company

Jeremy Keller, Keller Homes

Jarett Jones, Merchants Bank

Vanessa Hines, Widseth

Kaleb Stevens, Weis Builders

Chris Hus, RE/MAX Results

Melissa Barbour, TLS Companies, LLC

Joe West, Valor Mechanical

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

BUILDERS EXCHANGE COUNCIL CHAIR

Niki Birkholz, Palmer Soderberg, Inc.

COMMERCIAL BUILDERS COUNCIL CHAIR

Keith Kranz, LVC Companies

DEVELOPMENT COUNCIL CHAIR

Mark Welch, KMain Street Properties

REMODELERS COUNCIL CHAIR

Jen Foerraro, Hamernicks Flooring

40 BELOW CHAIR

Dylan Musgjerd, ISG

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

Jay Burke, Heartwood Homes

Jean DeWitz, DeWitz Home Builders, Inc.

Kathy Einck, Maplewood Homes, LLC (Rep)

John McGuine, JM Consulting

John Eckerman, RSP Architects

Kenneth Bush, Bush Companies

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.

FROM THE PRESIDENT

ADAM GIANNINI President

Rochester Area Builders

Happy Spring to you all! I hope everyone has been able to enjoy the nice weather over the last few weeks in Southern Minnesota. Spring is the time to sharpen the lawn mower blades, put away the snow blowers, and dust off the golf clubs because summer is right around the corner! The RAB calendar is full of events for us to get together to network and support our fellow members!

Join us for the Hats & Horses networking night at Hamernicks! Don your finest hats and embrace the Kentucky Derby spirit on Tuesday, April 30th, from 4:00 PM to 6:00 PM. It’s an opportunity to connect with fellow members and industry professionals in a relaxed setting. We look forward to seeing you there!

This weekend is your last chance to experience the beauty and craftsmanship of our community’s 36 homes on the Spring Showcase Tour. Don’t miss out on the opportunity to explore stunning designs and gather inspiration for your projects. It’s an event you won’t want to miss! Go to the RAB Events app to see home locations.

Registration for the RAB Golf Outing opened at 8:30am on April 25th, and the response was overwhelming! The event sold out in 6 minutes and 30 seconds. Thanks to all of you for your support! The Golf Committee made some changes this year to ensure tee sponsors received a team if they wanted one. We are always looking for ways to make this fun event even better. There are still sponsorships available. If you are interested, please contact Shelly. And when you do, make sure to tell her how much you appreciate her great work on this terrific event!

On August 15th we have our 4th annual Builders, Bags & Brews event at LTS Brewing Company and run by our 40 Below committee members. In response to your suggestions, we are mixing things up this year and having the event on Thursday from 1-5pm. Registration is open now and there are a few sponsorships still available.

Finally, exciting news! We’re thrilled to announce a new event this year - Trades & Toys Car Show on August 24th from 10am - 3pm at Graham Park. This family-friendly event is free to spectators and promises to be a day of fun for all. In addition to the projected 100+ cars, trucks and motorcycles, the event will include large machinery, food trucks and music. Sponsorship opportunities are available, so don’t hesitate to reach out to Shelly if you’re interested in showcasing all that your company has to offer.

Stay connected with the Rochester Area Builders for more updates and events throughout the year. We value your participation and support in building a vibrant community together. See you at the upcoming events!

Adam Giannini Knutson Construction 2024 RAB Board President

OPPORTUNITY SCHOLARSHIP

GRADUATING HIGH SCHOOL STUDENTS

POST-SECONDARY SCHOLARSHIPS

Rochester Area Builders, Inc. is proud to announce their 2024 scholarship program. Either $1000 or $500 non-renewable scholarships are available for graduating high school seniors and college freshmen. Scholarships are made available through the Commercial Builders Council, the Builders Exchange of Rochester, and the Youth Sporting Clay Shoot. Scholarships are for attendance in a post-secondary program in a construction-related field including technical school, trade school, apprenticeship, or college. Scholarship recipients will be announced in June 2024. To be eligible for any scholarships, applications must be postmarked by May 8, 2024.

Go to https://www.rochesterareabuilders. com/for-consumers/student-resources/ for scholarship application.

CRITERIA:

1. Applicant must be a resident of Dodge, Fillmore, Goodhue, Houston, Mower, Olmsted, Steele, Wabasha, Winona counties; be recommended by a RAB or BER member; or participated in the RAB Youth Sporting Clay Shoot.

2. Applicant must be accepted by a post-secondary program in a construction related field including technical school, trade school, apprenticeship, or college.

3. Applicant must have a 2.5 or better G.P.A. – High School Transcript Required

4. Applicant must demonstrate financial need.

5. Scholarship will be paid directly to the school.

Rochester Area Builders

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

RAB@RochesterAreaBuilders.com

May 2024

HATS & HORSES

M I N T J U L I P & S W E E T T E A

Kentucky Derby

Networking night

A M E S

S O U T H E R N F A R E . B O U R B O N

Rochester Area Builders

2024 Calendar of

WELCOME NEW MEMBERS APRIL 2024

Ansay & Associates, LLC

Raymond McGuire

Insurance

507-606-4004

ansay.com

Morris Contracting

Mitch Morris

Excavating 507-696-5411

morriscontracingco.com

Minuteman Press

Jim Lutes

Printing

507-288-4777

mn208.minuteman.com

Jeff Brunton

Jeff Brunton

Structural Engineering

608-330-2444

Fresh Paint Inc.

Mike Vowels

Residential Builder

651-429-4475

freshpaintinc.com

Cafely

Sam Smith

Catering 725-245-4544

cafely.com

JOHN MARSHALL JOB FAIR

If you are a business that employes workers aged 18 and under, and are actively looking for workers, this free job fair is for you. Event will be held at John Marshall High School gymnasium on May 7th from 10:30am-1:30pm. For more details and to register, please reach out to Erin with Rochester Public Schools at ervasquez@rochesterschools.org.

SOLDOUT!

June 6th Willow Creek Golf Club

11:00am Shotgun Start

REGISTRATION OPENS

SPONSORSHIPS AVAILABLE

APRIL 25TH AT 8:30AM

Contact Shelly with questions

GOLDEN TEE SPONSOR

ROCHESTER AREA BUILDERS 1

AUGUST 15, 2024

Presented By

40 Below Professional Development

Workplace coaching, communications, and motivation

Speaker: Dave Williams, ISG

WHAT: Workplace coaching, communications, and motivation event for 40 Below members.

WHEN: Wednesday, May 15, 2024.

TIME: 7:30am - Networking, coffee, and donuts. 8:00-9:00am - Dave Williams, speaker.

WHERE: Cambria Gallery, 400 Broadway Ave S, Suite 105, Rochester, MN 55904.

Cost: Free if you are a 40 Below member – or bring an application to join.

Today’s workplace is fast-paced and quickly changing. Dave Williams is the performance strategist at ISG and has been a performance coach for the Cleveland Guardians, New York Mets, US Army, and US Air Force. He will help you maximize your talents and skills. Through an interactive workshop, participants will learn how to coach, influence, and motivate simply by asking the right questions at the right time. By mastering these skills, leaders can create a culture of trust, continuous improvement, and high performance.

THANK YOU!

Thank you The Pinske Edge for a wonderful networking night event! Great food, great people.

KELLOGG AFTERSCHOOL PROGRAM

The enthusiastic group of Kellogg Middle School students participating in the RAB/RPS After School Program have moved from the classroom to the jobsite this month. Program committee Chair John Eischen (Carpet One), co-chair Jay Burke (Heartwood Homes), and committee member Ryan Jongeling (The Design Connection) are helping the students bring their vision for the playhouse from plan copies to actual playhouse. The first meeting at the job trailer (the RAB conference room) had the students signing off on the building plans and discussing jobs site safety. They then moved outside and began laying out the skids, laying out the floor joists, squaring the floor system, and, at the last session, framed and tipped up their first wall. In a couple of weeks they hope to have the framing completed and ready for a framing inspection by the Building Safety Division of Rochester Community Development.

We would like to thank the following members for their assistance:

Eagle Rock Bank for underwriting the building materials.

Ryan Windows and Siding for donating the LP siding.

Merit Roofing for donating the metal roofing. The Design Connection for donating plan services.

Classroom speakers:

Design Studio B

Eagle Rock Bank

Paxton Electric

Peak Remodel & Design Solutions

Rochester Building Safety

The Design Connection

CONVENTIONAL LOANS

• Low Down Payment Options

• Jumbo Loans

• Local Servicing

CONSTRUCTION LOANS

• Interest-only Payments during Construction

• Easy Conversion to Long-term Financing

GOVERNMENT LOAN PROGRAMS

• Low or No Down Payment Options

• First-time Home Buyer Programs

IN-HOUSE LOANS

• Recreational and Agricultural Land

• Cabin / Second Homes

• Investment Properties

• Home Equity Loans / LOCs

DBS Group Welcomes New Project Superintendent to Drive Continued Growth

Design-build commercial construction firm DBS Group has hired Brian Conner as a project superintendent. With over 30 years of industry experience, Conner will be responsible for reinforcing the high service standards and proactive project supervision for which DBS Group is recognized.

Conner has a diverse background, holding roles such as project superintendent, project manager, and business owner, and he has substantial experience in office, retail, athletic, warehouse, and general commercial projects.

"Brian's comprehensive leadership background and well -rounded project experience will be a great addition to our expanding team," said DBS Group CEO and President Chris Walters. "His commitment to excellence aligns closely with our company's focus on build ing not just construction projects but also lasting client relationships."

DBS Group has expanded significantly over the nine years since its creation, increasing its team from 15 to 44 experienced professionals. Specializing in the design -build approach, DBS Group leverages the collaboration of experienced design, estimating, pr oject management, and field operations professionals from project conception through ribbon -cutting to consistently deliver projects on budget, on schedule, and of high quality.

DBS Group is a design -build construction manager and general contractor based in Onalaska, Wisconsin, and Rochester, Minnesota. Experts in design -build project delivery in various commercial construction markets, DBS Group manages building projects from co nception to completion. The company's in -house designers, and external design partners, collaborate with DBS Group's estimating and construction experts to deliver projects on time and on budget.

EXISTING HOME SALES DECLINE IN MARCH

BY FAN-YU KUO on APRIL 18, 2024

After reaching the 12-month high last month, existing home sales retreated in March due to lingering high mortgage rates, according to the National Association of Realtors (NAR). Meanwhile, low resale inventory and strong demand continued to drive up existing home prices, marking the ninth consecutive month of year-over-year median sales price increases. Eventually, mortgage rates are expected to decrease gradually, leading to increased demand in the coming quarters. However, that decline is dependent on future inflation reports.

Total existing home sales, including single-family homes, townhomes, condominiums, and co-ops, declined 4.3% to a seasonally adjusted annual rate of 4.19 million in March (as shown below). On a year-over-year basis, sales were 3.7% lower than a year ago.

The first-time buyer share rose to 32% in March, up from 26% in February 2023 and from 28% in March 2023. The inventory level rose from 1.06 million in February to 1.11 million units in March and is up 14.4% from a year ago.

At the current sales rate, March unsold inventory sits at a 3.2-months supply, up from 2.9-months last month and 2.7-months a year ago. This inventory level remains very low compared to balanced market conditions (4.5 to 6 months’ supply) and illustrates the long-run need for more home construction.

Homes stayed on the market for an average of 33 days in March, down from 38 days in February but up from 29 days in March 2023.

The March all-cash sales share was 28% of transactions, down from 33% in February but up from 27% a year ago. All-cash buyers are less affected by changes in interest rates.

The March median sales price of all existing homes was $393,500, up 4.8% from last year. This marked the highest recorded price for the month of March. The median condominium/co-op price in March was up 5.8% from a year ago at $357,400.

Existing home sales in March were mixed across the four major regions (as shown below). Sales in the Midwest, South, and West decreased 1.9%, 5.9%, and 8.2% in March, while sales in the Northeast rose 4.2%. On a year-over-year basis, all four regions saw a decline in sales, ranging from -1.0% in the Midwest to -5.0% in the South.

The Pending Home Sales Index (PHSI) is a forward-looking indicator based on signed contracts. The PHSI fell from 75.6 to 74.4 in February. On a year-over-year basis, pending sales were 7.0% lower than a year ago per the NAR data.

A R E Y O U A F E M A L E I N T H E C O N S T R U C T I O N I N D U S T R Y

L O O K I N G F O R A F U N , S U P P O R T I V E G R O U P ?

J O I N N A W I C T O D A Y !

F o r m o r e t h a n 5 5 y e a r s , N A W I C h a s h e l p e d w o m e n t a k e a d v a n t a g e o f t h e o p p o r t u n i t i e s i n c o n s t r u c t i o n . W h e t h e r y o u w a n t t o e m b a r k o n a n e w c a r e e r , g r o w y o u r b u s i n e s s , e s t a b l i s h a r e l i a b l e n e t w o r k i n g b a s e , b e c o m e a m e n t o r / m e n t e e , m a k e a d i f f e r e n c e i n y o u r c o m m u n i t y , c o n t i n u e y o u r e d u c a t i o n , o r i n v e s t i n g r e a t f r i e n d s h i p s w i t h o t h e r w o m e n i n t h e i n d u s t r y N A W I C o f f e r s a v a r i e t y o f o p p o r t u n i t i e s l a r g e a n d s m a l l .

U p t o $ 8 , 0 0 0 i n s c h o l a r s h i p s a r e a v a i l a b l e f r o m

N A W I C S E M N C h a p t e r 3 4 6 !

W H Y J O I N N A W I C ?

B e p a r t o f a n e t w o r k o f

l i k e - m i n d e d w o m e n

L e a r n a b o u t t e c h n i c a l &

l e a d e r s h i p s k i l l s

E d u c a t i o n a l o p p o r t u n i t i e s

N e t w o r k i n g

W H O S H O U L D J O I N ?

H o m e B u i l d e r s &

R e m o d e l e r s

A r c h i t e c t s & E n g i n e e r s

C o n s u l t a n t s

C o m m e r c i a l G C s

R e s i d e n t i a l C o n s t r u c t i o n

S p e c i a l t y C o n t r a c t o r s

L a b o r U n i o n s

M e r i t S h o p s

S a f e t y m a n a g e r s

P r o j e c t & O f f i c e

A s s i s t a n t s

E s t i m a t o r s

I n t e r i o r D e s i g n e r s

B u s i n e s s D e v e l o p m e n t

M a r k e t i n g

C r e w M e m b e r s

N A W I C S E M N C h a p t e r 3 4 6 b a s e d o u t o f R o c h e s t e r i s 4 5 + m e m b e r s s t r o n g !

HIGHEST PAID OCCUPATIONS IN CONSTRUCTION IN 2023

BY NATALIA SINIAVSKAIA on APRIL 18, 2024

Half of payroll workers in construction earn more than $58,500 and the top 25% make at least $79,450, according to the latest May 2023 Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS) and analysis by the National Association of Home Builders (NAHB). In comparison, the U.S. median wage is $48,060, while the top quartile (top 25%) makes at least $76,980.

The OES publishes wages for almost 400 occupations in construction. Out of these, only 46 are construction trades. The other industry workers are in finance, sales, administration and other off-site activities.

The highest paid occupation in construction is Chief Executive Officer (CEO) with half of CEOs making over $172,000 per year. Lawyers working in construction are next on the list with the median wages of $166,450, and the top 25 percent highest paid lawyers making over $221,220. Out of the next ten highest paid trades in construction, eight are various managers. The highest paid managers in construction are architectural and engineering managers, with half of them making over $145,180 and the top 25 percent on the pay scale earning over $176,270 annually.

Among construction trades, elevator installers and repairers top the median wages list with half of them earning over $103,340 a year, and the top 25% making at least $129,090. First-line supervisors of construction trades are next on the list; their median wages are $76,960, with the top 25% highest paid supervisors earning more than $97,500.

In general, construction trades that require more years of formal education, specialized training or licensing tend to offer higher annual wages. Median wages of construction and building inspectors are $65,790 and the wages in the top quartile of the pay scale exceed $88,800. Half of plumbers in construction earn over $61,380, with the top quartile making over $80,300. Electricians’ wages are similarly high.

Carpenters are one of the most prevalent construction crafts in the industry. The trade requires less formal education. Nevertheless, the median wages of carpenters working in construction exceed the national median. Half of these craftsmen earn over $57,300 and the highest paid 25% bring in at least $73,800.

The OEWS program adopted a new estimation methodology in 2021. As a result, the previously published estimates are not directly comparable to the post-pandemic editions. Nevertheless, comparing the median wages in construction over the last two years reveals that, on average, lowerpaid occupations experienced a somewhat faster wage growth. Median wages of drywall installers, for example, grew 11%. Moreover, the overall construction median increased 7.3%, one of the largest increases among all industries.

Presented By:

Sponsored By:

April 20 - 21 & April 27 - 28, 2024

ROCHESTER BUILDING PERMITS

MARCH 2024

NEW RESIDENTIAL

YEAR TO DATE STATISTICS

NEW COMMERCIAL

TCPA BUILDING PERMITS

EXISTING RESIDENTIAL

EXISTING COMMERCIAL

OLMSTED COUNTY PERMITS YTD

NEW COMMERCIAL/INDUSTRIAL

COMMERCIAL/INDUSTRIAL

OLMSTED COUNTY PERMITS

PINE ISLAND BUILDING PERMITS

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

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

MOST HOME BUYERS WANT ONE, MEDIUM-SIZED HOME OFFICE

BY ROSE QUINT on APRIL 17, 2024

According to the latest What Home Buyers Really Want Study*, the vast majority of home buyers are looking for a home with at least one home office (or space dedicated to work/study). More specifically, 66% would prefer to buy a home with exactly one home office, 13% want at least two offices, and 20% want none (Fig. 1).

As homes continue to get smaller, understanding how much square footage buyers want to dedicate to a home office is a must. When asked, 59% of buyers interested in having a home office said it should be medium size (100 to 150 square feet). Much smaller shares of 22% and 19%, respectively, want the home office to be large (more than 150 square feet) or small (under 100 square feet).

More granular findings show that younger buyers as well as wealthier buyers are particularly in favor of home offices. Among Gen Z buyers, for example, 90% want at least one home office, compared to 75% of Boomers. Likewise, 92% of buyers in the $150,000+ income bracket would like at least one office, compared to 65% among those earning under $50,000.

* What Home Buyers Really Want, 2024 Edition sheds light on the housing preferences of the typical home buyer and is based on a national survey of more than 3,000 recent and prospective home buyers. Because of the inherent diversity in buyer backgrounds, the study provides granular specificity based on demographic factors such as generation, geographic location, race/ethnicity, income, and price point.

Exclusive Incentives

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This full-line fleet just went corporate.

The Nissan Business Advantage is a one-stop fleet shop for all your corporate needs. With America’s only full-line fleet import brand,* it’s the perfect addition to help your business reach its goals. Get ready to handle all your fleet needs from vans to sedans. nahb.org/nissan

*2021

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! Contact Rochester Area Builders Shelly@RochesterAreaBuilders.com or 507-282-7698

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: Shelly@rochesterareabuilders.com for more information.

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