OCTOBER 2016 SERVICE & SUPPLIER SHOWCASE
| 1
contents OCTOBER 2016
AT Y O U R F I N G E R T I P S
5 Surfing safari
6
Important home building industry websites TOOL TIME
6 Tool time Whether you’re a professional tradesperson or homeowner handyman, it’s crucial to have the right tool for the job INDUSTRY NE WS
9 Ch-ch-ch-changes New Alberta Building Codes come into effect this November MARKET OVERVIEW
11 Just the facts Housing start statistics for Calgary and region
9
PUBLISHER •
Source Media Group
Jim Zang Jean Faye Rodriguez GRAPHIC DESIGNERS • Dave Macaulay, Vivian Zhang PRODUCTION CO-ORDINATOR • Colleen Leier CONTRIBUTORS • Don Molyneaux, David Shepherd ADVERTISING SALES • Andrea Glowatsky ASSOCIATE PUBLISHER | EDITOR • ART DIRECTOR •
REGUL ARS
4 Editor’s Message
4 Cartoon 14 Laugh Out Loud
Copyright 2016 Source Media Group Corp. Material cannot be reprinted in whole or in part without the written permission from the publishers. All rights reserved. Service & Supplier Showcase® is available free through select distribution points in Calgary. Source Media Group Corp. agrees to advertise on behalf of the advertiser without responsibility for claims or misinformation made by the advertiser and acts only as an advertising medium. Source Media Group reserves the right to refuse any advertising at its sole discretion. Contact: Source Media Group, 6109 – 6th Street S.E., Calgary, AB T2H 1L9. E-mail info@sourcemediagroup.ca; Tel 403.532.3101; Fax 403.532.3109; Toll free 1.888.932.3101 Printed in Canada. Distributed by Gallant Distribution Services, Media Classified, Source Media Group. PUBLICATIONS AGREEMENT NO. 41072011. Return undeliverable Canadian addresses to: Source Media Group, 6109 – 6th Street S.E., Calgary, AB T2H 1L9.
OCTOBER 2016 SUPPLIER & SERVICES SHOWCASE
| 3
Editor’s Message
Extra! Extra! Read all about it!
Special pull-out supplement designed for housing industry insiders WHEN THE CANADIAN HOME Builders’ Association – Calgary Region and the local Urban Development Institute voted to merge earlier this year, it signaled a period of transition not just for the two organizations and their members, but also their outbound communications. With the amalgamation, everything is under review with an eye to moving forward as a single, stronger, association. A total re-brand is underway, meaning all outgoing communications, in future, will adhere to a new set of standard specifications, with a new name and logo, being worked on as you read this. The Association’s quarterly members-only Profile magazine is no exception to the rule and so, understandably, the decision was made to postpone it until there was something more concrete in place in terms of a comprehensive marketing/re-branding campaign. In its place this month, we’re pleased to be able to run this special pull-out supplement with both editorial and advertising content custom-built for the new home building community. It’s small, but
good things often come in small packages — consider it the ‘starter home’ of magazines — and it’s packed with content that will appeal to everyone from CEOs; to sales and marketing staff; industry service professionals; building material suppliers; and, of course, the people on the job site — contractors and trades. Plus, by stitching it into our New Home Living magazine, we’ve added a whole new audience for former Profile advertisers. In addition to reaching key housing industry personnel, their ads now reach prospective home buyers too, helping to drive the demand for various construction methods and materials from the consumer end. For potential home buyers, it’s a glimpse into the world of new home construction, letting you in on some inside information that just might come in handy when you purchase and plan your new home. We hope you enjoy reading this insert, learn something you didn’t know, and maybe even have a laugh or two along the way. If you do, we’ve done our job.
Cartoon
Olympic Drywalling: Synchronized team crack filling event
4 | SERVICE & SUPPLIER SHOWCASE OCTOBER 2016
At Your Fingertips
SURFING SAFARI
Important home building industry websites
Alberta Building Code Information www.municipalaffairs.alberta.ca Alberta New Home Warranty Program (ANHWP) www.anhwp.com ATCO Gas www.atcogas.com www.builtgreencanada.ca Built Green™ Canada Calgary Transit www.calgarytransit.com Call before you dig www.albertaonecall.com Canada Mortgage and Housing Corportation (CMHC) www.cmhc-schl.gc.ca/en Canadian Home Builders’ Association – Alberta www.chbaalberta.ca Canadian Home Builders Association/ Urban Development Insititute Calgary (CHBA/UDI) www.chbacalgary.com City of Calgary -Build Calgary www.calgary.ca/CS/build-calgary/Pages/home.aspx -Bylaw Services www.calgary.ca/CSPS/ABS/Pages/home.aspx -Calgary Housing Company www.calgary.ca/CSPS/ch/Pages/Contact-CHC.aspx -Real Estate and Development Services www.calgary.ca/CS/OLSH/Pages/home.aspx -Water Services www.calgary.ca/UEP/Water/Pages/Water-Services.aspx Condo Living magazine www.condolivingonline.com Enmax www.enmax.com New Home Living magazine www.newhomelivingonline.com Professional Home Builders Institute www.phbi.ca RenoMark™ www.renomark.ca Source Media Group www.sourcemediagroup.ca
OCTOBER 2016 SERVICE & SUPPLIER SHOWCASE
| 5
Tool Time
1
TOOL TIME PHOTOS BY DON MOLYNEAUX INTRODUCTION BY JIM ZANG
W
hether you’re a professional tradesperson or homeowner handyman, it’s crucial to have the right tool for the job. Even decidedly un-handy folks like myself can spend literally hours browsing the latest gadgets and gizmos at the local tool shop, hardware chain or big box home store. And, yes, sometimes we just can’t help ourselves, and the tool collection grows. Of course, if you’re sure you’re only going to need it just this once, maybe for a day or two, you can always find what you need at your local tool rental company. ♦
2
5 3
4 6 | SERVICE & SUPPLIER SHOWCASE OCTOBER 2016
Tool Time
8
7
6
1. 2. 3. 4. 5. 6. 7. 8.
Milwaukee Circular Saw. $16 a day to rent at New West Equipment. Makita Two Tool Cordless Combo Kit. $449 at Busy Bee Tools. Prime Lite Magnetic Pivoting Flashlight. $19.99 at Calgary Fasteners and Tools. Stanley Fat Max Mini Hand Saw. $21.99 at Calgary Fasteners and Tools. DeWalt Cordless Gyroscopic Screwdriver. $95.99 at Calgary Fasteners and Tools. Milwaukee Angle Grinder. $16 a day to rent at New West Equipment. Submersible Electric Water Pump. $45 a day to rent at New West Equipment. Makita 12 Volt Cordless 4pc. Combo Kit. (Mini Circular Saw shown). Set includes drill, impact driver, flashlight and saw. $325 at Calgary Fasteners and Tools. 9. MAXTECH 10 in 1 Racheting Screwdriver set. $26.99 at Busy Bee Tools.
9
OCTOBER 2016 SERVICE & SUPPLIER SHOWCASE
| 7
8 | SERVICE & SUPPLIER SHOWCASE OCTOBER 2016
Industry News
CH-CH-CH-CHANGES New Alberta Building Codes come into effect this November
BY DAVID SHEPHERD
H
ome builders, tradespeople, and home buyers will all be affected by two changes to the 2014 Alberta Building Code which will come into effect this November. The first change alters window installation requirements, and the second change relates to the energy performance of a building. While B.C. and Ontario adopted these codes years ago, Alberta has lagged behind, says Darrell Paul. Paul runs Qualistat Building Performance Consultants, which does building performance assessments, including site reviews and diagnostic tests. He’s been involved in residential construction since 1978. While the 2014 Alberta Building Code came into effect last November, Part 9.36 was delayed until this November 1st. The reason for the change? “The national code is changing,” says Paul. “It’s changing to try and reduce greenhouse gases, the carbon footprint, and all of the environmentally sensitive things people are worried about.” The new code requires insulation be measured by its effective value, rather than its nominal value. In laymen’s terms: the nominal value is the heat loss if there were no studs in the wall, just thick insulation. The effective value is the heat loss through a combination of both thick insulation between the studs and the heat loss through the studs themselves. For instance, a nominal R-20 has an effective R-16 because about 25 per cent of the wall is studs, which are only about R-7. The more studs, or solid lumber in the wall, the lower the effective R-value. The effective value is a more accurate reflection of what the real number is — which is what the new code demands.
“There’s a couple of ways you can meet code,” says Paul. “The first way is through a prescriptive requirement. Basically you just follow the prescriptive requirement and fill in the blanks. The other way is through a performance based route.” The performance-based route requires builders to produce an energy model of the house to determine what the house is going to use for energy, then build it in such a way that the proposed design “will not consume more energy than an equivalent building built to prescriptive requirements,” according to the City of Calgary website.
»
“It’s changing to try and reduce greenhouse gases, the carbon footprint, and all of the environmentally sensitive things people are worried about.”
OCTOBER 2016 SERVICE & SUPPLIER SHOWCASE
| 9
Industry News
What does this mean for home builders? Paul explains. “From a builder’s “When you look at what the government perspective, if they were into energy is doing with the carbon tax, if our utility efficiency, some of them already meet the code, and they’re not going to see much of rates go up, improved energy efficiency a difference. But the builders that are price point sensitive, those are the ones that will will help offset the cost of operating see an increase in building cost as they your home. It’s like buying an electric adjust.” In the current economic environcar — you spend more upfront, but you’re ment, no one knows how much of that price change will be passed on to day-to-day expenses go down. The code consumers. “When you look at what the forces builders to do that.” government is doing with the carbon tax, if our utility rates go up, improved energy efficiency will help offset the cost of operating your home. It’s like buying an ventilation. Finally, domestic hot water will electric car — you spend more upfront, but you’re day-to-day expenses go also need to meet new requirements. Paul down. The code forces builders to do that.” estimates that over 50 per cent of In particular, the code affects three core components. First, the building tradespeople are going to see the effects of envelope, which includes the insulation and air tightness. Then, the the new code. “People in the trades have to mechanical systems, which include the efficiency of the furnace and understand what is required and which areas are impacted.” One of the big impact areas? Air tightness. “That’s going to impact a lot of the trades. Framers, electricians and mechanical, plumbing, insulators, siding contractors — it’s a wide-ranging impact.” For home buyers, the code change likely won’t affect those interested in purchasing higher end homes, as most will already be designed to surpass the requirements of the new code. Those looking for homes at a lower price point may find the cost to build increase, though Paul notes it’s difficult to say how much of the cost will be passed on to consumers due to the current economic climate. Despite the update, Alberta remains almost a full code change behind — which means builders can expect more changes on the horizon. “The national code changes every five years, and we were already behind when the 2014 Alberta code came out,” says Paul, noting that the national code will be updated once again this fall. “The mandate from what I’ve heard from the government is that they want to keep close to the national code. That means in the next couple years we’re going to get another code change. Energy is the big ticket item — but we don’t know exactly what the details of it are until the code is released.” ♦
10 | SERVICE & SUPPLIER SHOWCASE OCTOBER 2016
Market Overview
JUST THE FACTS
Housing start statistics for Calgary and region
BY JIM ZANG
T
he famous author Mark Twain used to say there were three kinds of lies: lies, damn lies, and statistics. Obviously, he wasn’t involved in the home building industry and, obviously, he never heard of Canada Mortgage and Housing Corporation (CMHC). CMHC tracks housing stats from across the country every single month; releasing information on new starts, completions, absorptions (sales), pricing and more. If home building is your business, they’re one of the single best sources of information you can have, especially the Housing Information Portal on their website. Of course not everyone’s got time to do that kind of research, and not everyone’s a Sociology major with a love for social research and interpretation of statistical data (thanks Dr. Goldenberg!) — so we’ve done the work for you. Following are three charts which provide a fairly accurate snapshot of the various populations centres that make up the local housing market,
Chart A
Housing Starts
by dwelling type by month
JULY 2016
JULY 2015
2016 YTD
2015 YTD
Airdrie Single detached 60 Semi-detached 18 Row 0 Apartment 0 All 78
31 214 347 2 98 32 42 127 138 0 56 284 75 495 801
Cochrane Single detached 22 23 134 187 Semi-detached 14 20 42 110 Row 0 13 21 224 Apartment 0 0 0 107 All 36 56 197 628
Red Deer Single detached 20 Semi-detached 0 Row 0 Apartment 0 All 20
21 77 151 4 6 14 16 27 32 0 154 232 41 264 429
because it’s not just Calgary we’re talking about, but all the surrounding communities as well. To fit space constraints, the three charts presented here concern themselves just with new home starts. Chart A looks at new home starts, by type of dwelling, for Airdrie, Cochrane and Red Deer. These are tracked on a monthly basis, and show July of this year (the last month for which stats were available at time of writing) compared to July 2015, plus year-to-date totals for both. It’s interesting to compare the different markets, especially in terms of types of dwellings being built. For example, nearly twice as many single detached homes were started in Airdrie in July this year compared to last year. However, the total number of starts for all dwelling types in July of both years was virtually identical (78 versus 75). If you look at the year-to-date numbers, though, you can see that total 2016 numbers fall far behind the pace set last year. Cochrane and Red Deer numbers show the same thing, a good July this year, but overall a huge drop off from 2015’s year-todate numbers. Moving to Chart B, these smaller towns are tracked on a quarterly basis by CMHC. Okotoks, by far the fastest growing of the three, has seen single detached starts drop by nearly 50 per cent in both the first and second quarter of 2016 compared to last year and by 40 per cent year-to-date. East on the Trans Canada, Strathmore has yet to really feel the impact of the economic downturn, at least as far as new home starts go. It’s actually a statistical anomaly in that housing starts are up (yes, up) from 2015, just about across the board. Single detached starts are up, semi-detached are up, and even apartment starts have seen a significant lift
»
OCTOBER 2016 SERVICE & SUPPLIER SHOWCASE
| 11
Market Overview
Chart B
Housing Starts
by dwelling type by quarter
Q1 2016
Q1 2015
Q2 2016
Q2 2015
YTD 2016
YTD 2015
OKOTOKS Single detached 32 58 27 55 59 113 Semi-detached 8 0 2 0 10 0 Row 0 0 0 0 0 0 Apartment 0 0 0 0 0 0 All 40 58 29 55 69 113
STRATHMORE Single detached 21 8 10 19 31 27 Semi-detached 28 6 0 6 28 12 Row 0 8 0 6 0 14 Apartment 0 0 16 5 16 5 All 49 22 26 36 75 58
CANMORE Single detached 0 0 3 1 3 1 Semi-detached 2 0 2 2 4 2 Row 12 22 19 7 31 29 Apartment 0 14 0 18 0 32 All 14 36 24 28 38 64
from 2015 totals. When you add it all up, total starts are up in Strathmore by nearly 30 per cent. Granted the totals are much lower than Okotoks or Cochrane, but when it comes right down to it, in these market conditions, up is still up. The final segment of Chart B looks at Canmore, which is not quite like some of the other communities in that it’s really not a place where people live and commute into Calgary. It’s more of a place where people live and work both, or maybe have a retirement or vacation property. In fact, if you look closely at the numbers and read between the lines, you see not just that 2016 totals are down, but that most of the new construction is in multi-family units — likely vacation condos. But here’s where Twain was getting close with his comments, as you can’t just look at the numbers and assume 2015 was way better for starts than this year. In fact, 2016 numbers were ahead of last year’s pace if you back out the single
12 | SERVICE & SUPPLIER SHOWCASE OCTOBER 2016
apartment condo project in 2015 that accounted for 32 units started. In a small market, with hardly any single detached action, one condo project can skew the results quite a bit. Moving on to the Calgary market, we’ve all heard the rumours of a housing slow down, due to factors like the economy, but also the looming shortage of available serviced lots, particularly in some of the more popular parts of town. In fact, that’s the key: you can’t look at Calgary as a whole because different areas seem to have their own lifecycles. Obviously, there’s going to be more single detached home construction activity in the suburbs, while some high-rise condos in the beltline and downtown have the potential to put up some big numbers — and the statistics fully support that assumption. In fact, both multi-family categories showed increases over 2015 totals. Out in the burbs, however, it’s a different story. Every survey zone other than the northeast saw a decrease in starts year-todate and, with rare exceptions, the drop was felt across the board in all dwelling categories. That being said, the total number of actual starts in the northwest and southeast zones were still more than in the northeast. It’s kind of like when you vote for the ‘most improved’ player on a team; they might be the most improved, but that’s because they had the most room for improvement in the first place. ♦
Chart C
Calgary housing starts by dwelling type by survey zone
JULY 2016
JULY 2015
2016 YTD
2015 YTD
BELTLINE Single detached 1 0 3 1 Semi-detached 0 0 0 0 Row 0 0 0 6 Apartment 332 0 392 322 All 333 0 395 329
CHINOOK Single detached 3 Semi-detached 0 Row 0 Apartment 0 All 3
4 7 9 2 4 12 0 4 25 0 0 49 6 15 95
DOWNTOWN Single detached 0 1 2 2 Semi-detached 0 0 0 0 Row 0 0 7 4 Apartment 289 6 466 430 All 289 7 475 436
FISH CREEK Single detached 26 Semi-detached 10 Row 0 Apartment 0 All 36
37 163 230 8 48 42 33 58 105 238 158 512 316 427 889
NORTH HILL Single detached 6 Semi-detached 0 Row 0 Apartment 0 All 6
7 25 39 8 20 32 0 19 36 0 92 358 15 156 465
NORTHEAST Single detached 44 13 298 98 Semi-detached 6 0 58 40 Row 0 0 40 104 Apartment 4 0 287 240 All 54 13 683 482
NORTHWEST Single detached 69 73 358 544 Semi-detached 10 8 44 116 Row 23 4 162 270 Apartment 8 26 259 180 All 110 111 823 1,110
SOUTHEAST Single detached 58 Semi-detached 10 Row 7 Apartment 0 All 75
71 8 0 0 79
363 588 108 82 104 153 289 471 864 1,294
SOUTHWEST Single detached 12 Semi-detached 8 Row 6 Apartment 4 All 30
24 68 135 18 36 130 15 22 66 3 88 199 60 214 530 OCTOBER 2016 SERVICE & SUPPLIER SHOWCASE
| 13
Laugh Out Loud
What did one two-by-four say to the other? “Hey, stud.” b What did the new home say to their lawyer? “I was framed!” b What did the window frame say to the window? “You’re a real pane in my glass.” b What did the lightbulb say to the switch? “You’re turning me on.” b Never hire an electrician named Sparky. b The homeowner was delighted with the way the contractor had done all the work on his house. “You did a great job,” he said, “here’s an extra $100 to take the Mrs. out to dinner and a movie.” That night, the doorbell rings and it’s the contractor. “Did you forget something?” asks the homeowner. “Nope,” says the contractor. “I’m here to pick up your Mrs.” b A pair of tradesmen walk into a bar and order drinks. “One screwdriver please,” says the first. “Coming right up,” says the bartender, “you must be an electrician.” “Sure am,” replies the man, impressed by the bartender’s powers of observation. So the second man steps up. “One rusty nail please.” “Oh,” says the bartender, “you must be a carpenter.” The next guy walks in and asks for a glass of wine. The bartender looks at the other two customers and says, “lawyer.” b How many NDPers does it take to change a lightbulb? Three. One to change the bulb. One to blame the PCs. And one to figure out how to tax it.
Got a good housing industry or construction-related joke or story to tell? Email it to us at jim.zang@sourcemediagroup.ca
14 | SUPPLIER & SERVICES SHOWCASE OCTOBER 2016
OCTOBER 2016 SERVICE & SUPPLIER SHOWCASE
| 15
16 | SERVICE & SUPPLIER SHOWCASE OCTOBER 2016