January/February 2008
Builder Profile: Pawlak Construction Capitol Perspective: Wisconsin in a League of Its Own
Route to: q President q Purchasing q Sales/Mktg. q Superintendent
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Wisconsin Badger Builder • January/February 2008 • www.wisbuild.org
January/February 2008 Volume 25 • Issue 1
features Honoring Marv.................................................................... 6 The WBA remembers Hall of Fame member Marv Schuette of Wausau Homes, who passed away on Sept. 14, 2007.
Capitol Perspective............................................................ 11 Senator Dan Kapanke describes how Wisconsin sets itself apart from national trends.
Builder Profile.................................................................... 13 Dennis Pawlak of Pawlak Construction builds for the love of the trade.
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departments President’s Perspective................................................................................. 4 Recruitment Efforts Benefit Everyone Executive Viewpoint...................................................................................... 5 Never Underestimate the Role of the EO Government Affairs..................................................................................... 10 Session 2007-2008 Final Push Member Advantage..................................................................................... 12 Voluntary Payroll Deduction Programs: A Win-Win Situation for Employers and Their Employees Local Happenings........................................................................................ 16 Photos and details of WBA local association events around the state. News & Events.............................................................................................. 17
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Wisconsin Badger Builder, (ISSN 004-232) is a bi-monthly publication of the Wisconsin shelter industry. It is the official publication of the Wisconsin Builders Association® (WBA) and is published by WBA, 4868 High Crossing Blvd., Madison, WI 53704. Periodicals postage paid at Madison, WI 53701 and additional mailing offices. All advertising is subject to acceptance by the Wisconsin Badger Builder editorial review committee. The publication of any advertisement is not to be construed as an endorsement of the product or service offered. The contents of all material available in this publication are copyrighted by WBA unless otherwise indicated. All rights are reserved by WBA, and content may not be reproduced, disseminated, published or transferred in any form or by any means except with the prior written permission of the Wisconsin Builders Association®. POSTMASTER: Send address changes to Wisconsin Badger Builder, 4868 High Crossing Blvd., Madison, WI 53704. SUBSCRIPTIONS: Subscriptions available through membership in the Wisconsin Builders Association®.
Wisconsin Badger Builder • January/February 2008 • www.wisbuild.org
WBA Seniors Officers President: Mark Etrheim mark@mchlax.com President-Elect: Jason Steen jason@steenconstruction.com
Recruitment Efforts Benefit Everyone
Treasurer: Doug Scott amwood1@ticon.net
President’s
Secretary: Jim “KUBA” Kubasta TeamKuba@sbcglobal.net Associate Vice President: Kevin Pitts kpitts@wpsr.com Past President: Frank Madden mdproperties@aol.com Associate Advisor to the Senior Officers: Greg Schaffer greg.schaffer@americantv.com
WBA Staff 4868 High Crossing Blvd., Madison, WI 53704 • (888) 285-9066 Executive Vice President: Bill Wendle, Ext. 11 - bwendle@wisbuild.org Director of Government Affairs: Brad Boycks, Ext. 16 - bboycks@wisbuild.org Director of Political Affairs: Kate Levanetz, Ext. 15 - klevanetz@wisbuild.org Administrative Assistant: Kimberly Fay, Ext. 10 - kfay@wisbuild.org Director of Accounting Services: Kathy Johnsen, Ext. 12 - kjohnsen@wisbuild.org Accounting Assistant: Mark Nelson, Ext. 25 - mnelson@wisbuild.org Director of Development Council: Pat Stevens, Ext. 22 - pstevens@wisbuild.org Director of Communications: Michael Cline, Ext. 19 mcline@wisbuild.org Director of Safety and Education: Cindi Gruebling, Ext. 18 - cgruebling@wisbuild.org Director of Membership Services: Jane Witt, Ext. 17 - jwitt@wisbuild.org
WBA Insurance Services Agency Manager: Karl Johnson, Ext. 23 - kjohnson@wisbuild.org Sales & Service Associate: Megan Taylor, Ext. 24 - mtaylor@wisbuild.org
Editor......................................................... Michael Cline
Supervising Editor.............................Jennifer McDermitt Graphic Designer..............................Michele L. Peterson Publication Coordinator.................................John Bitters Proofreader..................................................... Stacey Rex Advertising Sales Manager.............................Brenda Poe Advertising Sales............................................Jeff Pinwar (800) 935-1592, ext. 118
perspective By Mark Etrheim, 2007 WBA President ’m amazed at how quickly a year goes by as president of the Wisconsin Builders Association. It’s been an exciting year of progress as we battled rules and budgets at the state capital and worked tirelessly to keep WBA the strongest voice for home builders and the associated businesses in Wisconsin. Of all the projects we completed this year, I am most impressed by our ability to expand our membership even during a slowdown in construction activity. In October, we performed another Oliver Group miracle by gaining 454 new WBA members during just a two-day effort. The Oliver Group consultants have proven again that they can help us exceed our membership goals in a manner that we could not do on our own. They infuse enthusiasm, friendly competition and motivation from an “outsider’s” perspective. Their fresh faces arriving on the scene instill a sense of new possibilities in each and every participant who steps up to the challenge of gathering fellow builders and industry professionals to join the WBA voice. What’s even more astounding about October’s Oliver Group effort is that only two of WBA’s 24 locals participated. The Oliver Group makes it easy for a local to dramatically increase their membership in a short burst of effort. In the end, we all win because WBA is involving more of the professionals who are already benefiting from our work. And with more members comes more resources for WBA to continue its work toward keeping rules and laws from infringing on our businesses. Each local has a wonderful opportunity to fulfill membership recruitment needs every year with the Oliver Group’s help. May 2008 will be the next membership drive. The importance of everyone’s involvement with membership recruitment is huge for two reasons. First, with more people helping, it lightens the burden on everyone. It’s the old association proverb:
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Wisconsin Badger Builder • January/February 2008 • www.wisbuild.org
“Doubling our membership is as simple as each of us finding one new member each year.” How hard could that be? Second, members ARE the association. Without members, there is no association staff to testify at local and state legislative hearings on behalf of our industry. Without members, we have no common voice representing our industry to the consumers and the decision makers. I sincerely hope that most of WBA’s 24 locals will participate in the 2008 Oliver Group drive. In the association world, membership recruiting is not optional. It’s required for any organization to remain in business-helping industries like ours. What is optional are the tools you use to recruit members. The Oliver Group’s toolset is finely tuned to make membership recruiting easy (and between you and me, they make it fun). All locals should join the Oliver Group effort in May so you don’t have to devote precious time crafting your own membership recruiting tools. This past year as president of our association has opened my eyes to many new perspectives of our industry and the value of WBA. In so many ways our industry needs an association like WBA, yet WBA needs the professionals like you and me to keep the organization thriving. Together we all have to commit to involving new members to follow the ranks of the builders before them who kept our industry strong by joining WBA and keeping the voice of builders clearly heard throughout the great state of Wisconsin. We have an unusual number of highly qualified individuals who are willing to sacrifice a huge amount of time to make the decisions necessary to keep us heading in the right direction. Where else can you buy the talents of 11 staff working full-time on your behalf for $150 a year? Thank you for allowing me to serve as your state president this year. It has been a real learning experience. Do the right thing. X
Never Underestimate the Role of the EO Executive
Viewpoint By Bill Wendle, WBA Executive Vice President ’m pleased to see news that our state-wide network has expanded now. Our 25th local has received its NAHB Charter, and we look forward to welcoming the charter members to the WBA team. The South Western Wisconsin Home Builders Association (SWWHBA) received its NAHB charter on Oct. 25. The new local will soon be represented at our quarterly board meetings. Currently, the local’s primary founder and president, Ron Starmer, will act as the “point man” for the local. Soon I expect SWWHBA to seek a dedicated staff to maintain the organization’s growth, which is so important in a local’s formation. Without question, the most important decision a growing local can make is hiring an executive officer to execute membership recruitment and to motivate the members to become involved in the local’s decisions and to participate in WBA board meetings. These two goals should be the primary goals of any new executive officer who takes the helm of a growing local. EOs know that without membership growth, a local cannot expand its services for members. This is in addition to establishing a strong base of leadership at the state level when WBA convenes the board of directors to determine WBA’s course of action on countless issues. All of the executive officers throughout our network of locals are in a unique position. They represent their members from their local; EOs also represent WBA and are the main conduit for state information to be passed along to their members. Likewise, the EOs are WBA’s best resource to “feel the pulse” of the members. All EOs throughout the state hold a seat on the WBA Executive Officers Council (EOC). This council
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Every local is different in size, available resources, specific needs and challenges. While WBA and fellow EOs can provide insight to address challenges, it is also very important to respectfully allow an organization’s leadership to remain closely involved with their EO to identify and overcome their own challenges.
convenes at each board of directors meeting to discuss common challenges and identify solutions. Periodically, the EOC will meet exclusively with the WBA Senior Officers to examine ways WBA and the locals can improve our inter-related operations. Every local is different in size, available resources, specific needs and challenges. While WBA and fellow EOs can provide insight to address challenges, it is also very important to respectfully allow an organization’s leadership to remain closely involved with their EO to identify and overcome
their own challenges. It’s essential for organization leaders and their EO to remain in “lock-step” with each other’s vision and priorities. A growing local will undoubtedly place priority on expanding membership. Yet a well-established organization may need to emphasize retaining members through expanded services. Perhaps other mid-sized locals will split the priority between getting more members involved with leadership and gaining new members. This process of setting priorities needs to come from the local’s leadership in order to provide the EO with a clear plan to follow. As a professional, your EO is empowered to balance all of the organization’s priorities so that growth and retention isn’t short-changed by too much emphasis on advocacy. WBA will soon be re-examining its priorities in the strategic plan. If locals perform the same exercise of identifying and prioritizing issues and goals, then each local can better assist in developing the WBA plan so it reflects common issues and goals throughout the state. This year holds unlimited possibilities for WBA and your local association. As our industry anxiously works through the ups and downs of a variety of economic factors, we CAN influence how we, as a group, leap into the new year with new goals, new issues and new enthusiasm toward promoting and preserving the American Dream. X
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Honoring
Marv
Wisconsin Builders Association Remembers Hall of Fame Member Marv Schuette of Wausau Homes
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Marv Schuette
ausau Homes lost its leader and the Wisconsin building industry lost one of its greats when Marvin C. Schuette passed away peacefully on Sept. 14, 2007. “Marv’s influence on the home building industry is shown not only locally, but also on the state and national scene,” said Shirley Kruesel, executive officer of the Wausau Area Builders Association. “He never forgot his humble beginnings in business and always shared his ‘hard work and work smart’ ethic. Most of all, Marv strongly believed in the importance of education to learn and be an innovator in providing affordable housing.”
Tragedy Brings a Family Together Schuette was born Oct. 27, 1931, on a dairy farm in Marathon, Wisc., joining older siblings Earl, Clifford and Myra (Tootie). After the sudden death of their father, August, in a cheese factory accident, their mother, Elizabeth, was left with the daunting task of being a single parent during the Great Depression. Fortunately for her, Earl and Cliff had ideas of their own. Their milk routes were done by noon, so the boys hauled lumber and pulp for paper companies. They convinced their mother to invest her insurance funds, under tough terms, to start a saw mill.
A lumberyard soon followed, and Schuette set out to be the first in his family to earn a college degree. After graduating from the University of Wisconsin-Madison with a BA in economics, Schuette joined his brothers and brother-in-law Jack Peterson in the expanding family business. A turning point in Schuette’s life occurred when he married Wausau High English teacher Ruth (Rudie) Janick from Crivitz, Wisc. They had three children: Tom, Sara and Jay. Rudie raised the children while Schuette was raising sales for a growing Wausau Homes. By 1972, Wausau Homes was producing 2,000 homes a year with a 2,000 home backlog and the original plant on Cherry Street in Wausau was “maxed out.” In 1975, a new state-of-the-art, 330,000-square-foot factory opened on 80 acres in Rothschild. The plant was designed to produce 4,000 homes a year.
Weathering the 1970s’ Economic Storm
The Schuette family: (L to R) Tom, Ruth, Marv, Sara and Jay.
Wisconsin Badger Builder • January/February 2008 • www.wisbuild.org
In 1978, Schuette bought out his brother’s interest just in time for the worst housing recession in history. With high inflation and higher interest rates, Schuette and Ruth had everything on the line. Soon, Schuette acquired Sterling Building Systems and began WH Transportation. He kept the bankers from First Wisconsin at bay, assuring them no one else could pull Wausau Homes from the brink. During these tough days, Schuette never wavered in confidence that Wausau Homes would return to a profitable company. When the economy turned around, Wausau Homes was restructured and poised
for a comeback. Despite sizable debt, Schuette invested in computer technology, integrating architectural engineering, pricing, manufacturing and field assembly.
Leaving a Legacy Today, Wausau Homes and its affiliates have eight plants in Wisconsin, Illinois, Iowa, Ohio (two), Virginia, Georgia and Tennessee, servicing a network of 700 builders. Schuette was thrilled to see original builders pass their own businesses to second generations. He encouraged and assisted employees to enter into business for themselves. “Oftentimes, Schuette believed in people more than they believed in themselves,” said Schuette’s son Tom. “He gave them amazing opportunities, and took great pride and joy in seeing them accomplish more than they dreamed possible of themselves.” As the business expanded, Schuette’s family also began to expand. His son Tom married Connie Riiser. They have a daughter, Lauren, and live in Wausau. Daughter Sara married Steve Friedle. They reside in Wheaton, Ill. and have three children: Ellen, Hannah and Nate. Jay married Gretchen Glader, and they live in Sugar Grove, Ill. They also have three children: Ann, Sam and Joe. Schuette had the same zeal in teaching life lessons to his grandchildren as to his managers. “Marv lived to work,” said Tom. “When I started working for him fulltime, we agreed that I would call him Marv during work situations and Dad during non-work situations.” Tom says that because there were so few non-work situations, even during holidays, he ended up just calling him Marv all the time.
Marv wasn’t just my dad; he was one of the most passionate businessmen I’ve ever known. He had a deep interest and desire in seeing people succeed, whether they were Wausau Homes builders, employees, vendors or someone he chanced to meet. — Tom Schuette “That was okay, because being a dedicated businessman was what he was all about,” said Tom.
Recognition for a Great Man Schuette received many accolades over the years and proudly displayed them when it highlighted his companies. However, Schuette was modest about bringing any attention to himself and would make personal contributions under the auspices of “the employees of Wausau Homes.” “With his ‘never quit’ attitude, his business flourished,” said Kruesel. “Because of his success, the Wausau area has been blessed with his family’s generosity in supporting scholarships and providing building materials to both area high schools
and Northcentral Technical College.” Kruesel says Schuette was also a strong supporter of the Boy and Girl Scouts and many other community organizations. Here are recognitions of his efforts and contributions: • President National Association of Building Manufacturers • Automated Builder James R. Price trophy • Achievement in Housing Award, 1990 • Wisconsin Builders Association Builder of the Year, 1997 • Wisconsin Builders Association Hall of Fame • Wausau Homes Scout Center • Girl Scouts of America Thanks Badge • Lion’s Camp for the Blind • Salvation Army • Special Olympics • Children’s Hospital of Wisconsin • Hot Air Balloons at St. Clare’s Medical Center • Stanton W. Mead Wildlife Education and Wildlife Center • Humane Society, Marathon County • Habitat for Humanity • Area Public High Schools • Rothschild Pavilion • Junior Achievement Award for Outstanding Support of Youth, 2004 • Junior Achievement Gold Leadership Award, 2007 • “Soar with the Eagles” oil painting presented by Wausau Homes builders celebrating 30 years of leadership • “Eagles Dare to Win” bronze presented by Wausau Homes employees recognizing 40 years of business Continued on page 8
Wisconsin Badger Builder • January/February 2008 • www.wisbuild.org
Honoring Marv Continued from page 7
Passing of the Torch In the last year, as Schuette’s health was declining, he was dismayed but not surprised to see the present housing recession. Predictably, Schuette was working every day, doing all that was possible to weather yet another storm and come out on top, poised for another opportunity. By sheer will and determination, he lived longer than expected. Schuette celebrated his 75th birthday last October among family and friends. Schuette worked the day before he died, fulfilling his children’s prophecy that
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their father would “die in the saddle with his boots on.� “Marv wasn’t just my dad; he was one of the most passionate businessmen I’ve ever known,� said Tom. “He had a deep interest and desire in seeing people succeed, whether they were Wausau
Homes builders, employees, vendors or someone he chanced to meet.” Wausau Homes/Sterling Building Systems is continuing under family ownership and leadership. Co-leading the company are brothers Tom and Jay Schuette, who have unique strengths that complement each other well. Tom is responsible for leading the company in operations and technology, while Jay’s focus is sales and marketing. Tom said, “Wausau Homes will continue to provide builders with the marketing tools they need to succeed in today’s competitive housing market.” Kruesel said, “Many of WABA’s builders got their start working for Mr. Schuette. His leadership will have an imprint on the Wausau Area forever.” X
Insurance Coverage for the Residential Building Industry
Continental Western Group and Reynolds & Reynolds join forces to offer WBA members a GROUP DIVIDEND PROPERTY & CASUALTY
Insurance Program, including: • General Liability • Builders Risk • Tools & Equipment • Workers Compensation • Business Auto • Property Insurance
CWG agents throughout Wisconsin can offer WBA members industry specific coverage. Independent agents not representing CWG can access this program through Reynolds & Reynolds. Contact your local Continental Western Agent or Reynolds & Reynolds at (800) 767-1724.
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Wisconsin Badger Builder • January/February 2008 • www.wisbuild.org
Session 2007-2008 Final Push Government
Affairs By Brad Boycks, Director of Government Affairs ith the passage of the state budget and final action on the provision dealing with automatic sprinkler systems in multifamily units having been dealt with by the legislature, our attention now turns to a number of equally important provisions we are tracking before the end of session. You see, the 2007-2008 legislative session for Wisconsin state government is set to end on May 8, 2008. Now is the time of year when groups such as WBA take another hard look at the items they are trying pass and those they are trying to defeat before legislators depart Madison to hit the streets campaigning for re-election. On Feb. 26, 2008, WBA members from across the state will be meeting in Madison to participate in Business Day in Madison 2008. This annual event is an opportunity to come to Madison and help WBA fight for the remaining items on our legislative agenda through grassroots lobbying. We are looking at the following items to be a part of our lobbying efforts during Business Day in Madison 2008.
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Impact Fees We have been working hard in 2007 on this follow-up legislation from the bills we passed last session on impact fees. This bill makes some changes to the time period when impact fees can be collected and puts restrictions on fees charged for professional services dealing with the dedication of storm water facilities. This bill awaits passage by the state senate and hopefully will receive the signature of Governor Doyle to become law. 10
Now is the time of year when groups such as WBA take another hard look at the items they are trying pass and those they are trying to defeat before legislators depart Madison to hit the streets campaigning for re-election.
Charter Towns WBA continues to oppose the charter towns legislation because, if passed, it would completely change the process by which cities and villages grow. This legislative change would give certain towns significant legal clout to block annexations without requiring those towns to accommodate the growth served by that annexation.
Town Growth While WBA is in opposition to the Charter Towns legislation, we do favor giving towns more tools to accommodate growth in both residential and commercial building. WBA continues to talk with members of the legislature on a comprehensive package of incentives for towns to accommodate additional growth and tax base.
Appointment of DNR Secretary by the Natural Resources Board WBA continues to oppose the three bills that are currently before the legislature that would give the Natural Resources Board the power to appoint the DNR secretary. WBA feels that Wisconsin’s governor, regardless of political party,
Wisconsin Badger Builder • January/February 2008 • www.wisbuild.org
needs to have the ability to appoint their own DNR secretary and be able to hold them accountable for their actions.
Creation of a Bill to Provide Tax Credits for Using EnergyEfficient Materials in Building WBA has created a subcommittee to examine ways the state government can encourage the purchase and use of more energy-efficient household items to promote a “greener” lifestyle. This may be a project that is not complete and ready for introduction until next session, but this is an important topic warranting examination now.
Looking ahead These are some of the major issues we are working on as the 2007-2008 legislative session soon comes to a close. There are a number of other issues that we are tracking and working hard to pass or make sure do not become law before session’s end. I would encourage all of you to contact your local association to attend the 2008 Business Day in Madison on Feb. 26, 2008, and help us work toward a successful end of this session. X
Wisconsin Sets Itself Apart From National Trends
Capitol Perspectives is a regular feature for Badger Builder. In this space, a Wisconsin legislator will provide perspective on an issue. Each guest columnist is offered the opportunity to select their primary issue of concern and present their views independent from any guidelines imposed by the Wisconsin Builders AssociationÂŽ. The views expressed by the columnist are solely their opinion and do not necessarily reflect the views of the WBA, NAHB, the locals, or the members. The Badger Builder editorial department welcomes reader feedback to the issues featured in this section in the spirit of promoting continued discussion on the important issues affecting our daily lives. To submit comments, please send them to Badger Builder Editor Michael Cline, mcline@wisbuild.org. Only comments in writing will be considered for reprint.
Capitol
perspective by Senator Dan Kapanke e have all heard the gloomy reports from across the nation: The housing industry is experiencing a steep downturn. Every morning, the national news stations feature an economic analyst telling us what a bad time it is to sell a home, and how we can expect many years of this.
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We’ve got low mortgage rates and stable employment, something Wisconsin can boast across the state. Clearly, our state and our builders have somewhat insulated us from the burst of the housing bubble.
What a pleasant surprise it was for me, then, to open the Milwaukee Journal Sentinel on Saturday, Nov. 3, to see how Wisconsin home builders are doing their best to keep Wisconsin out of the national trend. (“For some, now’s the time,� MJS, 11/3.) The article told the story of families across Southeast Wisconsin that bought and sold homes against advice from the analysts in New York and succeeded — largely because of the builders they had helping them. This report simply reaffirmed what I already knew to be true: Wisconsin builders make the difference. Instead of
leaving homeowners out to dry, builders in Wisconsin are assisting them, helping them not only get into their new homes, but also to sell their previous homes. This isn’t to say that the housing market is entirely secure in Wisconsin. But I sincerely believe that while the rest of the nation sees drastic changes in their housing industries, our people will be making the difference in our communities. Because in Wisconsin, we had good people making sound decisions, our market never got wildly out of control and will not experience the drastic effects other states are going to see. For example, in my home district, the La Crosse area, permits for new, singlefamily homes this year are only down 14 percent since last year, and we still have two months to go. In comparison, across the nation, other areas are seeing permits down 30-45 percent since last year. We’ve got low mortgage rates and stable employment, something Wisconsin can boast across the state. Clearly, our state and our builders have somewhat insulated us from the burst of the housing bubble. In addition, our more stable housing market will attract new residents to Wisconsin, and encourage our current citizenry to stay here, which is fantastic news across the board. With stable housing and a stable population, businesses in Wisconsin will continue to thrive, leading to even more economic development and prosperity across the state. Ultimately, Wisconsin’s builders deserve a great deal of gratitude for their efforts to keep our economy going strong. I’m thrilled to see our state once again setting itself apart and bucking national trends in this regard. There are certainly things we in the State Legislature can do to improve the overall business climate in Wisconsin. For example, we can work to cut down on bureaucratic red tape, over-regulation, and
Wisconsin’s tax burden. I look forward to working together to achieve our common goal of putting more people in new homes in Wisconsin. X
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Wisconsin Badger Builder • January/February 2008 • www.wisbuild.org
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Voluntary Payroll Deduction Programs: A Win-Win Situation for Employers and Their Employees Member
Advantage By Karl Johnson, WBA Insurance Services f you’re an employer, did you know you pay your employees, on average, an extra $7.39 an hour? According to the Department of Labor, that’s the average cost of employee benefits. These benefits include everything from group life and health coverage to annual bonuses, pension and profit-sharing plans, tuition reimbursement, paid vacation, holidays, medical leave — even free parking. Providing employees with these perks is like giving them a “second paycheck” for each actual paycheck they receive. Unfortunately, that “second paycheck” goes unnoticed by most employees. Employers may be paying more and more each year, but the real value of those payments is not perceived by employees. Little wonder then, that employers are increasingly looking for ways to cut benefit costs. But there’s a slippery slope here: Employers still need to attract and retain valuable employees, and a good benefits package is key to that aim. That is why Voluntary Payroll Deduction (VPD) programs are rapidly gaining in popularity among business owners. These programs — which enable employees to purchase individual life insurance through the convenience of payroll deduction — are helping employers supplement their benefit packages with no direct out-of-pocket cost to themselves except the cost of administration. Since the coverage offered under these plans is individual-employee-owned, it is also individual-employee-paid. Employers simply apply the administrative procedures they’re already using for other payroll deductions to enable their employees to create a disciplined, relatively painless insurance protection program. VPD programs can provide real value to employees for a number of reasons:
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According to the most recent research from the Life Insurance Marketing Research Association (LIMRA), only 36 percent of workers had a life insurance policy through their employer, and while 60 percent of people have some coverage in total, face amounts — and, therefore, insurance protection — had declined.
in total, face amounts — and, therefore, insurance protection — had declined.1 Additionally, many insureds have no dependent coverage, and 80 percent of employees can be expected to outlive the group term life insurance offered by their employers. The security of a life insurance policy that offers the opportunity for cash value accumulation can be the perfect solution for many of today’s workers. • Policies purchased under a VPD program are portable. Employees own their own policies and can take the coverage with them if they leave their jobs for any reason. Of course, this is also true of any life coverage purchased through the plan on spouses, children and grandchildren.
• All employees can participate. Unlike many individual life insurance plans, VPD programs often have fairly simplified underwriting requirements. As a result, they are offered to all active employees equally and voluntarily chosen or declined. The opportunity to apply for insurance is open to all, and the decision to apply is made individually by employees. • Employees like the ease and convenience. The majority of employees view payroll deduction as a good way to obtain insurance. Since they don’t have to write out a check to pay, the buying experience is relatively painless, and because they don’t have to remember to pay, it’s easier as well. • These plans fill a definite need. According to the most recent research from the Life Insurance Marketing Research Association (LIMRA), only 36 percent of workers had a life insurance policy through their employer, and while 60 percent of people have some coverage
For all of these reasons, VPD programs may greatly enhance the morale of employees even when there are few employee benefits. The employer is making insurance coverage conveniently available to employees at a competitive price. So, what’s the catch? Just one: employers should be prepared to allow their employees some small amount of time during the work day to meet with the insurance company’s agents. This demonstrates the employer’s commitment to the program, and gives the agent a chance to explain the features and benefits of the plan. It’s also an opportunity for the agent to explain to the employee how the VPD plan supplements the existing company-provided package of employee benefits — that “hidden paycheck” that is all too real to the employer and all too unknown to the employee. To find out more about offering VPD programs to your employees, please contact the office of WBA Insurance Services: Karl Johnson, agency manager, (888) 678-3015 Ext. 23 or Megan Taylor, sales associate, at Ext. 24. X
LIMRA, Group Life Insurance Annual Review, January 2006.
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Wisconsin Badger Builder • January/February 2008 • www.wisbuild.org
Builder profile
Dennis Pawlak
of Pawlak Construction Builds for the Love of the Trade
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round two o’clock every morning, Dennis Pawlak awakes to the thud of several bundles of newspapers being dropped in his driveway. It means that soon he’ll be out there, folding the Eau Claire Leader Telegram into neat cylinders in preparation for his morning ritual. “My daily routine involves waking my son up at 5 a.m. to get him ready for ‘his’ paper route. But I’ve already got the papers rolled by then. Once he’s up, we hop into the truck and start delivering — they have to be delivered by six. Then I come home, do some paperwork and get to the job site by seven,” said early riser Pawlak, owner of Pawlak Construction. Not one to get much sleep, Pawlak doesn’t mind the schedule. He thinks it is more important to instill a good work ethic in his 13-year-old son, Brendon, than it is to catch a few extra winks. “I told him I’d help him, but now that he’s committed to it, I told him he has to stick with it.” Pawlak is like this — hands-on and involved — with everything he does. “I don’t sleep much, because I’m always thinking about something I want to do or that needs to get done. I worry about things, and I want things to be just right on the homes I’m building,” he said. His company, Pawlak Construction, is a full-service construction company that builds new homes, provides a wide range of remodeling services and specializes in barrier-free housing to customers with physical limitations. Pawlak has also actively volunteered with the Parade of Homes, Home and Garden Committee and church in his community.
If you don’t enjoy your job, you’re missing out. I would recommend to builders who are going through slow times to stay focused, keep your head up, and don’t be ashamed to go work for someone else. Here in Chippewa Valley, we help each other out. — Dennis Pawlak of Pawlak Construction
Second Career Means More He’s been building for a little more than five years, but Pawlak has established himself as a leader and expert in the field. His ability to find niche markets, network with peers and educate himself on the ever-evolving construction world is noteworthy. Pawlak graduated from Memorial High School in 1988 and took several college courses before going to work for a hardware and home improvement chain. He climbed the ladder there, spending 13 years as a merchandiser and buyer. But it wasn’t quite his dream job, even though he did meet his future bride, Jennifer, while working there. “I started doing some building projects while still working my other job. It came down to a decision of choosing one over the other. I chose building,” he said. “I started out building houses with a neighbor of mine. He wanted to start his own company as well, so it worked out perfectly that we teamed up for a couple homes.” Pawlak notes that it was daunting to step away from a six-figure salary to become his own boss in a completely different field. That first year out, his salary was less than $10,000. It didn’t take long, however, until he had surpassed his former job’s income — by a long shot. Continued on page 14
Wisconsin Badger Builder • January/February 2008 • www.wisbuild.org
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Builder Profile Continued from page 13 For the Love of It But that’s not why he does it. Pawlak simply loves building homes — being on the site every day and knowing all the details about each home. “I don’t build spec homes. I like doing custom homes, building them exactly like the client wants. It’s their house, and they can have anything they want,” he said. Pawlak believes in continuing education to keep current on state building laws, local construction ordinances, building trends and methods. He insists that the people who work for him keep current and informed on codes, techniques and good business practices as well. Pawlak is the immediate past president of the Chippewa Valley Home Builders Association. He said the experience was pivotal in opening his eyes to the needs of his fellow builders and the close working relationship with government agencies. “Our builders and developers that provide Chippewa Valley residents with single-family and multi-family housing believe that the requirements are the same whether they are working in Eau Claire or Eagle Point,” he said. “We welcome a working partnership with local government that provides consistency and a clear level of expectation.” Pawlak says he tries to communicate straightforward expectations, thus streamlining the permitting process and minimizing costly delays that contribute to higher cost of housing. “The people in the Chippewa Valley Home Builders Association work extremely hard. They give so much to the community, and often behind the scenes. People don’t see it,” he said.
Accessible Housing Draws Attention Pawlak Construction was recognized by United Cerebral Palsy as the 2004 Business of the Year for work in barrier-free housing. It came on the heels of a job he got quite by accident. A couple from his home town were searching for a builder to help them create a home in which they could live and grow older. Their needs were different than most, however, as both of them were in wheelchairs. By the time they found Pawlak, they had been turned down by a dozen builders. “They asked me if it bothered me that they were in wheelchairs. I said ‘Why? Should it?’ I just saw two nice people who needed help building a house,” said Pawlak. He says the experience was a positive one all the way around, with the couple spending time on the site, sharing their thoughts and needs throughout the design process and, eventually, becoming friends with Dennis and his family. “The satisfaction I felt completing their home was great,” said Pawlak. “Jason and Julie’s home was a challenge for me, but it
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was fun. We were creating something they really needed — the place they would live their lives every single day. They still visit us and we’ve become friends.” The other benefit of doing this niche job was the referrals Pawlak has received. The local newspaper did a large pictorial on the project, which added some great exposure. “It really got our name out there, and I know we’ll be getting future business from it, but I didn’t take the job expecting any of that,” Pawlak said.
Giving Back Is Good For Business Pawlak believes in doing extra work in his community, not only because it’s the right thing to do, but also because of the dual benefits it provides. Philanthropic or donated work, he says, comes back many times over in the form of a positive professional image, trust among clients and many referrals. “It benefits me by positive word of mouth if people see me in the news or papers. And my involvement in the CVHBA lets people know that I was trusted enough to lead the 450 members of the association,” noted Pawlak. In addition to the handicap-accessible homes he builds, Pawlak is passionate about building completely custom homes for his clients in a mid-price range. “Whatever they want, I will do. Right now we are building three to four homes per year ranging from $170,000 to $300,000. That’s a comfortable number for me. I am very hands-on, and I am a builder who actually builds,” he said.
Taking Challenges Head On Pawlak is challenged by the fact that more potential home buyers are seeking bids from numerous builders before making their decisions. He said, “There are a lot more people in the area bidding projects out. Rather than checking with one or two, they’ll ask 10 to 12 builders to bid on a job.” Pawlak says this added competition can create some misinformation on the quality of the project a homeowner may be getting. He feels buyers need to understand that a good quality project may cost $10,000 to $20,000 more, but they have to compare apples to apples. To set his work apart, Pawlak provides potential customers with a list of references and sets up appointments to view homes of past clients. “I let my former and my potential clients talk and share. Seeing is believing,” he said. Pawlak said that when he can, he does work for other builders in the area. His love of working and being in the field leads him to help out on certain jobs, and in turn, his associates in the business have come to his aid on several homes. “I have no problem building for others. I like being in the field doing everything. It makes every day a new challenge. It’s what makes this job fun. “If you don’t enjoy your job, you’re missing out. I would recommend to builders who are going through slow times to stay focused, keep your head up, and don’t be ashamed to go work for someone else. Here in Chippewa Valley, we help each other out,” said Pawlak. Pawlak credits his success to loving what he does. “I’m not above installing a door for a client, or doing a deck or building a garage. I put the same attention to detail on my remodeling jobs that I do on my custom homes. I make sure things are done the right way,” he said. When not on the job, Pawlak enjoys being a co-director of the Eau Claire Soccer Tournament, working with 100-plus teams. His two other children, 9-year-old Kerigan and 5-year-old Ethan, love spending time on the job site with their father. Brendon, on the other hand, would much rather get up at 5 a.m. to deliver papers. X
Wisconsin Badger Builder • January/February 2008 • www.wisbuild.org
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Wisconsin Badger Builder • January/February 2008 • www.wisbuild.org
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Local Happenings
Madison’s Green Built Home Makeover Project Partnering with the WBA Foundation, Madison’s Green Built Home Makeover upgraded a severely deficient home into a model for environmental-friendly homes. A tremendous amount of time and materials were donated by members to make this project a success. Pictured at the kick-off to the Green Built Home Makeover: (Back row) Project Manager Roger Schink (Holley-Schink Design Builders LLC), MABA President Don Esposito (Veridian Homes LLC), Project Manager Abe Degnan (Degnan Design Builders Inc.). (Front row) Dave Borski (Presenting Sponsor MG&E), Hazel Tookes (homeowner).
South Central Helps Form New Local Here’s one of SCWBA’s proudest accomplishments: the new chapter in Green County, South West WI Home Builders Association. This is a picture from their first General Membership Meeting on Oct. 25 at the Heritage House in Monroe. Here are the charter builder members with their president, Ron Starmer, holding the Charter plaque from NAHB. 1st row: Scott Austin (Scott Austin Builders), Dennis Thoman (TC Construction), President Ron Starmer (D-H Builders), Ryan Schutte (S & S Construction), Steve Pink (Steve Pink Woodworking). 2nd Row: Mike Scott (D & M Homes), Thor Thompson (Bruni-Miller Construction), Todd Wedig (Wedig Construction Inc.), Guy Calkins (Guy’s Home Improvement), Dan Henke (D-H Builders), Vice President Jay Pfarr (Home Craft Construction), Jon Pfarr (Home Craft Construction), Shawn Amacher, Troy Ludwig (T Ludwig Construction), Cecil Carl (A 1 Quality Homes LTD).
Wolf River HBA
Brown County’s Veteran EO Brown County Home Builders Association Executive Officer Mari McAllister-Charles celebrates 15 years with the association. Mari was joined by former past presidents of the last 15 years.
WBA Past President Frank Madden of M.D. Custom Homes inducted Randy Bohm of Bohm Builders as our president. Randy is the owner of Bohm Builders, which was established in 1973 and currently has offices in Shawano and Lakewood. Randy was a charter member of WRBA and is co-chair on our membership committee. Also sworn in were our board of directors. WRBA Board of Directors include: President-Elect Gary Felckowski of Gary’s Doors and Service, Treasurer Steve Grover of Kerber, Rose and Associates and Secretary Jill Birr of Ace Hardware, Shawano. Our builder directors are John Maule of Maule Construction LLC, Terry Westphal of Home Tech Builders, Bill Rapaich of Top Shelf Builders and Jim Torborg of Torborg-Shawano. Our associate directors are Jim Foreman of Associated Bank, Mike Lewens of Maverick Graphx, Bryan Gagnon of B&J Custom Graphics, Kathy Hoeft of Quality Images Inc., Cap Wallrich of Wallrich Agency and Tim Coffey of Floors Unlimited.
Leadership a Family Affair at Golden Sands At the Golden Sands HBA Installation and Award Banquet, 2007-08 President Jeff Krupka was sworn in as president by his father and GSHBA Past President John Krupka.
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Wisconsin Badger Builder • January/February 2008 • www.wisbuild.org
Local Association
Be sure to check the schedule of events for your local association.
Parade of Homes
Home Show
Golf Outing
Brown County
Spring ‘08: Mar. 1, 2 and 6-9
Jan. 17-20, 2008
2008 TBD
Central WI
2008 TBD
WI Rapids Home Show: March 8-9, 2008 Marshfield Home Show: TBA
2008 TBD
Chippewa Valley
June 7-15, 2008
Feb. 28 - March 2, 2008
May 12, 2008-Home Builders Invitational; July 10, 2008 Summer Golf Outing
Door County
Showcase of Homes Parade May 8, 9, 16, 17 & 18, 2008
March 28 & 29, Stone Harbor Conference Center
Sept. 2008
Fond du Lac
July 18-27, 2008
March 28-30, 2008
Aug. 1, 2008
Golden Sands
June 6,7,8 & 9, 2008
Feb. 23 & 24, 2008 - Holiday Inn & Convention Center
July 15, 2008
Headwaters
----
----
2008 TBD
Heart of the North
2008 TBD
Feb. 16-17, 2008 - Cameron High
2008 TBD
La Crosse
June 21, 22, 25-29, 2008
March 7-9, 2008
July 16, 2008
Lakeland
July 26-27 & Aug. 2-3
March 29-30, 2008
2008 TBD
Madison
June 7-22
Feb. 29 - March 2,2008
TBD, July 2008
Manitowoc
June 19-22, 2008
March 28-30, 2008
Aug. 6, 2008
Metropolitan
Aug. 16 - Sept. 7
Jan. 10-13
June 16
Mid-Shores
2008 TBD
----
----
Mid-WI
----
Feb. 8-10, 2008
June 2008
Northland
2008 TBD
----
2008 TBD
Racine-Kenosha
Sept. 6,7,10,12,13,14
----
June 12, 2008
Sheboygan Cty
2008 TBD
April 4, 5, 6, 2008
June 18, 2008
South Central WI
2008 TBD
Feb. 15-17, 2008
June 19, 2008
St Croix Valley
Tour of Homes: 2008 TBD
Home & Remodel Show: Jan. 25-27, 2008, Knowles Center, River Falls
2008 TBD
Valley
Jan. 26-27, Jan. 31- Feb 3, 2008; Condos June ‘08; Summer Parade, Aug. ‘08
March 6-9, 2008
June 2008, Aug. 2008
Wausau Area
April 26-27, 2008
June 17-22, 2008
June 27, 2008 (changed from June 20)
Winnebago
Apr. 18-20 & 24-27, 2008
Feb. 8-10, 2008
2008 TBD
Wolf River
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Continued on page 18
Wisconsin Badger Builder • January/February 2008 • www.wisbuild.org
17
Continued from page 17
Local Association
Installation
BBW
General Membership Meeting
Local Board Meeting
Other Events
Education
Brown County
Dec. 7, 2007-KI Conv. 2008 TBD Center, downtown
2nd Tuesday in May/Sept/Oct/Nov
1st Wednesday of each month
Sporting Clays TBD
----
Central WI
Nov. 13, 2007
2008 TBD
TBD
2nd Tuesday
Dec. 2007-Holiday Party
----
Chippewa Valley
2008 TBD
2008 TBD
2nd Tuesday
4th Tuesday
Dec. 7, 2007-Christmas Party at The Plaza; Summer Picnic-TBD
Nov. 13, 2007, at CVHBA Office
Door County
Dec. 13, 2007
----
2nd Thursday
1st Wednesday
Christmas Party: Dec. 13, 2007
----
Fond du Lac
Sept. 17, 2008
2008 TBD
3rd Wednesday No June/July/Aug
1st Tuesday
Clay Shoot-April 26, 2008; Homes of Our Own-April 22-25
Consumer EducationBeaver Dam, Feb. 5,12,19, 26
Golden Sands
2008 TBD
April 15, 2008
3rd Tuesday, No Aug
3rd Tuesday
Dec. 18, 2007-Holiday Party
----
Headwaters
2008 TBD
----
2nd Tues/Wed/Thur; No June/July/Aug
2nd Tues/Wed/Thur; before GMM
Whitetails Unlimited Banquet, 2008 TBD
----
Heart of the North
2008 TBD
----
2nd Thursday
1st Thursday
Christmas Party: Dec. 1, 2007
----
La Crosse
Sept. 16, 2008
2008 TBD
3rd Tuesday; No June/July/Dec 3rd Tuesday
----
Lunch ‘n Learn & Builder Breakfasts: Every month
Lakeland
Dec. 14, 2007
Nov. 1, 2007
3rd Wednesday No June/July/Aug
2nd Wednesday No Aug.
Whitetails Unlimited Banquet, 2008 TBD
Lunch ‘n Learn: Last Tuesday of Month
Madison
TBD, Dec. 2008
TBD
1st Monday of Feb/Apr/May/Sept
3rd Wednesday
Spring Showcase, April 12-13,19-20,26-27; Parade of Condos, July 26-Aug 3
TBD
Manitowoc
Dec. 5, 2007Fox Hills Resort
Aug. 21, 2008
4th Thursday No June/July/Nov/Dec
2nd Thursday
Sporting Clays, Sept. 2008; Bowl-A-Thon, Feb. 2008
Awake to Learn seminars the 2nd Wednesday of each month
Metropolitan
Nov. 2007
----
2008 TBD
2nd Wednesday
----
2008 TBD
Mid-Shores
Dec. 7, 2007-Milhome Dec. 7, 2007Super Club, Install & Live Auction Christmas Party
2nd Tuesday No June/July/Aug
2nd Tuesday
2008 TBD
----
Mid-WI
2008 TBD
TBD
2nd Tuesday; No July/Aug
3rd Tuesday
----
----
Northland
Nov. 7, 2007
2008 TBD
1st Wednesday, 3rd Thursday
3rd Wednesday
Holiday Bash/Silent Auction, Dec. 2008
Monthly
Racine-Kenosha
Dec. 11, 2007Roma Lodge
TBD
3rd Wednesday No June/Dec
1st Wednesday
Spring Tour of Homes with Metro April 19-May 4, 2008
Monthly
Sheboygan Cty
2008 TBD
2008 TBD
3rd Wednesday No June/July/Aug
1st Tuesday No July
----
----
South Central WI
Dec. 11, 2007
Silent Auction Oct. 23, 2007
4th Tuesday of the month, No GMMs in June/July/Aug
2nd Tuesday
2008 TBD
2008 TBD
St Croix Valley
Dec. 18, 2007R&D Banquet Hall, New Richmond
2008 TBD
Last Tuesday No June/Aug/Nov
Monthly, one week prior to GMM
Annual Fishing Tournament: 2008 TBD
Lunch ‘n Learn: Nov. 6
Valley
Sept. 4
No 2007 event; First Tuesday April 2008 No June/July/Aug; Dec. is Holiday Party
Last Tuesday
Holiday Party, Nov. 30, 2007
Various: visit vhba.com for schedule
Wausau Area
Oct. 16, 2008
April 17, 2008
3rd Thursday No Dec/June/July/Aug
3rd Tuesday
----
----
Winnebago
2008 TBD
2008 TBD
2nd Wednesday No June/July/Aug
2nd Wednesday
Whitetails Banquet, Nov. 8, 2007; Holiday Party, Jan. 18, 2008
----
Wolf River
----
----
2nd Tuesday
2nd Tuesday
----
----
18
Wisconsin Badger Builder • January/February 2008 • www.wisbuild.org
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