May.June 2009 Final by Annie Rubens

www.wisbuild.org

May/June 2009

Weathering the

Recession Steps to Promote the Long-Term Health of Your Company

Builder Profile Stebnitz Builders

What is a

Health Savings Account? Delivered to you as a benefit of membership

www.wisbuild.org

features

May/June 2009 Volume 26 • Issue 3

Weathering the Recession.................................................. 8 Laura S. Peck and David M. Pelletier, attorneys with Axley Brynelson LLP, give steps to promote the long-term health of your company.

Capital Corner.................................................................... 11 Senator Dale Schultz-(R) 17th District proves that selling doom and gloom does the Wisconsin economy no good.

Builder Profile.................................................................... 12 Chris Stebnitz of Stebnitz Builders brings “procedural listening” to the table by focusing — really focusing — on what the client is saying.

departments President’s Perspective................................................................................. 3 A Great Offense Government Affairs....................................................................................... 4 A Change of Heart Local Happenings.......................................................................................... 5 Photos and details of WBA local association events around the state. Member Advantage....................................................................................... 6 What is a Health Savings Account?

News & Events.............................................................................................. 15 Mission Statement

A professional trade association, WBA advances the housing industry for members and consumers through government involvement, education and promotion.

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 • May/June 2009 • www.wisbuild.org

Vision Statement

Affordable, innovative and environmentally conscious homes accessible to all.

Motto

“Dedicated to preserving and promoting the American Dream”

Senior Officers 2009 President: Doug Scott, Janesville (South Central WI) President Elect: Jim Kubasta, Oshkosh (Winnebago) Treasurer: Don Esposito, Madison (Madison Area) Secretary: Gary Roehrig, New Holstein (Mid-Shores) Immediate Past President: Jason Steen, Osseo (Chippewa Valley) Associate Vice President: Julie Meyer, Racine (Racine-Kenosha) Associate Advisor to the Senior Officers: John Anderson, Appleton (Winnebago)

Area Vice-Presidents 2009 Southeast Area Mark Benkowski (Metropolitan) Darryl Spang (Racine – Kenosha) Northwest Area Clint Doege (Heart of the North) Monica Sommerfeldt Lewis (Chippewa Valley) Southwest Area Tom Thompson (La Crosse Area) Steve Treu (La Crosse Area) Northeast Area Mark Bootz (Brown Co.) Scott Browne (Brown Co.) South Area Brian McKee (Madison Area) Greg Schaffer (Madison Area) East Central Area Ed Schmidt (Valley) Stan Martenson (Valley) North Area Pam Jewell (Golden Sands) Mike Richie (Wausau Area) East Shore Area Sean Kelly (Mid-Shores) Gary Roehrig (Mid-Shores) State Representative to NAHB Wayne Foster (Metropolitan)

A Great Offense by Doug Scott, WBA President art Starr, Jim Taylor, Paul Horning, “Crazy Legs” Hirsch, Ron Dayne. Many of you have heard these names over the years. These great offensive players in Wisconsin sports are immortalized in our stadiums and will be remembered forever. They helped make their teams successful. Gordon Lenz (Brown Co.), Terry Monson (Madison), Esther Stange (Brown Co.), Harry Macco (Brown Co.), Ralph Kennedy (Valley), Jim Stoller (Manitowoc), Chuck Elliot (Madison) and Leon Church (Valley). What do these names mean to you? Many of you may not be familiar with any of them. Some of you will recognize most of them. A few will know all of them and what they are famous for within the WBA. Each of these individuals has achieved Statesman Spike status of 500 spike credits! One individual, Gordon Lenz, has achieved All-Time Big Spike status of 1,500 spike credits. These individuals are immortalized in WBA history for helping make our association what it is today. Without their effort and passion for our association, we would not have achieved what we have so far. Add to that list recent super stars Tera Snyder and Jon Coty from St. Croix and Mike Worske from Metro who each had over 15 recruits last year! I want to thank all of them for their continued contribution to our association. These individuals, and many others as well, are the heroes in our association. Bringing in new members is essential and provides the strength in numbers that enables us to achieve our present and future goals. Those who make their living in the building industry have the same needs as before the economic decline: fighting legislation, court decisions and politicians who make decisions that hurt our business. The more members we have, the louder our voice. Our offensive team is our spikes. They set the pace and provide the direction for our association. Who are the spikes in your local association? They are the individuals

President’s

perspective

that have helped create your local association. They are your local heroes. You, too, can be a spike. Bring in one member in our membership drive and you become a spike candidate. With six spike credits, you become a Blue Spike! Our Big Hunt Membership Drive is coming up May 6-7, and your local needs your help to make this drive a success. Last year, the WBA had a net loss of 1,146 members. This was a 12.9 percent decline. This varied between an increase of 14.4 percent (yeah Golden Sands!) to a decrease of 25.7 percent (South Central, what happened?) Because I’m from South Central, I know what happened. Our state retention average was 73.5 percent for the year. Again, that varied from 90 percent (yes, Golden Sands) to 63.5 percent (guess). How did your local do, and how do you feel about what your local achieved? It is not news that losses were also sustained nationally as well, as NAHB had a 13.9 percent membership decline and a 68.7 percent retention rate. Thus, I think as a state, while we were a little better than average, we should strive to be much better than average. I think every local should have a goal to increase their membership level this year. Last year we had three locals increase their membership level. I think we could have all 25 locals increase their membership level if each local wanted to achieve this goal. In recognition of achieving this goal this year, Pam Jewell, our membership chairperson, and I will hand out “Membership Award” plaques at next year’s WBA Convention. Locals meeting this goal will receive a plaque with a bronze seal — those exceeding 10 percent will receive one with a silver seal, and those exceeding 20 percent will receive a gold seal. It starts with bringing in new members to our association, and that is the objective of our membership drive. The results are up to you. X

Wisconsin Badger Builder • May/June 2009 • www.wisbuild.org

WBA Staff

4868 High Crossing Blvd., Madison, WI 53704 • (888) 285-9066 Director of Political & Government Affairs, Interim Staff Manager: Brad Boycks, ext. 16 bboycks@wisbuild.org Director of Development Council: Pat Stevens, ext. 22 pstevens@wisbuild.org Director of Membership Services: Jane Witt, ext. 17 - jwitt@wisbuild.org Director of Safety and Education: Cindi Gruebling, ext. 18 cgruebling@wisbuild.org Director of Communications: Annie Rubens, ext. 19 arubens@wisbuild.org Director of Accounting Services: Kathy Johnsen, ext. 12 kjohnsen@wisbuild.org Accounting Assistant: Mark Nelson, ext. 25 mnelson@wisbuild.org Administrative Assistant: Kimberly Fay, ext. 10 kfay@wisbuild.org

WBA Insurance Services Chief Operating Officer: Karl Johnson, ext. 23 kjohnson@wisbuild.org Sales & Service Associate: Megan Taylor, ext. 24 mtaylor@wisbuild.org Editor...............................Annie Rubens

Published by

Publisher............................ Kevin Naughton Supervising Editor............ Jennifer McDermitt Graphic Designer...................... Jason Gabel Advertising Sales Manager........ Brenda Poe Advertising Sales........................Jeff Pinwar

(800) 935-1592, ext. 118 jpinwar@printcomm.com

A Change of Heart Government by Brad Boycks, WBA Director of Political and Government Affairs, Interim WBA Staff Manager or a number of sessions of the Wisconsin legislature, the Wisconsin Builders Association® has been a strong advocate for continuing the current practice of the governor appointing the secretary of the Department of Natural Recourses (DNR). A number of bills and budget provisions have been introduced to allow the DNR secretary to be appointed by the DNR Board as opposed to an appointment of the governor. One word best describes why WBA has had this position now and in past legislative sessions: accountability. WBA believes government must be responsive and accountable to the citizens of this state, and we believe the current cabinet form of government is the model that best accomplishes this important goal. We therefore support allowing the governor to appoint the DNR secretary with the consent of the state senate. By making the position accountable to the oversight of elected officials, it will ensure the decisions of the agency reflect the will of the people and carry out the agenda of the executive office. The governor’s ability to appoint the DNR secretary has served our state well, and we should not give a board that is not directly accountable to the citizens of Wisconsin the right to pick the head of one of the most powerful state agencies in Wisconsin. WBA does not believe there is anything unique about the DNR’s regulatory functions that should preclude the agency’s secretary from being appointed by the governor. As attorney general and as a candidate for governor, Jim Doyle advocated for a change in policy on this matter. Recently in a letter sent to those who had attended the “Conservation Lobby Day,” Governor Doyle announced that he had a change of heart on this issue and that he supports the current practice that WBA has advocated for, continuing the practice of a gubernatorial appointment of the DNR secretary.

Wisconsin Badger Builder • May/June 2009 • www.wisbuild.org

Affairs

We applaud Governor Doyle for his bold change of heart on this issue. Governor Doyle stated in his letter: “Regarding the appointment process for the secretary of the DNR, I have seen the agency function under both systems, and have come to the believe that a secretary appointed by the governor, with the full weight and authority of the governor behind it, can be much more effective.” Later in the letter, Governor Doyle went on to add, “The governor is now held more accountable for environmental policy.” We could not agree more with Governor Doyle’s comments on this issue. Governor Doyle’s recent policy change on this issue is certainly good news, but this debate is likely far from over. The process for reviewing and rewriting the Wisconsin state budget has just begun, and efforts may be made to make this change within the realm of the state budget vetting process. In addition, two pieces of legislation on this topic have been introduced in this session to change the appointment of the DNR secretary to the DNR Board. The fate of these bills remains to be seen in light of Governor Doyle’s recent announcement of his stance on this policy change, but it is expected that the authors of the bills and those groups in support of the change will continue to push for passage of these proposals. WBA member input on this issue will continue to be needed in the weeks and months to come. The appointment of the DNR secretary was a major policy item that members recently lobbied the legislature on during Business Day in Madison 2009, and this could very well still be an issue that is alive when we meet again in 2010. Your grassroots efforts on this and a number of policy items contained in the state budget and bills before the legislature are more important now than ever to ensure wise decisions are made by your elected officials this legislative session. X

Local Happenings

Wolf River BA President Gary Felckowski presents Randy Bohm with the Top Spike Award for WRBA.

Madison Area BA Receiving the posthumous WBA Hall of Fame Award for Jerry Wuebben (Encore Construction) were Jerry’s daughter, Teresa Nichols; sons Eric and Chad Wuebben; and Chad’s wife, Shana and their children, Jake and Hailey.

Mid-Shores HBA At the 10-year anniversary celebration of the local, charter companies were recognized: Alpine Insulation, Christel & Heiberger Builders Inc., Crown Services, CRW Insurance & Financial Services, Gerald Arenz Construction, Hedrich Construction, Jannette Trucking and Excavating, Kiel Building Supply, M & I Bank, Pella Windows & Doors, Premier Financial Credit Union, Roehrig & Savola Builders, Schneider & Schneider Construction, Scott Umland Insurance Services, The Insurance Shoppe, TK Hardwood Floor Co., Tri-County Ready Mix and Whyte Hirschboeck Dudek.

St. Croix Valley HBA Tony Nasvik, 2008 president; Angie Bendt, Wize Dezigns, 2008 Associate of the Year; and Tera Snyder, 2007 Associate of the Year winner.

Brown County HBA BCHBA members generously donated time, labor and materials over the past year to build the Marion House Apartments, a licensed group home for adolescent mothers and their babies. Wisconsin Badger Builder • May/June 2009 • www.wisbuild.org

What is a Health Savings Account? Member by Karl Johnson, COO WBA Insurance Services Health Savings Account (HSA) is a federally approved bank savings account that is to be used exclusively in conjunction with a qualified HSA medical insurance plan to pay medical expenses. It is used for paying qualified medical expenses for yourself, your spouse and your dependents. An eligible individual may open an HSA bank account and make federal pretax deposit contributions into this account for the purpose of making tax-free withdrawals to pay for qualified medical expenses. Consult a licensed professional for tax advice. For a complete list of qualified medical services, consult IRS publication 502, “Medical and Dental Expenses” on the Internal Revenue Service Web site at www.irs.gov. Individuals are responsible for compliance of HSA spending regulations. A few of the advantages of an HSA include: • The account is yours — withdraw money when you need it. • Your HSA account rolls over every year, so you do not lose any of your money if you do not use it! • It can also be used later in life to cover medical expenses, including Medicare Premium Payments. • The total amount of HSA deposits will reduce your overall federal tax liability — you will pay less federal tax because deposits are pre-tax. • Your HSA account can earn interest. Are there any qualifications to opening an Health Savings Account? Yes. In order to open a Health Savings Account (HSA), you must first be covered by an HSA-qualified health insurance plan. The HSA-qualified health insurance plan & the Health Savings Account work together!

Your HSA Account Use your HSA tax-free account to pay your medical expenses. If you use your HSA money for a non-qualified expense — such as a meal, a lamp, a car, a boat, or the like — you can be charged a 10 percent penalty, plus the federal taxes on the money spent on non-qualified medical expenses. After the age of 65, if you use any of your HSA money for non-qualified expenses, you only have to pay the federal income tax on the amount used for that purchase. There is no 10 percent penalty on the non-qualified expense.

IRS Requirements for 2009 Minimum Deductible Maximum Out-of-Pocket Contribution Limit Catch-up Contribution (55 or older*)

Single Plan $1,150 $5,800 $3,000 $1,000

Family Plan $2,300 $11,600 $5,950 $1,000

Wisconsin Badger Builder • May/June 2009 • www.wisbuild.org

Advantage

*If a spouse is also 55 or older, a second HSA may be established and a second catch-up contribution of $1,000 may be made to that account if desired. You cannot be claimed as a dependent on someone else’s tax return. You cannot be enrolled in Medicare. You cannot be covered under another health plan that is not a qualified plan. Your maximum HSA contribution for 2009: $3,000 Single/$5,950 Family (these levels rise each year) The maximum out-of-pocket: $5,800 for Singles, $11,600 for Families There is an optional 2009 catch-up HSA deposit contribution for those 55 years and up of $1,000 for singles and families. This is added to the 2009 maximum annual contribution. How does a HSA-qualified plans work for me? There is only one deductible that has to be met on an HSA-qualified plan, unlike the two or three deductibles that need to be met with many traditional PPO plans. A single person, a couple or each family member pays into that one deductible. Let’s compare how a 100 percent HSA-qualified plan pays medical bills compared to a PPO health plan. PPO plans became popular, in part, because of low co-pays for some medical services. For example, a doctor office visit may only cost $35. Co-pays, however, are not applied to deductibles. Most PPO plans require that the deductible be met two or three times before the co-insurance kicks in and pays out. The most popular HSA-qualified plans have one deductible, and once met, pay 100 percent. This is an aggregate deductible. This means that everyone on the plan pays into that one deductible. The HSA-qualified plan’s deductible only needs to be met once.

Typical PPO Plan

Family of four in a car accident: $2,500 Family Deductible — 80 percent*/60 percent** co-insurance with a $500 pharmacy deductible This plan’s deductible must be met two times before co-insurance begins to pay. The family maximum out-of-pocket is $8,000. Hospital bill: $50,000 Dad Mom Child Child Deductible: $2,500 $2,500 $0 $0 Co-insurance: $2,000 $2,000 $2,000 $2,000 $4,500 $4,500 $2,000 $2, 000 Family Total Cost . . . . . . . . $13,000 plus prescription costs (co-insurance pays 80 percent/20 percent, at a maximum of $2,000 per person) *In-network, **Out of network

Typical HSA Eligible Plan Family of four in a car accident: $6,000 Family Deductible – 100 percent*/70 percent** co-insurance This HSA-qualified plan pays 100 percent after the deductible has been met. Medical bill: $50,000 Dad Mom Child Child Deductible $6,000 $0 $0 $0 Co-insurance $0 $0 $0 $0 Rx $0 $0 $0 $0 Total Family Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,000 Now that the $6,000 family deductible has been met, any additional medical services will be met in accordance with your plan for the balance of the policy year. Bottom line: Total family savings of $7,000 *In-network, **Out of network For more information on HSA plans, please contact Karl Johnson, COO WBA Insurance Services at (888) 678-3015 or by e-mail at kjohnson@wisbuild.org X

Wisconsin Badger Builder • May/June 2009 • www.wisbuild.org

Weathering Recession

the

Steps to Promote the Long-Term Health of Your Company by Laura S. Peck and David M. Pelletier s the present recession and housing downturn deepen with no foreseeable end in sight, it is critical that business owners take all necessary steps to promote the long-term health and viability of their companies. Below are several things you, as a business owner, can be doing now to increase your chances of still being in business when the economy and housing market rebound.

Minimize Expenses With less work coming in, it naturally follows that expenses must decrease. Most of you have already reduced payroll, but the cuts should not stop there. Now is the time to take a hypercritical look at all expenses, and to cut or eliminate those that are not crucial to maintaining your business. Here are some specific considerations and things to look out for: Scrutinize Costs Closely. In good economic times, expenses creep upward. 8

Wisconsin Badger Builder • May/June 2009 • www.wisbuild.org

Phone bills, office expenses and other overhead expenses are not scrutinized and tend to get out of control. Now is the time to take a critical look at all expenses and minimize, minimize, minimize. By splitting large expenses into smaller subgroups, you can better manage where your money is going. Staff. There are other ways to decrease payroll aside from terminating employees. By using temporary employees and outsourcing such tasks as accounting or human resources, you can reduce overall payroll. Additionally, consider cutting salaries and wages, and/or hours. Many of your employees would rather make less than lose their jobs. When it is time to terminate permanent employees, it is important to ensure that you comply with all state and federal laws such as Wisconsin’s Business Closing and Mass Layoff Law, Wis. Stat. § 109.07; the U.S. Department of Labor Worker Adjustment and Retraining Notification Act (WARN); and all equal opportunity laws. Find Deals. Remember, all are struggling in this economy. You can decrease

expenses by finding deals on those items you need to operate your business. Do not be afraid to bargain for a lower price or to seek multiple quotes from suppliers. Renegotiate with trusted vendors. Additionally, be on the lookout for liquidation sales. As your competitors go out of business or declare bankruptcy, you may find that now is a great time to purchase a much needed piece of equipment to help you operate more efficiently. Space. Ask yourself whether you need all of the space you currently rent or own. Consider subletting unused space or, if your lease is up for renewal, consider negotiating for less space or reduced rent. Depending on your circumstances and market, selling your building and renting smaller and/or lower cost space in another market could save you money. Marketing. Conventional wisdom is that businesses should increase their marketing efforts in a down economy. This does not mean that you should or need to increase your marketing budget. Instead, focus on low or no-cost marketing techniques and use this down-time to strengthen your existing customer relationships.

economy slows, businesses begin paying invoices later in order to better protect their own cash positions. Individual customers do this too. Understandably, you do not want to lose work by hounding your customers to pay their bills, but if you want to survive a prolonged recession, you must insist that your customers pay invoices as they become due. Your customers should understand this, as many of them may be in the same situation. Strong cash Continued on page 10

Focus on Cash Flow and Double Your Efforts to Recover Accounts Receivable In a struggling economy, it is even more important that you focus on cash flow, keep a tight control on where your money is going, and redouble your efforts to keep accounts receivable current. Analyze Cash Flow. Not only should you scrutinize your costs as discussed above, but now more than ever it is critical that you understand where your company’s money is going. Until you know what money is coming in and where that money is going, you cannot fully understand whether additional funds are needed and where those funds should come from (i.e. external sources of funding or cash on hand). Collect the Money. One of the primary means of augmenting cash flow is to concentrate the company’s efforts on collecting accounts receivable. As the Wisconsin Badger Builder • May/June 2009 • www.wisbuild.org

weathering the recession

Continued from page 9

flow will enable your company to avoid taking on additional debt. Do no extend too much credit to any customer now, and refuse to extend any additional credit to customers showing an inability or slowness to pay. Establish Good Procedures. Insisting upon payment of invoices in the ordinary course is important for many reasons, not the least of which is that it may help you avoid having to pay those monies back in a bankruptcy proceeding. If your customer declares bankruptcy, a bankruptcy court may later require you to pay back payments made to you in the 90 days before the customer declared bankruptcy. One exception is if the payments were made in the ordinary course of business. This means that if you accepted payment from your customer on net-30 day terms, and the payments sought to be returned to the customer were paid on net-30 day terms, then you should be able to keep those payments. Additionally, you may consider demanding payment at the time an order is placed or delivered. This could also help you avoid having to return payments to the customer who later declares bankruptcy.

Keep Lenders and Creditors Informed

It is essential to your company’s financial health that you work with your lenders and other creditors. Do not bury your head in the sand. Financial institutions have been particularly impacted by the present recession, and the number of foreclosures has reached record highs. However, banks and other creditors would rather not own your company’s property or operate the business. If you find that you can no longer manage the company debt load, you should reach out to the company’s lenders and creditors. Indeed, even if you are able to pay your bills now, you may still want to renegotiate vendor contracts. Remember, they want to keep you as a customer in these tight economic times. Communicate. Lending is a “relationship” business. This is true in bad 10

times as well as good times. It is critical that you are open and honest with the company’s lenders and creditors about the company’s financial position and business plans. They will only work with the company to restructure debt if they believe that you have fully disclosed the company’s financial position. Be prepared. Pull together all of the loan documents or contracts and review them prior to any meeting with the lenders or creditors so that you know what rights your lenders and creditors have against you personally and the company. Be sure you know what you have personally guaranteed and what you have not. Negotiate. You may find that the company’s lender may allow the company to reduce or suspend payments for a short period of time in exchange for additional concessions. This additional time can be used to seek refinancing or alternative sources to pay off the debt. But remember, before you take on additional debt or make concessions, nobody knows how long the recession will last and a limited extension may not give the company enough time to turn around.

Protect Your Own Finances Finally, protect yourself. The credit crunch has led to tightening underwriting. In negotiating with your lenders and creditors, do not put your personal financial health at risk. Keep the following in mind: Keep Separate Companies Separate. Don’t Cross-Collateralize. If you control several related companies, keep the assets and debts of those companies separate. You set up these separate companies for a reason: to protect the assets of one from the failure of another. Avoid commingling funds of these companies, paying the debts of one company from the assets of another. Also avoid cross-collateralizing assets from one company for the debt or another. Otherwise, one failure could turn into two. Protect Your Personal Retirement Assets. Your personal retirement assets are most likely protected from creditors. In fact, even if you personally declared bankruptcy, most retirement assets are

Wisconsin Badger Builder • May/June 2009 • www.wisbuild.org

exempted from recovery by your creditors. Therefore, protect these assets and do not use them to pay off business debts. Avoid Personally Guaranteeing Trade Debt. In a down economy, the company’s suppliers may begin making additional payment demands on you and your company, especially if the company begins falling behind in its payments. However, you should not agree to personally guaranty the company’s trade debt. Trade creditors have many remedies at law to recover delinquent trade debt. Let the trade creditors seek recovery against the company in court. In the meantime, the company may come up with the funds to pay the trade creditor or a compromise may be reached. Payroll Taxes. The company must stay current on its payroll taxes. In the event of non-payment, you may be personally liable. These tips may not be new to you and are by no means exhaustive. In all likelihood, you are probably doing some of these things already. But, reviewing these tips now and keeping them in mind in the coming months may help save your business. Laura S. Peck is an attorney at Axley Brynelson LLP in Madison, Wis., practicing primarily in the areas of real estate and lending law, business law and insurance law. David M. Pelletier is an attorney at Axley Brynelson LLP, practicing primarily in the areas of bankruptcy, insolvency law, creditor’s rights, commercial litigation, foreclosure, Chapter 128 Receiverships and workouts. For more information, contact Peck at (608) 283-6729 or lpeck@axley.com, or contact Pelletier at (608) 260-2495 or dpelletier@axley.com. X

Have You Done a CAPS Project? The next issue will feature CAPS designation. If you’ve done a project that increased accessibility, contact Annie Rubens at WBA (608) 242-5155 ext. 19.

Selling Doom and Gloom Does the Wisconsin Economy No Good Capitol

corner

by Senator Dale Schultz (R) 17th District o industry has been harder hit by the current economic downturn than members of the Wisconsin

MARKETPLACE

Builders Association®. Just talking to builders throughout the 17th senate district in Southwest Wisconsin, I get a very clear sense of the tough economic times. Builders who just a year ago were thriving are now under immense financial pressure. The double whammy of the economic downturn and the tightening of the credit markets has unfortunately pushed some builders out of the business and forced others to lay people off and cancel jobs that had already incurred significant design, marketing and engineering costs. As a state senator, I hear these stories from constituents and business people almost daily. I have great empathy for the plight of people facing lost jobs and lost companies, but I have resisted joining in the chorus of doom and gloom because it serves no purpose. I say this for two reasons. First, the federal stimulus plan passed by congress and being implemented in Wisconsin will help to spur some economic activity in the building and construction industry by funding “shovel ready” infrastructure projects throughout the state. The only concern I have regarding federally-funded stimulus projects is that Madison and Milwaukee seem to be getting a disproportionate share of the money. I can appreciate that these two cities are major economic engines in our state, but ample evidence exists that there are economic opportunities in all corners of Wisconsin. I will continue to advocate that the federal stimulus dollars be allocated not just to the major metro areas, but also to worthy projects throughout the state. The second reason for optimism is the recent announcement by IBM to locate a major facility in the tri-state area, which includes Southwestern Wisconsin. Would I have preferred that IBM locate in Wisconsin? Absolutely! But economic development doesn’t stop and start at the state line and people throughout the tri-state area will see benefits from the presence of IBM. There is another lesson

“As a state senator, I hear the stories from constituents and business people almost daily.” to be learned from the IBM decision. One of the major factors in the IBM decision was the quality of the workforce in Southwestern Wisconsin and the capacity of our higher education system to continue to train workers with the requisite technical skills. Selling the value of Southwestern Technical College, Western Wisconsin Technical College and UW-Platteville as part of the tri-state region has proven to be a winning strategy, and it should be viewed as a sliver of hope during these tough times. More IBM jobs will mean higher demand for housing and more business for Wisconsin builders. I have no illusions that our economy will rebound quickly, and it is possible that the bottom of the business cycle has not yet been reached. But selling doom and gloom is not good for our economy nor is it the type of leadership we need in these tough times. Like any good Realtor, builder or politician will tell you, selling your positives is always the best strategy. Senator Schultz represents the 17th Senate District and is a licensed real estate broker.X Capitol Corner 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 Association®. 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 Annie Rubens, arubens@wisbuild. org. Only comments in writing will be considered for reprint.

Wisconsin Badger Builder • May/June 2009 • www.wisbuild.org

Builder profile

Stebnitz

B u i l d e r s Chris Stebnitz brings “procedural listening” to the table by focusing — really focusing — on what the client is saying. by Marie Grogitsky hris Stebnitz hadn’t intended to follow in the family remodeling business’ footsteps, but he admits he wasn’t opposed to it either. His parents encouraged him to go to college and follow a career path of his choice, a path that led him first into the journalism and communications field, and eventually full-circle — back to Stebnitz Builders. Today Chris, the co-owner of Stebnitz Builders, serves as marketing and sales director of the company. It’s a job he loves, and one that has allowed him to become part of the family construction business while utilizing his educational training in the communications field. “The business was already a solid company when I started,” said Stebnitz. “I think I’ve helped take it to the next level by focusing on really listening to our clients, marketing and branding the business.” Continued on page 14

Wisconsin Badger Builder • May/June 2009 • www.wisbuild.org

builder profile

Continued from page 12

Full-Service Remodeling Stebnitz Builders is located in Delavan, Wis. Stebnitz explained that 90 percent of the construction firm’s business consists of residential remodeling projects while the other 10 percent includes a “dash” of new home construction and commercial outfitting in and around Walworth County and southeastern Wisconsin. Stebnitz Builders is a full-service remodeling company with projects ranging from kitchen, bath and family room remodels to whole-house renovations and additions. “Remodeling has been an industry with a reputation of not being the most professional,” said Stebnitz. “We combat that with systems and procedures that ensure our clients are heard throughout the entire project. With a staff of 17, we are able to provide our clients with a consistently high level of detail and focus — giving them a remodeling experience they will enjoy. ”

A Family Tradition Stebnitz Builders Inc. was founded in 1972 by Stan Stebnitz. In 1985, his sons Dave, Gary and Dan Stebnitz purchased the business. Stebnitz Builders continued in that family owned and run tradition when Chris (Dave’s son) purchased the business and became partners with Dan in 2005. “Really I wasn’t any different than any other builder’s son,” said Stebnitz. “I worked

Business Quick Facts Stebnitz Builders • Years in Business: Third generation company, founded in 1972 • Local Association: Lakeland Builders Association • Association Involvement: Past president of Lakeland Builders Association and five-year board member, chairman of New Home and Remodeling Expo for several years, Education Committee chair and WBA director for four years • Awards: Two-time Builder of the Year of the Lakeland Builders Association and the 2002 Wisconsin Remodeler of the Year • Fun Fact — Something I Never Go to a Job Site Without: Laptop and ears for listening • Web Site: www.stebnitzbuilders.com 14

Wisconsin Badger Builder • May/June 2009 • www.wisbuild.org

“The business was already a solid company when I started,” said Stebnitz. “I think I’ve helped take it to the next level by focusing on really listening to our clients, marketing and branding the business.” with my dad and uncles when I was a kid. I learned the construction part of the business out in the field.” It was the communications and marketing aspects of the business that Stebnitz brought with him to the company when he first started in the sales department in 1993. “I brought some basic marketing principles that allowed us to maintain a consistent message to our clients,” he said. Stebnitz strives to set the company apart from others in the area by continually utilizing communication skills and working on the message the company is sending its clients through strategic questioning and active listening.

Always Working to Improve Their Listening Skills In the interest of always improving the company, Stebnitz explained that the company embarked on an extensive selfdiscovery project in early 2004. Stebnitz said he wanted to know exactly how clients, consumers, vendors, trade contractors and associates perceived the company in order to improve customer service and the customer’s relationship with Stebnitz Construction. After months of research, a few things became clear. First, clients were very satisfied with Stebnitz Builders’ work. Second, if company members focused on continually improving already strong listening skills, they could become an even better company. “To facilitate the improvement of our listening skills, we have developed a formal methodology we call procedural listening. It’s one of the things that make Stebnitz Builders unique.” He explained procedural listening as a specifically tailored discipline of listening and documentation. “Research shows that during a typical conversation, people retain only 30 percent of what was said. This means that 70 percent of what was said is essentially lost,” said Stebnitz. Stebnitz associates ask specific, relevant questions about a client’s project and completely document every response, every step of the way. “We make sure we understand what the client has said and document it.” At the beginning of a project, client’s responses are collected and reviewed. Stebnitz said associates work together with clients to make sure that they have heard and understood the client’s every wish and need. The end result — Stebnitz Builders associates hear 100 percent of what a client says, and that ensures that clients receive exactly what they’ve requested. Stebnitz is a member of the WBA Remodelers Council, a Certified Aging In Place specialist and a Certified Remodeler with the National Association of the Remodeling Industry. He is also a United Way Director and a director with the Southern Lakes Masterpiece Chorale. Stebnitz and his wife Jill have three children: Sam, Mason and Grady. X

Local Association

Parade of Homes/Home Show

Golf Outing/ BBW

Other Events

Education

Brown County

Fall Showcase of New Homes September 19-20 & September 24-27, 2009

July 15, 2009

July 15, 2009 Summer Party & Golf Outing August 11, 2009 Perch & Steak Fry

Monthly “Associate Angle” seminars, Continuing Ed offered at some GMMs

Central Wisconsin

September 11-13, 2009

July, 2009

Nov. 10, 2009 40th Anniversary Celebration

Continuing Ed offered during some GMM’s

Chippewa Valley

June 6-14, 2009

July 9, 2009 Home Builders Invitational-location TBD

See calendar at www.cvhomebuilders.com

Door County

May 8-9 & 15-17, 2009

Sept. 2009 with PAC Auction TBD

Continuing Ed offered during some GMM’s

HBA of Fond du Lac & Dodge Counties

Parade of Homes July 15-19, 2009

August 28, 2009 at Camelot

Golden Sands

June 5-8, 2009

July 21, 2009 • BBW: April 21, 2009

La Crosse Area

June 20-21 & 24-28, 2009 • HS: March 12-14, 2010

July 22, 2009 • BBW: July 22, 2009

Lakeland

July 25-26, Aug. 1-2, 2009

June 25, 2009

Madison Area

June 13-28, 2009 Parade of Condos April 25-May 3, 2009

July 14, 2009

Manitowoc County

June 18-21, 2009

Metropolitan

Aug. 22-Sept. 13, 2009 Spring Tour of Homes & Condos April 18May 3, 2009

Mid-Shores

Oct. 2-4, 2009

Clay Shoot April 25, 2009

Monthly

Sept. 14, 2009-Building Materials Auction

Lunch n’ Learns April 30, July 30, Aug. 27, Oct. 29, 2009 Education Days: March 26, Nov. 4, 2009

Headwaters Heart of the North

Lunch ‘n Learn-last Tues. of month May 19-Brew, Brats & Builders

See calendar at www.maba.org

Bowl-a-Thon, Feb. 2009. Build PAC Auction May 28, 2009

Awake to Learn seminars the 2nd Wed. of month Commerce Approved 12-Hour Course DVD available. $130 for HBA members, $225 for non-members at MBAonline.org.

June 15, 2009 Rummage Sale May 8-9, Cookout May 12, Trap Shoot Sept. 16, 2009 May 21, 2009 Cold Water Canyon, WI Dells

Mid-Wisconsin Northland Area

Showcase of New Homes June 6, 2009

August 13, 2009 Golf & BBW fundraiser

April 23, 2009 OSHA Scaffolding & Ladder Safety

Racine-Kenosha

Spring Tour of Homes & Condos April 18-May 3, 2009 Sept. 12-13, 16 & 19-20, 2009

June 11, 2009

Monthly

Sheboygan County

Sept. 11-13 & 18-20, 2009

June 17, 2009

Monthly

South Central Wisconsin

Sept. 12-13 & 16-20, 2009

June 19, 2009 • BBW: Oct. 27, 2009 Silent Auction

Casino Night March 21, 2009, Parade of Lights Dec. 2009

South Western Wisconsin July 20, 2009 New Richmond Golf Course • BBW: April 28, 2009 Suzanna’s Restaurant

St. Croix Valley Valley

Aug. 16-17 & 19-23, 2009 • HS: Oct. 2-4, 2009

BBW: April 7, 2009

Wausau Area

June 2-7, 2009 • HS: April 18-19, 2009

BBW: April 17, 2009

Winnebago

April 17-19 & 23-26, 2009

June 2, 2009 • BBW: Oct. 14, 2009 Silent Auction

Wolf River

Various -- visit vhba.com for schedule

Clay Shoot May 5, Elections May 13, 2009

See calendar at whba.net

August 11, 2009 Golden Sands Golf Course

rev. 2/23/08

Advertise Your Business in Wisconsin Badger Builder Call Jeff Pinwar: (800) 935-1592, x118 Wisconsin Badger Builder • May/June 2009 • www.wisbuild.org