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Volume 5: Issue 12 December 2021
December 2021
Builder Confidence in Market Rises in November
Low existing inventories and strong buyer demand helped push builder confidence higher for the third consecutive month even as supply-side challenges — including building material bottlenecks and lot and labor shortages — remain stubbornly persistent. Builder sentiment in the market for newly built single-family homes moved three points higher to 83 in November, according to the NAHB/Wells Fargo Housing Market Index (HMI) released Nov. 16. Derived from a monthly survey that NAHB has been conducting for 35 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor. The HMI index gauging current sales conditions rose three points to 89 and the gauge charting traffic of prospective buyers also posted a three-point gain to 68. The component measuring sales expectations in the next six months held steady at 84.
NAHB Challenges OSHA Vaccine Rule NAHB in November filed a petition for review in the U.S. Court of Appeals for the D.C. Circuit asking the court to examine OSHA’s emergency temporary standard (ETS) requiring companies with more than 100 employees to mandate COVID-19 vaccinations or weekly testing. There are also many other legal challenges across the United States. NAHB believes that OSHA does not have the authority to issue an ETS on this matter. But barring a long-lasting injunction, employers will have to comply with many parts of the rule by Dec. 6
President Signs Infrastructure Bill President Biden on Nov. 15 signed into law a bipartisan, $1.2 trillion infrastructure package. The bill includes a key measure championed by NAHB that will restore an exemption for water and sewer contributions in aid of construction. NAHB supported the bill, which will fund much-need improvements to the nation’s roads, bridges and public transportation. The measure advances efforts to increase energy efficiency and reduce greenhouse gas emissions without excessive energy code mandates.
Fed Begins to Taper MBS Purchases The Federal Reserve has supported the housing market during the pandemic with asset-backed purchases (among other tools), including $40 billion a month of mortgage-backed security purchases. These purchases have helped keep interest rates low. Beginning in November, the Fed began reducing the monthly volume of such purchases by $5 billion. The Fed is also reducing its purchases of Treasuries by $10 billion a month. These actions will put upward pressure on interest rates.
Two Great Reasons To Attend 2022 IBS Tours of the 2022 New American Home and New American Remodel are two great reasons to attend the NAHB International Builders’ Show® (IBS), Feb. 8-10, 2022, in Orlando. The two show homes offer a look at innovative construction methods, design trends and exciting new products. Make plans now to attend the Builders’ Show IN PERSON. Visit buildersshow.com to register and to get more information. Commerce to Double Tariffs on Lumber In a blow to housing affordability and a move strongly opposed by NAHB, the Commerce Depart- ment in November moved forward with its next adminis- trative review to double the tariffs on Canadian lumber shipments into the U.S. from 9% to 17.9%. “With the nation in the midst of a housing affordability crisis, the Biden administration has moved to slap a huge, unwanted tax hike on American home buyers and renters by doubling the tariffs on Canadian lumber shipments into the U.S.,” NAHB Chairman Chuck Fowke said in a statement.
Enhance Your Business with Insights from the NAHB Ideas App
Get up to speed on the latest industry trends and professional development skills with the NAHB Ideas app. Recent articles have touched on everything from handling disruptions in the housing market to en- hancing your leadership and management skills to understanding the impact of land use regulations on housing inequities. New content this month includes: Adapting to Change in the Remodeling Industry The Future of Aging-in-Place Design Looking for more insights? Articles are categorized into issue areas such as building techniques and strategies, project management, research and trends, and more, to make them easy to find. Users also can now share helpful articles through email, text message and more using the sharing tool at the top of the app screen. The app is available on the Apple App Store and Google Play Store for Android. Search the keyword “NAHB,” then select “GET.”
Materials Prices Climbing The price of all goods inputs to residential construction (including energy) has risen 14.5% thus far in 2021, eight times more than it did over the first 10 months of last year. The year-to-date increase is twice that of the previous record year-to-date October increase (+7.1% in 2008). The PPI for softwood lumber increased 9.1% in October. Gypsum product prices are up 19.0% YTD, by far the largest October YTD increase since seasonally adjusted data became available in 2012. And over the 80-year period ending in 2020, the monthly change in the steel mill products PPI increased by more than 10% only three times (in 1947, 1948, and 2008). Monthly increases have exceeded that mark four times in 2021.
Multifamily Confidence Improves Confidence in the market for new multi- family housing improved in the third quarter, according to results from the Multifamily Market Survey (MMS) released Nov. 18 by NAHB. The MMS produces two separate indices. The Multifamily Production Index (MPI) increased five points to 53 compared to the previous quarter. The Multifamily Occupancy Index also increased by five points, up to 75 – the highest reading since the inception of the index in 2003. The MPI measures builder and developer sentiment about current conditions in the apartment and condo market on a scale of 0 to 100. The index is scaled so that a number above 50 indicates that more respondents report conditions are improving than report conditions are getting worse.
management, research and trends, and more, to make them easy to find. Users also can now share helpful articles through email, text message and more using the sharing tool at the top of the app screen. The app is available on the Apple App Store and Google Play Store for Android. Search the keyword “NAHB,” then select “GET.”
New HBI Report Highlights Depth of Labor Shortage
A lack of skilled construction labor is a key limiting factor for improving housing inventory and affordability, according to the Home Builders Institute’s (HBI’s) Fall 2021 Construction Labor Market Report released in November. The construction industry needs more than 61,000 new hires every month to keep up with both industry growth and the loss of workers either through retirement or to other opportunities. Roughly 740,000 new construction workers need to be added per year for the next three years to keep pace with demand, based on NAHB analysis of Bureau of Labor Statistics data. Key findings include: • The number of open construction sector jobs currently averages between 300,000 to 400,000 each month. • Half of the payroll workers in construction earn more than $50,460 annually and the top 25% make at least $71,000. In comparison, the U.S. median wage is $49,150 while the top 25% make at least $67,410. • Construction employment currently totals 7.42 million. Residential construction represents 3.1 million of this total. • Self-employment in construction is currently 22% of the labor force, down from 26% in 2010. • The share of immigrants in construction trades is 30%. • The share of Women in construction is 10.9%. • The median age of construction workers is 41. However, due to aging trends, the share of construction workers aged 25 to 54 decreased from 72.2% in 2015 to 69.0% in 2019.
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Upcoming Meetings & Events
January 15th, 6:00PM President's Gala Old Silk Mill January 19th, 8:30AM Legislative Committee Meeting Zoom January 19th, 5:00PM Hard Hat Sponsored by Suburban Auto Sales Committee Conference FABA Open House January 26th at the FABA office Associates Committee 9:00-10:00 Membership Committee 10:30-11:30 Community Service Committee 2:00-3:00 Young Professionals 3:30-4:30
Calendar at a Glance
Membership Committee
The Membership Committee brings builder and associate members together to focus on recruitment of new members and retention of current members. This committee hold a hybrid meeting (in-person or zoom) every 2nd Wednesday at 10:30AM.
Chair - Marc Simes, msimes@tricordinc-va.com
Every Third Thursday of the month, join us for our networking Hard Hat Events from 5:00-7:00. This month is sponsored by Suburban Auto Sales! New to FABA? from 4:00-5:00 we will have new member orientation.
Interested in joining the membership committee or one of our other committees? Join us at the FABA office for the first committee conference and open house. New year, new head shot! We will have a photographer on site from 10:15-1:15 to capture your new head shot for $15.00 each. Membership Committee 10:30-11:30 Have more questions? Email Meghan@FABAVA.com
The Associates Committee plans member events to promote doing business with members. These volunteers coordinate networking and social events for business connections. This committee has a hybrid meeting (in-person or zoom) every 2nd Wednesday at 9:00AM. Interested in joining the Associates Committee? Join us in the FABA office on January 26th from 9:00-10:00 to get a taste of your first meeting!
Chair- Mike King- Rayssiddingcompanay@gmail.com Rays
Associates Committee
2022 Events Committee Conference President's Gala Spring Golf Spring Clay Shoot Crab Feast and Auction Disc Golf Fall Clay Shoot President's Reception Annual Meeting Holiday Party A little something for everyone!
Associates Committee Hybrid Meeting Zoom Link: Second Wednesday of each month at 9:00 AM
Curious about what the legislative committee and PAC does for our members? Here are a few examples:
Orange County Quarterly Meeting Zoom January 7th , 1:00PM King George County Bi-monthly Meeting Zoom January 21st, 3:00PM Fredericksburg County Bimonthly Meeting Zoom February 4th 9:00AM Spotsylvania County Bi-monthly Meeting Zoom February 7th, 3:00PM Stafford County Bimonthly Meeting Zoom February 14th, 9:00AM Culpepper County Quarterly Meeting Zoom March 3rd, 9:00AM Caroline County Quarterly Meeting Zoom March 16th, 11:00AM
Legislative Committee
Upcoming County Zoom Meetings
Latest updates from your three in one membership hard at work for BUSINESS
Developers Council The working mission of the Council is to stay on top of land development issues affecting local builders and developers in our region and work together to advocate for our positions as needed. The Council is open to Builder and Developer members of FABA. Jeh Hicks, Jarrell Properties , Inc., is the chairman of the Developers Council. This group meets every other month. For more information contact Chrissy Urian at c.urian@fabava.com
Defeated legislation to allow localities to enact their own building codes
Chair - Bruce Reese, bruce@legacy-eng.com
The Legislative Committee meets monthly to discuss the status of local and state level legislation that affects the building industry. For more information from each county, plan to attend the Legislative Committee meeting. This committee meets virtually every third Thursday at 8:30AM.
Blocked legislation to allow Project Labor Agreements in Zoning Ordinances
Events for 2022 Legislative Golf Twilight Golf PAC Fund Raiser
Check out the upcoming events for 2022
Chair - Greg Schmidt, greg@pestsolutionsva.com
Community Service Committee
The Community Service committee seeks to increase civic engagement among the members of FABA and utilize professional skills to actively benefit the Fredericksburg area. We are always looking for new ways to get help and support the community. If you are interested in submitting an idea for the community service committee feel free to join us!
This committee holds a hybrid meeting (in-person and virtual/zoom) every 4th Wednesday at 2:00PM.
CANstruction - March 25-27 Blood Drive - April Community Service day - May and October Trees of Hope - November
Committee Conference - January 26th
The Young Professionals are looking for more members. We want you! Bi -Monthly meetings will begin in January with the Committee Conference. Know someone at your company who may be interested or benefit from our committee? Send them our way! Email Meghan at Meghan@FABAVA.com
Click here for more!
Your Picture Here
Meghan Butcher - FABA Staff Meghan@FABAVA.com
The Education Committee coordinates workshops and virtual learning opportunities focused on industry safety, marketing, and personal growth.
Chair - TBD
Access training and educational materials on YouTube
Education Committee
For more information on NAHB Young Professionals click here
Young Professionals Committee
Young Professionals committee is for individuals in the 21-40 age group to connect, and provides opportunities for professional development, social networking, mentoring, and personal growth for our members. To join the FABA Young professionals committee email Meghan@fabava.com
Events for 2022 Lunch and Learn Series Disc Golf Reverse Job Fair
FABA works to educate, promote and represent the building industry while enhancing the region’s quality of life.
Cornerstone 2021
Spotsylvania Career and Technical Center James Monroe High School Stafford High School
FAB Foundation
FAB Board of Directors Greg Schmidt Glen Raymond Eddie Payne Guy Miller-Richards Emily Hall Christine Singhass Mike King Ricky Robinson Tim Thompson Gary Parker Scottie Davis
The FAB Foundation board of directors meets monthly to discuss ways to involve the association with local workforce educators and help promote workforce development in our area. If you would like to be involved with these students, contact FABA for more information.
We need your help! Any funds collected for FAB between now and December 31, an anonymous donor will match all donations up to $10,000.00!If we can collect $100 from every member this month, we will exceed our goal!We are so eager to raise money for the students and those entering into the building industry, we can't do it without you.
Spotsylvania High School Gladys H Oberle School Orange County High School Caroline High School
FABA Student Chapters
Donate Now
The 2022 Slate of officers President- Scott Hine 1st VP-Marc Simes 2nd VP-Jeh Hicks Treasurer-Jeremiah Horstick Secretary-Michelle Hall Associate VP-Mike King Immed.PastPres.-Stacey Lampman Legal Counsel-Charlie Payne Builder Director-Dan Sandoval -NAHB Builder Director-Sean Halsey Builder Director-Tim Hall Builder Director-Teresa Taylor Griffis Builder Director-Allen Harrison Builder Director-Steve Flanagan Associate D.-Bruce Reese Associate D.-Emily Hall Associate D.-Sara Fila Associate D.-Rick Furnival Associate D.-Greg Schmidt
2021 FABA Board of Directors
President Scott Hine Union Home Mortgage 1st Vice President Marc Simes Tricord Companies 2nd Vice President Jeh Hicks Jarrell Properties Secretary Michelle Hall J. Hall Homes Treasurer Jeremiah Horstick CORELOT Immediate Past President Stacey Lampman Spaces Design Studio Associate Vice President Michael King Ray's Siding Executive Officer Maria Moore FABA Legal Counsel Charlie Payne Hirschler NAHB State Representative Shawn Callahan Metwood Building Solutions Builder Director Tim Hall Tricord Companies Builder Director Sean Halsey Halsey Homes Builder Director Allen Harrison Battlefield Homes Builder Director Pete McGuire Triple Crown Homes Builder Director Dan Sandoval Republic Home Builders Builder Director Teressa Taylor-Griffis Foundation Homes Associate Director Sara Fila Legacy Engineering Associate Director Rick Furnival Sullivan, Donahoe & Ingalls, PC Associate Director Emily Hall Spotsylvania Career & Tech Center Associate Director Bruce Reese Legacy Engineering, PC Associate Director Greg Schmidt Pest Solutions
Thank you to our Cornerstone Sponsors
HBAV partners with Small Business Growth Partners to provide HBAV members with a free Business Diagnostic and Plan of Action (BPA). This $2,000 value is a 12-month business “Plan of Action” for you and your company, broken down by the disciplines of business – sales, marketing, processes and systems, team and people, actions and accountability, financial tracking, and planning. The BPA will also be fully explained to you in a 1.5 hour BPA Outbrief with two executive coaches.Click here to get started!
FABA has been working with our exclusive, private partner, Small Business Growth Partners (SBGP) to help our members reach maximum growth and potential through their one of a kind BPA Process. This has been refined for over 10 years of working exclusively with Builders, Remodelers & HBA Associate Members. As an exclusive FABA member benefit, we are offering you the chance to register for and redeem your 2021 Business Diagnostic & Plan of Actions. An annual BPA is included 100% with your FABA Member Benefits (A $2,200 value).
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