FREDERICKSBURG - STAFFORD - SPOTSYLVANIA - CAROLINE - KING GEORGE - ORANGE - CULPEPER
November 2022
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FREDERICKSBURG AREA BUILDERS ASSOCIATION
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Volume 6: Issue 11 Novermber 2022
Builder Confidence Declines for 10th Straight Month
In a further signal that rising interest rates and building material bottle- necks are weak- ening the housing market, builder sentiment fell for the 10th straight month in October and traffic of prospective buyers fell to its lowest level since 2012 (excluding the two-month period in the spring of 2020 at the beginning of the pandemic). Builder confidence in the market for newly built single-family homes dropped eight points in October to 38—half the level it was just six months ago—according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) released today. This is the lowest confidence reading since August 2012, with the exception of the onset of the pandemic in the spring of 2020. Derived from a monthly survey that NAHB has been conducting for more than 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.
NAHB Webinars Look at IRA Impacts The Inflation Reduction Act (IRA) has spurred many questions within the home-building industry regarding the number of new energy tax incentives and updates to many tax provisions. NAHB has conducted two webinars about it. One looked broadly at how the IRA may affect housing. The second webinar focused on the IRA’s energy tax incentives. Watch replays of both webinars. home-building industry regarding the number of new energy tax incentives and updates to the many long-standing tax provisions it has created. NAHB has conducted two webinars to inform members of potential impacts of the bill. One webinar looked broadly at the IRA and the provisions that may affect housing. The second webinar focused on the IRA’s energy tax incentives. Replays of both webinars are available on nahb.org..
Materials Prices See Slight Decline Led by a decline in softwood lumber and steel mill prices, overall building material prices fell in Sep- tember with the notable exception of ready-mix concrete, which continues to grow at a rapid clip. And while gypsum prices edged lower last month, they are up more than 20% over the past year. In tandem with a slowing housing market and economy, the prices of building materials decreased 0.3% in September (not seasonally adjusted) according to the latest Producer Price Index (PPI) report.
Builders' Show and DCW Just Keep Getting Better The opportunities for construction and design professionals continue to grow in conjunction with the 2023 Builders’ Show in Las Vegas with the addition of another co-dated wholesale buying event to Design & Construction Week (DCW). Las Vegas Market will co-date with DCW, which features the NAHB International Builders’ Show® (IBS) and the NKBA Kitchen & Bath Industry Show (KBIS). Las Vegas Market is the leading home furnishings and gift market in the western U.S. IBS takes place Jan. 31-Feb. 2, 2023. Register now. Newsletter Focuses on Workforce Development Is your association leading workforce development initiatives locally or planning for future events? Try the Workforce Development Champions Corner, a bi-monthly e-newsletter about promoting skilled trades. It provides workforce development advocates the latest resources, including marketing materials, activity ideas and notifications for future opportunities to connect with peers and share best practices. Complete the e-newsletter subscription form on nahb.org to subscribe.
New Independent Contractor Rule On Oct. 13, the U.S. Department of Labor (DOL) issued a proposed rule that will change the way DOL determines whether workers should be classified as employees or as independent contractors under the Fair Labor Standards Act (FLSA). If finalized, the proposal will replace the current standard, one that NAHB supports because it gives regulated employers and small businesses, including home builders and specialty trade contractors, a clearer and simpler federal test for determining worker status.
Parents Like Skills Training The Madison Area Builders Association worked with the Boys & Girls Clubs of Dane County to provide a summer program full of engaging skilled trades activities for local students. Nearly 100 elementary, middle and high school students participated in job site tours, building projects and hands-on activities. Parents also expressed enthusiasm for the well-rounded program. Many parents told the BGC that they want their child to participate in skilled trades activities next summer. To learn more about NAHB's partnership with the Boys & Girls Clubs, visit the partnership page on nahb.org.
Builder Businesses Grew Significantly in 2021
The business of the typical NAHB builder grew significantly between 2020 and 2021, according to results from NAHB's latest member census. The 2021 NAHB census shows that the median gross revenue of an NAHB builder in 2021 was an all-time high of $3.3 million, up 26.9% from the previous year. NAHB reinstated its member census during the industry-wide downturn of 2008, when median annual revenue of builder members was only around $1 million. Although their median revenue has increased recently, most NAHB builders remain relatively small businesses by conventional standards. According to the 2021 NAHB census: 14% of NAHB's builder members reported a dollar volume of less than $500,000, 13% reported between $500,000 and $999,999, 38% reported between $1 million and $4.9 million, 15% reported between $5 million and $9.9 million, 6% reported between $10 million and $14.9 million, and 13% reported $15 million or more. In comparison, the Small Business Administration's size standards classify most types of construction businesses as small if they have average annual receipts of less than $39.5 million.
Remodeling Index Sees Decline The National Association of Home Builders (NAHB) released its NAHB/Westlake Royal Remodeling Market Index (RMI) for the third quarter, posting a reading of 77, declining 10 points compared to the third quarter of 2021. An index number above 50 indicates that a higher share of remodelers view conditions as good than poor. Twenty-three percent of remodelers said the market had gotten worse in the third quarter of 2022, compared to only 10% who said it had gotten better. After a decline in 2022, NAHB expects a small increase in remodeling activity in 2023.
Strategies to Recession-Proof Your Business
As many builders learned during the previous downturn, weathering a recession often requires embracing lean business processes. But finding ways to deliver value on essential services while eliminating waste is easier said than done. NAHB members Robert Carroll, owner of Carroll Construction, and Jake Harris, CEO of BuildWallet, shared some lean-business strategies during a recent presentation as part of NAHB’s Young Professionals Week. The webinar covered a wide range of stra- tegies businesses can use during uncertain financial times. "Recessions are pivotal times to focus on business fundamentals, particularly during these periods of high inflation and rising interest rates," Carroll said. "Businesses that are prepared will have the best chance of succeeding and maximizing opportunities to grow." One of the methods discussed during the presentation focused on member-to- member collaboration. "What I love about the NAHB Federation is the collective knowledge that is shared among the membership," Harris said. "This is a community full of proven, talented professionals who can offer real-world solutions. The members who take advantage of that can drive real value for their businesses."
Upcoming Meetings & Events
December 7th County Spotlight 11:30-1:00 Caroline High School December 14th Associates Committee Meeting, 9:00-10:00AM FABA Office or Zoom December 14th Membership Committee Meeting,10:30-11:30AM FABA Office or Zoom December 14th Community Service Committee Meeting, 2:00-3:00PM FABA Office or Zoom December 15th Holiday Party Renatos, 5:00-7:00 January 21st President's Gala Old Silk Mill
Calendar at a Glance
Months available for 2023: January July November December
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.
Membership Committee
Contact Meghan@FABAVA.com to purchase your Hard Hat
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 PM. Interested in hosting a hard hat next year? We still have a few available next year. Be the only sponsor of our free networking events each month for $350!
2023 Cornerstone is selling fast! Click the image below to find out more about this sponsorship and marketing program!
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.
Click here to register
Chair- Mike King- Rayssiddingcompany@gmail.com Rays Siding, Co.
Save the date for the FABA Holiday party!
Associates Committee
Associates Committee Hybrid Meeting Zoom Link: Second Wednesday of each month at 9:00 AM
Culpeper County Quarterly Meeting Zoom December 1st 9:00AM City of Fredericksburg Bi-monthly Meeting Zoom December 2nd 9:00AM Spotsylvania County Bi-Monthly Meeting Zoom December 5th 3:00PM Stafford County Bimonthly Meeting Zoom December 12th, 9:00AM Caroline County Quarterly Zoom December 14th, 11:00AM King George County Quarterly Zoom January 20th, 9:00AM
Legislative Committee
Upcoming County Zoom Meetings
Interested in getting updates from Mark regarding your county and their legislative updates? Check out a few hot topics from November
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 Mark Snesavage at Mark@FABAVA.com
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.
Legislative/Policy Concerns: Spotsylvania: It has been almost a month since the County has enacted new policies and procedures. I have spoken to a few members about their experience with the pre-construction meetings. The feedback I have been given is that the meetings are relatively short and painless. Please let me know what your experience has been. I’m also trying to acquire feedback regarding Spotsylvania’s Yard Variance Acceptance Form. This new form allows the builders to receive their bond back if the homeowner agrees to take responsibility of reaching full vegetative cover of their property. Has any builder successfully used this form yet? Please let me know. Pending Items Perimeter controls prior to clearing: FABA and HBAV are still working on this matter. We have received some information from DEQ officials, citing minimum standard #4 as their rationale. Upcoming Events/Meetings: Caroline County Spotlight, Wednesday,Wednesday Deember 7th, 2022 11:30 AM - 1:00 PM EST at Caroline High School Register here
Help give back this holiday season! The FABA Community Service Committee and the Fredericksburg Food Bank will be working together to help pack meals on December 16th from 10:00-12:00. Come help support this wonderful cause and give back to our community. Please let us know if you are planning to attend. For more information, contact Meghan@FABAVA.com
Chair - Greg Schmidt, greg@pestsolutionsva.com
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!
Find a drive near you
Community Service Committee
Help support the Fredericksburg Area by giving blood at an upcoming drive. Click the link below to find a drive near you
This committee holds a hybrid meeting (in-person and virtual/zoom) every 4th Wednesday at 2:00PM.
Check our these educational opportunities in 2023 Impact to work place, support after Covid - January 2023 Codes of Coffee Marketing and Branding 101 Visual and digital marketing Social Media overview Building industry 101 Hiring and retaining workforce
Meghan Butcher - FABA Staff Meghan@FABAVA.com
The Education Committee coordinates workshops and virtual learning opportunities focused on industry safety, marketing, and personal growth. Stay tuned for upcoming educational opportunities.
Sean Halsey - Halsey Homes
Education Committee
Young Professionals Committee
To join the FABA Young Professionals committee email Meghan@fabava.com
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. Stay tuned for updates in 2023
As a Cornerstone benefit for Partner, Platinum and Diamond levels they are able to contribute educational content to the newsletter each month. Check out this month's contribution from Contractors Websites Plus
info@contractorwebsitesplus.com
Need is the mother of (re)invention
We all know the old adage ‘need is the mother of invention’. When it comes to today’s economy and the coming recession, need is going to be the mother of reinvention for some of us. Reinventing yourself is simply the act of identifying things in your life that no longer serve you and changing them for better options. How you approach reinventing yourself will make all the difference. If you look at reinvention as an opportunity you won’t fear it. New home builds may slow but past downturns have shown people will be looking to invest in the home they already have. So maybe you’re a custom home builder who misses the simplicity of building a deck and the satisfaction of swinging a hammer then looking back at what you created with pride. If that sounds like you, why not go back to building custom decks, basement buildouts, or even custom garages? To some, the idea of reinventing yourself may seem frightening but, as someone who reinvented themselves 15 years ago, I can tell you it doesn’t have to be. It can be fun, challenging, rewarding, and fulfilling. In fact, I’m in the midst of reinventing myself again with our newest venture Flusso Software (building productivity and workflow software – shameless plug!). The coming economic turmoil doesn’t have to be catastrophic and reinventing your self doesn’t have to be frightening. If you need anything to help you reposition yourself and your brand please let me know. I’d love to help.
Member Contributions
Cornerstone 2021
2022 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 Dan Sandoval Republic Home Builders HBAV State Representative Scott Hine Union Home Mortgage Builder Director Tim Hall Tricord Companies Builder Director Allen Harrison Battlefield Homes Builder Director Steve Flanagan Built Right Homes Builder Director Teressa Taylor-Griffis FTTG & Associates, LLC 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 Life Builder Director Sean Halsey Halsey Homes Life Builder Director Dan Sandoval Republic Home Builders
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).
Learn More Here