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Monthly Newsletter published by SWMBIA and distributed to the membership
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MARCH 2013
Southwest
Montana
Building Industry
Association
Monthly Newsletter
TABLE OF CONTENTS
Advertiser’s Index ....................................................... 17
Builder’s Tool Box Tips ............................................... 16
Calendar of Events ..................................................... 2
Chairman of the Board’s Message ............................. 3
Committee/Leadership ............................................... 17
Economist’s Corner .................................................... 13
Golf Tournament ......................................................... 10
GRIP Safety ................................................................ 7
Home Expo ............................................................. 5, 15
Housing Starts ............................................................ 5
Member Announcement ............................................. 2
Member of the Month ................................................. 12
Member Spotlight ....................................................... 2
New Members............................................................. 11
Renewing Members .................................................... 9
Spike Club .................................................................. 6
www.nahb.org
www.montanabia.com
MARCH 17th MEMBERSHIP
MEETING & DINNER Santa Fe Reds, Downtown
6pm Cocktails 7pm Dinner $20/each
Reservations Please! Program:
“New Health Care changes
and how they affect you and
your business”
By Pat Harlin Vice President—Employee Benefits
Consultant
PayneWest Insurance Inc.
M ontana Climate Control provides a variety of heating and cooling services
to customers throughout Belgrade, MT and the surrounding areas. Whether
you’re looking to install a new high efficiency unit for your home or a gas fireplace in
your living room, we’re the people for you. We are dedicated to keeping you warm in
the winter and cool in the summer. We only use quality units like Trane, so you can be
sure you will be getting a reliable heater or air conditioner!
Our contractors do both residential & commercial
HVAC work, so no project is too big or too small
for us to handle.
Our HVAC Services Include: GeoThermal
Heating and air conditioning
Furnaces and central air
Installations
Retrofits
Ventilation services
Gas fire places
Computerized Load Calculations & Duct Design
And more!
We specialize in customer service, which means
your satisfaction is guaranteed. Give us a call to
see what we can do for your home!
Contact
Montana Climate Control
today at 405-582-0057
to get your home or
business comfortable again. Montana Climate Control 1037 Apples Way • Belgrade, MT 59714-8954
www.montanaclimatecontrol.com
2
April 9 Green Building Committee Meeting, 3:30pm April 10 Golf Committee Meeting, Noon SWMBIA
April 10 Government Affairs Committee Mtg 4pm SWMBIA April 16 Parade of Homes Committee Mtg 4@Johnny Carinos April 17 Membership Meeting & Dinner 6pm Santa Fe Reds
April 23 Executive Committee Mtg 4pm SWMBIA April 24 Membership Committee Mtg, 3:30pm SWMBIA
A full list of Events, Information, Membership Directories and much more available at www.swmbia.org
SWMBIA Monthly Newsletter OPT-OUT FORM
In an effort to green our environment and reduce waste, please let us know if you would prefer to
NOT receive a printed SWMBIA Monthly Newsletter. Monthly Newsletter will still be available
electronically in member emails or at www.swmbia.org.
□ Do not send me a printed SWMBIA Monthly Newsletter
Name____________________________________
Company_________________________________
Signature_________________________________
Return to SWMBIA, 1716 W. Main Street, Suite 8G
BIG SAVINGS FOR MEMBERS! Have you checked out
www.nahb.org/MA ? Did you know that there is a load of
discounts available? Membership Pays!
Dues Increase Announcement
The National Association of Home Builders [NAHB], our parent affiliate, recently announced their decision to increase membership dues. As a result of this decision, SWMBIA will be increasing membership dues in order to cover this additional cost for each member. Therefore, the SWMBIA Board of Directors approved an increase of SWMBIA Membership Dues to $525 effective July 1, 2013. $525 will be price for both Builder and Associate members. Affiliate members—representatives of existing members—will continue to be $50 for twelve-month memberships. Members are welcome to PREPAY up to five (5) years of membership dues before the July 1, 2013 increase. Check, money order and Mastercard/Visa are
acceptable.
M azzella Construction LLC, established in 2010 and based out of
Bozeman, is a commercial and residential General Contractor focused
on energy efficient design and construction, and unique projects.
We also specialize in Insulating Concrete Form construction and are a dealer of
multiple ICF blocks brands and products, and will act as an ICF installation
subcontractor on any project.
With the current and upcoming energy and building codes requiring thermal
breaks and more insulation than ever before, ICF basements and foundations
are a cost effective and time saving solution to easily meet all minimum code requirements.
Please feel free to contact us with any questions or for estimates and pricing. - Andrew Mazzella, President 406-600-7464
[email protected], www.mazzellaconstruction.com
Member Spotlight
From the Chairman of the Board
3
Dear Members,
H appy Spring!
I hope you had a busy and profitable
March. It went by quickly for many of us
with the preparations for the Home Expo
and Playhouses on Parade. This year’s
Expo had record attendance and the booths
were sold out for the first time since
SWMBIA has been hosting the event.
The playhouses were once again very
popular and the recipients of the play-
houses are very excited. The winners of
the 2013 playhouses were:
Pro Builders 2013 Playhouse Winner: Carol Thurston of
Bozeman who has generously decided to donate the playhouse
to Eagle Mount!
Distinctive Lighting 2013 Playhouse Winner: Andrea
Cavelier of Bozeman
Insty-Prints2013 Playhouse Winner: Nicole Blount of
Belgrade
Constructive Solutions 2013 Playhouse Winner: George
Shafer of Buffalo WY
David Fowler Architecture 2013 Playhouse Winner: Matt
Figgins of Bozeman
Wacky Shacks 2013 Playhouse Winner: Fred Bell of
Bozeman
I would like to give a big “Thanks” to the Home Expo and Play-
houses on Parade committee members for all of their hard work
which proved vital in making this year’s Home Expo and Play-
houses on Parade, two extremely successful events.
With the Expo coming to a close, we are now focusing our
sights on the 2013 SWMBIA Golf Tournament and the 2013
Parade of Homes. The Golf Tournament will be held June 21st at
the Bridger Creek Golf Course. Currently we have 12 homes
entered for the Parade of Homes that will take place in Septem-
ber. I urge you to contact the Parade of Homes builders to find
out how you can be involved with one or more of the Parade
Homes.
Currently committed 2013 Parade of Homes Builders:
Anders Lewendal Construction Inc.
Alpenglow Custom Builders, LLC.
Bridger Peak Construction, LLC.
Constructive Solutions, Inc.
EG Construction Inc. (2 entries)
Fishcamp Custom, LLC
McIntosh Construction
Pro Builders
Von Construction, Inc.
Keith Fraser Construction
Elliott Management Consultants DBA, Yes Haus
One of the main conversations around the water cooler these
days has been the frequent inspections by OSHA. Now, more
than ever it is important to be a SWMBIA member so that you
can take advantage of the safety training from Sean Lawler and
Mike Rocchio. These gentlemen can ease the pain of a potential
OSHA visit.
If you are in need of forklift, scaffolding and /or fall protection
training these are just a few of the many ways they can help
you. If you would like them to come by your place of business
to assist you in identifying any safety violations, they can do
this as well. If you have any questions regarding this service that
is FREE to all SWMBIA members please feel free to contact the
SWMBIA office or myself for more information.
Again, a big Thank You to our committee members for all of
the volunteer hours they devote each month. Each of you contin-
ues to help build this organization with your commitment to
SWMBIA.
All my best,
Nathan Albrecht
2013 SWMBIA, Chairman of the Board
Please take the time to thank this year’s
Home Expo and Playhouses on Parade
committee members for all of their hard
work in making these two events so
successful. Home Expo Committee Members:
Chairperson Beth Zeman of Security Title Company
Nathan Albrecht of Pro Builders
Rob Evans of Constructive Solutions Inc
Holly Parker of Stewart Title
Julie Schumacher of Security Title Company
Erica Renslow of First Interstate Bank
Darryl Seymour of Montana Title and Escrow
Ashley Ogle of Kenyon Noble Lumber and Hardware
Kami Gillespie of Ambient Air Solutions, Inc
Playhouse Committee Members:
Chairperson Crystal Warden of Distinctive Lighting
Gina Marshall of US Bank
Cherie Albrecht of Pro Builders
Jeremiah Hillier of Welding and Machine
Nathan Albrecht Pro Builders
2013 Board Chairman
2013 SWMBIA Home Expo
We are proud as punch to have such a wonderful group of
members, sponsors, exhibitors and attendees to this
year’s March 23-24 SWMBIA Home Expo.
With thousands attending, it was a pleasure to show southwest
Montana the many options, information and professionals that are
available to help with all things home.
Congratulations to judging price winners:
Best Marketing: The Paint Factory
Best Bang for your Buck: Bozeman Family Chiropractic
Best Personnel: Mountain Sheet Metal
Best of Show: Jeacec Custom Woodworks
The winner of Infrared
USA’s Gift Certificate
for a $300 Energy Audit
is Mike Martins,
Bozeman, MT
Economic Indicators
5
Figures are for March 2013
Housing Starts
Source: City of Bozeman Building Division
Remodels & Additions (includes fences, garages & reroofs)
Single Family Duplex Multi-Plex Townhome Other Total New:
Permits/Units Valuation Sq Footage 34 34 8,310,968 107,044 1 2 40,969 3,760 4 17 1,683,471 17,846 8 8 1,469,502 16,376 47 61 $11,504,910 145,026
# Valuation Residential 21 662,534 Commercial 25 927,770
CITY COMMERCIAL STARTS
Bldgs Valuation Sq Footage 2 $5,459,075 54,072
Information available at www.bozeman.net
What Does NAHB Do For You? When you pay your membership dues, you are
working alongside thousands of like-minded
professionals.
Below are the top-ten priorities NAHB is
working on right now.
Protect the Mortgage Interest Deduction
Resolve Foreclosure and Appraisal Problems
Maintain Federal Support for Housing Finance
System
Preserve Affordable Downpayments and
Mortgages
Fight Onerous Regulations that Hurt Home
Builders, Remodelers and Consumers
Ensure an Adequate Supply of Credit for New
Home Production
Recognize Housing’s Important Role to the
Economy
Defend the Low Income Housing Tax Credit
Enact Comprehensive Immigration Reform
Use All Legal Means Necessary to Protect
Property Rights
Get Involved! This is YOUR livelihood...
BILLINGS – BELGRADE – CASPER – KALISPELL – MISSOULA
(FORMERLY JTL GROUP, INC.)
Full Service
Contractor
• Asphaltic Concrete Paving
• Complete Site Development
• Sand & Gravel
• Utility Construction
• Concrete Ready Mix
• Concrete Pumping
General Offices
Sand & Gravel Belgrade, Livingston & Big Sky Phone: 388-6832
Concrete Services
& Pumping
Belgrade: 388-6042
Livingston: 222-1704
Big Sky: 955-2712
Construction Estimates Phone: 388-4035 Fax: 388-1571
21730 Frontage Rd. P.O. Box 9 Belgrade, MT 59714 Phone: 388-6832 Fax: 388-8347
The True Champions of NAHB ♦Nationwide prestige ♦Recognition ♦Networking Opportunities ♦Valuable rewards for each level ♦Eligibility to attend the annual
NAHB Spike Party ♦Local & state VIP events, prizes & awards
To achieve Spike status: Earn six credits within two consecutive membership years (Nov. 1-Oct. 31).
To retain Spike status and become a Life Spike: You must earn a minimum of one Spike credit (new or retention) each membership year until you
reach a total of 25 credits.
Super Spike (250-499)
Tim Dean 503 Spikes
Royal Spike (150-249)
John L. Miller 204 Spikes
Byron Anderson 190 Spikes
Dennis Cattin 179 Spikes
Clair W. Daines 172 Spikes
David Andreassi 154 Spikes
Jim Syth 151 Spikes
Red Spike (100-149) Eugene Graf IV 148 Spikes
Anders Lewendal 128 Spikes
Greg Vidmar 111 Spikes
Green Spike (50-99)
Eric Roset 99 Spikes
Eugene Graf III 97 Spikes
Bill Fiedler 99 Spikes
Chuck Graden 95 Spikes
J.D. Engle 85 Spikes
Richard Smith 82 Spikes
Beth Zeman 78 Spikes
Frank Armknecht 63 Spikes
David Graham 65 Spikes
Guy Graham 59 Spikes
Steve Armknecht 56 Spikes
Life Spike (25-49)
Kenneth Vidar 49 Spikes
Jon Moullet 46 Spikes
Sally Hickey 40 Spikes
Nathan Albrecht 43 Spikes
Adrian Vaughn 39 Spikes
Ron Hinds 37 Spikes
Rob Evans 40 Spikes
Keith Fraser 35 Spikes
Dean Derby 27 Spikes
Blue Spikes (6-24) Jeri Norris 8 Spikes
Erica Renslow 6 Spikes
The True Champions of NAHB ♦Nationwide prestige ♦Recognition ♦Networking Opportunities ♦Valuable rewards for each level
♦Eligibility to attend the annual NAHB Spike Party ♦Local & state VIP events, prizes & awards
To achieve Spike status: Earn six credits within two consecutive membership years (Nov. 1-Oct. 31).
To retain Spike status and become a Life Spike: You must earn a minimum of one Spike credit (new or retention) each
membership year until you reach a total of 25 credits.
6
By recruiting, involving and retaining members,
SPIKES strengthen and build both our Association and the Industry!
Group Rewards Insurance Program (GRIP)
7
Sequestration Causes OSHA to Cancel GRIP Presentations in April
For the month of April GRIP safety classes on “Fall
Protection” have been cancelled as educational rep-
resentatives from OSHA have backed out citing
“Budget Sequestration”. Enforcement officers are
however not under budget sequestration limitations and actively
enforcing construction deficiencies.
To make use of the hotel meeting spaces and accommodations we
have moved ahead our May “OSHA Top 10 Citations” presenta-
tion. With spring upon us and the heart of the construction season
just around the corner, many of our companies will be hiring a
few new hands to fill the demands of peak build season. Do these
new hires recognize the hazards of the building trades? Do these
new hires understand their duties and responsibilities to protect
themselves, protect coworkers, and avoid the company costly
OSHA citations.
Our April presentation will serve as great review of the 10 most
cited items in our industry for Montana. Fall protection, Scaf-
folding, Personal Protective Equipment, and much more (see the
list below)
1. Fall Protection (lack of); continues to remain in
number one: 1926.501
2. Excavation protection: 1926.652
3. Excavation daily inspections: 1926.451
4. Excavation access/egress: 1926.651(c)
5. Scaffold construction: 1926.451
6. Fall hazard training: 1926.503
7. Lead in construction: 1926.62
8. Personal protective equipment (hard hat, hard toe
boots, safety glasses, hearing protection or respira-
tors when a hazard exists.): 1926.95
9. Electrical: 1926.405
10. Ladders: 1926.1053
We welcome your veteran employees, subcontractors, and par-
ticularly your new/summer employees to this presentation to raise
their awareness of the hazards on the jobsite and avoiding OSHA
citations. The classes will begin at 7:30 AM and end by 9:00 AM.
Please RSVP to (406)442-4479 so that we can provide enough
seating and refreshments.
As always, there is no charge for this training and your subs may
attend for free. We apologize for the change of subject matter
but we trust the new subject will be equally as useful.
Classes Run 7:30am-9:00am Bozeman – Wednesday, April 10, Holiday Inn, 5 Baxter Lane
GRIP SAFETY SEMINARS
Register at www.montanabia.com or call (406) 442-4479
Also available by request: Forklift Certification, Excavations/Trenching,
First Aid/CPR Cert., Competent Person Scaffolding Cert., Powder-Actuated Tools Cert., Hazard Communications (MSDS),
Back & Lifting Safety, and Electrical Safety
(406) 442-4479 or visit www.montanabia.com
8 Funny Name Great Service! Locally Licensed & Insured
BUILDERS
Andreassi Custom Homes, Inc.
*Clair W. Daines, Inc.
Stoner Construction Company, Inc.
*SxS Land and Development, LLC Responsible and
progressive development of premier sporting property in
the West. (406)575-2275 www.sxsllc.com
Vidmar Construction Inc. is a building company that
specializes in custom homes and remodels. We are proud
to have been in business since 1989. Our motto still holds
true: “Quality from start to finish”. (406) 585-7463
ASSOCIATES
Billion Auto Group
Boise Cascade
Centermark Industries, Inc.
DADCO Concrete Foundations, Inc. Thank you to all of
our General Contractors and Home owners for your sup-
port. We are looking forward to a great construction sea-
son in 2013. (406) 388-7531
*First American Title Company LLC
*First Interstate Bank
High Country Gifts & Engraving With over 26 years of
experience, we have become your most trusted local en-
graver. From name badges to wine flutes, we can engrave
all your special gifts. Fun gifts for everyone on your list!
*High Country Paving, Inc. (406) 388-9707
*Impact Drafting & Design Since 1997, Impact Drafting
has been “helping you put your dreams on paper!”™;
Thank you SWMBIA Members for your continued business
and support. (406) 522-5382 www.impactdrafting.com
John Castle Painting, Inc. (406) 570-5765
Measure Twice, Inc. (406) 581-2246
Montana Prefinish / Montana Paint, Inc.
*Pacific Steel & Recycling
Pilari Construction Management, Inc. (406) 570-7319
Sherwin Williams
*Stockman Bank
*Titan Rentals
Western Millwork, Inc.
AFFILIATES
Brett Tudsbury, Coldwell Banker RCI Realty
*Joyce Thompson, Keller Williams Montana Realty
*Denotes Renewing Members that donated the additional to the Montana
Building Industry Association (MBIA) Issues Fund and/or the SWMBIA Issues Fund. These voluntary contributions are used to pay for critical efforts to
educate the public about the consequences of proposed public & private policy
decision, regulations or legislation and provide support for appropriate public policy and legal issues. THANK YOU!
Renewing Members
We thank you for your continued support to the
9
Hey Builders! Submit a Project of the Month!
It’s easy and it’s FREE!
Projects are featured in the SWMBIA Newsletter AND the Bozeman Daily Chronicle’s AT HOME! Recognize your hard work & the craftsmanship
of SWMBIA Members!
SWMBIA Monday Morning Radio Show
SEEKING GUEST SPEAKERS! Join SWMBIA Leadership on
AM 1450 Radio
Monday Mornings.
Reserve your Monday Now! Share your expertise & tips with listeners!
Showcase a new product or service!
SWMBIA
Golf Tournament
Friday, June 21st
Bridger Creek Golf Course 2710 McIlhattan Road
$85 / Golfer Includes green fees, carts, complimentary beverage carts
& hot lunch after tourney courtesy of Kenyon Noble Lumber & Hardware
GREAT FOOD! GREAT FUN! GREAT PRIZES!
7:00AM CHECK-IN & BREAKFAST
8:30AM SHOTGUN START
SWMBIA & MBIA Sign up today!
Team Name _________________________________ Contact Name_________________Phone ________ Email ______________________________________ Address ____________________________________ ___________________________________________
Player #1 Name _______________________________ Handicap____ Player #2 Name _______________________________ Handicap____ Player #3 Name _______________________________ Handicap____ Player #4 Name _______________________________ Handicap____ *Single Player Name ___________________________ Handicap____
Sponsorships Available: HOLE-IN-ONE PRIZE SPONSOR $150 (Plus cost of Insurance Policy) Two available Be inventive—the sky’s the limit for these prizes; a new car? Vacation trip? Spa? You choose… Includes signage at tournament and area to display (if applicable) prize on green plus recognition at tournament & SWMBIA Newsletter.
MULLIGAN SPONSOR $400 Put your company name/logo into everyone’s pocket with this sponsorship. Supply golf balls with your company logo to golfers to provide a free shot (or replace a wild one) or pay the sponsor fee and SWMBIA will provide logo balls for you. Mulligans are sold to golfers at registra-tion.
PUTTING GREEN SPONSOR $250 x2 Put your company name/logo upfront and center at the area all seem to congregate to: the Putting Green.
DRIVING RANGE SPONSOR $250 x2 Prominently display your company name/logo on the driving range. Also includes recognition in SWMIBA Newsletter, Website and at the Event.
HOLE SPONSOR $175 / each Sponsor a Tee or Green with your Company name/logo prominently displayed on signage and provide a prize for various hole contests. Yes! I will supply a prize for being a HOLE SPONSOR (Description)______________________________________________
11
New Members
BUILDERS
Deerbrook Construction
Cory Benge
P.O. Box 10024
Bozeman MT 59719
(406) 551-2100
www.deerbrookconstruction.co
Heritage Builders- Bozeman
Greg Stratton & Tom Brown
8310 Gooch Hill Rd.
Bozeman, MT 59718
(406) 599-5603
Sponsored by Keith Fraser
McGough Construction Inc.
Steve McGough
PMB 140 2504 W. Main St. Ste 1
Bozeman MT 59718
(406) 579-4937
On Site Management, Inc.
Peter Belschwender
417 West Mendenhall
Bozeman, MT 59715
(406) 586-1500
www.onsitemanagementco.com
ASSOCIATES
Bozeman Kitchen and Bath
Sean Thornock
11 E. Main St. Suite B
Bozeman MT 59715
(406) 577-2049
Sponsored by: Allan Hathaway
*Elite Kubota, LLC
David Clevidence
310 Alaska Frontage Road
P.O. Box 327
Belgrade MT 59714
(406) 388-1505
Sponsored by Leif Sundeen
Mountain Sheet Metal
Cory Johnson
6693 Lynx Lane
Bozeman MT 59718
(406) 586-4007
Sponsored by Leif Sundeen
Penkal Painting, Inc.
Russell Penkal
407 Golden Trout Way
Bozeman MT 59715
(406) 388-7135
www.penkalpainting.com
Brought to you by
SWMBIA & MBIA
www.gallatinhomeexperts.com
Web Banner Advertising available! Call Dustin at MBIA (406) 442-4479 or Linda at
SWMBIA (406) 585-8181 to learn more!
This month’s deserving Member
of the Month is Beth Zeman.
Beth is SWMBIA Home Expo
Committee Chairperson and
Board member. Beth has been
recognized because she is
always willing to help out. She
has been recognized as
SWMBIA Affiliate Member of
the Year for good reason.
Beth is Branch Manager for
Security Title Company—Livingston and Security
Title Company Client Relations Manager.
Not only is Beth busy planning the SWMBIA Home
Expo, she is also involved in many other community
organizations, including Kiwanis Club of Livingston
(past President), Past-Chairperson for GAR Affiliates,
member of Park County Board of Realtors®, and is
Member of Bozeman, Livingston, and Big Sky
Chamber of Commerce.
Beth holds a Horticultural degree from Montana
State University and makes her home in Livingston
with husband, Seth and five year old Oliver and six
month old Eli.
Beth has spent countless hours organizing, calling,
planning and spending some anxiety planning the
Home Expo. We had record numbers this year, and
Beth’s dedication is definitely the reason for it.
When asked if there was anything she wanted to share
with the Membership, Beth, in her unending supply of
enthusiasm, shouted out “BOOK YOUR 2014 HOME
EXPO BOOTH TODAY!”
Thank you Beth!
Member of the Month
Beth Zeman
Security Title Co.
Economist’s Corner
13
A Tale of Two Households
Elliot Eisenberg, Ph.D.,
GraphsandLaughs, LLC
D uring the last year and especially
the last five or six months, the
economic data have been of two minds.
On one hand, household net worth is
way up, the stock market has been
setting new highs and the number of millionaires is at
9 million, just below where it was before the
recession. At the same time, we read that the amount
spent at restaurants, bars, and department stores
recently fell as households compensate for higher gas
prices and payroll tax increases by reining in
discretionary spending. Which is it? Is the economy
getting better or are households hunkering down?
Turns out, it’s both. Behind this seeming paradox is
the growing gulf between America’s wealthier
households and its poorer ones. And the past
recession has put this gap into bold relief.
While suffering during the Great Recession, wealthier
households, because they are more likely to own
equities and a home, have enjoyed the recent rise in
house prices and the stock market, as well as the
special year-end dividends that were timed to avoid
tax increases that went into effect the first of this year.
In addition, because they can borrow money at today’s
historically low rates, they are spending more on
vacations, cars and other high-end discretionary
purchases as their financial situation improves.
Moreover, over the last few years their incomes have
been rising, something the majority of the population
has not been experiencing.
By contrast, households in the bottom half of the
income distribution are having a tough time of it. The
combination of stagnant wages in the years before the
Great Recession, large job losses during the recession,
current high levels of unemployment, the dramatic
increase in those unemployed 12 months or more, high
gasoline prices and delayed income-tax refunds are
forcing these households to forgo many purchases. As
such, retailers that cater to lower and middle-income
Americans are feeling the pinch. Worse, the payroll
tax hike will probably take three or four months before
its impact is fully felt.
Fortunately, those in the top half of the income
distribution are doing well and they pack a lot of retail
punch. The top 20% of households account for 38%
of all spending while the top 50% of all households
account for 70% of all spending. By contrast, the
bottom quintile is responsible for a tad less than 9% of
all spending. And so far, higher income households
have been carrying the load, with spending most
recently rising at a month-over-month rate of 0.7%,
the best level since a 0.8% gain in September 2012.
Despite high-income households facing higher taxes
due to the expiration of the Bush tax cuts and
everyone facing the vagaries of the sequester, the
economy is not on the ropes. A diet of dirt-low
interest rates, a booming energy sector, and solid
improvement in the all-important cyclicals including
autos, big ticket items, business fixed investment, and
most importantly homebuilding, should translate into
increases in middle- and lower-class employment and
(hopefully) wages, and thus more household spending
among those doing relatively little of it now. Elliot Eisenberg, Ph.D. is President of GraphsandLaughs, LLC and can
be reached at [email protected]. His daily 70 word econom-
ics and policy blog can be seen at www.econ70.com.
Lower Operating Costs Mean New-Home Buyers Can Afford
More House
D uring New Homes Month in April, the National
Association of Home Builders (NAHB) is showing
home buyers why they can afford a higher-priced home—if
it’s new construction. Using data from the Census Bureau
and Department of Housing and Urban Development’s 2011
American Housing Survey, NAHB found that buyers can
purchase a more expensive newer home and achieve the
same annual operating costs as an older, existing home.
“Home buyers need to look beyond the initial sales price
when considering whether to buy new construction or an
existing home,” said NAHB Chairman Rick Judson, a home
builder from Charlotte, N.C. “They will find that with the
higher costs of operating an older home, they can often
afford to spend more to buy a new home and still have
annual operating costs that fit their budget.”
NAHB’s study first looked at how utility, maintenance,
property tax and insurance costs vary depending on the age
of the structure. It found that homes built before 1960 have
average maintenance costs of $564 a year, while a home
built after 2008 averages $241. Similarly, operating costs
average nearly 5 percent of the home’s value for pre-1960
structures, while they average less than 3 percent when the
home was built later than 2008.
The study then compared the first year after tax cost of
owning a home by the year the house was built, taking into
account the purchase price, mortgage payments, annual
operating costs and income tax savings. This data showed
that a buyer can afford to pay 23 percent more for a new
house than for one built before 1960 and still maintain the
same amount of first year annual costs.
While mortgage payments will be greater with the higher
purchase price of a newly-built home, the lower operating
costs mean the home buyer will have annual costs that are
about the same as if they’d bought a lesser-priced, older
home with a smaller mortgage payment and higher
operating expenses.
Other benefits of new homes include open space floorplans,
creative storage options and entertainment resources that
cater to modern lifestyles, as well as the safety consideration
that the structure was built and wired to modern codes and
standards.
“For a family working with a fixed annual budget,
new-construction homes offer outstanding comfort,
convenience and overall cost savings,” said Judson. “Put
that together with today’s near-record low interest rates and
competitive prices, and the time has never been better to buy
a new home.”
Home buyers can access home buying and home building
information and resources on NAHB’s website at
www.nahb.org/forconsumers.
14
Jim Christ • 406-388-4146
Home Expo
HOME EXPO PRIZE PASSPORT WINNERS: Danielle Devers of Belgrade won the $240 WOW Window Cleaning Package
Sharon Miller of Belgrade won the $400+ Pittsburgh Paint & accessories package from The Paint Factory
Marlie Loranz of Belgrade won the $200 Gift Card from Distinctive Lighting
Cody Hobbs of Bozeman won the $300 Tile Package from Bozeman Brick, Block & Tile
Jean Lundberg of Bozeman won the $300 Green Thumb Garden Giveaway from Kenyon Noble & Hardware
Dave Phillips of Belgrade won the $400 Glidden Paint & assessories package from The Paint Factory
Congratulations!
Many thanks to all our Sponsors for making this year’s Home Expo such a great success!
MAJOR SPONSORS
Kid’s Area Sponsor
Supporting Sponsors
Exhibitor Hospitality Room Sponsors
Kid’s Entertainment Sponsor Education Area Sponsor
Friday Night Social Sponsors
Playhouses on Parade Ticket Sponsors
16
Builder’s Tool Box Tips
Builders Who Offer Downloadable Brochures, Advertise Benefits of New
Homes Get More Business from Their Web Sites
R esults from surveys on the use of information tech-
nology by builders and remodelers were discussed
in a recent blog. The same surveys also gathered some
information about company web sites. Results show that
over 85 percent of both single-family builders and remod-
elers have web sites, and nearly all the sites contain com-
pany history, contact information and pictures of jobs.
In addition, web sites of large builders (those with at least
25 starts) also usually provide downloadable brochures
and virtual tours, and to advertise the benefits of buying a
new home.
It turns out that larger builders generate a larger share of
their business from their web sites—35 percent, compared
to only 10 or 12 percent for remodelers or smaller single-
family builders. Could smaller builders get more custom-
ers from their web sites by expanding what’s offered on
the sites?
Looking at the smaller builders in more detail, the answer
appears to be yes. Builders with fewer than 25 starts, who
provide neither downloadable brochures nor material on
the benefits of buying a new home on their web sites, get
only 7 percent of their potential buyers from the site. But
the share rises to 27 percent for small builders who pro-
vide both downloadable brochures and material on the
benefit of buying a new home.
So it really seems that many small builders could signifi-
cantly increase the share of business they get from their
web sites by providing 1) downloadable brochures, and 2)
information on the value of buying new homes on their
sites.
Material from NAHB on the benefits of buying a new
home includes the piece on lower operating costs for new
homes and the various consumer flyers and guides in the
New Homes Month Toolkit, which will be updated and
expanded in conjunction with the next New Homes
Month, which occurs in April.
Among remodelers, the results are not quite as dramatic,
but still significant. Remodelers who provide download-
able brochures generate twice as many customers from
their sites—18 percent—compared to 9 percent for those
who don’t.
Further discussion and more detail are contained in the
March 2012 Special Study in HousingEconomics.com.
Apex Group, Inc. ............................................ 16 Big Sky Insulation’s, Inc. ................................. 14 First Interstate Bank ....................................... 18 First Security Bank .......................................... 11 First West Insurance ....................................... 7 Knife River ..................................................... 5 Little Stinkers Septic Service ............................ 10 Montana Climate Control ................................. 1 Northwestern Energy ...................................... 3 Stockman Bank .............................................. 9 TMC, Inc. Sand & Gravel ................................. 19
Tractor & Equipment Co. “The Cat Rental Store” ............ 6
Your Company Name Here! Monthly Newsletter Advertising
Full Page $95
Half Page $75 Third Page $65
Quarter Page $55
Advertiser’s Index & SWMBIA Leadership
2013 COMMITTEES EXECUTIVE Chairperson/President—Nathan Albrecht First Vice President—Brian Popiel
Second Vice President— Allan Hathaway
Associate Vice President—Bill Fiedler
Treasurer—Tylene Vitt
MEMBERSHIP Chairperson—Leif Sundeen
Committee Members: EJ Porth, Amber Guth, Cece Harris
GOVERNMENT AFFAIRS Chairperson—Brian Popiel Clair Daines—C.I.T.F.
NATIONAL DIRECTORS Senior Life Director—Clair Daines
Life Directors: Tim Dean, Jim Syth, Frank Armknecht, Gene Graf III,
Richard Smith Directors: Nathan Albrecht, Bill Fiedler
Alternates: Rob Evans
STATE DIRECTORS Life Directors—Tim Dean, Eugene Graf III, Frank Armknecht , Richard
Smith
Appointed: Nathan Albrecht, Brian Popiel, Allan Hathaway, Bill Fiedler,
Jeri Norris, Rob Evans
GOLF TOURNAMENT Chairperson—Jake Lewendal
GREEN BUILDING Chairperson—Anders Lewendal
HOME SHOW Chairperson—Beth Zeman
Committee Members: Nathan Albrecht, Ashley Ogle, Kami Gillespie,
Rob Evans, Julie Schumacher, Chris Alstrin,
PLAYHOUSES ON PARADE Chairperson—Crystal Warden
Committee Members: Jeremiah Hillier, Cherie Albrecht, Gina Marshall
PUBLIC RELATIONS Chairperson—Darryl Seymour
PARADE OF HOMES
Chairperson—Darryl Seymour
Support Crew—Tina Altimus
Kick-Off Party— Ryan Ballenger, Darryl Seymour, Shawn Gaugler,
Heidi Summit , Holly Parker, VIP Tour—Karl Botsford, Pam Spillane, Holly Parker,
Ticket Distribution—Shawn Gaugler, Kathleen Vaughn,
Advertising—Darryl Seymour, Nathan Albrecht
Sign Committee—Holly Parker
Inspection Committee-JD Engle, David Andreassi, Darryl Seymour
PAST PRESIDENTS COUNCIL Chairperson— Rob Evans
This Monthly Newsletter is a Publication of the
Southwest Montana Building Industry Association
Linda Revenaugh, Executive Officer
PHONE (406) 585-8181 FAX (406) 585-7530
Web Site: www.swmbia.org
Email: [email protected]
This monthly newsletter is published for the benefit of our association
members. We welcome Contributions of articles about our industry and our members. Address all correspondence to:
SWMBIA 1716 W. Main Street Suite 8-G • Bozeman MT 59715
Nathan Albrecht Chairman of the Board
Brian Popiel 1st Vice Chairman
Allan Hathaway 2nd Vice Chairman
Bill Fiedler Associate Vice Chairman
Tylene Vitt Treasurer
Rob Evans Immediate Past Chairman
ASSOCIATE BOARD MEMBERS
Jeri Norris Two Year Term—2013
Darryl Seymour Two Year Term—2014
Mike Thompson Two Year Term—2014
Beth Zeman Two Year Term—2013
BUILDER BOARD MEMBERS
Jake Lewendal One Year Term—2014
Tim Rote Two Year Term—2014
Mike Stewart Two Year Term—2013
LIFE DIRECTOR MEMBERS
Gene Graf Clair W. Daines Tim Dean
Jim Syth Frank Armknecht Richard Smith
BOARD OF DIRECTORS
17
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conditions within his sphere.” ~Theodore Roosevelt
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Southwest Montana Building Industry Association
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Southwest Montana Building Industry Association 1716 W. Main St. Ste 8G Bozeman, Montana 59715 www.swmbia.org
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Membership Meeting & Dinner
Wednesday, April 17th 6pm Cocktails 7pm Dinner & Program
Santa Fe Reds, Downtown
$20/Each, Reservations Please!
585-8181
“New Health Care changes and how they affect you and your business”
By Pat Harlin Vice President—Employee Benefits Consultant
PayneWest Insurance Inc. Menu:
Tender pork sirloins sided with mashed potatoes, baked beans, green beans, potato salad, and mixed greens salad
with toppings and dressings. Dinner rolls are included.