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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 17 th 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 PresidentEmployee Benefits Consultant PayneWest Insurance Inc.

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Page 1: SWMBIA Newsletter April 2013

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.

Page 2: SWMBIA Newsletter April 2013

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

Page 3: SWMBIA Newsletter April 2013

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

Page 4: SWMBIA Newsletter April 2013

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

Page 5: SWMBIA Newsletter April 2013

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

Page 6: SWMBIA Newsletter April 2013

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

Page 7: SWMBIA Newsletter April 2013

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!

Page 8: SWMBIA Newsletter April 2013

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

Page 9: SWMBIA Newsletter April 2013

8 Funny Name Great Service! Locally Licensed & Insured

Page 10: SWMBIA Newsletter April 2013

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!

Page 11: SWMBIA Newsletter April 2013

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)______________________________________________

Page 12: SWMBIA Newsletter April 2013

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!

Page 13: SWMBIA Newsletter April 2013

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.

Page 14: SWMBIA Newsletter April 2013

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.

Page 15: SWMBIA Newsletter April 2013

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

Page 16: SWMBIA Newsletter April 2013

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

Page 17: SWMBIA Newsletter April 2013

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.

Page 18: SWMBIA Newsletter April 2013

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

“Every man owes a part of his time and money to the business or industry in which he is engaged. No man has a moral right to withhold his support from an organization that is striving to improve

conditions within his sphere.” ~Theodore Roosevelt

Affordable Rates

Targeted Audience

Page 19: SWMBIA Newsletter April 2013
Page 20: SWMBIA Newsletter April 2013

Southwest Montana Building Industry Association

WWW.SWMBIA.ORG

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.