Remodeling Market Might Ease Off the Gas

A recovering economy is great news for the majority of Americans, though for many remodelers, it is a sign they might need to adjust the way they do business … again.

The economic downturn forced remodelers to adopt new strategies to survive in a changing market — strategies that generally led to sustained profit growth.

The newly released 2017 Remodelers’ Cost of Doing Business Study shows that the average gross profit margin for remodelers increased from 26.8% to 28.9% between 2011 and 2015. Average net profit margin increased as well, rising from 3.0% to 5.3% during that same period.

Now that spending is back up and consumers are increasingly interested in buying new (or newer) homes, remodeling expenditures are likely to grow at a more gradual pace than in recent years, according to comments made in January 2017 by National Association of Home Builders economist Paul Emrath during a press conference at the International Builders’ Show.

That means remodelers will have to identify new ways to maintain their share of the market.

“Pacific Northwest consumers are tech-savvy and community-minded,” said National Association of Home Builders  Remodelers member Joseph Irons, CAPS, CGP, GMR, a remodeler from Shoreline, Wash. “We’ve reduced costs while growing our business by focusing on social media outreach and community service over traditional advertising.”

The Remodelers’ Cost of Doing Business Study assesses the growth, viability, and demographics of the remodeling industry. The 2017 study was conducted through an online survey sent out to 5,700 residential remodeling/rehabilitation firms across the country in the spring of 2016.

The full study is available for purchase at builderbooks.com. National Association of Home Builders Remodelers members are eligible for a 20% discount off the member price.

Survey Says: Larger Remodeling Projects Trending Up

Whole house remodels and additions are regaining market share, according to a new survey of remodelers released May 2nd to kick off May’s National Home Remodeling Month. Released by National Association of Home Builders Remodelers, the survey revealed the most common projects in 2016 compared to results of previous surveys.

“While bathroom and kitchen remodels remain the most common renovations, basements, whole-house remodels and both large- and small-scale additions are returning to levels not seen since prior to the downturn,” said 2016 National Association of Home Builders Remodelers Chair Tim Shigley, CAPS, CGP, GMB, GMR.

In the survey, remodelers reported that the following projects were more common than in 2013:
Whole house remodels, which increased by 10%

• Room additions, 12%
• Finished basements, 8%
• Bathroom additions, 7%

Bathrooms topped the list of most common remodeling projects for the fifth time since 2010. Eighty-one percent of remodelers reported that bathrooms were a common remodeling job for their companies, while 79% reported the same for kitchen remodels. Window and door replacements decreased to 36% from 45% in 2014.

Don't Lose Money--Submit Your 2015 Claims to Member Rebate and Save!

DEADLINE EXTENDED:
The 4th Quarter deadline for rebate claim submission has been extended to Friday, March 4th, 2016! This provides all Builder and Remodeler Members an extra two weeks to claim completed residential addresses from July 1, 2015 through December 31, 2015. Builder & remodeler members can submit a claim for any completed residential addresses from July – December 2015 that used any of the Member Rebate Program's 50+ Manufacturer brands in order to save money. This is the LAST Chance to claim rebates on work completed in 2015!

Why should you?

Participating members earned an average of $1,010 in rebates in 2014, and all members of the Home Builders Association of Greenville are eligible to participate. Over 70% of 2014 participants received more than their annual association dues in rebates.

How can you?

1. Register here

2. Submit a rebate Claim

3. Receive a rebate check

Need more help? Here are some helpful links:
Builder Testimonials: http://bit.ly/1HQGSeF
Webinar Schedule: www.HBArebates.com/webinar.html
Member Rebate Program Tutorial Videos: www.HBArebates.com/tutorial.html
Member Rebate Program Claims Process: www.HBArebates.com/claimsprocess.html

EPA Makes Changes to Lead-Safe Re-certification Process

Remodelers who are certified by the Environmental Protection Agency (EPA) to work on homes that may contain lead paint under the Lead: Renovation, Repair and Painting (RRP) rule now have the option to complete refresher training online, according to an EPA announcement.

However, EPA re-certifications obtained via an online refresher course will be valid for only three years – versus five years for hands-on training courses – and can only be exercised every other re-certification cycle.

“As a longtime advocate for a simplified re-certification process, National Association of Home Builders Remodelers Council appreciates that EPA’s changes provide some flexibility, but the limited and convoluted parameters of the online training option are unnecessarily complicated and could affect the number of renovators who opt to become re-certified,” said NAHB Remodelers Chair Tim Shigley, CGR, CAPS, CGP, GMB, GMR, a remodeler from Wichita, Kan.

“Whether they choose to refresh their training online or in person, with the March 31 re-certification deadline looming for over 100,000 remodelers, and thousands more later in 2016 and 2017, remodelers are left with precious little time to meet their re-certification obligations.”

Additionally, certified renovators who were grandfathered in under a HUD or EPA lead-based paint training course before the RRP rule was adopted must attend a refresher course with a hands-on component. The rule also made several streamlining and clarifying changes to RRP provisions that apply to training providers.

EPA’s changes only apply to those states where EPA administers the program. The 14 states that administer their own programs will have to take legislative or regulatory action to adopt the online refresher course option.

The White House Office of Management and Budget released the final rule to EPA on Jan. 21.

For online or in-person refresher training, remodelers should contact their Home Builders Association of Greenville, or they can find a course on EPA’s website. More information on how to determine specific deadlines can be found using “What You Need to Know about EPA Lead-Safe Re-certification.”

The Deadline for the EPA Lead Paint-Re-certification Extension is Coming Up

The issue: An estimated 380,000 remodelers and others who must re-up their Lead-Safe Certifications from the Environmental Protection Agency to comply with its Lead: Renovation, Repair and Painting (LRRP) rule are staring at some important deadlines.

NAHB Remodelers Chairman Robert Criner met with White House officials Monday to, again, plead the industry’s case for a simplified re-certification process for NAHB members and others who do work in homes with lead paint.

March 31, 2016, marks the end of an unprecedented extension granted last year for some of these remodelers. It’s the deadline by which those remodelers and other contractors who received their EPA Lead-Safe Certified Renovator certifications on or before March 31, 2010, must complete a refresher training course to maintain their status.

After March 31, 2016, the clock resumes ticking for the second phase of renovators, one day at a time. Those who became certified between April 1, 2010, and March 31, 2011, must be re-certified within six years from the date they completed the original training course.

The extension did not apply to renovators operating under one of the 14 state-delegated programs.

Complicating matters is the uncertainty of regulatory action regarding re-certification training requirements.

A draft final rule – proposed by the EPA and supported by your Home Builders Association – to remove the hands-on training requirement is pending review by the White House Office of Management and Budget (OMB). When Criner met with OMB officials Jan. 11 in Washington, D.C., he urged them to expedite review and finalization of this common-sense improvement to the LRRP rule.

Without this regulatory action, the first wave of remodelers who received their initial certification on or before March 31, 2010, must renew their EPA Lead-Safe Certified Renovator certifications with in-person refresher training by March 31, 2016.

Your Home Builders Association will inform members immediately when the agency issues its final regulation on re-certification training.

If you were certified by March 31, 2010, or live in one of 14 delegated states that have their own unique set of rules, use and share this map to help you through the lead paint regulatory maze.

EPA Ramps Up Lead Paint Inspections

If you are a builder or remodeler, this information from NAHB regarding the EPA's crackdown on lead paint is crucial for your business.

Some regional offices of the Environmental Protection Agency (EPA) are changing the way they approach lead-safe work practice inspections, which could be a factor in the rising number of companies fined for violating EPA regulations.

EPA’s approach to lead-safe work practice inspections varies by region. Region 7 (Midwest) is the latest to employ a more targeted approach, having recently increased its focus on the St. Louis, Mo., area.

The strategy mirrors what was done during the summer of 2014 in EPA Region 1 (New England), which concentrated its efforts primarily in New Haven, Conn. EPA says the strategy led to improved compliance and awareness of the Lead-based Paint Renovation, Repair, and Painting (RRP) regulations. Out of the 65 inspections conducted in New Haven during that period, EPA issued enforcement actions against six companies.

“After seeing what was done in Region 1, we saw an opportunity for us to not only educate the remodeler community, but also the general public to help drive demand for the remodelers who are certified to do the job the right way,” said Jamie Green, chief of the toxics and pesticides branch for Region 7.

EPA issued a press release and conducted radio interviews when the initiative kicked off last August. Since then, 26 inspections have been conducted in St. Louis to evaluate lead-safe work practices.

Inspectors also began conducting “compliance assistance visits,” reaching approximately 200 remodelers throughout the city. The visits were done at times when regulated work was not being done, so rather than carry out an inspection, the inspectors would explain the RRP regulations, deliver information packets and answer questions.

Projects that receive full inspections are identified in a variety of ways, but primarily as a result of tips and complaints submitted by the general public, as well as from EPA-lead searches of publicly available information.

Still, many are conducted on an ad-hoc basis, according to Green, who says inspectors will often drop in on a project while traveling to and from predetermined inspections.

Next month, Region 7 will launch an advertising campaign to raise awareness among St. Louis-area consumers about the risks of lead exposure.

“The ultimate goal here is to protect children’s health,” Green said. “There are a lot of remodelers out there who are doing it right, so a large piece of this is to make sure we’re reaching out to consumers about the value of hiring those certified renovators.”

Green says it’s too early to determine the impact of the new, targeted approach. However, the focus on St. Louis will continue through the end of the year, when Green will assess the initiative’s effectiveness and decide if similar measures would be worthwhile in other parts of the region.

Nationwide, the number of enforcement actions against businesses that violated the RRP regulation increased in 2015. Seventy-five companies received fines of $2,000 to more than $50,000, mostly for violating work practice standards and/or failing to obtain proper training and certification regarding lead-safe work practices.

For more information about how to comply with the RRP rule, visit nahb.org or visit the HBA of Greenville at hbaofgreenville.com.

Member Rebate Program

ATTENTION BUILDERS AND REMODELERS: If you have changed your mailing address since you have signed up with the program, please send us an email of your current/updated mailing address. All emails can be sent to Josh@HBArebates.com We look forward to writing your next rebate check!

Judges needed for the HBA of Greater Columbia Remodeling Awards

The HBA of Columbia is looking for judges for their Remodeling Awards. They are looking for builders, remodelers, or designers to help judge, though any member is welcome. The judging will be Tuesday, May 20th. starting at 9 a.m. and conclude around 2 or 3 p.m. and lunch will be provided.

For more information or to help out please contact Bin Wilcenski at the HBA of Greater Columbia
bin@columbiabuilders.com

(803) 256-6238

www.columbiabuilders.com

FREE three day exhibit hall admission for the 2012 Remodelling Show

The annual Remodeling Show is a national trade show, educational conference, and networking event. This year the event is held October 9th-12th at the Baltimore Convention Center in Baltimore, Maryland. The show will feature installation clinics, interactive workshops, and exhibitor led product presentations among hundreds of exhibit booths and is hosted side by side with Deck Expo.
The show kicks off with Business Skills Boot Camps for small to mid-sized remodeling firms and will hold a Remodelers Gala held on October 11th from 6:30 p.m. to 10:30 p.m.
For complete details on classes and many other social functions at the show visit the show website by clicking here and remember to use code NAHB for a free three day exhibit hall admission.