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ACTION NEWS MARCH, 2005

President's Messageby BILL BADGER, SR,Badger Construction, Inc.

Presorted StandardU.S. Postage

PAIDPermit No. 1848

Evansville, IN

See PRESIDENT'S, page 25

Affiliated with:

ACTION NEWSThe Official Publication of the

Southwestern Indiana Builders Association2175 N. Cullen Ave Evansville, IN 47715

SIBA DATESMarch 8th - 5:30 pm, Holiday Inn SIBA M'ship Meeting........pg 5March 22nd - 4:30 pm, Ferguson Ent. Remodelors' Council Mtg...pg 6March 31st - 4:30 pm, SIBA Office Scholarship Deadling..........pg 5April 1st - SIBA Office, 8:30 am - 4:30 pm Parade Book Ad Deadline

MARCH HIGHLIGHTS:

~ 812-479-6026 ~

MARCH, 2005VOL. 28, NO. 3

YOU ARE NOT ALONE AND WE DONOT BITE! We as homebuilders,remodelers and associates like to think thatwe have all the answers to running abusiness. However, most of us facechallenges daily and then we realize that wedo not have all the answers. Remember thatyou are not alone.

SIBA has a vast assortment of memberswho have a wealth of valuable knowledge.They have encountered similar challengesalong the way and are ready and willing tohelp - all you have to do is ask. Speakingwith other members at monthly meetings,code classes, out on job sites or calling them

"I am a strong believer in luckand I find the harder I work the

more I have of it." - Benjamin Franklin

84 PARADEENTRIES!!!!!Morton Marcus to Address SIBA

See pages 9, 16, 17 and insert 4 for details!

See page 5 for details.

SIBA Scholarship.........................................................pg 5

Energy Seminar............................................................pg 9

Home Builders Outlook.............................................pg 10

New Members, New Faces..........................................pg 21

Facts, Figures and Trends.........................................pg 24

MARCH, 2005 ACTION NEWS

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2005 OFFICERS

PresidentBill Badger, Sr., Badger Construction

Vice PresidentBill Kattmann, Kattmann Construction

TreasurerKevin Vickrey, Evansville Teachers FCU

SecretaryJohn Graupner, Lowe's Home Center

Immediate Past PresidentMike Martyn, Martyn Custom Homes

Executive DirectorBill Pedtke

STATE DIRECTORSBill Badger, Sr.Alan BosmaMike MartynJohn PeningerSandy Smith Jones

2005 COMMITTEE CHAIRSMEMBERSHIPMike Zehner, Zehner Development

REMODELORS' COUNCILDamien Scheessele, Scheessele & Sons Const.

PARADEBill Kattmann, Kattmann ContstructionDarren Spainhoward, O,ld National Bank

GOLF OUTINGSDanny Davis, Davis Homes

LEGAL ADVISORShannon Frank, McCray Lavallo Frank & Klingler

CHRISTMAS DANCEJennifer Mitchell, Windows of Evansville

CODESRon Dauby, Core Contractors, Inc.Dave McClary, River Valley Homes

POLITICAL ACTIONCarl Shepherd, Shepherd Construction

SCHOLARSHIPBill Kattman, Kattmann Construction, Inc.

BOARD OF DIRECTORS

BUILDERSShane ClementsJohn ElpersJeff HappeJill HaydenGreg KuhlmanDave McClaryDavid Rahman

ACTION NEWS is the Official Publication of the Southwestern Indiana Builders AssociationAdvertising Information available upon request.

EXECUTIVE OFFICES

2175 N. Cullen AvenueEvansville, Indiana 47715

Phone: 812-479-6026Fax: 812-479-6340

Office Hours:8:30 a.m. to 4:30 p.m.

Website:www.SIBAonline.org

SIBA LIFE DIRECTOR: W.C. "Bud" Bussing

ASSOCIATESBruce Biggerstaff, Sr.Byron CooperMike FrankLarry NorthenorDarren SpainhowardTed Ubelhor

REMODELERSDamien ScheesseleKen Stevens

SIBA STAFFEXECUTIVE DIRECTORBill PedtkeE-mail: [email protected]

ASSOCIATION SERVICES DIRECTORShannon French HoltE-mail: [email protected]

ADMINISTRATIVE ASSISTANTNancy MaidenE-mail: [email protected]

Darrell SpearsBrad SterchiTed UbelhorMike Zehner

IBA LIFE DIRECTORS*W.C.BussingRon DaubyBob Hatfield*Steve Heidorn

ACTION NEWS2005 DEADLINES

RATES

SPECS

Issue Deadline

January December 17February January 14March February 11April March 11May April 15June May 13July June 13August July 17September August 12October September 16November October 14December November 11

Ad Size Width Height

1/9-Page 2 1/2" x 3 1/4"1/2-Page 7 1/2" x 4 3/4"Full Page 7 1/2" x 9 3/4"Insert 7 1/2" x 9 3/4"

Size 1X 3X 6X 12X

Ninth $27 $80 $160 $320Half $54 $160 $320 $640Full $107 $320 $640 $1280Insert $187 $560 $1120 $2240

* denotes Past State President

The information provided in this publicationis for informational purposes only.

Due to complexities of applicable building codes,construction applications, and facts specific to each situation,

individuals should consult with a qualified contractorregarding specific construction needs or concerns.

NATIONAL DIRECTORSCarl Shepherd and Bill Badger, Sr.

Larry KochDamien ScheesseleDavid Schroeder*Carl Shepherd


ThePedtke

Perspective

byBill Pedtke

IF YOU MISSED OUR FEBRUARY MEETING,YOU MISSED A LOT!

Our program speaker was ShannonFrank, and she did a wonderful job reviewingsome key legal points for all SIBA members.Probably SIBA members picked upthousands of dollars in legal advice, themost of which was Shannon’s pleas to SIBAmembers to have protection throughcontracts and agreements. As the sayinggoes, “an ounce of prevention is worth morethan a pound of remedy”.

The presentation made to a crowd ofmore than 45 different building companieswas good information. Great information!But it wasn’t necessarily new information.Builders protecting themselves fromunreasonable regulations, customers, andother business factors has been a smart ideafor decades.

The Builders Association is the onlyadvocate for businesses in or related to thehome building industry. That’s why someof what was presented corresponded withsome of the association’s achievements.Some of those good ideas that were broughtto everyone’s attention have turned intolaws to provide some protection to homebuilding. And those laws were passed withgreat work by the Builders Association.

In her presentation, Shannon mentionedseveral of the accomplishments of theBuilders Association, and described themas protections to the home builder andremodeler.

2-2-4-10. Sound familiar? It should. Itwas made clear this law does notautomatically apply to home building. Infact there are several specific steps to takebefore one qualifies to waive their impliedwarranty for a new home. Nevertheless, thislaw has proven to be incredibly valuable inthe preservation of small businesses knownas home building companies.

The Builders Association caused to bepassed the law that restricts the statute oflimitations for builders to ten years. Canyou imagine the impact of not having thislaw? Builders would be on the hook –literally forever!

Shannon also covered the recentlyenacted law often referred to as the “Rightto Cure” law. If you think this one doesn’tmake much difference to your company –think again. And this time – include yourgeneral liability insurance agent in thediscussion. Across the nation this type oflaw is making the difference between inbusiness – or gone outta business!

Even the building code was mentionedat SIBA’s Mardi Gras event. The BuildingCode? Contractors and suppliers deal withcode items everyday. I’m beginning to beconvinced the individuals in ourorganization who give their time and energyfor the building code give the most. Theircontributions benefit everyone with aconstruction business. And the hours areincredible.

The building code is attacked fromcountless angles. The Builders Associationstands up to those attacks to protect a safeand affordable minimum building code. Thethings people dream up to have included inthe code are unbelievable! Your BuildersAssociation is the only organization thatworks to defend non-essential items frombeing added to the cost of a new orremodeled home. After scouring hundreds,if not thousands, of amendment proposals,there are some bad ideas that get into thecode. But the Builders Association is themost effective weapon your business hasto keep the code your friend for affordablehousing.

The Builders Association also causedto be enacted legislation for a single uniformsingle family building code. Can youimagine the headaches caused by an entirelydifferent set of building codes when youcross from one county to the next? WeHoosiers can make contractors from otherstates almost salivate when we describe ouruniform building code. Believe it, they’reenvious!

February attendees also heard that 100of the 128 builder members are signed ontothe Quality Assurance Builder Standards(QABS). And they’re working! Builders are

reporting fewer call-backs, and moreprotection from unreasonable customers.Along with several laws passed, thisprogram goes a long way to give protectionto the builder.

I think one of SIBA’s Past Presidentssaid it best when he uttered the phrase, “TheBuilders Association is the ONLYorganization that is going to stand up forthe home builder’s interests.”

WARRICKHABITAT NEEDS

VOLUNTEERSThe Habitat Home Store needs

volunteers to pick up donated items. Theseitems will be sold at the Home Store to raisemoney for Habitat for Humanity of WarrickCounty.

Some of the items are: Freezer,Dishwashers, Gas Stove, Microwave,Ceiling Fans, Mirror, Refrigerator, Washer& Dryer Set, Stove and Dishwasher, 4Televisions, 3 Toilets, 2 Sinks, 2 Doors andCabinets.

If you would be able to help, please callTrena Van Bibber, Public RelationsCoordinator, at 897-3404 during office ours,or 760-5781 anytime.

A PLAN STAMPED?The Builders Association usually works

to prevent the requirement to hire anengineer for the general purpose of buildingor remodeling a home. However, there areoccasions whereby an engineer’s work isneeded for a commercial structure.Sometimes an engineer’s work can help abuilder get out of a jam in order to complywith the building code.

So however rarely, a professionalengineer’s seal and stamp on a solution to asticky situation can come in very handy.But it’s not that easy.

Engineers are often asked to review andto stamp plans that were drawn by a client.However, Indiana’s Board of Registrationfor Professional Engineers are making it clear

See PLAN, page 9


2005 MEMBERSHIP TOTALSAs of: 12/31/04 1/31/05Builders 119 125Associates 265 281Total 384 406 Y-T-D Net Growth: 5.7% Annualized Retention: 86.6%

Total jobs represented: 17,411!

Next Membership Meeting:

MARCH 8th

@ Holiday Inn, Airport(US 41 & Lynch Rd.)

"A Smoke-Free Environment"

5:30 p.m.$17 with reservation

($22 for walk-ins)~ RSVP ~

479-6026~PROGRAM ~

Morton Marcus, Economist~ SPONSORS ~

Lensing Wholesale, Inc.,VECTREN,

Carpets Unlimited Flooring

SIBA SCHOLARSHIPMAR 31st DEADLINE

The SIBA Scholarship was created manyyears ago by the Board of Directors to assiststudents obtaining higher education for thepurpose of entering the building industry.Since then, SIBA has opened the awards toall students, regardless of the involvementin the construction industry. Thescholarship committee, chaired by BillKattmann, Kattmann Construction, looks atacademic achievement, extra curricularactivities and relationship to the BuildersAssociation.

Applications and guidelines for theSIBA scholarships are available at the SIBAoffice. The deadline for returning theapplication and all letters ofrecommendations to the SIBA office isMarch 31, 2005. Call the SIBA office formore details – 479-6026.

APRIL 15-16-17

ECONOMISTMARCUS TO

ADDRESS SIBA2-10 Home Buyers Warranty

A-1 Guttering, Inc.Ambrose Construction, Inc.American Seal Coaters, Inc.

Aqua Leisure PoolsBarrington Development Group

Bender Custom Homes, Inc.Brackett Heating & A/C

BRG HomesDavis Homes

Farm Credit ServicesGabe Mehringer Plumbing, Inc.Goodman Concrete Walls, Inc.

Hoosier Tile & MarbleRobert Jackson Construction

Lea Matthews Furniture & Int.MCF Construction

R.A. McGillem Custom HomesMidwest Telecom Commun.

Nutec Supply SouthPaint Distributors, Inc.

Pasco Painting, Inc.Pichon Construction

PPWRick’s Rain Irrigation Inc.Schelhorn Builders, Inc.

Schumacher Custom HomesSell 4 Free Welsh Realty Corp.

Seward SalesShively & Associates

Ken Stevens, F.C. TuckerStil Studio

Superior Deck & Fence Co.Tony The Tiler

Unclaimed Freight Carpet OneMike Williams Gar.Doors/Openers

Need a bid? Check your SIBA Directory first!

Up For Renewal...

These members are up for renewal inMarch. If you see them, offer a friendly

reminder to renew!

SIBA ispleased theMarch 8m e e t i n gspeaker isMorton J.M a r c u s ,D i r e c t o rEmeritus of theI n d i a n aB u s i n e s sR e s e a r c hCenter at theKelley Schoolof Business, Indiana University. Marcus,retired from the University in November2003, is an academic researcher who speaksto dozens of business groups annually.

Marcus’s qualifications on business areundeniable. He was a faculty member for 33years at one of the nation’s top businessschools, researching changes in theeconomy and population of Indiana, theMidwest, and the nation. Marcus servedas the Governor’s liaison to the U.S. Bureauof the Census, 1979 to 2003.

Marcus has been a columnist since 1990,and his column is published in more than 30newspapers each week. He authoredTightrope to Tomorrow, a book aboutpensions, productivity, and publiceducation. He is an occasional guest onthe PBS News Hour with Jim Lehrer.

The March meeting is the second of fourthat count toward Parade Builder rebates.Reservations are required, and can be madeby calling the SIBA office at 812-479-6026.The meeting begins with Social Hour at 5:30p.m. and dinner is served at 6:30 p.m. at theHoliday Inn (US 41 and Lynch Roads).


2005 OfficersChairman: Damien Scheessele

Vice Chairman: Larry KochSecretary/Treasurer: Mike Freeman

RC ROSTER53 Members!

REMODELERSBosma ConstructionCore Contractors, Inc.Creative InteriorsDunn Building Services, Inc.Fest Construction, Inc.Happe & Sons ConstructionHeidorn Construction, Inc.HomePros CorporationHomes by John PeningerJD's ConstructionKoch Construction Inc.Martin Brothers & Co., Inc.MCF ConstructionNurrenbern ConstructionPopham Construction Co.S.C. Terry DesignsSandy Smith Builder, Inc.Scheessele & Sons ConstructionShepherd Construction, Inc.Daniel E. Temme ArchitectTri-State Restoration Contractors

ASSOCIATE MEMBERSA.B. White & Son, Inc.Allied Building ProductsAll-Weather Products, Inc.American WholesalersBenthall Bros IncChampion WindowsElectric 2000, Inc.Evansville Tile DistributorsEvansville WinnelsonFifth Third BankGabe Mehringer PlumbingICI Paints, Inc.Indiana Wholesalers Inc.K-I Lumber & Building MaterialsKen Stevens, F.C. Tucker Emge RealtorsKight Lumber Co., Inc.Kitchen InteriorsKoressel Glass CompanyLance Cabinet ShopLensing Wholesale Inc.Light ConceptsLouisville Tile Distrs. Inc.Michael Gourley & SonsOld National BankPaint ‘N Stuff, Inc.PPG / Porter PaintsScholz Drywall & Interiors, Inc.Sears Contract SalesShelter Distribution (West Roofing)Sherwin WilliamsSun Windows, Inc.Windows of Evansville

REMODELORS'COUNCIL

NEXT MEETINGTUESDAY,MARCH 22

4:30 p.m. @ FERGUSONENTERPRISES, INC.

(621 W. Morgan Avenue)

SURVEY FINDS CONTRACTORS OFTENUNDERESTIMATE EXPENSES

Contractors often short-changethemselves and end up putting theirbusinesses on the line by underestimatingjobs, according to a survey by IntuitConstruction Business Solutions. Theresults contradict the unfair reputation forover-billing that saddle contactorssometimes.

Half of the Intuit survey respondentssaid they often omit general conditioncosts from their job estimates. Theseomissions — which include supervision,phone calls and temporary power — resultin lower revenue and gross profit. Mostrespondents, however, recognized theproblem.

When asked about the areas of theirbusiness most needing improvement, 65%of the respondents cited greater jobprofitability and 57% said more accurateestimating.

More than 500 residential andcommercial contractors and subcontractorswere surveyed for Intuit by the independentresearch firm Decipher. The results wereannounced during the InternationalBuilders’ Show in Orlando, Fla. last month.

“Business growth is not simply abouthiring more employees and winning morejobs,” says Carol Novello, president ofIntuit Construction Business Solutions.“Success in today’s unpredictableeconomy depends on uncovering costlyinefficiencies and new revenueopportunities. An important first step is tobill your expenses fully and fairly.”

Scheduling and Managing Labor Is theMost Frustrating Aspect of Business

Asked to name the most frustratingaspect of managing a contractingbusiness, 50% of the survey respondentscited scheduling labor and managing workcrew productivity. Almost as manyrespondents said hiring quality employeeswas their greatest challenge.

Despite obstacles in managing theirbusinesses, the survey respondentsestimated that their current gross profitabilityper job was 15.5%. They also anticipate 12%growth over the next five years.

Interest Rates and Healthy EconomyDrive Growth

Not surprisingly, most said the health ofthe economy and interest rates would havean effect on their success. Seventy-twopercent of contractors consider interest ratesand the economy as the key factors drivingconstruction industry growth. To meetgrowth projections, 66% of respondentssaid they would hire additional fieldemployees.

One cause for optimism among newcompanies is evidence that the road getssmoother with time.

Builders with annual revenues of at least$10 million were the most successful. Onepossible reason: These companies use asingle, integrated management solution forestimating, scheduling, accounting andanalysis. Thirty-nine percent of respondentsreported that they expect to invest inintegrated business management softwarein the next three years.

Regarding business technology, 32% ofsurvey respondents said they were happywith their current technology but wouldupgrade to save additional time and money.Twenty-five percent reported that theywould upgrade for greater productfunctionality.

Two-Thirds Have No Exit StrategyAs for what to do with their businesses

when they retire, overall, 67% of surveyrespondents said they have no exit strategy,but 60% of contractors who have been inbusiness more than 10 years indicated thatthey do have plans in place. Of thoserespondents with exit strategies, 38% planto sell or give their companies to familymembers.


SIBA Members must earn six spikecredits within two years to become aBlue Spike. Blue Spikes must then

recruit two spikes per year until theyreach Life Spike status with 25 Spikes.

* Denotes recruiters who have notearned their 2nd Spike, and therefore donot have enough YTD credits to maintaincurrent status. If recruiters do not earn

two spike credits each year, NAHB wipestheir repective spike

total to zero!

Chris Combs 24Combs Landscape & NurseryRick Schapker 24Pella Windows & DoorsJill Hayden 23J.H. Hatfield HomesMike Frank 23Scholz Insulation Co., Inc.Brent Holweger 18Holweger Development & ConstructionJeff Happe 17Happe & Sons ConstructionMike Zehner, CGB GMB 17Zehner Development CorporationTony Arvin 11Arvin Construction Co., Inc.Jon Newcomb 9Prudential Prime LocationsJennifer Mitchell 8Windows of EvansvilleDavid McClary 6River Valley Homes

ROYAL SPIKES(150-249)

RED SPIKES(100-149)

GREEN SPIKES(50-99)

LIFE SPIKES(25-49)

BLUE SPIKES(6-24)

SIBA Spike Club Members(as of 12/31/04)

Tommy Thompson 329Thompson Homes, Inc.Bob Hatfield 255Custom Homes by Bob Hatfield

Ron McGillem 136R.A. McGillem ConstructionAlan Bosma, CGB CGR 130Bosma Construction, Inc.C. Frank Scholz 127Scholz Insulation Co., Inc.Jeff Hatfield 121Core ContractorsGlenn Nurrenbern 116Nurrenbern ConstructionSandy Smith Jones 116Sandy Smith Builder, Inc.Dan Buck 114Dan Buck DevelopmentLarry Koch, CGB 104Koch Construction, Inc.Damien Scheessele 104Scheessele & Sons Construction

W.C. "Bud" Bussing 99Bussing ConstructionBrad Killebrew 93Killebrew Brick, Inc.Brad Sterchi 91Sterchi Homes CorporationAl Bauer, Jr. 87Bauer HomesDick Zirkle 66Benthall Brothers, Inc.Mike Martyn 63Martyn Custom HomesDanny Davis 55Davis HomesBill Jagoe 55Jagoe Homes, Inc.Jim Muth 52Complete Lumber, Inc.Jim Arvin 50Arvin Sign ServicesDarrell Spears 50Spears & Norman Homes

Bill Badger, Sr. 49Badger Construction, Inc.Wayne Henning 48Old National BankJohn Peninger, CGB GMB 48Homes by John PeningerHerb Schumacher 46Schumacher Custom HomesWalt VanZilen 43Selective HomesRick Oakley, CGR CAPS 34Creative InteriorsRobbie Sears 31VECTRENBert Warner 30Windows of EvansvilleTed Ubelhor 27Fifth Third Bank

SUPER SPIKES(250-499)

Carl Shepherd 218Shepherd Construction, Inc.Mike Talbert 203Homes by the Talbert GroupScott Jagoe 181Jagoe Homes, Inc.Steve Heidorn, CGR CGB CAPS 180Heidorn Construction, Inc.Ron Dauby 165Core Contractors


LENSING FULL PAGE AD


MEMBERSHIPMOMENTS

byShannon French Holt

SIBA TO HOST “Building, Complying, &Inspecting to Indiana’s Energy Code” SEMINAR

March 10, 2005: 9:00 a.m. – 3:00 p.m.APPROVED FOR 6 HOURS CONTINUED CREDITS FOR VANDERBURGH

CONTRACTOR LICENSE & INDIANA REAL ESTATE AGENT LICENSE (Elective)This comprehensive class will give

builders and code officials the toolsnecessary to comply with the IndianaEnergy Conservation Code. You will seehow easy it is to comply and to build to thestate law. Code officials will gain the toolsnecessary to find various means to inspectfor and better understand the Code.Witness the unique combination ofperspectives that the team of Mark Jansenand Stephen L. Robinson can bring to theclassroom setting. They will create adynamic of material that will inviteinteraction and discussion in a real worldenvironment. Builders will find the meansnot only to build to the State Energy Code;they will also find tools that will makeachieving these goals simple and realistic.Mark and Stephen will also discuss thehistory of the Code, the future of energyand the changing dynamics of theresidential consumer market. They will goin depth into the tools available to reachcompliance and how many builders arealready achieving Code compliance withoutproperly documenting it. You can learn howthis Code affects your business and thepotential benefits that you can realize bygiving your customers a truly Codecompliant home.

Efficient Homes Midwest program thatconducts energy ratings in Indiana and thesurrounding states. He has conducted over10,000 energy ratings and over 5,000residential energy audits. He began the“Energy Rated Homes Midwest” programduring his 13 years tenure with the IndianaDept. of Commerce, Energy Policy Division.He attended the Jordan Energy Institute andis on the Energy Subcommittee of theNational Association of Home Builders.

Stephen L. Robinson is a CertifiedEnergy Rater, Certified Graduate Builder,Graduate Master Builder, Certified GraduateRemodelor, and Certified Aging-in-PlaceSpecialist. He is founder, owner, andpresident of R.E. Construction and presidentof Raintree Insulation, based in New Castle.He currently serves as Secretary of theIndiana Builders Association and on theResearch Committee of the NationalAssociation of Home Builders.

Seminar will be from 9:00 am to 3:00 pmat the Holiday Inn Airport (US 41 and LynchRoads, Evansville) on Thursday, March 10.REGISTRATION:

Registration is required. Registration feeis $50 per person and $40 for additionalregistrants from the same company. Seminarfee includes seminar, refreshments, andlunch. Registration will open at 8:30am. Toregister, call the SIBA office (812) 479-6026.

PRESENTERS:Mark Jansen administers the Energy

that engineers are only permitted to stampand seal plans that of their own work, or thework by a supervised employee. And theAttorney General’s office is making it clearthe penalties are severe.

One Hoosier engineer found to be inviolation of this state law was ordered to beplaced on probation indefinitely with noright to petition the Board for reinstatementfor a period of 18 months. The violator alsowas required to prepare and send to all

PLAN, continued from page 4Indiana engineers a paper that explains thestate requirements for identifying the workdone by a professional engineer. Along witha few additional penalties, the violator wastold by the Review Board they were lettinghim off with leniency.

For home builders, the building code isthe final definition for compliance. A planwithout engineering may be a nice drawing,but in the end, the requirements of the codemust be met for compliance. Builders areencouraged to be research their house plansfor code compliance with regard to spantables, etc.

PARADE OF HOMES ~ 84 NEW HOMES!!JUNE 11 - 19, 2005

PARADE PASSES14-YEAR OLD

RECORD84 Entries…Most Since 1991

Until now, the record was 73. Until now,there was only flirtation. The Parade recordof entries withstood several years wherelocal records for housing starts weredemolished. In fact, there were threeseparate years with 72 ParadeHomes.....Until now!

The 2005 Parade of Homes will beknown for many years as the year theParade grew to a new level. Surpassingthe old record with the 84th entry this year,the Parade is proving itself as one of thebest promotional opportunities forbuilders. For builders, there’s absolutelynothing like having potential customerswalk through a newly built home. It’s theultimate of sales brochures – an actualexample of a place to live.

The Parade will span over three counties– Posey, Vanderburgh, and Warrick.

Fifty-eight different building companiesare going to show off their workmanship andlatest breaks in technologies

Each year, crowds of thousands ofattendees have flocked to larger Paradehomes. Over the past few years though,the Parade wasn’t about just the shock andawe of upper scale homes. The Parade wasalso an excellent opportunity for first-timehomebuyers to find the home in the rightneighborhood for them. No matter the pricerange, the Parade of Homes offers a greatpackage of value for the builders andsuppliers.

With 84 Parade Entries, the 2005Parade Book is sure to SELL OUT

again this year! Don't miss thisopportunity for GREAT exposure.

SEE PGS 16 & 17 FOR DETAILSAPRIL 1ST COPY DEADLINE


DON’T BE A MIND READER: ASK HOME OWNERS FOR FEEDBACKAs an ambitious Nebraska teenager with

initiative, I fell for a multi-level marketing“opportunity of a lifetime.”

According to the family friend whorecruited me, wannabe customers would beliterally waiting for me to knock on their doorand sell them — cans of instant shoeshineand earthy-scent aftershave.

Brimming with optimism, I ordered a caseeach of the shoeshine and aftershave. Whywait for customer orders? I already knew inadvance what customers wanted. Figuringon re-ordering after my first day, I boldlywent door-to-door...

Many years later, after paying moversto transport full cases of instant shoeshineand earthy-scent aftershave lotion fromhouse to house, I finally trashed the stuff.

How could I have been so wrong? Noone wanted what I had already decided theyneeded — a shine on their shoes and thesmell of the forest on their skin. I didn’t fallprey to a zealous marketer as much as I fellvictim to my own miscalculation of thinkingI knew the customers better than they knewthemselves.

Only Customers Can Tell You WhatThey Think About Their Satisfaction

Companies sometimes make thatmistake, too. Remember the XFL (ExtremeFootball League)? Or Gerber’s Baby Foodfor Adults? Or the ill-fated New Coke? Theseare all cases of companies thinking theyknew what the customer wanted when inreal life it just wasn’t so.

Builders aren’t exempt when it comes tothinking they know their customers withoutactually asking them. Our company recentlyconducted a builder survey. We asked 2,600builders nationwide that have annualvolumes ranging from fewer than 50 tothousands of homes how they use homeowner feedback to improve their businesses.

Why Builders Don’t SurveyThe vast majority (75%) of builders we

surveyed don’t survey their buyers. Weasked them why, and these were their topfive reasons:1. We’re already customer focused.2. Surveys are too complicated (either for

us or our home owners).3. We don’t get meaningful reports that

help us manage the business better.4. Only dissatisfied home owners respond.5. We don’t receive information that we

didn’t already know.

believing people wanted cheap shoeshinesand aftershave.

Say I’m old-fashioned, but give me abuilder who realizes customer satisfactionsurveys are as much a part of the homebuilding process as the quality of basicconstruction and I’ll show you a builderwhose business will endure any hiccups inthe economy.

Most Home Owners Want to AnswerSurvey Questions

In defense of builders, nothing isperfect. Houses are handmade. However,recognizing that houses are imperfect is notenough to get you off the hook if you don’tsurvey your home owners. For the most part,your home owners will value theopportunity to respond to a survey.

Three Tips About How to ConductSurveys

Whether you currently survey or needto begin surveying your home owners, whatcan you do to get useful feedback from yourcustomers? Here are three tips:• Don’t do it yourself — Retain an

independent company, ideally one thatspecializes in surveys.

You’re probably a conscientious builderwho truly values customer feedback, butchances are you don’t know about“language bias,” response formats or goodquestion design. A survey from anindependent source will have a lot morecredibility with your buyers than one sentout by your company.• Figure out your objectives — What do

you want to know from the survey? Yourobjectives will shape your surveyquestions.

Certainly you want to learn what yourcompany can do to better improve the homebuying and building experience. Knowingwhat your customers want and using thatknowledge to improve and develop newproducts is just as important as goodcustomer service.• Don’t get carried away — Avoid the

temptation to tackle all the issues with asingle survey, or your customer will beoverwhelmed.

Limiting the survey to 30 questions makesit more focused and concise and yieldsbetter measurements and feedback.Customers won’t answer a long survey.

Only the customer can tell you what theythink about their satisfaction. They haveentered into a business partnership with you

and want to talk about their buildingexperience. It costs money to survey andthe responses can be painful, but it’s notnearly as costly or painful as ignoring yourhome owner’s need to provide feedback.

Paul Clem is president of How AmericaThinks, the Overland, Kan.-based companythat developed RateMyBuilderOnline, aWeb-based tool for measuring consumers’satisfaction with home builders. For moreinformation, e-mail Clem or call him at913-469-0070 x14.

Wow! And I thought I was arrogant in

HOME BUILDERSEXPRESS SOLIDOUTLOOK FOR

HOUSING MARKETWASHINGTON, FEB. 15 – Home

builders continue to sound an overallpositive note regarding the ongoingstrength of the market for newly built single-family homes in February, according to theNational Association of Home Builders/Wells Fargo Housing Market Index (HMI),released today. Though unusually wetweather conditions across much of thecountry helped push the index down twopoints in February, builder expectations forthe next six months held steady from thebeginning of the year.

“On the whole, builders are stillexpressing very positive views of conditionsin the housing market. Mortgage interestrates have actually improved since January,and builder confidence as measured by theHMI is ahead of where it was this time lastyear,” said NAHB President Dave Wilson, acustom home builder from Ketchum, Idaho.

“The main concern builders are citingright now pertains to availability and pricingof lots for development – which itself is asymptom of strong buyer demand,” agreedNAHB Chief Economist David Seiders.“Demand, in turn, continues to be drivenby solid job and income growth, lowmortgage rates and the investment aspectsof homeownership.”

The NAHB/Wells Fargo HousingMarket Index is derived from a monthlysurvey of builders that NAHB has beenconducting for nearly 20 years. Each month,builders report current sales of single-familyhomes and prospects for sales in the nextsix months as either “good,” “fair” or “poor.”

See HOUSING, page 24


WHY BOTHER TO JOIN THE BUILDERS ASSOCIATION?A few

years ago, Iwas teachinga CertifiedG r a d u a t eRemodelor™(CGR) coursefor as u c c e s s f u llocal when amember ofthe classasked if hecould “buy my breakfast and pick my brain.”Curiosity had brought me to the brink (likethe cat) on several occasions, but I survivedand this turned out to be one of those times.

This young man was a framingsubcontractor doing about $300,000 per yearand making good money. He felt that framing,while lucrative, was not building a company.He was trying some remodeling on his own,but couldn’t make it profit-wise. What reallyhurt was that he was making good moneyas a framer, so he couldn’t reconcile notdoing that to become a remodeler.

As I recall, his leading question was,“What am I doing wrong?” After a few basic

questions, my answer to him was, “Justabout everything but framing.”

He was very good at estimating andrunning his framing company, but he wastrying to do the remodeling by being rightin the middle of things. As long as he ranthe field, he was limiting how much work hecould do, thereby concentrating hisoverhead on too little work.

He needed to step away, take off histool belt, put down his hammer and run thecompany. I suggested a simple paper trailsystem my company had developed overthe years.

When I said he was doing almosteverything wrong except framing, Ineglected to say that he was also being alittle skeptical about the value of his NAHBmembership. He did believe in askingquestions to learn.

Well, he stayed with it, earned his CGR,stayed active in his local, volunteered onsome committees and gave his time. He wasgiving, but he was also getting — gettingexperience, getting answers and networkingwith some of the best professionals in hismarket.

told me recently in a CAPS (Certified Agingin Place Specialist) class that this year hewill do several times the gross business hewas doing at the time of our “breakfast” —and at a gross margin that made me greenwith envy.

And did he drop out of the local’sactivities? I think not. This year he is vicechairman of his Remodelors™ Council andwon the Bryan Patchan Scholarship fornational leadership to gain experience at thenational level.

If you don’t think he gives his local a lotof the credit for his success, ask him. He’s aremodeler through and through. He’s SteveScheipeter, CGR, CAPS of the S. W.Scheipeter Construction Company, memberof the Home Builders Associaton of GreaterSt. Louis.

While a great success story, it is notexclusively his. Steve is just one memberwho took full advantage of the benefits ofhis NAHB membership. Are you?

MM (Mike) Weiss, CGR, CGB, GMB, CAPS,president of Weiss & Company, is the immediatepast president of the national Remodelors™Council. Weiss tours the country teaching bothCGR and CAPS courses to hundreds ofprofessional remodelers a year. For moreinformation, e-mail Weiss.

Mike WeissCGR, CGB, GMB, CAPS

Did it pay off? You might say so. He


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New Members... New Faces...

... at the February Meeting


FEBRUARY MEETING

Only 400-speed film can catch BertWarner Jr. during his crowd-pleasing

brief comments from Windows ofEvansville. Did we say brief?

Judy Tichenor let the builders knowthere's some great deal at Light

Concepts, one of the meeting sponsors.

Badger Gras!Shannon Frank did a fantastic jobpointing out some of the legaltroubles that await builders.

Congratulations to Jim Arvinwho won his first half-pot at theFebruary meeting. Arvin has

been a regular at meetings sincethe early 1970's.

SIBA Vice President Bill Kattmann (left)borrows a stone jacket to along with hiscool beads for a picture with Bill Pedtke.

Tere Bayer shows us this SIBA plumberknows all about Mardi Gras style!

Damien Scheessele, serving hissecond consecutive year as

Chairman of the Remodelors'Council, has vowed to attend all

future nomination meetings.


FEBRUARY MEETING

Evansville Living's Prudence Hoeslitalls some of the opportunities forexposure in their Evansville-basedpublications. The magazine was asponsor at the Mardi Gras meeting.

Tom Lampkins, Jim Iafrate and BillKattmann are caught by the camera

during social hour.

Ron McGillem (center) talks toBenthall's Dick Zirkle (right) as

Bob Hatfield picks up ideas.

Brad Sterchi teaches Mike Conti to workthe room during social hour. Conti is

Vice President of Sterchi Homes.

Darrell Spears and Tom McDaniel talkabout two of their favorite subjects.

Brick and golf!

Meeting attendees never knowwhen you'll see a Buck, or two.

SIBA Builder Glenn Nurrenbern (right)talks with Hershel Graber, Graber's

Insealators.

Guess who?


ADVERTISING NOTES:1) Full Color included on all ads - no extra charge!2) Ad space will be sold on a first-come, first served basis. Remember, the last 4 years Book SOLD OUT!3) Free assistance with Ad Production is available. Please provide SIBA with clean scanable artwork, and logos (like a business card or letterhead) for your ad. Call SIBA for details.4) DEADLINE TO SUBMIT ADS: Friday, April 1, 2005.

SIBA Non-MemberAd Sizes Ad Specs Member Rate RateFull Page 9" wide x 10.85" tall $1,500 $1,8002/3 Page 9" wide x 7.23" tall $1,100 $1,3201/2 Page 4.5" wide x 10.85" tall $900 $1,0801/3 Page 9" wide x 3.62" tall $750 $9001/6 Page 4.5" wide x 3.62" tall $450 $540

SIBA - Parade Book 20042175 N. Cullen AvenueEvansville, IN 47715

Questions???Call: 812-479-6026Fax: 812-479-6340

Check out these GREAT REASONS TO BUY AN AD in the 2005 Parade Book:

PLEASE CHECK ONE: ! A new ad will be delivered to SIBA on or before April 1st.! Ad is enclosed with this order form.

• Parade Book is inserted in over 70,000 issues of the Evansville Courier & Press before Parade week!• Support the organization which supports and promotes your industry and business!• Thousands of Parade attendees come to see all the innovative ideas, the fine workmanship, and the new products. But the first thing they look for is .... THE PARADE BOOK!

FULLCOLORINCLUDED

Company hereby agrees to purchase advertising space in the 2005 Parade Advertising Brochure (“Brochure”). The size of the advertising space andthe specifications that Company agrees to purchase is set forth above. Company agrees to provide Southwestern Indiana Builders Association(“SIBA”) camera-ready artwork for said advertisement on or before April 1, 2005. Payment for said advertisement shall be made by Company to SIBAon or before July 29, 2005. SIBA, in its sole discretion, shall determine the location of Company’s advertisement in the Brochure. SIBA shall not beresponsible for any mistakes in Company’s advertisement or the omission thereof from the Brochure. Company acknowledges and agrees that in theevent of a breach of any term or condition of this Agreement by SIBA or in the event of an error or omission by SIBA, the damage for such breach, erroror omission would be difficult to determine, therefore, Company’s sole and exclusive remedy for any breach, error or omission shall be limited to adiscount of the advertising price paid by Company to SIBA or, in the discretion of SIBA, the return of Company’s payment for the advertising spacepurchased hereunder. Company agrees to indemnify and hold SIBA harmless from any and all liability, claims, demands, actions, losses or damages thatmay arise from or in any manner be connected with the advertising content submitted by Company to SIBA. SIBA reserves the right to reject anyartwork and content submitted by Company, or any portion thereof. Interest at a rate of eighteen percent (18%) per annum will be charged for allpayments not made within thirty days after the due date. SIBA shall have the right to attorneys fees and costs of collection in the event it pursuescollection efforts.

Agreed and accepted this ___ day of _________________.

_________________________________________________Name of Company________________________________________Signature of Authorized Representative

!This ad is part of a Sponsorship Package.

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SPONSORSHIP ORDER FORMCOMPANY: ___________________________________________CONTACT PERSON: ___________________________________ADDRESS: ___________________________________________CITY: _______________________ STATE: _____ ZIP: _______PHONE: __________________ FAX: ______________________PACKAGE: ______________________ PRICE: $_____________

Advertising Agreement (yellow form) must be included.

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Benefits: :07-second tag in television Parade ads (Value: $8,000) :05-second tag in radio Parade ads (Value: $3,000) Full Page, Full color ad in Parade Book (Value: $1,500) Logo on Newspaper Ads (Value: $1,000) Logo on the Parade Book cover (Value: $800) Logo on SIBA Parade Website (Value: $500) Five minute podium time at Banquet (Value: $500) Sign at the Parade Banquet (Value: $500) Picture with Banquet Entertainment for AN (Value $500) Reserved table (8 tickets) at Banquet (Value: $450) Logo in Parade Book Ad (Value: $300) Full Page in Parade Edition of newsletter (Value: $100) PRICE: $7,500 (Value: $17,150)

Benefits: Category Sponsor at Parade Banquet (Value: $1,500) 2/3 Page, Full Color ad in Parade Book (Value: $1,100) Logo on the Parade Book cover (Value: $500) Logo on SIBA Parade Website (Value: $500) Sign at Parade Banquet (Value: $500) Reserved table (8 tickets) at Banquet (Value: $450) Logo on the Banquet Tickets (Value: $370) Logo in Parade Book Ad (Value: $300) Full Page in Parade Edition of newsletter(Value: $100) PRICE: $3,000 (Value: $5,320)

Benefits: 2/3 Page, w/ Full Color in Parade Book (Value: $1100) Logo on SIBA Parade Website (Value: $500) 4 Complimentary Tickets to the Banquet (Value: $200) Listed on Group Sign at Parade Banquet (Value: $200) Logo in Parade Book Ad (Value: $200) Listed in the Parade Edition of newsletter (Value: $100) PRICE: $1250 (Value: $2,300)

Benefits: Photo Opportunity with Parade Winners (Value: $1,500) 2/3 Page, Full Color ad in Parade Book (Value: $1,100) Logo on the Parade Book cover (Value: $500) Sign at the Parade Banquet (Value: $500) Logo on SIBA Parade Website (Value: $500) Reserved table (8 tickets) at Banquet (Value: $450) Logo in Parade Book Ad (Value: $300) Full Page in Parade Edition of newsletter (Value: $100) PRICE: $2,750 (Value: $4,950)

SIBA members can be invoiced during Parade Week: June 11-19, 2005!

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BRONZE SPONSOR Benefits: 1/3 Page, w/ Full Color in Parade Book (Value: $750) Logo on SIBA Parade Website (Value: $500) 4 Complimentary Tickets to the Banquet (Value: $200) Listed on Group Sign at Parade Banquet (Value: $200) Logo in Parade Book Ad (Value: $200) Listed in the Parade Edition of newsletter (Value: $100) PRICE: $975 (Value: $1,950)

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IRC 2003 HEARING:MARCH 1

New Code effective this Spring?...or Summer? Or…….?

On February 1, the State BuildingCommission continued its second hearingof the IRC 2003 with Indiana amendmentsfor March 1, 2005 in Indianapolis. Thehearing was continued to allow morediscussion of a new drainage proposal madeby the Southwestern Indiana BuildersAssociation.

The Commission is expected to vote toadopt the new code at the March 1 meeting.Builders remain hopeful the SIBA changeswill be included. There are about a dozenlast-minute changes that would greatlybenefit builders and the affordability ofhousing in Indiana.

Once adopted, the building code isgiven to the Attorney General to review itfor constitutionality. The AG has amaximum of 45 days to approve it, whichmeans the AG could sign off on it in onlytwo days. Then the code goes to theGovernor for his signature. The Governorhas 15 days to approve it, or to ask foranother 15 days. Again, the maximum of 30days could be hastened into one or a few.If the Governor signs it, the code is sent tothe Secretary of State’s office, where it is“stamped” with the time and date received.The code then becomes effective 30 daysafter the day on the stamp.

Because of the date the code wasbegun, all these approvals are required tohappen before August, 2005. If not, theprocess is required to re-start.

House HunterJason Hunt512 S. Green River Rd.Evansville, IN 47715Phone: 477-9877Fax: 812-477-9868E-mail: [email protected]

Illuminating ExpressionsRochelle Fichter5810 Vogel Rd.Evansville, IN 47715Phone: 812-437-5483Fax: 812-437-5485

Insbrook DevelopmentJim Hawkins200 Heartwood Ct. #11Owensboro, KY 42301Phone: 270-993-1959Fax: 270-684-4209

Matrix Home ConceptsAllen Harding5024 S. Plaza Dr., Ste. FNewburgh, IN 47630Phone: 812-490-1527Fax: 812-490-1582E-mail: [email protected]

Pickens Homes, LLCJohn Pickens1533 Larkinwood LaneEvansville, IN 47715Phone: 812-455-9707Fax: 812-474-7014

WELCOME NEW MEMBERSQuality First ConstructionJeff Spires217 S. Boeke Rd.Evansville, IN 47714Phone: 812-491-2080Fax: 812-402-5532E-mail: spiresfam@netzero

River City Elevator Co. Inc.Carolyn GreenPO Box 2689Evansville, IN 47728Phone: 812-476-2900Fax: 812-476-2800E-mail: [email protected]

Schneider Heat & Air, Inc.Jeff Schneider107 N. Garvin St.Evansville, IN 47711Phone: 812-428-2665Fax:E-mail: [email protected]

Sevier Construction Inc., SteveSteve SevierRR #2, Box 145 AFt. Branch, IN 47648Phone: 812-483-1900Fax: 812-768-6142E-mail:


INTERNATIONAL BUILDERS’ SHOW SETS NEWRECORDS IN ORLANDO

WASHINGTON, Jan. 31—Approximately 105,000 housingprofessionals flocked to Orlando this monthto make the International Builders’ Show(IBS) the most successful and well-attendedannual convention in the history of theNational Association of Home Builders(NAHB). This year’s show filled one of thecountry’s largest convention centers to thebrim with more than 1.5 million square feetof exhibits showcasing the most cutting-edge products and services aimedspecifically at the residential and lightcommercial construction industries.

“This outstanding turnout reflects theamazing strength of today’s housingindustry, and next year looks equally goodfor when the International Builders’ Showreturns to Orlando,” said NAHB PresidentDave Wilson, a custom home builder fromKetchum, Idaho. The show had been heldin Las Vegas for the previous two years.

The four-day expo began on January13 with Grand Opening Ceremoniesheadlined by football legend TerryBradshaw. Another featured speaker, SenateMajority Leader Bill Frist (R-Tenn.),addressed the NAHB Board of Directors on

Jan. 15. The senator spoke on a wide rangeof industry concerns, including tax issues,regulatory reform, tort relief and the needfor affordable healthcare legislation.

NAHB’s more than 2,000 directors alsoelected their 2005 leadership team during theOrlando meeting. Inducted into office on Jan.16 were NAHB President David F. Wilson, acustom home builder from Ketchum, Idaho;First Vice President David Pressly Jr. fromStatesville, N.C.; Vice President/TreasurerBrian Catalde from Playa del Rey, Calif.; andVice President/Secretary Sandy Dunn fromPoint Pleasant, W.Va. Also continuing onthe NAHB leadership team this year areImmediate Past President Bobby Rayburn,from Jackson, Miss., and Executive VicePresident and CEO Jerry Howard fromWashington, D.C.

Another highlight of the InternationalBuilders’ Show was the official rollout ofNAHB’s new Model Green Home BuildingGuidelines. These voluntary measures wereintroduced as a way to help mainstreamhome builders incorporate environmentallysensitive products and constructionmethods while still placing a priority onhousing affordability. They cover a variety

of “green” solutions across all aspects ofthe building process – from lot design andpreparation to indoor air quality and homeowner maintenance and operation once aproject is complete. The NAHB ResearchCenter drew on the expertise of more than60 industry stakeholders in developing theseguidelines. More information on them isavailable at www.nahb.org/gbg.

Showcasing the best and brightest ofthe housing industry, the IBS was a naturalvenue for honoring the most innovative andcommunity-service oriented projects in thecountry. A newly created award forInnovation in Workforce Housingrecognized an array of projects for theirinnovative approach to development,construction and marketing of housingpriced in a range that is affordable to a city’spolice, firefighters, nurses, teachers andother public servants. To find out more aboutthese awards and NAHB’s continuing focuson expanding opportunities for the nation’s“housing heroes,” visit www.nahb.org/workforcehousing on the Web.

See SHOW, page 20


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A handful of the other awardsbestowed during the event included theNational Housing Endowment CommunityService Award (won by the Home BuildersAssociation of Jackson County, Ore.),National Sales and Marketing Communityof the Year Awards and the Best in AmericanLiving Awards (BALA), which werecosponsored by Professional Buildermagazine.

“The 2005 IBS was unquestionablyNAHB’s most successful show to date,” saidNAHB President Dave Wilson. “Specialthanks goes to everyone at the OrangeCounty Convention Center. We look forwardto seeing all the exhibitors and attendeesback next year.”

ABOUT NAHB: The NationalAssociation of Home Builders is aWashington-based trade associationrepresenting more than 220,000 membersinvolved in home building, remodeling,multifamily construction, propertymanagement, subcontracting, design,housing finance, building productmanufacturing and other aspects ofresidential and light commercialconstruction. Known as “the voice of thehousing industry,” NAHB is affiliated withmore than 800 state and local home buildersassociations around the country. NAHB’sbuilder members will construct about 80percent of the more than 1.84 million newhousing units projected for 2005, makinghousing one of the largest engines ofeconomic growth in the country.

SHOW, continued from page 19REPORT CALLS SMART KITCHENSA ‘TECHNOLOGY TO WATCH’

Proponents of smart kitchens that use abroadband-equipped home network toconnect appliances with cell phones,pagers, office computers, laptops and otherremote devices are targeting new homebuilders who are pre-wiring their kitchensto accommodate the new technology.

Smart kitchens are included in “5Technologies to Watch,” a recent reportfrom the Consumer Electronics Association.

“The American kitchen is about to takeanother step in its evolution,” the reportsays. “The need for speed control coupledwith the desire for old fashioned ‘homecookin’ has led to the invention of severalproducts that could make the kitchen thecenter of the home.”

Referred to as hybrid white goods, theproducts include refrigerators with cable-ready television screens; refrigerators thatcan monitor the shelf life of in-box itemsusing barcodes; ovens that can downloadand execute recipes via the Internet; andovens that can store and cook food via acell phone.

“The rapid expansion of high-speedhome networks and the rollout of smartkitchen appliances looks like a marriagedestined for success,” the report says,projecting that the number of homesworldwide with home networks will jumpfrom 35 million at the end of last year to 98million by 2008.

Whirlpool, IBM, Sears and Hewlett-Packard are among the companies that have

been leading the effort through participationin the Internet Home Alliance, whosemission is to help build a market for productsand services that require a broadband orpersistent Internet connection.

The companies have been collaboratingto resolve basic design issues so that therewon’t be conflicts over standards andproprietary software and consumers won’tbe confused about which device works withanother.

A recent survey by the group found that42% of the nation’s single-family homeowners — or 26.1 million households — areinterested in new technology in a connectedhome, the report says.

“Our research shows that busyconsumers still blame themselves when theycannot provide their families with home-cooked meals,” said Henry Marcy, V,Whirlpool’s vice president for corporatetechnology and electronics. “Solving thefood preparation dilemma would dramaticallyopen up the market possibilities for us,especially since the kitchen is the commandcenter of the home.”

While industry’s goal is to connect allkitchen appliances so that they can beaccessed by remote devices, there are somekitchen appliances that do not requirebroadband for basic service, the report says.One of them is Whirlpool’s Polara oven,which keeps raw food at the correct

See KITCHENS, page 22


A MESSAGE FROM THE NAHB PRESIDENTJanuary 31, 2005

Dear Local Builders' Associations:

We know that many of you and your members already have responded to thedevastating earthquake and tsunami disaster in South Asia by generously giving tothe numerous relief agencies that are providing vital emergency assistance to thesurvivors. As the relief effort continues and moves from the acute, emergency phaseinto recovery and rebuilding, we now need your help to rally the home buildingindustry to address the longer term need for temporary and permanent shelter in thetsunami-affected nations.

Over the years, NAHB and our members have united to help those in need,demonstrating time and again that Home Builders Care, a philosophy as well as a callto action that is emblematic of our commitment to community service and charitablecauses.

In response to what will be an overwhelming need for permanent shelter, NAHB andthe National Housing Endowment have established the Home Builders Care/NationalHousing Endowment-Tsunami Shelter Fund to raise desperately needed funds tomeet this important need.

With an initial donation of $250,000, designated by the NAHB Board of Directors atthe International Builders’ Show, the fund will be directed to rebuilding efforts thatprovide temporary and permanent shelter for survivors.

NAHB is encouraging your association and your members to participate by making atax deductible donation to the Home Builders Care/National Housing Endowment-Tsunami Shelter Fund and is asking for your help with informing members about thisfundraising effort.

Please direct your donation to:National Housing Endowment

1201 15th Street, NWWashington, DC 20005

Checks should be made payable to the National Housing Endowment, and in thememo section, please note Tsunami Shelter Fund.

The NAHB Senior Officers have asked Past President Bob Mitchell to guide thisfundraising effort. Bob is working with a staff team that already has begun meetingwith organizations that have established relief efforts in the affected nations todetermine how the money raised can best be distributed to provide for temporary andpermanent shelter. Money raised by the National Housing Endowment will be grantedto one or more U.S. charitable relief organizations working to help tsunami survivorswith shelter needs.

More information will be communicated in NBN Online, Monday Morning BriefingLetter, EO mailings and Public Relations Exchange messages, as well as on the NAHBweb site regarding the progress of our fundraising. Following is a draft communicationthat you may use to communicate with your members.

For more information, please contact Troy Patterson at the National HousingEndowment at 1-800-368-5242, ext. 8483 or [email protected] or Kym Kilbournein NAHB Public Affairs at ext. 8447 or [email protected].

Regards,

David F. WilsonNAHB President

A TALE OF THREEBROTHERS

An Irishman moves into a tiny hamlet inCounty Kerry, walks into Clancy’s local puband promptly orders three beers. Thebartender raises his eyebrows but servesthe man three beers, which he drinks quietlyat a table, alone. An hour later the man hasfinished the three beers and orders threemore. This happens yet again.

The next evening the man again ordersand drinks three beers at a time, severaltimes. Soon the entire town is whisperingabout the Man Who Orders Three Beers.Finally, a week later, the bartender broachesthe subject on behalf of the town.”I don’t mean to pry, but folks around hereare wondering why you always order threebeers?”

”Tis odd, isn’t it?” the man replies, “Yousee, I have two brothers. One went toAmerica and the other to Australia. Wepromised each other that we would alwaysorder an extra two beers whenever we drankas a way of keeping up the family bond.”The bartender and the whole town werepleased with this answer and soon the ManWho Orders Three Beers became a localcelebrity and source of pride to the hamlet,even to the extent that out-of-towners wouldcome to watch him drink.

Then one day the man comes in andorders only two beers. The bartender poursthem with a heavy heart. This continues forthe rest of the evening: he orders only twobeers.

The word flies around town. Prayers areoffered for the soul of one of the brothers.The next day, the bartender says to the man,“Folks around here, me first of all, want tooffer condolences to you on the death of yourbrother... You know-the two beers and all.”

The man ponders this for a moment, thenreplies, “You’ll be happy to hear that mytwo brothers are alive and well. It’s just thatI, myself, have decided to give up drinkingfor Lent.”

HappyHappyHappyHappyHappy


temperature during the day so that it can becooked after work right away.

“Mealtime,” a pilot program of thealliance, has been conducting researchamong consumers to see how the deviceswork from both home and remote locationsin actual meal preparation and otherhousehold chores.

Although, like the microwave, the smartkitchen “appears to be a concept that’s rightfor the time,” the report identifies four majorhurdles before it becomes a householdstaple:• At $10,000-$20,000, the cost of a smart

kitchen may be more than manyconsumers are willing to pay for theconvenience. However, the report says

that consumers are more likely to acceptthe expense if it is included in the priceof the home.

• The kitchens of many consumers,especially those in urban areas, are toosmall for the installation of a smartnetwork. In the early stages, the industryneeds to target the luxury home and newhome markets, the report says.

• Many people are still intimidated by newtechnology and they need to beconvinced that the smart kitchen willmake their lives simpler and moreefficient.

• While home networking has beengrowing steadily, the rise has not beenspectacular and the industry needs toinvest in marketing to persuade moreAmericans to get high-speed Internetservices and home networks.

KITCHENS, continued from page 20

HELP TSUNAMI VICTIMS REBUILD THEIR HOMESMany NAHB members already have

responded to the devastating earthquakeand tsunami disaster in South Asia bygenerously giving to numerous reliefagencies that are providing vital emergencyassistance to the survivors. As the reliefeffort continues and moves from the acute,emergency phase into long-term recovery,the home building industry is rallying toaddress the need for temporary andpermanent shelter in the tsunami-affectednations.Over the years, NAHB and itsmembers have united to help those in need,demonstrating time and again that HomeBuilders Care, a philosophy as well as acall to action that is emblematic of theindustry’s commitment to communityservice and charitable causes.In responseto an overwhelming need for permanentshelter, NAHB and the National HousingEndowment have established the HomeBuilders Care/National HousingEndowment-Tsunami Shelter Fund toraise desperately needed funds.With aninitial donation of $250,000, designated bythe NAHB Board of Directors at theInternational Builders’ Show, the fund willbe directed to rebuilding efforts thatprovide temporary and permanent shelterfor survivors.

Please help by making a tax deductibledonation to the Home Builders Care/National Housing Endowment-TsunamiShelter Fund. Money raised by the NationalHousing Endowment will be granted to oneor more U.S. charitable relief organizationsworking to help tsunami survivors obtaintemporary and permanent shelter.

Please direct your donation check to:

National Housing Endowment1201 15th Street NW

Washington, D.C.20005 Checks should be made payable to

the National Housing Endowment and, in thememo section, please note the TsunamiShelter Fund. The NAHB Senior Officers haveselected Past President Bob Mitchell tooversee and guide this fundraising effort.


Mark your calendars for these SIBA meetings. Members should feel free to call the SIBA office for details on anyof the meetings listed on these calendars, or for dates of future events.

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HOUSING FACTS, FIGURES & TRENDS(Editor’s Note: The following document contains key statistics that show the vital economic role that housing plays in our localcommunities and at the national level. For more information, contact Michael Strauss at [email protected] or at 202-266-8252.)

HOUSING’S IMPORTANCE TO THENATIONAL ECONOMY

• Housing has been the driving forcebehind today’s economic recovery.

• At present, housing production andhousing-related services account foralmost 16% of Gross Domestic Product.

• New single-family home sales in 2004 hita record 1.18 million, shattering theprevious all-time high of 1.09 million setlast year.

• Existing new home sales hit a record 6.68million in 2004, a 9.4 percent increase fromthe previous record of 6.1 million, set in2003.

• Single-family production reached an all-time high of 1.61 million in 2004, 7.3percent above the 1.5 million single-family units started in 2003.

• Total U.S. housing starts hit 1.95 millionin 2004, up 5.7 percent from 1.85 millionstarts in 2003.

• In the first 12 months after purchasing anewly built home, owners spend anaverage of $8,900 to furnish, decorate andimprove that home.

HOMEOWNERSHIP AND HOUSINGSPUR LOCAL ECONOMIES

• Building 100 single-family homesgenerates:

• 245 jobs in the local community duringthe first year of construction, and 65 jobsevery year thereafter.

• $13.8 million in new income to localbusiness and workers in the first year ofconstruction, and $3 million every yearthereafter.

• $2 million in additional local taxes and feesin the first year of construction, and morethan $500,000 every year thereafter, for atotal of $6.6 million over 10 years.Over a 10-year, period, the construction

of 100 multifamily homes generates $28 million

in local income and adds $4.7 million in 10-year local tax collections.

HOMEOWNERSHIP BUILDSPERSONAL WEALTH

• Owning a home is by far the biggestfinancial asset for most Americanfamilies.

• For the typical American household, theequity in their home accounts for 30%of their household wealth –faroutstripping whatever assets the familymight have in the stock market.

• Most importantly, housing is a solid,steady investment. Home valuesgenerally increase quite steadily overtime at a rate slightly above inflation.

They also rate traffic of prospective buyersas “ high to very high,” “average” or “lowto very low.” Scores for each componentare then used to calculate a seasonallyadjusted index where any number over 50

conditions as good than poor.Due entirely to a three-point dip in the

index component gauging current salesactivity, the HMI declined two points to 68in February. That dip was most likely relatedto above-average precipitation that was notwholly accounted for by the index’s seasonal

HOUSING, continued from page 10

See HOUSING, page 25indicates that more builders view sales


Combs Landscape

PRESIDENT'S,continued from cover

up on the telephone is a valuable resource.This contact is commonly called“networking”. Many hesitate to ask for helpfor numerous reasons. The main reason isthat we do not want others to know that wedon’t have all the answers and areapprehensive about losing our clients to ourcompetitors. We need to realize that thereis enough business for all of us. Here is agood example.

Roy Foster and I became friendsthrough networking. As a builder, he soonmade me feel that I could call him about anysituations that I encountered. He was notonly willing but happy to assist me in any

way that he could. An example: I called himabout building inspections and making surethat I was meeting all of the codes. He askedme, “What does the code book say?” - andthen he would walk me through it. He taughtme to start using my resources such as theLunch and Codes meetings to get to knowthe local building inspectors, and to learnwhat codes were changing and why. Ilearned that the inspectors do not bite!They are really there to help you out just asyour fellow SIBA members are also.

Being a member of SIBA is a “GoldenOpportunity” to ask questions and findsolutions, and to help your fellow memberswith problems that you may have alreadyencountered. What a benefit! This is justone of the many great reasons to belong toSIBA.

LONG-TERMINTEREST RATES

REMAINSTUBBORNLY LOW

The monetary policy process kicked offat mid-2004 has yet to raise long-term rates.Indeed, long-term Treasury, mortgage andhigh–grade corporates are now at or belowthe levels of mid-2004. Furthermore, qualityspreads in bond markets narrowed duringthis period, lending standards at depositoryinstitutions remained quite liberal, the dollardeclined rather than rose, and the stockmarket was up substantially. Thus,prominent measures of overall financialmarket conditions show better conditionssince mid-2004 despite the 150 basis pointincrease in the federal funds rate.

It’s become clear that persistent forcesare holding down long-term rates. As aresult, we’ve just trimmed our projectedpattern of long-term rates across the 2005-2006 forecast period, cutting year-endreadings by about 30 basis points. Moderateincreases still are expected, partly becausewe believe that market participants haveoverly optimistic views on both futureinflation and the amount of monetary policytightening that lies ahead.

adjustment factors – indeed, some builderssurveyed for the HMI mentioned the weatheras a factor. Even so, the current-salescomponent still posted a solid 74 reading, whilethe components gauging expected sales in thenext six months and traffic of prospectivebuyers held steady at 78 and 50, respectively.

Regional HMI scores were mixed inFebruary. With a two-point decline in theirHMI to 79, western builders were neverthelessstill the most optimistic of their colleagues

across the nation. Southern and Midwesternbuilders each posted one-point HMI declines,to 73 and 54, respectively, while builders inthe Northeast posted a two-point gain to 67this month.

EDITOR’S NOTE: The NAHB/WellsFargo Housing Market Index is strictly theproduct of NAHB Economics, and is not seenor influenced by any outside party prior tobeing released to the public.

HMI tables can be accessed online atwww.nahb.org/hmi.

HOUSING, continued from page 10


MEMBERSHIPROSTER

(as of 2/16/2005)

ASSOCIATES

B U I L D E R S4-A BuildersAilstock Homes, Inc.Ambrose Construction, Inc.Arvin Construction Co., Inc.Badger Construction, Inc.Barrington Development GroupBauer HomesBaywood Homes, LLCBender Custom Homes, Inc.Bosma Construction, Inc.Bretwood HomesBRG HomesW.E. Brubeck Construction LLCDan Buck Gen. Contractor Inc.Bussing ConstructionCarlton ConstructionChoice Homes, LLCCLGA Properties, LLCComfort HomesCore Contractors, Inc.Cosby Custom HomesCravens Construction, Inc.Creative Interiors/Re-BathCust. Homes by Bob HatfieldDanco Construction, Inc.George Darr Contracting Inc.Davis HomesDenton Homes, Inc.Deutsch Homes, Inc.Diversified Homes, Inc.

DLR Construction Co.Don Dubord Homes, Inc.Dunn Building Services, Inc.Eagle Const. & DevelopmentTim Elpers Custom Home Bldrs.Elpers Development, Inc.John Elpers HomesEvansville Development Co. Inc.Exquisite Homes, LLCFaulkenburg Homes LLCFest Construction Inc.Fischer Contracting, Inc.R.D. Flowers ConstructionFoster ConstructionGilmore ConstructionH.P. West Development, LLCHaas Construction, Inc.Haas Homes, Inc.Habitat for Humanity/Warrick Co.Habitat of Evansville, Inc.Happe & Sons ConstructionJ.H. Hatfield Homes, LLCHeidorn Construction, Inc.Corey Hirsch Construction CoMike Hirsch ConstructionHolweger Develop. & Const. Inc.Home SpecialtiesHomePros CorporationHomes by Jimmy KasterHomes by John Peninger, Inc.Homes by Robert CookHomes by The Talbert GroupHornbeck Corbett Builders, Inc.

Pharaoh Development LLCPichon ConstructionPickens Homes, LLCPopham Construction Co.Public Ed. Foundation of Ev.Reid Development, Inc.Reinbrecht HomesRhoades & CurryRiecken Construction, Inc.River Town Homes, Inc.River Valley HomesRohrscheib ConstructionScheessele & Sons ConstructionSchelhorn Builders, Inc.Schumacher Custom HomesBart Schutz HomesSelective Homes by Chad & DadShepherd Construction, Inc.Smith & Briscoe, LLCSandy Smith Builder, Inc.Spears and Norman HomesSterchi Homes CorporationDavid Stevens Construction Inc.Daniel E. Temme Architect P.C.S.C. Terry DesignsThompson Homes, Inc.TQM Custom HomesTri-State Devel. & ConstructionTri-State Restoration ContractorsVictoria Manor, LLCWunderlich Carpentry, Inc.Zehner Development Corp.

Howlett HomesInsbrook DevelopmentRobert Jackson ConstructionJagoe Homes, Inc.JDH Conctruction Inc.JD’s Construction, Inc.Kattmann Construction, Inc.Kensler ConstructionKoch Construction, Inc.Phil Kost ConstructionKroeger Construction Co.Kuhlman Construction, Inc.Landmark Quality Homes, Inc.Legacy HomesLOR-RAN CorporationMCF ConstructionMaken CorporationMartin Brothers & Co. Inc.Martyn Custom Homes, LLCJoe Mattingly BuildersJohn Mattingly Homes, Inc.R.A. McGillem Custom Homes, LLCMessinger ConstructionMIB Developers, Inc.Mid-America Thermal, Inc.Minerva DevelopmentMurphy Homes, Inc.Toby Nelson Construction LLCNew Master EERWA Dev.Newmaster-Martin ContractorsNord Enterprises, Inc.Nurrenbern ConstructionPerformance Carpentry Inc.

2-10 Home Buyers Warranty31 W Insulation Co5 Star Security Systems84 LumberA.B. White & Son, Inc.A+ Heating & CoolingA-1 Guttering, Inc.Acordia of EvansvilleAction Painting LLCAction Pest ControlAdams Plumbing, Inc.ADT Security SystemsAdvantage Appraisal ServicesAdvantageAir, Inc.

Airtight Insulation Co., Inc.Allied Building Products Corp.All-Weather Products, Inc.Altstadt PlumbingAmerican Seal Coaters, Inc.American Wholesalers, Inc.Appraisal Consultants, Inc.Aqua Leisure PoolsArab Termite & Pest ControlArtful Interiors, LLCArvin Sign ServiceB.M.B., Inc.Bank of Evansville, N.A.Bassett Furniture DirectBaumberger’s FurniturePhil Baxter Excavating Inc.Bayer’s Plumbing, Inc.

Benny’s Flooring, LLCBenthall Bros., Inc.Berkau Masonry Inc.BFIBJ’s Home Accents, Inc.BLB Masonry L.L.C.Blinds, Etc.Bosse Title CompanyBrackett Heating & A/CBrian’s Sewer Service, Inc.Brown Brothers, Inc.Brushworks PaintingBuck’s Crane Service, Inc.John W. Bush ExcavatingBusiness Forms SpecialistsCabinets and Counters, Inc.Cardwell Tile & Marble, Inc.

Carpet Discount Center, Inc.Carpets Unlimited Flooring CenterCarter LumberCater Video & SecurityCemex/Kosmos Cement Corp.CertainTeed Roofing ProductsChampion Window Co.Cingular Wireless LLCClark Installation Co. Inc.Combs Landscape & Nursery, Inc.Complete Design ServiceComplete Lumber, Inc.Concrete Depot of Evansville, Inc.Concrete Supply, LLCContemporary Landscape DesignCounter DesignCountrywide Home Loans


It's goodbusiness

to dobusiness with aSIBA

member!

Cox Interior SupplyCulberson Poured WallsCustom Blind & Shade Co.Custom RecreationCustom Woodcrafters IncDal TileDitch Witch EquipmentDossett & Sons Inc.EA2/Systems/an Amer. Water CoEdwards Concrete ConstructionBill Egli Concrete ConstructionElaborate Tile CompanyElectric 2000, Inc.ELKO Kitchen & BathElliott’s ExcavatingEllis Wood Floor ServiceEMC the Boc GroupEmerald Turf FarmEngler’s Flashing WorksERA First Advantage Realty, Inc.ESSROC Cement Corp.Evansville Courier CompanyEvansville Drywall SupplyEvansville Federal Credit UnionEvansville Garage Doors, Inc.Evansville Living MagazineEvansville Teachers FCUEvansville Tile DistributorsEvansville TitlesEvansville WinnelsonF.J. Gourley & SonFan & Light WorldFarm Credit ServicesRobert Faulkner Law OfficeFehrenbacher Cabinets, Inc.Felts Lock Co., Inc.Ferguson Enterprises, Inc.Fifth Third BankFirst American Title Insurance Co.First Federal Savings BankFlooring SolutionsGabe Mehringer Plumbing, Inc.GAF Materials CorporationGaither Rutherford & Co., LLPGallagher Niemeier Interiors Inc.GE AppliancesGeneral Shale Products Corp.Gensic’s Furniture House/BedlandGoodman Concrete Walls, Inc.Michael Gourley & Sons ConcreteGraber Insealators, Inc.Grassmasters Sod FarmGrateful Threads Fabric & FurnishingsGrooms Exteriors, Inc.Gutter Helmet of EvansvilleHahn Bros. Drywall CorporationHahn Realty CorporationHall Plastering & Drywall, Inc.Harding Shymanski & Co.Harmco Sales Corp.Rita Heathcotte, CPAHeritage Federal Credit UnionJoe Hisch Drywall Co.The Home Plan Co.Hoosier Tile & MarbleHouse Hunter

HydromaxICI Paints, Inc.Illuminating ExpressionsIMI - Irving Materials, Inc.Indiana Wholesalers, Inc.InsightIntegra BankIntegrated Building Products, Inc.Jack Frost, Inc.Joe Michael LandscapesJ’s MasonryJust Faux Fun!Just Faux It!Kenny Kent ChevroletK-I Lumber & Building MaterialsKight Lumber Co., Inc.Killebrew BrickKing’s Great Buys PlusKitchen InteriorsKoch Air, LLCDon Koester Masonry, Inc.Koorsen Protection ServicesKoressel Glass CompanyKraft Nursery, Inc.Krystal KleeneL.E. Raley Electric Co., Inc.Lance Cabinet ShopLandscapes by Dallas FosterLappe Heating & Air, Inc.Lea Matthews Furniture & Int.Lehigh Cement CompanyLeisure DistributorsLennox IndustriesLensing Wholesale, Inc.H. A. Lewis Htg, Clg & Plbg, Inc.Dan LibbertLight ConceptsLouisville Tile Distributors, Inc.Lowe’s Home CentersLuton LandscapingLynnville National BankM.A.B. PaintsMatrix Home ConceptsMcCray Lavallo Frank & KlinglerMcCullough’s Welding & Fab CoMcMahon Exterminating Co. Inc.McMurtry Painting, Inc.Meuth Carpet SupplyMeuth Concrete ServicesMidwest Telecom Commun.Miller Block & Brick Co.Miller HardwoodMirrors UnlimitedMoose Lewis Contracting, Inc.Morley & Associates, Inc.Mulzer Crushed StoneDeanne Naas, F.C. Tucker EmgeNature by Design LandscapesNenneker Electric Inc.New Homes Realty of Indiana IncNextelNiehaus Co. LLCNorth American GreenNunning Heating/AC/RefrigerationNutec Supply SouthNvision Designs LLC

O’Daniel, Inc.Old National BankOverhead Door Co. of EvansvillePaint Distributors, Inc.Paint ‘N Stuff, Inc.Paragon Sight, Sound & SecurityParker’s Custom Ironworks, LLCPasco Painting, Inc.Pat Schenk Floor ServicePella Windows & DoorsPeoples Choice MortgagePeoples Trust & Savings BankThe Perry CompanyPhelps Electric Co., Inc.Plumbers SupplyPPG/Porter PaintsPPWProf’l. Warranty Corp (PWC)Progressive Land Title of IndianaProSource Whls. Floor CoveringsPrudential Prime LocationsPVC Plastics Co., Inc.Quality First ConstructionRe/Max First Class Realty, Inc.RE/MAX ServicesThe Realty Group, LLCRick’s Rain Irrigation Inc.Risley’s Audio & VideoRiver City Elevator Co. Inc.Ruxer Service & Supply Inc.Ryan’s Ace HardwareRyan’s Excavating, LLCSanderick EnterprisesScheller, Woodruff & AssociatesSchenk’s Sod FarmSchiff Air Cond. & Heating, Inc.Schindler Htg. & A/C, Inc.Schneider Heat & Air, Inc.Scholz Drywall & Interiors Inc.Scholz Insulation Co., Inc.Schroeder’s LandscapesSchultheis Insurance AgencySears Contract SalesSelf Insurance ServicesSell 4 Free Welsh Realty Corp.Service Glass, Inc.Seward SalesShelter Distribution / West RoofingSherry’s Home, LLCSherwin WilliamsShively & AssociatesSIGECOMSofa ExpressSouthern Truss Co. Inc.Spa City USASprint Business SolutionsStemaly Excavating, Inc.Steve Sevier Construction Inc.Ken Stevens, F.C. Tucker Emge RealtorsStewart Drywall & PaintingSticks & Stones Landsc. MaterialsStil StudioStolz Structural, Inc.Suburban Landscape NurserySugarbaker’s Home FashionSun Windows, Inc.

Sunburst Stained GlassSunrise CarpetsSuperior Deck & Fence Co.T.Hornbeck Concr./Rock ShooterTenbarge Seed CompanyThriftway Inc.Tony The TilerTruss Systems, Inc.Trusses by Hobgood, Inc.F.C. Tucker Emge RealtorsUnclaimed Freight Carpet OneUnion Planters BankUnited Dynamics, Inc.United Fidelity Bank, FSBVECTRENWallpapers to goWaterfield Financial Corp.Wells Fargo Home MortgageWeyerhaeuser CompanyWhayne Supply/CAT Rental StoreWhirlpool CorporationMichael W. Williams ConstructionMike Williams Gar.Doors/OpenersWindows of EvansvilleWiniger ElectricWood Spec’ties by FehrenbacherDave Zint Construction Inc.


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