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 Housing Recovery Challenges
By Charles C. Shinn, Jr., PhD
During the last six months, the housing industry has experienced the meager beginnings of a recovery following three years of scraping the bottom of a very severe housing recessionary cycle. This minor recovery has foreshadowed the organizational problems builders are going to face once the industry enters a robust recovery.
The severity of the housing recession saw single family housing activity drop over 80% in 38 months from 1.8 million to 357,000 starts in January 2009. Since then, the market has averaged only 450,000 starts for three years. The mild recovery has averaged a seasonally adjusted rate of 500,000 starts since November, which is only about a third of what the industry needs for equilibrium. This anemic, apparent recovery has revealed numerous weaknesses builders need to address.
We have been hearing from builders that they are experiencing multiple chokepoints in moving sales from contract to delivery. All the systems that were working at the peak of the market seem to be broken as they try to respond to the moderate increase in sales. One of our builder groups, which met a couple of weeks ago, changed its agenda to discuss "Processes That Suck." All of the builders were experiencing the same kind of challenges.
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 The Small Volume Builder's Single Biggest Profit Opportunity
By Tom Richey, MIRM, CAASH
"Tally Ho!" The RAF pilots shouted in World War II as they raced across the tarmac to their Supermarine Spitfires. "Tally Ho!" is what builders are shouting now as they experience the renaissance of the housing industry. But, not so fast! Is the hike in sales the real deal or simply an imposter bent on lulling us into a sense of complacency? The answer is both. People don't buy homes unless there's a darn good reason, and what better reason is there than low prices and incredibly low rates? So, the buyers are out there or nearly there. Are you equipped to sell them? Enter the small volume builder's single biggest profit opportunity: top grading and fine tuning the sales staff.
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Product News
Moisture Problems and the Stack Effect
By Bora-Care
Moisture
Moisture can enter a crawl space from a number of sources. Rising damp from the soil, plumbing leaks, exterior drainage problems and humidity in the air that enters through the vents can all contribute to a heavy moisture load. When the house is air conditioned, the floor joists and ducts are cooled. This allows moisture to condense on floor joists, insulation and equipment, leading to potential fungal growth and wood rot, and creating an environment conducive for termites and other pests.
Unfortunately, the bad air from the crawl space is pulled right up into the living area of the house due to the "Stack Effect."
As the air in the attic heats up, it exits out the vents in the attic. Then, as the air leaves the attic, some is replaced through the soffit vents, but much of the make-up air still needed in the attic comes from the living area. This creates a subsequent additional make-up need in the living area, and in many cases that air is pulled from the crawl space. The air comes up through small openings around all the pipes, wires and HVAC vents. When you add up all the small holes between the crawl space and the floor, you end up with an opening about 8" x 10". Some studies indicate that as much as 60% of the bad air in homes comes from the crawl space.
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 Product News Single-Source Simplifies the Process
By TimberTech
Thousands of products go into building a house. When it comes to designing the ultimate deck, it's easier to use a single-source provider rather than specifying multiple materials from multiple manufacturers.
With more than 13 years in the business, TimberTech provides all of the materials necessary to build an outdoor oasis.
Sourcing from a single provider has many advantages.
The main advantage of a single-source provider is that all components are designed to work together seamlessly. For example, TimberTech's hidden fastening system, CONCEALoc, was created to fit perfectly with all of TimberTech's grooved planks. The height, width and depth of the groove may vary from manufacturer to manufacturer, so mixing products won't deliver the best results. While CONCEALoc can work with competitive planks, it works best when paired with TimberTech products.
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News and Notes
 Team Danze Rides to Victory at the Denver Children's
Hospital 2012 Courage Classic
Danze, Inc. sent a team of 40 cyclists to participate in the 23rd annual Denver Children's Hospital Courage Classic held July 21-23. The Courage Classic is a 3-day, 200 mile bicycle tour, which climbs over 15,000 vertical feet while riding through the Colorado Rocky Mountains to raise money for The Children's Hospital. Team Danze lived up to its core value oacf being a positive force as they raised over $25,000 for The Children's Hospital.
Builder Partnerships has moved
Our new office is located at:
7325 S Pierce, Suite 203
Littleton, CO 80128
The mailing address and phone numbers will not change.
Progress Lighting unveils new collections during Dallas International Lighting Market
Progress Lighting has introduced a variety of decorative families-and expanded current fixture offerings-during June's Dallas International Lighting Market. Among the new offers are:
Dance
Casual and relaxed, Dance features carefully selected elements, including glass beads, polished agate stone and natural crystal stones. These uniquely beautiful materials are playfully suspended from an undulating iron frame, which floats over a linen shade. An etched diffuser rests on the bottom. Available in an Antique Bronze finish.
Splendid
A formal design is made livable through finish and material selection. A traditional, approachable Brushed Nickel finish is complimented by softly etched, chiseled glass orbs. Splendid offers a double candle frame and etched opal glass shades.
Torque
Handsome, mechanical details define the industrial-inspired Torque collection. A low-profile silhouette and mouth-blown, etched opal glass shades add a modern twist. Die-cast aluminum construction and open frame cups with G9 60-watt halogen bulbs. Available in Copper Bronze and Brushed Nickel finishes.
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Upcoming Events
Webinars For Manufacturers: Learn which Manufacturers Are Highest Rated by Builders and Why
Thursday, Sept. 13, 2012 at 11am EDT
Using proprietary research from Builder Partnerships, we report on the manufacturers who serve builders best and how they achieve that success. In the tough market, finding the methods to differentiation are essential.
Managing for Profit
Wednesday, Sept. 19 21, 2012
The INN at Cherry Creek
233 Clayton Street
Denver, Colo. 80206
Managing for Profit is an intensive seminar designed to put you on track to improved profitability. Loaded with valuable insight on management techniques specific to home building companies, this seminar will provide tools you can use to realize improved results across the entire organization. Systems, procedures and forms will be demonstrated so you can begin using concepts learned immediately upon return to your company. To Register, click here Estimating, Purchasing, and Job Costing
Wednesday, Oct. 24 - 26, 2012 Embassy Suites - DTC 10250 East Costilla Avenue Centennial, Colo 80112 Estimating, Purchasing and Job Costing is an introductory seminar designed to improve profitability through a more accurate and effective estimating and purchasing department. Good estimating and purchasing is critical to obtaining superior profitability, and can increase your bottom line by as much as 5%. Our goal is to provide a wide range of tools that attendees can use to realize results immediately upon return to their companies. To Register, click here The Superintendent's Job-Front Line Manager Thursday, Nov. 15 - 17, 2012
Embassy Suites - DTC 10250 East Costilla Avenue Centennial, Colo 80112 The Superintendent's Job-Front Line Manager is designed as an interactive experience to help your team improve job site management techniques. It will provide the necessary tools to increase overall profitability and customer satisfaction through a strong focus on building the house right the first time: on quality, on budget, and on time.
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Builder Partnerships manages highly competitive rebate and incentive programs and works to strengthen relationships between builders, manufacturers and other service providers in the home building industry. Currently, we have more than 500 builders, more than 75 manufacturers and several service providers associated with our program.
For more information, visit www.builderpartnerships.com
The Shinn Group has more than 500 builder clients located across the U.S. and Canada, including top performers among regional homebuilders. We offer sound management and financial principles and practices to home builders across the U.S. and Canada.
For more information, visit www.theshinngroup.com
Shinn Consulting is a widely recognized and well-respected leader providing consulting to homebuilders. It is dedicated to improving the professionalism of the home building industry.
For more information, visit www.shinnconsulting.com
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