Table of Contents March 2007

VIEW POINT

FIRST WORD

• Hang Tight

  In January (News+Notes), we previewed some of the conclusions of "Foundations for Future Growth in the Remodeling Industry," a report produced by the Joint Center for Housing Studies at Harvard University (JCHS) about the remodeling industry. The full report, released last month, draws some conclusions that should inform everyone in our industry who is thinking about how to approach the next 10 years.

   

News + Notes

• Full House

  The consensus among remodelers and industry analysts is that remodeling isn't expected to fall nearly as hard as home building. However, the overall slumping of the housing market has implications beyond the public's attitude toward investing in their homes.

   

MARKET WATCH

• Figure This: 811

  There is a new "call before you dig" number that should be operational by April

   

• Local Forecast: Need the Market Lowdown? Ask a Loan Officer

  Westfield, N.J., remodeler Lou Peluso's says his business relationship with a local loan officer has helped him keep his finger on the pulse of the market.

   
• 

  New-Home Market Slows Growth

  Homeowners spent approximately $168.7 billion on home improvements and repairs in 2006, according to the latest Remodeling Activity Indicator (RAI). It's the biggest-ever calendar year for the remodeling industry,

   

COMMENTARY

LINDA CASE

• Coach for Life

  Most of us aspire to have one distinguished career. Few of us dream of having more than one. Julius Lowenberg was a stunningly successful coach before he started to build his equally impressive remodeling company in 1979. Today, even after selling his company, the Texas businessman can't seem to completely retire. He's a powerful inspiration to other remodelers who want to make the most of their businesses and their lives.

   

MARK RICHARDSON

• Success Habits

  There are many factors that help define success--but there is one common denominator: successful remodelers develop habits that breed success.

   

SHAWN MCCADDEN

• Canary in a Coal Mine

  A remodeler also needs to be alerted to threats to the health of his business. But unlike a canary, which croaks to signal danger, you need monitoring tools that you can use over and over again, and that are sensitive enough to give you enough time to resuscitate your operation.

   

GUEST COLUMNIST

• Winning the Business

  Remodeling contractors spend a lot of time and money trying to win jobs. The Farnsworth Group, a market research company specializing in the construction industry, recently spoke with 184 homeowners involved in remodeling projects to determine how they located a contractor, which household member was most influential in selecting the contractor, and what were the key selection criteria.

   

YOUR BUSINESS

Ways + Means

• People + Skills: What a Life

  Tim Shigley, president of Shigley Construction Co., in Wichita, Kan., believes that positive things in our lives don't just happen. We have to plan for them. He helps his employees reach their goals by asking each to complete a goal-planning form at the beginning of each year.

   

• By Law: Take Care With Sweepstakes

  If you are considering running a sweepstakes to offset declining lead generation, the good news is that a sweepstakes can be run by even a smaller contractor. The bad news is that you still need to be careful.

   

• All Aboard

  Sometimes, your employees never get to fully appreciate their hard work because they don't get the chance to go out to the jobsites. The solution: take the office out on a field trip.

   
• 

  Office to Go

  When Audino Construction, in Austin, Texas, worked on large projects where the homeowners weren't living in the home, project managers would set up an office in an empty room. Now they try to create an office at every jobsite.

   

• A Room of One's Own

  Although it can be difficult to fit into the budget at first, the benefits of having office space outweigh the extra overhead.

   

BOTTOM LINE

• A Simple Plan

  If you're considering a retirement plan for yourself and your employees, you might want to review the advantages of a SIMPLE-IRA (Savings Incentive Match Plan for Employees). Remodelers who have set one up say it is suitable for small businesses and relatively easy to administer.

   

Sales & Marketing

• Rethinking the Missus

  Assumptions are dangerous, especially when it comes to sizing up prospective remodeling clients. If you habitually assume that the woman on the line is a Mrs., you could be missing out on an enormous slice of the market.

   
• 

  Heating Up for Summer

  We've heard of all kinds of warm-weather excuses for getting together with clients and trade partners. Last year in New Jersey, Bryhn Construction's summer bash involved 135 friends of the company, a tent full of food and drink, and lots of hot air.

   
• 

  Home Show 2.0: the Upscale Unsale

  The right attitudes and behaviors can pay off for remodeling companies of any size,

   

FIELD NOTES

• Thwarting Thieves

  Thieves have always targeted vulnerable jobsites, but the problem has worsened as the prices of copper and other metals have soared. To guard against loss, take these simple measures.

   

• Speaking of Spanish

  These construction-specific Spanish-language CDs won't make you fluent in Spanish, but they'll help you learn enough of the basic concepts, expressions, and pronunciations to improve jobsite communications, productivity, and safety.

   
• 

  Budgeting for Bonuses

  Everybody is accountable for project performance at Gavin Remodeling, Brookline, N.H., thanks to a bonus program that rewards the entire team for working together to complete jobs on budget, on time, and to the satisfaction of clients.

   

BY DESIGN

• 

  The Not So Big Space

  In her book The Not So Big House, architect and author Sarah Susanka talks about favoring “the quality of space over the quantity.” A nook can be a sheltered, private retreat that has space enough for one.

   

Tech@Work

• Top-Down Approach

  Many remodelers choose their technology solutions from the "bottom up," looking first at particular products or features and then thinking about how those features might be able to help them. A more effective approach is "top-down," which requires that you first establish what exactly you want to accomplish and why before moving on to figuring out how to achieve it.

   

• Portable Fax Solutions

  Ten years ago Medina Construction Co. started using fax machines that operate over cell phone lines to stay connected to the office from even the remotest of jobsites. For a company whose operation covers so much ground, the system has been invaluable.

   

GOOD FORM

• 

  Sub Specifics

  This month, REMODELING has a feature about the pros and cons of working with subcontractors versus employees.

   

FEATURES

• Web Extra: Would You Like Insurance With That?

  It's inherent in the concept of total compensation that the cost of employee benefits will limit employee wages. Health insurance, in particular, is so expensive that the hourly cost to most remodelers is equal to as much as $4 per hour. So what do you do if an employee declines coverage and then asks for the money to be applied to wages?

   
• 

  Subs or Employees?

  In recent years, many remodelers have taken up the subcontractor mantle -- for trades in particular. But many feel just as strongly that having employees is the model to follow. There is, of course, no right or wrong way to run your business -- just considerations of the strengths and challenges of each.

   

• A Good Trade-Off

  Working efficiently with trade partners means identifying companies that have values and goals that mirror your own.

   

• Total Compensation: Money Isn't Everything

  Do you know how much you really spend on your employees? More importantly, do they know? In the final installment of our benefit series, REMODELING explores the idea of total compensation -- the true cost (and value) of employment at your company.

   

Before & After

• 

  Building Truss

  Before the three massive beams were welded onto steel columns; before the 11 steel boots were welded to the I-beam; before the 33 tapered rafters were slipped into the boots, stretched upward like the wings of a butterfly, connected to the high beams, and tensioned by the steel cables; before any of this, there was a homeowner who simply wanted a nicer place to live.

   

Reader Panel

• 

  Getting the Job Done

  Although there has long been debate among remodelers over whether it is more advantageous to build projects using independent trade contractors or in-house employees, statistics show that most contractors find it necessary to use subcontractors in at least some capacity during production.

   

SPECIAL SECTION

Green Remodeling

• Deconstructing the Future

  After a recent demolition, though, the remodeler found himself with huge steel girders and other scrap metal that he knew he had no use for. He called 20 different people to offer it for free, before he found someone willing to salvage it.

   

• Greening the Trades

  Change is never easy, especially when employees feel they're suddenly being asked to turn away from familiar practices.

   

• Marketing Green

  Once you've challenged yourself to be the greenest remodeler you can be, the next challenge is: How do you sell efficient, sustainable projects to customers? To remodelers making a foray into this niche, we advise leaving the green-wash mentality at the door.

   

• Ready for Prime Time

  As This Old House producer Deborah Hood says, people no longer need view green as experimental or expensive. "We're learning that green is basically just good planning and smart building." And green remodelers echo that sentiment. They're as likely to use words such as "high-performance" when talking about their green work, so interwoven are the concepts.

   

• Gone Green

  Introduction to REMODELING's special Green supplement.

   

BIG50

CLOSE UP

• 

  Profile: Chuck Fannin

  Our Big 50 Profile of Chuck Fannin of Fannin Remodeling.

   

SECOND LOOK

• 

  Second Look: Charles Mertz

  Our Big 50 Second Look at Charles Mertz.

   

SOLUTIONS

• Solutions: How do you set client expectations Q+A for schedule delays?

  Big50 professionals answer a question about managing client expectations on project delays.

   

KITCHEN + BATH

DESIGN CLINIC

• Metal Polish

  Garett Radke, of Radke Construction in DeWitt, Mich., likes to experiment with finishes in his cabinet shop. He has perfected a high-gloss finish by using products normally associated with auto-body work. In his most recent project, he used this technique to create a variegated copper veneer for a Prairie-style home.

   
• 

  Finish Line

  Designers and remodelers with cabinet shops can use custom finishes to create a one-of-a-kind kitchens for their clients.

   
• 

  Fitting Prop

  Homeowners often use islands to reflect their personal style, with colors or materials that contrast with the kitchen cabinets.

   
• 

  Design Expansion

  As kitchen and bath designers, you are likely focused on the primary business of designing kitchens and baths. However, if you view yourself as a salesperson first and a designer second, you will have a broader outlook of the market and can extend your products and services to other areas of the house.

   

SPEC BOOK

• 

  Products: Range Hoods & Ventilation

  The latest products for your range top.

   

REPLACEMENT

SIDING

• 

  Siding in the Rain

  Learning from the best practices of remodelers who work in climates where moisture-penetration is a constant challenge

   

PRODUCTS

TRENDS

• 

  Mixed Media

  Every house needs a little jewelry

   
• 

  Dive Into Technology

  As the weather warms, many families whose remodeling plans include adding a swimming pool, will be interested in new technologies to help keep these summer sanctuaries safe and convenient.

   
• 

  Plastics Popularity

  The casual jobsite observer could easily believe that wood is the primary component in constructing a home. In many cases, that remains true; however, a quick look around the industry reveals that plastic is fast becoming the building material of choice for many professionals.

   

IN FOCUS

• 

  Products: Locksets & Hardware

  The latest in locksets and lock hardware.

   
• 

  Products: HVAC

  The latest in HVAC systems.

   
• 

  Products: Doors

  The latest in doors.

   

FIRST LOOK

• 

  First Look: Faucets, Storage, Insulated Joists, and more

  The newest products for the remodeling market.

   

LAST WORD

Benchmark

• 

  Just Say “NO”

  Now and then, a great new opportunity appears on the horizon. Maybe it's a piece of property you've dreamed of developing as your office space; perhaps it's a great deal on a second home in the mountains; or maybe it's the presidency of the local industry association. Whatever it is, it almost always looks too good to pass up. So you begin to build the case for the new opportunity, selling it to anyone who will listen, including yourself.

   

WEB EXTRAS

• NARI Announces New Benefits

  The National Association of the Remodeling Industry (NARI) has announced new alliances that are intended to strengthen the value of its services to members. The alliances are with a local-market consumer magazine and a provider of business development education for small businesses.

   

OTHER ARTICLES

• NARI Announces New Benefits

  The National Association of the Remodeling Industry (NARI) has announced new alliances that are intended to strengthen the value of its services to members. The alliances are with a local-market consumer magazine and a provider of business development education for small businesses.