How Home Builders and Appraisers Can Collaborate to Overcome Challenges

Overcome Challenges Can Collaborate to and Appraisers How Home Builders

WISCONSIN ISSUE 2// 2021 wisbuild.org benefit ofmembership Delivered to you asa PAID PRSRT STD PRSRT Permit No. 11 No. Permit U.S. POSTAGE U.S. Ft. Atkinson, WI Atkinson, Ft. Badger Ofﬁcial PublicationoftheWisconsin BuildersAssociation ® Wisconsin Builders Association (WBA) Let’s have a frank conversation.

Building homes is a labor of love. But frankly, your insurance shouldn’t make more work for you.

You’ve built the neighborhoods which make up the great state of Wisconsin. The homes our families live in stand as testament to your skill and expertise.

As a member of the Wisconsin Builders Association, you are eligible for discounts on the insurance coverages you rely on to operate your business, through a valuable partnership Brehmer Agency and the WBA hold with Frankenmuth Insurance.

Exclusive benefits for members include: Ready to have a frank conversation about • Discounted rates available only to members your business insurance? • Service from an expert who understands your As your local independent agency, Brehmer Agency business believes the best relationships are honest, up front and fair. So if you are looking for a proactive • Enhanced coverage options such as Contractors partner and not a part-time assistant, let’s talk. Errors & Omissions and Cyber Liability • Renewal Price Protection Contact Don Miller • Our risk management team offering knowledge, Call 262.693.1857 or send an email to energy, and passion for controlling losses [email protected] This Issue

ISSUE 2 // 2021

13 17 President’s Perspective ...... 4 Economy...... 9 Member Spotlight ...... 14 From the Editor...... 5 Hot Topic...... 10 Foundation ...... 16 Upcoming Events...... 5-6 Event Recap...... 12 ICYMI ...... 17 Advocacy...... 8 Local Success...... 13

WBA Professionals 2021 WBA Executive Committee 2021 NAHB Representatives & Directors 660 John Nolen Dr. Ste 320, Madison, WI 53713 President ...... Abe Degnan (MABA) State Representative...... Brian McKee (MABA) (608) 242-5151 | www.wisbuild.org President-Elect...... Cory Sillars (WABA) Builder-Director...... Abe Degnan (MABA) Executive Director Treasurer...... Mike Howe (MCHBA) Associate-Director...... John Kassner (MABA) Brad Boycks – ■[email protected] – ext.16 Secretary ...... Jim Doering (MBA) NAHB Build-PAC Trustees Immediate Past President ...Jeff Dorner (DCHBA) Director of Communications Trustees...... Brian McKee (MABA), Associate Vice President...... Terry Welnicke Alicia Naleid – [email protected] – ext.13 David Belman (MBA) (MCHBA) Alternates..Monica Sommerfeldt Lewis (CVHBA), Director of Operations Associate Vice President-Elect...... Angie Kieta Mike Check (MCHBA) Joan Olson – [email protected] – ext.12 (MABA) Other Committees & Councils Outside Legal Counsel State Representative...... Brian McKee (MABA) Building Industry Axley • 608-283-6741...... Robert Procter Past Officers Representative...... David Belman Council President...... Jeff Dorner (DCHBA) (MBA) INSURANCE Finance Committee Chair ...... Chad Wuebben Advocacy Chair...... Mike Derrick (SCVHBA) Business (MABA) Membership & Local Officers Chair...... Alex Forer Frankenmuth Insurance via local Frankenmuth WB Foundation President...... Harvey Kessel (WABA) agents & Don Miller; The Brehmer Agency (MABA) Health The Insurance Center of Wisconsin (920) 419-1055...... Fred Wilmsen wisbuild.org // Wisconsin Builders Association 3 President’s Perspective

BY ABE DEGNAN, WBA PRESIDENT The News is Good recently read an article in a building The need and demand for housing have been at risk and vulnerable. You I and remodeling magazine by indus- is here and it’s real; it’s not a bubble. may notice the difference in traffic, and try expert Mark Richardson. Last year As busy as we are, the last decade of I certainly do. Restrictions are lifting; at this time he was predicting that 20 housing unit construction was as low as in fact, Dane county made a significant to 30 percent of it was in the 1950s. The last several loosening of restrictions again at the remodeling busi- years have helped and we are coming end of April and my guess is further nesses would not out of that and building as fast as restrictions will have lifted by the time make it through we can. We could build even more you are reading this. My kids are back to the Coronavirus. and it still wouldn’t cause a bubble. in-person school. He was wrong In Wisconsin, new home building per- Lastly, we have three great events and admitted mits are up by 35 percent compared coming up and you’re not going to want as much in his with the same time last year. Learn to miss them. It’s time for us to get article. In fact, more about the permit data in your together in person again. It is time for the subject of area of the state on page 20 or visit us to build the friendships and work his article is that www.wisbuild.org/press to read the together in the way that only in-person it is going to be very difficult for us to most recent press release on the topic. collaboration can do. predict anything moving forward. Given Another good thing? The mood is Will you join me? Will you join us? And the interesting times we continue to live changing, and people are seemingly who can you bring with you? See you in in, with high demand and fluctuating feeling safe again venturing out. Of July! prices, what are the good things going course, there are many of us who have Abe on? There’s a ton. felt safe the whole time and others who

MISSION STATEMENT VISION STATEMENT MOTTO A professional trade association, WBA advances the housing Affordable, innovative and environmentally “Protecting the American Dream” industry for members and consumers through government conscious homes accessible to all. involvement, education and promotion.

Wisconsin Badger Builder is the official publication of the Wisconsin Builders Association®.(WBA) and is published by WBA, 660 John Nolen Dr., Ste 320, Madison, WI 53713-1469. Periodicals postage paid at Madison, WI 53701 and additional mailing offices. All advertising is subject to acceptance by the Wisconsin Badger Builder editorial review committee. The publication of any advertisement is not to be construed as an endorsement of the product or service offered. The contents of all material available in the publication are copyrighted by WBA unless otherwise indicated. All rights are reserved by WBA, and content may not be reproduced, disseminated, published or transferred in any form or by any means except with the prior written permission of the Wisconsin Builders Association®. POSTMASTER: Send address changes to Wisconsin Badger Builder, 600 John Nolen Dr., Ste 320, Madison, WI 53713-1469. SUBSCRIPTIONS: Subscriptions available through membership in the Wisconsin Builders Association®.

4 Wisconsin Badger Builder From the Editor

BY ALICIA NALEID, DIRECTOR OF COMMUNICATIONS Knowledge is Power hings have been conference November 9 in Lastly, voting for the Badger Tbusy here at WBA, Fond du Lac. Craftsman Awards is likely just finish- as I know is the case for our Also on the horizon to ing up at the time you are reading this. members. Despite skyrock- help your business is Steve We have had many great entries in our eting material prices, we’ve Bench from Generational relaunched contest and look forward to been hearing business has Consulting who will be growing the contest even bigger next still been good overall. joining us at the Member year. Thank you to those who submit- Another thing we have Meeting Day on July 14 ted projects! Check to see if voting been hearing is the struggles in Lake Geneva. A former is still occurring; to submit your vote of appraising new construc- colleague of mine, Steve for your favorites, visit wisbuild.org/ tion given the costs of materials. In this is very outgoing, very knowledgeable, badgercraftsman. issue, you will see a piece by Freddie and entertaining. He will be speaking to I hope you find the articles and Mac on the tips to have a successful members about generational differences information in this issue interesting and appraisal, understanding many of you in the workplace (specifically those helpful. If there are specific topics you’d may already be doing some of the sometimes hard-to-manage younger like to see us cover or if you’d like to be things they suggest. We intend to carry generations) and will give you tips and featured in the member spotlight, please this topic forward and hope to have a tricks on recruiting and retaining quality contact me at [email protected] speaker on the challenges with apprais- employees. More on this and other Regards, Alicia als at our upcoming Trends in Housing upcoming event speakers below. [email protected]

Upcoming Events: Three Events You Can’t Miss! Member Meeting Day In person meetings are back! Join us Wednesday, July 14 at The Ridge Hotel in Lake Geneva for our summer member meeting and hear from dynamic speakers on legislative topics and ways to improve and enhance your business and employees. Steve Bench Tyler August 10:00 AM – 12:00 PM Past and Current Leadership Brunch – By Invitation Only 10:00 AM – 1:00 PM Local Executive Officers Meeting 12:30 PM – 1:00 PM Member Meeting Registration 1:00 PM – 1:45 PM Representative Tyler August; Friend of Housing Award Presentation & Legislative Update 1:50 PM – 2:55 PM Steve Bench; Generational Differences in the Workplace, Employee Recruitment & Retention 3:00 PM – 4:30 PM Board of Directors Meeting

Visit wisbuild.org/wba-events/2021/7/14/membermtg to register (attendance is free!)

CONT. ON PG 6

wisbuild.org // Wisconsin Builders Association 5 Upcoming Events

CONT. FROM PG 5 July 14 | The Ridge Hotel | Lake Geneva Celebration of Housing 5:30 PM Registration & Complimentary Celebrate the accomplishments Cocktail Reception of the housing industry at our 6:30 PM Welcome & Address by WBA inaugural Celebration of Housing President Abe Degnan taking place after the summer 6:45 PM Guest Speaker | Jerry Howard, member meeting day. NAHB CEO 7:00 PM Plated Dinner 8:00 PM Awards Reception – Awards to be given include: Hall of Fame, Builder of the Year, Associate of the Year, Rising Star, Badger Craftsman Awards, and Local Association of the Year. 9:00 PM Complimentary Post-Awards Cocktail Reception on the Patio

Cost is $99. Visit wisbuild.org/wba-events/2021/coh to register!

WB Foundation Golf Outing Support the future builders in Wisconsin and attend the WB Foundation Golf Outing! Hosted at Geneva National Golf Club, the Lee Trevino Course offers meticulously manicured bent grass tees, fairways and greens, as well as five tee boxes offering a great golf experience for every level of player.

Sprawling throughout the rolling countryside, it is a challenge for the seasoned golfer yet forgiving for the beginner. The course plays to Mr. Trevino’s natural fade and features subtle dog-leg right holes on nearly every Par 4 & 5. Trevino has signed his name to only a handful of courses; this is one to experience! 7:15 AM Registration Opens 7:45 AM Best Ball Toss 8:00 AM Shotgun Start; Best Ball Scramble

Visit wisbuild.org/wba-events/2021/foundationgolf to join us!

6 Wisconsin Badger Builder

Advocacy

BY BRAD BOYCKS, WBA EXECUTIVE DIRECTOR Builders Legal Action and Research Fund

he Builders Legal Action and Research Fund (BLAR is administered by the WBA TFund) is one of the great success stories of the Executive Committee. Local Wisconsin Builders Association. The fund, established in associations, as well as WBA, may submit requests to use 1993 and financed yearly by members, is an important tool these funds to help finance important court cases, research, for advancing policies that benefit housing in Wisconsin. and other matters that affect housing in Wisconsin. The fund is segregated from other association programs and Who benefits from the BLAR Fund? In short, all WBA members, as well as homeowners since the funds work to keep housing affordable in Wisconsin. It’s an essential tool for members who do not have the financial Bonding resources to wage a protracted legal effort involving issues Relationships. with statewide impact. BLAR Funds Currently in Action WBA vs. The Village of Sussex (Waukesha County) This is a joint effort that is also funded by contributions from the Metropolitan Builders Association and the Madison Area Builders Association. The Village of Sussex requires developers to provide surety in an amount and for time peri- ods that violate Wis. Stat. 236.13 -- provisions that were promoted by the Wisconsin Builders Association. The additional costs incurred by developers are passed on to home buyers. WBA and the St. Croix Valley Home Builders Association vs The Town of St. Joseph (St. Croix County) St. Joseph has a moratorium on permit applications in violation of Wis. Stat. 66.1002(2) because the town failed to adopt 1) a resolution stated that a moratorium is needed to prevent a shortage in, or the overburdening of, public Knowledge. facilities located in the municipality and that such a shortage Experience. or overburdening would otherwise occur during the period Trust. in which the moratorium would be in effect, and obtain a written report from a registered engineer stating that in his or her opinion the possible shortage or overburdening of public Surety Bonding & Insurance facilities justifies the need for a moratorium; or 2) a resolution stating that a moratorium is needed to address a significant threat to the public health or safety that is presented don brehmeragency.com Don Miller 262-693-1857 @ by a proposed or anticipated activity specified under sub. (4),

8 Wisconsin Badger Builder CONT. ON PG 12 Economy

BY NA ZHAO, NATIONAL ASSOCIATION OF HOME BUILDERS Priced-Out Estimates for 2021

AHB recently released its 2021 market by a $1,000 increase Npriced out estimates. The in the median-priced home in new estimates show that 75.1 million the state (14,309), followed households (roughly 60 percent of all by California (12,361), and U.S. households) are not able to afford Florida (10,215), largely a median priced new home in 2021, in because these are the coun- that their incomes are insufficient to try’s three most populous qualify for a mortgage under standard states. underwriting criteria. If the median The metropolitan area with new home price goes up by $1,000, an the largest priced out effect, additional 153,967 households would in terms of absolute num- be priced out of the market. These bers, is New York-Newark- 153,967 households would qualify for Jersey City, NY-NJ-PA, where the mortgage before the price increase, 6,756 households would but not afterward. not be able to qualify for The underwriting criterion used to a mortgage to purchase a determine affordability is that the sum new median-priced home if of mortgage payments, property taxes, its price goes up by $1,000. homeowners and private mortgage This is largely because New insurance premiums (PITI) during the York metro area, where the first year is no more than 28 percent of median-priced new home the household’s income. Key assump- is only affordable to 26.1% tions include a 10% down payment, a of households, is the most 30-year fixed rate mortgage at an inter- populous metro area with Chicago or Houston metro areas are est rate of 2.8%, and an annual premium roughly 8 million households. Chicago- relatively more affordable to begin with. starting at 73 basis points for private Naperville-Elgin, IL-IN-WI metro area Around 44% of households in Chicago mortgage insurance. registers the second largest number of and 51% of households in Houston As usual, NAHB’s latest update priced-out households (5,162), followed metro area can afford new medi- includes priced out estimates for all by Houston-The Woodlands-Sugar Land, an-priced homes there. states and metropolitan areas. The TX metro area (4,533). Compared to More details, including priced out priced out numbers vary with both the New York, the median priced homes in estimates for every state and over 300 sizes of the local population and the metropolitan areas, and a description of affordability of its new homes. Among all the underlying methodology, are avail- the states, Texas registered the largest able in the full study. ■ number of households priced out of the

wisbuild.org // Wisconsin Builders Association 9 Hot Topic

BY SCOTT REUTER, SINGLE-FAMILY CHIEF APPRAISAL OFFICER, FREDDIE MAC How Home Builders and Appraisers Can Collaborate to Overcome Challenges

he appraisal of a new home is Why Are New of the house didn’t “appraise” is being clearly an important event for a Construction Appraisals heard more and more. T Challenging? home builder as it plays such a vital role in the builder or homebuyer being able New home packages typically include How Can Builders Help to acquire the necessary financing. For pricing for additional features or ameni- Address This? an appraiser handling the assignment, ties that may not have been widely seen To get in front of this, many build- it’s their job to measure market accep- in a particular market yet. This can lead ers are adopting best practices that tance and develop support for the value to builders introducing new inventory promote open engagement and sharing of the property. As I discussed in a at price points that make it difficult for of information with appraisers through recent Housing Developments podcast an appraiser to find supporting closed “appraisal packets”. As an appraiser, I with the National Association of Home transactions – and this has only been think this approach should be applauded Builders, for a number of reasons, these compounded by rising lumber and and encouraged. This information can assignments can present challenges for building materials costs seen recently in be very helpful as an appraiser develops an appraiser. many markets nationwide. The refrain market support for actual costs. That

Welcome, New Members!

Member Type Company Name City Member Name Member Type Company Name City Member Name Member Type Company Name City Member Name

Associate Advanced Building Services Org. Waukesha Ryan Videkovich Associate TC Countertops Evansville Margarita Luna Builder Jon Marty’s Custom Stevens Point Jon Marty Carpentry, LLC Associate Advanced Custom Geothermal LLC Kiel Sean Steffes Associate The Insurance Center Onalaska Mike Schiewer Associate Kamps Masonry LLC Sobieski Troy Kamps Associate Clutter Solutions LLC Appleton Dan Rowe Associate Trindor LLC Verona Chandraban Bajoon Builder Ludvigsen Construction LLC Sheldon Jeff Ludvigsen Associate Custom Service Hardware, LLC Cedarburg Tim Stepanski Associate WaterFurnace International Inc. Cambridge Scott Niesen Associate Merchants Bank Eau Claire Ben Franko Associate Dale Walker Roofing Contractor, LLP Janesville Dale Walker Associate Webster Well Drilling, Inc Minocqua Marc DeBrock Associate Millwork Specialists Windsor Dale Servais Associate Dreamscapes Natural Pools LLC Knapp Catherine Benjamin Associate Window Select Menomonee Justin Kiswardy Falls Associate Nicolet National Bank Green Bay Tom Zellner Associate Edward Jones - Peter Zobro Oneida Peter Zobro Associate 1st In LLC Eau Claire Cory Dechow Associate Southern Wisconsin Madison Matt Kirt Associate Express Sign & Mailbox LLC Oak Creek Chris Ashworth Construction Associate Adam Griesbach Plumbing & Water Greenville Adam Griesbach Builder Fanning Construction LLC Janesville Kevin Fanning Conditioning Associate Stone Distribution, LLC Onalaska Matthew Mahlum Associate FIT (RE) GROUP Husdon Billy Webber Builder Aerial Management Chippewa Houston Havenor Builder Storm Guard Roofing & Verona Ryan Engelbrecht Affiliate Frontier Title & Closing Services Hartland Mark Mulvaney Falls Construction Associate Hydroclean Equipment, Inc. DePere Aaron Stordeur Associate Appleton Solar LLC Appleton Patrick Nahm Associate TNT Floor Coatings llc Abrams Rebecca Tomcheck Builder Janesville WinSupply Inc Janesville Candace Schleisner Builder Atkins Development Group Green Bay Daniel Atkins Associate Vertical Works Inc. Mount Justin Kreger Pleasant Associate KCM Quality Solutions, LLC McFarland Christopher Crary Associate Bergstrom Neenah Jeff Hoffman Associate Welcome Builders, LLC Madison Phani Palety Associate Kolbe ServicePro Wausau Luke Skadahl Builder Clearwater Construction Chippewa David Egge Falls Associate Windows of Wisconsin Kaukauna Carl Hardtke Associate Lakeside Contracting LLC West Bend Jason Rose Associate Craftsmen of Integrity Waupun Samantha Associate Wisconsin Granite McFarland Matt Macur Associate Lycon Inc Janesville Bob Compton Martinsen Associate ABT Foundation Neenah Dave Brehmer Affiliate North Shore Bank Racine Robin Tegel Associate Davis Property Care, LLC Franklin Solutions, Inc. Associate Ray Lloyd Plastering, Inc. Janesville Kevin Lloyd Associate Hatch Building Supply La Crosse Nick Anderson Associate Alside Supply Fitchburg Dennis Tiberi Builder Reality Construction, LLC West Bend Michael Bartelt Associate Heritage Title Services Delavan Amy Giovannoni Associate Artisol Design Madison John Schneider Associate Richards Electric LLC Janesville Rob Richards Affiliate Integrity Grading & Excavating, Inc. Schofield Daniel Weinkauf Associate Associated Bank Janesville Jennifer Forrester Builder Solid Ground Homes & Remodeling Anoka Kelly Hemp Associate Interior Designs Holmen Ray Hale Associate Bluffview Interiors Inc La Crosse Brandon Meyer 10 Wisconsin Badger Builder Builder J & J Custom Homes LLC Greendale Marie Cyborowski Associate BMO Harris Bank Green Bay Ryan Cwiak Builder JD Installations, LLC Janesville Joshua Devlin Builder Bronson Construction, Sheboygan David Bronson LLC Falls Hot Topic

said, with industry concerns around comparable sales, if available. this happens, a builder might request a undue influence and pressure on • Breakout of the monetary differ- face-to-face meeting with the appraiser appraisers, there can be a good deal of ence of recent major material cost to review and better understand the confusion around what information a increases vs their typical cost. analysis. This doesn’t need to be a builder is able to share. • Copies of all prepaid change orders contentious event. Indeed, a productive Since the development of an appraisal showing the amenities. conversation can help both the builder is all about collecting and analyzing • Any additional added costs to the and appraiser – and not just as it relates information, the good news is that short price of the home. to that specific assignment. It can also of outright pressure, the landscape is Additionally, many builders also share go a long way in strengthening their really wide open with respect to what the actual cost breakdown for the home, interpersonal relationship. and how much information is appropri- including their margin. If this is the case, The current environment of rising ate for a builder to share. I can’t stress enough how important it is costs and limited inventory – during • A quality, helpful builder appraisal that appraisers realize the sensitivity of a global pandemic nonetheless – are packet can include the following: this information and ensure it is treated creating market challenges across the • Information from any market study with the utmost confidence. board. It’s my opinion that the best way the builder has completed (or to navigate the challenges presented pre-appraisal). What if the Appraisal by this environment is for builders • Copy of the sales contract or the Can’t Justify the Price? and appraisers to continue to talk and custom home contract. Even with all of this active engage- collaborate – to better manage current • Comprehensive list of the cost of the ment, there will be times where an assignments and lay the groundwork for amenities and finishes for the home. appraiser cannot support a certain sales positive relationships in the future. ■ • Two or three local and recent price (or construction costs). When

Welcome, New Members!

Member Type Company Name City Member Name Member Type Company Name City Member Name Member Type Company Name City Member Name

Builder Jon Marty’s Custom Stevens Point Jon Marty Builder Burger Builders, Inc. Cleveland Travis Burger Affiliate Pella Northland Eau Claire Jarod Newcomb Carpentry, LLC Affiliate Century 21 Affiliated La Crosse Joe Kress Associate Plymouth Plumbing & Heating, Inc. Plymouth Jack Dellger Associate Kamps Masonry LLC Sobieski Troy Kamps Associate Chippewa Valley Habitat for Eau Claire John Dawson Builder Precision Bldrs By Alan Hucke, Inc. Stevens Point Alan Hucke Builder Ludvigsen Construction LLC Sheldon Jeff Ludvigsen Humanity Inc Associate PuroClean Property Restoration - Green Bay Shea Spencer Associate Merchants Bank Eau Claire Ben Franko Affiliate Coldwell Banker - The Real Estate Appleton Jeanne Godschalx Green Bay Group Associate Millwork Specialists Windsor Dale Servais Builder R & H Builders LLC Reedsville Peter Robley Associate Concrete Craft of Hudson New Matt Johnston Associate Nicolet National Bank Green Bay Tom Zellner Associate Rainbow Play Systems of Central Wausau Bill Fischer Richmond WI, LLC Associate Southern Wisconsin Madison Matt Kirt Builder Craig Kjendle Builders, LLC Janesville Craig Kjendle Construction Builder Rico Quality Homes Inc Eau Claire Roy Associate CUTCO Olean Nick Santiago Associate Stone Distribution, LLC Onalaska Matthew Mahlum Associate Secure Heritage Insurance Agency Stevens Point Phillip Hollis Associate Drexel Building Supply Campbellsport Stacey Stoffel Builder Storm Guard Roofing & Verona Ryan Engelbrecht Associate Select Spray Foam Bangor Jeff Saxton Construction Associate DTK Stoneworks Wheeling Maureen Gibbs Associate Slayton Plumbing LLC Springbrook Zach Slayton Associate TNT Floor Coatings llc Abrams Rebecca Tomcheck Associate Finco Concrete, LLC Janesville Daren Finco Associate The Glass GuRu Kiel Brian Van Associate Vertical Works Inc. Mount Justin Kreger Associate Fries Financial Group Chippewa Timothy Fries Wageningen Pleasant Falls Associate The Plymouth Landscaping Plymouth Michael Birenbaum Associate Welcome Builders, LLC Madison Phani Palety Associate General Property Management LLC Eau Claire John Moss Company Associate Windows of Wisconsin Kaukauna Carl Hardtke Associate Huberty & Associates, SC Plymouth Melanie Westphalen Associate Therma-Stor, LLC-Santa Fe Madison Mike Daugherty Dehumidifers Associate Wisconsin Granite McFarland Matt Macur Associate Hyde-It Garage and Closet Storage Muskego Brett Hyde Systems Associate Ultimate Drywall Inc. Minneapolis Elizabeth White Associate ABT Foundation Neenah Dave Brehmer Solutions, Inc. Associate Ignatek Janesville Krista Busfield Associate United Rental Madison Matt Prellwitz Associate Alside Supply Fitchburg Dennis Tiberi Associate JASK Visual Eau Claire Aaron Anderson Associate VanDerVart Concrete Products, LLC Sheboygan Richard Lohr Associate Artisol Design Madison John Schneider Builder JM Builders LLC Chippewa Josh Markowski Associate Waterproof Systems Menomonee Keith Terry Falls Falls Associate Associated Bank Janesville Jennifer Forrester Associate Lamp’s Landing LLC Madison Josh Lamp Builder Wausau Homes Menomonie Menomonie Dave Aune Associate Bluffview Interiors Inc La Crosse Brandon Meyer Associate Luminate Home Loan Brookfield Michael Creed Associate BMO Harris Bank Green Bay Ryan Cwiak Associate MJS Landscaping Services, LLC Waukesha Michael Steiner wisbuild.org // Wisconsin Builders Association 11 Builder Bronson Construction, Sheboygan David Bronson LLC Falls Associate Olson Solar Energy LLC Onalaska Cameron Olson Event Recap Giving our Members a Voice n March and April, the St. Croix Valley Home Builders Association and the Wausau Area Builders Association participated in IAdvocacy Day Meetings in conjunction with WBA, their members, and local legislators, and advocated for them to support specific bills and provisions that would have a positive impact on the housing industry. A huge thank you to Executive Officers Alisha Cunningham at SCVHBA and Cara Spatz at WABA for coordinating these efforts as it gives legislators an opportunity to hear directly from members on how certain provisions help and hurt their businesses.

Thank you to the following members for taking the time to advocate for the industry:

Alex Forer, Seth Jozwiak, Tami Kuchera, Chris Wilcox, Deb Flettre, Kevin Porter, Cory Sillars, Casey Weiss, Alex Lindus, Michael Derrick, Jeremy Voigt Bryant Petta

Advocacy Builders Legal Action and Research Fund

CONT. FROM PG 8 except that the governing body may not treatment requirements.” Madison’s new Wisconsin Administrative Code Trans adopt such a resolution unless it obtains minimum standard for glass requires 233 which defines the requirements that a written report from a registered engi- dots, patterns, lines, metal screens, or must be met when subdividing lands neer or public health professional stating other features “intended to reduce the abutting the state trunk highway system. that in his or her opinion the proposed or heightened risk for bird collisions with Additionally, WBA has recently signed anticipated activity specified under sub. glass.” The ordinance went into effect on on to use BLAR Funds in conjunction (4) presents such a significant threat to October 1, 2020 and applies to all build- with the Congress for the New Urbanism, the public health or safety that the need ings over 10,000 square feet, skyways, League of Wisconsin Municipalities, for a moratorium is justified. and other glass features. This case, filed Wisconsin Realtors’ Association, and WBA, ABC, NAIOP-WI, and the as a Notice of Claim, states that the new others to participate in a study to find Commercial Association of Realtors-WI ordinance is illegal because it violates the most problematic barriers facing vs the City of Madison (Dane County) 2013 Wisconsin Act 270, supported by Wisconsin communities and develop- This case was filed on behalf of WBA, which established a statewide and ments in planning and building more WBA and the other plaintiffs by the unform commercial building code. affordable housing. Wisconsin Institute for Law and Liberty, As BLAR can also be used for We are thankful for your membership, Inc. to challenge Madison’s ordinance research, funds were recently used thus the ability to fund important mea- 28.129. The ordinance provides that “all on the development of legislation to sures like the ones listed above to better exterior construction and development address inconsistencies with state stat- the building climate in Wisconsin. ■ activity” must meet new “bird-safe glass utes and administrative rules regarding

12 Wisconsin Badger Builder President’sLocal PerspectiveSuccess

BY ALICIA NALEID, DIRECTOR OF COMMUNICATIONS

Cluster mailboxes are…a cluster.

t’s often that local, state, and national The Work In February of this year, the Brown Iassociations come together to help Back in 2019, NAHB had a meeting County Home Builders Association con- members, but it’s not often that mem- with USPS executives (separate from ducted a meeting with their Government bers get to hear of the success stories. the Brown County issue) to discuss the Affairs Committee, WBA, Pat, employees This success story is one from Brown issue of builders being asked to main- of the Village of Howard, and several County, and boy is it a cluster. tain mailbox unity in perpetuity, and representatives from different USPS USPS agreed it was not appropriate. districts across Northeast Wisconsin. The Issue Fast forward to Pat’s struggles with A solution was proposed in which the Member Pat Kaster reached out to USPS, NAHB legal counsel sided with municipality would put a general note on WBA as she had developments that had Pat in that she was not responsible for the plat about the mailbox, and during previously been planned and platted maintaining the cluster mailboxes and the Brown County platting process, the with individual mailboxes, however brought in members of the Wisconsin municipality would send USPS the plat USPS was telling her that she needed Congressional Delegation (Gallagher and for approval of mailbox location during to install cluster mailboxes instead. As Johnson) in regard to legislation that the comment period. The municipality many of you know, having to go back would guarantee every new home would would also take over key distribution. and find land to install cluster mailboxes have access to curbside delivery of mail. when the approved plat did not take WBA contacted additional members The Results these areas into consideration would be of the Congressional Delegation to After a long, arduous process, the expensive, let alone virtually impossible cosponsor the bill which NAHB spoke mailbox issue in three of four of Pat’s to comply with using the standards about during our 2019 summer member developments have been resolved, with a being requested by USPS. Additionally, meeting. However, for Pat, the issue in fourth hopefully coming to a final solution USPS asked Pat to sign an agreement her developments were still at play. too. A true success story of the power of putting her in charge of maintaining a the three-in-one membership. ■ mailbox unit after the completion of the development.

wisbuild.org // Wisconsin Builders Association 13 Member Spotlight

Take Your First Step Now

MARK PEKARSKE | BUILDER MEMBER PEKARSKE BUILDERS, MANITOWOC

BB: What is your current role at your from college. I left those jobs because business and how many people do you I needed to be away from a desk job Mark Pekarske | Builder Member employee? and go to a job with more freedom and MP: There are many roles I currently variety. I always remember looking at support at our small residential con- the clock and wondering when the day with during your time in the industry struction company. Sales and design would end. I joined my uncle as a partner and how did you overcome it? are the most important roles I play at in his established construction business. MP: Working with difficult customers Pekarske Builders. I work with estimat- After three years of working with my and trying to come to an amicable agree- ing, purchasing, training, and design uncle, I started Pekarske Builders Inc. ment. By being honest and knowing all work. We typically have my brother and with my younger brother David in 1995. the facts and figures, the issues typically myself in the office. We have four full BB: What is something you struggle resolve themselves with a meeting. time employees, one youth apprentice, with in the industry now that you BB: Having been a parade builder, and typically two summer workers. didn’t struggle with when you first what are some of the challenges and BB: How did get you get into the started your career? excitements about being in the parade homebuilding industry? MP: I have a lot more responsibility of homes? MP: I started working summers with to my family, employees, and other busi- MP: The Parade of Homes is by far my uncle when I was 15 years old. I nesses that we own. I always thought our best marketing tool. We look forward worked for him all through high school that I would have more time the older I to meeting new clients that could build and college. The work was challeng- became. The truth is there is so much or remodel soon, or over the next couple ing and rewarding and paid for most more we could do, but we seem to have of years. We compensate the owners of of my college education. I worked for less time to do it. the home to let us show there home for three years in manufacturing compa- BB: What has been one of the most a few days in the fall. Getting the home nies around the state after graduating challenging issues you’ve had to deal ready for the parade is a little rushed but

14 Wisconsin Badger Builder Member Spotlight

usually uneventful. We have a fall parade of homes and there is ample time to complete the project if we start construction in spring. The owners of the parade home typically attended a parade of homes in the past and feel honored to be selected by us to show their home. BB: What are some expectations you hope to see in the industry in the next 1-5 years? MP: I am not sure what to think about the near future. I do not think the Take Your First Step Now incredible increase in lumber pricing can help the affordability of residential construction. If the pricing comes down on family and know what is happening in and books that will educate your com- lumber and inflation does not increase their lives. We enjoy talking before and pany on best practices, sales, market- dramatically, I believe the next couple of after work about what happened yes- ing, estimating, and communication. years will remain busy. terday or over the weekend. We feel the Read as many as you can. BB: What are some of the major apprentice program is our best resource BB: How long have you been a mem- “trends” you’ve seen change during for finding new employees and we have ber and what are the benefits you your career? sponsored five young adults from youth most enjoy about membership? MP: I believe the use of our design apprenticeship program over the years. MP: We have been a member of our service using realistic renderings has I enjoy working with and training our association for a long time. I would changed the way our clients visualize employees when time permits. guess 20 years or more. We look their projects. In the past there was just BB: What advice do you have forward to talking and joking with our mainly blueprints and some elevations for someone just getting into builder and associate members at local and section drawings. Now the client homebuilding? events. I have been involved in the can view the project on their phone, MP: You will be wearing many association while serving in numerous table, or computer. We see many clients hats when you begin in any business. committees and on the board. These asking about renovations to their exist- You may want to put aside a certain committees and board appointments ing kitchens, bathrooms, sunrooms, and amount of time each day for tasks made me a better businessperson. By outdoor spaces including decks. They that need to be done. You should get being involved with the association, you love to see renderings and video of the involved in some way with your local really know what is going on in your future projects. builders association. There are many community and this information always BB: What tactics do you use to find associates and builders that will improves our business. ■ and keep quality employees? happily give you free advice if asked. MP: We treat our employees like There are endless trade magazines

Are you a builder or associate member and want to participate in a member spotlight interview? Contact WBA Director of Communications Alicia Naleid at [email protected]

wisbuild.org // Wisconsin Builders Association 15 Foundation

BY JILL UNDERLY, PHD, STATE SUPERINTENDENT-ELECT Learning Skills in the Construction Trades Builds our State’s Future reetings, members of the projects, and ensured construction pathway in GWisconsin Builders Association! that we promoted to our the Career and Technology As I prepare to take office, it is my community the pride local Education career cluster at pleasure to share with you who I am contracts put into our DPI. This pathway serves and the value I place on the future of projects. as a guide for students to the construction trades and advancing One of the projects I am personalize their learning student learning in them. As a career most proud of as a school and incorporate their public school educator, and superin- district administrator was personal passions and tendent of a small school district, I the creation of a local interests in the construction am a fierce advocate for the building construction “academy” industry so that they are trades. Even more to the core of who for our 11th and 12th well situated and prepared I am, my father and grandfather were grade students that now is coordinated for post-secondary specialization. It’s an county-wide through CESA exciting time for our students, especially 3 in Fennimore, WI. Over those in construction, architecture, and the course of 12 weeks, our technology. One of my favorite and most students and their peers important new activities will be visiting in neighboring districts schools, technical colleges, and union learn the basics of these training programs around the state to trades: plumbing, elec- promote all our learning opportunities The WB Foundation was a main trical, carpentry, HVAC, in the building trades. It is vital that our player in helping to design the and even directional students, their families and all com- new architecture and construction drilling. Our students make munity members know that learning a connections with local construction trade builds a high-quality pathway. Thanks to members professional tradespeople career and life. who provided their expertise and and general contractors Thank you for everything you do to guidance as part of that process. who teach the classes, help promote the trades, to help build and they often are able our state and nation, and to help our to network opportunities youth find their passions and fulfillment union electricians, and my brother is a for summer or after-school employment. in their careers. I look forward to working general contractor. I understand and Many of our students have gone into the with the Wisconsin Builders Association experienced first-hand the power of the trades themselves ensuring a pipeline to strengthen public school, and all pro- building trades to deliver middle-class for these professions for our part of rural grams teaching skills in the construction family sustaining wages, and high qual- Wisconsin well into the future. trades. Let’s work together to build our ity craftsmanship. As a school district As your State Superintendent, I am so young people’s and state’s future. ■ administrator, I promoted the use of excited to continue the promotion of the local contractors in our school building trades through the new architecture and

16 Wisconsin Badger Builder ICYMI

BY TU-UYEN TRAN, FEDERAL RESERVE BANK OF MINNEAPOLIS Sky-high Material Costs Hamper Construction Industry’s Recovery Difficulties hiring workers, soft demand also hurt bottom line

Note: In March, WBA sent a survey to all members regarding economic impacts. This article is a summary of those survey results.

he housing market continued finding workers, and demand for indus- It costs more to build Tits red hot trajectory throughout trial construction and commercial and things much of the Ninth District over the nonresidential construction was still Part of the reason revenue is down winter, yet home builders reporting that soft—about the same percentages of is that there’s just less work available they had less revenue than before the respondents complained about these in all segments other than residential, pandemic outnumbered those who obstacles—but many more complained a consequence of fewer projects being said they had more, according to the about the price of building materials, available months ago when contracts on Minneapolis Fed’s February survey of which spiked by as much as 300 percent. the current work were signed. The intense the construction industry. “Material prices are killing us,” a Twin competition that resulted means what It says a lot about the industry’s Cities subcontractor reported. He said work that’s available is less profitable. But struggles that even its residential he’ll have to absorb the price increase another reason is the skyrocketing price segment, which did the best financially, himself on contracts already signed, and of lumber, steel rebar, PVC pipes, vinyl was struggling. In fact, more respon- getting new contracts is harder with the siding, wiring, and everything in between, dents in every segment reported that higher prices. which has further dented profits. the previous three months’ revenue had But there are some positive signs as Nine of 10 respondents reported some decreased year over year compared well. More respondents in every segment increase in the price of building materi- with respondents in the October con- reported seeing more projects available als in February relative to February 2020 struction survey (Chart 1). for bids in February, which could mean (Chart 2). A third of respondents said more work in the months ahead. While the price increase exceeded 10 percent. What happened? some of the increase was seasonal, Compared with the October survey, Nine of 10 respondents reported some many respondents said they felt a turn- more respondents in every segment said increase in the price of building materi- around was at hand. prices were higher than a year ago. als in February relative to February 2020. More than 500 respondents from Steel was up 20 percent for a South Respondents still had a hard time every Ninth District state took part in Dakota general contractor in the the February sur- infrastructure and heavy construction vey, which was not segment and 50 percent for a Twin a random sample Cities general contractor in the industrial and may not be segment. Lumber was up 110 percent representative of for a Wisconsin concrete contractor and the industry in the as much as 300 percent for a Twin Cities district.* home builder. Some respondents said the cost of shipping the materials had

wisbuild.org // Wisconsin Builders Association 17 ICYMI

also gone up; one Twin Cities flooring Some respondents blame the more to ramp up as the cold of winter fades contractor said it was up 30 percent. generous unemployment benefits pro- away. But several survey respondents According to news reports, there is vided by the federal stimulus for worker said they feel a rebound is coming soon a severe shortage of building material shortages, but a national shortage of and previously hesitant clients are more nationwide, in part, because factories construction workers preceded the willing to start projects. had to shut down or operate with fewer pandemic. According to news reports, “There appears to be more activity workers because of the pandemic and, it’s gotten worse because the pandemic in commercial buildings as businesses in part, because the shortage of truck has disrupted trade schools, and older are planning for people to return in the drivers continues to get worse. workers continue to retire. June-August time frame,” a Twin Cities In northern Wisconsin, one home Many respondents said in the heating and air conditioning contractor builder said the higher prices are putting February survey that they have raised said. But he added that there were still a his homes out of reach for many buyers. wages since the start of the pandemic lot of bidders driving down prices. “We cannot afford to build spec houses though not drastically. Sixty percent said Respondents in every segment said at an affordable price, and it is very skilled tradespeople received raises, and there were more projects available for difficult to secure custom builds with the 48 percent said other workers received bids and requests for proposals in both ridiculous increase in materials.” raises. But most raises were in the 1 the public and the private sectors. percent to 5 percent range. Even with more projects available in Hiring is still hard to do February, some respondents reported Finding the right workers and raising A brighter outlook two to five times as many bidders for wages high enough to hire them contin- The rest of 2021 looks brighter to each project as before the pandemic. ued to challenge the industry in recent many respondents, who expected more Some questioned if the low prices are months, according to the survey. Seven work and more revenue. even sustainable for the industry. That in 10 respondents said labor availability Respondents in every segment said might be why, even though the revenue in February was tight compared with there were more projects available outlook is better, it still shows that a three months ago, virtually unchanged for bids and requests for proposals in majority expect revenue to stay the from the October survey. Even in the both the public and the private sectors same or go lower. beleaguered commercial segment, six in (Chart 3) in February compared with A Wisconsin mechanical, electrical, 10 said labor was tight. October. The revenue outlook for every and plumbing contractor for the com- “It’s bad. There’s no one to hire,” segment improved as well. Asked to mercial segment said he has had to bid said a residential general contractor compare revenue in the following three at “near zero margins” and use federal in Michigan’s Upper Peninsula. He’s in months with the previous three months, stimulus money to provide some profit. his 50s with a bad back and instead of 36 percent said in February that they “We have to do this to compete in the managing his firm, he said his main job expected an increase, compared with current climate.” ■ now is carpenter foreman—“because only 28 percent in October. Some of this someone has to do the work.” is because construction activities tend

18 Wisconsin Badger Builder FROM START TO FINISH! Building Materials • Millwork • Hardware • Electrical • Cabinets • Appliances • Paint • Plumbing • Floorcoverings

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Single-Family Housing Permits in Wisconsin: 2020 WISCONSIN BUILDERS ASSOCIATION | 660 John Nolen Drive, Ste. 320, Madison, WI 53713 | Phone: (608) 242-5151

2021 2020 2020-21 2020 2020 2020-21 COUNTY Jan-Mar Totals Jan - Mar Totals % change Oct-Dec Totals Jan - Mar Totals % change by County by County (Jan-Mar) COUNTY by County by County (Jan-Mar

ADAMS 14 6 133.3% MARATHON 59 59 0% ASHLAND 3 8 -62.5% MARINETTE 13 7 85.7% BARRON 7 2 250% MARQUETTE 7 4 75% BAYFIELD 12 12 0% MILWAUKEE 44 47 -6.4% BROWN 153 120 27.5% MONROE 20 6 233.3% BUFFALO 1 5 -80% OCONTO 30 18 66.7% BURNETT 16 9 77.8% ONEIDA 32 32 0% CALUMET 44 24 83.3% OUTAGAMIE 85 113 -24.8% CHIPPEWA 44 23 91.3% OZAUKEE 86 49 75.5% CLARK 8 3 166.7% PEPIN 3 2 50% COLUMBIA 19 25 -24% PIERCE 18 16 12.5% CRAWFORD 6 3 100% POLK 21 11 90.9% DANE 334 376 -11.2% PORTAGE 24 18 33.3% DODGE 24 6 300% PRICE 1 3 -66.7% DOOR 49 13 276.9% RACINE 66 52 26.9% DOUGLAS 4 3 33.3% RICHLAND 3 2 50% DUNN 10 9 11.1% ROCK 74 50 48% EAU CLAIRE 28 13 115.4% RUSK 2 3 -33.3% FLORENCE 4 1 300% SAUK 30 15 100% FOND DU LAC 27 54 -50% SAWYER 20 11 81.8% FOREST 1 2 -50% SHAWANO 14 8 75% GRANT 11 14 -21.4% SHEBOYGAN 43 45 -4.4% GREEN 9 10 -10% ST CROIX 105 84 25% GREEN LAKE 9 4 125% TAYLOR 6 6 0% IOWA 15 18 -16.7% TREMPEALEAU 8 6 33.3% IRON 5 1 400% VERNON 12 4 200% JACKSON 2 5 -60% VILAS 31 13 138.5% JEFFERSON 83 34 144.1% WALWORTH 92 57 61.4% JUNEAU 30 10 200% WASHBURN 8 7 14.3% KENOSHA 44 39 12.8% WASHINGTON 117 42 178.6% KEWAUNEE 11 5 120% WAUKESHA 282 147 91.8% LA CROSSE 57 33 72.7% WAUPACA 14 10 40% LAFAYETTE 6 5 20% WAUSHARA 14 9 55.6% LANGLADE 1 5 -80% WINNEBAGO 93 47 97.9% LINCOLN 16 14 14.3% WOOD 23 12 91.7% MANITOWOC 19 12 58.3% TOTALS 262 1,941 35.3%%

The data reflected is complied using information submitted by municipalities to the Department of Safety and Professional Services (DSPS) as required by 2015 Wisconsin Act 211.