Official Publication of the Building Industry Association of Central Ohio
Volume 39 • Issue 1 | QUARTER 1 • 2022
DASO CUSTOM CABINETRY Creates Gorgeous Cabinets, Handcrafted-to-Order
2022 Meet the Board Supply Chain Disruptions Challenge the Building Industry
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CONTENTS
QUARTER 1 • 2022
8
DASO CUSTOM CABINETRY
S P E C I A L F E AT U R E S
COLUMNS
12
2022 MEET THE BOARD
5
16
PRESIDENT’S PEN Change is Needed
NEW COUNCIL GIVES MULTIFAMILY BUILDERS THE OPPORTUNITY TO CONNECT
6
EXECUTIVE UPDATE New Initiatives Serve Our Members and Our Industry
18
SUPPLY CHAIN DISRUPTIONS CHALLENGE THE BUILDING INDUSTRY
22
COMMUNICATION CORNER 5 Tips to Market Your Business Post-Pandemic
24 GOVERNMENT AFFAIRS Intel Announcement’s Impact on 2022 Public Policy Priorities
26
FOUNDATION UPDATE The Foundation’s Role In Solving Our Workforce Shortage
3
VOLUME 39 • ISSUE 1 BUILDING INSIDER is the official publication of the Building Industry Association of Central Ohio. MISSION STATEMENT As leaders in the housing industry, we are dedicated to protecting the industry while promoting ethical business practices and standards. We support our community and our members through professional development, legislative outreach, industry promotion and charitable efforts. BIA OFFICERS
Bob Yoakam, President Jane Arthur Roslovic, Senior Vice President Josh Barkan, Builder Vice President Mike Reeves, Associate Vice President Tom Hart, Secretary Troy Fritz, Treasurer Jeff Yates, Immediate Past President Jonathan Melchi, Executive Director
BIA TRUSTEES Kate Allen Steve Arnold Scott Green Todd Lipschutz Jeff Memmer Jeff Miller Nanette Pfister Joe Thomas Jonathan Wilcox Jeff Woda
BUILDING INSIDER MAGAZINE is published for the BIA by CityScene Media Group 1335 Dublin Rd., Ste. 101C Columbus, OH 43215 614-572-1240 www.cityscenecolumbus.com
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Kathleen K, Gill, President/CEO Dave Prosser, Chief Creative Officer Gianna Barrett, Vice President, Sales Jamie Armistead, Vice President, Operations Cameron Carr, Claire Miller, Editors Dan Nase, Laura Pappas, Advertising Sales Carol Rich, BIA Content Editor Rita Hechmer, Designer BUILDING INSIDER is published quarterly. For advertising information, call 614-572-1240. No part of this publication may be reproduced without the written consent of the publishers. Printed in the U.S.A. Copyright 2022. 4 BUILDING INSIDER QUARTER 1 • 2022
PRESIDENT’S PEN
Change is Needed
A
s the BIA and building industry proceed into 2022 and beyond, one thing is certain, change is needed across various aspects of our industry to achieve affordable housing.
Bob Yoakam
2022 BIA President Rockford Homes
More than 35% of Americans rent their primary residence with just over half of those Americans being considered rent burdened or spending more than 30% of their income on their rent. Central Ohio saw for-sale home prices increase 12.6% last year and are projected to rise another 6.3% in 2022. Affordability is an issue that is not only a central Ohio issue but an issue across all of America. In 2021, Columbus house sellers received an average of 102% of their list price, meaning all transactions averaged selling above their listing price. This is driven by a few factors but the largest factor, in my opinion, is supply. Builders simply cannot meet the demand for new housing in Columbus. The supply and demand factors play what is probably the largest role in affordability. When there is a scarcity of a product, material and labor costs rise and drive up the end users’ cost for the product itself. So what can be done? There are many factors that are simply not in our control at a local level, for example material availability and costs coming from all parts of the world. However, we do have the ability at the local level to influence change on the supply factor of the equation in our central Ohio region. Everyone lives and sleeps somewhere. Some people think that housing isn’t wanted amongst some or that yes, I want housing but just not here in my backyard. These types of notions are what has fueled to a large part our central Ohio housing supply shortage and affordability crisis.
In 2019, Minneapolis, Minn. was one of the first large metropolitan cities to essentially eliminate singlefamily zoning. In 2020, Portland, Ore.'s city council, seeing a similar need to increase their supply of residential housing units, voted to modify their residential zoning code to allow for more two, three and four residential units. Recently in October of 2021, the city of Seattle, Wash. voted to outright replace its single-family zoning designation term to neighborhood residential zones allowing for denser alternatives to housing. Lastly, in California we have seen the governor sign bill SB9 allowing for up to four dwelling units to be built on nearly all single-family zoned lots. Local municipal leaders – whether they are township trustees, village council members or city council members — working in conjunction with local developers, must partner with each other to achieve growth with the word ‘density’ being seen in a positive light rather than a negative light. We simply will not affect affordability change in our region unless we work toward achieving greater densities in our market, driving our supply up to meet the demand.
5
EXECUTIVE UPDATE
New Initiatives Serve Our Members and Our Industry
JON MELCHI
BIA Executive Director
F
or nearly 80 years, the BIA has existed to serve the residential construction industry in central Ohio. Over that duration, the way we’ve served our members has changed. Still, our mission to advocate on behalf of the industry, facilitate networking and industry collaboration and promote the fine work of our industry through home tours has not. I hope this is the last time in this space that I use the term “Covid,” but the pandemic did allow our leadership to reassess how our association serves our members. Last year saw several new initiatives introduced, including founding the BIA’s Industry Action Fund, a new format for the Parade of Homes, and our new dues and membership structure. This year will continue that trend. One area you will notice is that we
6 BUILDING INSIDER QUARTER 1 • 2022
will return to a full slate of networking and membership events and meetings. Our Kickstart 2021 event featuring a full roster of Speed Networking and keynote speaker Jon Petz was indicative of the type of events that we will aim to have in support of our members moving forward.
importantly, if you have anyone on your team who would like to receive BIA communications or be involved in a committee or council, our new structure allows for full participation, so let us know who they are, and Marilyn will expertly plug them into our organization.
These events aren’t possible without strong attendance and the support of sponsors. One new way for our members to show their support of the BIA is through our Hammer Club initiative, which provides enhanced membership and sponsorship opportunities for supporting companies. We are beyond grateful that the Strait & Lamp Group and Treplus Communities stepped up as our inaugural participants. Their trust in supporting the BIA is truly appreciated.
We’ve heard about the forthcoming Intel project and continued growth throughout the region. As you read this, what THIS industry does is a crucial component of our region’s overall future success. Our advocacy efforts now stretch throughout the entire region. Now more than ever, it is imperative for our industry to be engaged in promoting the “why” of housing. That will be a key focus of our organization, and we welcome your participation and involvement as we help craft and deliver that message.
I would urge all of our members looking for innovative ways to connect with our members to contact Margaret McGuire-Schoeff. Her expertise is in finding creative ways to promote your organization at BIA events and mediums, no matter the level of the financial commitment you can make. Our goal in these events is, of course, to raise money to allow us to put on high-quality events and programs, but they also must make sense for your companies and businesses.
The BIA is your organization. We must receive feedback on the direction we are headed. That could be things we are not doing, something we could do better, or even what we are doing well. I welcome input, as do our staff members, but I also know that the leadership of our committees, councils and the Board of Trustees are also excellent vehicles to help provide feedback.
As we continue to transition our membership structure to an entire company membership which will be invoiced once annually, I know that many of you may still have questions. Please do not hesitate to reach out to Marilyn Evans or me to answer any questions that you may have. More
It is an honor to serve this industry. I know our team is looking forward to a full year of doing so in a manner that benefits our membership and the legacy of the BIA.
7
7
DASO CUSTOM CABINETRY Creates Gorgeous Cabinets, HANDCRAFTED - TO - ORDER
8 BUILDING INSIDER QUARTER 1 • 2022
D
aso Custom Cabinetry builds beautiful, Ohio-made cabinetry featuring top-tier quality, workmanship and functionality — but wow-factor products are just part of what they offer. The company’s talented 49-person team delivers outstanding customer service and a stellar buying experience. “What sets us apart is that we’ve got great people to guide our clients. We support each other as we work toward a common goal,” says Jeff Daso, president and founder of Daso Custom Cabinetry. The company’s products are always made-to-order. “It’s 100% customization,” Daso explains. “We tailor-make each particular project to the customer’s needs. And anything we can dream up, we can create. We have no limitations.” A 22-year-old, family-owned business, Daso Custom Cabinetry crafts solid wood cabinetry using premium topgrade materials. Every aspect of the company’s process — from design, to building, to the final assembly, delivery and installation — is completed with care and done by hand. “We’re very hands on,” Daso says. “We have core leaders in installation, design and engineering in our shop. They lead our company every day and they communicate with our clients directly.” While clients all have direct access to Daso, his team is empowered and they can step in to handle any challenge and solve it promptly.
Ohio success story Daso, who’s from rural Wayne County, took his passion for woodworking and turned it into a flourishing business. In 2000, when he was just 19, he started Daso Custom Cabinetry, initially working out of a garage on his parents’ dairy farm. Daso was training with a custom cabinet maker while going to college, when his aunt and uncle asked him to build their kitchen cabinetry. Working nights and weekends, Daso built and installed the cabinets himself. After that first job, referrals began coming in and Daso decided to channel his cabinetry building skill and strong work ethic into running his own business. Daso’s company quickly outgrew the family garage and he leased a small building to use as his shop. A year and a half later, he bought 15 country acres in Creston, Ohio, close to the cornfields where he grew up, and turned it into his business headquarters.
By Carol Rich
The company’s master cabinet makers and their drafting and finishing specialists work out of the 25,000 square 9
foot, state-of-the-art manufacturing and finishing facility Daso built. All of Daso Custom Cabinetry’s products are custom-made in the Creston plant and everything from the wood to the hardware is only sourced from American vendors.
Showroom magic, virtual design The company’s artistry is on full display in their 2,200 square foot Dublin showroom at 13 S. High St. in the heart of historic downtown Dublin. Located in a vintage building that’s adjacent to a parking area, the showroom is highlighted by its beautiful kitchen displays. Showcased styles include unique barn door-inspired cabinets, as well as European country. “The showroom is in a great location and all the resources are there for our clients,” says Daso. Builders, remodelers and their clients can explore the showroom before sitting down with a designer to go over their style choices. The showroom was specifically designed to be a comfortable place for brainstorming design ideas and making selections. Along with their Dublin showroom, Daso Custom Cabinetry also has a showroom in Strongsville, a Cleveland suburb. But clients don’t need to visit a company showroom to see their project come together — Daso Custom Cabinetry is ahead of the curve on virtual presentations. “We do a lot of virtual design consultations,” says Daso. “We can meet clients from their living rooms or from our offices. We can save clients a lot of time and make it a very efficient process.”
Built to spec, quality through and through Daso says his company is buttoned down on every detail of the process to ensure quality from top to bottom. “People come to us for quality, and we strive to make sure that happens on every job,” Daso observes. “We have a core procedure that really works.” Daso and his team take field measurements and sit down with clients to get a good understanding of their project goals. Next step: they turn buyer input over to the design and drafting staff. These artisans excel at transforming customer concepts into imaginative and workable ideas. The draft specialists are able to expertly design cabinets that fit and make the most of any size space — even the most atypical. When the team has developed a solid project plan, they create a 3D CAD presentation that clients can view either virtually or in the showroom. At every point, the Daso Custom Cabinetry team works hard to make the experience easy and seamless for buyers. Daso regularly receives positive client feedback about how smoothly the team collaborates and how well they coordinate the many moving parts of a renovation or new build process. “I’m proud of my people — the way they lead our clients and represent our company,” Daso says. “From the cabinet engineers, to the designers, to the installation crews — at every level of our company our team takes great pride in what they do, and it shows.” For more information, visit www.dascocustomcabinetry.com
10 BUILDING INSIDER QUARTER 1 • 2022
HANDCRAFTED. LUXURIOUS. OHIO-MADE CABINETS. Your Source for High Quality, Ohio-Made Cabinetry.
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2022 MEET THE BOARD by Carol Rich
E
ach year the BIA installs a board that represents the diversity and strength of our local industry, and the 2022 board continues this tradition. The current officers and trustees bring a variety of backgrounds, skill sets and viewpoints to this year’s board. Board members include custom builders and production; large companies and small; businesses with locations in multiple states and businesses that operate solely in Ohio. The board has experts in areas that run the gamut, from multi-family building to single-family building, affordable housing, flooring, lumber, banking, law, civil engineering and surveying. 2022 BIA President, Bob Yoakam, is looking forward to the ways that this board’s ideas and participation will propel the association forward. One of his top priorities: encouraging board member involvement. “Getting involved in the BIA is the number one thing our members can do to not only assist the BIA in achieving the organization’s goals but ultimately to help all of our members get what they want out of the BIA,” says Yoakam. Focusing board members on advocacy is a prime concern for Yoakam this year. “Advocacy doesn’t just have to be limited to local municipal leaders. We need to be advocates for our industry with everybody,” he says. “We are facing challenges from every direction. Whether that is labor or material shortages, entitlement challenges, utility challenges, you name it. In order to turn the tide in the current environment, the message to those not living in the construction world needs to be positive.”
EXECUTIVE COMMITTEE Bob Yoakam, President
Company: Rockford Homes Hometown: Delaware, Ohio Years in the industry: 12 Years as a BIA member: 12 Your 2022 vision for the Board and the BIA: Get involved. As with any organization, you get out what you put into it. The BIA is a great organization that has a large impact in our industry. That impact is made by our members and their involvement with the missions the BIA is tasked with.
Jane Arthur Roslovic, Senior Vice President
Company: Treplus Communities Hometown: Columbus, Ohio Years in the industry: 30-plus Years as a BIA member: 4 Your 2022 vision for the Board and the BIA: I would like to see us get a strong apprenticeship program going
12 BUILDING INSIDER QUARTER 1 • 2022
in schools to introduce young people to the trades and the building industry. We have strong momentum with the city’s CRA program for multi-family and I would like to see that come to fruition in 2022. We need to continue our advocacy with the municipalities on zoning for residential to be a part of the much-needed growth going on in Columbus.
Josh Barkan, Builder Vice President
Company: M/I Homes Hometown: Bexley, Ohio Years in the industry: 9 Years as a BIA member: 4.5 Your 2022 vision for the Board and the BIA: In 2022 I hope to help continue to grow the BIA’s membership and the BIA’s impact on local building policies, initiatives and issues important to our members in order to continue to facilitate workforce housing in central Ohio on a reasonable basis.
Mike Reeves, Associate Vice President
Company: Kimley-Horn Hometown: Avon, Ind. Years in the industry: 16 Years as a BIA member: 5 Your 2022 vision for the Board and the BIA: I look forward to continuing our work with local communities to improve entitlement, engineering and construction process efficiencies. I also hope to create opportunities for the next leaders in our industry to get connected with the BIA.
Tom Hart, Secretary
Company: Isaac Wiles Hometown: Oak Park, Ill. (Hemmingway’s hometown of which he said it was a place of “broad lawns and narrow minds”.) Years in the industry: 25 Years as a BIA member: 18 (After a 6+ year probation period as a staff member) Your 2022 vision for the Board and the BIA: To continue to be the voice of the home building community and the leadership organization of the housing industry in articulating and documenting the connection between housing, jobs and prosperity in the region.
Troy Fritz, Treasurer
Company: Weaver Custom Homes Hometown: Columbus, Ohio Years in the industry: 42 Years as a BIA member: 6 Your 2022 vision for the Board and the BIA: As our industry evolves, it is the goal of the BIA to evolve with it, covering a broader industry base, not only for the benefit of our single-family builders, but our multi-family builders, land developers and trade partners alike. Our advocacy efforts are extremely important to be able to help meet the housing demand and keep our industry strong, and will be at the forefront of our responsibilities. The functionality of the BIA will be more important than ever in our foreseeable future, and we feel we have established a path of sustainability for the greater good of all and we hope to keep that momentum.
Jeff Yates, Immediate Past President
Company: Manor Homes Hometown: Grand Blanc, Mich. Years in the industry: 24 Years as a BIA member: 18 Your 2022 vision for the Board and the BIA: I would like to see the BIA continue with the advocacy efforts they have been working so hard on. Also, we have a lot of
great committees and councils that are ready to ramp up their presence. I am excited to help them get back up to full speed.
TRUSTEES Kate Allen
Company: America’s Floor Source Hometown: Pataskala, Ohio Years in the industry: 21 Years as a BIA member: 21 Your 2022 vision for the Board and the BIA: I look forward to the growth and new ideas of the board to overcome all of the uncertainties with Covid over the past few years. I know that everyone has an amazing work ethic and dedication to keep moving forward in the growth and development in Columbus.
Steve Arnold
Company: The Strait & Lamp Group Hometown: Born in Columbus, Ohio and grew up in Gahanna, Ohio Years in the industry: 36 Years as a BIA member: 36 Your 2022 vision for the Board and the BIA: I would like to ensure the housing industry remains strong in central Ohio.
Scott Green
Company: Park National Bank Hometown: Pickerington, Ohio Years in the industry: 38 Years as a BIA member: 33 Your 2022 vision for the Board and the BIA: My vision for the BIA is to continue their legislative efforts to allow builders to get permits in a more efficient manner.
Todd Lipschutz
Company: Maronda Homes Hometown: Chicago, Ill. Years in the industry: 25 Years as a BIA member: HBA 20, Columbus BIA 2 Your 2022 vision for the Board and the BIA: Enhance our continued efforts in the local communities ensuring we can provide market demand housing for the Columbus area. Additionally, continue to refine and enhance our new Parade of Homes revenue stream and engage with our local vocational schools to support our critical labor shortage needs. 13
Jeff Memmer
Company: Memmer Homes Hometown: Canton, Ohio Years in the industry: 18 Years as a BIA member: 12 Your 2022 vision for the Board and the BIA: To make meaningful progress on land and labor, the two largest issues we face as an industry. This will require us to tell a better story about what our industry offers to the community.
Jeff Miller
Company: CESO Hometown: Columbus, Ohio Years in the industry: 35 Years as a BIA member: 20 Your 2022 vision for the Board and the BIA: To continue to assist the central Ohio building community in overcoming the political and operational challenges in this region.
Jonathan Wilcox
Company: Wilcox Communities Hometown: Powell, Ohio Years in the industry: 16 Years as a BIA member: 5 Your 2022 vision for the Board and the BIA: To continue the BIA’s strong focus on advocacy and eliminating the barriers to our industry being able to meet the region’s demands for new housing.
Jeff Woda
Company: Woda Cooper Companies, Inc. Hometown: Powhatan Point, Belmont County, Ohio Years in the industry: All my life. My grandfather, uncle and dad were all home builders. Years as a BIA member: 15 Your 2022 vision for the Board and the BIA: I think being in the affordable housing sector, I can bring a unique perspective to the board. Bruce Luecke was that voice on the board and with his retirement, it opened up room for me to join.
Nanette Pfister
Company: Epcon Communities Hometown: Upper Arlington, Ohio Years in the industry: 40 Years as a BIA member: 30 Your 2022 vision for the Board and the BIA: My vision for the 2022 Board is to support the BIA’s advocacy in all the areas we serve. I also want to offer support to additional councils within the BIA of Central Ohio. We have a number of outstanding members and it’s a blessing to be in a position to serve them.
Joe Thomas
Company: Metro Development Hometown: Columbus, Ohio (Clintonville) Years in the industry: 29 Years as a BIA member: 29 Your 2022 vision for the Board and the BIA: To serve the members of the BIA in achieving positive change in City of Columbus CRA policy, the Columbus rewrite of their zoning code, and overall greater densities in the Columbus market.
“Getting involved in the BIA is the number one thing our members can do to not only assist the BIA in achieving the organization’s goals, but ultimately to help all of our members get what they want out of the BIA.” President Bob Yoakam
14 BUILDING INSIDER QUARTER 1 • 2022
BUILDING INDUSTRY GALA April 8, 2022 Learn more at biahomebuilders.com 15
New Council Gives Multi-Family Builders the Opportunity to Connect
I
n 2021, the BIA launched a council that gives a key group of builders and developers the chance to link up. The new Multi-Family Builders Council provides multifamily builders and developers with a forum for focusing on the issues that are most important to them. “Approximately 50% of the housing units created in central Ohio are from multi-family projects and it was important to the Board that companies operating in that space have an opportunity to network and discuss the issues that impact their businesses,” says BIA Executive Director, Jon Melchi. The Multi-Family Builders Council is co-chaired by Jane Arthur Roslovic of Treplus Communities and Joe Thomas of Metro Development. Both are experienced multi-family builders with a good understanding of the issues faced by other builders and developers in their field. The Council has been initially focused on issues with the City of Columbus, such as the update to the CRA incentive policy and the City’s zoning updates, but will be engaging across the region. The Council had its first meeting in July — and there was so much interest in attending that the meeting had to be moved to a larger room at the BIA offices. At that meeting Council members met with the City of Columbus’s Assistant Director for Housing Strategy, Erin Prosser, just a few weeks after she was appointed to her position by Columbus Mayor Andrew Ginther. Their discussion covered issues that included zoning
16 BUILDING INSIDER QUARTER 1 • 2022
code reform, the development plan approvement process, the neighborhood commission review process and annexation policy. In March, Council members will meet with Columbus Director of Planning and Zoning Services, Scott Messer. If you are a multi-family builder or developer who would like to learn more about the issues, network with others in your market segment and get involved, contact Melchi at jon@ biahomebuilders.com. Watch the BIA calendar on biahomebuilders.com for the dates of upcoming Multi-Family Builders Council meetings.
"Approximately 50% of the housing units created in central Ohio are from multifamily projects and it was important to the Board that companies operating in that space have an opportunity to network and discuss the issues that impact their businesses."
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SUPPLY CHAIN DISRUPTIONS Challenge the Building Industry by Carol Rich
S
upply chain problems are wreaking havoc on builders’ scheduling, pricing, ability to find basic building materials — and even the product choices they can offer their buyers. “Supply chain issues are impacting our industry at every level,” says Jon Melchi, executive director of the BIA. “It seems the moment one area gets smoothed out, another arises. This has made it a challenge to schedule labor and there is a real sense of frustration at all levels, including the homebuyer.” Nationally as well as locally, builders are dealing with difficulties finding the products they need to do their jobs. According to Zonda, a housing market research firm, more than 90% of the builders they surveyed in November 2021 reported that they had experienced supply problems. NAHB’s Chief Economist, Robert Dietz, says that builders are reporting shortages of essentials such as windows, doors, flooring, appliances and garage doors.
18 BUILDING INSIDER QUARTER 1 • 2022
The upshot of the spiraling problems caused by supply chain gridlock: slowdowns in workflow and rising home prices. Builders have had to reschedule work crews when material deliveries are delayed, adding complications to their process and extra weeks to project completion. In many cases, builders have had to pass higher prices on to their buyers. And they’ve also had to face buyers who are upset about wait times and shrinking product choices. “The price and availability of building materials, and the supply chain in general, remains the most pressing, immediate challenge for builders as they seek to add housing supply,” said Chuck Fowke, chairman of NAHB and a custom home builder from Tampa. What’s behind the supply chain snarl? Issues related to the pandemic have caused factories to close or run at low capacity. Factors ranging from truck driver shortages to weather-related incidents to cargo piling up at ports, have kept products and building
materials out of builders’ hands. Nationally, while supply side challenges caused single-family starts to slow in December 2021, starts still managed to post double-digit gains during all of last year. In 2021 in central Ohio, home prices and sales hit record highs. And according to realtor.com, Columbus is projected to continue this trend in 2022. A strong job market is attracting people to our area, and that will only grow stronger since Intel’s semiconductor plant will bring thousands of jobs to central Ohio in the next few years.
How builders are coping With a strong number of prospective buyers, and inventory at historic lows, builders are scrambling to find coping strategies and workarounds so they can meet market demand. For example, builders have sought out different suppliers when they’re unable to purchase needed products
Story continues on page 20
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19
Supply Chain Disruptions cont. from their usual sources. They’ve also looked into goods and materials they can substitute. Some builders are ordering essentials, like windows, months before they would normally purchase them. In an effort to track down necessary items, building companies have even turned to big box stores and online searches. Epcon Communities reported to the Wall Street Journal that they purchased metal shower grab bars online when they weren’t available from building suppliers. “The company’s electrical subcontractor resorted to buying electrical boxes in hardware stores,” said Stew Walker, Epcon’s vice president of construction. “From one week to the next, the only thing we know is that we’re going to get notified of something else that is unavailable.”
Craig Tuckerman, president of The Tuckerman Home Group, Inc., agrees. When he talks about product shortfalls with his buyers, he draws parallels to the product scarcities and delays they are seeing first hand in their own lives. “I ask, ‘how are things in your office and your home? Are you able to find what you need at the grocery and other stores?’ This really puts things into perspective,” he says. Often his buyers start to commiserate about the problems they’ve had finding products themselves. Tuckerman explains to his clients that the frustrations they face are affecting his other buyers too. And that all builders — residential and commercial, both locally and nationally — are grappling with similar supply chainrelated issues.
Garage doors have become notorious for their long lead times, jumping from the eight to 10 week leads of previous years to the current 26 week wait. "It will be Buyers have sometimes had to move into homes with temporary garage imperative that doors that are swapped out when the builders remain preferred one finally arrives.
Communicating with buyers For many builders, one of their toughest challenges is finding ways to communicate with buyers who are stressed by lengthy wait times and unavailable products.
in constant communication with their customers on delays and challenges."
“It will be imperative that builders remain in constant communication with their customers on delays and challenges,” says Melchi. “People are seeing shortages everywhere, from the grocery store to restaurants, so I believe that people will understand so long as they feel they are being kept up to speed.” 20 BUILDING INSIDER QUARTER 1 • 2022
“We also explain to them that some of our delays are due to being faithful to our trades we have worked with for years,” he says. By working with companies he knows and trusts, Tuckerman observes, he lessens the chance of poor product quality or warranty issues down the road. “It is more beneficial to our buyer to wait for the guys that know us, as we know them,” he emphasizes.
“For our buyers and our trades, we are honest, but direct with them. Patience and understanding,” Tuckerman says. “And we explain that the vast majority of all of this is way out of our control. They don’t like to hear it, but they do understand and accept it.”
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COMMUNICATIONS CORNER
5 Tips to Market Your Business Post-Pandemic
Riley Watson
BIA Manager of Marketing & Communications
1. Extend your online presence
3. Tell your customers who you ARE, not just what you sell
Keep your customers engaged by frequently utilizing social media, online webinars or newsletters. Use these tools to share your knowledge about the industry, showcase what you have to offer and demonstrate yourself as a leader in important industry conversations.
Now more than ever, people are seeking to purchase from companies that align with their values. They want to see who they are buying from and support businesses that contribute to the causes they believe in. Participate in current events and put a face on your brand. This creates meaningful human connection and lets customers know their money is going to a good place.
Moving away from traditional advertising methods has proven to be beneficial as well. With more people working from home, billboard and radio ads are not as effective as they used to be when aiming to capture viewers’ attention. We live in a digital age. Don’t get left behind! Keep up with your customer base by placing ads where your target audience will most likely see them — online.
2. Make your website userfriendly and your service customer-oriented Online shopping has skyrocketed during the pandemic. Having a userfriendly website and excellent online customer service is important. Make sure your website is easy to navigate and consider setting up live-chat bots or FAQs on your website to provide a seamless customer experience. Offering COVID-sensitive services is also important. Although we hope to come out of the pandemic soon, it’s still important to prove to your customer base that you care about their safety and comfort. You can do this by wearing masks and offering no-contact delivery on the items you sell. In addition, creating an online store where customers can purchase goods or services rather than coming into a store can help your business maintain customer interactions.
22 BUILDING INSIDER QUARTER 1 • 2022
4. Make customer retention a priority Make sure your customers are rewarded for their loyalty. It’s no secret that the pandemic has impacted customers’ finances, so make sure to reward them for spending their hard-earned cash on your business. You can do this by offering discounts to returning customers or certain groups of people such as healthcare workers, in order to keep their business.
5. Businesses that work together, win together Partner with other local businesses when you are advertising. The pandemic has had a significant impact on small businesses, so by partnering with them you will be communicating to your customers that you care for and support their communities. This will expand your potential pool of customers into markets that you may not have had previous exposure to.
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GOVERNMENT AFFAIRS
Intel Announcement’s Impact on 2022 Public Policy Priorities By Malcolm Porter
T
he well reported influx of new jobs resulting from Intel’s historic investment in central Ohio’s economy brings an even greater focus to the challenges of the chronic underbuilding of housing in our region. 2022 is shaping up to be a crucial year for housing. Central Ohio has a rare opportunity to transform its economy with a new generation of employees in high tech. However, for the full benefit of Intel’s potential future expansion in the region to be realized, there must be a healthy housing market. Will the Intel announcement bring new players to the table that will change the dynamics that have restricted land use decisions that continue to constrain the local housing market? Our region would appear to have a unique opportunity to alter the regulatory landscape of its housing market. Significant changes to funding and development approval processes are likely to be needed as a part of a comprehensive strategy for increasing housing opportunity in the region. It is not an overstatement to say that the country is watching for how central Ohio responds to the challenge.
24 BUILDING INSIDER QUARTER 1 • 2022
Local Government Fiscal Policies. Current economic development policy is focused on the costs associated with the job site that creates the tax revenues that make the project worthwhile. There is little to no accounting for the costs associated with the housing of the workers for that job site. It is generally believed in local government circles that “jobs” are an economic gain; however, “housing does not pay for itself.” Therefore, local governments are incentivized to pursue jobs and minimize/ deny housing. The strategy is to encourage/require that the workers live in some other community. Over decades, the implementation of this philosophy to minimize housing has led us to the current underbuilding of the market. Is now the time for bold thinking that extends income tax revenue benefits beyond the job site community to include the community where the worker lives? And should we apply this same sharing of revenues to include school districts? The time is upon us to give serious consideration to some fundamental change to the economics of jobs and housing. Process Timelines. The norm to obtain zoning and development plan approvals in our region is between 18 and 36 months. A series of best practices for these approvals needs to be designed to shorten this timeframe, while providing clear expectations on both the private and public sector participants for their roles in the process. Approval process changes will be different for each jurisdiction. However, a common theme of a shorter, more predictable, and more
transparent approval process must prevail if the region is to come close to addressing Intel’s increased housing demand that is a few short years away. We must remember, Ohio is a home rule state. Land use decisions are held by local governments. Changes in policy and practice must be a platform for drastically improving the housing market for the region, while still recognizing local governments’ ultimate authority to make land use decisions. Wide ranging local government examples go from existing efforts to update the Columbus zoning code, to Liberty Township updating their comprehensive plan to areas of new need, like conservation zoning codes and utility policies in western Licking County. How will we achieve regionwide housing market reform? It will not be easy. It will require leadership from policy decisionmakers. It will require some increased risk taking to try new ideas. It will require focused attention from all stakeholders, as the housing demand clock continues to tick. The BIA has begun these kinds of conversations and seeks new solutions to address our existing, and expected future increased housing demand. The Board of Trustees will lead both the Builders and Developers Council, as well as the Multi-Family Council, in working through details of new policies and initiatives. All BIA members are invited to these forums to share your ideas and input. Malcolm Porter is Public & Government Affairs Consultant for the BIA.
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A Home For Hands that Build.TM 25
BIA FOUNDATION
The Foundation’s Role In Solving Our Workforce Shortage
T
JON MELCHI
BIA Executive Director
he news in January of Intel locating a new facility within central Ohio was welcome news on a variety of levels. It's a new industry in our region and will be of vital importance to our national and global economy. Moreover, there will be thousands of well-paying jobs associated with the factory and all related suppliers locating facilities in the region. One number stood out to me, and that was 7,000. That is the number of construction workers estimated to be needed to build this facility, not necessarily including all of the related facilities. If you've seen that number previously or are reading it for the first time, I suspect you had the same reaction I did, which is, "where exactly are we going to find 7,000 workers when we already have a workforce shortage in the area?" That will be an essential question of vital importance as we work toward the 2025 open date of that facility. Infrastructure such as utilities and roads will need to be put into place. In addition to the actual facility being built, we will also need to increase housing production. In discussion with leaders from the economic development community, they understand the challenges before us. The BIA's Foundation is eager to be a part of the solution. For many
26 BUILDING INSIDER QUARTER 1 • 2022
years, this has been done through our scholarship program and the funding of select programs, such as Franklinton Rising. However, as with all organizations, occasionally, there is the need to ask the question: is the way we've done it in the past the way we need to be doing it in the future? BIA Foundation Chairman, Jack Graf, has charged the Foundation to identify how the Foundation can best tackle workforce development challenges. The Foundation board welcomes suggestions and input on how we can do so. The BIA Foundation exists because of the generous support of our members over the years. We need your support in helping to make sure that support continues. That's why this year, the BIA Holiday Party will also double as a fundraiser for the BIA Foundation. I sincerely hope we will have strong participation from the membership as we seek to raise money to help fund the Foundation's future initiatives. Make no mistake, the fact that there is such a demand in our market that we must tackle this problem is a much better challenge than the alternative. We look forward to being a part of the solution and need your involvement to maximize the impact of our organization in meeting the needs of our region.
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Membership Report Your BIA annual dues renewal is July 1, and renewal information will be sent soon. Please contact Marilyn Evans with any questions or for more information.
The BIA membership continues to grow in 2022. Total Membership: Builders | 163
642
Affiliates | 166
Associates | 289
Realtors | 24
NEW MEMBERS SINCE NOVEMBER 2021 Associate Diamond Kote Building Products Larry DeFrank Larry.DeFrank@dksiding.com (614) 314-0889 (800) 236-1528 ext.25094
Builder/Developer Lifestyle Communities Ross Sanford ross.sanford@ lifestylecommunities.com (614) 918-2000 (614) 918-2000
Everhart Advisors Michele Kowalik
Builder/Remodeler Gorman & Sons Custom Builders, LLC Thomas Gorman tgorman@columbus.rr.com (614) 989-2466
michelek@everhartadvisors.com
(614) 717-9705 (614) 245-3315
Painter and Associates Tom Hart
Tom@painterandassociates.com
(614) 319-3306
Prinsco Monty Storms MontyS@prinsco.com (260) 403-7139 Rookwood Pottery Steve Brown sbrown@rookwood.com 937-594-9162 Schluter Systems Aaron Woodruff AWoodruff@schluter.com (888) 472-4588 True North Builders LLC Nathan Plunkett TheTrueNorthBuilders@ gmail.com (614) 285-6535 (770) 561-3121
Realtor 3 Degrees Realty LLC Jeanetta Caradonna jeanetta@3DegreesRE.com (614) 932-2000 BRENNER. Real Estate for a New Era Sara Marie Brenner hi@brenner.realestate (866) 677-7778 Coldwell Banker King Thompson Yasmeenah Estep yasmeenah.estep@ kingthompson.com (614) 451-0808 Darlene Kuzmic - ERA Real Solutions Realty Darlene Kuzmic darlene.Kuzmic@ERA.com (614) 704-5599
28 BUILDING INSIDER QUARTER 1 • 2022
ERA Real Solutions Realty Denise Bohnert denise.bohnert@era.com (614) 434-8004 Keller Williams Consultants Realty Diane Lorenzo diane@centralohioliving.com (614) 932-2000 Keller Williams Greater Columbus Realty Dala Bishop dalabishop@kw.com (614) 944-5900 Keller Williams Greater Columbus Realty Paul George halfthebeatles@aol.com (614) 944-5900 Parker Realty Associates Malia Mast Maliarmast@gmail.com (614) 441-5731
Single-Family Builder Homewood Corporation Steve Christman
schristman@homewoodcorp.com
(614) 898-7200
Lennar Terry Andrews Terry.Andrews@Lennar.com (317) 659-3200 Craig Jensen Craig.Jensen@lennar.com (317) 659-3200 Sy Kasarjian Sy.Kasarjian@Lennar.com (317) 659-3200 Joe Lane Joe.Lane@Lennar.com (317) 659-3200 Keith Lash Keith.Lash@Lennar.com (317) 659-3200 Lindsey Morris Lindsey.Morris@Lennar.com (317) 659-3200 Nicole Scott Nicole.Scott@Lennar.com (317) 659-3200
JOIN TODAY BUILDERS
ASSOCIATES
REALTORS
Builder members include single-family builders, multi-family builders, remodelers, general contractors, land developers. Compliance with the BIA Professional Standards and BIA Ethics Policy is a condition of membership. Builders’ dues are based upon the number of sales premits from the preceding year.
Associate members are any individual who is engaged in, or employed by a firm or corporation engaged in a trade, industry, or proffession related to the builder industry and does not qualify as a builder member.
This is a new membership we will be offering to license Realtors in the central Ohio area. This is an individualized local BIA Membership that will not have NAHB and OHBA affiliation. This membership will offer only local BIA benefits. You will be able to receive BIA communications and updates, as well as invitations to BIA events and council meetings.
REASONS TO JOIN
REASONS TO JOIN
REASONS TO JOIN
Builder Resources:
3 Memberships for 1: In addition to the BIA of Central Ohio, you are a member of the Ohio Home Builders Association and the National Association of Home Builders.
Networking: The BIA offers many opportunities to get involved, meet other members, and share your expertise through events, committees, and education.
• • • • • • •
Sales Contracts Warranty Documents Home Owners Manuals Building Permit Forms Online Job Listings Online Home Listings Online Lot Listings
Home Shows: The Parade of Homes is the largest showcase of new homes in the central Ohio region. This event attracts thousands of potential customers to our members. Legislative Advocacy: An association that represents the voice of the industry to governing bodies on a variety of issues. Active lobbying for industry members at the local, state, and national levels. 3 Memberships for 1: In addition to the BIA of Central Ohio, you are a member of the Ohio Home Builders Association and the National Association of Home Builders. Savings Partners: As a BIA member, you receive special benefits and/or pricing from select organizations. Visit our website for a full list of savings partners. New Home Listing: Builders Digital Experience (BDX) has partnered with the BIA of Central Ohio to help builders list their homes for free online. And now this member benefit has gotten even better and includes more exposure.
Networking: The BIA offers many opportunities to get involved, meet other members, and share your expertise through events, committees, and education. Savings Partners: As a BIA member, you receive special benefits and/or pricing from select organizations. Visit our website for a full list of savings partners. Home Shows: The Parade of Homes is the largest showcase of new homes in the central Ohio region. This event attracts thousands of potential customers to our members. Legislative Advocacy: An association that represents the voice of the industry to governing bodies on a variety of issues. Active lobbying for industry members at the local, state, and national levels. Member Directory: As a BIA member, you receive a physical copy of our member directory and a online searchable directory that is accessible to both members and consumers.
Savings Partners: As a BIA member, you receive special benefits and/or pricing from select organizations. Visit our website for a full list of savings partners. Home Shows: The Parade of Homes is the largest showcase of new homes in the central Ohio region. This event attracts thousands of potential customers to our members. Legislative Advocacy: An association that represents the voice of the industry to governing bodies on a variety of issues. Active lobbying for industry members at the local, state, and national levels. Member Directory: As a BIA member, you receive a physical copy of our member directory and a online searchable directory that is accessible to both members and consumers.
Dirt & Lot Exchange: BIA members are encouraged to post available lots they have for sale. Also, if you are looking for or need to get rid of dirt, as a BIA member, you can place a free listing on our website with your contact information so other members can contact you. Member Directory: As a BIA member, you receive a physical copy of our member directory and a online searchable directory that is accessible to both members and consumers.
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2022 BIA EVENT CALENDAR
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