CMBA October 2019 On The Level

October 2019

Central Minnesota Builders Association

Oktoberfest Wednesday, October 9

Sponsor

Neighbors Route 75 Details on page 3

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Bayer Interior Woods

CMBA MEMBER

Sauk Centre, MN 760 Beltline Road 612-346-8212

SPOTLIGHT

Bayerinteriorwoods.com Visit us on Houzz and Mortarr

Total Interior Wood Solutions for Builders Bayer Interior Woods is providing custom cabinetry for 374 units in the prestigious Legacy luxury condominium project in Minneapolis, Minnesota.

Located in the heart of central Minnesota, we help commercial and residential builders bring unified style and craftsmanship to their projects with an integrated collection of custom cabinetry, coordinating millwork, and closet/garage organization systems.

Choose from modern frameless and traditional face frame cabinetry in good, better, best product lines to fit every dĂŠcor and price point.

With Bayer Interior Woods, you get the cost-effective convenience of a turn-key solution for the entire interior—and the added value of a unified look throughout your project.

CMBAonline.org

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WEDNESDAY, OCTOBER 9

INSIGHT INTO THE FBI Speaker, Deborah Strebel Pierce retired Deputy Assistant Director of the Criminal Investigative Division of the FBI in 2006. Prior to her position in Washington DC, Deborah was the Special Agent in charge of the Minneapolis office for three years immediately after September 11, 2001. Her 27 years in the FBI were spent investigating and managing criminal and terrorism investigations in multiple offices.

Neighbors Route 75 2010 County Road 75, St. Joseph, MN (Across from Bee Line Sports Center) 5:30 - Social—6:30 Dinner & Speaker $19 ($24 after October 3 )

Roasted chicken with beer glaze, Sauerkraut spätzle with German sausage, warm German Potato Salad, Bavarian beer cellar coleslaw, Red cabbage salad with smoked cheese, Apple crisp with streusel topping

Since retirement, her international contacts have taken her to places such as Tajikistan, Finland, Austria and Peru to promote leadership for women in public service.

RSVP event RSVP link Email colleen@cmbaonline.org Call 320.251.4382

She manages Pierce-Weber Partnership for educating the public about the FBI and the CIA as well as areas of specific interest to include Leadership Lessons Learned, Identity Theft, Art Theft and Safe Travel. Deborah is the Chair of the Retired FBI Agent’s Chapter of the Society of Former FBI Agents for Minnesota and the Dakotas. She is a founder and International Vice President/Secretary of The Consortium for Women Leaders in Public Service headquartered in Washington, DC.

Meeting Sponsor

IT PAYS TO ATTEND Bring $50 moolah for a chance to win (2) $50 gas cards

 Doris Westra, Leighton Broadcasting won 2 $50 gas cards at the September Meeting.

Tammy Reis, American National Bank of MN won the $86 Jackpot.  3

September Meeting Attendees

OCTOBER 2019

12pm Spike Mtg @ Liberty Bank MN 7:30 am HomeShow Mktg Mtg 9:30am Blattner Tour w/ Cong. Emmer

4pm Brd Mtg 5:30pm Membership Mtg

Sponsor Liberty Bank MN

7:30am CBC Breakfast with Bldrs @ Tech High Tour

730am Home & Lifestyle Show Mtg

12pm RC Brd Mtg

2PM SE Taste Test

10am Tools for Schools Mtg 12pm Tour Committee Mtg

9 am Membership Committee Mtg

EO Retreat— Bug Bee Hive Resort

NOVEMBER 2019

Home & Lifestyle Show Booth Booth Registration Opens Mid October

12pm Spike Mtg @ Liberty Bank MN

7:30am RC Breakfast w/Bldrs Mtg TBD

4pm Brd Mtg 5:30pm Tools For Schools Membership Mtg @ Eagles Club Sponsor Thomas Tool 12pm RC Brd Mtg

7:30am HomeShow Mtg

CMBA CLOSED

View CMBA Online Calendar Here CMBAonline.org

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Calendar subject to change—watch online

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ON THE

LEVEL

Three in one membership

October 2019

Central Minnesota Builders Association

Advertisers in this Issue Page Number 5 Builders Carpet Inc. dba Focal Point Flooring 15

Federated Mutual Insurance

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H&S Heating & A/C Residential & Service LLC

26

NAHB Member Advantage

7

Thermo-Tech Windows

21

Tri-County Abstract and Title Guaranty

19

Xcel Energy

Contact Us Give CMBA a call for more information regarding member services and a free list of member professionals.

CMBA 1124 W St. Germain Street, Saint Cloud, MN 56301 (320) 251-4382 CMBA STAFF emails Bonnie Moeller bonnie@cmbaonline.org Executive Director

JAN 21-23, 2020 | LAS VEGAS Register by November 15 to save!

Opening Ceremonies featuring Earvin “Magic”Johnson Tuesday, January 21 | 8-9 AM

Closing Concert with the Doobie Brothers Thursday, January 23 | 5-7:30 PM

Colleen Corrigan colleen@cmbaonline.org Communication | IT | Exec Asst

Jenny McDermond office@cmbaonline.org Administrative Assistant

Visit us online www.cmbaonline.org On The Level magazine is the official publication for the Central Minnesota Builders Association. Send your email addresses to be added to the list of subscribers.

ON THE LEVEL has 10 issues per year sent electronically to members and others associated with the building industry.

Neither the advertisers, nor CMBA will be responsible or liable for misinformation, misprints, typographical errors, etc. herein contained. For advertising rates or address change information contact CMBA. Suggestions and ideas are welcome.

One Advertising Price Full page ad—$150 Click to Advertise

About the Cover: Former FBI agent to speak Deb Pierce sponsored by Liberty Bank MN

CMBAonline.org

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CMBA 2019 Board of Directors OFFICERS/DIRECTORS

Thoughts on Fall Construction 1st V/P Tony Steinemann ADS Designs LLC

2nd V/P/Treas.

Nate Moeller

Secretary Sue Lentner

Paramount Construction

Tri-County Abstract and Title Guaranty

CMBA President Ron Euteneuer, Great Northern Environmental Solutions

October…Fall is in the air. Cooler temperatures. Brighter colors.

Oktober Fest. Caramel apples.

Cider. Halloween and first hard frost.

Time to exchange lawn mowers and rakes for snow blowers and shovels; Shorts for flannel shirts and hot chocolate for lemonade.

What significant events happened in the 10th month of the year? October 4, 1957: Sputnik, the first satellite was launched.

October 12, 1492 Christopher Columbus landed in America. And of course, the last day, the 31st …

Halloween.

What’s going on: The Fall Tour of Homes was a great success. Lots of favorable comments from the members and participants. Congrats to the Tour of Homes committee for a job well done! Check out the CMBA website for further details.

Please consider joining in on the Tools for Schools campaign. See the CMBA website for more details.

I will be attending the Fall Building Official’s Conference in late October to learn details of the upcoming 2018 Building Code adoption process, stay tuned for further information.

Great time of year to contact recent clients to offer a Fall Tune-up Special for their homes or businesses. Inspection of furnaces, boilers, fireplaces, air CMBAonline.org

handling equipment, filters, energy audits and equipment upgrades. With cold weather approaching, a good time to check smoke and carbon monoxide detectors, fire extinguishers, egress windows, stairs and handrails, insulation and weather stripping, sump pumps and drainage systems. A great opportunity to generate additional business and of course, referrals.

Associate V/P Robin Gohman

Past President Chris Froelke

Jack Brandes

Liberty Bank MN

RetroGreen Energy

Lumber One Avon

Alex Mastellar

Jeff Millner

John Muller

Rinke-Noonan

Millner Construction

SB Restoration Services

Thoughts on Fall Construction: Be sure to include temporary heat, snow removal, ice and frost conditions when preparing bids and estimates for your upcoming projects.

And, of course, it is time to get inground and underground construction started before winter.

Be sure to come to the City of Sartell on October 5th for the City’s birthday party.

I will be displaying my model trains at the Community Center. Check the City of Sartell website for details.

Consider attending the Haunted Caboose in Waite Park on Halloween.

Bring your children, grandchildren and friends. I will be in appropriate costume. The address is 201 Third Street North. See the City of Waite Park website for further details.

“Even if you’re on the right track, you’ll get run over if you just sit there.” ~ Will Rogers Sincerely, Ron Euteneuer 8

Jeremy Salzbrun

Stuart Swenson

David Werschay

H&S Heating & A/C, Residential & Service LLC

Suncom Development, Constr., Management

Werschay Homes Inc

NAHB DIRECTORS 2019 Tony Steinemann, ADS Designs David Werschay, Werschay Homes Ron Euteneuer, Great Northern Environmental Solutions LLC

BAM DIRECTORS 2019 Steve Noble, Noble Custom Homes Tony Steinemann, ADS Designs Ron Euteneuer, Great Northern Environmental Solutions LLC Marty Czech, Premier Real Estate Services Mike Gohman, W. Gohman Const. Co.

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Local, State & National News DLI / Minnesota Adoption of 2018 Building Codes The Department of Labor and Industry (DLI) released its intent to adopt permanent rules governing the adoption of the 2018 building codes. The rules are expected to be effective as of March 2020.

Chapter 1309, International Residential Code, is open for comment until October 16, 2019.

The CMBA has been working with BAM and other industry leaders to review the proposed codes and work through the potential cost of those changes. A special thank you to Mike Paradise of Rochester Area Home Builders Association and Kurt Welker of South Central Builders Association for serving on the Technical Advisory Groups (TAGs) throughout the process.

More information is available on the DLI website: http://www.dli.mn.gov/ about-department/rulemaking/ rulemaking-docket-minnesota-ruleschapter-1309 Watch for CMBA education on the new codes in Jan. and Feb. 2020.

MPCA / Construction Waste The Minnesota Pollution Control Agency (MPCA) has convened two groups to work on improving the current construction and demolition system.

The Construction and Demolition Rule Advisory Panel will address permitting C&D landfills and improved environmental protections.

The MPCA plans to amend existing Minnesota rules governing C&D landfills (chapters 7001 and 7035).

At this point the MPCA has no draft language for the rule.

CMBAonline.org

The Sustainable Building Upstream Stakeholder Group will recommend ways to reduce the environmental impacts of materials as well as how the new system will work financially.

More information: https:// www.pca.state.mn.us/waste/ stakeholder-advisory-groups Watab / Subdivision Ordinance and Development Agreement The Watab Board held public hearings for its proposed Subdivision Ordinance and Development Agreement in late September. The CMBA worked with the Township on the proposed documents and commented during the public hearing. Expect the documents to be acted upon during the October 10 meeting of the Board.

Note: these requirements will be in addition to those for Benton County.

Planning to develop in Watab Township, check out the documents under Documents Download at https:// www.watabtownship.com/agendas Sartell / Moratorium on Platting PUDs / R-5 During its September 23 meeting, the Sartell City Council adopted an Interim Ordinance that would place a one year moratorium on platting within R-5 zones. The council felt that the PUD zoning areas lacked definition and clarity, and is bringing on Sourcewell as a resource to assist the city with updating ordinances and land use plans.

The intent is to work step by step to release areas from the moratorium when the Council believes definition and clarity are achieved.

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CMBA Contacts Minnesota Senators on DOE expansion in Code Process On behalf of CMBA members, President Ron Euteneuer contacted Minnesota Sens. Klobuchar and Smith asking them to oppose S. 2137, Energy Savings and Industrial Competitiveness Act. This legislation would allow the Department of Energy (DOE) to expand its role in the code development process, specifically relating to costly and aggressive energy efficiency requirements.

EPA Rescinds Obama-Era WOTUS Rule The EPA on Sept. 12 rescinded the Obama-era “waters of the U.S.” (WOTUS) rule, ending years of uncertainty over where federal jurisdiction begins and ends. Prior to EPA’s repeal announcement, an Obama-era rule was in effect in 22 states and the District of Columbia, and the remaining 28 states followed 1986 regulations.

The EPA decision means the 1986 rule will now be in effect in nationwide until a final replacement rule is issued. The Trump administration has proposed a new WOTUS rule that NAHB generally supports.

SAVE THE DATE Builder Day at the Capitol March 11, 2020 Watch for details.

Building Permit Report

January - December 5 Year History

Jurisdiction 2015

2016 2017 2018 2019

Aug-18

Aug-19

Cold Spring

8

9

12

20

10

0

2

Foley

3

4

6

4

6

0

0

St. Augusta

11

16

11

10

7

2

1

St. Cloud

81

65

83

61

58

10

11

St. Joseph

4

12

10

16

8

2

0

Sartell

36

52

36

45

36

6

8

Sauk Rapids 24

35

21

22

19

2

5

Waite Park

3

2

3

2

0

0

Rice

1 1

3

5

8

16

Rockville

7

11

3

6

3

Total

168

210

189

195 165

0

5

1

1

23

33

2014

2015

2016

2017

2018

Cold Spring Foley

11

10

14

20

27

3

6

6

7

9

St. Augusta

13

13

21

16

14

St. Cloud

93

100

113

109

86

St. Joseph

6

7

18

12

19

Sartell

73

61

81

52

61

Sauk Rapids

29

33

45

29

31

Waite Park

2

2

7

2

4

Rice

8

2

3

8

9

Rockville

7

7

11

3

9

245

241

319

258

269

Total

Building Permit Report comparing Jan—August (St. Augusta reports quarterly)

Five year building permit report Jan.—Dec.

for St. Cloud

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Age Distribution of Construction Labor Force

BY NA ZHAO ON SEPTEM BER 19, 2019 • (2)

The latest labor force statistics from the 2018 Current Population Survey show that the construction industry continues to struggle to attract younger workers. While workers under the age of 25 comprised 12.3% of the US labor force, their share in the construction industry reached only 9% in 2018. Meanwhile, the share of older construction workers ages 55+ increased from less than 17% in 2011 to almost 22% in 2018.

An earlier post showed that the construction workforce is aging faster than the overall labor force. Compared to the workforce in all industries, construction has a relatively smaller share of younger workers, but a larger proportion of workers in their prime-working age. The chart below shows that, as of 2018, only about 9% of construction workers were 16-24 years old, less than the employment share of this age group in all industries. Around 69% of construction workforce were in the prime working years of 25-54, compared to 64% in overall workforce. The share of workers ages 55 and older was 21.7% in construction, implying that a substantial portion of workforce would retire in near future. The relative greater share of workers in construction in the 35-55 age group, mostly Gen X-ers, reveals the current challenge. Gen X is a smaller generational group that the Baby Boomers were.

Analysis of the age distribution of construction workers over time reveals that the construction workforce is aging, with the share of older workers ages 55+ rising from 16.8% in 2010 to almost 22% in 2018. At the same time, the proportion of workers ages 25 to 54 declined from 74.6% to 69.3%. This change in age composition of construction labor force is largely because the last elements of the Baby Boomer generation are entering the 55+ age group. The share of younger construction workers ages 19 -24 edged up to 9.0% from 8.6%.

Michigan Wins Long Legal Battle After nearly a decade of litigation and two trips to the state Supreme Court, the Home Builders Association of Michigan secured a resounding victory for the home building industry. In 2010, the HBA of Michigan challenged several permit fees imposed by the City of Troy as unlawful under Michigan’s Construction Code Act. The act requires such fees to be reasonable and prohibits them from exceeding the cost of running the building department. But when the department privatized, excess permit fees began going to the city’s general fund. The Michigan Supreme Court recently unanimously ruled in the HBA of Michigan’s favor, remanding the case to the lower courts for further deliberation on the budget of the building department and other issues, but still handing a clear victory to the home builders. NAHB's Legal Action Fund provided $50,000 to support the litigation.

CMBAonline.org

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Real Estate Market Value Shows Minimal Growth in Q2 2019

BY LIT IC MURALI on SEPTEMBER 23, 2019

The recently released Federal Reserve’s Z.1 Financial Accounts of the United States report (formerly known as the Flow of Funds report) shows the latest transactions in households’ balance sheets as they occurred in the second quarter of 2019. The growth in the market values of homes in the U.S. grew less proportionately to the growth in mortgages taken on them than in previous quarters, i.e., households’ liabilities grew more than their assets. Thus, for the first time since the first quarter of 2012, owners’ equity in real estate as a percentage of household real estate declined, from 64.3% to 64.2%. On a non-seasonally adjusted basis, the market value of homes in the U.S. totaled $29.1 trillion and their mortgages totaled $10.4 trillion, leaving net equity at $18.7 trillion. This marks only the second year since 2012 in which the PPI for gypsum products has been lower in July than it was in January.

Prices paid for lumber and plywood fell 0.3% (NSA) in July, while the index for goods used in residential maintenance and repair increased 0.6% (NSA) and the prices of prepared asphalt and tar roofing products was unchanged (NSA). The 12-month changes in these three indices was -15.9%, -0.7%, and +5.0%, respectively.

The above figure shows the plateauing of total real estate’s market value in the most recent quarter of data.

As noted above, this is the first time since the first quarter of 2012 that the net owners’ equity as a percentage of household real estate declined. The first quarter of 2012 was also the trough of household’s assets’ market values following the Great Recession.

HBI, Home Depot Expand Partnership The Home Depot Foundation and the Home Builders Institute (HBI) recently expanded their partnership to address the skilled labor shortage by launching a youth trades training program. The program and its industryrecognized Pre-Apprenticeship Certificate Training (PACT) curriculum will be available to 11th and 12th grade students in roughly 25 high schools with a focus on under-served communities across Colorado, Florida, Virginia, Alaska, Texas, Alabama, Tennessee, New Jersey and Massachusetts. Each program will be supported by a twoyear PACT curriculum, classroom enhancements, and updated tools and equipment for a hands-on training environment. Upon completion, participants will earn a pre-apprenticeship certification — endorsed by NAHB and recognized by the U.S. Department of Labor — provided at no additional cost to students and their families. The program will expand to more high schools in 2020.

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reakfast with uilders Commercial Builders Council Breakfast and Tour of Tech High School

Thursday, October 17 7:30 AM Tech High School Tour— 33rd Street and County Rd 74, St. Cloud Sponsor: CMBA members are invited to join us on a personal tour of the new 324,000 square-foot Tech High School. The newest in learning technology, three learning neighborhoods, collaboration and studentcentered classrooms, walls with monitors controlled with teacher laptop, fields, dugout, bleachers and track. The new school will accommodate about 1,600 students grades 9-12. YouTube Video https://youtu.be/EApe5MxfME0

Recommend a Meeting Topic Sponsor a Council Meeting All Council Breakfasts are typically held the first Thursday of the month at 7:30 am Start the fall off right!

Become a Council member – by attending three meetings September – June $12 w/RSVP, $15 at door.

(No show RSVP will be invoiced.)

RSVP Online - cmbaonline.org home page upcoming events/find the

event and click register By phone 320.251.4382 coleen@cmbaonline.org

The September Remodelers Council Breakfast with Builders was at Mathew Hall Lumber upstairs meeting room. Matt Glaesman, St. Cloud Community Development Director discussed housing trends impacting the St. Cloud Area.

UP NEXT Simonson Lumber will sponsor the Thursday, November 7th Breakfast with Builders Remodelers Council Meeting.

Details available soon.

CMBAonline.org

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Bowling With Builders Meeting sponsor bringin’ the HEAT!

CMBAonline.org

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TOP PIN score 179 - Nate Moeller, Paramount Construction

New CMBA Members

Bayer Interior Woods represented by l-r Pat Rooney, Heidi Kelling Nikki Johnson with sponsor Ron Euteneuer, Great Northern Environmental Solutions LLC

MidCountry Bank represented by Tony Sofio with Ron Euteneuer, Great Northern Environmental Solutions LLC standing in for sponsor Art Buhs, Central MN Habitat for Humanity

Toilet Bowl (low score 50) Tammy Reis, American National Bank of MN

Sponsor Jack Brandes, Lumber One Avon, with Greg and Karla Wensmann, Wensmann Contractors LLC

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Strength in Numbers Renewals Thank you to the following members, who renewed their membership in August.

40-48 YEARS Simonson Lumber ....................... 1973 East Side Glass Company .......... 1975 Times Media................................ 1975 30-39 YEARS Mechanical Energy Systems, Inc.1983 Bergan KDV ................................ 1985 Rice Companies .......................... 1987 Liberty Bank Minnesota ............... 1988 25-29 YEARS Central Marble Products Inc. ....... 1990 Andersen Windows, Inc. ............. 1991 Bayer Built Woodworks, Inc. ....... 1991 Schlenner Wenner & Company, CPA's................. 1992 Full-Fledged Distribution, Inc....... 1992 Klein Builders, Inc. ...................... 1993 Haus Construction, Inc. ............... 1993 20-24 YEARS Home Check Plus, Inc. ................ 1997 Central Landscape Supply, Inc. .. 1997 Tom Kraemer, Inc. ...................... 1997 St. Rosa Lumber Inc. .................. 1998

15-19 YEARS Minnesota Lighting, Fireplace, Flooring Showroom ............... 2000 Surface Specialists Mid-MN, Inc. 2001 Tamarack Materials Northland, Inc. ....................... 2004 10-14 YEARS Your Home Improvement Company ......... 2005 Ehlinger Lawn Service Inc. ......... 2008 Augusta Plumbing ...................... 2009 ADS Designs LLC....................... 2009 RetroGreen Energy .................... 2009 5-9 YEARS Enercept Inc. .............................. 2010 Sand Companies, Inc. ................ 2010 Arvig ........................................... 2011 Fresh Coat Painters.................... 2013 RE/MAX Results - Amy Legatt.... 2014 2-4 YEARS BNH Contractors Inc................... 2015 Conway, Deuth & Schmiesing, PLLP (CDS) ........................... 2015 HighPoint Homes........................ 2017 Weichert Realtors Tower Properties Jason & Jenny Jacobs ......... 2017

Member Changes Main Contact Coldwell Banker Burnet Kelly McClintock Kelly.McClintock@CBBurnet.com Franz Hultgren Evenson, P.A. John Abress jabress@fhelawyers.com Sand Companies, Inc. Dave Thelen DLThelen@SandCompanies.com (320) 202-3100

Email Boundary Fence Brenda King brenda@bfence.net Chris Hindermann chris@bfence.net No Longer Members Betzler Builders Puustelli USA Thomsen Greenhouses

SPIKE SPECIAL—SIGN UP A NEW MEMBER RECEIVE TRIPLE SPIKE POINTS IN OCTOBER

Get to Know a New Member

Why Concrete?

Concrete has all of the solid surface properties yet can be molded to any design. It allows different types of media to be mixed together for unique combinations of materials. It is a fun, trendy, new way to express creative design into your home, office, restaurant or bar. Our prices are typically less than granite, quartz and marble! proconcretecountertops.com

Pro Concrete Countertops Rep: Dian Mullis 10220 Kahler Avenue North Otsego, MN 55362 (218) 242-5398 Sponsor: Ron Euteneuer, Great Northern Environmental Solutions, LLC Counter Tops CMBAonline.org

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What Will Cause the Next Recession?

In general, recessions are caused by one of three things...

Elliot Eisenberg, Ph.D. GraphsandLaughs, LLC at

The Great Recession of 2008 is firmly in the rearview mirror, we are now enjoying the longest recovery in US history, the unemployment rate is near a 50-year low, wage growth is pretty good, inflation is virtually non-existent, and the stock market is just a few percentage points off its all-time high.

Yet, talk of recession is increasingly common. And it’s not surprising, given the weakening global economy, the decline in exports, the soft energy and transportation sectors, the ailing agricultural markets, and of course, the overarching US -Sino trade/currency/tech war. That said, while the next recession may well not arrive till 2021, it is not entirely clear what will cause it.

which was north of 13% at the time, out of the economy was to induce a recession. In 2001, it was the tech bubble, and in 2008 the recession was caused by the housing bubble.

But the 1990 recession was different; it had no singular cause. On one hand, it was a result of a commercial real estate bust partly caused by the S&L crisis, which in turn led to a severe drop in construction activity. But there was also a major rise in energy prices, due to Iraq’s invasion of Kuwait, which hurt consumer confidence and spending. In addition, there was the post-Cold War drawdown in defense spending which led to a rise in unemployment. While none of these events in isolation would have precipitated a recession, collectively they did. Fortunately, it was short and shallow, but the recovery was slow and jobless.

In general, recessions are caused by one of three things.

Often, central banks raise interest rates too much in an effort to slow the economy to reduce late cycle inflationary pressures. In the process, they either raise rates too much or keep them too high for too long, driving the economy into a recession. A second reason we have recessions is due to unforeseen shocks to the economy. It might be a war or a sudden rise in energy or food prices which reduces household spending power and can cause widespread obsolescence of capital equipment because the higher price of energy makes the equipment uneconomical. A third cause, and one that has recently been the culprit is financial excesses (think bubbles) that result from over exuberance on the part of markets that lead to mispricing of assets and finally a financial crisis.

As for what’s to come, I suspect the next recession will be caused by a confluence of factors. The trade war is already hurting GDP growth. Add to that a global slowdown, a decline in energy prices, a weakening transportation sector, feeble manufacturing activity, Brexit and other European problems, largely impotent monetary policy as rates are already very low, and if all this leads to one or two negative monthly job reports which, in turn, leads to weakening consumer confidence and spending, you probably have the beginnings of a recession. Regrettably, getting out of the next recession may take longer than usual because fiscal policy is already a spent force as we are already running historically very large deficits. And that means a much-reduced willingness on the part of Congress to cut taxes and boost spending.

The 1973 recession was caused by a quadrupling of oil prices by OPEC. Overnight, oil went from $3/bbl to $12/bbl.

Moreover, the supply of oil was severely restricted, which led to gasoline rationing and long lines at gas stations. This caused consumer spending to plummet and factories to close, crushing the economy. The recessions of 1979 and 1982 were deliberately engineered by the Fed and its then chairman, Paul Volker. The only way to squeeze inflation, CMBAonline.org

www.econ70.com

The good news, the coming recession is not likely to be very deep as there are no obvious bubbles that must be punctured. And lastly, with a bit of luck, this recovery can keep on going for another few years; it is entirely possible.

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What have we done for you lately?

l-r Anthony Steinmann, ADS Designs LLC; Will Huston, Westwood Professional Services, Inc.; Steve Noble, Noble Custom Homes; Mike Gohman, W. Gohman Construction at St. John’s Abbey, Collegeville MN for the BAM Board Meeting.

Attended the BAM Board meeting at St. Johns Abby Collegeville with CMBA members Tony Steinemann, Will Huston, Steve Noble, and Mike Gohman.

Development Director on Housing Trends in the St. Cloud area.

Hosted the CMBA Family picnic at Lake George, 79 in attendance

Finalized the Tour of Homes magazine. Over 25,000 distributed on Saturday, September 7th in the St. Cloud Times and Holiday Station Stores.

Provided the 10th Annual Sporting Clay Shoot. 111 shooters, raised $8,700 for the Tools For Schools Received requests from 14 high schools for tools and project funding for the 2019/20 school year. The requests totaled $26,172.

Created a fundraising e-mail campaign for Tools for Schools to raise $27,000.

Met with Congressman Tom Emmer at the CMBA office to discuss issues impacting members such as Service Pets–Apprenticeship Program for Carpenters, Work Force Development, tariffs

Sponsored the St. Cloud Area Association of Realtors Golf Outing.

(Rescheduled twice due to bad weather.)

Updated the CMBATour.com website with 22 Homes 15 Builders on the Fall Tour of Homes Sent out press releases on the Tour of Homes. Held September 13-15, 20-22, with 22 homes, 15 builders in 7 cities. Home prices range from $200,000 to 1 million. Thank you to sponsors C&D Granite and Brock White.

BAM Board Meeting The Builders Association of MN Summer Board meeting was August

Dale Gruber secured a TV donation from Karl’s TV & Appliance for the 2019/20 Membership Drive.

The Spike Club contacted 23 members, who are on the retention list. In September they successfully reinstated 12 members, delivered five new member packets, and surveyed 6 members who are first year renewals.

Brought together 27 Remodeler Council Members to listen to Matt Glaesman, St. Cloud Community CMBAonline.org

6th at St. John’s Abbey, Collegeville MN. The board passed a motion to raise the BAM dues starting 2020 $30, totaling $225 per member (BAM’s portion), with a 2% inflation increase every year starting in 2022, and each local will pay for a fixed number which is a three year average of members, (417 members for CMBA) to be reevaluated every three years. The dues increase will create a $10,000 grant for two years that locals can apply for to help their association navigate through the dues increase. Discussion on hiring an in house membership recruiter, challenge each director to bring in 3 new members or pay $100 to PAC, and create a statewide membership drive.

BAM is celebrating their 45th Anniversary.

March 11, 2020 is Builder Day at the Capitol.

IBS Registration and Housing is Open - The NAHB International Builders Show will be held Jan 21-23, 2020 Las Vegas NV. Opening ceremonies will be keynote speaker Earvin “Magic” Johnson and closing concert with the Doobie Brothers free to Spikes who recruit 2 or more new members. Going to BuildersShow.com is the easiest way to register and book a room.

Executive Officer Retreat – BAM is holding their annual retreat for the local association’s Executive Officers on October 23-25 at Bug Bee Hive Resort in Paynesville.

David Werschay on the Home Show with Dave & Kat on KNSI Radio AM 1450 aired September 14th and 15th promoted the CMBA Fall Tour of Homes.

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Spike Special: Sign up a new member between now and October 21 and receive triple the Spike credits.

 Friday 12-7pm  Saturday 9am-6pm  Sunday 10am–4pm

This year we will again offer: 

Easy online registration with an interactive map.



Click booth(s), Pay Done!



Members will be given a priority selection process, depending on the number of booths they reserved in 2019.



Reserve your booth before November 15th to save $150 per booth!

Watch your email for details.

Tour Dates Builders—Plan now for the Spring Tour of Homes February 28, 29 March 1 & March 6, 7 & 8

Registration coming soon...

CMBA CHRISTMAS HOLIDAY PARTY! Wednesday, December 11, 2019

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Members in the News Bergan KDV BerganKDV's St. Cloud firm recently promoted three of its staff members. Jon Ringquist was promoted to audit senior, Ben Stalpes was promoted to audit manager and Christina Wordes was promoted to senior manager.

Ben Staples

Christina Wordes

St. Cloud Chamber elects new board: Christy Gilleland, Gilleland Chevrolet Cadillac, Inc. elected to board Executive Committee: Ron Brandenburg, Quinlivan & Hughes, vice chair of the Board Berni Halaas, New Century Real Estate; exec committee, Sauk Rapids Chamber chair

Committee Chairs: Jim Beck, Modern Barnyard; Diversity Council Kristin Hannon, Minnwest Bank; Star Celebration Bernie Perryman, Batteries Plus Bulbs; Government Affairs Kalie Schuster, Leighton Broadcasting; NEXT – Chamber’s Emerging Leaders Caryn Stadther, U S Bank; Top Hat Ambassadors Chad Staul, Quinlivan & Hughes; Business Development Council

Rinke-Noonan

Gage Mastellar

It is with really happy hearts that Rinke-Noonan announced the arrival of Gage Steven. Congratulations to Alex & Jessica Mastellar on your perfect little guy. Alex serves on your CMBA Board of Directors.

Falcon National Bank Kyle Knudson has been promoted to market president of the Richmond location for Falcon National Bank. In addition to his new duties, Knudson will continue his role as a business banker in the commercial loan division. Knudson has been with Falcon for almost four years and Kyle Knudson

has been instrumental in the success of the commercial lending and business banking team.

CMBA Winners in Best Of... Reader Survey!

CMBA is proud of the 29 members in these reader survey categories: Home Improvement, Services and Wheels. Here are the winners

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2020 CMBA MEMBERSHIP DRIVE

PLAY TO BUILD!



MEMBERS BUILD EACH OTHER UP

SPIKE SPECIAL—SIGN UP A NEW MEMBER Receive TRIPLE SPIKE POINTS in October

WIN A 55

TV!

Both New Members and Recruiters will be placed in the drawing.

WINNER DRAWN OCTOBER 14, 2020 25

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