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NORTHERN KENTUCKY

January 2015

The Official Publication of the Home Builders Association of Northern Kentucky

MEET THE 2015 HBA LEADERSHIP www.HomeBuildersNKY.com www.facebook.com/HBANKY

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WHAT’S THIS? Scan the QR code with your mobile device for additional content and relative information. Don’t have a QR code scanner? Search your Blackberry, iPhone, or Android app store for a free QR code scanner.

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The mission of the Home Builders Association of Northern Kentucky is to promote and enhance the integrity and visibility of the construction industry and the members of the organization through advocacy, communication, education and political action.

INSIDE THIS EDITION...

The Northern Kentucky Home Product and Service Buyers’ Guide is a special edition of the Northern KY Builder. Northern Kentucky Builder™ is an official publication of the Home Builders Association of Northern Kentucky, 2751 Circleport Drive, Erlanger, Kentucky 41018. It is published in the interest of the Northern Kentucky building industry and read by home builders, remodelers, general contractors, developers, engineers, bankers, Realtors,® architects, material dealers, subcontractors and manufacturers. All rights reserved. Copying or reproduction without the expressed permission of the Home Builders Association of Northern Kentucky is strictly prohibited.

Exec. Vice President and What is to Come in 2015

phone 859.331.9500 or fax 859.578.3393 email homebuilders@hbanky.com

14.......60th Annual Inaugural Dinner & Holiday Party

2015 Board of Directors Jason Yeager, President James Kegley, Immediate Past President Tom Spille, Vice President Bill Cullen, Secretary/Teasurer Brian Jones, Associate President Jennifer Hennessey, Associate Vice President John Toebben, Land Development Council President Bob Nally, Sales & Marketing Council President Kellie Bailey, Builder Director Joe Halpin, Builder Director Zach Hadden, Associate Director Steve Brunson, Associate Director Brian Schalk, Associate Director Laquinta Strickland, Associate Director

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HBA Staff Brian A. Miller, Executive Vice President Janis Beard, Membership Director Melanie Meyer, Director of Shows & Events, Sales & Marketing Shawn Cox, Director of Professional Development Dan Smith, Director of Finance Holly Woodring, Administrative Coordinator Writing Stacy Smith Rogers Staff The Home Builders Association of Northern Kentucky is open to the world, visit our web site for up-to-date information on HBA services and programs, including extensive public referral directory to Registered Builders, Registered Remodelers and Associate Members.

4 . . .................................... Letter from Brian Miller,

5 . . ...........................................Membership Update 6 . . .......... New Changes Encourage LDC Involvement 13................................. Strength Through Diversity

27............................................ Calendar of Events

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www.HomeBuildersNKY.com 01/2015

Northern Kentucky BUILDER

What Is to Come in 2015 for the Construction Industry and the HBA? Construction After experiencing a slower than expected spring and summer housing market our September through November permit data came in stronger than early 2014 would have indicated. Overall 2014 residential saw a 4% slide from 2013. Our residential remodeling data indicates that 2014 was practically identical to 2013 which was an outstanding year for remodeling activity on volume. Most notably the value of remodeling projects have risen substantially over 2013 indicating more faith in present home values and a general willingness to open our wallets or call our lender to remodel our home. Commercial remodeling activity is up a substantial 11% over 2013 while new commercial volume is holding pace with 2013. Boone County continues to outpace the other Tri-county market for all activity; doubling the amount of residential growth of Kenton County and dwarfing the growth in Campbell County. In 2015 we expect to see continued slow growth. Nationally, there are markets that have already outpaced what would be considered normal market activity. At best we can hope for a 10% increase in residential construction activity in 2015 in our market. The Cincinnati/Northern Kentucky Market is the southern most market that is slowest to recover from the recession. When considering job growth, wage growth, permit data and over economic health we are part of a swath that carries North through Michigan on a map of the US that is the bottom 20th percentile in recovery speed. 2015 could put residential construction at 40% of normal in Northern Kentucky after bouncing off of the bottom of 20% of normal in 2010. Home Builders Association We continue to see more faces coming out to our business to business events and consumer shows. In 2015 we will focus our attention on how to make membership fun. Look for more events to be out of the HBA Building Center and out in the community. Membership recruiting will take place at hot spot happy hours around Northern Kentucky. The Land Development Council will feature four newly designed events in happy hours out of the building with keynote speakers that you will want to hear. The amount of committee meetings in the office is shrinking so we can create more exciting and fun events to attend in 2015. The Sales & Marketing Council has been growing by leaps and bounds in members and events so expect to see more from their leadership in 2015. A group of commercial builder and developers began meeting in late 2014 to see how we can address their needs. Expect the formation of a Commercial Council in 2015. Look for the Annual Barbeque, Sporting Clay Shoot, Golf Outing, Florence Freedom Game, Table Top Night, and Keeneland Trip among other new and repeat performers. More home shows are on tap for 2015 as we will produce two Homefests. Expect to hear more news on the expansion of our Trade School, the Enzweiler Apprenticeship Program. Look for announcements new franchise trade school partners to open around the country in 2015 as we help to grow Americaâ€™s construction workforce. Hereâ€™s to a great New Year as our industry continues to recover and our HBA grows. We hope that your company grows along with the HBA and at least in part what we are able to bring to you. Sincerely,

Brian A. Miller, Executive Vice President Home Builders Association of Northern Kentucky

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01/2015

MEMBERSHIP UPDATES

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MISSING IN ACTION

NEW MEMBER ORIENTATION

If you do business with any of the missing members, please encourage them to get back in the action at the HBA!

New Member Orientation is not only for the new members who are recruited throughout the year, but also for members who have never attended a New Member Orientation. If you have a new representative, encourage them to attend one of these orientations. They will be amazed at the benefits and services the Home Builders Association provide for their members. Look for the next New Member Orientation at the Homes Builders Association office to be announced soon.

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WELCOME BACK We are truly happy to have your support and membership! The following companies are once again members of HBANKY. Auton Insurance Dallas Communities Granite World Hehman’s Hardwood Floors, Inc.

New Associate Member LP Building Products Andy Donnelly 3625 Marburg Avenue Cincinnati, Ohio 45208 Business: Building Supplies

New Registered Remodeler Belfor Property Restoration Greg Whitlock 3187 Cunagin Drive Fairfield, Ohio 45014 513-860-3111 Sponsor: James Kegley

LIST YOUR HOMES FOR FREE AT WWW.HBANKY.COM! New homesource.com has partnered with the HBA to bring you free listings on our website at www.hbanky.com. Tap into the power of over 3,000 unique visitors a month on the HBA’s site. To see the builders already taking advantage of free listings go to www.newhomesource.com/hbanky/. This service is provided to you as a member and managed by the staff at newhomesource.com. NO

For more info on why you should only use a member of the Home Builders Association of Northern Kentucky when it is time for a decision about your home call 859.331.9500 or visit www.homebuildersnky.com.

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Northern Kentucky BUILDER

New Changes Encourage More Involvement in Land Development Council By Stacy Smith Rogers

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Elimination of fee opens door for more members to benefit from participation The Land Development Council (LDC) is making some significant changes in 2015 that will allow more members to become engaged and to network with industry peers, while joining in the mission to keep housing affordable in Northern Kentucky. Most notable among the changes is the elimination of the $130 to join. The only requirements are that individuals sign up and are active members of the association. According to LDC President John Toebben, Toebben Builders, the decision to remove the fee opens the door for more people to participate and benefit from the council. “We’ve rewritten our bylaws to reflect this change. We thought the $130 fee could be hindering involvement, so we hope this change will bring more people in the land development industry to the council. You still need to sign up, but it’s free to join,” he added. Another change this year involves hosting meetings off-site and bringing in nationally-recognized keynote speakers. “We’re bringing in speakers who can broaden our knowledge of issues that are critical to our industry. These people will be nationally renowned and connected with land development. In addition, we’re going to have quite a few more events held outside of the HBA office,” Toebben said. HBA Executive Vice President Brian Miller elaborated on the venue changes for this year’s meetings, “We are taking our regular LDC member meetings on the road and will hold them in exciting areas around town. Instead of a sit-down lunch in the HBA Building Center, we will enjoy happy hours in various locations.”

Toebben said the council will do the “nuts and bolts work” as usual and will continue productive partnerships and events such as an in-house roundtable meeting with government agencies and a joint event with the Ohio Valley Development Council. Both events have been very popular with members and help foster relationships with partners within the regional development industry.

“Our job is to protect the development industry in Northern Kentucky, and our industry is respected a lot more because of this council and its working committees.” ~ John Toebben What Do Members Gain by Joining the Council? Toebben emphasized the value of being involved with LDC, “The Land Development Council touches so many aspects of the industry, from road and piping construction, environmental issues and water restrictions

John Toebben

to gas lines, utilities and more. The focus is so broad. For people who are working with land development at large, it’s simply good to stay on top of the issues, especially during a time when those issues are very complex. From the builder and remodeler perspective, it’s good to become informed on changing regulations and to participate in our working groups.” Toebben also explained that, while broad in scope, the LDC comprises working groups that address specific segments of the local land development industry. This allows the groups to be productive and focused. 01/2015

Northern Kentucky BUILDER

Did You Know? Twenty-nine percent of the cost of a new home is due to regulations, and 60 percent of that amount is due to land use regulations. The purpose of the LDC is to protect private property rights by assisting government entities with planning, infrastructure and other development issues that affect the building industry.

“It’s an outstanding opportunity to meet new business clients in land development or to steward the existing business relationships you already have.” ~ Brian Miller Miller noted that being involved in LDC is an ideal way to network and build relationships with fellow members (and business prospects). “We have a uniquely talented group of people that is involved in this council and the working groups. It’s an outstanding opportunity to meet new business clients in land development or to steward the existing business relationships you already have. Our developers hold those involved in their efforts with high esteem and use them 8

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not only to fulfill our advocacy mission but in business as well.” Toebben further elaborated, “Our volunteer group is an amazing assembly of men and women, ranging from general contractors, civil engineers, builders, excavators and the list goes on. Our job is to protect the development industry in Northern Kentucky, and our industry is respected a lot more because of this council and its working committees.” He said that sometimes the issues the working groups discuss aren’t so glamorous, but they make a difference for homeowners. “We’ve been able to steer those regulations to keep the costs down for future homebuyers, and everyone benefits from that. If a home increases in price $3,000-$4,000, that takes out a whole segment of buyers out of the market.” More than 65 people are members of the LDC, including representatives from government agencies. The LDC Board of Governors meets monthly (except July and December) and is committed to promoting responsible development and preserving development rights for future generations. Membership is open to all HBA members. For more information, contact Holly Woodring at hwoodring@hbanky.com.

LDC WORK GROUPS Work groups of the LDC comprise the following areas: Boone County Planning and Zoning Mike Schoettelkotte, Chair Campbell County Planning and Zoning Mike Willenbrink, Chair Kenton County Planning and Zoning Matt Coppage, Chair Mike Riegler, Co-Chair Environmental Issues Michelle Bollman, Chair Powered Utilities Andy Casto, Chair Sanitary and Storm Water Ron Difuria, Chair Water Districts Bob Schroder, Chair

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MEMBER NEWS

Strength Through Diversity

his November Cru Cutters and Owner/CEO, Chris Cook, were featured in Lawn & Landscaping magazine. This is the leading business trade magazine in the industry. The article was written by Brooke Bates and takes a look at the success and growth of this small business over the first nine years. (www.lawnandlandscape.com).

BROOKE N. BATES | November 10, 2014 Chris Cook was only 12 years old when he started mowing lawns around the neighborhood. With the push mower in the back of the family minivan, his mom drove him from one site to the next. Halfway through high school, Cook started driving himself and hiring friends. By the time he graduated in 2005 and officially started Cru Cutters Landscape Services in Florence, Ky., he was already running two mowing crews with six employees. The company quickly grew in both scope and size. “What we excelled at that gave our company the ability to grow was we took care of our customers, no matter what it took,” says Cook, now 27. “You’re going to have those jobs that don’t go well or don’t necessarily make a lot of money, but the important thing at the end is that the customer’s happy. Putting the customer in front of the dollar amount has gone a long way.” This principle guided Cru Cutters past several milestones. In 2013, it reached $3.2 million in sales and completed its largest commercial project of nearly $400,000. In spring 2014, it completed an even larger residential project, valued around $450,000. On track to surpass $5 million in 2015, its 10th year, Cru Cutters grows by keeping customers happy. DIVERSIFYING TO SURVIVE. After graduation, Cook earned a landscape horticulture degree from Cincinnati State Technical and Community College. The classes opened his eyes to the market opportunity for landscape construction, and in 2007, Cru Cutters began offering construction services spanning hardscapes, patios, retaining walls, pools and plant installation. By 2010, landscape construction became Cru Cutter’s main focus, capturing almost 70 percent of sales. One division grew the other, as Cook pursued new maintenance business by crossselling construction customers. “It’s a pretty easy sales pitch at the end of a large construction install: ‘Who better to take care of this new landscape or this patio or pool

area that you have than the people who put it in? We know the ins and outs of it. Let us take care of it,’” he says. “We see a very high turnover in commercial and residential construction jobs ending up as maintenance customers for many years down the road.” To further diversify its services, Cru Cutters also added a lawn and plant care division in 2010 to provide chemical treatments. This became another growth avenue, accounting for about 10 percent of sales. Now with fullservice options to meet a variety of customer needs, Cru Cutters’ work consists of 60 percent construction, 25 percent maintenance and the rest snow removal. “We try to keep a pretty consistent split,” says Cook, noting that the company completed 56 percent commercial work to 44 percent residential last year. “You never know, with the, economy, how things are going to turn. The better you can stay diversified and balanced in your portfolio, if something does happen, you can bounce back or adjust.” HIRING SMART. Early on, Cru Cutters grew new services from scratch. Staff learned specialized skills through industry conferences, vendor provided training and advice from other LCOs. Cook eased into new services, rolling them out to a few select customers the first season. As the company grows, it gives Cook traction to hire more experienced staff to propel and strengthen each division. “I always live by this goal: that if I hire somebody smarter than myself in each particular area of my business, then we should be pretty successful,” Cook says. “To date, that’s what we’ve done. Surrounding myself with those people makes it easy on me to grow.” Of course, it’s not easy finding those people, so Cook searches several channels to fill positions. While the local community college’s horticulture program supplies a few co op students each season – some of whom become fulltime – he looks deeper into the industry to find more experienced employees. Specifically, when seeking a certain skill, he reaches out to suppliers. Because they maintain

close relationships in the local landscaping industry, they know who’s qualified and looking for new opportunities. HAPPY AT WORK. But if it comes down to choosing between proven skills or personality, Cook hires the latter. A motivated candidate who’s willing to learn from mistakes is more valuable than a candidate who is set in his ways with field experience. Above all, a little enthusiasm goes a long way. “It’s hard to get excited about hiring somebody that’s just dull,” Cook says. “If the next guy comes in with half the experience but he’s excited to have the opportunity, nine times out of 10 that’s the guy we take. We can train them how to put plants in the ground. We can’t train them how to be enthusiastic.” Finding these people is only half the battle. In today’s market, holding onto key employees is the challenge. Cook realized this last spring when two longtime operations managers left the company to join a family business in another industry. Though the parting was peaceful, it forced Cook to evaluate the business from his staff ’s perspective. You spend so much money and time training employees that you really have to put some emphasis on how important of an asset they are,” he says, explaining his push for increased benefit packages and compensation rates. “Tools and trucks can be replaced, but key people are so valuable.” Cook learned that happy employees are the key to happy customers. If he takes care of his team – 62 employees last spring – they’ll take care of customers and their lawns. This ensures that Cru Cutters doesn’t only grow in numbers, but also satisfaction – with a 97 percent customer retention rate last year. We try to become friends with our customers, which is a unique way to look at it,” Cook says. “We’re very open, we’re big on honesty. We try not to hide anything from them. If you can become a friend, if something then goes wrong, they’re not so quick to jump ship. We don’t always have to be the lowest price because we’re giving them a better value.” 01/2015

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MEMBER EVENTS 60th Annual Inaugural Dinner & Holiday Party

he 60th Annual Inaugural Dinner & Holiday Party was held at Summit Hills Country Club on December 4. The event was record breaking in that we have a record number in attendance and a record number of HBA Past Builder Presidents in attendance. Congratulations to Jason Yeager, Ashley Construction, who was installed as the 2015 HBA President and congratulations to the 2015 HBA Board of Directors who was installed at this event, Congratulations to the amazing 2014 awards winners!

L-R: Representative Adam Koenig, Tom Spille, Vice President, Spille Builders & Developers; Jason Yeager, President, Ashley Construction; James Kegley, Immediate Past President, B.O.L. D. Company; Zach Hadden, Associate Director; Pella Windows & Doors; Brian Jones, Associate President, C.K. Ash Insurance; Brian Schalk, Associate Director; Florida Tile; Laquinta Strickland, Associate Director, L & N Federal Credit Union; John Toebben, LDC President, Toebben Builders , Inc.; Jennifer Hennessey, Associate Vice President, Northwest Title; Robert Nally, SMC President, Coldwell Banker West Shell. Missing from photo: Bill Cullen, Secretary/Treasurer, Cullen Brothers, LLC; Joe Halpin, Director, Drees Homes; Kellie Bailey, Director, Fischer Homes; Steve Brunson, Director.

John Yeager, pins Jason Yeager as the 2015 HBA President.

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Jason Yeagerâ€™s family - Jason Yeager, Krista Yeager, Jeremy Yeager, Bonnie Yeager, John Yeager, Alex Yeager, Drew Yeager.

Pinning of Immediate Past President, James Kegley, B.O.L.D. Homes

â€“ Presentation of Bell & Gavel to James Kegley, 2014 President by 2015 President, Jason Yeager.

Passing of the HBA Builder gavel.

2014 President, James Kegley, passes the gavel to 2015 President, Jason Yeager

John Yeager, swears in 2015 President, Jason Yeager, Ashley Construction.

2015 President, Jason Yeager, installs 2015 Associates President, Brian C. Jones, C.K. Ash Insurance

Tom Spille, Spille Builders & Developers, 2014 Annual Membership Award

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MEMBER EVENTS more from the 60th Annual Inaugural Dinner & Holiday Party

Jean and Jack Miller, 2014 Community Service Award

Joseph Kramer, Cardinal Engineering Corp., 2014 Associate of the Year Award

Mike Schoettelkotte, Drees Homes, 2014 Builder of the Year Award

Steve Kelly, Kelly Bros. Lumber, 2014 Donald M. Wiedeman Award

L-R: Scott Church, Logan Lavelle Hunt Insurance; Janet & Mike Kegley, B.O.L.D. Company; John Miranda, HBAK President Elect and Stan Logan, Logan Lavelle Hunt Insurance.

L-R: Bonnie and John Yeager, Ashley Construction and guest.

Jason Yeager, 2015 President, Ashley Construction; Bill Kreutzjans, Jr., Ashley Construction; Joesph Kramer, Cardinal Engineering, John Toebben, LDC President, Toebben Builders, Inc.

L-R: Phil Drees, Terrace Holdings; Brian Jones, C.K. Ash Insurance, Bob Porter, Congressman Masse, Dist. Field Director; Matth Toebben, Toebben Builders, Inc.

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MULTI FAMILY

CONDOS

COMMERCIAL

COMMERCIAL REMODELING

RESIDENTIAL REMODELING

$300,000

$4,585,000.0

$2,442,555

$1,126,294

$1,260,000

$434,182

$75,850

$150,000

$40,000

$999,630

GRANT CARROLLTON GALLATIN MASON OWEN TOTAL

NOV. ‘13 BOONE

$3,393,464

CAMPBELL

$122,320

KENTON

$2,851,168

GRANT

40000

CARROLLTON GALLATIN MASON

$275,000

TOTAL

$6,641,952

$40,000

$300,000

$4,585,000

$3,928,405

$1,750,476

JAN-NOV 2014

647

$110,600,274

$130,000

$10,607,139

$7,945,880

$85,679,785

609

$144,169,410

1066

$52,815,122

JAN-NOV 2013

675

$115,402,201

$563,000

109

$154,453,273

$6,818,096

$71,477,979

555

$106,892,568

1119

$40,390,423

OWEN

Northern Kentucky BUILDER

01/2015

BUSINESS MEETINGS AT A GLANCE / CALL 331-9500 FOR RESERVATIONS OR TO CONFIRM DATES

New Years Day HBA Office Closed

Remodelers Issues Meeting, 12 pm, HBA SAM Preview Party, Drakes, 5:00 – 7:30 pm

Sales & Marketing Council Board Retreat, 11:30 am, Location TBD

january

Membership/Retention/ Ambassador Club

International Builders Show & NAHB IBS Board of Directors

AGC/SIF Workplace Safety Class, 10 am - 12 pm, HBA

State & Local Government Committee, 12 - 1 pm, HBA

sunday

tuesday 27

Executive Committee, 2 - 4 pm, HBA

Land Development Council Board of Governors, 10:30 am - 12 pm, HBA

monday 26

Board of Directors, 4 - 5 pm, HBA

wednesday 28

thursday 29

friday 30

saturday 31

Membership Rally, Drakes, 4:00 - 5:30 pm

february

Sales & Marketing Council, 12 - 1 pm, HBA

17 President’s Day HBA Office Closed

23 State & Local Government Committee, 12 - 1 pm, HBA

Land Development Council Board of Governors, 10:30 am - 12 pm, HBA

HBA of Kentucky Winter Board of Directors Meeting

First Aid & Bloodborne Pathogens ($40), 2 - 4 pm, HBA

Executive Committee, 2 - 4 pm, HBA

01/2015

Northern Kentucky BUILDER

PRSRT STD US POSTAGE NO

MEMBER RTH

ERN KENTU

PAID

CINCINANTI OH PERMIT 5400

Y CK

2751 Circleport Drive Erlanger, Kentucky 41018

ADDRESS SERVICE REQUESTED

Updating Your Sense of Tile For sixty years, Florida Tile has been a benchmark in the industry. As an innovator, we have marked many accomplishments, from building the first floor tile plant in the USA to introducing the first digitally printed products with our HDP – High Definition Porcelain lines. Throughout our history Florida Tile has been a pioneer, but equally as important, we have been a benchmark for style. We recognize and celebrate that commitment by making a great product & creating what our customers continue to want and our competitors try to copy.

MINGLE

1325 Donaldson Road Suite 2B Erlanger, Kentucky 41018 (859) 282 • 5400

www.floridatile.com Erlanger Feb 2014.indd 1

1/23/14 11:37 AM