Building Business News August 2018

August 2018

IBS Registration Page 10 Sponsor Profile: Jared Webb Page 5 Kansas Area Council Page 19

Enter the 2020 Artisan Tour Page 16 600 E. 103rd Street | Kansas City, MO 64131

August/September Calendar Aug 21

Board of Directors Meeting

Aug 22

Kansas Area Council Meeting

Aug 23

Energy Rating Lunch & Learn

NAHB Pledges to Train 50,000 Workers Over the Next Five Years Attending a White House event on workforce development, NAHB Chairman Randy Noel pledged that NAHB and the Home Builders Institute (HBI) will educate and train 50,000 new workers over the next five years for careers in the construction trades.

President Trump signed an executive order that establishes the National Council for the American Worker, which will develop a national strategy for training and retraining workers for high-demand industries.

Sept 5, 6, 7 CAPS Designation Classes Sept 18

Associate Appreciation Lunch

Sept 18

Board Meeting

Sept 22

Fall Parade Begins

Sept 25

Missouri North Area Council

Sept 26

Fall Parade Awards Celebration

As part of this initiative, the administration is asking companies and associations to sign a pledge committing them to expanding apprenticeships, increasing on-the-job training and providing students and workers the training and opportunities they need to succeed in the American workforce.

NAHB Coins a New Word: “Surban” In the most recent issue of NAHB’s 55+ Housing Online Magazine, the authors of “Who is Your Boomer Consumer?” have used the word “surban” to describe the type of community most appealing to boomers.

WE’VE ALSO BUILT SOMETHING FROM THE GROUND UP. OUR BUSINESS.

An excerpt from their article defines this concept: “Less than 5% of the 55+ population in our survey wants a truly downtown experience—a place that is really urban with lots of action and walkability to everything. Instead, the majority would like a suburban area with an urban feel: a home in the suburbs, but surrounded by shopping, entertainment and lots of activities.

It’s a concept we call “surban™”— bringing the best of urban conveniences to a traditionally suburban environment. In our survey, 55+ consumers responded more positively to the surban concept than did the under-55 households. The main distinction is, of course, life stage/family status. For younger households with children, the surban concept is less practical: they need space, bigger yards and more bedrooms.”

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Associate Appreciation – September 18 You’ve got a lunch date for September 18th at the HBA. Be sure to join us for Associate Appreciation, beginning at 11 am. There is no charge for lunch, but we’d appreciate reservations so we’ll be

sure to have plenty of food. Just give the office (816-942-8800) a call to let us know you’ll be here!

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It’s Time for Home Builders to Get Serious about Cyber Security THE

NAHBNow, 7/23/18 The infamous 2013 Target cyberattack, which saw credit and debit card information from 40 million consumers exposed, began when hackers gained access to the Target payment system through an HVAC contractor.

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With nearly every aspect of the home building industry moving online and most information stored in digital formats, it’s time for every home builder to seriously assess their cyber security and potential exposure to liability.

Home builders store and electronically share a trove of personal and financial data on clients, potential clients, vendors, suppliers, partners and more. Some of this data includes payment information. And most business-critical information – like building plans and proposals – is also kept in a digital format.

So it’s little wonder why a residential construction business might be a target for cyber criminals.

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“It really is not a matter of if, but when,” said Kristen Hilton, CIPP/US, an attorney with Sussman Shank LLP in Oregon. “And, of course, how much it will cost.”

Loss of trade secrets, loss of reputation and even elicit bank account access are certainly huge concerns in a cyberattack. But the liability associated with exposing others’ personal and sensitive information to intrusions is where the real risk lies.

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“There are many state privacy law implications to storing information containing personal and financial data,” said Hilton. “If that data were to be exposed, there could be legal and civil liability.”

Hilton notes that construction companies, like most other businesses, have numerous points of entry for malicious hackers.

“Many people connect their company laptops and tablets to public Wi-Fi,” she noted. “That could be a vulnerability.”

The first line of defense is strong digital information training for all employees, not just those that operate computers and other connected devices. All employees should be aware of phishing and other social engineering techniques that are popular with cyber criminals.

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Home builders must also conduct an audit of their information security practices. This includes identifying where important data is Continued on page 8 stored and how it is accessed – for

FasonePartners.com 4

Helping Members Promote Their Purpose As a platinum sponsor of the HBA, Jared Webb of the Kansas City Star works to bring a business’s public image to the next level.

Webb assists builders, realtors and developers in the Kansas City area with all their marketing needs. He works with his clients to figure out what marketing strategies will be the most effective in helping them achieve their business goals. These objectives range from creating general awareness to gaining new customers.

developers and home service companies strategically and effectively solve their market strategy, sales, brand or any other marketing related challenges,” said Webb.

Webb utilizes newspaper stories, advertisements, magazines, events, online strategies and tactics such as Google Adwords, email marketing, targeted online banner ads and videos on YouTube to achieve these goals. “I am a firm believer in a marketing mix and using different messages and different channels to reach different audiences,” said Webb, “One size Continued on page 6

“What my team and I do at the Kansas City Star, Kansas City SPACES and Excelerate Digital is help local new home builders,

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Helping Members Promote Their Purpose Continued from page 5 does not always fit all. What may be great for one builder or developer is not always the answer for another. One thing is certain though: these folks want to sell houses and I can help them do that.”

A recent project involved working with a local up-and-coming builder. Webb and his team brought tremendous growth to the builder over the course of just a few short years. “They were small at the time,” said Webb, “[They] did not have the internal staff to do all that they really needed to do, so they hired us to basically be their agency and marketing department.”

According to Webb, this arrangement allows small companies to focus more on their processes, sales and the building of homes.

“We, of course, are very accountable to them and they keep us accountable by meeting with their internal marketing team regularly to make sure their overall desired KPI’s, metrics and goals are being met,” said Webb, “If they are not, [we try to figure out] why and if we need to pivot into something totally different.” When describing what his and his team’s role is Webb likes to say, “we don’t sell products or services, we solve problems.”

For example, Webb suggests using web-based communication channels for reaching millennials. The first thing any real estate marketer should do is create a Google strategy, whether that be SEM or SEO. He then suggests focusing on social networks such as Facebook, Pinterest and Snap-

chat. Being accessible on mobile devices is also important, as the millennial generation spends around 20 hours a week on a mobile device.

Reaching a new audience in modern ways requires a more complex marketing strategy. “Years ago a developer or builder would run a print ad and maybe have little way to

track it and little expectation if it worked or not. It was very difficult to tell. Today, the sophistication in marketing is amazing, especially in the digital space,” according to Webb, “My clients and I together now tack metrics on their website such as new visitors, time on site, bounce rate, form fills, web leads, phone leads and listen to those Continued on page 7 phone calls to see

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NEED ASSISTANCE marketing your business, engaging your target audiences and getting more buyers?

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To begin a conversation, contact Jared Webb 816.234.4734 – jwebb@kcstar.com

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if in fact this investment in marketing is providing a quantifiable return. My team and I work with our clients to help them navigate the always changing market landscape.”

HBA Membership Webb believes being an HBA member and a Platinum sponsor has opened many doors. “[It has] allowed my team to meet some great people and to create some long-term relationships,” said Webb, “It’s been good for business, but it’s [also] been good for life.”

Webb states creating friendships, getting to know people and getting to share fun experiences with fellow HBA members have been some of the best benefits. “Being a part of the HBA is almost like a family. Even the builders and developers that are not clients of ours, my team and I still enjoy conversing with, spending time with them and learning about what’s going on in their lives and their businesses,” said Webb.

For more information on how Webb can assist you with your marketing strategy, contact him at jwebb@kcstar.com. Say “hi” next time you see him at an HBA event, as he tries to attend almost all of them!

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Cyber Security Continued from page 4 example, are important files kept on a cloud server? What is the security like on that server? – and developing an incident response and business continuity plan in the event of an intrusion.

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Vendors and suppliers should also attest to their security measures and be prepared to provide documentation.

Business owners also should consider cyber insurance coverage.

If a breach or digital theft occurs, the policy can cover some or all of a company’s losses.

variety of options we have to keep are preparing to go back to school, theyour fall homes conditioned for the spring & check lists start. Make usApril your first call.

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We have a wide variety of options to get forth May flowers" bring As summer draws to an end and the kids are preparing to go back to your home fallus ready!

"March winds and school, the fall check lists start. Make your first April call. We showers, have a wide variety of options to keep your get your home fall ready! bring forth May flowers"

ALWAYS CALL BEFORE YOU DIG. One free, easy call gets your utility lines marked AND helps protect you from injury and expense.

Know what’s below. Always call 811 before you dig.

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Tankless Water Heaters Growing in Popularity Here’s a fun fact: Most people shower with the water temp at 105 degrees. In an effort to maintain that 105-degree temperature no matter how many people are showering – or for how long – many builders on the coasts are turning to tankless water heaters to produce an endless supply of hot water, according to Spire’s Cliff Garrett. Garrett spoke at the Rinnai tankless water heater seminar, sponsored by Spire, on July 18 at the HBA. Rinnai brought its mobile unit to the seminar so attendees could see how the tankless water heaters work firsthand. New technology advancements even allow home owners to have Alexa tell the unit when to recirculate water to start heating it, which makes the tankless heater more efficient. Thanks to all who came to the KCHBA to learn more about this technology.

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2019 Builders’ Show Registration Opens September 4 The Builders’ Show will be in Las Vegas once again February 19 21, and there is so much to experience during the three-day event!

You can expect to find these fantastic offerings at IBS 2019: • EDUCATION: 100+ education sessions covering eight tracks featuring the industry’s most highly sought-after speakers, plus dozens of show floor demos and workshops within the Centrals.

• EXHIBITS: 1,400+ manufacturers and suppliers showcasing the latest products and services specific to the home building industry.

• ENTERTAINMENT: From the Opening Ceremonies to the Closing Concert—and everything in between, including the Open House Party and Young Pros Party—there are plenty of opportunities to have fun and network with fellow industry professionals.

Registration for the building industry’s biggest event—the 2019 NAHB International Builders’ Show® (IBS)—opens September 4. You’ll be able to experience construction demos, new products and learn hot trends for less when you register during the month of September. Sign up for show updates at BuildersShow.com/signup and stay in the know.

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KCHBA members gathered for dinner during the NAHB’s Board of Directors Mid-Year meeting in Portland, Ore., in July. Congratulations to Bob Frost, who reached Senior Life Director status at the Portland meeting.

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Shawn McGuire leads the August class for Master CSP designation.

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New Members Doyle Construction Company, LLC Sean Doyle 13912 Granada Rd Leawood, KS 66224 (913) 908-3961 doyleconstructioncompany.com Electronic Life, Inc. Michael Colley 1016 SW 6th Ave Topeka, KS 66606 (913) 227-4122 www.electroniclife.com First National Bank Susan Shafer 4650 College Blvd Overland Park, KS 66211 (913) 266-9325 www.fnbk.com

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M.G. Construction Mark Gulley 30495 W 95th St DeSoto, KS 66018 (913) 449-5424

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Anniversaries

2017 Anything on Anything ATI A/V and Security Century Plumbing Co. Cover Electric Drees Built Homes Franklin American Mortgage Co. ISC Surfaces/ Virginia Tile Keller Williams North Lashbrook Co. Matt Adam Development Co., Inc. Prairie Design Build Prairie View Homes, Inc. Schluter Systems L.P. Stonehenge Outdoor, LLC Table Rock Company

1956 The Sherwin Williams Company 1963 The Alpert Companies 1978 Don Julian Builders, Inc. 1979 Pella Products of Kansas City 1983 Ambassador Construction Company, Inc. 1985 Dobberstine Homes 1987 Reilly Homes, Inc. 1988 Factory Direct Appliance a Ferguson Ent. 1989 Kansas City Building Supply Company, Inc. 1991 Bank of Blue Valley 1994 A S & W Wholesale of K.C., Inc Hoffman Construction, Inc. 1997 Nearing, Staats Prelogar & Jones, AIA, Architects 2002 Canyon Stone 2003 The National Home Building Co. 2005 Adamson Brothers Heating & Cooling Joe Kilowatt, Inc. 2010 Mike VanKeirsbilck Construction, Inc. 2011 Property Law Firm 2012 Braklow Custom Homes, Inc. 2013 Christensen Lumber Inc. First Choice Custom Homes, LLC 2014 Blue Springs Beam Service, Inc. Superior Masonry, Inc. 2016 Fantech/Systemair Heartland Homes, LLC

Apply to Serve on an NAHB Committee or Council Board The online application for NAHB committee and council board of trustees appointments is now live at NAHB.org.

Your NAHB Senior Officers strongly encourage all members to think about throwing their hats into the ring for 2019. The deadline to apply is Sept. 23.

To apply: • Review the criteria for serving on a committee or council. Most importantly, ensure your membership is “in good standing.” If your membership expires before the deadline, contact your local association and make sure it is renewed before Aug. 31.

• Select up to six committees or councils and rank them according to your preference.

• Tell us why you are interested in serving. If someone has recommended you to serve on that committee or council, add their names.

• Let us know if you’ve never served on a committee or council.

• Review the application and submit. You will receive a confirmation that your application was received.

• If you want to make changes to your application, simply go back to the application link and make your edits.

Current committee and council members interested in serving another year must resubmit their applications: There are no automatic multiyear appointments.

Questions? Contact Cyndi McKinley at 800-368-5242 x8346.

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Lees Summit Lumber 103 SE Oldham Pkwy Lees Summit, MO

Grandview Millwork 1227 E 119th St. Grandview, MO

816-246-5373

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HBA Staff Marcia Jurgens Vice President of Administration marcia@kchba.org 816-733-2215

First Source for Quality, Value, Service, and a Trusted Business Partner

Gina Battle Director of Parade of Homes gina@kchba.org 816-733-2219 Dawn Allen Director of Member Services & Events dawn@kchba.org 816-733-2241 Kelcee Schlotzhauer Permit and Show Sales Coordinator kelcee@kchba.org 816-733-2246

Builders FirstSource carries a wide selection of high quality building materials suited for both homeowner and professional builders’ needs. We take pride in personal service, and our talented and experienced team provides support to meet the needs of your specific project. Builders FirstSource provides quality materials that will perform well and look great.

Michaela Moyer Government Affairs & Workforce Development michaela@kchba.org 816-733-2239

Make us your first source for lumber, trusses, construction services, millwork, doors, windows, cabinets, and more.

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Kari English Communications Director kari@kchba.org 816-733-2213 Courtney Reyes Government Affairs & Workforce Development courtney@kchba.org 816-733-2214 Erica Wallace Membership & Events Support erica@kchba.org 816-733-2217 Nicole Orr Administrative Assistant nicole@kchba.org 816-733-2221 Jerry Ratway Fundraising & Membership jerry@kchba.org 816-733-2224 Paige Waltman Intern intern@kchba.org 816-733-2218

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2018 Permit Numbers In Line with 2017 Activity Level With 577 single family units permitted during June, the year-todate total of 3,109 is now just 1 percent lower than the same time period in 2017, according to the Home Builders Association of Greater Kansas City’s (HBA) monthly Residential Building Permit Statistics report. During the first six months of 2017, 3,138 permits were issued for new single-family homes.

“While 2018 started a tad slower than 2017 in regard to permits, it has quickly caught up and has remained strong so far this summer,” said Josh Clark, executive vice president of the HBA. The National Association of Home Builders (NAHB) sees a similar trend nationwide: “Consumer demand for single-family homes is holding strong this summer, buoyed by steady job growth, income gains and low unemployment in many parts of the country,” said NAHB Chairman Randy Noel.

Increased permit activity in two counties, Jackson in Missouri and Johnson in Kansas, have offset decreases in Cass, Clay and Wyandotte. Within those counties, the cities with the greatest permit growth are Blue Springs and Lenexa.

Kansas City, Mo., recorded the highest number of permits so far in 2018, with 459 in its three-county reach. Olathe has the second highest number of permits issued with 304 units. Blue Springs (257 permits), Lee’s Summit (233 permits), and Overland Park (194 permits) round out the top five cities with the most permits issued in the first quarter.

The Official Publication of the Home Builders Association of Greater Kansas City August 2018 • Volume 24 • Issue 7 Copyright 2018 Published by the Home Builders Association of Greater Kansas City 600 E 103 Street, Kansas City, MO 64131 • (816) 942-8800 Editor Marcia Jurgens Contributing Writers Kari English, Paige Waltman Graphics Karla Peterie, Creative Services 2018 Executive Committee President Gary Kerns Vice President Shawn Woods Secretary/Treasurer Jerry Braklow Immediate Past President Harold Phelps Associate Representative Rosemary Vitale Past Presidents Representative Bob Frost

To subscribe to Building Business News call (816) 733-2217 To advertise in Building Business News call (816) 733-2215 For change of address requests please fax changes to (816) 942-8367 or call (816) 942-8800 For more information, visit the HBA online at www.kchba.org

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Residential Building Permit Statistics

Residential Building Permit

June 2018

JUNE 2018

CASS COUNTY Archie Belton Cass County Cleveland Garden City Harrisonville Lake Winnebago Lee's Summit Peculiar Pleasant Hill Raymore Village of Loch Lloyd

CLAY COUNTY Clay County Excelsior Springs Gladstone Kansas City Kearney Lawson Liberty North Kansas City Pleasant Valley Smithville JACKSON COUNTY Blue Springs Buckner Grain Valley Grandview Greenwood Independence Jackson County Kansas City Lake Lotawana Lee's Summit Oak Grove Raytown Sugar Creek PLATTE COUNTY Kansas City Parkville Platte City Platte County Riverside Weatherby Lake Weston JOHNSON COUNTY De Soto Edgerton Fairway Gardner Johnson County Leawood Lenexa Merriam Mission Hills Olathe Overland Park Prairie Village Roeland Park Shawnee Spring Hill Westwood

Single MultiS-F M-F Total Family Family Total Units Units Units % Units^ Units Units YTD YTD YTD 0 16 9 0 0 1 1 3 11 3 22 0 66

0 0 0 0 0 0 0 0 0 0 0 0 0

0 16 9 0 0 1 1 3 11 3 22 0 66

0 52 42 0 0 7 2 23 42 13 75 8 264

0 0 0 0 0 0 0 0 0 0 12 0 12

0 52 42 0 0 7 2 23 42 13 87 8 276

2 1 1 55 13 0 1 0 0 5 78

0 0 0 0 0 0 0 0 0 0 0

2 1 1 55 13 0 1 0 0 5 78

17 9 10 301 72 0 24 1 0 74 508

0 0 0 0 0 0 0 0 0 0 0

17 9 10 301 72 0 24 1 0 74 508

24 0 22 0 0 8 8 11 6 57 1 0 0 137

5 0 0 156 0 0 0 356 0 10 0 0 0 527

29 0 22 156 0 8 8 367 6 67 1 0 0 664

257 0 54 12 0 81 41 48 12 210 12 0 0 727

10 0 0 156 0 0 0 574 0 10 0 0 0 750

267 0 54 168 0 81 41 622 12 220 12 0 0 1477

12 9 0 11 0 2 0 34

0 0 0 0 0 0 0 0

12 9 0 11 0 2 0 34

110 52 1 99 19 8 0 289

0 0 0 0 0 0 0 0

110 52 1 99 19 8 0 289

6 0 0 10 5 8 32 0 0 54 30 2 0 21 12 0 180

0 0 0 0 0 0 0 0 0 12 0 0 0 0 0 0 12

6 0 0 10 5 8 32 0 0 66 30 2 0 21 12 0 192

19 0 3 64 21 28 188 0 4 304 194 26 0 67 89 3 1010

0 0 0 0 0 0 0 0 0 22 249 0 0 0 0 0 271

19 0 3 64 21 28 188 0 4 326 443 26 0 67 89 3 1281

Single MultiS-F M-F Total Family Family Total Units Units Units % Units^ Units Units YTD YTD YTD LEAVENWORTH COUNTY Basehor 18 0 72 0 18 72 Lansing 1 0 1 0 1 1 Leav. County 11 0 42 0 11 42 Leavenworth 9 0 9 0 9 9 Tonganoxie 0 0 18 0 0 18 39 0 39 142 0 142 WYANDOTTE COUNTY Bonner Springs 1 Edwardsville 0 KCK/Wyandotte Co 27 28 MIAMI COUNTY Louisburg Miami County Osawatomie Paola Spring Hill Totals

0 0 0 0

1 0 27 28

4 1 102 107

0 0 0 0

4 1 102 107

4 9 0 2 0 15

0 0 0 0 0 0

4 9 0 2 0 15

7 35 0 3 17 62

0 0 0 0 0 0

7 35 0 3 17 62

577

539

1116

3109

1033

4142

Comparison of Single Family Building Units for Greater Kansas City (Cass, Clay, Jackson, Platte, Johnson, Leavenworth, Miami, Wyandotte Counties) Month/Year January February March April May June July August September October November December

2011 90 121 180 210 230 262 204 205 202 205 185 207

2012 188 182 270 277 294 268 288 260 379 331 283 279

2013 273 224 335 444 337 333 409 354 384 369 340 288

2014 287 216 362 439 385 364 375 352 383 468 312 328

2015 240 260 393 437 395 438 399 425 462 459 360 432

2016 274 408 542 523 503 578 494 536 424 466 417 352

2017 2018 457 425 477 461 571 550 562 502 504 594 567 577 512 480 514 583 502 468

Annual Total

2,301

3,299

4,090

4,271

4,700

5,517

6,197

3,109

Comparison of Permits By Units Issued Year to Date

2011 - 2018 2011 2012 2013 2014 2015 2016 2017 2018

S-F Units 1093 1479 1946 2053 2163 2828 3138 3109

M-F Units 272 517 1702 1977 1389 1897 1090 1033

Total Units 1365 1996 3648 4030 3552 4725 4228 4142

^The Single Family number is units and includes both attached and detached units. %Multi-Family units are in buildings with 5 or more units. # Not available at time of report

Permit information reflects the most recent data at time of publication. In order to ensure accurate recording of residential building permit statistics, the HBA may revise monthly and year-to-date figures when updated data is made available. Copyright 2018 Home Builders Assoc of Greater Kansas City. All rights reserved.

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Thanks to These HBA 2018 Sponsors PLATINUM

First Federal Bank Kansas City Star Media Company Mike Bryant Heating & Cooling Star Companies Wells Fargo Home Mortgage

DIAMOND

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Bank of Blue Valley SILVER Bovard Insurance Group Henges Insulation & Fireplace Builders FirstSource Morgan Wightman Supply Capitol Federal North American Savings Bank Fasone & Partners Pacific Mutual Door Ferguson Enterprises High Definition Drywall Shamrock Cabinet K&E Flatwork Kansas Gas Service BRONZE Kansas Granite Mart Commerce Bank Kenny’s Tile Complete Home Concepts Kitchens & Baths by Briggs Cornerstone Companies McCray Lumber & Millwork CrossFirst Bank Northcraft Flooring & Design Hermes Landscaping Owen Lumber Kansas City Title Phelps Engineering Locks & Pulls Pella Products of Kansas City Rew Materials ProSource Spire Raynor Garage Door Sun Lumber ReeceNichols Trendstone/Cambria Wilson Lighting United Heating, Cooling & Plumbing

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