NCBIA July 2022 BUILDER Newsletter

NORTH COAST BUILDING INDUSTRY ASSOCIATION

BUILDER NEWSLETTER

north coast bia, sheffield village, oh 44035

www.ncbia.com

july 2022 - vol. XLIII - no. 7

Don's Miss the Annual NCBIA Golf Classic!

Thursday, August 4th, 2022 Sweetbriar Golf Course

Want to sponsor a Member Mixer??

Contact judie@ncbia.com

North Coast Building Industry Association (NCBIA) BUILDER newsletter is the official newsletter of the NCBIA and is published monthly by the NCBIA. The NCBIA is an affiliate of the Ohio Home Builders Association (OHBA) & the National Association of Home Builders (NAHB).

NCBIA Office

5077 Waterford Dr. Suite 302 Sheffield Village, OH 44035 Phone: 440.934.1090 info@ncbia.com | www.ncbia.com

NCBIA Staff

Executive Officer Judie Docs | judie@ncbia.com Executive Assistant LaBreeska Bellan | labreeskancbia@gmail.com

Advertising Policy - The North Coast Building Industry Association reserves the right to reject advertising in the Builder newsletter based on content. Acceptance of advertising does not imply endorsement of the product or service advertised.

NCBIA Life Directors

Jeremy Vorndran, 84 Lumber Tom Caruso, Caruso Cabinets Bob Yost, Dale Yost Construction Liz Schneider Dollar Bank Mary H. Felton, Guardian Title Jack Kousma, Kousma Insulation Jeff Hensley, Lake Star Building & Remodeling Chris Majzun Sr., Majzun Construction Co. Chris S. Majzun Jr., Majzun Construction Co. Jim Sprague, Maloney + Novotny, LLC Randy Strauss, Strauss Construction Tom Lahetta, Tom Lahetta Builders, Inc.

Marketing Associate Ashlyn Bellan | ashlynncbia@gmail.com

2022 NAHB Delegates

These are our members who represent our local industry in Washington DC and Columbus:

2022 NCBIA Officers President Sara Majzun, Majzun Construction Co. Vice President Tim King, K. Hovnanian Homes - Ohio Division Associate Vice President John Toth, Floor Coverings International Treasurer Melanie Stock, Treasurer, First Federal Savings of Lorain Secretary Mike Meszes, Secretary, DRC Construction Co.

2022 NCBIA Board of Directors

Sam Hudspath, All Construction Services Dan Bennett, Bennett Builders & Remodelers Kevin Walker, Great Lakes Properties & Investments Dave Linna, Linna Homes & Remodeling Jason Rodriguez, Lorain County Joint Vocational School Mike Gidich, MDG Maintenance, LLC Brian Schwab, RestorePro, Inc. Dave Weisenberger, Tusing Builders & Roofing Services

July 2022

Randy Strauss, Strauss Construction Jack Kousma, Kousma Insulation (alternate)

Sr. NAHB Life Director

Randy Strauss, Strauss Construction

Ohio’s State Rep. to NAHB

Ric Johnson, CAPS Builder & Right at Home Technologies

OHBA Past Presidents Randy Strauss, 1996

2022 OHBA Trustees

Randy Strauss, Strauss Construction Sara Majzun, Majzun Construction Co. (alternate) Mary Felton, Guardian Title (alternate)

OHBA Area 2 Vice-President

Ric Johnson, CAPS Builder & Right at Home Technologies

www.ncbia.com

page 3

Golf11-12 Classic ANNUAL

TH 2022 THURSDAY, AUGUST 4

8:00 AM

Foursome

Registration, Breakfast and Range Open

$ 560

9:00 AM

Opening Remarks

Single

3:30 PM

$ 140

Dinner and Awards

(OPPORTUNITIES FOR SPONSORSHIP ON THE BACK!)

SWEETBRIAR GOLF COURSE 750 JAYCOX ROAD AVON LAKE Your Name ______________________________________________ Company ________________________________________________ Team Captain's Cell Phone ______________________________ (For outing information and weather delay updates)

$________ Golfer Registrations - Single _____ x $140 $________ Golfer Registrations - Foursome ______ x $560 Skins / Mulligan Package (Prepay only) _____ x $40 $________ (1 per team)

Total Due $ _______

4-Person Scramble Format 18-Holes of Golf with Cart Lunch & BBQ Dinner Raffles & Prizes

Golfer # 1 Name ___________________________ Company ____________________________________ Golfer # 2 Name ____________________________ Company ____________________________________ Golfer # 3 Name ____________________________ Company ____________________________________ Golfer # 4 Name ____________________________ Company ____________________________________

ANCELATION DEADLINE J N& C ULY 24, ATIO 202 ISTR 2 REG NOTE : No one under 21 will be admitted.

Keg beer, soft drinks & water will be available during the entire event. All other alcoholic beverages will be available as a

2022

CALENDAR NEW HOMES MONTH 9

28

Saturday 5:00 - 11:00 PM Thursday 4:00 - 7:00 PM

Method of Payment: CASH BAR. ___Payment Enclosed ___ Invoice ___Credit Card Card No. ____________________________________________ Exp._______________ CRV # __________ Zip Code ________________ Phone ____________________________ Email ____________________________________________ Name on Card __________________________ Signature ______________________________

OF EVENTS

A $5.00 CONVENIENCE FEE WILL BE CHARGED FOR CREDIT CARD PAYMENTS UNDER $500....... $10.00 FEE FOR PAYMENTS OVER $500.00. SPONSORS DO NOT PAY CONVEINENCE FEE!

Send Complete form via mail to 5077 Waterford Dr.,Suite 302 Sheffield Village, Ohio 44035 or register online at www.ncbia.com Rev. 5/13/2022

NEW DATE!!!!!

INSTALL ATION - CIR. OF E XCELLENCE - HALL OF FAME

Membership Event

Member Mixer

Social Event

Ahern’s Banquet Center, Avon Lake

Lake Quartz, 909 Canterbury Road, Suite Q, Westlake 44145

NATIONAL HOME REMODELING MONTH 11

Wednesday 3:00 & 5:00 PM

E XECUTIVE COMMIT TEE & BOARD MEE TINGS

30

Monday

MEMORIAL DAY | OFFICE CLOSED

28-29

Board

NATIONAL HOMEOWNERSHIP MONTH 9

17

4

Thursday 6:30 PM

Friday 11:30 AM

NIGHT AT THE CRUSHERS

Social Event

2009 Baseball Blvd., Avon

GENERAL MEMBERSHIP MEE TING & COOKOUT

Membership Event

Pogie’s Clubhouse, Amherst

Monday

INDEPENDENCE DAY | OFFICE CLOSED

Wednesday 3:00 & 5:00 PM

E XECUTIVE COMMIT TEE & BOARD MEE TINGS

4

Thursday

GOLF CL ASSIC

Membership Event

20

Saturday 1:00 PM

SOF TBALL GAME & FAMILY PICNIC

Membership Event

13

TBD

Board

Sweetbriar Golf Course, Avon Lake

Amherst Twp. Park, Amherst Twp.

Rev. 4/11/2022

Questions? Call 440 - 934 - 1090

Table of Contents 6 - Menu of Services 7 - Save the Dates 8- Executive Officer’s Report 9 - "How Can we Help Each

Other" (Auditor's Meeting)

11-12 - 2022 Annual Golf Classic Flyer

13 - Eye on Housing:

Property Taxes Make Up More Than One-Third of State and Local Tax Revenue

15 - NAHB Now:

Statement from NAHB Chairman Jerry Konter On Administration's Refusal to Act on Lumber Tariffs

16 - Eye on the Economy: Housing Begins to Slow as Financial Conditions Tighten

17

- Eye on Housing: Residential Building Worker Wages Continue to Rise Amid Uncertainty

22 - Eye on Housing:

35 - NAHB Now:

23 - Eye on Housing:

36 -

New Home Sales Increase in May Before Fed's June Rate Rise

New Home Sales Increase in May Before Fed's June Rate Rise

25 - Eye on Housing:

Higher Rates Reduce Mortgage Demand

26

- Eye on Housing: Higher Rates Reduce Mortgage Demand

27 - Eye on the Economy: Tightening Monetary Policy Bringing on Downturn

28-29 - 2022 NCBIA

Thanks for Renewing, Sorry to See You Go!

37 - OHBA Benefits: It may

be Hard Now, But it Gets Better.

Here's How.

38 -

Thank You, Spikes!

39 -

NEW!! Goodyear Membership Savings!

40 -

30 - OHBA Executive VP

41 -

Column

32 - Sedgwick Update

20 - Eye on Housing:

34 - NAHB Now:

Construction Job Opening Leveling Off

Welcome New Members!!

Calendar of Events

18 - Eye on Housing: Solid Job Gains in June

Housing Crisis in the Spotlight at High-Level Meeting in Washington

Have Building Material Prices Peaked?

Member Savings!

Thank you, Event Sponsors!!

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Office Depot is a trademark of The Office Club, Inc. OfficeMax is a trademark of OMX, Inc. ©2020 Office Depot, Inc. All rights reserved.

page 6

www.ncbia.com

July 2022

Save the

Date!

Want to be a sponsor for any of these events? Let us know! Sponsor early to get maximum exposure!!!!!

Do you have some business news to share? Business anniversaries, accomplishments, awards, publications, etc.?

Send to judie@ncbia.com. We want to hear from you!

Call or email Judie at judie@ncbia.com for marketing opportunities to help your bottom line!!!!!

Wednesday, July 27th

"How Can We Help Each Other" A meeting with The Auditors 5:30-7 PM The Orchid Room at Miller Nature Preserve 2739 Center Road, Avon

Thursday, August 4th Annual Golf Classic 8:30 AM - 4:30 PM

We have opened a branch office in Medina just off the square at 225 E. Liberty Street.

We will do closings and meetings by appointment.

Sweetbriar Golf Course 750 Jaycox Road, Avon Lake

Saturday, August 20th Softball Game & Family Picnic 1 PM

Amherst Twp. Park 44780 Middle Ridge Road, Amherst

Thursday, August 25th Member Mixer 5-7 PM

ZZ's Big Top 35015 Detroit Rd, Avon

Saturday, September 24th Clambake 5:30-9:30 PM

Amherst Eagles 1161 Milan Avenue, Amherst If you would like to participate in a committee, please email Judie Docs at judiencbia@gmail.com.

Check the website at www.ncbia.com for upto-date changes, additions, and corrections to these events!

July 2022

www.ncbia.com

page 7

EXECUTIVE OFFICER’S REPORT

ARE WE ENDING UP In your Spam?

If you are not receiving our Wednesday email, please check your spam folder. I know everyone is very busy, but this weekly email will keep you updated on what’s happening here at the NCBIA. Don’t miss out on events and our monthly Builder Newsletter. (The sender is ashlynncbia@gmail.com) Of course, we welcome your calls if you need anything at all!

I hope you are enjoying the warmer weather and will be able to attend our upcoming events!

Our Golf Classic at Sweetbriar on Thursday, August 4th is our biggest event of the year. After golf Stewart’s TV & Appliance will be firing up a pizza oven for appetizers before Pogie’s Chicken and Rib BBQ! Another event not to miss is our NCBIA Annual Softball Game and Family Picnic.

The competition is fierce, but all in fun. This is open to all members, their employees and family. Enjoy a great game and picnic.

by Judie Docs, CSP, MCSP, MIRM, CMP, CGP

page 8

www.ncbia.com

July 2022

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The information referred to is not a policy. Refer to your policy for specific coverage.

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page 10

SS-1 (10/19)

www.ncbia.com

July 2022

ANNUAL

Golf Classic TH 2022 THURSDAY, AUGUST 4

8:00 AM

Foursome

Registration, Breakfast and Range Open

$ 560

9:00 AM

Opening Remarks

Single

3:30 PM

$ 140

Dinner and Awards

(OPPORTUNITIES FOR SPONSORSHIP ON THE BACK!)

SWEETBRIAR GOLF COURSE 750 JAYCOX ROAD AVON LAKE Your Name ______________________________________________ Company ________________________________________________ Team Captain's Cell Phone ______________________________ (For outing information and weather delay updates)

$________ Golfer Registrations - Single _____ x $140 $________ Golfer Registrations - Foursome ______ x $560 Skins / Mulligan Package (Prepay only) _____ x $40 $________ (1 per team)

Total Due $ _______

4-Person Scramble Format 18-Holes of Golf with Cart Lunch & BBQ Dinner Raffles & Prizes

Golfer # 1 Name ___________________________ Company ____________________________________ Golfer # 2 Name ____________________________ Company ____________________________________ Golfer # 3 Name ____________________________ Company ____________________________________ Golfer # 4 Name ____________________________ Company ____________________________________

ELATION DEADLIN E JUL & CANC Y 24 TION A R , 20 T S I 22 G E R

NOTE : No one under 21 will be admitted.

Keg beer, soft drinks & water will be available during the entire event. All other alcoholic beverages will be available as a CASH BAR.

Method of Payment: ___Payment Enclosed ___ Invoice ___Credit Card Card No. ____________________________________________ Exp._______________ CRV # __________ Zip Code ________________ Phone ____________________________ Email ____________________________________________ Name on Card __________________________ Signature ______________________________

A $5.00 CONVENIENCE FEE WILL BE CHARGED FOR CREDIT CARD PAYMENTS UNDER $500....... $10.00 FEE FOR PAYMENTS OVER $500.00. SPONSORS DO NOT PAY CONVEINENCE FEE!

Send Complete form via mail to 5077 Waterford Dr. Suite 302, Sheffield Village, Ohio 44035 or register online at www.ncbia.com Rev. 7/19/2022

Questions? Call 440 - 934 - 1090

EYE ON HOUSING

N

PROPERTY TAXES MAKE UP MORE THAN ONE-THIRD OF State and Local Tax Revenue BY: DAVID LOGAN

AHB analysis of the Census Bureau's quarterly state and local tax data shows that $672.9 billion in taxes were paid by property owners in the four quarters ending Q1 2022 (not seasonally adjusted), a 0.1% quarterly increase.[1] State and local governments collected $1.9 trillion over the same period, the largest amount on record (nominal and real) and 16.0% more than the four-quarters ending Q1 2021.

As governments’ assessments and adjustments of property values lag home prices so, too do property tax collections. This lag—which has historically been between two and three years—is due to two primary factors: 1) the frequency at which governments assess property values for tax purposes varies by state and municipality, and 2) some localities only reassess property values to market value when the property is sold or transferred.

Property taxes accounted for 35.0% of state and local tax receipts, a 1.2 percentage point decrease over the prior quarter. In terms of the share of total receipts, property taxes were followed by individual income taxes (30.8%), sales taxes (27.3%), and corporate taxes (6.9%).

The ratio of property tax revenue to total tax revenue from the four sources has been below its pre-housing boom average of 37% for the past four quarters. Quarterly corporate income tax revenues increased as a share of the total, accounting for 6.9% of state and local tax receipts (NSA), up from 6.2%.

Year-over-year growth of four-quarter property tax revenue has decelerated each of the past three quarters after accelerating each quarter from Q3 2020 to Q2 2021. Four-quarter corporate income tax, individual income tax, and sales tax revenue increased 74.5%, 21.7%, and 19.2%, respectively, year-over-year.

The share of property tax receipts among the four major tax revenue sources naturally changes with fluctuations in non-property tax collections. Non-property tax receipts including individual income, corporate income, and sales tax revenues, by nature, are much more sensitive to fluctuations in the business cycle and the accompanying changes in consumer spending (affecting sales tax revenues) and job availability (affecting aggregate income). In contrast, property tax collections have proven relatively stable, reflecting the long-run stability of tangible property values as well as the aforementioned effects of lagging assessments and annual adjustments.

[1] Census data for property tax collections include taxes paid for all real estate assets (as well as personal property), including owner-occupied homes, rental housing, commercial real estate, and agriculture.

Owner-occupied and rental housing units combine to make housing’s share the largest among these subgroups.

July 2022

www.ncbia.com

page 13

NAHB NOW

STATEMENT FROM NAHB CHAIRMAN JERRY KONTER On Administration's Refusal to Act on Lumber Tariffs

J

erry Konter, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Savannah, Ga., issued the following statement after Reuters reported that Treasury Secretary Janet Yellen said the Biden administration will not cut tariffs on Canadian lumber to fight inflation: “NAHB is extremely disappointed that the Biden administration is turning a blind eye to America’s housing affordability crisis by refusing to eliminate tariffs on Canadian lumber at the same time it is considering rescinding tariffs on a wide range of Chinese goods to curb inflation. Tariffs act as a tax on American consumers and the lumber tariff is particularly onerous, given that it has contributed to unprecedented lumber price volatility that has sharply raised the cost of housing at a time when housing affordability is already at a more than 10-year low.

“Lumber tariffs affect millions of American home buyers and homeowners. If the administration is truly interested in providing U.S. citizens relief from high inflation by removing costly tariffs, it should ensure that Canadian lumber is among the tariffs it targets for elimination.”

July 2022

www.ncbia.com

page 15

EYE ON THE ECONOMY

HOUSING BEGINS TO SLOW AS Financial Conditions Tighten

R

ising inflation and higher mortgage rates are slowing traffic of prospective home buyers and putting a damper on builder sentiment.

In June, the NAHB/Wells Fargo Housing Market (HMI) fell two more points to a level of 67 — the lowest HMI reading since June 2020.

Six consecutive monthly declines for the HMI is a clear sign of a slowing housing market amidst a high-inflation, slow-growth economic environment.

As inflation is running at a 40-year high, economic policy needs to focus on improving the supply side of the economy by bringing down material, energy and transportation costs. Largely because of these supply-chain challenges, single-family starts in May decreased 9.2%. to an annual rate of 1.55 million. Single-family permits decreased as well, dropping 5.5% and bringing the annual rate down to 1.05 million — its lowest pace since July 2020. Further declines are expected in the months ahead, which itself is a recession warning for the coming quarters.

Total existing home sales in May — including single-family homes, townhomes, condominiums and co-ops — fell 3.4% to a seasonally adjusted annual rate of 5.41 million. On a year-over-year basis, sales were 8.6% lower than a year ago. However, after posting four consecutive monthly declines on rising mortgage rates and worsening affordability conditions, new home sales posted a solid gain in May as some buyers rushed into the market in advance of the Federal Reserve’s June interest rate hike. New home sales surged 10.7% to a 696,000 seasonally adjusted annual rate, although year-to-date sales are 10.6% lower compared to a year ago.

New single-family home inventory remained elevated at a 7.7-month supply, up 42.6% over last year, with 444,000 available for sale.

However, only 8.3% of new home inventory is completed and ready to occupy. The median sales price dipped to $449,000 in May, but is up 15% compared to a year ago, primarily because of higher construction and development costs, including materials.

We foresee a modest economic recession in mid-2023 given tightening financial conditions and increased economic uncertainty. Higher interest rates will undoubtedly slow housing and business investment, acting as a drag on economic growth. The unemployment rate is therefore expected to rise from near cycle lows to above 5% in 2023, while broader-based inflation will ease further as the economy slows.

–NAHB Economics Group

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July 2022

EYE ON HOUSING

A

RESIDENTIAL BUILDING WORKER WAGES CONTINUE To Rise Amid Uncertainty BY: JING FU

verage hourly earnings for residential building workers* continue to rise in May as the construction labor market remains tight, meanwhile the growth rate is trending down given tightening financial conditions and increased economic uncertainty.

According to the Bureau of Labor Statistics (BLS) report, average hourly earnings (AHE) for residential building workers were $29.18 in May 2022, increasing 5% from $27.79 a year ago. This was 17.0% higher than the manufacturing’s average hourly earnings of $24.95, 11.5% higher than transportation and warehousing’s, and 9.7% lower than mining and logging’s. Construction job openings was little changed in May with 434,000 jobs, the highest measure in the history of the data series. As skilled labor shortage persists, rising wages may be one of the effective ways to attract employees to fill empty positions.

Average hourly earnings for residential building workers have increased significantly since the COVID-19 pandemic recession. Between December 2019 and December 2021, residential building workers’ average hourly earnings increased about 12%.

Note: * Data used in this blog relate to production and nonsupervisory workers in the residential building industry. This group accounts for approximately two-third of the total employment on residential building industry.

On an unadjusted basis, the Purchasing Index showed a 17% yearover-year decline and the Refinancing Index showed a 78% year-overyear decline. Comparison of the year-over-year percent changes in refinancing and purchasing shows that from October 2021 to present, refinancing has declined by a larger amount.

The refinance share of mortgage activity decreased to 29.6% of total applications from 30.3% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 9.5% of total applications.

July 2022

www.ncbia.com

page 17

EYE ON HOUSING

SOLID JOB GAINS In June BY: JING FU

D

espite interest rate hikes, job growth remained solid in June.

Total nonfarm payroll employment increased by 372,000 and the unemployment rate remained at 3.6% in June.

Construction industry employment (both residential and non-residential) totaled 7.7 million and has exceeded its February 2020 level. In June, residential construction lost 4,100 jobs, and non-residential construction added 16,500 jobs. Residential construction employment currently exceeds its level in February 2020, while 79% of non-residential construction jobs lost in March and April have now been recovered.

In June, total nonfarm payroll employment increased by 372,000, following a gain of 384,000 in May, as reported in the Employment Situation Summary. The estimates for the previous two months were revised down, suggesting modestly softening in labor market. The April estimate was revised down by 68,000 from +436,000 to +368,000, while the May increase was revised down by 6,000 to +384,000. With these revisions, employment in April and May together were revised down by 74,000 from the previously reported ones.

In the first half of 2022, more than 2.7 million jobs were created, and monthly employment growth averaged 457,000 per month. As of June 2022, total nonfarm employment is 524,000 lower than its pre-pandemic level in February 2020, almost fully recovered from the COVID-19 pandemic.

Meanwhile, the unemployment rate remained at 3.6% for the fourth straight month. It was 11.1 percentage points lower than its recent high of 14.7% in April 2020 and 0.1 percentage point higher than the rate in February 2020.

The labor force participation rate, the proportion of the population either looking for a job or already with a job, ticked down 0.1 percentage point to 62.2% in June. The decline in the participation rate was led

by Black and Asian workers, while the labor force participation rate for White workers remained the same. The labor force participation rate for people who aged between 25 and 54 decreased 0.3 percentage points to 82.3% in June.

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Additionally, according to the Household Survey supplemental data, which come from questions added to the Current Population Survey (CPS) since May 2020, 7.1% of employed persons teleworked or worked at home in the last 4 weeks specifically because of the coronavirus pandemic in June, down from 7.4% in the previous month. The share of the employed who teleworked has declined for the past five months.

Two years ago, in May 2020, 35.4% of employed persons teleworked because of the coronavirus pandemic.

Professional and business services (+74,000), leisure and hospitality (+67,000), and health care (+57,000) had notable job gains in June.

Employment in the overall construction sector increased by 13,000 in June, following a 34,000 gain in May. Residential construction lost 4,100 jobs, while non-residential construction employment gained 16,500 jobs in June.

Residential construction employment now stands at 3.2 million in June, broken down as 899,000 builders and 2.3 million residential specialty trade contractors. The 6-month moving average of job gains for residential construction was 9,467 a month. Over the last 12 months, home builders and remodelers added 121,400 jobs on a net basis. Since the low point following the Great Recession, residential construction has gained 1,171,700 positions.

In June, the unemployment rate for construction workers declined by 0.5 percentage points to 3.6% on a seasonally adjusted basis. It marks the lowest rate since May 2019. The unemployment rate for construction workers has been trending lower, after reaching 14.2% in April 2020, due to the housing demand impact of the COVID-19 pandemic.

www.ncbia.com

July 2022

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July 2022

www.ncbia.com

page 19

EYE ON HOUSING

CONSTRUCTION JOB OPENING Leveling Off

T

BY ROBERT DIETZ

he construction labor market remains tight, but the total number of open construction sector jobs has likely reached a cyclical peak as economic activity slows in response to tighter financial conditions.

The count of open construction jobs was little changed in May, falling from 440,000 in April to 434,000. The April reading remains the highest measure in the history of the data series (going back to late 2000). The May 434,000 measure is nonetheless a significant increase over the 308,000 estimate of 2021. The job openings rate in construction ticked down to 5.4% in May. The housing market remains underbuilt and requires additional labor, lots and lumber and building materials to add inventory. However, the market is now slowing due to higher interest rates yielding an expected slowing of the count of unfilled positions in the sector.

Hiring in the construction sector was little changed at a 4.7% rate in May. The post-virus peak rate of hiring occurred in May 2020 (10.4%) as a rebound took hold in home building and remodeling.

Despite some slowing of building activity, construction sector layoffs remained low at a 1.4% rate in May. In April 2020, the layoff rate was 10.8%. Since that time however, the sector layoff rate has been below 3%, with the exception of February 2021 due to weather effects. The rate trended lower in 2021 due to the skilled labor shortage and remains low in 2022 as the availability of skilled labor remains tight.

The number of quits in construction in May (200,000) marked a gain over the measure a year ago (175,000).

Looking forward, attracting skilled labor will remain a key objective for construction firms in the coming years. However, while a slowing housing market may take some pressure off tight labor markets, the long-term labor challenge will persist beyond an expected near-term recession.

page 20

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July 2022

Do you want to opt-in to our referral program?

Just email judie@ncbia.com

July 2022

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page 21

EYE ON HOUSING

NEW HOME SALES INCREASE IN MAY Before Fed's June Rate Rise

A

BY: ROBERT DIETZ

fter posting four consecutive monthly declines on rising mortgage rates and worsening affordability conditions, new home sales posted a solid gain in May as some buyers rushed into the market in advance of the Federal Reserve’s June interest rate hike.

Sales of newly built, single-family homes in May increased 10.7% to a 696,000 seasonally adjusted annual rate from an upwardly revised reading in April according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. New home sales are down 10.6 percent in 2022 on a year-to-date basis.

Though new home sales registered a solid increase in May, we expect sales to decline in June following the Fed’s action to significantly raise interest rates in an effort to cool the economy and ease inflation. While sales were up in May, the 696,000 annual pace was 5.9% lower than a year ago.

Moreover, the months’ supply measure is elevated at 7.7, but existing home inventory remains very tight, and this supports demand for new construction.

The median sales price dipped to $449,000 in May from $454,700 in April but is up 15% compared to a year ago, due primarily to higher construction and development costs, including materials. High construction costs and rising mortgage rates are pricing many buyers out of the market. Only 10% of new homes were priced below $300,000 in May, compared to 23% a year ago.

Regionally, on a year-to-date basis, new home sales fell in all four regions, down 3.8% in the Northeast, 21.7% in the Midwest, 12.3% in the South and 2.2% in the West.

New single-family home inventory remained elevated at a 7.7 months’ supply, up 42.6% over last year, with 444,000 available for sale. However, only 8.3% of new home inventory is completed and ready to occupy. The remaining have not started construction (25.9%) or are currently under construction. Inventory should slow in the months ahead as builder slow permit growth in response to weakening housing demand, particularly in significantly challenged housing affordability markets.

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July 2022

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July 2022

EYE ON HOUSING

HIGHER RATES REDUCE

Mortgage Demand

P

er the Mortgage Bankers Association’s (MBA) survey through the week ending July 1, total mortgage activity decreased, with the 30-year fixed-rate mortgage (FRM) rate reaching 5.8% on average. The latest week’s rate decreased to 5.74%, declining for the second straight week but still above pandemic levels.

The Market Composite Index, a measure of mortgage loan application volume, decreased by 5.4% on a seasonally adjusted basis from one week earlier, with purchasing decreasing by 4.3% and refinancing decreasing by 7.7%.

The latest month’s highest weekly rate was the highest since late 2008 (5.98%). The MBA cited that market expectations of the Federal Reserve’s 75-basis-point interest rate hike as well as its implementation resulted in rate increases of at least 20 basis points across all loan types. Affordability changes and low housing inventory continue to challenge homebuying for many.

BY: LITIC MURALI

On an unadjusted basis, the Purchasing Index showed a 17% year-over-year decline and the Refinancing Index showed a 78% year-over-year decline. Comparison of the year-over-year percent changes in refinancing and purchasing shows that from October 2021 to present, refinancing has declined by a larger amount.

The refinance share of mortgage activity decreased to 29.6% of total applications from 30.3% the previous week. The adjustablerate mortgage (ARM) share of activity decreased to 9.5% of total applications.

July 2022

www.ncbia.com

page 25

Members, NPP is a member benefit provider of the North Coast Building Industry Association.

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Employees can save up to 18% OFF Verizon monthly access fees and up to 25% OFF select accessories. NPP has a catalog of business offers and deals for businesses and employees. Membership is free and there is no obligation to purchase.

Restrictions may apply. *Unlimited plans are not eligible for corporate and employee line discounts. All Verizon Wireless offers are for a limited time only and are subject to equipment availability. Verizon Wireless reserves the right to change or modify all offers at any time without notice. All terms and conditions are subject to and governed by Verizon Wireless' Agreement with Customer, including, but not limited to, Customer eligibility requirements.

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www.ncbia.com

July 2022

EYE ON THE ECONOMY

TIGHTENING MONETARY POLICY Bringing on Downturn

T

he Federal Reserve further tightened monetary policy at the conclusion of its June meeting. Surpassing prior expectations, the Fed raised the federal funds target rate by seventy-five basis points. The Fed also committed to reducing its balance sheet, including net sales of mortgage-backed securities by $35 billion a month when fully phased-in.

As a result of these moves, mortgage interest rates are closing in on 6% and will continue to climb as further tightening is expected throughout the year.

Despite the lack of resale inventory in the housing market, these higher rates — combined with rising construction costs (up 19% year over year, despite softening lumber prices) — are taking a toll on home builder confidence. In June, the NAHB/Wells Fargo Housing Market (HMI) fell two more points to a level of sixty-seven. The HMI has now fallen six straight months, and the traffic component has fallen below the key breakeven level of fifty for the first time since the summer of 2020.

Taken together, current economic and policy data indicate a housing downturn is underway. NAHB is forecasting a hard landing for the economy, with a recession in 2023. Although this will not involve a financial crisis, as the Great Recession did, it will mean declines for housing data and rising unemployment until the inflation threat has passed.

The ongoing bad news for inflation is the immediate trigger for current conditions. Inflation reached a fresh 40-year high in May, with the CPI up a painful 8.6% year over year. Economic policy needs to focus on improving the supply side of the economy by bringing down energy, transportation and material costs. Without such policy, the Fed is left to do all the work of fighting inflation, and the Fed’s tools are crude: Raising rates slows demand and has an outsized impact on interest-rate sensitive sectors such as housing.

Despite these medium-term macroeconomic headwinds, there remains a housing deficit in the United States. This means as the economy exits this period of higher inflation and a recession in the coming quarters, it will be the housing and home building sector that will recover and expand first. An aging housing stock will also support demand for remodeling activity, and as mortgage interest rates rise, the demand for rental multifamily and single-family housing will remain solid.

–NAHB Chief Economist Robert Dietz

July 2022

www.ncbia.com

page 27

CAREERS IN CONSTRUCTION MONTH 19

Wednesday TBD

GENERAL MEMBERSHIP MEE TING & ELECTION NIGHT

Membership Event

Ahern’s Banquet Center, Avon Lake

SPIKE APPRECIATION MONTH 9

Wednesday 3:00 & 5:00 PM

E XECUTIVE COMMIT TEE & BOARD MEE TINGS

15

Tuesday

OHBA FALL BOARD

24

Thursday

THANKSGIVING | OFFICE CLOSED

15

Thursday TBD

UGLY SWE ATER MIXER

26

Monday

CHRISTMAS (OBSERVED) OFFICE CLOSED

Board

State Event

Social Event

Rev. 6/15/2022

OHBA EXECUTIVE VP COLUMN

READY FOR Some More Campaigning?

Likely no: neither am I. Not long ago we wrapped up a noisy and sometimes nasty primary election to nominate candidates for a general election this November. However, due to wrangling and arguing amongst Supreme Court judges and a politically charged redistricting panel, a federal court had to step in.

In short sum, every ten years the state must realign state legislative and congressional districts to comport with population changes as recorded in the recent decennial census.

The duty to perform that process is a constitutionally created redistricting panel. The panel started drawing districts, and a politically charged Supreme Court started rejecting them, in fact, five proposals were rejected on 4-3 votes of the court. In the meantime, the original primary date passed them by; and a special primary date for state legislators was set for August 2.

That is the simple explanation. What is most troubling is the demeanor of the two parties and the court is about 50 degrees less than hospitable. Only redistricting can create such an atmosphere. Who knew “gerrymandering” would be the topic of the day to cause such disruption?

by Vincent J. Squillace, CAE, OHBA Exec. VP

Somehow, congressional districts slipped through, and those primaries went on as scheduled. In August, all 99 Ohio House seats are up as well as half the Senate (17 seats).

Needless to say, just about all the players are angry. The new districts have created districts where incumbents now have primary opponents and some have to run against another incumbent (from the same party), so much for teambuilding.

Record low turnout is expected and none of the candidates will know their future til the votes are counted. Then it is off to the November General Elections.

Remember now, these are the folks who will make up the next General Assembly. I hope they can settle their hurt feelings and anger before they meet in January.

page 30

www.ncbia.com

July 2022

NAHB Member Put your membership to work.

Exclusive discounts that benefit you, your business and your family

nahb.org/Savings

Safety Council Enrollment deadline approaching Thousands of Ohio employers benefit from the education, resource sharing and premium savings which result from actively participating in their local safety council monthly meetings.

BWC Safety Councils can help you: • Learn techniques for increasing safety, health, and wellness in your workplace.

• Network and share best practices with other employers in your community.

• Identify resources to assist you in your accident prevention efforts.

• Access risk management information and strategies to reduce your worker’s compensation Costs Safety Councils will be meeting in person again beginning in July 2022. Enrollment into a Safety Council program in your region can provide additional savings to your organization. It is designed to be an incentive program that enables employers to receive a rebate of 2% of their annual workers’ compensation premium through program participation. For public employers, the rebate is on the 2021 rate year premium. For private employers, the rebate is on the 2022 rate year premium. The deadline to enroll in the Safety Council rebate is July 31, 2022.

For more information on the program including the participation requirements, go to SafetyCouncilMtgFactsheet.pdf (ohio.gov).

To locate the nearest Safety Council to your organization, go to Safety council locations | Bureau of Workers' Compensation (ohio.gov).

If you have any questions regarding premium installments or the true-up process, contact our Sedgwick program Safety in the Office The office setting sure has changed over the past few years. Many of us are returning to the office full-time, others are working from home and some of us are working a hybrid schedule. No matter what our work schedule is we need to stay diligent about the office dangers lurking around the corner. Just because we were gone doesn’t mean the dangers are gone.

Let’s review some of these hazards in the office setting.

Good Housekeeping is one of the keys to a safe office workplace. When you return to the office look for some of these potential dangers and be sure to report them.

• Keep walkways and hallways free of clutter, such as boxes and cords.

• If you see damaged flooring or carpet, report it immediately.

• Use a stepstool - not a chair - to reach items.

• Be sure to close drawers to prevent people from walking into them.

• When carrying material make sure it doesn’t block your view.

• When closing drawers, be sure to use the handle to prevent pinching fingers.

• Always be aware of doors opening, walking around corners, and passing by cubicles.

• When stacking material, be sure the heavier items are stacked on the bottom.

• Wet floors, especially on tile, can be a serious slip hazard.

Fire safety is important to all employees. Review some of these fire hazards found in the office setting.

• Check cords and electrical equipment (coffee makers, toasters, microwaves, space heaters, etc.) for damage.

• Review your Fire Prevention Plan (FPP) and Emergency Action Plan (EAP) and the employee reporting procedure in the event of an emergency. (Don’t forget to re-familiarize yourself with other office policies).

• Do not block exit routes, fire extinguishers or electrical panels.

• Do not allow trash to accumulate as this can add to fire.

Working safely at our desk or cubicle will help in reducing or eliminating potential ergonomic injuries. When working at your workstation remember these work practices.

• Use adjustable equipment, such as desk, chairs, and monitors.

• When sitting, be sure to keep your feet on the floor. Do not let them dangle over the floor.

• Ensure the monitor is correct distance for your vision.

• Be sure to take periodic breaks to give your body a rest.

• Place your keyboard and mouse correctly on your desk to prevent neck and shoulder pain.

• If typing from a document, use a document holder instead of looking down.

• If you have a new ergonomically safe workstation, understand how to use it.

• When sitting in your chair be sure not to lean too far forward or too far back.

• There are many stretching exercises that you can perform throughout the day.

No one office setting is the same so be sure to identify the hazards at your location. Consider creating a checklist and schedule a periodic walkthrough to identify any safety issues. Remember Office safety is everyone’s responsibility and should be incorporated into your daily work practices.

For more information, please contact Sedgwick’s Andy Sawan at 330.819.4728 or andrew.sawan@sedgwick.com

page 32

www.ncbia.com

July 2022

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July 2022

www.ncbia.com

page 33

NAHB NOW

HAVE BUILDING MATERIAL Prices Peaked?

I

BY: DAVID LOGAN

n just the past year, prices for materials used in residentialb construction have climbed nearly 20%. But that was also a period of intense demand and insufficient supply — a reliable recipe for sky-high prices.

So, with interest rates rising at their fastest pace in decades, housing demand is already beginning to ease. But will that mean material prices are on their way down as well?

If the mercurial fall in framing lumber prices in recent months is any indication (currently down 48% compared to one year ago), other materials are also likely to see prices flatten and drop as demand slows.

Steel mill products and ready-mix concrete are prime examples: Steel mill products have increased 105.6% since January 2021 but have declined 3.1% thus far in 2022. And prices for ready-mix concrete are up 12% from the start of 2021 but have only increased 3.2% since the beginning of 2022.

However, NAHB Chief Economist Robert Dietz asserts that broader and more significant price declines for building materials will require more beyond the Federal Reserve’s strategy of rising interest rates.

"I do think the Fed should explicitly acknowledge the role fiscal, trade and regulatory policy is having on the economy and inflation," Dietz said in a recent Eye on Housing article.

"Higher interest rates will not produce more lumber, [and] smaller balance sheets will not increase the production of appliances and materials," he wrote. "In short, while the Fed can cool the demand-side of the economy (reducing inflation and growth), additional output on the supply-side is required in order to tame the growth in costs that we see in housing and other sectors of the economy."

Thus far, any price-growth declines in building materials have been predominantly the result of a drop in buyer demand. Further evidence of this has continually appeared throughout 2022 within each reading of the NAHB/Wells Fargo Housing Market Index (HMI) of builder sentiment.

The HMI declined for the sixth straight month in June, falling to a level of sixty-seven and indicating a growing number of builders are either experiencing or anticipating a slowdown in prospective buyer traffic.

"On the demand side of the market, the increase for mortgage rates for the first half of 2022 has priced out a significant number of prospective home buyers," Dietz said. "Consequently, the market has now passed an inflection point whereby single-family home building is weakening, [and] we expect further declines in the months ahead."

Continue the conversation: • The Impact of Today's Home Building Challenges on Homeownership

page 34

• •

•

•

• •

•

NAHB Chairman Jerry Konter participates in a panel at the National Housing Conference's "Catalysts for Change: Reducing the Racial Homeownership Gap" event.

NAHB Chairman Jerry Konter joined thought leaders from across the housing industry to discuss critical challenges facing housing and homeownership as part of the “Catalysts for Change: Reducing the Racial Homeownership Gap” event co-hosted by the Urban Institute and the National Housing Conference.

Panels at the event included discussions of vertical and horizontal alignment of federal programs and resources, and best practices for closing the homeownership gap from local stakeholders. Konter participated in a component that focused specifically on federal interventions in homeownership disparities and used the opportunity to highlight key factors keeping homeownership out of reach for many, including continuing challenges with supply-chain constraints and material prices, lack of labor to build more homes and overregulation.

“Government regulations and impact fees add roughly 24% to the cost of a typical new home. That has a huge impact on affordability,” Konter stated. “Home builders support the intent of most regulations — such as a clean environment, safe working conditions, and desirable and resilient communities. But we desperately need lawmakers and regulators to understand that when you overlap thousands of regulations at the local, state and federal levels, that slows production and drives up costs.”

Konter also reiterated NAHB's interest in removing tariffs on Canadian lumber, after expressing extreme disappointment last week for the Biden administration's inaction on this issue.

“It is particularly important to end tariffs on Canadian lumber shipments into the U.S. that are further fueling lumber price volatility and acting as a tax on American home buyers,” he noted, adding that an increase of domestic timber harvesting would also be beneficial.

Fellow panelists included Daniel Hornung, Special Assistant for Economic Policy to President Biden; Luis C. Padilla, president of the National Association of Hispanic Real Estate Professionals; Lisa Rice, president and CEO of the National Fair Housing Alliance; and Vanessa Perry, a professor at the George Washington University School of Business and non-resident fellow at the Urban Institute’s Housing Finance Policy Center.

• Learn more about housing affordability challenges on nahb.org.

www.ncbia.com

July 2022

NAHB NOW

A

HOUSING CRISIS IN THE SPOTLIGHT AT HIGH-LEVEL Meeting in Washington

t a meeting today hosted by NAHB and the U.S. Department of Housing and Urban Development (HUD), NAHB Chairman Jerry Konter set the tone for the conversation by noting that “housing affordability is the top priority of NAHB members, and we feel it should be the top priority of lawmakers and government officials.”

HUD Secretary Marcia Fudge echoed Konter’s remarks. “We need to rethink housing," said Secretary Fudge. “If we do not address the housing crisis right now, we all will have failed.”

The meeting, held at the National Building Museum in Washington, served as a kickoff event for the Innovative Housing Showcase a threeday event on the National Mall featuring new building technologies and housing solutions to make housing more innovative, resilient and affordable for American families.

Today’s event featured a series of panels on how innovative building technology can bend the cost curve, and what public and private sectors can do to spur the adoption of this technology.

Before the first panel, an economic presentation by NAHB Chief Economist Rob Dietz and the National Multifamily Housing Council VP of Research Caitlin Sugrue Walter laid bare the issues facing the U.S. housing environment.

“We have a persistent housing deficit in the country and the costs to build are going up,” noted Dietz. “The time to address these issues is now, and we need to address them with market solutions and government policy changes.”

The first panel, moderated by Jenny Schuetz of the Brookings Institute, focused on incorporating innovative building techniques into common practice. Joan Glickman, Program Manager, Residential Buildings at the U.S. Department of Energy, touted some of the work her agency has done through its Advanced Building Construction initiative, including a recent award of $33 million for retrofitting homes in real-world trials.

Michael Parker, with home builder Ivory Homes in Utah, agreed that a focus on retrofitting existing homes would do much more for overall building energy efficiency than increasing requirements on new homes.

He also noted that modular building practices are just coming into maturity in the U.S. after enjoying decades of success overseas. If more builders would take risks and try new technologies, the industry could rapidly advance.

July 2022

NAHB First Vice Chair Alicia Huey moderated the next panel with newly confirmed Federal Housing Administration Commissioner Julia Gordon and Dr. Rodney Harrell from AARP. Commissioner Gordon noted that it is “the duty of the federal government to move quickly and make sure regulations are updated for new developments in home building, like accessory dwelling units.”

Harrell said that his group is seeing a disconnect between what people are asking for today compared to what demands homeowners will being making of their homes in the future, especially around universal design. He noted that in addition to cooperation between government and industry, there needs to be a lot more public education on the issues.

Public pushback, especially in the form of NIMBYism, was a common theme across the panels. Getting the public to understand that the housing affordability crisis is tied to antiquated ideas about where and what type of housing is allowed to be built is a key challenge to delivering solutions.

www.ncbia.com

page 35

Welcome New Members!

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Josh Hammond, Paraprin Construction (Affiliate Associate) 3566 West 105th Street Cleveland, OH 44111 (440) 673-8917 jhammond@paragonprincipal.com http://www.paraprincapital.com Sponsored by: Jon Sherer, Paraprin Construction A partnership with Paraprin provides a turnkey solution to set up a real estate investment business in the US with steady ROI. With Paraprin as the local partner, the investor does not need to worry about navigating the very fragmented US real estate industry. The capital investment is protected by hard, tangible real estate assets, and allows the investor to build up a sizable portfolio of cash flowing, appreciating real estate assets in the world’s best real estate market.

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Diana DeCesare, K. Hovnanian Homes (Affiliate Builder) 3296 Columbia Road, Suite B Richfield, Ohio 44286 440-985-7441 ddecesare@khov.com http://www.khov.com K. Hovnanian Homes believes your home should reflect your unique style, so diverse home designs are a trademark of our communities. We build your home, as we would build our own with the utmost care, excellent materials and according to exacting standards and services.

page 36

Sorry to See You Go! Linda LaFleur, Re/Max Crossroads Mike Gardner, Wes Gardner, Inc. Kelly Kreischer, K. Hovnanian Homes

www.ncbia.com

July 2022

OHBA BENEFITS

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www.ncbia.com

page 37

THANK YOU SPIKES! Our SPIKES are Our FOUNDATION

STATESMAN SPIKE (500-999 SPIKE CREDITS) Bob Yost......................... Dale Yost Construction............................... 679.75 Mary H. Felton............. Guardian Title.............................................. 516.00 SUPER SPIKE (250-499 SPIKE CREDITS) Terry Bennett................. Bennett Builders & Remodelers................. 301.25 Jack Kousma................. Kousma Insulation...................................... 287.50 Chris Majzun Jr. ........... Majzun Construction Co............................. 265.00 ROYAL SPIKE (150-249 SPIKE CREDITS) Bill Perritt...................... Perritt Building Co...................................... 225.50 Sara Majzun......................Majzun Construction Co............................. 214.50 Bucky Kopf.................... Kopf Construction Corp............................. 203.50 Jeff Hensley................... Lake Star Building & Remodeling............ 182.25 Randy K. Strauss.......... Strauss Construction................................... 179.50 Tom Lahetta.................. Tom Lahetta Builders.................................. 166.50 RED SPIKE (100-149 SPIKE CREDITS) Dave Linna Sr................ Linna Homes & Remodeling..................... 137.50 Ryan Puzzitiello............ Parkview Homes.......................................... 130.50 Jason Scott..................... North Star Builders...................................... 120.00 Thomas Caruso............. Caruso Cabinets........................................... 113.75 Patrick Shenigo............. ShenCon Construction, LLC...................... 107.50 Chris Majzun Sr............ Majzun Construction Co............................. 106.50 Tom Sear........................ Ryan Homes................................................. 101.25 GREEN SPIKE (50-99 SPIKE CREDITS) Jim Sprague................... Maloney & Novotny, LLC.......................... 94.00 Chris Mead.................... Maloney & Novotny, LLC.......................... 77.00 Aaron Kalizewski......... Grande Maison Construction..................... 69.50 Tim Conrad................... Graves Lumber............................................ 67.00 Ray Allen Thom............ Thom Concrete ............................................ 59.50 Jeremy Vorndran.......... 84 Lumber..................................................... 55.50

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Tim Hinkle..................Green Quest Homes................................ 6.50 Lindsay Yost Bott.......... Dale Yost Construction............................... 6.00 Jim Tipple...................... Maranatha Homes....................................... 6.00

page 38

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July 2022

NAHB Member

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July 2022

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page 39

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July 2022

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Earn Speedy Rewards on eligible purchases at Speedway.

Be sure to reference the North Coast Building Industry Association for your special 25¢ discount.

†Limited time offer valid for new Speedway SuperFleet Mastercard applications received from 3/7/2022 through 12/31/2022. New approved accounts will earn 25 cents per gallon rebate on Speedway fuel purchases in the first three months after account setup. Rebates are cents per gallon based on the number of gallons purchased at Speedway locations per calendar month. The maximum promotional rebate in any one-month period, regardless of billing terms, is $500.

Rebates are subject to forfeiture if account is not in good standing.

*Rebates are cents per gallon based on the number of gallons purchased at Speedway locations per calendar month. Rebates will be reflected on your billing statement in the form of a statement credit. Not valid on aviation, bulk fuel, propane or natural gas purchases. Rebates are subject to forfeiture if account is not in good standing. Program pricing is subject to change any time beginning 12 months after sign-up. **Please see Client Agreement – at www.fleetcor.com/terms/superfleet-mc – for rate, fee and other cost and payment information. Fuel purchases at locations other than Speedway locations are subject to an out-of-network transaction fee.

The SuperFleet Mastercard® is issued by Regions Bank, pursuant to a license by Mastercard International Incorporated. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated. © 2022 FLEETCOR, P.O. Box 1239, Covington, LA, 70434.

If any current member refers another business, that member will receive a $50.00 credit to their billing statement once the new business they referred begins to fuel at Speedway.

PLEASE NOTE TO BE ELIGABLE ALL APPLICANTS MUST GO THROUGH YOUR ASSOCATION REP FOR SPEEDWAY HOLDEN MOLL. JUST HAVE YOUR NEW MEMBER TELL HOLDEN WHO RECOMMENDED THEM. Holden F Moll Site Management Team o.760.918.5933 c. 442.291.9833 fax 760.918.5932 1902 Wright Pl Ste. 200 Carlsbad, CA 92008 Holden.moll@fleetcor.com

SuperFleet Mastercard Program Application FAX Application to 1-760-918-5932 or email to holden.moll@fleetcor.com For more information contact Holden Moll at 1-760-918-5933

BUSINESS INFORMATION (Required) Please tell us about your business: Legal Company Name (limit to 28 characters)*

Primary Fleet Contact First Name*

Subsidiary or DBA (limit to 20 characters)

Last Name*

Title*

Account Security Code (For Card Activation & Customer Service) – 5 NUMBERS*

Card Delivery Street Address 1 (No PO Boxes)*

Business Phone #*

Cell Phone #

Fax#

Card Delivery Street Address 2

Type of Business*

Years in Business*

Full Time Employees*

City*

State*

Estimated Monthly Charges/Spending ($)*

Estimated Monthly Gallons*

Company Billing Street Address 1 (If Different Than Card Delivery Address)

# of Vehicles*

# of Cards Needed

Company Billing Street Address 2

FederalTax ID #*

City

ZIP*

State

ZIP

# of Drivers

Statement Delivery Method:

Electronic

Paper

Email Address*:

Type of Organization*: o Sole Proprietorship

o Partnership

o Public Corporation

o Private Corporation

o Non-Profit

 Government & Education

Authorized Signature Required (Representative acknowledges receiving fuel pricing and payment terms)

 LLC

 LLP

Initial Here:

Please Read Carefully: FleetCor Technologies Operating Company, LLC (“FleetCor”) operates the SuperFleet Mastercard product. This application is made to FleetCor. By signing this application, Customer authorizes FleetCor to check Customer’s credit references and the information on this application and to obtain consumer or commercial credit reports to check Customer’s credit standing, both for this application and for the updates of Customer’s credit file and renewals of Customer’s SuperFleet Mastercard card(s). Customer acknowledges that this application is subject to approval and acceptance of Customer by FleetCor in Louisiana. If this application is approved, then Customer will be notified of its available credit/spend limit, and Customer will not allow its unpaid account balance to exceed its credit limit. Customer agrees that Louisiana law governs the terms and conditions of the SuperFleet Mastercard card(s), which terms and conditions will accompany the card(s) if this application is approved ("Card Terms"). Customer’s accepting, signing, or using any SuperFleet Mastercard card(s) will constitute Customer’s acceptance of those terms and conditions including, without limitation, Customer’s unconditional obligation to pay for all use of SuperFleet Mastercard cards provided to Customer and all use of Customer’s account each billing cycle, as well as all interest, fees and costs associated with such cards and account. The account is not a revolving credit account. Customer agrees that any liability arising or resulting from the misuse, unauthorized use, loss or theft of any one or more of the cards issued or of Customer’s account shall be fully borne, assumed and paid by Customer except as provided by applicable law and the Card Terms. Customer also agrees that Customer will exclusively use the SuperFleet Mastercard card(s) for commercial purposes and understands that Customer’s card(s) may be canceled if Customer uses them for personal, family, or household purposes. In the event that Customer’s account is turned over to a collection agency or an attorney for collection, Customer agrees to pay all such costs, fees and expenses of such agency or attorney, including, without limitation, court costs and out-of-pocket expenses. By signing below, Customer confirms that everything it has stated in this application is correct and that the signing authorized representative is duly authorized to enter this relationship on behalf of customer.

I agree to theTerms of this Application (Please check box) o Print Name* (Authorized Representative)

Signature* (Authorized Representative)

Title:

Telephone #:

Date*:

BUSINESS OWNER/ACCOUNT PRINCIPAL Required for all businesses excluding public corporations, non-profits, governments and educational institutions. Required for all persons owning 25% or more of business. Please use the Appendix to record additional owners.

Principal First Name

Middle Initial

Principal Street Address (No PO Boxes)

City

Last Name

Signature (Principal)

Social Security #

State

Date of Birth

Zip

Home Phone #

Does this person have significant responsibility for managing the legal entity listed above?

Yes 

Cell Phone #

No 

***OFFICE USE ONLY*** Market:

Rep ID:

Rep Name:

ATS Code (last 4 digits):

*Required Field

The SuperFleet Mastercard® is issued by Regions Bank, pursuant to a license by Mastercard International Incorporated. Mastercard is a registered trademark of Mastercard International Incorporated.