Ontario Home Builder - Winter 2013

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Forecast 2013 what’ S I n S tore for the hou SI ng I ndu S try I n 2013 P.42 Who’s Lending? l ook I ng beyond the b I g bank S P.48 Green Mortgage mortgage I ncent I ve S for energy-eff I c I ent home S ? P.50
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7 one Voice By Joe Vaccaro ohba is at the table with the ontario government

17 human capital By David Taub duties of employees to their former employers

19 marketing By Rick Storlie how to create a winning sales process

21 health & safety By Dr. Judith Wells tips for staying healthy on the jobsite

23 technology By Mark Evans software solutions to make your life easier

66 outside the box By Avi Friedman exploring opportunities in home health care departments

9 ontario report accessing political play makers/bruce trail for kids/durham builder booster of college learning labs/ wearing white raises green

27 top shelf Products to help build better homes

53 better builder better blogging/repeat business/ Peace and quiet

59 product focus heating & cooling

ontario home builder winter 2013 3 www.ohba.ca features 34 leading the Wsib elizabeth witmer heads wsib as the new chair
Huminilowycz 42 a tale of t wo markets
the economic climate For 2013
46 economic indicators looking at the Facts and Figures set to aFFect 2013
48 Who’s lending? Financial resources beyond the big banks 50 Green mortgages is energy eFFiciency translating to Financial incentives For homebuyers?
Hanes 34 table of contents 27 columns
By Marc
Forecasting
By Elaine Kapogines
By Michael Ryval
By Tracy
cover photo: Christine lim 9

editor

Elaine Kapogines, ext. 250 elaine@laureloak.ca

associate editor

Norma Kimmins, OHBA

art director

Erik Mohr

copy editor Barbara Chambers

contributors

Mark Evans, Avi Friedman, Tracy Hanes, Marc Huminilowycz, Dan O’Reilly, Michael Ryval, Dawn Sadler, Rick Storlie, David Taub, Dr. Judith Wells, Brent Wilker

photographer Christine Lim

president Wayne Narciso, ext. 240 publisher

Sheryl Humphreys, ext. 245 sheryl@laureloak.ca

advertising sales Mary Denyes, ext. 232 mary@laureloak.ca

Tricia Bird, ext. 223 tricia@laureloak.ca

published by Laurel Oak Publishing www.laureloak.ca

www.ohba.ca info@ohba.ca

Ontario Home Builder is published six times per year (Spring, Renovation, Summer, Fall, Awards, Winter). All rights reserved. No part of this magazine may be reproduced without the written consent of the publisher © 2013. Single copy price is $4.00. Subscription Rates: Canada $11.95 + HST per year, USA $29.95 USD.

Mail payment to:

Laurel Oak Publishing 1062 Cooke Blvd., Burlington, ON L7T 4A8 Phone (905) 333-9432 Fax (905) 333-4001

CANADIAN PUBLICATION MAIL AGREEMENT NO. 42011539 ISSN No. 1182-1345

4 ontario home builder winter 2013 www.ohba.ca
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At the Table OHBA continues open dialogue with government

The question members most often ask me is: “What does OHBA do for me?” I welcome this question as an opportunity to engage, educate and inform our members on what OHBA advocacy does for our industry.

Advocacy associations need to be and stay relevant to decision makers. And that means when we — be it local, OHBA or CHBA — disagree with decisions at any government level, we still need to be in the room educating, defending and fighting for our consumers and our industry. But just because we want to be in the room doesn’t always mean the door is open.

OHBA hosted Premier Dalton McGuinty at the 2006 Niagara Conference. It was his first official meeting with OHBA. It was here that our dear friend David Horton shared with me the long tradition OHBA has working with premiers. David’s favourite moment was presenting Premier Mike Harris with a sledgehammer at the 1996 OHBA-Ottawa Conference. (See that photo and more on page 9.)

Looking back at the McGuinty years, we acknowledge that the premier found time to engage directly with OHBA. At the BILD Industry Dinner in 2008 the premier announced his rejection of ongoing municipal requests to re-open the Development

Charges Act, and in 2010 he invited OHBA as the first industry sector to participate in Ontario’s Open for Business

Encouraged by the premier, OHBA outlined the negative impact the Harmonized Sales Tax (HST) would have on new home and renovation consumers. Working together by agreeing that new housing is “different,” the government changed its 2009 budget and now provides up to $24,000 in tax relief for a new homebuyer — amounting to over $1 billion in annual consumer tax savings.

This year Ontario introduced the permanent Healthy Home Renovation Tax Credit. It’s not the broad tax credit for renovations OHBA wants, but someone was listening and it’s a start.

Certainly OHBA disagrees with other decisions made by the McGuinty government, including the College of Trades, WSIB and the growing complexity of development approvals. The reality is there will always be new policies presented by government requiring OHBA attention and engagement.

So what does OHBA do for you? It puts your issues in the room with decisions makers, and that’s how we facilitate industry solutions that support housing affordability and choice. OHB

ontario home builder winter 2013 7 www.ohba.ca
We still need to be in the room educating, defending and fighting for our industry.
Joe Vaccaro is the COO of the Ontario Home Builders’ Association.
one voice photo: m A rg A ret m ullig A n

at the table with the premier

OHBA adheres to the sentiment that “if you aren’t at the table, you are on the menu,” and as such relentlessly advocates on behalf of its members and the industry with key political leaders in Ontario. And that includes the Premier of Ontario where, for almost a decade, OHBA was frequently “at the table.”

Premier Dalton McGuinty’s term comes to an end on January 27 when the provincial Liberals elect their new leader. And while OHBA did not always see eye-to-eye on issues of concern to the residential construction industry — the Premier did find the time to meet with OHBA leaders, listen to our perspective and consider our suggestions.

No matter the political party, OHBA has an envied history of open dialogue and mutual respect from Ontario premiers.

ontario home builder winter 2013 9 www.ohba.ca ontario r eport
Ontario Premier Dalton McGuinty chats with then OHBA President Brian Johnston prior to the Liberal leader’s 2006 address to OHBA members attending our annual conference in Niagara. This photo made the front page of the Ottawa Sun when OHBA President Al McLean presented Ontario Premier Mike Harris with a sledgehammer to help him tackle the province’s fiscal challenges. The PC Premier joined OHBA members in Ottawa for our 1996 conference. In December 2012, BILD Chair Paul Golini, Ontario Premier Dalton McGuinty and OHBA President Leith Moore shared a little bit of fun putting the finishing touches on a colourful house during their final meeting at Queen’s Park.
d aw
Premier Bob Rae, the first NDP leader to be elected to government in Ontario, addresses members at the OHBA Presidents’ & Executive Officers’ Seminar Toronto in 1993. photos: rodney (Peterson, harris, rae, johnston) Interestingly, this photo of Premier David Peterson with then OHBA President Hugh Heron in 1988 at the Liberal Leader’s office in Queen’s Park was photographer Rodney Daw’s very first assignment for OHBA. Since then Daw has photographed OHBA members with dozens of political leaders at various OHBA events.

Join us February 20-22 at the beautiful Village of Blue Mountain in Collingwood at the 2013 Builder and Renovator Forum — your premiere conference on building innovation and technical excellence. Once again OHBA is partnering with EnerQuality to provide a program that is timely and help you and your business thrive in the coming year.

Bruce trail for kids: a canadian excursion

One 50th anniversary. t wO hamiltOn herOes. $500,000 raised. an adventure Of a lifetime.

Hockey Legend at Brantford Luncheon

For those of you who feel shortchanged with NHL hockey this season, the Brantford Home Builders’ Association has come to the rescue! You’re invited to join them for their 26th Annual ‘Build Brantford’ industry luncheon featuring Hockey Hall of Fame legend Doug Gilmour as the keynote speaker. Gilmour won a Stanley Cup with the Calgary Flames in 1989 and was named the NHL’s best defensive forward in 1993 when he played for the Toronto Maple Leafs.

Date: Friday, March 1, 2013 Social: 11:30 a.m. lunch: 12:15 p.m. ticketS: $80 (+ HSt) or table of 10 $750 (+ HSt)

For further information or tickets, call Brantford HBA executive officer Fred DeCator at 519-442-3855 or email at freddecator@rogers.com.

in the fall, Hamilton-Halton Home Builders’ Association members and business owners Peter turkstra of turkstra Lumber and Fred Losani of Losani Homes embarked on a journey that would take them across Ontario, from niagara to tobermory, hiking the Bruce trail in its entirety.

Accompanying them on this 30-day, 885km adventure was Hamilton-local Mark MacLennan of Konstant/redirack and renowned Finnish explorer teemu Lakkasuo. together they began the Bruce trail expedition for Kids.

Braving rugged, uneven terrain, steep slopes and the worst that Mother nature could throw at them, the foursome managed to reach their goal two days ahead of schedule and raised $500,000 for Hamilton-based children’s in-school nutrition programs. Along the way, the team interacted and spoke with students about teamwork, perseverance and maintaining an active and healthy lifestyle.

the hike also marked the 50th anniversary of the Bruce trail, a UneSCO world Biosphere reserve, and highlighted the importance of preserving the natural environment of this great Canadian landscape.

You can find out more at www.brucetrailforkids.ca.

10 ontario home builder winter 2013 www.ohba.ca ontario r eport
Visit www.builderrenovatorforum.com for full program details and to register.
(L-R) Peter Turkstra, Teemu Lakkasuo, Fred Losani and Mark MacLennan

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Durham Builder Big Booster of College Learning Labs

Thanks in part to Durham Custom Homes, students at the Whitby campus of Durham College are now learning first-hand that “they don’t build houses like they used to.” And they are learning that that’s a good thing!

Durham College recently celebrated the opening of two new learning labs that demonstrate the way home construction has changed over the past 60 or 70 years. The labs — one a 1940s-era house and the other, a new, high-efficiency green home — are part of the $44-million, three-phase development project at the Whitby campus.

Durham Custom Homes bought the old house with dated technology and wiring that was moved to the Whitby Campus to help students gain experience in retrofitting older homes and understanding how to increase energy efficiency in new homes. The company also built the new house, which features the latest in environmentally friendly and energy-efficient technologies and is wheelchair accessible.

“There’s no reason why an accessible, affordable, environmentally efficient house can’t be built for all," said Jeff Goldman, president of Durham Custom Homes, who added, “I am honoured to have played a part in such an exciting project for the future of our community.”

Students in programs such as heating, ventilation and air conditioning techniques, plumbing (apprenticeship) and electrical techniques will benefit from the labs.

OHBA Local Association Presidents 2013

BILD

Steve Upton (Chair)

BLuewater BuILDers’ assocIatIon

Murray Lies

BrantforD

rob Melick

chatham-Kent

trevor Mailloux

Greater DufferIn

Henry Jansen

Durham reGIon

emidio DiPalo

Grey-Bruce

tim Clancy

GueLph & DIstrIct

John Sloot

haLDImanDnorfoLK

Sam Bunting

haLIBurton county

Don Koppin

hamILtonhaLton

Anthony Chiarella

KInGston frontenac

Mark Fox

LanarK-LeeDs

Mike Purdon

LonDon

toby Stolee

nIaGara

Jonathan whyte

north Bay & DIstrIct

robert Miller

Greater ottawa

robert Merkley/Pierre

Dufresne

peterBorouGh & the Kawarthas

randy Smith

QuInte

Brian Garrard

renfrew county

Dean Fuisz

sarnIa-LamBton

Matt Mceachran

sauGeen home BuILDers traDe assocIatIon

tBA

seaway VaLLey

constructIon & traDes assocIatIon

norm robitaille

sImcoe county

Bruce Bolduc

st. thomaseLGIn

Brian Lippold

stratforD & area BuILDers’ assocIatIon

Larry Otten

suDBury & DIstrIct

Marc G. Levasseur

thunDer Bay

Andreas Petersen

waterLoo reGIon

Brian Campbell

Greater wInDsor

ezio tartaro

12 ontario home builder winter 2013 www.ohba.ca ontario r eport
Durham College president Don Lovisa, left, and president of Durham Custom Homes, Jeff Goldman, celebrated two new learning labs for students, a 1940s-era home and a new, high-efficiency green home. The houses show the many changes that have occurred in the building and construction trades over the years.
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Wearing White Raises Lots of Green

Hundreds of BiLD members got into the spirit of things and wore white to the association’s 4th Annual Party for Humanity billed as a “white Party” where more than $30,000 was raised for Habitat for Humanity toronto.

“this event has been a tremendous success in each of its first three years, but we chose to think outside the box this year and try something different,” explained Bryan tuckey, BiLD president and CeO.

while most participants wore white, those who didn’t were invited to join in the party, but pay a “wardrobe tax,” which added even more money to the worthy cause in addition to the silent auction and raffle. BiLD has supported Habitat for Humanity since 2003 and raised more than $535,000 towards its goal of building affordable homes for low-income families.

in addition to raising money, BiLD members celebrated the leadership of Paul Golini, who concluded his two-year term as chair of the association at the end of the 2012.

“People often ask me where i get the energy to do this, and i tell them that it is all about passion — passion for the industry, this association and the people within it,” Golini told the crowd before thanking his wife and family for their support during his term.

LHBA Celebrates 60 Years

it was an evening to reminisce and party as members of the London Home Builders’ Association gathered for a celebratory dinner late last year to commemorate the association’s 60th anniversary as an organization. Joined by OHBA and CHBA representatives, guests enjoyed the extensive collection of memorabilia on display, video stories and a terrific cake.

the LHBA Legacy project to mark the milestone was the construction and donation of the Cancer Survivor’s Garden — a gift to the city of London that officially opened in 2012. Congratulations to LHBA!

Safety Award Heads North

Congratulations to ray williamson, past president of the thunder Bay Home Builders’ Association, who was recently presented with the roy A. Phinnemore Award — one of Ontario’s construction industry’s highest safety awards.

Presented by the infrastructure Health and Safety Association (iHSA), it’s the organization’s oldest and most prestigious award, and williams is the only person in northwestern Ontario to ever be presented with this distinguished provincial award. Proceeds from the award are donated to a charity chosen by the recipient and ray selected the ALS Foundation in memory of OHBA executive director, David Horton.

14 ontario home builder winter 2013 www.ohba.ca ontario r eport
Ken Rayner, vice president of IHSA; Ray Williamson, recipient of the Roy A. Phinnemore Award; and Al Beattie, president and CEO of IHSA.
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The Golini family dons big white sunglasses at the BILD Party for Humanity. (L-R) Marco, Matteo, Sharan, Luca and Paul Golini Jr. photo: rodney (golini family) A group of LHBA past presidents were joined by OHBA and CHBA representatives to celebrate the association’s 60th anniversary. (L-R): Tom Kirkhoff (2008); Toby Stolee (2005 & 2012); Eric DenOuden, OHBA 1st Vice President; Rennie Peiterman (2003); Deep Shergill, CHBA 1st Vice President; Bruce Baker (2000); Marco Palumbo (2001); Derek Anderson (2006); and Tony Marsman (1987-88).

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Duties of departing employees to their former employers

“My sales manager quit, went to my competitor and she took my customer list with her! Now she’s calling all my customers to solicit their business. What can I do?” This common scenario is disastrous. A senior — or not so senior — employee quits or is asked to leave, and when she goes, she takes her former employer’s property and information with her in order to find new work and gain a competitive edge.

Employers clearly understand that they’re entitled to recover the companysupplied laptop and cell phone, but what about information such as customer lists, product specifications and price lists? Those items are of far greater value to most businesses.

When the law looks at the rights of employers who want to protect themselves from ex-employees, it divides the employees into two basic categories. The first and largest category includes all former employees. The second, and

more limited category, covers senior management and key employees, called “fiduciaries.” The division between fiduciary employees and other employees will often be problematic. On departure, a

his old customers is a salesperson who may well not be a fiduciary. The duties that all former employees — including the non-fiduciary group — owe to the former employer are quite limited. These duties include a duty of loyalty and good faith, a key component of which is a duty of confidentiality, meaning that a departing employee may not take any confidential information of the former employer in any form which is recorded, saved or documented.

In very general terms, information is confidential if: a) the employee acquired it by virtue of his former position; b) it is not generally or publically known; and c) it is treated as confidential by the employer. While there are, as always, many grey areas surrounding the extent of the confidential information, often such information will include the customer list, the pricing list and business plans and strategies. While the departing employee may not retain any record of the confidential information, the reality is that this protection can mean very little because if the employee remembers the confidential information, she can and will use it to compete with her former employer and there will be little the former employer can do to prevent this.

Fortunately, there is a practical means of preventing a non-fiduciary departing employee from using her knowledge and experience to solicit her former clients. An employment contract can and should address this issue. The contract should include a clause (a “non-solicitation” clause) restricting the right of the employee to solicit the employer’s clients following the termination of her employment for a reasonable time period.

fiduciary has more duties than the regular employee but it will often be unclear as to whether the former employee was sufficiently “key” or was a manager, and therefore a fiduciary.

In many cases, the person who moves to a competitor and solicits business from

If the employee either does not have an employment contract or the contract is silent on this point, it isn’t too late to either create a written contract or modify an existing one. In doing so, it is important for the employer to consult a lawyer as a current employee must receive some extra compensation in exchange for giving the employer the benefit of the nonsolicitation clause.

My next article will address the duties of departing fiduciaries in more detail. OHB

ontario home builder winter 2013 17 www.ohba.ca human capital
the duties that all former employees owe to the former employer are quite limited.
David Taub is a partner with Robins, Appleby & Taub LLP. His litigation practice includes employment law.

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Gold, Silver or Bronze

At the closing of the 2012 London Olympic Games last summer, I found a story that reminded me a lot of what we in the home building industry have endured for the last six years; the story revolves around Allyson Felix of USA’s track and field team.

Felix had just won the gold medal in the 200 metres — of course, winning a gold medal is reason enough to celebrate, but this tale goes a little deeper. Felix entered the event having finished second in both Athens in 2004 and Beijing in 2008.

Not only did she come in second place, the same woman — Jamaica’s Veronica Campbell-Brown — beat her in both cases.

So, when Felix lined up for the finals in London, racing against the same person who had already beaten her twice,

how did she manage to pull out a victory? The answer for Felix is the same for builders across North America. Now, as we’ve closed the books on 2012 and welcome 2013, what can we do to get back to number one?

Felix knew she had to do something different — she changed coaches, changed training techniques, changed her running style. She understood the definition of insanity.

I’ve found there are four steps every builder can take to create a gold medalwinning sales process. I call them “the four Ps” and I’ve denoted the percentage of time you should be spending on each.

Step 1:

p repA r Ation (23% of your week)

There are four specific items that gold-

winning salespeople spend time on each week to keep themselves in tip-top shape: market research, sales environment, personal development and communication.

Step 2:

p ro S pecting (30% of your week)

Builders need to follow a specific formula to make the most of their prospecting efforts. This includes a mix of phone, email, social media and faceto-face networking. The most efficient form of follow-up is email. Yet, when I work with builders, I find they don’t know how to properly format an email to get a response, and therefore are very inefficient using it.

Step 3:

pA rtner S (7% of your week)

My research shows that a client referral lead is the highest converting source of new business. The second highest is a business or personal sphere of influence referral lead. Yet very few builders have a systematized program for enticing more of these types of leads. Building partner networks is the highest use of a salesperson’s time.

Step 4:

p re S enting (40% of your week)

Just like Olympic athletes, top builders have a very efficient sales process. Knowing and understanding the keys to building value can dramatically shorten the sales cycle. Builders should have some form of a deposit by the second or third meeting. Far too often a poor process needlessly extends the sales period or kills it altogether.

I recorded a webinar in which I elaborate on all the four Ps above. You can access the recording, copy of the slides and a one-page activity sheet to help you plan these activities by going to this link: http://tinyurl.com/alckgbj.

Don’t just hope you’ll come in first place in 2013; take a cue from Allyson Felix and make it happen! o HB

ontario home builder winter 2013 19 www.ohba.ca m arketing
Rick Storlie of New Home Sales Coach can be reached at 952-895-5566 or Solutions@NHSalesCoach.com. Visit NHSalesCoach.com to access Rick’s free sales and marketing tutorial library.
Four steps to creating an Olympiccalibre sales process

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Builders’ Check-up

Tips for staying healthy on the jobsite

Working against tough deadlines in the building and renovation business can really keep you on your toes. Preventing injuries by adding a few simple routines to your day can make a real difference in your ability to work more efficiently and comfortably, minimizing stress and maximizing your performance on the job.

Crouching into awkward spaces or working for long periods of time reaching overhead can wreak havoc on your lower back and neck. Adding short breaks into your day will help prevent overuse and repetitive strain injuries from creeping in. You will be more comfortable while you work and get through your job more quickly than if you’re fighting through the discomfort.

Take a three-minute “micro” break

every 45 minutes and do a few simple stretches to counteract the strain from your work posture. For example, add a quadriceps stretch (figure 1) when crouching or trapezius stretch (figure 2) when working overhead. Hold each stretch for 30 seconds and repeat on the opposite side. Circle your arms and take a few long steps around the room to loosen up. You’ll be amazed at the difference you feel by the end of the day.

Quad Stretch: Hold your right foot with your right hand. Keep your right knee pointing towards the ground. Pull your abdominal muscles in and keep your back straight. Feel the stretch in the front of your right leg. Hold for 30 seconds. Repeat with other leg.

trap Stretch: Reach your right arm behind your back towards your left back pocket. Tilt your left ear down to your left shoulder. Feel the stretch in the right side of your neck. Hold for 30 seconds. Repeat on the other side.

Fuel your body to make sure you don’t get overtired or dehydrated. High-sugar and caffeinated foods and beverages will give you a quick surge of energy, but may really leave you dragging later in the day. Adding water to every meal and snack will help to replace the fluid your body needs to function at its best.

Grab a mid-morning piece of fruit and try a handful of almonds half way between lunch and the end of the day. Giving your body healthy calories to work with will keep you strong and energized to focus on the task at hand.

Heavy lifting comes with the territory in this line of work. In Canada, almost 16 million workdays are lost because of injuries. These simple tips will protect your spine and keep you on the job.

• Stand close to the load.

• Place your feet shoulder-width apart.

• Keep your back straight with your feet and body facing the same direction.

• Squat down to the level of the object and test the weight out to make sure it’s not too heavy.

• Share the load. Don’t injure yourself by trying to carry too much weight alone.

• Keep the load close to your body.

• Don’t lift heavy objects above your waist.

• Bend your knees to lower the load down when you’ve reached your destination.

Your body is your biggest tool and needs to be maintained just like any other piece of equipment you use. Regular chiropractic care will keep your muscles and joints healthy and balanced to help prevent more serious injuries from coming to the surface.

Take time every month to take care of your health. It’s the best investment you can make to ensure a long, healthy and happy career. OhB

ontario home builder winter 2013 21 www.ohba.ca h ealth & Safety
Fi Gure 1 Fi Gure 2
Dr. Judith Wells is a chiropractor and massage therapist at Kew Gardens Health Group in the Beaches area of Toronto. 416-907-0103 or www.kewgardenshealth.com Bernkogel Cableway, Saalbach, Austria : Melzer & Hopfner Architects, Bregenz
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Software Solutions

Tech tools to make your life easier

For many people, the building industry is dominated by construction sites but, increasingly, software is playing a leading role in how things are done. Whether it’s design, project management, scheduling, procurement or architectural planning, builders are using software, including web-based services, to get the job done in more cost-effective and efficient ways.

There are plenty of options for builders, so I have come up with a handful of companies that are worth checking out.

BuildTools

BuildTools is a web-based home builder construction management software that connects everyone involved in a project — subcontractors, homeowners, project managers and architects. As an online service, BuildTools is accessible to anyone involved in custom home building or remodelling. It also manages all communications, bidding, budgeting, documentation and project schedules, and synchs with the QuickBooks accounting software. BuildTools is offered at a flat

monthly fee for unlimited use, unlimited projects, unlimited users and unlimited online document storage.

www.buildtools.com

BuilderTrend

A web-based construction management system for home builders and remodellers, BuilderTrend offers project scheduling, project management, customer management and service management. BuilderTrend’s leading features include photo and document management, selections and change order management, scheduling and warranty administration.

www.buildertrend.com

Chie F Ar C hiTe CT h ome d esigner suiTe

A suite of tools for designing and remodelling houses, kitchens, baths, decks and landscapes, Chief Architect Home Designer Suite comes with more than 1,500 sample plans. Featuring a user-friendly interface, the software lets you easily change colours, styles and materials, and generate 3D views. It also comes with step-by-step videos on the website to jump-start your use of the software.

www.homedesignersoftware.com

soFTPl An

As one of the leading home design software packages, SoftPlan offers userfriendly drawing tools that support the drafting of residential and light commercial floor plans — everything from generated elevations and sections to materials and 3D. SoftPlan is attractive to builders because it lets them quickly build a model of a residential and light commercial project. This includes the ability to drill down into the smaller components such as the shape, size and texture of elements such as countertops.

www.softplan.com

skeTChuP

SketchUp (pictured) is free downloadable software that makes it easy to create, modify and share 3D drawings. SketchUp is intuitive software that features a worldwide community, as well as dozens of video tutorials. SketchUp Pro is also available for those looking for more features.

www.sketchup.com

ontario home builder winter 2013 23 www.ohba.ca technology

Build iT SySTem S

BuildIT helps contracting businesses by helping them organize and share online files, schedule multiple jobs, including those running concurrently, and communicate with the right person at the right time. The software includes construction scheduling, schedule templates, contacts, jobs, appointment calendar, files and photos.

www.builditsystems.com

Procore

An online service, Procore’s project management software makes it easy to create schedules, close RFIs and track communications using a web browser on a computer, smartphone or iPad. Procore has extensive features such as contract management, scheduling and email management. Procore can be purchased by itself as a best-of-breed application. It can also be integrated into scheduling files from Microsoft Project, Primavera SureTrak and other industry standard scheduling tools.

www.procore.com

Sage eSTimaTing

Powered by trade-specific cost databases, Sage Estimating lets you automate job estimating and offers the ability to create job estimates with accuracy and precision. You can input your own costs into a pre-built database or choose a database pre-populated with costs. Sage is available in a standard package, as well as an extended version that includes estimating templates. Both versions come with pre-built databases ready to use “out of the box.”

na.sage.com/sage-estimating

e

aSy ProjecTS

A cost-effective online service for managing and tracking projects, Easy Projects was designed to make project management hassle-free and straightforward. It features an intuitive and user-friendly interface with a minimal amount of training required.

www.easyprojects.net

24 ontario home builder winter 2013 www.ohba.ca technology
Craftsmanship. Style. Performance. Carefully crafted
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Strassburger Windows and Doors 1-800-265-4717 or visit www strassburger net Vinyl windows, patio and entrance doors for the replacement, renovation and new-construction markets Kitchener Head Office and Showroom 2101 Shirley Dr , Kitchener ON N2B 3X4 519-885-6380 1-800-265-4717 Barrie Office and Showroom 18 Alliance Blvd Unit 2 Barrie ON L4M 5A5 705-812-4923 1-866-796-7023 OHB ad 4.5 x 4.875:Layout 1 11-09-28 3:52 PM Page 1
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idea Place for builders & renovators

cular Saw delivers fast, smooth cuts for most metal cutting applica tions. Designed with cold cutting technology, the SCM 18-A is built to withstand the toughest job

Double Duty

With convenience of electric and functionality of gas, the new dual fuel Connoisseurian Series by Capital Cooking Equipment incorporates the best of both technologies. Another important feature doesn’t involve cooking, but listening. Capital engineers incorporated a two-speed cooling fan system in the oven; the high, noisier speed is only triggered when the oven is at extreme high temperatures over a long period of time, such as operating the self-cleaning mode.

www.capital-cooking.com

Happy Handling

DuPont and Ansell have collaborated on Ansell’s newest ultra-lightweight and highly cut-resistant gloves to protect workers.  The gloves, featuring DuPont Kevlar yarns and Kevlar with reinforced stainless steel, are part of Ansell’s ActivArmr portfolio. ActivArmr Heavy Duty Gloves (pictured) are designed for the general contractor, ideal for woodworking, demolition, heavy cutting/sawing, digging, masonry and handling metal.

www.activarmr.com

Green Drywall

Certainteed’s AirRenew indoor air quality gypsum board actively helps clean the air by capturing formaldehyde or other aldehydes (a family of VOCs) and converting them into inert compounds that safely remain within the board. AirRenew also features CertainTeed’s M2Tech technology, which is specially engineered to provide enhanced protection against moisture and mould. AirRenew contains up to 96 percent total recycled content and can be installed, finished and recycled like www.airrenew.com

ontario home builder winter 2013 27 www.ohba.ca
toP shelf

HigH impact

For the most rigorous jobs,

hOme sWeet hOmesteaD

Lauzon Distinctive Hardwood Flooring has introduced its new Homestead Series of timeworn floors. Wide, bevelled-edge planks, softly hand-scraped or brushed, gives this floor a unique personality. Its deep, rich colour palette and irregular grain is reminiscent of the past, the perfect complement to a country interior. Its texture adds character to a contemporary loft, and softens the formality of traditional decor. www.lauzonltd.com

Water ON DemaND

Eliminating the need to stand and wait, the new 29-cubic-foot GE Profile French door refrigerator features a highly advanced ice and water system. The Hands-Free Autofill system and advanced filtration system is built directly into the door, and is the first to remove harmful chemicals from water and ice. www.geprofile.ca

Outsmart mOther Nature

With Duraflo’s new WeatherPRO Series PRO weatherproof slantback vent, you no longer need to worry about extreme weather. Designed to allow for high volumes of airflow, while providing excellent defence against weather infiltration, the WeatherPRO internal baffles deflect water and snow, allowing it to drain harmlessly out the drainage openings. www.duraflo.com

28 ontario home builder winter 2013 www.ohba.ca
top shelf

At Reliance Home Comfort™, we’re always working to keep our Builder Program at the forefront of the industry. And our new Comfort Value Bundles are no exception.

The bundles bring together some of our best-in-class heating, cooling and air filtration products along with the water heater rental equipment Reliance is so well known for. The result: bundled products that benefit both builders and homebuyers.

What’s in it for you?

• Up to $6,000 in savings per house – Reliance covers the capital costs of any bundled equipment

• More installation allowances – the bigger the bundle, the more allowances you will receive

• No post-sale equipment service costs – we take care of any repairs on rental equipment

What’s in it for your homebuyers?

• Peace of mind – all repairs, parts, labour and replacement costs are included for life*

• Live telephone support – 24/7/365

• Ease of renting – predictable monthly payments

Make Comfort Value Bundles a standard in all your new builds. Call 1-888-499-7255 or talk to your Reliance Key Account Manager today.

Save up to $6,000 in capital costs per house

* Subject to standard terms and conditions. TM “Reliance”, “Reliance Home Comfort” and the Reliance Home Comfort logo are trademarks of Reliance Comfort Limited Partnership.
2008 Supplier of the Year Award Winner
When you offer it, they will come.

Hammer Time

Milwaukee Tool expands its M12 Lithium-Ion line with the introduction of the M12 Cordless 1/2” SDS Plus Rotary Hammer. At only 3.9 lbs and 9 inches in length, it’s up to 65 percent lighter, making it ideal for drilling in tight spaces and all-day use for trades.

www.milwaukeetool.com

Lenox has introduced two new mediumtension hacksaw frames complete with T2 blades that deliver longer blade life and a superior cutting experience. For contractors who want a lighter saw, the LENOX Compact Hacksaw 2012 (pictured) features a lightweight aluminum beam that tensions to 20,000 PSI. It features an ergonomic and durable aluminum handle to provide a confident and comfortable grip. Additionally, users can mount the blade at a 45-degree angle for flush cutting applications. www.lenoxtools.com

Great GrindinG

engineered elegance

Terra Legno engineered wood flooring is created by combining separate layers of hardwood as opposed to solid wood flooring’s single layer. Each new layer is laid out so that its grain runs at a right angle to the grain of the layers above and below it. Because wood naturally expands and contracts in the width of the direction of the grain, combining the layers this way gives the flooring “dimensional stability” and prevents it from changing shape due to moisture. www.terralegno.com

www.portercable.com

30 ontario home builder winter 2013 www.ohba.ca top shelf
Porter-Cable’s new 7-amp, 4.5-inch small angle grinder/ cut-off tool is designed to offer aggressive performance and a compact, lightweight platform to professionals who are looking for corded power on the jobsite.

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JELD-WEN designs windows and doors to meet nearly every performance requirement – including yours. JELD-WEN has been an award-winning ENERGY STAR partner in the windows category since its establishment in 2004 meaning that our windows and doors have been adding years of value and savings to the home with lower future energy bills. Looks and Performance: JELD-WEN masters both.

More builders trust JELD-WEN than any other product line. To see the Top 10 reasons why JELD-WEN wins them over time and time again, scan this code with your mobile device.

Laser Precision

Bosch is expanding the multi-use laser market with the launch of its new GCL 25 five-point self-levelling alignment laser with crossline. Designed for tradesmen in need of a more versatile and multi-functioning tool for daily use, the GCL 25 is the ultimate solution for all short-distance levelling and transfer applications.

www.boschtools.com

Decorative DeaDbolts

Just label it

The Dymo LabelManager®500 TS is a stand-alone label maker featuring a full-colour touch-screen. Simply tap on the large screen to easily edit, format and customize labels. And the fast print speed makes it extremely efficient for creating high volumes of labels. www.dymo.com

Weiser’s line of Tavaris handlesets comes in a range of colours and functions. The Less Interior Pack Single Cylinder Deadbolt features a latch bolt operated by the thumb piece outside and the knob/lever on the inside with the deadbolt being operated by the key outside and the thumb turn inside, while the Double Cylinder Deadbolt features a deadbold that’s operated by the key on both sides. The Inactive Deadbolt features a handle and grip that act as a pull only for inactive leaf of double doors. Colours include Venetian bronze, satin nickel, bright chrome (pictured) and satin chrome. www.weiserlock.com

32 ontario home builder winter 2013 www.ohba.ca
top shelf

In today’s home building market, it’s reassuring to know that behind ever y  project, York® backs your success You can count on a full range of awardwinning heating and cooling products recognized for qualit y and reliabilit y  by the Good Housekeeping Seal of Approval and backed by our generous  warranties Plus, our innovative, high-ef ficiency solutions help you meet  today’s stringent ENERGY STAR® requirements And with local inventor y  availabilit y, your closing schedules stay on track

It’s time to back your project with the brand that has yours: York® When your reputation for qualit y and value is on the line… Call Colin Ashdown at 9 05-469 - 6962 and put York to work  on your nex t project. Built right . Built by York . T he York brand of J ohnson C ontrols Inc © 2011 J ohnson C ontrols Inc 5 0 0 5 York Drive N orman O K 73 0 6 9 w w w york com
34 ontario home builder winter 2013 www.ohba.ca

leading the WS ib

New chair, Elizabeth Witmer, welcomes the challenges

ontario home builder winter 2013 35 www.ohba.ca

In May 2012, Ontario Premier Dalton McGuinty appointed Elizabeth Witmer, a long-standing MPP with a distinguished record of service, as the new chair of the Workplace Safety Insurance Board (WSIB). “The agency needed to move forward, and I welcomed the challenge of the position,” says Witmer of her appointment, adding that the organization is “off to a good start, from our senior management team to our president.”

With 32 years in public service, including 22 years as a Progressive Conservative MPP for the riding of KitchenerWaterloo, Elizabeth Witmer brings significant experience to the WSIB. She was instrumental in revamping the worker’s health and safety and compensation system (including a name change from the Workers’ Compensation Board to the WSIB), serving as Ontario’s Minister of Labour from 1995 to 1997.

the Journey to mandatory WSib

2003

OHBA participates in the Joint Advisory implementation Group (JAiG) with wSiB to discuss the underground economy.

2004

OHBA opposes JAiG recommendations to eliminate all wSiB legislated construction exemptions.

A long-time resident of Waterloo, Witmer used to meet annually with the Waterloo Region Home Builders’ Association (WRHBA) — in her words, “an organization with a great reputation for excellence.” She employed WRHBA member contractors to renovate her home (with outstanding service and quality work, she adds) and many of her friends and family work in the residential construction industry.

Witmer has had a passionate interest in workplace health and safety throughout much of her career. It began when Paul Kells, now president of Safe Communities Canada, visited her office shortly after the tragic death of his 19-year-old son Sean in a construction accident after just three days on the job. “The event had a lasting impact on me,” she says. “It inspired me to commit myself to raising awareness of health and safety issues.”

As current chair of the WSIB, Witmer insists that the sys -

2004

OHBA passes a resolution at our conference stating that we do not support legislated mandatory wSiB coverage for construction.

2005/ 2006

Ministry of Labour releases consultation paper on Mandatory workplace Safety and insurance Act Coverage in the Construction industry.

2006

OHBA opposes mandatory coverage in our response to the Ministry of Labour’s wSiA Consultation.

October 28, 2008

the Ontario government introduces Bill 119, requiring mandatory coverage for independent operators, executive officers and partners in partnerships in the construction sector.

36 ontario home builder winter 2013 www.ohba.ca

tem, while not always perfect, has improved in many ways over the past few years. She cites a list of WSIB facts and statistics to back up this assertion: time spent administering claims has dropped significantly; 91 percent of injured workers are back to work within 12 months of an accident; decision-making is faster — 93 percent within two weeks; e-services now allow employers to register online; specialty clinics staffed by WSIB-employed specialists are providing timely treatment, with approximately 4,000 fewer workers experiencing permanent impairment; for the first time in 10 years, the WSIB has an operating surplus; claim costs in Ontario are among the lowest in Canada.

Witmer contends the mandatory coverage legislation (Bill 119) was introduced to improve workplace safety in the construction sector and level the playing field for employers and workers in Ontario. “We are working diligently to achieve fis -

if you are an executive office

e xecutive officers are commonly known as the president, vice president, chief executive officer, chief operating officer or secretary. wSiB has exempted one executive officer per firm that does not engage in any construction work, i.e. “not on the tools.”

wSiB considers construction work as any manual work of a skilled or unskilled nature, the operation of equipment or machinery or the direct on-site supervision of workers. Periodic site visits are permitted provided the partner or executive is not performing construction work on the site, i.e. “not on the tools.”

Details about the exemption for one executive officer or partner:

• e xemptions are not automatic. to receive the exemption, the partner or executive officer will have to complete a wSiB request form.

• independent operators and sole proprietors (with workers) do not qualify for this exemption.

Visit www.beregisteredbeready.ca.

other executive officers ‘not on the tools’

Other executive officers who are “not on the tools” in the same firm and do not receive the exemption are classified under a lower rate group (755), which is substantially lower compared to construction workers.

Visit www.beregisteredbeready.ca.

The other part of the deficit solution will come about through sweeping operational and policy changes (some of which have already been implemented), as well as revisions to the WSIB’s investment portfolio to increase its profitability.

ViSit

www.BeregiS

November 17, 2008

At the Legislative Committee, OHBA restates its opposition to mandatory coverage and defends the home renovator legislated exemption.

November 27, 2008

the legislation is proclaimed with the support of a number of nonOHBA affiliated construction associations.

September 2009

OHBA resolution restates our opposition to mandatory coverage and the limited exemption for executive officers “not on the tools.”

January 18, 2010

OHBA supports the wSiB establishment of a separate rate group for executive officers “not on the tools” and an exemption for home renovators.

20102012

OHBA continues to advocate for its members during wSiB’s policy implementation process.

Early 2012

wSiB establishes a separate rate group for executive officers “not on the tools” and an exemption for home renovators.

Fall 2012

At the OHBA conference, wSiB presents the “Be registered, Be ready” campaign that outlines the new requirements for mandatory coverage.

January 1, 2013

ontario home builder winter 2013 37 www.ohba.ca
m andatory WS ib Coverage
‘not on the tools’
m andatory WS ib Coverage
Bill 119 Mandatory Coverage is the law in Ontario. wSiB commits to a one-year compliance period to allow employers to register. tereDBere ADy.CA
“We are working diligently to achieve fiscal discipline and get people back on the job more quickly.”
cal discipline and get people back on the job more quickly,” she proclaims, noting that, similar to insurance companies, WSIB decisions regarding premiums are influenced by the organization’s liability. “Our mandate is to achieve 60 percent funding sufficiency by 2017, 100 percent by 2027.”

Witmer joins the WSIB just as Bill 119 becomes law, requiring mandatory WSIB coverage in the construction sector. Beginning January 1, 2013, independent operators, partners, sole proprietors and some executive officers and directors (previously exempt from mandatory coverage) will have to pay WSIB premiums. Builders, developers, renovators, trade contractors and installers will need to examine how the new law will affect their businesses and determine how they will afford to pay the new WSIB premiums.

When asked about the impact of the mandatory coverage legislation on previously exempt personnel in the construction industry, Witmer pointed out the advantages of paying WSIB premiums, such as retirement income benefits, health cost compensation, work-reintegration, severe impairment allowances, survivor benefits and others.

Benefits aside, Bruce Bolduc, head of the OHBA Health and Safety Committee, questions the effectiveness of mandatory coverage legislation. “The idea that making people pay WSIB premiums will make them work safer is a simplistic solution that isn’t going to deliver safer workplaces. We see it as a cash grab,” he says. It is estimated mandatory coverage will generate $72 million in revenue for the WSIB.

The good news about the new legislation, says Bolduc, is that the underground economy involving some Ontario contractors is now “on the radar.” The downside, he says, is that Bill 119 may motivate others to work “cash only” in order to avoid paying premiums.

“The OHBA fought mandatory coverage all the way through the process, but now we need to work with WSIB to make sure the policies respect the different types of employers in our industry,” says Bolduc. “Chair Witmer has a good understanding of our needs,” he adds. “She doesn’t want the WSIB to be the reason people close their businesses or start working for cash.”

When asked if she had a response to the OHBA’s concerns about Bill 119, Witmer explained, “This initiative is the result of legislation introduced and passed by the Ontario govern -

if you are a home renovator: renovator exemption

Home renovators who work exclusively in home renovation and work directly for the homeowner, meaning occupant or a member of their family, and are paid directly by the homeowner, meaning occupant or a member of their family, are not required to have coverage for themselves.

You still must have WSIB coverage for your workers, but as an owner, you are not required to have coverage for yourself. You can apply for optional insurance coverage with wSiB.

Visit www.beregisteredbeready.ca.

if you are an independent operator

An independent operator is someone who does not employ any workers, reports as self-employed to Canada revenue Agency and is retained as a contractor by more than one person during an 18-month period. You will need to be registered starting January 1, 2013.

Visit www.beregisteredbeready.ca.

ment. We did not make these decisions. Our job is to bring people into compliance.”

That being said, Witmer pledges to work with OHBA as WSIB eventually achieves service excellence and financial sustainability for the organization. “We’re only at the beginning of a long journey.” OHB

38 ontario home builder winter 2013 www.ohba.ca
m andatory WS ib Coverage m andatory WS ib Coverage
“The OHBA fought mandatory coverage all the way through the process, but now we need to work with WSIB to make sure the policies respect the different types of employers in our industry.”
Bruce Bolduc, chair of the OHBA Health & Safety Committee

SOUL OFTHE CITY TORONTO STAR

Toronto Star readership has climbed above one million a day, every weekday! * And, over the course of an entire week, the Star and thestar com reach over 2.3 million people. That’s half of the Toronto C MA This respect and engagement has been earned, every day, for the last 120 years and not just from our readers. The Star’s advertisers remain loyal because they know our audience is their audience

And that made us wonder whether there’s something that epitomizes what it means to be a Torontonian Exactly what makes Toronto Toronto? There are features, places, events, critters, large movable or immovable objects that are unique to this place And, if they were to disappear, their absence would diminish the city.

There can, and should be, debate about these attributes, even if what makes them cherished is intangible. Not to worr y. There’s a word for this; it’s called S O U L

* S o u r c e : N A D b a n k 2 0 11 , To r o n t o C M A A d u l t s 1 8 +
thestar.com

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Economic Outlook predicting Slow and S teady growth P.42 Economic Indicators Fact S and F igure S to gauge climate in 2013 P.46 Who’s Lending? l ooking beyond the big bank S P.48 Green Mortgage mortgage incentive S F or energy-e FF icient home S ? P.50 ontario home builder winter 2013 41 www.ohba.ca

A Tale of Two Markets

hile the overarching theme for 2013 may be akin to Aesop’s famous tortoise, what may really be emerging is something more Dickensian – A Tale of Two Markets, perhaps?

Throughout the recent Canadian Mortgage and Housing Corporation (CMHC) annual Housing Outlook presentations, a number of the speakers illustrated an acute division happening in Ontario — a division that is rather counterintuitive when you look at the last decade.

“Over the past 10 years, we’ve seen that the larger urban housing markets in Central and Eastern Ontario have been capturing a growing share of housing activity,” says Ted Tsiakopoulos, regional economist at CMHC and presenter at the Toronto Housing Conference. “In 2013, a lot of these larger urban markets will be taking a bit of a breather; instead, housing markets in the northern and southwestern parts of the province will likely hold up better.”

Nationally, the story in Western Canada will continue to be stronger growth and a stronger housing market than here in Ontario; however, in 2013, although it’s predicted that Ontario’s housing volume could see a drop of about 5 percent, we will start to see Ontario closing that growth gap between itself and the West (see Chart #1), says Tsiakopoulos.

One of the major factors impacting housing distribution across

Canada is what’s going on overseas. Recently, Asia’s economy has been decelerating, largely due to what’s going on in China. But even though China has seen a 3.5 percent drop in economic growth since 2010, that market — and the other emerging markets — will still continue to grow two to three times the rate of the advanced industrial world.

For Canada, this growth is translating into an increasing demand for resources. The emerging market economies are resource-poor, and as the middle class continues to develop and become more affluent, the demand for resource-intensive consumer good continues to rise. “We’ve seen commodity prices go higher and we’ve seen a lot of business investment out West, particularly in the oil and gas patch,” says Tsiakopoulos, “and that’s translated into job creation and housing demand.”

So what does this all mean for the Ontario housing market? Well, although the province will continue to lose migrates to the West due to job opportunities, which will create a “bit of a housing leakage” here, “not all urban housing markets will suffer the same fate,” Tsiakopoulos says. Historically, we don’t generally see smaller housing markets move in tandem with the larger markets – which translates into good news for a number of areas throughout the province, specifically in Northern and Southwestern Ontario.

“In recent years, job creation in the larger urban centres has

Slow and steady growth is better than no growth at all
42 ontario home builder winter 2013 www.ohba.ca

outpaced the kind of job growth we’ve seen elsewhere in the province,” continues Tsiakopoulos. “But what’s interesting in 2013 is that places like Sudbury, Windsor, London will begin to grow at or slightly above the provincial growth rate” (see Chart #2).

This growth, in part, can be explained by these regions’ ability to diversify their economies away from goods towards services. Northern Ontario, like Western Canada, will benefit from the rising commodity prices driven by overseas demand. And with commodity prices going higher, it’s more profitable to invest in industries such as gold exploration in Timmins and mining in Sudbury — investment translates to jobs, jobs translate to workers, workers translate to housing demand (see Chart #3).

Now, Southwestern Ontario doesn’t rely on natural resources like the north so much as its economy is based in manufacturing. “The news here is probably even better,” says Tsiakopoulos. “Ontario’s manufacturing sector has continued to expand in the face of a contraction in the sector globally” (see Chart #4).

Edward Heese, CMHC senior market analyst and speaker at the Waterloo and Hamilton seminars, also identified Ontario’s ability to buck the global trend when it comes to manufacturing activity as a good indicator of what to expect in 2013. “The good news is that we don’t export a lot to Europe,” says Heese. “Europe’s situation is having more of an impact on our interest rates here in Canada than it is on our job growth.”

The real story here is Ontario’s close connection to the U.S. –nearly 75 percent of our exports are bound for the States — and as the U.S. economy continues to indicate recovery, Ontario’s manufacturing sector is benefitting from the demand south of the border.

“What we’re seeing in the U.S. is that there’s been pretty significant adjustment, particularly in the financial sector and the household sector,” says Heese. “This adjustment is allowing people to think about spending again — households are in a better position to spend and lenders are more willing to approve loans.”

And recovery in the U.S. spells out positive projections for specific parts on Ontario. “We’ve found that for every one percentage point change in U.S. growth, we see a six-tenth percentage point change in employment growth in Southwestern Ontario,” says Tsiakopoulos. “Alternatively, in Central and Eastern Ontario — Toronto and Ottawa — we only see three-tenths of a percentage point change. So there’s a doubling effect in Southwestern Ontario from improving growth prospects in the U.S.”

ontario home builder winter 2013 43 www.ohba.ca Volumes holding up better in western canada 20% 2012 BC AlbertaSaskatchewanManitobaOntarioCANADA 2013 10% 0% 15% 5% -5% -10% north & southwest closing growth gap 2.0 SudburyWindsorLondonThunderBay GTAHamiltonOttawaONTARIOCANADA 1.6 1.2 0.4 1.8 1.4 0.6 1.0 0.2 0.8 0.0 N. Ontario from high commodity prices 250 0 50 100 150 200 2009Q1 2009Q1 2009Q1 2009Q1 2009Q1 2009Q1 2009Q1 2009Q1 2009Q1 2009Q1 2009Q1 2009Q1
Commodity Prices (non-fuel) N. Ont emp (RS) Source: IMF, Statistics Canada, CMHC calculations Source: Statistics Canada, LFS, CMHC Forecast Source: CREA, CMHC Forecast 2012/13 Index (2004=100) Employment Growth Forecast - 2013 Total Housing Volumes: Starts & Existing % Chg Chart #1 Chart #3 Chart #2
“We’ve found that for every one percentage point change in U.S. growth, we see a sixtenth percentage point change in employment growth in Southwestern Ontario.”

Ontario Manufacturing activity bucking global trends

ManufacturinG important for windsoR & london

U.S. Vehicle demand drives ontario auto exports

This effect is due in large part to Southwestern Ontario’s ties to manufacturing; a good chunk — 15 to 20 percent — of the labour force in this part of the province is tied to manufacturing (see Chart #5). And in order for this area to benefit from manufacturing activity, we must see the U.S. consumer continue to spend.

“We have a few data points to suggest that U.S. consumers are coming out of hibernation,” says Tsiakopoulos. “Since the early part of 2011, the U.S. consumer has been a big contributor to overall economic growth.” And, for a number of reasons, CMHC expects this trend to continue into 2013. Recently, there have been indications that U.S. consumers have boosted their savings and are beginning to pay down debt and secure financing, which is contributing to increased consumption.

For example, automotive sales in the last part of 2012 hit four- to five-year highs. “Vehicle sales are fast approaching pre-recession levels,” Tsiakopoulos points out (see Chart #6). “Increased vehicle demand spells good news for Ontario, because, guess what, when Americans are buying cars, what are we doing? We’re building them and shipping them south of the border.” Over 40 percent of Ontario exports are tied to automotive production and parts — and, as we’ve already seen, Southwestern Ontario is directly benefitting from this.

The U.S. has also seen fairly strong job growth in recent months — coming in above expectation. One contributing factor is worker productivity, says Tsiakopoulos. “If the U.S. has any chance of boosting output through 2013, they can’t do it by squeezing more productivity out of their labour force. The average employer will have to bring back employees.”

So now that we’ve looked at the relatively positive growth expectations of the north and southwest, what about the rest of the province? When talking about the major sectors, specifically in the GTA and Ottawa (representing Central and Eastern Onatrio), we have to look at finance, retail and public administration. But Tsiakopoulos says they don’t see these sectors contributing to economic growth the way they have in the past. The new capital requirements for the financial sector means banks will likely have to have more reserves on hand, which will continue to temper the rate of growth in credit. A slower housing market will also see credit growth slow — factors indicating that we will not see job creation in this sector.

In terms of retail, for the most part, Ontario households are doing what American households were doing a few years ago — starting to

pay down debt, meaning there’s less money left over for discretionary spending. Also, consumer confidence, which has been on the rise, is still not at the levels we enjoyed through the previous decade. This is a similar story in the public sector — governments are also paying down debt and cutting spending.

As with any projection, there are potential bumps in the road that could sour this relatively positive outlook. One of the major risks to growth is the U.S. “fiscal cliff” — the looming expiration of tax cuts and spending increases that were introduced by the Bush administration, explains Tsiakopoulos. And this deadline is creating anxiety amongst the business community. But CMHC is predicting that the U.S. will avoid the cliff by either extending the expiration date or there will be a compromise between taxes and spending — either way will avoid a $600 billion leakage to the U.S. economy, lifting the air of uncertainly currently felt in the business sector and, by the latter half of 2013, will actually translate into stronger job growth.

What does this all mean for Ontario’s builders? “Overall, in the housing marketing, we don’t see much growth, but also no major disruptions coming,” says Heese. But recovery and acceleration are on the horizon. “This may not be the most optimistic forecast — although it’s not really bad news — but as Aesop taught us, slow and steady is what wins the race.” OHB

44 ontario home builder winter 2013 www.ohba.ca
“Increased vehicle demand spells good news for Ontario, because, guess what, when Americans are buying cars, what are we doing? We’re building them and shipping them south of the border.”
Windsor Toronto London Ottawa 0% 5% 10% 15% 20% 25%
120 120 120 0 0 0 40 40 40 20 20 20 10 60 60 60 80 80 80 100 100 100 2000 2008 2003 2006 2010 2009 2012 2012 Auto Exports Ontario Manufacturing Share of Total Employment - 2012 Source: Statistics Canada Index (2008 = 100) CHart #4 CHart #6 CHart #5 * Global PMI<50 = contraction Source: JP Morgan Global PMI, Statistics Canada Source: Statistics Canada, Moody’s PMI Index Real Export & Sales Index (2000=100) US Vehicle Sales Global * (RS)

BUILDING

FEBRUARY 20-22, 2013

VILLAGE OF BLUE MOUNTAIN, COLLINGWOOD

Canada’s premier technical conference featuring building experts from across North America providing timely, vital information for design, construction and renovation professionals.

On site insights from Ontario Building Officials

EnerQuality’s Awards of Excellence Gala

Launch of OHBA’s Institute of Building Excellence

Trees: not just for hugging. Innovation in wood construction

H IG H LIG HTS IN CLU DE
The 2013 regulatory landscape
EXCELLENCE FROM REGULATION TO IMPLEMENTATION
today
H IG H LIG HTS I N CLU DE : 2013
Register
at www.builderrenovatorforum.com

Economic Indicators 2013

The facts and figures to help you gauge the economic climate

46 ontario home builder winter 2013

$386,300 1.8% 50bps 67,400

he slowdown in the global economy, centering mostly in Europe and China, is having an impact on Ontario and points to moderately lower growth in 2013. While some sectors, such as automotive, will rebound, housing is likely to weaken in Ontario, thanks in part to creeping interest rates and new mortgage rules that are designed to curb rapidly escalating existing home prices.

“Europe is in recession and the sovereign debt crisis remains a key risk for 2013,” says Sonya Gulati, senior economist at Torontobased TD Economics, a unit of TD Bank Group. “We’re also seeing a slowdown in the emerging markets.” The chief concern is that the Chinese government has tabled an agenda for 2012-2017 and forecast an annual growth rate in the range of 7-8 percent, significantly below the near double-digit rate from 2006 to 2011. “This has implications for the commodity side of the Canadian economy.”

Adding to the worries, there is concern that policy-makers in the U.S. may not resolve the so-called “fiscal cliff” in the U.S., which could potentially push the U.S. economy into recession (by removing US$500-$600 billion in tax cuts and government programs). Yet Gulati is confident that some measures will be extended to soften the potential impact and expects the U.S. economy will grow at 2 percent in 2013.

Given these external influences, Canada is also expected to grow about 1.8 percent in 2013, compared to 2 percent in 2012. Ontario, for its part, will see 1.8 percent growth, versus 1.9 percent in 2012. “There is a very modest recovery south of the border, and it will impact Ontario on the manufacturing side,” says Gulati, adding, on a positive note, that pent-up demand will boost the automotive sector. “But it’s taking time, and we expect better numbers in 2014. That’s when Ontario is expected to accelerate.”

Meanwhile, inflation will move up a notch in Ontario, as the Consumer Price Index will rise to 2.1 percent in 2013, versus 1.5 percent in 2012. The level of employment will grow by 1 percent in

2013, versus 0.6 percent in 2012. With the gains, unemployment will decline to 7.4 percent, compared to 7.9 percent in 2012.

On the housing front, Gulati anticipates 67,400 housing starts, compared to 78,600 in 2012. However, Gulati expects that in the second half of 2013 the Bank of Canada will increase the overnight rates by 50 basis points (bps), and follow with another 50 bps hike in 2014, thus pushing Canadian rates about 200 bps above the U.S. overnight rate. “Because of Canada-U.S. economic linkages, there has to be a very gradual increase in rates.” The interest rate hike will ultimately push housing starts lower still, as Gulati anticipates 63,800 starts in 2014.

Another key factor in the slowdown is last July’s introduction of new rules limiting mortgages to a maximum 25 years amorti-

zation. “Some of these rules are trying to address concerns about over-valuation of re-sale properties,” says Gulati. “The cool-down has started to happen — and home builders will start to feel it.” In 2013, the average re-sale home price is forecast to be $386,300 versus $385,800 in 2012. The impact will be felt more in 2014, when average existing home prices are expected to fall to $369,500.

Last year’s housing starts figure was better than expected because interest rates did not rise as forecast and builders continued to build. Now that is about to change. “The rate of home building has partly exceeded the rate of household formation. There are many units being built, but demographic trends are not as high,” says Gulati, adding that homeownership is close to reaching the 70 percent level in Canada. OHB

ontario home builder winter 2013 47 www.ohba.ca
Ontari O ’s expected 2013 gr O wth versus 1.9% in 2012 e xpected increase O f sec O nd half O f 2013 O vernight rates 2013 hO using starts versus 78,600 in 2012 f O recasted average re-sale h O me price in 2013 versus $385,800 in 2012
“The cool-down has started to happen — and home builders will start to feel it.”
48 ontario home builder winter 2013 www.ohba.ca

Who’s Lending?

s lending to the residential construction industry getting tougher? That depends on who you ask — and what type of project you plan on building. Let’s start with the basics. Residential construction projects are typically assessed as small ($1-10 million), medium ($10-50 million) or large ($50 million and over). Major institutional sources of debt capital include the chartered banks, along with some of the larger credit unions and independent trust companies.

These institutions are typically the first-position lenders on high-rise and low-rise projects, although they tend to shy away from raw land financing. Get the required deposits on the prerequisite percentage of presales, and all things being equal, you have a decent shot at obtaining first-line financing at 65 to 75 percent of loan-to-cost.

That still leaves 25 to 35 percent on the table for borrower equity and secondary lenders, not to mention 100 percent of raw land loans. That’s where private mortgage lenders come in; at present, there are approximately 10 major firms operating in Ontario.

“Essentially, we’re willing to accept more risk, and in so doing, fill the void created by the banks,” said Scott Cameron, president, Cameron Stephens Mortgage Capital Ltd. and head of OHBA’s Economic Review Committee. “Private lenders can provide a number of alternative financing options.” (See sidebar)

What about lending criteria, and how has it changed in the past few years? “From our perspective, the low-rise lending market has not changed significantly; we’re still looking for a large percentage of presales with deposits between 5 and 10 percent,” said Brad Lambert, regional vice president, commercial and real estate markets, Royal Bank, Toronto. “The high-rise market, however, has experienced more tightly controlled lending criteria. The market has seen a lot of growth, the construction period

is significantly longer than low-rise, the projects are getting larger and there are multiple projects in the pipeline.”

One way to control speculative risk is the requirement of larger purchaser deposits. “Five years ago, a 10 percent deposit was standard,” said Lambert. “We’re now requesting 15 to 20 percent. It’s important to note that developers have also been asking for this as a way to minimize their own risk.”

High-rise or low-rise, first line or secondary, both Cameron and Lambert agree on one thing: “The primary consideration for obtaining financing is the expertise of the developer, followed by the quality of the project, the location and the strength of the sponsorship,” said Cameron. “A strong track record can mitigate a myriad of concerns.” OHB

l ending 101

Acquisition & Bridge FinAncing: Properties under redevelopment or repositioning that require short-term financing until permanent financing. equity: equity is raised by relinquishing a percentage of the business. the lender becomes a partner.

inventory LoAns: Finance for unsold, completed residential units.

L And servicing LoAns: Facilitates the construction of underground services and roads for residential development projects.

LoAn-to-cost: A ratio used to compare the amount of the loan used to finance a project to the cost to build the project.

LoAn-to-vALue: the ratio of the fair market value of an asset to the amount of the loan that will finance the purchase. A more subjective process than loan-to-cost.

Mezz Anine: Offers the features of both debt (regular interest and principal payments) and equity (options or warrants). Mezzanine debt will rank behind senior debt but ahead of equity holders in terms of security.

ontario home builder winter 2013 49 www.ohba.ca

Green Mortgages

Lenders encouraging energy efficiency, but no real mortgage incentives in Canada yet

50 ontario home builder winter 2013 www.ohba.ca

n the United States, buyers of energy-efficient houses may soon have an advantage when they apply for a mortgage. Under proposed federal legislation, the SAVE Act, lenders will be obliged to factor in expected energy costs along with other recurring payments in the debt-to-income (DTI) qualifying ratios when determining a borrower’s ability to afford monthly mortgage payments. Buyers of an energy-efficient home would have less energy costs and thus be able to carry a mortgage on a larger home.

But no similar program is being considered in Canada, and we shouldn’t expect to see anything similar anytime soon, say several housing experts. “Canadian banks aren’t tying in mortgages to energy efficiency in a home,” says Zygmunt Strawczynski, program manager for EnerQuality. “You can’t get a larger mortgage because you’re buying an energy efficient home, even though your monthly costs will be less.”

John Godden, owner of building consulting firm Clearsphere and president of CRESNET (Canadian Residential Energy Services Network), says Canadian banks have been unwilling to adjust borrowers’ gross debt service ratio calculations to take energy savings into account. “There is no credit for buying energy-efficient homes that save money,” says Godden. He’d like to see banks take not just energy, but water savings into consideration as well, when determining how much mortgage a homebuyer can afford. “If we can get one bank to give a competitive advantage, the rest will follow.”

Currently, there are only a handful of bank-offered incentives for buyers of energy-efficient homes, and they don’t tend to be aggressively promoted. BMO offers an Eco Smart Mortgage at a rate lower than the posted rate (but slightly higher than BMO’s low-rate mortgage) for borrowers whose homes are verified to meet a checklist of energy-efficiency requirements. And with RBC’s Energy Saver Mortgage, homebuyers can receive a rebate of up to $300 if they have an audit done by a licensed home energy auditor within 90 days of receiving a mortgage through RBC.

“The link between lending and encouragement to do things that are energy efficient is not necessarily formally a green mortgage,” says Mark Salerno, GTA district manager for the Canada Mortgage and Housing Corp.

CMHC offers a 10 percent rebate on its mortgage insurance fees through lenders for people who buy an Energy Star, LEED or GreenHouse home or undertake improvements that increase their home’s EnerGuide rating by five points. The CMHC is a “nice little product” that creates an incentive for people to invest in energy efficiency, says Salerno.

“One interesting thing is that if someone bought an Energy Star home a year ago and qualified when the rating was 80 (it’s now 82), you have five years to sell the home where people who buy it can qualify for the rebate. With that, buyers are building in a benefit for their initial client and an ongoing legacy that offers a benefit for five years. That might be advantageous in advertising a home.”

Salerno points out that most banks offer Purchase Plus Improvement loans, which allow buyers to qualify for an expanded loan to carry out upgrades that will increase the value of the home, although those improvements don’t have to be energy-efficient ones. “What’s really more important is that people are educated. There is ample financing available and it’s more about making the right decision about what you buy with that financing.”

Strawczynski says with the 2012 Building Code changes, buyers of new homes are getting “a good product” but EnerQuality’s job is to incentivize builders to build Energy Star or above code “as a better quality product pays dividends for builders,” since their homes will offer more comfort and durability as well as energy savings that they can promote to customers.

However, he says, location, design, esthetics such as granite countertops continue to matter most with buyers and energy is “still far down the list.”

While Strawczynski would also like to see Canadian lenders providing mortgages tailored to a home’s energy efficiency, he is not optimistic that will happen anytime soon. “It’s unfortunate because of the logistics of doing it,” he says. “You’d have to bring regulators, government, builders’ associations and real estate professionals together to have a smooth transaction process and that would take a long time.”

Any such program would also have to include the 98 percent of Canada’s housing stock that is older and make energy audits mandatory on resale homes. “The cost of energy audits needs to be absorbed. Homeowners don’t want to pay for added transaction costs and real estate boards are opposed to this measure,” he points out. OHB

ontario home builder winter 2013 51 www.ohba.ca
“The link between lending and encouragement to do things that are energy efficient is not necessarily formally a green mortgage.”

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Better Blogging

Why home builder blogs are more important than social media

Is your home builder Facebook page or Twitter profile measurably increasing your email list, return traffic (website and sales centre) and sales every month? Facebook and Twitter have become home builder marketing standards, but many builders are reporting few actual sales that are initiated by social media. While it’s true that Facebook and Twitter can often be used by buyers to validate a buying decision, Facebook is not currently a primary go-to resource for real estate shoppers to research a new home purchase.

Blogs = WIder onlIne MarketIng reach (By a Whole lot)

One of the reasons Facebook is considered to be a primary marketing tool is its estimated monthly traffic of 167 million per month, outnumbering (by far) the average monthly traffic of a home builder blog. However, it is estimated that only 16 percent of your Facebook fans see your posts each week. According to our Builder Target’s recent home builder Facebook study, 38 percent of home builders have fewer than 500 fans. This means home

builder posts are seen by fewer than 100 fans each week who may or may not be actively in the market for a new home.

In contrast, optimizing home builder blog posts for high volume, relevant search terms puts your message in front of thousands of people who are actively searching for a home in the search engines every month.

Consider, too, that Facebook posts flash in a reader’s stream for a moment but blog content that is optimized for search can last in the search engines for years, reaching buyers today and tomorrow.

Blogs offer a greater reach, over a longer period of time, to a more targeted audience of potential homebuyers, than social media. This makes blogs a smarter investment for attracting new buyers into the sales funnel (prospecting).

Blogs = hIgher conversIon oF WeBsIte vIsItors to leads

Most home builder Facebook pages have a single point of conversion: to “like” the page (a few use opt-in forms and other tools). Once a potential homebuyer likes

your page, they are continually bombarded with distractions that compete with your message: friends who are online, new status updates, games, etc.

On your blog, your message does not compete with distractions. Everything on your blog header, sidebar and footer is designed to bring buyers deeper into the sales funnel through multiple call-to-actions: subscribe, view floor plans, watch virtual tour, schedule an appointment, contact sales office, opt-in to social media.

This produces a much higher conversion of visitors to leads that your sales team can engage with, more information about the lead and a direct correlation to your sales funnel.

Blogs = More eFFectIve eMaIl lead nurturIng

In our 90-day home builder marketing jumpstart program, we send a minimum of eight emails per month (buyers and brokers). Many builders are initially uncomfortable with this, feeling as though it may bombard prospects and brokers (though the numbers show that frequency increas-

ontario home builder winter 2013 53 www.ohba.ca
better builder

es open and click-through rates over time without increasing opt-out). However, when someone subscribes to your blog, they agree to receive an email as frequently as you write a blog. That means if you blog at a minimum of twice per week (recommended), a prospect is asking to hear from you twice per week.

This powerful drip marketing tool can drive prospects back to your blog, your website and your sales office time and time again during their process of researching and finding a new home.

Blogs = Better social Proof for referral Marketing

Social proof acts as a credibility factor that can influence a buying decision. One person can share your article on Facebook with a glowing recommendation, but potential homebuyers on Twitter or Pinterest may never see it.

Blogs centralize all of your social media engagement in one place and provide the

highest concentration of social proof. This is done through sharing buttons but also by importing Facebook comments, a Twitter feed of mentions of your company, a Facebook “like” box featuring your fans and more. No other resource creates this centralized hub of social proof and credibility.

“i Have a Blog and it doesn’t do all tHat”

If your blog is not currently producing these kinds of results, it might be time to re-evaluate the role of your blog in your overall online strategy. How much time, money and focus are you spending on your blog? How well optimized is your content for search engines? How strategic are your conversion points? How do you measure and quantify success? How knowledgeable, experienced and, most of all, accountable is the person writing your blog when it comes to SEO, conversion and directly impacting the online home builder sales funnel?

Blogging, like every discipline, takes expertise in order to produce quality results. (You wouldn’t hire a roofer to install plumbing, right?)

social still Matters

We’re not suggesting that home builders abandon Facebook — far from it. Social media is one of the most important tools in creating success for your blog (which in turn drives more traffic and leads than a SEO/blog strategy alone).

However, if your social media strategy is not producing the results you want in the form of website traffic, new leads and sales, then it might be time to consider re-prioritizing. Investing in your blog as the foundation of your online marketing can provide a better return on your investment in both short-term and long-term results.

54 ontario home builder winter 2013 www.ohba.ca
better builder OHBA Ackn Owledges wit H gr Atitude t H e supp O rt O f O ur sp O ns O r pA rtners:
Dawn Sadler is the founder of Builder target and author of The Homebuilder Online Marketing Handbook this article was originally published on Builder target’s blog. buildertarget.com

Repeat Business

A new concept in an old industry

Once upon a time, it was commonplace to know a person who had lived in the same home their entire lives. Growing up it seemed like people didn’t really move all that often — I can still drive around the old neighbourhood and point out houses of friends whose parents still live there. But for those 20- and 30-somethings, this will likely not be the case. They will change jobs, cities and inevitably homes in their pursuit of happiness. As a home builder, this presents a new marketing opportunity; but are you taking advantage of it?

The single biggest factor for buying more homes in a lifetime is price. Real estate costs more than it did a generation ago — a lot more in most major cities. Gone are the days when a “starter home” was a small, detached dwelling with a lawn that actually required mowing. Now, most of us will start in a 900-square-foot (or less) condo, or perhaps a slightly larger row home. Simply getting to a comfortable size for the average family may take three or more “starter homes.”

Other major contributors to this age of continual move-up are the younger gener ation’s lack of loyalty to employers and get ting married later in life. Switching jobs often means relocating, and staying single longer means less disposable income than that of a dual income home.

Creating a positive ownership experi ence that will solicit a repeat purchase or a personal referral doesn’t just happen, especially in the home building industry. First-time new construction buyers are notorious for having unrealistic expecta tions, and it takes a lot to overcome this.

Beyond these challenges, unlike a disposable product, your clients will not simply “trade-in” their homes when things start to deteriorate. Your clients have to

ontario home builder winter 2013 55 www.ohba.ca
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perceive the quality of your product years later, even as the home’s components start to break down and need to be replaced.

An intense focus on customer service, proactive communication and a great end product is required to obtain brand loyalty in our industry. Always remember that when your consumer buys a new home, the real experience starts when they take possession, so your customer service initiatives should be strongest post-occupancy.

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Peace and Quiet

Turning down the outside noise

Sound will play a key role in the coming decade as aging baby boomers look to home building materials that block unnecessary outdoor noise. An aging population combined with the economic reality of smaller lot sizes, attached homes and multiple-family apartment buildings means that the need for an effective sound barrier from neighbourhood noise will only increase. “When it comes to smaller lots the problems will always be ‘the neighbours’,” says Don Campbell, a Canadian real estate expert. “But there are many new building technologies that suppress sound, and even though they can cost more, they’re worth it in the long run as they become a real selling feature.”

Campbell, a real estate investor and researcher who’s written four best-selling books about the industry, predicts that noise will become a major issue for homebuyers over the next 10 years. Compounding the issue within singlefamily neighbourhoods, he adds, is the absence of any type of “condo rules” that impose sound restrictions and the fact that police today have little time to enforce noise complaints. Here are a few suggestions for reducing outdoor noise:

56 ontario home builder winter 2013 www.ohba.ca
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Sound TranSmiSSion ClaSS

Ask about sound transmission class (STC) ratings when choosing products. STC ratings measure a product’s ability to withstand the transfer of airborne sound at different frequencies and are equal to the number of decibels a sound is reduced as it passes through a material. Generally, the higher the STC rating the more noise that is blocked.

maSonry

Masonry products perform exceptionally well in blocking low-frequency, airborne noise such as plumbing, heating and air conditioning systems, elevators, amplified music, traffic and aircraft. “The high density properties of masonry provides superior sound control because it resists the passage of airborne noise,” says Jack Prazeres, president of MasonryWorx, a trade association representing brick, block and stone masonry professionals. “In addition to being an attractive cladding for your home, masonry offers not only sound protection but also greater fire protection, more energy efficiency and a higher resale value.”

WindoWS

Triple-pane windows also help to reduce noise levels. Another way to keep out the din is through laminated windows that can be installed over top of existing windows.

inSulaTion

The type of insulation you choose is also important if you’re looking to reduce outside noise. Again, the density of the insulation is a key factor to reduce airflow and noise — the denser the insulation the lower the sound transmission. Stone wool products have higher density and because the fibre is non-directional, they provide good sound barriers.

deSign

The design components of new homes can also mitigate sound. A trend towards having the master bedroom suite created in the basement will become more prevalent in the years to come as the population seeks a quieter living space, says Campbell. oHB

ontario home builder winter 2013 57 www.ohba.ca
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Heating & Cooling The battle for energy efficiency

It isn’t just home builders who are challenged by purchaser demands for innovative and highly energy efficient heating and cooling products. With houses becoming tighter and more energy efficient, the ongoing challenge for manufactures is to design lower-output HVAC systems and products best suited for those homes, says Warren Heeley, president of the Heating, Refrigeration and Air Conditioning Institute of Canada, a non-profit national trade association of manufacturers, wholesalers and contractors in the heating, ventilation, air conditioning and refrigeration industries.

For its part, the institute is working on several initiatives to meet the needs of its members and ultimately builders and their purchasers, says Heeley. High on that list is how the HVAC and housing industries can demonstrate the long-term benefits of high-efficiency products “in a post-incentive marketplace.”

By that he means the gradual decline — or sometimes the sudden elimination — of government energy incentive grant programs for homeowners. While such grants have their place, they can cause “hiccups” in the marketplace, he says.

A special institute task force is currently studying measures by which HVAC manu-

facturers, contractors and home builders can illustrate long-term energy savings rather than simply emphasizing the price of products or what incentives might be available. This could be in the form of a web-based application or graphic material, says Heeley, who expects the task force to complete its work this spring.

“We’re also lobbying for the harmonization of codes and minimum energy standard performance standards.” Variances in those standards are beginning to show up among provinces, he explains.

When standards aren’t uniform across the country, there’s the possibility manufacturers will either abandon small markets or increase prices, he cautions. “If a product is good in B.C. and Ontario it should be good right across the country, with some exceptions for specific regional areas.”

As for specific trends in the marketplace, forced air heating and cooling systems continue to be the product of choice for the overwhelming majority of large volume housing projects, says Christine Lolley, a designer and co-principal of Solares Architecture Inc., a Toronto-based firm specializing exclusively in the design of energy efficient homes. “Air conditioning uses the same ducts as the furnace,” says Lolley,

pointing out the obvious advantages of the forced air delivery method.

At the same time, radiant in-floor heating is becoming more popular with homeowners for reasons including its thermal comfort, more even heat distribution, high efficiency and consumer perceptions that it’s cleaner and quieter, she says. Radiant heating is provided either by electrical or hydronic systems — which is basically fluid flowing through a series of closed circuit loops. More precise room-by-room temperature control is possible with an electrical system compared to the “zone control” provided by hydronic heating.

But, unless the house has been designed to be extremely energy efficient, electrical radiant heating is more expensive to operate, says Lolley. She recommends against installing a hybrid system that includes a combination of forced air and radiant heating. “Builders who are doing that really need to revisit their design strategy.”

Efficiencies on heating and cooling equipment continue to improve. Still, the first priority for any builder is “to start with the walls.” By that, Lolley means that HVAC product replacement can’t supersede the need for “good windows, good insulation and good weatherstripping.”

ontario home builder winter 2013 59 www.ohba.ca product focus

An EfficiEnt And EconomicAl furnAcE

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rEthinking thErmostAts

In heralding the launch of its multi-use and multi-adaptable icomfort Wi-Fi thermostat, Lennox suggests it will change the way homeowners think about their thermostats. When connected to a home’s wireless network, it provides a whole new range of services many of us couldn’t have imagined only a few years ago. It can be controlled and operated from anywhere in the world with a smartphone, tablet, laptop or other web-enabled system. A bright easyto-read touchscreen allows easy operation when the owners are at home. The icomfort also displays live weather alerts and a five-day forecast, as well as sending email warnings if the system needs repair or service.

www.lennox.com

t wo furnAcEs in onE

Equipped with an enlarged firebox capable of holding 30-inchlong logs, the Hybrid Multi-Fuel 200 furnace from Napoleon provides homeowners with a clean and relatively inexpensive source of heating. It also offers peace of mind when they’re away for extended times. If the wood supply runs out, a second thermostat controlling the optional oil or electric components automatically switches on. With a side-mounted blower, the furnace also takes up less space in the basement. The HMF can be configured five different ways. It can be used as an “add on” to an existing furnace, wood only, wood/oil, wood/electric or as a combined wood/oil/electric furnace. Also available is the 150 hybrid, which has a slightly smaller firebox.

www.napoleonfireplaces.com

60 ontario home builder winter 2013 www.ohba.ca product focus
ontario home builder winter 2013 61 www.ohba.ca Managed by Canadian Mortgage Capital Corporation LIC # 10284 Michael Lovett, Agent Managing Partner 416-607-4203 michael.lovett@cmcapitalcorp.com www.atriummic.com Atrium provides funds to the real estate development community for: • Acquisition Financing • Land Loans – zoned or not zoned • Construction Loans • Purchasing VTB Mortgages Atrium Mortgage Investment Corporation, TSX Listed (TSX:AI), is a non-bank commercial and residential real estate lender to home builders, low-rise developers, and high-rise developers. Experienced Lender Prompt Turnaround Loan sizes from 500k to $20mm 1st and 2nd mortgages up to 85% LTV Comfort waits for no commute. Innovation never felt so good.TM Introducing the icomfort Wi-Fi,TM a touchscreen thermostat that does things you never knew a thermostat could do, like work from your smartphone. Not only does it allow you to set it while you’re away, but it offers up-to-date weather alerts, regulates comfort levels in all zones of your home and does automatic system checks for efficiency. It even tells you when it’s time to replace the filters. Which means it controls your Lennox® Home Comfort System anytime, from anywhere. To see what else it does, visit lennox.com or call Bob Smith at 416-725-0106. © 2012 Lennox Industries Inc. Lennox dealers include independently owned and operated businesses. Follow us on Google+ facebook.com/lennox YouTube.com/lennox T:7.125” T:4.833” LEN_M_12700E.indd 1 10/15/12 2:38 PM

The RighT Fan FoR a TighT FiT

Just released on the market this past fall, the Broan LP80 and LPN80 LoProfile ventilation fans are specially designed for cramped locations where conventional fans simply won’t fit. They can be installed between 2”x 4” studs and, even when there are plumbing or electrical obstructions behind the drywall, they can still fit without having to move anything. Powerful and quiet, with only 1.1 sones, the Energy Star-qualified devices are ideal for multihousing buildings or complicated renovation projects. The specifications for the two models are the same, although there is a slight difference in the look of their grills. www.broan.ca

Sealed To peRFecTion

Properly sealing newly installed HVAC equipment is a key priority for maintaining energy efficiency in homes and multi-unit housing. It can also be a messy and timeconsuming job. Pres-On, a supplier of adhesive-backed industrial products says it has produced a clean, waste-free alternative to liquid sealants. The PF-1400 is a low-density, closed cell polyethylene foam tape that seals, insulates, cushions and provides sound dampening. Coated on one side with a high-tack rubber adhesive, it will bond to virtually any clean substrate to shape a positive seal. Available in a range of thicknesses, widths and rolls lengths, the tape will function in temperatures ranging from 32° to 60° C (0° to 140° F). www.pres-on.com

Space SaveR

When space is at a premium, the Vitodens 100-watt boiler with CombiPlus Kit from Viessmann may be the ideal solution for small houses, cottages, apartments, condominium units or special renovations. Compact and unobtrusive, this system requires considerably less room than a traditional hot water tank in many lower-load applications. It also saves the homeowner energy costs, as it doesn’t need to heat water if it’s not being used. The shoebox-sized CombiPLUS quickly transfers heat from the boiler water to fresh tap water as needed. It can be mounted underneath or beside the wall-mounted boiler with zero clearance to combustibles, says the manufacturer. The boiler itself is also quite small, while the tubing used to circulate heated water throughout the home takes up less space than the ductwork needed for a forced-air furnace. www.viessmann.ca

62 ontario home builder winter 2013 www.ohba.ca product focus
ontario home builder winter 2013 63 www.ohba.ca 16783 orndale Rd orndale, ON N0M 2P0 Tel: 519-461-1180 Toll free: 1-800-265-7086 Fax: 519-461-0903 www.trscomponents.ca Sales, Installation & Ser vice savaria.com 1.888.423.4865 2 Walker Drive Brampton luxury residential elevators expertise, installation and customer service second to none

Double Duty

With a thermal efficiency of up to 97 percent, Rinnai’s tankless heating system can dramatically lower home heating costs. It consists of an hydronic furnace and a tankless heater that only produces hot water when it’s needed. There are a number of other advantages as well. A single concentric vent takes care of both incoming air and exhaust, while the design and configuration helps reduce installation times. The water heater hangs flat on a wall, while the furnace can be fitted just about anywhere since it needs no outdoor vent. Redmond/Williams distributes the product as well as providing support and training.

www.redmondwilliams.com

a tHermostat for tHe future

In older homes, and even in some newer ones, furnace thermostats are very basic and plain-looking devices used for simply turning the heat up or down. But that profile is changing with the introduction of the ComfortLink II Thermostat from Trane. Honoured with an Innovations Design and Engineering Award at the 2011 International Consumer Electronics Show, it’s designed for busy homeowners. An interactive highdefinition colour touchscreen allows them to control and provide the ideal temperature and humidity levels around the clock. In addition, the thermostat can be programmed to display as much information as users want to see. When not in use, the ComfortLink II defaults to a screensaver which can complement the decor or be used as digital picture frame.

www.trane.com

Hot Water Haven

It’s never pleasant for anyone to run out of hot water, but it can be especially difficult for families with small children and/ or active teenagers. According to Rheem, that won’t happen if their homes are equipped with its CRTGH-95 condensing tankless water heater. Rated at 94 percent energy efficient, it provides continuous hot water for three-bathroom houses. Some of its principal features include a self-diagnostic system and a digital screen which displays the temperature setting and maintenance codes. The unit is backed by a 12-year warranty and homeowners can reach a technical support team via their smartphone or computer seven days a week.

www.rheem.on.ca

64 ontario home builder winter 2013 www.ohba.ca product focus

Leak-Bye The Interior Foundation

Drainage System

Be sure to use the Leak-Bye interior foundation drainage system. Used by award-winning builders, Leak-Bye diverts inside moisture from foundation leaks and condensation to the floor slab drainage system below Leak-Bye, your best defense against water penetration.

Leak-Bye Incorporated

RR#3 Mt. Forest, Ontario N0G 2L0

ATTN: John Plume

Toll Free: 1-800-393 LEAK (5325) Tel: (519) 323-4123 Fax: (519) 323-4793

Beaver Valley Stone offers the largest selection of natural stone and precast products in Ontario, including flagstone, both random and saw cut. We also have many different types of drywall, ledgerock, natural stone steps and sills. Our precast concrete products include patio slabs, sills, steps and curbs. We also offer a wide selection of interlocking paving stones and retaining wall systems, from a variety of manufacturers Accessories available

25 Langstaff Road East, Thornhill, ON L3T 3P7 Phone: 416-222-2424 or 905-886-5787, Fax: 905-886-5795

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With mounting costs, governments are scrambling to find available resources to fund their health care systems. In recent years, medicine has taken a huge leap forward and, along with it, the range of treatments now available to patients; the building industry also needs to step in and consider the design of future homes.

With a shrinking tax base, in part due to smaller numbers of people entering the labour force, it will be even harder to maintain the present Canadian health care system. Two key terms are being mentioned often in an effort to find solutions: technology and home care. A combination of both is likely to transform the home environments — especially for seniors, many of whom are living well into their 80s and 90s.

Operations that necessitated long recovery periods can now be done in a less invasive manner and in a fraction of the time, and patients can return home the very same day and recover in the comfort of their own beds. Information technology

Domestic Medicine

Adapting and keeping up with home health care advances

has contributed to change in our domestic environment as well. The Internet is fast becoming a vital link between the home and health care providers. As a result, for example, the wiring of homes will have to be changed in order to accommodate new technologies, and designing an integrated system from the start can be an attractive feature to future homebuyers.

Another type of health care will be offered to patients returning home following surgery after which they will need close supervision. Technology will enable a nurse or the operating surgeon to monitor the patient’s recovery from afar. The instruments will be loaned and installed in the patient’s home by a hospital technician. Via video link, the recuperating patient will be able to carry on a conversation with a health care professional when needed. Again, having the wiring prepared in advance will be of help at a later stage.

A further example of care will be ongoing routine monitoring. Vital signs will be regularly taken from

patients with chronic illnesses and sent via electronic means to health clinics where they will be recorded and periodically assessed. The patient will self-administer the tests for blood pressure, sugar level and weight, among other signs. When needed, a nurse or a doctor will make a home visit to review the patient’s progress and adjust treatments.

The Japanese company Matsushita has recently introduced a sensor-laden toilet that checks weight, body fat and urine sugar levels. The information is sent to a laboratory that collaborates with the patient’s physician. More similar gadgets can be expected in years to come.

Canada’s health care system is currently stretched to the limit. The need to develop alternative care processes is more urgent than ever. With technological innovation, the home can become an indispensable part of the prevention, ongoing care and treatment chain. These new realities offer opportunity for the industry to develop new ideas and housing types. OHB

66 ontario home builder winter 2013 www.ohba.ca
out side the boX
Dr. Avi Friedman teaches architecture at McGill University. He can be reached at avi.friedman@ mcgill.ca.

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