FOUNDATIONS NEWSLTR March

MARCH 2022

ROCHESTER AREA BUILDERS, INC.

Thank You!

Thank you to all our Sunday Funday volunteers and kitchens for kids builders for helping make this year’s family activities successful!

NETWORKING NIGHT J.F. AHERN

8

SCHOLARSHIP APPLICATION

11

SHOWCASE ADVERTISE IN THE MAGAZINE

13

D C

DEVELOPMENT COUNCIL a division of the Rochester Area Builders, Inc.

C OMMERCIAL C B UILDERS

OUNCIL

a division of Rochester Area Builders, Inc.

2 | MARCH 2022

STAFF

EXECUTIVE DIRECTOR

John Eischen,

John@RochesterAreaBuilders.com STAFF

Shelly Bahlmann,

Shelly@RochesterAreaBuilders.com Golf Outing, Sporting Clays, Home Show, Directory, Newsletter, RAB Update, Member Plus App & RAB Events App

Rebekah Fierst,

Rebekah@RochesterAreaBuilders.com Ambassadors, Awards, Builders, Bags & Brews, Commercial Builders Council, Community Relations, Education, Membership, Fashion Show, Program, Remodelers Council, Executive & Remodelers Tour, 40 Below

Elizabeth Sullivan-Burton,

Elizabeth@RochesterAreaBuilders.com Builders Exchange Trustees and

Showcase Committee, Website GOVERNMENT & PUBLIC AFFAIRS CONSULTANT Rick Dold, Rick@GodwinDold.com

BOARD OF DIRECTORS PRESIDENT

Becky Holmen, Haley Lighting

VICE PRESIDENT

Jason Scrimshaw, Kimley-Horn & Associates, Inc.

SECRETARY

Jennifer Mitchell, Edina Realty

TREASURER

Jessica Markley, Elias Construction, LLC

PAST PRESIDENT

Luke Stier, Stier Construction, Inc.

DIRECTORS

JUNE 2nd

WILLOW CREEK GOLF COURSE

Adam Giannini, Meyer Borgman Johnson Adam Kramer, Kramer Contracting Jarett Jones, Merchants Bank Aaron Thompson, The Design Connection Austin Ryan, Ryan Windows & Siding Charlie Sweeney, Kraus-Anderson Construction Melissa Barbour, TLS Companies, LLC Megan Gallagher, Solar Connection Jennifer Lawver, ERH Developing, Inc.

BUILDERS EXCHANGE COUNCIL CHAIR

Katie Reinhart, Kraus-Anderson Construction

COMMERCIAL BUILDERS COUNCIL CHAIR

Robbie Danko, The Boldt Company

DEVELOPMENT COUNCIL CHAIR

Hal Henderson, HGA Architects & Engineers

REMODELERS COUNCIL CHAIR

Krista Weisz, Stier Construction, Inc.

GOLDEN TEE SPONSOR

40 BELOW CHAIR

Adam Giannini, Meyer Borgman Johnson, Inc.

NATIONAL LIFE DIRECTORS

Steve Buss, Cornerstone Builders & Real Estate, Inc. (Rep)

NATIONAL DIRECTORS

Dana Hlebichuk, Widseth Levi Kaiser, Benike Construction Todd Severson, TLS Companies, LLC

STATE DIRECTORS

Mike Allen, Mike Allen Homes, LLC Jean DeWitz, DeWitz Home Builders, Inc. Kathy Einck, Maplewood Homes.LLC (Rep) John McGuine, JM Consulting Dan Severson, Dan Severson Builders, Inc., Kenneth Bush, Bush Companies

MISSION STATEMENT The Rochester Area Builders, Inc, chartered in 1953, is a professional organization of commercial & residential builders, remodelers, developers and associated businesses dedicated to advancing the building industry in Southeast Minnesota.

We are the trusted voice of the industry, providing leadership, education, networking, and information resources to our members, community and government officials.

3 | FOUNDATIONS NEWSLTR

Scholarships Available!

8 11 PERMIT REPORTS

10 SAVE THE DATE...................................................2

12

20

SPRING SHOWCASE......................................12-13

Golf Outing & Fashion Show

Ad Rate Sheet & Event information

RAB CALENDAR...................................................4

NAHB EYE ON HOUSING.....................................19

March 2022

LETTER FROM RAB PRESIDENT............................5

Becky Holmen, Haley Lighting, 2022 RAB President

MEMBER REPORT................................................6

Building Materials Remain Top Challenge for Builders

BUILDING PERMITS...........................................20

Rochester, Byron & Pine Island

OLMSTED BUILDING PERMITS ...........................21

Welcome New Members

January 2022

2022 CALENDAR..................................................7

SEMR HISTORICAL OVERVIEW............................21

NETWORKING NIGHT...........................................8

NAHB EYE ON HOUSING.....................................24

RAB Events

February 2022 - JF.Ahern

NAHB EYE ON HOUSING.......................................9

Soaring Construction Costs Drop

HOME SHOW.....................................................10

Thank you

COMMERCIAL BUILDERS COUNCIL ....................10

MN Dept. of Employment and Economic Development

SCHOLARSHIPS.................................................11

Scholarship Form

January 2022

Year-over-Year Gains for Construction Job Openings

DID YOU RECIEVE YOURS? Plan your year with Rochester Area Builders by submitting your marketing interests in advance.

Click HERE for information or contact Shelly or Rebekah with quesitons.

4 | MARCH 2022

March 2022 Sunday

Monday

Tuesday

Wednesday 1

Thursday 2

8:30 AM Remodelers Council Exec.

7:30 AM CBC Exec.

Meeting

11:30 AM Executive Committee

12:00 PM Showcase Committee

Friday 3

7 12:00 PM Government Affairs Committee

13

5

National Employee Appreciation Day 8

3:00 PM Board Meeting

9 7:30 AM Green Building Committee

15

10

11

12

17

18

19

24

25

26

Showcase Magazine Advertising Deadline

12:00 PM Golf Outing Committee

14

4

11:30 AM Program Committee

3:30 PM Builders Exchange Board of Trustees 6

Saturday

16 12:00 PM Ambassadors Committee

7:30 AM Membership Committee

4:30 PM 40 Below Exec Committee

20

21 11:30 AM Fashion Show Committee

27

22 5:00 PM General Membership Meeting

28 11:30 AM Home Show Committee

23 3:00 PM Development Services Advisory Committee

29

11:30 AM Community Relations Committee

30

31

4:30 PM Networking Night

MEETINGS ARE NOW BEING HELD IN PERSON UNLESS NOTIFIED DIFFERENTLY BY JOHN

5 | FOUNDATIONS NEWSLTR

ASBESTOS FROM THE PRESIDENT STATUTE CHANGE The Continuing Education - Nuts & Bolts of CE including Energy & Business Credit, had a successful attendance and the lunch served by Haley’s was like a trip to Italy. Thank you to the sponsors that helped make this happen.

BECKY HOLMEN President

Rochester Area Builders, Inc I hope you have been keeping busy & staying safe!

I know we have been here at Haley Lighting and Haley Comfort Systems.

Even with the spike in cases - we still made it through and we are coming out on top. There is so much potential & opportunity for growth and development; I can truly see a bright future for us all. I have no doubt that this year is going to be great!

I would like to thank everyone and all the businesses that participated and attended the 2022 RAB Home Show.

From what I was told, attendance was up from last year (April 2021) and the comments have been mostly positive with some constructive criticism to go along with them. I was not able to attend because I was on a fabulous vacation in Cozumel. Friday Night “Date Night” was a hit again this year and was followed by the Beer and Pizza party, which returned too. The big change this year was of course that all the booth spaces were up in the ballroom and the lobby area outside the ballroom was used for activities like the Cooking Demo, Bloody Mary Bar, and the kid’s birdfeeder. I was informed that the change was well received, and people were thankful they didn’t have multiple areas to go to. With the world getting hopefully back to a normal sense, I am hopeful of an even bigger and better show next year!

Our next in person Networking Night will be on Tuesday, February 22nd, hosted by JF Ahern Company, at their new location here in Rochester, 4:30pm – 6:30pm. Please mark your calendar for this in person networking event and enjoy some refreshments, hors d’oeuvres, & door prizes (so don’t leave early)!

Networking is how I gained the amazing friends I have today - come join us to establish your own relationships within RAB and stay connected!

Spring is right around the corner and it is time for our young people to fill out those scholarship applications for their future in the trades. The scholarships are available for both high school and college students, for post-secondary education. The support of RAB, the Commercial Builders Council, the Builders Exchange and the Youth Sporting Clay Shoot are what help make this possible. The application can be downloaded from the RAB website and applications must be postmarked

by May 2nd.

The 1st week of February was also the IBS down in Florida. I know of several members that were able to attend and I have seen posts of some amazing new products that will be released soon. Send me pictures of what new products or technology you are excited about to bholmen@ haleycomfort.com

Due to recent changes in state law and rules, Minnesota renovation contractors doing work on single family homes or buildings with no more than four dwelling units will now need to know if they are conducting asbestos-related work.

The Minnesota Department of Health recently amended the Minnesota Asbestos Abatement Act (Minnesota Statutes 326.70 to 326.81) to include specific changes to the definitions section (MS 326.71) and fees (MS 326.75). These changes became effective July 1, 2021. In the definition of asbestos-related work (subdivision 4), the previously exempt materials of floor tiles and sheeting, roofing materials, siding, and all ceilings with asbestos-containing material are now regulated in single family residences and buildings with no more than four dwelling units, if the materials are friable or are made friable during renovation activities. The change was made in order to better protect workers and dwelling occupants from the harmful health effects of asbestos.

We recognize this change poses a challenge as contractors working on such projects will need to comply with both the Minnesota Statute and Rules (Minnesota Rules, parts 4620.3000 – 4620.3724) as well as the Federal Renovation Repair and Paint Regulation (40 CFR 745.80 – 745.92 ). If you have any questions or need compliance assistance, please contact the Minnesota Department of Health Asbestos / Lead Compliance unit at: 651-201-4620 or Health.AsbestosLead@state.mn.us Additional information can be found at: Asbestos - Professionals - EH: Minnesota Department of Health (state. mn.us)

Becky Holmem Haley Lighting 2022 RAB President

6 | MARCH 2022

ROCHESTER AREA BUILDERS, INC.

MEMBERSHIP REPORT January 2022 Membership Total: Retention rate:

399 94%

WELCOME

FEBRUARY 2022 MEMBERS

As of January 31, 2022 ONE TO FOUR YEARS Paint Doctor, LLC............................................................. 2021 Briggs and Rabehl Builders, LLC.................................. 2020 Paveman Designs LLC.................................................... 2020 Paxton Electric, LLC........................................................ 2020 Rahman Heating, A/C & Fireplace, LLC....................... 2020 NAWIC Southeast Minnesota Chapter 346................... 2019 Grand Meadow EDA......................................................... 2018 Greg Wellik Construction............................................... 2018 KIMT - CBS 3.................................................................... 2018 Olmsted Medical Center................................................. 2018 Stonybrook of Rochester, Inc......................................... 2018

FIVE TO NINE YEARS Sunbelt Rentals................................................................................2017 Wobig Construction, LLC...............................................................2017 Blooming Prairie EDA.....................................................................2016 Dodge County EDA..........................................................................2016 James Hardie Building Products................................................2016 M.P. Kaye Builders, Inc...................................................................2016

JAMIE JACOBS

General Contractor (507) 387-6836

apxconstructiongroup.com

PERRY PENSKE

Structural Insulated Panels (800) 977-2635 extremepanel.com

Spring Grove EDA............................................................................2016 TLS Companies, LLC.......................................................................2016 West Concord EDA..........................................................................2016 Dunham Associates, Inc.................................................................2013

SAVE

TEN TO 19 YEARS City of Byron......................................................................................2012 Lodermeier’s, Inc.............................................................................2011

THE DATE 8.13.22

Chladek Construction, LLC............................................................2010 Bobcat of Rochester (Sanco Equipment)..................................2008 Cachiaras Building & Remodeling..............................................2008 Cambria..............................................................................................2008 Vision Homes....................................................................................2008 XRG Concepts, LLC..........................................................................2008 DiNicola & Pestka Appraisals.......................................................2007 Key Builders, Inc..............................................................................2006

20 YEARS & MORE Olmsted County Planning Dept, Enviro Safety Div..... 1997 Olmsted County Public Health Services...................... 1997 City of Rochester Public Works Environmental Services......................... 1994 Rochester Building Safety Department........................ 1994 Custom Retaining Walls & Landscaping, Inc............... 1988 Tonna Mechanical, Inc..................................................... 1988 Edel Construction, LLC.................................................... 1987 Rochester Title................................................................. 1987 Ford Metro, Inc................................................................. 1985 Curtin Drywall, Inc........................................................... 1983 Custom Alarm.................................................................. 1981 DeWitz Home Builders, Inc............................................. 1965

MATTHEW FISHER

HOME INSPECTIONS (507) 923-7386 P86HomeInspectors.com

LTS BREWERY Presented by:

Benefiting:

7 | FOUNDATIONS NEWSLTR

Rochester Area Builders 2022 Calendar of Events

FEBRUARY 22 24

Networking Night @ J.F. Ahern Company Continuing Education Classes (ONLINE)

MARCH 29 Networking Night @ ISG APRIL

MAY

JUNE

JULY

TBD 23-24 26 30

BAM Building Industry Day at the Capitol Spring Showcase of Homes Networking Night @ Premier Bank Spring Showcase of Homes

1 30

Spring Showcase of Homes Office Closed – Memorial Day

2 28

RAB Golf Outing @ Willow Creek Golf Course Networking Night @ Knutson Construction

4 TBD 26

Office Closed for Independence Day NAHB Mid-Year Board Meeting – TBD Member Appreciation Night @ Mayowood Stone Barn

AUGUST 13 30

Builders, Bags & Brews @ LTS Brewing Company Networking Night @ Valor Mechanical & Tulip Tree

SEPTEMBER 5 Office Closed – Labor Day 15 Sporting Clay Shoot 17 Sporting Clay Youth Shoot 17-18 Remodelers Tour 17-18, 24-25 Fall Showcase of Homes 27 General Membership Meeting @ DoubleTree OCTOBER 13 25

Studs, Struts & Stilettos @ Mayo Civic Center Networking Night @ Warners’ Stellian

NOVEMBER TBD 24-25

Past Presidents Dinner Office Closed – Thanksgiving Holiday

DECEMBER 2 23-26

Holiday Party @ The Hilton Office Closed – Christmas Holiday

FUTURE DATES International Builders Show RAB Home Show

January 31 – February 2, 2023 @ Las Vegas, NV February 3-5, 2023 @ Mayo Civic Center

8 | MARCH 2022

To Rochester Area Builders Networking Night!

Join Us At Our New Location for hors d‘oeuvres and refreshments.

Fantastic door prizes will be given away.

Food & Beverages provided by Charlie’s Eatery & Pub

Where: 3555 9 th Street NW, Suite 300 Rochester, MN

When: Tuesday, February 22 nd 4:30 p.m. - 6:30 p.m.

Mechanical & Fire Protection Contractor HVAC | Plumbing | Controls | Sprinkler Extinguisher | Fabrication

Service & Construction

800.532.4376 | jfahern.com

We look forward to seeing you there!

REGISTER HERE!

9 | FOUNDATIONS NEWSLTR

Soaring Construction Costs Drop Housing Affordability to Lowest Level in a Decade

BY ROSE QUINT on FEBRUARY 8, 2022 Supply-chain bottlenecks that put upward pressure on home prices along with rising interest rates contributed to housing affordability falling to a 10-year low. The likelihood of higher interest rates in the months ahead (as the Federal Reserve moves to tighten interest rates) along with ongoing production challenges threaten to drive housing affordability even lower in 2022.

According to the National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index (HOI) released today, just 54.2% of new and existing homes sold between the beginning of October and end of December were affordable to families earning the U.S. median income of $79,900. This is down from the 56.6% of homes sold in the third quarter of 2021 and is the lowest affordability level recorded since the beginning of the revised series in the first quarter of 2012.

this year.

The HOI shows that the national median home price increased to a record $360,000 in the fourth quarter, up $5,000 from the third quarter and a whopping $40,000 from the first quarter.

Meanwhile, average mortgage rates increased by 21 basis points in the fourth quarter to 3.16% from 2.95% in the third quarter. Currently, mortgage rates are running above 3.5%, and this higher trend will further affect affordability later

Lansing-East Lansing, Mich. was the nation’s most affordable major housing market, defined as a metro with a population of at least 500,000. There, 90.6% of all new and existing homes sold in the fourth quarter were affordable to families earning the area’s median income of $79,100.

Meanwhile, Cumberland, Md.-W.Va. was rated the nation’s most affordable small market, with 94% of homes sold in the fourth quarter being affordable to families earning the median income of $60,800.

For the fifth straight quarter, Los Angeles-Long Beach-Glendale, Calif. remained the nation’s least affordable major housing market. There, just 7.5% of the homes sold during the fourth quarter were affordable to families earning the area’s median income of $80,000.

The top five least affordable small housing markets were also in the Golden State. At the very bottom of the affordability chart was Salinas, Calif., where 9.7% of all new and existing homes sold in the fourth quarter were affordable to families earning the area’s median income of $80,900.

Visit nahb.org/hoi for tables, historic data and details.

10 | MARCH 2022

43 Annual rd

Thank you to the sponsors and exhibitors who have helped us provide Southern Minnesota with a Home Show for 43 uninterrupted years!

Signature Event Sponsor

L A C I N A

SIDING

& WINDOWS, INC. Because it’s your home.

The Minnesota Department of Employment and Economic Development is Minnesota’s principal economic development agency. Its mission includes supporting the economic success of individuals, businesses, and communities by improving growth opportunities.

Representatives from the SE MN area of DEED, including Business Development Manager Natalie Siderski, Workforce Strategy Consultant Jessica O’Brien, and Labor Market Analyst Mark Schultz were our expert guests for this program.

They joined us to share their roles with MN DEED and their work in our region to facilitate business and job growth.

Many of the programs they lead work to establish business ownership, business relocation, and business expansion in southeast Minnesota, which can often lead to those businesses needing construction and construction-related services.

Through marketing campaigns, competitive grants, and workforce development initiatives, their efforts serve the local contractor community in various ways. They also provided data around the southeast workforce with specific attention to construction trades.

11 | FOUNDATIONS NEWSLTR

SCHOLARSHIP

OPPORTUNITY

GRADUATING HIGH SCHOOL STUDENTS POST-SECONDARY SCHOLARSHIPS

Rochester Area Builders, Inc. is proud to announce their 2022 scholarship program.

Either $1000 or $500 non-renewable scholarships are available for graduating high school seniors and college freshmen. Scholarships are made available through the Commercial Builders Council, the Builders Exchange of Rochester, and the Youth Sporting Clay Shoot.

Scholarships are for attendance in a post-secondary CRITERIA: program in a construction-related 1. Applicant must be a resident of Dodge, Fillmore, Goodhue, field including technical school, Houston, Mower, Olmsted, Steele, Wabasha, Winona trade school, apprenticeship, or counties; be recommended by a RAB or BER member; or college. Scholarship recipients will participated in the RAB Youth Sporting Clay Shoot. be announced in June 2022. To 2. Applicant must be accepted by a post-secondary program in a construction related field including technical school, trade be eligible for any scholarships, school, apprenticeship, or college. applications must be postmarked 3. Applicant must have a 2.5 or better G.P.A. – High School

by May 2, 2022.

Transcript Required Scan QR Code or go to https://qrco. de/ScholarshipApp for Scholarship application.

Rochester Area Builders 108 Elton Hills LN NW Rochester, MN 55901 507-282-7698 Rab@rochesterareabuilders.com

4.

Applicant must demonstrate financial need.

5.

Scholarship will be paid directly to the school.

12 | MARCH 2022

Registration Forms can be found HERE Discount Deadline February 24th - $100 off Final Deadline March 24th Contact Elizabeth with questions

April 23 - 24 & April 30 - May 1, 2022

Overall Event Sponsor

13 | FOUNDATIONS NEWSLTR

2022 SPRING SHOWCASE OF HOMES MAGAZINE ADVERTISING INVESTMENT Sixth Page Quarter Page Half Page Half Page Back Page Full Page Inside Front Page

2.333 x 4.875 ......................................... $500 3.625 x 4.875 ......................................... $700 (v) 3.625 x10 .......................................... $900 (h) 7.5 x 4.875 ........................................ $900 8.5x11 (bleed size 8.75 x 11.25) ............. $1000 8.5x11 (bleed size 8.75 x 11.25) ............. $1200 8.5x11 (bleed size 8.75 x 11.25) ............. $1500

The 2022 Spring Showcase of Homes features new homes, townhomes, and subdivision. The Rochester Area Builders-produced magazine is the official program that includes details, descriptions, and photos for each home/ subdivisions. Participation is exclusive to RAB members, and members of the community are invited to enjoy the event.

Spring Showcase of

printed copies will be available at showcase entries during showcase hours. RAB will promote the digital magazine across multiple digital platforms with over 500,000 impressions. RAB has contracted with Tulip Tree Studios for ad sales and design services. For more information on how to advertise in our digital magazine, contact Crystal at 507-218-8401 or at Crystal@tuliptree-studios.com.

Spring Showcase Weekends

April 23-24 & April 30-May 1, 2022

The digital magazine produces over 10,000 impressions, and the RAB Events app receives over 33,000 views during the event weekends. Limited

Advertising Deadline: Thursday, March 10, 2022 Publication Date: Thursday, April 21, 2022

14 | MARCH 2022

15 | FOUNDATIONS NEWSLTR

Join Us! Coordinated by your Southeast MN Chapter 346

Monday

Open House Breakfast Networking

7:00 - 8:30 am

Mayor Kim Norton to read Proclamation at 7am.

Tuesday

United Way Drive: Schools Food Drive

4:00 - 5:30 pm

Wednesday 11:30 am - 1:00 pm

Thursday 5:00 - 9:00 pm

Friday

11:30 am- 1:00 pm

Haley Comfort Systems Training Room

Kraus-Anderson

City of Rochester Bloomberg Mayors Challenge Speaker: Chao Mwatela, DE&I Director

Wood Lake Meeting Center Lunch provided $15 | Email info@nawicsemn.org to register

Iron Side Axe Throwing |

27 9th Street SE, Rochester

Free event for NAWIC Members

$35 for Non-Members | Email info@nawicsemn.org for more info

Equity Challenge Virtual Recap Email info@nawicsemn.org for virtual meeting link

Are you a female in the construction industry?

Looking to join a fun, supportive group?

NAWIC Chapter 346 based out of Rochester is now a 30+ member strong group. Our mission is to support and encourage the growth of women in the construction industry through networking, scholarships, and educational opportunities.

Visit nawicsemn.org or email info@nawicsemn.org for more information.

Follow Us for more information on our chapter events! @NAWICSEMN

16 | MARCH 2022

B:9.25" T:9" S:8"

GET UP TO $5,400 TO GET THE JOB DONE Shown with equipment from independent suppliers which is not covered by the GM New Vehicle Limited Warranty.

GM is not responsible for the safety or quality of independent supplier alterations.

USING THE PRIVATE OFFERS1 FOR NAHB MEMBERS IS EASY:

1. Get your NAHB proof of membership.

2. Visit your local Chevrolet, Buick or GMC dealer and mention this Private Offer.

3. Select an eligible vehicle(s) to purchase or lease and present your NAHB proof of membership.

For even more value, combine this offer with the National Fleet Purchase Program and Business Choice Offers. For full details on the Private Offer, NAHB members should visit nahb.org/gm.

Example offer for NAHB members who are business owners purchasing a 2021 Chevrolet Silverado 2500 HD Crew Cab 1LT 4WD. Up to

Up to

Up to

$1,000 + $3,400 + $1,000 = $5,400 Private Offer 1

National Fleet Purchase Program (FVX)2

Eligible Accessory Cash Allowance3, 4

In Potential Value

1 Private offer amount varies by model; up to $500 offer for retail delivery and up to $1,000 offer for fleet deliveries. Valid toward the purchase or lease of eligible new 2020, 2021 and 2022 model year vehicles. Customer must take delivery by 1/3/2022. Not compatible with some other offers. Not valid on prior purchases. Excludes all Cadillac vehicles; 2020 Buick Cascada, LaCrosse, Regal and Verano; Chevrolet Colorado 2SA, Sonic, Trax, Volt and GMC Canyon 2SA; 2020-2021 Encore 1SV; Chevrolet Blazer, Camaro, Corvette, Equinox 1SM, Malibu 1VL, Traverse 1L0; GMC Acadia 1SV and Terrain 2SA. Additional GM models may be excluded at GM’s sole discretion. See dealer for details. 2Offer available to qualified fleet customers through 1/3/2022. Not compatible with some other offers. Take delivery 1/3/2022. See dealer for details. 3To qualify, vehicle must be used in the day-to-day operations of your business and not solely for personal/ non-business-related transportation purposes. Must provide proof of business ownership. For complete program requirements, including information regarding offers, vehicles, equipment, options, warranties and ordering, consult your dealer or visit gmbusinesschoice.com. 4Eligible purchases must be equal to or greater than the amount of the cash allowance. Accessory Cash Allowance requires purchase of the eligible accessories from your dealer.

©2021 General Motors, LLC. All rights reserved. The marks appearing in this ad are the trademarks or service marks of GM, its subsidiaries, affiliates or licensors.

360 West Maple Road • Birmingham • MI • 48009 • 248-203-8000

17 | FOUNDATIONS NEWSLTR

18 | MARCH 2022

BEFORE DIGGING INTO YOUR CONSTRUCTION PROJECT, START WITH ONB BANK FINANCING!

CRYSTAL HUGHLEY

ASSISTANT VICE PRESIDENT Personal and Real Estate Lending

Rochester Location 975 34th Ave NW (507) 424-1571

NMLS ID#1389898

crystal.hughley@bankononb.com

bankonONB.com

19 | FOUNDATIONS NEWSLTR

Building Materials Remain Top Challenge for Builders

BY ASHOK CHALUVADI ON FEBRUARY 7, 2022 Much like last year, the price and availability of building materials topped the list of problems builders face.

According to special questions on the December 2021 survey for the NAHB/Wells Fargo Housing Market Index, building material prices were a significant issue for 96% of builders in 2021, and 91% of the builders expect it to continue being a problem in 2022. The second most widespread problem in 2021 was availability/time it takes to obtain building materials cited by 91% of builders. In 2022, the share of builders expecting availability/time it takes to obtain building materials is expected to be 90%.

The high incidence of builders reporting building material problems is not surprising given recent increases in material prices.

In 2011, building materials prices was reported as a significant problem by 33% of builders, followed by 46% in 2012, 68% in 2013, 58% in 2014, 42% in 2015, 48% in 2016 and 77% in 2017, 87% in 2018, and 66% in 2019 before peaking at 96% in both 2020 and 2021.

Meanwhile the cost and availability of labor was reported as a significant problem by only 13% of builders in 2011. The share increased to 30% in 2012, 53% in 2013, 61% in 2014, 71% in 2015, 78% in 2016, 82% in both 2017 and 2018, 87% in 2019 and 65% in 2020. While 82% said it was problem in 2021, 85% expect it to continue being a problem in 2022. Again, this result is not surprising given the large number of unfilled job openings in the construction industry.

Compared to 2021 builders expect some of the problems to become worse in 2022. Rising inflation in US economy was significant problem for builders in 2021 and 2022. While the share was 63% in 2021, it is expected to increase significantly to 90% in 2022. Federal environmental regulations and policies was a significant problem for 37% of builders in 2021, compared to 52% who expected it to be an issue in 2022. Gridlock/uncertainty in Washington making buyers cautious was a significant problem for 32% of builders in 2021, but 50% expect it to be a problem in 2022. Concern about employment/economic situation was a problem for 24% of builders in 2021, but 46% expect it to be a problem in 2022. While Taxes on home builders was a problem for 23% of builders in 2021, it will be significant problem in 2022 for 43% of builders. High interest rates was a problem for only 2% of builders in 2021, but 31% of builders expect it to be a significant problem in 2022. Attempts to limit mortgage interest deduction/other was a problem for 12% of builders in 2021, but 30% expect it to be a problem in 2022.

For additional details, including a complete history for each reported and expected problem listed in the survey, please consult the full survey report.

20 | MARCH 2022

ROCHESTER BUILDING PERMITS NEW RESIDENTIAL

2022

Single Family Dwelling

5

VALUATION 2021 3,153,000

17

VALUATION

JANUARY 2022

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

5,923,097

January

19

11

20

25

15

19

6

17

23

February

15

14

19

15

20

16

5

13

8

Townhome Dwelling

4

1,067,500

6

1,635,272

Two-Family Houses

0

0

0

0

March

29

28

30

31

44

25

27

32

35

Manufactured Home

0

0

0

0

April

39

25

22

33

45

40

23

19

19

Multi-Family Bldgs (Units)

0

0

0

0

May

27

35

19

56

43

28

27

19

26

June

33

47

51

41

52

38

31

21

30

July

39

38

29

44

45

36

26

26

25

August

21

60

33

47

30

31

24

17

24

September

22

23

27

52

35

39

12

30

20

October

34

35

49

25

36

29

27

28

16

November

26

26

23

12

41

21

47

23

19

December

22

27

42

37

33

25

34

21

8

TOTAL

326

369

369

418

429

347

289

266

253

EXISTING RESIDENTIAL Deck Addition

2

18,500

2

26,500

Room Addition

0

0

1

200,000

Porch Additions

0

0

0

0

Other Additions

1

33,398

2

33,000

Basement Finish

20

374,624

25

593,026

Alterations

54

647,530

43

876,312

Multi-Family Addition

0

0

0

0

Multi-Family Alterations

3

232,100

2

1,150

9

*Total may differ as permits may have been voided.

NEW COMMERCIAL Assembly (Church)

0

0

0

0

Assembly (General)

0

0

2

662,328

Assembly (Restaurant/Bar)

0

0

0

0

Business

0

0

0

0

Education

0

0

1

15,224,541

Factory/Industrial

0

0

0

0

Institution

1

725,820

0

0

Mercantile

1

2,500,000

0

0

Miscellaneous

0

0

0

Residential (Apartment)

0

0

Residential (Care/Assisted Living)

0

Residential (Care/Hotel/Motel)

0

Storage (General)

0

YEAR TO DATE STATISTICS 2022 VALUATION

NO.

BUILDING PERMITS ISSUED TO DATE

2021 VALUATION

NO.

123

16,365,002

151

33,695,353

Single Family Dwelling

5

3,153,000

17

5,923,097

Multi-Family Buildings Total Units: 0

0

0

0

0

0

TRADE PERMITS ISSUED TO DATE

724

5,783,407

891

8,108,049

0

0

Electrical

298

2,720,194

326

4,698,069

0

0

0

Electrical (Temp. Service)

0

0

0

Mechanical (HVAC)

0

0

0

5

3,800

9

3,290

196

2,340,082

270

1,865,293

Mechanical (Gas Piping)

22

15,288

51

32,410

24

86,800

34

176,870

13

61,300

19

508,000

166

545,943

182

824,207

847

22,148,409

1042

41,803,402

Storage (Parking Garage)

0

0

0

0

Mechanical (Fireplace)

Storage (Warehouse)

0

0

0

0

Mechanical (Hydronic)

Utility (General)

0

0

0

0

Plumbing

Utility (Private Garage)

0

0

0

0

1

890,000

0

0

23

3,740,324

2

1,150

Structural Shell

0

0

0

0

“White Box”

0

0

0

0

Interior Demolition Only

0

0

0

0

Other Phased Permits

0

0

0

0

TOTAL PERMITS YTD

EXISTING COMMERCIAL Addition Alterations

OTHER CONSTRUCTION Business Signs

1

42,500

9

77,927

Advertising Signs

0

0

0

0

Footings & Foundations

0

0

0

0

Demolition

0

0

0

0

Information and downloads available at Rochester Building Safety Department’s website: https://www.rochestermn.gov/government/departments/building-safety/reports-building-permits/building-permits-2021

JANUARY 2022

PINE ISLAND

BUILDING PERMITS

NEW RESIDENTIAL

NUMBER

VALUATION

Single Family Detached

1

285,000

Single Family Attached

0

0

Basement Finish

0

0

Deck Addition

0

0

Existing Residential

21 | FOUNDATIONS NEWSLTR

OLMSTED COUNTY PERMITS YTD 2022

VALUATION

2021

VALUATION

2022

NEW RESIDENTIAL

2021

VALUATION

Addition

0

0

0

0

0

Alterations

0

0

0

0

0

Re-roofing

0

0

0

0

Pool, Retaining Wall, etc.

0

0

1

8,000

Manufactured Homes

0

0

0

0

22

104,364

10

64,500

9

33,425

7

29,802

50

1,312,137

25

462,467

3

812,566

1

155,865

Single Family-Attached

0

0

0 0

0

0

Deck

1

3,341

0

0

Addition

0

0

1

148,900

14

279,889

5

55,400

0

0

0

0

RESIDENTIAL

OTHER STRUCTURES

Alterations Garage Addition

NEW COMMERCIAL/INDUSTRIAL Recreational

0

0

0

Church/Religious

0

0

0

0

Industrial/Warehouse

0

0

0

0

Service/Repair Station

0

0

0

0

Store/Restaurant

1

78,552

0

0

Nonresidential Building

0

0

0

0

2021

VALUATION $230,661 PERMITS 16

Mechanical

TOTAL PERMITS

BYRON NOW INCLUDED IN OLMSTED COUNTY PERMITS

OLMSTED COUNTY PERMITS JANUARY

2022

VALUATION $0 PERMITS 0

BYRON

MISCELLANEOUS PERMITS Plumbing

0

VALUATION $2,444,240 PERMITS 10

VALUATION

COMMERCIAL/INDUSTRIAL

Single Family-Detached Garage

JANUARY 2022

VALUATION $0 PERMITS 0

VALUATION $43,072 PERMITS 6

EYOTA

VALUATION $319,760 PERMITS 13

MARION

VALUATION $27,500 PERMITS 5

VALUATION $0 PERMITS 0

VALUATION $88,402 PERMITS 8

VALUATION $0 PERMITS 0

QUINCY

ORONOCO TWP

VALUATION VALUATION $673,315 $391,895 PERMITS PERMITS 13 14

STEWARTVILLE

Activity Overview Key metrics by report month and for year-to-date (YTD) starting from the first of the year.

Key Metrics

Historical Sparkbars

New Listings 1-2019

1-2020

1-2021

1-2022

1-2019

1-2020

1-2021

1-2022

1-2019

1-2020

1-2021

1-2022

1-2019

1-2020

1-2021

1-2022

1-2019

1-2020

1-2021

1-2022

1-2019

1-2020

1-2021

1-2022

1-2019

1-2020

1-2021

1-2022

1-2019

1-2020

1-2021

1-2022

1-2019

1-2020

1-2021

1-2022

1-2019

1-2020

1-2021

1-2022

Pending Sales

Closed Sales

Days on Market

Median Sales Price

Avg. Sales Price

Pct. of Orig. Price Received

Affordability Index

Homes for Sale

Months Supply

1-2021

1-2022

Percent Change

YTD 2021 YTD 2022

341

329

- 3.5%

341

329

- 3.5%

380

380

0.0%

380

380

0.0%

357

343

- 3.9%

357

343

- 3.9%

57

44

- 22.8%

57

44

- 22.8%

$217,450

$243,000

+ 11.7%

$217,450

$243,000

+ 11.7%

$249,248

$276,239

+ 10.8%

$249,248

$276,239

+ 10.8%

96.9%

97.5%

+ 0.6%

96.9%

97.5%

+ 0.6%

201

165

- 17.9%

201

165

- 17.9%

516

459

- 11.0%

--

--

--

0.9

0.8

- 11.1%

--

--

--

Percent Change

Current as of February 4, 2022. All data from Southeast Minnesota REALTORS® and NorthstarMLS®. Provided by the Minnesota Association of REALTORS®. Report © 2022 ShowingTime. | 2

22 | MARCH 2022

FOUNDATIONS NEWSLETTER ADVERTISING Rochester Area Builders Newsletter is an unbeatable opportunity to advertise to members and individuals associated with RAB. It is a source of valuable association and industry information, and is published and emailed monthly. Foundations is sent to over 1600 connected industry professionals.

Ad sizes are listed under Display Ad Dimensions, and prices are located above.

Ads may be changed from month to month.

Our prices are for full color ads. We will gladly work with you to design your ad.

Please send digital files for all ad copy, logos, and artwork. We use PC format.

We accept Illustrator and Photoshop files.

Convert all fonts to outlines. We also accept the following high resolution file types: .tif, .eps and .pdf (with all graphics and fonts embedded). If you have any other formats please contact us.

RETURN TO: ROCHESTER AREA BUILDERS

Shelly Bahlmann Shelly@RochesterAreaBuilders.com 108 Elton Hills Ln NW Rochester, MN 55901 507-282-7698

Newsletter Advertising Rates

Per Issue

12 Issues

New Member 12 Issues

Full color 1/2 Horizontal

c $70.00

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Newsletter Display Ad Dimensions 1/2 Horizontal Full

8-1/2 x 5-1/2 8-1/2 x 11

Send artwork to Shelly@RochesterAreaBuilders.com by the 15th of the month to be included in the upcoming Foundation Newsletter.

23 | FOUNDATIONS NEWSLTR

Goodin Company carries a full complement of products for the markets we serve.

Are you in need of products for plumbing, HVAC, industrial, or pump and well applications?

We are your Source of Supply, serving the industry since 1937.

PLUMBING

HVAC

Goodin Company maintains a complete inventory in a wide range of major brand plumbing products for both residential and commercial plumbing contractors.

To support our plumbing inventory, we maintain showrooms in many of our branch locations.

Our HVAC division encompasses both hydronic and warm air heating as well as central and split system air conditioning equipment for residential and commercial systems. We also provide technical support in design and layout.

INDUSTRIAL

PUMP AND WELL

We supply a wide range of industrial pipe, valves, and fittings. To compliment our pipe inventory, we offer a complete in-house pipe fabrication service in which we are able to cut, thread and groove pipe to our customers’ specifications.

Goodin Company’s pump and well division maintains a complete inventory of pumps and repair parts for the residential water well drilling contractor, as well as the large commercial or municipal driller.

MINNEAPOLIS (612) 588-7811 ST. PAUL (651) 489-8831 DULUTH (218) 727-6670 DETROIT LAKES (218) 847-9211 ST. CLOUD (320) 259-6086

BRAINERD (218) 828-4242 ROCHESTER (507) 529-1284 FARGO (701) 298-3210 SIOUX FALLS (605) 332-3444 OMAHA (402) 331-6813 www.goodinco.com

EAU CLAIRE (715) 830-1800 WAUSAU (715) 675-2513 MADISON (608) 663-0331 MILWAUKEE (262) 781-1770 GREEN BAY (920) 884-9494

24 | FEBRUARY 2022

Year-over-Year Gains for Construction Job Openings

BY ROBERT DIETZ on FEBRUARY 1, 2022

The construction labor market remains tight, as the industry sees a rising number of job openings yearover-year.

The count of open construction jobs declined for the month to 337,000 unfilled positions in December.

The highest measure in the history of the data series (going back to late 2000) was 445,000 in October 2021. The housing market remains underbuilt and requires additional labor, lots and lumber and building materials to add inventory.

Hiring in the construction sector remained solid in December, albeit easing to a 4.3% growth rate. The post-virus peak rate of hiring occurred in May 2020 (10.3%) as a rebound took hold in home building and remodeling. It has trended higher since the Fall of 2020 has the broader labor market has improved and construction hiring has increased.

Construction sector layoffs ticked down in December to a 1.7% rate. In April 2020, the layoff rate was 10.9%. Since that time however, the sector layoff rate has been below 3%, with the exception of February 2021 due to weather effects. The rate trended lower in 2021 due to the skilled labor shortage.

The job openings rate in construction edged down to 4.3% in December, with 337,000 open positions in the sector. This is significantly higher than the 267,000 count recorded a year ago.

The number of job quits for the overall economy continues to be elevated as the Great Resignation continues. More than 4.3 million workers quit their jobs in December. This marked five consecutive months of a quits count of more then 4 million for the month. The number of quits in construction in December (181,000) declined somewhat, although that was off a data series high in November (225,000).

Looking forward, the construction job openings rate is likely to see increased upward pressure as both the residential and nonresidential construction sectors expand. Attracting skilled labor will remain a key objective for construction firms in the coming quarters and will become more challenging as the labor market strengthens and the unemployment rate declines.

25 | FOUNDATIONS NEWSLTR

PROFILE ENHANCEMENTS STANDARD

• Company name, address and phone number • Website, address map, and phone button • 5 categories

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PREMIUM

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• 12 categories • Company Description (200 characters) • Keywords (240 characters)

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• Keywords (unlimited characters)

• Hours of Operation

• 200 characters on search results

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•

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•

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cost $399/year

•

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cost $399/year

•

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cost $299/year

•

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cost $299/year

Advertisers get higher placement in all assigned Directory categories.

Ads may be changed out periodically.

CONTACT: Elizabeth Sullivan-Burton Elizabeth@RochesterAreaBuilders.com

WEBSITE BROCHURE

26 | MARCH 2022

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