www.elpasobuilders.com
VOL 2019 ISSUE 10
BuildersOutlook PUBLISHED BY THE EL PASO ASSOCIATION OF BUILDERS: NATIONAL, STATE AND LOCAL HOME BUILDING INDUSTRY NEWS
Housing market flashing recession signal Gap between home prices and income point to a recession by the 2020
The housing market is signaling there will be an economic recession by the 2020 election, according to Benn Steil, director of international economics at the Council on Foreign Relations. “Looking back at the years preceding the 2008 financial crisis, a critical warning sign was the surging gap between the growth in home prices and household income,” Steil wrote in a blog post with former CFR analyst Benjamin Della Rocca on the think tank’s website. “Today, a parallel dynamic is playing out.” In 2018, as in 2005, housing-price growth began slowing, with
significant price drops occurring in several major markets, the post said, linking to a story on New York home prices in “near free-fall” from earlier this month. Household income has been growing, but it hasn’t come close to keeping up with the increase in home prices. For example, the median annual household income in August rose 1.3% from a year earlier, Sentier Research said earlier this month. That compares with the 4.7% gain in the U.S. median home price in August from a year earlier, using data from the National Association of Realtors. “The trend-line in existing-home sales growth has also been down since 2015, tipping into negative territory at the start of last year,” the post said. “Similar drops have preceded nearly every recession
since 1970,” it said. “When income fails to keep pace with home prices, the latter must fall back,” the post said. “Falling home prices, in turn, drive down household spending by way of the so-called wealth effect – that is, consumers cut spending when their assets fall in value.” A slowdown in consumer spending, which accounts for about 70% of GDP, points to an economic contraction. Economists define a recession as two subsequent quarters of negative GDP. “If these trends continue, we should expect broad falls in home prices beginning by mid-2020, which will, in turn, drag down household spending against a darkening economic backdrop,” the post said. “Growth has been slowing, with Trump’s tariff war hitting exports.
Manufacturing is contracting. Retail sales, excluding autos, have stalled. Consumer confidence is falling.” The Federal Reserve probably doesn’t have enough power to stop a recession, the authors said. When the economy slows, the Fed cuts its benchmark rate to make it cheaper to borrow and encourage economic growth. But, the rate already is so low it probably won’t be enough to help, the blog post said. “If we are really on the cusp of a recession it will likely take more than 175 basis points of easing to prevent it – and that is all the central bank has to play with before we’re back to the zero lower bound,” they wrote. “At that point, applying monetary stimulus becomes considerably more challenging.” By Kathleen Howley, Housingwire.com
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BuildersOutlook
President’sMessage
WHO vs. HOW
Sergio Cuartas President El Paso Association of Builders
Have you ever had an idea which does not get developed because you do not have enough time to devote to it? During my 20+ years of working, this has happened to me many times. As a matter of fact, there are still several business ideas that I could develop, a couple of book ideas I would like to explore, and a cause or two that I would like to support by starting a foundation. However, these ideas are not gaining traction because my time, energy and focus are dedicated to other activities. A good friend of mine told me recently that the higher up in an organization you are, the fewer direct tasks you should be responsible for doing and the more unscheduled time you should have to think. In his words, an operator’s time should be almost 100% focused on direct tasks while his supervisor should have
fewer tasks and more time to evaluate and think. Moreover, the supervisor’s manager or director should have even fewer direct tasks and more time to think. Each higher level position should follow this trend. The other day, I listened to episode 57 of Exponential Wisdom. This is a technology and future exploration podcast produced by Peter Diamandis and his entrepreneurial coach Dan Sullivan. During this segment, they entertained the concept of “Who, Not How.” The main idea of the podcast is this: when you get excited about an idea, instead of thinking of how to make it happen, think of who can make it happen. In place of spending hours and attention on every aspect of the design of how it should happen, develop a vision of what the idea is, why it is important (what need does it supply?) and how to measure the end results. Then go and find a who and delegate the project to that person or organization that can make it happen in a way that is probably better and faster than you yourself could ever actually do it. This concept of more whoing and less howing can dramatically increase your productivity individually and as a
company. Many times, I still struggle to find the who and continue to get stuck in the how. However, lately I am constantly asking myself “who can help?” or “who can actually do certain things for me?” and that has allowed me more time to think. How could you do more whoing if you do not have people working for you? Maybe you can outsource the task. People hire writers all the time to transcribe their ideas into books. Others hire companies overseas to do certain tasks for them very cost effectively. These days, there are all kinds of third party services, resources and applications to do many things for us. The challenge is to be resourceful enough. Finally, Please help a member, do businesses with a member, recruit a new member, continue to advertise in our publications and participate in our events. I appreciate very much everything you do for our association.
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Executive’sMessage
Ray Adauto Executive Vice President El Paso Association of Builders
The news has been talking about a booming economy, low unemployment rate, and new trade agreements that boost the stock market. Housing sales are still hot and that has its ups and downs. One of the most important items in all of the good news is that there is a double edge sword to all of this. I am talking about workers. And its
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Labor and the booming economy not getting better any time soon. When I was going to school, we had opportunities to take a career path or two, notably a college track or a skills track. We had what was known as “shop” class where one could learn a skill like mechanics, welding, construction, wood class or home making. Somewhere along the line shop classes were shuttered and you had to go to a special trade school if you wanted to learn a skill. The public schools were not funded for shop class anymore and that has led to where we are today. El Paso has always had a sufficient labor force, but the reality is that things have changed in more than just school. Our skilled labor is disappeared, taken higher paying jobs in other fields or using their talent at higher wages
elsewhere, or not allowed to enter the country. In fact, our entire labor force situation has dwindled and that’s not a good thing. A continuing labor shortage is going to have a bigger impact than we think. In this economy new home construction is booming. No one can disagree with this. What you don’t see coming is that there will be delays and those delays cost money. If you don’t have the labor to do the job then you don’t buy the wood, order the concrete, or install the appliances. Labor becomes more expensive and so does the cost of the house. A builder will have to raise the prices, people will need to qualify, and lenders will have to propose larger down payments. When construction stops it affects everyday life as well. Grocery stores, Walmart, Macy’s,
the car and truck dealers…they suffer too. It’s a circle of concern. We’re getting to a point of no return with labor. Implementing training or shop at school still will be years away from getting those students onto the job site. New immigration rules need to be in place to bring labor into the country. But we need to start. If not, it won’t make any difference if we are a robust economy or not. Dare I say it could cause the biggest downturn ever in new construction. It’s time to get involved in the solutions. And we promise this fight is a fight for the lifeblood we call home.
This is our time.
Now, more than ever before, our nation is looking to Texas to set the standard in the homebuilding industry. Together we will overcome the challenges facing our industry and help build our communities into shining examples for the future of our nation. The El Paso Association of Builders congratulates Randy Bowling and looks forward to his term as the 2020 Texas Association of Builders President. #elpasostrong • www.elpasobuilders.com • 915-778-5387
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NationalOutlook Builder Confidence Hits 20-Month High Builder confidence in the market for newly-built single-family homes rose three points to 71 in October, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI) released today. Sentiment levels are at their highest point since February 2018. “The housing rebound that began in the spring continues, supported by low mortgage rates, solid job growth and a reduction in new home inventory,� said NAHB Chairman Greg Ugalde, a home builder and developer from Torrington, Conn. “The second half of 2019 has seen steady gains in single-family construction, and this is mirrored by the gradual uptick in builder sentiment over the past few months,� said NAHB Chief Economist Robert Dietz. “However, builders continue to remain cautious due to ongoing supply side constraints and concerns about a slowing economy.� Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,� “fair� or “poor.� The survey also asks builders to rate traffic of prospective buyers as “high to very high,� “average� or “low to very low.� Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor. All the HMI indices posted gains in October. The HMI index gauging current sales conditions increased three points to 78, the component measuring sales expectations in the next six months jumped six points to 76 and the measure charting traffic of prospective buyers rose four points to 54. Looking at the three-month moving averages for regional HMI scores, the
Northeast posted a one-point gain to 60, the Midwest was up a single point to 58, the South registered a three-point increase to 73 and the West was also up three points to 78.
X S XA TE ASSOCIATION
New Home Sales Remain Stable in September
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Sales of newly built, single-family homes decreased 0.7 percent to a seasonally adjusted annual rate of 701,000 units in September off a downwardly revised reading in August, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. On a year-to-date basis, new home sales for 2019 are 7.2 percent higher than the same period in 2018. “New home sales inched down in September, but the ongoing trend remains positive as builders increase their production,� said Greg Ugalde, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Torrington, Conn. “Sales volume is expected to improve slightly in the coming months as more newly-built inventory arrives,� said Jing Fu, NAHB’s Director of Forecasting and Analysis. A new home sale occurs when a sales contract is signed or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or completed. In addition to adjusting for seasonal effects, the September reading of 701,000 units is the number of homes that would sell if this pace continued for the next 12 months. The inventory of new homes for sale was 321,000 in September, representing a 5.5 months' supply. The median sales price was $299,400. The median price of a new home sale a year earlier was $328,300. Regionally, and on a year-to-date basis, new home sales are 12.8 percent higher in the South and 7.3 percent higher in the West. Sales are down 10.3 percent in the Northeast and 10.6 percent in the Midwest.
BUILDERS
2019-2021
TA B C O N T R A C T S TE XAS ASSOCIATI T ON OF BUILDERS IS HERE TO HEL LP PROTECT YOU! The 2019-2021 Texas Residential a Construction Contracts reflect the most recent legislative changes affecting the homebuilding industr y in Texas. Overall, more than 50 enhancements have been made to the various contracts and aggreements, including arbitration procedures, latent defect claim issues, code compliance matters and attorney ’s fees. Here are a few eye-catching upddates that will be included in the 2019-2021 contracts package. New Flood Notice Requiremeents. New Homeowner Maintenance Form. New Job Rules Addendum to the Independent Contractor Form. Updated Express Home Warranty that reflects current building practices and updated standards. The 201 7-2019 subscription ex pired August 31 , 2019.
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ElPasoOutlook By the El Paso Association of Builders Market Intelligence Committee This is the 5th article of a monthly reoccurring market breakdown to be featured in the Builders Outlook. Below you will find detailed market information relevant to those in the home building industry. If you would like to access to monthly information
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FinancialOutlook Do Economic Recoveries Die of Old Age? Elliot Eisenberg Economic & Policy Blog
The US economy is clearly slowing. After adjusting for inflation, GDP grew by 2.9% in 2018, and by an even better 3.1% in 19Q1. But growth slowed to just 2% in 19Q2, is expected to grow at a similar pace the rest of this year, and to then slow further in 2020. According to some pundits, this rapid slowing is a clear sign we are in the final stages of this economic recovery and that a recession is fast approaching. They point out that we are in the 11th year of this recovery, making it the longest one in history, and as such we are simply due for a recession. Fortunately, they are wrong, expansions do not die of old age. Let me explain. Prior to WWII, the idea that expansions were more likely to end as
they got older was very common and was frequently mentioned in business and economics textbooks. And indeed, it was justified by the data. Using a statistical technique called survival analysis, which looks at the probability of some particular event occurring given the age of the subject, be it a person or a car or sports team, it is clear that prior to WWII recessions were more likely to happen the longer the recovery. The intuitive starting point is based on analogies to human mortality. In short, this presumption suggests that as an economic recovery ages, assorted imbalances and rigidities accumulate that hobble the economy and make it more fragile. As a result, a recovery is increasingly put at risk by smaller and smaller shocks, and it becomes increasingly likely the economic expansion will fall into recession the longer it lasts. Analogies to cars are also frequently cited. All else equal, as a car ages, the probability that it will suffer a mechanical breakdown increases.
Thus, older cars are considered less reliable and generally command a lower price than new ones. Happily, however, various postwar changes in the economy have contributed to more robust and longerlived expansions! One key change has been the rise in the share of services produced in the economy and the concomitant decline in goods. This change has diminished the importance of inventory fluctuations and, as a result, has moderated the business cycle. The role of the federal government has also drastically changed. Since WWII, government activity has, among other things, increasingly focused on stabilizing the economy. In short, the government has gone from a laissezfaire hands-off attitude towards the economy to a forceful, countercyclical policy. This approach has not only prolonged business cycles but has, importantly, eliminated the pattern of cycles becoming increasingly fragile as they age. In a sharp reversal, it is now recessions that are increasingly likely
to end the longer they last as policymakers take action to revive growth, such as passing tax cuts and spending increases and lowering interest rates. In closing, enjoy the current expansion. Treat it like a good friend or a fine glass of wine and savor every extra month together. While it is almost ten and a half years old, it might well last another year, two if we are lucky. Better yet, the recession that follows is not likely to be particularly deep, as there are no asset bubbles in the making, nor are the sectors of the economy that usually drive us into recession growing inappropriately quickly. Elliot Eisenberg, Ph.D. is President of GraphsandLaughs, LLC and can be reached at Elliot@graphsandlaughs.net. His daily 70-word economics and policy blog can be seen at www.econ70.com.
EventsOutlook Fall Golf Tourney a winner Whenever you plan a golf outing there is one item that you can’t control, not even at the PGA level. That’s the weather. We have had tremendous weather for the 90% of our golf dates that it would be unfair to say otherwise. This Fall 2019 event was exactly what we had hoped for, a clear beautiful October day with sunshine and a cool breeze and no rain or snow. This contrasted with the 2018 event where in the first hour of the tournament we got rain, wind, dirt, snow, ice thrown at us. It was miserable enough that some player threw in the towel, but not this year. With an over capacity group of teams, we had the perfect weather that we enjoyed. Our 23 teams had a great time, all of them vying for a shot at the hole in ones, the long drives, or in the case of the difficult Fazio layout, just staying out of the bunkers and rough. “We had to keep the ball in the fairway for this tournament because if not you could spend hours looking for that ball,” said chairman Sam Shallenberger. He was right as several teams looked for their drives only to be discouraged enough to have to pull another ball out of the bag. Butterfield Trail is the premier publicly owned golf course in El Paso, tough but playable, with long fairways and challenging greens. “No matter what you hit with you have to know that the course will dictate your results, luckily for our team we did pretty good,” said Scott Whisenant from StrucSure Home Warranty, one of the major partners. The El Paso Association of Builders two golf tournaments are always sold out early and the reason we keep hearing is that it’s a fun tournament. “We try to have players with experience and little experience mix it up and the result is a good day of fun,” said Shallenberger. The tournaments Presenting Partner was Haskins Electric. Chuck Haskins, owner, says he supports the event because of the fun. “Our company is very proud to be involved because this tournament and the one in Spring has great reputations,” he said. Considering the fun, it doesn’t come without a lot of help from members, sponsors, and a great golf staff. “We did a quick survey of the players immediately after they came in and your tournament rated superior in every way,” said Tim Krebs, PGA Professional and General Manager for Butterfield Trail. “Clearly the players enjoy the day out and what you guys do for them,” he continued. It starts with a lot of work from Margaret Adauto coordinating the teams, players, sponsors and making sure things are set. Her working partnerships with our volunteers are tremendous. This year we once again had terrific support on the goodie bags, from the number of gifts to the packing of them. Each year we have a dedicated group of volunteers joined by some new folks. Our thanks to the breakfast sponsor Morrison Supply, our lunch sponsor HUNT Communities, and our beverage sponsor Sherwin Williams. Our tee box markers were sponsored by StrucSure Home Warranty, the flags were from WestStar, our longest drive courtesy of Centricity Home Warranty, our closest to the pins 84 Lumber and Interceramic, while our driving range was partnered by HUB International. While the date for the Spring tournament is not set yet we look for another sell out. Stay tuned to our announcement soon and the partnership opportunities that will be available.
Texas Contract class well attended
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Every two years the Texas Legislature meets and makes laws that affect us. This year the lawmakers were once again targeted to increase legislation on builders and lenders. And target they did. The Texas Association of Builders (TAB) has full time lobbyist who meet with the legislators and staffs year-round, and that has been a big reason home building is still a great profession in Texas. Time after time the opposition has tried to create laws that would kill the industry as we know it. So far TAB has been able to keep that from happening. However, there are some important changes in how to do business in Texas and that means new rules to follow or adapt to. The courts have also deemed changes to contracts and that’s why TAB offers a contracts class as a part of
membership. Enter our good friend James Rudnicki, attorney for builders and creator of the Texas Association of builder’s contact, and exclusive comprehensive contract for TAB builder members. “I wish that I didn’t have to come and talk to the builders about contracts, but I do this on my nickel because it is important for them to protect themselves and the consumer,” James told the Outlook. A TAB Builders contract costs $400 for two years of downloads, with updates added at no additional costs as court cases or laws change them. “For the cost of a one-hour consultation with me or another attorney the builder member has a document that is refined, complete, and tested to protect the builders interest,” he continued. Sponsoring the event were StrucSure Home Warranty and Builder Agent Network. The classroom was full and the questions were flying. Rudnicki is a partner in the Bush, Rudnicki and Shelton law firm with offices in Arlington, Texas and Austin, Texas. James Rudnicki can be contacted at james@brstexas.com or by calling 817635-7407.
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EPABMembers&Services Builder-DeveloperMembers BUILDER & DEVELOPERS Bain Construction Scott Bain 915-852-8620 Althon Investments, LLC Jose Luis Martin (915) 532-3100 Bella Vista Custom Homes, Inc. Edgar Garcia 915-433-4854 BIC Homes Antonio Cervantes 915-855-8236 Blue Sage Homes, LLC Jaime Gonzalez 915-787-9175 Carefree Homes Richard Aguilar 915-590-8511 Casas De Leon, LLC Nick Bombach 915-584-5050 Cisco Homes LLC Francisco Arroyos III 915-633-8002 Classic American Home Priscilla Hernandez 915-593-7707 Crown Heritage Homes Lydia Mlouhi 915-252-8193 CS Custom Homes Steve Gonzalez 915-346-1107 Cullers & Caldwell Builders John Cullers 915-584-5600
Cullers Homes Jason R. Cullers 915-584-5600 D B Innovations LLC Dan Berry (915) 283-7558 Dawco Home Builders Walter O. Lujan 915-587-5267 Deal 2 Deal Custom Homes Delton Deal 915-217-9233 Del Rio Engineering, Inc. Sal Masoud 915-833-2400 Diamond Homes, LLC Valerie Baquera 915-449-9044 E. Valencia Land Development LLC Eddie Valencia 915-855-0622 Eclat Homes & Designs Veronica Guerra (915) 630-6729 Edward's Homes, Inc. Eduardo Fernandez 915-849-8819 EPT Bella Custom Dream Homes Leti & Javier Navarrete 915-779-4553 EPT Land Communities David Bogas 915-838-8100 Everest Homes Edmundo Dena, Jr. 915-855-8633 Fortune Custom Homes Javier Andrade 915-856-7795
AssociateMembers 3RD PARTY INSPECTIONS Vision Consultants, Inc. Kelly Sorenson 915-227-2100 ALARM SYSTEMS ADT Security Veronica Vazquez 9152583870 APPLIANCE DISTRIBUTORS Builders Source Appliance Gallery Sandra Lucero 915-775-1000 Morrison Supply Sam Shallenberger 915-778-3086 APPLIANCES GE Appliances Christine R. Villanueva 806-252-3683 Whirlpool Gwen Walker 505-220-3915 ASPHALT PAVING Alpha Asphalt Gabriel Chavez 915-252-6244 ASSOCIATION El Paso Mortgage Bankers Association Brenda Aguirre 915 204-3867 Greater El Paso Assoc. of Realtors Jason Sanchez 915-779-3521 Greater El Paso Chamber of Commerce David Michael Jerome 915-534-0522 ATTORNEYS Firth, Johnston, Bunn & Kerr Jay Kerr; Victor Firth 915-532-7500
AUTO HOMEOWNER INSURANCE TAB endorsed State Auto (Association Insurance Solutions) Russ Sartain, Danner Bethel 512-203-2910
Gaddy Construction Charles Gaddy 915-581-3966 Guel Construction Rudy Guel 915-595-0979 Hakes Brothers LLC Chris Hakes 575-373-1120 Hanson Asset Management, LP Russell Hanson 915-842-0111 Homes by Design Leslie Driggers Hoard 915-525-4765 Hunt Communities, LLC Kathy Parry 915-298-0490 ICON Custom Builder, LLC. Carlos Garcia 915-859-3713 Industrial Realty Group Incorporated Brent D. Harris 915-877-4300 JER Custom Homes, LLC Jorge E. Rodriguez 915-929-8420 Lloyd Hamilton Contruction Lloyd Hamilton, III 915-588-8558 Loyalty Homes Gustavo Loy 915-471-1894 M A Builders & Design, LLC Mustafa Ali 915-587-9566 Maravilla Homes Victor Robles 915-328-8599
Metro Homes, Inc. Judith Arrunada, Fernando Torres 915-538-2497 Pacifica Homes, Inc Juan Jose Vasquez 915-857-1855 Padilla Homes Misael Navarrete (915) 833-3839 Palo Verde Homes Edgar Montiel 915-584-9090 Pointe Homes Carlos Villalobos 915-790-1515 Porter Homes Albert Porter 915-833-3597 R.C. Baeza & Associates Robert C. Baeza 915-857-1818 R.E. Welch Contractor Gordon Welch 915-778-9977 Rassette Homes, Inc. Donald Rassette 915-585-3330 Rio USA Fredduy Klayel 915-526-2885 Rosewood Design and Build Brianna Barnes (915) 730-4747 Santana Custom Homes Fernando Santana 915-694-4256
Southwest Land Development Services Doug Schwartz 915-592-0290 Spanish Oaks Custom Homes Juan R. Saenz 432-238-3090 The Heritage Group David Bingham 915-598-6606 Trejo Construction Co Juan Trejo 915-637-5193 Tropicana Building Corp. Bobby Bowling IV 915-821-3550 Tropicana Development Greg Bowling 915-757-1802 Tropicana Homes Randy Bowling 915-821-3550 Tropicana Properties Demetrio Jimenez 915-755-9113 Uptown Homes Residential, Inc. Francisco Baquera 915-240-4996 Veliz Company, LLC Carina Popoca 915-219-4000 Will Harvey Development Will S. Harvey 915-584-8242 Winton/Flair/Accent Homes Herschel Stringfield 915-584-8629 Zia Homes of El Paso, LLC Preston Brown 915-490-9525
Appears Alphabetically by Service or Product
BANKS/BANKING SERVICES Bank of Texas Ray Owen 915-313-6720 City Bank Texas Bob Kotarski 915-833-0267 Citizens Loan Center Jim Easley 915-275-0715 First National 1870 Ernesto Avila 915-881-6702 Vantage Bank Josie Cantu 915-594-3404 Western Heritage Bank Kathy Carrillo 915-782-2400 WestStar Bank David Osborn 915-747-1640
Ken Donham 505-991-4719 McCoy's Building Supplies Doug Danner 915-751-8261 L & P Building Supply Denise McConnell 575-527-8000 Foxworth Galbraith Lumber Dan Villarreal 915-779-7777
CONCRETE WORK-POST TENSION J & H Concrete & Post Tension Jorge Herrera ‘ 915-581-3103
CABINET MANUFACTURING J. B. Laminates Gina Rodriguez 915-886-5510
CONSULTING, COACHING AND TRAINING Senpai Training and Development Leonardo Corral 915-303-0743
CABINETS Cabinet Masters Mike Robles 915-256-5012
CONSULTING/ENGINEERING LOI Engineers Bernardino Olague 915-781-1532 915-871-1190
BATHROOM RENOVATIONS Rebath of El Paso/Las Cruces Lisa Walling 915-633-8101
CIVIL ENGINEERS Moreno Cardenas Inc. Roberto Moreno 915-532-2091
BRICK Acme Brick Company Brent Smith 915-859-9171
CONCRETE Oropeza Concrete Angel Oropeza 915-873-7391
BUILDING MATERIALS BMC Select David Quintana 915-218-5816 Boise Cascade Mike Flores 915-525-6037 DWS Building Supply Sabrina Voorhies 915-351-7300 E.F. Building Materials, Inc Efren Fraire 915-593-1301 El Paso Building Materials Ken Wade 915-549-1170 Franklin Building Materials Cristina Sheldon 915-855-3859 Simpson Strong-Tie Company, Inc.
CONCRETE ACCESSORIES & MASONRY-LANDSCAPE Border Construction Specialties Ricardo Yvellez 915-566-1688
CONCRETE & LANDSCAPING MATERIAL GCC Sun City Materials, LLC Antonio “Tony “ Chavez 915-565-4681 Jobe Materials, LP Charlie Tellez 915-298-9900 Mini Concrete Materials Joe Soto 915-852-4468 MTI Ready Mix, Inc. Tony Mullen 915-859-5767
CORPORTATE RETIREMENT PLANS Bukaty Financial Companies Group Ruth Rivera 512-796-1205 CPA Beasley, Mitchell & Co., LLP Brad Beasley 575-528-6700 James L. Ellis, CPA, PC Jim Ellis 915-593-7070 915-598-8631 SBNG, P.C. Tyler Smith 915-544-6770 Randall Smith, CPA Randall Smith 915-225-5200 915-533-8266 CREDIT UNION First Light Federal Credit Union Lorenzo Revelez 915-225-0581 GECU- Greater El Paso Credit Union Danny Galindo 915-774-4733 TFCU Yolie Melendez-Estrada 915-843-8328
CUSTOM PADS, LANDSCAPING, CUSTOM AQUARIUM, BUBBLE WALLS The Dorian Group/Ocean Gallery USA Miguel Angel Mercado 915-778-5111 DISPOSAL HAULING Demcon Disposal Management, LLC Ryan Robles 915-577-9477 DOOR SHOP/ MILLWORK SUPPLIER Trim Team 915-856-0791 DOORS Franklin Door and Trim Jesse C. Brown 940-210-0450 DUMPSTER RENTAL/SPRAY FOAM INSULATION 915 Siteworks, LLC Miguel Chavez 915-859-3713 ELECTRICAL CONTRACTORS Haskins Electric Charles B. Haskins, Jr. 915-629-9196 IES Residential Joshua Garnica 915-356-5644 Saldivar Electric, Inc. Martin A. Saldivar 915-778-7085 ENERGY STAR RATER Senercon Javier Ruiz 915-892-0547. ENGINEERING CEA Engineering Group Jorge L. Azcarate 915-544-5232. Conde, Inc. Conrad Conde 915-592-0283. TRE & Associates Linda Troncoso 915-852-9093.
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EXTERIOR FOIL SHEATHING Powerfoam Insulation Arnie Pedersen 972-299-5556.
Great American Insurance Group Julie Tomlinson 513-412-4921
EXTERIOR PATIO PRODUCTS Modern Exteriors Hector Macias 915-857-5126
Joe Bernal Ins. & Financial Services, Inc. Joe M. Bernal 915-542-0900.
Sun City Winnelson Dean Moore 915-532-1600 El Paso Winnelson Rene Goldfien 915-778-4640. W.W. Sales Eric Hoppes 505-463-8204
FIREPLACES/INSTALLATION Jack White Building Specialties Claudia Lardizabal 915-855-8630
INSURANCE - RISK MANAGEMENT HUB International Luis Rosas 915-206-6023
PORTABLE RESTROOMS Sarabias Blue Sanitation Monica Brown 915-544-9022. 915-533-3108 Porta- Jons
FLOORING Bordertown Carpets Brian M. Abraham 915-522-8993 FOAM INSULATION New Era Foam George Tollen 915-861-6683 FOUNDATION REPAIR & STABILIZATION G & G Enterprises Gen. Contractor Juan F. Garcia 915-726-8995 GRANITE/QUARTZ COUNTERTOPS Stone City Rocks Chris Baca 915-246-7614 HOME & AUTO INSURANCE State Auto/Association Insurance Solution Danner Bethel 512-203-2910 HOME FURNISHINGS Copenhagen Imports Flemming Carlsen 915-581-8897 915-584-7769 HOME WARRANTY 2-10 Home Buyers Warranty Leslie Schey 915-242-7699. 303-306-2222 Centricity Brent R. Morgan 800-749-0381X4790 Home of Texas Amanda Eason 210-540-7891 StrucSure Home Warranty Scott Whisenant 210-232-3947 HVAC A C Refrigeration, LLC Angel Cabrera 915-820-8503 Startech Heating and Air Conditioning Luis Procter 915-757-1982 Wolf Air Arturo Alcantar 915-694-8214 HVAC DUCTLESS MINI SPLIT Mitsubishi Electric Trane HVA 505-228-4264 HVAC EQUIPMENT Lennox Industries Brandon Walker 818-932-5063 Goodman Mfg. Jorge Guajardo 915-219-3896 HVAC SALES/INSTALLATION Belmont's Air Conditioning, Inc. Rafael Belmonte 915-778-7399 HVAC Supplies Hercules Industries John Chaney 915-778-9377 I T SUPPORT/PREWIRE All Tech Systems LLC Javier Terrones 915-777-2585 I T & WEB DESIGN Cognent, Inc. Martin Paredes 407-809-4417. INSULATION New Start Insulation Jose Carreon 915-256-2371 INSURANCE Bundle Bee Insurance Agency Victoria Dominguez 915-598-3500
INSURANCE AND BONDING C. D. Lee/Britton Insurance & Bonding Anthony Landavazo/Lisa Daniels 915-595-3393 IRON WORK PRODUCTS Area Iron & Steel Works, Inc. Fred L. Edmonston Jr. 915-833-9494 LEGAL SERVICES/TITLE COMPANY David J. Ellis Fee Office for Sierra Title David J. Ellis 915-566-2666. 915-566-0111 LIGHTING City Lights Thomas Brown 915-533-6045. 915-533-6096 Designer's Mart Valerie Edmiston 915-778-9223 LIGHTING & BATH FIXTURES Ferguson Enterprises Inc. Albert Holguin 915-231-5836. 915-231-9357 LOW VOLTAGE WIRING Prewire of El Paso, Inc. Steven Drury 915-598-4937 LUMBER 84 Lumber Ernie Chavez 915-584-8447 MIRROR, SHOWER DOOR, STOREFRONT,AUTOMATIC DOORS & CURTAIN WALLS Performance Glass & Aluminum Hector Hernandez 915-592-5583 MOLDING & LUMBER Adams Moulding & Lumber Tom Swahlen 915-584-1440 MORTGAGE COMPANIES Cadence Lending Group Carolyn De Leon 915-779-1633 915-706-2649 New American Funding Tania Guzman Campaign 757-831-7322. Patriot Mortgage Randy Bowling 915-757-9500 Rocky Mountain Mortgage Company Justin Hahn 915-593-3111 Supreme Lending Lisa Wren 601-549-6768 Commerce Mortgage Stephen Sepulveda, Gilbert Pedregon 915-209-3189 NEW CONSTRUCTION EQUIPMENT & SUPPLIES ProCon Shane Davis, 575-524-1671 NEWSPAPER El Paso Times Sal Hernandez, Justin Riley 915-546-6244. 915-546-6406 PAINT DISTRIBUTOR Dunn-Edwards Paints Nathan Gordon 915-855-7535 915-855-8168 Sherwin Williams Paint Cruz Lopez 915-532-6921. PLUMBING Q Martins Plumbing Jose Martinez 915-240-5218. PLUMBING & IRRIGATION SUPPLIES-DISTRIBUTORS Baron Supply David Trammell 915-886-3697
POST TENSION Post Tension Steel Dennis Moore 915-474-0180. 915-532-0119 PUBLICATIONS Homes of El Paso Riley Stephens 915-585-1000 Su Casa Magazine Edwin Rosario 915-355-7190 PUBLISHING SERVICES Snappy Publishing, LLC Ted Escobedo 915-820-2800 READY MIX MTI Ready Mix, Inc. Tony Mullen 915-859-5767 REAL ESTATE SERVICES Team Juan Uribe, LLC Juan Uribe 915-479-5151. Home Pros Real Estate Group Penny Moore. 915-585-8806 Legacy Real Estate Services Patrick Tuttle 915-231-9994. Century 21 The Edge Scott Kesner 915-772-0553 Harris Real Estate Group Lane Harris 915-443-8423 Bella Vista Realty Grisel Ortega 915-491-2056 New Beginnings Real Estate Gordon Sather 915-241-6500 RES. & COMM BUILDING PRODUCTS Massey Johnson Josie Ledesma 915-487-3359 ROOFING MAK Roofing & Construction Felix Vizarreta 915-691-0532 Imperial Construction Alexandro Garcia 915-222-3838 USA General Contractors Javier Olmos 915-633-3339
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SURVEYING ENGINEERING Barragan & Associates Benito Barragan 915-591-5709
VEHICLE DEALERSHIP Rudolph Chevrolet Mike Ruffin 915-544-4321
TESTING & ENGINEERING CQC Testing and Engineering,LLC Jaime Rojas 915-771-7766
WASTE DISPOSAL El Paso Disposal Irma Parsons 915-772-7495
TILE & NATURAL STONE Floor & Decor Pedro (Peter) Ramirez 915-407-5599 Interceramic Tile & Stone Gallery David Holguin 915-593-7357 TITLE & ESCROW COMPANIES Del Sol Title Co. Hector Phillips 915-838-8000 Lone Star Title Co. of El Paso Aaron Rich 915-545-2222 Prosperous Title Liz Olivar 915-288-2462 Sierra Title Company Angelique Roman, Marielsa Pulido 915-544-3322 Stewart Title of El Paso Cindy Bilbe 915-225-8200 WestStar Title Rachel Valles 915-849-5537 Texas Title Company Steve Raney 915-593-3400 TOTAL OFFICE SOLUTION SOURCE Spectrum Technologies Miled Daou 915-781-2000. 915-781-2288 TRUSS El Paso Truss Luis Mendiola 915-751-0025 Franklin Building Materials, Cristina Sheldon, 915-855-3859 UTILITY Texas Gas Services Maria Ortiz 915-680-7288
WATER SOFTENERS El Paso Water Softeners Rebecca Estrada 915-307-9183
WINDOW TREATMENTS Gotcha Covered Sophie Soudaiha Agraz 915-201-4264 Southwest Décor El Paso Corporation Chris Matthews 915-594-9240 WINDOWS Pella Windows Jason Bates 915-833-3066 Sun West Windows and Glass Ernie Hernandez 915-383-2201
WATER REMOVAL Jimmy Garza Emergency Water Removal Jimmy Garza 915-562-1123
T R E AT Y O U R S E L F Make the most of your next trip with a complimentary upgrade when you use coupon # UUGA037. Plus, receive up to 25% off base rates with AWD # G572900. Visit avis.com/nahb or call 1-800-331-1212.
Terms and Conditions: Offer valid for a one time, one car group upgrade on an intermediate (group C) through a full-size four-door (group E) car. Maximum upgrade to premium (group G), excluding intermediate SUV (group F). Offer valid on daily, weekend, weekly and monthly rates only. The upgraded car is subject to vehicle availability at the time of rental and may not be available on some rates at some times. All taxes, fees (including but not limited to Air Conditioning Excise Recovery Fee, Concession Recovery Fee, Vehicle License Recovery Fee, Energy Recovery Fee, Tire Management Fee, and Frequent Traveler Fee) and surcharges (including but not limited to Customer Facility Charge and Environmental Fee Recovery Charge) are extra. Optional products such as LDW and refueling are extra. Valid at participating Avis locations in the contiguous U.S., Puerto Rico, U.S. Virgin Islands and Canada. One coupon per rental. A 24-hour advance reservation is required. May not be used in conjunction with any other coupon, promotion or offer. Upgrade will be applied at vehicle pick-up time. Renter must meet Avis age, driver and credit requirements. Minimum age may vary by location. An additional daily surcharge may apply for renters under 25 years old. Fuel charges are extra. Rental valid through December 31, 2019. ©2018 Avis Rent A Car System, LLC
HAVE YOU CHECKED YOUR RESTROOMS LATELY?
ROOFING PRODUCTS ABC Supply Co., Inc. Larry Eck 915-533-0645 Eagle Roofing Products Scott Aguilar 928-220-3899. SANITATION & FENCE United Site Services Ramon Armendariz 915-330-2318 SELF STORAGE Remcon Self Storage Will Harvey 915-833-2399. SIDING, WINDOWS, PATIO COVERS,CARPORTS Modern Exteriors Hector Macias 915-857-5126
With flu season quickly approaching, it’s time to have your restrooms checked by a professional
SOLAR PANELS Border Solar Javier Ruiz 915-613-4168 Solar Smart Living Larry Perea 915-400-2995 STORMWATER/SAFETY ESS Environmental and Safety Solutions Jose L. Garcia Ramirez 915-775-1171 915-775-1174
CALL TODAY! 915-307-3463 or 833-437-6776 Trusted by the El Paso Association of Builders
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2019Issue10
Parade of Homes Showcase draws thousands The 2019 Parade of Homes came to a conclusion on October 6 after a very successful two week run. The showcase had a total of nine homes that were shown in the Upper Valley subdivision Valley Creek unit 3. The property was developed by Hanson Asset Management and has completely sold out. The participating builders also had many stories of success. “Deal 2 Deal Custom Homes presented two totally different floorplans and we feel very fortunate to have been involved in the Parade,” said Delton Deal. “We try to offer little extras to make our homes unique to the buyer,” he continued. Deal, who along with wife Lucinda and family own Deal 2 Deal Custom Homes have participated in the Parade over the last few years. “We have been involved and committed to offering our plans wherever the Parade is going, something that we feel very proud to do,” Deal continued. The participating builders were Diamond Custom Homes, Deal 2 Deal Custom Homes, Pacifica Homes, BIC Homes, Palo Verde Homes, JER Custom, ICON Custom Builder, Rosewood, and Winton Homes. “I think that our home was so different
that many of our industry friends were surprised at our offering,” said Mark Dyer of Winton. “We felt like we could showcase our design and it went very well. We had the property sold before we opened the Parade, so I guess we hit the point,” Dyer continued. While the Parade had some unexpected weather issues that closed the show down, it was really a very well attended event. “We came in at over 6800 visitors in those two weeks in spite of the closure on opening Saturday, a Monday and then another on what forecasters said was going to be a gully washer, but didn’t,” said Ray Adauto. “We have a builder committee that makes the decision, and all of these were spot on, as to potential issues like rain or high winds,” he continued. The weather forecasts online as well as on local channels called for significant rain on that Thursday that just didn’t pan out. “You never know what mother nature has in mind, but safety is our first concern and the shutdown was proper,” Adauto continued. The Presenting Partner, Franklin Building Materials, was appreciative of the opportunity to be the Parade
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of Homes sponsor. “When we can showcase the great homes, our builders produce we want to be there to support them and the association,” said Cristina Sheldon, President of
Franklin Building Materials (FBM). Morrison Supply, GECU Mortgage, WestStar Bank, and First Light Federal Credit Union sponsored specific employee groups. “We believe that our partnership with the EPAB is important, since this is a highly anticipated community event and GECU Mortgage’s commitment to our Education Employee base was a perfect fit,” said Danny Galindo. The 2020 Parade of Homes is being worked on as of this writing.
El Paso Disposal
772-7495
2019Issue10
BuildersOutlook
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MembershipOutlook Upcoming Events NOVEMBER 14 BOARD MEETING 12 NOON EPAB OFFICE
NOVEMBER 20-22 TAB MEETINGS
DECEMBER 13 EPAB AWARDS & INSTALLTION 6:00-9:30PM RADISSON HOTEL. AIRPORT
NOVEMBER 21 RANDY BOWLING’S INSTALLATION AUSTIN, TEXAS
New Members VELIZ COMPANY CONTACT: CARINA POPOCA 2910 GATEWAY EAST EL PASO, TX 79905 9152194000
NEW BEGINNINGS, LLC CONTACT: GORDON SATHER 6024 LOS SIGLOS DR. EL PASO, TX 79912 9152416500
PROCON TOOLS & EQUIPMENT/PROCON JCB CONTACT: SHANE DAVIS 461 PIONEER PLACE LAS CRUCES, NM 88005 5755241671
ALL TECH SYSTEMS,LLC CONTACT: JAVIER TERRONES 1605 GEORGE DIETER DR., #686 EL PASO, TX 79936 915-777-2585
The Installation of Officers and Board Members and Award Presentation Friday, December 13, 2019 Evening wear please 6-9:30 pm Radisson Hotel Airport 1700 Airway Blvd. El Paso, Texas
Condolences To the families of Gaby Rubio and Don Ward, Sr. our deepest condolences.
o s a P l E f o Homes aso.com HomesofElP
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BuildersOutlook
2019Issue10
Federal Code Mandates Costly and the Wrong Approach to Boost Energy Efficiency The National Association of Home Builders (NAHB) today urged Congress to oppose any federal mandates that require the adoption of more stringent building codes because it would harm housing affordability, prevent healthy competition in the marketplace and may not achieve the intended results. Testifying on behalf of NAHB before the House Select Committee on the Climate Crisis, Jimmy Rutland, a home builder and developer from Montgomery, Ala., said that maintaining housing affordability must be the cornerstone to any efforts to create cleaner and stronger homes. “Any efforts to improve or increase the efficiency or resiliency of the U.S. housing stock should focus on cost-effective, market-driven solutions,� said Rutland. New homes built to modern codes are efficient, safe and resilient, which makes increasing code stringency unnecessary, Rutland told lawmakers. “Similarly, because the codes are nearing a point of diminishing returns in terms of the cost-benefit ratio, additional updates may not be cost effective.� As policymakers seek to improve efficiency and mitigate the effects of future natural disasters, they need to create opportunities and incentives to facilitate upgrades and improvements to the older homes, structures and infrastructure that are less resilient to natural disasters. A full 130 million homes out of the nation’s housing stock of 137 million were built before 2010, and therefore, were not subject to the new building codes now in effect. “Since these homes also represent the biggest energy users and are the least resilient, programs and policies that focus on the existing housing stock would reap the most benefits,� said Rutland. He also stressed the following points to lawmakers: State and local governments must retain authority over land use and their code adoption processes so they can continue to direct community development and implement the codes that best fit their jurisdictions. Climate change mitigation programs that recognize and promote voluntary-above code compliance have a proven track record and demonstrate that mandates are not necessary. Incentives play an important role in providing home owners a cost-effective way to invest in energy efficiency and resiliency. Mandates, which fail to consider the needs or desires of consumers, lack the flexibility needed for realistic, widespread application, and add unnecessary costs to home construction and retrofits, are an unwise approach to improving efficiency and home performance.
DESIGN WITH NATURAL GAS IN MIND. Nothing is more attractive to homebuyers than the right mix of comfort and value. You can provide both when you build homes that have natural gas. Natural gas furnaces, water heaters and clothes dryers offer greater efďŹ ciency and lower operating costs than their electric counterparts, and natural gas kitchens sell themselves. Let us help you plan for natural gas right from the start. For more information: ElPasoNewBusiness@TXGas.com William Nieves: 915-496-6126 Jorge Sejera: 915-680-7216 Please continue to direct service line and meter set requests to the Texas Gas Service
Builder Services atslimgas-metroElPaso@onegas.com slimgasÂmetroElPaso@onegas.comoror 1Â866Â206Â9587. Hotline at 1-866-206-9587.
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HOME O F
T E X A S
800.445.8173 ext. 2149 sales@homeoftexas.com • www.homeoftexas.com
www.elpasobuilders.com
VOL 2019 ISSUE 10
BuildersOutlook
Insurance developed for builders.
PUBLISHED BY THE EL PASO ASSOCIATION OF BUILDERS: NATIONAL, STATE AND LOCAL HOME BUILDING INDUSTRY NEWS
Developed for builders with the backing of the strongest insurance carriers serving the Texas building industry, our insurance program offers flexible coverage options and rates that are more competitive than ever. As an authorized member of Builder Agent Network©, we’re dedicated to providing builders and contractors with the best-in-class insurance programs, pricing, underwriting, resources and service.
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■ EXECUTIVE OFFICERS PRESIDENT Sergio Cuartas VICE PRESIDENT Edgar Garcia SECRETARY Sal Masoud EXECUTIVE VICE PRESIDENT Ray Adauto PAST PRESIDENT Edmundo Dena
Johnny Rodriguez, Lowe's Randall Smith, Randall Smith, Cpa Justin Hahn, Rocky Mountain Mortgage Angelique Roman, Sierra Title Ted Escobedo, Snappy Publishing Patricia Martinez, Stewart Title Henry Tinajero, WestStar Bank
Product Portfolio Highlights t “A” rated carriers, several available t (- PêFSJOH Doverage for property damage that results from faulty, defective, or poor workmanship in your work. t (- -JNJUT PG VQ UP . . . Bvailable t Expanded policy form for commercial projects t Builder’s Risk master policies, monthly reporting, annual and one shots t Workers’ Comp - Two highly cost-effective programs t ExDFTT -JBCJMJUZ GPS $PNNFrcial (eneral Contractors t $PNNFrcial Umbrella
■ TAB STATE DIRECTORS Randy Bowling, Life Director Sam Shallenberger Edmundo Dena Gus Loy Don Rassette Luis Rosas
■ COMMITTEE CHAIRS: ASSOCIATES CHAIR Luis Rosas GOVERNMENT AFFAIRS Sal Masoud GOLF TOURNAMENTS Sam Shallenberger FINANCE COMMITTEE Kathy Carrillo/Treasurer COMMUNITY OUTREACH Angelique Roman LAND USE Sal Masoud EDUCATION Patrick Tuttle INDUSTRY PROMOTIONS Ted Escobedo
■ NATIONAL DIRECTORS Bobby Bowling, IV Demetrio Jimenez
Honorary Life Members Rudy Guel Brad Roe Wayne Grinnell Don Henderson Anna Gill Mark Dyer Sam Shallenberger
■ ADVISORY TO THE BOARD Jay Kerr, Firth, Johnston, Bunn & Kerr
HUB International Insurance Services -VJT 3PTBT 915-206-6047 www.hubinternational.com
Past Presidents Committed to Serve Don Rassette Edmundo Dena Edgar Montiel Frank Torres Frank Arroyos Greg Bowling Randy Bowling Bobby Bowling IV Doug Schwartz John Cullers Robert Baeza Mark Dyer Kelly Sorenson Rudy Guel Brad Roe Herschel Stringfield Bob Bowling III Carlos Villalobos
■ BOARD OF DIRECTORS Builders: Jaime Gonzalez, Blue Sage Homes Lee Gillett, Classic American Homes Lydia Mlouhi, Crown Heritage Homes Dan Berry, D B Innovations,LLC Delton Deal, Deal-2-Deal Eder Gallardo, Edwards Homes Leti Navarrete, EPT Bella Custom Dream Homes Kathy Parry, Hunt Companies Samira Gonzalez, Icon Custom Home Builders Laura Loy, Loyalty Homes JJ Vasquez Pacifica Homes Trevor Turner, Rassette Homes Fernie Santana, Santana Homes Jacob Barde, Tropicana Homes Associates: Sandra Lucero, Builders Source John Chaney, Hercules Industries Luis Rosas, HUB International Jorge Herrera, J & H Post Concrete & Tension Joe Bernal, Joe Bernal Insurance Patrick Tuttle, Legacy Real Estate Service Aaron Rich, Lone Star Title
El Paso, Permian Basin and Surrounding Area
www.builderagentnetwork.com
EPAB Mission Statement: The El Paso Association of Builders is a federated professional organization representing the home building industry, committed to enhancing the quality of life in our community by providing affordable homes of excellence and value. The El Paso Association of Builders is a 501C(6) trade organization.
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