Building Savvy March 2021

March 2021

San Antonio’s Homebuilding Industry Publication

LARA

MILLER

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Building Savvy

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DISCLAIMER: Any articles included in this publication and/or opinions expressed therein do not necessarily re ect the views of N2 Publishing but remain solely those of the author(s). The paid advertisements contained

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[from the publisher] Economists say the U.S. housing market will get stronger through 2021 as the economy recovers from the pandemic-driven recession and Americans look for homes that fit their foreverchanged lifestyles post-pandemic. There is also a good year projected for remodelers in 2021; HomeAdvisor’s

Good News for 2021

latest “State of Home Spending” survey shows that homeowners are putting the money saved to travel and entertainment expenses toward projects that enhance their homes.

The Texas A&M Real Estate Center reported that Texas’ homeownership rate rose to its all-time high of 70% in the third quarter, exceeding the national metric for the first time since 2012. By the end of 2021, another recent report predicts that the national homeownership rate in American will reach also reach 70% for the first time since 2005.

As the broader economy faces a long road to recover, 2021 will see more home sales than any year since 2006, with sales expected to rise more than 10% in 2021, following a 5% rate of growth in 2020, according to a recent Redfin report. Zonda is calling for a 12.6% increase in single-family home starts in 2021 over 2020. NAHB predicts we will continue to see gains but at a more modest pace than the others are predicting.

Since mid-April, the composite price of lumber has soared more than 160%. This surge is adding approximately $16,000 to the price of a new single-family home, according to the latest NAHB economic analysis. The Commerce Department’s action to reduce duties from more than 20% to 9% on softwood lumber shipments from Canada into the U.S. is a positive development, but NAHB says more needs to be done.

An often-cited estimate by NAHB projects that a $1,000 increase in the price of a median-priced new home will price 158,857 U.S. households out of the market for the home. NAHB data shows that 49% of home buyers are looking to buy homes priced under $250,000.

Flight to the Suburbs Yahoo Finance recently reported that demand for million-dollar homes is growing faster than any other price tier in the pandemic-driven U.S. housing boom. Even luxury sector builders and buyers may find suburban lots more enticing when they add together soaring urban lot prices and the added cost of delays in some of the larger

The housing market will continue to be buoyed by

cities. Locally, for example, many complaints have been launched about the 12 weeks

historically low mortgage rates, according to Redfin,

it can now take to get a building permit in the City of Dallas. By the second quarter of

which predicts that the rates will rise slowly from 2.7%

2021, Dallas says it hopes to get the entire permitting process closer to that of other

to around 3%. FHA recently released its 2021 loan

cities—a matter of two or three weeks.

limits, which increased to $822,375 in high-cost areas and $356,362 in low-cost areas — the highest they’ve

With many new homebuyers now doing at least some of their work from home, many

ever been.

of them are expected to be more eager and able to buy homes in suburban and rural areas. New home sizes also appear to be on the increase after years of decline, another

Positive Projections Could be Threatened by Rising Home Prices With high demand and low inventories of lots and homes for sale. analysts say that robust activity will drive home prices up more than 5% on a national

reason that some buyers may be “looking further out.” Redfin’s national statistics say that more than 14.5 million Americans will migrate across county lines, the highest number since 2004. Truly, markets that offer the best affordability conditions, and thus the lowest regulatory cost in terms of developing new housing, are going to grow the fastest in the wake of the coronavirus, industry experts say.

average in 2021.

Terry Kemmy

The rising cost of building materials is a huge threat to

Publisher

affordability, with lumber causing the most concern.

210.844.1542

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[industry news]

Tips for

Growing Your Homebuilding

Business The homebuilding world is competitive. To stay ahead in the game, you need to be thinking about how to grow your homebuilding business. However, running such a business involves keeping many plates spinning, so it can be challenging to understand exactly how to do this. Growing your business isn’t just about finding more sales. You can employ many strategies to help your homebuilding business flourish. Here are our top six tips on how to grow your homebuilding business:

1. Analyze Your Current Business Model

By Scott Whisenant

Once you have a clear picture of your

You must understand your current position before you can move forward. Where does your business sit financially? How is your pipeline looking? Furthermore, what kind of feedback have you been receiving from customers and staff?

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business, you will be able to identify areas that need improvement. Start working on bettering these areas and your business will naturally improve and can begin to grow.

2. Become a Specialist Customers are always willing to pay extra for niche experts. If you find you’re building one type of home more than others – luxury custom homes, for example – concentrate on establishing

Scott Whisenant is the VP of Sales for StrucSure Home Warranty. He

yourself as an expert in this area. Clients who want a specific type

joined StrucSure in 2010 and has been highly involved with numerous

of home will look to you first if you’re a known expert.

homebuilder associations across Texas. Scott has received multiple industry awards (including the “Associate of the Year” Award in 2016 and Associate Legend of the Year in 2017) and is a member of StrucSure’s

3. Build and Maintain Your Network

Million Dollar Club. Scott’s hands-on approach and commitment to service

You will already be familiar with working with other homebuilders

are highly valued by builder members across the state and are shown by

to complete your projects. It’s essential that you build on this

their advocacy and loyalty.

network. Become known among your network as a reliable and trustworthy individual. Reputations are spread by word of mouth,

Scott Whisenant

so if you have a great reputation, people will recommend you and

Vice President of Sales, Central & Southwest Texas

help you grow your business.

830-624-4450 | swhisenant@strucsure.com

4. Focus on Great Service Customer service can make or break a business. Ensure that yours is top-notch. Remember that your reputation will precede you, so

StrucSure_BuildingSavvy_March2021-2.pdf

if you’re providing your existing clients with a five-star experience, potential customers will be more likely to want to work with you.

5. Market Yourself Proactively It’s cheaper and easier than ever to market yourself. Get active on social media, share your homebuilding stories, give useful tips and advice. Write blog articles with valuable content that will draw people to your website.

6. Offer a Home Warranty

C

M

Y

Make sure you’re providing a home warranty with each home you sell. This not only protects you financially from any major structural defects that occur in the home but also protects the

CM

MY

CY

CMY

K

homeowner. Home warranties give everyone an extra layer of confidence and trust in the homes you build. Now more than ever, homeowners want security in their investment and appreciate the assurance of warranty coverage. Providing home warranties like those offered by StrucSure Home Warranty is a cost-effective way to ensure your homes are sold more quickly and for a better price.

When considering how to grow your homebuilding business, the important thing is not to rush. Concentrate on giving your buyers the very best service and products. By making this a consistent strategy, the rest will fall into place.

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1

1/11/21

9:01 AM

[focus section]

Learn from the Past,

Rejection of Supersized American Culture It’s true that millennials witnessed all the remodeling activity and tear-downs to undo an era where eclectic style got so out of hand that elements of Victorian, Colonial, French Eclectic, and Federal architecture were often combined together into a hodgepodge.

McMansions became the term used to describe the homes built in an embarrassing decade or so of architectural history in some of our cities. Millennials were taught that waste is a sin, and we

Look to the Details to Precisely Nail Curb Appeal

have to agree, even though some of those mistakes have made a handsome living for the remodeling industry in the 21st century.

A rejection of supersized American culture began to develop in the early 2000s. Enter the Tiny House. Cheers to the young generation who at least owned some kind of real estate. But now, the millennials are getting to the age where they have more responsibilities, and they need way more space.

To address

affordability issues as single-family home prices continue to rise, you’ve seen most of the production builders offer a townhome

By Beverly Smirnis

product. It’s perhaps here, in the townhome realm, that we may most start to see the resurgence of traditional styles. (Think historic brownstones.

Millennial homebuyers are better Modern and Iterations of Modern Express a Changing World

read and educated, or at least consider themselves to be, and will

Combine the rise of the smart home with resistance to clutter

jump on an opportunity to tell you so.

home design phase, which has been in vogue for some years

So what are they looking for? Where

to some while others dub the trend as “a gray, colorless, catalog

and ornamentation and we ushered in a minimalistic modern now. Simple, square horizontal and vertical elements are still chic

do the trends stem from? And what is

look.” In an attempt to warm up and personalize things a bit,

next on the horizon?

Modern Farmhouse, the latter popularized by HDTV to such an

we have explored Hollywood Glam, Midcentury Modernism, and extent that we all had to take notice.

Make an Authentic Statement So, the answers to the questions posed about what’s in, what’s out and why, are a bit unclear. Just pick your style and get the style-defining details right—rooflines, entries, and porches—to create the intended architectural style, and you’ve got curb appeal that will entice the buyers in! Home visualization tools and 3D modeling are widely available and worth the effort to ensure a great end result.

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Pay close attention to the home’s entrance, where the specific roof,

After considering style and performance qualities, look to the user-

eave, and overhang treatments are clearly visible; focus here on your

friendly aspects in narrowing down your final roofing choice. Partner

opportunity to define the style. The front door should always make

with a manufacturer offering install methodology that cuts labor

a statement. Think of the porch as its picture frame, but way more—

time. Ask about sealants applied to bottom edges to protect against

be sure the porch serves a purpose in being usable, large enough

wind uplift, and about energy-efficient matting material that is used

for seating, a porch swing, etc. Spend extra money and attention on

underneath.

windows and front-facing garage doors.

Choose Durable Products and Think Outside the Box Brick Industry Association (BIA) member manufacturers say white and limewashed exteriors are the latest and lend themselves to all styles.

Painted brick is also becoming regionally popular. The BIA concedes that mixed materials are super hot—combine brick with metal, steel or glass, and especially wood. This has made siding that looks like wood a huge focus. Fiber cement, engineered wood, and composite panels are some of your options.

But beyond the norms, there are a number of other options emerging for wall cladding. Consider Arcitell’s patented fiber-reinforced polymer panels providing a wide variety of aesthetics from traditional looks like stone, brick, and cedar to contemporary looks like metals, tile, and marble. Or check out architectural-grade zinc cladding panels, offered

by Rheinzink America, that can be used for roofs (including a standing seam option), but also for wall cladding. When zinc is exposed to the moisture and carbon dioxide that is present in our atmosphere, a

DAKO HarmonyLine Window and Door Joinery Sets offer a contemporary

protective layer of zinc carbonate forms on its surface, prohibiting the

set of windows, doors, gates, and roller shutters to make essential

corrosion process that steel experiences. The resulting zinc-carbonate

elements match beautifully.

layer creates a beautiful bluish patina for a very desirable appearance.

Be sure to compare the fire rating, wind load performance, impact resistance, and insulating value in deciding between the many available options in cladding products.

Top it Off with The Right Roofing Choice There are many reasons to consider asphalt or synthetic shake shingles.

They can offer the look of wood shakes or slate at a lower cost with greater durability and are available in two-piece designs offering depth, dimension, and variation that make it hard to distinguish the substitutes for the real thing. Many manufacturers now apply both a permanent primer and a durable topcoat to their shingles, under ideal factory conditions and with controlled drying and curing, making them resistant to fire, moisture, and algae.

Concrete roof tiles are another premium option. And now, advanced digital printing technology creates another option—porcelain roof tiles.

Classic Craft® Visionary Collection™ walnut-grained flush fiberglass

Metal roofing products with “cool chemistry” finishes that reduce energy

doors walk the line between retro and contemporary while embracing

bills while negating mold or algae growth are also popular and in keeping

minimalist details on a premium scale.

with some of the current home designs.

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Glen-Gery, one of the largest brickmakers in North America, has launched

Fortress Building Products’ Apex CBPVC cladding features a bamboo

its very first ceramic façade cladding system, Terraçade. Driven by both

cellular PVC core that allows for minimal expansion and contraction.

performance and design, Terraçade products are made from natural clay

Each board undergoes a proprietary tri-extrusion and dual embossing to

material that is highly durable and energy-efficient.

emulate the appearance of hardwood.

The Bottom Line: Meyers Research says that buyers rank curb appeal second only to interior lifestyle design in their list of priorities for a new home. Keep studying the millennial buyer and never tire of learning their mindset. The main point is that they seek clearly recognizable and authentic design; let them argue amongst themselves about which one is the best. Just be sure to do your job in nailing the intended style to a tee.

Beverly Smirnis is the co-founder of Building Savvy magazine and publishes its flagship Dallas/Fort Worth edition.

She and her business partner and

husband, Steve Smirnis, have served as judges for the International Builders’ Show Best of IBS Awards and judged numerous homes for builders association parade events across the country.

New black soffit from Royal® Building Products creates a distinctive accent for the modern farmhouse.

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[savvy finance]

March 2021 Building Savvy PPP Expenses and Other Last-Minute Tax Changes

By Steven Bankler, CPA

mile-by-mile deductions in some cases, so if you deduct QTF benefits, take a good look before filing taxes. Changes include a further

The curtain may have closed on 2020, but the 2020 tax season is still

simplification of the rules regarding mixed parking expenses, de-

in full swing. Chances are your tax obligations will be different this time

ductibility in how employees travel between a residence and place of

around, thanks to the pandemic. From PPP and other relief loans to

employment, and COVID-19 factors that affect peak demand during

changes in deductions, be sure you’re taking every opportunity you can

federally declared disasters..

to save on both your business and personal taxes.

PPP Expenses

Qualified Opportunity Funds (QOFs)

If you took a PPP loan in 2020, here’s a vital development from the most

If you’re invested in Opportunity Zones (economic development

recent stimulus package: You can deduct business expenses paid with

projects in distressed areas), take note: Qualified Opportunity Fund

the funds 100%, even when the PPP loan has been forgiven (or you ex-

(QOF) owners are being asked to correctly self-certify on an annual

pect it to be forgiven). What’s more, owners of pass-through entities can

basis. Failing to do so could result in audits for both the QOF owners

receive a basis step-up in their stock/partnership interest for any tax-ex-

and their investors. Be on the lookout for a Letter 6251, Reporting

empt income from a forgiven PPP loan. .

Qualified Opportunity Fund (QOF) Investments, for an indication your QOF investment needs review.

New Forgivable Expenses

Like-Kind Exchanges

The package also expands four categories covered as part of approved expenses, including certain operational expenses, property damage,

Final rules were released in November addressing the definition

supplier costs, and personal protection equipment (PPE). But, just like

of real property under section 1031 and the receipt of personal

before, PPP borrowers must spend at least 60% of the funds on payroll

property that is incidental to real property received in a like-kind

over a certain period of time.

exchange. According to the IRS, real property includes “land and generally anything permanently built on or attached to land.” It can

Charitable Extras

also include property that is characterized as real property under

If you were a generous giver in 2020, the federal government wants

applicable state or local law.

to reward you. C Corporations can apply an increased limit of 25% of

Additional changes affect safe harbor 401(k) and 401(m) plans,

taxable income for qualifying cash donations made in 2020 (the limit is

403(b) retirement plans and custodial accounts, and tax payment

usually 10%). Individual taxpayers who use the standard deduction can claim an “above-the-line” deduction of up to $300 for cash contributions made to qualifying charities during 2020, too. Individuals who itemize

agreements. There’s still time to strategize around many of these changes to reduce your 2020 tax obligations, but the clock is ticking.

may claim up to 100% of their adjusted gross income in 2020 (limits Steven Bankler has more than 44 years of experience in the accounting

usually range from 20% to 60%). .

industry. Steven’s expertise lies in consulting, planning, tax, and asset

Transportation Fringe Benefits

protection as well as exit strategy services for closely-held businesses.

One of the more confusing changes enacted with the 2017 tax overhaul

He also provides litigation support (both as a testifying expert witness

was the disallowance of certain qualified transportation fringe (QTF)

and a consulting expert), business negotiations, and estate planning.

benefits employers have learned to know and love. Final rules were

Visit www.bankler.com for additional tax strategy tips and to learn more

announced in December that answer many of the questions employers

about Steven Bankler, CPA, Ltd.

had. Those clarifications nail details down to exact parking spots and

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[savvy spotlight]

Roddis Lumber Savvy Partner Spotlight

By the 1960s, Roddis has grown to several branches all over the country. In the latter part of the decade. Family ownership of Roddis sold off various branches in multiple states to buy out shares of the company from Weyerhaeuser in order to focus on one distribution area – southcentral Texas. Roddis has been serving the San Antonio area ever since with both wholesale hardwood and plywood distribution, as well as door mill manufacturing services. In fact, Roddis currently supplies an area that stretches from Temple to the Rio Grande Valley.

an idea.

In 1920s Kansas City, Roddis Lumber & Veneer company was created in a moment of opportunity. A local

railyard in Kansas City had gone bankrupt, stranding a shipment of plywood. Roddis Lumber distribution was born when company pioneers convinced the supplier to let them

“

“We have the ability to make our own decisions and move to different product lines because we are small and family-owned,” says Bob Weaver, the fourth generation of family leadership and current Vice President. “It’s a more personalized experience for the builders we work with. They know who they are talking to when they call us.”

sell the stranded plywood on consignment.

The partnership was a success and proved to be a profitable, long-standing relationship.

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“

i

It all started with a stranded car and

Roddis focuses on providing interior and exterior finish-out, including

complete control to get our jobs finished. But until that happens, I’m at

door packages, built-in shelving, closet installations, stairs, railing,

the mercy of the supply chain, just like everyone else. Lead times and

and more. The company currently partners with high-end custom

delivery dates are an important part of business planning. At Roddis

builders such as Garner Homes, Dale Sauer Homes, Maggie Merritt

we have partnered with suppliers from which we expect the truth

McCarthy, Williams & Hirsch, and Trinity Custom Homes.

about market conditions, in turn, our goal is to be as transparent as possible with our customers.”

Custom home builders today have a lot of options when it comes to

“We are very lucky in our region to have a strong demand for custom

finding vendors of various products, but using a locally owned and

home building,” Weaver adds. “As homebuilding expands in the Texas

locally focused company can lead to a better building process. Roddis

Hill Country, we are positioned to be a key provider of some of the

Lumber is anchored in our community and provides finish out options

products and features that today’s buyer demands.”.

at all price levels, which gives your customers more options to choose from. This helps them connect with the building process and puts them in the driver’s seat – which is a key part of owning the customer

Bob added that due to current events, COVID-19, etc. that business

experience. Give Roddis Lumber a call today and see the difference.

as usual has dramatically shifted. Extended lead times are coming into play; freight is harder to obtain; material prices have escalated,

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[savvy Designer]

Designer Extraordinaire

Lara Miller LLB Interiors

A

s a young art student in college, Lara Miller dreamed of getting a teaching degree and working with future artists and designers. Then one day 34 years ago, while accompanying her mom to an interior design appointment, everything changed. Lara’s mom was getting a custom home built in a new neighborhood (at the time) called Shavano Creek. The builder offered an interior designer to assist with the selection process, which at the time was not a common practice at all.

“I had no idea my destiny would be this type of business,” says Miller. “I had an eye for color and rearranged my room constantly when I was a child and that is why I ended up there with my mom sitting in on a select meeting. The light went on right there for me, and I knew immediately I wanted to work as an interior designer.”

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Lara changed her major from art to interior design, went back later to complete an internship with the same designer and upon graduation was hired by her as an assistant designer. “That selects meeting with my mom and the designer completely changed my life.”

In her 30-plus years as an interior designer, she has seen her industry grow and change and adapt to the economic climate in ways she never would have imagined. There were very few big showrooms; limited countertop and flooring choices; no social media; precell phone days meant using pagers, etc.

“I have since grown my company and created detailed Excel spreadsheets that included select packages and programs and specific timelines that I have seen implemented by other fellow designers. My first retail storefront and builder design showroom started out at 1100 square feet and within a year grew to three times that size, with several new designers on board! At one point, LLB Interiors was one of the largest distributors of wallpaper and we handled close to 10-12 builders and designed homes and set up builders along the coast with wallpaper and a custom select showroom in their models.”

She eventually outgrew her studio again, brought on more designers, and started working with design interns from the Texas State University, St. Mary’s University, and St. Philips College. “I became a by appointment only firm at this location and pushed my flooring installation company hard! I installed not only wallpaper for my builders but also all their flooring

Miller has received multiple top honors and accolades over her distinguished design

over the years. I would have anywhere from 300-600

career…from Parade of Homes awards to People’s Choice, Best Interior Design Awards,

houses a year with now handling 20 plus builders, all

etc. She’s been cited in numerous local publications including the inaugural issue of “Most

their clients, spec homes, model homes, and Parade of

Inspiring Women” of San Antonio, and “Top 40 Under 40.” Lara also stayed involved with

Homes houses. It was a crazy time, but thankfully my

the local community, serving as a design consultant on a Habitat for Humanity project;

staff and interiors were the best.”

and the lead designer for the Wounded Warriors Family Facility.

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Here’s what some of her associates, partners, builders, and friends have to say about Lara Miller : “She’s great to work with, very insightful. Her design on my parade home has been a huge plus in keeping the job moving forward in a timely way. Lara often takes her work a step further than others in that she’ll meet with the tile setter to ensure a bathroom gets completed the way she’s envisioned it. She takes nothing for granted when it comes to completing a job the way she meant it to be executed.”

– Ryan Murphy, Evolutionary Homes “I’ve worked with Lara on several homes over the years. She’s very talented, very creative.

She’s a leader in new design for sure.”

– Jerry Smith, Blanco Valley Homes “Lara has worked with us for at least 30 years. She’s got great attention to detail, and an excellent vision, and an understanding of each overall job, and how everything is supposed to work together. She’s great to work with!

– Ryan Hampton, The Front Door Company “She brings an unparalleled level of experience and is extremely creative. Each house she takes on is a unique assignment to her as she is adamant about not getting too comfortable with one style. Lara is well versed in a variety of styles and she has a knack at connecting with the homeowner as to what works best for them. She has such a keen eye and adds so much to the plan development of each home we work on.”

– Maggie Merritt McCarthy, Merritt Custom Homes “In all, over these many years, I have been a part of massive changes in this industry,” she adds.

“She’s got a great eye for design. The homes we’ve used her on have all sold very quickly.”

“The versatility a designer must have to complete her business and grow today…wow! I

– Corby Walker, San-Tex Homes

personally would have never dreamed I would be able to accomplish what I have…but it was “I have fun working with Lara, and I can’t

a true labor of love.

“It was the best of times, and I now have chosen to slow down this crazy design life of mine.

I have so many experiences to share and I love sharing my wisdom with new incoming designers too! I love seeing all my fellow designers grow and go thru the challenges I did and come out on top. There’s so much more to keep up with today because of the sheer magnitude of products, and options, and platforms to work. It’s nearly endless of what you can offer a client.”

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say that about everyone else. She’s very passionate; very thorough; her selects are spot on. Lara just brings a lot of positive energy to work, and everyone around her picks up on that.”

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[savvy trucks & toys]

Chevy’s Truck Marketshare and EV Pioneer Will Be Key to the Brand’s Outcome in the Looming “Survival of the Fittest” Battle

By Beverly & Steve Smirnis

« The Chevy Bolt bridges the gap with an EV that is affordable and long-range. »

equipment while being just two levels up from Silverado’s basic work Over a century old, Chevrolet became the best-selling auto brand in the U.S. and the largest contributor to General Motors’ revenues, eventually transitioning from an American icon into a worldwide power brand. Now, facing competitors that have been around as long as it has, as well as

truck (WT). This level added four-wheel drive, a 2-inch lift, and other off-road upgrades. The 420-hp 6.2L V8 engine was an option on our tester as were off-road assist tires and a spray-on bed liner. All in, its price was $49K.

new competition from automakers like Tesla and Rivian, GM knows it will

Also, key to GM’s survival over the next century will be its ability to

have to fight to maintain its brand legacies and stay in its position as the

compete in the coming onslaught of all-electric vehicles. A recent

nation’s largest legacy automaker.

article by Reuters says 2020 was finally a tipping point for EVs, as others reacted to Tesla’s significant rise in 2020 market share.

W

ith full-size pickups currently representing a $125 billion industry and comprising about 80 percent of the U.S. market, it is vital for GM to make sure its Chevy Silverado and its GMC Sierra continue to hold their share of the

market, which combined, represent a 37 percent share, according to Forbes economists.

The strategy for Silverado has been giving customers a lot of choice with regular, extended, and crew-cab styles available with short, standard, or long beds. There are five engine choices: including a V-6, « The 2021 Chevrolet Silverado 1500 offers a truckload of new

a turbocharged four-cylinder, two V-8s, and a Duramax diesel 3.0-liter

mechanical and technological updates, including the addition of

inline-six. Additionally, there are eight main trim levels to choose from.

an available Multi-Flex Tailgate. »

Our tester, the Custom Trail Boss, included much in the way of standard

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GM touts its Chevy Bolt as the vehicle that finally bridges the gap

There’s work to be done before we’ll see electric models that match the

between long-range and expensive EVs, and the more affordable end

upfront costs of their naturally aspirated counterparts. Car and Driver’s

of the spectrum, where range has been a limiting factor. The 2020

ownership cost comparison was a three-year analysis challenging the

Chevy saw a 10% increase in capacity to 66 kWh, ramping its range

claim that in spite of their higher purchase price, electric vehicles are

up to 259 miles.

cheaper to fuel and maintain, and thus cheaper to own and operate.

Their conclusion: In one test, the gas vs. electric comparison was a

Our recent Chevy Bolt test vehicle was quick and quiet and spacious,

wash; in the other, the electric was more costly than the gas version. Only

given its compact size. Sporting the upgraded Premier trim level

with $7,500 in state and local purchase incentives factored in would the

automatically added the Comfort and Convenience package, plus

lower cost of ownership argument prove true on the first comparison,

surround-view parking and high-definition rearview camera. Options

while only bringing the electric model in line with the gas model cost

totaling $2,235 included fast-charging provisions, an upgraded

in the second comparison. With competition comes innovation, so it

infotainment package, a driver confidence (safety feature) package,

is predicted that the upfront cost gap will soon be resolved as virtually

and Cajun Red paint, putting the price tag a little over $44k.

every player in the automaker realm has now put a priority on making electric vehicles.

The Bolt is an early pioneer in GM’s plans to overhaul 40 percent of its lineup and invest $27 billion to introduce 30 electric vehicle models by

We pray that the Big 3 fare well in the battle ahead!

2025 across all of its various brand names. The EV variants of Cadillac will show what GM is capable of in competing with Tesla in the luxury EV segment. But perhaps even more significant is the reintroduction of the GMC Hummer as “the world’s first all-electric super-truck.”

Futurists say it will be just as essential for legacy automakers to take action if they intend to compete in the coming wave of electric pickups.

Beverly & Steve Smirnis are members of the Texas Auto Writers

Newcomers like Michigan-based Rivian are making waves in this side

vehicles and casting their votes at driving events where the Truck

Association and the Texas Motor Press Association, reviewing

of the race, too. The Rivian R1T truck will arrive this summer. Telsa

of Texas, Car of Texas, and Off-Road Truck of Texas are some of the

is on the offense with its Cybertruck. But Bloomberg analysts say GM

titles awarded. Follow their automotive blog on TheSavvyList.com/

and Ford will have the advantage in rolling out their big artillery in the

TheSavvyDriver

race to EVs. Ford introduced a hybrid powertrain to the 2021 F-150 and plans to introduce the F150 Electric in 2022. An all-electric pickup is part of GM’s 2025 plan.

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[Savvy Special Report]

Many “Firsts” for The 2021 International Builders Show (IBSx) and its 2021 New American Home® The 2021 New American Home,™ built for the 2021 International Builders Show in Orlando was the third New American Home built

by Phil Kean Design Group.

Kean was also the contractor for the 2020 New American Remodel last year in Las Vegas.

T

he three-level 2021 New American Home is a noticeable departure from Kean’s 2017 and 2012 New American Homes. The differences are not only limited to the fact that most of the visitors to the home toured it, and the rest of NAHB’s International Builders Show, virtually. Another

difference lies in the fact that previous New American Homes, built by Kean and other superstar builders over the past 38 years, typically sprawl across generously sized lots in luxurious suburban single-family home neighborhoods.

The 2021 New American Home is part of an urban luxury development of seven high-end custom attached and detached townhomes built on a redeveloped parcel of land in Winter Park, Florida. More than 100 restaurants and shops are within walkable distance, and a commuter rail station is half a mile away. What can’t sprawl goes vertical this year. Each floor of the 5,536 square foot detached townhome offers a unique living experience.

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The ground floor includes a three-car garage, a guest bedroom with an ensuite bath and office, and a dog room. Take the floating spiral staircase or use Garaventa’s home elevator to access the other floors. The second floor is the dedicated owner’s suite, with a large master bedroom and a spa bath that connects to a boutique walk-in closet. A lounge with a walk-out balcony, the main laundry room, and an exercise room with its own ensuite bath are also found on the second floor. Soaring 14’ ceilings are found throughout the third floor, built for home entertainment with a great room, music niche, and state-of-the-art kitchen featuring Signature Kitchen Suite appliances; Plato and Wellborn cabinetry, Kohler plumbing fixtures, and LG Hausys quartz countertops are featured throughout the home.

A large outside terrace with a summer kitchen overlooks the treetops from the top floor. It features a Struxure louvered roof system, Phantom Screen retractable motorized screens, a Fire Magic Black Diamond grill, and Brown Jordan Elements cabinetry with Cosentino Dekton tops.

system constantly monitors the indoor air quality within the

The construction team members say that the process of building this year’s New American Home during the pandemic taught them a host of new things and further sharpened their skills on tried-and-true materials and methods and opened their eyes to the capabilities of the industry’s

home and automatically activates the system to bring fresh air in and pull out VOCs, fine particulate matter, carbon dioxide, and humidity when levels go below normal.

Mitsubishi’s Ducted Mini-Split HVAC system operates in tandem

most advanced new building products.

with the Cosmos system and LG rooftop solar panels earn the Concrete masonry units were used to build the structural shell. Laticrete MVIS Air & Water Barrier was spray-applied directly to the CMUs to create a seamless barrier that a variety of cladding finishes can be directly

home a Green Building Certification. The system has no HVAC air handler closets, thus freeing up more available living space, which is a huge bonus in urban development. Using short-run, low-profile ductwork, the horizontal-ducted units are hidden

applied to. Not only does the Laticrete product block moisture vapor

above in the ceilings with drywall access panels allowing easy

and water, but it’s also nonflammable, low-VOC, and contains Microban antimicrobial technology. Prosoco R-Guard FastFlash was used to create a durable, weathertight seal at critical junctures where dissimilar materials meet.

accessibility. The system automatically changes between cooling and heating modes to maintain consistent temperatures.

Other innovative products used for the home include Sharkbite’s EvoPEX push-to-connect plumbing system and their new

Other products used to achieve the home’s ultimate energy efficiency rating include Fi-Foil FlexFoam, installed behind the drywall furring strips on the inside of the perimeter masonry walls. Next, a layer of Fi-Foil’s

StreamLabs Control smart water shut-off valve, and OmegaFlex’s TracPipe CounterStrike flexible gas piping with its AutoSnap fitting. Enovative Group’s AutoHot hot water recirculation

M-Shield was added for extra insulation. On the frame walls, Demilec spray foam insulation topped with Fi-Foil’s HY-Fi hybrid insulation system.

system will work with the Rinnai tankless water heaters to provide on-demand hot water throughout the home. Eaton smart

HY-Fi works together with traditional mass insulation to increase thermal

fixtures are featured throughout from the outlet receptacles to

resistance by adding reflective insulation that is designed to reduce

the circuit panels and Control 4 takes the smart house to an

radiant heat transfer. It achieves a higher overall R-value while reducing

ultimate level.

the amount of traditional insulation required. Demilec was also used in between the floor systems and attic space to ensure a very insulated shell prior to drywall. Finally, Aerobarrier, an innovative air sealing technology,

Visit tnah.com to takes a guided virtual tour of the finished 2021

was used to seal around the air ducts and vents.

New American Home and view in-progress construction videos.

A Panasonic Cosmos Healthy Home System helps maintain a healthy indoor air environment. Using carefully placed sensors, the Cosmos

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Building Savvy

[bestPractices] practices] [Best

No One Is Immune from

Cyber Attack Protect Your Business with Insurance and Best Practices

By Colby Duke, Hotchkiss Insurance Agency, LLC

It’s generally a great

Taking necessary measures to protect your own proprietary business information and your employee’s private information is not enough. All the parties that you subcontract with may have granted you certain accesses to their data and vice versa, they may have information on or access to data on you and your clients that puts you as well as all the other parties at risk.

thing that so many aspects of the homebuilding industry are moving online, and

The cyber attack on Target that made headlines a few years ago is an example of one party unknowingly causing risk for another party. While internet-connected HVAC systems seemed like a revolutionary way that Target could save on energy consumption across their massive retail network, the HVAC company that Target hired for the monitoring turned out to be the reason for a breach resulting in the theft of data on an estimated 40 million debit and credit cards. By stealing log-in info giving the HVAC company remote access into Target’s network, the thieves were able to gain access to Target’s payment systems. Thankfully, before the hackers dis-

we’re able to store more information in digital formats. But along with progress also comes increased exposure to cyber risk. It’s safe to say that in 2020, no one will be protected to the level that they don’t need cyber-risk coverage as part of their business protection plan.

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Building Savvy

covered it, a smart-home services provider was spared from a potentially disastrous breach of sensitive information. The provider allowed users to remotely control smart devices like light switches, outlets and video cameras without any kind of password protection to protect address and other sensitive information that could have compromised their clients’ security in many different ways.

a few years ago, and the hackers are getting craftier every day. I personally have a builder client who reported that his payroll manager received an email (which looked to have been sent directly from the CEO’s email address) asking for a wire transfer to be sent.

Fortunately, she was wise enough to be suspicious about it. Credential harvesting using legit user ID’s and passwords has become all too common.

The lessons learned from the above examples illustrate that even large enterprises often grant remote access rights to software, hardware, and numerous other vendors and external third parties without putting measures in place for ensuring that the access is properly authenticated and secured. Small local businesses are even less likely to be prepared, yet none of us are immune from attack. As a builder, you have access to a wealth of information that hackers would love to get their hands on. You collect personal and financial data on your clients and potential clients. If you pay your vendors and suppliers online, you have information to their bank accounts and payment systems.

We can’t anticipate everything these criminal masterminds might do next, but we can and should provide ongoing employee education about best practices. Teach your team about good password hygiene. Be sure you have data backup and software updates/ patches are current.

For adequate protection, you’ll want to find a cyber risk policy that protects you against both first-party and third-party cyber liability. Think of first-party cyber liability insurance like your property protection insurance on your office building; it protects your business against the financial and loss of business impacts of data breaches and cyberattacks. First-party cyber security claims could be filed when someone maliciously destroys your data, plants a virus on your hard drive, floods your bandwidth to cripple the business, or captures data and tries to hold it for ransom. First-party coverage also protects against accidental data loss, including employee error and things like a power surge or natural disasters that could wipe out your data. Third-party insurance is like general liability insurance covering legal expenses that could result from your firm being blamed for causing another firm’s cyber losses.

Cyber security isn’t just for tech companies or financial giants. It’s an essential part of any home builder risk-management strategy.

If your employees are accessing data from a mobile device, a basic best practice would be to use encryption software on your company’s network and require that employees have their device password protected. It is equally important to ask your vendors and suppliers to attest to their company’s security measures and be prepared to provide documentation.

Your cyber-risk coverage should include legal fees, forensics, notification and call center costs, credit monitoring fees and the possible need for public relations services. Many providers now have a specialized incident response team and experienced claims representatives. Having these individuals as an extension of your team can be invaluable. Be sure you’re working with an agent and a provider as well as an attorney that pays close attention to the changing regulatory landscape for breach notification laws.

While insurance is a vehicle for reducing your exposure to risk, the best plan of action is to avoid the potential risk in the first place. Our world is a different place than it was just

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