Building Savvy May 2021

May 2021

San Antonio’s Homebuilding Industry Publication

Evolutionary

Homes

Ryan Murphy, Deron Stadler and

Nathan Murphy Emerge as a Formidable Team

PHOTO BY JASON ROBERTS

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Building Savvy

SAVVY’S A-LIST A-LIST SAVVY’S Air Conditioning Architectural Photographer Classic Services AC Jason Roberts And Associates 830.358.1499 210.789.2033 www.classicairconditioningandwww.jasonroberts.biz heating.com Architectural Photographer Building Materials Jason Roberts and Guido Companies Associates 210.789.2033 210.344.8321 www.jasonroberts.biz www.guidoco.com

Building Materials BMC MG Building Materials 512.977.7400 210.623.4770 www.buildwithbmc.com Guido Doors Companies 210.344.8321 The Front Door Company www.guidoconstruction.com

Doors Drywall The Front Door Company R. Hernandez Drywall 210.340.3141 210.733.6437 www.thefrontdoorco.com

Flooring Flooring Sunn Carpets and Flooring Sunn Carpets and Flooring 210.349.7866 210.349.7866 www.sunncarpets.com

Mortgage Company Mortgage Company

Electrician Electrician JPI JPIElectric Electric 210.233.6638 210.233.6638 www.jpielectric.com

Garage Doors Hollywood-Crawford Garage Doors 210.494.3434 Hollywood-Crawford www.hollywoodcrawford.com

Pest Control Accurate Pest Control Pest Control 210.495.0499 Accurate Pest Control www.accuratepest.net

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www.accuratepest.net Plumbing

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Elevators Home Elevator of Texas Elevators 210.340.5702 Home Elevator of Texas www.homeelevator.com

Home Warranties Centricity 727.385.7599 Granite Countertops

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Fireplace Installations Integrity Fireplace Installations 210.294.1383 Fireplace Installations

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Home Warranties Insulation StrucSure Klar Insulation 210.296.5499 830-624-4450 www.strucsure.com

Insurance Hotchkiss Insurance Insulation 210.581.0420 Klar Insulation www.hiallc.com 210.296.5499

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Lumber and Millwork Roddis Lumber Insurance 210.226.1426 www.roddislumber.com Hotchkiss Insurance

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Kendall County Roofing 830.331.2650 Dr.www.kendallcountyroofing.com J. Plumbing Contractor www.dptexas.com

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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]

Legislators Out-Of-Touch With Housing Affordability Issues Realtor.com reported there were

Builders let’s show the feds how vastly our industry has already

50% fewer houses on the market

improved newly built homes and that we’re already embracing

nationwide compared to a year ago.

above building code minimums. Our annual Focus Section on

Recent increases in home finance

Green Building and Energy Efficiency discusses just how far we’ve

costs — albeit small so far —throw

come. Truly, yesterday’s green building is already today’s standard

another wrench into the affordability

and the bar continues to be raised—which is great as long as it

equation, notes CoreLogic, reporting

doesn’t further fan the flame on affordability.

that increases have added almost

Lumber price spikes are now reported to have added as much as $24,000 over the past 12 months to the cost of building an average new single-family home. And lumber is just one of the front-end issues that builders struggle with. Prices are volatile across a host of building materials including gypsum, ready-mix concrete, interior doors, shingles and cabinets. Now home completion schedules and closings are being delayed by the inability to get appliances.

$70 a month to payments on a

Terry Kemmy

$300,000 home loan. Meanwhile

Publisher

appraisal standards make it difficult

210.844.1542

to recognize the full impact of sharp increases in the cost of building materials plus the added cost of carrying costs due to time delays.

It seems like an inopportune time for the federal government to discuss adding more to the cost of owning a home by suggesting that a solution for climate policy change is to ban natural gas in new homes. While NAHB already shows that 75.1 million households in our country are not able to afford a median priced new home, and more than 150,000 people are priced out each time costs go up by $1,000, our Savvy Special Report shows such a move would add at least $4K to houses in our area. It’s time for legislators to wake up to the fact that housing has always been an important driver of the economy, not to mention that the American dream of homeownership is even stronger post-pandemic.

Let’s not upset the apple cart!

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[industry news]

By Jim Leonard

LUMBER LUMBER PRICES PRICES

Out of Control

I

n the past year, lumber prices have soared to levels never seen before, leading to the average price of lumber adding $24,000 to the cost of a new home per NAHB reports. Lumber is traded as a commodity on the Chicago Board of Trade. The index quotes random board length prices. The 52-week low occurred on April 1, 2020 at 259.80. The high occurred on February 18 of this year and was 1004, meaning that prices increased nearly fourfold. As of this writing on March 22, the index stood at 926.00.

But what does that actually mean?

One year ago, the price for a 9’ stud was around $3.50

is used for structural sheathing as well as roof decking.

per stud. Today the price for a 9’ stud was $9.15. The

An average roof will use around 200 sheets of OSB and

average house uses about 600 studs as well as many

the sheathing around the house is around 100 sheets.

other lengths and widths. Even more of an increase

One year ago, a 4x8’ sheet of 7/16” OSB was around

has happened with oriented strand board or OSB. OSB

$11 per sheet. Today the price is about $48 per sheet!

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So what happened and why did prices spike so quickly? During

So how have our trade “partners,” the lumber companies managed

Donald Trump’s presidency, he imposed a 20% tariff on Canadian

through this? Are they sharing in the same pain and reduced margins

softwoods. Canada has long supplied lumber to the US with their

as many custom builders are experiencing? Are they just passing on

bountiful forests. Then, early last year, Covid-19 began to sweep

the pricing they are seeing from the mills and from imports?

through the U.S. Lumber mills temporarily closed due to mask

Builders First Source, in their 2020 year-end financial report, stated

and social distance requirements being imposed. Many mills are

that income before taxes rose from $282 Billion in 2019 to $408 Billion

in the northwest US where the restrictions for work were tighter

in 2020. Earnings per share rose from $1.92 in 2019 to $2.69 in 2020.

than in other parts of the country. The US government launched an unprecedented amount of financial aid to citizens, as the government

BMC, now merged with Builders First Source, last reported in 3Q 2020.

learned many lessons from the financial crash of 2008. Also, millions

They announced record profits to the company in that report.

of workers were ordered to work from home. Schools were closed and

Home Depot reported $17 Billion in pretax income for the year ending

most learning was online. Homeowners were beginning to realize

2020 compared to $14.7 Billion in 2019.

that their current home was inadequate to handle this new lifestyle.

Internet bandwidth was not sufficient for the average home, and

So the big box stores and national lumber companies we all rely on,

they di not support the number of workstations needed at home. So

have been rolling in profits and free cash in the past year as builders

many people looked to remodel their homes, adding home offices,

consider how they can manage to move forward on projects with

extra space, bedrooms etc. This caused a boom in the remodeling

lumber pricing that they may not even be able to pay for unless

business. For those who could not remodel, or felt they could not

they can restructure contracts and budgets that have already been

social distance enough, began to focus on searching for a new home,

accepted by buyers and lenders. It will not be pretty for some of the

driving demand for lumber even higher and creating supply chain

builders.

issues as well as higher prices.

Many financial forecasters state that pricing for lumber in 2021 will be higher than in 2020 overall but will not reach the same astronomical

As recently as late summer, lumber prices had risen but not nearly

heights we saw late in the year and into the early part of 2021. This

as much as they would. Custom builders entered into fixed price

will probably continue to be the major story for builders as the year

contracts with buyers which left them no protection against higher

moves along and we will continue to watch closely.

prices when they finally broke ground on the home. As stated earlier, NAHB estimated that the average house cost rose by $24,000 in

StrucSure_BuildingSavvy_May2021.pdf

lumber pricing alone. On one of my houses, we had a lumber quote of $55,000 late in the year when we began budgeting for this project. We updated the pricing this week and the new price for the exact same home is now $75,000, an increase of $20,000 in just a few months.

So how have our trade “partners,” the lumber companies managed through this? Are they sharing in the same pain and reduced margins as many custom builders are experiencing? Are they just passing on the pricing they are seeing from the mills and from imports?

C

M

Y

Builders First Source, in their 2020 year-end financial report, stated that income before taxes rose from $282 Billion in 2019 to $408 Billion in 2020. Earnings per share rose from $1.92 in 2019 to $2.69 in 2020.

CM

MY

CY

CMY

K

As recently as late summer, lumber prices had risen but not nearly as much as they would. Custom builders entered into fixed price contracts with buyers which left them no protection against higher prices when they finally broke ground on the home. As stated earlier, NAHB estimated that the average house cost rose by $24,000 in lumber pricing alone. On one of my houses, we had a lumber quote of $55,000 late in the year when we began budgeting for this project. We updated the pricing this week and the new price for the exact same home is now $75,000, an increase of $20,000 in just a few months.

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1

3/15/21

3:24 PM

[focus section]

Yesterday’s

“GREEN” is Today’s Standard

By Beverly Smirnis

In the quest for airtightness, finding and fixing

Owens Corning’s Pure Safety High Performance

the big holes is easy; it’s the tiny holes and

was the first insulation to earn and receive the

micro-cracks that can be the biggest challenge.

Asthma and Allergy Foundation of America’s

AeroBarrier is an aerosolized water-based caulk

certification.

that is suspended in the air of a pressurized

guidelines while also achieving a certified

structure; as the air leaks out of the house, the

minimum average recycled content of 65

aerosolized particles collect and consolidate at

percent.

the openings to seal them up.

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It meets USDA BioPreferred

The third update of the National Green Building Standard (NGBS) in 2020, has six green practice categories that align with important areas of sustainability:

1. Site design, preparation, and development For the first time in industry history, consumers are able to monitor the quality of the air they breathe via a smart device application. Cosmos™ sensors placed throughout the home detect pollutants such as VOCs, PM2.5 particulate matter, relative humidity, and carbon dioxide. When any levels

A major goal of the program is to have low-impact development strategies and/ or a green infrastructure designed to handle storm events. Transit features are also important for townhouses and cluster housing.

2. Resource efficiency

are out of range, the Cosmos Healthy Home System will

Required percentages of recycled materials, including precut, precast, and

activate the Panasonic ventilation fans to bring the indoor

preassembled products are specified. Resource efficiency also embraces size,

air quality back to normal levels.

with smaller homes being potentially more sustainable than larger homes.

3. Energy Efficiency Not surprisingly, energy efficiency ranks at the top in terms of expectations with 95% of NAHB SmartMarket respondents saying it is important to them.

Of course, vital factors that ensure energy-efficiency relate to insulation, fenestration, U-factors, and solar heat gain coefficients for exterior doors, windows, and skylights. While foremost on most people’s minds when they think of energy efficiency is impact of these choices in relation to the cost to heat and cool their homes, the cost of heating water accounts for almost 20 percent of most household budgets.

The Styrofoam™ Brand family of insulation products include new lower global warming (GWP) options for 2021, advancing DuPont’s 2030 Sustainability Goals and complying with adopted and upcoming state and regional regulations in the United States and Canada.

Green building features, such as improved lighting, better air quality, and better connection between indoor and outdoor spaces, have been proven to positively impact health and wellbeing—things that are high on the list of just about every home buyer since the pandemic.

A “green” or “passive designed” house doesn’t look different from any other well-designed house. The differences are in the way the homes are built and how they perform. They consume much less heating energy than average new construction and greatly outperform homes built in previous decades. Lower utility bills, greater comfort, reduced maintenance, and ultimately increased value that results in higher selling prices are among the advantages.

Federal regulations require new storage tank water heaters to be more energy-efficient. Although natural-gas water heaters cost more at the time of purchase, they typically use less energy and cost less to run (by about half) than electric water heaters. Tankless (on-demand) water heaters are even more efficient, using heating coils to heat the water as needed. They are best for households that aren’t drawing water for more than one use at a time and for homes that use natural gas to heat the water as electric models may require an expensive upgrade of the home’s electrical capacity. Heat pump (or hybrid) water heaters capture heat from the air and transfer it to the water, using about 60 percent less energy than standard electric water heaters but they can need as much as 7 feet of clearance from floor to ceiling space and up to 1,000 cubic feet of uncooled space to capture enough heat from the air. They also require a nearby drain to discharge the condensate and don’t work well in spaces that get below 40 degrees F. Energy efficiency also relates to lighting. The cheapest energy is the energy we don’t use, and that starts in the design stage with sunlight harvesting for interior illumination. Available technology like daylight sensors that automatically adjust for the light that’s being let in maximize the opportunity.

When and where lighting is needed, LED light fixtures use up to 85% less energy to produce the same amount of light as incandescents.

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Green home plans also utilize passive solar design to increase the energy

compounds (VOCs) is where it starts. A next step is

efficiency of the building envelope, and the use of all types of renewable

adding air filtration to ensure that air is free of pollens and

technology continues to grow. About 25% of single-family builders say they’re

particulates.

using solar photovoltaics and ground-source heat exchange. As demand increases, costs are beginning to decrease, helping to drive the goal towards net-zero homes.

6. The operation, maintenance, and education of homeowners The most recent version of the regularly updated NAHB

4. Water efficiency

book, What Home Buyers Really Want, revealed that 36%

Modern toilets using a fraction of the water as previous models can save

of about 4,000 home buyers polled said they want a

between 55% and 77% of your annual water consumption, offering significant

sustainable, eco-friendly home, but weren’t prepared to

savings on ever-increasing water bills and protecting a resource we all depend

pay a higher cost. This requires that builders be able to

upon to sustain life. Smart lawn irrigation control systems can save an

illustrate that any extra paid now for a home with green, or

average home up to 15,000 gallons of water annually.

zero energy measures, pays itself back in a certain number

Less than half of the 80 to 100 gallons of water that the average American uses per day, is used for cooking or drinking, but most of it is treated, potable water from the municipal provider. Gray or recycled water and rainwater harvesting systems pose a huge opportunity for saving water that if flushed

of years compared to paying less upfront and adding up the ongoing costs of heating and cooling expenses in the same time period. Furthermore, with the costs able to be rolled into a low-interest mortgage, the payback looks even better.

The misperception that a green approach is only suitable

down toilets are used for lawn irrigation.

for high-end projects has come a long way in being negated

Lowering your use of water will also save water heating energy costs.

Consider that standard shower heads use up to 8 gallons of hot, steaming water per minute versus new, low-flow shower heads using 1 to 2 gallons

with a number of national production builders recognizing the need and bottom line impact of their decisions to implement advanced methodologies. Ultimately, yesterday’s

of water per minute. Today’s dishwashers currently use 5 gallons of water per cycle — half the amount of water and energy that standard dishwashers consumed 20 years ago. Soil sensors in most dishwashing machines ensure

“green” is today’s expectation. As the bar is continually set higher to differentiate “green” homes from standard homes.

dishwashers take only as long as they need to clean dishes.

Beverly Smirnis is the co-founder of Building Savvy magazine

5. Indoor environmental quality

and publishes its flagship Dallas/Fort Worth edition. She and

A home that is clean and efficient with less dust is very important to the

her business partner and husband, Steve Smirnis, have served

millions of people living with asthma, allergies and chemical sensitivities.

as judges for the International Builders’ Show Best of IBS

A healthier indoor environment was ranked the second top priority for

Awards and judged numerous homes for builders association

respondents in the NAHB SmartMarket report. Avoiding the use paints,

parade events across the country.

adhesives, sealants, and other building materials that contain volatile organic

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[savvy finance]

Tax Breaks for Reinventing Your Business

B

uilding contractors have rebounded and then some since the pandemic hit. This new demand, though, comes with unique challenges. You may need to train workers

who are new to construction, keep workers safe in new ways, pay more for in-demand supplies and equipment, and find innovative new ways to do business. Each of these activities can hold tax advantages if you know where to look.

By Steven Bankler, CPA

Finding and Training New Workers Even before the pandemic, there was a shortage of workers and a growing skills gap in the building industry. The current job market is helping to fill that gap with a shift of workers from more distressed sectors and a new surge of young adults opting out of expensive four-year professional degrees. But even with the promise of potential new workers comes the expense of attracting and training them.

Look for tax deductions associated with: •

Advertising job openings (including through a job agency).

•

The cost of training workers on the job and in areas like health and safety.

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Keeping Workers Safe

•

overcome project challenges, which may qualify for research

Even as we prepare for post-pandemic work sites, added costs to protect

and development (R&D) tax credits.

workers from infection will be around for a while. Extra personal protective equipment (PPE) like face masks and face shields, cleaning products, sanitizing equipment, signage, COVID-19 testing, OSHA training and more

•

Purchased or rented new or used equipment outside your normal scope, which can usually be tax deductible using a

are expenses that can add up. Check with your CPA for the best ways to

depreciation method or as an ordinary expense (depending on

offset the cost of these essential supplies and protocols. Many can be

the circumstance).

deducted under traditional tax breaks but also through special COVID-19 •

relief credits or Paycheck Protection Program (PPP) funds.

Experiment with the materials or the processes you use to

Tried out new revenue channels with varying tax obligations by working with nonprofits, qualifying for government

Offsetting Hidden Losses

contracts, getting serious about green building techniques, or

You may have experienced losses unlike any you’ve ever seen in the past

crossing state lines for work.

year or so. Aside from direct COVID-19 losses, the tumultuous costs of supplies like lumber and steel may have thrown your bids off. The Texas

Don’t forget to mention each of these changes to your tax advisor.

storms may have damaged sites and equipment in ways you never

You may be surprised how they affect your tax bill.

imagined could happen. It can seem trivial to add up these little losses here and there, especially in years your business income has grown, but it’s important to do so. You may be surprised at how much taxes you can

Steven Bankler has more than 44 years of experience in the accounting

save by getting “credit” to offset your gains.

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

Innovating How You Do Things

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

A highlight of the past year has been watching savvy business owners

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

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

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

reinvent their businesses. In the building industry, that innovation has taken several forms—most of them surprisingly tax deductible. Perhaps you’ve:

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more about Steven Bankler, CPA, Ltd.

[savvy builder]

EVOLUTIONARY

HOMES Brothers Ryan and Nathan Murphy, and Deron Stadler Make a Formidable Team

Evolutionary Homes was founded in 2015 by brothers Nathan and Ryan Murphey. Deron Stadler joined the partnership in early 2016 and between the three partners, they have over 50 years’ experience building residential custom homes and commercial construction. The three partners started the business out of a desire to make the custom home building process easier, less stressful and more transparent for homeowners by combining personalized project management with technology. They readily admit they aren’t interested in becoming the biggest home builder, but simply the best home builder.

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Execution – clients describe specifically their unique styles and tastes; the design team draws it; client approves; and Evolutionary Homes builds it.

Team – their clients expect the very best and refuse to take unknown risks to cut costs.

Close attention is paid to the requirements of time, budget, design, and craftsmanship.

Years of experience have increased their expertise and capacity to integrate state-ofthe-art systems and value engineering, as well as practical solutions to unique, and common design challenges.

“We pride ourselves in building green,” says Ryan Murphy. “We typically guide our homebuyers through design and

Nathan Murphey Nathan worked as a Project Manager for a large custom home builder in San Antonio from 2004 thru 2015. He played an integral role in the success of that builder and throughout the years has maintained a work in progress inventory of $6,000,000 – $10,000,000 at any given time. Nathan is very successful at professionally managing homeowners, trade partners, budgets, schedules, and all aspects of custom home construction. Most homeowners and trades who’ve worked with over the years Nathan will tell you that he is the best in San Antonio.

construction decisions that not only make sense for them, but also to make a difference environmentally. The term ’green’ is often misused in our industry and can mean a variety of things to everyone. We believe building green means constructing a home to a

Deron Stadler

higher standard, for both the owner

Deron graduated with a bachelor’s degree in Construction Management from Brigham Young

and the environment. By making

University in 1995. From 2001 thru 2004 he managed the construction department for a large

practical choices and weighing

custom home builder in San Antonio. In 2005 Deron and his brother started a new custom

return on investment of each design

home company which focused on building custom homes in the San Antonio and surrounding

decision, we can be a steward of your

areas. At the end of 2014, Deron sold his ownership in the company, and in 2015 partnered with

budget as well as our environment’s

Nathan and Ryan Murphey to start Evolutionary Homes.

natural resources.

Ryan Murphey Ryan retired from serving as the Vice President of Facilities & Data Center Operations of Peer 1 Hosting in 2015 after 11 years of service. While working in this capacity, Ryan was responsible for a $75M annual budget to build and maintain data centers and offices for the company in North America and Europe. He was responsible for the build out of new offices and data centers along with the certifications and operations of existing facilities. Ryan has extensive knowledge in commercial construction and information technology.

Evolutionary Homes has perfected the Collaborative Method, and promises each client a “Five-Star” experience. They point to three simple reasons why they can back this up:

Process – clients describe specifically their unique styles and tastes; the design team draws it; client approves; and Evolutionary Homes builds it.

Team – Evolutionary Homes assembles a team for each project, based on trust, in collaboration with architects and interior designers. Only the best sub-contractors and suppliers are hired to guarantee the highest quality building standards and a Five-Star client experience.

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Evolutionary Homes are members of GSABA and NAHB. They built 2019 and 2020 St. Jude Dream Homes for San Antonio and in 2020 they raised $1 million for St. Jude for the first time in the San Antonio market. Additionally they’ve received the 2021 Best of Houzz Service award.

Their subcontractors and partners are extremely loyal. Here’s what some of them had to say: “We’re

extremely

pleased

with

Evolutionary Homes. As a group they have strong qualities. They are very personable and deeply committed to excellence.”

– Kevin Sassin – Parrish & Company “Honesty is the main thing. And integrity.

I’ve known Nathan and Deron for years, and am proud to be a part of their team.”

– Paul Retzloff – Texas Trimline “They really care about the end product for the homeowner. Extremely honest and very positive.”

– Chester Bull – Air Authority “They are the best in the business. As nice and thoughtful as they can be.

Incredibly easy to work with, down to clearly marking the exact drop location for our lumber loads. They always plan in advance and give us a heads up when schedules change or things get shifted around.”

– Steve Carter – 84 Lumber “We always experience direct and clear communication; prompt responses on issues or requests. They handle their business in an exemplary way.”

– Kristina Freres – Raywest Concrete

Along those lines, some of the things buyers will notice with Evolutionary are: •

Hurricane strapping on roofs

•

Full foam insulation

•

High efficiency HVAC systems

•

Smart home technology

“They are some of the easiest, most professional guys to work with. They leave

nothing

to

chance

and

are

meticulous in how they approach each project.”

– Lara Miller – LLB Interiors

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IN C R EAS E D

CO M F O RT

|

I M P R OV ED

ENER GY

EFFICIENCY

|

UPDAT ED

CUR B

A P P EA L

V I S I T G U I D O C O . C O M T O S C H E D U L E Y O U R F R E E R E P L A C E M E N T E VA L U AT I O N

• H IG H ES T QUA LITY PRO D U C TS • IN D O O R , O U TD O O R & S PEC IA LTY PRODUCTS • WO O D - BU R N IN G FIR EPLAC ES • IN S ERTS & G A S LO G S ETS • WO O D S TOV ES

MIKE FASSLER, OWNER | 210.294.1383 | INTEGRITYFIREPLACE@GMAIL.COM 19

[sales savvy]

A Guide To TRAINING SUCCESS I count myself lucky in my life to have earned my living in the construction business for over 40 years now. That’s not counting all the years working for my dad for what I thought was free in his cabinet shop. Most of my

By Paul Evans

career has been on the sales side of the world, from inside sales rep (ISR), outside sales rep (OSR) or sales manager. I have enjoyed great success, but I truly believe there are plenty of people out there that are better than me at many things, and I believe my desire to continue learning is the real key to my success.

Though sometimes we salespeople get viewed as just a step above or below a used car lot salesman, the truth is, we are all salespeople.

Everyone needs to be a salesperson every day in this business, promoting yourself and your business. And in my opinion, there is no end you ever reach in perfecting your sales skills. So, I have always sought out training. I try to learn not only what has made the trainers successful, but also from the mistakes that they have made along the way, so I can hopefully miss some of those hard lessons. I have attended hundreds of training seminars in my 40 years, including speech training, sales training, behavior training and any other type of training that I thought would make me more professional in my career or even in my personal life.

People often ask me what training they should pursue to make them better. I answer that question with one or more of these questions: “Why do you think you need training?” “What type of training are you looking for?” “What do you see out there that piques your interest”? If they are a sales manager in charge of a sales staff, I might also ask, “What do you think your team needs?”

20

Once you’ve established what you need, you’ll find many training

Make sure that you follow up the training with action items to

options. I truly believe that a trainer that has been a part of our unique

work on. Plan a review a few months afterwards to see how well

industry is the best trainer for those of you reading this. No one has

the lessons learned are working out in the field where the rubber

walked in your shoes, seen the opportunities and pitfalls more than an

hits the road. You may even be able to book the same trainer to

industry peer who can say, “I know exactly what you are saying, and this

lead the follow-up event. Just remember, follow-up and follow-

is how I failed, and this is how I fixed the same issue in my own career.”

through are just as important as the training itself.

Your best trainer comes from your own walk of life.

If you’re investing in training for a group that you manage, I encourage you to make a trip to see the trainer beforehand to judge how your group would interact with the trainer and if their personality would click with them.

R. Paul Evans CGA, CAPS, CGP is a native Texan with over 40 years in the construction industry. He is the National VP of Millwork for BMC. Paul has been an instructor with the NHBA University Housing

No matter how good the training subject matter may be, if the trainer

for over 15 years and is one of only a handful of Master Instructors

themselves is not engaging, then your trainees will not be engaged.

for the NHBA in the country. He travels the country teaching Sales & Marketing, Customer Service and Negotiating Skills and has authored numerous articles and published three books on these subjects.

There are many questions that need to be asked and answered before

Paul is also a voting member of the ICC, is licensed as an engineer

signing up for any training. But the most important consideration is whether you will use the training once you’ve completed it. Will you buy into what you learn and embrace it afterwards, giving your best effort

in Texas and Louisiana and holds GC licenses in 17 states. Paul also owns and operates a fully sustainable farm and is a licensed professional race car driver.

to implement it? Will you set a means of measuring that effort to make sure it worked or was worth the investment of your time and money?

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21

[savvy spotlight]

Hollywood-Crawford

DOOR COMPANY In 1947 Harry Crosland had just returned to Houston after WWII, and began

Randy Oliver, President

working with his older brother who owned a garage door business. It wasn’t long before Harry wanted his own business and decided to relocate to San

In the beginning Harry sold only one door at a time,

Antonio. He had been stationed in San Antonio during his military service and

and with the proceeds purchased the materials

was familiar with the market. And he knew a thing or two about garage doors,

for the next job. What he and his wife Merle began

and he wasn’t afraid of work. And so Harry literally started a garage door company….in his own garage.

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73 years ago is certainly a far cry from what the company has evolved into today.

The company? The Hollywood-Crawford Door Company… a name that nearly everyone in construction around these parts knows well.

Ten years into his growing business, Crosland hired Doyle Benton. Benton helped Crosland grow the business for the next 20 years before purchasing it outright from him in 1979. Two years later Benton was short handed and hired his son-in-law Randy Oliver, who worked his way up from installer trainee to sales manager, then later to vice president, and finally president.

Today Randy runs what is arguably the most reputable, well-respected garage door enterprise in South Texas. Their manufacturing partners include Wayne Dalton, Genie, LiftMaster, Clopay and others.

They feature the widest selection of garage doors (including many custom made); highend, high-tech garage door openers; and an expert service and repair department.

Among the core values of this successful company, not surprisingly, are “God, Family and Customers.” And the term ‘family’ is interchangeable between relatives and employees and team members.

“We believe in treating everyone with honor and respect,” says Randy. “And this includes fellow employees, customers, suppliers…

educate them on the value of each of our products and let them decide which door works best for their needs.”

even our competition. And our management

The ongoing challenge for Oliver is maintaining an ongoing education process with builders

style is to be more of a leader, and less of a

and customers alike about the curb appeal of a house and how roughly 30% of the front home

manager. We hire people with a great attitude,

elevation is the garage. “Sure front doors are important and lots of homeowners go all out with

then train and lead by example. So far, this

a special entry door. But in many cases you can’t see it from the street. In most cases with the

has worked out well for us.”

way homes are built here everyone readily sees the garage door. And no, they aren’t all the same

While the landscape for the garage door business has completely changed over the

anymore. More and more people are realizing it’s okay to let the garage door be a statement piece on their custom home.”

last several decades, some things have

Hollywood-Crawford is a member of the Greater San Antonio Builders Association (GSABA), the

stayed the same. The options of doors

TAB and the NAHB. Randy has been honored with GSABA’s Associate of the Year, Associate

today, with various finishes, windows, lift

Legend of the Year, and the Becky Oliver Lifetime Achievement Award for his support of the

systems and special materials may seem

association. Additionally, they are members of the International Door Association (IDA) where

overwhelming. And Hollywood-Crawford

Randy served on their board of directors for 13 years and as their president from 2015-2017.

represents several different manufacturers giving builders and direct customers more choices than ever before. Yet still much of their competition tries to focus on having the lowest priced, as if doors are all the same.

As a supporter of the local community, Hollywood-Crawford donated $45,000 to four area nonprofit organizations who’ve struggled more than usual due to the economic and health effects from COVID-19 throughout this past year. They include Hill Country Daily Bread Ministries, Daily Bread Ministries, Any Woman Can, and 1Hope for Kids.

“We train our guys to ask lots of questions and to listen to the wants and desires of our customers,” he added. “They’re not gonna be in a hurry to ‘close the sale’. We’d rather build

For more information about this great company please check out their website https://hollywoodcrawford.com/ or call 210. 960.3150.

long-term relationships with our clients and

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24

[savvy special report]

Go Green Voluntarily or Face Big Brother Regulations Orders to turn up your AC in the summer and get used to keeping your water temperature lower are impractical.

O

utdoor pollution and air quality saw a noticeable improvement during the Covid-19 pandemic, but a quick bounce-back to previous levels is expected once economies fully ramp back up.

As the subject heats back up again, Democrats have already unveiled a climate policy blueprint and are calling for an update of building codes to eliminate greenhouse gas (GHG) emissions.

Some governing agencies say that we should live in smaller homes in denser neighborhoods, pointing to the fact that houses in the U.S. are much larger than houses in other countries. A University of Michigan researcher says that larger, wealthier U.S. households produce around 25% more emissions than their lower-income counterparts in smaller homes. Ordinances setting a maximum house size typically regulate the maximum foot area ratio (FAR), which is the portion of the lot that may be covered by a structure. Austin, Texas, for example, subjects

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new residential developments in certain districts to a FAR ratio of 0.4 square feet of building to 1.0 square feet of lot size. Alternatively, if the calculation returns a FAR of 2,300 square feet or less, then the City of Austin will allow the home to be 2,300 square feet.

As policymakers look for ways to curtail the use of fossil fuels, new initiatives are being proposed to address not just how much energy is consumed but also how energy is generated, and the types of

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“

thousands to the construction cost across all climate zones. It also

Globally, construction consumes almost 40% of total

worldwide energy production, produces 30-40% of all solid wastes and between 35-40% of CO2. –ABC Money

“

The timing of such proposals seems out of touch and insensitive given the fact that we are still in recovery from the pandemic and

found that an all-electric house is at best the same cost to operate in warmer climates and substantially more in cold climates.

With Houston as one of the test markets, representing Climate Zone 2 where heating is less of a factor, the Home Innovation Lab study found that replacing gas furnaces with standard air or ground source heat pumps, the operating costs were comparable between a gas and an all-electric home, but the incremental cost of constructing an all-electric house ranged from $4,000 to $11,200 more.

housing is facing an affordability crisis already. While home sizes

The impact of electrification on an average-size single-family home in

have been trending downward since 2015, there’s a new trend

cold and moderate climate locations is even more significant. Cold

toward larger—not smaller—homes post-pandemic, with home

climate heat pumps needed for the cities modeled in the study for CZ 5

offices and private areas for family members who no longer get in

and 6 were $8,000-$9,000 more compared to a gas furnace. The total

their cars to go to work or school, or at least they do so less often

added cost for an all-electric package in cold climate locales of Denver

than before.

and Minneapolis ranged from $10,886 to $15,100. Not only was the

Keep in mind NAHB’s 2021 Priced-Out Estimates show that 75.1 million households in the U.S. are not able to afford a median priced new home, and that an additional 153,967 are priced out each

equipment more expensive, but even after that investment, annual energy use costs were more expensive for electricity, adding about $275 in Denver and by $650 in Minneapolis to annual utility bills.

time the price goes up by $1,000. Further, NAHB argues the point

Particularly in mixed or cold climates, a larger capacity heat pump

that consumers have repeatedly shown that they expect paybacks

water heater (80 gallon) with a mixing valve is needed to match the

on the extra costs of energy efficient measures within 10 years.

performance of a gas water heater. These HPWH units can cost as

Recent data by Home Innovation Lab comparing a fully electrified

much as $2,800 more compared to a standard gas water heater.

house to a house with gas equipment and appliances found that

Adding a single Level 2 circuit for an EV charger to for the electric

the incremental cost of constructing an all-electric home adds

vehicle charging stations in every home that the initiative calls for would costs about $600-650 to the consumer on average, not including

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the cost of the charger/connector. The price will be higher for homes where the electric panel is located more than 50 feet from the charging receptacle and/or when the electric panel needs to be upsized.

Induction ranges more closely resemble the cooking performance of a gas range than other electric ranges, but they run on average $1,000 more than comparable gas ranges.

In the model building codes and standards arena, NAHB has long been an advocate for energy efficiency provisions that are costeffective and affordable for home buyers, but it urges Congress to consider unintended consequences including the onerous permitting requirements that some of the proposals would put on many builders and developers. Performance paths should continue to be permitted, and energy efficiency requirements should not be limited to the building envelope but must also consider the use of more energy-efficient mechanical equipment and lighting in measuring the increase in overall building efficiency, NAHB says.

Rather than wait for the government to tell builders how to build homes, perhaps now is the time for more builders to adopt NAHB’s National Green Building Program and ANSI-approved standard for

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“green” development, design and construction. If we can prove more willingness to participate and the positive effect of these existing programs in reducing GHG emissions, the NAHB-designed voluntary programs would provide a better starting point on which to base future changes to standards and codes.

26

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[savvy trucks & toys]

The Last Ones Standing: Performance Sedans and Coupes

By Beverly & Steve Smirnis

» The Ford Mustang remains an icon.

We’ve noted before that while many coupe and sedan models have disappeared with their manufacturers opting to put their focus on SUVs and CUVs, most of the cars left standing are known for either speed or luxury, or in some cases, both.

Mustang is now the only car left in Ford’s lineup and much of what its fans love

The TLX is Acura’s stab at reclaiming its performance image

about it remains the same after 50+ years. It’s a powerful rear-wheel-drive

in the luxury sports sedan segment. Our test vehicle had the

sports coupe. The Mustang driven for our weekly tester was a convertible with

turbocharged four-cylinder engine (rated at 272 hp and 280 lb-ft of

the base Ecoboost engine and a six-speed manual transmission delivering 310

torque), Super Handling All-Wheel Drive (SH-AWD) and 10-speed

horsepower and 350 lb-ft or torque. Its Premium trim added 18-inch wheels,

automatic transmission. The 2021’s new dedicated platform

upgraded tires, a 12-speaker Bang & Olufsen audio system, Recaro front sport

improved the ride and handling and its fit and finish inside was a

seats, and a list of convenience, tech and comfort features, adding roughly

standout in its segment. The TLX is praised for its excellent value;

$3K to the base price of $37K. A driving event we attended at Texas Motor

our top level Advance with an MSRP of $48K which includes much

Speedway gave the opportunity to drive the 760 horsepower Shelby GT500

in its list of standards. While it still hits 60 in less than six seconds,

variant on the track. The revived Mach 1 version, just released as a 2022

TLX is criticized for its heavy weight that hinders performance

model, may be the “just right” version in between the two with 480hp.

slightly compared to others that it competes with.

29

» 2021 Hyundai Elantra NLine

T

» Acura TLX

he longer and wider fully redesigned 2021 Hyundai Elantra is

Each manufacturer’s coupe and sedan hold-outs remain standing for a

still considered a compact car, but it has comparable interior

reason. And they have fewer rivals to compare and compete against.

space to a midsize sedan. Elantra is praised for coming with

plenty of included features delivered at a competitive price with an excellent warranty. The only added feature on our top level Limited Elantra was its carpeted floor mats, giving it a price tag of $25,500 with the standard front-wheel-drive 2.0-liter four-cylinder engine getting 147 horsepower and 132 lb-ft of torque and connected to a continuously variable transmission, or CVT automatic. True sports enthusiasts will

Beverly & Steve Smirnis are members of the Texas Auto Writers Association and the Texas Motor Press Association, reviewing vehicles and casting their votes at driving events where the Truck of Texas, Car of Texas and Off-Road Truck of Texas are some of the titles awarded. Follow their automotive blog on TheSavvyList.com/TheSavvyDriver

want to look at the Elantra N Line, still priced at a reasonable $25,095, with a turbocharged 1.6-liter four-cylinder engine (201 hp, 195 lb-ft of torque) paired to either a six-speed manual transmission or a sevenspeed dual-clutch automatic transmission. The line-topping Elantra N, expected at the end of 2021, will get a turbocharged 2.0-liter fourcylinder engine (276 hp, 289 lb-ft of torque) paired to either a six-speed manual transmission or a new eight-speed dual-clutch automatic transmission is anticipated to be priced about $30K. The Toyota Camry is a stand-out among midsize sedans, and its new XSE trim also adds a sportier-looking front end, sports-tuned suspension, and 19-inch alloy wheels. Our test car had the gasolinehybrid powertrain, a modest premium that delivers greater power and fuel economy (46 MPG combined) over the standard Camry while the 2.5L 4 cylinder gas/electric engine with CVT ups the XSE’s output up to

» Toyota Camry XSE

208 hp. Ours added Driver Assist and Nav packages to the base MSRP of $32,700. These, along with the $500 black-painted roof option and upgraded mats added a total of about $4K. Lexus’s newest IS 350 AWD F Sport blends comfort and luxury with sporty performance. The IS 350 is powered by a 3.5-liter V-6 engine that delivers 311 hp and 280 lb-ft of torque. Ours featured the allwheel-drive system with a six-speed automatic gearbox which came in handy; we were very impressed with how the little sedan handled itself in last February’s snow and ice. The base price on our pre-production tester was $44,900, but ours had more than $10K in options, including a Dynamic Handling Package with Adaptive Variable Suspension and

» Lexus IS 350 AWD F Sport

Drive Mode Select, and adding a carbon fiber rear spoiler and 19-inch alloy black matte wheels, to put its price a little over $55K.

30

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