Construction Industry Sees Shortage of Skilled Labor Workers

HBA Past President Victor Lisabeth was featured in a recent TV 9 & 10 interview

Click link below to view video

http://www.9and10news.com/story/22515805/construction-industry-sees-shortage

The 13th Michigan worker death of 2013

The 13^th Michigan worker death of 2013 occurred at approximately 1:30 pm on April 22, 2013. Employers and employees are urged to use extreme care and safety diligence in all work activities.

Summary of incident: On April 22, 2013 at approximately 1:30 pm, an explosion occurred in the digester at a waste water treatment plant. Construction employees were working on or near a tank using a welder’s torch.

Last year there were 26 MIOSHA-related deaths. 2009 saw the lowest number with 24.

If you need help or assistance in ensuring your workplace is safe, MIOSHA is here with resources to help. The Consultation Education & Training (CET) Division provides workplace safety and health training and consultations to employers and employees throughout Michigan free of charge. Contact CET today at (800) 866-4674 or submit a request online at www.michigan.gov/cetrca.

Every life is precious. Our mutual goal must be that every employee goes home at the end of their shift every day!

Fatality Number	Date	Occupation	Age	Type of Injury	Description	Location (City)
1.	1/17/13	Assistant Manager	36	Crush	Employee was run over by a tractor while trying to remove a railroad timber using a tractor loader with a front bucket.	Turner
2.	1/18/13	Materials Handler	42	Crush	Employee was operating a crane and was crushed by beams that fell out of the sling being carried by the crane.	Belleville
3.	1/23/13	Carpenter	20	Fall	Employee fell approximately 19’ from a high-pitch residential roof while installing shingles.	Coldwater
4.	1/24/13-accident 1/28/13-passed away	Laborer	56	Cave-in	Employee was working in a 12’ deep excavation to repair a leaking water main when a section of the side collapsed, completely burying him. Coworkers uncovered him and he was taken to medical facilities, where he later expired.	Grosse Isle
5.	2/06/13	Bus Operator	48	Run over	Employee dropped off last fare and stepped out of bus. Bus began to roll. She attempted to re-enter the bus and was run over by the rear tires.	Mt. Morris
6.	2/18/13	Roofer	39	Fall	Employee was installing insulation material on a low-pitch roof for a new commercial building. He was working between the warning line system and the edge of the roof when he fell 25 feet to the ground.	Howell
7.	2/16 /13-accident 2/20/13-passed away	Carpenter	33	Struck	Employee was struck in the eye by nail from pneumatic nail gun while rough framing a house. Nail entered through eye socket into the brain.	White Lake
8.	2/25/13	Roofer	36	Fall	Employee fell 22 feet through a deteriorated roof while in the process of replacing the metal decking.	Grand Blanc
9.	3/17/13	Welder	61	Struck	Employee was welding a piece of equipment over a pulper and fell into the pulper. The pulper is an open top vat with a spinning rotor blade at the bottom.	White Pigeon
10.	3/21/13	Carpenter	48	Fall	Employee fell 35 feet when a gust of wind pushed the employee and a window he was installing off the platform of a forklift.	Franklin
11.	3/21/13	Die Setter	42	Struck	Employee had a mold hooked on a crane when the bolt gave way causing the mold to fall, bounce and hit another mold. The employee was between the two molds and struck.	Shelby Township
12.	4/11/13	Co-Owner	59	Crush	The co-owner was trying to re-stake a large spruce tree that had fallen over. He used the bucket on his skidster to help. He was standing on the ground beside his cab and apparently leaned into the cab and accidently activated the bucket controls. His head was crushed between the bucket lifting arms and the cab.	Emmett
13.	4/22/13	Pipefitter	49	Explosion	An explosion occurred in the digester at a waste water treatment plant. Construction employees were working on or near a tank using a welder’s torch.	Dexter

Housing Juggernaut Seen Spurring 500,000 New U.S. Workers

By Steve Matthews - Apr 11, 2013 12:01 AM ET

 

Brett Gundlock/Bloomberg

 

A rebound in homebuilding after a six-year slump should generate as many as 500,000 jobs in 2013 and 700,000 in 2014 including related services.

Paul Laney landed a job two months ago as a home inspector in Woodstock, Georgia, as the city added staff to oversee a growing residential construction industry. “I am really ecstatic about it,” said Laney, 52, who closed his own contracting business in 2007.

Housing Juggernaut Seen Spurring 500,000 New U.S. Workers

David Paul Morris/Bloomberg

 

A rebound in homebuilding after a six-year slump should generate as many as 500,000 jobs in 2013 and 700,000 in 2014.

State-by-State Unemployment

 

 

At a 19-home development being built by Windsong Properties off Main Street in Woodstock, about 30 miles north of Atlanta, people are being hired to sell homes, underwrite mortgages, install garage doors and security systems, and inspect finished construction.
A rebound in homebuilding after a six-year slump should generate as many as 500,000 jobs in 2013 and 700,000 in 2014 including related services, estimates Russell Price, a senior economist at Ameriprise Financial Inc. in Detroit and the top forecaster of employment for the past two years, according to data compiled by Bloomberg.
“Housing is like a coiled spring” driven by “a lot of pent-up demand,” said Glenn Hubbard, dean of Columbia University’s business school in New York, who was chairman of the White House Council of Economic Advisers under President George W. Bush. “It is a real source of strength in the economy -- from construction jobs and all the vendors who play into it.”
About half the jobs created by homebuilding are outside of construction, estimates the National Association of Home Builders, a Washington-based trade group. More than three jobs are created for each single-family home built, including related work, a 2008 study by the group estimates.

Huge Effect

“A revival in new home construction will have a huge stimulative effect on the larger economy,” said Brad Hunter, Palm Beach Gardens, Florida-based chief economist for housing research firm Metrostudy. “When home construction goes up, so does demand for furniture, tile, lumber, concrete, draperies, paint, and appliances of all sorts.”
Price gains on existing homes in markets led by Atlanta, Las Vegas, San Francisco, Phoenix, and Fort Myers, Florida, will benefit homebuilders, said brokerage firm Sterne Agee & Leach Inc. analyst Jay McCanless in Nashville, Tennessee. That will allow homebuilders to raise prices, and prompt some shoppers to look more closely at new rather than existing homes, McCanless said. He has a “buy” rating on builders D.R Horton Inc., Ryland Group Inc. (RYL) and Meritage Homes Corp. (MTH)

Housing Starts

Single-family housing starts are likely to rise 18 percent to 632,000 in 2013 from a year earlier, and by another 26 percent to 796,000 in 2014, forecasts Hunter. Single-family starts fell 75 percent from the 2005 peak of 1.7 million to 2011’s low of 430,600.
Construction companies added 18,000 workers last month after a 49,000 surge in February that was the biggest in almost six years, a Labor Department report April 5 showed. As payroll growth slowed in March to 88,000, the smallest gain in nine months, construction added jobs faster than the overall market.
Yet the increase in construction jobs so far has lagged new activity because workers have had their hours increased, said David Crowe, NAHB chief economist in Washington. Weekly hours have risen to an average of 36.8 the past year, the highest since December 2006.
“We have seen increasing hours, but there is a limit to that,” he said. “I’m expecting to see a more direct correlation between increases in housing starts and increases in construction employment.”

Fed Assessment

The Federal Reserve, which is been buying $40 billion a month in mortgage-backed securities and $45 billion in Treasury bonds to lower long-term interest rates, said last month that housing has “strengthened further.” In an El Reno, Oklahoma, speech April 4, Kansas City Fed President Esther George cited rising housing starts and said low inventories were contributing to more building.
While construction may account for about 5 percent of the U.S. economy, it has “a big impact on both total output and employment,” St. Louis Fed President James Bullard told reporters April 3.
In Woodstock, with a population of 24,000, permits have been issued for 64 new homes in the first quarter, up 45 percent from the same period in 2012 and more than double the number for that period in 2011, according to City Manager Jeff Moon.
New home construction rose to 678 in Cherokee County, which includes Woodstock, last year from about 400 a year the prior three years, according to Metrostudy. Developers added 248 new lots in the last quarter of 2012, “suggesting an expectation of continued growth in demand,” Hunter said.

New Permits

Among the new permits have been those for Windsong Properties’ Garden Street subdivision, where broker Beth Jones said all 19 homes are under contract. The homes, which sell for the “upper $200,000s,” are being marketed to people 55 and older and include a design that can be adapted, for example, for accessibility to wheelchairs.
“It’s a huge success, coming from a market where everything was slow,” she said. “The market has been beginning to shift.”
Jones, 55, who is paid on commission, says she had to “dip into savings” during the housing slump, and her income has doubled from the low. “It is certainly a relief.”
Windsong Properties in Woodstock has 10 full-time employees up from six in in 2006, said operations manager Carrie Roeger. The company contracts out most of the construction and other work. Fifty-four subcontractors with at least 62 workers have been used for the project, excluding transportation of materials, she said.

Increased Employment

International Marble Industries Inc. in Woodstock, which makes and installs bathroom vanity tops and shower bases and worked at Garden Street, has increased employment to 50 from 20 people in 2009. The company lost money from 2008 to the middle of 2011 amid a “gut-wrenching” decline in business, President Dirk De Vuyst said.
“We are optimistic that volume is picking up and there is pent-up demand,” he said.
Loud Security Systems of nearby Kennesaw, Georgia, which installs security and wires homes for electronics, has boosted staff to 42 employees from 22 at the end of 2011, owner John Loud said. The company may hire a few more people by year’s end, he said.
“All the new construction is very encouraging, a big plus for us,” he said.
Tim Smith, 32, was hired in February as operations manager for the Overhead Door Company of Atlanta, which installs garage doors. The position had been vacant for two years.

Hiring More

The company has hired 10 people in the last two months and “we need to hire more for growth that will happen by the end of the year.”
Laney, who was a general contractor in Cherokee and Cobb counties north of Atlanta, closed his former homebuilding business during the housing slump, cutting the jobs of five workers. “There wasn’t any new construction,” and remodeling “wasn’t profitable.”
After spending much of the past few years working with heating and air conditioning work, which fluctuated seasonally, he took the city job adding a fifth building inspector Feb. 25.
“I love to see the new construction,” he said. “A lot of the homes we are inspecting are already sold. I don’t think the market will be as wide open as it was once, but there will be a good steady increase. People still ultimately want a new home.”
To contact the reporters on this story: Steve Matthews in Atlanta at smatthews@bloomberg.net;
To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net

Home Builders Association of the Grand Traverse Area, Inc. Education is your business.

Education is your business because it's the key to growing your business. Learning even one new skill set or accessing a field of knowledge can put you on your way to a whole new direction for your business, to turn your business around, or running your business more effectively. From seminars to full-fledged courses, think of each educational opportunity at the Home Builders Association of the Grand Traverse Area as a business course, part of your strategy to maintain a competitive edge. Bookmark www.hbagta.com and regularly check out education opportunities at Builder Forums, required seminars for licensed trades competency, guest speaker presentations, roundtables, and designation courses happening throughout the year. This is the most hassle-free way to get training for your staff, new ways to improve your business, or even a professional designation for yourself. The ball is in your court. And we're standing by to do whatever we can to help you succeed. Because that's our business. Need more information? Give us a call at (231) 946-2305 or contact us at mailbox@hbagta.com. Bookmark http://www.hbagta.com or make it your home page and always take advantage of your 3-in-1 membership. Home Builders Association of the Grand Traverse Area, Inc. Home Builders Association of Michigan National Association of Home Builders

Green Building 101 Traverse City Record-Eagle

Green Building 101

Traverse City Record-Eagle
Home and Garden Section April 14 2013

Net Zero Energy Homes

Recently the media has been talking a lot about “net zero energy housing” and I thought it would be worthwhile to explain what that means.  For a local reference point I will be using the Depot Neighborhood Development which will start construction in the next couple of months.  This development is a joint effort by Habitat for Humanity GTR and HomeStretch, two local low income housing providers.  My explanation will be for the average home owner and not a comprehensive treatment of the subject.

Why are Net Zero Energy homes important?

As a nation for lots of reasons we have to find ways to use less energy and our homes and buildings are the low hanging fruit.  It’s just common sense on lots of levels. We have the technology and we know it’s cost effective; it’s just a matter of making the decision to move forward with it. The State of California has passed legislation that requires all new homes to be net zero energy by 2020 and all commercial buildings by 2030. It’s a win-win for the home and building owner, the community and the nation and planet.

The simple explanation is a net zero energy home produces as much energy as it uses on a site energy basis.  The main ingredients are: a highly efficient thermal envelope (insulation, air sealing, windows and framing system), a highly efficient mechanical system (heating, air conditioning and domestic water heating) and some form of onsite energy production (in our area that will almost always be a solar PV system).  The goal will always be to build the most energy efficient thermal envelope and install the most energy efficient mechanical equipment possible, and to make up the additional energy requirements with onsite energy production (solar PV system).

The Depot Neighborhood Development Habitat homes have been energy modeled using REM/Rate software which produces what’s called a HERS Index.  This software analyzes the home and all of its systems then gives it a score on the HERS Index.  A home built to the 2004 International Energy Conservation Code would have a score of 100 and a net zero energy home would have a score of 0.  Most new homes score at about 80 to 90.  For each 1 point reduction of the HERS Score the home will use 1% less energy. The Habitat homes have a score of 10 or so depending on the final choices of the thermal envelope and mechanical system. The final 10-12% of its energy requirements will be supplied by the solar PV system.

If the home is built as currently modeled the approximate energy cost would be as follows per year: 

Heating $202.00, cooling $43.00, water heating $240.00, lights and appliances $559.00, utility service charges $54.00, minus photovoltaic (solar PV system) production ($775.00). The total energy cost for the Habitat home is predicted to be $323.00 per year. Habitat is continuing to work on further reductions of the energy requirements for the proposed homes in an effort to reach the net zero energy goals.

Some of the major features planned for the Habitat homes are as follows:

Foundation: Insulated Concrete Forms (ICF’s),  R23;  Floor: Slab on grade concrete with 6” of rigid foam insulation, R30; Above grade walls: 2X6 frame with 5.5” fibrous cavity insulation and 4” rigid foam on the exterior, R43; Windows: U.25; Doors: U4.4; Ceiling: Combination of spray foam and cellulose insulation, R80; Heating System: Mini-Split Heat Pump HSPF, 9.3; Cooling System: Mini-Split Heat Pump SEER, 18; Water Heater: Heat Pump water heater, EF 2.35; Energy Recovery Ventilator: total recovery efficiency, 97%; Appliances: Very High Efficiency, Lighting fixtures: LED with motion sensors, Solar PV System:  6.2 KW;  Projected Building Leakage Test: (Blower Door Test) .05 Air Changes Per Hour (ACH); Total Carbon Dioxide:  (CO2) emissions 1.1 tons per year (same home built to code would be 15.1 tons).

Notes:

Site Energy: Energy produced on the site where the energy is consumed.

Source Energy: Energy consumed on the site where the home is located but produced in another location. Source energy must include the cost of the raw fuel plus production and transmission cost. Approximately 70 % of the energy embodied in coal is lost by the time that energy reaches the home site.

Air Sealing is the most important element in a highly efficient thermal envelope.

Mini-split heat pumps are about 3 times more energy efficient than a conventional 95 % efficient warm air furnace.

Heat pump water heaters are about 2.4 times more efficient than a conventional electric water heater.

Studies show that occupant behavior can affect energy cost by as much as 50%.               

Max Strickland has been involved in the construction industry for 45 years. He is currently a principal with Strickland Ewing & Associates providing building performance consulting, green building program verification, Energy Star/HERS ratings, infrared imaging, energy auditing, energy code inspections and building forensic investigations.  Questions and comments can be directed to max@stricklandewing.com.

Lumber Prices On the Rise in 2013

A new report from International Wood Markets Group, predicts North American lumber prices will soar in 2013 and reach record highs in 2014. The report also predicts that supply and demand conditions in wood products for the long-awaited 'super-cycle' are now taking hold, with the full impact still some three years away. 

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Inventory Tax Update for PA 494 of 2012

As you know the HBA of Michigan was successful in the passage of House Bill 4134 (now PA 494 of 2012) which removes 18 mills from inventory homes going forward. The State Tax Commission has issued an official bulletin addressing PA 494. The link for this bulletin is listed below.

Should you still have questions contact Dawn Crandall at crandall.dawn@mahb.com.

Bulletin 3 of 2013 from State Tax Commission

Affidavit Claiming Exemption