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Keysto

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4 President’smessageMid-year reflections

5 ProductspotlightBeam me, Digital Canal

6 Pa.AttorneyGeneraltalksregistration…againMore than 68,000 contractors have registered

8 HousingmarketrecoveryinPennsylvaniaState faring better than many parts of the country

10ReadyfortheturnaroundBusinesses are preparing for the improving economy

13MemberspotlightDream Maker Homes: Teamwork helps everyone

Volu

me 7 • Issu

e 4 • July/A

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ust 2010

MemberInsiderTakingyouraffiliationtoyourcustomer. . . . . . . . . . . . . . . . . . . .A

Onthehill. . . . . . . . . . . . . . . . . . . . . . . . . . . B Cover designed by Laura Kauffman Pyne

12Kitchen,bathremodelsstillpopularKitchen remodels, such as the one pictured here from Advanced Kitchens and Bath of Mechanicsburg, are among the top projects for 2009-10.

Presiden

t’s messag

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y Josep

h M

ackey • PB

A Presid

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Mid-year reflectionsPresidentJoseph Mackey, Pocono BA

Vice PresidentRay Venema, West Branch Susquehanna BA

AssociAte Vice PresidentRon Agulnick, HBA of Chester/Deleware

secretAry Warren Peter, Indiana-Armstrong BA

treAsurerJoseph Harcum, Wayne County BA

immediAte PAst PresidentGene Kreitzer, Lebanon County BA

executiVe Vice PresidentDoug Meshaw

editorLaura Kauffman Pyne

Printcomm staffPublisherKevin Naughton

Assistant editor/Publication directorH.J. Hormel

Graphic designJason Gabel

Advertising sales managerBrenda Poe

Advertising salesJeff Pinwar • 800-935-1592, ext. 118

Address correspondence to:Keystone Builder600 North Twelfth Street Lemoyne, PA 17043Phone: 800-692-7339 or 717-730-4380Fax: 717-730-4396Web: www.PaBuilders.org E-mail: [email protected] does not imply acceptance or endorsement of the products contained in the publication.

Publishing and advertising sales services provided by:

2929 Davison Rd. • Flint, MI 48506Phone: 800-935-1592 • www.printcomm.com

An exclusive Publication of the PBA Keystone Builder magazine is published six times a year by the Pennsyl-vania Builders Association®, Editorial Offices, 600 North Twelfth Street, Lemoyne, PA 17043. With the exception of official association announcements, the statements of fact and opinion that are made herein are the respon-sibility of the authors alone and do not reflect an opinion or philosophy of the officers or the membership of the PBA. Materials may not be reproduced without written permission from the PBA headquarters.

PostmAster: Send address changes to Pennsylvania Builders

Association, 600 North Twelfth Street, Lemoyne, PA 17043.

suBscriPtions: Subscriptions available through membership to the Pennsylvania Builders Association.

Summer is well underway, and we’ve passed the halfway point for 2010. As such, I think this is a great time to reflect on the past and to focus on

what’s ahead.

EconomyMost of us have not only heard about the hard times

our state and country have been going through, but we’ve experienced them first hand. Whether it’s a slow time for business, or we’re struggling just to get by, we understand what economic hardship really is.

The good news? Relief is on the way. It may not be a fast process, but it’s coming.

This issue of Keystone Builder focuses on where Pennsylvania stands in relation to the rest of the country and on where we go from here. Need some advice to get through? We’ve tried to include some suggestions.

SincerethanksI, along with the rest of the Pennsylvania Builders Association staff would

like to extend our gratitude for your membership and continued contribu-tions to what our organization stands for.

With times being what they are, I believe that membership in a profes-sional organization is more important than ever. Your commitment is invaluable, and again, I say thanks.

PBA remains committed to our members and to being here as a resource for builders and associates statewide.

As the rest of 2010 flies by, take the time to enjoy the rest of your summer.

I look forward to seeing many of you at our summer board meeting and at functions statewide. s

4 I Keystone Builder • July/August 2010

Where’sJoe?A review of your president’s activitiesJune 3 Panel discussion for the Urban Land InstituteJune 7 PaCAH Executive Committee conference callJune 8 Golf tournament for the Pocono Builders AssociationJune 11 Gala for the Lancaster Parade of HomesJune 13 Joe’s birthday!June 16 Joe’s daughter, Sarah, graduates from high school.June 19 Camping and boating vacation in Virginia

*Meetings with various parties regarding PBA’s health care have occupied a large percentage of his time.

July/August 2010 • Keystone Builder I 5

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Beam me, Digital Canalby M.H. Morrison

D igital Canal Corporation, a leading provider of professional structural engineering and design software, recently released its latest

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W ith the Home Improvement Con-sumer Protection Act nearing its one year anniversary, Keystone Builder

magazine went back to Attorney Gen. Tom Corbett to see how the new law was working for members and their customers.

Q Has the registration process gone smoothly, both online and

via mail?

A Yes. Shortly after the governor signed the Home Improvement Consumer

Protection Act into law, my office developed the registration materials and established the process for contractors to register. We kicked off the registration program in late March and by the time the law took effect on July 1, 2009, we had successfully registered tens of thou-sands of contractors.

Q How many home improvement contractors are currently regis-

tered, and do they continue to register? Does this number match or exceed what you expected?

A More than 68,000 contractors have registered so far, which is on par with our estimates.

Q How is your office reaching out to home improve-ment contractors to ensure they know about the

registration requirement?

A My office conducted an extensive outreach campaign last year aimed at alerting contractors and consumers about the registra-

tion requirement and the other provisions of the new law. Months

before the law took effect, we started working with the media, local officials, home improvement retailers, and builders groups, like yours, to reach as many people regarding this important new law. We also made sure that educational materials were available in locations frequently visited by contractors, such as local code and permit offices and hardware stores.

Q What is your office doing to oversee the industry to make

sure all home improvement contrac-tors are registered?

A We continue to attend home builder events and expos to distribute registra-

tion materials and information about the law to contractors. We also have a dedicated hotline and e-mail account that contractors can use to report businesses they believe are not registered. The number is (717) 772-2425. E-mail can be sent to hic@attor-

neygeneral.gov. We follow up on every lead that we receive and if we find a contractor who is not registered, we will take action.

Q How many home improvement contractors have been prosecuted so far for violating the registration law?

A First, let me note that the majority of the industry has taken the steps necessary to comply with the new law. For years, repu-

table contractors in our state have had to compete with fly-by-night businesses, and now we have a law that levels the playing field and will help to weed out the bad guys.

Qu

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As you noted, the law provides my office and local law enforcement with new tools to pursue contractors who don’t play by the rules. So far, we have issued more than 950 notices to contractors about various compliance issues. Many of these cases are still under investigation. We’ve already filed civil enforcement actions against contractors in several regions of the state based on these efforts. I anticipate these numbers will increase as we continue to review consumers’ complaints and information collected during our investigations.

Q What’s been your biggest surprise so far in the process?

A The new home improvement program was the largest consumer initiative for my office since Pennsylvania’s Do Not Call law was

adopted. The new law required us to develop and implement a state-wide registration system in a fairly short period of time. Still, I did not want contractors to get bogged down in a new government bureau-cracy, so our goal was to create a user-friendly system that included a way for contractors to register online. I was pleasantly surprised that so many contractors took advantage of the online form on our website, www.attorneygeneral.gov, to register.

Q When we spoke last year, you said that the law was silent on whether general contractors responsible

to verify that all mechanical, drywall, painting and other subcontractors are legally registered in Pennsylvania? Has this changed?

A The law has not changed in this area. As I mentioned last year, if I were a contractor, I would want to know if my subcontrac-

tors were complying with the law, especially since the law requires contractors to provide their subcontractors’ contact information in their contracts. Registrations can be checked through the contractor registration search page on our website. The information is also avail-able by calling 1-888-520-6680.

Q When we spoke last year, you said that the law was silent on whether an escalation clause can be used in

home improvement contracts. Has this changed or been further clarified?

A The provisions governing required and prohibited contract clauses have not changed. Information on these provisions,

along with answers to other frequently asked questions, can be found on our website.

Q Have the outcomes from the enactment and enforce-ment of Act 132 (Home Improvement Consumer

Protection Act) met the expectations of those who drafted the legislation? Are there any plans for updates, expansions, etc., of the current law?

A I can’t speak for the members of the legislature who were involved in these efforts. My office has received a great deal of

positive feedback from consumers who have been victims of home improvement fraud and from contractors who have had to compete with disreputable contractors over the years. Home improvement contractors who have had to pay large sums on the local level every year for municipal licenses and registrations also seem pleased that the statewide registration has preempted these annual fees. If we see areas for change or improvement in the law, we will certainly make recommendations to the General Assembly and if your members have any thoughts on the law, they can also contact their local House and Senate members. s


The United States is emerging from the most severe economic downturn since the Great Depression of the

1930s. The financial crisis that led to the recession was the result of the bursting of a speculative bubble in housing, inflated by low cost and easy access to credit, coupled with an over-leveraged and under-regulated financial sector.

A shadow banking system composed of non-bank financial companies, not subject to traditional bank regulation, including credit card companies, auto manufacturing finance subsidiaries and mortgage lending compa-nies, contributed to the explosion in credit and fed the demand for asset-backed securi-ties, in particular mortgage-backed securities.

When rising mortgage defaults under-mined the value of the MBS, the bubble began to lose air; the financial system stumbled badly; and the economy sank.

As the overall economy recovers from the excesses that led to historic distress in the financial sector, housing markets are recover-ing from similar problems. But as we sort through the difficulties and begin the recovery, it is important to recognize that different areas of the country will recover at different paces, based on varying levels of impairment from the housing boom.

This article compares Pennsylvania housing markets during the boom to other parts of the country in terms of housing market fundamentals—the level of production, house price appreciation and mortgage foreclo-sures—to examine how Pennsylvania will emerge from the downturn.

Single-familyhousingstartsNationally, single-family housing produc-

tion rose substantially during the housing boom, reaching a peak in 2005 at 29 percent higher than the average level of production from 2000 to 2003.

Single-familyhousingstartsUnitedStates,PennsylvaniaandFlorida

HousepricetoincomeratioforUnitedStates,PennsylvaniaandCalifornia

Housing market recovery in Pennsylvania


In Pennsylvania, peak production was 13 percent higher than these pre-boom levels. This puts Pennsylvania safely in the bottom fifth of states in terms of the inven-tory problems that other states must work through on the way to housing recovery.

The top fifth of over-built states had peak levels of production more than 50 percent higher than their pre-boom averages. Florida is a prominent member of this group, the fourth most over-built state, with production 64 percent above pre-boom levels.

HousepriceappreciationThe rate of house price appreciation during

the boom and subsequent price declines are important factors affecting housing’s recovery.

In general, house prices cannot grow significantly faster than income and be sustainable. Therefore, a basic measure of house price sustainability is a comparison of house prices to household income.

A surge in house prices that pushes too far above local incomes creates an afford-ability problem. This problem will most likely be addressed through a combination of two outcomes: either a decline in prices that restores the price to income ratio or reduced demand for owner-occupied housing until incomes grow enough to restore the balance.

Nationally, house prices have grown steadily since the 1980s through the early part of this decade. This growth was roughly in line with the growth in income.

Over this period, the average house price to income ratio fluctuated between 3.0 and 3.5, with an average rate of 3.2.

House prices began to rise steeply during the housing boom, increasing nationally at an aver-age rate over 10 percent per year, but house-hold income growth did not match this rate.

Consequently, the house price to income ratio swelled, reaching a peak of 4.7 in the fourth quarter of 2005. Since then, house prices have declined at different rates from different peaks throughout the country.

Nationally, after three years of consider-ably reduced demand for new houses and a declining homeownership rate, a 26 percent fall in house prices has restored the house price to income ratio to more normal levels.

House price appreciation in Pennsylvania has been moderate compared to some other parts of the country with the result that movements in the price to income ratio have not been as extreme.

Since the 1980s through the early part of this decade, the average house price to income ratio in Pennsylvania was 2.6.

House prices in Pennsylvania rose by just over 50 percent during the boom, increas-ing the house price to income ratio to 3.5, roughly 30 percent above the long-term average level, but less than the almost 50 percent national ratio peak and well below the 90 percent increase in California.

House prices in Pennsylvania have retreated from their peak, and the house price to income ratio has declined to 2.9.

This level is sufficiently close to the prior long-term average suggesting that house

prices in Pennsylvania have returned to normal, with a low probability of further significant declines.

In fact, the latest available price data indicates prices have increased in the second half of 2009.

It is also worth noting that mortgage inter-est rates are lower recently than in the 1980s and 1990s and that this lower interest rate environment could support higher house prices and price to income ratios.

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Continued on page 11

by M.H. Morrison

Nationally, confidence in the market for newly built, single-fam-ily homes rose earlier this year, which could be attributed to low interest rates and very attractive home prices, according

to the National Association of Home Builders.“As a result, builders are slightly more optimistic that the housing

recovery is finally beginning to take root,” said NAHB Chairman Bob Jones in a press release.

Members of the Pennsylvania Builders Association are seeing the same trend locally but pointed out that this downturn and recovery are different from anything they’ve seen in their decades of experience.

“What worked in previous downturns will not work in this one. We had to think smarter to survive,” said Ray Venema, president of Susquehanna Builders Inc., Montoursville, Lycoming County. He has been in business since

1999 and part of the industry for 30 years.For his company, that has meant switch-

ing the focus from new home building to remodeling.

“It helped us weather the storm …remodeling has been consistent and growing.”

Larry Yanover, owner of Yanover Construction, York, made a similar switch in his business’ focus.

“We won’t forget about remodeling” as the economy picks up, he said. “It turned

into a nice niche.”

SurvivingandthrivingNow is a great time to do more business with existing custom-

ers and increase the “share of wallet” or “share of spend,” according to W. Kenneth Yancey Jr., CEO of SCORE, a nonprofit dedicated to educating entrepreneurs and helping small business start, grow and succeed.

“If you’re a builder buying a lot of different products and services is there a compatible or complementary service that you can add to your product so you get a share of your customer’s spend within the space you’re already operating?” he suggested

For example, a contractor who had focused solely on bathrooms may consider doing tile work in other areas of the home.

Yanover said it didn’t take much for his company to change gears and stay busy even during the downturn. He added that it helped that they knew the local market.

“Not to toot our own horn, but we didn’t overgrow [during the good economy]. We could adapt,” he said.

In the case of Susquehanna Builders, Venema said that the company found a profitable position by concentrating on energy conservation in both new home and remodeling projects.

This niche was based on what his customers wanted. He said that they had been asking for energy efficient choices like geo-thermal heating/cooling systems.

He also highlights his insulation package by comparing the energy efficiency of his homes against the code requirements—he’s about 30 percent better than the code. With this comparison, he takes the time to make his customers aware of the code changes.

He said that sharing that knowledge has helped his company by improving his customer relations.

MovingforwardOver the last two years, Venema has been fine tuning his market-

ing and advertising strategies, concentrating on home shows and Yellow Pages.

However, as he plans for the future, he has noted that customers under 50 are more likely to go to the online Yellow Pages. This led him to begin slowly decreasing the amount he spends on advertising in the printed tele-phone book while increasing his advertising in the online version.

Because this downturn and recovery are different, Venema said he is in no rush to invest in capital equipment. He remains very aggres-sive on limiting spending.

As businesses prepare to take advantage of the improving economy, Yancey said that it is imperative to determine what type of capital investment may be required and whether this can be done out of existing cash flows.

In his experience at SCORE, many business owners do not do a good job of estimating costs, so he said that now may be the time to consider a mentor.

“The important thing is to reach outside to the people with experience and who will ask you the hard questions and will help you with analysis.”

Mentors can be found within PBA and the locals or even through organizations like SCORE.

FocusoncustomerserviceYanover said that customer service is always the key to success even

when the economic recovery has come.Customer service includes educating consumers about the new

construction code and local permitting processes.“We do a lot of continuing education and taking classes through

the local and being involved with the state” he said. “You have to be on the cutting edge of what’s changing, so you can help customers through the whole process.”

He also believes home prices will stay more in line with where the average consumer needs them to be. This “price check” will last long after the recovery.

“The industry has changed,” Yanover concluded. s

RayVenemaofSusquehannaBuildershasbeenfocusingonenergy-conservationinhisprojects.

Ready for the turnaroundBusinesses are preparing for the improving economy


ForeclosuresHouse price stability will be a critical factor affecting housing recov-

ery, not only because price stability is necessary to entice buyers back into the market but also because declining house prices have replaced subprime mortgages as the driving force in the foreclosure crisis.

Areas that experienced the biggest price run-ups are now suffer-ing the largest price declines, leaving many buyers with homes worth less than the outstanding mortgage debt and forcing homeowners into foreclosure.

Given the moderate pace of house prices in Pennsylvania, both up and down, the foreclosure problem is much smaller than in most other states.

The foreclosure rate on prime mortgages in Pennsylvania has been very low, reaching a peak of 0.5 percent in June 2009.

This rate was less than half the national average, and Pennsylvania was one of the best performing states in terms of foreclosures in the fourth quarter of 2009.

TherecoveryThis historic housing bust has reduced production to such lows

that full recovery for most areas will be a multi-year process, but Pennsylvania’s overall housing market conditions are sound.

Production during the boom was above pre-boom levels but moderate compared to other areas. House price appreciation and subsequent declines have also been moderate, resulting in current house price levels that should be sustainable.

This relatively stable house price environment has helped to keep mortgage foreclosure rates in Pennsylvania among the lowest in the country.

Based on these fundamentals, the National Association of Home Builders expects single-family housing starts in Pennsylvania to show strong growth, a 24 percent increase in 2010, and a further 46 percent improvement in 2011, reaching 29,000 units by the fourth quarter of 2011, a level that is roughly 80 percent of pre-boom production.

This article was prepared by Peter Grist and Robert Denk, senior econo-mists at the National Association of Home Builders in Washington, D.C. s


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HousinG mArket recoVeryContinued from page 9

Foreclosuresstartedonprimeloansbystate,fourthquarterof2009

by M.H. Morrison

The most popular remodels, in general, are still bathrooms and kitchens, according to one of the Pennsylvania Builder Associa-tion’s members.

Roy McClain, vice president of Advanced Kitchens and Baths Inc. of Mechanicsburg, said that last year kitchen remodels were the top projects with baths being more popular this year.

What’shotThe National Kitchen & Bath Association compiled a list of the

most popular choices for residential kitchens in 2010. Traditional styles still have the top slot with contemporary designs holding second place.

McClain said that he has found locally that homeowners are remodeling sooner. He said that three or four years after someone moves into a new home, it is not unusual for his company to do a remodel. In those cases, the homeowner is usually upgrading the original products.

In his recent experience, McClain said that across the board, seniors are redoing baths instead of moving out.

“They’re upgrading their present home. Five years ago, they would have gone to a senior community.”

RemodelvalueIn its latest annual cost vs. value report from Remodeling magazine,

it was calculated that the average cost recouped (the value retained at resale) for a remodeling project is about 63.8 percent. That percent-age is the lowest in the magazine’s seven years of calculations.

Remodeling also reported that homeowners will get more “bang for the buck” with a basement or attic upgrade over adding a wing to the house. The other high return on investment projects included a deck addition and conservatively priced replacement siding, entry doors and windows.

RemodelinggainingThe National Association of Homebuilders said in April that the

decline in remodeling activity may be reaching an end, according to the NAHB Remodeling Market Index.

The RMI measures remodeler perceptions of market demand for current and future residential remodeling projects. Any number below 50 indicates that more remodelers say market conditions are getting worse than reporting improving conditions. The RMI has been running below 50 since the final quarter of 2005, but the first quarter 2010 is the best showing since the first quarter of 2006.

For the Northeast the remodeling market improved to 45.8 from 27.7 in the fourth quarter of 2009.

Across the country, “the remodeling market may soon reach its bottom and begin to grow in the coming months,” said NAHB Chief Economist David Crowe. “However, professional remodelers are still operating in a highly competitive marketplace and dealing with consumers who are uncertain about the future.” s


Bathroomremodelstopcustomer’sprojectlistin2010atAdvancedKitchensandBath,whichrecentlyreceivedafirstplaceawardforitsdesignworkfromtheNationalKitchen&BathAssociation(NKBA).

AdvancedKitchensandBathofMechanicsburgcreatedaColonialcolorschemewithvintagefinishesonthecabinetsinakitchenprojectthatalsoincludedrecycledflooring.Thecompanynotedthatkitchenremodelswereoneofthemostpopularprojectsin2009.

Kitchen, bath remodels still popularNortheast region’s remodeling numbers picking up

member insider • Keystone Builder I A

MeMberInsIderJuly/August2010

by M.H. Morrison

Customers take note when a business is a member of a professional organization, and it may help them make the decision on where to take their business.

Brian L. Durbin, partner of Durbin Companies, Altoona, said that memberships in the Pennsylvania Builders Association and local builders association, among other affiliations, are credentials that help “qualify that you know what you are doing.”

He said that being a member of a professional organization also shows that you are “active in advancing your profession and career.”

Doug Meshaw, CEO/executive vice president of PBA, agreed and added that consumers “like knowing that somebody is part of a professional group … there is an organization to go to if they have problems.”

Additionally for consumers, Durbin said that a PBA membership is an assurance of “who and what you are willing to do. You’re in it for the long haul. You’re in it for a business. It’s not a side business.”

He said that working with other local and regional groups is another way to be recog-nized by consumers as a part of a community and as a professional.

For PBA members, reminding consumers of their affiliations and commitments to the industry should include, at a minimum, using logos for PBA, the local BA and National Association of Home Builder on all marketing materials.

Meshaw said that he sees the logo as particularly helpful when there is a long list of contractors, showing the professional affiliation gives those builders a bit more credibility.

When a member is out bidding a project, Meshaw has suggested leaving a copy of PBA’s brochure on choosing a contractor (which can be downloaded from the “Consumers” tab at the PBA website, www.PaBuilders.org). This piece of communication shows the potential customer that the member is committed to meeting and exceeding the highest standards.

The PBA logo and guidelines for its use can be found at www.PaBuilders.org under the “Education and Resources” tab.

Taking your affiliation to your customerMembership in PBA counts with the general public

Memberscanclickonthe“PBAlogoandlogousageguidelines”underthe“EducationandResources”tabatwww.PaBuilders.orgtodownloadvariousPBAlogosforuseinpromotionalmaterials.

B I Keystone Builder • member insider

by Elizabeth Bishop

The Pennsylvania Builders Association has strong interest in the results of the primary election held on May 18.

In a brief overview of the race, out of the 19 candi-dates running for Congress, five had primary opposi-tion. Of the 25 Pennsylvania state Senate candidates, only two faced opposition. Twenty-six of the 203 state House candidates had primary opposition.

There were several races that PBA closely followed.The special election for the 12th Congressional seat

was a national focus. As a result, millions of dollars were contributed by both Democrats and Republicans.

The Southeastern Pennsylvania districts are registered 2-to-1 in favor of Democrats but do vote conservatively.

These conservative roots allowed Sen. McCain to win the 12th Congressional District during his 2008 presidential campaign.

As a result of the special election, Mark Critz, D-Cambria, will finish out the remainder of the late Congressman John Murtha’s term and will face Tim Burns, R-Washington, in November for a full term for the 12th Congressional seat.

In the gubernatorial primary, Dan Onorato, D-Allegheny, won the Democratic primary, while Tom Corbett, R-Allegheny, won decisively against Sam Rohrer. They will face each other in November.

After a close race in the Democratic primary for the lieutenant governor position, Jonathan Saidel, D- Philadelphia, conceded to Scott Conklin, D-Centre, a former PBA member, prior to a recount taking place.

In the U.S. senatorial race, f ive-term incum-bent Arlen Specter, D-Philadelphia, lost to Congressman Joe Sestak, D-Delaware, by 54 to 45 percent of the votes.

On the Republican side, Pat Toomey, R-Lehigh, crushed opponent Peg Luksik, R-Cambria, 81.5 percent to 18.5 percent.

Sestak and Toomey are expected to have an intense race this fall.

The primaries for Congress had an interesting outcome in District 11. Paul Kanjorski, D-Luzerne, defeated two challengers in the Democratic primary.

This could set up a major battle in the fall against Lou Barletta, R-Luzerne, who has run against Kanjorski unsuccessfully in the past.

There were several interesting races for the Pennsylvania state Senate.

In the 12th District, there was an open seat due to the retirement of Sen. Raphael Musto, D-Luzerne.

In the Democratic primary Rep. John Yudichak deci-sively beat Wilkes-Barre Mayor Tom Leighton.

Since this is considered to be a Democratic district, Yudichak is expected to beat Republican challenger

Stephen Urban, a Luzerne County commissioner, in the fall.

In 22nd Senate District, Democrat John Blake— former deputy secretary of the Department of Community and Economic Development for the Rendell administration beat five other candidates, including Rep. Jim Wansacz.

This was an open seat due to the retirement of Sen. Robert Mellow, D-Lackawana, who endorsed Blake during the primary. Blake will face Republican Frank Scavo in November.

In another open Senate seat in the 46th District, due to the retirement of Sen. Barry Stout, D-Washington, both Timothy Solobay, D-Washington, and Kris Vanderman, R-Beaver, ran unopposed.

Solobay is a major proponent of the mandatory residential sprinkler requirements. Vanderman is a long-time PBA member and legal counsel to the Washington County Builders Association.

There were several races featuring incumbents for the state House.

Long-time incumbent Rep. Joseph Preston, D-Allegheny, won the 24th District. He is the House Consumer Affairs chair.

Rep. Paul Costa, D-Allegheny, retained his seat in the 34th District.

Former House Speaker Bill DeWeese, D-Greene, won the 50th District in a close race. He faces a variety of charges brought against him during the Bonusgate Capitol corruption investigation.

In the 93rd District, Rep. Ron Miller, R-York, faced a close primary. He has been a longtime supporter of PBA.

Rep. Rick Arnold, R-Luzerne, was unopposed in the Republican primary for the 119th. He is a homebuilder and member of PBA. He will face Democrat Gerald Mullary in the general election.

Former House Speaker John Perzel, R-Philadelphia, won in the 172nd, even with charges pending against him as a result of Bonusgate.

A major sponsor in our efforts to extend expiring permits, Rep. Michael O’Brien, D-Philadelphia, won his primary in the 175th.

Rep. Babette Josephs, D-Philadelphia, who was instrumental in moving our data quality legislation, won her primary in the 182nd District.

There were changes in the state House, too.In the 131st District, incumbent Rep. Karen Beyer,

R-Lehigh, lost to Justin Simmons, a 23-year-old who interned with Sen. Bob Mensch, R-Montgomery.

Overall, the results from the May primary will lead to fascinating races in the fall. PBA encourages you to get involved, register to vote, get to know the candi-dates and contribute to PaCAH, your home builder political action committee.

On

the h

ill

Election wrap up


Mem

ber sp

otlig

ht Dream Maker Homes

Teamwork helps everyoneby T.W. Burger

D avid McGuire was 28 years old when he helped somebody build a mobile home park. Then he got into putting in modular homes, and then graduated to stick-built homes. It just sort of

happened, he said. Now, at 50, McGuire can’t think of anything else he would rather do.Not that it’s been easy these past couple of years. There are plenty of

speed bumps out there.“Besides the sluggish economy and competition, you have to be sure

you’re doing a good job. The better work you do, the more chance you have to get work,” McGuire said. “I don’t advertise, believe it or not. I’m not even in the phone book. Everything is by referral.”

Once, early in the life of Dream Maker Homes, a customer, an employee of the local electric utility, wanted a home built. He and his wife had five kids and lived in a single-wide trailer.

“They had very little money. We put a house up for them and made, basically, nothing on it,” he said. “We just felt it was the right thing to do, even though we made no money on it,” McGuire said. “But five employ-ees of that company bought houses from us after that. And it was all by word of mouth.”

Last winter, McGuire’s family and business both suffered a blow when his truck caught on fire in the family garage on Jan. 21.

The resulting fire took out the entire house.“That house was my office and my model home,” he said. “We lost

everything … things from when I was a kid, records, everything. So we had to take time off to build our own home, and that slowed us down a good bit.”

McGuire said his house, built about 13 years ago, had been constructed before firewalls and other safety measures. Even if the house had had only the former, the fire would likely have not spread into the main part of the house.

“There’s a lot to learn, with all the new requirements,” he said. “That’s the good and the bad. We don’t agree with all of them. Even though we had that fire, I don’t think sprinkler systems should be a requirement but an option. They add at a minimum between $6,000 and $12,000 to the cost of the average home.”

For the work on his house, he relied on many of the same subcon-tractors he counts on to put up the homes he sells. If he has learned anything by belonging to his state and local builders’ associations, it’s that everybody is in the same boat.

“Even though we’re all competitors, we have learned about team-work. We get together and talk about the new rules and regulations.

We have formed a stronger network for ourselves. We came to trust each other,” he said. “We recommend one another, and we learn from each other. In fact, I’m working with one of my competitors to put up a house for another fire victim. It’s good. We help each other out. There have been some ‘creative differences,’ but we’ve worked together for years. We know what to expect from each other.”

Like many home-building firms, Dream Maker Homes is no huge conglomerate.

The company at its core consists of McGuire, his wife, Tracy, and four or five subcontractors “that we use constantly,” he said. “A lot of my subcontractors are members of the builders association themselves. Whether driveway, excavations or pools, we try to use members. We try to give each other work.”

In more than two decades building houses, he’s seen a few things.“There was a pastor from Perry County who retired and moved

with his wife. They came to me with plans to their existing house. They wanted their old house duplicated because they loved it. We had to have stuff custom made. They were very particular. I had some switches that were five or six inches off and I had to move them. In the end, though, they were real happy with it. Their daughter walked in and said ‘this is weird…you moved their house up here.’”

Once, he said, he had to move a hole.“We excavated a basement, 55 feet by 32 feet. The next day, we had

five feet of water in it. We had hit a spring. The homeowner was not too happy about it, but we had to dig a new hole somewhere else,” he said. “That was a pretty huge surprise.”

McGuire is president of the Huntingdon County Builders Association.His firm works mostly within a 50-mile radius, he said, although he has

traveled twice that distance to install geothermal systems.He says belonging to the state association is an extension of the

networking he finds in his local group.“We all learn from one another. There is nothing we can’t ask

another member. Even when we have trouble with customers, we talk about different ways of controlling that,” he said. “I notice that the guys who come to the meetings are the guys who will work together. It’s a good thing.” s

Business quick facts: Dream Maker Homes•AreasofOperation:Mideast Pennsylvania•AssociationInvolvement:President of the

Huntingdon County Builders Association

P r o P a n e 1 0 1 :

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keystone builder july/august 2010

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