3 p.m. --Which remodeler is right for your project?  | |
Dig in for the Battle: Springfield economy faces multiple challenges in coming year Businesses face challenges on many fronts: economic difficulties, an aging work force and young professionals with new ways of choosing their jobs. Those challenges – and how to meet them – were the focus of the fifth Economic Outlook Conference Sept. 16 at University Plaza Convention Center, presented by the Springfield Area Chamber of Commerce and Springfield Business Development Corp. The title of the conference, “New Challenges, New Opportunities,” spoke to the difficulty, as did a panel discussion on real estate trends and the day’s keynote speaker. | |
Springfield, like most other cities across the country, also faces an impending shortage of workers to replace the retiring baby boomer generation.
But Rebecca Ryan, founder and president of Next Generation Consulting, thinks Springfield is better equipped to handle the situation than many communities, due in large part to the area’s number of colleges and universities.
That was part of Ryan’s message as the conference’s keynote speaker.
“You want the city’s age graph to show that the majority of people are in their earning years,” she said. “Springfield, for the most part, has that.”
U.S. Census Bureau data in 2006 shows that nearly 40 percent of Springfield’s population is between the ages of 20 and 44, while only 15 percent is 65 or older. Clickhere for a graphical breakdown of Springfield's population.
Nationwide, Ryan said, two boomers will be retiring for every one person entering the work force in 2012, leading to a shortage of both overall workers and management experience.
That situation, combined with a fundamental shift from a goods-based economy to one built around information and knowledge, means business leaders have to find new methods of attracting and retaining young professionals.
“We know that the way young professionals choose (jobs) is just different,” Ryan said. “We’ve talked with more than 25,000 YPs, and they all say, ‘Live first, work second. Where I live is as important as where I work.’”
The key is making the community more attractive to younger workers, and while Ryan told the crowd “there are no magic bullets” to solve the problem, there are several ways to deal with it.
The most important item, she said, is to make sure young professionals have “a seat at the table” in making decisions, which also encourages diversity of ideas and backgrounds.
Another key issue for business leaders is intra-office communication. Ryan said the issue is not only between the boomers in management and the younger workers lower in the ranks; fundamental differences between Generation X and the younger Millenials complicate the issue.
Gen X, Ryan said, was heavily protected growing up – “They were raised not to trust men with puppies, people with candy,” she said – while the Millenials were given nearly everything they wanted as children.
“So when they come in to work, you have the Gen Xers who don’t trust anybody, and then you have the Millenials who love adults and cozy up to their bosses,” Ryan said. “It creates friction.”
But, she added, the one thing they have in common is that they don’t rely on a company for job security. The majority of Millenials, she added, say that the reason they took their first job was to prepare for their second job.
“They’re very diverse, and they’re very willing to leave,” she said. “If they don’t like the job proposition you have, they’ll go somewhere else or they’ll start something themselves.”
Real estate woes
Businesses face significant pressure from the economy, and few sectors have been hit as hard as real estate.
A panel of local industry experts discussed issues the sector faces. Panelists were Matt Miller of Matt Miller Co. and Blue Block Lofts; Matt Morrow, executive officer of the Home Builders Association of Greater Springfield; and Rick Quint, president of the Springfield division of Walton Construction.
Quint said the commercial construction market is being hit by economic insecurity, which makes developers more unsure about whether to proceed with projects. Another issue is the rising prices of raw materials including asphalt and metal.
“We’ve got a situation where subcontractors, in some cases, can’t guarantee prices for more than 10 days,” Quint said.
The problem on the residential side, meanwhile, is not as much about construction. Morrow said that the three factors that lead to a strong housing market – population growth, job creation and home affordability – are all good in Springfield.
The issue, he said, is the market to buy those homes.
“The credit crunch has created a definite buyer’s market – and a shortage of qualified buyers,” Morrow said.
The issue has been exacerbated in southwest Missouri by fewer people entering the market who are “house rich,” with significant money accumulated from selling homes in more expensive markets. The reason: Those people, Morrow said, can’t sell their homes in the current economy.
Downtown, according to developer Miller, is a bright spot. The downtown residential market in particular is strong; his 75 loft units are 100 percent leased.
“Springfield has been following the national trend of re-urbanization,” Miller said, pointing to the College Station theater project and Missouri State University’s downtown investment. “That trend will continue, but it will be tempered somewhat by short-term (economic) hurdles.”
July 1st, 2008Going Green Series: Green Building: This month, we continue our look at what it means to “go green” and protect the environment. In this report, KSMU’s Missy Shelton talks with local builders about green homes and the demand from buyers for green homes.Meet Scott Kisling, president and owner of Uptight Construction, Incorporated. He’s a certified green builder.Kisling also looks at ways to get some life out of used materials.There’s often a cost to going green. Kisling says using insulated concrete forms to make homes more energy efficient comes with a cost.Kisling’s own home is made with insulated concrete forms, something you’d never suspect just by looking at it. And he says he’s seen tremendous savings on his energy bill.As good as that might sound to homeowners looking to cut back on their energy costs, energy efficient features and other green building features are just starting to catch on in the Ozarks.Matt Morrow is Executive Director of the Home Builders Association of Greater Springfield.People have heard of going green but may not know exactly what that means, especially as it relates to homebuilding.Morrow refers to recent research done for the HBA.Since there is some confusion about what green building is all about, Morrow offers a definition.And in a tight housing market, those can be important selling points.Brett Godfrey is president of Built by Brett, Incorporated and is building green homes like this one in south Springfield.For homes that are going on the market (in other words, they’re not custom homes), builders have to make some tough choices: how many energy efficient and green features to include in the home. Godfrey says it’s a question he has to tackle.Godfrey and other home builders in the area are banking on homebuyers being enticed to hand over more green for features that are green.
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Guest Column: Research data answers common housing questions In an uncertain housing market, perhaps the most common questions I hear are: “How’s the housing market?” and “What does the future hold?” Our residential construction market was a moving target in 2007. In 2008, new challenges (and opportunities) for area home builders have presented themselves. In today’s market, many builders are liberated to innovate. Rather than giving masses of buyers no reason not to buy, builders in certain price range are seeking ways to differentiate their homes from the others on the block. The goal is no longer universality; it is distinction. In a buyer’s market, spec builders must capture the imagination of that one particular buyer who has looked at too many homes that appear too alike. And the builders I talk to relish the challenge. | |
While considerable national research exists regarding consumer confidence, home buying trends and home building niches, precious little local data is available. Yet we know that every local housing market is unique, with its own distinctive characteristics and dynamics. That is why the Home Builders Association of Greater Springfield this year contracted to gather, analyze and distribute an unprecedented level of highly relevant local market information to HBA members. This comprehensive research project (findings are being released publicly for the first time in this issue of SBJ, see page 11) included two quantitative opinion poll/surveys of the local housing market, and a series of demographically specific focus groups.
We are gaining valuable insight into the consumer preferences, trends, obstacles, and motivators that affect the housing decisions made right here in the Springfield-Branson region. Our findings give those in the housing industry a better opportunity to make wise business decisions and help guide HBA marketing and public education decisions as the voice of the residential construction and remodeling industries. This project helps us answer questions about what the future holds.
But what about that other question about the state of the housing market?
The best source of information on the subject today is tracked and maintained by the Greater Springfield Board of Realtors. The board is the authority on sales and listing information, and they have done a remarkable job. But aside from their exceptional work, little useful information exists on our economy’s housing and construction sectors.
It is remarkable that no regional, area-wide clearinghouse of construction data exists. Select municipalities and counties track housing starts and permits, but most do not. In most of the region, building permits aren’t even issued, much less counted and tracked. In those areas that do track such information, there is little consistency in methodology.
The HBA is partnering with the Ozarks Regional Economic Partnership to conduct an areawide comprehensive construction economic data research project. Data is being gathered, sorted and analyzed, providing valuable market tracking for housing starts, commercial building permits, remodeling permits, approved rezoning applications, etc. for our entire 10-county service area: Polk, Dallas, Dade, Lawrence, Greene, Webster, Christian, Stone, Taney and Barry counties.
This is an enormous undertaking, but once completed, this research project will allow our members and others to analyze what parts of the Ozarks have been experiencing the largest building booms and where construction has slowed.
We will fill an important information void in the region’s economic development landscape. Builders and developers can use this information (when paired with the Board of Realtors’ established housing sales and inventory data) to forecast where the next attractive business opportunity lies.
Matt Morrow is executive officer of the Home Builders Association of Greater Springfield. He can be reached at mmorrow@springfieldhba.com.
2008 Parade of Homes builds on variety
The Home Builders Association of Greater Springfield has been showcasing homes for more than 50 years through the annual Parade of Homes, but this year, variety is the key.
The 2008 Parade of Homes, slated for 1–6 p.m. June 20–22 and June 27–29, features 27 homes from Marshfield to Blue Eye, with prices ranging from $145,000 to $950,000. Click here for a guide to the parade, complete with photos, descriptions and directions for each stop.
“This is probably the parade that covers the most area,” said HBA Operations Manager Charlyce Ruth. “And it’s probably our largest price range of homes.”
The fact that there are so many homes on the market isn’t necessarily a reflection of slowed market conditions, Ruth said.
“More than half (of the parade homes) are already sold, and two already have home-owners living in them,” she said. “Everybody knows the numbers are down, but we’re still a strong area. Our builders are still working hard, and they’re still building and remodeling beautiful homes.”
Longtime HBA member Trent Cowherd of Cowherd Construction is a first-time Parade of Homes participant this year, showing a home in Republic that has nearly 2,000 square feet and is priced at $189,900.
He said he participated in a spring showcase about 10 years ago and got quite a bit of exposure. With additional inventory this year, he decided it was the right time to participate in the parade.
“We think we can show a lot of house for the dollar,” Cowherd said.
Something almost new
While remodeled homes have appeared in previous parades, two on this year’s route are unusual because of their proximity to downtown.
Both remodeled entries are in the West Central Neighborhood and are the work of Jack Pugh and David Rhodes of B’s Renaissance Renovations.
One of the homes was built in the 1890s, Pugh said, but it’s completely new in almost every way.
“We tried to do something that’s both new and fresh, but also pays tribute to the roots,” Pugh said.
Parade versus fuel costs
Ruth said it’s difficult to judge how the combination of higher gas prices and an expanded parade route will affect turnout, but she doesn’t expect much impact.
She said the HBA gets phone calls asking about the parade as early as January, and she’s heard of at least three people who come from out of state, from as far away as Colorado and Florida, planning their vacations around the parade.
June 2nd, 2008 Green Podcasts Provide Information on Building Green: A new podcast produced in
You’ve probably heard a lot about “green building” and making your home more “green.” A new podcast produced in
Morrow says this week’s podcast will focus on energy efficient insulation methods.
Information on the podcasts is online at Springfieldhba.com
