NAHB Fall Board Meeting
Sept. 27th – Sept. 29th
Dallas was the host for this year’s Fall Board Meeting. The meeting was well attended with representatives from across the country. The sessions were all held at the Hilton Anatole Hotel which had plenty of space to accommodate our needs.
One important challenge for the Board at this meeting each year is to approve the operating budget for the next year. NAHB’s membership totaled 140,549 as of August 31, 2015. Membership declined steadily from a peak in 2008 to 2012. The decline started to level off in 2013 and has remained steady in the last couple of years. As we see at Northern, membership trends are similar to trends in housing starts but tend to lag behind in timing. The Board approved an operating budget for next year with $65.4 million in revenues and $71.9 million in expenses resulting in an operating deficit of $6.6 million. When net operating revenue from the National Housing Center (NAHB’s office building in D.C.) is included the deficit is cut to $2.8 million. The Finance Committee continues to take a very conservative approach and the board authorized spending reserves to make up the deficit. It’s also encouraging that, when depreciation is added back, the budget actually shows a positive cash flow of $250K for the year. That hasn’t happened for several years. There are a number of budget categories, including the International Builder Show that could exceed targeted revenues which would result in less of a drain on the association’s reserves. IBS will be held Jan. 19th – 21st in Las Vegas and will once again feature a joint effort with the Kitchen and Bath Industry Show and three other trade groups. Over 2,500 exhibitors are expected to use 1.2 million sq. ft. of space. There will be over 120 educational programs offered. Gross revenues from the show to NAHB are projected to exceed $26 million. I encourage you to take a look at what’s being offered (www.BuildersShow.com) and make an effort to attend. It will be worth your time. There are numerous educational opportunities that can benefit you, and your business.
In addition to approving the Budget for 2016, the Board made several other decisions including some minor changes to the Bylaws. A surprise announcement was made at the meeting that NAHB will host a Presidential Candidate forum at IBS. Media involvement has been secured and contacts have been made with all the candidates to insure their participation. This is huge as it will allow us to focus the conversation on housing issues and hopefully get an indication of the candidates’ stance in these areas.
The association’s Chief Economist, Dave Crowe, gave a semi-optimistic report to the board. The current recovery is all about jobs. New jobs and employment growth are driving economic forces right now. The challenges are land availability, labor, and credit.
I attended both the Associates Committee and the National Sales & Marketing Council (chaired by Skip Howes from Colorado Springs) meetings on Monday. Associate members represent 2/3 of the total NAHB membership. The Committee is working on several tasks including expanding educational opportunities, membership growth and retention, and developing a leadership grant program designed to help get associates more active at the National level. The Sales & Marketing Council continues to develop resources available for the local councils, including expanding social media usage.
NAHB continues to actively lobby for the benefit of the housing industry in Washington. Jerry Howard, NAHB’s Executive Officer anticipates huge issues with the administration as it winds down its final months in control. Sitting Presidents often use regulations to implement changes they were unable to effect through legislation. NAHB will be diligent on its watch to minimize negative impacts on its members and the industry. One example is the final Clean Power Plan that took effect August 3rd. EPA’s initial proposal included provisions that would have forced states to adopt more stringent building code requirements. By modifying the final regulation, NAHB estimates it will save the industry over $360 million.
Log on to NAHB.org to see what your national association is doing for you and to explore the multitude of resources and information available. Thanks again for giving me the opportunity to represent HBA of Northern Colorado at the national level.
