Duro-Last Announces Promotions

Duro-Last® Roofing, Inc. is pleased to announce the promotions of Shawn M. Sny and Jason P. Tunney to Vice Presidents of John R. Burt (JRB) Enterprises, which consists of Duro-Last® Roofing, Inc.; Plastatech^® Engineering, Ltd.; Tri-City Vinyl^®, Inc.; EXCEPTIONAL^® Metals; and Creative Impressions^® Printing, Silkscreen & Embroidery (all located in Saginaw, Michigan) as well as Oscoda Plastics^®, Inc.; and TIP-TOP^® Screw Manufacturing, Inc. (both located in Oscoda, Michigan).

Both Sny and Tunney are grandsons of the late John R. Burt, who founded the companies in John R. Burt Enterprises.

In addition to continuing his work with the Duro-Last Sales Department, Shawn M. Sny will be directing special projects within all the JRB companies.

“I am very grateful to be a part of the John R. Burt Enterprises,” said Sny. I am looking forward to helping our companies grow and flourish. New product lines and more efficient manufacturing processes will continue to be implemented so that we can better serve our valued customers.”

Prior to his promotion, Sny was the Division Manager for Duro-Last, and also held the positions of District Regional Sales Manager and Sales Coordinator.

He earned a Bachelor of Science degree in cardiac rehabilitation from CentralMichiganUniversity.

Sny and his wife, Kerri, reside in SaginawTownship with their two daughters.

Jason P. Tunney will oversee the Duro-Last Legal Department and focus on records retention; community relations; risk management; and insurance and banking relationships for all the JRB companies.

"My grandfather built this business on outstanding customer service and the highest quality products in the roofing industry,” said Tunney. “Our current management team has successfully achieved those goals, and my grandfather would be proud of the accomplishments of his companies. I am honored to be joining our management team and committed to continuing those core values that have made our family of companies so successful."

Tunney most recently served as Corporate Attorney at Duro-Last. Additionally, he worked as a Quality Assurance Regional Manager and also in Field Operations for the company.

Prior to joining Duro-Last, Tunney worked as an attorney in the Cleveland office of Tucker Ellis & West LLP, where he defended cases in the areas of toxic torts and maritime personal injury. He also served as an assistant prosecuting attorney in Saginaw, Michigan.

Tunney earned his bachelor’s degree from the University of Michigan and his law degree from the Case Western Reserve University School of Law.

He resides in SaginawTownship with his wife, Pamela, and three sons.

With corporate headquarters and a manufacturing facility in Saginaw, Michigan as well as other manufacturing facilities in Grants Pass, Oregon; Jackson, Mississippi; and Sigourney, Iowa, the Duro-Last roofing system has become known as the "World’s Best Roof”®.

Since 1978, Duro-Last Roofing, Inc. has manufactured a custom-fabricated, reinforced, thermoplastic single-ply roofing system that is ideal for any flat or low-sloped commercial and industrial building. Energy-efficient and extremely durable, the Duro-Last roofing system is also leak-proof, virtually maintenance-free and resistant to chemicals, fire, punctures, and high winds.

For more information, contact Duro-Last Roofing, Inc. at 800-248-0280 or visit www.duro-last.com.

BUILDER CONFIDENCE IN MULTIFAMILY MARKET SLIPS IN THIRD QUARTER

Builder confidence in the multifamily housing market sagged in the third quarter of 2008, pushing both the Multifamily Condo Market Index (MCMI) and the Multifamily Rental Market Index (MRMI) to their lowest levels since the National Association of Home Builders created the indexes in 2003.

"We have a serious supply/demand imbalance in the housing market, coupled with a weakening job market, and stringent credit market conditions, and that is negatively impacting the multifamily sector," said David Seiders, NAHB's Chief Economist.

The component of the MRMI that gauges supply was dramatically lower for both market-rate and affordable apartments, standing at 22.2 and 15.7 respectively for the third quarter. At the same time last year, the same component stood at 43.8 for market-rate and 44.3 for affordable apartments.

NAHB's Multifamily Market Indexes are derived from a quarterly survey of multifamily builders and developers in which their responses are rated on a scale of 0 to 100, with a rating of 50 generally indicating that the number of positive responses is about the same as the number of negative responses.

The MCMI, which gauges current and expected supply in the condominium market, sank into single-digits for the first time: the index value for current conditions stood at 8.1 in the third quarter, dropping more than five points from 13.5 at the same time last year. Builder confidence in the condo market over the next six months remains low as well: the index tracking this measure fell from 20.8 in the third quarter of 2007 to 9.9 in the third quarter of this year.

Apartment builders are not optimistic about the next six months either--the component tracking expectations for supply for market-rate apartments fell from 47.1 in the third quarter of last year to 19.1 in the third quarter of this year. Affordable housing developers were even more pessimistic: the component of the index tracking their expectations for supply over the next six month slipped to 20.3 in the third quarter of 2008, down from 39.1 at the same time a year ago.

According to David Seiders, even in those markets where the rental apartment demand and supply are in balance - or where demand exceeds supply-- multifamily developers have been unable to get new projects started because of the ongoing credit problems in the capital markets. Since early this year, NAHB has ratcheted down its forecast for multifamily housing starts substantially.

FDIC Bank Takeovers Hurting Home Sales, Builders Report

Home builders with outstanding construction loans are reporting that they are having to stop work on new housing developments and are losing sales as the result of failed banks and thrift institutions being taken over by the Federal Deposit Insurance Corporation (FDIC).

“Builders with outstanding loans that are placed under FDIC control are frequently unable to contact a decision maker to deal with routine but time-sensitive matters related to loan draws or extensions,” NAHB President and CEO Jerry Howard said in a Nov. 20 letter to FDIC Chairman Sheila Bair.

“Some builders have encountered what seem to be arbitrary criteria on whether or not loans receive continued funding,” Howard added. “Again, these developments are unnecessarily turning good loans into problem assets that will significantly exacerbate the losses that must be absorbed by the FDIC and the building and banking industries.”

Reports of severe financing problems stemming from FDIC bank takeovers have started proliferating among builders in Texas, a part of the country whose housing markets have been performing notably better than the national average.

One builder, for example, complained that he has been unable to receive a draw on his construction loan for more than four weeks and, as a result, has been unable to finish work on homes that have already been sold. He said that there is a possibility that the FDIC will also require another appraisal of his homes, which would cause more delays and further jeopardize the viability of his project.

In his letter, Howard praised the efforts of the FDIC to limit mortgage foreclosures, but noted that housing production loans are now experiencing the same kind of severe stress afflicting the home mortgage credit sector.

“Home builders are having extreme difficulty in obtaining credit for viable projects, and those with outstanding construction and development loans are experiencing intense pressure as the result of requirements for significant additional equity, denials on loan extensions and demands for immediate payment,” he told Bair. “In many cases, performing loans are rendered nonperforming as a result of these actions.”

Howard asked for an opportunity to meet and work with the FDIC to address “this serious and urgent issue.”

Adverse economic and credit conditions severely weaken construction

The weak economy and tight credit conditions, coupled with severe job losses and the resulting decline in state government revenues, will translate into significant weakness for the construction industry through 2010, leading the Portland Cement Association (PCA) to again adjust its cement consumption forecast.

The latest PCA forecast of cement, concrete, and construction predicts a 12.8 percent decline in cement consumption in 2008, followed by 11.9 percent and 2.1 percent declines in 2009 and 2010, respectively.

The PCA report cites the continued drop in residential starts and the erosion of the strong fundamentals supporting nonresidential construction as major factors leading to reduced cement consumption. The weak economy also has affected the public construction sector.

“Several economic factors are negatively influencing the construction industry,” Edward Sullivan, PCA chief economist said. “High energy prices, the sub-prime crisis, the melt-down of our financial markets, inflation, job losses and tight lending standards are combining to create weak economic conditions and the emergence of huge state deficits. Public construction accounts for nearly half of all the total cement consumption in the U.S., and states in poor fiscal condition will need to cut back on this spending.”

PCA expects cement consumption in residential to decline 31.7 percent in 2008 and 16.9 percent in 2009, but a rebound of the market in the second half of 2010 will lead to a 12.1 percent increase in consumption in that year. Consumption in the nonresidential sector is expected to decline 22.2 percent in 2009 and the public sector will see 6.6 percent declines in 2009 and 2010.

“The nonresidential construction market typically takes 18 months from the onset of better economic conditions to rebound,” Sullivan said. “With weak consumer spending, this sector will be especially hit hard in retail construction.”

PCA predicts a recovery to begin in 2011 with a 10.3 percent increase compared to 2010 consumption and a return to near-record consumption levels by 2013.

Construction Input Prices Fall in October

Summary

Construction input prices fell 2.8 percent in October – the largest one-month decrease since July 1986 – according to the November 18 producer price index (PPI) report by the U.S. Labor Department. Despite the dramatic decline, construction input prices remain 10 percent higher than October of last year (see graph below).

Prices for fabricated structural metal products dropped by 0.6 percent in October, but are still 15.1 percent higher than one year ago. Plumbing fixtures and fittings prices dropped slightly in October by 0.1 percent, however they are up a relatively modest 4.1 percent from October 2007. Nonferrous wire and cable prices dropped 7.7 percent – the largest monthly decline since 1949. The decrease brings the year-over-year change down 5.4 percent from October 2007. Prices for fabricated ferrous wire products increased 2 percent in October following a slight decrease in price the month prior. Still, prices are up an astonishing 30.55 percent from a year ago. Softwood lumber prices decreased 7.4 percent from September, the largest monthly decrease since November 2004, and are now down 8.8 percent from last October. In contrast, asphalt felts and coatings prices continue to increase, rising 5.7 percent from last month and up 60.2 percent from a year ago.

Crude energy prices dropped significantly, down 24.9 percent in October, with crude petroleum down 26 percent and natural gas down 29.1 percent. Gasoline prices dropped 24.9 percent on a monthly basis. Finished energy good prices fell 12.8 percent from the previous month. Overall, prices for finished goods decreased 2.8 percent, making it the third consecutive monthly decrease.

What This Means

"Even as the broader economy continues to deteriorate, and is increasingly frustrating development and construction efforts, the seeds of the next recovery are being sown," said Associated Builders and Contractors' (ABC) Chief Economist Anirban Basu. "With construction materials prices generally in retreat, developers will find it easier to make their pro formas work. However, in the near term, this may make little difference to contractors and others in the construction supply chain since the credit crunch continues with little sign of abatement," said Basu.

"Even though certain materials costs are declining, developers are finding that the revenue stream for new construction, such as new tenants, is weak," added Basu. "Therefore, revenue projections related to prospective development remain muted.

"One of the big winners in declining materials prices is the federal government," said Basu. "The next stimulus package will likely possess a significant infrastructure component, and with lower materials prices, the federal government will be able to purchase more infrastructure per dollar. This would appear to be an advantageous moment for the nation to begin to build its 21st century infrastructure, since such investment would address both short- and long-term economic considerations."

Producer Price Index, Inputs to Construction Industries, Oct. 2006 through Oct. 2008




For more information, contact Gerry Fritz, fritz@abc.org

HOUSING AFFORDABILITY NATIONWIDE RISES TO HIGHEST LEVEL IN FOUR YEARS

With home prices decreasing and interest rates holding at historically low levels, the number of potential home buyers nationwide who can afford to buy new and existing homes has reached the highest level in more than four years, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) released today.

According to the third-quarter HOI readings, 56.1 percent of all new and existing homes that were sold were affordable to families earning the national median income of $61,500, far more than the 40.4 percent of families who could afford homes at the peak of the housing boom.

"If there is a silver lining to this crisis, it would be that some housing markets have become more affordable with a larger inventory to choose from," said NAHB Chairman Sandy Dunn, a home builder from Point Pleasant, W.Va. "But this is undeniably a crisis and Congress needs to act on housing stimulus to get the market moving again."

The two most affordable major housing markets in the country during the third quarter of the year were Indianapolis, Ind., and Youngstown, Ohio, according to the HOI. In both Indianapolis and Youngstown, 91.0 percent of homes sold in the third quarter were affordable to families earning the areas' median household incomes of $65,100 and $52,000, respectively.

Also near the top of the list for affordable major metropolitan areas were Grand Rapids-Wyoming, Mich.; Warren-Troy-Farmington Hills, Mich.; and Detroit-Livonia-Dearborn, Mich., in that order.

One smaller metro market (fewer than 500,000 people) outranked all others in terms of housing affordability during the third quarter of 2008 -- Springfield, Ohio, where 92.9 percent of all homes sold in the period were affordable to families earning that area's median household income of $54,500.

New York-White Plains-Wayne, N.Y.-N.J., was the nation's least affordable major housing market for the second consecutive quarter. In the New York market, 10.6 percent of the new and existing homes sold during the third quarter were affordable to those earning the area's median family income of $63,000.

Other major metro areas at the bottom of the housing affordability chart included San Francisco-San Mateo-Redwood City, Calif.; Nassau-Suffolk, N.Y.; Los Angeles-Long Beach-Glendale, Calif.; and Miami-Miami Beach- Kendall, Fla., in that order.

Among smaller metro areas, the other markets at the bottom of the affordability chart were San Luis Obispo-Paso Robles, Calif.; Santa Cruz-Watsonville, Calif.; Napa, Calif.; and Bend, Ore., respectively.

Please visit www.nahb.org/hoi for tables, historic data and details.

CACHET HOMES OFFERS HOMEBUYERS A “HOLIDAY BONUS” –

Cachet Homes, a leading luxury homebuilder in Arizona, is pleased to announce its inaugural “Holiday Bonus” sales event. From now until the end of the year, anyone who closes on an inventory home in any of Cachet’s premier communities – Cachet Homes at Verrado in Buckeye, Paseo Lindo or Crescent Falls and Serenity Shores at Fulton Ranch in Chandler, Cachet Homes at Blackstone in Peoria, Bel Canto at Mirabel and Encore at Grayhawk in Scottsdale and Cachet Homes at Carrara Estates in Gilbert – will receive up to 10 percent off the price of the finished home as well as $500 to donate to St. Mary’s Food Bank or the charity of the buyer’s choice. In keeping with the holiday spirit, Cachet can also move homebuyers into their new communities before the New Year.

“Rather than sit around and lament the current housing market, Cachet has chosen to give thanks for what it has while giving its homebuyers a special holiday discount and a chance to do good in the community,” said Diane Byrne, vice president of marketing for Cachet Homes.

In addition to the charitable contributions that will be made as a result of home sales, Cachet’s entire staff is also volunteering at St. Mary’s Food Bank on Dec. 12, as part of its annual holiday office celebration.

“Volunteering this year was actually a collective idea arising out of an office conversation,” said Byrne. “A comment was made that there are many worse off than us. This conversation gained momentum, and we started discussing what we could do as a company to reach out to those who needed us this holiday season.”