July 2016
Supported By
Recruit 3 & You're FREE
 
Recruit at least 3 new Builder or Associate members in 2016 and
your next membership renewal will be free. Affiliate members or members being reinstated within 1 year not included in promotion.

If you are referring the new member to   SIF Workers' Comp Program (which could pay for their first year's dues,) please make sure to TELL LAUREN (504.837.2700 or lauren@home-builders.org) that you recruited them prior to the Board of Directors meeting that month.

If your 2016 membership renewal comes up prior to recruiting the 3 members, your 2017 renewal will be comped. Only the first 3 members will be counted (recruiting 6 new members does not grant 2 years of membership renewal.)


Resources:
  • Use the SPIKE ROLODEX to help identify potential new members that you work with daily. Give the completed Rolodex to Lauren to find out who's already a member. 
Auctions in August

DONATE TO AUCTIONS IN AUGUST 
Benefiting





It's almost time! Gulf Coast Bank's Auctions in August (AIA) is only a few weeks away. 100% of the donations made for NOEL will benefit the foundation. 

AIA is a silent auction hosted at each of the 19 branches and online during the entire month of August. Please consider donating an item! Items, or groups of items, must have a value of at least $50. Items valued over $150 will be listed on the Gulf Coast Auctions in August website. 

Since its inception in 2008, AIA has raised $674,000 for hundreds of non-profits. Because of Gulf Coast Bank & Trust's commitment to the community, we devote the bank's marketing budget for the months of July and August to promote AIA! 

Contact Philip Thomas to donate an item.
504.837.2700 or philip@home-builders.org
Jefferson Joining Forces THANK YOU

NOEL would like to thank Rolf Pareilus, Viking Construction, and Floyd Simeon, Crescent City Builders, for donating their time to do site inspections for the Jefferson Joining Forces program.  The Jefferson Joining Forces program remediates code violations for elderly, low-income and/or disabled home owners.  These repairs are done at no cost to the home owner, while being fully compensated to the contractor.  For more information on how you can donate your services or products to the Jefferson Joining Forces program, contact Philip Thomas @ (504) 837-2700.
Viking Construction


DBE Education Series

Rodeo Pics








Economic Forecast for the Second Half of 2016: Decent but Nothing Remarkable
Elliot Eisenberg, Ph.D. is President of GraphsandLaughs, LLC and can be reached at elliot@graphsandlaughs.net. His daily 70 word economics and policy blog can be seen at www.econ70.com.


Despite GDP again slowing in Q1, as has been the case for the past few years, the economic recovery that began in July 2009 remains intact. The poor performance of the US economy from January through March was almost expected, and the incoming employment, housing, and service sector data all point to a modest economic pickup. GDP growth the rest of the year should average 2.2%, with growth in Q2 closer to 2.75% as the economy rebounds from a tough Q1. The combination of continued wage growth and increased residential construction activity suggests that 2016 will probably improve as it progresses.

Despite weak energy prices, a continued strong dollar that has hurt manufacturing by making US exports costly and imports cheaper, and a struggling agricultural sector, the rest of the economy is OK. As long as the service sector and construction continue to expand and wages rise, the US economy will continue to grow despite the headwinds it faces. Importantly, the labor market continues to strengthen, voluntary quit rates are rising and are almost back to where they were before the Great Recession, the number of involuntary terminations keeps falling, and job creation, while down from last year, remains strong. At this rate, there will be little slack in the labor market 12 months from today. Lastly, passage of the FY 2016 budget package has boosted economic activity as it extended some tax breaks and eased spending caps on domestic and military spending, making fiscal policy pleasantly expansionary.

A definite economic bright spot in 2016 has been housing, and that is due to rising household formation. After averaging well over 1.2 million annually from 1983 through 2006, household formation plummeted to just 600,000 in 2014. Since then, it has been rising by about 1.2 million a year. Add to this slightly improved access to credit, and housing starts should reach an annualized average rate of 1.19 million during the second half of 2016, their best level since late 2007, with new single-family construction contributing at a pace of 810,000 units and multifamily adding 380,000. Despite being severely constrained by a lack of inventory, pending home sales are strengthening and existing home sales should rise by 3% annually, while home prices should rise by 5% annually.

As for inflation, it remains benign but shows signs of slowly rising from its current level. The dollar is likely to strengthen slightly in the latter part of the year and oil prices appear to be rising, thus the two trends that have exerted strong deflationary pressures on imports and energy respectively should dissipate. Moreover, as the unemployment rate continues falling, labor shortages are becoming increasingly widespread. This pushes up wage growth, which is definitely rising, albeit modestly, and thereby boosts household spending. However, rising prices and wages will push the Fed to raise short-term rates by one-quarter-of-one percent as early as July, and certainly by November or December. Long-term rates have bottomed and 10-yr Treasuries will end the year at close to 2% as the economy strengthens.

In short, the economy continues to grow modestly. Short-term interest rates are likely to start rising, wages are rising, and residential construction activity looks to continue to slowly strengthen as we go into 2017. Most critically, continued solid job creation will keep consumer spending up and the likelihood of a recession during the next six months, close to zero.



FROM LAST MONTH
NAHB Outstanding Student Award - Lynn Greco
 
Congratulations to Lynn Greco, recent graduate of Delgado's Architectural/Design Construction Technology program, and a local student chapter member. Lynn was very active in HBA functions, and has received the Outstanding Student Awards from NAHB at the 2016 IBS in Las Vegas. 

Lynn, we are very proud of you, and wish you a very happy and successful career!
Government Assistance Increases Wages!
Elliot Eisenberg, Ph.D. is President of GraphsandLaughs, LLC and can be reached at elliot@graphsandlaughs.net. His daily 70 word economics and policy blog can be seen at www.econ70.com.


All too frequently the argument is made that government assistance programs subsidize low wage employers. That is, firms like Wal-Mart, McDonalds and Target, to name just a few, are able to pay very low wages precisely because management knows that their low paid employees will qualify for Medicaid, food stamps (officially known as the Supplemental Nutritional Assistance Program) and other such public assistance. As a result, it's assumed that these public programs allow firms to pay lower wages than would be possible were these programs not to exist. To be blunt, this position is completely wrong.
Rather than subsidizing low-wage employers, public assistance programs generally reduce the supply of low-skilled workers who are willing to work for low pay and poor benefits. This is because in many cases, benefits are more generous when family incomes are very low or zero. As family income rises, benefits are frequently cut back or eliminated entirely. By reducing the pool of workers willing to take poorly paying jobs, Medicaid and most public assistance programs tend to increase, rather than decrease, wages at the bottom of the pay scale. Were these programs not to exist, the unemployed would be more eager to work than they currently are, and thus more willing to work at a lower wage.
Again, the availability of health insurance, food stamps, and other assistance when work is not a requirement means that paid employment is somewhat less attractive than would otherwise be the case. Moreover, the fact that in many cases benefits are reduced as earnings rise means that work is financially less rewarding to these households than it is to unsubsidized households. In short, programs that offer more generous payments to those with no earnings than to those with higher incomes reduces the supply of workers willing to work at very low pay. This is quite the opposite of a subsidy to low-wage paying firms.
Two programs that are exceptions to the above are the Earned Income tax Credit (EITC) and childcare subsidies targeted at working families with low incomes. Because benefits are only paid to families with a parent who is employed, these programs encourage work. By boosting the supply of low-wage labor, these programs increase labor supply and thus decrease wages. However, these programs are not really subsidies to low-wage employers. Rather, they are programs that offer inducements for low-wage workers to enter the job market and take jobs that do not offer adequate pay by making it financially advantageous to do so. The goal of the EITC is to improve the standard of living of low-income families and encourage work, without fear that as a result of a rise in earned income, public benefits will be lost. In this way the EITC makes work pay.
In conclusion, public assistance programs that offer benefits to non-working Americans reduce the incentive to work, thus boosting wages. Similarly, programs that dramatically reduce benefits as household income rises also boost wages by making work less attractive. There are no subsidies here. While programs that incentivize work, like the EITC, increase the supply of workers and thus decrease wages slightly, calling such programs employer subsidies is essentially mistaking the bathwater for the baby.


Calling All Entries!
Entry Deadline: Tuesday, November 1
Member Rebate Program
The Member Rebate Program is a free member benefit of your State & Local Home Builders Association.

There are over 40 of the country's leading manufacturer brands participating in the Member Rebate Program.

Visit Member Benefits for more information, or CLICK HERE to view an online brochure with helpful information about the program.
In This Issue:
Help NOEL through Auctions in August
THANK YOU!
DBE Education Series
Pics from the Rodeo!
Editorial: Forecast for Q3 & Q4 2016
From Last Month
Calling All Entries!
JOB POSTINGS

Also Supported By:  

 

 

 

 

Did you know you can renew your membership online? 

Just login from the HBAGNO homepage to renew your membership.

July Calendar of Events
All Events held at HBA office unless otherwise noted 

See details below for 
"Featured Events"


13) HBA Executive Committee Meeting @ 4pm

19) HBA Board of Directors Meeting @ 4pm

28) Membership CONTACT DAY @ 8:30am

27-29) LHBA Committee & Board Meetings, Sandestin
FEATURED EVENTS
None this month! Enjoy your summer!
Job Postings
Warehouse/Forklift Operator
Goldin Metals
Harvey, LA

Email:
or Visit:

Apply in person at Harvey facility.
Salesperson
Goldin Metals
Harvey, LA 

or Visit:

Apply in person at Harvey facility.
Project Manager
Orleans Sheet Metal Works & Roofing 


Apply in person at Harvey facility.
Quick Links & Resources



* Under Compliance, click on Employers' Workers' Compensation Coverage Verification
NAHB Online Courses Logo
2016 Senior Officers of the Board

President, Floyd Simeon
Vice President, Mike LeCorgne
Treasurer, Frank Morse
Secretary, Michael Kraft
Immediate Past President, Roy Olsen

2016 Board of Directors

Steve Albert
John Arms
Alexis Brown
Nick Castjohn
Charlie Fontenelle
David Gaspard
Phil Hoffman
Kevin Katner

Jo Ann Kostik
Peter Lanaux
Bruce Layburn
Harold LeBlanc
Brian Mills
Scott Morse
Helmut Mundt
Randy Noel
Lynda Nugent Smith
Rolf Parelius
Kimberly Rooney
Dorothy Stanich
Zach Tyson
Kirk Williamson
Steve Wobbema
Wes Wyman


HBA Staff Contacts

Jon Luther , Executive Vice President
Philip Thomas, Education Director & NOEL Program Director  philip@home-builders.org
Lauren Galliano , Director of Membership & Industry Relations    lauren@home-builders.org
Rita Bautista, Governmental Affairs Representative    rita@home-builders.org
Shane Gray , Accountant  shane@home-builders.org


Did We Miss Something?
Please contact Lauren at the HBA office with any pertinent industry-related issues and/or professional achievements you'd like to share with your association members.

Feature Articles in upcoming issues of sticks & bricks or HBA's printed publication, the homebuilder quarterly(HQ), are FREE opportunities for HBA members to market themselves to 1,000+ industry professionals.

Click Here to Request Details and Submitter Deadlines