Builders now have an opportunity to see how their business stacks up against the competition. The National Association of Home Builders recently released the Cost of Doing Business Study, a national study of builders’ business practices and financial performance.
Available through BuilderBooks, NAHB’s book publishing division, this resource gives home builders a rare glimpse at other builders’ financial books by providing data about profitability, cost of sales and expenses from hundreds of home builders across the country.
More than 350 NAHB builder members participated in the survey by providing their 2004 financial data. The latest edition of the study provides builders with an opportunity to evaluate their financial performance against the industry as a whole as well as against their own business goals.
Builders can see how they measure up against industry-wide averages in areas including:
• Gross margin net profit
• Cost of goods sold
• Financial ratios (current ratio, debt-to-equity ratio, and more)
The Cost of Doing Business Study contains a wealth of data, analysis and guidance to help builders boost profitability, increase efficiency, set realistic budget targets and improve upon their business practices. Several categories are analyzed in the survey (volume, operation type, and land vs. no land) making it easy for builders to compare their performance against the data.
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The National Housing Endowment, the philanthropic arm of the National Association of Home Builders, has announced a $1 million gift from The M/I Homes Foundation, a charitable organization funded by M/I Homes, Inc. of Columbus, Ohio. The unrestricted gift primarily will support the Endowment’s education initiatives.
“The important work of the National Housing Endowment could not be accomplished without the support and overwhelming generosity of donors like The M/I Homes Foundation,” said Gary Garczynski, chairman of the National Housing Endowment and 2002 president of NAHB.
This year, the National Housing Endowment has embarked on a major grantmaking initiative to increase the number of qualified graduates entering the residential construction profession through the creation of H.E.L.P. or the Homebuilding Education Leadership Program. The
Endowment will work with two- and four-year college and universities to:
• Develop housing-related curricula with a specific concentration of study;
• Increase the number of faculty with a residential construction background;
• Increase graduate studies program with an emphasis on developing practical experience and mentoring opportunities in residential construction; and
• Increase industry involvement in local and national student competitions.
“M/I Homes and The M/I Homes Foundation are proud to make this gift to the National Housing Endowment in honor of my late father, Irving Schottenstein,” said Steven Schottenstein, CEO of M/I Homes, Inc. “My father would be especially proud of this grant because his values are reflected in the Endowment’s mission to support innovative and effective programs that further industry education, training and research.”
The largest builder of single-family homes in Central Ohio and one of the nation’s largest home builders, M/I Homes, Inc. was founded in 1976 by cousins, the late Irving E. and Melvin L. Schottenstein. Since its inception, the company has sold more than 64,000 homes.
Steven Schottenstein will join the National Housing Endowment’s Life Trustees; seven-figure donors whose leadership and commitment have enabled the National Housing Endowment to surpass its initial fundraising goal of $10 million set in 2002 and expand it to $25 million over the next three years.
Thanks to this gift from The M/I Homes Foundation, the Endowment is quickly closing in on this current fundraising goal. In addition to the Life Trustees, the Endowment is led by a growing group of six-figure donors, known as Founding Advocates, who provide the Endowment’s core support. Supporters and trustees represent all sectors of the housing industry, providing a unique perspective on its widespread needs and challenges.
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Green building pioneer Ron Jones of Santa Fe, N.M., was named Builder Advocate of the Year at the 2006 National Green Building Awards Gala last month. The awards were presented during the National Association of Home Builders’ 8th annual National Green Building Conference in Albuquerque, N.M.
“Ron served as charter chairman of the NAHB Green Building Subcommittee and has worked tirelessly ever since to help bring green building into the mainstream,” said NAHB Green Building Subcommittee chairman Ray Tonjes, a custom home builder in Austin, Texas.
Other awards included:
• Bill Asdal of Asdal Builders, Chester, N.J., the Remodeler Advocate of the Year.
• Jennifer Languell of Trifecta Construction Solutions in Naples, Fla., the Individual Advocate of the Year.
• The Sustainable Building Industry Council of Washington, D.C., the Group Advocate of the Year.
• Pardee Homes of Los Angeles, the Production Home Builder of the Year.
• SunTerra Homes of Bend, Ore., the Custom Home Builder of the Year.
• Yavapai College in Chino Valley, Ariz., for its Research House.
• Anderson Sargent Custom Builder, LLC of Waxahachie, Texas, for its Single-Family Concept House
• Seville Consulting of Decatur, Ga., for the Remodeled Home of the Year.
• Hickok Cole Architects of Washington, D.C., for the Multifamily Home Design of the Year.
• Lakewood Ranch Communities, LLC, of Bradenton, Fla., for the Green Homes Marketing Program of the Year.
• The Wisconsin Environmental Initiative and its Green Built Home, named Program of the Year.
“As consumers show greater interest in homes that employ energy efficiency, resource conservation and sustainable building, these experts help expand green building from a niche market by giving prominence to housing affordability,” Tonjes said. “What our winners bring to traditional construction is a better knowledge of green building science so that all home builders and home buyers can benefit.”