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Is it time for a new residential contractor trade organization?

  
  
  
  

Last week at the Baltimore Remodeling Show I attended the keynote address presented by Remodeling Industry Expert,  Shawn McCadden. He shared his thoughts and insights about the future of the remodeling industry.

He challenged the attendees to be part of the solution to help solve many of the issues that confront our industry. On the topic of government regulation Shawn spoke about the effectiveness of trade organizations representing and furthering the wellbeing of residential contractors. He pointed out that the two main trade organizations (NAHB and NARI) do a nice job within their reach and capabilities. He pointed out that both organizations have great professionals representing their constituents.

However, he posed the question is it time for one trade organization to emerge as the main voice for our industry? Is it possible that two different trade organizations lead to confusion amongst contractors and consumers?

NAHB represents predominantly home builders. NARI represents remodelers and sub trades. Both have education programs to train contractors. Both have interests and dialog with government. Is it possible that one may serve the interest of the residential construction industry better than the other?

In recent months both organizations have strived to represent our industry's interest meeting with government officials on the RRP and Health bill amendments. These efforts albeit well intended, have done little to lessen the confusion over RRP outside of their membership. If you are not a member of either organization or read trade magazines you are likley to have little or no knowledge of RRP or worse, the wrong information. The EPA RRP Lead Rule continues to be an unknown to most contractors. To date only 10% of contractors have become certified. There is widespread misinformation even among the two trade organizations with combined members of under 30,000. 

Is it possible that the numbers may be too small to achieve the measurable results the residential industry requires?

In contrast, Shawn McCadden revealed that the National Association of Realtors (NAR) has over 1.2 million paying members. When they lobby Congress they are over one million strong and thier voice is heard. They are self policing and govern their members with strong requirements. Shawn reported that this association just recently added $35.00 assessments for its members for 2010 and 2011 to support their lobbying agenda and other important items critical to the interests of their organization.

Would an organization of 1.2 million residential contractors have enough clout to rival the success of the NAR?

Shawn McCadden asked us to accept the challenge and responsibility to create our own path to success, not to wait for government to do it for us. Already we are too late on RRP. Our industry fell a sleep at the wheel and now the government is stepping up to the plate to protect children, pregnant women and workers. We now must comply with RRP and any other related regulations. For example in addition to RRP in Mass, contractors must provide proof of compliance with respirator programs, worker safety programs, blood monitoring, changing stations, personal protective equipment and more. Why didn't our trade organizations see this coming? And if they did why have they failed to preempt government intervention? The lead issue has been around since the late 1980's. OSHA regulations are well documented yet few contractors are prepared for the new reality of forced government regulation. I suggest we are where we are due to lack of numbers, education, training, money, vision and leadership that delivers meaningful results for the entire industry, not just trade organization members. There are many top notch people in these organizations that are committed, however the industry is thirsty for one unified voice that will lead our entire lot into the future.

Will one of these organizations emerge to be the true voice of the residential construction industry or is it time for a new trade association that will rival the clout of the NAR?  

I accept Shawn's challenge to create and shape our own future and not wait for government intervention into every aspect of our business. I challenge you to join us by creating our own hope and change before government steps in and does it for us.

Please join us and contribute your thoughts to this important effort. 

mark the coach

www.shawnmccadden.com  

mark the coach

Contractor Business Coaching    Design/Build Training

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Comments

Very Interesting!!! I agree with this very much!
Posted @ Tuesday, September 21, 2010 6:41 AM by Joseph Kupstas
What we need is for the building industry to regulate and support itself. New rules have so far made many worthy contributors decide to work in a gray kind of way, legitimate contractors are starting to operate a little more like unlicensed contractors, we are forming a black market for home remodeling and the consumers are welcoming this development. 
NARI and NAHB should continue with their education and networking opportunities but they need to stop calling themselves the voice of the industry, they simply are not.
Posted @ Tuesday, September 21, 2010 8:33 AM by Paul Lesieur
I have been a member of the PDCA for 3 years and was suprised they were last minute on the rrp rule. The EPA should advertise the lead rule so consumers and all contractors know about it. I find it really strange they have not done a satisfactory job of doing so to date, perhaps they care more about fines than poisoning the public, what else can it be. any suggestions ?
Posted @ Tuesday, September 21, 2010 5:01 PM by Tom L>
I think both NARI & NAHB should partner together, combining dues/fees, and combine the Home Building and Remodeling sectors and making our numbers and voice louder.
Posted @ Wednesday, September 22, 2010 3:36 PM by Trent Ketchum
We could still have the two, just have the NAHB stick with home builders only.....no remodelers council. The issues that we run into are related to that issue. In some areas they even have a sub-group bellow that. This just gets to be too much to explain to your typical homeowner. 
 
The multiple chapter thing was an issue when we started another chapter of NARI. There was NAHB, PRO, MICA, FCBA and a few others.  
 
What's it gonna take and who are the people that can make this happen?
Posted @ Wednesday, September 22, 2010 4:18 PM by Craig K.
I think of it like this. the only reason other professional organizations get much better member involvement is because they start younger. At 25 i was a "kid" at the remodeling show. most guys my age involved in Architecture as I have been are already members of AIA and AIAS and were active in college with these orgs. why isn't Nari in the trade schools and community colleges and all over construction management programs in colleges?
Posted @ Thursday, September 23, 2010 8:39 AM by Papa-Kwesi Coleman
Actually Papa-Kwesi, they are involved in organizations like SKILLS USA (High School vocational trade competitions), and a few other ones. Personally I agree with the idea of the NAHB Remodlers & NARI merging as one organization, but they would need to keep the NARI name.
Posted @ Thursday, September 23, 2010 8:42 PM by Sean @ SLS Construction
Combining the two organizations on the surface may sound like a good idea. However on several occasions I broached this idea with members of NAHB and each time the response is NARI should fall under us because we are better. The two organizations are very different. Home builders are not remodelers even though some have claimed it isn't that different. 
 
I agree with Sean that a combination would need to be lead by NARI for remodeling.  
 
Craig, as far as who will lead the charge to do this; that is the reason for this post to see how we can attract leaders in the industry to first have the dialog and second lay the foundation leading to the emergence of one united voice. Maybe this can be NARI.  
 
I visulize this one voice embracing the true needs of the remodeling industry. This one voice will matter to the remodeler and support trades. This organization will have a code of ethics that will be enforced and will not be comprimised for money. It will be membership based and provide training and education for young tradespeople and provide a clear career path that includes business training as well as technical training. The entry fees will be graduated based on level of experience in the business. The organization will have strong mentoring programs to insure that new comers are welcomed and not forgotten. 
 
I could go on forever on this... 
 
I truly believe we are ready for one voice. We need numbers to be effective with the government that wants to infiltrate our lives. Contractors tell me they want an organization that thinks of them first and vendors second. This organization must win the trust of the little guy as well as the big one.  
 
thanks for sharing 
 
mark
Posted @ Thursday, September 23, 2010 9:16 PM by Mark Paskell
A challenge that the organizations have (in my opinion) is that the only way for new ideas to be promoted is by sponsorship. Things may have changed, and I may be outdated in my comments, but I hit a brick wall when trying to introduce innovative technologies as education to remodelers and contractors. The problem with that is anyone who pays for sponsorship is automatically able to promote to the group. I won a Dell Top 10 Innovator Award, a Forbes Most Promising Award and was featured in Entrepreneur Magazine and the .NET Journal. I thought certain ideas would be really beneficial to others but I could never introduce anything to the organization's membership unless I paid. Not that I am against paying, but there is a natural limitation if ideas can not flow. 
 
Brian 
 
www.MyOnlineToolbox.com 
 
 
 
Side note: I did offer alternative forms of payment and co-marketing promotions but sponsorship was the only option given to me (at that time). I think the organizations need to think outside the box in order to grow and meet changing market conditions. Just my opinion.
Posted @ Tuesday, September 28, 2010 9:33 AM by Brian Javeline
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