WHEN THE GOING GETS TOUGH, HBA MEMBERS GET CREATIVE

Members of the Home Builders Association of Metro Denver, like their counterparts around the nation, are finding creative ways to survive this tough spring.

As our cover story points out, some have tried virtual offices, outsourcing and other innovative practices. Smaller and mid-size companies in our market are considering mergers and consolidations to better ride out the downturn.
With the credit crunch continuing and lenders seeking 50 percent or more equity to provide construction financing, many builders are laying low.

We are seeing HBA members seeking to trim personnel costs by retaining less expensive staff or hiring associates at lower salaries. It is similar to what we are seeing around the nation in this tough recession. Even sports teams are talking about hiring more rookies and fewer expensive free agents.

People who still have jobs will have to wear more hats and learn to multi-task even more. An employee who was an executive assistant last year might also be the liaison to his or her homeowners association this year.

It is important for employees at all levels to work on diversifying their skill sets. People who can do a variety of tasks have a greater chance of retaining their jobs or finding new ones. Employers looking at who to retain when layoffs are required will likely look to those who can adapt to changing conditions.

Our association came up with an innovative way to cope with this severe downturn: We are replacing our traditional Parade of Homes this year with the Denver Luxury Home Tour. This is a great solution to problems our members are facing. Excellent custom builders with inventory can benefit by showcasing their products. The tour will hopefully result in sales for builders that have stayed loyal to our association. And it will bring in revenue to the HBA. I went on a similar tour in Provo, Utah, and it was an impressive event.

We will continue to work on helping ourselves as we anticipate federal efforts starting to affect the housing market. While we hoped for a bigger tax credit for new home buyers, the $8,000 credit in the federal stimulus bill signed by President Barack Obama in Denver will provide a good start. And we hope that the program to help stave off foreclosures will also help to normalize the market.

Our association is full of creative people, and we will all need to use our best ideas as we search for new opportunities this spring. Home Builder will be on a reduced publishing schedule for the rest of the year, coming to you in the summer and late fall after this issue. Please let us know about the creative ways you are coping with the downturn. Together, we will do great things.