Mood more upbeat at 2010 IBS

  Las Vegas

More than 50,000 builders, architects, contractors and building product suppliers gathered here this week for the International Builders' Show, and, despite three days of rain, the mood inside the Las Vegas Convention Center was definitely upbeat. Maybe it was the crowded aisles, the noisy demonstrations at various booths and the reported visits from national builders and large contractors who attended this year. Thanks to an innovative matchmaking service set up by the National Association of Home Builders (NAHB), small and medium-sized builders were much more hopeful about finding new financing for their projects. And President Barack Obama’s remarks about “sexy” insulation last December, combined with his proposed “Cash for Caulkers” legislation, created a spark for the segment.

In the Owens Corning booth, a video clip of Obama’s Dec. 16 speech at an Arlington, Va., Home Depot played over and over as sales reps wore T-shirts emblazoned with the “Insulation is sexy” quote. Owens Corning, Dow, CertainTeed, Johns Manville and other insulation manufacturers promoted products and programs that highlighted tax-saving benefits, and each booth  seemed to have its own team of building scientists ready to discuss air and moisture infiltration.

With the “Cash for Caulkers” program still pending on Capitol Hill, the North American Insulation Manufacturers Association (NAIMA) announced it was forming a new, separate organization to focus solely on legislative policy. “We’re creating a place for the whole insulation industry to come together and speak with one voice,” said Kate Offringa, who will serve as president and CEO of the Council of NAIMA. The Council, which held its third meeting at IBS, is attempting to bring spray foam, cellulose and other non-traditional insulation makers under the same umbrella as the NAIMA members, Offringa explained.

David Crowe, the chief economist for the NAHB, predicted that interest rates will remain low through 2010, and low inflation should keep a lid on the price of building materials. The stage is set for buyers to return to the market, he said, but unemployment is still a major stumbling block. 

“New home inventory is the lowest it’s been since 1971,” Crowe said. “When people tell you there’s too many homes for sale out there, that’s bull … malarkey.”

Crowe also warned that the inability of builders to obtain financing for new residential development has become "a significant retardant to recovery."

To help ameliorate this need, the NAHB set up a “Partnership Pavilion” where land developers, residential and commercial builders could meet with financial backers and discuss possible investment deals. The NAHB lined up 31 investors, the majority of them private equity firms, plus a number of financial advisers and several banks and other lending institutions. Builders and developers were asked to submit information about their new or current projects beforehand, and the NAHB acted as the go-between. Approximately 200 meetings were held the first day. 

“We had about 60 meeting requests that we were able to fill before we got here, but the rest we had to do on the fly,” said David Ledford, senior VP housing finance and land development for the NAHB. “It’s been a real juggling act.”

The 2010 IBS ends Jan. 22.