A MESSAGE FROM OUR PRESIDENT, Dwight Pittenger

Dear Members,

As President of the Shore Builders Association of Central NJ, I was compelled to look toward the future of our industry and ask you this multiple choice question: 

What is the most limiting factor to future sales growth in our industry?

1. Housing demand
2. Financing
3. Land availability
4. Regulatory environment

I know that it has been a while since most of us have answered a multiple choice question, quite possibly since your school or college days; however, this may be the most important quiz you will take, so let's explore the answers.

1. Demand is an integral part of our homebuilding process and can dictate what we build, where we build, how we build and how much we build.  It should not be underestimated; however, it comes and goes in a cyclical fashion.  There are times when demand is high and we cannot build enough homes fast enough to satisfy the buyers (remember those days?) and there are times when buyers are just not there.  The crickets are chirping.  Demand is like a curve ball.  It is a matter of looking for the ball breaking, but not an impossible pitch to hit.
2. Financing also runs in cycles.  When banks and investors have money, they lend.  When too many assets start to show as non-performing on their books, the lenders hoard their cash and limit what they lend and who they lend it to.  Once those non-performing assets begin to filter through, the banks regain their health and begin to lend again.
3. Land availability is an interesting answer because we tend to think in terms of vacant land.  But, here in New Jersey, vacant land is becoming scarce; however, we have begun to see opportunity in urban redevelopment and other types of mixed-use site rehabilitation that enables homebuilders to create homes for people who wish to live here.  With land, it is not a matter of availability but rather a matter of price.
4. By process of elimination, you probably have guessed that I have chosen the regulatory environment as the most serious limiting factor to future sales growth in our industry.  While we have been seriously affected by the economic downturn, the no-growth coalition in New Jersey has not stopped in their efforts to make our building industry disappear permanently.  These are the people and organizations who do not want to see another house built in New Jersey.

Fortunately, thanks to the leadership at the New Jersey Builders Association and those individuals who belong to builders associations throughout the state who work along with NJBA staff, we have had some recent victories in Trenton which will allow us to be shovel-ready when demand resumes.  The permit extension is now a reality, sewer service areas have been temporarily preserved and time of application is awaiting the Governor's signature.  Our recent successes in Trenton cannot be continued unless we collectively resolve to protect our industry from political assault. 

As builders, we make a positive contribution to our society and our economy by providing jobs, building smart and building green.  With new green products, innovative building techniques, solar and more energy efficient alternatives to traditional systems and appliances, we have made a commitment as an industry to continue to show that we are more environmental friendly now than ever before.  It is time for us to get this message to more policy makers in New Jersey who control our future destiny.  Industry Offense/Industry Defense is not your father's BPAC.  To many of us, the term BPAC was equated to going to the dentist for a root canal. 

Industry Offense/Industry Defense is different.  We want to use this as a platform to demonstrate the role we play in providing economic growth and quality, affordable housing to New Jersey's residents.  Without your continued support through participation in Offense/Defense events, legislator contact drives and fundraising through programs and donations, our voice in Trenton will be muted against the sounds of the "no-more-growth-in-New Jersey" voices that seem to have unlimited resources in their assault against builders and our industry.  We cannot sit by and allow this current regulatory environment to go unchecked.  We must utilize our resources, our knowledge and our membership to protect our industry now so that as the other three factors improve, we do not find a regulatory brick wall sitting in front of us when we begin to swing the hammers once again.  Our mission is critical and requires your attention.  Industry Offense/Industry Defense for "Building Homes, Building Jobs, Building Green".