Message from Doug: Facts, Figures, Vegas, and Leprechauns

Many of our Newsletter readers like to see facts and figures.  Some readers just skim the pictures and read the captions.  Others actually read the articles.  Many of you have told me that you read the Newsletter from cover to cover, which is great to hear.

I imagine others put our Newsletter on their stack of magazines and other items that they want to read…but never get a chance to actually read it.  It stays there until the pile gets too high and they finally throw the whole stack in the trash in an effort to “clean up the clutter” and start fresh.  I know; I’ve been there.

For the first group of people – the facts & figures folks – I’ve compiled some, well, facts and figures for the Atlanta market.  Here goes:

• The Atlanta metro area has seen a 0.8% decrease in private sector jobs since the end of the Great Recession, which officially ended June, ’09.  (Source: MetroTrends)
• Gasoline prices have never been higher this time of the year in the U.S. At $3.53 a gallon, prices are already up 25 cents since Jan. 1.  And experts say they could reach a record $4.25 a gallon by late April.  That would top the record of $4.11 in July 2008. (Source: AP)
• Foreclosures nationwide are on the rise again.  They surged 28 percent in January from December.  More than 230,000 loans began the foreclosure process in January.  (Source: CNBC)

This information shows us that we are living in a New Economy and that strong, positive economic changes will be slow to materialize. 

Now, before you try to label me a “Debbie Downer” from the dreary facts above, allow me to impart a positive, uplifting message you’ve come to expect from this column:  Always remember that it could be worse.  We could be living in Las Vegas.

And hey, St. Patrick’s Day is right around the corner.  Maybe all we need is a little “Luck of the Irish” to get the economy going.

One company that has turned the current data upside down and created a way to prosper in this New Economy is Acadia Homes & Neighborhoods.  You can read about their approach in our Feature Client Interview on page 2.

 

Doug interviewed in Las Vegas for live construction webcast.

Speaking of Las Vegas, we recently attended the World of Concrete convention that is held each year in Las Vegas.  We were there to check out the latest technology, to network with contractor friends, and find ways to improve how we do things.  I also attended an educational seminar while I was there. 

The editor of Concrete Contractor magazine, Rebecca Wasieleski, asked me to be interviewed for their live webcast.  The interview was conducted during the convention.  It was a fun experience.  You can see that at http://bcove.me/2wp3xqwg

Happy St. Patrick’s Day,

 

News—Concrete Homes Magazine

Barry Herbert’s article, “Technology Past and Present,” is in the March ’12 issue of Concrete Homes Magazine.

www.ConcreteHomesMagazine.com/archives/553

Recent Referrals

What’s better than a four-leaf clover or having the “Luck of the Irish?”  Having people that believe in our company and that refer us to their friends and peers.  Thank you to the following outstanding people that have recently referred our company:

Dennis McConnell, McConnell Homes — homebuilder www.mcconnellhomes.com  

Jimmy Coxe, Loren Construction —homebuilder  www.lorenconstruction.com  

Mike French, Traton Homes —homebuilder  www.tratonhomes.com

Feature Client Interview: Acadia Homes & Neighborhoods

 

 

 

Company: Acadia Homes & Neighborhoods Gregg Goldenberg, President and CEO Jon Roby, VP of Construction Thomas Olson, CFO Greg Villines, Dir. of Purchasing and Estimating Mark McClintock, Purchasing Manager New Home Price Range: $160s to low $500s Primary Building Locations (counties): Cherokee, Cobb, DeKalb, Forsyth, Fulton, Jackson Website: www.AcadiaHomes.us

We recently sat down with the folks at Acadia Homes & Neighborhoods to chat with them about their company and the current state of metro Atlanta’s housing market.

A New Builder for a New Time
Gregg Goldenberg, President and CEO of Acadia Homes & Neighborhoods describes the founding of the company, “In 2004, I looked around Atlanta, and realized that this town didn’t need another builder; it needed a land developer.”  Gregg began developing subdivisions for home building companies.  “Five years later, everything came full circle and what this city certainly didn’t need was any more lots to build on; it needed builders.”

Gregg believed he knew what was required to be successful as a home builder in the New Economy.  In 2010 he took his business plan to an investor that had secured 1,700 lots in the  metro Atlanta area.  It was a good fit for both parties and Acadia Homes & Neighborhoods was created.  Gregg assembled a team of home building veterans that bring over 50 years of combined experience to the company.

Experience is Key
Jon Roby is the VP of Construction for Acadia, and comes with many years of experience working for several production builders. “The thing that makes us successful is being able to put the best house on a location at a price point that our customers want,” Jon said.

“Everyone at Acadia is battle tested,” says Jon. “The learning curve here is really short. Our staff is filled with home building veterans.  Everyone here can put the pieces of the puzzle together in their head.” 

All that experience has Acadia poised and ready to take advantage of the fact that Atlanta and the surrounding areas are still considered prime relocation markets. As companies move to Georgia, or relocate their employees, “those people want new homes,” says Gregg. “New homes are still far more affordable in Atlanta than in many other parts of the country. That makes Atlanta a magnet for relocations. And that,” he said, “is great for building new homes!”

The Right Product in the Right Location
Acadia currently has 15 communities, with new homes ranging from the $160’s to the low $500’s.  Their business model involves building homes that today’s home buyers want, in highly desirable locations, on building lots whose prices have been reset to match the New Economy. 

They understand that home buyers’ preferences and attitudes are different than five years ago.  And, even though the market is ripe with resales and foreclosures, Gregg believes that, “people prefer new to resale whenever possible”.

In 2011, Acadia closed on 51 homes.  They are on track to sell 166 new homes in 2012.  This success can be attributed to experience and the ability to give home buyers what they want.  “We have the know-how and the flexibility to put the right product in the right location.” says Gregg.

Acadia has positioned itself so that they are not a Semi-Custom Builder or a Semi-Production Builder. “We are a Market Based Builder,” said Gregg. “Some companies will turn down deals because they don’t have the right product to put on a particular lot. If we don’t have the right product line that will fit, we will develop it.”

An Integrated Building Process
Greg Villines, the Director of Purchasing and Estimating, has been busy implementing a new resource planning system for the company. It is clear to see that Greg is excited about the new program “that is totally integrated from sales to warranty,” he says. “Once the pricing has been established, Purchase Orders are created and we have total job costing.”  By not adding additional administrative costs, Acadia is able to offer more value to its customers.  This also prepares them to scale very quickly as they add new subdivisions.

We asked Greg what Acadia’s home buyers look for in their new homes. “They want options in tiles and flooring. They also like having allowances for lighting.”  Additionally, customers want options with regard to floor plans.  Acadia has such a large gallery of plans to choose from that their customers are able to find what they want fairly easily.

 

“As a builder, the foundation of the house has to be right. To make sure that our foundations are perfect, we use Herbert Construction Company.” —Gregg Goldenberg, President and CEO, Acadia Homes & Neighborhoods

The Right Trades
Acadia relies on their subcontractor Trades to adapt to the multiple house plans that they build.  They also need Trades that are comfortable building their houses that are in the $160s and all the way up to their houses in the $500s. 

Gregg Goldenberg says, “Herbert  Construction Company can quickly and efficiently build our simple foundations, and then easily take care of our very difficult foundations that are on challenging sites.”  He added, “Very few companies can do both, and do them well.”

Sean Morris, Builder at Acadia has utilized Herbert Construction for his basement foundations.  “Since we began using Herbert Construction Company, I no longer have to spend a lot of time on my foundations.  I am able to concentrate on other parts of my job.  They are absolutely fantastic.” 

Sean added, “I completely trust their judgment on basement wall heights and any suggestions that they make.  They have pointed out things that have saved me a lot of headaches down the road.”

Gregg Goldenberg says, “Herbert Construction is a very professional company.  I recommend them to anyone looking for a great foundation contractor.”

We enjoyed chatting with the folks at Acadia Homes & Neighborhoods.  We greatly appreciate their business and hope that 2012 proves to be a great year for them and the entire housing market.

Did You Know? We also do Augering and Helical Piering.

If you encounter bad soil on your next slab foundation or basement foundation, we can help. 

The next time you get a jobsite with bad soil (and we really hope you don’t), call David Summey at 678-878-2241, or our office at 770-795-0103.  We can help keep your job moving along quickly in spite of the soil problems.

Augered Piering

For jobs with 10’-0” or less of bad soil, we can auger open-hole piers for you.  We can also pour the concrete into those piers immediately after inspection to eliminate the chance of cave-ins or water infiltration.

 

 

Helical Piering

For jobs with more than 10’-0” of bad soil, we can use helical piers to get down to good soil.  This eliminates the problems of cave-ins, water infiltration or having to schedule the concrete and inspection at just the right time.

Train Wreck

If you’ve ever visited the HCC offices, you’ve seen the train tracks that run next to our facility. On Monday, Feb 6th, an 18 wheeler became trapped on those very tracks. The truck driver and a bystander tried several times to move the truck.

Their efforts were in vain, and unfortunately the truck was struck by an oncoming freight train.  The 30 mph impact severed the tractor from its trailer and damaged at least one of the railroad tracks at the crossing.  The truck driver was not hurt, but three crew members of the train were taken to the hospital for minor injuries.

Herbert employee, David Summey, was interviewed by a local news affiliate after the accident.  David recalls several accidents at those tracks over the years.

It is incidences like these that make us realize all that we hold dear to us. While we are all focused on running a successful business, we at Herbert wanted to take a moment to wish you and yours health, happiness and above all, safety!

Train hits truck next to Herbert offices.

To See David’s interview on Fox5 News, go to:
http://www.myfoxatlanta.com/dpp/news/local_news/Train-Collides-With-Truck-3-Injured-20120206-pm-pk