MEMO

Date: June 2, 2020

To: NAHB Members

From: NAHB Chairman Dean Mon

Re: Recent Social Unrest

First, and foremost, I hope you and your families are staying safe and secure. 

We have all watched in horror over the past week as what began as peaceful demonstrations across the nation have been tainted by rioting and looting in cities from coast-to-coast. One of the violent events occurred in Washington, D.C. where the National Housing Center is located, resulting in minor damage to the building. Thankfully, there were no injuries and all NAHB employees remained safe in their homes when the damage occurred.

This is a very challenging and difficult time for our nation as communities across the land deal with the effects of the coronavirus and events that are tearing at the social fabric of our great Republic. Americans have always been defined by what brings us together, not what drives us apart. We must continue to do all we can to ensure equal economic opportunities, justice and safety for all our citizens.

I can assure that you that NAHB will continue to do all we can to meet the needs of our members, to help keep your businesses running during the weeks and months ahead, and to ensure you get the tools needed to grow and thrive once we get through these disruptive times. NAHB remains open for business and we continue to fight the good fight on behalf of all those engaged in the residential construction industry.

May God bless you and all our fellow citizens.

2020 May HBA Spartanburg News

COVID-19 and South Carolina’s Economy:

Where We Are and Where We’re Headed

By: Joseph Von Nessen, Ph.D. April 13, 2020

For many South Carolinians, the last few weeks have brought with them a level of uncertainty not seen in a long time. As the COVID-19 pandemic has spread across the United States and social distancing has become the new normal, many sectors of our economy have either been severely disrupted or completely stopped. Many workers have been laid off from their jobs and many more face the possibility of being laid off in the weeks ahead. And the stock market, which was at an all-time high just a few weeks ago, has seen a substantial contraction and is now highly volatile. Given this whirlwind of change, how can we begin to evaluate the state of our economy and the prospects for South Carolina’s recovery in the months ahead? It is important to first recognize that this current economic shock is very different from those we have typically seen before. Most economic contractions are caused by fundamental problems in specific areas of the economy that lead to steady declines in economic activity that can last for many months or even years. By contrast, right now we are experiencing an intentional pause on an otherwise strong economy as part of a proactive effort to mitigate the spread of COVID-19. In this way, our current situation is more akin to a temporary statewide shutdown in response to a major winter storm than it is to a typical economic contraction. This is one reason why unemployment has been spiking so quickly. This also implies that if the pandemic abates in a relatively short period of time, we could see our economy recover faster than we might otherwise expect. At this point, of course, we do not know how long the pandemic will last nor how long the guidelines on social distancing will remain in effect. We do know, however, that there are at least two likely paths to economic recovery for South Carolina in the months ahead after the pandemic is mitigated. If the COVID-19 pandemic abates before the summer begins, South Carolina’s economy would likely follow what economists call a V-shaped recovery pattern – that is – a steep drop followed by a steep rise. In many sectors, a pent-up demand is already being created for the goods and services not currently being purchased. Once we begin to move back towards normal social interactions, there is likely to be a surge in consumer demand that will offset some of the losses we are currently experiencing. This could set the stage for a relatively fast recovery during the second half of the year. The federal stimulus, which includes direct payments to South Carolina households and cash-flow assistance to businesses, will also help to preserve consumer spending and minimize business losses in the meantime. If, however, the pandemic extends into the summer months, many of South Carolina’s businesses that are temporarily closed right now would be increasingly likely to go bankrupt. This could lead to a second wave of layoffs as well as to disruptions in financial markets that would set the stage for further economic decline in the second half of 2020 and a much slower recovery period that could extend into 2021. Economists call this second path a U-shaped recovery pattern – that is – a steep drop followed by a slower rise. In the weeks ahead, it will be important to be on the lookout for any significant increase in the rate of bankruptcies among businesses, as this could indicate that a U-shaped recovery path is becoming more likely. One other critical factor for South Carolina’s economic recovery will be the revival of consumer confidence. Even after social distancing guidelines are relaxed and businesses are reopened, consumer spending will not likely return to pre-pandemic levels if individuals are still uncomfortable going out in public. Health officials will be able to help to minimize this “hangover effect” as widespread screenings and effective treatments are put in place. All industries are being affected by the COVID-19 pandemic and the housing industry is no exception. The single biggest predictor of housing demand is job growth, and the recent layoffs suggest that South Carolina has lost about six months of job growth in just the last three weeks alone. That’s the bad news. The good news is that a majority of these layoffs have been reported as temporary, suggesting that these workers will be hired back once the pandemic is over. Further, the long-run outlook for South Carolina’s economy remains strong. Over the past decade, South Carolina has consistently experienced both job growth rates and population growth rates that have been higher than the national average. In addition, the competitive advantages that South Carolina maintains – including strong natural amenities, a low cost of living, and a business-friendly environment – continue to make South Carolina an attractive choice for both companies and individuals. While we do not know how long this pandemic will last, we do know that South Carolina is well positioned for the years ahead. 

HBA Members,

Please feel free to use this letter for your employees to have in their possession as they go about their business.   In case anyone were to ask them, it is an explanation of their work classification.  Call us if you have any problems.   It's a Word document so you can edit as you see fit.  

Do not use this letter if you are not a member of HBA of Spartanburg.  

CV Mark N letter that you are essen bus 4-7.docx

FROM MARK NIX, HBA OF SC  April 7, 2020

Thanks to Governor McMaster South Carolina has the best language outlining essential businesses anywhere in the country. In his press conference yesterday, Governor McMaster issued  a mandatory “Home-or-Work Order” in place beginning today, Tuesday, April 7^th, at 5:00 pm to. This new order MAKES NO CHANGES to the current list of non-essential businesses that must close (those non-essential businesses are listed below). Those listed are the only businesses prohibited from working. Our industry was helped further by the order stating, “Individuals are performing any essential services identified by the US Cybersecurity and Infrastructure Security Agency’s guidance, including amendments thereto, for continued critical infrastructure viability” (see list below). That helps us further news. The Governor’s previous orders state that his orders “supersedes and preempts” any part of a local ordinance that conflicts with his order. This language prohibits a local governing authority from an ordinance/order that is more stringent than the Governors and the order now lists all industries in construction. We must be vigilant to ensure that ANYONE on our job-sites abides by the "social distancing requirements" and the other COVID-19 safety precautions. We do not want to provide any reason for our freedoms to be taken away.HBA of SC “Stand Aware” jobsite safety materials will be out today .  Please pass to fellow industry professionals

Please feel free to call me with any questions.

-----------------------------------------------

1. Essential workers in the 16 Critical Infrastructure Sectors, as defined by the federal Department of Homeland Security unless otherwise addressed in a prior or future executive order pertaining to the existing declared public health and civil preparedness emergency.

2. Healthcare and related operations including:
• biotechnology therapies
• consumer health products and services
• doctor and dentist offices
• elder care, including adult day care
• health care plans and health care data
• home health care workers or aides
• hospitals
• manufacturing, distributing, warehousing, and supplying of pharmaceuticals, including research and development
• medical marijuana dispensaries and producers
• medical supplies and equipment providers, including devices, diagnostics, services, and any other healthcare related supplies or services
• medical wholesale and distribution
• nursing homes, or residential health care facilities or congregate care facilities
• pharmacies
• physical therapy and chiropractic offices
• research and laboratory services, including testing and treatment of COVID-19
• veterinary and animal health services
• walk-in-care health facilities

3. Infrastructure including:
• airports/airlines
• commercial trucking
• dam maintenance and support
• education-related functions at the primary, secondary, or higher education level to provide support for students, including distribution of meals or faculty conducting e-learning
• hotels and other places of accommodation
• water and wastewater operations, systems, and businesses
• telecommunications and data centers
• transportation infrastructure including bus, rail, for-hire vehicles and vehicle rentals, and garages
• utilities including power generation, fuel supply, and transmission

4. All manufacturing and corresponding supply chains, including aerospace, agriculture, and related support businesses
5. Retail including:
• appliances, electronics, computers, and telecom equipment
• big-box stores or wholesale clubs, provided they also sell groceries, consumer health products, or operate a pharmacy
• convenience stores
• gas stations
• grocery stores including all food and beverage retailers
• guns and ammunition
• hardware, paint, and building material stores, including home appliance sales/repair
• liquor/package stores and manufacturer permittees
• pharmacies
• pet and pet supply stores

6. Food and agriculture, including:
• farms and farmer’s markets
• food manufacturing, processing, storage, and distribution facilities 
• nurseries, garden centers, and agriculture supply stores
• restaurants/bars (provided compliance with all applicable executive orders is maintained)

7. Services including:
• accounting and payroll services
• animal shelters or animal care or management, including boarding, grooming, pet walking and pet sitting 
• auto supply, repair, towing, and service, including roadside assistance
• bicycle repair and service
• building cleaning and maintenance
• child care services
• critical operations support for financial institutions
• financial advisors
• financial institutions, including banks, credit unions, and check cashing services
• funeral homes, crematoriums, and cemeteries
• insurance companies
• laundromats/dry cleaning
• legal and accounting services
• mail and shipping services
• marinas and marine repair and service
• news and media
• real estate transactions and related services, including residential leasing and renting
• religious services (subject to Executive Order 7D limiting gatherings to 50 people)
• storage for Essential Businesses
• trash and recycling collection, hauling, and processing
• warehouse/distribution, shipping, and fulfillment

8. Providers of basic necessities to economically disadvantaged populations including:
• food banks
• homeless shelters and congregate care facilities
• human services providers whose function includes the direct care of patients in state-licensed or funded voluntary programs; the care, protection, custody and oversight of individuals both in the community and in state-licensed residential facilities; those operating community shelters and other critical human services agencies providing direct care or support social service agencies

9. Construction including:
• all skilled trades such as electricians, HVAC, and plumbers 
• general construction, both commercial and residential
• other related construction firms and professionals for essential infrastructure or for emergency repair and safety purposes
• planning, engineering, design, bridge inspection, and other construction support activities

• ·           Workers supporting the construction of housing, including those supporting government functions related to the building and development process, such as inspections, permitting and plan review services that can be modified to protect the public health, but fundamentally should continue and serve the construction of housing (e.g., allow qualified private third-party inspections in case of government shutdown).
  
  10. Services necessary to maintain the safety, sanitation and essential operations of all residences and other buildings (including services necessary to secure and maintain non-essential workplaces):
  • building cleaners or janitors
  • building code enforcement
  • disinfection
  • doormen
  • emergency management and response
  • fire prevention and response
  • general maintenance whether employed by the entity directly or a vendor
  • home-related services, including real estate transactions, closings, appraisals, and moving services
  • landscaping services
  • law enforcement
  • outdoor maintenance, including pool service
  • pest control services
  • security and maintenance, including steps reasonably necessary to secure and maintain non-essential businesses
  • state marshals
  
  11. Vendors that provide essential services or products, including logistics and technology support, child care, and services needed to ensure the continuing operation of government agencies and provide for the health, safety and welfare of the public including: 
  • billboard leasing and maintenance
  • child care services
  • essential government services
  • government owned or leased buildings
  • information technology and information security
  • logistics
  • technology support
  
  12. Defense 
  • defense and national security-related business and operations supporting the U.S. Government or a contractor to the US government

•  
• Non-Essential
• ·           Entertainment venues:
  (1) Night clubs
  (2) Bowling alleys
  (3) Arcades
  (4) Concert venues
  (5) Theaters, auditoriums, and performing arts centers
  (6) Tourist attractions (including museums and planetariums)
  (7) Racetracks
  (8) Indoor children’s play areas
  (9) Adult entertainment venues
  (10) Casinos
  (11) Bingo halls
  (12) Venues operated by social clubs
  
  Athletic facilities and activities:
  (1) Fitness centers and commercial gyms
  (2) Spas and public or commercial swimming pools
  (3) Yoga, barre, and spin facilities
  (4) Spectator sports
  (5) Sports that involve interaction with another person of closer than 6 feet
  (6) Activities that require use of shared sporting apparatus and equipment
  (7) Activities on commercial or public playground equipment
  
  Close-contact service providers:
  (1) Barber shops
  (2) Hair salons
  (3) Waxing salons
  (4) Threading salons
  (5) Nail salons and spas
  (6) Body-art facilities and tattoo services
  (7) Tanning salons
  (8) Massage-therapy establishments and massage services

NAHB ARTICLE ON HOW TO OBTAIN AN SBA LOAN