July 23, 2014 at 2:10 p.m.
Local construction slows down (09/20/2008)
By By MIKE SNYDER-
Although the flood of foreclosures nationwide hasn't been nearly as severe in Jay and surrounding counties, the effects of a sluggish economy have hit close to home - literally
The building of new homes has slowed significantly during 2008, and some area contractors have experienced a downturn in business over the past year-plus.
Even those who say they are keeping busy admit that homeowners who decide to have work done are leaning more towards necessary repairs and upgrades than luxuries.
Although 2008 is only about 75 percent complete, partial-year figures from Jay-Portland Building and Planning indicates that this year's residential building activity - both in construction of new homes and major renovations requiring permits - has declined.
Mike Leonhard, who has operated M&E Construction, a general contracting service, for nearly 18 years, says that business has been "crazy" recently.
"A lot of it was storm damage we had back in June ... a lot of people is spending money fixing up their place ... I think that's what 90 percent of it is. Four dollar gas ... people's not going a lot of places and when they stay at home they look around and say we've got to take care of this. I think they're taking care of the necessities."
Milo Miller Jr., a contractor the past 40 years and the owner of Miller Home Improvement, said this week he's noticed a significant drop-off in the home building side of his business.
The last home his company worked on was completed in early spring of 2007, Miller says. Since beginning home building in the early 1990s, this is the longest stretch that Miller has gone without working on a new home.
"Housing is way down. I don't know how many permits have been issued, but it's way down," Miller says.
Through Thursday, permits for nine new homes has been granted by Jay-Portland Building and Planning. That compares to 18 new home permits which were issued during 2007.
Also down are the figures for mobile and manufactured home permits. Just one in each category has been issued so far in 2008, compared to three in each category last year.
Permits for major residential additions - ones that change the outline of the home - appear to have not fallen off as severely. Nineteen addition permits, with a value of $543,450, had been issued as of Thursday. Those numbers compare to 32 permits, and a value of $599,710 for those additions, in 2007.
The founder and namesake of George Loyd Construction says that his company has been fortunate enough to weather the tough economic times because its specialty is minor renovation and remodeling projects.
"People are doing what's necessary ... roofing, bathrooms. No room additions to speak of," says George Loyd, who describes his role in the business as a gopher. "I help them out when they need it," Loyd says, pointing out that son Randy Loyd is now in charge.
"The way the economy is right now ... we've been through this before. In 1982 I built the only house that was built (in Jay County) and that was a crackerbox," Loyd.
Loyd says he sees no signs that would point to a quick economic turnaround. "You start getting room additions, more siding jobs, more kitchens, more bathrooms. That sort of thing," he says. "We've remodeled several bathrooms this year, but they were in dire need of help."
Business for Miller's company began to drop off significantly in January.
"We only had a few little jobs to do. We lost (a full-time) employee through not being very busy," says Miller. The slower construction market has caused Miller and his two full-time employees to accept some smaller jobs he normally would have turned down.
"We've just been working job to job and sometimes we're not working 40-hour weeks ... (homeowners) are doing what they have to do" around the house. "I think it will turn around after the election. We're fortunate to have served the public as long as we have. We're not complaining. It's just the way the economy is," Miller says.
Leonhard, whose company uses Amish laborers, says he believes the willingness to tackle any job is one of the reasons his company has stayed busy.
"We'll do anything. That's our motto: 'Anything under the sun.' A lot of people, they want to specialize in one thing. We'll just do anything," says Leonhard.
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The building of new homes has slowed significantly during 2008, and some area contractors have experienced a downturn in business over the past year-plus.
Even those who say they are keeping busy admit that homeowners who decide to have work done are leaning more towards necessary repairs and upgrades than luxuries.
Although 2008 is only about 75 percent complete, partial-year figures from Jay-Portland Building and Planning indicates that this year's residential building activity - both in construction of new homes and major renovations requiring permits - has declined.
Mike Leonhard, who has operated M&E Construction, a general contracting service, for nearly 18 years, says that business has been "crazy" recently.
"A lot of it was storm damage we had back in June ... a lot of people is spending money fixing up their place ... I think that's what 90 percent of it is. Four dollar gas ... people's not going a lot of places and when they stay at home they look around and say we've got to take care of this. I think they're taking care of the necessities."
Milo Miller Jr., a contractor the past 40 years and the owner of Miller Home Improvement, said this week he's noticed a significant drop-off in the home building side of his business.
The last home his company worked on was completed in early spring of 2007, Miller says. Since beginning home building in the early 1990s, this is the longest stretch that Miller has gone without working on a new home.
"Housing is way down. I don't know how many permits have been issued, but it's way down," Miller says.
Through Thursday, permits for nine new homes has been granted by Jay-Portland Building and Planning. That compares to 18 new home permits which were issued during 2007.
Also down are the figures for mobile and manufactured home permits. Just one in each category has been issued so far in 2008, compared to three in each category last year.
Permits for major residential additions - ones that change the outline of the home - appear to have not fallen off as severely. Nineteen addition permits, with a value of $543,450, had been issued as of Thursday. Those numbers compare to 32 permits, and a value of $599,710 for those additions, in 2007.
The founder and namesake of George Loyd Construction says that his company has been fortunate enough to weather the tough economic times because its specialty is minor renovation and remodeling projects.
"People are doing what's necessary ... roofing, bathrooms. No room additions to speak of," says George Loyd, who describes his role in the business as a gopher. "I help them out when they need it," Loyd says, pointing out that son Randy Loyd is now in charge.
"The way the economy is right now ... we've been through this before. In 1982 I built the only house that was built (in Jay County) and that was a crackerbox," Loyd.
Loyd says he sees no signs that would point to a quick economic turnaround. "You start getting room additions, more siding jobs, more kitchens, more bathrooms. That sort of thing," he says. "We've remodeled several bathrooms this year, but they were in dire need of help."
Business for Miller's company began to drop off significantly in January.
"We only had a few little jobs to do. We lost (a full-time) employee through not being very busy," says Miller. The slower construction market has caused Miller and his two full-time employees to accept some smaller jobs he normally would have turned down.
"We've just been working job to job and sometimes we're not working 40-hour weeks ... (homeowners) are doing what they have to do" around the house. "I think it will turn around after the election. We're fortunate to have served the public as long as we have. We're not complaining. It's just the way the economy is," Miller says.
Leonhard, whose company uses Amish laborers, says he believes the willingness to tackle any job is one of the reasons his company has stayed busy.
"We'll do anything. That's our motto: 'Anything under the sun.' A lot of people, they want to specialize in one thing. We'll just do anything," says Leonhard.
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