Renovations and Remodels – a ray of sunshine in the construction gloom

Only 592 new single family residence permits were filed in Clark County in 2008, less than half the number filed in 2007 – and a mere quarter of the 2,329 filed in 2001.

And everyone is definitely feeling the ripple effects of this trend. For example, both local county and city development departments have laid-off workers. NW Natural, the local natural gas company, has seen a 67 percent drop in the number of new customers compared to last year and is contemplating laying off 50 to 100 workers, primarily among those that handle new accounts – 26 of whom work in Clark County.

And to make matters worse, idled construction workers – carpenters, plumbers, roofers, electricians and bricklayers – account for a sizable chunk of the county's 12 to 13 percent unemployment rate, the highest it's been in 20 years.

But there is one area of construction that has remained surprisingly stable: additions, remodels, garages and storage. Both residential and commercial builders are tapping into this market to keep their workforce busy and their cash flowing.

Reuse, Reuse, Reuse             

"We're now getting mostly inquiries from commercial realtors looking to refurbish existing spaces," said Roch Manley, president of Vancouver-based Manley Architects. Manley focuses on commercial and institutional projects, such as a private high school in Battle Ground and a major downtown Camas renovation for Journey Community Church (see page 9).

"People are pulling back from big projects," said Mike Kinnaman, owner of Designers Northwest, Inc. in Vancouver. "About 70 percent of our business is remodeling within the existing envelope of the home." He compared that to a few years ago, when about 70 percent of his business was devoted to adding more space to homes, such as dormers and additions.

Mel Rogers, the owner of T Square Remodeling, is seeing the same trend. "We're seeing more utilization of existing space – opening it up," Rogers said.

Weatherization is also a major source of remodel dollars as homeowners take advantage of tax rebates for energy-efficient windows. And it also presents an opportunity for unemployed construction workers. The Clark County Low-Income Weatherization Project is the first in the region to receive American Recovery and Reinvestment Act (ARRA) funding to retrain workers in an industry that creates jobs and provides energy savings to those who have their homes weatherized.

For many remodels, economic necessity seems to be driving the focus on reusing existing space. Financing is still difficult to get, whether you're a commercial firm looking for more space or a homeowner with a hankering for a different look and feel in the kitchen.

"Purchasing an existing building and renovating gets you to a competitive place sooner," explained Ron Frederiksen, president of commercial construction firm RSV Construction Services. Bryan Halbert, vice president of Schlecht Construction, Inc., general contractor for the Journey Community Church project, said this was partly because the permitting process for renovations is substantially shorter than for ground-up construction.

Go, Team, Go       

Another trend in the renovation and remodel market is how teams are put together. In better economic times, said Ron Edwards, president of Western Construction Services, Inc., the owner might hire an architect, then hire someone to manage the permitting process, then hire a general contractor. Now, it is more economical to simply let the general contractor handle everything, including the architecting and permitting. Firms like Western, who have experience in all these fields, can be more nimble and win contracts more easily.

"Owners are looking for a team from the outset," Manley said.

Keep it In-House 

Although we're still talking "swinging a hammer," renovation and remodel work requires a different mindset than ground-up construction, said Frederiksen.  In particular, successful renovators and remodelers usually have their own field staff (such as concrete workers, door hangers, etc.), instead of subcontracting each piece out. "Being able to control our own field guys helps a lot," Halbert said.

Using field staff instead of subcontractors gives the general contractor more control over how and when work is done, especially if the renovation is occurring in an occupied building. For example, Frederiksen's workers are trained to be neat, organized, and to perform noisy work early in the morning so as to disturb the owner and clientele as little as possible.

Edwards said his firm was able to renovate 16 rooms in a dental office (one at a time) without causing the dentist to reschedule a single patient. Western recently won the contract to renovate the Fred Meyer in Battle Ground, and completed a similar Fred Meyer renovation in Salmon Creek last year.

Smaller firms, too, such as Kinnaman's, are keeping more tasks in-house, partly because it's cheaper.

"We're doing more things ourselves," said Kinnaman, "where before we would have subbed more."

While certainly the construction industry isn't out of the woods yet, local builders and architects welcome the steady stream of remodels and renovations.

"I'm really encouraged by our job board," said Rogers. "They may be small jobs, like rebuilding a deck or making windows more energy efficient, but at least they're jobs."

Recent Remodeling Projects in Southwest Washington

Journey Community Church Renovation

Schlecht Construction, Inc. is converting the old Columbia River Bar & Grill and the OK Corral tavern into a church. Located at the corner of 4th Ave. & Birch Street in Camas, the 11,000 square foot two-story brick structure is right across from Liberty Theater. Reconstruction started in early August, with the congregation planning to celebrate "Christmas in Camas" in the new church. Bryan Halbert, vice president of Schlecht Construction, said that one of the project's highlights was finding beautifully preserved 45-foot-long solid rough-cut beams dating back to 1935 when taking out the ceiling.

Comfort Dental Renovation

Western Construction Services, Inc. has converted an older mixed-use 1,426 square foot building into an attractive dentist office. The project is located at the corner of St. Johns & 54th Street in Vancouver.

Residential Remodel

T Square Remodeling recently completed a major residential remodel, in which they moved the kitchen to the formal dining room space, converted the formal living room into a study, and opened up the old kitchen and family room to create a new "great room" effect. "The family is more comfortable now and the space is used better," said Mel Rogers, owner of T Square.

12 Years of Building Permit Data

Source: Clark County Dept. of Community Development