Navigating New Norms: Highlights from the 2024 FBMA Executive Industry Panel Discussion
The 2024 Florida Building Material Alliance (FBMA) Executive Industry Panel, held during this year’s Expo, brought together some of the brightest minds in the building and housing industry. Moderated by Don Magruder, CEO of RoMac Building Supply, the panel focused on the theme “What are the New Norms and Fundamentals?” Industry leaders shared their insights on the shifting dynamics of construction, from rising insurance premiums and labor shortages to affordability challenges and economic uncertainty. Together, they explored what the future holds for both residential and commercial construction in Florida and beyond.
Meet the Panelists: Industry Leaders at the Helm
This year’s panel featured:
• Chris Lee, President and Owner of 1st Choice Door and Millwork, and 2023 Chairman of the Florida Building Material Alliance
• Wes Robbins, President of the Greater Orlando Builders Association, and Vice President and Partner at W Robbins and Associates
• Chris Coghlan, CEO of Fastening Specialists and former Major League Baseball player, who was part of the 2016 World Series champion Chicago Cubs
• Jim Adamczyk, Senior Executive Vice President and Chief Strategy Officer at Fairwinds Credit Union
• Mike Diament, Senior Vice President at Marsh and McLennan, specializing in business insurance and employee benefits
These seasoned experts provided invaluable insights into the most pressing issues facing the construction industry today.
Key Takeaways from the Panel: What Are the New Norms?
Economic Conditions and Housing Market Challenges
The discussion opened with an examination of the economic challenges the industry faces post-pandemic. The panelists agreed that affordability remains one of the most significant hurdles for both builders and buyers.
Wes Robbins highlighted the impact of regulatory fees on home prices:
“If you look at some of the counties here in the state of Florida, I would guarantee you that a third of the price of your new home is government-regulated fees.”
These added costs, combined with inflation and material price increases, are contributing to the growing difficulty for potential homebuyers to afford new homes.
Affordability Crisis: A Major Barrier
Wes Robbins went on to emphasize that affordability is the greatest challenge across all segments of the housing market:
“Affordability is probably the biggest challenge we face today across all of our segments, whether it’s residential or commercial.”
The sharp rise in interest rates and home prices has made it increasingly difficult for buyers to qualify for mortgages, creating a bottleneck in the housing market. This issue doesn’t just affect homebuyers—it impacts the entire economy, as more people are priced out of the market and the demand for housing continues to grow.
Insurance Crisis: An Ever-Growing Concern
Another major topic was the insurance crisis gripping Florida, with premiums skyrocketing across the board. Mike Diament spoke about the financial strain this is putting on homeowners and businesses alike:
“Huge increases in homeowners’ insurance, condo insurance, liability insurance, and business insurance are financially strapping homeowners and businesses. Builders and suppliers should be worried about the rising trend in construction defect lawsuits.”
The increasing costs of insurance and the growing number of liability lawsuits are causing significant concerns for builders and suppliers, making risk management more crucial than ever.
Workforce and Labor Market Challenges
Labor shortages remain a pressing issue for the construction industry. Both Wes Robbins and Chris Lee noted that although wages have risen, attracting and retaining skilled labor continues to be a significant challenge. The availability and quality of the workforce are critical to keeping projects on track, but the industry is still facing a talent gap.
Chris Coghlan reflected on the importance of adaptability in navigating today’s challenges:
“There’s a trade-off to everything you do. At the end of the day, we’re in a service business. We serve our customers, they dictate what they value, and then we choose to either cater to that value or not.”
His insight underscored the need for flexibility and responsiveness to evolving customer expectations and market demands.
Looking Ahead: What’s Next for the Housing Market?
When asked to predict the future of the housing market, the panelists acknowledged the uncertainty that lies ahead. Jim Adamczyk suggested that while interest rates may stabilize, affordability challenges will likely persist. Chris Lee and Wes Robbins emphasized the need for businesses to stay flexible and innovative as they face regulatory changes and shifting market dynamics.
Chris Coghlan summarized the delicate balance of supply and demand with a memorable quote:
“Price is king. Availability is queen. But they’re both royalty.”
His statement captured the importance of managing both cost and resource availability in today’s competitive and evolving marketplace.
Final Thoughts: Adapting to a Changing Industry
The panel wrapped up with valuable advice for builders, suppliers, and industry professionals: remain adaptable, prioritize customer service, and focus on risk management to navigate the challenges ahead. In a rapidly changing landscape, flexibility and innovation are key to long-term success.
Watch the Full Discussion and Dive Deeper
For a more comprehensive look at the insights shared during the 2024 FBMA Executive Panel Discussion, watch the full video below. Accompanying the video, we’ve included photos from the event to capture the highlights of this thought-provoking conversation.
Stay tuned to RoMac Building Supply for more expert insights and updates on the ever-evolving building industry.
Comments