Former HBA president navigates industry headwinds

Brett Godfrey has navigated turbulent headwinds in the homebuilding industry, both as board president of the Home Builders Association of Greater Springfield and as owner of Built By Brett Inc.

Now on its fourth CEO in 18 months, the local HBA battled turnover at the top in its quest to replace nearly 12-year CEO Matt Morrow, who exited the position in late 2012 to take an executive role with the Alabama-based Greater Birmingham Association of Home Builders. Godfrey served as HBA president in 2013 - one of only a handful of three-term presidents in the organization's history - and now is helping the association adjust to changing times and new leadership.

"Any time you have change, that's a challenge," said Godfrey, the featured guest this morning for Springfield Business Journal's 12 People You Need to Know series at Hilton Garden Inn. "Losing Matt left a big void to fill. He had big shoes. He became the face of our organization and did a great job with it.

"It would have been great if we could've cloned him," Godfrey added jokingly.

Morrow was succeeded by two short-lived CEOs. Gloria Roling served in the position Jan. 1-April 5, 2013, but resigned citing family reasons. Ken Thrasher worked in the job four months starting July 1, but also stepped down abruptly.

The board has since promoted 14-year HBA veteran Charlyce Ruth to lead the Springfield organization. Godfrey said Ruth continues to perform her old duties as operations manager in addition to her CEO responsibilities, something the board is attempting to remedy.

"She knows the ropes inside and out. She's taken on a lot of new responsibilities. We're still in the midst of restaffing," Godfrey said, noting the HBA hired a couple of new staff members. "We're looking to find her some help."

Godfrey, who now serves as past-president under 2014 board President Matt Bailey of the Bailey Co., said the HBA hired Miles Ross of Veritas Public Relations as a subcontractor to temporarily conduct legislative efforts for the local HBA. He said the board is seeking a permanent employee to handle governmental affairs, something for which Morrow was known.

Despite CEO turnover, Godfrey said the local HBA maintains a 90 percent membership retention rate, which he said is the highest rate in Missouri and among the best in the United States. The Springfield HBA has lost about 25 members since the recession hit and now has a membership rate of about 375.

Still, when taking the temperature of the industry at large, Godfrey said the feeling is cautiously optimistic after consumer confidence dropped to an all-time low and the market went from record permits to the bottom of the barrel.

"People just weren't doing anything, and that's with record-low interest rates. That tells you how depressed our market was," he said. "Fortunately, in our market, we usually don't see the spikes and the valleys like the coasts or Florida. Those kinds of markets, when the boom happens, they just go nuts, but they fall hard whenever the economy goes the other direction. We've always been a nice steady pace.

"We are clawing our way out of it. We are seeing numbers picking up. I think most everybody's got work ahead of them right now."

Improving consumer confidence, Godfrey said, would likely need to come at the federal level.

"Washington is dysfunctional right now. It's just a mess," he said. "It seems like every time you get a feel for what things are going to do, something else changes. Business does not like that. We're looking for some stability."

Godfrey said typically about 25 percent of new home costs tie directly to regulations. For instance, he said a $100,000 home would include $25,000 to meet regulations - such as sustainable efforts - that he believes should be driven by market demand rather than government programs.

Godfrey's company, Built By Brett, is finishing up lots in the Woodfield Park subdivision, a private gated community in southwest Springfield. One home in the development, which he said is priced at $479,900, is slated to be featured in the HBA's Parade of Homes at the end of June.

In the current market, Godfrey said a starter home can run $125,000 to $140,000, spec houses are largely $250,000 and under and custom homes are seeing a lot of activity in the over $500,000 price range.