Open range: despite the West's plentiful land, people and money, the industry there faces rising business costs

Pool & Spa News, Nov 7, 2003 by AmyJo Brown

* In Nevada, a large number of pool builders reneging on their promises to construct pools in the late 1990s led to a restrictive pay schedule. Now the state government decrees how much they can collect from customer's and when. Restrictions also guide advertising and hiring of subcontractors, as well as require all pool consultants to have a stare license to conduct business.

* Water restrictions amid drought season are recurring battles for the pool and spa industry in all of the Western states.

Fortunately, the West has some of the most organized industry members. They've been successful in avoiding many of the pool and spa regulations that local governments attempt to pass. For example, SPEC has been successful when it's gone rip against proposed laws affecting the California industry negatively, claims Burns. His group also has become a resource for the industry in other Western stares.

"We're facing a lot of the same legislative battles in Arizona and Nevada [as California]," says Tom Burba, national vice president of NSPI Region 4. To protect the industry, Burba and others in the Southwestern area often go to SPEC for advice.

"In a lot of the cases, the battles [against the industry] are over-reactions," Burba says.

In My Shoes

By Randy Bauer My company is in close proximity to a lot of new suburban developments, such as those in Valencia and Santa Clara. These areas have been in high demand in recent years, and that means a huge opportunity for new business. Planners are building five to 10 homes at a time and turning them over relatively quickly. The amount of new-home business we get from these developments is substantial.

On the other hand, however, the permit process in Los Angeles is quickly becoming a nuisance. It is challenging to acquire a permit; the city has added lots of red tape and become more and more demanding of builders. Seismic, soil and gradient codes have been changing, and getting approved on any of these matters has become a rigorous task.

I understand the reasoning behind all of it. We build into steep slopes a lot and safety is a main concern. But it is difficult when a homeowner gets impatient with the amount of time it takes to obtain a permit. Worst-case scenario: We get declined for a permit and the homeowner insists another builder propose a plan that guarantees a permit.

In those situations, a lot of finessing is in order. Communication is key and, in most cases, homeowners are understanding, it is frustrating, however, when you know the money is out there, but the permit process is keeping you from being as profitable as you could be.

Bottom Line: The jobs are coming in, but the permits aren't.

Randy Bauer is a builder and the owner of Symphony Pools in Simi Valley, Calif.