Bob Dylan had it right.  “The times, they are a changin’.”   Our industry has weathered a tough 18 months and it is not over yet.  The market shift and credit crunch have taken a serious toll on residential production and sales levels, which consequently resulted in staffing cuts and a greater load on existing employees.   This has and will continue to test our dedication, enthusiasm and energy.  

I strongly believe that it’s what we do amidst all of this change and adversity that defines us.  Your BIA San Diego has a strong reputation for being on the cutting edge, and for adapting to changing times quickly and leading the way for its membership and our industry.  As I said in my installation speech, “To restore our industry, we must lead the way.” The building industry can and will reshape our future to ensure a strong, vibrant San Diego.   

Our current planning effort is a great example of our tenacity and flexibility.  BIA San Diego is in the middle of creating a new five-year Strategic Plan and corresponding Resource Plan that defines our future.  Led by Paul Barnes, of Shea Homes; Andrew Murphy, of American Property Enterprises, and our CEO Paul Tryon, the plan details a bold vision for the industry and our association.  It encapsulates the input of a wider group of industry leaders, veterans, and the new younger generation, who were asked to analyze where we are going as an industry and how BIA should operate to most effectively serve the industry. 

There was a strong consensus among all of these people concerning the anticipated changes in our industry and what type of residential product we will deliver.   In terms of what our industry will look like, participants defined member companies to be leaner, nimble, locally focused residential and commercial builders, with an increase in smaller, infill builders on the residential side and a stronger connection to the mixed use and commercial side.  National and international institutional owners and pension funds now dominate the ownership of the majority of our largest commercial properties.  Many of these entities are new to San Diego and are not yet vested in the region, its issues or relationships.  We must get them and other like-minded business organizations and companies involved as part of the solutions.

The environment in which we will operate was determined to be a smaller market (50% reduction in residential building permits for this year and maybe next) that is more urban in nature.  We will continue to see challenges with housing affordability (due primarily to inadequate housing supply per demand, lack of buildable land, government imposed taxes, and construction costs), increasing regulation and a stronger external focus on environmental issues.  There is also a clear need to address an inadequate infrastructure capacity and a challenging political environment.  We must get some new broad based funding sources for our aging infrastructure.

When it comes to our housing products, attached will dominate, along with an increase in mixed use/diversified product that demands a closer integration between residential and commercial builders.  Many communities will also benefit from redevelopment.

The centerpiece of our five-year Strategic Plan is the concept that the business community must lead the way. This is especially important in a region where local government lacks the capacity or will to lead on important infrastructure and important community needs such as housing and commercial facilities.

The BIA must engage and marshal the collective influences of the business community to ensure adequate housing and commercial facilities to meet the needs of a growing San Diego.  The BIA must undertake the task of coalescing the broader business community to provide a united front that advocates for the housing, commercial facilities, and infrastructure needs of San Diego.   The manpower and expertise of our industry must compliment the talents of the broader business community to tangibly influence the future.   The goal is to affect positive change.  Our efforts will be strategic and sharply focused.  We will surround ourselves with empirical data and research that supports our cause.  We will reinforce the importance of this industry to the region’s social and economic vitality. 

As Mahatma Gandhi once said, “Be the change you want to see in the world.” 

“United We Ignite!”