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The Construction Industry and Immigration Reform

For almost 20 years, the construction industry has been sounding the alarm about the declining numbers of U.S. workers entering the industry and the need for a supplemental workforce whose efforts will contribute to the GDP of an industry that can’t offshore its ultimate production.

Immigrant workers are not a new concept to the construction industry. Each wave of immigrants to the United States—from the Germans, to the Irish, to the Italians, to the Chinese, and now, the Hispanic immigrant community— have often found the industry as their first workplace home. It’s a place where success comes through hard work, and where skills and determination breed the ability to start your own small business. It’s an industry where many immigrants have been able to find their first foothold in the American middle class. So, the idea of foreign-born workers as part of the larger industry workforce is not a new one. It’s something the construction industry has been familiar with since large-scale building began on this continent.

In the United States, overall workforce shortages and skills gaps continue to be serious concerns across the construction industry. It is consistently one of the top areas of worry in the minds of CEOs, regardless of type of construction or trade. Even during the Great Recession, many markets that were still building were expressing concern about labor shortages in key trades. Steady improvements in the construction industry over the last few years have exacerbated the problem and highlighted some of the systemic challenges we have in the industry when it comes to addressing workforce shortages with U.S. workers. To put it plainly, with the graying of the U.S. workforce; the increased focus by schools, parents, and society-at-large on 4-year college degrees as the only pathway for “success” in America; the decreasing birth rate in the U.S.; and the greater reluctance among workers to do outdoor manual labor, our industry is facing a workforce crisis that has no easy answer.

Looking to improvements in U.S. immigration policy has been one method of attempting to address the workforce shortage issue across the construction industry. To say the immigration issue is divisive is probably the understatement of the century, and those divisions don’t magically disappear when you talk to construction industry employers and workers. There are strong opinions on the macropolitical issues and policy recommendations made by lawmakers and political parties. But what I have also found is that—setting aside the chaos of the broader immigration debate—construction industry employers recognize very quickly that the underlying issue is less about immigration and more about creating policies that will help the industry access legal workers to supplement the declining U.S. workforce. In order for U.S. industry workers to continue to work, additional workers must be added to the system to meet construction sector demand.

Industry trades and their suppliers are all interdependent on one another and addressing the workforce crisis is the tide that will help raise all boats. However, addressing the crisis is no easy feat, and it probably can’t happen overnight; it will take solutions involving both the domestic and foreign-born workforces to make it successful.

The idea that U.S. workers would do these jobs if paid more money is quite common and comes from both sides of the aisle. Both parties have political incentives from their respective bases to not support viable immigrant and temporary worker programs that benefit what the government calls the “low-skilled sectors” like construction. This idea that foreign-born workers are taking jobs that Americans are clamoring to do is one that gets repeated across the ideological spectrum, intentionally failing to acknowledge the real workforce challenges that exist in the United States. It somehow serves as a “hall pass” to ignore the demographics factors that tell us the U.S.-based construction workforce is shrinking.

Importantly, “just paying more” is also a poor economic position. Wage growth without productivity gains is the textbook definition of economic inflation. Artificial wage inflation is easier said than done when you have an industry like construction. While some look at government-funded construction projects and laughingly think that the public sector money spigot never shuts off—so it doesn’t matter how far over budget you run—most projects happen in the private sector where market impacts that drive projects over-budget can quickly impact whether a project happens at all. In the case of residential construction, the negative ripple effect is easy to see, as any significant increase in labor costs or materials directly impacts the selling price of a home and thus the ability for potential buyers in the marketplace to qualify for the mortgage on that home. Artificial wage growth doesn’t fix the underlying problem of a shrinking workforce, but it can negatively impact the overall health of the sector—thus potentially harming the very U.S. workers it attempts to aid.

What Comes Next?

Currently, the industry is facing real and significant workforce shortages and skills gaps; a decreasing pool of U.S. workers willing and able to take on these jobs; a highly politicized immigration policy debate; and a foreign-born workforce outside of our nation
that potentially represents a good and an efficient method for securing a legal, supplemental workforce to assist the industry. Unfortunately, not enough progress is being made on utilizing this potential workforce.

First, it’s important to remember that Congress and the federal government at large are typically reactive bodies. The system isn’t designed for policymakers and lawmakers to see an issue coming down the pike and step in to address it before it happens. Rather, the system is designed and operates as a response system. Only after the crisis hits does the system start coming up with a response. The private sector is seeing and feeling the workforce crisis, and it’s a problem that will persist. For policymakers however, it is seen as less of a crisis because the economy is still functioning. It is up to industry participants to draw attention to the seriousness of the issue.

When it comes to the domestic U.S. workforce, one key objective must be to come up with training programs and education incentives that will encourage U.S. workers—including those non-traditional industry participants such as women—to look into jobs in the industry. Industry groups need to work on the ground with community colleges, high schools, and guidance counselors to help them understand that there are many great, lifelong careers to be had in the construction industry—and help them to develop the syllabus, classes, and training programs that teach skills that fit what employers actually need in the real world. The fact that the industry has traditionally been characterized by
de-centralized relationships can be a problem—while many groups have efforts toward training, there is little coordination between different groups. Collaborating on training efforts will be vital to success—as well as making the worker shortage and skills gap crisis a collective top priority.

Lawmakers need a better understanding of the private sector construction marketplace as it relates to a foreign-born workforce. The stark reality is that in order for the industry to continue to meet demand, and in order for the industry to thrive and continue to contribute to the GDP of the United States, the industry needs access to a legal, viable, supplemental workforce that fills our labor shortages and skills gaps. It’s important that Congress and the administration begin to take these concerns seriously and start
working with the industry to identify fair, efficient, and workable programs that allow industry employers to hire supplemental workers when the economy needs them. The construction industry cannot build bridges, road, buildings, or homes in another country and then ship them to the United States; it needs a domestic workforce to continue
to complete projects of this nature.

For almost 20 years, the construction industry has been at the forefront of pushing lawmakers and administrations on both sides of the aisle to create a year-round work visa program for workers to enter the United States to work in the industry when the economy and the sector need their supplemental assistance. Under my organization’s industry proposal, workers could enter on a 3-year visa and would be restricted to working with only those employers who have demonstrated that U.S. workers are not ready, willing, and available to do those jobs. The creation of this type of visa program is a complicated matter, but it is one that the government cannot continue to ignore. Today, the federal government provides a legal work visa program for the agriculture sector (H-2A); a legal work visa program for the high-tech sector (H-1B); and a small seasonal visa program that is used most often by landscapers and resorts for seasonal work (H-2B). There is absolutely no program of legal work visas to cover the rest of the economy.

There are a few key objectives for my organization moving forward: (1) prioritize the workforce shortage as a top issue; (2) coordinate with one another on training programs and opportunities for U.S. workers, students, and non-traditional industry participants like women; and (3) coordinate messaging about the importance of the jobs available in the industry, as well as the potential for long, successful careers and small businesses throughout the trades. Construction must continue to push lawmakers to provide the construction industry with the same level playing field of access to foreign-born workers that the agriculture and high-tech sectors already receive. The challenges facing the industry are very real, and it will take effort, creativity, and common-sense policy changes to address both the domestic U.S. workforce, and our need for supplemental foreign-born workers.

 

 

Copyright Statement

This article was published in the December 2018 issue of Insulation Outlook magazine. Copyright © 2018 National Insulation Association. All rights reserved. The contents of this website and Insulation Outlook magazine may not be reproduced in any means, in whole or in part, without the prior written permission of the publisher and NIA. Any unauthorized duplication is strictly prohibited and would violate NIA’s copyright and may violate other copyright agreements that NIA has with authors and partners. Contact publisher@insulation.org to reprint or reproduce this content.

NIA Sites > Insulation Outlook Magazine > Global

The Opioid Crisis: The Construction Industry’s Simmering Threat

Drug overdoses claimed more than 64,000 American lives in 2016, which is nearly double the amount only a decade ago. Theories vary about the reasons behind the dramatic increase, although many attribute it to doctors prescribing opioid medications more frequently. Despite stagnant levels of reported patient pain, prescription opioid sales to pharmacies, hospitals, and doctors’ offices nearly quadrupled from 1999 to 2010.

The construction industry is no stranger to the devastating effects of opioid abuse. In fact, a 2017 study revealed that construction workers are among the most susceptible to opioid abuse, second only to food service industry employees. Business insurance agent CNA estimates 15.1% of construction workers have used legal or illegal drugs illicitly.

However, few construction company officials will talk openly about the issue, fearing a negative image for their firms and potentially higher insurance rates.

A recent Cleveland.com article took a detailed look at Ohio construction workers and their particularly high rate of death from opioid overdoses. Daniel Macklin, age 40, was one of 500 Ohio casualties of an opioid overdose last year, after battling a heroin addiction for nearly 20 years. Years of laying roof shingles subjected his body to wear and tear and his shoulders, especially, bore the brunt of the discomfort. After a doctor denied him a non-narcotic pain medication and suggested physical therapy, Macklin’s fiancée found him dead in a bathroom of a fentanyl overdose.

When President Donald Trump declared the opioid crisis to be a public health emergency in October, more stories came to light about substance abuse across industries. Although the move opened the floodgates of dialogue around the topic, Trump came a play short of declaring the opioid crisis a national emergency, and didn’t provide funding for addiction treatment—disappointing news for many health-care professionals.

The epidemic poses a significant risk not only to construction workers, but the companies that employ them, others working on a jobsite, and even passersby. This article explores the factors behind why construction workers may be more prone to opioid abuse, and what construction companies should know if a substance-related accident does occur.

Why Opioids?

One of the most pressing questions is why opioid abuse has become so prevalent in recent years. Beyond over-prescribing the medications, the construction industry has a unique take on the why.

“One of the bigger things we see driving this is the aging workforce in America,” said Jake Morin, Niche President of Construction at ProSight Specialty Insurance in Morristown, New Jersey. “Everyone calls [2008 to 2010] the economic crisis; I call it the construction crisis. We weren’t building like we were so we lost a lot of skilled labor. Not only did you have people leaving construction during that two-and-a-half years, but it was also a time when younger people were not getting into [the industry].”

The aging construction workforce, coupled with fewer young people entering it, equals older laborers expected to do more than they were in the past. Typically, aging employees might have focused more on drawing and supervising as opposed to lifting I-beams and drywall and other physically strenuous work.

“Our bodies don’t rejuvenate when we’re on our late 40s onward like they did in our 20s and 30s,” said Morin. “I think that’s one of the major reasons we see substance abuse.” Rather than take the time off for a body to recuperate from strain or an injury, some turn to painkillers to mask the symptoms and try to work through them.

Mental health issues also may play into whether a worker is more prone to substance abuse. Many construction workers who come through the Canadian Construction Industry Rehabilitation Plan’s (CIRP) doors are between 30 and 40 years old. After CIRP started collecting data about substance abuse in the construction industry last year, it found that nearly 83% of those it treats screen positive for moderate to severe underlying mental health issues.

Although many companies require drug testing before finalizing an employment offer and some do random testing, drug tests on a jobsite can be complicated, explained David Pfeffer, Chair of the Construction Practice Group at New York-based law firm Tarter Krinsky & Drogin.

“As an owner or developer, you’re often dealing with people who aren’t your employees, but are employees of many companies, subcontractors, and sub-subcontractors,” he said.

“Every entity has their own testing protocol and unions have varying testing protocols. It’s difficult for the industry to police itself.”

Numerous contacts were made with construction companies about their experiences with opioid abuse among their workers and subcontractors, but all declined to be interviewed for this story.

Safety Concerns

Pfeffer said while addiction is problematic in many industries, jobsites are physically dangerous. “When you have construction workers under the influence, whether it be alcohol or illegal drugs, you’re putting not only that worker at tremendous risk, but you’re putting his coworkers and the general public or passersby at risk,” he said. “There is a real issue, and I think it’s something that should be revisited from a protection point of view.”

Close camaraderie among colleagues means they’re reluctant to report any abuse they see. “Sometimes, it takes OSHA being on site or the Department of Buildings demanding a urinalysis or blood sample for proper protocol to be followed,” Morin said. “These men and women take care of themselves. It’s a team effect when you’re on a jobsite with a lot of ‘It could’ve been me’ mindsets.”

Morin also raised the question of how to define what drug abuse is and isn’t. He questioned if certain drugs might be safer than others. For example, is medical marijuana better than Oxycontin, a prescription opioid pain medication? Are higher doses of prescribed Advil, an over-the-counter pain reliever, better than Vicodin, another opioid?

“Is there something we should be looking at as a country where we start ranking these drugs in a different order or fashion instead of lumping them all together?” he asked.

Morin suggested that if an individual is on a heavy-duty painkiller short-term that the worker could be moved to a safer area of the jobsite or temporarily to a desk job. “I do think that’s a way to combat it and why unions and associations have rehab protocols in place if you were to test positive,” he said.

Next Steps

As with so many legal issues, if there is a problem on a jobsite, next steps regarding liability depend on the jurisdiction. New York, for example, has Labor Laws 243 and 241, which make owners strictly liable for accidents that occur as a result of their projects or projects, said Pfeffer. The industry has passed off liability through insurance and indemnification requirements, which the lawyer said, are “written indemnification clauses between the owner and contractor, whereby a contractor promises to indemnify, defend, and hold harmless the owner of a construction project for site accidents that may occur as a result of contractor’s or subcontractor’s work on a project.”

Pfeffer has seen cases proceed to litigation, which generally involve site accidents with allegations of employee drug or alcohol abuse. If a plaintiff can show the employer knew about the situation, then there can be punitive damages levied that otherwise may not exist. “There are varying levels of liability,” he said. Morin explained a contractor’s general liability insurance would cover damages if an under-the-influence worker injures someone in an accident.

“If someone drops an I-beam, their employer is now responsible for property damage and bodily injury it caused,” he said, adding the building owner could also be responsible for property damage and bodily damage. But, he said, take the scenario one step further: “Depending on the type of job that individual had, such as a crane operator, they could be held criminally liable for their act. If they killed someone it could turn into a manslaughter case.”

Most states have employee at-will status so employment can be terminated at any time. But in construction, many employment agreements are through unions, which involve a contract that the employer must honor. Pfeffer noted that those contracts do include protective language for the employer, such as if an employer has reason to believe an employee is doing illegal drugs or drinking alcohol onsite, that worker cannot come onsite and there may be an investigation. Some electrical companies Pfeffer knows of have a contract with a “2 strikes and you’re out policy.”

Prevention, of course, may be the best medicine.

 

Copyright Statement

This article was published in the December 2018 issue of Insulation Outlook magazine. Copyright © 2018 National Insulation Association. All rights reserved. The contents of this website and Insulation Outlook magazine may not be reproduced in any means, in whole or in part, without the prior written permission of the publisher and NIA. Any unauthorized duplication is strictly prohibited and would violate NIA’s copyright and may violate other copyright agreements that NIA has with authors and partners. Contact publisher@insulation.org to reprint or reproduce this content.

Reprinted with permission from Construction Dive.

NIA Sites > Insulation Outlook Magazine > Global

Preparing the Industry’s Next Generation

In the mechanical insulation industry, the transfer of knowledge to the next generation of leaders is a top-of-mind topic, but these mentoring tactics can be used by engineers and architects as well. To learn what’s happening on the ground in all sectors of the industry, Insulation Outlook interviewed a handful of National Insulation Association (NIA) members to get a first-hand look at how our industry is preparing the next generation—from leadership training programs, to formal and informal mentoring programs, to extensive onboarding processes, to improving corporate culture, to building relationships—and in turn, what the new generation is bringing to the industry.

Providing Perspective

Many insulation industry professionals were first introduced to the business by chance. NIA President Dan Bofinger is based in St. Pete, Florida, and is Regional Vice President, East, of Specialty Products & Insulation, a NIA Distributor member. He shared, “Like many in the mechanical insulation industry, I did not choose a career in mechanical insulation—it was an employment opportunity that was presented to me and I decided to give it a try. And 36 years later, I have no regrets.”

For Dayna Martin, Senior Marketing Specialist with Johns Manville, a NIA Associate (Manufacturer) member in Denver, Colorado, chance was also a factor, “Honestly, I fell into the industry by chance. A good company and good coworkers have been reasons to stay. The industry and products will always be needed, and as new innovations and generations come, there will always be a need understand how to properly select an insulation material.”

When entering the workforce Matt Caldwell, President of Caldwell Insulation, a NIA Union Contractor member in Powder Springs, Georgia knew one thing: “I wanted to be self-employed. I did have family in the construction industry. I worked through college in the industry and took a job out of college with another company. I started my company in my garage over 25 years ago,” Caldwell said.

On the other hand, Laura Dover, President of Dover Insulation, a NIA Merit Contractor member in Marion, North Carolina, never had any intention of entering the family business. “Honestly, I never wanted to be an insulation contractor. I was thrust into the role unexpectedly. Today I can say that I am very glad to have had the opportunity to continue the work of my father and my grandfather. Ours is an industry that makes a difference, both in our own communities and globally, by saving businesses money and conserving energy, and I am proud to be the third generation of mechanical insulators in my family,” Dover said.

John Freeman, Project Manager for Petrin, LLC, a NIA Merit Contractor member in Port Allen, Louisiana, has family ties to the business. He said, “In Louisiana, the petrochemical industry is the driving force of the economy. My entire family has ties to the industry in one way or another. For me, it wasn’t which industry I would go into, but what sector of the construction industry I wanted to pursue a career in.”

Similarly, James K. Low, Business Development Manager of Ideal Products, a NIA Fabricator member in Edmonton, Alberta, Canada, said, “My former father-in-law was in the industry and knew people who had a need on the distribution side. I went in 15 years ago, and I’ve never left.” Low, who came from a different sector originally, was also attracted to the industry because of the stability and regular hours.

Mentoring, Formally and Informally

Dover credits her ability to step in and lead her family’s company to the employees that her father hired that ended up becoming her mentors. “I found myself in charge—with very little experience—of an insulation contracting company at the age of 35 when my father died. He built Dover Insulation over the course of 40 plus years and seemed to micromanage all aspects of company operations. It was daunting and scary. I learned very quickly that the most valuable asset he left me was an incredible team of mentors—long-term employees who cared about the company and my family and hung in there with me until I could find my own way. It is not an exaggeration to say that my mentors saved our company by providing me with the support and guidance necessary to transition ownership,” Dover said.

As a small contracting company, Dover Insulation has the luxury of being flexible and treating every mentoring situation individually. Its approach to mentoring is informal and cultivates an environment in which more experienced employees take pride in where they work and what they do, and less experienced employees feel valued and heard. According to Dover, “Whether in the office or in the field, we work to make employees feel connected and focused on the big picture. For us, mentoring and teamwork go hand-in-hand.”

Martin describes a similar situation, saying that she also naturally followed the guidance and teaching from a coworker who has been in the industry for his entire career. This mentor had been in the field applying their product, in sales, and in the office working at a higher level. “I would say the main benefit from this informal mentor was learning the products, understanding the problems end users face, and how our products could solve those problems. Then in my role of marketing, understanding those factors to help create relevant content to the industry to educate them on best practices and make sure they understand the products and selection criteria,” Martin said. In addition, Johns Manville offers multiple development courses offered within what is called JM University, covering topics like Crucial Conversations, Manager as a Coach, the Emerging Leaders Program, How to Sell, and more.

Similar informal mentoring relationships have developed at Specialty Products & Insulation, said Bofinger, “You don’t necessarily get assigned a mentor but you gravitate toward someone who takes you under their wing. I see it a lot in our company where certain people click. They may not be in the same branch, but they reach out to each other and it works.” He added more about his personal experience, saying, “I have been fortunate to have 3 experienced leaders that helped guide me early on in my career. What I have taken away from this experience is that no matter what level you are in a company, you should always take time to discuss your experiences with newer less experienced employees. This is especially true if you can share mistakes of the past and how you managed through them.”

Ideal Products does have a formal program and Low says that trust is a big component. Matchups are critical; in their program, you don’t mentor your own direct reports, but cross-mentor from different departments. The frequency and location are varied according to what best met the needs of the people involved. “One of the biggest things with mentors and mentees is that there is a level of trust and that they are being coached and mentored with an open mind.” Ideal Products’ program grew out of a leadership training program that the whole company participated in and is supported whole-heartedly by the company’s owners.

Low sees value in the blend of coaching and mentoring that aligns everyone with the culture built on the company’s core values. According to Low, “Being a mentor is less about telling and more about listening.” One example Low gave was self-problem-solving techniques that he learned from the executive level. “I learned how to solve my own problems by being asked questions that would lead me to figuring out what I needed to do next. I would then use those techniques for people I was mentoring.” Other topics included self-improvement, time management, communication styles, and more.

Onboarding New Employees

For Caldwell’s contracting company, mentoring is an informal process; however, onboarding new employees is a highly structured and intensive 2-year process. New hires start in an assistant project manager role and then move to an assistant estimator role. Caldwell says this helps him get a better of idea of where their natural talents are. “I find that people who are more extroverted tend to steer more toward project management. They are out in the field and working with crews and customers. And people who may be more introverted are more comfortable in pre-construction and estimating—they excel behind the computer screen and at the drafting table. Identifying where you work best helps push for success for both the person and the company.”

Bofinger shares a similar process, saying, “We are fairly consistent with how we onboard new and inexperienced employees and continue training and mentoring them for an extended period of time. Typically, the new employee is mentored by the local manager who coordinates various training activities with internal and external resources. This process can take months or even a year or more to get the employee up to speed with the required knowledge base.

Freeman describes a very similar process, saying that new hires begin in the estimating department. They work close and train under the company’s Director of Estimating and gain a knowledge of all aspects of a project while putting together an estimate, including materials, logistics, productivity rates, and equipment required to complete the project. Freeman added that he has gained much knowledge from both current and past supervisors, including how to earn the respect of and motivate the team, the importance of being detail and process oriented, how to properly prepare for a meeting or presentation, and how to establish and maintain a business relationship with a client.

Acting Now to Prepare for the Future

Whether it is onboarding, mentoring, or leadership training, the end goal is to have the right people to build your business. For Caldwell, “Our focus is employing the right person for the long-term. The cost we incur to get them up to speed is steep. We don’t want to make that kind of investment in someone who will be moving on in 5 years. Being construction-minded and skills in science and math are good, but the reality is I’m looking for simple but important things: solid work ethic, integrity, dependability. I want someone who is going to come on board and stay for the long haul. There is not a school in America that teaches what we do.”

Dover’s recruitment philosophy is similarly simple, but stable: “We have a pretty basic strategy for attracting new talent: Be a great place to work. Mechanical insulation is not a glamorous field, so it is essential that we offer fair pay and excellent benefits, and genuinely care about employees, their families, and the community where they live. As an established company located in a small, rural North Carolina town, we have found that if you take care of your employees, the word will spread.”

On the topic of attracting women to the mechanical insulation industry, Dover adds, “My advice to contractors is not to underestimate the role women can play in your company, both in the field and in company management. And for business owners thinking about succession planning, the same is true for female family members.”

As a woman in a male-dominated industry, Martin sees an improving landscape saying, “While this is a typically male-dominated field, I see more and more women in the industry and the only way to sustain that growth is to continue supporting the women to progress in their roles. Creating a support group for women helps to create a unique support system that address innovative ideas and concerns in the industry. Continue to highlight leading females in the industry and add them to a mentoring program.”

In general, Martin points to the work environment as a way to retain the talent employees, saying, “Create a positive atmosphere, a sense of pride in the work created, and provide rewards and recognition for a job well done. It’s important to keep a team striving to do their best work and being able to recognize mistakes made and how to correct and learn from them. Employees need to trust that they are respected and have opportunities to develop and progress in the company if that’s what they chose. Additionally, a flexible work schedule is becoming a privilege that employees are seeking, if the role allows that.”

Low agrees about creating a fantastic work environment. “What works for us is promoting our work/life blend culture and driving our core values. You can have a million rules, but decisions are far easier if they are in alignment with your values. We let people know what the greater goal that we are trying to achieve is and how we get there is different. We try to create an environment where people feel comfortable to speak their mind.”

Technology Transfer

For Low, he notes that a majority of their team is younger and a lot of the process and systems that are in place today have come up from new ideas. He notes, “We are open to trying things. We can act quickly. It’s never a wrong decision, either it works or you learn from it.”

Martin agrees and has seen success in blending new ideas with experience. “I’ve seen the younger generation’s new ideas to try things a different way or try new tactics. But the younger generations have also taken the time to learn from the more experienced generation and have found more efficient ways to do things.”

Everyone agrees that technology has revolutionized the way the mechanical industry operates. Caldwell said, “For our industry as a whole, technology has changed our business dramatically over the past 25 years. Where we used to walk around with blueprints, we are now walking around with iPads. The driving factor has been large construction firms moving to paper free and requiring higher technological skills.” Bofinger added that technology has certainly changed the industry, moving everything faster. Younger people grow up with and are more comfortable with it they embrace it; they have the ideas to utilize the technology that helps the industry.

Freeman has seen the technological shift, especially advancements in the areas of scheduling, estimating, and cost controls. He added, “If the next generation can show the benefits of improved processes which make things more efficient, consistent, and increase profit margins, companies will buy in.”

Dover added, “While insulation contractors are slow to change their habits, and we proceed with great caution when something new or different is before us, it is important to stay current and to keep looking ahead. Often the next generation is the most well-suited for this role. Some degree of reverse mentoring from the younger generation to the previous generation is appropriate and helpful when tackling new technology.”

Mature Industry with a Secure Future

Looking forward, Dover added, “I recognize that Dover employees are the most valuable part of the company, and making sure we pass on skills and knowledge is essential to our long-term success. We cannot remain in business or remain profitable without constant and consistent mentoring. Over the years we have mentored the children, grandchildren, siblings, spouses, friends, and neighbors of Dover employees. We are a family business.”

Low is optimistic about the future of the mechanical industry. “We are about positives: we are about energy efficiency, reducing greenhouse gas emissions, addressing corrosion, lowering the carbon footprint—so many opportunities for growth and development.” Caldwell agreed saying, “Our industry in on the front-end of a long-term investment in energy efficiency for our nation, offering solid returns on investment.”

In regard to the labor shortage, Bofinger pointed out that the mechanical insulation industry is no different than other construction-related businesses. “We are at the early stages of a serious labor shortage. If someone chooses to build a career in the mechanical insulation industry, there is no doubt in my mind they will have a secure future. There will always be a need for our products and services. That demand will attract talent to our space and it is up to us to provide a culture and environment that makes them want to turn a job into a career.”

Motivating Factors

A career is made up of days, weeks, years, and decades in a job. When asked what motivates our interviewees to get up and come to work each morning, each one had a slightly different response that points to a variety of day-to-day and overall career satisfaction.

For Dover it is carrying on the family business and the people who make that possible: “A commitment to my family business, to our customers—some of whom have been with us for decades—and to the many employees who show up and work hard on a daily basis.
Low focuses on what he gets to do each day: “I get to do the things I do, not have to. I’ve gotten to write my own job description several times. What do you think would be a good job description for you to add value to the company? There’s nothing like being able to do that.”

For Martin, variety is a big factor: “I love my role of marketing because it allows me to research how to reach an audience and determine what information they need for product selection. I also manage our events, so it allows me to get in front of customers from the entire supply chain to end users. It’s constantly changing and challenging our team to provide new and better content and products to the industry.”

Freeman mentioned problem solving, competition, and accomplishment, saying, “As a project manager, I enjoy working with my team to solve problems and hopefully identify potential problems and rectify them before they occur. I love the competitive aspect of the business, whether it is the competitive bid process, meeting a difficult project deadline, or a presentation to a new client to try and generate business. There is a start and finish to each project, and when a project is completed safely, on time, and in budget, it creates a sense of accomplishment.”

Bofinger takes an overall positive industry view, saying, “When you enjoy the industry, what you do, and the people you work with, you know you are in a good industry with a good culture.”

And last, Caldwell just can’t wait for the start of the work week: “My favorite time of the week is Sunday night. I love to go to work. Why? The people, the big satisfaction in seeing projects completed, the craftsmanship, the fun we have in the office. We share in the losses and the wins and we are 25 people who love what we do.”

 

 

Copyright Statement

This article was published in the December 2018 issue of Insulation Outlook magazine. Copyright © 2018 National Insulation Association. All rights reserved. The contents of this website and Insulation Outlook magazine may not be reproduced in any means, in whole or in part, without the prior written permission of the publisher and NIA. Any unauthorized duplication is strictly prohibited and would violate NIA’s copyright and may violate other copyright agreements that NIA has with authors and partners. Contact publisher@insulation.org to reprint or reproduce this content.

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Safety Matters: ‘Tis the Season—Keep Safe this Holiday Season

This month we want to help protect you at work and at home. Please use these tips if you are planning on celebrating any of the upcoming holidays. Whether you are celebrating Christmas, Hanukkah, Kwanzaa, or Solstice, it’s important to stay safe!

It’s the holiday season! The winter holidays are time for family, friends, festivities, and unfortunately, fires. Holiday decorations, candles, and cooking all contribute to an increased risk of fire during the winter holiday season. As you deck the halls this season at home and work, think fire safety.

Christmas trees cause over 200 house fires every year. Christmas tree fires can be especially dangerous because of how quickly they ignite and they tend to be more destructive. If you decide on a real Christmas tree, pick a fresh one. The needles should look shiny and green and not fall off when you pull on the branch. Once you get it home, water your tree as soon as possible. Sawing a thin cut off the bottom of the trunk and using warm water the first time you water the tree will maximize your tree’s ability to absorb water. Sap can harden in the bottom of the trunk and prevent your tree from getting a good drink. All trees, real or artificial, must be placed at least 3 feet from any heating sources, including fire places. For those with artificial trees, be aware that flame resistant doesn’t mean fire proof.

Make sure any lights you put on the tree, or elsewhere, are in good condition and are designed for the purpose. Lights should have a UL-approval label—a green holographic label for indoor use, and a red holographic label for indoor/outdoor. Newer LED lights are a safer alternative to older incandescent bulbs, which get hotter and can break more easily. Newer lights also have fused cords that prevent sparking short circuits. Inspect lights before hanging them. Check for damaged wires, broken sockets, or loose connections. Don’t place light cords or extension cords under carpeting or furniture where they can be damaged and create a hot spot. When hanging lights outside, use a 3-cord, grounded extension cord and a GFCI outlet. Also heed the manufacturer’s instructions for how many light sets can be connected together (usually 3). Don’t be like Clark Griswold and blackout the entire neighborhood with your massive light display.

Candles cause even more fires than trees and lights. December is peak season for candle fires with Hanukkah, Christmas Eve, Christmas Day, and New Year’s Eve leading the way. Never leave candles unattended, especially around children and pets. Keep candles at least 12 inches away from combustible materials, including tablecloths and the piles of ripped up wrapping paper likely to be present on the holidays. Placing candles too close to a combustible material is the leading cause of candle-related home fires. Falling asleep with candles burning is another leading contributor. Keep candles where they cannot be knocked over, and make sure they are out when you go to bed. Battery operated, flameless candles are a safer alternative and are often indistinguishable from the real thing.

Fireplaces can be another hazard over the holidays. Keep combustible materials away from the fireplace when you have a fire lit. Always use a screen when a fire is lit and never leave a fire unattended. Also, resist the temptation to burn wrapping paper or tree branches in the fireplace. Both can send flames up into the flue and start a chimney fire. Only burn dry, seasoned wood. Burning green wood can lead to a dangerous buildup of creosote. Have your chimney inspected and cleaned by a professional chimney sweep every year.

No holiday is complete without a feast. Unfortunately, this can be another common source of home fires. The kitchen is the most hazardous room in the house. Unattended cooking is the leading cause of fires. Grease fires can be particularly dangerous. Extinguish a grease fire by covering it with a lid, baking pan, or another pot. Baking powder can be used to smother a grease fire. Do not use water, it will only splash and make the fire worse. Another bad idea is trying to carry the burning pan outside. Your movement will cause the liquid to slosh around and flare up, possibly causing you to drop the pan. If you are deep frying a turkey over the holidays, be aware these fryers can be especially dangerous if precautions are not used. Place the fryer outside, well away from the house on solid level ground; not on a deck. Be sure to leave enough room in the pot for the hot oil to expand. If the hot oil bubbles over when you place the turkey in the fryer you can have a major fire to deal with. Just like with a kitchen fire, turn off the gas and try to smother the fire with a lid. A dry chemical fire extinguisher is a good idea too. Better to ruin the turkey than burn down your house.

Make fire prevention a priority when you turn up the cheer this holiday season. A moment of carelessness or distraction is all it takes to turn holiday festivities into tragedy. Just a little extra precaution and attention can keep your home from becoming a holiday fire statistic. Stay tuned for future Safety Matters columns as I throw a wet blanket on other holidays including Fourth of July—Firecracker Calamity, and Halloween—Trick, Treat, or Triage. Have a safe and happy holiday season.

 

Copyright Statement

This article was published in the December 2018 issue of Insulation Outlook magazine. Copyright © 2018 National Insulation Association. All rights reserved. The contents of this website and Insulation Outlook magazine may not be reproduced in any means, in whole or in part, without the prior written permission of the publisher and NIA. Any unauthorized duplication is strictly prohibited and would violate NIA’s copyright and may violate other copyright agreements that NIA has with authors and partners. Contact publisher@insulation.org to reprint or reproduce this content.

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Industrial Product Guide

Below is the Industrial Product Guide from Insulation Outlook’s November issue. In this helpful guide, manufacturers give details on products that have been used in the industrial industry.

Click here to view the Industrial Product Guide

 

 

Copyright Statement

This article was published in the November 2018 issue of Insulation Outlook magazine. Copyright © 2018 National Insulation Association. All rights reserved. The contents of this website and Insulation Outlook magazine may not be reproduced in any means, in whole or in part, without the prior written permission of the publisher and NIA. Any unauthorized duplication is strictly prohibited and would violate NIA’s copyright and may violate other copyright agreements that NIA has with authors and partners. Contact publisher@insulation.org to reprint or reproduce this content.

NIA Sites > Insulation Outlook Magazine > Global

Corrosion Prevention: What You Need to Know

The Insulation Outlook staff and employees of K-FLEX USA are sad to announce the passing of Roger Schmidt. He will be missed by many and we are honored to share his expertise one final time.

There have been many studies done and academic papers written about the subject of corrosion under insulation (CUI) on metal piping, ducts, tanks, etc. CUI is a concern for insulation used on pipes operating in the temperature range of 32°F to 250°F for carbon steel and 140°F to 250°F for austenitic stainless steel. It is also of particular concern in cycling temperature systems because the cold portion of this cycle draws moisture into the insulation system and then the hot portion of this cycle speeds up the corrosion chemical reactions. In addition, cycling temperature systems undergo repeated expansion/contraction, which can be damaging to insulation and vapor retarder systems. This article will cover general facts regarding corrosion, 2 examples of where CUI occurred on applications, and a summary of recommendations that should minimize the risk of CUI. While the recommendations may not apply to all insulation materials, for the purposes of this article, when I mention insulation systems, I am referring to systems used for the applications described above.

Corrosion can occur on any kind of metal piping (iron, copper, aluminum, or stainless steel). Some austenitic stainless steels are particularly susceptible to stress corrosion cracking (SCC) from corrosive ions at temperatures between 140°F and 250°F. When it occurs, corrosion can create safety issues and is a costly problem to correct, so it should be taken seriously. Corrosion can occur on indoor or outdoor systems, and on hot or cold systems. It is much more likely to occur on industrial outdoor systems that operate between the 140°F to 250°F range for stainless steel, or 32°F to 250°F for carbon steel. Pipes or tanks that repeatedly cycle from hot to cold are particularly prone to corrosion. Indoor commercial applications are less likely to encounter issues with corrosion, mainly due to there being less water and water vapor present in the ambient environment in most indoor applications. However, as we will see in the examples, it is certainly possible. This is especially true if the insulation becomes wet.

There are 3 necessary ingredients for corrosion to occur: metal, air (oxygen), and an electrolyte (usually water). Since the metal and air are always present, the controlling factor contributing to CUI is the electrolyte, that is, moisture that penetrates through the insulation system and comes in contact with the metal pipe. Without the moisture, corrosion does not occur. The insulation and/or vapor retarder system must be selected and designed to minimize moisture penetration into the insulation system. Insulation materials with low water vapor transmission rates may be good options for inhibiting moisture vapor ingress.

Most insulation types, by themselves, neither cause nor prevent CUI. Instead, insulation systems prevent corrosion by preventing moisture ingress from reaching the metal pipe. Most insulation materials do not contain corrosion inhibitors in sufficient amounts to be a significant factor in preventing corrosion.

When corrosion occurs, there is often a corrodent/accelerant, (i.e., corrosive ion) involved. An example would be halogens—typically chlorides—that exacerbate corrosion. Although the first reaction is often to blame the insulation, the fact that moisture has made its way into the system means that the system is not completely sealed. Therefore, the actual source of the corrodent is often difficult to detect and can come from many sources, often at a great distance from where the actual corrosion occurred. Water intrusion into the insulation system provides a near inexhaustible source for these corrosive ions, which greatly exceed the level of ions present in the insulation. Other potentially corrosive halogens include fluorine, bromine, and iodine. Sulfides, while not halogen based, are also potentially corrosive.

The first step to preventing corrosion is proper insulation system installation. Ensuring that an appropriate insulation is used and that the system is properly installed and sealed is of vital importance. Additionally, there should be a continual maintenance program that includes visual inspection of the insulation system to identify damage, since damage elevates the corrosion potential. Such a maintenance program can help to reduce costly repairs.

Clearly, there are a number of factors that contribute to corrosion that are not directly related to the insulation itself. Additionally, there are certain applications that have a higher risk of corrosion: outdoor applications, and indoor applications where the operating temperature cycles from hot to cold.

In terms of preventing corrosion, there are several steps to take. First and foremost, preventing moisture ingress from penetrating the insulation system can prevent corrosion from occurring. Moisture must be present for corrosion to occur. Notice I said penetrating the “insulation system,” as it is not just the insulation that is at play here, but also the jacket, moisture vapor retarder, etc. Insulation materials with low water absorption and water vapor transmission properties are generally a good choice for minimizing moisture ingress without the use of an additional concentrated moisture vapor barrier for many applications. The system also includes the fittings, insulation-covering hangers, valves, vapor stops, and any other potential weak spot in the piping layout. Sealing the entire system from moisture can’t be stressed enough in the fight against corrosion. Ideally, if an operating cold line is wet, it should not be insulated, since that would trap moisture under the insulation.

It is not acceptable to succumb to the belief that moisture will get into the system sometime and, as a result, neglect this aspect of the project. Installation of the system is equally as important as the material selection. A poor installation will doom the best material selection to failure. Proper use of vapor stops/dams limits the damage that can be done if there is a break in the insulation system that would allow moisture to contact the piping. Chapter 23 of the ASHRAE Handbook—Fundamentals (specifically Section 23.8 “Corrosion Under Insulation”) provides a basic understanding of the issue of CUI, its causes, effects, and remedies.

It is erroneous to believe that insulation by itself will prevent CUI. The best that can be said is that the insulation itself will not be or provide the corrodent accelerant to the corrosion process in the presence of moisture. Insulation is one part of the insulation system, which, in some cases, can minimize/prevent moisture ingress to the piping. If installed properly, it can help prevent corrosion. There are some insulations that do contain sufficient corrosion inhibitors. However, they may not meet the facility owner’s/engineering designer’s primary requirements for the insulation. For example, they may be open cell, fibrous, or granular, which—without an appropriate vapor barrier and accessories—offer no resistance to water vapor penetration, making them less desirable in cold applications or cold/hot cycling applications. There are also coatings, gels, films, etc. that can be applied to the piping that are corrosion inhibitors and/or moisture barriers.

In below-ambient operating systems, or applications where moisture is a constant issue (e.g., offshore oil rigs or very high-humidity areas such as the U.S. Gulf Coast), the insulation system should be designed to minimize or prevent moisture penetration. If the vapor retarding aspects of the insulation system are damaged and moisture does penetrate the insulation system, the system will also trap this moisture and reduce its evaporation rate, thus allowing the metal pipe to remain wet much longer than if there was no insulation present. This only highlights the need for a strong design and good installation of the insulation system with no open seams and a continuous high-quality vapor retarding system.

As my expertise is in elastomeric insulation, I’d like to share 2 examples where corrosion became an issue involving elastomeric insulation. One stress crack corrosion example involving elastomeric insulation occurred around 25 years ago. It involved elastomeric insulation on copper refrigeration piping lines in supermarkets. The application exhibited ideal conditions for stress crack corrosion (which is usually seen in austenitic stainless steel but can also occur on copper): cyclic (cold/hot) operating conditions that went well above 200°F (hot gas defrost system), corrodents were present in the form of floor-cleaning products, there was high hoop stress in some of the copper piping manufacturer’s products, and high pH in some of the elastomeric insulation manufacturer’s product. Investigation into the cause of the problem resulted in many potential causes. The industry learned from this incident and improvements were made not only to the insulation products, but also to the copper pipe manufacturing (drawing) process to reduce hoop stress as well as improvements to the design and installation of the insulation system in supermarkets.

A more recent corrosion problem regarding an elastomeric insulation system involved an aluminum piping HVAC system (which is not common) that included both indoor and outdoor sections. Once again, the cause of the problem was not focused on one issue, but several factors, starting with poor installation (open seams), environmental conditions (coastal area), and the type of solder used in the fittings. Moisture and corrosive ions (accelerators) were introduced into the insulation system through the open seams (rain water and condensation) and accumulated in areas most susceptible to corrosion (fittings, elbows, etc.). These 2 indoor applications were both “perfect storms” for corrosion to occur, but could have been prevented with better design, material selection, and installation techniques.

The most common test methods referenced for evaluating the influence of thermal insulations on corrosion are:

  • ASTM C692: Standard Test Method for Evaluating the Influence of Thermal Insulations on External Stress Corrosion Cracking Tendency of Austenitic Stainless Steel
  • ASTM C1617: Standard Practice for Quantitative Accelerated Laboratory Evaluation of Extraction Solutions Containing Ions Leached from Thermal Insulation on Aqueous Corrosion of Metals
  • ASTM C665: Standard Specification for Mineral-Fiber Blanket Thermal Insulation for Light Frame Construction and Manufactured Housing (imbedded test method)

These test methods are designed to test systems operating at or above 120°F. There are no test methods designed for systems operating at low temperatures or cyclic hot to cold temperatures. ASTM C1617 is currently being reviewed to expand its scope to include metals other than just carbon steel, such as copper and aluminum. Some of the tests are comparative-type tests where a pass means that the test run with the material in question did not exhibit more corrosion than the control test run without insulation. ASTM C1617 is a quantitative test (mass loss).

ASTM C871 Test Method for Chemical Analysis of Thermal Insulation Materials for Leachable Chloride, Fluoride, Silicate, and Sodium Ions is a measure of the concentrations of corrosive ions and inhibitor ions found in the insulation. ASTM C795 (Standard Specification for Thermal Insulation for Use in Contact with Austenitic Stainless Steel) establishes requirements for insulation materials when tested according to ASTM C871 as well as ASTM C692. Insulation manufacturers should be contacted regarding the acceptability of their products for use on austenitic stainless-steel applications—especially applications for operating temperatures above 140°F. Some insulation materials may contain corrosive ions from the fillers, plasticizers, and flame retardants used in their manufacturing process and may not contain inhibitors in sufficient amounts to buffer them and meet the requirements of ASTM C795. The presence or absence of corrosive or inhibiting ions alone is not the determining factor in whether an insulation is likely to contribute to CUI. Instead, the entire scenario must be considered— including water resistance of the insulation system, amount of water and corrosive ions in the environment, and the operating temperature(s) of the metal pipe, tank, or duct. ASTM C534 Grade 3 materials contain no PVC and less halogens than Grades 1 or 2, but still may contain corrosive halogens. Test results for specific products should be obtained from the insulation manufacturer, as well as specific installation instructions. This is advisable for all Grades of materials listed in ASTM C534. If a test method or standard—such as ASTM C795—is not noted on an insulation product’s data sheet, it most likely means it does not conform to the standard or it not applicable to the typical applications for the product.

A quick review of the ASTM Standard Specifications for 15 mechanical insulation types indicates that 9 (typically fibrous, granular, and cellular glass types) reference corrosion test methods, and 7 include a requirement that an insulation material pass a specific corrosion test.

If we look beyond the insulation material, where else do corrosion accelerators come from? If corrosive ions are present in the ambient environment, in even small amounts, in a cyclic (wet/dry or hot/cold) application, after several moisture exposure/evaporation cycles, the corrodents will accumulate. Corrosion can occur where dirt, oils, grease, fluxes, and other impurities are introduced during the installation process. Indoor applications are often exposed to cleaning products. Rooftop applications are potentially exposed to rain water passing through industrial air pollution. Outdoor applications near the coast are subject to ocean mist. Some outdoor applications are subjected to a cooling tower spray/mist, which can contain various water treatment chemicals that can exacerbate CUI. Buried applications are exposed to ground water contaminants. As mentioned above, key entry points for moisture (with contaminants) would be any point that is hard to seal (e.g., fittings, flanges, hangers, valves, etc.) The use of factory-fabricated fittings and insulated hangers helps to ensure sealed joints. Use of high quality, low permeance, and continuous vapor retarders to prevent moisture from penetrating the insulation system limits moisture intrusion even in extreme conditions.

There are numerous recommended methods to prevent, or at least minimize, moisture ingress of the insulation system:

  • Start with a good insulation system design and select the right materials for the application.
  • Use factory-made insulation and jacketing fittings, pre-insulated hangers, tight seams and butt joints, and a vapor retarder that is fully adhered to the insulation. This prevents moisture from flowing and accumulating in low areas of the system. Also, be sure all vapor retarders are fully sealed and resist mechanical abuse, or are covered by a protective jacket, assuring the protective jacket is installed with joints sealed or oriented to naturally shed water.
  • Use water/moisture vapor stops/dams to isolate moisture issues if they arise. A good installation with no breaks in the insulation system will allow the materials to do the job for which they were selected.
  • In potentially severe corrosive situations, the National Association of Corrosion Engineers (NACE) recommends the use of corrosion inhibitors: coatings, gels, etc. on the piping under the insulation to add another level of protection (according to the Standard Recommended Practice: The Control of Corrosion Under Thermal Insulation and Fireproofing Materials—A Systems Approach). NACE is concerned that an insulation system, if poorly designed, installed, or damaged, will trap moisture and the piping system will be in contact with moisture longer than if there were no insulation at all. Because of this, for applications where personnel protection is the only concern, NACE often recommends, where it is possible, the use of a wire cage as a barrier to physical contact rather than insulating the system. This reinforces the point that it is the insulation system and not just the insulation that can prevent CUI. A proper design that is installed and maintained correctly is mandatory.
  • Periodic inspection and maintenance of the insulation system is always necessary and should be planned for before the system is installed. Timely repair of any suspected breakdowns in the insulation system before they result in a complete failure completes the steps required to prevent CUI.

The ASHRAE Handbook notes, “Corrosion of metal pipes, vessels, and equipment under insulation, though not typically caused by the insulation, is still a significant issue that must be considered during the design of any mechanical insulation system.” Understanding the issue of corrosion, its potential causes, and designing to prevent them from occurring will go a long way to eliminating CUI.

 

 

Copyright Statement

This article was published in the November 2018 issue of Insulation Outlook magazine. Copyright © 2018 National Insulation Association. All rights reserved. The contents of this website and Insulation Outlook magazine may not be reproduced in any means, in whole or in part, without the prior written permission of the publisher and NIA. Any unauthorized duplication is strictly prohibited and would violate NIA’s copyright and may violate other copyright agreements that NIA has with authors and partners. Contact publisher@insulation.org to reprint or reproduce this content.

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Industrial Insulation Specifications: What Needs to Happen, Why It Matters, and Who Should Care

Industrial insulation specifications are the result of copious notes, research, and specifications that are refined over time and compiled into documents. These documents are then shared with the prominent stakeholders in industrial facility construction and maintenance projects. They are a necessary component of most, if not all, industrial process and equipment designs. Even so, it is not uncommon to encounter specifications that are 10 to 15 years old (or older) at large, well-respected engineering firms or industrial facilities. In many situations, these specifications haven’t been dusted off during that time to see if the content is still accurate and up to date. There are a number of reasons why this happens: sometimes no one is assigned the responsibility of maintaining the specifications when there is employee turnover or staffing reductions, or a person who has been the designated “spec expert” retires and no one is given the task of maintaining the specifications.

So, year after year, the specifications remain filed away and fail to be updated because of a popular misconception that the industry hasn’t changed much. After all, we are still using the same insulation that we have been using for decades, right? So why create unnecessary work to update the specifications?

The reason is simple: the industry has changed, and both new and old products are constantly evolving to meet the growing and changing demands of the industry. We often see new products introduced to the market that may be more thermally efficient, can save money, provide safer work environments for employees, are thinner and lighter weight, or can lower the cost of other system components, among other benefits.

When you fail to update your specifications, then you are assuming (perhaps incorrectly) that the current insulation that you use and specify ensures that your processes are running at optimum efficiency, that your employees are operating in the safest of conditions, and that you have saved all the money that you can possibly save. In view of the potential risks and opportunities lost by not updating your specifications, the better approach is to recognize that change is inevitable and constant. As such, you should prioritize the continuous update of your specifications.

The data that goes into insulation specifications is a form of communication between the manufacturers, engineers, specifiers, estimators, distributors, facility owners, contractors, and end users. Each of these function groups needs to know the most up-to-date and accurate data in order to make informed decisions in their areas of responsibility. In order for employees to be effective, they must be keenly aware of the latest trends and products, know the options they have to minimize both short-term and long-term costs, and have this information readily available to them.

When given an opportunity to write a new specification—or ideally, review and update an existing insulation specification—it’s important to understand the end goal or what the customer/client/engineering firm is looking to accomplish by sponsoring a review of their specifications. Is it simply to add new product information, or is it an exercise in reviewing every aspect of the specification to ensure ultimate accuracy? If given the option to choose, we recommend a complete review of the entire specification to determine ways to improve upon the core document. It should be determined if there is a better or easier format to use, if products or manufacturers that are listed still exist, whether the product formulations, names, and references are the same, whether the manufacturer was purchased and the products are now being produced by a new owner, and more. There are a myriad of changes or updates that can and should be made, and this exercise can take weeks or even months, depending on the complexity and breadth of insulation products being considered. It is this time commitment that can easily derail the best of intentions to get specification manuals updated.

This is where having a third-party resource can benefit an organization that chooses to form a knowledgeable and capable team to engage in a specification update. Ultimately, utilizing the assistance of an outside party may be a better option than trying to use internal personnel, who may get pulled off the project to work on more time-sensitive projects.

Maintaining up-to-date specifications for industrial products is an absolute necessity in order to ensure that facility owners, engineers, and contractors are on the same page regarding the choices to be made across the many insulation options that are available. Choosing the right insulation material for the application being considered can be a daunting task at times, especially when considering thermal properties, compressive strength, corrosion under insulation (CUI), moisture absorption or resistance, surface burning characteristics, etc. By being proactive and updating your industrial insulation specifications, you will have a much more accurate tool to efficiently approach optimized system design. These current specifications will provide the appropriate technical information to allow facility owners, engineers, and contractors to make well-informed decisions regarding which insulation to specify on a job. This will ultimately contribute favorably toward optimizing process efficiencies, providing personnel protection, conserving energy, and reducing the carbon footprint of the facility.

 

 

Copyright Statement

This article was published in the November 2018 issue of Insulation Outlook magazine. Copyright © 2018 National Insulation Association. All rights reserved. The contents of this website and Insulation Outlook magazine may not be reproduced in any means, in whole or in part, without the prior written permission of the publisher and NIA. Any unauthorized duplication is strictly prohibited and would violate NIA’s copyright and may violate other copyright agreements that NIA has with authors and partners. Contact publisher@insulation.org to reprint or reproduce this content.

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Safety Matters: Using Leading Indicators to Improve Safety Performance

In previous Safety Matters columns, we have discussed ways in which a company’s safety performance could be benchmarked, including the frequency and severity of injuries and illnesses and the cost of workers’ compensation claims. These are typically referred to as lagging indicators and consist of the recordable incident rate, DART incident rate, and Experience Modification Rating. They are referred to as lagging because they happen after an accident. Many companies look only at these metrics to measure safety performance.

Imagine if a project manager was only evaluated on projects that lost money or went past schedule. It doesn’t matter how many successful projects he or she managed, only that 1 or 2 of them didn’t meet budget or schedule. That’s how many companies look at safety. It doesn’t matter if a safety committee has met regularly all year, training classes are routinely held, frequent and regular safety inspections are conducted, and the best personal protective equipment (PPE) is provided; we just look at how many accidents are reported. In other words, we don’t count all the positive things we do, just the breakdowns in the system.

Another downside to looking only at lagging indicators is that they can be very misleading. Just because you don’t have any accidents doesn’t necessarily mean you are safe. Consider a warehouse operation where a forklift operator regularly raises a warehouse employee on the forks of a forklift to reach an upper rack. If they work this way for years without anybody being hurt or killed, does this mean they are safe? Of course not; everybody would agree that this is extremely dangerous. But if our only measures of safety performance are incident rates and workers’ comp claims, on paper this would appear to be a safe company (at least until their luck runs out).

Dr. Todd Conklin is a leader in the field of workplace safety and human performance and is credited with saying “safety is not the absence of accidents, safety is the presence of defenses.”

So, to truly improve our safety performance we should measure our defenses, not our accidents. We should focus more on the positive steps we take to prevent injuries and illnesses and focus less on the accidents themselves. When tracked and measured, these defenses, or preventive measures, are referred to as leading indicators.

Training and education is an excellent leading indicator that almost any company can use, and it can easily be measured in several different ways. Measures can include percent of employees trained on a certain topic, hours of training per employee, and evaluation scores. You can even track the percent increase between pre-tests and post-training examinations to measure the effectiveness of the safety training. Most companies will see a direct correlation between the amount and quality of training provided and increased safety and health performance.

Safety inspections are another excellent leading indicator with broad applicability across all workplaces. The total number of inspections can be measured, or the percentage of inspections completed versus the number of inspections assigned. Even better is to measure the number of findings per safety inspection, both positive and negative findings. This shows the inspections aren’t just being pencil whipped. The number of corrective action items identified, and average days to close action items, are also very useful metrics. Some companies use a risk matrix when identifying hazards that factor in the likelihood and severity of a potential incident. This can be used to further breakdown inspection measures, including the number of high risk hazards, moderate risk hazards, etc.

These are 2 great examples of leading indicators almost any company can use and are a good starting point for a company looking to begin tracking leading indicators. Risk assessments, near-miss reporting, disciplinary actions, and the preventive maintenance completion rate are a few more potential leading indicators companies can track and measure. Pick indicators appropriate for your operation that are specific and measurable.

Leading indicators also have far superior predictive value over lagging indicators. They can be used to provide direction for health and safety improvements. This is especially true for companies that may be small and/or have relatively few incidents. It is hard to accurately identify trends from a small number of incidents. Take for example a company with only 2 recordable incidents in a year, one of which involved an employee tripping over a curb. The company may draw the conclusion that 50% of all recordable injuries are caused by employees tripping over curbs. They may then allocate resources to develop a curb safety policy, train all employees on how to safely step up on curbs, and launch an emphasis program to Stamp Out Curb Injuries. While this is a facetious example, it shows how only looking at lagging indicators may not be the best way to set your priorities.

If the same company routinely tracked safety inspection findings and identified a trend of lockout/tag out violations, this is a much better predictor of future risk. The company can use this information to schedule training, add danger signs, or purchase additional lockout equipment. This proactive approach is a much better way to improve employee safety, rather than waiting until somebody gets seriously injured when a piece of equipment accidentally starts up.

Choose which leading indicators make sense for your company, set goals, and then start tracking. They can be used to identify and predict areas of risk so preventive measures can be taken. They can also be used to benchmark performance compared against a baseline. Leading indicators are better for performance evaluations and incentive programs too. Leading indicators are proactive, preventive, and predictive measures of health and safety activities that any company serious about safety should be performing anyway. So why not track and measure them? Remember the old business axiom, “What gets measured, gets done.”

 

 

Copyright Statement

This article was published in the November 2018 issue of Insulation Outlook magazine. Copyright © 2018 National Insulation Association. All rights reserved. The contents of this website and Insulation Outlook magazine may not be reproduced in any means, in whole or in part, without the prior written permission of the publisher and NIA. Any unauthorized duplication is strictly prohibited and would violate NIA’s copyright and may violate other copyright agreements that NIA has with authors and partners. Contact publisher@insulation.org to reprint or reproduce this content.

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Safety Matters: Are You Experienced?

There is some debate about what Jimi Hendrix was asking about when he sang “Are you experienced? Have you ever been experienced?” Chances are he was not talking about workers’ compensation insurance ratings, but who knows? Maybe Jimi knew that experience ratings not only affects your workers’ compensation insurance premiums, it can have a strong impact on your overall business performance too.


Experience rating is a pricing tool used by insurers that more equitably sets workers compensation premiums and provides incentive for employers to control losses. Experience rating is comparable to automobile insurance plans in that drivers with more accidents and violations pay higher premiums than those with safe driving records. The same is true with workers’ compensation insurance; employers with higher than average claims end up paying more in premiums. Those who control their losses can see a reduction in their premiums. Workers’ comp carriers do this by applying an Experience Modification Rating (EMR) to an employer’s manual rating. The manual rating is simply based on payroll and industrial classification (the type of work the insured performs).

All states have minor differences in how they calculate the EMR, but a simplified definition of the formula is a company’s actual workers’ compensation losses divided by their expected losses. Expected losses are based on payroll and the industrial classifications for work the company performs. For example, a roofing contractor will have higher expected losses than an accounting firm. An EMR less than 1.0 means the company had fewer than expected losses, and an EMR above 1.0 indicates greater losses than average. This translates into a credit factor (EMR < 1.0) or a debit factor (EMR > 1.0) when calculating a company’s premium. A company with a manual premium of $100,000 and an EMR of 0.75 would only be charged a modified premium of $75,000.

In addition to being a modification to your workers’ compensation premium (hopefully a credit factor); the EMR has become one of the most common safety performance metrics used for contractor qualification. A high EMR can disqualify contractors and vendors from even being allowed to bid on work for many safety-conscious customers. An EMR of 1.0 or lower is the benchmark many companies use to qualify bidders to work on their site. Safety professionals frequently talk about the hidden costs of accidents. The loss of bid opportunities due to a high EMR is a major hidden cost of accidents.

So, how do you control your EMR? Obviously, the best way is to prevent work-related injuries and illnesses in the first place. Money spent on loss prevention efforts—such as risk assessments, training, and inspections—is money saved in the end. It is also important to understand that all rating plans give greater weight to frequency of accidents than to severity of accidents. For example, a single $50,000 claim will impact your EMR less than ten $5,000 claims. The rating bureaus realize that very large claims are often due to extrinsic factors, and not necessarily due to a lack of prevention efforts. Frequency of claims is more of an indicator of poor loss-prevention efforts.

Another effective way to manage your EMR is to implement a Light Duty Program for employees with work-related injuries or illnesses who cannot perform their full duties. The 2 major components of a worker’s compensation claim are medical bills and wage replacement. By bringing employees back to work in a light duty capacity you can avoid the wage-replacement portion of the claim. Studies have shown that employees who stick to a regular work schedule return to their pre-injury assignment much quicker than those who are off work. Most states also discount the claim value of medical-only claims for the EMR calculation. The most common rating plan used by state rating bureaus (NCCI) applies a 70% discount to medical-only claims. This is a win-win situation. Injured employees receive their full wages and benefits while working a light duty assignment, and employers control the claim value and impact to the EMR.

Another worthwhile effort is to check the accuracy of the worksheets used to calculate your EMR. Several months before your renewal date the rating bureau(s) will produce a worksheet showing your payroll and loss experience. Your broker may be able to help with this. The worksheets can be quite complicated, especially if your company works in multiple states. Claims that have recently settled or claims with subrogation recovery may not be accurate on the worksheet. It’s even possible to find claims that don’t belong to your company (especially true for contractors that work on a lot of wrap up insurance projects). Getting these errors fixed can have a big impact on your EMR.

Control your EMR by focusing on loss prevention efforts, offering light duty to injured or ill workers, and checking your EMR worksheets carefully every year. Trying to lower your EMR after the fact can take some time; it is usually based on 3 years of history. The EMR is a much more complicated subject than this column can explain in detail. But hopefully you have enough knowledge to ask your broker the right questions. And hopefully everybody has Jimi Hendrix playing in their heads right now.

 

Copyright Statement

This article was published in the October 2018 issue of Insulation Outlook magazine. Copyright © 2018 National Insulation Association. All rights reserved. The contents of this website and Insulation Outlook magazine may not be reproduced in any means, in whole or in part, without the prior written permission of the publisher and NIA. Any unauthorized duplication is strictly prohibited and would violate NIA’s copyright and may violate other copyright agreements that NIA has with authors and partners. Contact publisher@insulation.org to reprint or reproduce this content.

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Condensation Control: Why the Proper Insulation Choices Will Keep You Out of the Rain

Where Is this Water Coming From?

All air on earth contains at least a little bit of moisture in the form of water vapor because of the earth’s atmosphere and climate.1 This means that water vapor is always going to be present in the air around your systems and will condense into a liquid with the right conditions.

The amount of moisture in the air can be measured by the relative humidity, or the percentage of water vapor in the air compared to the maximum amount of water vapor that that temperature air could hold. For instance in Las Vegas, Nevada, the most arid of the major cities in the United States, the average relative humidity is 30%, meaning that, on average, only 30% of the maximum amount of water vapor at that temperature is being held in the air. Phoenix, Arizona, is next on the list of arid major cities with a relative humidity of 40% with most major cities averaging around 70%.2

The Dew Point is the temperature at which this water vapor being held in the air condenses into a liquid. The higher the relative humidity, the closer the dew point will be to the temperature of the air; conversely, the lower the relative humidity, the cooler the dew point temperature is. For instance, at 68°F and 70% relative humidity, the dew point is 58°F while at that same temperature but 30% relative humidity, the dew point is a crisp 35°F.3

If a surface is below this dew point temperature, the air around it will cool and the water vapor will condense into a liquid. Thus, maintaining the surfaces of below-ambient systems above the dew point temperature is paramount to controlling the formation of condensation.

Condensation: It’s Raining Indoors

Below-ambient systems, such as chilled water, refrigeration, and cool air duct systems, are highly susceptible to the formation of condensation on their surfaces. With surface temperatures far below the average indoor dew point, these systems can quickly perspire and create an apparent indoor rain.

Take for example the following 40°F chilled water pipe in a hot, humid space. The water vapor molecules in the 80°F air will condense into a liquid as the surface temperature (Ts) of 40°F is far below the dew point of 72°F.

This is obviously not an acceptable condition within a space, but what can be done to prevent this from happening?

Preventing Condensation: Use Insulation!

Keeping the surface temperature above the dew point, 72°F in this case, is of the utmost importance in preventing condensation from occurring. By adding insulation of the proper thickness to the system, not only are you saving energy by preventing heat gains throughout the system, but also raising the surface temperature above the dew point (Figure 3). However, if the insulation is porous, the water vapor can still find its way through the insulation and will condense on the cold surface of the pipe, regardless of the insulation thickness. If using a porous insulation material, a vapor retarder is absolutely necessary to prevent the water vapor from passing through the insulation and condensing.

These principles also hold true for duct systems. As air-conditioning systems not only cool the space but also remove humidity, condensation control is also important with duct systems. The correct insulation thickness, with vapor retarder if necessary, will prevent condensation formation on the duct surfaces, just like the below-ambient piping systems.

Why Is Condensation Forming, Even with Insulation?

Even after a system is insulated, condensation may still form as a result of a miscalculation or poor installation. If the engineer does not take the extreme humidity conditions of the space into account or the system functions outside the normal design parameters, the insulation thickness will not be enough to make up for the increase in water vapor in the air and condensation will form as the surface temperature falls below the Dew Point. The insulation must also be installed correctly; any gap in insulation or any small opening in the vapor retarder will lead to condensation and must be sealed immediately.

In order to control condensation within a below-ambient system, an insulation material with low water vapor permeability must be chosen to prevent water vapor from passing through the material and condensing on the system. The proper thickness must be determined from the worst case conditions in the space and can be confirmed with industry or manufacturers’ calculation tools. With the right thickness and low water vapor permeability, your system will be protected from the effects of condensation.

The Problem with Condensation

Condensation in a mechanical system does not just bring the nuisance of dripping water; it can also lead to devastating effects to the insulation or system itself. Moisture ingress is the absorption of water in a porous material that leads to an increase in thermal conductivity and the deterioration of the insulation system. Corrosion Under Insulation (CUI) can form when water gets trapped between the system and the insulation, heavily corroding the metal underneath. With the presence of water and a food source, mold is apt to follow any condensation that forms in the system.

Moisture Ingress: Soaking Up Water like a Sponge

Porous insulation materials rely on a vapor retarder to protect from water vapor accumulation. Unfortunately, these vapor retarders are not completely impenetrable and often get nicked or torn open through the regular maintenance process or are not completely sealed during installation due to difficult configurations or space constraints. With any gap in the vapor retarder, water vapor will start accumulating between the voids like a sponge soaking up water, with every 1% increase in moisture content translating to a 7.5% loss in thermal value. After all the voids are filled, condensate will start to accumulate on the exterior surface of the insulation and the system itself, forming a thermal bridge with a thermal conductivity of water (4.1 Btu/(hr. °F. ft2/in) at 75°F mean temperature). This thermal bridge causes large heat gains within the below-ambient system as the insulation switches to a conductor of heat and the efficiencies of your system will drop precipitously. This water being held in close proximity of the system can also lead to other issues, affecting the material you were trying to protect in the first place.

Corrosion Under Insulation (CUI)

One issue that can result from moisture ingress is corrosion under insulation (CUI), or the formation of corrosion on the system surface when water is trapped between the surface of the system and the insulation. While CUI can form because of a system failure (leaks) or improper weather protection, it can also occur when condensation finds its way to the surface of the pipe through a break in the vapor barrier. Moisture ingress in porous materials can lead to CUI, as the insulation holds onto the water right next to the system itself, wrapping the metal with a wet covering and providing the means to form corrosion. However, CUI can also form if the water vapor finds a gap in the vapor barrier and proceeds to condense under the insulation. Any system that is subjected to corrosion will not operate as expected as the metal starts degrading and the maintenance cost of replacing the damaged system will be quite high. Left alone long enough, this corrosion may lead to a complete failure of the system, a far more catastrophic failure.

Mold

Mold is various types of fungi that can grow on almost any surface that stays between 32°F and 120°F (optimally between 70°F and 90°F) with no air flow that is damp with moisture.4 If condensation forms within the insulation and the insulation stays damp, it creates the perfect environment for this mold growth to begin, often without any trace on the outside of the insulation. This mold can then propagate throughout the insulation and start to form on the surface, where it can travel throughout the air space and lead to allergies, rashes, asthma attacks, and overall poor air quality within the space.

Conclusion: Do It Right the First Time

With below-ambient systems, condensation formation is always a risk. If the system is not insulated correctly, moisture ingress, CUI, and mold will soon follow the first drop of condensation. Not only will the insulation have to be replaced if the condensation formation is not identified in time, but the system piping, ductwork, or other components themselves—along with any surrounding equipment that the condensation was dripping on—will have to be replaced as well. It is important to make sure the system is insulated with the right thickness of insulation so that the surface temperature is always above the dew point and to use complete vapor barrier to avoid these condensation risks.

Copyright Statement

This article was published in the October 2018 issue of Insulation Outlook magazine. Copyright © 2018 National Insulation Association. All rights reserved. The contents of this website and Insulation Outlook magazine may not be reproduced in any means, in whole or in part, without the prior written permission of the publisher and NIA. Any unauthorized duplication is strictly prohibited and would violate NIA’s copyright and may violate other copyright agreements that NIA has with authors and partners. Contact publisher@insulation.org to reprint or reproduce this content.

References

1. http://articles.chicagotribune.com/2011-12-16/news/ct-wea-1216-asktom-20111216_1_relative-humidity-zero-dew-point
2. https://www.currentresults.com/Weather-Extremes/US/low-humidity-cities.php
3. http://www.dpcalc.org/
4. Michael Pugliese, The Homeowner’s Guide to Mold, Reed Construction Data, Inc ©2006