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NIA’s Updated Website Increases Access to Tools and Resources

The National Insulation Association (NIA) recently unveiled its redesigned website at its Fall Summit 2016 meeting. The updated, streamlined design will make it even easier for users to access NIA’s numerous resources. These tools are helpful for those looking to simply learn more about mechanical insulation, or those who need detailed information on how to properly insulate mechanical systems. When it comes to insulation, www.Insulation.org, is a one-stop shop for users of all knowledge levels.

Training Tools

On the Training & Tools section of our site, there is a link to the Mechanical Insulation Education and Awareness E-Learning series, a 5-module online training seminar that teaches users about the benefits, proper design and installation, and maintenance of mechanical insulation. This online training seminar includes modules and quizzes that give users a thorough 101 training on mechanical insulation basics—it is an excellent supplement to existing training programs, and is very beneficial to those who are seeking to learn more about insulation. Those who complete the course are also eligible for credit from the United States Green Building Council (USGBC) and its sister organization, the Green Building Certification Institute (GBCI), as well as the American Institute of Architects (AIA). NIA also offers professional development hours (PDHs) for the completion of the course.

The Training & Tools section of the site also gives users access to the insulation Simple Calculators. These calculators were created in a joint effort by NIA and the Department of Energy’s Advanced Manufacturing Office to improve the energy efficiency of the industrial and commercial sectors. They are fast, free, and functional tools that help users quickly and easily calculate the energy savings, financial returns, and other information for the design of mechanical systems.

Design and Specification Resources

For the A-to-Z information on the design of properly insulated mechanical systems, the Mechanical Insulation Design Guide (MIDG) in the About Insulation section of NIA’s redesigned website is the best resource.

The MIDG is a thorough and comprehensive tool that can take users step-by-step through the information they need to design a high-functioning, efficient system that will protect personnel and save energy and money.

For users who want to get down to brass tacks, the Techs and Specs section of the website offers extensive detail and professional expertise. Here you will find the Guide to Insulation Product Specifications, which compiles all current ASTM, federal, and military specifications relevant to the insulation industry; the Insulation Science glossary, which contains definitions for even the most technical insulation jargon; the Insulation Materials Specification Chart, which provides users with physical and material properties of various insulation materials as specified in ASTM Materials Specifications; and resources for relevant insulation codes and standards. It is a must-visit section of the site for those who seek to learn more about how insulation can improve their systems.

Ensuring Top Performance

Facility owners or managers wondering if their systems could benefit from the use of insulation should visit the Find a Certified Appraiser page on the Training & Tools section of the website. NIA’s Certified Insulation Energy Appraisers can evaluate systems to see if energy (and money) is being lost due to insufficient insulation.

NIA has a long history of connecting insulation experts and resources with the insulation end users who can benefit from this information. The newly redesigned site makes it easier for site visitors to access our resource and will help NIA continue to provide the most relevant and updated information. Check back often to see the new updates and information on www.Insulation.org!

 

 

Copyright Statement

This article was published in the November 2016 issue of Insulation Outlook magazine. Copyright © 2016 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

Global Demand for Insulation

Global demand for insulation is expected to rise 3.7% per year to 26.0 billion square meters of R-1 value in 2020. Developing countries are expected to account for the majority of insulation demand gains, with rising building construction activity and industrial output driving growth. For example, over half of new global demand generated between 2015 and 2020 will occur in the Asia/Pacific region. China, India, and Indonesia are among that region’s developing countries expected to post solid growth in insulation demand. In high-income countries, a combination of recovery in construction activity and efforts to make existing buildings more energy efficient will boost insulation demand.

World demand for insulation in the industrial, HVAC, and OEM markets is expected to grow 3.2% per annum to 9.2 billion square meters of R-1 value in 2020. Industrial applications for insulation include coverings for machinery, boilers, pipes, and tanks. HVAC uses include coverings and linings for HVAC equipment. Insulation is used in OEM applications such as major household appliances (especially refrigerators, freezers, and ovens), refrigerated transport, motor vehicles, aircraft, shipping, containers, fire doors, solar panels, and coolers. The pace of growth will be slightly slower than the rate in the construction market. The Asia/Pacific region will greatly contribute to demand, as manufacturing activity in many countries expands rapidly. For example, refrigerator and freezer shipments in the region are projected to increase 3% annually through 2020.

China accounted for the largest share of insulation demand in the industrial, HVAC, and OEM markets in 2015, due primarily to its vast appliance production levels. More developed countries in North America and Western Europe, as well as Japan, also contribute to demand for insulation in these markets due to their mature industrial sectors and high per capita incomes that allow for greater use of HVAC units.

Here is an overview of the insulation market in the most relevant countries and regions.

China

Demand for insulation in China totaled 5.9 billion square meters of R-1 value in 2015, representing 60% of regional demand and making it the largest national consumer of insulation materials in the world. The country’s rapidly growing construction and industrial markets contribute to the high levels of insulation demand. However, intensity of insulation use relative to fixed investment spending and population is lower than more developed countries in the region, including Japan and Australia. China’s generally moderate climate, traditional building practices, and relatively low living standards are responsible for this underutilization of insulation materials. However, the Chinese government has imposed updated insulation requirements for buildings in order to reduce energy consumption in the country, implementing design standards for energy efficiency for residential buildings (2001), public buildings (2005), and green buildings (2006).
North America—In 2015, insulation demand in North America totaled 5.0 billion square meters of R-1 value, representing 23% of global consumption. The regional market is dominated by the U.S., which comprised 86% of regional demand in 2015. Per capita usage of insulation in Canada and the U.S. is among the highest in the world, while in Mexico, intensity of insulation use is low by global standards due to the country’s warm climate and less developed economy.

United States

In 2015, demand for insulation in the United States totaled 4.3 billion square meters of R-1 value, representing 86% of North American demand. Intensity of insulation use in the United States relative to GDP, population size, and fixed investment spending exceeds global norms due to the country’s massive construction sector and diverse industrial base. Construction firms use an extensive amount of insulation materials, due in part to building codes concerning insulation usage. Also, homes in the United States are larger, on average, than those in many other countries, and high per capita incomes mean that U.S. households can afford effective insulation materials.

Western Europe

Demand for insulation materials in Western Europe totaled 3.8 billion square meters of R-1 value in 2015, comprising 17% of the world total. The region’s mature construction sector and diverse industrial base generated demand for these products. Also, the colder climates of many countries in the region mean that structures require more insulation. Although prices for insulation in Western Europe are generally among the highest in the world, households can afford it due to the high standard of living.

Japan

Demand for insulation in Japan totaled 960 million square meters of R-1 value in 2015, representing 10% of regional demand. Intensity of insulation use in terms of fixed capital spending and population is well above the regional average but below that of other developed countries in North America and Western Europe. Insulation is used less frequently in building construction in Japan due to its moderate climate and less demanding requirements (compared to other developed countries). However, the country’s diverse industrial sector comprised 44% of insulation demand in 2015.
World Insulation, a new study from The Freedonia Group, a division of MarketResearch.com, offers historical data plus forecasts for 2020 and 2025 for supply and demand, as well as demand by market and product, in 6 regions and 26 countries. The study also examines materials utilized (foamed plastics, fiberglass, mineral wool, other). More information can be accessed directly through their website at www.freedoniagroup.com.

 

 

Copyright Statement

This article was published in the November 2016 issue of Insulation Outlook magazine. Copyright © 2016 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

Trends in Employment: How Firms Can Adjust to Attract and Retain Talented Workers

The building and construction industries are increasingly attractive to graduating students. In 2014, CareerBuilder conducted a survey of high school seniors intending to go to college and found that engineering was the most popular intended major. Like many fields in construction, there is competition for the best engineering talent. One of the nation’s largest engineering staffing providers, Kelly Services, predicts that the United States will need 250,000 more engineers in the next 10 years. Many engineering firms have significant numbers of employees approaching retirement age, making the search for talent even more crucial.

A Generation of Different Values

According to the U.S. Census Bureau, Millennials, or those born from 1977–1998, are now the nation’s largest living generation, surpassing Baby Boomers (born 1946–1964). They are also, according to the Pew Research Center, the largest generation in the American workforce. This generation has been uniquely unified in their approach to work and its impact on their life and family. Previous generations have put career first, but this generation seems to believe that family comes first and that modern technology can be used to put both on more equal footing and accomplish more.

Different communication styles and working preferences have led to some clashes between these newer workers and management, who may be from Generation X (born 1965–1976) or the Boomer generation. The good news is that this generation is not as dissimilar to prior generations as they may seem. All generations are motivated by accomplishments and Millennials move at the speed of light—with proper training and field experience, they can be incredibly efficient. While the younger generations may eschew social interaction and traditional face-to-face meetings, they are savvy and are more likely to accomplish work from any location, at any time. To recruit the next generation of engineers, firms may have to take an internal look at their offerings. With some attention to new trends and communication styles, firms can ensure they attract and retain the best talent.

Why Students Gravitate Toward the Building Industry

Stable Career Options

To learn more about why students continue to gravitate toward positions in engineering and the greater construction industry, Insulation Outlook staff recently sat down with students and newer entrants to the workforce to get the inside scoop on what they look for in their careers. Many Millennials graduated college at the height of the recession, which has led to a heightened focus on choosing a course of study that has solid job prospects. Speaking on job security, Charley Dixon, a Project Engineer who graduated from Virginia Tech with a degree in Building Construction and Real Estate, affirmed, “I think things are great in the industry, there’s always a need for construction and there always will be.”  There is good reason to be optimistic, with overall nonresidential building projected to grow 6.7% in 2017, according to the American Institute of Architects. The Bureau of Labor Statistics also has environmental engineers and environmental engineering technicians as among the top 30 fastest growing jobs by 2018. Most other engineering fields are predicted to have average or slightly above average growth going into 2020, as do construction management jobs.

Since choosing a secure job field is important to Millennials, it makes sense that individual security and pay are also ranked as very important. A majority of surveys show that Millennials rank base pay as the most important factor in selecting and staying in a job, and cite that lack of opportunities to advance and make more money are the major reasons they leave jobs. According to the Bureau of Labor Statistics, the median pay for various branches of engineering and construction management range from $82,220 to $129,990. These median wages far exceed average median salaries for college-educated workers (who have a median weekly salary of $1,137 or $59,124 annually), and firms looking to attract new talent should make use of the excellent earning potential possible in their fields. Recruiting efforts at the college level that focus on above-average earnings can be an excellent way to attract more people into the industry.

Variety and a Selection of Worksites

Nearly all interviewees mentioned the variety of work and the ability to work on the physical job site—as opposed to just being in an office—as positives that helped draw them toward careers in the building industry. For Sasha Azel, who will be graduating from Virginia Tech in the spring of 2017 with a degree in Construction Engineering and Management, the combination of getting to work in an office and outside on the job site is part of what attracted her to engineering. Azel affirmed she is “interested in the hands on, watching it get built versus sitting at a desk all day.” Matthew Harris graduated from Virginia Tech with a degree in Mechanical Engineering, and now works doing HVAC for an architecture and engineering consulting firm. Harris agreed that “one of things I really like about [my job] is it being a mixture of the best work—being in the office working on the design, and then doing field work, walking the site, and helping out with any construction questions. You’re not stuck in the office all the time.” He added that one of the best things employers can do is diversify projects to allow for learning opportunities and to keep employees from feeling bored.

Josh Smith, who graduated from Virginia Tech with a degree in Mechanical Engineering, left his job as a Nuclear Engineer because of a slow pace of work and boredom. His new job as a Project Estimator/Manager for a mechanical insulation contractor in the Mid-Atlantic region offers him variety that has kept him engaged for several years. While initially he did not know much about the job or mechanical insulation, which was not a focus in his academic program, he said he was pleasantly surprised by how involved the process was, noting, “There’s so many styles of insulation and each job is different. Also, the systems are changing and you have variances in specs. You have to work a lot with your team and mechanical contractor and communicate.” For him, working in this field has transformed his perspective. “When I go into a building and I see exposed pipe or inadequate insulation, I’m thinking how I can improve it. The system can’t operate to its fullest potential without the insulation,” he said.

For Smith, and for many Millennials, staying busy and working on a variety of different projects is a key part of what motivates him to stay at his job and perform at a high level. Jonathan Colebrook, a graduate student studying Civil Engineering at Virginia Tech, affirmed, “The types of projects are very important. I enjoy short-term projects that keep you active and also long-term projects that help you grow.” Firms looking to retain their workers should look seriously at diversifying assignments and offering a variety of opportunities.

Office Culture

There is no denying it, for Millennial workers, “Culture is huge,” said Colebrook. Millennials want an office culture that is welcoming, and where open communication between various levels of workers is encouraged. They want to feel involved with the team and be able to make a difference. Azel notes that overarching goals affect company culture, and that was a major factor when she was choosing a place to work, noting, “One of the biggest things that was important to me when looking at companies is the way they describe their company values. For my employer, their value was that everyone loves what they do and loves being a part of the building and construction industry. And that really spoke to me, and I love that I’m helping people with my work.”

Perhaps the most socially conscious and certainly the most diverse generation, Millennials are more likely to stay in a job if they are able to identify its mission as serving a greater good. While many jobs are focused on work that has non-tangible results, careers in the construction and building industries offer a chance to build something physical that will help communities—and firms should capitalize on this if they are looking to attract these workers. Azel continued, “I like this career path because I feel like I’m actively helping those designs come to life and that they’re fulfilling a need that someone has or a need for the community, so I just like that I get to be part of the actual building that’s going to be beneficial to so many people.”

Harris, whose main job responsibility is specifying insulation for HVAC systems, said that he likes knowing “you can make a difference by saving energy.  If you get a system that isn’t insulated properly, it can be catastrophic and really expensive.” Companies that can make the connection between the work being done and the larger effect on the community and the world will have a much easier time retaining their employees. Additionally, Harris noted that opportunities for feedback and more training are also incredibly important for his development, and that companies that offer this are more attractive. He affirmed, “I look for the senior engineer presence because that’s how you learn—from people who have done it.”

Azel added that for those entering the industry from a formal degree program, getting that personal instruction from experienced workers is critical, saying, “Classes help you with basics and managerial, but all the technical stuff comes out in the field. So they have to put a focus on being good mentors and teaching.” Colebrook puts a similar emphasis on the importance of learning. “Mentoring has been a fantastic opportunity at some of my internships and I have learned so much information—sometimes more than I learned from school. They need to be willing to teach, and I like to work with people who have been doing this a long time so I can learn from them,” he said. Firms should look closely at their internal training and look at ways to increase mentoring opportunities—employees will not stay long at a company where growth and learning opportunities are absent. At a time when firms are losing knowledgeable workers to retirement, it is a real benefit that the new generation welcomes learning and wants to soak up all this knowledge.

Work-Life Balance and Flexibility

Perhaps the hardest challenge for managers is the increasing focus on work-life balance and flexible work schedules. According to a study by Bentley University, 77% of Millennials say that flexible work hours would make the workplace more productive for people their age. As technological tools have advanced, it has become easier for employees to work remotely, and many Millennial workers put a premium on this type of workplace flexibility. Whereas time in the office or putting in 40 hours has been the yardstick used to measure productivity, Millennials may hasten the workplace to an era where the focus is more on actual results and accomplishments rather than location and time. Dixon affirmed, “You’re not paying me for the hours I sit in the office, you’re paying me for the work I do.”

For many workers, flexible schedules go hand-in-hand with trust. John Freeman, who graduated from Louisiana State University with a degree in Construction Management and is now a Construction Manager at Petrin Corporation, said he thinks ideal employers will “give people the autotomy they need to get their work done—if they feel like they need to be in the field, the office, or with clients, they need the freedom to get their job done as needed.” Harris and Azel also agreed that work-life balance is important, and research suggests that employers may actually reap benefits from allowing workers to work from home or work less hours. Given their comfort with technological tools, Millennials have responded to the advantages of technology and seek ways to implement it to make their work more efficient and enable them to work remotely. While there has been some criticism of this reliance on electronic communication and technology tools, it has made many companies more effective.

Research suggests that employers may actually benefit from allowing increased flexibility. Stanford Professor Nicholas Bloom did a study on the effects of working remotely and concluded that working away from the office actually increased productivity and employee satisfaction. Firms should take a look at their policies and procedures to see where they can increase flexibility. The Pew Research Center found that 15% of male employees and 21% of female employees would give up some of their pay and even slow the pace of promotion in their careers in exchange for working fewer hours. Opening up to the possibility of alternative work arrangements can be an excellent way to attract and retain the best talent.

Rudy Nigl, a Project Manager/Estimator at L & C Insulation, Inc., commented that one of the benefits of working at his company is that the owner is very cognizant of family life and its obligations, saying, “We’re fortunate in our company because we’re smaller and our owner is very family oriented and understanding of family issues that may arise. When people want to take vacations or need time, they have it to use. Because of this, everyone in our company is satisfied and happy all the time.” Employers that focus on accommodating schedules and appropriate vacation time to spend with family will reap the benefits from happy employees.

Looking Forward

While the newer generation of workers does have some unique qualities, in many ways its members are interested in what employees have always been interested in: good pay and job security, interesting projects, and the chance to learn and grow. Firms can draw specifically on the things Millennials are interested in to best reach out to these workers, and, help keep them once they are hired. It is worthwhile to take a look at your company’s offerings and see if they match up with what these discerning future employees are looking for. When looking to recruit, companies should focus on the benefits their field offers—reliable work and above-average pay—and then take a look internally at what they can do to increase their value as an employer through mentoring, flexible work schedules, and ensuring they have a positive organizational culture. Employers that adapt to the new working culture will have the best chance of attracting and keeping the most skilled workers.

 

 

Copyright Statement

This article was published in the November 2016 issue of Insulation Outlook magazine. Copyright © 2016 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

Debunking Millennial Myths

Millennials (1) are an 80-million strong generation today. In 2015, they surpassed the Baby Boom generation as the nation’s largest living cohort and now make up 34% of the nation’s workforce, according to the Pew Research Center. This number is expected to grow to 50% by 2020.

Many American Millennials graduated from college with staggering amounts of student loan debt and started their careers in one of the greatest recessions of all time. Seen as trendsetters, Millennials are well known for their outspoken qualities and knowledge of everything from technology to fashion to food. As a result, they have puzzled companies and marketers for years. Furthermore, Millennials are often saddled with a reputation for being entitled, disloyal, lazy, or optimistic go-getters, but it turns out that they’re actually not that different from their older work colleagues.

In 2015, FMI surveyed almost 400 construction industry professionals, more than 200 of which were Millennials, in order to measure this young generation’s level of engagement and explore what a Millennial worker is truly looking for in an employer. The following article presents 5 key misconceptions of this young generation and explains what they are looking for in a construction industry employer.

Myths and Truths

The information and opinions swirling around the Millennial generation can be broken down into 2 categories: myths and truths. Based on our industry survey (2) and dozens of conversations with Millennial employees in construction, we have uncovered the following myths surrounding this largely misunderstood workforce:

Myth 1. Millennials are Lazy

Fact: Millennials are eager to be challenged and ready to go beyond what is required to make their companies succeed.
For years, pundits and contemporary publications have criticized Millennials for being lazy. It turns out, however, that this might be one of the greatest misunderstandings about this generation. According to a recent survey published by the HR Policy Foundation, (3)  two-thirds of the companies surveyed said that their Millennial employees were making significant contributions in the workplace due to their inquisitive nature, tech-savviness, and drive for innovation.

Responses from Millennials in the construction industry confirm this position. Almost 70% of participants expressed their willingness to work beyond what is required of them to help the business succeed (Figure 1). Like other generations before them, Millennials want to be challenged with interesting and meaningful work.

As one survey participant put it: “When trying to engage Millennials, it is important to emphasize the appealing aspects of the industry. In construction, projects are always different. Showing Millennials the challenges each project offers gives them a sense of purpose and greater determination. The constantly changing work environment offers a more exciting route compared with the monotony of replicated day-to-day activities.”
Not unlike other generations that enter the workplace, Millennials have new perspectives to share, innovative ideas about getting things done, and interesting ways of tackling problems. They are less willing to accept the “old school” methods of completing work, and they are always searching for new ways to streamline processes and increase efficiencies. This mindset is critical for pushing the industry forward. Failing to nurture the innovative and inquisitive nature of younger workers will create disengagement among employees and result in a less productive workforce over time.

Myth 2. Millennials are Job Hoppers

Fact: Millennials want job security and stability.

Much like their predecessors, Millennials are interested in job security and stability. And despite popular belief, they aren’t poised to switch jobs as soon as another opportunity presents itself. That said, these younger workers come from a “connected” generation that truly values collaboration, teamwork, and social opportunities. Our study also indicates that Millennials value the use of new and innovative technologies to solve client and corporate challenges. Letting young people contribute and participate in such meaningful ways—and showing genuine interest in their careers and personal lives—is key to engaging them long term.

Company cultures focused on employee engagement require a defined and well-communicated company vision. This point is especially important for young people who are kicking off their careers. By explaining the whole picture, company leaders can connect the meaning to their employees. This, in turn, gives workers a clear sense of purpose and an understanding of how their efforts fit within the larger plan. According to our research, when the company’s vision is inspiring and clearly communicated, Millennials are 25% more likely to stay longer with the company compared to those who don’t understand the company’s vision and direction.

Myth 3. Millennials are Altruistic and Don’t Care about Money

Fact: For Millennials, money is very important.

For years, thought leaders have been talking about how Millennials are just out for a “purpose crusade” and how they are more interested in meaning than money. Our research paints a much different picture. When asked what’s most important to them, Millennials rank competitive pay as their highest concern.
Haydn Shaw, a renowned generational expert, confirmed this finding and says, “The vast majority of surveys show that Millennials rank base pay as the most important factor in selecting and staying in a job, just as the other 3 generations do. They want meaningful work and a supportive culture to work in, but they want a well-paying job and career advancement more.” (4)

Using well-defined incentives that motivate their employees to go beyond the call of duty, progressive construction firms are taking charge and improving company performance. Beginning with a well-defined incentive compensation system, companies can effectively develop employees who excel at maximum levels and beyond. With the right combination of clear direction, quality feedback, and tangible rewards, employees become engaged and satisfied with their jobs. This, in turn, helps to create a win-win situation, where employees are inspired by the fact that management truly values their efforts.

Myth 4. Millennials Want Constant Acclaim

Fact: Millennials want regular feedback—not because they are looking for a trophy, but because they are still learning the ropes.

Feedback is a big topic for Millennials in construction. Young construction employees are looking for mentors and coaches to help them learn the business and understand the ins and outs of their daily tasks and routines. (5)

Progressive construction firms have started to create formal coaching and mentoring systems that support younger employees while also providing an important platform for knowledge transfer. By weaving these programs into their company fabric—and making them a part of employee performance reviews—firms can effectively reach the 75% of Millennials who see mentoring as being crucial to their success. Unfortunately, most construction employers are still missing the mark in this area.

According to our latest Talent Development Survey, (6) more than three-quarters of all participants (77%) are counting on annual reviews to increase employee performance and development. Conversely, almost 50% of our Millennial survey participants stated that they wanted feedback on a monthly basis—a key indicator of how this young generation is driving change in performance management and overall communication (Figure 2). This generation is used to speedier reactions and responses; annual reviews are no longer a viable solution. Employers must shift their mindsets and start developing mechanisms for frequent, in-person communication and information exchange across all company levels and age groups.

Myth 5. Millennials are Entitled

Fact: Millennials are ambitious and eager to make an impact in their careers, which sometimes can be misread as entitlement or even arrogance.

This young generation of workers wants to participate and contribute in meaningful ways. They enjoy collaborative employment opportunities that allow them to stretch their creative wings, share new ideas and actively participate in their companies’ successes. Too often, old job descriptions and company policies keep younger workers from contributing at levels that would create real value for their employers. In such cases, executives should think about how to change their work environments, team configurations, and incentives.
Our Millennial research also confirms that if employees feel like they are making progress and advancing in their careers, they will be more likely to remain with their companies for the long term. Of survey respondents indicating that they understood their career paths and opportunities within their firms, 81% of Millennials expected to stay more than 5 years at their company. Conversely, of those respondents not expecting to stay more than 5 years, one-third were unsure of their current roles, responsibilities, and expectations.
The topic of career development is particularly relevant for companies in the construction industry, where many firms lack well-defined job tracks or comprehensive talent development and leadership programs. With young, ambitious Millennials wanting to learn, improve, and advance through an organization, employers must develop better solutions and challenge the old ways of “how things used to be done”—starting with the ways people interact and collaborate with one another.

What Does this Mean for You?

As Millennials become the dominant generation in today’s workforce, companies must be cognizant of the actions they take to engage these employees. Aligning each individual’s development plan with the company’s vision and goals is essential in ensuring improved engagement. Millennials are especially eager to contribute and want to know that they are adding value to the company. Never before have the company’s mission and vision been so important to a workforce.

The business implications, which are structured around 3 organizational levels (strategic, operational, and tactical), can help organizations make sure they have the basis for engaging and aligning their Millennial workforce with the bigger picture
(Figure 3a-c).

1     Individuals born between 1980 and 2000.
2     Millennials in Construction: Learning to Engage a New
Workforce. 2015 FMI Industry Survey.
3     Talent Sustainability Report. The CHRO View From the Front Lines of the War on Talent. HR Policy Foundation. April 24, 2015.
4     Haydn Shaw. Sticking Points: How to Get 4 Generations Working Together in the 12 Places They Come Apart. July 22, 2013.
5     The Big Crew Change: How to Empower Your Next Generation of Field Leaders. Part One. Ethan Cowles. FMI Quarterly, Issue 1. 2016. and The Big Crew Change: Breaking into the Succession Plan. Part Two. Kim Jones and Ed Rowell. FMI Quarterly, Issue 1. 2016.
6     Talent Development in the Construction Industry. 2015 FMI Industry Survey.

 

 

Copyright Statement

This article was published in the November 2016 issue of Insulation Outlook magazine. Copyright © 2016 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

What Lies Beneath?

Using Thermal Imaging to Improve Systems

Facility managers may assume that mechanical insulation on equipment and systems will remain intact and perform indefinitely; however, this is not always the case. Factors like damage, neglect, and aging, can dramatically impact the integrity of mechanical insulation. Periodic inspections can detect these unfavorable conditions and allow you to diagnose potential problems. Taking advantage of available predictive maintenance techniques can have a significant impact on the overall efficiency, as well as the operating budget of your facility.

One such technique is thermal imaging or thermography. Thermal imaging is a non-destructive testing (NDT) technique that can identify problem areas of insulation without removing it. The infrared (IR) camera detects heat (infrared energy) and captures a thermal image (thermogram) that can be used to determine where energy is being lost.

A trained thermal camera technician or thermographer can inspect large sections of the insulation with this simple handheld instrument. Insulation is designed to reduce conduction from the equipment into the atmosphere. The energy that goes through the insulation to the surface may then radiate from this last surface—this is the energy that an IR camera images. Using thermal imaging to detect this escaping energy has many benefits including: reducing energy loss, controlling temperatures, reducing condensation and corrosion, extending equipment life, reducing downtime, and increasing plant safety.

How the IR Camera Works

Understanding how an IR camera detects heat and the science behind it is necessary to accurately capture and interpret thermal images. Human eyes can only see electromagnetic radiation that lies within the visible light spectrum. Since infrared radiation is outside that spectrum, it is invisible. So while we may physically feel heat (infrared energy) radiating from a pipe, we cannot see it. However, when a thermographer captures an infrared image of the pipe, the thermal camera detects this radiant energy being emitted, translating it into colors of the visible light spectrum—colors that we can see.

Infrared cameras have a feature that allows the user to select color palettes depending on the specific application. While a gray palette is great for fine detail and pattern recognition, it is not as good for discerning temperature differences. A rainbow palette displays greater high and low thermal contrast, making it easier to interpret the temperature differences found within the thermal image.

Depending on the choice of palette, the camera assigns colors to radiation intensity variations, providing a heat map and displaying a temperature scale. White and red are the hottest temperatures; yellow is intermediate; violet and blue show cooler temperatures; and black identifies the coldest areas of the thermal image.

Keep in mind, these temperatures can be misleading. A thermal camera detects radiant (heat) energy, not temperature, and there are various factors that affect temperature readings. These factors include accurately adjusting the thermal camera functions and parameters, as well as correcting for conditions related to the material and type of surface being imaged (e.g., emissivity and reflected energy from background.)

Interpreting the Image

Correct interpretation of a thermal image also involves having a clear understanding of the material at the surface, the material beneath the surface, and finally the energy level that is being insulated in the first place. What this all means is that the camera is seeing the heat transferring from the heated or cooled equipment through the insulation material to the outer surface. The energy will always find the quickest—or in some ways the most efficient—means to transfer. When a thermal camera is imaging the energy flow through the insulation material, any pattern discrepancy will be the focus of the interpretation. Inconsistent patterns are flags for further investigation or explanation. See Figure 1 on page 25 for a visual example.

Understanding Settings

While the increased functionality of today’s thermal cameras makes it easier to get high image resolution and more accurate temperature calculations, knowing how to get these results requires some skill. Many mistakes can be avoided by learning how to use basic camera functions and understanding its parameters. Appropriately adjusting settings such as focus, range, distance, thermal tuning, emissivity, etc. plays a critical role in capturing a useful thermal image. While some of the adjustments can be done in the software after downloading the image, it is important to adjust those that must be made before saving the image.

The following settings cannot be adjusted after saving the image:

  • Focus—There are a variety of thermal cameras on the market today. Manual focus cameras have adjustable lenses. These require time and practice to learn the adjustments necessary to capture a clear image. Some cameras have auto focus that automatically adjusts the lens for a sharp image. Fixed focus cameras cannot be adjusted; however, as with any camera, movement can cause clarity problems. Many fixed focus cameras also have lower resolution and/or wide angle lenses that compound problems. Regardless of whether a camera has auto, manual, or fixed focus—it must be in focus to produce accurate temperature measurements.
  • Temperature Ranges—Most cameras allow the user to select a temperature range. The temperature range shows the minimum and maximum temperatures that the thermal camera can measure. This range is typically -20°C to 1500°C. The range determines the limits of accurate measurements. The user must be knowledgeable of the settings and conditions (e.g., emissivity and reflected apparent temperatures) when deciding whether a narrow or broad range setting would capture a more accurate temperature.
  • Distance (Physical) or Spot Size Ratio (SSR)—Thermal cameras can accurately measure temperatures from a distance, but only if the user can determine the correct distance to the object ratio. SSR is a method for determining the best distance of the camera from the target to obtain an accurate temperature reading. If a measurement is a necessary part of the subsequent evaluation, then the size of the pipe and the distance from it becomes an important consideration. The rule is just because it can be imaged, does not mean it can be measured.

The following settings can be changed in the software after the image is saved:

  • Thermal Tuning—This function refers to adjusting the level (thermal brightness) and span (thermal contrast) to optimize or “tune” the thermal image. Having the ability to adjust the contrast and brightness of an image to aid the clarity becomes essential to properly provide a clear pattern and origination point of where the energy is appearing. It can be difficult to know when the image is properly tuned. A general rule to follow is when the object of interest and the pattern of interest is clearly defined without saturation of very hot appearance or very cold, the image should clearly demonstrate the items of interest. See an improperly and properly tuned image in Figures 5 and 6.
  • Emissivity—The user must adjust the camera settings based on the emissivity values of an object. Emissivity is the amount of radiation emitted from an object’s surface—how reflective the surface is. Factors like thickness, coatings, and material types have to be taken into consideration. For example, a highly reflective object has low radiant effectiveness or low emissivity, so a lower emissivity setting should be used. Conversely, a high emissivity setting should be used with a low-reflective object.

Caveats

Using thermal imaging in mechanical insulation inspections is not without limitations. Some limitations relate to camera functionality—such as resolution—and others depend on user skills (e.g., focusing and tuning). However, the most problematic factor in thermal imaging is accurately assessing the surface that radiates low emissivity. Bare metal over wraps and sheathed protection may have a property of low-radiant effectiveness or low emissivity that can result in unpredictable, strange, and inaccurate readings.

Surfaces that do not radiate energy well reflect the environment surrounding that equipment. A simple solution would be to cover those surfaces—as much as is possible—with another material such as a thin cloth or tack paper when using the camera. Painting or coating an area would be a more permanent solution. This will raise the surface emissivity to more effectively radiate efficiency value.

Using a single inspection tool like thermal imaging may have some limitations, but when used in conjunction with other inspection techniques, developing problems can be cross-diagnosed. This approach to predictive maintenance proves to be much more thorough.

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Thermal Imaging Survey

Thermal imaging can turn an inspection into a checklist of system integrity—highlighting suspect areas and resulting in the elimination of problems with the insulation system—or preventing them all together. A thermal imaging survey can be a non-destructive, cost-effective tool to improve facility energy audits and increase energy efficiency. Further, the plant will be drier, quieter, and safer. If your plant chooses to do a systematic insulation review, the following steps are recommended:

  1. Use knowledgeable, trained technicians that understand systems and infrared cameras.
  2. Have a systemic approach for data collection.
  3. Use plant personnel for access and system identification.
  4. Image a complete system as much as possible. Avoid the tendency to do a wander-type survey.
  5. Record image data by plant identification or tagging.
  6. Image equipment from multiple angles to obtain a complete interpretation.
  7. Visual images are just as important as thermal.
  8. Be certain of system temperatures and conditions. An ambient pipe in an ambient environment will not produce enough contrast to image problems.
  9. Be aware of low emissivity or bare metal surfaces. These can confuse real problems and produce false patterns.
  10. Produce a formal report for accuracy in repair dispatch and also for return on investment (ROI) estimates for repairs.

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Thermal imaging lends itself to mechanical insulation inspection. It can provide meaningful data for energy calculations that will improve the efficiencies of insulation systems. With training and practice, your personnel will be able to capture accurate thermal images, interpret them correctly, and use them in predictive maintenance assessments.

Whatever the end-goal or purpose of the inspection—maintenance, safety, commissioning verification, energy efficiency, or production improvement—thermal imaging is a valuable tool for assessing the overall effectiveness of an insulation system.

 

 

Copyright Statement

This article was published in the October 2016 issue of Insulation Outlook magazine. Copyright © 2016 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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Zombie Specifications

How Some Boilerplate Language Resurrects Long Dead Insulation Materials

Is your boilerplate language up to date? When was the last time that you reviewed the insulation materials and system design that you recommend to clients? All too often in mechanical insulation system design specifications, the boilerplate language goes unrevised for long periods of time, even years. Recently, National Insulation Association (NIA) members have reported that they have seen boilerplate language that recommended sewn canvas lagging cloth—a material that has not been used in several decades—and specifications that require the installation of asbestos-containing insulating materials. It is important to ensure you are not copying and pasting old language like this into your brand new project specifications. In a more common scenario, energy codes change and new product technologies are not updated. Are you recommending a system that is not efficient or is already out of date for a brand new “energy-efficient” building? Often the problems that these specifications create are dealt with much further into the project, and you may not even be aware of the changes and adjustments that are being made.

Bad Language Costs Money and Time

Copying and pasting older specifications may make project design easier, but someone will pay for it down the line. Sometimes these erroneous specifications are not noticed until too late, and then cause a delay in the build process. Frequently, it is the insulation contractor who realizes that the specifications are not current or will not work with the job as it is designed; this may happen either during the bidding process or later during the construction phase. The insulation contractor then has to send his or her changes and new recommendations to the mechanical contractor, general contractor, or project manager, who takes it to the field engineer, who may need additional approval. Once everything has been reviewed and approved and that has been conveyed back down the line, the materials still have to be ordered and received before the work can begin. These material purchases and time delays can impact a project or delay the schedule. This easily preventable situation happens far too often, but it can be mitigated by ensuring the
recommendations are done correctly the first time, rather than being corrected after the project has begun.

There Is a Solution

Take a look at your boilerplate language today to make sure you are recommending the best system and materials to meet today’s product advancements and energy regulations and standards. If not, NIA members are always available to review boilerplate language and help you update it. Midwest Insulation Contractors Association (MICA) also suggests that specifiers require insulation contractors to use the insulation system plates found in the National Commercial & Industrial Insulation Standards (NCIIS or MICA Manual) manual to detail the insulation materials and design. These illustrations allow contractors to show the types of insulation and insulation installation accessories to be used during installation and eliminate insulation specification confusion. It can be yet another tool to ensure zombie specifications stay buried and prevent them from wreaking havoc on your project.

Visit www.insulation.org/membership to find a NIA member to help you update your specifications today.

 

 

Copyright Statement

This article was published in the October 2016 issue of Insulation Outlook magazine. Copyright © 2016 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

Preventing Mechanical Insulation Systems Nightmares

Before starting a discussion of the issues associated with mechanical pipe insulation system failures (nightmares), it is important to note that the vast majority of insulation applications function as designed, meaning they provide 1 or more of the following: energy savings, process control, personnel protection, emission reductions, noise reduction, condensation control, and plant operating efficiencies for the life of the application. In addition, in many cases where the insulation system does not meet expected performance criteria, the situation would not merit being classified as a “nightmare.” With that said, it is important to learn from history and modify actions when less than expected performance does occur in order to prevent future issues.

Additionally, it is important to note that this discussion is inclusive of the entire insulation system, not just the insulation material used on the system.  The insulation is only 1 component of the system, and while it is an important component, any component of the system or installation can cause a failure, as will be discussed in this article. The insulation system performance issues that have been brought to my attention over the years can be divided into 2 groups: those that could have been prevented through better design, installation techniques, maintenance, or common sense, and those incredibly rare circumstances, that were not anticipated and could not have reasonably or cost effectively prevented. This article will concentrate on issues that could have been prevented.

Major issues can generally be classified into 3 broad categories:

  • Mechanical damage;
  • Corrosion under insulation (CUI); and
  • Condensation (potentially resulting in mold growth). It should be noted that on cold operating systems in unconditioned spaces, when condensation occurs for a short duration as a result of the environmental conditions exceeding the design during brief extreme conditions (i.e., casual condensation), this should not be considered a failure but rather part of the design. In unconditioned spaces, condensation cannot be prevented all the time.

Mechanical damage and CUI can occur on both hot- and cold-temperature systems.  Issues relating to condensation only occur on below-ambient systems and are usually the failures that receive the most attention because they are extremely noticeable, creating immediate concern and requiring immediate action. Thus, many of the examples given in the article refer to systems operating at below-ambient temperatures.

Design Considerations

An insulation system is designed to operate under a given set of operating and environmental conditions. If the design team does not exercise due diligence to gather the information necessary to develop the correct design conditions for the specific application, there is a good chance that at some time during the operation of the system, it will not perform as desired. Obtaining a local engineer’s or insulation contractor’s insight (prior to the RFQ going out) into the material selection and installation process is invaluable. A design engineer should not overestimate a product’s/material’s performance properties and should stay well within the scope of the insulation material’s performance parameters. This will help create a “fail safe” system where the failure of 1 aspect of the system will not jeopardize the entire system. An example would be to specify a sealed low permeability (.02 perm or less) vapor barrier system and a sealed low permeability closed cell foam insulation on a cold system for added insurance against moisture intrusion, rather than depending only on the vapor barrier system or the closed cell foam insulation. “Value engineering” a system—a phrase often associated with cost cutting—may sometimes result in taking value out of the system rather than putting value into it. All too often, value engineering results in saving pennies up front and costing dollars later down the road.

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A system should be designed for the worst conditions that might be expected to occur, and contingencies should be in place for when extreme conditions occur. Typical examples of this type of situation would be: convention centers, warehouses, and back room storage areas—they all may be conditioned spaces part of the time, under normal conditions, but when the loading dock doors are open for long periods of time, some of the space becomes unconditioned, particularly if the area has high ceilings and the cold pipes are located in the elevated areas where hot, moisture laden air or high humidity would collect. If the designer does not want to account for these times in his design conditions, he should consider a contingency plan such as drip pans under the piping or fans that increase the air flow in the area to reduce the chance of condensation when the temperature or humidity goes up, such as in the aforementioned scenario. Preparing for a situation in which the HVAC system cannot maintain the area within the design conditions can eliminate a problem situation.

While some systems operate continuously, many are shut down at certain times of the year for changeovers or maintenance. Some buildings are designed to have the HVAC system shut off during the evening hours or on weekends to conserve energy (i.e., idle building syndrome). This type of condition can create unexpected issues if not designed for, especially in high-humidity geographical areas such as Houston, Texas.

Consider the following example of a shutdown situation on a hot operating system and the issues it could create. Picture an outdoor high-temperature system that operates at 300°F, so the designer does not expect there to be any moisture/corrosion issues due to the high operating temperatures. Then, during the summer, the system is shut down for repair. During this shut down period, moisture has a chance to ingress into the insulation, creating a potential long-term corrosion issue if the insulation is not protected 100% from moisture ingress. A similar example would be on an indoor system that is not operating, the insulation system may cool down enough during the evening that during a hot humid day, condensation can occur on the surface of the insulation system. If the system was jacketed with a stapled all service jacket (ASJ), moisture will penetrate the system through the holes that the staples create, creating a potential CUI situation.

Another example of an unexpected condition causing issues is an underground parking garage in a coastal area that periodically floods during the rainy season, creating unusually high humidity for extended periods of time. High humidity may have been anticipated, but not to the extent and prolonged time period this situation creates, thus causing the insulated piping to be exposed to out-of-design conditions for extended periods of time, creating a potential for condensation and mold growth on the insulation and corrosion of the exposed piping—there is also risk of CUI developing under the insulation if the system is not designed correctly or if a critical component of the system such as the vapor stops or vapor barrier fails. A contingency plan for increased drains, pumps, and high velocity fans for increased air movement during this rainy period would prevent this situation from occurring.

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In commercial, industrial, and even multifamily residential buildings, it is possible for “non-conditioned” spaces to occur that are sometimes overlooked. Buildings under construction that have not been closed in (doors, windows, or even roofs not yet in place) are non-conditioned spaces and subject to moisture-related issues if a chilled water system is turned on prior to the building being enclosed. In these cases, hot and humid outdoor conditions can become the indoor conditions, resulting in excessive condensation formation on the chilled water piping. For this reason, insulation should not be installed until the building is fully enclosed. Even if the chilled water system is not on, rain can often get into the building, soaking any insulation if it is not enclosed.  Another example is a mechanical room with no air movement where operating equipment can add significant heat to the room and exceed the design conditions.

If a robust insulation system is required (such as a roof top application) and there is the opportunity for mechanical damage, it is important to specify a robust jacketing system. Outdoor applications susceptible to wide swings in environmental conditions (temperature/wind) or indoor applications where the operating system temperature cycles from hot to cold place greater demand on the compatibility of the insulation and the jacketing system. The jacket has to allow for any differential expansion and contraction of the insulation, often requiring mechanical fasteners.

If the insulation is being installed outdoors in an area where there is a high concentration of chemical plants or close to a salt body of water (e.g., Houston and the nearby gulf coast) the jacketing system must withstand the potential of air or water that may have a high concentration of corrosive chemicals not found in other areas. Again, the knowledge of an experienced local contractor can be very valuable in this circumstance. When determining the insulation thickness required for an operating system, the engineer will use the design conditions (operating and environmental conditions) in conjunction with the thermal conductivity of the insulation. However, a common mistake is made when jacketing is involved, in that the designer may overlook the effect that the emittance (ability of a material to absorb or reflect heat) of the jacket being specified may have on the thickness of the insulation required to prevent condensation, particularly if the emittance of the jacket and the insulation vary, which is often the case. If this difference is not considered, it could likely create an unexpected condensation issue.

IO160901_03

When installing any jacketing, the overlap seam should be positioned down to act as a water shed. On a cold operating system, there can be no breaks or holes in the vapor barrier system—jacketing installed using staples or ASJ paper clad should not be used as it creates a wicking seam when casual condensation occurs on the surface of the jacket during those times when the design conditions for temperature or humidity are exceeded. These type of oversights in specifying materials or installation techniques can turn what would have been a minor issue into a major problem. Also, maintenance that involves cutting into the system or destructive testing will compromise and ruin the system it is checking.

An insulation system design is only as good as its weakest link. If the designer accounts for 95% of the stretch-out plan but leaves the last 5% open to interpretation, he or she is probably going to have problems, particularly if it is a below-ambient system where condensation is a key concern. A design for a cold operating system will always call out the areas to be insulated, type of insulation, and thickness of insulation, but if it does not address the longitudinal seams, butt joints, pipe supports, termination points, and fittings, it is not addressing the most common areas of failure in an insulation system. On a cold operating system, the designer would want to ensure that these areas meet the same requirements for thermal conductivity, water vapor transmission, etc. as the rest of the system. Otherwise, this becomes the weakest link and will be a potential failure point in the system. On cold operating systems, taped seams/joints are not acceptable. Adhesive or glued seams are more secure and generally offer better water vapor permeability properties and better longevity. When insulation absorbs and retains water from condensation, its thermal conductivity increases, leading to greater surface condensation and further problems associated with that phenomenon. Using materials or practices that minimize the risk of the insulation becoming wet will assist in maintaining the performance of the system. Chapter 23, Insulation for Mechanical Systems, in the ASHRAE Handbook—Fundamentals is a good design guide reference.

Best Practice Installations

The installation of the system is as important, if not more important, than the specification of the individual pipe insulation and accessory materials. Be familiar with the manufacturer’s installation instructions and never deviate from them unless the engineer or manufacturer is consulted first.  If the application is unique or there are unique installation conditions, consult the engineer or manufacturer before going forward. Open seams, butt joints, or poorly fabricated fittings are the primary causes of cold system failures in the field. Using a contractor who is experienced in using the materials specified is very important. Each insulation type has its own set of “best installation practices” that are learned over time. Just because someone has years of experience in installing insulation, this does not automatically mean that he or she has experience with the specific type of insulation being used or for the specific type of system being insulated. Good timing and cooperation between the building trades is important to keep the insulation from being damaged after it has been installed. When sheet rock is being installed or other stages of the building process are completed, the indoor building environment (humidity) can be affected and must be accounted for. Storage of the insulation in a clean, dry area is mandatory so it does not get damaged or wet prior to being installed.

Minimizing seams or joints is always a good way to minimize potential failure points. On cold operating systems, using pre-fabricated fittings that are produced in controlled conditions help to ensure tight seams—as opposed to using fittings that are fabricated in the field under potentially challenging conditions.

Real nightmares can occur when a poor design or poor workmanship is covered up or enclosed. In this situation, a failure may go undetected until the situation is catastrophic, taking a potential minor issue to major status. Any part of the insulation system—particularly any below-ambient piping that is going to be enclosed—should be thoroughly inspected prior to it being hidden. This is also relevant to any insulation that is going to be jacketed.

ASTM has published several Installation Guides for various insulation materials, including ASTM C1696 Standard Guide for Industrial Insulation and ASTM C1710  Standard Guide for Installation of Flexible Closed Cell Preformed Insulation in Tube and Sheet Form. The National Insulation Association (NIA) has several videos on the installation of various types of insulation systems, and the February 2013 Insulation Outlook article, “Insulation Installation Checklist,” can also helpful. NIAMA also offers a Guide to Insulating Chilled Water Piping Systems with Mineral Fiber Insulation.

Best Practice Maintenance

All mechanical piping insulation systems require periodic inspection and possible repair. When problems are found, such as water condensation or CUI, they should be addressed immediately; these are issues that will only worsen if ignored. Failures on cold operating systems compound themselves the longer the failure point goes unchecked. Wet insulation has a higher (worse) K-value, resulting in higher heat flow that creates a situation for condensation to form more easily, allowing for the insulation to get wetter. Moisture forms around the inner diameter of the pipe and will travel/migrate to the lowest point in the system (often in fitting areas) creating potential for mold and corrosion depending on what type of piping is used. Repair often requires that the facility, or at least the operating system, be shut down. Since the repairs are usually not anticipated, they are usually not budgeted, causing delays in the repair. If the building manager is looking for a system that requires minimal maintenance, this should be considered in the design process, and a more robust system should be specified (i.e., insulation and a vapor barrier jacketing system).

One of the biggest maintenance issues results not from the failure of the insulation system, but when insulation is removed for various reasons, such as cutting into a line or getting to a valve, and it is not replaced, leaving uninsulated exposed piping that is at risk for damage. If you want to prevent your system from turning into a “nightmare,” it is important to remember that (1) good design means good performance; (2) design should follow best practice installation techniques; and (3) plan for periodic maintenance and follow up.

To design a high-performing insulation system, you need to have as much information on the actual application and the local environmental conditions as possible. One specification will not fit every application. Accounting for local environmental conditions is critical. Think of the worst case operating conditions and design for them. Be cautious of “value engineering” and last minute changes at the job site. It is vital to remember that insulation materials do not fail per se, but that entire systems fail. All aspects of the system are important. Failure in any component of the system will cause the system to perform at less than desired levels, but more importantly, it has the potential for a lost customer or even worse, a lawsuit, which is a real nightmare. If a good design is based on the best information available, along with the best practices, installation techniques and maintenance programs, the insulation system will perform as expected and “nightmares” can be avoided.

 

 

Copyright Statement

This article was published in the October 2016 issue of Insulation Outlook magazine. Copyright © 2016 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

How Customer Analytics Can Help Your Business

In today’s business environment, everything is about analytics; but, companies may not be capitalizing on this valuable asset. The first step is to find a customer relationship management (CRM) tool that allows your business to capture and utilize this data. CRM systems are increasingly useful tools that can help businesses maintain and manage customer accounts, keep track of new sales leads, run marketing campaigns and measure their success, and ensure that all relevant information is generated into reports that can help the entire team—from marketing to sales—capitalize on their success and continue to grow. One such option is Salesforce, a popular CRM sales application, which saves time by allowing businesses to track all their customer interaction in one place and access it from anywhere. It also automatically routes and prioritizes important events. This makes it easy to weigh information and make quick decisions on the most up-to-date information.

Many customers in the insulation industry—including distributors, manufacturers, and contractors—already use a CRM system. Salesforce is an open-platform software, meaning that it can work with a company’s existing software—including any enterprise resource planning (ERP) software, estimating or quoting software, or even email marketing platforms such as Constant Contact or MailChimp. Salesforce can be customized to individual customer needs, and any process can be replicated and automated to save time and ensure everyone is on the same page. Depending on customer preference, Salesforce can either replace or be used to work with existing software.

One of the issues companies currently face is the disconnect between various departments—sales may not be talking to marketing, and the managing staff may not be fully up-to-date on what is occurring in either department. Salesforce puts all relevant information in one place—and the use of cloud technology means it can be accessed anywhere—from branch to branch or when travelling out of the office.

Salesforce says it increases productivity and sales revenue and pays for itself. This is accomplished by freeing up administrative burdens by generating reports related to delivery status, pricing, and other sales information. This accessible data helps businesses communicate and collaborate more effectively on deals to increase the chance of success. It can also help manage marketing campaigns and measure their effectiveness by allowing businesses to capture customer data—from reading an email through to new sales. Historically, using separate systems may have meant that teams were losing out on useful data from product and customer analytics, and thus on sales opportunities. Salesforce also offers users access to data.com, which houses an online business directory of companies and business professionals and has more than a million subscribers. This large database allows members to share information and increase their contacts and potential sales leads. CRM applications and resources help your team focus on sales and customer support that can help streamline sales, save time, and generate information and analytics to increase business.

NIA’s Distributors/Fabricators Committee is hosting a speaker from Salesforce at the National Insulation Association’s (NIA’s) Fall Summit 2016 meeting, which is being held in Arlington, Virginia, November 2–3, 2016. To learn more, register for this annual NIA members-only meeting at www.insulation.org/fallsummit/2016.

 

 

Copyright Statement

This article was published in the September 2016 issue of Insulation Outlook magazine. Copyright © 2016 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

Amazon Expands E-Commerce Opportunities

Amazon’s E-Commerce Options Offer Opportunities for the Construction Realm

Amazon is an e-commerce giant. It has dominated for a decade and is making inroads into the construction market. Is Amazon Business an asset for your company or a competitor? What will it become?

After tremendous success in the consumer market, Amazon has entered into several business-to-business (B2B) areas relating to the construction and insulation industries—and the expanse of their activities might surprise you. On the retail front, it currently offers products in the categories of “Safety Equipment & Supplies, Emergency Response Equipment, Lockout & Tagout Products, PPE: Personal Protective Equipment, and Safety Signs and Signals” and are encouraging companies to become Amazon business partners and sell these and other construction-related materials.

Amazon also offers a Seller Program open to any company interested in selling products on its site, and has a Vendor Program for manufacturers and distributors. Additionally, they have expanded to allow insulation contractors, general contractors, and HVAC specialists to list and sell their company’s services to their expansive
business-to-consumer (B2C) clientele, which will surely grow into the commercial market and be paired with their growing B2B presence. For people not selling or buying on Amazon, they offer cloud services, e-commerce payment options, and even an advertiser program. Amazon may become a competitor for some construction and insulation companies, while other companies may find ways to utilize their services or build their own mechanisms for e-commerce growth.

Amazon has a number of business offerings that may help businesses that wish to develop their e-commerce options. Its offerings include:

  • Amazon Business, the merchandise portal for B2B purchases with corporate accounts and lower “business pricing.”
  • A Business Seller Program that allows all companies to sell their products on Amazon. You control your product’s pricing and have access to Amazon’s inventory, fulfilment, and advertising programs.
  • A Business Vendor Program for manufacturers or distributors to extend their reach by selling to Amazon, which will sell to their business accounts and others.
  • Amazon Home Services, which allows for the purchases of services. Insulation contractors, general contractors, and HVAC specialists can list services by their price or be contacted for estimates.
  • Amazon Payments, which allows U.S.-based web merchants to accept Amazon account
    information and use Amazon for payment processing. Amazon Login and Pay buttons are placed on your existing website and eliminate customers having to fill out forms and provides Amazon’s secure payment portal. Amazon guarantees you will experience sales growth by using them on your website.
  • Amazon Web Services, which are cloud computing services available for any company or website. Far more companies are using it than Microsoft’s Azure or Google’s cloud service.
  • Amazon Affiliate: Become one and Amazon will pay you to post relevant Amazon advertisements on your website. Amazon also offers a different program giving sellers the ability to advertiser their products on Amazon.

To encourage B2B sales growth, Amazon offers Amazon Business, where companies can purchase goods on Amazon for reduced “business-only” pricing. This program offers a number of features that may be attractive to small businesses: they can apply for an Amazon line of credit, buy via purchase order (PO) system, sync up purchases with their existing enterprise resource planning (ERP) system, and receive the shipment in 2 days.  This is a growing area for Amazon, and they affirm that they already have almost half a million corporate business accounts in addition to their 285 million consumer accounts. B2B company accounts can receive the following benefits:

  • Accounts are free for businesses of all types and sizes;
  • Special, discounted business-only pricing, quantity discounts, and price comparisons;
  • Access to Amazon’s fulfillment services with free 2-day shipping on orders of $49 or more, and Amazon Prime compatibility;
  • Multi-user accounts with order approval workflow so companies can allow employees access but still retain purchase manager approval;
  • Download purchasing history analytics to analyze business expenditures and purchasing habits on Amazon Business;
  • Multiple payment options: corporate purchasing cards; Amazon line of credit; tax-exempt purchasing for qualifying organizations; and
  • Purchasing-system integration with many of the major ERP systems.

To expand the type and amount of merchandise offered on Amazon.com, they encourage companies to sell products on Amazon and become part of their Seller Program or Seller Central.  For these sales partners, Amazon shares “a full suite of tools to enable B2B e-commerce, all sizes of businesses, from SBA organizations to large enterprises, will find new ways to engage professional customers in supply chain relationships.” Companies that utilize Amazon’s e-commerce structure will benefit from over 95 million monthly visitors. Some of its technical and logistical benefits include its secure platform, search engine optimization (SEO), its API-level inventory and order management e-commerce structure, and its advertising program, which enables companies to pay to display their ads to customers who are looking for similar products.

Using Amazon as its e-commerce portal means a company will have a wider audience and probably spend less time managing its site or worrying about security concerns than it would if it had built their own e-commerce portal.  In addition to the sales benefits, Amazon offers fulfillment services that utilize Amazon’s storage, distribution, and fulfillment network for a fee. It will even fulfill your private, outside sales in addition to the sales on Amazon.com. You can have your customers sign up for Amazon Business accounts so that they receive those benefits—including lines of credit so you do not have to extend the credit. In this arrangement, they are paying Amazon through their payments system, which can reduce your aging and past due accounts.

A step beyond the Seller Program is the one targeting manufacturers and distributors. Amazon’s Business Vendor Program or Vendor Express allows manufacturers and distributors to sell their products directly to Amazon, which then becomes a full-time distributor of their product. Vendor Program sells products in the U.S., Canada, and Mexico and offers purchase analytics of the sales of products.

Amazon is looking to capitalize on, and expand their offerings in all areas of business, and is taking a multipronged approach to address the needs of its current and future customers and business partners. For companies not selling or purchasing products on Amazon, Amazon still has products to offer. For companies that are interested in cloud services assistance, Amazon offers cloud computing options through its Amazon Web Services. If your company has an e-commerce website, you can utilize Amazon e-commerce payment options that they claim “guarantee growth” of sales and provide Amazon’s security for the company’s own website. Companies can sign up for these services individually or choose to become an Amazon partner and sell on Amazon in addition to their other more traditional sales.

The Drawbacks of Amazon Options

There are potential downsides to buying or selling items on Amazon Business. For companies looking to sell items, they may find they do not have as much control over their branding and that their brand recognition may suffer since customers are buying from Amazon, rather than directly from their business. Similarly, the standardization of the Amazon shopping experience limits the chance of a customer becoming loyal to a business’s brand or being particularly impressed by their customer service. Moreover, there is a cost associated with the use of Amazon Seller, Vendor, or fulfillment Programs. Amazon does take a portion of sales and also charges fees for storage, fulfillment, analytics, and other services.

Easy interfaces and quick shipping cannot replace the trust and peace of mind that comes with knowing that your supplier is an expert and has knowledge of your business. While online stores offer convenience and time savings, traditional supply chain sales and customer service allow construction and insulation customers to get to know their sales representative’s expertise, actually see and feel the products, and become more familiar with products and brands—which for the building industry can be an important part of the purchasing process. Becoming the go-to expert for your customers means you become one of the first people they want to reach out to when they need something. As noted in a recent supplychainbrain.com piece, “Distributors can and should compete on service. Amazon lacks the expertise about the products it sells—something that has been the cornerstone of service in the parts business. Put your extensive product knowledge to work for you, as it’s a key differentiator. Give customers a way to interact with your product experts . . . people who can offer advice on which product is best for the customer’s specific application and share technical information about how to use the product is paramount.”

The ability for a customer to speak with experts who can offer guidance can be limited with online sales. Amazon does offer companies the option of having a “Live Expert” feature, which allows customers to call or email about a product, but that is a far different experience than the in-person relationship sales representatives build with their customers. In the insulation industry, manufacturing and distributing companies have traditionally built relationships with customers over many years, which instills confidence in the product and builds loyalty. That partnership can last decades. Many in the insulation business describe the industry as a family and customers know that they can call anytime for technical expertise. While e-commerce may offer convenience, it cannot yet match the knowledge and resources available from industry experts or answer specific building code and specification questions that often arise.

E-Commerce Growth

As younger, technology-focused workers come into purchasing and decision-making roles, will it become more important for construction and insulation companies to have a website and e-commerce portals? Or will the majority of sales continue to follow traditional sales methods? Would an e-commerce portal allow insulation companies to increase sales for common materials? Businesses that lack an e-commerce site may find that these younger workers may look elsewhere to complete their task and purchase their goods. According to the Pew Research Center, Millennials are the largest portion of the workforce and will be more than 50% of it by 2020. E-commerce is not a trend but a permanent avenue of business. For those who have grown up with technology, websites become the face of a company. Surveys show that these purchasers believe a bad website suggests a company will not be reliable or lacks knowledge, or affirm that they will not even work with a company without a website—and a company will never know the impact of the business they have lost since those who click away will never contact them.  However, not all aspects of e-commerce are right for each business. Companies need to evaluate and determine what is best for their future goals.

Looking Forward

Historically, the insulation and construction industries rely on excellent products, customer service, and brand loyalty. If we look ahead a few years in the future, will e-commerce sales grow in the construction and insulation industry? If so, the challenge that lies ahead is how to meld e-commerce and other technology tools with existing assets. Many of Amazon’s features—like allowing customers to select recurring product orders—could be applied to the construction market. If a manufacturing or distributing company could create a construction jobsite dash button—a device that reorders your favorite products by pressing a button—would their orders increase? The construction and insulation industries will have to investigate all potential avenues, including e-commerce, to discover how they should position their businesses for optimal growth as the industry and its workforce evolve.

 

 

Copyright Statement

This article was published in the September 2016 issue of Insulation Outlook magazine. Copyright © 2016 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

Five Keys to Inventory and Supply-Chain Management

Inventory management has a profound effect on jobsite operations. If proper inventory-management techniques are not followed, it can cause costly project delays. Following are 5 tips from National Insulation Association (NIA) distributor members on how to ensure proper inventory management and a smooth inventory supply chain.

1. Forecast-Based Purchasing

Proper inventory levels can present somewhat of a “Goldilocks and the 3 Bears” issue for distributors—too much inventory can tie up excessive funds and hinder business operations, while too little can leave businesses unable to meet their customers’ needs. To find the inventory level that is “just right,” businesses should rely on data from the sales side of their business. Past purchasing history can also be a good indication of what will be needed in the future and can help guide purchasing.

There are a few different approaches for inventory purchasing depending on the size of the company and the strategy it prefers to embrace. Some companies buy inventory for the day-to-day business—this may work for companies that do not have the budget to invest in a large amount of inventory. As Rick Campbell, Director of Operations for General Insulation Company, Inc. noted, it is important to “monitor the turns and track inventory very closely so you’re identifying your demands and your needs.”

Some distributors may even take the strategy of waiting until a customer places an order to procure the necessary materials. This approach, however, does have certain risks. If a supplier has changed its lead time, it could cause an unexpected delay that will leave customers without their supplies and potentially disrupt project schedules.

Alternatively, some distributors may take the approach of stocking large amounts of inventory—strategizing that their ability to allow customers to fulfill their emergency project needs on an as-needed basis will set them apart from the competition. In this approach, the company realizes that product may not sell for months or even a year—but hopes that the strategy will pay off in customer loyalty.

Dana Vlk, Vice President of Marketing for Distribution International, Inc. affirms that oftentimes, a combination of purchasing methods can be used to achieve the ideal inventory balance.

2. Standardized Policies and Procedures

Establishing policies and procedures and enforcing those policies is crucial to the success of inventory and supply management. Continuity in procedures helps ensure a system of checks and balances and limits the chance of errors. For example, at General Insulation Company’s warehouse, if a person pulls a pick ticket (i.e., a list of goods being delivered) for a customer, a different employee has to check it. Similarly, all deliveries are marked before transit so they are aware of what is inside and where it is going. These types of redundancies can help eliminate human error and prevent issues that will affect the customer. In this area, consistency is key; while there can be a trial period in which new policies are tested and altered for better results, once the policy is established, it should be strictly enforced—this will eliminate confusion and limit errors.

Standardized employee orientations and consistency in following outlined rules across branches are also important to continued smooth operations—a patchwork of different policies will increase the chance for errors and mismanagement. At the headquarter or corporate level, it is important to be engaged with the branches to ensure that everyone is on the same page, and to take steps if it becomes clear that policies are not being followed.

3. Training and Communication

Training and communication play an important role in ensuring policies and procedures are followed, and that employees understand exactly why they are important. For training purposes, a basic level of knowledge about the products is critical. Campbell noted that part of their training includes ensuring all employees view NIA’s Mechanical Insulation Installation Video Series to learn more about mechanical insulation products and accessories.

For new employees, consider having a monthly check-in where supervisors can note what areas have been covered and what areas may still need review—this ensures both that training is being covered and that an employee is gaining an understanding of the processes necessary to properly manage inventory. Additionally, companies with multiple locations should ensure they are communicating any corporate policies clearly to branch divisions. They should also work with managers to ensure all communications are being shared with branch employees so there is continuity across branch policies. A short 5–10 minute daily or weekly meeting can help get everyone on the same page to work cohesively and make sure operations go smoothly.

4. Inventory Accuracy

Ultimately, inventory represents fulfillment of customers’ future orders. Thus, ensuring your company’s inventory is as accurate as possible prevents potential errors that will affect customers and their projects. Dave Eckelbarger, Vice President of Supply Chain for Distribution International, Inc., commented, “I have found that those companies that are the most customer-service oriented take their inventory counting the most seriously.” Best practices for inventory accuracy include complete physical inventories (i.e., accounting for every product in the warehouse) on an annual or quarterly basis, as well as cycle counting on a more frequent basis for the most popular or “A” items.

Many companies rely on software for real-time inventory tracking, enabling them to have an electronic record of inventory that can be accessed at all times. Failing to enter products into the system means inventory will be inaccurate—so it is important to place a priority on maintaining accurate information. Additionally, it is important to closely monitor how often a product is leaving a warehouse and how long it takes to replenish it—if a product is selling within 5 days but it only takes 5 days to replace, there is no need to have 2 or 3 weeks’ worth on hand. An inventory-management system can help track this information and help identify needs on a daily basis.

5. Accountability

There will always be a degree of uncertainty when it comes to inventory levels. Even solid forecasts based on sales data may fall short of actual sales. Appointing someone who is accountable for how many dollars are going into inventory on any given day is crucial to proper inventory management. One of the reasons this is so important is due to the types of changes that can occur on the suppliers’ end that affect inventory pricing and lead times. It is not uncommon for a business to realize—sometimes months after the fact—that a vendor has changed costs on a product and they have been paying a different amount for months. Or, they may be surprised when an order shows up late only to find the vendor communicated a change in lead time 2 months prior. Assigning someone to keep track of these circumstances is crucial to inventory control.

For Andrew Metzler, Inventory Manager of BayView Industries of Green Bay Inc., a member of the Bay Family of Companies, “accountability is crucial to ongoing inventory management.” Part of this process is closely monitoring the numbers and ensuring that orders match demand and historical sales. It is common for headquarters to inquire about a branch’s thought process if order numbers do not seem to match up with historical data—the vast majority of the time, the person placing the order has a reason for the discrepancy. In the other instances, this close level of accountability allows the company to prevent ordering errors that can cost money and disrupt inventory management.

Key Points

Prioritizing forecast-based purchasing, standardized policies and procedures, training and communication, inventory accuracy, and accountability will help keep inventory at appropriate levels, meet customer demand, and keep job sites running smoothly.

A special thanks to Rick Campbell, Director of Operations for General Insulation Company, Inc.; Dave Eckelbarger, Vice President of Supply Chain for Distribution International, Inc.; Andrew Metzler, Inventory Manager of BayView Industries of Green Bay Inc., a member of the Bay Family of Companies; and Dana Vlk, Vice President of Marketing for Distribution International, Inc., for contributing their expertise to this article.

 

 

Copyright Statement

This article was published in the September 2016 issue of Insulation Outlook magazine. Copyright © 2016 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.