AI has the potential to transform the energy sector in the coming decade, driving a surge in electricity demand from data centers around the world while unlocking significant opportunities to cut costs, enhance competitiveness, and reduce emissions, according to a new report from the International Energy Agency (IEA): Energy and AI. The findings were announced in an IEA press release on April 10, 2025.
The IEA report offers a comprehensive, data-driven, global analysis of the connections between energy and AI, drawing on new datasets and extensive consultation with policymakers, the tech sector, the energy industry, and international experts. Key points include:
Electricity demand from data centers worldwide will more than double by 2030, to around 945 terawatt-hours (TWh).
The electricity demand from AI-optimized data centers is projected to more than quadruple by 2030.
U.S. data center power consumption is on course to account for almost half of the growth in electricity demand between now and
The U.S. economy is set to consume more electricity in 2030 for processing data than for manufacturing all energy-intensive goods combined, including aluminum, steel, cement, and chemicals.
In advanced economies, data centers are projected to drive more than 20% of the growth in electricity demand between now and 2030.
A diverse range of energy sources will be tapped to meet the rising electricity needs, though renewables and natural gas are set to take the lead, due to their cost competitiveness and availability in key markets.
“AI is one of the biggest stories in the energy world today—but until now, policymakers and markets lacked the tools to fully understand the wide-ranging impacts,” said IEA Executive Director Fatih Birol. “Global electricity demand from data centers is set to more than double over the next 5 years, consuming as much electricity by 2030 as the whole of Japan does today.”
The report emphasizes the uncertainties that remain, from the macroeconomic outlook to how quickly AI will be adopted, noting:
It is unclear how capable and productive AI will become, how fast efficiency improvements will occur, and whether bottlenecks in the energy sector can be resolved.
Cyberattacks on energy utilities have tripled in the past 4 years and become more sophisticated because of AI, though AI is also a critical tool for companies to defend against such attacks.
There is expanding demand for critical minerals used in the equipment in AI data centers, whose global supply is currently highly concentrated.
The report notes that while the increase in electricity demand will drive up emissions, that will be small in the context of the overall energy sector and could potentially be offset by emissions reductions enabled by AI, if adoption of the technology is widespread. And AI could accelerate innovation in energy technologies such as batteries and solar PV.
“With the rise of AI, the energy sector is at the forefront of one of the most important technological revolutions of our time… AI is a tool, potentially an incredibly powerful one, but it is up to us—our societies, governments and companies—how we use it,” noted Dr. Birol.
Artificial Intelligence (AI) is revolutionizing the construction industry by enhancing efficiency, safety, and decision-making processes. This article explores the applications of AI in various stages of construction projects, including design, execution, and maintenance. It highlights the benefits of both analytical and generative AI, providing insights into how these technologies can be leveraged to optimize construction workflows and improve project outcomes.
Introduction
AI has emerged as a transformative force in the construction industry, offering innovative solutions to longstanding challenges. The construction sector, traditionally characterized by manual labor and conventional methods, is now witnessing a paradigm shift with the integration of AI technologies. By harnessing the power of AI, construction professionals can improve project outcomes, reduce costs, and enhance safety. The following overview of AI applications in construction focuses on analytical and generative AI, and their roles in different project stages.
Analytical AI and Generative AI
AI can be broadly categorized into two types: analytical AI and generative AI. Each type has distinct characteristics and applications in the construction industry.
Analytical AI
Analytical AI is designed to interpret and analyze data, providing valuable insights that support decision-making. In the construction industry, analytical AI can be used for construction management; expedited analysis of large data volumes; and reliable, repetitive analysis. These applications help streamline operations, optimize resource allocation, and improve project efficiency.
For instance, analytical AI can process vast amounts of data from various sources, such as project schedules, resource inventories, and financial records, to identify patterns and trends. This enables construction managers to make informed decisions based on real-time data, improving project planning and execution. Additionally, analytical AI can predict potential issues and suggest corrective actions, reducing the likelihood of delays and cost overruns.
Generative AI
Generative AI focuses on creating new content, such as text, images, or music, by learning patterns from existing data. In construction, generative AI can assist with design and value engineering, execution and maintenance, and risk identification and casualty avoidance. By generating innovative solutions and predicting potential issues, generative AI enhances project planning and execution.
For example, generative AI can create detailed 3D models and renderings of construction projects, allowing stakeholders to visualize the final product and make necessary adjustments before construction begins. This not only improves design accuracy but also helps identify potential design flaws and optimize resource utilization. Furthermore, generative AI can simulate various construction scenarios, enabling project managers to evaluate different approaches and select the most efficient and cost-effective solution.
AI in the Construction Project Lifecycle
AI plays a crucial role in various stages of construction projects, from design to maintenance. Each stage presents unique challenges and opportunities for AI integration, leading to improved project outcomes and enhanced efficiency.
While AI has the potential to significantly enhance various aspects of the construction industry, it is important to recognize its limitations. AI systems can sometimes produce incorrect results due to “hallucinations,” where the AI generates information that is not based on actual data or reality. Additionally, AI models rely on the data they are trained on, and if this data is outdated or not regularly updated, the AI outputs may be inaccurate or irrelevant. Therefore, it is crucial for users to critically evaluate AI-generated results and cross-check them with reliable sources. Blindly accepting AI outputs without verification can lead to errors and suboptimal decisions. As the technology continues to evolve, it is essential to maintain a cautious approach and ensure that AI complements human expertise, rather than replacing it entirely.
Design Stage
The design stage is a critical phase in construction projects, as it sets the foundation for all subsequent activities. AI technologies can significantly enhance the design process by providing accurate and detailed visualizations, optimizing design alternatives, and ensuring compliance with environmental standards.
Conceptual Designs and 3D Renderings. AI tools enable the creation of accurate and detailed conceptual designs and 3D renderings. These visualizations help stakeholders understand project scope and make informed decisions. For example, AI-powered design software can generate realistic 3D models of buildings, allowing architects and engineers to explore different design options and identify the most suitable solution. This not only improves design accuracy but also facilitates communication and collaboration among project stakeholders.
Value Engineering and Design Alternatives. AI assists in evaluating different design options, optimizing value, and identifying cost-effective solutions. AI-driven value engineering can lead to significant savings and improved project outcomes. For example, AI algorithms can analyze various design alternatives and recommend the most efficient and cost-effective option based on factors such as material costs, energy efficiency, and construction time. This helps project managers make informed decisions and optimize resource utilization.
Project Resourcing and Material Selection. AI can help select materials and resources efficiently, considering factors such as cost, availability, and sustainability. This ensures optimal resource utilization and reduces waste. For instance, AI-powered material selection tools can analyze data on material properties, costs, and availability to recommend the best materials for a specific project. This not only reduces material costs but also minimizes environmental impact by promoting the use of sustainable materials.
Environmental Compliance Considerations. AI can assist in ensuring that designs meet environmental standards and comply with relevant codes and regulations. Examples include adherence to local and international codes, energy conservation codes, and other standards. AI-powered compliance tools can analyze design data and identify potential compliance issues, ensuring that projects meet all regulatory requirements. This not only reduces the risk of legal issues but also promotes sustainable construction practices.
Construction Stage
The construction stage involves the actual execution of the project, including project scheduling, resource allocation, safety management, and progress tracking. AI technologies can significantly enhance this stage by optimizing project schedules, improving safety, and ensuring efficient resource utilization.
Project Scheduling and Resource Allocation. AI optimizes project schedules and allocates resources effectively, reducing delays and improving productivity. Tools such as AI-driven scheduling software enhance project management. For example, AI algorithms can analyze project data and identify the most efficient schedule, considering factors such as resource availability, weather conditions, and labor productivity. This helps project managers allocate resources effectively and minimize delays.
Safety Risk Reduction. Predictive and preventative safety assessments using AI help identify potential hazards and mitigate risks. AI applications in safety include real-time monitoring and automated safety checks. For instance, AI-powered safety systems can analyze data from sensors and cameras to detect potential hazards and alert workers in real time. This not only improves safety but also reduces the risk of accidents and injuries.
Cost Estimation and Material Resourcing. AI automates takeoff and cost estimation processes, providing accurate and timely cost projections. This helps manage budgets and avoid cost overruns. For example, AI-powered cost estimation tools can analyze project data and generate detailed cost estimates, considering factors such as material costs, labor rates, and project duration. This helps project managers make informed decisions and manage budgets effectively.
Project Progress Tracking. AI tools, including 360-degree cameras and LiDAR (light detection and ranging) scanning, track project progress and provide real-time updates. This improves transparency and allows for timely interventions. For instance, AI-powered progress tracking systems can analyze data from cameras and sensors to monitor project progress and identify potential issues. This helps project managers stay informed and take corrective actions as needed.
Routine Operations and Hazard Identification. AI identifies potential hazards and ensures site health by monitoring routine operations. Examples include AI-driven inspections and hazard detection systems. For instance, AI-powered inspection tools can analyze data from sensors and cameras to detect potential hazards and ensure compliance with safety regulations. This not only improves safety but also reduces the risk of accidents and injuries.
Cloud-Based Data and Collaboration. AI facilitates collaboration between stakeholders by providing cloud-based data solutions. This enhances communication and coordination among the design team, owner, management, and on-site personnel. For example, AI powered collaboration tools can analyze project data and provide real-time updates to all stakeholders, ensuring that everyone is on the same page. This improves communication and coordination, reducing the risk of misunderstandings and delays.
Maintenance Stage
The maintenance stage involves the ongoing upkeep and repair of construction projects to ensure their longevity and functionality. AI technologies can significantly enhance this stage by providing real-time monitoring, predictive maintenance, and automated reporting.
Preventative Maintenance. AI can assist with scheduling maintenance tasks proactively, extending the life expectancy of components. Tools such as AI-driven maintenance software also improve efficiency. For example, AI-powered maintenance systems can analyze data from sensors and cameras to detect potential issues and schedule maintenance tasks before issues arise. This not only extends the life expectancy of components but also reduces the risk of unexpected failures.
Real-Time Monitoring. AI monitors systems and components in real time, detecting issues early and preventing failures. Examples include vibration analysis and computer vision inspections. For instance, AI-powered monitoring systems can analyze data from sensors and cameras to detect potential issues and alert maintenance personnel in real time. This helps prevent failures and ensures the ongoing functionality of construction projects.
Vibration Analysis and Computer Vision Inspections. Advanced AI techniques, such as vibration analysis and computer vision, provide detailed inspections and identify potential problems. Case studies highlight the benefits of these technologies. For example, AI powered inspection tools can analyze data from sensors and cameras to detect potential issues and provide detailed reports. This helps maintenance personnel identify and address potential problems before they become serious.
Digital Twin Models. Digital twins, powered by AI, create virtual replicas of physical assets, enabling predictive maintenance and optimization. This technology enhances asset management and reduces downtime. For example, AI-powered digital twins can analyze data from sensors and cameras to create virtual replicas of physical assets, allowing maintenance personnel to monitor and optimize their performance. This not only reduces downtime, but also improves asset management.
Automated Reports and Maintenance Scheduling. AI automates reporting and scheduling, ensuring timely maintenance and reducing manual effort. This improves overall maintenance efficiency and reliability. For example, AI-powered maintenance systems can analyze data from sensors and cameras to generate automated reports and schedule maintenance tasks. This not only reduces manual effort, but also ensures timely maintenance, improving overall efficiency and reliability.
Conclusion
AI is transforming the construction industry by enhancing efficiency, safety, and decision-making processes. Analytical and generative AI offer innovative solutions at every stage of construction projects, from design to maintenance. As AI technologies continue to evolve, their potential to revolutionize construction workflows will only grow. Stakeholders are encouraged to adopt AI technologies and explore further innovations to stay ahead in the competitive construction landscape.
The Role of Artificial Intelligence in Construction
AI applications in the construction industry include project management tools, predictive maintenance, safety monitoring systems, design automation, and risk assessment platforms. These technologies allow companies to streamline operations, anticipate challenges, and implement data-driven decision-making strategies.
While the benefits are compelling, they must be weighed against the accompanying legal and compliance concerns. Companies must navigate a dynamic and complex regulatory environment, as AI technologies continue to outpace the development of legal frameworks governing their use.
Key Legal Risks of AI Integration
Liability Issues One key area of concern under existing law is negligence and a company’s duty of care. Construction companies have a legal obligation to ensure their operations do not cause harm. For example, if a company uses AI to oversee jobsite safety or structural integrity, it must ensure that the system is adequately tested, maintained, and supervised. Failing to provide appropriate human oversight—relying blindly on outputs generated from an AI too —may expose the company to negligence claims, especially if it results in avoidable accidents.
Product liability is another significant legal consideration. If a defect in the AI software or hardware directly causes an incident, liability may shift to the manufacturer or the developer. However, the construction company could still be liable under the principle of strict liability if it deployed the system without conducting sufficient testing or failed to follow usage guidelines. This creates an urgent need for clear contracts with technology vendors that define roles, responsibilities, warranties, and indemnities.
The use of agentic AI—autonomous systems capable of making decisions and acting independently—introduces its own distinct liability challenges. These systems, such as self-navigating construction vehicles, automated safety monitoring tools, and design-generating algorithms, operate with minimal human intervention. When these AI systems make errors that result in harm, such as personal injury, property damage, or project delays, it becomes difficult to assign fault. Traditional legal frameworks are built around human accountability, making it unclear how liability should be distributed when a machine acts independently.
Agentic AI poses many of the same negligence-related risks that predictive or generative AI tools do. However, there is an additional concern with the use of agentic AI. Companies may face vicarious liability if agentic AI is considered to act as an “agent” of the business. Just as employers can be held liable for the actions of their employees, courts may extend similar reasoning to autonomous systems operating under the direction or benefit of a company.
Intellectual Property Concerns The use of AI in the construction industry introduces several novel and complex issues related to intellectual property (IP) law. As AI becomes more capable of generating original content—such as architectural designs, engineering solutions, or construction methods—questions arise about who owns these AI-generated outputs. Traditional IP laws are based on human authorship, which creates ambiguity when the creator is a machine. For construction companies using AI for design or innovation, this uncertainty can lead to disputes over ownership, use rights, and the commercialization of AI-created works.
One major issue is the ownership of AI-generated content. If a construction company uses an AI tool to produce a novel building design, it is not immediately clear whether the resulting design would even be protected under existing copyright or patent law. Furthermore, assuming that it is protected, it is unclear whether the rights belong to the company using the AI or the software developer. Without clear legal definitions, courts may turn to contracts and user agreements to determine ownership. This makes it critical for construction companies to establish explicit terms in contracts with AI vendors, addressing who retains rights to AI-generated works and under what conditions they can be used, licensed, or sold.
Another challenge is the patentability of AI-assisted inventions. AI tools can identify efficiencies in construction techniques or generate new building materials and methods. If these innovations meet the criteria for patent protection—novelty, non-obviousness, and utility—a company may be able to secure exclusive rights. However, questions about inventorship can complicate the application process, especially if the invention stems primarily from the AI system rather than human input. The U.S. Patent and Trademark Office currently requires that a human inventor be named, which could disqualify some AI-derived inventions or lead to disputes over who contributed the inventive step.
Additionally, construction companies must be mindful of copyright infringement and trade secret protection. AI systems trained on vast datasets may inadvertently reproduce elements of copyrighted works, leading to infringement claims. Similarly, if proprietary algorithms, data models, or AI-driven methodologies give a construction company a competitive advantage, the company must take steps to protect these trade secrets through non-disclosure agreements and cybersecurity protocols. Failure to do so could result in the loss of valuable IP or exposure to litigation.
Data Privacy and Security Concerns The implementation of AI in the construction industry brings significant data privacy and security challenges, particularly given the vast amount of sensitive information these systems collect, process, and store. AI tools used for project management, workforce monitoring, and predictive maintenance often rely on data from employees, clients, and jobsites—including biometric data from wearable safety devices, GPS tracking, financial details, and proprietary blueprints. Without robust data governance practices, construction companies risk violating privacy laws, compromising sensitive information, and exposing themselves to regulatory penalties and litigation.
One of the most pressing concerns is compliance with data protection laws. Regulations such as the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the United States impose strict requirements for the collection, use, and sharing of personal data. Construction companies using AI must ensure that they obtain proper consent from individuals, disclose how data will be used, and provide mechanisms for individuals to access or delete their information. Failure to comply may result in substantial fines and reputational harm, especially in jurisdictions that prioritize consumer data rights.
Another major risk involves data breaches and cybersecurity threats. AI systems integrated with cloud platforms, internet of things (IoT) devices, and remote access capabilities present new vulnerabilities. A successful cyberattack could lead to unauthorized access to construction plans, personnel records, or site conditions, causing not only operational disruptions but also legal exposure. Additionally, data shared with third-party vendors—such as AI developers or cloud service providers—introduces further risks if those partners lack strong security standards or breach contractual obligations.
Regulatory Compliance Regulatory compliance is a critical concern for construction companies adopting AI technologies. The construction industry is subject to a variety of local, state, and federal regulations covering safety, labor practices, environmental standards, and data protection. As AI tools increasingly influence decision-making in these areas—for example, determining jobsite safety protocols, automating employee performance tracking, or managing environmental impacts—companies must ensure that their use of AI aligns with existing legal obligations. Failure to do so could result in fines, project delays, or even legal action.
Compounding the challenge is the rapidly evolving regulatory landscape surrounding AI itself. While comprehensive federal legislation on AI is still in development in the United States, several states have enacted laws addressing AI transparency, accountability, and data privacy. For example, California and Colorado have introduced detailed statutes governing high-risk AI systems and algorithmic decision-making. Construction companies operating in multiple jurisdictions must stay informed of these regulatory differences to remain compliant. In addition, new rules may require companies to document how AI systems make decisions and conduct risk assessments, and require that they disclose AI usage to affected stakeholders. Proactive compliance strategies—including legal consultations, internal audits, and regulatory monitoring—are essential to navigate this dynamic environment responsibly and effectively.
Finally, the use of AI in hiring processes presents several employment-related concerns for construction companies, particularly in terms of fairness, transparency, and compliance with labor and antidiscrimination laws. AI-driven tools that screen resumes, assess video interviews, or predict candidate success may unintentionally perpetuate bias if they are trained on historical data that reflects past discriminatory practices. This could result in unfair exclusion of qualified candidates based on race, gender, age, or other protected characteristics, exposing companies to legal liability under equal employment opportunity laws. Additionally, under statutes like the Illinois Artificial Intelligence Video Interview Act, employers must obtain informed consent when using AI to analyze interview footage, further emphasizing the need for transparency.
National Labor Relations Act Concerns Construction companies incorporating AI into their operations must consider the implications of the National Labor Relations Act (NLRA), which protects employees’ rights to organize, unionize, and engage in collective bargaining. One of the primary concerns under the NLRA is job displacement. As AI automates tasks such as scheduling, project oversight, and equipment operation, workers may face reduced hours or even layoffs. If these changes are implemented without consulting employees or their unions, companies could be accused of undermining collective bargaining rights or engaging in unfair labor practices.
Another significant issue involves the use of AI for employee surveillance and performance monitoring. AI-powered tools that track productivity, location, or behavior on jobsites may infringe on workers’ rights to privacy and can create a chilling effect on organizing efforts. Under the NLRA, employees have the right to discuss working conditions and advocate for improvements without fear of retaliation or intrusive monitoring. If AI systems are used to monitor or penalize union activity—intentionally or not—it could lead to legal challenges.
Ethical Considerations As construction companies increasingly adopt AI, ethical considerations must play a central role in guiding how these technologies are implemented and used. One of the primary concerns is the potential for algorithmic bias in AI systems. If the data used to train the systems contains historical biases—such as underrepresentation of certain demographics, or skewed performance metrics—AI could inadvertently perpetuate discrimination in areas like hiring, task assignments, or performance evaluations. This not only raises moral questions but also exposes companies to reputational and legal risks.
Another key ethical issue is transparency and accountability. Many AI systems operate as “black boxes,” making decisions based on complex algorithms that even their developers may struggle to fully explain. This opacity can be problematic in safety-critical environments like construction, where lives may depend on understanding why a particular decision was made—such as approving a structural design or halting a project due to risk assessments. To maintain trust among employees, clients, and regulators, construction companies must strive for explainability in their AI systems. Establishing clear policies on how decisions are made, who is responsible for overseeing AI outputs, and how errors are addressed is essential for building a culture of ethical AI use.
Mitigation Strategies
To effectively harness the benefits of AI while minimizing potential downsides, construction companies must adopt a proactive and strategic approach to risk mitigation. One of the most important steps is developing clear and comprehensive contracts with AI vendors and technology partners. These agreements should explicitly outline ownership of AI-generated outputs, liability in the event of system failures, data usage permissions, and indemnification clauses. Well-drafted contracts can help avoid disputes and provide legal clarity on responsibilities and rights related to AI systems.
Another essential mitigation strategy is conducting regular audits and testing of AI tools. These audits should assess the accuracy, fairness, and safety of AI systems, especially those used for critical tasks like structural design, project management, and safety monitoring. Regular evaluations can identify potential flaws or biases in the algorithms before they cause harm. Construction companies also should ensure that AI tools are updated frequently and tested under real-world conditions to confirm reliability and compliance with evolving regulatory standards.
Employee training and engagement are equally crucial. Workers need to understand how AI systems function, their limitations, and how to use them effectively and ethically. Offering workshops, onboarding sessions, and open forums for feedback can help reduce resistance to AI adoption while ensuring that staff are aware of legal and operational implications. Moreover, involving employees in the implementation process helps foster trust and encourages responsible use of new technologies.
Construction companies should invest in robust data security and compliance programs. This includes establishing internal policies for data collection, storage, and sharing; implementing cybersecurity measures such as encryption and access controls; and monitoring compliance with privacy regulations like the GDPR or CCPA. By embedding these risk mitigation strategies into company culture and workflows, construction companies can responsibly innovate while minimizing legal, ethical, and operational risks.
Finally, maintaining human oversight over AI tools is essential for construction companies to ensure accountability, accuracy, and compliance with legal and ethical standards. While AI can significantly enhance decision-making in areas such as safety monitoring, project planning, and hiring, it is not infallible. Errors, biases, or misinterpretations by AI systems can have serious consequences, including legal liability, safety hazards, and reputational damage. Human oversight allows companies to catch mistakes, interpret AI outputs within the appropriate context, and make judgment calls that machines cannot. Additionally, given the rapidly evolving regulatory landscape surrounding AI, consulting an attorney is crucial. Legal counsel can help construction firms navigate complex issues such as data privacy compliance, IP ownership, labor law implications, and liability concerns, ensuring that AI adoption is both legally sound and strategically managed. Legal counsel also can help a company keep up with regulatory changes, thereby further safeguarding operations.
Conclusion
AI is poised to revolutionize the construction industry, offering substantial improvements in efficiency, safety, and innovation. However, its integration brings multifaceted legal, ethical, and operational challenges. From liability and IP ownership to data privacy and labor relations, each risk demands careful attention and proactive management.
Construction companies must embrace a strategic approach—grounded in legal compliance, transparent policies, and stakeholder engagement—to fully realize the benefits of AI while minimizing its pitfalls. Through informed planning, continuous education, and legal due diligence, the industry can build a future where AI enhances, rather than endangers, construction outcomes.
When it comes to commercial and industrial insulation, one size does not fit all. The effectiveness of insulation is heavily influenced by geographic location, which means that a single insulation thickness table for all regions is impractical and inefficient. This is especially true for industrial facilities like refineries, chemical plants, and power plants, where operating temperatures are more extreme and insulation plays a critical role in maintaining process efficiency and safety.
The two most common reasons for insulating pipes and equipment in an industrial plant are to provide personnel protection (maintaining a “safe-to-touch” surface temperature) and for process control (limiting heat loss or gain). For cold processes, it also can be important to insulate to prevent surface condensation. All of these requirements can be heavily impacted by ambient air temperatures, wind speeds, and relative humidity, each of which can vary significantly, depending on where the facility is located.
Climate Zones, Average Conditions, and Insulation Needs
Different geographic areas fall into diverse climate zones, each with unique temperature ranges and weather patterns. For instance:
Cold Climates. Regions with harsh winters, such as the northern United States, require thicker insulation to retain heat and reduce energy consumption. The International Energy Conservation Code (IECC) recommends higher R-values (a measure of insulation’s thermal resistance) for these areas.
Warm Climates. In contrast, areas with mild winters and hot summers, like the southern United States, need insulation that can effectively keep heat out. Especially in commercial applications, the focus here may be on preventing heat gain, rather than retaining heat.
Average Conditions. Within any specific climate zone, conditions will vary, depending on the time of year. Using the average annual conditions for ambient air temperature or wind speed will lead to items being under-insulated for a large portion of the year. It is important to use the average “worst case” condition for each design objective to ensure the insulation system performs as required for all but the most extreme weather events.
Three Reasons Why One Table Doesn’t Work
Using a single insulation thickness table for all locations fails to account for these regional and seasonal differences. Here are some key reasons.
Condensation Control (CC) The approach to insulating to prevent surface condensation (on the outside of the insulation system) is also significantly impacted by relative humidity. CC requires keeping the exterior surface of the insulation system above the dew point—i.e., the temperature at which moisture in the air will condense on a surface. This is controlled by the thickness of the insulation, which must account for the ambient air temperature, wind speed, and relative humidity. Higher air temperature and humidity, and lower wind speed, are the worst case for CC.
Personnel Protection (PP) The thickness of insulation required to achieve a safe-to-touch surface temperature can vary widely, depending on ambient air temperature and wind speed. A higher ambient air temperature will result in less heat loss and a higher surface temperature, so using the average summer high temperature will give protection for most of the year. Similarly, higher wind speed will have a greater cooling effect on the surface of the insulation system, so using a lower value for wind speed will provide protection for most conditions that will be encountered.
Heat Flow (HF) Similar to PP, HF insulation thickness requirements are dependent on ambient air temperature and wind speed. To limit heat loss on high-temperature processes, remember that the lower the ambient air temperature, or higher the wind speed, the greater the heat loss. For low-temperature systems, higher ambient air temperatures and lower wind speeds are conditions for increased heat gain.
Why it Matters
Industrial facilities such as refineries, chemical plants, and power plants have unique insulation needs, due to their complex operations and extreme conditions. All of the following must be addressed.
Safety Insulation systems play an important role in safety. Surface temperatures that are too high or too low can cause burns to personnel who accidentally come in contact with the surface. In addition, condensation dripping off process piping or equipment can create slip hazards or lead to the growth of mold and mildew.
Process Efficiency Proper insulation helps maintain critical process conditions, maximizing yields and reducing energy consumption. This is vital for the economic performance of facilities.
Energy Efficiency and Sustainability Under-insulated pipes and equipment will experience increased heat loss or gain, causing the heating or cooling equipment to work harder to maintain the desired operating temperature. This results in increased energy (fuel) consumption, which ultimately causes increased greenhouse gas emissions. It can also cause an increase in maintenance needs or, ultimately, premature failure of the equipment.
Conclusion
When designing an insulation system, a one-size-fits-all approach just does not work. The effectiveness of insulation is highly dependent on geographic location, and this is particularly true for industrial facilities, due to their extreme process temperatures. A one-size-fits-all approach to insulation thickness is not only impractical but can lead to inefficiencies, increased costs, and safety hazards. By understanding and applying climate-specific insulation requirements, we can achieve better energy efficiency, enhanced comfort, and increased safety, all while reducing harmful greenhouse gas emissions.
As sustainability goals continue to shape corporate strategy and regulatory policy, understanding carbon markets is becoming increasingly vital across industries. For professionals in the insulation sector, there is a compelling opportunity to position their work as a core component of decarbonization strategies. This article will examine the current state of carbon credit markets, clarify distinctions among different credit types, and outline where insulation fits into the broader conversation about emissions reductions.
The Strategic Imperative of Decarbonization
Climate-focused initiatives, both regulatory and voluntary, are influencing industries globally. While attention often centers on high-visibility technologies like renewable energy and carbon capture, insulation is a practical and highly effective tool for reducing operational emissions. Properly installed mechanical insulation mitigates heat loss in piping, equipment, and ductwork, leading to lower energy consumption and a corresponding reduction in carbon and other greenhouse gas (GHG) emissions.
In the United States, the Inflation Reduction Act (IRA) underscores this shift, offering long-term energy policy guidance and funding incentives that emphasize carbon reduction, clean manufacturing, and energy efficiency. Mechanical insulation projects are uniquely positioned due to their low cost, high return on investment, and alignment with broader emissions goals.
Emissions Accounting: Scope and Strategy
GHG emissions are categorized using the Greenhouse Gas Protocol into three scopes:
Scope 1:Direct emissions from owned or controlled sources, such as on-site fuel combustion.
Scope 2:Indirect emissions from the generation of purchased electricity, steam, heating, and cooling.
Scope 3: All other indirect emissions, including supply chain and product usage impacts.
Together, these scopes provide a full view of an organization’s carbon footprint. Many companies are now adopting science-based targets to reduce emissions in line with the goals of the Paris Agreement, which aim for net-zero emissions by 2050. Insulation contributes directly to Scope 1 and Scope 2 reductions by improving energy efficiency within facility operations. When these improvements are quantifiable and verifiable, they may also support Scope 3 strategies by influencing supplier behavior and product life-cycle impacts.
Carbon Credits: Market Overview and Considerations
Carbon credits are a mechanism for monetizing emissions reductions. Each credit typically represents one metric ton of CO2 equivalent (CO2e) removed or avoided. Two primary carbon credit markets exist:
Compliance Markets These are government-regulated systems, such as California’s Cap-and-Trade program, where high-emitting entities must purchase credits to remain within legally mandated limits. Participation is often limited to certain sectors, and standards are tightly regulated.
Voluntary Markets These markets allow companies to purchase credits to meet self-imposed sustainability goals. They are more flexible but vary widely in terms of project type, verification standards, and pricing.
While the majority of voluntary market credits have historically come from afforestation and land-use projects, there is growing interest in energy efficiency and building performance as viable sources of verified carbon reductions.
Types of Emissions Reductions and Their Credibility
To navigate the carbon credit space effectively, it is crucial to distinguish among three types of emissions reductions:
Removals: Physical removal of CO2 from the atmosphere (e.g., reforestation or direct air capture). These are generally the most credible and widely accepted in carbon markets. NIA Past President David J. Cox has often said that insulation should be considered an at-the-source direct air capture technology due to its capacity to prevent carbon emissions from ever entering the atmosphere.
Reductions: Lowering emissions from a baseline (e.g., retrofitting buildings with high-performance insulation to reduce energy use).
Avoided Emissions: Emissions that would have occurred without a particular intervention (e.g., insulation that prevents future energy use and therefore the resulting emissions).
Of the three, removals currently dominate the carbon credit landscape due to their easier verification and permanence. However, reductions and avoided emissions, when backed by robust measurement and verification protocols, are gaining recognition—particularly in the voluntary markets.
Opportunities for the Insulation Industry
Mechanical insulation is a high-impact, cost-effective strategy for achieving decarbonization goals. When properly measured, the energy savings from insulation upgrades can be translated into emissions reductions, forming the basis for credible carbon credit claims. Projects with clearly documented baselines and year-over-year performance improvements are most likely to succeed in carbon credit marketplaces.
While entering compliance markets may be complex due to stringent entry requirements, the voluntary carbon market presents a viable path forward. Insulation projects that demonstrate clear energy and emissions savings, verified through energy audits and ongoing monitoring, can potentially be monetized as carbon credits.
Key steps toward market participation include:
Engaging third-party experts for life-cycle assessments and carbon quantification.
Aligning projects with established verification standards (e.g., Verra, Gold Standard).
Exploring partnerships with organizations that facilitate credit registration and exchange.
Policy Support and the IRA
The IRA provides significant incentives for decarbonization projects, including tax credits, direct pay options for non-taxable entities, and funding for energy-efficient buildings. Insulation qualifies under many of these categories and can be an eligible component in broader energy strategies involving manufacturing facilities, data centers, hospitals, and more.
For installers and contractors, the IRA introduces prevailing wage and apprenticeship requirements, particularly for projects seeking bonus credits. Compliance with these provisions is essential for maximizing the financial benefits of federally supported initiatives.
Conclusion
Carbon markets offer an evolving landscape of opportunity for the insulation industry. By framing insulation as a quantifiable and strategic tool for emissions reduction, industry professionals can unlock new revenue streams, contribute meaningfully to sustainability goals, and secure their role in the low-carbon economy. With careful planning, credible measurement, and strategic partnerships, insulation can move from an overlooked necessity to a headline solution in the decarbonization toolkit.
Corrosion under insulation (CUI) is a multi-factorial problem, with many causes and no single solution. For any CUI event, if water can be kept at bay, the resulting reduction in the metal’s exposure to water should have tangible benefits in mitigating CUI. Water is tough to keep out of an insulation system, as cracks in the cladding and gaps in the insulation can form over time.
Relying on just one line of defense, such as water repellency, can leave systems vulnerable when water eventually finds its way under the insulation. Using a corrosion inhibitor provides another means of defense against the dangers of CUI.
This article presents the durability of mineral wool with an integral corrosion inhibitor at various operating temperatures using the ASTM C1617 standard corrosion test method. Also, a full-scale insulated and jacketed heated pipe CUI simulation test was performed per the ASTM G189 standard to document the corrosion mitigation performance of mineral wool with corrosion inhibitor when exposed to a water volume equivalent to 15 times the annual rainwater for Houston, Texas, at a 1% infiltration rate. Corrosion-inhibiting mechanisms are discussed, and how they can modify the environment around steel substrates to influence corrosion rates.
The global growth of industrialization and the ongoing need for heavily industrialized processing plants that produce energy, chemicals, food, and other products have become critical to our daily lives. These systems rely on vast networks of high-temperature piping and equipment that are prone to CUI.
CUI is an aggressive, localized corrosion phenomenon arising from water migrating through joints in the insulation system or via damaged areas to reach the metal surfaces of pipes and other process equipment. In many facilities, CUI has dangerous and costly consequences if not properly addressed, including an increased risk of heat loss, unplanned downtime, leaks, and spills. The results include reduced plant output and profitability, as well as greater threats to the health and safety of plant personnel and the surrounding environment.
Corrosion can be triggered and aggravated in many ways, which is why there is no one-size-fits-all solution. Although there are many causes of corrosion, there are three common contributing factors: unprotected metal, oxygen, and water. Most CUI mitigation solutions focus on protecting the metal. Recent solutions have focused on improving the water repellency of insulation materials and making these solutions durable at high temperatures. This allows water to be shed away from the insulation, reducing the amount of water the metallic substrate may see, even at temperatures of -4°C to 175°C (25°F to 350°F), where the CUI risk increases.1
A multi-pronged approach to CUI mitigation could benefit this costly problem. The latest CUI mitigation innovation in mineral wool insulation technology comes in the form of a corrosion inhibitor embedded into the inner layer of the insulation, right where it contacts the metal substrate. The inhibitor activates on contact with water and reacts with iron on the steel surface to form a low-solubility, protective film that shields the pipe from corrosive attack. It also buffers the pH of the water that enters the insulation system, making the water less acidic. The effectiveness was studied in previous papers.2, 3 This article reviews testing performed to examine the durability of this corrosion inhibitor.
A series of third-party laboratory tests was commissioned to test the durability of the inhibitor-treated mineral wool insulation in mitigating corrosion in various scenarios:
Modified ASTM G189 testing for water throughput of 15 times the annual rainfall of Houston, Texas.
Modified ASTM C1617 testing after heat aging up to 649°C (1,200°F) for 24 hours.
EXPERIMENTAL PROCEDURE
PART 1: Corrosion Testing to Modified ASTM G189 Simulating 15 Times Annual Rainfall of Houston, Texas
ASTM G189-21 is one of many industry-standard corrosion tests, but it is unique in that it is the only ASTM test that uses a full-scale insulated pipe to more closely simulate field conditions.4 This standard is highly adaptable and has many options, as numerous conditions can elicit CUI.
In this particular set of tests, we wanted to study the effects of water exposure similar to those of a rain event. Because it is impractical to run a test for extended periods and ASTM G189 has no provisions on how to accelerate time during testing, the next logical variable to modify was the amount of water the insulation was exposed to during the test. The water volumes used during the test were based on the amount of rainfall received over 15 years on a pipe. It is important to note that this test is not designed to provide insights into the complete corrosion behavior of a real-life, 15-year duration. Many factors would influence CUI, such as time of wetness, leachate chemistry, and insulation aging, to name a few. This study does not delve into these factors, as it only compares the corrosion rates of mineral wool with and without inhibitor when exposed to 15 times the annual rainfall level of Houston, Texas.
Houston was selected due to its proximity to industrial facilities with high instances of CUI. To calculate the volume of water required to simulate rainfall totals for 15 years, the average annual rainfall total for Houston was determined to be 1316.74 mm (51.84 in) based on government information on a 30-year period from 1991–2020.5 This value, which represented the average for one year, was multiplied by 15 to achieve the 15-year rainfall estimate. To get the volume that would land on the pipe, this value was multiplied by the top projected area (length x diameter) of the insulated pipe specimen used in the test. In this case, a 250 mm (9.84 in) long pipe with an outer diameter of 160 mm (6.30 in) was used.
The next step was to estimate how much water would infiltrate the cladding. The amount of rain bypassing the cladding was based on the ASHRAE 160 standard for infiltration rate through metal building cladding, which uses 1% as the estimated percentage.6 The test used a total volume of 7.9 liters (2.1 gal) of water. The test setup generally follows ASTM G189-21, with the following options and modifications:
Special silicone O-rings replaced PTFE spacers between samples.
The test equipment and coupons were clamped using a spring compression system to counter the system’s thermal expansion.
Ringed test coupons with a width of 14.25 mm (0.56 in) were used, compared to the width of 6.35 mm (0.25 in) specified in ASTM G189-21.
The test duration was modified to 30 days.
The insulations tested were installed directly on the pipe.
The test standard calls for an annular gap of 6.4 mm (0.25 in) between the insulation and pipe to retain the water. This test was modified to remove this gap for two reasons:
Most field installations have thermal insulation installed directly on the pipe, without a set annular gap all around the pipe.
A gap is not necessary to retain water in open-cell insulations like mineral wool, because the water moves into the insulation instead of flowing directly out to the drain. And because the insulation retains the water, a valve was not necessary. This was apparent upon initial water injection, when we observed that water did not exit the system immediately but instead distributed under and through the insulation.
None of the modifications were considered a relaxation of the test method and apparatus described in ASTM G189-21.
Figures 1 and 2 provide a schematic and photo of the test setup and equipment.
The solution of deionized water was injected through 2 x 4.75-mm (0.187-in) holes drilled down to the pipe surface in the 12 o’clock position. This allowed the solution to be introduced at the interface between the insulation and the pipe surface. A single drain was placed at the 6 o’clock position. The solution was not recirculated, and therefore, none of the inhibitor was redistributed onto the piping. The total volume of water used was 7.9 liters (2.1 gal).
The minimum duration for testing, as per Table 1 in the ASTM G189 standard guide, is listed as 72 hours for a cyclic wet/dry (CWD) scenario. Limitations of the testing equipment presented challenges in pushing the amount of water selected for testing through the CUI cell within 72 hours. As a result, testing was extended to 720 hours. This timing allowed water to slowly drip out of the drain rather than flushing out in a constant stream. This is important as high water throughput may wash away corrosive species.
The water injection regime used an initial boost flow rate of 42.5 ml (1.437 oz) for the first 10 minutes to achieve complete water coverage at the start of the test. The standard specifies that a valve be closed at the drain hole to ensure full water coverage around the pipe at the start of the test.
With the insulations tested, no flushing of water was observed through the drain hole during the initial boost period, which negated the requirement for a valve. After the boost flow, a constant 12.27 ml (0.415 oz)/hour was injected to keep water flowing into the system during the wetting cycle of 18 hours. This amounted to 263.33 ml (8.904 oz) per day for a total of 7.9 liters (2.1 gal) over 30 days. Only a few drips per minute of water from the drain hole were observed during the wetting time. Table 1 lists the wet and dry cycle operating temperatures of 60°C (140°F) wet and 150°C (302°F) dry. These values were chosen based on the example conditions for CWD provided in the ASTM G189 standard. This temperature range was also within the greatest likelihood of the CUI zone.
The insulation material was sealed to the test pipe using silicone, creating a 25-cm (9.8-in) long enclosure. The insulation was secured tightly to the pipe surface using stainless steel wire. The outer aluminum jacket was fastened around the insulation using hose clamp bands and sealed longitudinally to the flange ends using silicone. This limited the inlet and exit points for water.
Corrosion measurements were taken using mass loss data (Procedure A) as per the ASTM G189 standard. The mass was recorded at pre- and post-exposure, testing, and cleaning (per practice G1).7 The corrosion rate was then determined using the mass loss data and formula (2) from ASTM G189.
PART 2: High-Temperature Durability Performance of Mineral Wool with Corrosion Inhibitors
The test method selected to determine the CUI mitigation performance of mineral wool with corrosion inhibitors was ASTM C1617-19, “Standard Practice for Quantitative Accelerated Laboratory Evaluation of Extraction Solutions Containing Ions Leached from Thermal Insulation on Aqueous Corrosion of Metals.”8 Testing was completed in a third-party laboratory.
This test used a solution extracted from insulation using the standard test procedure ASTM C871, “Standard Test Methods for Chemical Analysis of Thermal Insulation Materials for Leachable Chloride, Fluoride, Silicate, and Sodium Ions.”9 Ground pieces of insulation were boiled in water and then filtered to produce a solution applied to heated carbon steel coupons over 96 hours. The solution was contained on the coupons using a short PVC pipe adhered to the coupon with silicone. The steel coupon was weighed before and after testing to determine an estimated mass loss corrosion rate (MLCR) measured in mils (thousandths of an inch) per year (MPY).
Testing was always done alongside a control. The standard calls for a solution of distilled water (0 ppm chloride) evaluated along with a 1-ppm and a 5-ppm chloride solution.
The mineral wool with inhibitor insulation was subjected to different heat treatments prior to testing to ASTM C1617. The temperatures selected were 316°C (600°F), 427°C (800°F), 538°C (1,000°F), and 649°C (1,200°F). Heat treatment duration was selected as 24 hours since, typically, loss on ignition (LOI) testing, which is done to determine the weight loss of different elements upon oxidation, varies from a few hours to overnight. (Note: this timing may not be sufficient to fully represent long-term heat aging, and results will vary at different heat aging times and temperatures.)
The performance at these temperatures was compared to control samples of 0 ppm, 5 ppm, and 10 ppm chloride solutions. (See Figures 3 and 4).
RESULTS
PART 1: Corrosion Testing to ASTM G189 for Water throughput of 15 Times the Annual Rainfall of Houston, Texas
For corrosion measurements, procedure A was used to obtain the uniform corrosion rate using the following formula per ASTM G189.
(“Constant [-]” x “Weight difference, corrected [g]”)/(“Exposed area [cm2]” x “Density [g/cm3]” x “Exposure time [days] x 24 hours/day”) x 10 [mm/cm] x 1000 [µm/mm]
The uniform corrosion rate of the six specimens per insulation type was then averaged and listed in Table 3. Mineral wool without an inhibitor showed corrosion on the top and bottom. For the mineral wool with a corrosion inhibitor, the pipe’s top and bottom sections visually showed similar corrosion.
In terms of an average uniform corrosion rate (the corrosion rate of the entire coupon), the pipe insulated with mineral wool without inhibitors was 358.18 µm/year (14.10 MPY). Mineral wool with inhibitors showed a rate of 8.53 µm/year (0.34 MPY).
In many facilities, CUI has dangerous and costly consequences if not properly addressed, including an increased risk of heat loss, unplanned downtime, leaks, and spills.
PART 2: High-Temperature Durability Performance of Mineral Wool with Corrosion Inhibitors
The results in Table 4 show the corrosion mitigation performance to the standard test ASTM C1617 after heat aging up to 649°C (1200 °F) for mineral wool with corrosion inhibitor, which is the maximum service temperature. The average MLCR when heat-treated at various temperatures up to 649°C (1,200°F) remains below the MLCR of deionized water at 209.042 µm/yr (8.23 MPY). There is very little change in the performance when heat aged at 316°C (600°F) to 649°C (1,200°F). These results indicate that the mineral wool with inhibitor solution has a lower MLCR than clean deionized water. This may be due to the corrosion inhibitor’s ability to form a film protecting the steel and buffer the pH.
Table 4 also lists the MLCR of 1 ppm and 5 ppm chloride solutions. As expected, the MLCR increases with a higher concentration of chlorides, since chlorides are known to promote corrosion.
The inhibitor’s heat durability stayed consistently below that of deionized water when heated up to 649°C (1,200°F) for 24 hours. This result may change with different heat aging durations and temperatures.
CONCLUSIONS
In testing to ASTM G189, mineral wool with inhibitors maintains superior corrosion protection after exposure to simulated 15 years’ worth of rainfall levels. The mineral wool with inhibitors also showed a consistent MLCR (and a lower MLCR than with deionized water) when heat aged at temperatures from 315°C to 650°C (600°F to 1,200°F).
These results are promising for both existing and new process-intensive facilities that require proven, cost-effective CUI mitigation solutions to improve the safety and long-term productivity of their operations.
REFERENCES
NACE SP0198-2017, “Control of Corrosion under Thermal Insulation and Fireproofing Materials–A Systems Approach. NACE International
M.O. Hansen and S.N. Rasmussen, “Improving mineral wool CUI performance–next generation” AMPP Annual Conference + Expo 2023, paper no. 18959 (Denver, CO: AMPP, 2023)
R. Seto, “Mineral wool CUI mitigation improvements” AMPP Annual Conference + Expo 2024, paper no. 20798 (New Orleans, LA: AMPP, 2024)
ASTM G189 (2021), “Standard Guide for Laboratory Simulation of Corrosion Under Insulation” (West Conshohocken, PA: ASTM)
National Weather Service. (n.d.). Climate normals summary for Houston Intercontinental Airport. National Weather Service. www.weather.gov/hgx/climate_iah_normals_summary
American Society of Heating, Refrigerating and Air-Conditioning Engineers. (2016). Criteria for moisture-control design analysis in buildings (Standard No. 160). ASHRAE
ASTM G1-03 (2017), “Standard Practice for Preparing, Cleaning, and Evaluating Corrosion Test Specimens” (West Conshohocken, PA: ASTM)
ASTM C1617 (2019), “Standard Practice for Quantitative Accelerated Laboratory Evaluation of Extraction Solutions Containing Ions Leached from Thermal Insulation on Aqueous Corrosion of Metals” (West Conshohocken, PA: ASTM)
ASTM C871 (2018), “Standard Test Methods for Chemical Analysis of Thermal Insulation Materials for Leachable Chloride, Fluoride, Silicate, and Sodium Ions” (West Conshohocken, PA: ASTM)
From building a culture of civility to upskilling en masse, here’s what human resources (HR) professionals can anticipate in 2025.
The world of work is changing at a staggering pace. From changes in talent acquisition practices to the rise in people analytics, to the can’t-be-talked-about-enough impact of artificial intelligence (AI), 2025 is sure to be a year of new opportunities and new challenges driven by the need for the workforce to be increasingly flexible and skilled to meet market demands. With that in mind, the Society for Human Resource Management (SHRM) experts shared their insights on seven major trends that are likely to impact HR in the year ahead.
Skills over Degrees
Momentum is surging around skills-based hiring, which is the idea that workers’ skills and capabilities matter more than their educational background or work history. Focusing on what employees can do—not where or how they learned to do it—widens the talent pool, helps solve skills shortages, and boosts retention, says Justin Ladner, Senior Labor Economist at SHRM.
The practice is catching on quickly: In 2024, 81% of employers practiced skills-based hiring, up from 73% in 2023 and just 56% in 2022, according to research from TestGorilla,1 a talent assessment platform.
“The ongoing labor shortage provides a strong incentive for firms to search for ways to expand their ability to recruit and retain workers,” Ladner says.
Disruptive events such as the pandemic and the subsequent labor shortages, as well as the rise of AI, have taught employers that an adaptable workforce is one of the most critical ingredients in future-proofing an organization.
Therefore, says SHRM Chief Human Resources Officer (CHRO) Jim Link, SHRM-SCP, companies are seeking employees who are persuasive, open to learning, and able to communicate well.
“We used to think about [business] sustainability in terms of things,” Link says. “Going forward, we’re going to think that way about people. Do we have the right people with the right skills and enough workforce numbers for today and tomorrow?”
Some employers will also continue to rethink college degree requirements for certain roles. An analysis by Indeed found the number of job postings requiring at least a 4-year degree fell to 17.8% in January 2024, compared with 20.4% in 2019.2 Of employers who eliminated degree requirements for some roles, 73% said they had successfully hired one or more candidates who previously would not have qualified, SHRM’s 2024 Talent Trends research reveals.3
Do we have the right people with the right skills and enough workforce numbers for today and tomorrow?
Jim Link, SHRM Chief Human Resources Officer
Evolving Skills, Thriving Workforces
The need for updated skills in the workplace is accelerating—so quickly, in fact, that new employees may need more training even before they’ve finished onboarding, says James Atkinson, Vice President, Thought Leadership, at SHRM.
Technology is driving this quickening pace of upskilling and reskilling. Quite simply, in a world where AI exists, employees’ skills can’t remain static. In fact, 83% of HR leaders believe upskilling will be essential for workers to remain competitive in a job market shaped by AI, SHRM data shows.4
As more organizations pursue AI, machine learning, and other advanced technology, they are taking stock of their employees’ skills and trying to “match that, as best they can, to what their future needs are likely to be,” Link says.
Additionally, Atkinson says, employers are realizing the importance of determining how employees can work with technology in a role that’s being transformed, or one that’s just emerging. Organizational growth and employee expectations will also continue to drive upskilling and reskilling.
“The fact that customers are more demanding means companies increasingly need to develop new products, and employees need to be more productive to keep up,” Atkinson says.
Employees are equally eager to stay competitive by updating their skills. According to a 2024 PwC survey, almost half of employees say that having opportunities to learn new skills is a key consideration when deciding whether to change employers.5 “This need for these workers to stay at the top of their game coincides with organizations’ needs to pull in that talent,” Atkinson says.
There’s more to explore and implement. While a majority of employers plan to upskill or reskill employees, according to a 2024 Express Employment Professionals–Harris Poll survey,6 just 29% of organizations have taken proactive measures to train and upskill employees who work alongside AI, SHRM research finds.7
People Analytics Shaping the Future
In a still-tight talent market, organizations must find smart, effective ways to encourage long-term employee loyalty. A potential solution is people analytics,8 the science of using data on employee performance, skills, engagement, and sentiment to predict and shape the future of the workforce.
People analytics can reveal a variety of insights.9 Combing through employee engagement survey data, for example, can help companies determine employee morale or recurring reasons for departure or turnover. People analytics can also identify potential learning and development opportunities, such as skills gaps that may hinder forward momentum.
Link also sees people analytics as an opportunity for employers to provide interventions such as mental health resources before such issues become a crisis.
Currently, HR professionals most commonly use people analytics to assess employee retention and turnover (82%) and for recruitment, interviewing, and hiring (71%), according to the report The Use of People Analytics in Human Resources (SHRM, 2023).10 Some organizations also use AI to identify potential high-performing employees using profiles based on past successful employees. That way, Atkinson says, “They can focus on retaining those employees and helping them grow and thrive.”
Going forward, Atkinson expects more employers to use people data for predictive modeling around workplace planning. “It’s not where a lot of organizations are right now, but it’s an exciting opportunity for the future,” he says.
The Concerning Rise of Incivility
If the world seems less courteous or empathetic lately, you’re not imagining it. SHRM launched its civility campaign11 in 2024 precisely because of “rising concerns about an incivility in society that’s bubbling up and overflowing into the workforce,” Atkinson says.
The SHRM Q3 2024 Civility Index survey of more than 1,600 U.S. workers, conducted August 27 – September 4, 2024, proved these concerns to be well-founded.12 Workers said they experience 190 million acts of incivility per day, 58% of which happen in the workplace. The biggest drivers of incivility were:
Political viewpoints,
Disagreements on social issues,
Generational gaps,
Racial or ethnic differences, and
The direction of U.S. society.
Politics was firmly in mind when SHRM launched its civility campaign in what was the biggest year in history for global elections. “Half the world’s population went through
elections in 2024,” Atkinson says. “And we know with elections in general that you’re pitting parties against each other and pulling out differences.”
Those feelings won’t just disappear in 2025. “Almost half of your employees are going to be disappointed, frustrated, mad,” he adds. “As a leadership team, as an HR professional, you need to recognize that.”
Atkinson recommends having those difficult conversations rather than simply making controversial topics taboo. “It’s not about removing conflict entirely; it’s about how you manage the conflict when it occurs,” he says. “Be clear about what workplace culture you want, and make sure that your leaders model it.”
Communication problems are often at the root of rising incivility, Atkinson says. Take social media, for example, which has made it easier for people to “more quickly engage in uncivil sentiments and not take time to think through alternatives or consequences.”
On top of that, generational differences are making workplace conversations even more difficult, experts say. Older employees may be uncomfortable with younger employees’ desire for more transparent and personal conversations, while younger workers may take constructive criticism as a personal attack. Remote workforces can also make it harder for employees to forge personal connections.
Tackling incivility in the workplace, though, is paramount. Workers who rate their workplaces as uncivil are three times more likely to be dissatisfied with their job, SHRM research has found. In the year ahead, employers may want to try strategies such as encouraging respectful dissent, creating diverse teams, and providing conflict resolution training.13
Employers are also increasingly offering workplace etiquette classes, ResumeBuilder reports,14 with appropriate workplace conversations being at the top of the training agenda.
Be clear about what workplace culture you want, and make sure that your leaders model it.
James Atkinson, SHRM Vice President, Thought Leadership
The Benefits of Financial Wellness
There’s growing momentum among smart employers to thoughtfully consider the role they play in employee wellness. While physical and mental health have been top of mind for years, financial health is now part of the conversation.
It’s become crystal clear how deeply employees’ financial wellness impacts their personal and professional lives, Link says. As a result, more employers are beefing up financial wellness benefits. In 2023, just 14% of U.S. employees had access to financial planning benefits at work.
By 2024, that number doubled to 28%, according to PNC Bank’s Financial Wellness in the Workplace Report.15 By the end of 2026, nearly half of employers are expected to offer a comprehensive financial wellness program, according to Transamerica.16
“Financial wellness is moving from an enhanced benefit to a primary benefit,” Link says. That’s critical, considering that more than half of employees say they are stressed about their finances daily or multiple times a day, according to a survey of 5,000 employees by financial services company ZayZoon.17 The most in-demand financial wellness benefits, according to Morgan Stanley research,18 are:
Assistance with retirement preparation,
Help with financial planning, and
Guidance on goals-based retirement investment planning.
Heading into 2025, employees also increasingly expect financial benefits that are personalized to their needs. Younger employees, for example, may want help saving for a downpayment on a home or managing student loans. Meanwhile, Baby Boomers prioritize financial education, and Millennials and Generation Z favor personalized financial coaching and planning, says Ragan Decker, Ph.D., SHRM-CP, Manager of Executive Network and Enterprise Solutions research at SHRM. While Baby Boomers, Gen Xers, and Millennials all agree that saving for retirement is their top financial goal, Gen Zers’ top priority is boosting their credit score, PNC Bank’s research found.
“This highlights the need for organizations to consider the unique financial needs and preferences of different generations to better support the workforce,” Decker says.
AI’s Impact on Talent Strategy
As AI usage becomes ever more ubiquitous, an increasing number of organizations are harnessing this still-evolving technology to transform talent acquisition. However, that’s a relatively recent development—of the one in four organizations that use AI to support HR-related tasks, nearly two-thirds only began doing so in 2023, according to SHRM’s 2024 Talent Trends: Artificial Intelligence in HR report.
In other words, most organizations have yet to tap into AI’s vast number of potential
applications. Those who are, though, most commonly put AI into play to support recruitment, interviewing, and hiring by streamlining or increasing efficiency. What does that look like in practice?
Nearly two in three companies use AI to develop job descriptions.
More than 42% use it to customize or target job postings to specific groups.
Around two-thirds use AI to review or screen applicant resumes, communicate
with applicants during the interview process, or automate candidate searches.
“By streamlining these tasks, we’re really seeing employees who feel they’re able to be more efficient and effective; and as a result, they’re more engaged,” Link says.
The use of AI can also be a boon to improving diversity in the applicant pool, SHRM’s research shows, with nearly 30% of companies reporting that AI allows them to better tap into underrepresented talent networks.
In addition to talent acquisition, HR professionals are drawing on AI to increase and encourage workforce knowledge and development, identify gaps in employee knowledge, and track employees’ learning and development progress.
“The best employers today are basically offering very large learning management systems (LMSs) so people can tackle any type of learning that they want to have,” Link says.
That is key, he explains, because many younger employees are no longer content to wait years to gain exposure to certain skills or experiences. Employers that give these workers the knowledge they seek may be able to hang onto them longer.
Post-Election Regulatory Shifts
New regulations are introduced every year, but on the heels of a presidential and congressional election, 2025 could give HR professionals a bit of whiplash. Not only are new policies likely to come to the forefront, but it’s possible that existing ones may be scaled back or eliminated altogether.
For example, the new presidential administration could result in either a less or more pro-labor stance, says Emily M. Dickens, J.D., SHRM Chief of Staff, Head of Government Affairs, and Corporate Secretary. If a worker shortage persists, she adds, “it will be very interesting to see how the government handles worker visas to allow workers into the country.”
Potential laws, regulations, and enforcement actions that could affect HR professionals include:
The possibility of intensified workplace enforcement and immigration raids.
The Trump administration letting stand any court decision striking down the Biden administration’s overtime rule or independent contractor status rule. On November 15, 2024, a district court struck down the overtime rule nationwide. Another district court followed in its footsteps, determining on December 30, 2024, in a separate ase, that the rule should be vacated.
The National Labor Relations Board taking a less aggressive approach on existing workplace rules once it has a Republican majority.
State laws and regulations on paid leave, AI, and captive audience meetings.
Our industry faces a workplace reality that’s truly unprecedented: usually four, but sometimes up to six generations working side by side! This diversity brings both amazing opportunities and real challenges, especially in hands-on trades, where passing down knowledge while embracing new practices can make or break your company.
The insulation industry is a perfect example, with seasoned pros with decades of experience working alongside digital natives who bring fresh perspectives on efficiency and technology. Rather than seeing these differences as obstacles, forward-thinking companies recognize complementary strengths that create stronger, more adaptable teams.
Today’s Generational Landscape in Insulation
Today’s workforce spans Baby Boomers to the emerging Gen Alpha, with each generation shaped by different historical events, technologies, and cultural shifts. Here’s how this specifically plays out in insulation.
Baby Boomers (born 1946–1964) bring irreplaceable knowledge about materials, techniques, and relationships built over decades. They’ve weathered changing building codes, insulation standards, and industry practices. When a complex commercial project faces unusual challenges, their experience can provide solutions that no manual can offer.
Generation X (born 1965–1980) serves as a crucial bridge between traditional approaches and newer methods. Their adaptability and practical nature make them excellent problem solvers who can translate between generations while keeping projects on track. They can modify time-tested techniques to meet modern efficiency standards.
Millennials (born 1981–1996) have raised expectations around efficiency, sustainability, and workplace processes. Their commitment to environmental impact aligns perfectly with insulation’s growing focus on energy conservation. They’re asking important questions about why we use certain materials, and they’re pushing for better documentation of procedures.
Generation Z (born 1997–2012)brings digital fluency that transforms how we document, manage, and communicate about projects. Their comfort with technology enables insulation contractors to implement advanced thermal imaging, energy modeling, and project tracking systems that improve accuracy and client satisfaction.
Beyond Stereotypes: Finding the Strengths in Each Generation
In my book, The Retention Formula: Stop the Turnover Crisis, Harmonize the Generations, and Skyrocket Profits, I explore how generational differences that seem problematic often reveal underlying strengths when viewed differently.
For example, when Baby Boomers get labeled as “resistant to change,” they’re actually demonstrating valuable risk assessment skills, honed through experience. In insulation, where improper installation can lead to serious moisture issues or energy losses, this cautious approach prevents costly mistakes. A Boomer asking “have we tested this new material in high-humidity environments?” isn’t being difficult—they’re saving you future callbacks.
Generation X’s “skepticism” functions as crucial critical thinking that identifies potential problems before they become disasters. Their questioning nature ensures insulation specifications truly meet project requirements, rather than just following standard approaches. When a Gen Xer asks why we’re using the same R-value in two different climate zones, they’re helping prevent future performance issues.
Millennial“entitlement” is better understood as healthy standard-setting and clear communication. Their willingness to request better training, documentation, and work processes has elevated quality control throughout the field. When Millennials ask for more comprehensive training on a new spray foam system, they’re not being demanding they’re ensuring proper installation.
Generation Z’s “digital dependence” translates to efficiency enhancement through smart technology adoption. Their comfort with digital tools has accelerated the industry’s use of thermal imaging, energy modeling software, and project management platforms. When a Gen Z team member suggests using an app to document pre-installation conditions, they’re creating valuable project records.
The Insulation Industry’s Generational Advantage
Technical trades like insulation actually hold unique advantages in bridging generational differences.
Hands-on learning serves as a powerful common ground. Regardless of age, insulation professionals share the experience of developing skills through direct application. Whether it’s properly fitting pipe insulation or achieving the perfect spray foam application, these tactile skills create mutual respect.
Safety culture provides shared values across generations. From veteran installers to newer team members, the commitment to proper protective equipment and correct procedures creates a foundation of common purpose.
Visible results create pride that transcends age differences. All generations can appreciate walking through a completed project knowing their work will improve comfort and save energy for decades to come.
Technical knowledge flows in multiple directions. While older workers can teach material specifications and installation techniques, younger team members often help implement new digital and documentation technologies that improve efficiency.
Leadership Approaches that Work across Generations
Leadership styles have evolved dramatically over the past 3 decades. Here’s how to connect with different age groups.
Baby Boomersoften respond best to clearly defined structures and recognition for expertise. In insulation companies, this might mean creating formal mentorship programs that honor their experience while documenting their knowledge for future teams.
Generation X typically values autonomy and results-oriented leadership, with minimal micromanagement. Allowing these team members to solve complex insulation challenges their own way often yields innovative solutions, especially on retrofit projects with unexpected conditions.
Millennials generally seek purpose-driven leadership that connects daily tasks to larger goals. Emphasizing how insulation work directly contributes to energy conservation and environmental sustainability makes work more meaningful and improves retention.
Generation Zresponds to authentic leadership that embraces technology and social responsibility. Involving these team members in modernizing documentation systems or community outreach initiatives leverages their natural strengths while building commitment.
Practical Strategies from the Retention Formula
Here are several approaches derived from my research that insulation industry leaders can
implement right away.
Create cross-generational project teams that deliberately mix experience levels and technological aptitudes. Pair a veteran insulator with newer team members on complex projects, encouraging knowledge transfer while allowing space for innovation. For example, have an experienced installer lead the technical aspects, while a younger team member handles digital documentation.
Develop training systems that work for different learning styles. While written manuals might work for some, others learn better through videos or hands-on demonstrations. Creating a library of installation techniques that includes all these formats ensures everyone can access information in ways that work for them.
Establish communication protocols that respect diverse preferences. Some team members prefer in-person discussions about project changes, while others respond better to digital documentation. Creating consistent expectations around which channels are used for different types of information helps everyone stay informed.
Implement recognition approaches that resonate across generations.Public acknowledgment works for some, while others value additional responsibility or professional development. Understanding individual preferences helps ensure everyone feels valued for their contributions.
The Competitive Edge of Generational Harmony
Insulation companies that successfully bridge generational divides gain significant advantages, including:
Effective knowledge transfer that preserves critical expertise before retirement;
Enhanced innovation through combining experience with fresh perspectives;
Improved client relations through diverse communication styles;
Reduced turnover, as team members across generations feel valued; and
Greater adaptability to changing market conditions and technologies.
Building Teams that Last
The insulation industry stands at a pivotal moment where generational diversity can either become a source of conflict or a catalyst for growth. By recognizing what each generation brings to the table, and creating systems that leverage these complementary abilities, forward-thinking leaders turn potential friction points into powerful collaboration.
This approach to generational harmony offers not just a theoretical model but also a practical roadmap for building stronger teams. The companies that master this won’t just survive the current laborretention challenges—they’ll thrive through the
combined wisdom, innovation, and technical
excellence that only a truly collaborative,
multi-generational workforce can provide.
The Construction Industry Round Table (CIRT) is composed of approximately 130 CEOs from the architectural, engineering, and construction firms doing business in the United States. The first quarter 2025 CIRT Sentiment Index increased to 67.9 from 64.1 in the fourth quarter of 2024, reflecting optimism and expectations for the industry not seen since 2021–2022. However, the outlook isn’t as positive among those focused solely on design, with the Design Index falling to 61.8 from 71.1 (see Figure 1).
The last time the Design Index and Sentiment Index diverged this significantly was during the economic turbulence of COVID-19 5 years ago. Since then, the design segment has consistently led the trend—rising in expanding markets and declining in those expected to contract. This current divergence could be a signal of something significant and, at the least, suggests that the lag between front-end design activity and its downstream impact on construction has widened. Notably, the rapid and substantial paradigm shifts introduced by the new administration are already being felt in the planning and design stages, though not yet in the subsequent building phase. Either way, this remains a critical trend to monitor throughout the remainder of 2025.
This quarter, CIRT members report slight declines in sentiment across most economic components, including the overall U.S. economy, regional economies where members operate, and members’ own construction businesses—although optimism is up for the nonresidential sector. Respondents also report stronger backlogs and productivity but anticipate higher labor and material costs in the coming months.
Compared to the previous quarter, design sentiment toward individual segments improved, driven by strengthened expectations in residential work, with continued optimism in health care, education, predesign work, and consulting planning. In contrast, sentiment weakened in heavy civil, transportation, and commercial design. Construction sentiment remains stable overall but varies by segment: commercial, office, lodging, education, and health care sentiment improved, but for manufacturing, public works, industrial, transportation, and international expectations, it declined (see Figure 2).
CIRT members were asked this quarter to respond to current-issue questions focused on their backlogs, capacity and hiring goals, procurement, delivery methods, selection criteria and top challenges expected in 2025.
Backlog levels remain strong, with nearly half of respondents maintaining backlogs of 19 months or longer, though firms must navigate labor constraints to effectively meet demand. Firm capacity has declined since 2024, with more than half of respondents reporting labor shortages relative to backlog needs, leading to mixed hiring outlooks. While labor availability remains the top challenge for 2025, geopolitical instability, including trade, tariffs, and commerce disruptions, has emerged as a growing concern, particularly considering recent political transitions.
Procurement trends highlight inconsistent technology adoption and prolonged decision- making, with major projects often taking longer than 6 months for firms to finalize. Clients continue to prioritize cost and experience in making selection decisions, while quality and innovation remain secondary considerations. Design-bid-build remains the dominant delivery method, although interest in alternative models such as design-build and construction manager at risk is increasing, driven by risk transfer, speed to market, and regulatory considerations.
Among the industries represented by CIRT’s members, segment expectations remain mixed. In the near-term, design expectations are weakened across most sectors except transportation, while long-term optimism is up for international work. Conversely, sentiment has shifted from expansion to contraction for consulting planning, industrial, heavy civil, residential, and predesign work looking to 2026. Within the construction sector, manufacturing, industrial, and transportation show notable strength over the last quarter. Moderate improvements have also emerged in commercial, lodging, health care, international, office. and public works. However, education has weakened and, along with lodging and office, is expected to remain challenged into next year.
NIA offers hundreds of valuable resources to support both members and insulation end users. To help you navigate these offerings, we've asked each member of the NIA team to highlight their two most essential resources—one for members and one for external audiences. Explore these carefully curated recommendations to discover powerful tools you may have overlooked or find new ways to leverage familiar resources with your team, colleagues, and customers.
For NIA Members: NIA’s Education Center
The Education Center is a great tool for companies looking for flexible, on-demand training. With more than 70 continuously updated courses, there’s something for every mechanical insulation professional. To make it even easier, we’ve created a helpful guide with tailored course recommendations for estimating, project management, insulation training, health and safety, HR, and IT. Ensure your team is gaining the knowledge they need with NIA’s Education Center! (Browse the courses at www.niaeducationcenter.org.)
For Insulation End Users: NIA’s Insulation Energy Appraisal Program™ (IEAP)
IEAP is a 2-day course that teaches students how to determine the optimal insulation thickness and corresponding energy and dollar savings for a project using the 3E Plus® software. The program was designed to teach students the necessary information to give facility managers a better understanding of the true dollar and performance value of their insulated systems. (Visit www.insulation.org/appraiser to learn more.)
For NIA Members: NIA Committees
NIA boasts a robust list of committees, addressing each of NIA’s member industry types, and current issues such as health and safety, technical issues, and more. Most committee meetings take place during our Fall Summit and Annual Convention. Participation in committees allows members to share their expertise, experiences, and industry knowledge, learn about the industry, and make connections with industry colleagues. It’s a great way to get involved in NIA! (Visit www.insulation.org/committees to learn more.)
For Insulation End Users: Mechanical Insulation Design Guide
If you’ve ever questioned why a mechanical system should be insulated, what parts of the mechanical system should be insulated, what factors affect the decision to insulate, and what materials are appropriate for the job, NIA’s Mechanical Insulation Design Guide is a great resource. Designed to assist the novice or the knowledgeable user alike in the design, selection, specification, installation, and maintenance of mechanical insulation, the Design Guide is continually updated with the most current and complete information. (For more information about the Design Guide, visit www.insulation.org/training-tools/systemdesign.)
For NIA Members: E-News Bulletin
This twice-a-month email provides a quick snapshot of the latest news, information, and deadlines for NIA members. We know you are busy, and to ensure you never miss out on membership benefits and industry news, you can find the latest issue in three places on our website: the homepage News section, homepage rotating images, and the E-News Bulletin webpage. (Visit www.insulation.org/enb to see the latest edition and subscribe.)
For Insulation End Users: Carbon Reduction Web Page
Our Carbon Reduction web page serves as your one-stop resource for demonstrating insulation's impact on energy efficiency and emissions reduction. Access research, data, articles, and webinars all in one place to help showcase the benefits to your clients. (Bookmark www.insulation.org/carbon for easy reference whenever you need it.)
For NIA Members: The Mechanical Insulation Installation Video Series
This series is an easy-to-follow, user-friendly visual resource for anyone in mechanical insulation installation. Each video provides a basic how-to guide for different project applications for Calcium Silicate and Perlite, Cellular Foam, Cellular Glass, Elastomeric and Polyolefin, Fiber Glass, Mineral Wool, Removable/Reusable Flexible Insulation Covers, and Fasteners. Videos are available to stream online or view on DVD, as a compilation series or by individual DVD, and in both English and Spanish. When I joined the NIA staff, these videos were so useful as I learned about the industry. (Learn more at www.insulation.org/products.)
For Insulation End Users: NIA’s Online Membership Directory
The online Membership Directory provides an accessible platform for end users to find important and relevant information about more than 700 NIA member locations that serve the commercial, industrial, and mechanical insulation industries. With options to search by location, member type, products, or specialties, end users can easily locate the company that best meets their needs. (Access the online directory at www.insulation.org/directory.)
For NIA Members: NIA’s Annual Convention
Attending NIA’s Annual Convention provides access to hundreds of decision-makers within the industry on a national level at one location. You will be meeting potential customers, bonding with existing customers, receiving industry-specific information and news of the latest technologies during sessions, participating in industry specific committee meetings, enjoying amazing locations, and it is just plain old fun. (Learn more at www.insulation.org/events.)
For Insulation End Users: Insulation Outlook Magazine and Article Database
Insulation Outlook is published 11 times a year and focuses exclusively on mechanical insulation, its benefits, proper design, maintenance, and best practices for thermal systems. In addition to the printed magazine, we have an online searchable article database, which allows the user to pull articles from hundreds of topics and authors. If you have a question on mechanical insulation, there is a very high probability you can find the answer in one of these articles. The articles contain the author’s information, providing you with an expert contact. (Search articles at www.insulation.org/io/archives.)
For NIA Members: Insulation Outlook Online Image Gallery
Our image gallery features each issue of the magazine and highlights each article, offering a great platform for NIA member companies and authors to showcase their work. It allows users to browse through images, enriching the overall experience, and amplifying the magazine’s message about the power of insulation through a visual experience. (See the gallery at www.insulation.org/io/image-gallery.)
For Insulation End Users: Insulation Outlook Current Online Issue
This web page showcases the latest issue of our publication, enticing readers with a preview of the content and helping you understand the magazine's structure, ensuring a positive user experience. The magazine's cover image is featured at the top of the page, inviting all readers to get a sense of what's inside! (View the online version of Insulation Outlook at www.insulation.org/io/current-issue.)
For NIA Members: NIA's Thermal Insulation Inspector
Certification™ Program
This 4-day course educates insulation inspectors on how to evaluate installation work and determine whether it is compliant with mechanical insulation specifications. We are seeing an increasing requirement for contractors to have Certified Thermal Insulation Inspectors on their payroll, particularly in data centers and LNG projects. It would be helpful for you to have at least one Certified Inspector as part of your team! (Visit www.insulation.org/inspector to learn more.)
For Insulation End Users: Certified Inspectors and Certified Appraisers
Lists of Certified Inspectors and Appraisers are available on NIA’s website, with options to search by location, last name, or company. Insulation end users can easily find a trained and certified professional in your area and for your specific project. (Visit www.insulationinspectors.org and www.insulation.org/findanappraiser.)
Whether you're a seasoned industry professional or new to mechanical insulation, NIA's diverse resources provide the knowledge, connections, and tools needed to succeed in today's market. From certification programs that validate expertise to educational materials that build fundamental skills, these staff-selected resources represent just a fraction of what NIA offers. We encourage you to explore these recommendations and discover how they can enhance your professional growth and business success. For assistance learning more about the resource recommendations above and discovering the additional resources that NIA offers for your specific needs, contact niainfo@insulation.org—our staff is ready to connect you with the perfect tools to meet your challenges.
