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Insulation Revolution: Charting the Progress of Mechanical Insulation in the Year 2024

Construction is often viewed as a laggard among U.S. industries in terms of pace of change and adaptation to new processes and technologies. For instance, drive by the typical road construction project and one may view a jobsite that looks virtually identical to its counterpart 5 or more decades ago. There is often one person working a heavy piece of equipment, digging a hole where people once drove. Others are standing around. Undoubtedly, they play a role, but it is not clear what that role would be. Finally, there is an individual standing with a sign that alternates between “stop” and “slow.” That sums up much of the construction world nicely.

A construction project that suffers cost overruns and schedule delays would be considered par for the course, as opposed to a bogey or double bogey. And such phenomena are not unique to the United States. According to Bent Flyvbjerg and Dan Gardner’s book How Big Things Get Done, based on the performance of 16,000 public and private projects of various types across multiple countries, mean project cost overruns were 238% for nuclear storage, 120% for nuclear power, 75% for hydroelectric dams, 34% for oil and gas, 16% for fossil thermal power, 13% for wind power, and 8% for energy transmission.

Those cost overruns come atop significant known increases in costs sustained in recent years. For instance, according to the producer price index for new industrial building construction, costs rose 40% during the 4-year period spanning from 2019 to 2023.

Thankfully, mechanical insulation has largely managed to defy such patterns. Standing in contrast to much of the construction industry’s dynamic, mechanical insulation represents a cornerstone of innovation as we move through 2024. Though often overlooked, this segment of the economy plays a crucial role in the inner workings and functionality of a wide range of facilities. As has been the case in the past, the industry has often changed and adapted alongside the broader economy, especially with an increasing focus on sustainability and energy optimization, as well as advancement in material sciences.

In the commercial sector in particular, mechanical insulation has emerged as a non negotiable aspect of many projects, including in the large infrastructures of corporate buildings and headquarters, retail complexes, and medical facilities. It is a key player in HVAC systems, themselves a critical element in large and expansive projects. Likewise, in the industrial sphere, from power plants to manufacturing facilities, insulation supplies a technical backbone by maintaining proper temperatures and enhancing workforce safety. With America rebuilding its supply chains, energy generation, and distribution infrastructure, there will be even greater call for reliable thermal management solutions going forward.

The move toward more efficient solutions and innovation has not slowed in recent years. Materials such as aerogels, vacuum-insulated panels, and supercritical foam technologies are setting new benchmarks for thermal efficiency and environmental compatibility. Moreover, these new technologies do more than enhance performance. They can also alleviate and reduce rising concerns regarding construction’s environmental footprint.

The regulatory side of the equation also must be considered. The current landscape is incorporating increasingly stringent building codes and standards, primarily intended to reduce emissions and increase fire safety. These changes, however, are not uniform across the country, varying widely across states. This poses a problem for industry professionals who must navigate the matrix of regulations while also remaining flexible and well informed to retain competitive advantages, including along the dimension of cost.

For engineers, specifiers, designers, and other stakeholders entrenched in the world of mechanical insulation, understanding and adapting to these potential shifts is essential. Those who adapt will prosper. Those who fail to do so will professionally perish. Exploring these challenges and the best way to deal with them will provide all those involved with the greatest chance to succeed not only in 2024 but for years to come. The balance of this article considers three megatrends that could help separate the winners from the others.

Artificial Intelligence: A New Frontier that No One Fully Understands

What was once the buzz phrase of 2023 has now become a catalyst for the economy, including for the mechanical insulation industry. Artificial intelligence (AI) continues to revolutionize the way the construction industry approaches insulation, from design to implementation and maintenance.

In the category of design, AI’s biggest impact will be revolutionary. Tapping into its ability to deploy sophisticated algorithms and programs, AI has the potential to simulate and analyze various insulation materials and configurations. Moreover, it can do this with extreme speed and high levels of precision.

The mechanical insulation industry has existing tools to predict thermal performance, optimize along the dimension of insulation thickness, and make better decisions regarding what materials to use but, combined with AI, these tools become exponentially more powerful. Its genius lies in its capacity to account for numerous interacting variables at once, including climate conditions, material response, and energy utilization. Remarkably, AI not only can account for environmental performance in its computations, but also simultaneously for financial performance. Anyone working in mechanical insulation who does not benefit from such analytical prowess will suffer massive competitive disadvantage. They will also be supplying their customers with sub-optimal outcomes.

AI can even extend the operational life of current and future insulation systems. By turning data into foresight, AI can determine when maintenance is required.  However, this may require a paradigm shift in the type of data and means of data collection. The data needed for predictive maintenance may not exist in a form readily available for AI. For example, testing and models are currently being performed to predict timeframes for the development of corrosion under insulation (CUI), however that data is not widely available yet. When this data is collected for AI implementation, and done properly, this will avert long downtimes and extend the overall life spans of systems, saving property owners massively. In the context of industrial facilities, AI can also detect irregularities in performance, potentially spotting issues with machinery and equipment before they escalate into costly or deadly problems. This proactive approach ensures that both insulation and machinery operate at high levels of efficiency, maximizing energy conservation while minimizing costs.

For commercial projects, AI-integrated insulation systems are part of a broader system. They communicate with building management’s systems, creating harmonic efficiency. AI algorithms can analyze various data from within a building and dynamically adjust “active” insulation in building envelope insulation properties when and as needed. This helps ensure the comfort of tenants while also optimizing energy usage. What was once science fiction has become our new reality, but it has also become a competitive battleground that will segregate the leading edge from the also-rans.

One of the principal objectives of businesspeople is to learn from each experience to improve performance. AI is not only able to customize and respond, it learns from the past and integrates project-based learning neatly into the future. In other words, those who utilize AI in their project design and delivery are also positioned to navigate learning curves more quickly, staying ahead of the competition while positioning younger people to master their trades with greater rapidity.

Nothing worthwhile is easy. AI is complicated. Learning and implementing these new AI driven systems will not be simple. It will test both managerial and front-line workers. AI is more than a new technology; it is a paradigm shift, set to fundamentally alter how the mechanical insulation industry operates. Nonetheless, it is at least theoretically possible for one to become so enamored by the capabilities of AI that one forgets the contributions of other technological advances, including with respect to material and mechanical science.

Cutting-Edge Materials + Smart Technologies = A Radically Different Future Available Now

Similarly, the emergence of new materials in the insulation manufacturing process is helping project managers cut costs and emerge as more eco-friendly. For instance, aerogels provide a high level of thermal resistance while remaining relatively lightweight. Nicknamed “frozen smoke” for its ethereal appearance, aerogels have been used by NASA to catch tiny particles left behind by comets. Other bio-based compounds are also finding a niche in the insulation market, providing alternatives to traditional materials. As these materials become more commonplace, the need for fossil fuel–based insulation will decrease, further reducing the industry’s carbon footprint in the process. As another example of innovation, vacuum-insulated panels supply low thermal conductivity, offering R-values in the range of R-30 per inch of thickness.

Unlike AI, which embraces an active role in insulation systems, smart technologies aid building managers by supplying real-time monitoring and energy tracking. Sensors installed within the building relay metrics such as temperature, humidity, and energy usage. Proactive maintenance can keep energy costs under control, provide a comfortable climate for building tenants, and prevent small problems from escalating into larger (and more expensive) problems.

Analytically, separating smart technologies from AI is an artifice. It makes as much sense as trying to discuss Taylor Swift without including Travis Kelce. Among other things, AI will supply insights into optimal material use, technological mix, and predicted environmental and economic outcomes.

Regulatory Overload

If change is good, then those impacted by regulatory shifts must be loving life. Mechanical insulation stakeholders find themselves in a precarious position in 2024, facing an increasingly complex and intricate regulatory framework that seeks to move the industry rapidly toward greater environmental sustainability. Coming years will undoubtedly feature a prominent shift in the way the construction industry operates for several reasons, including attempts to at least partially offset the massive delivery cost increases of the past several years, as well as to satisfy environmental imperatives.

In the past, the primary focus on environmental regulation was on energy efficiency. Today’s regulations are more all-encompassing, embracing a more holistic approach to sustainability. Aspects of the production process that were once largely ignored by regulators are now at the heart of the conversation, including the types of materials used and from where they are sourced.

Many regulators have embraced the concept of a “circular economy,” a theme more likely to impact mechanical insulation stakeholders. According to the Ellen MacArthur Foundation, a circular economy is based on three principles: 1) eliminate waste and pollution, 2) circulate products and materials (at their highest value), and 3) regenerate nature. The idea behind this is to move away from the “take-make-dispose” model that has been a construction industry hallmark. Rather than take-make-dispose, materials would be continuously reused and recycled from one project to the next. The objectives are obvious—use less material, produce less waste, and deploy less energy. But while the principle is straightforward, the practice is not.

For those bidding on projects, emphasizing circular economy principles may be a pathway to securing victory without sacrificing pricing power and margins. Guess what? AI may be able to help determine how practice and principle can find their way into alignment.

From Where Will Demand for Industry Services Emerge?

To this point, this article has focused on the supply side of the mechanical insulation industry equation, but there is also market demand to consider. As usual, market demand for industry services and capital goods will depend on several factors beyond the reach of the construction industry itself.

In America, the mechanical insulation market is observing expanding demand from a handful of segments that are especially well positioned to grow in the future. Among these are manufacturing, data centers, and health care. Supply chains are coming back to the United States. While that has driven up costs and rendered America’s shortages of skilled tradespeople even more apparent, there is little doubt that global manufacturers will continue to pour more capital into the United States in order to simplify logistics, take advantage of ongoing infrastructure improvements, better protect intellectual property, limit the intrusion of foreign governments, and avail themselves of massive public subsidies. Among the manufacturing segments generating the most construction activity are chip production facilities, and battery and electric vehicle plants.

Data centers will also be a source of massive demand for mechanical insulation solutions, in part because of (what else?) AI. Data centers produce an abundance of heat that must be managed. For its part, health care also stands to be a prime driver of activity. Health-care facilities must be temperature precise and stable. Demand for them will continue to expand as America continues to age, driving up health-care utilization in the process.

Beyond the United States, demand in the global insulation market also stands to be elevated. Many developing countries will require mechanical insulation to support the transformational changes taking place within their economies; including India, with its rapid industrialization and terrible air quality. Regulatory demands are likely to play an outsized role in Europe, where governments are racing both toward net zero and to eliminate dependence on fossil fuels, including those supplied by the likes of Russia and Iran.

Looking Ahead

The world of mechanical insulation is undergoing a revolution. There is no way to avoid it. Between AI, materials science, environmental regulations, mechanical innovations, and a desire to massively drive down costs, those who stand still will falter, while those who change with the times will achieve success. That is how life works.

Thankfully, change—at least occasionally—comes with benefits. Innovations in mechanical insulation stand to make the world greener, cleaner, and more affordable. Under those circumstances, everyone wins.

 

 

NIA Sites > Insulation Outlook Magazine > Global

State of Decarbonization Report: Spotlight on Retrofitting

Opportunities in Retrofit and Renovation of Existing Buildings

Addressing commercial typology trends, organizational commitments, levers of transformation, and decarbonization technologies, the report covers a lot of ground. The section “Retrofit and Renovation” discusses how making the existing building stock greener and more energy efficient will help us reach climate goals. The report states:

Retro-commissioning (RCx) is a valuable tool for identifying and maximizing potential
energy savings. For example, every 1% of retro-commissioning market penetration results in energy savings of almost four billion kBtu, the equivalent of over 830,000 metric tons of CO2 e per year—more than the average of two U.S. natural gas-fired power plants operating for an entire year.

According to the data, growth in commercial sector renovations and retrofits is projected to increase up to 11% annually by 2027 with additional funding from the Inflation Reduction Act (IRA).

“IRA amendments to the commercial building incentive known as Section 179D update the financial benefits for energy efficiency retrofits to existing buildings,” shares the report, explaining that buildings constructed before 1980 that have not been renovated since 2000 make up 37% of the national gross commercial floor area; 47% of the tax deductions provided under Section 179D are tied to these buildings.

“If all existing commercial buildings in the United States were retrofitted with energy efficiency upgrades in compliance with their respective states’ current energy code, $314B of tax deductions could be recognized, resulting in $66B in net total tax savings,” estimates the report.

With subsections on whole life carbon savings, building ownership and occupancy, funding and incentives, and commissioning and retro-commissioning market penetration, the report paints a picture of just how many opportunities exist to decarbonize through existing buildings.

For more insights on retrofitting trends and opportunities, explore the State of Decarbonization: Progress in U.S. Commercial Buildings 2023 at
https://www.usgbc.org/resources/state-decarbonization-progress-us-commercial-buildings-2023.

NIA Sites > Insulation Outlook Magazine > Global

New USGBC Report Says U.S. Has the Necessary Tools to Reach Climate Goals

A first-of-its kind report released in early December 2023 by the U.S. Green Building Council (USGBC), an authority on green building and the global developer of the LEED green building program, reviews 30 years of data from the U.S. commercial real estate sector. The State of Decarbonization: Progress in U.S. Commercial Buildings 2023, released at the Conference of the Parties (COP) summit, found the U.S. has made vital, yet unequal, progress in decarbonizing commercial real estate. The report identifies levers and outlines pathways for all 50 states to achieve decarbonization targets.

Produced in collaboration with the global sustainable development firm Arup, the inaugural State of Decarbonization report is the first ever to deliver both key historical data and targeted opportunities for future improvement. Importantly, the report identified high-opportunity areas that can be decarbonized faster, such as deep retrofits in refrigerated warehouses, where emissions grew in recent years; and older commercial buildings, where pre-1980 buildings account for nearly 40% of gross commercial floor area in the United States and could utilize nearly half of the expanded commercial energy efficiency tax deduction in 2022’s Inflation Reduction Act, a key lever for decarbonization, per the report.

The report underscores that the United States has the tools it needs to reduce building-related emissions, and new federal funds provide the real estate sector with a unique, immediate opportunity to deploy critical improvements swiftly and widely across the nation. For example, the investments from the Inflation Reduction Act’s clean energy and climate action provisions could enable the building sector to meet its proportional share of the Paris target early, in 2029.

With proven decarbonization strategies long championed by USGBC becoming available and cost-competitive, commercial buildings have become 37% less carbon intensive and 26% more energy efficient on average. However, despite these significant reductions, the report found that the overall sector emissions of commercial buildings have remained flat since 1990, a result of significant increases in total building floor area.

“This report confirms our progress to date on U.S. commercial building decarbonization and serves as a powerful call to deploy proven solutions at greater speed and scale across all sectors and communities,” said Peter Templeton, President and CEO, USGBC. “We can and must work together—with partners across and beyond the building industry—to seize immediate opportunities for achieving our urgent goals.”

“This report is a crucial resource in understanding where we are presently, where we need to be in the very near future, and the strategies we can leverage to help us meet our critical climate goals,” said Robert Kay, Arup’s Americas Climate and Sustainability Services Leader. “We must accelerate decarbonization progress from where each city and state is at right now in order to reach our objectives.”

The State of Decarbonization report was released as USGBC and other global leaders convened at COP28 in Dubai, United Arab Emirates. USGBC has participated in the annual COP meeting since Copenhagen in 2009, where the organization was a lone but influential voice bringing much-needed attention to the central role that buildings must play in addressing climate change.

With full citations, sources, and methodology provided, report analyses focus on energy and operational emissions where data are more robust and actions more mature. This report complements critical new resources for building decarbonization, including the RMI-USGBC report Driving Action on Embodied Carbon in Buildings, released in late September 2023 (available at http://tinyurl.com/4ruzft2n). It will help policymakers, advocates, and companies understand the landscape and develop strategies to achieve the urgent scale of action needed.

Alongside the report, USGBC has announced LEED v5, the forthcoming leadership standard that aligns building decarbonization action with the urgency of the 2030 and 2050 Paris Agreement targets while also addressing critical imperatives related to human health, resilience, biodiversity, and equity.

The State of Decarbonization: Progress in U.S. Commercial Buildings 2023 report can be read in full at http://tinyurl.com/msrmywnj.

NIA Sites > Insulation Outlook Magazine > Global

Final Independent Contractor Rule Issued

The Department of Labor’s Wage and Hour Division has announced the final rule on worker classification, titled “Employee or Independent Contractor Classification Under the Fair Labor Standards Act [FLSA],” scheduled to take effect March 11.

This rule aims to clarify worker status as either employee or independent contractor under the FLSA. It rescinds the 2021 Independent Contractor Rule, which designated “core factors” to evaluate in determining an employment relationship. The new rule considers
multiple factors equally, including:

  • Opportunity for Profit or Loss Depending on Managerial Skill: This considers whether the worker can make money or lose money based on their ability to manage their work effectively, including using their judgment and business skills.
  • Investments by the Worker and the Employer: This factor considers whether the worker or the employer has invested money or resources in a way that resembles a business investment or a more typical worker’s investment.
  • Degree of Permanence of the Work Relationship: This considers the working relationship’s status as long term or ongoing.
  • Nature and Degree of Control: This factor considers whether the potential employer determines the worker’s work schedule, directly supervises how the work is carried out, or imposes restrictions on the worker’s ability to work for other employers.
  • The Extent to which the Work Performed Is an Integral Part of the Employer’s Business: This factor considers whether the specific tasks performed are integral to the overall functioning of the business.
  • Skill and Initiative: This point considers whether the worker uses specialized skills to perform the work, and whether those skills resemble managing a business rather than simply performing a job.
  • Additional Factors: This allows for consideration of other factors not listed that may be relevant to indicate whether the worker is in business for themself, as opposed to being economically dependent on the potential employer for work.

Defining an Independent Contractor

As used in the FLSA, the term “independent contractor” refers to workers who, as a matter of economic reality, are not economically dependent on an employer for work and are in business for themselves. Such workers play an important role in the economy and are commonly referred to by different titles, including independent contractor, self-employed worker, and freelancer. This rule is not intended to disrupt the businesses of independent contractors who are, as a matter of economic reality, in business for themselves.

Source: www.federalregister.gov/documents/2024/01/10/2024-00067/employee-or-
independent-contractor-classification-under-the-fair-labor-standards-act

When the rule was initially proposed, SHRM expressed concerns around the lack of clarity over how to evaluate a worker relationship, which could lead to ambiguity in worker classification. SHRM had advocated for retaining the 2021 classification test, emphasizing its clarity and consistency.

SHRM remains committed to providing updates and resources to help human resources (HR) professionals navigate this final rule, and it continues advocacy efforts aimed at supporting your needs and concerns. For additional summaries of this act or other HR policies, visit SHRM.org.

For more information on the Employee or Independent Contractor Classification Under the Fair Labor Standards Act, visit http://tinyurl.com/5yzz7b64.

NIA Sites > Insulation Outlook Magazine > Global

National Safety Council Releases Inaugural Report on Workplace Injury Progress

Musculoskeletal disorders, or MSDs, are the most common workplace injury, costing U.S. businesses in the private sector nearly $17 billion a year, according to the Liberty Mutual Workplace Safety Index. Recognizing the impact these injuries have on workers and businesses, the National Safety Council (NSC) developed the MSD Solutions Index, an annual benchmarking survey, and recently released the inaugural findings in the MSD Solutions Index Pledge Community Report, which focuses on three main pledge commitments of advancing MSD risk reduction, innovation and collaboration, and safety culture.

Respondents represented the manufacturing, professional, transportation and warehousing, healthcare, utilities, and several other industries. Organizations received an overall index result, as well as results for the three pledge commitment subsections, that fell into one of five results categories representing MSD prevention maturity: novice, reactive, advancing, proactive, and innovating.

Major insights included:

  • No organization earned a perfect score, underscoring the complexity of MSDs and their prevention. However, 85% of organizations received overall results in the advancing (39%) or proactive (46%) categories, while 15% were in the reactive category. Further, 54% rated their workplace’s ability to prevent MSDs as either very good or excellent.
  • For the three subsections:
    • Risk Reduction: 44% of organizations received a result of advancing.
    • Safety Culture: Respondents showed slightly higher average scores, with 42% in the proactive category.
    • Innovation and Collaboration: Overall results demonstrated slightly lower average scores, with 31% scoring as reactive, though more than half of organizations exhibited advancing, proactive, or innovating results.
  • Larger organizations, which have more than 1,000 employees, are generally more effective at mitigating MSD risk, as they are more likely to have mature, long-standing safety programs and resources to adopt more complex MSD solutions and technology. In contrast, the majority of small- to medium-sized businesses established their safety program in the last 5 years.
  • Eight in 10 pledge members have some form of MSD prevention or ergonomics program in place, and 65% have methods for tracking MSD rates across their workplace.
  • Nearly two-thirds of organizations regularly conduct employee perception surveys, and nearly 90% have methods in place for workers to share suggestions for safety improvements. Notably, the MSD Solutions Index showed that when it comes to safety decisions related to workstation design, employees’ physical work environment, and workflow, frontline workers are regularly consulted on these issues, which leads to stronger safety cultures.
  • Nearly 85% of organizations reported that psychosocial risk factors contribute to MSDs in their workplace. These risk factors include things like mental health, fatigue, lack of tracking, and lack of personnel and proper equipment or tools.
  • More than 80% are currently using technology in their workplace to prevent MSDs, and just as many are effective at ensuring these best practices are broadcast widely across their organizations.

In addition, the report outlined several steps and actions organizations should take, including:

  • Engaging senior leadership, designating an MSD solutions champion to represent the workforce, and creating and empowering an MSD solutions team to collaborate throughout an organization;
  • Collecting and responding to employee feedback regularly and measuring the progress of an MSD program and safety culture, and tracking the impact, solutions effectiveness, return on investment, and year-over-year change;
  • Identifying risk factors with involvement from frontline workers and implementing appropriate changes; and
  • Ensuring MSD solutions are equitable for all employees.

To learn more about these efforts, visit www.nsc.org/msd.

NIA Sites > Insulation Outlook Magazine > Global

Top 4 Construction Trends for 2024 and Beyond

The construction industry is considered one of the true pillars of the global economy. In the eyes of many, as the construction industry goes, so goes the world. Millions of people rely on this segment for employment, and the incomes derived from its jobs cycle through economies across the globe. For this reason and so many others, the condition of the construction industry is always in the crosshairs of financial and economic thought leaders. This segment is that important, but it is not immune to trends.

As in any other part of the business world, trends affect the construction industry. Managing them is one of the many factors that separate the market leaders from the rest of the pack, still trying to make their mark and find their way in this critical yet ultra-competitive economic space. This article reviews four of the top trends construction professionals should remain abreast of for 2024 and beyond.

  1. Adopting the Latest Technologies
    In the early stages, when technology began knocking on the doors of the construction industry, professionals were hesitant to infuse it into their mix. Most held fast to the tried-and-true principles and methods that had shaped the industry for centuries. All that has changed, as more and more are beginning to see the value technology brings to the table and are rapidly adopting it. Several factors are driving this shift, with the increasing complexity of projects, the need for efficiency, and recognized improvements in communications leading the way. From CMS systems to building information modeling (BIM), drones, and more, the industry’s race to embrace technology is in full swing.
  2. Being Green and Sustainable
    We have only one planet, and the responsibility of maintaining it rests of every shoulder that calls it home. As the challenge to preserve our world continues to gain momentum, builders, architects, and engineers have become hyper-focused on doing their part. In the coming years, clients will be more apt to partner with and provide lucrative build opportunities to those who mirror their values. With that being the case, those who champion green ideals and a focus on sustainability stand to gain.
  3. Using Prefabricated Materials
    Construction traditionalists are used to building everything on site by hand, piece by piece. Those methods are still present on some sites, but with each year, the prevalence of prefabricated materials grows. Prefabricated materials increase efficiency, reduce labor costs, and align well with green/sustainability initiatives. As professionals continue realizing the value of this method, more and more will look to infuse it into their production mix during 2024 and the coming years.
  4. Increasing Worker Safety Efforts
    It seems intuitive to think that the industry would have programs and resources to ensure worker safety. While no one wants to see a worker injured, the race to finish fast and increase profit margins often overshadows the importance of creating a safe working environment. As the industry continues evolving, worker safety will move to the forefront. Better safety includes improved training, frequent inspections, and more resources allocated to this area. The payoff from these efforts will be seen in terms of injuries and lives: fewer injuries derailing careers, and more lives being saved because proper safety protocols are in place.

Conclusion

Construction is a pillar of the global economy, and there is no getting around it. The
industry provides jobs, circulates dollars, and fuels various market segments. If the goal of any construction entity is to be a contributing force, it is crucial to remain abreast of the trends and directions of the market. Technology is here, so market leaders should not shun innovation. Leaders should use and embrace the many advancements and position their businesses for growth. The planet should be a priority, too, so infusing methods that protect the environment, including use of prefabricated materials, must be a focus. Finally, workplace safety is rising, as more firms work to protect their most valued asset: their people.

Trends are good things; in many cases, they come and go. Those professionals who show a willingness to adapt to and adopt them are likely to be the ones positioned to stay.

DISCLAIMER: The information provided is not legal opinion or legal advice and does not create an attorney-client relationship of any kind. This article is also not intended to provide guidance as to how project parties should interpret their specific contracts or resolve contract disputes, as those decisions will need to be made in consultation with legal counsel, insurance counsel, and other professionals, and based upon a multitude of factors.

Lynn Pearcey, MBA, is a Copywriter for AIA Contract Documents. AIA Contract Documents has provided this article for general informational purposes only. To learn more about how AIA Contract Documents can help you with your business, visit https://aiacontracts.com. AIA Contract Documents software allows users to efficiently create, share, and manage the industry’s leading construction documents.

NIA Sites > Insulation Outlook Magazine > Global

Workforce Development Legislation Introduced

The first major bipartisan overhaul of the nation’s workforce training and development system was announced December 7, 2023. Representatives Virginia Foxx, R-NC, and Bobby Scott, D-VA—Chairwoman and Ranking Member of the House Committee on Education and the Workforce, respectively—introduced a bill to reauthorize the Workforce Innovation and Opportunity Act (WIOA), the law governing federal funding for a wide range of employment services and programs. Those programs include job training for adults and youth; dislocated worker services; vocational rehabilitation; and the operation of the country’s network of approximately 3,000 American Job Centers, where workers and job seekers can access employment services.

WIOA was signed into law in 2014 and has been up for reauthorization since 2020. The sweeping overhaul, titled A Stronger Workforce for America Act, “makes critical improvements to the Workforce Innovation and Opportunity Act that will expand the skills development provided under the law, strengthen the relationship between employers and the workforce system, and put more Americans on the pathway to successful careers,” according to the bill summary.

“This bipartisan bill provides crucial updates [to WIOA] that will help employees compete in today’s workforce, close the skills gap, provide accountability, and, most importantly, facilitate the success of American workers,” Foxx said.

Scott added, “The bill makes an array of key improvements to WIOA programs, such as expanding and improving the quality of skills development, strengthening services for disconnected youth, and codifying grants to help individuals released from incarceration transition back to employment and sustainable careers.”

SHRM Chief of Staff and Head of Public Affairs Emily M. Dickens said that “WIOA is the foundation of federal support for workforce development, and SHRM will do all we can to support the consideration and passage of this reauthorization effort. We are especially grateful that this bill includes key SHRM priorities, including support for external credentialing, improved credential transparency, broadening the definition of ‘business services’ to include HR [human resources] consulting, facilitation of skills-based hiring, and support for employer-led upskilling efforts.”

Key provisions of the bill include:

  • Dedicating 50% of the adult and dislocated worker funding to upskilling workers through “individual training accounts” (ITAs) and on-the-job learning, and providing eligible displaced workers with ITAs worth $5,000 to enroll in high-quality reskilling programs.
  • Prioritizing employer-led initiatives that equip workers with skill sets to fill jobs in critical industries and help the currently employed workforce upskill to avoid displacement and advance their careers.
  • Streamlining the “eligible training provider list” to focus on outcomes and ensure eligible programs are aligned with the skill and hiring demands of employers.
  • Strengthening the performance accountability system in the law to hold states and local workforce boards accountable for achieving positive labor market outcomes for program participants.
  • Strengthening pathways to economic opportunity by placing a greater emphasis on work-based learning for youth and on workforce education programs at community colleges that align with in-demand jobs.
  • Authorizing state and local workforce boards to aid employers implementing skills-based hiring practices.

The bill will need to first clear the House labor panel before being approved in both the House and Senate, which could be tough in a narrowly divided Congress barreling into an election year.

The WIOA reauthorization follows another bipartisan effort expanding Pell Grants for short term job-training programs, signifying that workforce development is one policy area where Republicans and Democrats can find agreement.

NIA Sites > Insulation Outlook Magazine > Global

Fortify Your Defenses: 5 Cybersecurity Trends for 2024

The digital frontier is a bustling marketplace, but it is also a battleground for malicious actors. As we enter 2024, business owners cannot afford to be complacent. Hackers are refining their tactics, and new threats emerge daily. But fear not. Here is your essential guide to the five major cybersecurity trends shaping this year. By knowing about what is happening in the cybersecurity landscape, you can better prepare your digital shields and discover proactive strategies to ensure your business thrives in the face of digital adversaries.

Here are the crucial cybersecurity trends that will shape this year:

  1. Cybersecurity artificial intelligence (AI) rises
    AI is no longer a futuristic trope; it is now a potent weapon in both offense and defense. Hackers are wielding AI-powered tools to automate attacks, discover vulnerabilities, and launch sophisticated phishing campaigns. Conversely, businesses can leverage AI-driven security solutions for real-time threat detection, proactive mitigation, and anomaly identification. Recognize AI as a double-edged sword, and invest in solutions that utilize its power to bolster your digital defenses.
  2. Ransomware attacks escalate
    Ransomware has become a pervasive and lucrative tool for cybercriminals; and in 2024, there will be an alarming escalation of such attacks. Expect double extortion tactics, targeting not just data but also operational systems, further crippling victims. Moreover, attacks will increasingly target critical infrastructure, potentially creating ripple effects across entire industries.
    To safeguard your business against ransomware, prioritize data backups, test incident response plans, and consider cyber insurance to mitigate the financial impact of potential attacks.
  3. Social engineering gets AI boost
    Human error tends to be the weakest link in the security chain. Hackers are exploiting this vulnerability with increasing finesse, utilizing AI to personalize phishing attacks and predict human behavior. These highly targeted campaigns will appear more believable than ever, making it crucial for employees to undergo cybersecurity awareness training and develop healthy skepticism toward unsolicited communications.
  4. Zero trust takes center stage
    The castle-and-moat security model is crumbling. In 2024, the zero trust philosophy will gain wider adoption. This approach does not assume the inherent trustworthiness of users or devices, requiring continuous verification and granular access control.
    Move toward zero trust architecture by implementing multifactor authentication, segmenting your network, and adopting least-privilege access. Doing so creates a layered defense that minimizes the impact of potential breaches.
  5. Cyber insurance is no longer optional
    As cyberthreats multiply and evolve, cyber insurance will become an essential safety net for businesses of all sizes. This insurance mitigates the financial burden of cyber incidents, including those arising out of data breaches and physical theft. Before it is too late, evaluate your risk profile, explore insurance options, and ensure comprehensive coverage to weather the storms of the digital world.

The year ahead promises both challenges and opportunities in the realm of cybersecurity. Embracing the trends above and implementing proactive measures will be key to securely navigating the dynamic digital landscape in 2024.

Reprinted with permission from Tech Advisory (www.techadvisory.org). Copyright © 2024

NIA Sites > Insulation Outlook Magazine > Global

Recreational Marijuana in the Workplace

As of December 7, 2023, Ohio became the 24th state to legalize recreational marijuana, hitting a new “high” or low, depending on your view.

Back on November 7, 2023, Ohio voters passed Issue 2. Contrary to many reports, Issue 2 is not a constitutional amendment. Instead, Issue 2 creates a new law, Chapter 3780 of the Ohio Revised Code. This is an important distinction because with a new law, not a constitutional amendment, the Ohio legislature can propose changes to Issue 2, and it has already done so. While recreational use of marijuana in certain circumstances is likely here to stay, further restrictions are expected to be passed in the near future.

Employers and Recreational Marijuana

What does this mean for Ohio employers? Not as much as some feared.

Under the current statute, Ohio employers retain the following rights.

  • Employers are not required to permit or accommodate an employee’s use, possession, or distribution of marijuana.
  • Employers are still permitted to refuse to hire, discharge, discipline, or otherwise take an adverse employment action against an individual because of that individual’s use, possession, or distribution of marijuana.
  • Employers are still permitted to establish and enforce drug-testing policies, drug-free workplace policies, or zero-tolerance drug policies.
  • If an employer terminates an employee because of that individual’s marijuana use in violation of the employer’s drug-free workplace policy, zero-tolerance policy, or other formal drug program or policy, the employee will be considered to have been discharged for just cause.

Even though the statute retained employers’ rights to address marijuana, employers should still take time to review their current policies and decide if employee use of recreational marijuana, even off duty, is something they want to prohibit or permit.

Some questions you will want to consider:

  • Do you want to prohibit employees from using marijuana, on or off duty?
  • Do you want to include marijuana in your pre-employment drug-testing panels?
  • Will your position on marijuana impact your ability to hire?
  • Do you want to prohibit only working under the influence of marijuana?
  • Do you have federal contracts that impact your drug and alcohol policy? Remember, marijuana use is still illegal under federal law.
  • Do your current policies reflect your desired outcome, given that now marijuana will not automatically be covered by a prohibition on “illegal drugs”?
  • Do you have safety-sensitive positions that require special treatment under your drug and alcohol policies?

Workplace Safety

Speaking of safety, studies across the country show a statistical correlation between legalized recreational marijuana and increased workplace injuries. As such, some employers are considering amending existing policies, including adopting post-accident drug testing.

OSHA does not have a standard addressing drug use or intoxication in the workplace, nor does OSHA dictate when post-accident testing may or may not be conducted. However, OSHA does require that employers ensure their post-accident drug testing policies are not designed to deter or discourage injury reporting.

According to OSHA, employers’ post-accident drug testing should promote workplace safety, and not penalize employees for reporting work-related injuries. That means employers may conduct drug testing to evaluate the root cause of a workplace incident that harmed or may have harmed employees. But, if employers choose to do so, they should test all employees whose conduct could have contributed to the incident, not just employees who reported injuries. That is, OSHA does not want employers to only conduct drug tests for injured employees.

That is not true if you participate in the Ohio Bureau of Workers’ Compensation Drug Free Safety Program. Employers that are enrolled in the Drug Free Safety Program may conduct mandatory post-accident drug testing for all employees injured at work, regardless of what caused the injury.

If you are not enrolled in the Drug Free Safety Program, it is best to only conduct post-accident drug testing for employees whose conduct may have been the result of intoxication, without regard to whether that employee was actually injured.

Conclusion

There is no one-size-fits-all approach to addressing recreational marijuana in your workplace. Each workplace has its own challenges, and each state has its own law addressing marijuana use and testing.

For more information regarding potential OSHA, workers’ compensation, and employment issues relating to legalization of marijuana, visit www.amfdayton.com to reach Auman, Mahan, and Furry Attorneys Amy Mitchell, Abbie White, or Doug Jenks. Jenks and White also host a Health and Safety Law Report podcast, and have an episode on this topic, “Legal Recreational Weed and Work: What’s an Employer to Do?” available on
Spotify at http://tinyurl.com/5y9xssby.

 

 

NIA Sites > Insulation Outlook Magazine > Global

OSHA’s Safety Resources for the Top 10 Violations

Safety is crucial in the construction and insulation industries, and every project manager wants to complete a project safely. As you are planning your 2024 health and safety training program, here are resources to help your company improve in the areas OSHA most frequently finds violations. Resources for companies and trainers can be found at www.osha.gov/construction/training. Work stress, suicide prevention, and crisis resources can be accessed at www.osha.gov/preventingsuicides.

The following is a list of the top 10 most frequently cited standards following inspections of worksites by federal OSHA for all industries during 2023. OSHA states that it publishes the list to alert employers about these commonly cited standards so they can take steps to find and fix recognized hazards addressed in these and other standards before OSHA shows up. To encourage improvement, available OSHA safety resources are listed with each of the standards in the 2023 list. For comparison of safety trends and weaknesses, the most frequent violations for 2022 follow the 2023 list. OSHA’s fiscal year is from October 1 to September 30, which represents the time period for these citations.

Trends

Fall protection, hazard communication, and ladders remain top safety concerns. Violations increased for scaffolding, while respiratory protection safety increased, thereby moving it down the list from fourth to seventh. Violations for powered industrial trucks increased for 2023. Control of hazardous energy (lockout/tagout), fall protection training, eye and face protection, and machinery and machine guarding all remained in consistent ranking for both years. Hopefully, by utilizing the resources provided, the violations and injuries will be reduced for 2024.

2023 Top 10 Most Frequently Cited Standards

The Top 10 most frequently cited workplace safety standards for fiscal year 2023 are:

  1. Fall Protection: 7,271 violations
    Safety resources: www.osha.gov/stop-falls-stand-down/resources and www.osha.gov/stop-falls General requirements, construction (29 CFR 1926.501)
  2. Hazard Communication: 3,213 violations
    Safety resources: www.osha.gov/hazcom General industry (29 CFR 1910.1200)
  3. Ladders: 2,978 violations
    Safety resources: osha.gov/publications/bytopic/ladder-safety Construction (29 CFR 1926.1053)
  4. Scaffolding: 2,859 violations
    Safety resources: www.osha.gov/scaffolding Construction (29 CFR 1926.451)
  5. Powered Industrial Trucks: 2,561 violations
    Safety resources: www.osha.gov/powered-industrial-trucks General industry (29 CFR 1910.178)
  6. Control of Hazardous Energy (lockout/tagout): 2,554 violations
    Safety resources: www.osha.gov/control-hazardous-energy General industry (29 CFR 1910.147)
  7. Respiratory Protection: 2,481 violations
    Safety resources: www.osha.gov/respiratory-protection General industry (29 CFR 1910.134)
  8. Fall Protection Training: 2,112 violations
    Employer Training Guide: www.osha.gov/sites/default/files/publications/OSHA3666.pdf
    Training requirements (29 CFR 1926.503)
  9. Eye and Face Protection (Personal Protective and Lifesaving Equipment): 2,074 violations
    Safety resources: www.osha.gov/eye-face-protection Construction (29 CFR 1926.102)
  10. Machinery and Machine Guarding: 1,644 violations
    Safety resources: www.osha.gov/machine-guarding General industry 29 CFR 1910.212)

2022 Top 10 Most Frequently Cited Standards

  1. Fall Protection, construction (29 CFR 1926.501)
  2. Hazard Communication, general industry (29 CFR 1910.1200)
  3. Ladders, construction (29 CFR 1926.1053)
  4. Respiratory Protection, general industry (29 CFR 1910.134)
  5. Scaffolding, construction (29 CFR 1926.451)
  6. Control of Hazardous Energy (lockout/tagout), general industry (29 CFR 1910.147)
  7. Powered Industrial Trucks, general industry (29 CFR 1910.178)
  8. Fall Protection Training, construction (29 CFR 1926.503)
    9. Eye and Face Protection (Personal Protective and Lifesaving Equipment),
    construction (29 CFR 1926.102)
    10. Machinery and Machine Guarding, general industry (29 CFR 1910.212)