{"id":6906,"date":"2013-04-01T00:00:00","date_gmt":"2013-04-01T00:00:00","guid":{"rendered":"https:\/\/insulation.org\/io\/articles\/state-of-the-industry-moving-forward\/"},"modified":"2013-04-01T00:00:00","modified_gmt":"2013-04-01T00:00:00","slug":"state-of-the-industry-moving-forward","status":"publish","type":"articles","link":"https:\/\/insulation.org\/io\/articles\/state-of-the-industry-moving-forward\/","title":{"rendered":"State of the Industry: Moving Forward"},"content":{"rendered":"<p FirstParagraph><span 'font-family:\"Calibri\",\"sans-serif\";\ncolor:windowtext'>Would you describe 2012 as a year that you are glad is in the<br \/>\nrear view mirror, a ho-hum year, or a year that exceeded your expectations? Is<br \/>\n2013 looking better, are you expecting more of the same, or are you worried<br \/>\nabout the industry recovery slowing down? As you would expect, the answers vary<br \/>\ngreatly by geographical area and the person you ask.<\/span><\/p>\n<p MsoNormal 'text-align:justify;text-indent:13.5pt;:\n120%;text-autospace:none;vertical-align:middle'>While the mechanical insulation<br \/>\nindustry, and the economy as a whole, is rebounding, the challenges created by<br \/>\nthe recent recession continue to impact the industry. Recovery is slow,<br \/>\nstretched out, and not uniform across market segments, the country, by region,<br \/>\nor even by or within a state. The good news is, the industry is slowly<br \/>\nrecovering and the signs are there, although a bit weak, for continued moderate<br \/>\ngrowth. <i>The industry is moving forward.<\/i><\/p>\n<p MsoNormal 'margin-top:13.5pt;:13.0pt;text-autospace:\nnone;vertical-align:middle'><b>Politics<\/b><\/p>\n<p MsoNormal 'text-align:justify;:120%;text-autospace:\nnone;vertical-align:middle'>The gridlock on Capitol Hill over the past several<br \/>\nyears has not helped, and may have hindered our nation&#8217;s recovery efforts. With<br \/>\nthe general election and a portion of the fiscal cliff type issues behind us,<br \/>\none can only hope that confidence in the economy will gain momentum and<br \/>\nbipartisan efforts will spur economic growth. However, realistically, there are<br \/>\nnumerous difficult issues confronting the 113<sup>th<\/sup> Congress and the parties&#8217;<br \/>\npositions on many of these are vastly different. Those differences, and the<br \/>\nrecent history of partisanship, will not help with the uncertainties many<br \/>\nbusinesses have in our economy. With the recent election, we again heard about<br \/>\ndissatisfaction with Congress and with politics in general. That message does<br \/>\nnot appear likely to change anytime soon. Depending on the current Congress&#8217;<br \/>\nperformance, officials hoping for election in 2014 could feel the impact of<br \/>\nthat dissatisfaction. Clearly, meaningful and timely compromise is essential.<\/p>\n<p MsoNormal 'text-align:justify;text-indent:13.5pt;:\n120%;text-autospace:none;vertical-align:middle'><span 'letter-spacing:\n.05pt'>Thinking about the state of our industry, while we cannot ignore<br \/>\npolitics and the economy, we should focus on what we can directly influence and<br \/>\nadapt to the economic trends in our market. There are reasons for cautious<br \/>\noptimism. Fundamentals are in place to deliver a slow, steady recovery for the<br \/>\ngeneral economy and the mechanical insulation industry. Conditions are,<br \/>\nhowever, slippery; and in today&#8217;s environment, any event could affect the rate<br \/>\nand method of recovery.<\/span><\/p>\n<p MsoNormal 'margin-top:13.5pt;:13.0pt;text-autospace:\nnone;vertical-align:middle'><b>Other Industry Factors<\/b><\/p>\n<p MsoNormal 'text-align:justify;:120%;text-autospace:\nnone;vertical-align:middle'><span 'letter-spacing:-.2pt'>Analyzing the<br \/>\nindustry across the board over the last year resembled <\/span><i><span\n'letter-spacing:-.2pt'>looking into a crystal ball while riding a<br \/>\nrollercoaster.<\/span><\/i><span 'font-size:10.0pt;:120%;\nletter-spacing:-.2pt'> <\/span><span 'letter-spacing:-.2pt'>Fluctuating<br \/>\nmarket events did not present a clear industry picture. Consider the following:<\/span><\/p>\n<p><UL><br \/>\n<LI>A small number of relatively large<br \/>\nprojects in a given market area could indicate the market is robust, with no<br \/>\nend in sight. However, further examination indicates that unless other project<br \/>\nbacklog increases, that area could and probably will be looking at a<br \/>\nsubstantially different picture in the foreseeable future. This observation is<br \/>\nnot necessarily new, but the backlog cliff potentially is deeper.<\/span><\/p>\n<p><LI>The depth and breadth, volume, and duration of contractor backlog varies<br \/>\ngreatly. While it may be better than in 2009&ndash;2010, it is not close to the<br \/>\nlevels experienced in 2005&ndash;2008. In addition, the profit projection on that<br \/>\nbacklog is weaker than in the past. <\/p>\n<p><LI>Lower profit expectations are a direct result of increased competition<br \/>\nin the number of bidders and normal securement pressures created by a<br \/>\nrecessionary environment. Not only are contractors looking at nontraditional<br \/>\nmarkets, they are looking outside their normal geographical operating areas.<\/p>\n<p><LI>Generally, margins throughout all channels appear to be down 1 to 2<br \/>\npercent or greater.<\/p>\n<p><LI>Operational cost reductions have been deep to offset the margin and unit<br \/>\nsales reductions. Time will tell if those reductions will have a lingering<br \/>\nimpact on a company&#8217;s ability to maintain and grow market share in a recovering<br \/>\neconomy.<\/p>\n<p><LI>End of calendar year motivations to reduce inventory and\/or achieve<br \/>\npurchasing incentives can provide a false picture for the fourth and first<br \/>\nquarters, potentially even carrying over to the beginning of the second<br \/>\nquarter.<\/p>\n<p><LI>Attempts to obtain price increases throughout the channels over the last<br \/>\n18 months have been extremely difficult. Renewed and committed efforts are<br \/>\nexpected to continue in 2013; however, price recovery is not expected to get<br \/>\neasier.<\/p>\n<p><LI>With the economy showing signs of slow but steady recovery, projects put<br \/>\non hold in 2011 and 2012 could begin in early 2013. The impact of those<br \/>\nprojects on the mechanical insulation industry may not be felt until late 2013<br \/>\nor early-mid 2014.<\/p>\n<p><LI>The industrial market has been soft over the last year, while the<br \/>\ncommercial market continues to show signs of a slow recovery.<\/p>\n<p><LI>Industry consolidation is alive and well, and expected to continue as<br \/>\nthe economy and industry recover. The distribution\/fabrication segment has been<br \/>\nthe most active, as private equity investment and growth strategies have become<br \/>\nan integral component of the industry. Time will reveal the success and<br \/>\nsustainability of those strategies. The acquisition process is exciting, but<br \/>\nthe company culture and personnel integration process is where challenges<br \/>\nappear-and where most of the industry chatter occurs.<\/p>\n<p><\/UL><\/p>\n<p MsoNormal 'text-align:justify;text-indent:13.5pt;:\n120%;text-autospace:none;vertical-align:middle'>Put all of the above factors<br \/>\ntogether and it appears the industry slowdown has hit bottom; and, while some<br \/>\nareas are not yet experiencing growth, the market appears to have stabilized. A<br \/>\nslow, moderate growth is forecast for 2013 and 2014. It is time to look ahead.<\/p>\n<p MsoNormal 'margin-top:13.5pt;:13.0pt;text-autospace:\nnone;vertical-align:middle'><b><span 'letter-spacing:-.2pt'>What are the<br \/>\nopportunities and challenges moving forward?<\/span><\/b><\/p>\n<p MsoNormal 'text-align:justify;:120%;text-autospace:\nnone;vertical-align:middle'>Each company has its unique profile of challenges<br \/>\nand opportunities. There are, however, a few overreaching industry challenges<br \/>\nthat may or may not impact an individual company but are critical to the<br \/>\nindustry as a whole.<\/p>\n<p MsoNormal 'margin-top:13.5pt;text-align:justify;:\n13.0pt;text-autospace:none;vertical-align:middle'><strong><font color=\"#0000FF\">Knowledgeable Employees<\/font><\/strong><\/p>\n<p MsoNormal 'text-align:justify;:120%;text-autospace:\nnone;vertical-align:middle'>Over the last decade, and especially the last 5<br \/>\nyears, the industry has lost a great wealth of experienced and knowledgeable<br \/>\npeople. Whether the loss was due to attrition, down or right sizing,<br \/>\nconsolidation, reorganization, the economy, etc. the loss is real and<br \/>\nimpactful. <\/p>\n<p MsoNormal 'text-align:justify;text-indent:13.5pt;:\n120%;text-autospace:none;vertical-align:middle'><span 'letter-spacing:\n-.1pt'>The loss and the challenges will primarily impact two areas.<\/span><\/p>\n<p MsoNormal 'text-align:justify;:120%;text-autospace:\nnone;vertical-align:middle'>1. Management and Sales<\/p>\n<p MsoNormal 'text-align:justify;:120%;text-autospace:\nnone;vertical-align:middle'><span 'letter-spacing:-.05pt'>Marketing<br \/>\npersonnel who not only understand their respective company&#8217;s strategy,<br \/>\nproducts, and markets but also the industry are vital. It may sound like a<br \/>\nclich\u00e9, but there is big difference between knowing your local market,<br \/>\nproducts, and customer base versus truly having an appreciation of the industry<br \/>\nas a whole, regionally and nationally. It is like understanding your role but<br \/>\nnot how it impacts the bigger picture.<\/span><\/p>\n<p MsoNormal 'text-align:justify;text-indent:13.5pt;:\n120%;text-autospace:none;vertical-align:middle'><span 'letter-spacing:\n-.2pt'>The solution is relatively easy but requires management&#8217;s commitment and<br \/>\ninvestment. Most company management understands the value to invest in people<br \/>\nin the form of continuing educational programs and networking with peers.<br \/>\nUnfortunately, in a down economy, the training and education budget is often<br \/>\nthe first area to be cut and the last to be reinstated. Training, education,<br \/>\nand outreach initiatives may not yield immediate returns, but cutting their<br \/>\nbudgets is somewhat short-sighted thinking if you are in the business for the<br \/>\nlong haul. It is the age-old struggle between short-term earning demands and long-term<br \/>\nearning potential. There is a happy medium between the two, but too often<br \/>\nshort-term demands rule.<\/span> <\/p>\n<p MsoNormal 'text-align:justify;text-indent:13.5pt;:\n120%;text-autospace:none;vertical-align:middle'><span 'letter-spacing:\n.05pt'>Find that middle ground. Implement a continuing education program for<br \/>\nall levels in your company. Your program(s) should be inclusive of internal and<br \/>\nexternal training. Take advantage of industry in-person and electronic training<br \/>\nprograms. Allow your team to obtain multiple views on the same subject; obtain<br \/>\nrefreshers; and learn about new approaches, technologies, and resources that<br \/>\nare truly available at their fingertips.<\/span><\/p>\n<p MsoNormal 'text-align:justify;text-indent:13.5pt;:\n120%;text-autospace:none;vertical-align:middle'><span 'letter-spacing:\n-.05pt'>Encourage your employees to participate in local, regional, and<br \/>\nnational industry trade association meetings. Meeting industry peers,<br \/>\nsuppliers, and even the competition is called &#8220;networking&#8221; and is of tremendous<br \/>\nvalue. Do not fear it&mdash;embrace it. Well-rounded knowledge and relationship<br \/>\nbuilding in all industry segments is education at the highest real world level.<br \/>\nUnfortunately, not everyone can participate in all meetings. Not taking<br \/>\nadvantage of the networking opportunities for your current and future<br \/>\nmanagement team, though, is a waste of available and valuable resources, and<br \/>\npotentially restraining the capabilities of your key players.<\/span><\/p>\n<p MsoNormal 'text-align:justify;text-indent:13.5pt;:\n120%;text-autospace:none;vertical-align:middle'>The industry&#8217;s loss of<br \/>\nexperienced and knowledgeable people is real, and it can only get worse over<br \/>\ntime without a renewed and meaningful commitment to employee training,<br \/>\neducation, and outreach programs. <\/p>\n<p MsoNormal 'text-align:justify;:120%;text-autospace:\nnone;vertical-align:middle'>2. Experienced and Talented Craft Personnel<\/p>\n<p MsoNormal 'text-align:justify;:120%;text-autospace:\nnone;vertical-align:middle'>Experienced, skilled people left the industry in<br \/>\nthe past few years because of the economy and lack of work. Many believe this<br \/>\nis the major consequence of the recent recession and that, ultimately, a labor<br \/>\nshortage of skilled and experienced craft personnel will occur in the next few<br \/>\nyears. Will a prolonged recovery attract them back?<\/p>\n<p MsoNormal 'text-align:justify;text-indent:13.5pt;:\n120%;text-autospace:none;vertical-align:middle'><span 'letter-spacing:\n-.1pt'>This is a real-world problem that requires action and investment&mdash;sooner<br \/>\nthan later. Those companies that invest now will differentiate themselves and<br \/>\npotentially have a competitive advantage going forward. As the saying goes,<br \/>\nanyone can obtain work, but profitable execution, schedule compliance, and<br \/>\ncustomer satisfaction is not a given&mdash;it must be earned. That is difficult, if<br \/>\nnot impossible, without an experienced and quality workforce, which is not<br \/>\nsomething that is created overnight. Attracting, training, and retaining a quality<br \/>\nworkforce should be of the highest priority for all contractors, regardless of<br \/>\nlabor affiliation. Putting off addressing this topic could produce barriers<br \/>\nthat may be difficult and costly to overcome.<\/span><\/p>\n<p MsoNormal 'text-align:justify;text-indent:13.5pt;:\n120%;text-autospace:none;vertical-align:middle'>Again, management struggles<br \/>\nbetween short-term cost and earnings versus long-term growth and potential<br \/>\nearnings. Without a doubt, it is a difficult topic; and at the forefront of<br \/>\nthat discussion is the forecasting of &#8220;potential&#8221; future business: Will it be<br \/>\nthere? If so, when? To what degree can you influence the potential? Will you<br \/>\nhave time to obtain quality craft personnel; and, if so, at what cost? Will<br \/>\nthat business be competitively attractive? How much business will be available?<br \/>\nThese are basic questions all contractors&mdash;large or small&mdash;face every day. Some<br \/>\nwould argue that small contractors have the advantage, for they have been able<br \/>\nretain their workforce where medium- to large-size contractors have not. Others<br \/>\nmay agree with that observation but point out the problem of turnover for small<br \/>\ncontractors over the last several years, and that the economy could make it<br \/>\nmore difficult for them to rebuild. <\/p>\n<p MsoNormal 'text-align:justify;text-indent:13.5pt;:\n120%;text-autospace:none;vertical-align:middle'>An experienced and quality<br \/>\nworkforce is not created overnight. It is strongly suggested that contractors<br \/>\nexamine their workforce availability versus their future demand expectations.<br \/>\nIf a potential shortage is a concern, working now to attract, train, and retain<br \/>\ncraft personnel may be a wise investment that could yield a substantial return.<\/p>\n<p MsoNormal 'margin-top:13.5pt;:13.0pt;text-autospace:\nnone;vertical-align:middle'><strong><font color=\"#0000FF\">Mechanical Insulation Is a Prescriptive Energy-Efficiency<br \/>\nSolution Competing in a Holistic Environment<\/font><\/strong><\/p>\n<p MsoNormal 'text-align:justify;:120%;text-autospace:\nnone;vertical-align:middle'>The need for holistic energy benchmarking and<br \/>\nmeasurement is being discussed in many circles, including code adoption,<br \/>\nbuilding modeling, high-performance buildings (new and existing),<br \/>\nenergy-efficiency tax incentives, and energy standards, just to name a few.<br \/>\nWhile holistic measurement is probably the most accurate means to monitor<br \/>\nenergy use in buildings, there are problematic areas in designing new buildings<br \/>\nand in existing buildings, such as existing product minimum standards, current<br \/>\ncodes, information disclosure, modeling assumptions versus real-world<br \/>\noccurrences, etc. This is not an easy discussion, but our industry would be<br \/>\nremiss in not appreciating the forces at work to create and implement holistic<br \/>\ndesigns and monitoring benchmarks.<\/p>\n<p MsoNormal 'text-align:justify;text-indent:13.5pt;:\n120%;text-autospace:none;vertical-align:middle'>Mechanical insulation in any<br \/>\nperformance measurement arena is a proven energy-efficiency initiative that<br \/>\ndelivers a substantial return. We can calculate the level of energy saved with<br \/>\nsoftware, practices, etc., but how do facility owners or managers measure and<br \/>\nmonitor actual results from a holistic perspective? If we know the building&#8217;s<br \/>\ntotal energy usage, we can&mdash;by knowing the scope of insulation and use<br \/>\nconditions&mdash;determine the savings being contributed by mechanical insulation.<br \/>\nThe same would be true for determining the value of replacing missing or<br \/>\ndamaged insulation, or upgrading proposed or existing systems. The bottom line<br \/>\nfrom a holistic perspective is that the success of mechanical insulation is<br \/>\ndependent upon the measurements of the whole building, which are dependent on<br \/>\nmany variables. That reality is no different for lighting, windows, air<br \/>\nsealing, high-efficiency equipment, etc., so why is mechanical insulation not<br \/>\ngiven the same high-profile consideration?<\/p>\n<p MsoNormal 'text-align:justify;text-indent:13.5pt;:\n120%;text-autospace:none;vertical-align:middle'><span 'letter-spacing:\n-.2pt'>Many of those other measures have, for a number of years, been investing<br \/>\nthe resources to determine the impact they have holistically and how that can<br \/>\nbe measured\/monitored. They have aligned with other industry groups to promote<br \/>\ncontrols and measurements processes, and invested significant industry research<br \/>\nand marketing dollars within all channels. This is the world in which<br \/>\nmechanical insulation competes daily. Our industry is in a race, and we are<br \/>\nrunning behind. Acceleration is needed before we are left further behind.<\/span><\/p>\n<p MsoNormal 'text-align:justify;text-indent:13.5pt;:\n120%;text-autospace:none;vertical-align:middle'>Not considering the value<br \/>\nprescriptive measures like mechanical insulation bring to the table in the<br \/>\nholistic movement could result in significant energy loss as well the loss of<br \/>\nother benefits that affect a building&#8217;s performance. The industry needs to<br \/>\naddress this challenge\/opportunity sooner rather than later to ensure the full<br \/>\nvalue of mechanical insulation is understood and implemented in all holistic<br \/>\nenergy measurement initiatives, from building modeling to code development, implementation,<br \/>\nand enforcement; benchmarking for high-performance buildings; maintenance and<br \/>\nretrofitting, etc. The industry is competing in a different environment than it<br \/>\nhas before.<\/p>\n<p MsoNormal 'text-align:justify;text-indent:13.5pt;:\n120%;text-autospace:none;vertical-align:middle'>Interestingly, the entire<br \/>\ndiscussion about holistic initiatives has focused upon the commercial or<br \/>\nbuilding sector. Given the energy savings potential in the<br \/>\nindustrial-manufacturing sector, you would think a similar movement would be<br \/>\nafoot. Something to think about?<\/p>\n<p MsoNormal 'margin-top:13.5pt;:13.0pt;text-autospace:\nnone;vertical-align:middle'><strong><font color=\"#0000FF\">The Value of Mechanical Insulation for<br \/>\nConservation of Energy and Water-the Energy and Water Nexus-Requires Attention<br \/>\nand Study<\/font><\/strong><\/p>\n<p MsoNormal 'text-align:justify;:120%;text-autospace:\nnone;vertical-align:middle'><span 'letter-spacing:-.2pt'>As the National<br \/>\nInstitute of Building Sciences has noted, the value of water has never been<br \/>\nconsidered in making the business case for additional pipe insulation on<br \/>\ndomestic hot water piping, thickness, or scope of work. While energy efficiency<br \/>\nis considered, the overriding driver typically is short-term economics,<br \/>\ndependent on frequency, duration, and pattern of usage.<\/span><\/p>\n<p MsoNormal 'text-align:justify;text-indent:13.5pt;:\n120%;text-autospace:none;vertical-align:middle'>History has proven thermal<br \/>\ninsulation for mechanical systems is a simple and cost-effective technology for<br \/>\nreducing heat losses and gains in building systems. As energy codes and<br \/>\nregulations, prescriptive and holistic, become more stringent and building<br \/>\nowners, operators, and tenants strive for higher performing and more sustainable<br \/>\nbuildings, designers and owners should focus on how and where to use more&mdash;not<br \/>\nless&mdash;insulation.<\/p>\n<p MsoNormal 'text-align:justify;text-indent:13.5pt;:\n120%;text-autospace:none;vertical-align:middle'>Initial studies and analysis<br \/>\nhave demonstrated that pipe insulation can contribute toward conserving scarce<br \/>\nwater resources, as well as energy, in domestic hot water delivery systems. The<br \/>\nexpected useful life of buildings can be 50 years or more. It is significantly<br \/>\neasier and more cost effective to plan for and install proper mechanical<br \/>\ninsulation systems at the time of construction than to retrofit or upgrade the<br \/>\ninsulation systems later. Likewise, when facilities are being renovated or<br \/>\nrepaired, the opportunity to upgrade mechanical insulation systems should not<br \/>\nbe overlooked. Efforts to &#8220;trade-off&#8221; mechanical insulation levels to minimize<br \/>\ninitial costs are counterproductive and are better focused on examining the<br \/>\nlong-term performance of building systems.<\/p>\n<p MsoNormal 'text-align:justify;text-indent:13.5pt;:\n120%;text-autospace:none;vertical-align:middle'>With the anticipated shortage<br \/>\nand escalation of the cost of energy and water, combined with the long service<br \/>\nlife of domestic hot water piping systems and the relatively minor incremental<br \/>\ncost of insulation, the potential impact of increased insulation can be<br \/>\nsubstantial and immediate.<\/p>\n<p MsoNormal 'text-align:justify;text-indent:13.5pt;:\n120%;text-autospace:none;vertical-align:middle'>Our industry needs to partner<br \/>\nwith other interested parties to confirm the initial studies and determine the<br \/>\nimpact of mechanical insulation on both energy and water use on domestic hot<br \/>\nand chilled water systems, and examine the business case and return on<br \/>\ninvestment. The opportunity is there. The industry needs to be a leader in this<br \/>\narea and not rely on others to do the leg work.<\/p>\n<p MsoNormal 'margin-top:13.5pt;text-align:justify;:\n13.0pt;text-autospace:none;vertical-align:middle'><strong><font color=\"#0000FF\">Emissions Reduction<\/font><\/strong><\/p>\n<p MsoNormal 'text-align:justify;:120%;text-autospace:\nnone;vertical-align:middle'>The environment<br \/>\nand the need for emissions reduction have been a subject of much debate for<br \/>\ndecades. The role mechanical insulation can play in reducing emissions has not<br \/>\nbeen fully recognized or appreciated by environmentalists, regulators, or other<br \/>\ninterested parties. While the environment has been a center stage topic, its<br \/>\nimportance may be gaining renewed attention by regulators.<\/span><\/p>\n<p MsoNormal 'text-align:justify;text-indent:13.5pt;:\n120%;text-autospace:none;vertical-align:middle'>There are many drivers behind<br \/>\nthat renewed attention. Shifting weather patterns across the United States and<br \/>\nthe unusual severe storms of the last few years certainly play a role. The<br \/>\nfederal deficit reduction and budget discussions also may be impactful. As the<br \/>\npolitical parties debate the proper balance between revenue increases and cost<br \/>\nreduction, the concept of implementing some type of tax or penalty on emissions<br \/>\ncould gain momentum. After all, if companies are taxed for positive behavior<br \/>\n(e.g., being profitable), why not tax them for negative behavior, such as<br \/>\nproducing emissions beyond established permissible limits? The concept is<br \/>\nsimple, but achieving consensus and implementing and monitoring compliance<br \/>\nraise complexities. Putting aside politics and addressing the complexities of<br \/>\nsuch a plan, however, could be beneficial to the industry.<\/p>\n<p MsoNormal 'margin-top:13.5pt;:13.0pt;text-autospace:\nnone;vertical-align:middle'><strong><font color=\"#0000FF\">Education at All Levels of Facility Design and<br \/>\nManagement To Address the Deficit in Understanding of Mechanical Insulation<br \/>\nSystems<\/font><\/strong><\/p>\n<p MsoNormal 'text-align:justify;:120%;text-autospace:\nnone;vertical-align:middle'>Buildings and facilities are complex systems built<br \/>\nfrom ideas, experiences, technologies, and practices brought together by different<br \/>\ndisciplines, users, and needs. It is of critical importance that decision<br \/>\nmakers at all levels understand the cost\/benefit variables for mechanical<br \/>\ninsulation systems to make informed decisions on which technologies to<br \/>\nprioritize and implement to achieve energy efficiency, emissions reduction, and<br \/>\nother goals.<\/p>\n<p MsoNormal 'text-align:justify;text-indent:13.5pt;:\n120%;text-autospace:none;vertical-align:middle'>Education and training within<br \/>\nthe building professions should be aimed at facilitating the entire life cycle<br \/>\nof buildings, from concept to design, construction, commissioning, occupancy, modification\/renovation,<br \/>\nand deconstruction. In each period within the life cycle, particular segments<br \/>\nof the building community must be engaged and have the requisite knowledge to<br \/>\nadequately address the needs of that stage. Historically, the primary education<br \/>\nfocus has been in universities, colleges, and trade schools; but efforts have<br \/>\nbeen minimal in the case of mechanical insulation and, potentially, other<br \/>\ndisciplines.<\/p>\n<p MsoNormal 'text-align:justify;text-indent:13.5pt;:\n120%;text-autospace:none;vertical-align:middle'><span 'letter-spacing:\n-.1pt'>For years, a deficient understanding of what mechanical <\/span><span\n'letter-spacing:.1pt'>insulation is and how it could be used has impeded<br \/>\npolicy makers, design professionals, facility management, and others in<br \/>\nindustrial and commercial sectors in making a supportable case for increased<br \/>\nuse and maintenance of mechanical insulation. To those in the industry, it is a<br \/>\n&#8220;no-brainer.&#8221; The frustration with others&#8217; lack of understanding or<br \/>\nappreciation is real.<\/span><\/p>\n<p MsoNormal 'text-align:justify;text-indent:13.5pt;:\n120%;text-autospace:none;vertical-align:middle'><span 'letter-spacing:\n.1pt'>After a recent presentation, I received the following message: <\/span><\/p>\n<p MsoNormal 'text-align:justify;text-indent:13.5pt;:\n120%;text-autospace:none;vertical-align:middle'>&#8220;I wanted to let you know that<br \/>\nwe are working on an energy audit for the local Veterans Administration<br \/>\nHospital. They have missing insulation on multiple steam-to-hot water<br \/>\nconverters and also on their chilled water pumps. I&#8217;m using your insulation<br \/>\ncalculator today to arrive at numbers for those Energy Conservation Measures. I<br \/>\nprobably would have let that slide before I saw your presentation.&#8221;<\/p>\n<p MsoNormal 'text-align:justify;text-indent:13.5pt;:\n120%;text-autospace:none;vertical-align:middle'>Without a doubt, an increased<br \/>\neducational focus on mechanical insulation is needed in the private and public<br \/>\nsectors, including higher learning institutions. Implementing and maintaining<br \/>\nan aggressive, meaningful, and sustainable education and promotional campaign<br \/>\nin today&#8217;s economy is not easy, given financial and other resource demands; but<br \/>\nif the industry wants to influence positive change and long-term, sustainable<br \/>\ngrowth, it cannot afford to sit on the sidelines. Education will provide<br \/>\nlong-term benefit for all industry segments.<\/p>\n<p MsoNormal 'margin-top:13.5pt;:13.0pt;text-autospace:\nnone;vertical-align:middle'><b>The Bottom Line<\/b><\/p>\n<p MsoNormal 'text-align:justify;:120%;text-autospace:\nnone;vertical-align:middle'>The economy is recovering. Many are forecasting<br \/>\ncommercial and industrial construction to increase by mid-high single or<br \/>\nmoderate double digits in 2013 through 2016. The question is not if, but at<br \/>\nwhat pace and where does the mechanical insulation industry fit in the recovery<br \/>\ncycle? The industry is historically one of the last sectors to feel the impact<br \/>\nof a downturn, and unfortunately one of the last to reap the benefits of a<br \/>\nrecovery.<\/p>\n<p MsoNormal 'text-align:justify;text-indent:13.5pt;:\n120%;text-autospace:none;vertical-align:middle'>The potential for mechanical<br \/>\ninsulation to play a significant role as a tool to achieve the goals of the<br \/>\nbuilding community&mdash;energy efficiency, emissions reduction, sustainability,<br \/>\nwater conservation, safety, personnel protection, improving the work environment,<br \/>\netc.&mdash;is immense. However, the lack of sufficient data to support its potential,<br \/>\ncombined with deficient understanding of what mechanical insulation is and how<br \/>\nit could be used, impedes policy and decision makers from making a supportable<br \/>\ncase for increased use and maintenance of mechanical insulation. The<br \/>\nopportunities are real, and the need is now. The industry must recognize it is<br \/>\ncompeting in a different environment and not rely solely on historical<br \/>\nmarketing and educational practices.<\/p>\n<p MsoNormal 'text-align:justify;text-indent:13.5pt;:\n120%;text-autospace:none;vertical-align:middle'><span 'letter-spacing:\n.25pt'>The National Insulation Association (NIA) and its members face<br \/>\nchallenges, but these are stepping stones to a brighter, prosperous future. The<br \/>\nNIA World is abundant with experienced leaders, financial and human resources,<br \/>\ntechnology, the foundation for making change, and a rich history of addressing<br \/>\nand overcoming challenges. We need to harness our resources, work together, and<br \/>\nmake things happen.<\/span><\/p>\n<p MsoNormal 'text-align:justify;text-indent:13.5pt;:\n120%;text-autospace:none;vertical-align:middle'>In last years&#8217; State of the<br \/>\nIndustry, I observed, &#8220;Unlike any other time in my tenure in the industry,<br \/>\nthere has never been a more important time to come together and aggressively<br \/>\naddress the opportunities disguised as challenges. The mechanical insulation<br \/>\nindustry for years has been somewhat if not solely dependent upon the economy?<br \/>\n[We need] to accept and embrace whatever the economy provides, but we can also<br \/>\npositively influence the mechanical insulation industry&#8217;s role in the future<br \/>\neconomy. We are in a position that we have never experienced. Mechanical<br \/>\ninsulation needs a voice, and we need to be heard? The industry&#8217;s time to make<br \/>\na difference, to influence the increased use of mechanical insulation, is NOW.&#8221;<\/p>\n<p MsoNormal 'text-align:justify;text-indent:13.5pt;:\n120%;text-autospace:none;vertical-align:middle'><span 'letter-spacing:\n-.1pt'>This is an exciting time, and we need to invest in our future. The<br \/>\nindustry is moving forward and your help is needed on many fronts. Don&#8217;t sit on<br \/>\nthe sidelines&mdash;get involved.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Would you describe 2012 as a year that you are glad is in the rear view mirror, a ho-hum year, or a year that exceeded your expectations? Is 2013 looking better, are you expecting more of the same, or are you worried about the industry recovery slowing down? 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