{"id":6955,"date":"2012-04-01T00:00:00","date_gmt":"2012-04-01T00:00:00","guid":{"rendered":"https:\/\/insulation.org\/io\/articles\/nia-industry-leaders-interview-series-state-of-the-industry\/"},"modified":"2012-04-01T00:00:00","modified_gmt":"2012-04-01T00:00:00","slug":"nia-industry-leaders-interview-series-state-of-the-industry","status":"publish","type":"articles","link":"https:\/\/insulation.org\/io\/articles\/nia-industry-leaders-interview-series-state-of-the-industry\/","title":{"rendered":"NIA Industry Leaders Interview Series: State of the Industry"},"content":{"rendered":"

Economic analysis and the
\n30,000-foot view are valuable ways to assess the state of the mechanical
\ninsulation industry, but for this issue, Insulation Outlook wanted to get the
\nperspective of those who work in the industry on a daily basis: National
\nInsulation Association Members.<\/span><\/p>\n

<\/span><\/a>The following interviews
\nwill give you a glimpse into the challenges and changes they are seeing in the
\nindustry, as well as what they expect to happen in the coming year.<\/span><\/p>\n

The views represented here
\nspan the different categories of NIA Members: commercial and industrial
\ninsulation manufacturers, distributors, fabricators, and contractors. We think
\nyou’ll find these perspectives valuable.<\/span><\/p>\n

<\/p>\n

1. In your opinion, what is the current state of the
\nindustry? <\/span><\/b><\/p>\n

I think
\nthat the industry is in a solid position to reduce energy costs, show savings,
\nand have an impact on the environment; so we should continue to grow in terms
\nof awareness and opportunities. Growth may be slower than what I would like to
\nanticipate, but steady. The industry still needs to work together more, and all
\nof our NIA Members need to be more involved. [Beyond the industry], I wish I
\nhad more confidence in the current business environment in the United States.<\/span><\/p>\n

2. What do you see happening in the insulation industry
\nover the next year? <\/span><\/b><\/p>\n

I think
\nthings will remain steady and constant, with some minimal growth. The economy
\nis still stalled for the most part?although sectors and certain markets are
\nshowing some moderate growth?as we wait to see what happens in November. There
\nis significant opportunity for growth and energy independence, but the attitude
\nin Washington has to change. Our industry can be at the forefront in terms of responsibly
\nhelping energy independence and energy cost reduction\/savings moving forward,
\nbut? the political environment in D.C. has to be more business friendly, and we
\nare not there or even close to being there. <\/span><\/p>\n

3. What were your biggest challenges in 2011, and what do
\nyou foresee as the main challenges in 2012?<\/span><\/b><\/p>\n

Our
\nbiggest challenges were maintaining margins while growing. We were able to
\nfurther diversify our offering, which was great, but the outside pressures
\nrelated to margins were a daily fight. Discipline was a key factor in our
\nsuccess.? <\/span><\/p>\n

For 2012, we will continue with our business plan and stay on
\ntask and remain disciplined. The challenges will be the factors that we cannot
\ncontrol, which are related to the government? like excessive taxation and
\ndeficit spending. <\/span><\/p>\n

4. What changes would you like to see in local, state, or
\nfederal regulations or energy policies related to mechanical insulation in the
\ncommercial and industrial markets? <\/span><\/b><\/p>\n

[Changes related to] energy independence,
\nspecifically:<\/span><\/p>\n

1. Development of the Keystone Pipeline.<\/span><\/p>\n

2. Development of further oil and gas opportunities in
\nAlaska.<\/span><\/p>\n

3. Further off-shore drilling within U.S. waters.<\/span><\/p>\n

4. Further research on alternative energy sources.<\/span><\/p>\n

5. Nuclear plant development.<\/span><\/p>\n

6. A 20-year plan for infrastructure has to be developed
\nacross the country.<\/span><\/p>\n

All of the above can be done responsibly and safely
\nfor the environment. This will create jobs, help our industry grow and give our
\nindustry the opportunity to participate in a meaningful way toward energy
\nindependence. The oil industry can have a huge impact on our economy and
\neconomic stability. We can have energy independence with a good environmental
\npolicy. <\/span><\/p>\n

Related to alternative energy solutions, we
\nneed to spend the time to develop these options over time. It is very
\nconcerning to watch the amount of waste that goes into research in the effort
\nto win the race to be first. Washington, D.C. needs to set up the proper
\nbusiness climate and not attempt to be in the development business. The federal
\nand state governments need to set up a business environment that will allow
\nbusiness to grow and become healthy so that research and development dollars
\ncan be put back into business. In the current business environment of tax and
\nregulate, we are locked up. <\/span><\/p>\n

5. What are the products or insulation systems of the
\nfuture? When can we expect to see them? <\/span><\/b><\/p>\n

In a more business friendly climate, there would be
\nfurther energy development and then I truly believe that you would see our
\nmanufacturers, both domestically and abroad, begin to develop and release new
\nproducts.<\/span><\/p>\n

A major benefit is that we have products
\ncurrently available that can have an immediate impact on energy savings and the
\nenvironment.<\/span><\/p>\n

6. What initiatives would you suggest the industry undertake
\nto promote the perception of mechanical insulation as an important energy
\nefficiency initiative?<\/span><\/b><\/p>\n

We need to stay on the current track to eventually
\nget tax incentives in place for mechanical insulation. NIA has worked very hard
\nto position us for the future; unfortunately, we cannot control the political
\nenvironment. Patience and persistence is the key. <\/span><\/p>\n

7. How can the industry better educate facility owners
\nabout the advantages of proper and timely maintenance, as well as the risk of
\nnot having an effective maintenance program?<\/span><\/b><\/p>\n

We need our membership to take the tools and
\ninformation that are available and begin to sell again. Most of us are caught
\nin our daily routine, dealing with all of the details that require basic
\nbusiness to be accomplished day in and day out. If every NIA Member would
\npresent the benefits of mechanical insulation to three facilities per month, we
\nwould be on our way. What I would stress is that you need to be on your game,
\nunderstand our products, and last of all have the right audience.<\/span><\/p>\n

8. What potential events do you foresee over the next two
\nyears in the construction industry? <\/span><\/b><\/p>\n

There
\nwill be demand for more environmentally friendly buildings. There are pockets
\nof interest now. Water conservation will move to the forefront. I believe that
\nthe overall operating cost of a building and\/or facility will come under severe
\nscrutiny ? to reduce cost and become much more efficient. <\/span><\/p>\n

Modeling a plant or building before it’s built, or reviewing
\nit in terms of how it is to be maintained in the future, will also become much
\nmore visible. <\/span><\/p>\n

All of that said, if we don’t change the business environment
\nin the United States, we will fail in our efforts to reduce and conserve
\nenergy. We will not be able to grow and develop as a country with excessive
\ntaxation and continued deficit spending.<\/span><\/p>\n

For more information, call
\n425-228-4111 or visit <\/span><\/b>www.ejbartells.com<\/span><\/i><\/b><\/a>.<\/span><\/i><\/b><\/p>\n


<\/p>\n

<\/p>\n

1. In your opinion, what is the current state of the
\nindustry?<\/span><\/b><\/p>\n

I can really only speak to the industrial market, and
\nwe are seeing a slight decline after several years of solid performance and
\nsteady growth. The decline should only be temporary, as the engineering firms
\nseem to be loaded with projects that will come on line in the next few years.
\nIn the South and Southwest, we have not been impacted as much by the economic
\ndownturn that some other parts of the county have. There are several power
\nplants that are in pre-construction or the early stages of construction, and
\ninsulation will play a key part in the success of these plants. For the first
\ntime in decades a new nuclear power plant is being built, and this, too, should
\nbe good for the future of our industry. If lending institutions begin to loosen
\nup, the commercial market should begin to gain traction.<\/span><\/p>\n

2. What do you see happening in the insulation industry
\nover the next year?<\/span><\/b><\/p>\n

Hopefully, getting the tax initiatives program
\npassed. Realizing this is an election year, that may not happen; but we have to
\nkeep trying and we will. We must continue to educate the end users on the value
\nof energy conservation and the role our industry plays. Recently, I went online
\nto a state energy center for studies website and nowhere on the site was
\ninsulation mentioned. That tells me we may still be, as Ron King says, “the
\nforgotten industry”?although through NIA it is being promoted. Insulation has
\nto become a forethought rather than an afterthought.<\/span><\/p>\n

3. What were your biggest challenges in 2011 and what do
\nyou foresee as the main challenges in 2012?<\/span><\/b><\/p>\n

It is not just a challenge for the upcoming year but
\nthe future as a whole, and that is the demographic of our workforce. Insulation
\nis a wonderful field to work in and truly is a learned skill. Our craftsmen can
\nmake a good living for themselves and their families. The most difficult part I
\nsee is encouraging young people to come work in our industry and the
\nconstruction industry as well. Throughout the country, training programs are
\navailable if they are ready to learn.<\/span><\/p>\n

Another challenge is getting more of the
\nengineering firms, architectural firms and even the end users to think about
\ninsulation during the pre-engineering and\/or design process and perhaps get us
\ninvolved on the front end of projects. We have a wealth of knowledge that can
\nbe beneficial in most cases. If they would seek input from us, we might be able
\nto assist in a better design and save them money. <\/span><\/p>\n

4. How can the industry better educate facility owners
\nabout the advantages of proper and timely maintenance, as well as the risk of
\nnot having an effective maintenance program?<\/span><\/b><\/p>\n

I think with the tools and information available
\nthrough NIA, many members are attempting to do this every day. This past fall
\nseveral NIA Members made a presentation to the National Association of State
\nEnergy Officers (NASEO) at their annual convention on the role of insulation
\nwith regard to energy conservation, and I believe it opened many of their eyes.
\nRather than just talk about how insulation can affect energy efficiency, an
\nactual example was used where the savings were significant with a quick return
\non investment. Additionally, when we discussed the reduction in greenhouse
\ngases, it really got their attention. We must continue to take advantage of
\nthese types of opportunities to get in front of groups like NASEO to present
\nour message.<\/span><\/p>\n

Facility owners are looking for ways reduce costs and we have
\nthe products that can produce almost instantaneous results. Now when I speak to
\nfacility owners, I use concrete examples of how proper insulation can save them
\nmoney and reduce their carbon footprint. Some are beginning to listen. Just
\nabout every state in the country has a budget deficit and is looking for ways
\nto reduce expenses. We are on the cusp of helping them toward that endeavor.<\/span><\/p>\n

For more information, call
\n225-343-0471 or visit <\/span><\/b>www.pentrincorp.com<\/span><\/i><\/b><\/a>.<\/span><\/i><\/b><\/p>\n


<\/p>\n

<\/p>\n

1. In your opinion, what is the current state of the
\nindustry? <\/span><\/b><\/p>\n

The state of the industry is good?not strong, but
\ngood. Those of us in the insulation industry are encouraged by improvements in
\nthe industrial sector, where some large construction and renovation projects
\nare starting. In the commercial sector, we are
\nseeing growth with smaller one- and two-story commercial projects.<\/span><\/p>\n

Institutional
\nsectors like hospitals, schools and government projects remain a mainstay for
\nthis industry. They helped us weather the recession. Serving these industries
\nwell is very important for companies in our industry. <\/span><\/p>\n

In the residential industry, housing starts
\nare slow but are expected to increase as 2012 progresses. When this market
\nincreases, we will see growth of consumer confidence, which impacts all types
\nof businesses to a degree. <\/span><\/p>\n

There is growth in the retrofit and
\nrenovation side of our business. There’s a lot of uninsulated pipe and duct out
\nthere. This represents a huge opportunity for the insulation industry. <\/span><\/p>\n

2. What initiatives would you suggest the industry undertake
\nto promote the perception of mechanical insulation as an important energy
\nefficiency initiative?<\/span><\/b><\/p>\n

Education is and always has been the key. We have to
\ncontinue to tell the story of how insulation is a great investment and how, in
\nmany cases, it will pay for itself in months and not years. It is an investment
\nthat pays greater dividends the more expensive energy becomes; and I don’t
\nthink anyone expects energy?at least not petroleum-based energy?to become
\ncheaper long term. Our industry needs to champion energy efficient
\nconstruction. We have to remind our customers that energy efficiency doesn’t
\nhappen without mechanical insulation! As energy costs go up, the savings from
\ninstallation of adequate insulation will pay back even quicker. It’s an easy
\nstory to sell, and it bears repeating again and again.<\/span><\/p>\n

Telling the story of the energy-saving benefits of insulation
\nwill also help to reduce the instances of insulation being
\n“engineered out” of projects for the purpose of cost savings. As Building
\nInformation Modeling (BIM) takes hold in the building community, engineers and
\narchitects will continue to do more pre-construction analysis. This analysis in
\nthe pre-construction phases holds the potential for validating insulation
\nproducts?perhaps even one day demonstrating to owners and engineers what the
\nexact value is. When that happens, engineers and owners will begin to see
\ninsulation as a non-negotiable mechanical component.<\/span><\/p>\n

For more information, call
\n919-304-3846 or visit <\/span><\/b>www.armacell.us<\/span><\/i><\/b><\/a>.<\/span><\/i><\/b><\/p>\n


<\/p>\n

<\/p>\n

1. In your opinion, what is the current state of the
\nindustry? <\/span><\/b><\/p>\n

Indications are that the economic downturn, which
\nstarted over three years ago, has just about run its course; and that activity
\nin the construction industry is beginning to grow. However, that growth is slow
\nat best.<\/span><\/p>\n

2. What do you see happening in the insulation industry
\nover the next year?<\/span><\/b><\/p>\n

As the economy grows, there should be more
\nopportunities for all insulation in the coming year. As the awareness of the
\nvalue of insulation increases, our industry should be in a favorable position
\nto expand at a more rapid pace than the general economy.<\/span><\/p>\n

3. What were your biggest challenges in 2011 and what do
\nyou foresee as the main challenges in 2012?<\/span><\/b><\/p>\n

We had difficulty controlling healthcare costs in
\n2011 and we expect that to continue through 2012 and beyond as the new
\nhealthcare legislation begins to take effect. Price increases in almost all of
\nour raw materials and finished goods expanded at a rate that was difficult to
\nkeep up with. Our customers, especially contractors, were hard pressed to
\nestimate what material costs would be for jobs they were asked to quote. That
\ntrend is continuing in 2012. The recent rise in fuel prices also will affect
\nus.<\/span><\/p>\n

4. What changes would you like to see in local, state, or
\nfederal regulations or energy policies related to mechanical insulation in the
\ncommercial and industrial markets? <\/span><\/b><\/p>\n

Anyone who listened to the State of the Union heard
\nthe president use the word “insulation” when he was discussing energy savings.
\nThat is a very positive sign. NIA has been in the forefront of the effort to
\nget energy legislation through Congress. There is a good story to be told about
\nthe value of insulation, and we are telling it.<\/span><\/p>\n

5. What are the products or insulation systems of the
\nfuture? When can we expect to see them? <\/span><\/b><\/p>\n

While it is difficult to predict the future, there
\nhave been several new products that have come to market in the past several
\nyears: Aerogels and fiberglass with non-organic binders being two of them. I
\nwould anticipate that this trend will continue.<\/span><\/p>\n

6. What initiatives would you suggest the industry
\nundertake to promote the perception of mechanical insulation as an important
\nenergy efficiency initiative?<\/span><\/b><\/p>\n

As I drive to work each day, I pass several
\nbillboards along the interstate highway extolling the virtues of insulation.
\nThese ads are paid for by Local 17 of the Heat and Frost Insulators of Chicago.
\nI would not have guessed 5 years ago that I would be seeing this. We, along
\nwith many others, are doing lunch-and-learn presentations to engineers and end
\nusers and we are having an easier time getting past the gate keepers! These are
\nsome of the things that we, as suppliers, are doing; and I know that the
\ncontractors and manufacturers are engaged in similar activities.<\/span><\/p>\n

7. What potential events do you foresee over the next two
\nyears in the construction industry?<\/span><\/b><\/p>\n

There has
\nbeen some consolidation in our industry, and I would expect that would
\ncontinue. We have been in an unsettled political climate for some time now, and
\nthat will continue at least until the election in November.<\/span><\/p>\n

For more information, call
\n800-775-4485 or visit <\/span><\/b>www.insulationfabricators.com<\/span><\/i><\/b><\/a>.<\/span><\/i><\/b><\/p>\n","protected":false},"excerpt":{"rendered":"

Economic analysis and the 30,000-foot view are valuable ways to assess the state of the mechanical insulation industry, but for this issue, Insulation Outlook wanted to get the perspective of those who work in the industry on a daily basis: National Insulation Association Members. The following interviews will give you a glimpse into the challenges<\/p>\n","protected":false},"author":[],"featured_media":0,"template":"","categories":[37,302],"class_list":["post-6955","articles","type-articles","status-publish","hentry","category-market-research","category-economy"],"acf":[],"yoast_head":"\nNIA Industry Leaders Interview Series: State of the Industry - Insulation Outlook Magazine<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/insulation.org\/io\/articles\/nia-industry-leaders-interview-series-state-of-the-industry\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"NIA Industry Leaders Interview Series: State of the Industry\" \/>\n<meta property=\"og:description\" content=\"Economic analysis and the 30,000-foot view are valuable ways to assess the state of the mechanical insulation industry, but for this issue, Insulation Outlook wanted to get the perspective of those who work in the industry on a daily basis: National Insulation Association Members. 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