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April 30, 2009

INDUSTRY ACCESS*

AAMA Releases Voluntary Test Method for Thermal Transmittance and Condensation Resistance

AAMA 1503-09, a voluntary test method for windows, doors and glazed wall sections, has been released by the American Architectural Manufacturers Association (AAMA). The test method, titled Voluntary Test Method for Thermal Transmittance and Condensation Resistance of Windows, Doors and Glazed Wall Sections contains the latest improvements evolving from over 25 years of thermal testing by AAMA accredited testing laboratories. The test method measures the thermal characteristics of windows, doors and glazed exterior wall sections under steady-state conditions. Specifically, measurements and calculations made using this procedure can be utilized to determine the thermal transmittance (air-to-air) or U-Factor, the air infiltration rate and/or the condensation resistance factor. Full Story Additionally, read the AAMA response to The Department of Energy (DOE) revisions to the ENERGY STAR program for windows, doors and skylight performance criteria was finalized April 7, 2009, and will take effect Jan. 1, 2010 by clicking here.

2009 Wholesale Distribution Economic Reports

The NAW Institute for Distribution Excellence has released 2009 Wholesale Distribution Economic Reports for 19 different product lines. These Reports are available for immediate download as PDF files. To order, click here or call 202.872.0885. Quantity discounts apply when ordering two or more Reports.

The 2009 Wholesale Distribution Economic Reports — written by Adam J. Fein, Ph.D., President of Pembroke Consulting — contain detailed 2008 economic statistics on the $4.5 trillion wholesale distribution industry, including revenue and employment growth trends, the number and size distribution of companies, gross margins, wages, and many other operating statistics. According to Fein, total revenues of wholesaler-distributors grew by 8.4% to $4.5 trillion in 2008, marking another year of strong top-line performance. However, revenues increased by a more modest 0.5% after adjusting for inflation. Fein forecasts that (unadjusted) industry revenues will increase between 0.6% and 1.6% in 2009 as the recession and the decline in commodity prices hurt some of the largest sectors. Read more at his Distribution Trends blog.

Click here for more Industry Access news including recent new hires, merger & acquisition activity and who's offering new products.

* DHI Members may submit news releases to be considered for inclusion in DHI's IndustryWatch. Send to: jmadden@dhi.org.

BUSINESS UPDATE

The International Code Council announces its intent to initiate a "Green Building Code Development Project" targeted at the commercial market. The objective of this new project is to develop a Green Building Code for traditional and high-performance buildings that is consistent and coordinated with the ICC family of Codes and Standards. The code will provide a new regulatory framework built with leading recognized rating systems in mind. Full Story (PDF file)

After a series of historic lows, the Architecture Billings Index (ABI) was up more than eight points in March. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the March ABI rating was 43.7, up from the 35.3 mark in February. This was the first time since September 2008 that the index was above 40, but the score still indicates an overall decline in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry score was 56.6. Full Story

Canadian non-residential construction fell for the first time since 2004 between January and March of this year, the latest signal that the country's recession is making businesses reluctant to spend. The value of new projects such as warehouses and factories fell 1.8% to C$10.8 billion ($8.9 billion) in the first quarter, according to Statistics Canada. Commercial projects fell 3% to C$6.6 billion, and industrial work fell 4.7% to C$1.2 billion, reported Bloomberg.com. Full Story

CONSTRUCTION & DESIGN

To help Building Teams meet energy efficiency design goals, ASHRAE and other building industry organizations have developed the Advanced Energy Design Guide for K-12 School Buildings. The guide provides recommendations for achieving 30% energy savings over the minimum code requirements of ANSI/ASHRAE/IESNA Standard 90.1-1999. Estimates show that a full 16% of schools districts' controllable costs is spent on energy, reported Building Design and Construction. Full Story

New modeling by the World Business Council for Sustainable Development (WBCSD) shows how energy use in buildings can be cut by 60% by 2050 – essential to meeting global climate change targets – but this will require immediate action to transform the building sector. This is the central message of the report from the WBCSD's four-year, $15 million Efficiency in Buildings (EEB) research project, the most rigorous study ever conducted on the subject. The EEB's report Transforming the Market: Energy Efficiency in Buildings, its unique simulation model and the project's roadmap to transform the building sector. Full Story

The U.S. Green Building Council (USGBC) has released new LEED regional credits as part of LEED 2009, the new version of the LEED Green Building Rating System. These LEED credits encourage that specific regional environmental priorities be addressed when it comes to the design, construction and operations of buildings in different geographic locations, reported Building Design & Construction. Full Story

The West Virginia School Building Authority has awarded Follansbee Middle School with a $1.3-million dollar grant. That money will be used to replace all of the windows and doors at the school. The school board must come up with the other $600,000 needed to complete the project, reported WTRF.com. Full Story

The 760,000-square-foot expansion planned for Children's Hospital in Birmingham is set to break ground on May 14. The expansion is the largest project ever approved by the state's Certificate of Need board, coming in at $570 million, and will be the first hospital in Alabama to register for LEED certification from the U.S. Green Building Council, reported Birmingham Business Journal. Full Story

SECURITY & SAFETY

Although the security business is holding up better than other parts of the economy today, one area that is more challenged than others is access control. Five out of six security systems integrators interviewed for Security Distributing & Marketing's State of the Market: Access Control article say the number of new access control installations they are doing today is the same or lower than the number of new installations they were doing a year ago. Yet, there are bright spots within certain segments, services and geographic areas. And standardization, legislation, compliance and economic stimulus efforts may help stimulate the market and maintain a healthy level of sales of access control solutions in 2009. Full Story

The Security Industry Association (SIA) has announced its federal legislative priorities for 2009, with most of the seven items on the list focused on ensuring adequate funding to secure the nation's critical infrastructure and facilities. Full Story

GOVERNMENT AFFAIRS

Federal contractors will now have until June 30 before they have to use the E-Verify system to check the eligibility of their employees to work in the U.S. The Obama administration postponed the date the electronic verification rule would apply to government contractors and subcontractors in order to have more time to review it, according to U.S. Citizenship and Immigration Services. The rule was issued by the Bush administration in November, reported The Denver Business Journal. Full Story

Associated Builders and Contractors (ABC) announced the results of a new study that showed from 2000 to 2007, construction labor unions spent more than $1 billion in union wages to underbid nonunion contractors in a practice called "job targeting." In job targeting programs, also known as market recovery funds, organized labor officials collect fees from union members and then funnel that money to union contractors – and in a few cases, nonunion contractors – to compete for projects on which they otherwise would not be competitive. The study was conducted by George Mason University's John M. Olin Institute for Employment Practice and Policy. Full Story

The General Services Administration, the U.S. government's facilities manager, is one of the first federal agencies to disseminate green stimulus dollars for the real estate sector, reported GreenerBuildings.com. The GSA's ambitious green facilities initiative is focused in three areas, totaling $5.55 billion:

$4.5 billion: Federal building conversion to high-performance green spaces
$750 million: Federal building and courthouse renovations
$300 million: Renovation and construction of land ports of entry.

SMALL BUSINESS NEWS

Cap and Trade

The House Energy and Commerce Committee will attempt to be the first committee to approve a bill to reduce emissions of greenhouse gasses. The approach of the bill is to set total emission limits (the cap) for the gasses. Companies would then buy permits from the government (the permits will be "auctioned" to establish the fee) for some of the capacity under the cap (generally referred to as an allowance). Under their bill, the purchasers of the capacity allowance would be permitted to sell these permits. In effect, there would be a market for them and permit holders and others would be "trading" them. And that's how we get the term "cap and trade."

Allowances are required for emissions of the specified covered gases (the bill converts the emissions into Carbon Dioxide (CO2) equivalents so the reference to CO2 is what you will probably read or hear about) exceeding 25,000 tons a year. As a result, most small businesses will not need to have an allowance. But the Environmental Protection Agency estimates 13,000 facilities do emit at least that much, so some smaller manufacturers will be required to secure a permit. The indirect costs, particularly energy costs, are the primary concern for small businesses. The question of what is done with the revenue is also a concern for small business.

DHI NEWS

DHI NATIONAL EDUCATION UPDATE
May 10th – 17th, 2009 in Lansdowne, VA

The following classes are now SOLD OUT:

COR125 Takeoff and Estimating
COR133 Electrified Architectural Hardware

The deadline to register for DHI's upcoming National School in Lansdowne, VA is rapidly approaching. Whether you are working towards a certification, want to advance your education, or just need to earn CEP points, this school offers something for all levels of education.

Classes are filling FAST and several have ONLY A FEW SPOTS LEFT!

So ACT NOW and click here for a complete list of courses and to register online.

**DHI's Plan Room Goes Digital!**

As we all adjust to this new economic climate, we are learning to do things more efficiently and cost effectively. DHI is making every effort to ensure we are maximizing our resources and spending your member dollars wisely while still increasing your benefits. For this reason, DHI is excited to introduce the Spring 2009 Electronic Plan Room. Check it out by clicking here.

While it still has the same look and format of the traditional printed issues, this eco-friendly and economical copy can be downloaded to your laptop or flash drive, allowing you to read it on the go. All email addresses and web sites contained within each issue are hyperlinked, providing you direct access to key industry contacts. As an added bonus, producing The Plan Room electronically eliminates previous space constraints, allowing us to include even more helpful information on everything from reducing your operating expenses to local chapter updates.