����
������ ��
www.eastmillstreet.com
CONTENTS John Fulmer
WORK HISTORY
Sustainable building page 3 constructionmonthly.com
TED (The Electrical Distributor) East Mill Street Studio, Belcamp, Maryland
Freelance writing, editing and design. Specializing in trade magazines, business writing and production-oriented graphic
Portable generator reviews page 4
MAY 2007
design with expertise in InDesign, Illustrator, Photoshop, FrameMaker and QuarkXPress. September 2005 to present.
Consumers Digest
Mountain Home, Wellsboro, Pennsylvania
Woodrow Wilson Bridge project profile page 6 Managing editor for regional magazine. As freelance contract employee, managed freelance staff, planned editorial content,
Electrical Contractor wrote everything from 5,000-word cover stories to 300-word blurbs, took photographs, and copyedited and laid out 48-page
book with InDesign, Illustrator and Photoshop. March 2007 to April 2008.
2005 Construction Forecast page 9
Electrical Contractor
7 Smart Strategies to Cut Costs
Electrical Contractor, Security + Life Safety Systems, Bethesda, Maryland
Editor of trade magazines from July 2004 to September 2005. Supervised four-person staff, developed editorial calendar and
Bruce Fowle, FAIA, LEED
SENIOR PRINCIPAL, FXFOWLE ARCHITECTS How to Avoid the Low Bid Trap
writers’ budget, and gave 20-plus freelancers assignments and story direction. Contributing writer from February 2003 to July
Electrical Contractor
How do they Affect You?
2004. Associate editor and Products editor from June 2002 to February 2003. Did layout with QuarkXPress and Photoshop.
SPECIAL SHOW EDITION
"MM-BOFT$MFBS
"MM-BOFT$MFBS General assignment reporter for daily newspaper. May 1987 to March 1988.
130'*-&
EDUCATION
ª+04&1)30.&0
8
&--*/(50/108&3$031
B1JUUTCVSHICBTFE SPPNTVOEFSUIFCBTDVMFTFDUJPOTSPBECFEBOESPVUFEUISPVHI 0OBDPME
TVOOZ%FDFNCFSNPSO
FMFDUSJDBMDPOUSBDUPS
JTIFMQJOHUPSFMJFWFPOFPG BQMBUPPOPG$VUMFS)BNNFSTXJUDIHFBSUPGFFEUIF
IQ JOH
8JOUFSTBOE+JN'VTT
HFOFSBM
UIFXPSTUCPUUMFOFDLTJOUIF6OJUFE4UBUFTCZ HFBSNPUPSTBOEDPSSFTQPOEJOHCSJEHFDPOUSPMT TVQFSJOUFOEFOU
MFEBHVJEFEUPVSPG
FMFDUSJGZJOHUIFXPSMETMBSHFTUESBXCSJEHF 8JSJOHBOZKPCPGUIJTTDPQFXPVMECFUSJDLZFOPVHI
CVU UIFQSPKFDU'SPNUIFUPQPGUIFOFXCSJEHF
GFFUUBMMFSUIBOJUT $$57
BXJSFMFTTSPBETJEFXFBUIFSJOGPSNBUJPOTZTUFN
SFNPUF
'PSNPSFUIBOUXPZFBST
8FMMJOHUPOIBTCFFOXPSLJOHPO UIFNBKPSJUZPGUIJTiXJSFwJTGPVSJODIFTJOEJBNFUFS
QSFEFDFTTPS
UIFSFJTBDMPTFVQWJFXPG0ME5PXOTXJOUSZTUSFFUT USBGGJDNJDSPXBWFTFOTPSBOEGJCFSPQUJDDPNNVOJDBUJPOTZTUFNT
UIFOFX8PPESPX8JMTPO.FNPSJBM#SJEHFUIBUXJMMDSPTTUIF GFFUMPOHBOEXFJHITQPVOETBGPPU*UJTQSPUFDUFECZTUFFM BOEOPOTUPQUSBGGJD VTJOH5SBOTEZO
1MFBTBOUPO
$BMJG
BTBTVCDPOUSBDUPSUPEFTJHO
1PUPNBD3JWFSOFBS"MFYBOESJB
7B
POUIF$BQJUBM#FMUXBZ5IF
#FMUXBZ
BOFJHIUMBOFIJHIXBZ
DJSDMFT8BTIJOHUPO
%$5IF
DBCMFBSNPS
XSBQQFEJOUBSJNQSFHOBUFEKVUFBOEQPMZFUIZMFOF
KBDLFUT
BOEMBJEJOBUSFODIEVHXFMMCFMPXUIF1PUPNBDT
i:PVIBWFUXPGBDUJPOTIFSF
w8JOUFSTTBJEi:PVIBWFUIF
TUBUFBOEBMMUIFNPUPSJTUTBOEUIFDPNNVUFSTUIBUDBOUXBJUGPS
UIFCSJEHFTiJOUFMMJHFOUUSBOTQPSUBUJPOTZTUFNw
*OBEEJUJPO
8FMMJOHUPOXBTBXBSEFEUIFFMFDUSJDBMDPOUSBDUGPS
1220 Independence Square
1)050$0635&4:0'1050."$$3044*/($0/46-5"/54
8FMMJOHUPOXJOTDPOUSBDU
IBWFTIFE
BOEPODFIBEEPVCMFUIFJSDVSSFOUXPSLGPSDF
i8FWFCFFOVQUIFMBEEFSBOEGJOEUIFBSFBXFSFJOOPXGBJSMZ
DPNGPSUBCMF
w-PGUVTTBJE
BEEJOH8FMMJOHUPOIBTSFDFOUMZQVUB
410.272.2352/814.512.1482 cell
814.975.1144 fax
CSJEHF
DPOTUSVDUFEQBSBMMFMUPUIFPMETQBO
XJMMIBWFBGPPU SFMBUJPOTQMBZFEBCJHQBSUJOUIFOFX8JMTPOCSJEHFQSFQBSBUJPOT 8IBUNBEF8FMMJOHUPOBHPPEDIPJDFGPSUIFOFXCSJEHFJTUIF NBSLFUJOHGJSNJOUPUIFNJYi'JSTU
XFSFIBWJOHUIFNVQHSBEF
XJEF
MBOFCBTDVMF5IFFJHIUCBTDVMFTFDUJPOTUIFTUFFM )JTDPOTUSVDUJPOUSBJMFSDPNQMFYJTUVDLFEVOEFSUIFPMECSJEHF
GVMMTFSWJDFDPOUSBDUPSTGJOBODJBMTUSFOHUIBOEFYQFSJFODFXJUI BMMPVSCVTJOFTTEFWFMPQNFOUNBUFSJBMT*UIJOLPGNBSLFUJOHBTB
MFBWFTUIBUPQFOGPSCPBUUSBGGJDBSFMJGUFECZIVHFTFNJDJSDVMBS BMPOHXJUIPUIFSKPCTJUFUSBJMFSTBOETUBHJOHBSFBT
BMMIFNNFEJO NBSJOF
CSJEHFBOEUSBGGJDNBOBHFNFOUQSPKFDUT#FTJEFTUIF QSFTFOUBUJPOPGXIBUXFEPBOETJODFXFEPNBOZTQFDJBMUZQSPKFDUT
johnsfulmer@hotmail.com
HFBST0OFPG8FMMJOHUPOTKPCTJTUPQSPWJEFUXPLJMPWPMU L7
CZ+POFT1PJOU1BSLBMPOHUIF1PUPNBD5IFSFJTWFSZMJUUMFSPPN TVCNFSTJCMFCSJEHFDPOUSPMDBCMF
TFDPOEBSZQPXFS
MJHIUJOH
BMPUPGQFPQMFBSFOUBXBSFUIBUXFSFNPSFCSPBECBTFEUIBOUIF
QSJNBSZDJSDVJUTUIBUBSFUFSNJOBUFEBUTVCTUBUJPOTJOFMFDUSJDBM UPNPWF
QBSLXPSLUSVDLTPSTUPSFNBUFSJBMT QFEFTUSJBOXBSOJOHBOEHBUFTZTUFNT
8FMMJOHUPOXJMMJOTUBMM DPOWFOUJPOBMFMFDUSJDBMDPOUSBDUJOHGJSNw
fully versed on the topic of sustainable law this year by Congress has numerous
building, he was aware that contractors energy-efficiency provisions, and certifica-
were talking about it. tion in the U.S. Green Building Council’s
“I do know they are being pushed from (GBC) Leadership in Energy and Environ-
the architectural level on the plans and mental Design (LEED) program is increas-
drawings and in the specifications,” ingly seen as an important resume builder
Schmid said. “Distributors need to under- for architects, engineers, and designers.
stand that to have an efficient and effec-
tive supply chain we have to be on the LEED looks like the future
S
ustainable building—also known as same page. of construction
green building—is a construction “Many times the contractors see LEED sets guidelines for building perfor-
process that focuses on energy- things before we do, and we’ve just got mance and the construction partners’
efficient design, products, and to be prepared,” he continued. “Other- ability to meet sustainability goals. The
applications. Integrated building systems, wise, we’re going to be in a reaction program promotes new methods for sus-
a frequently used term in sustainable mode. I’m concerned because I don’t tainable site development, water and
building, typically describes HVAC, elec- think we’re paying enough attention. For material use, and energy efficiency.
trical, lighting, security, and other systems us to do our jobs with our channel part- LEED offers project certification, profes-
that work together to minimize energy use. ners—on both sides, the manufacturers sional accreditation, training, and practi-
For instance, a software-based lighting and the contractors—we have to be pro- cal resources. (There’s much more to
control system can automatically cut off active and, if noth- LEED; learn more
fixtures when it senses they aren’t re- ing else, a liaison about it at www.
quired, or dim electrical light in individual for the information.” Buildings that meet the highest usgbc.org.)
rooms as sunlight levels rise. environmental standards are economical LEED is a volun-
Of course, the major problem with Sustainable tary federal pro-
sustainable building is that sophisticated initiatives to run and do not compromise the gram, but as indi-
lighting control systems aren’t cheap— California, a front- health of the environment, the builders, vidual states con-
and contractors and designers have to runner in environ- tinue to set energy
convince owners they’ll be blessed with mental issues, re- or the building’s occupants. codes, there will be
long-term energy savings while being cently revised its an outcry for na-
cursed with expensive initial product Title 24 energy codes (which went into tional standards in energy-efficient de-
costs. effect Oct. 1). Title 24 is a comprehensive sign and products. The National Elec-
Another issue is that as energy costs building code that includes provisions for trical Manufacturers Association (NEMA)
increase, so does the momentum for energy-saving electrical products and has already protested the Massachusetts
green building—and there soon may be applications. Title 24 dispels the notion legislation, calling it “part of a patch-
little choice but to go sustainable, es- that all high-efficiency electrical applica- work quilt of state laws” and saying
pecially in public sector construction. tions need to be expensive, as the stan- “its authors failed to include input from
This can be problematic, because while dards allow a mix of low- and high- manufacturers.”
the average American consumer buying efficacy products to meet targets. (The “The Massachusetts bill, as it now
a household appliance is aware of the standards can be downloaded from the stands, would create barriers to interstate
Environmental Protection Agency’s Ener- California Energy Commission’s Web site commerce and no doubt create conflict
gy Star rating system, contractors, dis- at www.energy.ca.gov/title24/index.html.) between Massachusetts standards and
tributors, and manufacturers are some- Other states have similar codes. On those of other states, not to mention fed-
what uniformed about the sustainable Sept. 22, the Massachusetts House of eral standards," said NEMA President
movement. Representatives passed a bill that man- Evan Gaddis in a press release.
Dick Schmid, vice president of mar- dates energy-efficiency standards on a But Gary Flamm, lighting program lead
keting at Crescent Electric Supply in East wide array of electrical products. In ad- for the California Energy Commission,
Dubuque, Ill., said that while he wasn’t dition, the Energy Policy Act signed into Continued on page 20
18 T H E E L E C T R I C A L D I S T R I B U T O R � D E C E M B E R 2 0 0 5 � w w w . t e d m a g . c o m
���������������
�������
�����������������
�����������������
�������������
�����������������������������
����������������������������������������������������������������������������������������
����������������������������������������������������������������������������������������
�
������������������������������������������ ������������������������������������������������������������� �������������������������������
���������������������������������������������������� ������������������������������������������������������������� �����������������������������������
���������������������������������������������� ����������������������������������������������� �������������������������������������
��������������������������������������������� ��������������������������������������������������������� ��������������������������������������������������������������������� �������������������������������������������������������������
�������������������������������������������������������� �������������������������������������������������������������� ������������������������������������������������������������������� ����������������������������������������������������������������
����������������������������������������������������������� ���������������������������������������������������������������� ��������������������� �����������������������������������������������������������������
���������������������������������������������������������������� �������������������������������������������������������������� ���������������������������������������������������������� ��������������������������������������������������
������������������������������������������������������������� ����������������������������������������������������������� ������������������������������������������������������������������ ����������������������������������������������������������������
����������������������������������������������
��������������������������������������������������������������� ����������������������������������������������������������� ���������������������������������������������������������������� ���������������������������������������������������������������
������������������������������������������������������������������ ��������������������������������������������������������������� ������������������������������������������������������������� ������������������������������������������������������������������
������������������������������������������������������������ �������������������������������������������������������������� ������������������������������������������������������������������� ��������������������������������������������������������������
���������������������������������������������������������������� ���������������������������������������������������������������� ������������������������������������������������������������������� ������������������������������������������������������������������
�������������������������������������������������������������� ������������������������������������������������������������� ���������������������������������������������������������������� ���������������������������������������������������������������
������������������������������������������������������������� ������������������������������������������������������������� ��������������������������������� ���������������������������������������������������������
����������������������������������������������������������������� ������������� ����������������������������������������������������������������
�������������������������������������������������������������� ����������������������������������������������������������� ������������������������ ����������������������������������������������������������������
������������������������������������������������������������������� ������������������������������������������������������������������� ������������������������������������������������������������� ���������������������������������������������������������������
������������������������������������������������������������ ����������������������������������������������������������������� ����������������������������������������������������������������� ������������������������������������������������������������������
������������������������������������������������������������������ �������������������������������������������������������������������� ������������������������������������������������������������ ��������������������������������������������������������������������
������������������������������������������������������������������� ����������������������������������������������������������������� ������������������������������������������������������������� ������������������������������������������������������������������
������������������������������������������������������������������ ��������������������������������������������� ������������������������������������������������������������� �������������������������������������������
����������������������������������������������
���������
���������������������������������������������������������
�������������������������������������������������������
������������������������������������������������������
������������������������������������������������
���������������������������������������������������
�������������������������������������������������
��������������������������������������������������������
��������������������������������������������������������
������������������������������������������������������
�����������������������
��������������������������������������������������
���������������������������������������������������������
������������������������������������������������������������������� �����������������������������������������������������������������
������������������������������������������������������������������� �����������������������������������������������������������
������������������������������������������������������������������� ���������������������������������������������������������������
�������������������������������������������������������������� ��������������������������������������������������������������������
��������������������������������������������������������������������� ���������������������������������������������������������������
���������������������������������������������������������������������� �������������������������������������������������������������
���������������������������������������������������������� ��������������������������������
���������������������������������������������������������������
������������������������������������������������������������������ �����������������
����������������������������������������������������������������� �������������������������������������������������������������
���������������������������������������������������������������� �������������������������������������������������������������
���������������������������������������������������������������� �����������������������������������������������������������������
������������������������������������������������������������������� �����������������������������������������������������������
������������������������������� ��������������������������������������������������������������
��������������������������������������������������������������
���������������� ������������������������������������������������������������������
����������������������������������������������������������� �����������������������������������������������������������������
������������������������������������������������������������� ������������������������������������������������������������
������������������������������������������������������������������� ��������������������������������������������
����������������������������������������������������������������� �����������������������������������������������������������
���������������������������������������������������������������� ��������������������������������������������������������������
������������������������������������������������������������������ �������������������
��������������������������������������������������������������� �������������������������������������������������������������
����������������������������������������� ������������������������������������������������������������������
���������������������������������������������������������� �������������������������������������������������������������
����������������������������������������������������������������� ����������������������������������������������������������������
������������������������������������������� �����������������������������������������������������������������
�������������������������������������������������������������� ���������������������
�������������������������������������������������������������� �������������������������������������������������������
������������������������������������������������������������������ ������������������������������������������������������������������
����������������������������������������������������������������� ������������������������������
�������������������������������������������������������������� ������������������������������������������������������������
������������������������������������������������������ ������������������������������������������������������������������������
������������������������������������������������������������ ����������������������������������������������������������������
������������������������������������������������������������� ���������������������������������������������������������
���������������������������������������������������������������� ��������������������������������������������������������������
��������������������������������������������������������������������� ��������������������������� ��
�����������������������������������������������������������������
���������������������������������������������������������������� ����������������������������������������������������
�������������������������������������������������������������������� �������������������������������������������������������������
����������������������������������������������������������������� ������������������������
FOCUS
Construction
Last year’s ELECTRICAL CONTRACTOR’s Construction Forecast
went halfway out on a limb to prognosticate that 2005
“may be a big year all around.” It’s easy—and wise—to be
tentative in predicting this year’s economy, and some in-
dustry gurus have done just that, sticking with “maybe.”
A group of these gurus assembled at the Reed Con- and said that sector should drop 3 percent in 2005 after
struction Data’s North American Construction Forecast achieving double-digit dollar growth the previous three
conference and the McGraw-Hill Outlook 2005 Executive years. McGraw-Hill’s estimate reflects construction starts
Conference in Washington, D.C., last fall. At Reed, the and varies significantly from Reed’s figure for 2005’s es-
consensus was the current economic downturn is tempo- timated U.S. total construction spending (or put-in-place
rary, but the experts there were cautiously optimistic. They construction), which tops the trillion mark, a 4 percent
felt a recovery would begin this year and gain momentum jump from 2004. But, again, the growth rate weakened
through 2007 in the face of higher interest rates and slow when compared to 2004’s estimated 7 percent increase.
job growth. Several industry sectors, such as industrial Reed also includes renovation construction, which isn’t
with 14 percent growth and public works with 2 percent, listed in McGraw-Hill’s estimate. Here’s the breakdown
will have a good two-year run. from Reed:
With the Federal Reserve expected to raise the federal ® $384 billion in new residential spending; down 4 per-
fund rates above 3 percent in the last half of 2005 and cent from 2004
worries over oil and building-supply prices, the McGraw- ® $138 billion in residential improvements; up 7 per-
Hill group thinks the economy’s expansion will idle down cent
to 3.5 percent, down one-half percent from 2004. They ® $317 billion in nonresidential; a 13 percent hike
also spotted some general trends: ® $181 billion in nonbuilding a 7 percent jump
® Moderate job growth will fuel demand for offices and In general, the economy may “decelerate significantly
multifamily housing, though residential building may scale in 2005” according to Merrill Lynch chief North Ameri-
back from 2004’s record pace because of higher interest can economist David Rosenberg. He sees a growth rate
rates of just 2.5 percent in the first quarter of next year. And
® Looser lending standards will offset higher interest rates according to Peter Morici, a University of Maryland busi-
and free up construction funding ness professor:
® An improved economy will ease the states’ fiscal woes ® Gross domestic product, the value of all goods and ser-
and pump up the institutional building sector vices produced, will grow at a 3.5 percent annual rate,
® Bridge and highway construction will rise while electric down 3/10 to ½ percent from 2004
utilities will decline 8 percent. In the latter area, a loss ® The economy will create 144,000 jobs per month and
in plant construction will be partly balanced by transmis- the unemployment rate will fall only modestly
sion-line work ® Inflation, influenced by international commodity mar-
kets, will register at 2.4 percent in 2005, down 1 percent
The big picture from 2004.
So how does this translate into cold, hard cash? Robert However, Morici projects the consumer price index will
Murray, vice president of economic affairs at McGraw-Hill, “settle down” as gas prices continue to fall.
said the contract value of total U.S. construction should “That pulls a lot of prices with it,” he said.
reach $585.5 billion in 2005, a 2 percent jump over last
year’s figure, but a rather disappointing number considering Single- and multifamily housing
construction spending rose 9 percent between 2003 and David Seiders, the National Association of Home Build-
2004. (See chart on page 41.) ers’ chief economist, also called housing volume a key to
Murray noted this “all hinges on single-family housing” the economy and thinks, as Murray does, housing starts
1.2
1.0 the summer. The intent was to show what,
150
0.8 if any, changes I have made regarding my
0.6 100 outlook for each of the sectors.”
0.4 Despite good vital signs, Mueller thinks
50
0.2 hotel occupancy won’t pass the 65 percent
0.0 0 “average” until 2007. Retail is the stron-
2004 2005 2004 2005 gest, most recession-proof market, and low
<Single Family <IMultifamily <Single Family <IMultifamily interest rates and home refinancing have
given consumers a lot of spending cash.
The average retail occupancy—86 per-
Industrial Construction Outlook cent—will begin to grow in 2005.
Billions of 1996 dollars
40 Warehouses and RFID
35 In 2000, warehouse construction hit 304
30 million feet but dropped to 184 million in
25 2003, a stunning 40 percent loss. What
happened? In the 1990s, a strong retail
SOURCE: READ CONSTRUCTION DATA
20
sector and Internet sellers looking for stor-
15 age space boosted construction. But the
10 fabled dot-com bust and lukewarm retail
5 activity put speculative warehouse projects
0 on hold indefinitely and slowed build-to-
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 suit projects.
YTD Average (July): $10.0 Billion. Current Forecast $10.7 <Spring Forecast <Summer Forecast But vacancy rates, which peaked at
11.7 percent in third-quarter 2003 and fell
Haughey wrote. “In the leasing market, va- ings prices. In these cycles, sluggish expan- to 11.2 percent a year later, are turning
cancy rates for leased buildings, while still sion is followed by precipitous decline. around. Successful retailers are planning
high, are declining. Overall rents are now “We bottomed out in 1990, then peaked distribution centers, and McGraw-Hill says
stable or slightly rising. This increase in in 2000. But it only took three years to go this sector, after 5 percent growth in 2004
cash flow for building owners is prompting back to the bottom. We’ll now start climb- (193 million square feet) will leap 14 per-
more construction.” ing back up. This is a typical cycle,” he cent in 2005 to 220 million.
He outlined some other signs for nonresi- said. With warehouse construction, the Mc-
dential expansion: Rental growth, he said, is slow nearly Graw-Hill report noted the rapidly develop-
® Hotels reacting to rising room and oc- everywhere except Southern California ing use of radio frequency identification
cupancy rates and Florida, but should start moving up by (RFID) tags in tracking inventory. As Thom-
® Retailers adding space after a 7 percent 2006. Mueller believes the nation’s indus- as E. Glavinich wrote in ELECTRICAL CONTRACTOR
annual-sales jump trial sector will grow in 2005, and as the in April 2004: “Wal-Mart is requiring its
® Office expansion due to higher employ- job market improves, so will the multifamily top 100 suppliers to put RFID tags on their
ment levels and real estate. His colleague at the confer- pallets and cases by Jan. 1, 2005. Simi-
ence, Edward J. Sullivan, the Portland Ce- larly, the Department of Defense (DOD) is
Retail, industrial and real estate ment Association’s (PCA) chief economist, requiring suppliers to put RFID tags on its
At Reed, Glenn Mueller, Johns Hopkins has even higher hopes. He sees industrial shipments by 2005.”
University professor and Legg Mason Inc. climbing strong and steady, reaching $35 For electrical contractors, RFID technol-
real investment strategist, noted a “physi- billion by 2008, up from 2004’s level of ogy could mean limited opportunity in Cat
cal” real estate cycle reflects supply and just over $10 billion. It’s a height industrial 5 hard-wiring for stationary scanning sys-
demand for space and drives occupancy hasn’t reached since 1998. tems and unlimited opportunities in wire-
and vacancy. That sets rents and stimu- “It’s optimistic,” Sullivan said. “But I less network installations. But the technol-
lates construction. In the “financial” cycle, don’t know if many will agree with that.” ogy is evolving and its potential is as yet
changes in real estate capital affect build- The chart on this page, “Industrial Con- untapped.
“To what extent the use of RFIDs will af- square feet with slight improvement in 2013. The bulk of this activity will happen
fect warehouse demand is uncertain,” the schools, healthcare facilities and trans- in the West, with an 11 percent gain, and in
report stated, “but at the least it will increase portation terminals. Public buildings, such the South, with a 5 percent increase.
our need for new warehouse designs to be as courthouses and churches, will suffer a
able to accommodate new technology.” decline. Healthcare and other institutional
Healthcare construction in 2003 took a step
The institutional sector Building in education backward, dropping 5 percent to 92 million
Normally a steady performer, institutional In response to escalating student enroll- square feet, according to the McGraw-Hill
building has stumbled since 2002 and re- ments and heavy state and local funding, report, and dropped 1 percent in 2004 to
corded its third straight decline in 2004 education construction hit a peak with 91 million. Though this sector has seen de-
with minus 4 percent. McGraw-Hill blames 273 million square feet in 2001. But in clines recently, it has grown considerably
state and local governments’ poor health two years, it slid 12 percent to 241 million in the past seven years. In 1997 through
and their taxing structure, which is, in turn, square feet with the biggest losers being 2003, new construction averaged 93 mil-
tied to the economy. The states’ fiscal for- Midwestern and Northeastern states. Cali- lion square feet, up 28 percent from 1990–
tunes are irregular, but, in general, condi- fornia was the exception to the trend, rack- 1997’s 73 million-square-feet average.
tions are improving, the bad times having ing up an increase of 3.2 million square Several factors will help this area grow an
peaked. The report said: “This should set feet in 2001–2003. estimated 3 percent to finish 2005 with 94
the stage for an improved performance by In 2004, the pattern continued. Uni- million square feet in new construction:
institutional building in 2005,” and the versity-related construction fell 19 percent, ® Medicare reform and corresponding big-
“broader forces affecting the pattern of in- triggering an 11 percent drop in high school ger reimbursements
stitutional building are generally positive.” construction, a 13 percent decline in el- ® Hospitals are investing in new technology
These forces are the following: ementary schools and a 14 percent skid in and replacing older facilities in the face of
® Rising student enrollments junior high school construction. Community competition from specialty outpatient clin-
® A growing elderly population colleges had a slight increase, but museums, ics
® The population shift to the Sunbelt libraries and labs were down. At the time ® Bigger demand for healthcare exists as
® A large number of bond issues passed of the report, educational construction was baby boomers grow older
recently a facing a possible 10 percent across-the- The fiscal woes of governments have
® The residential sector’s strength in board drop to 217 million square feet, the squeezed financing of prisons, police sta-
2001–2004 will introduce need for insti- skimpiest total since 1998’s 203 million. tions, courthouses, and post offices. Steady
tutional facilities McGraw-Hill predicts that though in re- at 44 million square feet in 2000–2001,
In short, the report stated institutional treat, this sector will bounce back. Growing this building type took a cut to 35 million
will have a 3 percent gain to 518 million enrollments in 2005 will continue through in 2003 but was expected to rebound 10
The China, oil, green axis and lowering 2005’s GDP estimate
from 3.8 percent to 3.4 percent.
IF A THEME DEVELOPED at McGraw- At the time of the conferences, China and commodities
“The downward adjustment to the
Hill and Reed, it was a concern over oil prices were hovering at $55 a Though China’s commodity gobbling
current forecast primarily reflects
fuel prices, China’s emergence as barrel, yet Jim Haughey, in Reed caused building-material shortages
significantly higher oil price as-
an economic giant, and the impor- Construction Forecast Monthly, here, Haughey asaid China’s oil
said high energy prices, reduced thirst was slaking “and an absence sumptions,” the PCA reported in a
tance of “green” building, which
consumer confidence and lower of lineups at the gas station would revised forecast. “PCA fully incor-
was especially apparent by frequent
mention of the Leadership in Energy capital spending were mere bumps seem to indicate the price of oil is porates the likelihood of continued
and Environmental Design (LEED) ac- in the road to continued economic headed down soon.” oil supply disruptions in the context
creditation. A voluntary, consensus- development. Job losses such as of strong global demand conditions,
He supposed the price per bar-
based national standard for develop- those that occurred in previous oil resulting in a downward rigidity in
rel would drop $5 in the next few
ing high-performance, sustainable crises should not be a factor, his months, which proved to be pre- current oil price levels. The higher
buildings, LEED seemed to be on report said. scient. On Dec. 10, 2004, the price oil price scenario will weaken over-
everyone’s mind. During a McGraw- of light, sweet crude for January all economic growth. With higher
“As oil price-shocks go, this one is
Hill panel discussion with three of minimal. Prices are higher but sup- delivery had fallen to $42.53. oil prices, consumer spending will
the country’s leading architects, plies are readily available without be partially compromised, inflation
Also in late 2004, the oil market’s
Carl Roehling, president and CEO waiting or searching. Gasoline prices will run stronger, job gains will be
continued volatility—the tensions
of SmithGroup, said many younger would have to rise more than 60 and troubles in Iraq, Russia and smaller, and sentiment in both the
architects see a LEED accreditation cents—to above $2.50 per U.S. other production areas—had Edward consumer and business areas will
as an essential resume-builder and gallon—to match the impact on the J. Sullivan’s Portland Cement Asso- be more sedate. Combined, these
“half of our clients ask for a LEED economy of the 1991 oil shock. This ciation adjusting its 2004 gross do- factors lead to roughly a 50 basis
building.” (For more visit www.us- is very unlikely to happen,” Haughey mestic product projection, dropping point reduction in PCA’s previous
gbc.org/leed/leed_main.asp) reported. it from 4.4 percent to 3.9 percent, forecast for real GDP growth.”
Still China was a focal point. tices. During a Reed industry panel and development are shifting In short, contractors will be forced
Haughey said China’s decision to discussion—and throughout the gears into increasingly high into using new and unfamiliar
cool down its blistering-hot economy conference—it was common to hear demand.” design criteria if they wish to com-
caused cuts in worldwide orders in talk such as this, which comes from ® “Intelligent and integrated build- pete, especially for government
every sector. the Greenway Group Inc., whose ings are becoming the norm.” contracts, a sector that will most
chairman, James P. Cramer, was the ® “Some don’t have a clue about certainly employ the most stringent
“China accounted for more than 25
conference moderator: [LEED] but it’s coming to this green guidelines for sustainable
percent of world economic growth in
® “Green and sustainable design industry.” buildings.
the last year, so the canceled orders
had a significant impact immedi-
ately,” Haughey wrote. Most Significant Design Trends Over Next 5 Years
“Because China had been hoarding % of respondents
inventory of many commodities, the
Green architecture
country’s May–July (2004) orders
were probably below their consump- Healthy buildings; mold
tion and will have to rise later in the Smart growth/
SOURCE: McGRAW-HILL CONSTRUCTION
CONTRACTOR
By John Fulmer
T
HE BIANNUAL PROFILE, a feature of ® Job-cost control and analysis use grew by 20
this magazine for more than four decades, percent
aims for a comprehensive picture of con- ® CAD use doubled from 20 to 40 percent.
tracting from your perspective, providing an indi- Why? Because construction software’s ability
cation of where your business fits into the overall to streamline and consolidate project manage-
industry, while giving us a guide to the news and ment—from estimating to change orders—can
information that is important to you. give a competitive edge. And the construction-
The survey garnered 865 respondents, an software industry has responded to contractors’
increase of 152 from the last survey in 2002. It needs by improving existing programs, delving
was the first time we employed the Internet, and into new areas, and designing “lite” or graduated
the majority of responses (505) came through versions of their products to fit contractors of
that source. Is that a coincidence? Probably not. all sizes.
Our survey reveals most of you have discovered And here’s a programming note: We’ve des-
the business benefits of computers. Since 2002, ignated “small” firms as those with up to nine
a slightly higher percentage of respondents used employees; “mid-size” with 10 to 19; “large”
computers for word processing, Internet access with 20 to 99; and “very large” as those with
(including buying supplies online), accounting, 100 or more. Sixty-two percent of responses
e-mail and other basic office functions. However, came from small firms while 10 percent came
technology as a construction tool has grown by from mid-size, 15 percent from large and 11
leaps and bounds: percent from very large firms.
WHO ARE YOU? in those two areas, except that Caucasians— 2002 and which may point to a growing
S
EVENTY-ONE PERCENT of firms at 87 percent—and males dominate. We can, trend in integrating power distribution and
interviewed took in annual revenues however, parse the data to find 37 percent of low-voltage projects and the continued high
of $1 million or less and just 10 per- firms have minorities in management or field popularity of design-build. (But more about
cent made $10 million or more (See Figure positions, and those with women (in execu- that later, when we talk about what you do.)
2). The majority of contractors have some tive or field positions) or minorities are usually In general, firm size has little to do with
college education (8 percent who responded mid-size to very large contractors with $1 mil- higher education; the figures are more or
had electrical engineering degrees) and their lion plus annual revenue. Also, firms hiring less evenly distributed. The biggest gap is in
firms are diverse in race and gender, though minorities for management or field positions BA degrees and occurs between very large
in somewhat surprising ways. For instance, often hire females for nonclerical jobs, sug- firms where 24 percent of employees had a
while 42 percent of firms polled employ gesting the firms are either more diverse or bachelor degree and small firms where 13
women, they are woefully underrepresented these employees may be minority females. percent of employees earned one.
in traditional job categories such as jour- Firms hiring minorities tend to be located To get a more personal perspective, we
neymen at 3 percent or apprentices at 4 in the West and South with Northeast firms asked about hobbies, also a first-time ques-
percent. As you might expect, women make lagging behind in minority personnel. Texas, tion. About half the respondents engaged in
up a sizable portion of clerical workers, but with its large Hispanic population, charts as four or more of the leisure-time activities
the “executive” category, which includes one the states with the most diverse electri- listed, and we found the highest percent-
owners, has the next-highest percentage of cal-contracting work force. age, 59 percent of those surveyed, like to
women employed at 13 percent. It’s doubt- work around the house in their spare time.
ful all of them are owners and therefore An educated work force Yet another “why,” but one that’s pretty
probable many are hired into marketing,
It’s pretty safe to compare education data easy to answer. Contractors work hard
accounting and human resources. for 2004 with those from 2002; the fig- and feel a sense of accomplishment in
This is the first time our survey takes race
ures haven’t changed appreciably. Two what they do for a living, in building and
and gender into account, so it’s hard to draw
years ago we reported 68 percent of survey improving things. So it’s no surprise that
big-picture conclusions about the work force
respondents had some college, 18 percent “home improvement” tops the list and that
had a BA degree and a contractor’s work ethic and pride in a job
14 percent an AA well done is put to good use on days off.
FIGURE 1. Firm Size: Number of Employees degree. Our 2004 Contractors love to travel (51 percent) and
survey shows: enjoy the great outdoors: 39 percent chose
10–19 ® 60 percent of you hunting and fishing as the third-favorite
100+ 10% have had some college hobby. Watching sports came in fourth, music
20–99
11% 1–9 ® 13 percent earned and theater placed fifth and woodworking
15%
62%
an AA degree came in sixth, indicating there are some sofa
® 15 percent a BA spuds, culture vultures and closet carpenters
degree. in our ranks. The eternally frustrating game
As noted earlier, of golf notched in at seven, followed by clas-
8 percent of contrac- sic/antique cars, playing sports, cooking and
tors had an engineer- wine, and last, a group listed auto racing as
ing degree, a figure their favorite pastime. A diverse and interest-
that doubled since ing bunch, indeed.
T
H E S E D A Y S , contractors are tors were more apt than small ones to work will be a huge part of the industry’s future,
involved in more types of projects, in multiple categories. In fact, 84 percent contractors know power distribution and
especially with the growth of high- of very large firms worked in eight or more lighting, which we subdivided into controls,
tech and security and life/safety systems. categories, compared with 40 percent of fixtures, ballasts and lamps, is today’s bread
Our survey listed 17 project types and asked small contractors. In all, more than 90 per- and butter. These five “traditional” categories
contractors which they performed in 2003 cent of the firms surveyed worked in four or top their lists, and are performed by between
(See Figure 6). On average, 50 percent of more of the categories. 81 and 90 percent of firms surveyed while
1–9
10–19
20–99
100+
alternative-energy projects such as fuel cells all categories. Few expect a decrease in large firms predicted growth in fuel cells and
at 3 percent and wind generation at 4 per- any category. 17 percent predicted an increase in wind gen-
cent barely registered. We also discovered, If a contractor doesn’t work in a cer- eration projects compared with all other firms.
regardless of company size, just about every- tain category, we found they’re unlikely to Overall, alternative-energy projects, including
one worked in the four lighting categories. express an opinion about a future there. So solar at 10 percent, wireless networks (11 per-
Rounding out the Top 10: we focused first on firms participating in a cent), home automation/theater/security and
® datacomm systems at 62 percent given area, then looked at those who hadn’t energy management (both at 9 percent) were
® backup power at 61 percent done that same type of work in 2003. anticipated to be high-growth areas for firms yet
® fire/life safety systems at 46 percent Among those who worked in a particular to tap into those sectors.
® CCTV or access/motion security systems category, large and very large firms usually
at 38 percent predict increases in all categories, except On the leading edge
® energy management/power quality at 34 ballast and lamps, where we find no dif- We also compiled a list of seven “leading-
percent. ferences by company size, and home auto- edge” projects ranging from configuring a
mation/theater/security, where small firms CISCO router (7 percent of firms) to com-
Future work expect greater future volume compared to munications/data systems moves, adds and
We also wanted to know what type of work mid-size, large and very large firms. changes at 34 percent, a type of work done
contractors expect to do, and which cat- On average, small firms that don’t work frequently by contractors of all sizes; however,
egories they think will change in volume in backup power, datacomm and fiber optics these percentages are even higher for large
over the next few years, regardless of pick those as growth areas more frequently and very large firms. Overall, 51 percent said
what they do now. In general, contractors compared to all others firms not working in their firm performed this kind of work in 2003
expect to increase or stay the same across these areas. In contrast, 16 percent of very compared to 37 percent two years ago.
FIGURE 5. Volume will increase among those working and not already working in category
Power (60-HZ)
Lighting Controls
Lighting Fixtures
Ballasts
Lamps
■ Currently working in category
Backup Power
■ Currently not working in category
Energy Management/Power Quality
Biometrics (CII)
Fire/Life Safety Systems (CII)
Security Systems (CCTV/Access/Motion) (CII)
Home Automation/Security/Theaters (Res)
Communications/Data Systems
Fiber Optics (Datacomm and Lighting)
Wireless Networks
Fuel Cells
Solar/Photovoltaics
Wind Generation
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Regardless of whether their firm per- in these areas, 3 percent of very large firms do what they do well, have a good business
formed this type of leading-edge work in predicted a rise in low-voltage systems-inte- reputation and a streamlined operation
2003, respondents were asked to predict grator work, and 10 percent predicted a rise that keeps the contracts coming, and see
their future volume in each area over the in datacomm work for a CLEC. no need to expand their business into more
next few years. Almost all expect to “stay The “whys” for all of these predictions arcane or risky projects.
the same,” few predict a decrease, and are hard to discern, but surely, some con- That’s not to say fruitful opportunities don’t
firms not working in a given area usually tractors for any number of reasons—security exist for the more adventurous contractor or
didn’t guess about a future there. However, in what’s known, how local markets shape one whose market is rife with low-voltage or
we discovered mid-size and large firms are up, etc.—stick with their bread and butter alternative-energy work. As our survey shows,
most likely to predict increases in all cat- and probably will say the same when we those jobs and the number of contractors
egories. For those not yet performing work conduct our next survey. We’re sure they performing them may rise in the future.
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
■ Total ■ 1–9 employees ▲ 10–19 employees ★ 20–99 employees ● 100+ employees
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
WHERE YOU DO for small firms, while the percentages for video will make a strong comeback and
YOUR WORK
■ MA Degree + ■ BA Degree ■ AAnew
Degree ■ Attended
construction College
rises ■ Apprentice,
as firms grow largerTrade,renovation
Vocational will
■ HSbeGrad ■ Attended
the wave of the future.
O
U R C O N T R A C T O R S report (See Figure 7). In what could be seen a When baby boomers latch on to their
they get 41 percent of revenue disturbing trend, the portion of new con- parents’ inheritance—a sum estimated
from new construction, 31 percent struction has dipped 9 percent from our in the low trillions—some experts think a
from modernization/retrofit and 28 percent 2000 survey when we proclaimed it “was a good chunk of that will be spent on real
from maintenance/service/repair. However, good year to be an electrical contractor.” estate, especially if empty nesters leave the
maintenance is a high-revenue generator It’s still good. Many think voice/data/ suburbs for the cities to take advantage of
50%
40%
30%
20%
10%
0%
Total 1–9 employees 10–19 employees 20–99 employees 100+ employees
■ New construction ■ Modernization/retrofit ■ Maintenance/Service/Repair
their culture, nightlife and restaurants. If at 71 percent and mid-size firms at 62 HOW YOU DO YOUR
this prognostication proves true, renovation percent (See Figure 8). WORK
C
work should turn up aplenty. O N T R A C T O R S S AY 46 per-
In general, our 2004 survey showed: Residential vs. commercial cent of their revenue comes from
® regardless of company size, electri- Across the total sample, contractors get 34 design/build, which allows con-
cal/power distribution is by far the largest percent of their work from single-family resi- tractors total or near-total control of their
revenue source, accounting for an average dential, 8 percent from residential multifam- job. It’s particularly important to small
of 69 percent of sales ily, and 52 percent for business from com- firms, which claim it makes up 53 per-
® total building automation registered at 11 mercial, industrial, institutional and public cent of their work. (Mid-size, large and very
percent and accounts for more revenue of places (CII). Airports, highways, power lines large firms all claim it’s 35 percent.) We
mid-size firms than firms of any other size and other “nonbuilding” projects account for designated three more categories related to
® communications/data systems (low volt- a mere 4 percent of the business. engineering and design:
age) at 10 percent, is less important to The biggest difference in work performed ® work in which the contractor made sub-
small firms comes when comparing company size. Small stantive changes to specs and drawings
® similarly, security and life safety work, only firms report 46 percent of their work comes ® work in which slight changes were
6 percent of total sales, grows in importance from single-family residential, while very made
as the company size grows; it accounts for 4 large firms say it’s a miniscule 5 percent of ® work in which someone else’s specs and
percent of small-firm revenue and 9 percent their business. CII projects, however, account drawings were followed.
of very large-firm sales for 79 percent of the work for very large firms Contractors said they made substantive
® sound and video accounts for 4 percent and 41 percent for small firms. Very large changes in 13 percent of their jobs, and
of revenue on average with no significant firms also do four times as much “nonbuild- also made slight changes in 13 percent of
difference by company size. ing” work as small firms. No big shock here. their work, but in a hefty 28 percent of their
But there are no huge gaps anywhere; Big firms take on big nonbuilding projects work, they followed specs and drawings to
the biggest difference is only 9 percent in and residential construction has always been the letter.
power distribution sales, with small firms a mainstay of small firms. An even closer look shows small firms
40%
30%
20%
10%
0%
Total 1–9 employees 10–19 employees 20–99 employees 100+ employees
■ Design/build ■ Made substantive changes ■ Made slight changes ■ Followed other’s specs and drawings
use design/build on 53 percent of their proj- percent for very large firms. they used computers for four or more tasks
ects; couple that percentage with the small It’s no revelation that distributors get the hints at the opposite, that they are involved
firms’ propensity to do single-family resi- lion’s share—74 percent—of the market, in many different sectors.
dential (remember, it took up 46 percent of with warehouse home centers lagging far As noted earlier, Internet access/e-mail
their work) and it’s a good guess deign/build behind at 14 percent. As companies get is used almost universally—in fact, all large
is being used in a lot of home construction. bigger, home centers play a smaller role: and very large firms say they use it. Also:
Small firms say they followed specifications very large firms buy only 5 percent of their ® 97 percent of large and very large com-
faithfully only 23 percent of the time, a supplies from that source. panies use computerized accounting
percentage that’s at least 12 percent lower Almost all contractors surveyed buy from ® a whopping 94 percent of very large
than that of the bigger firms. multiple sources, the number of which firms use computers for estimating and
Also, mid-size, large and very large firms climbs with firm size. For example, 11 job-cost analysis
score much higher percentages than small percent of small firms and 32 percent of ® and 88 percent say they run AutoCAD.
firms when asked if they followed specs and very large firms buy from all four sources; This part of the survey yields some puzzling
drawings faithfully. Another “why?” An edu- however, a majority of small firms—54 per- and interesting data. There are some unex-
cated guess is that public-sector projects, cent—say they buy from just two sources, pected results in computer-program use that
normally off-limits to design-build, are done perhaps because larger companies are both on the surface don’t seem to be cost-effective
less often by small firms. located in more places and involved in more for small firms. For example, 34 percent of
different types of work. Online purchasing small firms—that’s just one to nine employ-
How contractors purchase is still a small factor—just 6 percent of ees, remember—say they have computerized
Respondents were given four specifications all firms buy over the Internet—but very equipment and tool inventory, and 9 percent
options for installation and asked how their large firms do 9 percent of their purchasing say they use computers for fleet management.
company had to fulfill obligations on the online. Now that could be something as simple as a
job. We found: customized Excel spreadsheet or it could be
® a single brand is specified 21 percent Computer use specialized software. In any case, contractors
of the time Computer use is no longer the way it will be have put their computers to good use.
® multiple brands are used at 28 percent done; it’s the way it is done. Forty percent of This data is probably skewed toward nor-
® “or equal to” products can be used at a large and 74 percent of very large firms use mal office use of computers, but PDAs and
37 percent rate computers in eight ways or more compared laptops have been common tools in the field
® performance-specified brands are to 15 percent of small firms and 10 percent for some time. Reported use for field laptops
required 15 percent of the time. of mid-size firms. This pattern—more use is 42 percent and 33 percent for PDAs, and
Note that a single-brand specification is by small than mid-size—suggests a concen- we found 23 percent of firms order material
a requirement for small firms 25 percent tration of small firms that specialize and with handheld devices. In the future, large
of the time, a rate that falls incrementally need the tools to compete in selected areas. and very large firms expect increased com-
as companies get larger, dropping to 13 The fact that almost all very large firms said puter use from these already high levels.
W
to charity.
HAT LIES AHEAD? It’s a pretty good in average contractor age, and we’re sure
bet—in fact, bet the house—com- you’ll seize greater control in procurement The margin of error on the total sample of
865 respondents is +/- 2.8 percent at the 90
puter use, especially with sophisti- and adapt to a possible retrofit/renovation
percent level of confidence.
cated construction software, will grow. The upswing. All of these somewhat cloudy issues
rumored death of VDV—to borrow from Mark may have a bright, shiny copper lining. We Tables and figures contained in this article
come from the data generated by this
Twain—has been greatly exaggerated. As we say 2004—and beyond—will be very good
year’s Electrical Contractor Survey, which
said, look for more contractors to integrate years to be an electrical contractor. EC was conducted by New York, N.Y-based
low-voltage with traditional power and light- Renaissance Research & Consulting Inc.
ing. And we think three key areas will affect FULMER, a Baltimore, Md.-based an independent marketing research firm
contractors in years to come: contractor age, freelance writer, can be reached at that specializes in construction. They can be
procurement control and a possible decline johnsfulmer@netzero.net. reached at smetzger@renaiss.com.
in managing, validating and ® Owner may experience from the manufacturer to roles have become more
optimizing equipment speci- project delays or additional the job site where it’s stored flexible in the past decade,
fied in the design; general cost from material delays or until it is installed; in SCPM, leading some general contrac-
contractors lack the electrical material handling; electrical distributors and specialty tors to believe they should
knowledge to pass on impor- contractors know importance contractors schedule mate- make all purchasing decisions.
tant new product information of fast job-site delivery and rial flow to the job site. It is But this same flexibility can
® Distributors provide a available inventory delivered as needed and can allow you to take the reins
valuable role for manufactur- ® GCPM assumes general be packaged according to the of a project, especially if the
ers; with no distributor, man- contractors can bypass dis- area where it will be installed traditional general contractor
ufacturers need to increase tributors and contractors and We feel you should be the key has become nothing more
customer sales and support buy manufacturer-direct; but specifier for electrical products than a dealmaker who puts
roles thus adding cost; dis- many manufacturers require and supplies. You know what projects together on paper. This
tributors offer services that all customers to go through works best in a given applica- flexibility also relates to the
can dramatically reduce the distribution, thus limiting tion, and you have developed ascendancy of design-build
specialty contractor’s labor product selection relationships with distributors where, from the very beginning,
cost that ultimately work to the you work with a team to map
® General contractors order out design and procurement.
material and have it shipped owner’s advantage. Job-site
30 CONSTRUCTION MONTHLY l new york 2007 new york 2007 l CONSTRUCTION MONTHLY 31
55,56,57.qxp 12/16/05 6:27 PM Page 55
& TRENDS
MARKETS
MARKET FOCUS BY JOHN FULMER
ard. As Mike Lancaster, sales develop- older, less expensive but less efficient centers” that aim for a smaller footprint
w w w . t e d m a g . c o m ■ J A N U A R Y 2 0 0 6 ■ T H E E L E C T R I C A L D I S T R I B U T O R 55
55,56,57.qxp 12/15/05 4:48 PM Page 56
& TRENDS
MARKETS
Continued from page 55
U.S. retail construction put in place
and a cozy, village-square approach, ac-
cording to the McGraw-Hill Construction
$76.7
Outlook 2005. 80
$72.9
$70.4
McGraw-Hill said retail turned the
$67.8
$67.9
$66.6
corner in 2003, with a 10% increase in
70
$63.2
$63.1
construction, followed by a 4% increase
$62.1
$58.9
in 2004. In 2005, the figure dropped to
$56.5
1%, but that still means 297 million
60
square feet of new retail space was
added. The report ties retail to new home
starts, which McGraw-Hill expects to 50
drop 5%, and projects new retail con-
struction to also fall 5%, but that still
translates into an additional 283 million 40
square feet.
Reed Construction Data backs up
those growth figures and projected that 30
$70.4 billion would be spent on retail
construction put in place in 2005. Reed
expects put-in-place growth to continue 20
in 2006 with $72.9 billion spent and in
2007 with $76.7 billion spent. Spending in
10
this sector had been growing steadily
until the post-9/11 downturn, when it
slumped to $63.2 billion in 2002 and 0
$62.1 billion in 2003, after hitting $67.9
99
00
01
02
03
20 4
20 *
20 *
*
97
98
05
06
07
0
19
20
20
20
20
20
billion in 2001. In 2004, retail construction
19
19
56 T H E E L E C T R I C A L D I S T R I B U T O R ■ J A N U A R Y 2 0 0 6 ■ w w w . t e d m a g . c o m
55,56,57.qxp 12/14/05 4:18 PM Page 57
& TRENDS
MARKETS
able, who can lay out lighting in any en- ratios, a measurement of lamp efficiency in ratings while still delivering great LPW
vironment. He can produce a CAD-type terms of brightness. Comparing an incan- figures. The flexibility of fluorescents—and
drawing, if the customer wants that,” descent’s LPW with a fluorescent’s is like HIDs—will become increasingly important
Jones said. “It shows the electrician ex- comparing gas mileage between an as jurisdictions become more stringent
actly where to hang the fixtures and Escalade and a Prius. Fluorescents, how- with their energy codes. ■ ■ ■
specifies the fixture to be used and the ever, have had a reputation for greenish,
lamp and ballast combinations to achieve sickly looking light, though recent techno- Fulmer is a principal of Colston & Fulmer
the greatest energy efficiency and logical advances are changing that Editing Services in Joppa, Md. Reach him
highest-quality color rendition.” perception. Fluorescents can now hit 90 at 443-270-8190 or johnsfulmer@com
CRI or better and develop good Kelvin cast.net.
The efficient products
According to Don Gaither, manager of re-
tail sales for Technical Consumer Prod-
ucts (TCP), “Incandescent sales were flat
in 2004, for the first time in many years.
Typically, incandescent growth was be-
tween 2% to 3% per year.”
Gaither believes this is further proof
that retailers are demanding energy-
efficient products, such as dimmable
compact fluorescents. There are battle
lines in the quest for energy efficiency,
with fluorescents and high-intensity dis-
w w w . t e d m a g . c o m ■ J A N U A R Y 2 0 0 6 ■ T H E E L E C T R I C A L D I S T R I B U T O R 57
NEWS FROM THE POWER AND INTEGRATED BUILDING SYSTEMS INDUSTRY
ISTOCK
anthrax, bubonic plague and tation Safety Administration, said
other deadly biological agents. major U.S. cities lag far behind in
Moderator Henry Nocella, a pri- overt,” Blanck said. “Even a nuke is con- the kind of CCTV surveillance that
vate consultant and former security chief tained. Bioweapons can’t be contained.” helped piece together the case against the
for Bestfoods, said the United States needs suicide bombers in the London Under-
to pay more attention to the motivations of Protecting corporations ground bombings in July 2005.
extremists. Anthrax mailings in recent history caused Comoderator Robin McFee, a toxi-
“We’ve been at war for 25 years,” No- post office shutdowns that cost millions cologist and president of Emergistics US
cella said, after outlining a litany of attacks and lasted months. Steve Lund’s job is to Inc., a Texas-based consulting company,
attributed to Al-Qaeda and other groups. prevent that kind of situation at Intel Corp., reiterated Blanck’s message that Ameri-
He characterized these groups as driven where he is director of security. cans are too blasé about bioterror. She
by cultural and political insults, the deep “One of the biggest things we look at is said that hospitals, labs and other facili-
impact of which Americans fail to compre- the operational impact of business continu- ties often store deadly material without
hend. Members of these groups, he said, ity,” Lund said. “If you can imagine a man- thought of security.
nurse this hurt and pass down the need for ufacturing facility taken out of commission, “If you have nasty stuff in your facility,
vengeance from generation to generation. it makes a big impact downstream. The don’t assume other people don’t want it,”
They are highly educated and motivated by idea is to keep the business going.” The McFee said. Like Blanck, she is worried
religious fervor that, again, most Americans Santa Clara, Calif.-based computer chip about Russia’s unaccounted for store of
can’t fathom. They will be patient in extract- maker has a global presence, and Lund smallpox, anthrax, plague and other lethal
ing revenge but also itching to use nuclear said Intel’s corporate philosophy empha- agents. Americans, she said, think they are
and biological weapons against us. sized cooperation and coordination with lo- safe from these now-unfamiliar killers but
“If we want to meet this threat, we cal law enforcement at all of their facilities. that is another foolish assumption. EC
need to wake up,” Nocella said. “The Intel security, he said, has set up levels of —John Fulmer
American public is absolutely, positively
asleep at the switch.” Grocery Chain Tackles Energy Costs
Keynote speaker Ronald Blanck, former
Army Surgeon General and president of Uni- LOCAL GROCERY STORES IN IDAHO aren’t waiting for government regulations to enforce
versity of North Texas Health Science Cen- energy conservation—they are implementing new policies on their own.
ter, said we still don’t have “an overarching Albertsons Inc., the second largest grocery store chain in the nation, has imple-
national strategy to deal with this” terror- mented an “aggressive energy management program” in its 2,500 stores.
ist threat. “Bioweapons” scare him more, Due to rising energy costs, the company is trying to reduce the amount of elec-
however, because contagious diseases such tricity by 20 million kilowatt-hours a month. The company has added skylights,
as smallpox can spread long after a terrorist energy-efficient lighting systems and motion-sensor lighting into its stores.
introduces the agent into a population. Albertsons is also upgrading existing stores with more efficient refrigeration
“Every other weapon you know about, it’s systems and motion sensors in offices and restrooms. EC