Anda di halaman 1dari 32

����
������ ��

WRITING EDITING DESIGN

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

2004 Profile of the Electrical Contractor page 15


On Green “Enriching the Human Experience”




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

LEED feature page 25


Construction Expo The News & Advance, Lynchburg, Virginia
Newspaper copy editor from January 2000 to August 2001. Edited copy and designed pages with Quark and Photoshop.
Construction Financing page 26
BUILDERnews The Sun Herald, Biloxi, Mississippi
Entertainment coordinator for daily newspaper from December 1997 to May 1999. General assignment reporter from March
Trade show preview page 28 1988 to July 1989. Freelance writer from 1995 to 1997.
RSI (Roofing, Siding & Insulation)
University of Southern Mississippi, Hattiesburg, Mississippi
Energy-efficient lighting page 29 Graduate assistant and adjunct faculty member. Taught composition, technical writing, creative writing and literature. January
TED (The Electrical Distributor)
1994 to October 1998.
ASIS security conference page 30
Security + Life Safety Systems Georgetown Review
Editor of nationally distributed literary magazine. Coordinated promotions, subscriptions and business operations, and did
layout with PageMaker. August 1996 to December 1997.

The Mississippi Press, Pascagoula, Mississippi


#Z+PIO'VMNFS

"MM-BOFT$MFBS
"MM-BOFT$MFBS General assignment reporter for daily newspaper. May 1987 to March 1988.
130'*-&

EDUCATION
ª+04&1)30.&0

University of Southern Mississippi, Hattiesburg, Mississippi


Master’s degree in English. Creative writing emphasis. Transatlantic Prize winner for fiction.
8PPESPX8JMTPO#SJEHF1SPKFDU

Loyola University, New Orleans, Louisiana


Bachelor of Arts degree in Communications. English minor.
8FMMJOHUPO1PXFSXPSLTUPBMMFWJBUF8BTIJOHUPOTUPVHIUSBGGJDXJUICSJEHFQSPKFDU
8FMMJOHUPO1PXFSXPSLTUPBMMFWJBUF8BTIJOHUPOTUPVHIUSBGGJDXJUICSJEHFQSPKFDU

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

#FMUXBZOBSSPXTBUPOFTQPUBUUIFFYJTUJOHESBXCSJEHFBOEBQ OBWJHBUJPODIBOOFM5IFDBCMFSFFMTXFJHIUPOTBOEUSBOT UIJTCSJEHFUPPQFOVQ5IFOZPVIBWFUIFQFPQMFXIPMJWFSJHIU UIFNJMMJPO.BSZMBOECSJEHFBQQSPBDIFT1SFTJEFOUBOE$&0

Belcamp, Md. 21017


QSPBDIFT XIJDIDSJNQUSBGGJDJOUPTJY4JODFUIF#FMUXBZDBSSJFT QPSUJOHUIFN‰PSBOZNBUFSJBM‰UPUIFQSPKFDUTJUFXBTEJGGJDVMU UIFSF‰BOE*DBOVOEFSTUBOEUIFJSGFFMJOHT‰UIFZIBWFBMMUIJT 1BVM-PGUVTTBJE8FMMJOHUPOSFDFJWFENJMMJPOJODPOUSBDUTGPS
VQUP WFIJDMFTBEBZBOEUIFZFBSPMECSJEHFXBT TJODFUSVDLTIBEUPSVNCMFUISPVHI"MFYBOESJBT0ME5PXO UIF DPOTUSVDUJPOUIBUTCFFOHPJOHPOGPSUXPZFBST BOEJUTHPJOHUP CPUIUIFCBTDVMFBOE.BSZMBOEBQQSPBDIFT-PGUVTTBJE8FMMJOH
CVJMUUPIBOEMF  UIJTTRVFF[FQMBZDBOCFDPNFBESJWFST LJOEPGOFJHICPSIPPESJGFXJUIDPNNFSDJBMSFTUSJDUJPOT BTMJDF CFBGJWFZFBSQFSJPECFGPSFJUTEPOF5IFZIBWFUPMJTUFOUPUIF UPOIBTDIBOHFEESBNBUJDBMMZPWFSUIFZFBSTUISPVHICPUIJOUFSOBM
OJHIUNBSF SPVUJOFMZSFTVMUJOHJOCBDLVQTUIBUBSFNJMFTMPOH PGSFBMFTUBUFGVMMPGNJMMJPOQMVTUPXOIPNFTBOEOBSSPX FRVJQNFOU USVDLTSPMMJOHEPXOQBTUUIFJSCFBVUJGVMIPNFT JOB HSPXUIBOEBDRVJTJUJPOT TPNFUIFZIBWFSFUBJOFEBOETPNFUIFZ
5IF#FMUXBZ QBSUPG*OUFSTUBUF UIF&BTU$PBTUTIFBWJMZ
USBWFMFENBJODPSSJEPS IBTVOEFSHPOFTFWFSBMXJEFOJOHQSPKFDUT 
CVUOPUIJOHUPVDIFTUIJTFGGPSU8IFODPNQMFUFE UIFOFXESBX
TUSFFUTPODFTUSPMMFEBMPOHCZ8BTIJOHUPO +FGGFSTPO .POSPF
BOE.BEJTPO
4DPUU8JOUFST 8FMMJOHUPOQSPKFDUEJSFDUPS TBJEDPNNVOJUZ
WFSZRVJFU MPWFMZOFJHICPSIPPEw

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 MBOFCBTDVMF5IFFJHIUCBTDVMFTFDUJPOT‰UIFTUFFM )JTDPOTUSVDUJPOUSBJMFSDPNQMFYJTUVDLFEVOEFSUIFPMECSJEHF  GVMMTFSWJDFDPOUSBDUPSTGJOBODJBMTUSFOHUIBOEFYQFSJFODFXJUI BMMPVSCVTJOFTTEFWFMPQNFOUNBUFSJBMT*UIJOLPGNBSLFUJOHBTB
MFBWFTUIBUPQFOGPSCPBUUSBGGJD‰BSFMJGUFECZIVHFTFNJDJSDVMBS BMPOHXJUIPUIFSKPCTJUFUSBJMFSTBOETUBHJOHBSFBT BMMIFNNFEJO NBSJOF CSJEHFBOEUSBGGJDNBOBHFNFOUQSPKFDUT#FTJEFTUIF QSFTFOUBUJPOPGXIBUXFEPBOETJODFXFEPNBOZTQFDJBMUZQSPKFDUT 

johnsfulmer@hotmail.com
HFBST0OFPG8FMMJOHUPOTKPCTJTUPQSPWJEFUXPLJMPWPMU L7
 CZ+POFT1PJOU1BSLBMPOHUIF1PUPNBD5IFSFJTWFSZMJUUMFSPPN TVCNFSTJCMFCSJEHFDPOUSPMDBCMF TFDPOEBSZQPXFS MJHIUJOH  BMPUPGQFPQMFBSFOUBXBSFUIBUXFSFNPSFCSPBECBTFEUIBOUIF
QSJNBSZDJSDVJUTUIBUBSFUFSNJOBUFEBUTVCTUBUJPOTJOFMFDUSJDBM UPNPWF QBSLXPSLUSVDLTPSTUPSFNBUFSJBMT QFEFTUSJBOXBSOJOHBOEHBUFTZTUFNT 8FMMJOHUPOXJMMJOTUBMM DPOWFOUJPOBMFMFDUSJDBMDPOUSBDUJOHGJSNw

 &-&$53*$"-$0/53"$503   ."3 XXXFDNBHDPN XXXFDNBHDPN ."3   &-&$53*$"-$0/53"$503  


UPFRONT
BY JOHN FULMER

Building a better future


Sustainable building is changing the future of business.

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
���������������

�������

�����������������
�����������������

�������������
�����������������������������

����������������������������������������������������������������������������������������
����������������������������������������������������������������������������������������


������������������������������������������ ������������������������������������������������������������� �������������������������������
���������������������������������������������������� ������������������������������������������������������������� �����������������������������������
���������������������������������������������� ����������������������������������������������� �������������������������������������
��������������������������������������������� ��������������������������������������������������������� ��������������������������������������������������������������������� �������������������������������������������������������������
�������������������������������������������������������� �������������������������������������������������������������� ������������������������������������������������������������������� ����������������������������������������������������������������
����������������������������������������������������������� ���������������������������������������������������������������� ��������������������� �����������������������������������������������������������������
���������������������������������������������������������������� �������������������������������������������������������������� ���������������������������������������������������������� ��������������������������������������������������
������������������������������������������������������������� ����������������������������������������������������������� ������������������������������������������������������������������ ����������������������������������������������������������������
����������������������������������������������
��������������������������������������������������������������� ����������������������������������������������������������� ���������������������������������������������������������������� ���������������������������������������������������������������
������������������������������������������������������������������ ��������������������������������������������������������������� ������������������������������������������������������������� ������������������������������������������������������������������
������������������������������������������������������������ �������������������������������������������������������������� ������������������������������������������������������������������� ��������������������������������������������������������������
���������������������������������������������������������������� ���������������������������������������������������������������� ������������������������������������������������������������������� ������������������������������������������������������������������
�������������������������������������������������������������� ������������������������������������������������������������� ���������������������������������������������������������������� ���������������������������������������������������������������
������������������������������������������������������������� ������������������������������������������������������������� ��������������������������������� ���������������������������������������������������������
����������������������������������������������������������������� ������������� ����������������������������������������������������������������
�������������������������������������������������������������� ����������������������������������������������������������� ������������������������ ����������������������������������������������������������������
������������������������������������������������������������������� ������������������������������������������������������������������� ������������������������������������������������������������� ���������������������������������������������������������������
������������������������������������������������������������ ����������������������������������������������������������������� ����������������������������������������������������������������� ������������������������������������������������������������������
������������������������������������������������������������������ �������������������������������������������������������������������� ������������������������������������������������������������ ��������������������������������������������������������������������
������������������������������������������������������������������� ����������������������������������������������������������������� ������������������������������������������������������������� ������������������������������������������������������������������
������������������������������������������������������������������ ��������������������������������������������� ������������������������������������������������������������� �������������������������������������������

��� ��������������������� � � ������� ������������� �������������� ������ � � ��������������������� � ��� �


�������� �� ����������������

����������������������������������������������
���������
���������������������������������������������������������
�������������������������������������������������������
������������������������������������������������������
������������������������������������������������
���������������������������������������������������
�������������������������������������������������
��������������������������������������������������������
��������������������������������������������������������
������������������������������������������������������
�����������������������
��������������������������������������������������
���������������������������������������������������������
������������������������������������������������������������������� �����������������������������������������������������������������
������������������������������������������������������������������� �����������������������������������������������������������
������������������������������������������������������������������� ���������������������������������������������������������������
�������������������������������������������������������������� ��������������������������������������������������������������������
��������������������������������������������������������������������� ���������������������������������������������������������������
���������������������������������������������������������������������� �������������������������������������������������������������
���������������������������������������������������������� ��������������������������������
���������������������������������������������������������������
������������������������������������������������������������������ �����������������
����������������������������������������������������������������� �������������������������������������������������������������
���������������������������������������������������������������� �������������������������������������������������������������
���������������������������������������������������������������� �����������������������������������������������������������������
������������������������������������������������������������������� �����������������������������������������������������������
������������������������������� ��������������������������������������������������������������
��������������������������������������������������������������
���������������� ������������������������������������������������������������������
����������������������������������������������������������� �����������������������������������������������������������������
������������������������������������������������������������� ������������������������������������������������������������
������������������������������������������������������������������� ��������������������������������������������
����������������������������������������������������������������� �����������������������������������������������������������
���������������������������������������������������������������� ��������������������������������������������������������������
������������������������������������������������������������������ �������������������
��������������������������������������������������������������� �������������������������������������������������������������
����������������������������������������� ������������������������������������������������������������������
���������������������������������������������������������� �������������������������������������������������������������
����������������������������������������������������������������� ����������������������������������������������������������������
������������������������������������������� �����������������������������������������������������������������
�������������������������������������������������������������� ���������������������
�������������������������������������������������������������� �������������������������������������������������������
������������������������������������������������������������������ ������������������������������������������������������������������
����������������������������������������������������������������� ������������������������������
�������������������������������������������������������������� ������������������������������������������������������������
������������������������������������������������������ ������������������������������������������������������������������������
������������������������������������������������������������ ����������������������������������������������������������������
������������������������������������������������������������� ���������������������������������������������������������
���������������������������������������������������������������� ��������������������������������������������������������������
��������������������������������������������������������������������� ��������������������������� ��
�����������������������������������������������������������������
���������������������������������������������������������������� ����������������������������������������������������
�������������������������������������������������������������������� �������������������������������������������������������������
����������������������������������������������������������������� ������������������������

��� ��������������������� � � ������� �������������


CONTACT US:
814.512.1482/814.975.1144 fax
johnsfulmer@hotmail.com
By John Fulmer

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

40 ELECTRICAL CONTRACTOR JAN.05 www.ecmag.com


2005
Forecast
will recede. Still, single-family starts will
remain positive—though unable to match
the phenomenal growth of the past two
U.S. Total Construction for 2001–2005
8.1 24.1
years—and multifamily will keep a steady 2001 186.9 103.1 90.8 83.6
pace. The national homeownership rate
5.4 12.0
will continue to grow—albeit more slowly

SOURCE: McGRAW-HILL CONSTRUCTION


2002 214.2 94.0 90.0 87.9
than in the recent past—and will hit a re-
markable 70 percent by the decade’s end, 6.5 8.9
Seiders said. 2003 242.3 99.5 89.9 82.8
New and existing home prices, accord- 7.0 6.0
ing McGraw-Hill’s Murray, should increase 2004 276.6 110.0 91.2 85.9
by 11 percent, and he envisions burgeoning 8.0 5.5
specialty markets for single-family housing, 2005 267.6 119.7 97.4 87.4
including home theater, Internet alcoves
0 50 100 150 200 250 300 350 400 450 500 550 600
and separate male/female offices. Reed
BILLIONS OF DOLLARS
forecasters expect mortgage rates to climb
<Single Family Housing <Income Properties <Institutional Bldgs. <Manufacturing Bldgs. <Public Works <Electric Utilities
a bit from a 5.94 percent annual average
in 2004 for 30-year fixed rates to 6.43 per-
cent in 2005. room rates had gone up and noted several
The commercial side
In raw numbers, 1,425,000 new single- large projects, including the $297 million
family starts are expected this year, accord- McGraw-Hill lumps stores, offices, lodging, Caesar’s Palace Hotel South Tower and the
ing to McGraw-Hill, down from 1,530,000 manufacturing, educational and healthcare $154 million South Coast Hotel/Casino in
in 2004, which translates into a 7 percent into nonresidential and sees $176.3 billion Las Vegas, are driving this sector.
loss. Multifamily will have 445,000 starts, spent in those areas, an 8 percent jump Jim Haughey, director for economics
a 2 percent gain from 2004’s estimate of from last year. All of these building sec- for Reed Business Research Group—writ-
435,000. The contract value of single- tors will have an increase, led by hotels ing about the 2004 spring growth spurt
family will drop to $267.6 billion, a 3 and motels at $6.9 billion (a 15 percent for nonresidential, a period in which
percent loss from 2004’s total of $276.6 gain), manufacturing at $8 billion (14 per- building projects “jumped at a 21 percent
billion, while the 2005 multifamily num- cent) and office buildings at $23 billion annualized pace” after three quarters of
ber is $48.8 billion, a 7 percent gain over (12 percent). decline—said 2004’s spring showing was
2004’s $45.4 billion figure. (See charts Nonbuilding or public works, will find a a harbinger of more good things to come.
page 42.) modest 1 percent uptick in 2005. Bridges Expect several years of double-digit growth,
McGraw-Hill expects the Midwest to be and highways ($43 billion) are the big Haughey wrote. With some caveats. Market
up 1 percent in single-family starts, the gainers with a 5 percent increase; however, activity declined slightly in the summer of
only region with an increase. The South At- electric utilities will total $5.5 billion, an 8 2004, and he expected little, if any, in-
lantic and West will be big losers at minus percent drop from last year. flation-adjusted growth in fourth-quarter
5 percent. The Northeast at minus 7 per- But why does nonresidential fare so well 2004. He blamed poor weather, concrete
cent is the only region facing a decline in and residential seem so ho-hum? Murray and steel shortages, work delays caused by
multifamily starts, while the Midwest and said the lodging sector, especially, is “get- material-pricing sticker shock, anxiety over
West should see double-digit expansion. In ting primed for expansion.” This could be a reports of economic weakness, and Fed ac-
fact, western states can expect a whopping direct result of the tourist industry shaking tions to raise credit costs. But he thinks
19 percent growth rate spurred by building off the slump after the Sept. 11 terrorist 2005 will show a rebound.
in cities such as Las Vegas. attacks, coupled with a quick end to hos- “Expect growth to resume in the fall
“The metro markets will be amazing,” tilities Iraq, a somewhat dubious explana- and extend through 2005 because most
said Murray. tion. McGraw-Hill found occupancy and of the key market drivers are improving,”

www.ecmag.com JAN.05 ELECTRICAL CONTRACTOR 41


FOCUS / CONSTRUCTION FORECAST 2005

struction Outlook,” shows this dramatic up-


Housing Starts Value of Housing Starts swing, with separate projections for spring
Millions of starts Billions of dollars and summer of 2003–2008. In an e-mail,
2.0 300 Sullivan explained: “I make three forecasts
1.8 per year. The spring forecast refers to my
1.6 250
projections made in the spring and the
1.4 200 summer [forecast], my forecasts made in
SOURCE: McGRAW-HILL CONSTRUCTION

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.

42 ELECTRICAL CONTRACTOR JAN.05 www.ecmag.com


FOCUS / CONSTRUCTION FORECAST 2005

“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.”

44 ELECTRICAL CONTRACTOR JAN.05 www.ecmag.com


percent to 38 million square feet in 2004, sissippi; the $600-million conversion of things look tight, except for the Transpor-
before dipping to 36 million in 2005. Other an Arizona Intel semiconductor plant; and tation Security Administration—homeland
points for these institutional areas: a $300-million expansion to a California security was exempt from the limit—which
® In 2002, religious building reached 52 biotech manufacturer. These projects, and received a 20 percent increase, including
million square feet, a high not seen since others like them, will help manufacturing $250 million slated for airport upgrades.
the early 1960s. It dropped to 43 million reach 80 million square feet in 2005, a 10 At the time of the report, 2005 levels were
in 2004 percent jump, according to McGraw-Hill. not set by Congress, but they look similar
® Amusement-related building—conven- except for a 13 percent EPA cut and a 7
tion centers, sports arenas, theaters—was Public works, electric utilities percent raise for the Corps.
at 94 million square feet during 1995–2000 Moribund government spending affected
but fell sharply in recent years, landing at this sector, too, as public works money be- Closing the books
65 million in 2003. It’s expected to make a gan drying up in 2003 after several years Sullivan, who delivered the U.S. construc-
minor comeback to 73 million square feet of growth. But in 2004, prompted by the tion overview at Reed, noted many signs
in 2005. need for water and sewer works, these proj- of a brighter economy. After a 2001–2003
ect types jumped 4 percent to reach $85.9 drought, investment spending has made a
Manufacturing billion. strong return and will no doubt help replen-
For several long years in the recent past, A 2004 bill by Congress set forth these ish funding for manufacturing construction
manufacturing was a wasteland, hitting the spending levels: and other sectors that have fallen on hard
skids at 67 million square feet in 2002. ® Highways up 4 percent (from 2003 lev- times. Job growth looks good. The fiscal cri-
There are reasons for the fall—a strong dol- els) to $33.6 billion sis in most states, he said, is fading. Still,
lar in the late 1990s that made U.S. exports ® Mass transit increased 1 percent to $7.3 the signs portend only a modest recovery in
more expensive and manufacturers who billion most sectors and slight declines in some
moved production overseas—but whatever ® Airport grants didn’t budge, remaining others. And oil prices are the most frighten-
the case, this depressing decline has been a at $3.4 billion ing bugbear, the biggest wild card for many
sore point for many electrical contractors. ® Army Corps of Engineers construction an economic pundit. Not a real boom year,
But remember the good old days? In funding cut 3 percent yet certainly not a bust. Just a time to be
1997, this sector was at 191 million square ® EPA water infrastructure grants raised cautiously optimistic. EC
feet. A small part of that was regained in 3 percent
2003 with a hike to 71 million square feet, ® The EPA Superfund account received an FULMER is editor of ELECTRICAL
and 2004 saw another small increase to 8 percent bump upward CONTRACTOR and SECURITY+LIFE SAFETY SYSTEMS.
73 million, spurred in part by auto plant But in 2005, President Bush set a 0.5 He can be reached at 301.215.4516
construction in Oklahoma, Texas and Mis- percent limit on discretionary funding and or jfulmer@necanet.org.

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

summer” Haughey added. livable communities


Building security
The “Green” Approach
Increased use of
The oil price spike, China’s grow- technology in design
ing needs and green building are Rehabilitation vs.
related. Limited supplies of fossil new construction
Integrated international
fuels and competition from nascent building code
economic giants such as China for Other
those supplies have forced U.S.
0% 10% 20% 30% 40%
builders into innovative design prac-

www.ecmag.com JAN.05 ELECTRICAL CONTRACTOR 45


CONTACT US:
814.512.1482/814.975.1144 fax
johnsfulmer@hotmail.com
The 2004 Profile of
In journalism,
it’s conventional
to tell readers the
who, what, where,
how and why of
a story, and that’s
what we’ve done
in interpreting the
survey results
from the 2004
PROFILE OF THE
ELECTRICAL
CONTRACTOR.
the ELECTRICAL

CONTRACTOR
By John Fulmer

ELECTRICAL CONTRACTOR has taken this mountain


of data and explained:

✱ WHO YOU ARE (size and revenue of company,


and its race and gender breakdown)

✱ WHAT YOU DO (project type)

✱ WHERE YOU DO IT (new construction, retrofit


or maintenance)

✱ HOW YOU DO YOUR WORK (working with specs,


material purchasing and computer use)

✱ WHY YOU CHOOSE THE WORK YOU DO

A COMPREHENSIVE ® Estimating-software use is up from 54 percent


PICTURE to 70 percent

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.

www.ecmag.com JUL.04 ELECTRICAL CONTRACTOR 23


2004 CONTRACTOR PROFILE

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.

FIGURE 2. Revenue Less than FIGURE 3. Racial Composition of Firms


$250k
$25 million+ 44% White or Hispanic Other—
4% $2.5 million $250k to caucasian 6% including Asian
to $10 million $1 million 87% 3%
9% Black or
27% African-American
$10 million $1 million
4%
to $25 million to $2.5 million
6% 10%

24 ELECTRICAL CONTRACTOR JUL.04 www.ecmag.com


firms worked in eight of the 17 categories The old standbys
WHAT DO YOU DO?
and very large, large and mid-size contrac- While emerging—and merging—technologies

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

Contractor age, employee diversity remain a problem


The average contractor age continues to be a cause for futurist with Social Technologies LLC and recent NECA convention
concern. For example, the 2004 survey shows: speaker, thinks “inclusion,” looking at everyone as a possible
® Most of you are middle-aged (48.6 years old on average) employee, is vital. Hispanic and Asian workers are quickly
becoming a large and influential part of the labor pool—old
® You have spent an average of 24.6 years in the industry,
news to folks in California and the Southwest, but something
most of your working life
novel in other parts of the country—and President Bush’s new
® Only 8 percent were 25 to 34 years old, almost exactly the immigration policies would allow 8 million undocumented
number (7 percent) of respondents 65 and older immigrants to obtain renewable, three-year visas.
® These figures hew closely to those of the 2002 report, which In an e-mail, Dighe wrote that young people today are the most
also noted that contractors under 35 were notably absent. ethnically diverse in our history and if “any industry wants to attract
An inclusive work force talent in the future, they will have to figure out how to make their
industry reflective of this more diverse population mix.”
Other factors may significantly affect the industry. The Aspen
Institute, as reported in The New York Times, says enormous “Today’s youth,” he wrote, “will seek employment situations that
demographic changes are afoot for the next two decades. have a diverse work force. Quite simply, today’s youth will seek
With declining birth rates, a leveling off of women entering the employment situations that have a diverse set of people in it.
work force and baby-boomer retirements at hand, the Institute “As your research indicates, many of the current contractors are
predicts: entering their 50s and 60s and, unlike in the past when the next
® The labor force may grow as little as 16 percent generation was ready to take the baton of ownership/leadership,
many contractors are finding that the next generation is not
® The percentage of native-born workers ages 25 to 54 won’t
interested,” Dighe added. “‘Inclusivity’ here could mean thinking
grow at all
about passing the business on to someone outside of the family.
® Workers with any college education might increase by only Contractors need to think carefully about identifying who’s next in
4 percent. the leadership pipeline and working with those people to develop
Contractors already know how difficult it is to find educated and their skills and abilities. Looking outside the family to longtime
qualified workers, and these projected changes could have a big associates, key supervisors, and even in the current labor pool may
impact on the available labor pool and productivity. Atul Dighe, a be a potential solution.”

FIGURE A. Respondent Age AGE


■ 18–24
50%
■ 25–34
45%
■ 35–44
40%
■ 45–54
35%
■ 55–64
30%
■ 65+
25%
20%
15%
10%
5%
0%
Total 1–9 10–19 20–99 100+
Company Size

www.ecmag.com JUL.04 ELECTRICAL CONTRACTOR 25


2004 CONTRACTOR PROFILE

FIGURE 4. Respondent Education


Total

1–9

10–19

20–99

100+

0% 5% 10% 15% 20% 25% 30% 35%


■ Attended HS ■ HS Grad ■ Apprentice, Trade, Vocational ■ Attended College ■ AA Degree ■ BA Degree ■ MA Degree +

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%

26 ELECTRICAL CONTRACTOR JUL.04 www.ecmag.com


2004 CONTRACTOR PROFILE

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.

A simple formula for success: E=PC2


As we said, 84 percent of very large firms worked in such as state-of-the-art home theater and sophisticated
eight or more categories compared with 40 percent of sound systems.
small contractors. In all, more than 90 percent of the firms Figure B shows 95 percent of our respondents did some type
surveyed worked in four or more of the categories. of traditional power or lighting project and 65 percent did
This points to an ever-developing “integration” trend, one a power-quality project, which includes backup power and
that’s seen strong growth for the last decade and has affected energy management. We also found some interesting figures
commercial/industrial/institutional projects and single-family on what we call “core integration projects”:
residential contractors alike. Dr. Tom Glavinich, a regular ® almost two-thirds of our contractors did some type of
contributor to ELECTRICAL CONTRACTOR, has devised the formula automation/control systems project for commercial/industrial/
E=PC2 to explain this simply. That translates into E for markets, institutional (CII) or residential markets
P for traditional power projects, and C stands for control and ® 55 percent of respondents did a CII automation/controls
communications work. The contractor that puts P and C together system project
will have plenty of Gs. And that stands for greenbacks. ® almost one-third did a residential automation/security/

The ability of a contractor to group traditional power theater project


® 66 percent did a communications low-voltage project
installations with various combinations of security, lighting
® and 10 percent of all contractors did a alternative
controls, fire alarm systems, automated building systems,
datacomm and even biometrics is a powerful sales tool, energy project with 20 percent of very large firms involved in
providing a one-stop shop where an owner can get 120V this sector.
power, Category 5 cabling, HVAC that’s computer-controlled Home-theater work is an especially lucrative niche market, and
for optimum efficiency, an energy-saving lighting system that many, if not most, new homes are being wired for more than
dims at peak sunlight and “spotlights” an after-hours intruder 120V power these days. Residential contractors who can’t do
with the help of the integrated security system, and amenities more complex wiring tasks could be left in the dust.

FIGURE B. Contractors work in many areas in addition to traditional power


Any Traditional Power/Lights

Any Power Quality

Any CII or Res Automation/Controls

Any CII Automation/Controls Systems

Residential: Home Automation/Security

Any Communication/Low Voltage

Any Alternative Energy

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
■ Total ■ 1–9 employees ▲ 10–19 employees ★ 20–99 employees ● 100+ employees

28 ELECTRICAL CONTRACTOR JUL.04 www.ecmag.com


2004 CONTRACTOR PROFILE

FIGURE 6. Currently Work in Category


Power (60-HZ)
Lighting Controls
Lighting Fixtures
Ballasts
Lamps
Backup Power
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%

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

FIGURE 7. Types of work by sector


60%

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

FIGURE 8. Types of electrical projects by firm size


80%
70%
60%
50%
40%
30%
20%
10%
0%
Total 1–9 employees 10–19 employees 20–99 employees 100+ employees
■ Electrical power/distribution ■ Communications/data systems ■ Security/Life Safety Systems ■ Total building automation ■ Sound and video

30 ELECTRICAL CONTRACTOR JUL.04 www.ecmag.com


2004 CONTRACTOR PROFILE

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

FIGURE 9. Building categories


90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Total 1–9 employees 10–19 employees 20–99 employees 100+ employees
■ Residential (single family) ■ Residential (multifamily) ■ Commercial/industrial/institutional ■ Non-building (e.g., airports/highways/power lines)

FIGURE 10. Extent of contractor’s changes to specs and drawings


60%
50%

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

32 ELECTRICAL CONTRACTOR JUL.04 www.ecmag.com


2004 CONTRACTOR PROFILE

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.

You as key specifier in supply procurement


Our 2004 survey found con- Guesswork aside, we think the Chain Management in the or subcontractor (and their
tractors choose the brand electric contractor’s capacity Construction Industry,” Perry markup), and allows procure-
72 percent of the time. Small to make product choices is Daneshgari, a consultant and ment earlier in the project, this
firms choose more often (74 terribly important—in terms contributor to this magazine, method may cause lost time
percent) than very large firms of costs savings and getting said general contractors con- later in the job due to lack of
at 65 percent. In the latter the job done on time with a tend it saves money, provides expertise. Daneshgari says the
case, we hypothesize the minimum of change orders. faster occupancy and wider specialty contractor procure-
projects may be far larger and When it comes to purchasing product selection when they ment method (SCPM) provides
more complex, and purchas- electrical material and sup- control procurement. Danesh- the owner value through service
ing may be controlled by the plies, they know what’s best. gari disagrees somewhat. and knowledge. These are some
general contractor—or that Unless there are overriding While his study admits the of his crucial points when it
small firms are involved more reasons, why should someone general contractor procurement comes to SCPM vs. GCPM:
in single-family residential else choose for them? method (GCPM) adds value ® A subcontractor’s product
design-build and have more In his report to the Electri’21 through bulk purchases and knowledge and installation
purchasing control. Council, “Procurement by cutting out the distributor skill is vital to most owners

34 ELECTRICAL CONTRACTOR JUL.04 www.ecmag.com


FIGURE 11. Specification options
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Total 1–9 employees 10–19 employees 20–99 employees 100+ employees
■ Single brand ■ Multiple brand ■ “Or equal to” ■ Performance specified

Tools and vehicle use hand tools at 89 percent, multimeters at 79


Of course, almost every one of you owns a percent of firms and mobile phones/two-way METHODOLOGY/ABOUT THE SURVEY
company vehicle and you’d much rather buy radios at 57 percent. Lifts and scaffolding The survey was conducted by postal mail
one than lease, though the latter option is (23 percent) and digging and boring equip- and via the Internet between April 8 and
more prevalent as firms grow in size. The ment (16 percent) were at the bottom. It’s May 10, 2004, among a random sample of
ELECTRICAL CONTRACTOR subscribers.
same goes for tools. You’d rather own than no shock that these two types of heavy,
During that period of time, a total of 865
lease. We asked about the tools purchased construction-site equipment were the most- usable surveys were completed, 505 via
most frequently in 2003 and found 90 per- leased tools in our survey, the only ones to the Internet and 360 via postal mail. There
cent of firms bought power tools followed by have a lease rate higher than 10 percent. were no follow-up mailings. An incentive
was offered for participation in the survey:
in new construction. An infusion of minorities For each completed survey, ELECTRICAL
CONCLUSION CONTRACTOR magazine would contribute $5
in the workplace could cure the stagnation

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

www.ecmag.com JUL.04 ELECTRICAL CONTRACTOR 35


why not LEED ?
By John Fulmer
implements recycled and regionally produced materials
and curses HVACR systems filled with refrigerants that cause

For a long time, most people believed “green” or sustainable building


was the province of granola-gobblers who built homes out of recycled
tires and equipped them with hideous-looking solar panels the size of
ozone depletion.

WHAT’S THE POINT?


garage doors. Perhaps they used hay bales for insulation. And they all What’s does it matter if you get a gold or silver star on your
lived in California. new building? Why go green at all? Well, how about tax
breaks? The New York State Green Building Tax Credit for
Then, environmentally conscious construction began to enter the (GBTC) provides $25 million in income-tax credits over nine
mainstream, and some early adopters in the commercial sector went years for several types of construction, including many
with the flow. The problem green-leaning contractors always had was commercial classifications, with a minimum building size
convincing owners that higher initial construction costs would pay of 20,000 square feet. GBTC criteria could even be consid-
off in the long run with a building’s reduced energy consumption. ered more stringent than the LEED system, but the two are
The “feel-good” factor, prodding owners to a loftier level of ecological very similar. In fact, the USGBC was among the parties that
GETTING BROWNIE POINTS
awareness, was an even harder sell, especially in a low-bid world. provided input on the New York requirements.
Each of these categories has a total number of available
points. For instance, it’s possible to score a high of
All that has changed in an incredibly short time. The U. S. Green Build- New York is one of dozens of U.S. cities that have LEED-
17 points in “Energy and atmosphere” and a low of 5 points
ing Council’s Leadership in Energy and Environmental Design (LEED) based building requirements or incentives, and most
in “Water efficiency.” There are subcategories that explain
designation, which got its start in the late 1990s, may be the biggest experts agree that green-building momentum is unstop-
how a builder/developer can amass points. Some criteria
single development in this arena. As little as two years ago, mentioning pable. In various jurisdictions, LEED offers other benefits
are required, such as a fundamental commissioning of the
LEED to contractors and vendors was often met by blank stares. Now such as grants, fast-track permitting and special loans. In
energy system. An advanced commissioning will award
LEED Professional Accreditation is seen as an important resume-builder some cases, building-permitting fees are slashed in half for
builders an extra point.
for architects and designers and many forward-thinking contracting LEED projects and zoning variances are allowed for higher
firms have accredited professionals (LEED AP) on staff, individuals density. Why? Because LEED seeks to improve interior
The new commercial rating system has a total of 69 points,
who have passed an exam in one of three areas: new construction, environments, and one of the intangible benefits that green
but a builder need not hit every target. The USGBC rates the
commercial interiors and existing construction. building proponents point to is that LEED-type buildings are
performance, tallies up the points and awards the certifica-
considered more healthy. This may, in turn, cause insurance
tion in four levels:
More important, every contractor should be aware of the LEED rating companies to drop mold-exclusion clauses and cut premi-
system. While the USGBC is a nonprofit, nongovernmental agency and • Platinum 52-69 points ums, another example of the type of “soft” benefits greenies
achieving LEED status—there are different levels and categories—is • Gold 39-51 points like to talk about.
strictly voluntary, many public-sector projects are beginning to require • Silver 33-38 points
LEED-based guidelines. • Certified 26-32 points You’ll have partners, among them the New York State
Energy Research and Development Authority. NYSERDA can
SCORING POINTS assist with computer modeling and charrette coordination,
Some of the ways points are awarded would seem obvious, help you gain LEED certification, and guide you on Execu-
such as energy-efficient lighting systems and building tive Order 111, Gov. Pataki’s 2001 directive to state agencies
LEED 101
envelopes with advanced insulation techniques. But LEED and authorities to become more aware of sustainable build-
So what exactly is LEED? The USGBC (www.usgbc.org) describes itself as a community of more than 7,500 organi-
is a comprehensive program that awards points in often ing principles. NYSERDA’s Web site highlights The Bank of
zations from every sector of the building industry united by a common purpose to transform the building market-
arcane and oblique ways. America Building under construction in midtown Manhat-
place to sustainability by rating construction practices. LEED divides construction into eight categories, such as
tan. The two million-square-foot office building is the first
residential, schools, and new commercial construction. If you wanted to try for LEED certification, first register
For instance, in a commercial project, LEED gives points high-rise to go for a LEED Platinum rating.
your project—there’s an online form on the Web site—and begin accumulating points in the six categories listed
for easy access to public transportation and installation
on the rating system documents, which are also available online.
of bike racks, with the idea that gasoline consumption is And a trend has emerged in which RFPs, owners and
The categories for new commercial building are: reduced. Builders would “lose” points if they had equipment projects all look for a firm with LEED APs. Yet this is a
• sustainable site and materials trucked in beyond a 500-mile radius because simplistic overview. LEED certifications and requirements
• water efficiency that increases diesel-fuel use. A quick look at a rating are complex, and estimators need to figure in LEED admin-
system.—maybe not that quick since the new-construction istrative costs. However, as energy prices skyrocket and
green

• energy & atmosphere


• material & resources PDF is 81 pages long—will outline requirements for carpet resources are depleted, owners will begin—have already
• indoor environmental quality systems and adhesives use. It will prohibit development begun—to understand that long-term energy savings
• innovation & design process in proximity to wetlands and in flood plains. Fenestration may outweigh savings on cheaper but less-energy-
that maximizes “daylighting” and cuts the electric bill will efficient construction.
put you in LEED’s good graces. It blesses construction that

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

Know what’s in store


When it comes to retail, energy efficient is what they’re shopping for.

sk those in the electrical industry

A about the retail market and they’ll


tell you it’s mostly about lighting.
Ask what kind of lighting, and
they’ll answer “the energy-efficient kind”
—which should be obvious, since energy
costs are astronomical and lighting eats
up a big chunk of a retailer’s utility bill.
But there are nuances to retail lighting
and a storeowner’s desire to cut energy
costs. For instance, it can’t be lousy light.
Ideally, retailers want light with a high
color rendering index (CRI), a one to 100
value that indicates an artificial light
source’s ability to replicate natural light.
They also want components to last and to
be near zero maintenance. And, as if all
of that weren’t enough, they want a part-
nership between form and function: The
lighting fixtures and design scheme must
be attractive as they are essential in en-
ticing customers into the store and luring
them closer to the merchandise.
“Storeowners look at a lot of energy- While retailers desire lighting that entices customers into stores and lures them closer to
efficient applications, but in retail, it’s merchandise, they are also beginning to appreciate the benefits of energy-efficient lighting.
about what’s the best lighting application
for the customer to display their prod- ment manager for retail and property 75W lamps. “There’s no incentive to the
ucts,” said Ken Hawley, vice president of management at GE Consumer & Indus- store to reduce its individual energy con-
sales at Venture Lighting. trial, explained, many mall stores have sumption,” said Lancaster. “As a result,
leases that require them to pay a prede- we’re seeing malls adding submetering
Property management termined assessment or share of the equipment that allows better manage-
Replacing cheaper, less energy-efficient mall’s total energy consumption based on ment of costs and more equitable billing
fixtures, lamps, ballasts, and controls with their square footage. of individual stores.”
more expensive but energy-squeezing Lancaster has one customer with hun-
retrofits is a big issue. It’s often difficult for dreds of stores across the country. In some Retail construction
a distributor to upsell an end-user when stores the company uses an energy- Retrofits are only part of the retail land-
the price of new-generation fluorescents efficient 50W lamp that allows it to reap the scape, and malls represent the declining
and HIDs seems prohibitive. Sometimes benefits of reduced energy savings. How- side of new store construction. Enclosed
the deck is stacked against a retailer who ever, in malls where stores aren’t individu- malls are losing favor with consumers
wants to be a good environmental stew- ally metered, the retailer continues to use and being replaced by open-air “lifestyle

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

In current U.S. dollars (billions)

$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

put in place began moving upward


again, ending with $66.6 billion spent. *2005-2007 are estimates. Source: Reed Construction Data.
“If you look at market segments, retail
spaces are the largest in terms of square
than 50% to 60% of the electric load in the complex, and anywhere in between.
footage, and lighting can represent more
facility on average,” said Nick Bleeker, “We talk about the requirements or
manager of business de- guidelines for general lighting, accent
Electricity use in retail buildings velopment for Day-Brite/ lighting, feature and display lighting, and
Capri/Omega. “With those perimeter lighting. Depending on what
statistics, retailers need to store classification they have, they use
know how important light- several of those elements, all of them, or
ing can be to address just a few,” said Bleeker.
their particular needs.” Arnold Jones, president and CEO of
Lighting: Williams Supply in Roanoke, Va., said
59% Design and owners often need advice, and distributors
implementation have an open opportunity to approach
Bleeker said his lighting retailers and offer services that range from
companies use a tailored hazardous-material disposal to energy
Cooling: approach to customers’ audits on their stores. Lighting design,
14% needs, taking into con- Jones said, is an excellent prospect for
sideration the store’s distributors working with small retailers,
Other: 9% preferred image and its such as jewelry stores and clothiers, who
purpose. Since retail is have the same concerns with product
diverse—covering the display as chain retailers. By working
Space heating: 5% likes of Joe’s Quik-E closely with a fixture or ballast manufac-
Ventilation: 6%
Mart, Tiffany & Co., Tar- turer, Williams can make an attractive
get, AutoZone, and Safe- value-added proposal that offers design
Office equipment: 7% way supermarkets—store services to light or relight a space.
lighting can be simple, “We have a person who is very cap-

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-

Lighting design is an excellent


prospect for distributors working with
small retailers, such as jewelry stores
and clothiers, who have the same
concerns with product display as
chain retailers.
charge (HID) lamps as the main combat-
ants. Since both camps have seen vast
improvements in technology, this could
be the most important lighting choice
retailers will make.
Hawley said that metal halide is often
considered first as a fine outdoor lamp
along with its HID cousins, sodium and
mercury vapor, and as a high-wattage
commercial application. But innovations
with lower wattages should give a com-
petitive edge to a pulse-start product line
that includes a full-spectrum, 90-plus CRI
lamp that clocks in at 5,000 Kelvin—a
near-perfect reproduction of daylight.
“It’s a very robust light source and will
certainly open up an area or a grouping
of applications that we have not really
been able to get a good market presence
for in the past,” said Hawley.
Everyone knows fluorescent lamps are
energy efficient. As with HID lamps, they
provide excellent lumens-per-watt (LPW)
Circle 132 on Direct Info Card

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

Experts Discuss Bioterrorism at ASIS Conference


FEARS THAT AMERICA HAS GROWN response that includes an emer-
complacent since the 9/11 ter- gency operations center (EOC) at
rorist attacks was the theme at every major site with smaller sites
The American Society for Indus- linked to an EOC “parent.” It is
trial Security (ASIS) Internation- a chain-of-command system in
al’s “Bioterrorism, Weapons of which each team member, from
Mass Destruction and the Se- the EOC coordinator to all depart-
curity Professional” conference ment heads, has specific duties
held November 7 and 8 in Phila- during an emergency.
delphia. The presenters were in con-
Complacency has made us sensus on one overriding issue:
ill-prepared, concluded a roster keeping the bioterror threat at bay
of eight security industry experts won’t be easy. Doug Callen, chief
who talked about threats from security officer with the Transpor-

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

40 ELECTRICAL CONTRACTOR JAN.06 www.ecmag.com

Anda mungkin juga menyukai