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Life-Cycle Energy Costs andGreenhouse Gas Emissions forGas Turbine Power

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Tracking the Insulation Market for Energy Efficiency Services

Andrea

September 1996

Andrea

Andrea

149-1

R E P O R T 149-1

Tracking the Insulation Market for Energy Efficiency Services

September 1996

Prepared for

595 Science Drive Madison, WI 53711-1076

Phone: 608.238.4601 Fax: 608.238.8733

Email: [email protected] www.ecw.org

Copyright © 1996 Energy Center of Wisconsin All rights reserved

This report was prepared as an account of work sponsored by the Energy Center of Wisconsin (ECW). Neither ECW, participants in ECW, the organization(s) listed below, nor any person on behalf of any of the organizations mentioned above:

(a) makes any warranty, expressed or implied, with respect to the use of any information, apparatus, method, or process disclosed in this report or that such use may not infringe privately owned rights; or

(b) assumes any liability with respect to the use of, or damages resulting from the use of, any information, apparatus, method, or process disclosed in this report.

Acknowledgments

Research by:

Opinion Dynamics Corporation 6441 Enterprise Lane Madison, WI 53719

Contents Abstract .................................................................................................................i

Report Summary................................................................................................. iii

Market Structure ............................................................................................. iii Services, Products, and Practices.................................................................... iii Utility Influence ...............................................................................................iv Training............................................................................................................iv Recommendations............................................................................................iv

Introduction ..........................................................................................................1

Method..................................................................................................................3

Results ..................................................................................................................5

Market Structure ...............................................................................................5 New Construction Market.................................................................................5 Retrofit Market..................................................................................................8 Services, Products, and Practices....................................................................10 General Policies and Practices ........................................................................16 Utility Influence ..............................................................................................18 Summary .........................................................................................................21

Recommendations ..............................................................................................23

Technical Research .........................................................................................23 Market Research .............................................................................................24 Education ........................................................................................................24

Appendix A: Sampling Methodology.............................................................. A-1

Sampling Plan .............................................................................................. A-1

Appendix B: Madison & Janesville/Beloit City-Region Report.......................B-1

General Business Characteristics ..................................................................B-1 Products ........................................................................................................B-1 Practices ........................................................................................................B-4 Services.........................................................................................................B-5 Financing ......................................................................................................B-7 Training.........................................................................................................B-8 Utility Programs and Relationships ..............................................................B-9 General Policies and Practices ....................................................................B-10

Appendix C: Milwaukee City-Region Report ..................................................C-1

General Business Characteristics ..................................................................C-1 Products ........................................................................................................C-2 Practices........................................................................................................C-4 Services.........................................................................................................C-6 Financing ......................................................................................................C-9 Training.........................................................................................................C-9 Utility Programs and Relationships ............................................................C-10 General Policies and Practices ....................................................................C-12

Appendix D: Green Bay City-Region Report ..................................................D-1

General Business Characteristics ..................................................................D-1 Products ........................................................................................................D-2 Practices........................................................................................................D-4 Services.........................................................................................................D-5 Financing ......................................................................................................D-7 Training.........................................................................................................D-8 Utility Programs and Relationships ..............................................................D-8 General Policies and Practices ....................................................................D-10

Appendix E: Eau Claire / La Crosse City-Region Report ................................ E-1

General Business Characteristics .................................................................. E-1 Products ........................................................................................................ E-2 Practices........................................................................................................ E-4 Services......................................................................................................... E-5 Financing ...................................................................................................... E-8 Training......................................................................................................... E-8 Utility Programs and Relationships .............................................................. E-9 General Policies and Practices .................................................................... E-10

Appendix F: In-Depth Interview Instrument.................................................... F-1

Tables and Figures Table 1 Policy and practices ratings.............................................................17 Table A-1 City-region boundaries................................................................. A-1 Table A-2 SIC codes for insulation contractors ............................................ A-2 Table A-3 Population statistics...................................................................... A-3 Table A-4 Completed interviews—Eau Claire/La Crosse area ..................... A-4 Table B-1 Policy and practices ratings.........................................................B-11 Table C-1 Policy and practices ratings.........................................................C-13 Table D-1 Policy and practices ratings........................................................ D-11 Table E-1 Policy and practices ratings.........................................................E-11

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Abstract As restructuring of the Wisconsin utility industry goes forward, many organi-zations are rethinking how energy efficiency should be promoted. To design new programs, these organizations need information about how insulation contractors view energy-related products and services. To supply this infor-mation, we established a baseline of energy efficiency attitudes and practices among Wisconsin’s insulation contractors by conducting 44 in-depth interviews in five, broadly-defined areas of Wisconsin: Madison, Milwaukee, Janesville/Beloit, Green Bay, and Eau Claire/La Crosse. Interviewed retrofit contractors are smaller, more local, and have more input into decisions than new construction contractors. Beyond the minor repair and replacement services offered by retrofit contractors, most interviewed contractors do not offer comprehensive energy services, preferring to focus their business on insulation. The exception was contractors in the Milwaukee city-region, who offer weatherization services that are close to comprehensive. Contractors typically insulate to meet or just exceed the R-value mandated by code. Some contractors use newer insulation products, such as Blow-In-Blanket , InsulSafe III , and expandable foam, but application is limited to certain situations and acceptance of these products is not widespread. Contractors are also concerned about ventilation, frequently saying that today’s houses are built too “tight”, in part because of mandated vapor barriers. Contractors support utility rebates and utility promotion of energy efficiency. They also want utilities to continue offering blower-door tests and energy audits.

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Report Summary To help design and evaluate future energy-efficiency programs, we interviewed 44 contractors in five areas of Wisconsin to establish a baseline of energy-efficiency services in the residential and small commercial insulation market. Using in-depth interviews—a qualitative research method—we explored market structure; services, products, and practices; utility influence; and training.

Market Structure

Insulation contractors tend to specialize in one of two markets—new con-struction or retrofit. Among interviewed contractors, new construction con-tractors are larger and cover a larger service territory than retrofit contractors. Their size gives them a significant advantage in buying materials, making the new construction market very competitive and price sensitive. A new con-struction contractor views the builder as the customer and typically does all their insulation work, which is generally limited to installing wall and ceiling insulation. New construction contractors have little input into specified R-values.

Retrofit contractors, besides being smaller and more local, have more direct contact with the actual customer (that is, the owner of the home or building). This allows retrofit contractors to have much more input into decisions, such as the R-value of installed insulation. Although most of their work consists of insulating attics and ceilings, many interviewed retrofit contractors also offer minor repair and replacement services, such as repairing attic vents and installing new windows. Though still important, price is less critical in the retrofit market, and many contractors market their quality, experience, and sometimes, comprehensive services.

Services, Products, and Practices

Most interviewed contractors concentrate on installing wall and ceiling insu-lation that meets or just exceeds building codes. Beyond insulation, contractors are concerned with proper ventilation to prevent excessive attic heat and moisture build up inside the home. Many contractors said that buildings today are “tight.”

Most contractors do not offer comprehensive energy services, such as energy audits, blower-door tests, weatherization, energy savings estimates, or carbon monoxide detection. The exception was the Milwaukee area, where many retrofit contractors offer weatherization services that are close to comprehensive.

T r a c k i n g t h e I n s u l a t i o n M a r k e t

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Normal insulation practices are R-38 to R-40 insulation in ceilings, R-13 insulation in 2X4 walls, and R-19 insulation in 2X6 walls. A few contractors use new insulation products, such as InsulSafe III and Blow-In-Blanket, but acceptance is not widespread. Expandable foam insulation is used selectively (for example, to seal around chimneys), but cost, practical difficulties, and concern about damage to doors and windows due to over-expansion of the foam limits its application.

Contractors define super insulation in different ways, but few install it, citing high costs. Few install basement floor insulation, for similar reasons; they also say that this is the concrete contractor’s responsibility. All contractors install vapor barriers to comply with building codes, but many contractors are concerned that vapor barriers make a building too “tight.”

Utility Influence

Utilities have some influence on increasing the average R-value of insulation. Utility programs, especially low-income programs, also generate business for retrofit contractors. Most contractors approve of utility education and rebate programs and want utilities to continue offering blower-door tests and energy audits.

Training

Insulation contractors typically learn on the job. Contractors said they receive training and education through manufacturers and utility seminars.

Recommendations

Based on our results, we make the following recommendations:

Research Research the costs and benefits of products and practices and disseminate

this information to contractors, especially the costs and benefits of blower-door services.

To increase contractor participation and reduce scheduling problems, conduct market tracking studies in the winter.

Work closely with insulation contractors to understand their perspectives on products, services, and practices.

R e p o r t S u m m a r y

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Because the insulation market changes slowly, wait to do further market research until there is reason to believe that the market has changed, such as an education program.

Education Continue to educate residential and small commercial customers on the

benefits of proper insulation and weatherization.

In contractor education programs, use the same techniques and materials throughout the state.

1

Introduction Wisconsin utilities have promoted energy-efficiency programs since the early 1980’s. Utilities designed their first efforts to increase customer awareness and provide education about energy efficiency. This typically involved television and radio advertisements, brochures, bill stuffers, and other promotional efforts emphasizing the benefits of energy conservation. Utilities also offered free energy audits for residential and small commercial customers. Many utilities gradually expanded their efforts to include rebates, financing, shared savings, or other incentives. However, in the past few years many utilities have scaled back most of these programs, favoring instead information programs or demand-side management bidding programs to promote energy efficiency.

In this changing climate, the Public Service Commission of Wisconsin, the Energy Center of Wisconsin, Wisconsin’s gas and electric utilities, and other organizations concerned with energy conservation are investigating alternative ways to encourage energy-efficiency. To design new programs and measure their impact, it is essential to establish a baseline of products, attitudes, behaviors, and practices among Wisconsin’s insulation contractors. This was the objective of our study. To collect information about products, attitudes, behaviors, and practices, we conducted in-depth interviews with insulation contractors across the state.

In-depth interviews are a qualitative research method designed to explore a research issue and to identify and explore the range of attitudes, opinions, and preferences on a particular topic. In-depth interviews cannot confirm hypotheses or predict the percentage of contractors that hold a certain opinion or attitude. Based on the consistency of their responses, and the fact that contractors frequently reported similar practices and products among their competitors, we believe our results are representative of most other contractors. But the reader should evaluate these results in light of the qualitative nature of the research.

3

Method We interviewed 44 insulation contractors in five areas of Wisconsin between September 21, 1995, and January 17, 1996. The five areas, or city-regions, were Madison, Milwaukee, Janesville/Beloit, Green Bay, and Eau Claire/La Crosse. We completed 18 interviews in the Milwaukee area, eight in Green Bay, ten in Eau Claire/La Crosse, and eight in Madison and Janesville/Beloit. Madison and Janesville/Beloit were combined because of the small number of contractors in these two city-regions. The city-regions included both the cities themselves and surrounding communities.

We interviewed a mix of contractors in each city-region, ranging from five-person retrofit businesses to large 70-employee contractors who specialize in new construction. We interviewed a large proportion of insulation contractors in most city-regions. We also interviewed a mix of contractors who provide many overlapping and complementary services. Appendix A describes the sampling methodology.

Except where noted, the descriptions of opinions, attitudes, behaviors, and practices apply to all five city-regions. Appendices B through E contains reports for individual city-regions.

The in-depth interviews, lasting up to one and one-half hours, included both open-ended and close-ended (yes/no, multiple choice) questions designed to identify and explore the products and services that insulation contractors provide to the residential and small commercial sectors. Appendix F contains the instrument used to conduct the interviews. The interview questions covered the following topics:

Market Structure

We asked contractors to describe the residential and small commercial markets and the interactions they have with contractors, customers, and suppliers. We also asked them to describe their marketing, the service-delivery process, and the services they provide in the new construction and retrofit markets.


We asked contractors about the services and products they offer that address energy efficiency, safety, and comfort and the practices they use when they deliver services. At the end of the interviews, we also asked contractors about general policies and practices their company uses when recommending products and services. We asked them to read a series of statements and rate each statement on a scale of one to six, where one means “strongly disagree” and six means “strongly agree.”


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Utility Influence

We asked contractors how utilities have influenced their business. We also asked them how utility programs have affected their products, practices, and services.

Training

We asked contractors about staff training, sources of training information, and future training needs.

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Results

Market Structure

Most insulation contractors heavily concentrate in either the retrofit or new construction market, although they do not work exclusively in a single market. The new construction market differs significantly from the retrofit market in terms of size, marketing methods, service delivery, and decision making.

New Construction Market

Market Characteristics

When asked to describe the new construction market, much of the discussion centered around the interactions insulation contractors have with builders and general contractors and their knowledge of other insulation contractors in the area. Key market characteristics are outlined below.

The new construction insulation market is substantially larger than the retrofit market.

Interviewed contractors insulate just over 20,000 new homes and commercial buildings per year, compared to reinsulating or upgrading insulation levels in approximately 6000 existing homes and small commercial buildings.

New construction contractors cover a large geographical area.

Many new construction contractors said their service area covered a 80 to 100 mile radius around their office. Contractors commonly used terms such as south-central Wisconsin, southeastern Wisconsin, and northeastern Wisconsin when describing the area they serve.

Large insulation contractors buy in volume, giving them significant price advantages over small, lower volume insulation contractors.

Small new construction contractors said that is difficult to compete with large contractors who purchase large volumes of insulation at significant discounts.


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A few very large contractors insulate the majority of new homes and small commercial buildings in a given city-region.

For example, two new construction contractors in the Green Bay area collectively employ 85 people and insulate over 4000 new homes and small commercial buildings per year. All other interviewed contractors collectively employ only 17 people and insulate approximately 350 new homes and commercial buildings per year.

Service Delivery Process

In the new construction market, insulation contractors provide only basic insulation services.

Most insulation contractors said that their new construction services are limited to insulating walls and ceilings and installing vapor barriers. Other insulation practices, such as insulating exterior basement walls with Styrofoam and installing sheathing on exterior above-grade walls, are the responsibility of builders and general contractors.

In the residential new construction market, insulation contractors view builders as the customer.

While some contractors employ professional sales staff, most rely on repeat business from building contractors. They market their services to builders and aim to establish long-term relationships with them.

In the commercial market, insulation contractors establish relationships with contractors, but also generate business by reviewing reports to identify new building permits.

In Milwaukee, some contractors reviewed The Dodge Report and Daily Reporter to identify new construction projects in the commercial sector. Sales professionals or managers then call the general contractor for the opportunity to bid on the project.

Building contractors usually use a single insulation contractor for all the homes they build.

Although building contractors seek competitive bids from time to time, they usually work with only one insulation contractor. Insulation contractors said that most home builders change insulation contractors infrequently—switching all of their business when they do.

R e s u l t s

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Timeliness is very important in the service delivery process.

Builders and general contractors give insulation contractors limited notice when a project is ready and provide a small window of opportunity, sometimes as little as one day, for them to complete the job. Insulation contractors that consistently meet deadlines at a competitive price not only retain existing business, but benefit from “word-of-mouth” advertising between area builders.

Decision Making

In the new construction market, a number of decisions must be made, including which insulation contractor to select, what product to use, and what R-value to install.

Builders and general contractors select the insulation contractor.

Insulation contractors working in the new construction market rarely have contact with residential and small commercial customers. Builders and general contractors solicit bids and select sub-contractors.

Price is the most important factor in the new construction market.

Insulation contractors said that competitive pricing is essential to getting and keeping business. Several insulation contractors said that low price is essential because many builders do not pay attention to the quality of installation.

Builders and architects specify the R-value of insulation.

Insulation contractors have little input into the R-values installed. Most building contractors and architects specify R-values and ask insulation contractors to bid based on their specifications.

Insulation contractors determine the type of insulation installed.

Almost all insulation contractors working in the new construction market use fiberglass for both walls and attics.

The availability of contractor-provided financing is not important in the new construction market.

Contractors said that new homeowners have already secured a home mortgage and that insulation is already rolled into the mortgage.


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Retrofit Market

In the retrofit market homeowners or business owners decide to upgrade or reinsulate an existing home or building, build additions, or restore a building after fire or other damage.

Market Characteristics

When asked to describe the retrofit market, contractors discussed the inter-actions they have with residential and small commercial customers. Key market characteristics are outlined below.

The retrofit market is substantially smaller than the new construction market.

Retrofits accounts for approximately one-fourth of the insulation projects completed by interviewed contractors.

Retrofit contractors cover smaller geographical areas.

Many retrofit contractors said their service area consists of a 40 to 50 mile radius around their office—substantially smaller than the service area of many new construction contractors.

Many retrofit contractors obtain significant amounts of business through utility, city, county, and state weatherization programs.

Retrofit contractors often credit weatherization programs with increasing the size and profitability of their business. Many contractors said that many of the homes and multifamily housing projects they have worked on would remain under-insulated without these programs. Many contractors also said they are more likely to install weather-stripping and caulking and perform minor repairs as part of their participation in these programs.

Service Delivery Process

Most retrofit activity involves insulating attics and ceilings in existing homes and businesses.

Upgrades to wall insulation occur less frequently than upgrades to attics and ceilings.

R e s u l t s

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Insulation contractors specializing in the retrofit market work directly with residential and small commercial customers—marketing their services in a variety of ways.

Marketing methods include Yellow Page display ads, direct mail campaigns, trucks, door hangers, cold calling into selected geographical areas, referrals from gas and electric utilities, and referrals from city, county, and state agencies.

Retrofit contractors have mixed opinions of the success of various marketing efforts. While some contractors said that Yellow Pages display ads are responsible for most of their business, others said that referrals from past customers are most important.

Retrofit contractors typically meet with customers to assess the situation, provide advice, and submit a bid.

In their conversations with customers, many contractors emphasize quality, experience, attention to detail, proper ventilation, and minor repair alternatives. Contractors said that insulation contractors who provide clear and convincing advice along with a competitive price typically win the project.

Decision Making

In a retrofit project the home owner or business owner must decide which contractor to select, what product to use, and the amount of insulation to install.

Price is a very important factor in the retrofit market.

Similar to the new construction market, retrofit contractors said that many customers select a contractor based on price. Word-of-mouth and referrals from past customers are also important considerations for many customers.

Retrofit contractors market their firm by stressing quality, experience, and, in some cases, comprehensiveness.

Many insulation contractors said that they try to reduce the importance of price as a decision making factor by giving sound advice about attic ventilation, insulation materials, and installation techniques.

Retrofit contractors said that many customers have already made a decision to upgrade insulation levels prior to calling them.

Contractors frequently said that residential and small commercial customers are aware of insulation and weatherization deficiencies. Many customers plan and budget for these improvements. Others decide to insulate after receiving a utility energy audit.


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Retrofit contractors advise customers on both the R-value and type of insulation to install.

According to insulation contractors, both residential and small commercial customers rely on them for advice on the R-value and type of insulation to install. Retrofit contractors—many of whom only work with a single type of insulation—said that they have a considerable amount of influence on these decisions.

Retrofit contractors rarely offer financing.

Retrofit contractors said that customers either pay out of their savings or secure financing on their own. A few insulation contractors said that providing financing is becoming more important.


When asked about services, products, and practices, many contractors said that state and local building codes dictate insulation practices and R-values. The majority said that building codes ensure well insulated and energy-efficient new buildings and retrofits. Most insulation contractors in the residential and commercial market said they install insulation that meets or occasionally exceeds state and local building codes.

Services

When asked about services they offer that address energy efficiency, safety, or comfort, new construction and retrofit contractors frequently mentioned attic and soffit ventilation. Many contractors are highly concerned about properly ventilating attics to reduce moisture build up and excessive attic heat. However, few contractors offer services such as energy audits, carbon monoxide detection, smoke detection, or blower-door tests. Most said that these services are 1) the responsibility of other types of contractors (for example, heating, ventilation, and air conditioning contractors), 2) not popular with customers, or 3) already, or more appropriately, provided by gas and electric utilities.

Insulation contractors do not offer comprehensive energy audits, although many offer walk-through audits.

Contractors consistently said that utility energy audits, if done properly, are valuable in educating residential customers and convincing them to upgrade insulation. The number of contractors who said they offer energy audits ranged from a few in the Madison and Janesville/Beloit area to almost one-half in the Eau Claire/La Crosse area. When asked to explain the audit process, most described a “walk-through” audit concentrating only on weatherization and insulation.

R e s u l t s

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Insulation contractors do not offer comprehensive energy audits for a variety of reasons.

Some contractors said they do not offer audits because gas and electric utilities offer them for free. Some also said that few customers are interested in paying for them. Others said that auditors need specific training on various types of equipment and construction techniques. Few contractors seemed to believe they are well suited for performing audits.

Insulation contractors consider carbon monoxide detection services as outside their business.

Three of the 44 insulation contractors interviewed offer carbon monoxide detection services or sell and install carbon monoxide detectors. Many believe that carbon monoxide detection services (including educating customers about the dangers of carbon monoxide) are the responsibility of heating, ventilation and air conditioning contractors or gas utilities. While most contractors had favorable opinions of carbon monoxide detectors, few expressed interest in offering this service.

Insulation contractors support the use of smoke detectors but do not routinely recommend or install them.

Residential and commercial building codes require the installation of smoke detectors. Insulation contractors rely on builders and remodelers to sell and install them. Only a few of the insulation contractors interviewed routinely recommend and install smoke detectors.

Contractors associate blower-door tests with utility personnel and programs.

With the exception of the Milwaukee area, few insulation contractors offer blower-door testing services. While contractors are generally supportive of the service, many do not see it as something they could offer profitably. A few contractors in each area said that blower-door tests are not necessary and that common sense and simple advice by an experienced contractor is just as effective.

A substantial proportion of contractors in the Milwaukee retrofit market are actively providing blower-door services through a Wisconsin Gas Company program. These contractors appear to be excited about the new business the service is generating. All of these contractors said that the blower-door test is a good tool for finding air leaks and is helping them provide a more comprehensive service. Instead of simply installing insulation, they frequently install weather-stripping and caulking, and seal air leaks. Contractors credit Wisconsin Gas for getting them involved with the service, training them on its proper use, and providing rebates.


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Insulation contractors say that the majority of residential customers will not pay for blower-door services.

Even the Milwaukee area contractors who offer blower-door services are concerned that customers will not pay for it without utility rebates or other subsidies. A few contractors in Eau Claire/La Crosse and Green Bay had blower-doors in the past but either sold them or put them in storage because of a lack of demand for the service. Most contractors said that the service is not needed in the new construction market because homes are already energy-efficient due to strict building codes and inspections.

Most contractors do not actively promote weatherization services.

Many insulation contractors said they limit their discussions with customers to identifying areas that lack adequate insulation—pointing out weatherization problems only when it is a major problem. Contractors in the northern parts of the state said that residential and small commercial customers are aware of the need to properly weatherize and complete many projects themselves.

Milwaukee area retrofit contractors provide more weatherization services than retrofit contractors in other parts of the state. Two differences in the Milwaukee market may account for this finding. First, Milwaukee has more older homes in need of weatherization. Second, the local gas utility has been actively promoting services, such as blower-door tests, that include identification and repair of household air leaks.

Some Milwaukee area insulation contractors have started to offer weatherization services to keep up with other insulation contractors.

These contractors said they entered the weatherization market because their competition appears to be doing well with the service. They also said they are concerned that competitors who offer weatherization services may have an advantage.

Many retrofit contractors provide at least minor repair and replacement services.

Repair and replacement services typically include repairing soffit or attic vents, reconnecting bathroom or kitchen fan vents, and plugging chimney bypasses. Some contractors also install storm windows, new windows, and doors.

When they recognize problems they can not address, many contractors will refer customers to qualified building and heating, ventilation and air conditioning contractors. Others identify problem areas but refer customers to the Yellow Pages because they prefer not to recommend specific contractors.

R e s u l t s

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Insulation contractors sometimes provide more comprehensive services for low-income agencies.

At least one-half of the contractors interviewed in each city-region work with city, county, or state low-income agencies or utility low-income programs. Many contractors said their role is often limited to installing additional insulation. Others said that the biggest difference between low-income work and other projects is that low-income projects usually include some weatherization services. Weatherization services include weather-stripping and caulking, repairing and replacing windows and doors (including storms), and making minor structural repairs.

Other than installing insulation, most insulation contractors said that business opportunities in the new construction market are limited.

New construction contractors report that most new products, such as windows and doors, are already properly weather-stripped. As a result, many say there are limited opportunities to offer additional new construction services. Many contractors said that the way to make money in the new construction market is by installing high volumes of insulation.

Products

When asked about products that address energy efficiency, safety, and comfort, interviewed contractors had a variety of opinions.

Both new construction and retrofit insulation contractors routinely recommend and install ceiling insulation levels that meet, or just exceed, building efficiency codes.

Most contractors appear to believe that insulation levels beyond R-38 to R-40 have long paybacks and are not a good investment for residential or small commercial customers. A few contractors mentioned that second-time home buyers and purchasers of high-end housing are more likely to ask for ceiling insulation levels between R-44 and R-50.

Fiberglass batt insulation is the dominant form of wall insulation used in new homes.

New construction contractors prefer fiberglass because it is easy to install and relatively inexpensive when purchased in volume—keeping labor and material costs to a minimum in a very competitive new construction markets. Fiberglass R-19 batts are the norm for 2X6 construction and R-13 batts are the norm for 2X4 construction.

Other than the Eau Claire and La Crosse area, few builders install their own wall insulation. Contractors attribute this to the fact that insulation contractors purchase in large quantities and can often install the product for less (or just slightly more) than builders can buy it for.


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Many retrofit contractors prefer blown-in cellulose when insulating the side walls of existing homes. Other wall insulation products mentioned by a few contractors in each area include high-density batts, InsulSafe III®, and the Blow-In-Blanket System®. However, these products have not gained wide acceptance.

Insulation contractors define super insulation in various ways.

Some contractors associate super insulation with specific products, others with particular building techniques. Some contractors use the term “super insulation” to refer to high-density insulation, spray-on polyurethane insulation, the Blow-in Blanket System®, and dry pack cellulose. Other contractors use the term “super insulation” for staggered double 2X4 construction or envelope homes.

Some contractors install high-density insulation, but on less than five percent of the projects they complete. Contractors agree that high-density insulation appeals to only the most energy-conscious people. They also agree that super insulation products and practices are expensive compared to conventional practices—giving estimates which range from one-third to three times more expensive.

Some contractors said that architects sometimes specify super insulation in small commercial buildings when they have space constraints but still have to meet building codes. Other contractors said they have installed super insulation on multifamily housing projects where the building owners want to emphasize efficiency and low heating bills.

Contractors have various opinions on using expandable foam to insulate around windows and doors.

Green Bay area contractors liked and used expandable foam the most while Milwaukee area contractors had the most concerns and used it least. Contractors stated four concerns most frequently. First, contractors said that expandable foam insulation products are expensive—giving cost estimates ranging from ten percent to four times more expensive than fiberglass. Second, most contractors said that working with expandable foam insulation is “messy.” Third, many contractors said the foam often expands to the point that it damages doors and windows. Fourth, a few contractors said that expandable foam insulation has to be kept warm prior to use, which is difficult in the late fall and winter.

In the new construction market, expandable foam insulation is usually used to seal holes drilled in top plates for electrical wiring or plumbing. Retrofit contractors are more likely to use expandable foam insulation for air sealing, and for insulating around chimneys, plumbing pipes, and electrical wires in attics. These contractors say that the product is highly effective for these uses.

R e s u l t s

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State energy codes require wall and ceiling vapor barriers in new homes.

The majority of contractors are comfortable with vapor barriers and report that they are easy to install. Installation simply consists of stapling the polyethylene plastic to the wall studs and ceiling joists after the insulation is installed. None of the interviewed contractors said they caulked around breaks or seams in the plastic.

Many contractors are concerned with making a house “too tight.” A few contractors in each area said ceiling vapor barriers create moisture problems. One contractor said that he routinely cuts ceiling vapor barriers after they are inspected to prevent moisture problems.

Insulation contractors recommend, but do not install, programmable or setback thermostats.

The number of contractors who recommend setback thermostats ranged from one-third in Milwaukee to about three-quarters in Green Bay.

Contractors rarely install basement floor insulation.

Most insulation contractors said that installing basement floor insulation is up to the concrete contractor, but in their opinion it is not cost-effective. The few contractors that have installed basement floor insulation said they install it on approximately two to five percent of their jobs. Similar to other insulation practices beyond code, they say that only the most energy-conscious people are interested.

Practices

Contractors mentioned few differences between small commercial and residential insulation practices. Most said they insulate to meet code in both sectors. Although products like spray-on polyurethane insulation and the Blow-in Blanket System have gained some acceptance, contractors reported that practices change slowly.

Insulation contractors are concerned that building practices may be resulting in homes and small commercial buildings that are “too tight.”

At some point during the interview process, most insulation contractors expressed some concern about the “tightness” of homes and buildings. Both new construction and retrofit insulation contractors are concerned because of possible indoor air quality problems such as stale air and moisture problems. Not using bathroom and kitchen fans appropriately and excessive weatherization and sealing were frequently singled out as causes of the problem.


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Few insulation contractors present building contractors with options.

Most contractors said that they don’t provide options because builders are not interested in the type of insulation or how it is installed. Insulation contractors said that most builders simply want to meet state and local codes and pay little attention to installation techniques.

Retrofit contractors give customers options on ceiling insulation levels, but few customers choose to insulate above code.

Many retrofit contractors give the customer the option of R-38, R-44, or R-50 ceiling insulation. However, customers usually install only enough insulation to meet code—consistent with the advice they receive from many contractors. Contractors also said that many customers feel they can not afford higher R-values.

Contractors do not routinely provide customers with detailed estimates of energy savings.

Contractors do not like to provide estimates because it is difficult to be accurate. Some refer customers who want estimates to gas and electric utilities.

Contractors said that most customers do not ask for energy saving estimates. When contractors do provide estimates, they are usually based on general rules of thumb developed through experience.

General Policies and Practices

At the end of the interviews, we asked contractors about general policies and practices their company uses when recommending products and services. We asked them to read a series of statements and rate each statement on a scale of one to six, where one means “strongly disagree” and six means “strongly agree.” The Madison and Janesville/Beloit areas have been combined due to the limited number of respondents.

The reader should use the following numbers cautiously for three reasons. First, and most importantly, we believe that the qualitative interview results provide a more comprehensive assessment of current attitudes, opinions, and practices because we were able to ask detailed follow-up questions. Second, there are only 18 panel members in Milwaukee, eight in Madison and Janesville/Beloit, eight in Green Bay, and 10 in Eau Claire/La Crosse. Therefore, the averages may not necessarily represent all contractors. Third, the principal reason we collected the information was to track changes in individual contractors’ attitudes, opinions, and practices over time.

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Table 1: Policy and practices ratings1

1 Contractors rated each statement on a scale of one to six, where one means “strongly disagree” and six means “strongly agree.”

Mean Rating1

Statement Madison & Janesville/Beloit

Milwaukee Green Bay

Eau Claire/La Crosse

We focus primarily on the short-term needs of our customers (such as purchase price and availability) when recommending insulation, rather than longer-term issues (such as its impact on heating and cooling equipment operating costs).

2.0 2.7 1.5 2.0

It is becoming increasingly important for us to be responsive to customer concerns about the environment (for example, clean fuels, greenhouse impacts, CFCs).

2.8 4.4 5.4 4.0

Except on rare occasions, we will only recommend insulation & related products that are quickly available in the local market.

3.7 3.8 2.0 2.5

We almost always recommend insulation levels that exceed state standards.

3.3 4.6 4.5 4.6

The services we offer are substantially the same as the services we offered four years ago.

5.0 4.2 3.5 3.9

We offer services that are not typical of other businesses in our industry.

2.5 3.6 4.0 4.0

Rather than making recommendations, our role is primarily that of providing or installing whatever R-Values customers request.

2.3 3.1 2.4 2.8

We encourage customers to consider the long-term savings of the products and services we offer.

5.7 5.5 5.1 5.9

We view customer concerns about health and safety as an opportunity to offer new services.

3.3 4.1 5.0 4.9

We almost always recommend the product with the lowest up-front cost, because our customers tend to be price sensitive.

1.8 3.7 2.1 1.6

Rather than marketing specific services to our customers, our role is primarily that of providing the services our customers request.

3.2 3.6 3.3 4.3

We have made a substantial effort over the last four years to provide our customers with new services.

3.3 4.3 5.3 4.5

We provide information to customers about the environmental benefits of our products and services.

3.7 3.6 5.0 4.4

Insulation contractors in my area are offering a number of services that generally were not available four years ago.

3.2 3.3 3.6 3.1

We try to persuade our customers to buy insulation with very high R-Values.

3.8 4.4 5.4 5.0


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Utility Influence

Gas and electric utilities play an important but difficult-to-quantify role in the residential and small commercial insulation markets. Most contractors are familiar with utility programs but could not provide specific program names. Both retrofit and new construction contractors report that utilities have played a significant role in educating customers on the need for adequate levels of insulation and proper home weatherization.

Retrofit Market

Retrofit contractors are familiar with utility, city, county, and state sponsored programs—especially low-income programs. Many retrofit contractors generate a substantial amount of revenue from these projects.

Retrofit contractors said that utility programs have increased the number of residential and small commercial insulation projects they complete.

Many contractors said that utilities are responsible for upgrading many homes, businesses, and multifamily housing units that would not have been insulated without utility programs.

Utilities play an important but difficult-to-quantify role in changing retrofit market products and practices.

Contractors receive information about products and practices from many sources, including utilities, low-income agencies, manufacturers, distribu-tors, and home building associations. Contractors often credit all of these sources for improvements they have made in ventilation techniques, installation of high-density insulation, caulking, and weather-stripping.

Contractors in the Milwaukee area credit local utilities for helping them identify new services.

Many retrofit contractors in the Milwaukee area are providing blower-door tests as part of gas utility rebate programs. Contractors said that this has increased their business and resulted in more comprehensive services (for example, caulking, weather-stripping, replacing and repairing doors and windows). Some of these contractors said they have learned how to perform gas appliance and gas furnace safety checks as part of their participation in utility programs.

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Retrofit contractors report that building codes have the most influence on the R-value of installed insulation, but utility programs also play a role.

Many contractors said that utility programs have had a positive impact on the average R-values installed. However, when asked about R-values, many contractors said they install what utilities and code requires—using the terms utility and building codes interchangeably. This appears to be because codes set minimum standards but utility programs motivate people to act.


New construction insulation contractors, while aware of utility programs, describe them vaguely and are generally less enthusiastic about their effects.

Most insulation contractors are not currently working with utility-sponsored new construction programs.

Contractors report that utility programs have been eliminated. Many contractors said that these programs did not directly address them.

New construction contractors attribute changes in residential and small commercial insulation practices to many sources.

A key influence on insulation and vapor barrier insulation techniques is state and local building codes. While utilities, manufacturers, and distributors also provide key information, it is difficult to sort out their individual impacts.

According to insulation contractors, builders are most interested in meeting state and local building codes.

Insulation contractors specializing in the new construction market say they typically install insulation levels only to meet code. Most said that, short of providing rebates, utilities will have a difficult time convincing builders to insulate above code.

Future Role of Utilities

Contractors generally agree that it is appropriate and desirable for gas and electric utilities to offer energy audits and programs and to continue to educate residential and small commercial customers on the benefits of energy efficiency.

Residential and small commercial customers trust advice from electric and gas utilities.

Contractors generally agree that utilities give energy-efficient products and practices added credibility. Many contractors said that utility services such as energy audits, when done by a competent auditor, enhance their product and service offerings.


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Insulation contractors would like utility rebate programs to continue.

Rebates not only saves customers money, but also adds to contractors’ business. Many contractors said that utility rebate programs stimulate business and result in projects they would not have otherwise undertaken.

Contractors providing blower-door services feel that utility rebates are important for the continuation of the service.

Contractors are concerned that residential customers will not pay for blower-door services in the absence of a utility subsidy. Most contractors in the Milwaukee area said they will continue to market blower-door services even without utility rebates, but they are uncertain of its marketability.

Training

There are no state licensing requirements for insulation contractors or their employees.

Insulation contractors said that anyone can install fiberglass or cellulose insulation as long as they follow state and local building codes. Contractors offering new products such as spray-on polyurethane foam insulation and the Blow-in-Blanket System said they had to attend manufacturer-sponsored training seminars to become licensed dealers.

Training of contractor personnel occurs on the job.

The typical new employee works with an experienced installer for three to 12 months before being allowed to work on their own. Contractors also mentioned orientation and training videos and manuals provided by product manufacturers as information sources for new employees. Local technical schools were not mentioned as a training source.

Gas and electric utilities provide educational seminars in many areas.

Many contractors have attended utility-sponsored training seminars. These seminars have addressed weatherization, vapor barrier installation, proper insulation levels, dense packing of insulation, blower-door tests, and the need for proper ventilation. Because contractors also receive educational information from manufacturers and suppliers, it is difficult to determine which source has the most influence.

Some contractors say utilities should not recommend specific products or provide training.

Some contractors do not want utilities to get involved in debates over which insulation products (for example, fiberglass versus cellulose) are better than others. A few others said that utilities should not provide training. According to these contractors, training was the insulation industry’s responsibility.

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Few contractors identified any future training needs.

As one contractor stated, “This is not a complicated business.” Most said they will continue to keep abreast of new products and changes in building codes through informal channels, including their suppliers and manufacturers.

Summary

The insulation industry provides products and services to two main markets—new construction and retrofit. The new construction market is substantially larger than the retrofit market. Interviewed contractors insulate just over 20,000 new homes and commercial buildings per year, compared to reinsulating or upgrading insulation levels in approximately 6,000 existing homes and small commercial buildings. While most contractors do not work exclusively in a single market, they tend to concentrate in either the new construction or retrofit market.

In both the new construction and retrofit markets, most insulation contractors limit their activity to installing wall, ceiling, or attic insulation. They do not routinely offer weatherization services such as weather-stripping, caulking, and air sealing. Contractors expressed concern about the “tightness” of homes and small commercial buildings. They appear to be somewhat reluctant to seal buildings too well—fearing they will create indoor air quality problems like stale air or excessive moisture. Contractors usually recommend and install R-values that just meet, or slightly exceed, state and local building codes. Few contractors strongly advocate insulating above code.


Competition within the new construction market is particularly fierce, with a few contractors insulating the majority of new homes in a given area. Price is very important in deciding which insulation contractor to hire. Large new construction contractors have the ability to buy in volume and receive large quantity discounts. Builders and architects dictate R-values, and the contractors simply install what building plans specify. Most new construction contractors said that their services are limited to insulating walls and ceilings and installing vapor barriers. Other insulation practices, such as insulating exterior basement walls with Styrofoam and installing sheathing on exterior above-grade walls, are the responsibility of builders and general contractors.

Retrofit Market

Compared to new construction contractors, retrofit contractors tend to be smaller and have more restricted service areas. Retrofit contractors market directly to their customers through a variety of marketing methods. Similar to


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new construction contractors, retrofit contractors describe a highly cost com-petitive industry. However, retrofit contractors said they have an opportunity to distinguish themselves from their competition by emphasizing quality, experience, and, in some cases, comprehensiveness. They also tend to provide additional services like repairing soffit or attic vents, reconnecting bathroom or kitchen fan vents, and plugging chimney bypasses. Some contractors also install windows and doors as part of their weatherization services. Many retrofit contractors generate substantial amounts of business through city, county, state, and utility weatherization programs.

Regional Differences

Across city-regions, there are few differences in the opinions, attitudes, behaviors, and practices of insulation contractors. The exception is the Milwaukee area, where retrofit contractors are actively providing blower-door services through a Wisconsin Gas Company program. These contractors appear to be genuinely excited about the business opportunities created by offering this service, though they are concerned about its long-term marketability–especially without utility rebates.

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Recommendations Based on the interview results, we make the following recommendations to further promote energy efficiency in the insulation market.

Technical Research

Research basic products and practices and disseminate cost and benefit information.

Most information available to contractors on basic products and practices appears to come from product manufacturers. Objective third-party infor-mation on high-density insulation, spray-on polyurethane insulation, vapor barrier installation, and cellulose versus fiberglass may help contractors assess the information they receive from manufacturers and suppliers.

High-density insulation is an example of an area where insulation contrac-tors, and perhaps builders and remodelers, lack information on costs and paybacks. Contractors who approve of high-density insulation don’t appear to have the information they need to sell others on its benefits.

Research the costs and benefits of blower-door services.

Most insulation contractors associate blower-door services with utilities. To offer this service on their own, contractors must be convinced that 1) it is a cost-effective method of identifying thermal bypasses and other sources of air infiltration, and 2) that a significant number of residential customers will pay for it.

Contractors outside of Milwaukee are not currently providing blower-door services. These contractors appear to need more information about the costs and benefits of the service. On-site demonstrations of how a blower-door test can locate air sealing opportunities that can not be visually identified may be particularly important.

Work closely with insulation contractors in order to understand their perspective on products, services, and practices.

Insulation contractors will only respect advice and information from someone who has established credibility within the industry. This credibility can be built by working closely with contractors and listening to what they have to say about a particular issue. A number of contractors said that researchers need to ride with them and work in the industry to better understand the dynamic environment in which they operate.


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Market Research

Undertake tracking studies on insulation contractors during the winter (approximately December 1 through March 1).

Winter is the slowest season for most insulation contractors. Contacting them then should maximize response rates and minimize scheduling logistics.

Do not undertake further general tracking studies until there is a reason to believe that basic products, practices, or services have changed.

Because products, practices, and services change slowly there is little need for further tracking of the insulation market in the near future. A significant technological breakthrough or education campaign would likely need to take place before any changes in the market could be detected.

Education

Educate builders and architects on proper R-values and the impact of various designs on thermal integrity.

In new construction projects, builders and architects specify the amount of insulation, the size of wall cavities (2X4 versus 2X6), whether energy or “heel” trusses and external sheathing are installed, and how basement walls are insulated. Contractors have little input into these decisions.

Educate building inspectors and building contractors on how to recognize installation problems and measure R-values.

Building inspectors have an opportunity to enforce standards within the insulation industry. Building contractors need to ensure that insulation contractors install the specified R-value, especially in attics. Both inspectors and builders need education on what to look for.

Continue to educate residential and small commercial customers on proper insulation levels and home weatherization.

Contractors agree that electric and gas utilities across the state have had a significant influence on customer awareness of insulation levels and the need for proper home weatherization. Most contractors believe that it is appropriate for gas and electric utilities to continue their education campaigns.

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Use similar education techniques and materials across the state.

Insulation contractors statewide have similar attitudes and opinions toward many insulation products, services, and practices. As a result, educational information does not need to be specific to each area.

A-1

Appendix A: Sampling Methodology The objective of our study was to establish a baseline of products, services, attitudes, behaviors, and practices among Wisconsin’s insulation contractors. To meet this objective, we defined the geographic boundaries of five city-regions: Milwaukee, Madison, Janesville/Beloit, Green Bay, and Eau Claire/La Crosse. We then created a list of insulation contractors in each city-region that work in the residential or small commercial sectors. Finally, we sampled from the list to recruit participants for the study.

Sampling Plan

City-Region Boundaries

To include all contractors who might work in a given metropolitan area, we defined the boundaries of each city-region broadly to include contractors located in major cities and surrounding communities. The city-regions are defined in Table A-1.

Table A-1: City-region boundaries

1 Other communities in west-central Wisconsin such as Ashland, Washburn, Bayfield, Hudson, Neillsville, Menomonie, and Sparta were also included.

Identification of Contractors

We used the following Standard Industrial Classification (SIC) codes to identify insulation contractors who work in the residential or small commercial sectors.

City-Region Geographic Area

Milwaukee area Milwaukee, Waukesha, Racine, Ozaukee, & Washington Counties

Madison area Dane County

Janesville/Beloit area Rock County

Green Bay area Brown County

Eau Claire/La Crosse area 1 Eau Claire, Chippewa, & La Crosse Counties


A-2

Table A-2: SIC codes for insulation contractors

Sample Source

We evaluated three potential sources for lists of insulation contractors: utilities, Dun & Bradstreet (a research service), and the Yellow Pages. To ensure a representative sample, we wanted to include both participants and nonpartic-ipants in utility programs. We eliminated utility lists because some of them reportedly only include contractors who have participated in utility programs. This left Dun & Bradstreet and the Yellow Pages as possible sample sources, both of which include insulation contractors irrespective of participation in utility programs.

To determine which source was more complete, we compared a Dun & Bradstreet database search (Market Place™ database, search using SIC division “Insulation Contractors” (Table A-2) and zip code) to a Yellow Pages search (Survey Sampling Inc., Multifaceted Yellow Pages Service, search using category “Insulation Contractors”). The comparison showed that the Dun & Bradstreet listing was more complete, and for this reason, we chose the Dun & Bradstreet service as our sample source.

Code Category

1742-0200 Acoustical and insulation work

1742-0201 Acoustical and ceiling work

1742-0202 Exterior insulation and finish applicator

1742-0203 Insulation, buildings

A p p e n d i x A : S a m p l i n g M e t h o d o l o g y

A-3

Sampling Procedure

Table A-3 gives the population of insulation contractors identified in each city-region.

Table A-3: Population statistics

1 There were a total of 11 contractors in La Crosse, Eau Claire, Altoona, and Chippewa Falls, and four contractors in Ashland, Washburn, Bayfield, Hudson, Neillsville, Menomonie, and Sparta.

For the Milwaukee city-region, we randomly selected 40 insulation contractors from the population. For all other city-regions, all contractors were sampled. Our objective was to complete 20 interviews.

To address potential shortcomings in the sampling process, we asked utility personnel to review the list established for their service territory. We also asked them to identify the largest contractors within their service territory. We did this in order to 1) identify insulation contractors not on the list, 2) obtain contact names, and 3) ensure a mix of large and small contractors.

Finally, we consulted the Yellow Pages to supplement areas where the Dun & Bradstreet service identified relatively few contractors or when interviewed contractors mentioned other insulation contractors in the area.

City-Region Number of Insulation Contractors

Milwaukee area 66

Madison area 16

Janesville/Beloit area 8

Green Bay area 17

Eau Claire/La Crosse area1 15


A-4

Recruitment

From the reviewed lists, we recruited a mix of contractors for the study. Recruitment consisted of calling contractors to introduce the study and ensure that they worked in the residential or small commercial sector. We then asked for their participation and set up an in-person interview. To increase the response rate and demonstrate that we recognized the value of their time, we offered contractors a $50 incentive to participate in the study. We also told them that the research was on-going and that they may be contacted periodically to track changes in the insulation market.

We completed a total of 44 interviews—18 in Milwaukee, eight in Madison and Janesville/Beloit, eight in Green Bay, and ten in Eau Claire/La Crosse. Madison and Janesville/Beloit were combined due to the small number of contractors in these two areas. Table A-4 gives a breakdown of the interviews completed in the La Crosse/Eau Claire city-region.

Table A-4: Completed interviews—Eau Claire/La Crosse area

Two reasons accounted for the small number of completed interviews: 1) the SIC codes identified a relatively small population of insulation contractors in four of the five areas 2) late August through December is a very busy time for insulation contractors.

City Number of interviews

La Crosse 3

Eau Claire 3

Altoona 0

Chippewa Falls 0

Ashland 0

Washburn 0

Bayfield 0

Hudson 2

Neillsville 0

Menomonie 0

Sparta 2

Total 10

B-1

Appendix B: Madison & Janesville/Beloit City-Region Report This section summarizes the results of eight in-depth interviews with insulation contractors in the Madison and Janesville/Beloit Area, consisting of contractors located in Dane or Rock County. The interviews were conducted between September 21, 1995 and January 17, 1996.

The purposes of the interviews were to: 1) discuss contractors’ opinions of and attitude toward insulation and weatherization products, 2) understand the products, practices, and services of insulation contractors who work in both the residential and small commercial sectors, 3) discuss the role of financing in residential and small commercial customer decision making, 4) understand the present level of training among contractor personnel, and 5) explore both the past and potential future role of utilities in the residential and small commercial insulation markets.

General Business Characteristics

Four of the insulation contractors interviewed have four or fewer employees. Two contractors have 10 employees and the remaining two have 13 and 15 employees, respectively. Annual gross revenue among the eight contractors ranges from $55,000 to $1.25 million.

Interviewees have been working in the insulation business for an average of 15 years (median is 16 years) and their company has been operating for an average of 15 years (median is 13 years). Most of the contractors interviewed focus on the residential market, with the commercial market comprising less than 15 percent of gross revenue. Within the residential sector, two contractors said that 75 to 80 percent of their work was in the retrofit market. The remaining six contractors said the new construction market accounts for 75 to 95 percent of their business. Three of the four largest contractors derive a significant amount of their gross revenue from the residential new construction market.

Most of the interviewed contractors limit their business to customers within a 50 mile radius of their office. One contractor said that they cover all of south-central Wisconsin. Of the eight contractors interviewed, three are active in the Janesville/Beloit area and five are active in various parts of Dane County.

Products

Collectively, the contractors interviewed insulate just over 2300 new homes and 100 new commercial buildings per year. They are also involved in approximately 450 projects that include upgrades to the insulation levels of


B-2

existing homes and commercial buildings. Interviewed contractors have a variety of opinions regarding many insulation and weatherization products.

Ceiling Insulation

Most insulation contractors in the Madison and Janesville/Beloit area recom-mend and install ceiling insulation levels that meet, or just exceed, the minimum building efficiency code of R-38. Most appear to believe that insulation levels beyond R-40 have long paybacks and, as a consequence, are not a good investment for residential or small commercial customers. A few contractors mentioned that second-time home buyers and purchasers of high-end housing are more likely to ask for ceiling insulation levels between R-44 and R-50.

Most new construction contractors are blowing in fiberglass insulation in new and existing homes and buildings. One contractor who does a substantial amount of new construction work prefers to use cellulose in attics. Retrofit contractors have a strong preference for blown-in cellulose.

A few contractors spoke highly of the Blow-In-Blanket System®, a registered trademark of Quality Insulation, Inc. The Blow-In-Blanket System incorporates fiberglass materials with a mix of adhesive fibers (for example, a thin mist of latex binder). The adhesive fibers help to form-fit the insulation to the cavity, eliminating settling and shifting.

Wall Insulation

Fiberglass batt insulation is the dominant form of wall insulation used in the Madison and Janesville/Beloit area. Contractors prefer fiberglass because it is easy to install—keeping labor costs to a minimum in a very competitive industry. Contractors typically install R-19 batts in 2X6 walls and R-13 batts in 2X4 walls. Most retrofit contractors said they prefer to blown-in cellulose when insulating the side walls of existing homes.

Few builders in the Madison or Janesville/Beloit area install their own wall insulation. This is attributed to the fact that insulation contractors purchase in large quantities and can often install the product for less (or just slightly more) than builders can buy it for.

The Blow-In-Blanket System was mentioned by a few contractors. In new construction, the insulation is blown behind a nylon netting. Contractors promote the products by emphasizing increased R-values, reduced infiltration, and superior sound control. Despite its apparent attractiveness, the Blow-In-Blanket System has not gained widespread acceptance for wall insulation.

A p p e n d i x B : M a d i s o n & J a n e s v i l l e / B e l o i t

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Super Insulation

Contractors in the Madison and Janesville/Beloit area have varying definitions of super insulation. One contractor said that super insulation refers to double 2X4 walls or envelope homes which “were a fad in the late 80’s.” Another contractor said that super insulation refers to densely packed cellulose that has a higher R-value per inch. Yet another contractor said that super insulation refers to the use of high-density insulation and more careful caulking. The remaining contractors said they classify most new homes as super insulation projects because they utilize 2X6 construction and R-19 fiberglass batts. According to these contractors, this represents a super insulated home.

Expandable Foam Insulation

Madison and Janesville/Beloit area insulation contractors do not use expandable foam insulation around windows and doors. While a few expressed no opinion of the product, others said that the foam often expands to the point that it damages windows and doors or causes door jams to stick. Most of the interviewed contractors said they limit their use of expandable foam insulation to filling in around holes drilled in top plates for electrical wiring or plumbing.

Vapor Barriers

Insulation contractors install wall and ceiling vapor barriers as part of all new construction projects because of state energy codes. Two contractors said that they are concerned that ceiling vapor barriers will trap moisture between the vapor barrier and the drywall, damaging the drywall in the process. One of these contractors said he does not like to install vapor barriers in ceilings unless the builder uses energy or heel trusses. His concern is that the areas closest to the outside walls will be underinsulated and this will lead to moisture build up. The other contractor said he routinely cuts ceiling vapor barriers after they are inspected.

Setback Thermostats

Seven of the eight contractors have favorable opinions of setback thermostats but do not routinely recommend, sell, or install them. One contractor said he does not like setback thermostats because people often either do not use them or use them improperly.

Basement Floor Insulation

Contractors did not express a strong opinion either for or against the installation of basement floor insulation. Most insulation contractors are not aware of projects which included basement floor insulation. Most said that this activity is up to the concrete contractor.


B-4

Practices

While most of the interviewed insulation contractors advertise on their trucks and through Yellow Pages display ads, their marketing techniques vary. All contractors spoke about the competitive new construction market and the ability of the very large contractors to buy in volume—realizing large quantity discounts.

New construction contractors said that competitive prices, relationships they have with builders, and timely service are the most important ways to keep and expand their business. A few contractors also said they advertise in builder and architectural magazines.

In the retrofit market, contractors said that they obtain their business from a mix of advertising, word-of-mouth, and referrals. In addition to truck and Yellow Pages advertising, retrofit contractors mentioned radio advertising, referrals from gas and electric utilities, and referrals from city, county, and state agencies.

Decision Making Factors

According to insulation contractors, their reputation for quality, workmanship, and cost are the most important factors in residential and small commercial customer decision making.

New construction contractors rarely talk to the actual customer. These con-tractors simply install what builders specify—usually batt insulation for walls and blown-in insulation that just meets building codes for ceilings.

Insulation contractors report that builders’ decision making process for insu-lation is quite simple, with cost being the dominant factor. Large contractors buy in quantity, giving them a significant price advantage over smaller con-tractors. This price advantage is most advantageous in the new construction market where builders look for low-cost insulation sub-contractors.

A few new construction contractors said that builders and general contractors pay absolutely no attention to how insulation is installed.

Contractors working in the existing home market also report that customers are price sensitive. Most of these contractors market cellulose insulation for both walls and ceilings. These contractors gave a variety of reasons for preferring cellulose over fiberglass: cellulose is inexpensive, denser (that is, a higher R-value per square inch), can be densely packed, settles quickly and can’t be fluffed up, reduces air infiltration, and utilizes recycled products which appeals to customers’ concerns about the environment. One contractor is trying to differentiate themselves from others by using the Blow-In-Blanket System.


B-5

Contractors mentioned limited differences between small commercial and residential insulation techniques. Most said that they insulate to code in both sectors.

Insulation Options

Few insulation contractors present customers or building contractors with insulation options. Most insulation contractors prescribe insulation levels that just meet code and only give options to people who appear to be interested or have higher incomes. All contractors said that they are careful to point out the need for proper ventilation. A few contractors said they try to make people aware of high-density insulation and routinely present it as an option.

Energy Savings Estimates

Three insulation contractors said they give residential and small commercial customers energy savings estimates if requested. These contractors said that most customers do not ask for savings estimates, but when customers do ask they provide “general” estimates based on experience. One contractor said they give rough estimates based on information provided by Madison Gas & Electric Company (MG&E). Others said they refer interested customers to MG&E or Wisconsin Power & Light Company (WP&L).

Services

When asked about services they offer that address energy efficiency, safety, or comfort, many contractors said that in addition to identifying insufficient insulation levels, they are highly aware of the need for proper attic and soffit ventilation. Contractors frequently spoke of the need to properly ventilate attics in order to reduce moisture build up and excessive attic heat. Occasionally, contractors will provide the names of heating, ventilation and air conditioning contractors or remodeling contractors if they identify a need they are not qualified to address.

We asked insulation contractors about energy audits, carbon monoxide detection, smoke detection, blower-door tests, and weatherization services. Many contractors do not see these services as something they should offer and did not express strong opinions about them. Contractors’ opinions and attitudes about a number of services are outlined below.

Energy Audits

While Madison and Janesville/Beloit area insulation contractors do not offer comprehensive energy auditing services, they approve of them. Most contractors said that audits, if done by a competent auditor, are valuable in educating


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residential and small commercial customers and convincing them to take energy conservation actions. One contractor said they perform audits but described them as a “walk-through” concentrating on building envelope improvements. Other than local gas and electric utilities, contractors are not aware of other businesses offering energy audits in the Madison and Janesville/Beloit area.

Some contractors said that utility audit programs have generated business for them because auditors frequently discuss the need for more insulation and then leave a list of contractors for the customer to call.

Carbon Monoxide Detection

Insulation contractors in the Madison and Janesville/Beloit area do not provide carbon monoxide detection services or sell detection equipment. Most contractors said that carbon monoxide detection equipment works well and should be installed in every home. However, many contractors said that heating, ventilation and air conditioning contractors and gas utilities are more appropriate providers of this service.

Smoke Detection

Residential and commercial building codes require the installation of smoke detectors. Insulation contractors support their use but rely on builders and remodelers to recommend, sell, and install them.

Blower-Door Tests

Most insulation contractors in the Madison and Janesville/Beloit area have heard about or observed blower-door tests but only two interviewed contractors offer this service. These two contractors said that residential and small commercial customers do not understand the value of blower-door tests and most are not willing to pay for them. Both felt that some type of utility incentive would be necessary before any substantial amount of activity would take place.

A number of contractors said that MG&E and WP&L provided blower-door services. A few said they were considering buying the equipment and offering the service but had heard that contractors have had little success with it.

Two contractors are providing blower-door tests but said that there has been little interest in the service among residential customers. One of these con-tractors said that they got involved through WP&L’s Whole House Program. Both felt that WP&L needs to advertise the service or provide rebates in order to generate more business.

One contractor was aware of a heating, ventilation and air conditioning contractor in the Janesville area who aggressively advertised the service and received only 10 calls about it. One contractor said they charge a flat fee for the


B-7

blower-door test and then credit money back to the customer if they decide to have work done. This contractor also uses the blower door to demonstrate the effectiveness of the Blow-In-Blanket System.

Contractors see little use for blower-door tests in the new construction market because of stringent building codes. Most expressed limited interest in getting involved in this type of service.

Weatherization Services

Most insulation contractors do not actively promote weatherization services—limiting their discussions with customers to identifying areas lacking adequate insulation. Four of the eight contractors said they do not go out of their way to identify areas in need of caulking and weather-stripping but will mention problem areas if they happen to see them. Two contractors said that most people are aware of the need for proper weatherization and take care of it themselves—buying materials and getting advice at local lumberyards and home improvement stores. The other two contractors said they routinely assess the need for caulking, weather-stripping, and the sealing of thermal bypasses.

Participation in Low-Income Programs

Three of the eight interviewed contractors participate in some type of low-income program. These contractors said that the services they offer low-income agencies do not differ substantially from the services they offer other residential customers. The biggest difference is that they almost always provide at least some weatherization services such as weather-stripping, caulking, identifying major thermal bypasses, repairing and replacing windows and doors (including storms), and making minor structural repairs.

A few large new construction contractors said they do not participate in low-income programs because they involve too much paperwork and hassle. These contractors said they can make more money in new construction because of the high volume and streamlined process.

Financing

None of the contractors interviewed offers financing to residential or small commercial customers. Most said they expect to be paid when completing the job or within a maximum of 30 days. Most contractors do not get involved because they see it as the homeowner’s or small business owner’s responsibility. Many also do not believe that they have the financial strength to offer financing.


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Training

Licensing

There are no state licensing requirements for insulation contractors or their employees. With the exception of contractors offering the Blow-In-Blanket System, none of the contractors interviewed mentioned any formal training or certification program. Contractors said they are not aware of any local technical school or formal training programs for people working in the insulation industry. As a result, employee training occurs on the job.

One contractor said that they have all-employee meetings every two weeks to discuss methods and practices. This contractor said they are trying to set the quality standard for the area.

Training Providers

Insulation manufacturers provide most of the information and education materials used by insulation contractors. However, most employees learn by working with experienced installers for three to nine months. A few contractors mentioned training videos and manuals they receive from product manu-facturers. One contractor said that his manufacturer provides six training videos that all employees must watch. Other training providers include suppliers and home product shows. A few contractors said that WP&L and MG&E have provided some training over the years. One contractor said that he had recently attended a whole-house training seminar provided by the Wisconsin Energy Conservation Corporation.

Future Training Needs and Changing Products and Services

Most contractors do not see any specific training needs developing in the future. Most said they will continue to keep abreast of new products and changes in building codes through informal channels, including their suppliers and manufacturers. A few contractors said that training on new insulation systems such as spray-on polyurethane foam insulation and the Blow-In-Blanket System may be needed in the future. One contractor said he has heard about a spray-on expandable foam insulation that can be used for side walls.


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Utility Programs and Relationships

Most retrofit contractors are familiar with utility programs but could not provide specific program names. New construction contractors, while generally aware of utility programs, were more vague in their descriptions of the programs and generally less enthusiastic about their impact. A verbatim listing of the programs mentioned by some contractors include Wisconsin Gas Rebates, WP&L Total Home Tune-Up, Whole House Program, and WECC Whole House. When asked specific program names, a few contractors simply said MG&E or WP&L.

Program Impacts

Most contractors said that utility programs have had a moderate impact on their business activity by increasing the number of residential and small commercial insulation projects they complete. A few contractors said utilities are responsible for upgrading the insulation levels of many homes, businesses, and multifamily housing units that would not have been upgraded in the absence of utility programs.

Only two of the eight contractors said that utility programs have had a positive impact on the average R-values installed. These contractors both felt that utility standards have typically been slightly above code. Other contractors said that utility impacts are limited to increasing the number of projects they complete per year.

A few contractors talked about seminars and information sponsored by MG&E or WP&L. However, it is difficult for most contractors to sort out the influences from various sources. Many refer to utilities, distributors, and manufacturers when discussing new products and practices. Contractors often credit all of these information providers for improvements they have made in ventilation techniques, vapor barrier installation, caulking, and weather-stripping.


Many contractors said that it is appropriate for gas and electric utilities to provide literature and continue to educate residential and small commercial customers on the benefits of energy efficiency. A number of contractors said that builders and architects are not aware of new insulation products and pay little attention to installation techniques and quality. These contractors said that utilities should expand their educational campaigns to reach builders and architects.

Many contractors said that customers trust the advice they receive from the utility and that utilities give energy efficient equipment and building techniques added credibility. One contractor was particularly concerned that MG&E


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endorses certain products (for example, cellulose insulation over fiberglass) and would like to see them end this practice.


At the end of the in-depth interviews, contractors were asked to read a number of statements related to general policies and practices their company uses when recommending or suggesting insulation and related services to customers. They were asked to rate each statement on a scale of one to six, where one means “strongly disagree” and six means “strongly agree.” The results of this exercise are illustrated in Table B-1.

The reader should review the following numbers with caution for two reasons. First, and most importantly, we believe that the qualitative interview results provide a more comprehensive assessment of current attitudes, opinions, and practices. This is because we were able to ask detailed follow-up questions for each area of interest. Second, the emphasis in our recruitment was to include insulation contractors of various sizes from a wide geographical area. As a result, the group of contractors we spoke to are not necessarily representative of all insulation contractors in the Madison and Janesville/Beloit area.

The principal value in collecting the information presented in Table B-1 is that it will provide a quantitative baseline from which to track changes in individual contractor’s attitudes, opinions, and practices over time.


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Table B-1: Policy and practices ratings

1Contractors were asked to rate each statement on a scale of one to six, where one means “strongly disagree” and six means “strongly agree.”

Statement Mean rating1


2.00


2.83

Except on rare occasions, we will only recommend insulation and related products that are quickly available in the local market.

3.67

We almost always recommend insulation levels that exceed state standards. 3.33

The services we offer are substantially the same as the services we offered four years ago. 5.00

We offer services that are not typical of other businesses in our industry. 2.50


2.33

We encourage customers to consider the long-term savings of the products and services we offer. 5.67

We view customer concerns about health and safety as an opportunity to offer new services. 3.33


1.83


3.17

We have made a substantial effort over the last four years to provide our customers with new services. 3.33

We provide information to customers about the environmental benefits of our products and services. 3.67


3.17

We try to persuade our customers to buy insulation with very high R-Values. 3.83

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Appendix C: Milwaukee City-Region Report

This section summarizes the results of 18 in-depth interviews with insulation contractors in the Milwaukee Area. This consists of contractors located in Milwaukee, Ozaukee, Washington, Waukesha, or Racine County. The inter-views were conducted between November 29, 1995 and December 9, 1995.



Nine of the insulation contractors, representing one-half of those interviewed, have between six and eight employees. Four contractors have three employees while the remaining five have 12 or more employees. Annual gross revenue among these contractors ranges from $100,000 to $8 million.

Interviewees have been working in the insulation business for an average of 17 years (median is 18 years) and their company has been operating for an average of 18 years (median is 20 years).

Most of the contractors interviewed focus on the residential market, with the commercial market comprising less than ten percent of gross revenue. Within the residential sector, contractors were approximately equally split between those who focus on the new construction market and those who focus on upgrades to existing homes. The contractors working in the new construction market tend to be the largest. The three largest contractors collectively insulate over 6000 new homes a year among them.

Most of the contractors interviewed work throughout southeastern Wisconsin. Less than five contractors limit their service area to a one- or two-county area. Contractors working in the new construction market (the largest contractors) travel the most extensively.


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Products

Collectively, the contractors interviewed insulate almost 8500 new homes and 400 new commercial buildings per year. They are also involved in almost 3100 retrofit projects that include upgrades to the insulation levels of existing homes and commercial buildings. The contractors interviewed have a variety of opinions regarding many insulation and weatherization products.

Ceiling Insulation

Both new home and retrofit insulation contractors in the Milwaukee area routinely recommend and install ceiling insulation levels that meet, or just exceed, the minimum building efficiency code of R-38. Most appear to believe that insulation levels beyond R-40 have long paybacks and, as a consequence, are not a good investment for residential or small commercial customers. A few contractors mentioned that second-time home buyers and purchasers of high-end housing are more likely to ask for ceiling insulation levels between R-44 and R-50.

Most new construction contractors use blown-in fiberglass ceiling insulation in new homes and buildings, while many retrofit contractors prefer cellulose. New construction contractors said they prefer fiberglass because it is easy to work with and relatively inexpensive. A few retrofit contractors said they prefer cellulose because it is more durable, dense, and energy-efficient.

Some contractors spoke highly of a new product called InsulSafe III®, produced by CertainTeed Corporation, and the Blow-In-Blanket System, a registered trademark of Quality Insulation, Inc. Both are blown-in fiberglass insulation products appropriate for both attic and side-wall installation. The Blow-In-Blanket System® is unique because it combines the same fiberglass materials builders have used for years with a unique mix of adhesive fibers (for example, a thin mist of latex binder). The adhesive fibers help to form fit the insulation to the cavity and also eliminates settling and shifting. Both products have gained some acceptance for insulating residential and small commercial ceilings.

Wall Insulation

Fiberglass batt insulation is the dominant form of wall insulation used in new homes in the Milwaukee area. New construction contractors prefer fiberglass because it is easy to install and relatively inexpensive—keeping labor and material costs to a minimum in a very competitive new construction market.

Few builders in the Milwaukee area install their own wall insulation. This is attributed to the fact that insulation contractors purchase in large quantities and can often install the product for less (or just slightly more) than builders can buy it for.

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Most retrofit contractors said they prefer to blown-in cellulose when insulating the side walls of existing homes. A few retrofit contractors prefer to use the Blow-In-Blanket System when installing insulation in existing walls. These contractors promote the system by emphasizing the fact that the insulation will not settle, provides higher R-values within a given wall cavity, reduces infiltration, and provides superior sound control.

Despite its apparent attractiveness, the Blow-In-Blanket System has not gained widespread acceptance for wall insulation in the new construction market. This is attributed to the fact that the Blow-In-Blanket System requires more labor, which significantly drives up overall project costs—limiting its marketability to “high-end” builders

Super Insulation

Milwaukee area contractors had varying knowledge of super or “high-density” insulation. Almost one-third of the contractors interviewed had never heard of super insulation. While the majority of contractors (about two-thirds) are familiar with super insulation, they have mixed opinions about it. All of these contractors agree that super insulation products and practices are expensive. Contractors gave estimated cost increases which range from one-third to three times more expensive than conventional insulation practices.

Most insulation contractors who are familiar with super insulation have also installed it. However, most said they install it on less than five percent of the projects they complete. Contractors agree that super insulation appeals to only the most energy-conscious people. Some mentioned that architects periodically specify it on small commercial buildings if they have space constraints but still have to meet commercial building insulation codes. Other contractors said they have installed super insulation on multifamily housing projects where the building owners want to emphasize efficiency and low heating bills.


The majority of new construction and retrofit contractors in the Milwaukee area do not use expandable foam insulation around windows and doors for a variety of reasons. First, all contractors agree that expandable foam insulation products are expensive. Estimates of the increased expense of the product, including installation, versus fiberglass, ranged from ten percent to four times more expensive. Second, most contractors said that working with expandable foam insulation is “messy.” Many told stories about the foam running down windows or doors and creating a mess. Third, many contractors said the foam often expands to the point that it damages doors and windows. Finally, a few contractors said that expandable foam insulation has to be kept warm prior to use, which was difficult to do during the late fall and winter.


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Three retrofit contractors said they routinely use expandable foam insulation for air sealing, and for insulating around chimneys, plumbing pipes, and electrical wires in attics. These contractors said that the product is highly effective for these uses.

Vapor Barriers

Insulation contractors install wall and ceiling vapor barriers as part of all new construction projects because of state energy codes. The majority of contractors in the Milwaukee area are comfortable with these barriers and report that they are easy to install. Installation simply consists of stapling the polyethylene plastic to the wall studs and ceiling joists after the insulation is installed.

Setback Thermostats

Few insulation contractors get involved with the installation of programmable or setback thermostats and, as a result, few offered any opinion of them. About one in every three contractors recommend setback thermostats to their customers but do not sell or install them.


Most insulation contractors are not aware of any projects that included basement floor insulation. Most said that this activity would be up to the concrete contractor, but in their opinion it would not be cost-effective. Two contractors said they have installed basement floor insulation on about two to five percent of their jobs. Similar to super insulation, they reported that only the most energy-conscious people are interested in it.

Practices

While most of the interviewed insulation contractors advertise on their trucks and through Yellow Pages display ads, their marketing techniques vary. All contractors spoke about the competitive new construction market and the ability of large contractors to buy in volume—realizing large quantity discounts. In fact, many of the retrofit contractors said that the new construction market is so competitive that they work hard to stay out of it.

New construction insulation contractors said that timely service and relation-ships they have with builders are the most important ways to maintain and expand their business. A number contractors said that they frequently “cold call” builders in order to increase their sales. In the commercial new con-struction sector, a number of contractors said they review Dodge Reports and the Daily Reporter in order to identify new building permits. They then call the


C-5

general contractor to try to obtain the work. A few commercial contractors also said they advertise in builder and architectural magazines.

In the retrofit market, advertising methods are more variable. In addition to truck and Yellow Pages advertising, retrofit contractors mentioned direct mail campaigns, door hangers, cold calling into selected geographical areas, referrals from gas and electric utilities, and referrals from city, county, and state agencies.

Retrofit contractors gave mixed opinions of the success of various marketing efforts. While some said that Yellow Page advertising was responsible for nearly all of their business, others said that referrals were the most important. A few firms said that they were highly dependent on referrals from the local gas companies or government agencies. A few others said that they have expanded into window and door replacement, which gives them other opportunities to talk about insulation.


According to new construction contractors, price is the most important decision making factor for most builders. Many said that, while a failure to be responsive or poor workmanship can cause a builder to switch contractors, competitive pricing is paramount. Because of the price discounts realized by large insulation contractors, small contractors find it difficult to compete. Less important decision making factors that some new construction contractors talked about include comfort, safety, warranty, and reputation.

New construction contractors said they rarely talk to the ultimate customer and simply install what builders specify—usually batt insulation for walls and blown-in insulation that just meets building codes in ceilings.

Retrofit contractors also report that customers are price sensitive. However, these contractors are more likely to mention comfort, safety, warranty, and reputation as important decision making factors for many customers. Many retrofit contractors promote the use of cellulose insulation in walls and ceilings but will install fiberglass if the customer has a preference. When asked why they prefer cellulose, most contractors said it was “superior” and offered no further explanation. A few retrofit contractors are trying to differentiate themselves from others by using InsulSafe III or the Blow-In-Blanket System.

Contractors mentioned limited differences between small commercial and residential insulation techniques. Most said that they insulate to code in both sectors. A few contractors have started to work with spray-on polyurethane foam insulation products in the commercial sector. These products are typically applied to the outside of the cement blocks used to construct exterior walls. A few projects involve injecting foam insulation inside cement blocks.


C-6

Insulation Options

Few insulation contractors present building contractors with insulation options. Most said this is because builders are not interested and simply want to meet local codes.

In the retrofit market, however, most contractors give customers options of R-38, R-44, and R-50. Even though they give customers options, most retrofit contractors appear to favor insulation levels that just meet code and said that few customers choose to insulate beyond code.

Both retrofit and new construction contractors are highly aware of the need for proper ventilation. For retrofit contractors, proper ventilation is a key aspect of the service they provide.


Only a handful of the insulation contractors interviewed routinely give residential or small commercial customers energy savings estimates. One contractor said that they either base the estimate on past experience or a computer printout, depending on the interest level of the customer. A few others said they give “ball park estimates” based on their past experiences. Others said they use a chart given to them by the gas company.

Contractors that do not provide savings estimates said it is difficult to be accurate and that most people do not ask. Others said they refer people to the “gas company” if they want energy savings estimates. All contractors generally agree that most customers are comfortable with a “general discussion” of insulation materials and savings.

Services

When asked about services they offer that address energy efficiency, safety, or comfort, many contractors said that in addition to identifying insufficient insulation levels they are highly aware of the need for proper attic and soffit ventilation. Contractors frequently spoke of the need to properly ventilate attics in order to reduce moisture build up and excessive attic heat.

Most retrofit contractors will also complete minor repairs, such as replacing walls and sections of roofs that have been damaged by moisture or decay. Some will also retrofit windows with storms, install new windows and doors, and provide the names of heating, ventilation and air conditioning contractors or remodeling contractors if they identify a need that they are not qualified to address. Most retrofit contractors also said they sell and install weather-stripping and caulking. Additionally, many provide blower-door tests, air sealing services, and safety checks on gas appliances and furnaces.


C-7

We asked insulation contractors about energy audits, carbon monoxide detection, smoke detection, blower-door tests, and weatherization services. Many contractors in the Milwaukee area appear to be providing comprehensive weatherization services or are beginning to move in this direction. Contractor’s opinions and attitudes about a number of services are outlined below.

Energy Audits

While most Milwaukee area insulation contractors do not offer comprehensive energy auditing services, they do approve of them. Most contractors said that audits, if done properly, are valuable in educating residential customers and convincing them to take energy conservation actions.

A few contractors said they perform audits. When asked to explain the audit process, most described a “walk-through” audit concentrating on weatherization and insulation opportunities.

Some contractors said they do not offer audits because the power company offers them for free and few customers are interested in paying for them. Others said that auditors need specific training courses on various types of equipment and construction techniques. Few contractors seemed to believe that the people within their organization were well suited for this. A few said that offering energy audit services was a whole different type of business.

Other than local gas and electric utilities, contractors are not aware of other businesses offering energy audits in the Milwaukee area.


Insulation contractors unanimously believe that carbon monoxide detection (including educating customers about the dangers of carbon monoxide) is the responsibility of heating, ventilation and air conditioning contractors. Over one-half of the contractors interviewed, however, said that carbon monoxide detection equipment works well and should be installed in every home. Other contractors had no opinion of carbon monoxide detectors.

Smoke Detection

Residential and commercial building codes require the installation of smoke detectors. Insulation contractors are supportive of their use but rely on builders and remodelers to sell and install them. Two of the insulation contractors interviewed routinely recommend and install smoke detectors.

Blower-Door Tests

Six of the eighteen insulation contractors interviewed—representing a sub-stantial portion of retrofit contractors—are actively providing blower-door


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services. These contractors appear to be genuinely excited about the new business the service has generated. All of these contractors said that the blower-door test was a good tool for finding air leaks. Contractors said that the blower door has helped them provide a more comprehensive service. Instead of just installing insulation they are also weather-stripping, caulking, and looking for air sealing opportunities. Contractors credit the local gas company for getting them involved with the blower door and training them on its proper use.

Other retrofit and new construction contractors are familiar with blower-door tests but do not offer the service. Some expressed no opinion of the service. Others, including many new construction contractors, said there is little need because new homes are already energy-efficient. Four of the eighteen contrac-tors interviewed said that blower-door tests were not necessary. These con-tractors said that common sense and simple advice by an experienced contractor was just as effective. One contractor went so far as to call blower-door tests a “sham.”


Many retrofit contractors in the Milwaukee area are actively promoting weatherization services. These contractors said that they either use blower-door tests or past experience to help them identify problem areas. While contractors said that many customers caulk and weather-strip themselves, they provide this service on a substantial number of jobs they complete.

Estimates of the percentage of jobs where weatherization services are provided range up to 75 percent. Most of the contractors interviewed are aware of other insulation contractors in the Milwaukee area who provide these services. Some appear to have gotten involved because they are concerned that it is providing other companies with a competitive advantage.

Most retrofit contractors in the Milwaukee area are providing at least limited structural repair and replacement services. Some contractors also install storm windows and new windows and doors as part of their weatherization services.

Most insulation contractors refer customers to qualified building and heating, ventilation and air conditioning contractors when they recognize problems they can not address. Others identify problem areas but refer customers to the Yellow Pages because they prefer not to recommend specific contractors.

New construction contractors and a few retrofit contractors said they do not routinely offer weatherization services. According to these contractors, most customers call them for the specific purpose of upgrading insulation levels. Others believe that customers are aware of the importance of weatherization and complete many projects themselves.


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With the exception of a few new construction contractors, all of the interviewed contractors work with either city, county, or state low-income agencies or utility low-income programs. Few contractors could give the name of the agency or programs that they were involved in.

Most contractors said that the services they offer low-income agencies do not differ substantially from the services they offer other residential customers. Most said that the biggest difference is that they almost always provide at least some weatherization services, such as weather-stripping, caulking, repairing and replacing windows and doors (including storms), and making minor structural repairs.

Financing

Only three of the insulation contractors interviewed offer financing to residential or small commercial customers. Most contractors do not get involved because they see it as the homeowner’s or small business owner’s responsibility. Many also do not believe that they have the financial strength to offer financing. Many say that customers already have adequate access to financing through banks and other finance companies.

Two contractors said they offer a six month payment plan. One contractor requires a 33 percent down payment followed by six equal monthly payments. The other contractor said they vary the payment period from three to six months based on customer needs. Both contractors said that few customers participate in their financing programs.

Training

Licensing

There are no state licensing requirements for insulation contractors or their employees. Most contractors said employees receive on-the-job training from an experienced installer. The typical employee works with an experienced installer for two months. Few contractors mentioned any formal training or certification programs. These contractors said they are not aware of any local technical school or formal training programs for people working in the insulation industry.


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Training Providers

The most frequently mentioned provider of training was the local gas company. Contractors usually mentioned Wisconsin Gas Company or Wisconsin Natural Gas. Many contractors said that the gas company has trained them on proper insulation levels, dense packing of insulation, proper insulation techniques, blower-door tests, and the need for adequate attic ventilation. Insulation manufacturers were also mentioned as providers of education materials and videos—although to a lesser degree than the local gas companies. Suppliers and home product shows were mentioned as other sources of training materials.


Most contractors do not see any specific training needs developing in the future. Most said they will continue to keep abreast of new products and changes in building codes through informal channels, including their suppliers and manufacturers. One contractor, when asked about future training needs, said “this business in not that complicated.”

The contractors who identified training needs tended to be contractors working with new insulation systems such as InsulSafe III and the Blow-In-Blanket System. A few contractors said they could use more information on controlling humidity and moisture within homes.


Most retrofit contractors are familiar with utility programs but could not provide specific program names. New construction contractors, while generally aware of utility programs, were more vague in their descriptions of the programs and generally less enthusiastic about their impact.

A verbatim listing of the programs mentioned by some contractors include the Smart Program, Wisconsin Natural Gas Residential Reinsulation, Wisconsin Electric Good Cents, Wisconsin Natural Gas Blower-Door and Insulation, Wisconsin Gas Rebates, Wisconsin Natural Gas Rebates, Wise Choice, Whole House Program, and Gas Company Wise Choice. Contractors also mentioned the City of Milwaukee Low-Income Program and programs sponsored by the State of Wisconsin. Many contractors simply said Wisconsin Gas Company, Wisconsin Natural Gas Company, Wisconsin Public Service, or the Gas Company.

Program Impacts

Just over one-half of the contractors interviewed said that local utility programs have had a positive impact on their business. At least half of these contractors said the impact was substantial. The primary impact has been an increase in


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sales and installations. For example, one contractor said that he has added five new employees because of the work various programs has generated. The proliferation of blower-door testing services was most frequently mentioned as a source of new business opportunities.

In addition to increasing their overall sales volume, almost one-half of the contractors said that utility programs have increased the average R-values they install, even though the majority of contractors said they rarely insulate above minimum code requirements. It appears that insulation contractors give local utilities more credit for local code requirements than the government agencies that set and enforce the code. In fact, when asked about R-values, many contractors said they install what utilities and codes require—almost using the term utility and building code interchangeably.

Many retrofit contractors and a few new construction contractors also credit their local gas utility with increasing their knowledge of proper attic ventilation methods, insulation installation techniques, proper air sealing, and the use of foam sealing products. A few others also said they have learned more about dense packing of insulation from the gas company. Some retrofit contractors credit the gas company with helping them to see new business opportunities, such as providing more comprehensive weatherization services (for example, caulking, weather-stripping, and replacing and repairing doors and windows). Others said they have learned how to perform gas appliance and gas furnace safety checks as part of their participation in utility programs.


Many contractors said that it is appropriate for gas and electric utilities to provide literature and continue to educate residential and small commercial customers on the benefits of energy efficiency. These contractors said that utility promotional campaigns have generally helped the industry, especially the retrofit market. Many contractors said that customers trust the advice they receive from the utility and that utilities give energy-efficient equipment and building products added credibility. They also said that gas and electric utilities should continue to administer and promote rebate programs and provide energy audits to interested residential and small commercial customers.

Contractors providing blower-door services feel that utility rebates are important to the continuation of the service. Contractors are concerned that customers may not be willing to pay for blower-door services in the absence of a utility subsidy. However, with a few exceptions, contractors providing blower-door services said they will continue to market the service in the absence of utility rebates.

Few contractors mentioned a concern with utility involvement in the insulation and weatherization industry. A few contractors said that the gas company should not recommend specific products and services and should “just sell gas.” A few


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others said they did not like the gas company providing training because it’s “not their job.”


At the end of the in-depth interviews, contractors were asked to read a number of statements related to general policies and practices their company uses when recommending or suggesting insulation and related services to customers. They were asked to rate each statement on a scale of one to six, where one means “strongly disagree” and six means “strongly agree.” The results of this exercise are illustrated in Table C-1.

The reader should review the following numbers with caution for two reasons. First, and most importantly, we believe that the qualitative interview results provide a more comprehensive assessment of current attitudes, opinions, and practices. This is because we were able to ask detailed follow-up questions for each area of interest. Second, the emphasis in our recruitment was to include insulation contractors of various sizes from a wide geographical area. As a result, the group of contractors we spoke to are not necessarily representative of all insulation contractors in the Milwaukee area.

The principal value in collecting the information presented in Table C-1 is that it will provide a quantitative baseline from which to track changes in individual contractor’s attitudes, opinions, and practices over time.


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Table C-1: Policy and practices ratings




2.72


4.44


3.78





3.06




3.67


3.56




3.33


D-1

Appendix D: Green Bay City-Region Report This section summarizes the results of eight in-depth interviews with insulation contractors in the Green Bay Area. This consists of contractors located in Brown County. The interviews were conducted on December 11, 1995 and December 12, 1995.



Four of the insulation contractors interviewed have three or fewer employees. The remaining four contractors have six, 15, 30, and 70 employees. Annual gross revenue among the eight contractors ranges from $50,000 to almost $6.7 million.

Interviewees have been working in the insulation business for an average of 18 years (median is 19 years) and their company has been operating for an average of almost 20 years (median is 19 years). Most of the contractors interviewed focus on the residential market, with the commercial market comprising less than 20 percent of gross revenue. Within the residential sector, contractors were approximately equally split between those who focus on the new construction market and those who focus on upgrades to existing homes. The contractors working in the new construction market are much larger than retrofit contractors.

Approximately one-half of the contractors interviewed limit their business to customers within a 50-60 mile radius around Green Bay. The other half, representing all of the large contractors and a few of the small ones, serve large parts of northeast Wisconsin. One contractor who specializes in spray-on polyurethane foam insulation travels throughout the state.


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Products

Collectively, the contractors interviewed insulate almost 3800 new homes and 700 new commercial buildings per year. They are also involved in just over 1800 projects that include upgrades to the insulation levels of existing homes and commercial buildings. The contractors interviewed have a variety of opinions regarding many insulation and weatherization products.

Ceiling Insulation

Most insulation contractors in the Green Bay area recommend and install ceiling insulation levels that meet, or just exceed, the minimum building efficiency code of R-38. Most appear to believe that insulation levels beyond R-40 have long paybacks and, as a consequence, are not a good investment for residential or small commercial customers. A few contractors mentioned that second-time home buyers and purchasers of high-end housing are more likely to ask for ceiling insulation levels between R-44 and R-50.

To insulate ceilings, new construction contractors use blown-in fiberglass insulation in new and existing homes and buildings. Retrofit contractors have a strong preference for blown-in cellulose insulation.

A few contractors spoke highly of a new product called InsulSafe III, produced by CertainTeed Corporation, and the Blow-In-Blanket System, a registered trademark of Quality Insulation, Inc. These are blown-in fiberglass insulation products appropriate for both attic and side-wall installation. The Blow-In-Blanket System® is unique in that it combines the same fiberglass materials builders have used for years with a unique mix of adhesive fibers (for example, a thin mist of latex binder). The adhesive fibers help to form-fit the insulation to the cavity and eliminates settling and shifting. These products have gained some acceptance for insulating residential and small commercial ceilings.

Wall Insulation

Fiberglass batt insulation is the dominant form of wall insulation used in the Green Bay area. Contractors prefer fiberglass because it is easy to install—keeping labor costs to a minimum in a very competitive industry. Few builders in the Green Bay area install their own wall insulation, because insulation contractors purchase in large quantities and can often install the product for less (or just slightly more) than builders can buy it for. Most retrofit contractors said they prefer to use blown-in cellulose when insulating the side walls of existing homes.

InsulSafe III and the Blow-In-Blanket System were other wall insulation products mentioned by some contractors. In new construction, the insulation is

A p p e n d i x D : G r e e n B a y

D-3

blown behind a nylon netting. Contractors promote the products by emphasizing increased R-values, reduced infiltration, and superior sound control.

The contractor specializing in spray-on polyurethane foam insulation sprays three inches of foam into 2X4 walls for an R-value of 23. On 2X6 walls, they spray on one inch of foam and then add a four inch fiberglass batt, for an R-value of 23.

Despite their apparent attractiveness, none of these three products (InsulSafe III, Blow-In-Blanket System, spray-on polyurethane foam) has gained widespread acceptance for wall insulation.

Super Insulation

The majority of contractors (all but one) are familiar with super insulation and four of the eight have installed it. However, most of these contractors said they install it on less than three percent of the projects they complete. All contractors agree that super insulation appeals to only the most energy-conscious people. They also agree that super insulation products and practices are expensive. Contractors said that super or “high-density” insulation increases a typical project’s cost by about 30 to 35 percent.


Green Bay area insulation contractors have positive opinions of expandable foam insulation. Six of the eight contractors interviewed said they regularly use it. These contractors said that the product has been improved and provides a superior air seal and better thermal protection.

Expandable foam insulation was estimated to increase the cost of a typical home insulation project by $45 to $100. The two contractors who do not use expandable foam insulation said it was too expensive.

Vapor Barriers

Insulation contractors install wall and ceiling vapor barriers as part of all new construction projects because of state energy codes. The majority of contractors in the Green Bay area are comfortable with these barriers and report that they are easy to install. Installation simply consists of stapling the polyethylene plastic to the wall studs and ceiling joists after the insulation is installed.

Setback Thermostats

Six of the eight contractors recommend setback thermostats to their customers but do not sell or install them. The two contractors who do not recommend them did not give a strong opinion either for or against their use.


D-4


Most insulation contractors are aware of a few projects that included basement floor insulation. Most said that this activity is up to the concrete contractor. One contractor, who specialized in spray-on polyurethane insulation, has insulated basements on “very big, very expensive homes.” In these instances, they spray the polyurethane insulation on the ground and then pour the concrete over it. Most contractors said that this practice was not worthwhile for most customers—citing long paybacks.

Practices

While most of the interviewed insulation contractors advertise on their trucks and through Yellow Pages display ads, their marketing techniques vary. All contractors spoke about the competitive new construction market and the ability of the very large contractors to buy in volume—realizing large quantity discounts.

New construction contractors said that competitive prices, relationships they have with builders, and timely service are the most important ways to maintain and expand their business. Large new construction contractors said that their sales representatives “cold call” builders in order to increase sales. A few commercial contractors also said they advertise in builder and architectural magazines.

In the retrofit market, contractors said that they obtain their business from a mix of advertising, word-of-mouth, and referrals. In addition to truck and Yellow Pages advertising, retrofit contractors mentioned direct mail campaigns, radio advertising, referrals from gas and electric utilities, and referrals from city, county, and state agencies.


According to insulation contractors, their reputation for quality, workmanship, and cost are the most important factors in residential and small commercial customer decision making.

New construction contractors rarely talk to the ultimate customer. These contractors simply install what builders specify—usually batt insulation for walls and blown-in insulation that just meets building codes in ceilings.

Insulation contractors report that builders’ decision making process for insu-lation is quite simple, with cost being the dominant factor. Large contractors buy in quantity, giving them a significant price advantage over smaller con-tractors. This price advantage is most advantageous in the new construction market where builders look for low-cost insulation sub-contractors.


D-5

Contractors working in the existing home market also report that customers are price sensitive. Most of these contractors market cellulose insulation for both walls and ceilings. Cellulose is preferred because it is “denser” and “more porous.” A few contractors are trying to differentiate themselves from others by using InsulSafe III or the Blow-In-Blanket System.

Contractors mentioned limited differences between small commercial and residential insulation techniques. Most said that they insulate to code in both sectors.

Insulation Options

Few insulation contractors present customers or building contractors with insulation options. Most insulation contractors prescribe insulation levels that just meet code and only give options to people who appear to be interested or have higher incomes.

All contractors said that they are careful to point out the need for proper ventilation when discussing insulation levels. A few contractors said they will not insulate a home that is poorly ventilated unless the homeowner agrees to have them bring it up to standard.


Roughly one-half of the insulation contractors give residential or small commercial customers energy savings estimates. These contractors said that most customers do not ask for savings estimates, but when they do ask they provide “general” estimates based on experience. One contractor said they give rough estimates based on a payback and cost savings formula provided by Wisconsin Public Service Corporation (WPS). Others said they refer interested customers to WPS.

Services

When asked about services they offer that address energy efficiency, safety, or comfort, many contractors said that, in addition to identifying insufficient insulation levels, they are highly aware of the need for proper attic and soffit ventilation. Contractors frequently spoke of the need to properly ventilate attics in order to reduce moisture build up and excessive attic heat.

Most contractors will also complete minor repairs such as replacing walls and sections of roofs that have been damaged by moisture or decay. One contractor said that he performed blower-door tests. Three contractors said they frequently caulk and weather-strip. Other services mentioned by a few contractors include radon testing, pipe insulation, duct sealing, sound proofing, and insulating


D-6

basement walls before back-filling. Occasionally, contractors will provide the names of heating, ventilation and air conditioning contractors or remodeling contractors if they identify a need that they are not qualified to address.

We asked insulation contractors about energy audits, carbon monoxide detec-tion, smoke detection, blower-door tests, and weatherization services. Many contractors do not see these services as something they should offer and did not express strong opinions about them. Contractor’s opinions and attitudes about a number of services are outlined below.

Energy Audits

While Green Bay area insulation contractors do not offer comprehensive energy auditing services, they do approve of them. Most contractors said that audits, if done by a competent auditor, are valuable in educating residential customers and convincing them to take energy conservation actions. One contractor said they perform audits but described them as a “walk-through” concentrating on building envelope improvements.

Some contractors said they do not offer audits because the power company offers them for free and few customers are interested in paying for them. One contractor said that WPS recently started charging $150 for an energy audit. Another said they do not offer audits because “the equipment is too expensive.”

Other than local gas and electric utilities, contractors are not aware of other businesses offering energy audits in the Green Bay area.


Insulation contractors in the Green Bay area do not provide carbon monoxide detection services or sell detection equipment. Most said that carbon monoxide detection equipment works well and should be installed in every home. One contractor said that the detectors were a “scam.”

Smoke Detection

Residential and commercial building codes require the installation of smoke detectors. Insulation contractors are supportive of their use but rely on builders and remodelers to sell and install them.

Blower-Door Tests

Insulation contractors in the Green Bay area have heard about or observed blower-door tests but only one interviewed contractor offers this service. A number of contractors said that WPS personnel provide this service. Most felt that blower-door service was valuable and that WPS does a good job—saying it’s a good tool for identifying problems. One contractor said that they are


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considering buying the equipment and offering the service. Another contractor said that they performed blower-door tests in the past but their equipment is out of date.

Contractors see little use for blower-door tests in the new construction market because of stringent building codes. Most expressed limited interest in getting involved in this type of service.


Most insulation contractors do not actively promote weatherization services although they will weather-strip and caulk on projects where they are either reinstalling or upgrading insulation. Most said that they identify problem areas visually. One said that he performs blower-door tests “about 15 percent of the time” to identify problem areas.

A few contractors typically limit weatherization to identifying areas lacking adequate insulation. According to these contractors, this is because most customers are aware of the importance of weatherization and complete many projects themselves.


Roughly one-half of the contractors participate in some type of low-income program. Few contractors could give the name of the agency or programs that they were involved in.

Contractors that participate in low-income programs said that the services they offer low-income agencies do not differ substantially from the services they offer other residential customers. Most said that the biggest difference is that they almost always provide at least some weatherization services, such as weather-stripping, caulking, repairing and replacing windows and doors (including storms), and making minor structural repairs.

Financing

One of the insulation contractors interviewed offers a one-year payment plan to residential and small commercial customers. Most do not get involved in financing because they see it as the homeowner’s or small business owner’s responsibility. Many also do not believe that they have the financial strength to offer financing.


D-8

Training

Licensing

There are no state licensing requirements for insulation contractors or their employees. With the exception of contractors offering the Blow-In-Blanket System, none of the contractors interviewed mentioned any formal training or certification program. These contractors said they are not aware of any local technical school or formal training programs for people working in the insulation industry. As a result, employee training occurs on the job.

Training Providers

Insulation manufacturers provide most of the information and education materials used by insulation contractors. Most of the contractors talked about training videos they receive from product manufacturers. Other training providers include WPS, suppliers, home product shows, and the Brown County Builders Association. Most of the contractors said they train their staff on the job for six to twelve months before allowing them to work on their own.


Most contractors do not see any specific training needs developing in the future. Most said they will continue to keep abreast of new products and changes in building codes through informal channels, including their suppliers and manufacturers.

A few contractors said that training on new insulation systems such as spray-on polyurethane foam insulation and the Blow-In-Blanket System may be needed in the future. However, contractors said that product manufacturers will provide this training. One contractor said that more training was needed on how to properly install vapor barriers.


Most retrofit contractors are familiar with utility programs but could not provide specific program names. New construction contractors, while generally aware of utility programs, were more vague in their descriptions of the programs and generally less enthusiastic about their impact. A verbatim listing of the programs mentioned by some contractors include Wisconsin Electric Smart Money, WPS Wise Buy, WPS Landlords Only, WPS Energy Conservation, WPS Energy Update, and Energy Saver.


D-9

Program Impacts

Contractors agree that utility programs have increased the number of residential and small commercial insulation projects they complete—increasing both employment and profitability. Many of these contractors said utilities are responsible for upgrading the insulation levels of many homes, businesses, and multifamily housing units that would not have been insulated otherwise.

Seven of the eight contractors interviewed said that utility programs have had a positive impact on the average R-value of installed insulation, even though the majority of contractors said they rarely insulate above minimum code requirements. It appears that insulation contractors give WPS and local utilities more credit for local code requirements than the government agencies that set and enforce the code. In fact, when asked about R-values, many contractors said they install what utilities and codes require—almost using the term utility and building code interchangeably.

Contractors also credit WPS and other local utilities with increasing customer awareness of the importance of energy-efficiency and proper insulation levels.

When asked about utility influences, many contractors talk about WPS seminars and other information they receive from WPS. However, it is difficult for most contractors to sort out the influence of information and training they have received from various sources. Many refer to utilities, distributors, and manufacturers when discussing new products and practices. Contractors often credit all of these information providers for improvements they have made in ventilation techniques, vapor barrier installation, high-density insulation, caulking, and weather-stripping.


Many contractors said that it is appropriate for gas and electric utilities to provide literature and continue to educate residential and small commercial customers on the benefits of energy efficiency. Many contractors said that customers trust the advice they receive from the utility and that utilities give energy-efficient equipment and building techniques added credibility.

All but one of the contractors interviewed said that it was important to continue providing rebates. One of these contractors said the rebates should be kept modest so that “national conglomerates” don’t come into the market and “cream skim” for the best projects. This contractor says that WPS and others should continue to work with local contractors to help them build a stronger local industry.

Another contractor said that WPS should work more closely with local contractors instead of working directly with customers. The contractor


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hypothesized that this would lead to a more consistent and unified presentation of the facts regarding insulation and home weatherization.


At the end of the in-depth interviews, contractors were asked to read a number of statements related to general policies and practices their company uses when recommending or suggesting insulation and related services to customers. They were asked to rate each statement on a scale of one to six, where one means “strongly disagree” and six means “strongly agree.” The results of this exercise are illustrated in Table D-1.

The reader should review the following numbers with caution for two reasons. First, and most importantly, we believe that the qualitative interview results provide a more comprehensive assessment of current attitudes, opinions, and practices. This is because we were able to ask detailed follow-up questions for each area of interest. Second, the emphasis in our recruitment was to include insulation contractors of various sizes from a wide geographical area. As a result, the group of contractors we spoke to are not necessarily representative of all insulation contractors in the Green Bay area.

The principal value in collecting the information presented in Table D-1 is that it will provide a quantitative baseline from which to track changes in individual contractor’s attitudes, opinions, and practices over time.


D-11

Table D-1: Policy and practices ratings




1.50


5.38


2.00





2.38




2.14


3.25




3.63


E-1

Appendix E: Eau Claire / La Crosse City-Region Report

This section summarizes the results of 10 in-depth interviews with insulation contractors in the Eau Claire and La Crosse Area. This consists primarily of contractors located in La Crosse, Eau Claire, or Chippewa County. Other communities in West Central Wisconsin such as Hudson, Sparta, Menomonie, and Ashland were also included. The interviews were conducted between October 10, 1995 and November 29, 1995.



Six of the insulation contractors interviewed have four or fewer employees. The remaining four contractors have between seven and 13 employees. Annual gross revenue among these contractors ranges from $50,000 to almost $2 million.

Interviewees have been working in the insulation business for an average of 18 years (median is 19 years) and their company has been operating for an average of almost 16 years (median is 17 years). Most of the contractors interviewed focus on the residential market, with the commercial market comprising less than 20 percent of gross revenue. Within the residential sector, contractors were approximately equally split between those who focus on the new construction market and those who focus on upgrades to existing homes. The contractors working in the new construction market tend to be the larger contractors.

Approximately one-half of the contractors interviewed limit their business to customers within a 50 mile radius of their location. The other half, representing all of the large contractors and a few of the small ones, serve large parts of northern and central Wisconsin. A few of these contractors also do a substantial amount of work in eastern Minnesota.


E-2

Products

Collectively, the contractors interviewed insulate approximately 4000 new homes and 500 new commercial buildings per year. They are also involved in just over 600 projects that include upgrades to the insulation levels of existing homes and commercial buildings. The contractors interviewed have a variety of opinions regarding many insulation and weatherization products.

Ceiling Insulation

Most insulation contractors in the Eau Claire and La Crosse area recommend and install ceiling insulation levels that meet, or just exceed, the minimum building efficiency code of R-38. Most appear to believe that insulation levels beyond R-40 have long paybacks and, as a consequence, are not a good investment for residential or small commercial customers. A few contractors mentioned that second-time home buyers and purchasers of high-end housing are more likely to ask for ceiling insulation levels between R-44 and R-50.

To insulate ceilings, most contractors use blown-in fiberglass insulation in new and existing homes and buildings. Only a few contractors indicated a preference for blown-in cellulose or rock wool insulation.

A few contractors spoke highly of a new product called InsulSafe III, produced by CertainTeed Corporation, and the Blow-In-Blanket System, a registered trademark of Quality Insulation, Inc. Both are blown-in fiberglass insulation products appropriate for both attic and side-wall installation. The Blow-In-Blanket System is unique in that it combines the same fiberglass materials builders have used for years with a unique mix of adhesive fibers (for example, a thin mist of latex binder). The adhesive fibers help to form-fit the insulation to the cavity and also eliminates settling and shifting. These products have gained some acceptance for insulating residential and small commercial ceilings.

Wall Insulation

Fiberglass batt insulation is the dominant form of wall insulation used in the Eau Claire and La Crosse area. Contractors prefer fiberglass because it is easy to install—keeping labor costs to a minimum in a very competitive industry. Insulation contractors said that many building and remodeling contractors in the Eau Claire and La Crosse area insulate walls themselves—hiring insulation contractors to blow in the ceiling insulation.

InsulSafe III and the Blow-In-Blanket System were other wall insulation products mentioned by some contractors. In new construction, the Blow-In-Blanket System is blown behind a nylon netting. Contractors promote the products by emphasizing increased R-values, reduced infiltration, and superior sound control. Despite their apparent attractiveness, neither product has gained widespread acceptance.

A p p e n d i x E : E a u C l a i r e / L a C r o s s e

E-3

Super Insulation

Many contractors said that super insulation products don’t really exist. Rather, super insulation is achieved through such techniques as envelope homes, double 2X4 walls, and increased amounts of ceiling insulation (for example, R-50 or higher). Contractors reported that people are not interested in “super insulation” these days because the energy crunch is over and people are less interested in energy conservation. A few contractors said they were concerned with insulating a home too well because it might lead to “moisture problems” because the home is “too tight.”


Contractors were divided in both their use and opinion of expandable foam insulation. Some contractors said that they do not use expandable foam insu-lation because of past problems with the foam expanding to the point that it damaged doors and windows. Some do not insulate around windows and doors, saying that builders take care of this aspect of home insulation.

Other contractors said they routinely use expandable foam insulation around windows and doors because it is a superior insulation product for these appli-cations. These contractors said that expandable foam insulation products have improved (that is, they expand less than they used to).

Vapor Barriers

Insulation contractors install wall and ceiling vapor barriers as part of all new construction projects, as dictated by state energy codes. While the majority of contractors are comfortable with these barriers, they are highly aware of the need for proper ventilation. Ventilation methods include bathroom and kitchen fans and introduction of outside air into the home. Insulation contractors are concerned about the “tightness” of the home. A few contractors said that vapor barriers create moisture problems and that they should not be mandated by building codes.

Setback Thermostats

Few insulation contractors get involved with the installation of programmable or setback thermostats and, as a result, few offered any opinion of them. Most said that the promotion and installation of setback thermostats was a heating, ventilation and air conditioning contractor’s job.


Most insulation contractors are not aware of any projects that included basement floor insulation. Most said that this activity would be up to the concrete contractor. One contractor said that insulating basement floors was a more


E-4

prevalent practice in Minnesota. However, most of the other contractors said that this practice was not worthwhile—citing long paybacks.

Practices

All of the contractors interviewed said that word-of-mouth and referrals from satisfied customers are their primary methods of building a customer base. Large contractors, who have high sales volumes in the new construction market, said that long-term relationships with building and remodeling contractors are very important. Many said they simply “do not need to advertise” because area builders and remodelers are familiar with their company and their reputation.

The few contractors that do advertise most frequently mentioned the Yellow Pages and truck advertising. None of the contractors mentioned newspaper, radio, or television advertising. One contractor said his Yellow Pages ad emphasizes the fact that he is a remodeling and insulation contractor with problem solving abilities. Others mentioned “energy audits” in their advertising, although this service was mainly geared toward insulation.


According to insulation contractors, their reputation for quality and work-manship and cost are the most important factors in residential and small commercial customer decision making. Many contractors said that customers call them because of high heating bills—recognizing that higher insulation levels will help them reduce their bills.

Insulation contractors that do a substantial amount of new construction work said that they rarely talk to the ultimate customer. These contractors simply install what builders specify—usually batt insulation in walls and blown-in insulation that just meets building codes in ceilings.

Insulation contractors report that builders’ decision making process for insu-lation is quite simple, with cost being the dominant factor. Large contractors buy in quantity, giving them a significant price advantage over smaller con-tractors. This price advantage is most advantageous in the new construction market where builders look for low-cost insulation sub-contractors. Retrofit contractors said they intentionally avoid the new construction market because prices are so low.

Contractors working in the existing home market also report that customers are price sensitive. Most contractors market “standard” fiberglass batt insulation for walls and blown-in fiberglass insulation for ceilings. A few contractors are trying to differentiate themselves from others through the use of InsulSafe III or


E-5

the Blow-In-Blanket System. A few others promote cellulose insulation because they believe it is a superior insulation product.

Contractors mentioned limited differences between small commercial and residential insulation techniques. Most said that they insulate to code in both sectors. A few contractors have started to work with spray-on polyurethane foam insulation products in the commercial sector. These products are typically applied to the outside of the cement blocks used to construct exterior walls. A few projects involve injecting foam insulation inside the blocks themselves.

Insulation Options

Few insulation contractors present customers or building contractors with insulation options. Most insulation contractors prescribe insulation levels that meet code and give options to people who appear to be interested or have higher incomes. Contractors say that people expect that they will get the appropriate amount of insulation. Well over one-half of the contractors said that they are careful to point out the need for proper ventilation when discussing insulation levels.


Roughly one-half of the insulation contractors do not give residential or small commercial customers energy savings estimates. These contractors said that giving accurate savings estimates is difficult and that most people do not ask. Others said they refer people to the “power company” if they want energy savings estimates.

Other contractors, while agreeing that most customers do not ask for energy savings estimates, provide general estimates based on their experience. Only one of the contractors interviewed has computer software that analyzes a home’s thermal integrity and provides savings estimates based on varying levels of insulation. Savings estimates include project costs and payback estimates. Contractors agree that most customers are comfortable with a “general discussion” of insulation materials and savings.

Services

When asked about services they offer that address energy efficiency, safety, or comfort, many contractors said that, in addition to identifying insufficient insulation levels, they often raise the importance of the need for proper attic and soffit ventilation. Contractors frequently spoke of the need to properly ventilate attics in order to reduce moisture build up and excessive attic heat.


E-6

Most contractors will also complete minor repairs such as replacing walls and sections of roof that have been damaged by moisture or decay. Occasionally, contractors will provide the names of heating, ventilation and air conditioning contractors or remodeling contractors if they identify a need they are not qualified to address.

We asked insulation contractors about energy audits, carbon monoxide detec-tion, smoke detection, blower-door tests, and weatherization services. With the exception of energy audits and weatherization services, many contractors do not see these services as something they should offer and did not express strong opinions about them. Contractors’ opinions and attitudes about a number of services are outlined below.

Energy Audits

Roughly one-half of the insulation contractors said they offer energy audits. When asked to explain the audit process, most described a “walk-through” audit concentrating on insulation levels and opportunities to sell and install additional insulation. One contractor has audit software but does not offer a full audit that includes equipment and the building envelope.

Other contractors said they do not offer energy audits because the power company offers them for free and because few customers are interested in them. Most of these contractors said that the energy crunch of the early 1980’s is over and people are not as concerned as they once were.

Insulation contractors showed limited interest in getting involved in more comprehensive auditing services—citing a lack of customer interest. Few con-tractors are aware of other insulation contractors in the Eau Claire and La Crosse area who offer comprehensive audit services.


Insulation contractors unanimously believe that carbon monoxide detection services (including educating customers about the dangers of carbon monoxide) is the responsibility of heating, ventilation and air conditioning contractors. A few said that carbon monoxide is a bigger concern because homes today are “tighter.”

Smoke Detection

Residential and commercial building codes require the installation of smoke detectors. Insulation contractors are supportive of their use but rely on builders and remodelers to sell and install them.


E-7

Blower-Door Tests

Insulation contractors in Eau Claire and La Crosse have heard about or observed blower-door tests but do not offer this service. A number of contractors associated the tests with NSP’s Star Home Program, which required blower-door tests as part of the home certification process. Most said they do not believe that such a service would appeal to most homeowners. These contractors pointed to a reduced concern with energy conservation among many residential customers. A few contractors have performed blower-door tests in the past but said they no longer offer this service because of a lack of customer interest.

Additionally, contractors said that a number of customers express concern with allowing a house “to breath.” Several contractors said that blower-door tests will lead to the installation of caulking and weather-stripping that may make a home too tight.

New construction contractors see blower-door tests as a waste of time because building codes dictate an extremely efficient design. Most have little interest in getting involved in this type of service.


Most insulation contractors do not actively promote weatherization services. Although roughly one-half will weather-strip doors and windows on older homes, they do not do this routinely. Most contractors said that they typically limit their discussions to identifying areas lacking adequate insulation because most customers call them for the specific purpose of upgrading insulation levels. Others believe that customers in northern Wisconsin are aware of the importance of weatherization and complete many projects themselves. Most contractors said that they are capable of addressing broader weatherization issues but that the profit margin for this type of activity is low.


Roughly one-half of the contractors participate in some type of low-income program. Programs administered by the City of La Crosse and a low-income program sponsored by Northern States Power Company (NSP) were most frequently mentioned.

Most contractors said that the services they provide to the low-income agencies do not differ from services they offer other residential customers. Most contractors said that their involvement was limited to adding insulation to either side walls or ceilings; they do not install caulking or weather-stripping. The exception was NSP’s low-income program. Contractors working through this program said they weather-strip and caulk around doors and windows, wrap water heaters with insulation blankets, insulate sill boxes, and install low-flow shower-heads.


E-8

Financing

Only one of the insulation contractors interviewed offers financing to residential or small commercial customers. Most do not get involved in financing because they see it as the homeowner’s or small business owner’s responsibility. Many also do not believe that they have the financial strength to offer financing. Many say that customers already have adequate access to financing through banks and other finance companies. One contractor said that he offers “tail light financing”—joking that when the customer sees the tail lights on his truck (leaving after the project is completed) he expects a check in hand.

Training

Licensing

There are no state licensing requirements for insulation contractors or their employees. With the exception of contractors offering the Blow-In-Blanket System, none of the contractors interviewed mentioned any formal training or certification program. These contractors said they are not aware of any local technical school or formal training programs for people working in the insulation industry. As a result, employee training occurs on the job.

Training Providers

Insulation manufacturers provide most of the information and education materials used by insulation contractors. Other sources include suppliers and home product shows.


Most contractors do not see any specific training needs developing in the future. Most said they will continue to keep abreast of new products and changes in building codes through informal channels, including their suppliers and manufacturers.

The contractors who identified training needs tended to be contractors working with the new insulation systems such as InsulSafe III and the Blow-In-Blanket System. A few contractors said they could use more information on controlling humidity levels.


E-9


Most contractors are familiar with utility programs but could not mention the programs by name. Contractors most often mentioned NSP’s STAR Home Program and a NSP low-income program. The low-income program was reported to have a significant impact on the insulation levels of participating homes. Both programs were reported to have a moderate impact on some contractors annual gross revenue because the programs helped stimulate new business. A few contractors talked about an NSP energy audit program where the NSP representative gives the customer a list of insulation contractors.

Program Impacts

Many contractors said that gas and electric utility programs have had an impact on their business. Contractors agree that utility programs have increased the number of residential and small commercial insulation projects they complete. Contractors are approximately equally split when asked about utility impacts on overall R-values. Some contractors say that average R-values have gone up because of utility efforts while others say this is not the case.

Contractors also credit utilities with increasing customer awareness of the importance of energy-efficiency and proper levels of insulation. A few con-tractors said that NSP has helped educate contractors about the importance of controlling humidity levels. However, most do not believe that the programs have changed the way they install insulation or vapor barriers.


Many contractors said that it is appropriate for gas and electric utilities to provide literature and continue to educate residential and small commercial customers on the benefits of energy efficiency. Many contractors said that customers trust the advice they receive from the utility and that utilities give energy efficient equipment and building techniques added credibility. Many contractors said that gas and electric utilities should continue to administer and promote rebate programs and provide energy audits to interested residential and small commercial customers.


E-10


At the end of the in-depth interviews, contractors were asked to read a number of statements related to general policies and practices their company uses when recommending or suggesting insulation and related services to customers. They were asked to rate each statement on a scale of one to six, where one means “strongly disagree” and six means “strongly agree.” The results of this exercise are illustrated in Table E-1.

The reader should review the following numbers with caution for two reasons. First, and most importantly, we believe that the qualitative interview results provide a more comprehensive assessment of current attitudes, opinions, and practices. This is because we were able to ask detailed follow-up questions for each area of interest. Second, the emphasis in our recruitment was to include insulation contractors of various sizes from a wide geographical area. As a result, the group of contractors we spoke to are not representative of all insulation contractors in the Eau Claire and La Crosse area.

The principal value in collecting the information presented in Table E-1 is that it will provide a quantitative baseline from which to track changes in individual contractor’s attitudes, opinions, and practices over time.


E-11

Table E-1: Policy and practices ratings




2.00


4.00


2.50





2.75




1.63


4.25




3.13


F-1

Appendix F: In-Depth Interview Instrument

Tracking the Market for Energy-Efficiency Services Insulation Contractor Survey

Contact Name: Title: Business Name: Address: Interview Date:

Introduction

Thank you for agreeing to meet with me. The purpose of this interview is to help the Wisconsin Center for Demand-Side Research1 better understand the products, services, and practices of insulation contractors. As I mentioned on the phone, we are interested in talking with contractors from time to time in order to understand how products, services, and practices change over time.


1. I would like to begin by learning a little more about your business. Could you tell me about your main business activities? [PROBE: What lines of business? Are you an independent business/subsidiary? How are you organized?]

2. How many employees do you have? [Probe: Number of insulation installers/service people]

3. How many years has your company been in the insulation business?

Years in Insulation Business

4. How long have you been working in the insulation business?

Years Worked in Insulation Business

5. What geographical area(s) does your company serve? [PROBE: Where are the majority of your customers located? What is the typical travel time to a job site?]

1 Former name of the Energy Center of Wisconsin


F-2

Note: You may want to return to questions 6-11 later

6. What is your overall gross sales volume in a typical year?

Gross Sales Volume

7. What percent of your insulation work, measured by gross sales volume, is residential, what percent is small commercial, and what percent is large commercial and industrial? By small commercial I am referring to small commercial buildings that use construction materials and equipment similar to residential.

8. [Residential Contractors] How much of your residential insulation work is new construction? [PROBE: What about remodel jobs? Installations in existing homes?]

9. How many homes does your company insulate in a typical year?

New Construction

Remodel Jobs

Existing Homes

10. [Commercial Contractors] How much of your commercial insulation work is new construction? [PROBE: What about remodel jobs? Installations in existing businesses?]

11. How many small commercial buildings does your company insulate in a typical year?

New Construction

Remodel Jobs

Existing Homes

A p p e n d i x F : I n t e r v i e w I n s t r u m e n t

F-3

Residential Products, Services, Practices

INTERVIEWER READ: Next, I’d like to talk to you about your residential insulation work. After these questions, I’ll be asking you similar questions about your small commercial work.

12. Do you advertise your residential products and services? [PROBE: How do you advertise? Where do you advertise? What does your advertising emphasize? Do you market comprehensive/multiple products and services?]

[PROBE: Leads for new construction? Leads for improvements/upgrades?]

13. What factors are important in a residential customer’s insulation purchase decision? [PROBE: Brand? Energy-Efficiency? Warranty? Reputation? Safety? Comfort? Cost?]

14. Which factors are most important? [PROBE: How do you determine what type of insulation (fiberglass, cellulose, foam sheets, etc.) to use?]

15. What options do you typically discuss with a residential customer? [PROBE: Different brands? Different insulation levels/techniques? Packaged product/service offerings?]

16. How do you determine the amount and type of insulation that ultimately gets installed? [PROBE: Rule of thumb? Load calculation? Software?]

Existing Homes? [PROBE: Typical ceiling insulation R-Value]

New Construction? [PROBE: Typical ceiling insulation R-Value]

17. Do you provide residential customers with various options [PROBE: How often? How is the information presented? Is it important? Why do/don’t you provide this information?] [FILL IN BLANKS]

18. Do you provide savings estimates? [PROBE: How do you determine the savings? Rules of thumb? Look at past bills?]

19. Do you provide services to low-income customers through utility programs or through arrangements with weatherization agencies?

Yes No

20. [IF YES] Do these services differ from those you offer to residential customers in general?

[PROBE: Services offered? How do they differ? Opinion of arrangement?]


F-4

Small Commercial Products, Services, Practices

INTERVIEWER READ: I would also like to talk to you about your small commercial insulation work. If any of your commercial practices are similar to those you use on the residential side, please say so. By small commercial I am referring to small commercial buildings that use construction materials and equipment similar to residential.

21. Do you advertise the products and services you provide to small commercial customers? [PROBE: How do you advertise? Where do you advertise? What does you advertising emphasize? Do you market comprehensive/multiple products and services?]

[PROBE: Leads for new construction? Leads for improvements/upgrades?]

22. What factors are important in a small commercial customer’s insulation purchase decision? [PROBE: Brand? Energy-Efficiency? Warranty? Reputation? Safety? Comfort? Cost?]

23. Which factors are most important? [PROBE: How do you determine what type of insulation (fiberglass, cellulose, foam sheets, etc.) to use?]

24. What options do you typically discuss with small commercial customers? [PROBE: Different brands? Different insulation levels/techniques? Packaged product/service offerings?]

25. How do you determine the amount and type of insulation that ultimately gets installed? [PROBE: Rule of thumb? Load calculation? Software?]

Existing Buildings? [PROBE: Typical ceiling insulation R-Value]

New Construction? [PROBE: Typical ceiling insulation R-Value]

26. Do you provide small commercial customers with various options [PROBE: How often? How is the information presented? Is it important? Why do/don’t you provide this information?] [FILL IN BLANKS]

27. Do you provide savings estimates? [PROBE: How do you determine the savings? Rules of thumb? Look at past bills?]

28. Do you provide services to low-income commercial customers through utility programs or through arrangements with weatherization agencies? [NOTE: small commercial includes multifamily housing]

Yes No

29. [IF YES] Do these services differ from those you offer to other commercial customers?

[PROBE: Services offered? How do they differ? Opinion of arrangement?]


F-5

Other Products, Services, Practices

INTERVIEWER READ: Now I would like to switch gears and talk about other products and services you might offer to either residential or small commercial customers.

30. Do you provide other services to improve the efficiency, comfort, or safety of a home or small business? [Describe and explain]

[PROBE:] Recommend or install setback thermostats?

[PROBE:] Recommend or install vapor barriers? Polyethylene or spray-on? How is it done? How complicated is it?

[PROBE:] Recommend or install super insulation? How often? What is the cost difference?

[PROBE:] Recommend or install expandable foam insulation between window/door jams and studs? What is the cost difference vs. using batt insulation?

[PROBE:] Recommend or install insulation under new basement floors? How often?

31. Do you see any of these services as valuable? [PROBE: Competitive advantage? Help retain customers? Increase profitability? Would be willing to pay more now for profit later? Cost difference compared to standard practices?]

32. I would like to ask you about a few other services I have heard of that some contractors offer residential and small commercial customers. I would like to know whether you offer any of these services, and your opinions of them. [PROBE: If offered, why did they start to offer it in the first place]

Energy audits? [PROBE: Whole building? Insulation levels only? HVAC system?]

Yes No

Opinion

Why offered


F-6

Carbon monoxide detection services? [PROBE: For furnaces? Household levels? Do you sell/install carbon monoxide detection equipment?]

Yes No

Opinion

Why offered

Blower door tests to check for air leaks? [PROBE: How is this done? Do you fix problem areas? Refer customer to other contractors?]

Yes No

Opinion

Why offered

Sell or install smoke detectors? [PROBE: Do you recommend where/how they should be installed? How many the customer should have?]

Yes No

Opinion

Why offered

Install other weatherization products such as caulking and weather-stripping? [PROBE: How are problem areas identified? How often is this done?]

Yes No

Opinion

Why offered

Provide minor or major repair services that enable you to install insulation. For example, fixing a roof or the siding on a house to enable you to install insulation? [PROBE: How often is this done?]

Yes No

Opinion

Why offered


F-7

Refer customers to contractors who perform any of the above services? [PROBE: How often is this done? Do you team up with other contractors?]

Yes No

Opinion

Why offered

33. Are you aware of other businesses who offer any of the services we have been talking about? [PROBE: Which businesses? What services? What do you think about these offerings?]

Financing

34. Do you offer financing? [PROBE: Why/Why not? What types? Is it through manufacturers, distributors, local banks/finance companies? What are the terms, rates, etc.?]

35. How important is financing from a competitive standpoint? [PROBE: Do competitors offer financing? Do customers frequently ask about it?]

Training

36. What training do people need before installing insulation in residential homes and small commercial buildings? Training for vapor barrier installation?

[PROBE: What classes? What schools or technical schools? Utilities? Does this training lead to certification or licensing?]

[PROBE: What other types of training do you offer your staff]

37. Are there any products or services that your company has started to offer over the past few years? [Probe: Have they required any additional training? What was the specific training need? What was the new product or service you decided to offer?]

38. What type of training needs do you foresee in the future?

39. Are there other ways you stay informed about products and services? [PROBE: Trade magazines? Trade shows/meetings? Local contractor associations?]


[INTERVIEWER READ: Next, I want to talk to you about electric and gas utilities in your service area.]


F-8

40. Have you or your customers participated in any gas or electric utility energy-efficiency programs over the past 5 to 10 years? [CIRCLE ONE NUMBER]

1 Yes ------------> Which ones? [FILL IN BLANKS]

2 No -------------> Why not? [FILL IN BLANKS]

(skip to question 44)

3 Don’t Know/Don’t Remember ---------> (Skip to question 44)

41. Did these programs have an impact on your business? [PROBE: In what way?]

[PROBE: R-Values of insulation sold?]

[PROBE: Type of products offered?]

[PROBE: Services offered?]

[PROBE: Any other impact?]

42. Did any changes you made because of a utility program last beyond the life of the program?

43. (If still involved with utility program) Do you think you will continue to offer these products and services after the program(s) end?

44. What role could utilities play in helping develop products and services? [PROBE: Ex. training, advertising, promotional literature, etc.]


F-9

Practices, Opinions, Attitudes INTERVIEWER READ: I have one additional exercise I would like you to complete. I would like to have you read a number of statements that have to do with the general policies and practices that your company tends to use when recommending or suggesting insulation and related services to your customers. Please indicate how well each statement on the list describes your practices by circling a number from one to six, where one means “strongly disagree” and six means “strongly agree.” You should disagree with an item if it is not true of your company.

Strongly disagree

Strongly agree


1 2 3 4 5 6

It is becoming increasingly important for us to be responsive to customer concerns about the environment (e.g., clean fuels, greenhouse impacts, CFCs).

1 2 3 4 5 6


1 2 3 4 5 6

We almost always recommend insulation levels that exceed state standards. 1 2 3 4 5 6

The services we offer are substantially the same as the services we offered 4 years ago. 1 2 3 4 5 6

We offer services that are not typical of other businesses in our industry. 1 2 3 4 5 6


1 2 3 4 5 6

We encourage customers to consider the long-term savings of the products and services we offer.

1 2 3 4 5 6

We view customer concerns about health and safety as an opportunity to offer new services.

1 2 3 4 5 6


1 2 3 4 5 6


1 2 3 4 5 6

We have made a substantial effort over the last four years to provide our customers with new services.

1 2 3 4 5 6

We provide information to customers about the environmental benefits of our products and services.

1 2 3 4 5 6


1 2 3 4 5 6

We try to persuade our customers to buy insulation with very high R-Values. 1 2 3 4 5 6

ENERGY CENTEROF WISCONSIN

595 Science Drive

Madison, WI 53711

Phone: 608.238.4601

Fax: 608.238.8733

Email: [email protected]

www.ecw.org

Printed on Plainfield Plus,

a recycled chlorine-free stock

containing 20% post-consumer waste.

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Life-Cycle Energy Costs and Greenhouse Gas Emissions for ... · Life-Cycle Energy Costs and Greenhouse Gas Emissions for Gas Turbine Power April, 2002 ... 595 Science Drive Madison,