Trade Publications Portfolio Fulmer

8/14/2019 Trade Publications Portfolio Fulmer

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WRITING EDITING DESIGN

www.eastmillstreet.com


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John Fulmer

WORK HISTORY

East Mill Street Studio, Belcamp, MarylandFreelance writing, editing and design. Specializing in trade magazines, business writing and production-oriented graphic

design with expertise in InDesign, Illustrator, Photoshop, FrameMaker and QuarkXPress. September 2005 to present.

Mountain Home, Wellsboro, PennsylvaniaManaging editor for regional magazine. As freelance contract employee, managed freelance staff, planned editorial content,

wrote everything from 5,000-word cover stories to 300-word blurbs, took photographs, and copyedited and laid out 48-page

book with InDesign, Illustrator and Photoshop. March 2007 to April 2008.

Electrical Contractor, Security + Life Safety Systems, Bethesda, MarylandEditor of trade magazines from July 2004 to September 2005. Supervised four-person staff, developed editorial calendar and

writers budget, and gave 20-plus freelancers assignments and story direction. Contributing writer from February 2003 to July

2004. Associate editor and Products editor from June 2002 to February 2003. Did layout with QuarkXPress and Photoshop.

The News & Advance, Lynchburg, VirginiaNewspaper copy editor from January 2000 to August 2001. Edited copy and designed pages with Quark and Photoshop.

The Sun Herald, Biloxi, MississippiEntertainment coordinator for daily newspaper from December 1997 to May 1999. General assignment reporter from March

1988 to July 1989. Freelance writer from 1995 to 1997.

University of Southern Mississippi, Hattiesburg, MississippiGraduate assistant and adjunct faculty member. Taught composition, technical writing, creative writing and literature. January

1994 to October 1998.

Georgetown ReviewEditor of nationally distributed literary magazine. Coordinated promotions, subscriptions and business operations, and did

layout with PageMaker. August 1996 to December 1997.

The Mississippi Press, Pascagoula, Mississippi

General assignment reporter for daily newspaper. May 1987 to March 1988.

EDUCATION

University of Southern Mississippi, Hattiesburg, Mississippi

Masters degree in English. Creative writing emphasis. Transatlantic Prize winner for ction.

Loyola University, New Orleans, Louisiana

Bachelor of Arts degree in Communications. English minor.

1220 Independence Square

Belcamp, Md. 21017

410.272.2352/814.512.1482 cell

814.975.1144 fax

[email protected]

CONTENTS

ustainable buildingED (The Electrical Distributor)

ortable generator reviewsonsumers Digest

oodrow Wilson Bridge project proleectrical Contractor

05 Construction Forecastectrical Contractor

04 Prole of the Electrical Contractorectrical Contractor

EED feature

onstruction Expo

onstruction FinancingUILDERnews

rade show previewSI (Roofng, Siding & Insulation)

nergy-efcient lightingED (The Electrical Distributor)

SIS security conferencecurity + Life Safety Systems

page 3

page 4

page 6

page 9

page 15

page 25

page 26

page 28

page 29

page 30

Bruce Fowle,FAIA,LEEDSENIORPRINCIPAL,FXFOWLE ARCHITECTS

OnGreenEnriching theHumanExperience

SPECIAL SHOW EDITION

MAY 2007

constructionmonthly.com

7Smart StrategiestoCutCosts

HowtoAvoid theLow BidTrap

Howdo theyAffectYou?


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Sustainable buildingalso known as

green buildingis a constructionprocess that focuses on energy-

efficient design, products, and

applications. Integrated building systems,

a frequently used term in sustainable

building, typically describes HVAC, elec-

trical, lighting, security, and other systems

that work together to minimize energy use.

For instance, a software-based lighting

control system can automatically cut off

fixtures when it senses they arent re-

quired, or dim electrical light in individual

rooms as sunlight levels rise.

Of course, the major problem with

sustainable building is that sophisticated

lighting control systems arent cheap

and contractors and designers have to

convince owners theyll be blessed with

long-term energy savings while being

cursed with expensive initial product

costs.

Another issue is that as energy costs

increase, so does the momentum for

green buildingand there soon may be

little choice but to go sustainable, es-

pecially in public sector construction.This can be problematic, because while

the average American consumer buying

a household appliance is aware of the

Environmental Protection Agencys Ener-

gy Star rating system, contractors, dis-

tributors, and manufacturers are some-

what uniformed about the sustainable

movement.

Dick Schmid, vice president of mar-

keting at Crescent Electric Supply in East

Dubuque, Ill., said that while he wasnt

fully versed on the topic of sustainable

building, he was aware that contractors

were talking about it.

I do know they are being pushed from

the architectural level on the plans and

drawings and in the specifications,

Schmid said. Distributors need to under-

stand that to have an efficient and effec-

tive supply chain we have to be on the

same page.

Many times the contractors seethings before we do, and weve just got

to be prepared, he continued. Other-

wise, were going to be in a reaction

mode. Im concerned because I dont

think were paying enough attention. For

us to do our jobs with our channel part-

nerson both sides, the manufacturers

and the contractorswe have to be pro-

active and, if noth-

ing else, a liaison

for the information.

Sustainable

initiatives

California, a front-

runner in environ-

mental issues, re-

cently revised its

Title 24 energy codes (which went into

effect Oct. 1). Title 24 is a comprehensive

building code that includes provisions for

energy-saving electrical products and

applications. Title 24 dispels the notion

that all high-efficiency electrical applica-

tions need to be expensive, as the stan-dards allow a mix of low- and high-

efficacy products to meet targets. (The

standards can be downloaded from the

California Energy Commissions Web site

at www.energy.ca.gov/title24/index.html.)

Other states have similar codes. On

Sept. 22, the Massachusetts House of

Representatives passed a bill that man-

dates energy-efficiency standards on a

wide array of electrical products. In ad-

dition, the Energy Policy Act signed into

law this year by Congress has numerous

energy-efficiency provisions, and certifica-

tion in the U.S. Green Building Councils

(GBC) Leadership in Energy and Environ-

mental Design (LEED) program is increas-

ingly seen as an important resume builder

for architects, engineers, and designers.

LEED looks like the future

of construction

LEED sets guidelines for building perfor-mance and the construction partners

ability to meet sustainability goals. The

program promotes new methods for sus-

tainable site development, water and

material use, and energy efficiency.

LEED offers project certification, profes-

sional accreditation, training, and practi-

cal resources. (Theres much more to

LEED; learn more

about it at www.

usgbc.org.)

LEED is a volun-

tary federal pro-

gram, but as indi-

vidual states con-

tinue to set energy

codes, there will be

an outcry for na-

tional standards in energy-efficient de-

sign and products. The National Elec-

trical Manufacturers Association (NEMA)

has already protested the Massachusetts

legislation, calling it part of a patch-

work quilt of state laws and saying

its authors failed to include input frommanufacturers.

The Massachusetts bill, as it now

stands, would create barriers to interstate

commerce and no doubt create conflict

between Massachusetts standards and

those of other states, not to mention fed-

eral standards," said NEMA President

Evan Gaddis in a press release.

But Gary Flamm, lighting program lead

for the California Energy Commission,

Building a better future

BY JOHN FULMER

UPFRONT

18 T H E E L E C T R I C A L D I S T R I B U T O R D E C E M B E R 2 0 0 5 w w w . t e d m a g . c o m

Sustainable building is changing the future of business.

Continued on page 20

Buildings that meet the highest

environmental standards are economical

to run and do not compromise the

health of the environment, the builders,

or the buildings occupants.


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CONTACT US:

814.512.1482/814.975.1144 fax

[email protected]


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40 ELECTRICAL CONTRACTOR JAN.05 www.ecmag.com

FOCUS

By John Fulmer

A group of these gurus assembled at the Reed Con-

struction Datas North American Construction Forecast

conference and the McGraw-Hill Outlook 2005 Executive

Conference in Washington, D.C., last fall. At Reed, the

consensus was the current economic downturn is tempo-

rary, but the experts there were cautiously optimistic. They

felt a recovery would begin this year and gain momentum

through 2007 in the face of higher interest rates and slow

job growth. Several industry sectors, such as industrial

with 14 percent growth and public works with 2 percent,

will have a good two-year run.

With the Federal Reserve expected to raise the federal

fund rates above 3 percent in the last half of 2005 and

worries over oil and building-supply prices, the McGraw-

Hill group thinks the economys expansion will idle downto 3.5 percent, down one-half percent from 2004. They

also spotted some general trends: Moderate job growth will fuel demand for offices and

multifamily housing, though residential building may scale

back from 2004s record pace because of higher interest

rates Looser lending standards will offset higher interest rates

and free up construction funding An improved economy will ease the states fiscal woes

and pump up the institutional building sector Bridge and highway construction will rise while electric

utilities will decline 8 percent. In the latter area, a lossin plant construction will be partly balanced by transmis-

sion-line work

The big picture

So how does this translate into cold, hard cash? Robert

Murray, vice president of economic affairs at McGraw-Hill,

said the contract value of total U.S. construction should

reach $585.5 billion in 2005, a 2 percent jump over last

years figure, but a rather disappointing number considering

construction spending rose 9 percent between 2003 and

2004. (See chart on page 41.)

Murray noted this all hinges on single-family housing

and said that sector should drop 3 percent in 2005 after

achieving double-digit dollar growth the previous three

years. McGraw-Hills estimate reflects construction starts

and varies significantly from Reeds figure for 2005s es-

timated U.S. total construction spending (or put-in-place

construction), which tops the trillion mark, a 4 percent

jump from 2004. But, again, the growth rate weakened

when compared to 2004s estimated 7 percent increase.

Reed also includes renovation construction, which isnt

listed in McGraw-Hills estimate. Heres the breakdown

from Reed: $384 billion in new residential spending; down 4 per-

cent from 2004 $138 billion in residential improvements; up 7 per-

cent $317 billion in nonresidential; a 13 percent hike $181 billion in nonbuilding a 7 percent jump

In general, the economy may decelerate significantly

in 2005 according to Merrill Lynch chief North Ameri-

can economist David Rosenberg. He sees a growth rate

of just 2.5 percent in the first quarter of next year. And

according to Peter Morici, a University of Maryland busi-

ness professor: Gross domestic product, the value of all goods and ser-

vices produced, will grow at a 3.5 percent annual rate,

down 3/10 to percent from 2004

The economy will create 144,000 jobs per month andthe unemployment rate will fall only modestly Inflation, influenced by international commodity mar-

kets, will register at 2.4 percent in 2005, down 1 percent

from 2004.

However, Morici projects the consumer price index will

settle down as gas prices continue to fall.

That pulls a lot of prices with it, he said.

Single- and multifamily housing

David Seiders, the National Association of Home Build-

ers chief economist, also called housing volume a key to

the economy and thinks, as Murray does, housing starts

Last years ELECTRICAL CONTRACTORs Construction Forecast

went halfway out on a limb to prognosticate that 2005

may be a big year all around. Its easyand wiseto be

tentative in predicting this years economy, and some in-

dustry gurus have done just that, sticking with maybe.

Construction


10/32

41 www.ecmag .com JAN.05 ELECTRICAL CONTRACTOR

will recede. Still, single-family starts will

remain positivethough unable to match

the phenomenal growth of the past two

yearsand multifamily will keep a steady

pace. The national homeownership rate

will continue to growalbeit more slowly

than in the recent pastand will hit a re-

markable 70 percent by the decades end,

Seiders said.

New and existing home prices, accord-

ing McGraw-Hills Murray, should increase

by 11 percent, and he envisions burgeoning

specialty markets for single-family housing,

including home theater, Internet alcoves

and separate male/female offices. Reed

forecasters expect mortgage rates to climb

a bit from a 5.94 percent annual average

in 2004 for 30-year fixed rates to 6.43 per-

cent in 2005.

In raw numbers, 1,425,000 new single-

family starts are expected this year, accord-ing to McGraw-Hill, down from 1,530,000

in 2004, which translates into a 7 percent

loss. Multifamily will have 445,000 starts,

a 2 percent gain from 2004s estimate of

435,000. The contract value of single-

family will drop to $267.6 billion, a 3

percent loss from 2004s total of $276.6

billion, while the 2005 multifamily num-

ber is $48.8 billion, a 7 percent gain over

2004s $45.4 billion figure. (See charts

page 42.)

McGraw-Hill expects the Midwest to beup 1 percent in single-family starts, the

only region with an increase. The South At-

lantic and West will be big losers at minus

5 percent. The Northeast at minus 7 per-

cent is the only region facing a decline in

multifamily starts, while the Midwest and

West should see double-digit expansion. In

fact, western states can expect a whopping

19 percent growth rate spurred by building

in cities such as Las Vegas.

The metro markets will be amazing,

said Murray.

2005Forecast

0 50 100 150 200 250 300

BILLIONS OF DOLLARS

350 400 450 500 550 600

2001 186.9 103.1 83.690.8

8.1 24.1

2002 214.2 94.0 87.990.0

5.4 12.0

2003 242.3 99.5 82.889.9

6.5 8.9

2004 276.6 110.0 85.991.2

7.0 6.0

2005 267.6 119.7 87.497.4

8.0 5.5


11/32


Haughey wrote. In the leasing market, va-

cancy rates for leased buildings, while still

high, are declining. Overall rents are now

stable or slightly rising. This increase in

cash flow for building owners is prompting

more construction.

He outlined some other signs for nonresi-

dential expansion: Hotels reacting to rising room and oc-

cupancy rates Retailers adding space after a 7 percent

annual-sales jump Office expansion due to higher employ-

ment levels

Retail, industrial and real estate

At Reed, Glenn Mueller, Johns Hopkins

University professor and Legg Mason Inc.

real investment strategist, noted a physi-

cal real estate cycle reflects supply and

demand for space and drives occupancy

and vacancy. That sets rents and stimu-

lates construction. In the financial cycle,

changes in real estate capital affect build-

ings prices. In these cycles, sluggish expan-

sion is followed by precipitous decline.

We bottomed out in 1990, then peaked

in 2000. But it only took three years to go

back to the bottom. Well now start climb-

ing back up. This is a typical cycle, he

said.

Rental growth, he said, is slow nearly

everywhere except Southern California

and Florida, but should start moving up by

2006. Mueller believes the nations indus-

trial sector will grow in 2005, and as thejob market improves, so will the multifamily

and real estate. His colleague at the confer-

ence, Edward J. Sullivan, the Portland Ce-

ment Associations (PCA) chief economist,

has even higher hopes. He sees industrial

climbing strong and steady, reaching $35

billion by 2008, up from 2004s level of

just over $10 billion. Its a height industrial

hasnt reached since 1998.

Its optimistic, Sullivan said. But I

dont know if many will agree with that.

The chart on this page, Industrial Con-

struction Outlook, shows this dramatic up-

swing, with separate projections for spring

and summer of 20032008. In an e-mail,

Sullivan explained: I make three forecasts

per year. The spring forecast refers to my

projections made in the spring and the

summer [forecast], my forecasts made in

the summer. The intent was to show what,

if any, changes I have made regarding my

outlook for each of the sectors.

Despite good vital signs, Mueller thinks

hotel occupancy wont pass the 65 percent

average until 2007. Retail is the stron-

gest, most recession-proof market, and low

interest rates and home refinancing have

given consumers a lot of spending cash.

The average retail occupancy86 per-

centwill begin to grow in 2005.

Warehouses and RFIDIn 2000, warehouse construction hit 304

million feet but dropped to 184 million in

2003, a stunning 40 percent loss. What

happened? In the 1990s, a strong retail

sector and Internet sellers looking for stor-

age space boosted construction. But the

fabled dot-com bust and lukewarm retail

activity put speculative warehouse projects

on hold indefinitely and slowed build-to-

suit projects.

But vacancy rates, which peaked at

11.7 percent in third-quarter 2003 and fellto 11.2 percent a year later, are turning

around. Successful retailers are planning

distribution centers, and McGraw-Hill says

this sector, after 5 percent growth in 2004

(193 million square feet) will leap 14 per-

cent in 2005 to 220 million.

With warehouse construction, the Mc-

Graw-Hill report noted the rapidly develop-

ing use of radio frequency identification

(RFID) tags in tracking inventory. As Thom-

as E. Glavinich wrote in ELECTRICAL CONTRACTOR

in April 2004: Wal-Mart is requiring itstop 100 suppliers to put RFID tags on their

pallets and cases by Jan. 1, 2005. Simi-

larly, the Department of Defense (DOD) is

requiring suppliers to put RFID tags on its

shipments by 2005.

For electrical contractors, RFID technol-

ogy could mean limited opportunity in Cat

5 hard-wiring for stationary scanning sys-

tems and unlimited opportunities in wire-

less network installations. But the technol-

ogy is evolving and its potential is as yet

untapped.

2004 2005

Millions of starts

2.0

1.8

1.6

1.4

1.21.0

0.8

0.6

0.4

0.2

0.0


12/32


To what extent the use of RFIDs will af-

fect warehouse demand is uncertain, the

report stated, but at the least it will increase

our need for new warehouse designs to be

able to accommodate new technology.

The institutional sector

Normally a steady performer, institutional

building has stumbled since 2002 and re-

corded its third straight decline in 2004

with minus 4 percent. McGraw-Hill blames

state and local governments poor health

and their taxing structure, which is, in turn,

tied to the economy. The states fiscal for-

tunes are irregular, but, in general, condi-

tions are improving, the bad times having

peaked. The report said: This should set

the stage for an improved performance by

institutional building in 2005, and the

broader forces affecting the pattern of in-

stitutional building are generally positive.

These forces are the following:

Rising student enrollments A growing elderly population

The population shift to the Sunbelt A large number of bond issues passed

recently The residential sectors strength in

20012004 will introduce need for insti-

tutional facilities

In short, the report stated institutional

will have a 3 percent gain to 518 million

square feet with slight improvement in

schools, healthcare facilities and trans-

portation terminals. Public buildings, such

as courthouses and churches, will suffer a

decline.

Building in education

In response to escalating student enroll-

ments and heavy state and local funding,

education construction hit a peak with

273 million square feet in 2001. But in

two years, it slid 12 percent to 241 million

square feet with the biggest losers being

Midwestern and Northeastern states. Cali-

fornia was the exception to the trend, rack-

ing up an increase of 3.2 million square

feet in 20012003.

In 2004, the pattern continued. Uni-

versity-related construction fell 19 percent,

triggering an 11 percent drop in high school

construction, a 13 percent decline in el-

ementary schools and a 14 percent skid in

junior high school construction. Community

colleges had a slight increase, but museums,

libraries and labs were down. At the time

of the report, educational construction was

a facing a possible 10 percent across-the-

board drop to 217 million square feet, the

skimpiest total since 1998s 203 million.

McGraw-Hill predicts that though in re-

treat, this sector will bounce back. Growing

enrollments in 2005 will continue through

2013. The bulk of this activity will happen

in the West, with an 11 percent gain, and in

the South, with a 5 percent increase.

Healthcare and other institutional

Healthcare construction in 2003 took a step

backward, dropping 5 percent to 92 million

square feet, according to the McGraw-Hill

report, and dropped 1 percent in 2004 to

91 million. Though this sector has seen de-

clines recently, it has grown considerably

in the past seven years. In 1997 through

2003, new construction averaged 93 mil-

lion square feet, up 28 percent from 1990

1997s 73 million-square-feet average.

Several factors will help this area grow an

estimated 3 percent to finish 2005 with 94

million square feet in new construction: Medicare reform and corresponding big-

ger reimbursements

Hospitals are investing in new technology

and replacing older facilities in the face of

competition from specialty outpatient clin-

ics

Bigger demand for healthcare exists as

baby boomers grow older

The fiscal woes of governments have

squeezed financing of prisons, police sta-

tions, courthouses, and post offices. Steady

at 44 million square feet in 20002001,

this building type took a cut to 35 million

in 2003 but was expected to rebound 10

The China, oil, green axisIF A THEME DEVELOPED at McGraw-

Hill and Reed, it was a concern over

fuel prices, Chinas emergence as

an economic giant, and the impor-

tance of green building, which

was especially apparent by frequent

mention of the Leadership in Energy

and Environmental Design (LEED) ac-

creditation. A voluntary, consensus-based national standard for develop-

ing high-performance, sustainable

buildings, LEED seemed to be on

everyones mind. During a McGraw-

Hill panel discussion with three of

the countrys leading architects,

Carl Roehling, president and CEO

of SmithGroup, said many younger

architects see a LEED accreditation

as an essential resume-builder and

half of our clients ask for a LEED

building. (For more visit www.us-

gbc.org/leed/leed_main.asp)

At the time of the conferences,

oil prices were hovering at $55 a

barrel, yet Jim Haughey, in Reed

Construction Forecast Monthly,

said high energy prices, reduced

consumer confidence and lower

capital spending were mere bumps

in the road to continued economic

development. Job losses such asthose that occurred in previous oil

crises should not be a factor, his

report said.

As oil price-shocks go, this one is

minimal. Prices are higher but sup-

plies are readily available without

waiting or searching. Gasoline prices

would have to rise more than 60

centsto above $2.50 per U.S.

gallonto match the impact on the

economy of the 1991 oil shock. This

is very unlikely to happen, Haughey

reported.

China and commodities

Though Chinas commodity gobbling

caused building-material shortages

here, Haughey asaid Chinas oil

thirst was slaking and an absence

of lineups at the gas station would

seem to indicate the price of oil is

headed down soon.

He supposed the price per bar-rel would drop $5 in the next few

months, which proved to be pre-

scient. On Dec. 10, 2004, the price

of light, sweet crude for January

delivery had fallen to $42.53.

Also in late 2004, the oil markets

continued volatilitythe tensions

and troubles in Iraq, Russia and

other production areashad Edward

J. Sullivans Portland Cement Asso-

ciation adjusting its 2004 gross do-

mestic product projection, dropping

it from 4.4 percent to 3.9 percent,

and lowering 2005s GDP estimate

from 3.8 percent to 3.4 percent.

The downward adjustment to the

current forecast primarily reflects

significantly higher oil price as-

sumptions, the PCA reported in a

revised forecast. PCA fully incor-

porates the likelihood of continued

oil supply disruptions in the context

of strong global demand conditions,

resulting in a downward rigidity in

current oil price levels. The higher

oil price scenario will weaken over-

all economic growth. With higher

oil prices, consumer spending will

be partially compromised, inflation

will run stronger, job gains will be

smaller, and sentiment in both the

consumer and business areas will

be more sedate. Combined, these

factors lead to roughly a 50 basis

point reduction in PCAs previous

forecast for real GDP growth.

FOCUS / CONSTRUCTION FORECAST 2005
http://www.usgbc.org/leed/leed_main.asphttp://www.usgbc.org/leed/leed_main.asphttp://www.usgbc.org/leed/leed_main.asphttp://www.usgbc.org/leed/leed_main.asp


13/32

45 www.ecmag .com JAN.05 ELECTRICAL CONTRACTOR

percent to 38 million square feet in 2004,

before dipping to 36 million in 2005. Other

points for these institutional areas: In 2002, religious building reached 52

million square feet, a high not seen since

the early 1960s. It dropped to 43 million

in 2004 Amusement-related buildingconven-

tion centers, sports arenas, theaterswas

at 94 million square feet during 19952000

but fell sharply in recent years, landing at

65 million in 2003. Its expected to make a

minor comeback to 73 million square feet

in 2005.

Manufacturing

For several long years in the recent past,

manufacturing was a wasteland, hitting the

skids at 67 million square feet in 2002.

There are reasons for the falla strong dol-

lar in the late 1990s that made U.S. exports

more expensive and manufacturers who

moved production overseasbut whatever

the case, this depressing decline has been a

sore point for many electrical contractors.

But remember the good old days? In

1997, this sector was at 191 million square

feet. A small part of that was regained in

2003 with a hike to 71 million square feet,

and 2004 saw another small increase to

73 million, spurred in part by auto plant

construction in Oklahoma, Texas and Mis-

sissippi; the $600-million conversion of

an Arizona Intel semiconductor plant; and

a $300-million expansion to a California

biotech manufacturer. These projects, and

others like them, will help manufacturing

reach 80 million square feet in 2005, a 10

percent jump, according to McGraw-Hill.

Public works, electric utilities

Moribund government spending affected

this sector, too, as public works money be-

gan drying up in 2003 after several years

of growth. But in 2004, prompted by the

need for water and sewer works, these proj-

ect types jumped 4 percent to reach $85.9

billion.

A 2004 bill by Congress set forth these

spending levels: Highways up 4 percent (from 2003 lev-

els) to $33.6 billion

Mass transit increased 1 percent to $7.3

billion

Airport grants didnt budge, remaining

at $3.4 billion

Army Corps of Engineers construction

funding cut 3 percent

EPA water infrastructure grants raised

3 percent

The EPA Superfund account received an

8 percent bump upward

But in 2005, President Bush set a 0.5

percent limit on discretionary funding and

things look tight, except for the Transpor-

tation Security Administrationhomeland

security was exempt from the limitwhich

received a 20 percent increase, including

$250 million slated for airport upgrades.

At the time of the report, 2005 levels were

not set by Congress, but they look similar

except for a 13 percent EPA cut and a 7

percent raise for the Corps.

Closing the books

Sullivan, who delivered the U.S. construc-

tion overview at Reed, noted many signs

of a brighter economy. After a 20012003

drought, investment spending has made a

strong return and will no doubt help replen-

ish funding for manufacturing construction

and other sectors that have fallen on hard

times. Job growth looks good. The fiscal cri-

sis in most states, he said, is fading. Still,

the signs portend only a modest recovery in

most sectors and slight declines in some

others. And oil prices are the most frighten-

ing bugbear, the biggest wild card for many

an economic pundit. Not a real boom year,

yet certainly not a bust. Just a time to be

cautiously optimistic. EC

FULMER is editor of ELECTRICAL

CONTRACTOR and SECURITY+LIFE SAFETY SYSTEMS.

He can be reached at 301.215.4516

[email protected].

Still China was a focal point.

Haughey said Chinas decision to

cool down its blistering-hot economy

caused cuts in worldwide orders in

every sector.

China accounted for more than 25

percent of world economic growth in

the last year, so the canceled orders

had a significant impact immedi-

ately, Haughey wrote.

Because China had been hoardinginventory of many commodities, the

countrys MayJuly (2004) orders

were probably below their consump-

tion and will have to rise later in the

summer Haughey added.

The Green Approach

The oil price spike, Chinas grow-

ing needs and green building are

related. Limited supplies of fossil

fuels and competition from nascent

economic giants such as China for

those supplies have forced U.S.

builders into innovative design prac-

tices. During a Reed industry panel

discussionand throughout the

conferenceit was common to hear

talk such as this, which comes from

the Greenway Group Inc., whose

chairman, James P. Cramer, was the

conference moderator:

Green and sustainable design

and development are shifting

gears into increasingly high

demand.

Intelligent and integrated build-

ings are becoming the norm.

Some dont have a clue about

[LEED] but its coming to this

industry.

In short, contractors will be forced

into using new and unfamiliar

design criteria if they wish to com-

pete, especially for government

contracts, a sector that will most

certainly employ the most stringent

green guidelines for sustainable

buildings.

0% 10% 20% 30% 40%

Most Significant Design Trends Over Next 5 Years

% of respondents

Smart growth/livable communities

Building security

Increased use oftechnology in design

Rehabilitation vs.new construction

Integrated internationalbuilding code

Other

Green architecture

Healthy buildings; mold

SOU

RCE:McGRAW-HILLCONSTRUCTION


14/32

CONTACT US:

814.512.1482/814.975.1144 fax

[email protected]


15/32

The 2004 Profile ofIn journalism,

its conventional

to tell readers the

who, what, where,

how and why of

a story, and thats

what weve done

in interpreting the

survey results

from the 2004

PROFILE OF THE

ELECTRICAL

CONTRACTOR.


16/32

23 www.ecmag .com JUL.04 ELECTRICAL CONTRACTOR

By John Fulmer

A COMPREHENSIVEPICTURE

THE BIA NNUAL PRO FILE, a feature of

this magazine for more than four decades,

aims for a comprehensive picture of con-

tracting from your perspective, providing an indi-

cation of where your business fits into the overall

industry, while giving us a guide to the news and

information that is important to you.

The survey garnered 865 respondents, an

increase of 152 from the last survey in 2002. Itwas the first time we employed the Internet, and

the majority of responses (505) came through

that source. Is that a coincidence? Probably not.

Our survey reveals most of you have discovered

the business benefits of computers. Since 2002,

a slightly higher percentage of respondents used

computers for word processing, Internet access

(including buying supplies online), accounting,

e-mail and other basic office functions. However,

technology as a construction tool has grown by

leaps and bounds:

Estimating-software use is up from 54 percent

to 70 percent Job-cost control and analysis use grew by 20

percent CAD use doubled from 20 to 40 percent.

Why? Because construction softwares ability

to streamline and consolidate project manage-

mentfrom estimating to change orderscan

give a competitive edge. And the construction-

software industry has responded to contractors

needs by improving existing programs, delvinginto new areas, and designing lite or graduated

versions of their products to fit contractors of

all sizes.

And heres a programming note: Weve des-

ignated small firms as those with up to nine

employees; mid-size with 10 to 19; large

with 20 to 99; and very large as those with

100 or more. Sixty-two percent of responses

came from small firms while 10 percent came

from mid-size, 15 percent from large and 11

percent from very large firms.

theELECTRICAL

ELECTRICAL CONTRACTOR has taken this mountain

of data and explained:

WHO YOU ARE(size and revenue of company,and its race and gender breakdown)

WHAT YOU DO(project type)

WHERE YOU DO IT(new construction, retrofitor maintenance)

HOW YOU DO YOUR WORK (working with specs,material purchasing and computer use)

WHY YOU CHOOSE THE WORK YOU DO

CON

TRAC

TOR


17/32

24 ELECTRICAL CONTRACTOR JUL.04 www.ecmag.com24 ELECTRICAL CONTRACTOR JUL.04 www.ecmag.com

2004 CONTRACTOR PROFILE

WHO ARE YOU?

SEVENTY-ONE PERCENT of firms

interviewed took in annual revenues

of $1 million or less and just 10 per-

cent made $10 million or more (See Figure

2). The majority of contractors have some

college education (8 percent who responded

had electrical engineering degrees) and their

firms are diverse in race and gender, though

in somewhat surprising ways. For instance,

while 42 percent of firms polled employ

women, they are woefully underrepresented

in traditional job categories such as jour-

neymen at 3 percent or apprentices at 4

percent. As you might expect, women make

up a sizable portion of clerical workers, but

the executive category, which includes

owners, has the next-highest percentage of

women employed at 13 percent. Its doubt-

ful all of them are owners and therefore

probable many are hired into marketing,

accounting and human resources.

This is the first time our survey takes race

and gender into account, so its hard to draw

big-picture conclusions about the work force

in those two areas, except that Caucasians

at 87 percentand males dominate. We can,

however, parse the data to find 37 percent of

firms have minorities in management or field

positions, and those with women (in execu-

tive or field positions) or minorities are usually

mid-size to very large contractors with $1 mil-

lion plus annual revenue. Also, firms hiring

minorities for management or field positions

often hire females for nonclerical jobs, sug-

gesting the firms are either more diverse or

these employees may be minority females.

Firms hiring minorities tend to be located

in the West and South with Northeast firms

lagging behind in minority personnel. Texas,

with its large Hispanic population, charts as

one the states with the most diverse electri-

cal-contracting work force.

An educated work force

Its pretty safe to compare education data

for 2004 with those from 2002; the fig-

ures havent changed appreciably. Two

years ago we reported 68 percent of survey

respondents had some college, 18 percent

had a BA degree and

14 percent an AA

degree. Our 2004

survey shows: 60 percent of you

have had some college 13 percent earned

an AA degree 15 percent a BA

degree.

As noted earlier,

8 percent of contrac-

tors had an engineer-

ing degree, a figure

that doubled since

2002 and which may point to a growing

trend in integrating power distribution and

low-voltage projects and the continued high

popularity of design-build. (But more about

that later, when we talk about what you do.)

In general, firm size has little to do with

higher education; the figures are more or

less evenly distributed. The biggest gap is in

BA degrees and occurs between very large

firms where 24 percent of employees had a

bachelor degree and small firms where 13

percent of employees earned one.

To get a more personal perspective, we

asked about hobbies, also a first-time ques-

tion. About half the respondents engaged in

four or more of the leisure-time activities

listed, and we found the highest percent-

age, 59 percent of those surveyed, like to

work around the house in their spare time.

Yet another why, but one thats pretty

easy to answer. Contractors work hard

and feel a sense of accomplishment in

what they do for a living, in building and

improving things. So its no surprise that

home improvement tops the list and that

a contractors work ethic and pride in a job

well done is put to good use on days off.

Contractors love to travel (51 percent) and

enjoy the great outdoors: 39 percent chose

hunting and fishing as the third-favorite

hobby. Watching sports came in fourth, musicand theater placed fifth and woodworking

came in sixth, indicating there are some sofa

spuds, culture vultures and closet carpenters

in our ranks. The eternally frustrating game

of golf notched in at seven, followed by clas-

sic/antique cars, playing sports, cooking and

wine, and last, a group listed auto racing as

their favorite pastime. A diverse and interest-

ing bunch, indeed.

FIGURE 1. Firm Size: Number of Employees

19

62%

1019

10%2099

15%

100+

11%

FIGURE 2. Revenue Less than$250k44%

$250k to$1 million

27%$1 million

to $2.5 million10%

$2.5 millionto $10 million

9%

$10 millionto $25 million

6%

$25 million+4%

FIGURE 3. Racial Composition of Firms

Otherincluding Asian

3%Black orAfrican-American

4%

Hispanic6%

White orcaucasian

87%


18/32


WHAT DO YOU DO?

THESE DAYS, contractors are

involved in more types of projects,

especially with the growth of high-

tech and security and life/safety systems.

Our survey listed 17 project types and asked

contractors which they performed in 2003

(See Figure 6). On average, 50 percent of

firms worked in eight of the 17 categories

and very large, large and mid-size contrac-

tors were more apt than small ones to work

in multiple categories. In fact, 84 percent

of very large firms worked in eight or more

categories, compared with 40 percent of

small contractors. In all, more than 90 per-

cent of the firms surveyed worked in four or

more of the categories.

The old standbys

While emergingand mergingtechnologies

will be a huge part of the industrys future,

contractors know power distribution and

lighting, which we subdivided into controls,

fixtures, ballasts and lamps, is todays bread

and butter. These five traditional categories

top their lists, and are performed by between

81 and 90 percent of firms surveyed while


Contractor age, employee diversity remain a problemThe average contractor age continues to be a cause for

concern. For example, the 2004 survey shows:

Most of you are middle-aged (48.6 years old on average)

You have spent an average of 24.6 years in the industry,

most of your working life

Only 8 percent were 25 to 34 years old, almost exactly the

number (7 percent) of respondents 65 and older

These figures hew closely to those of the 2002 report, which

also noted that contractors under 35 were notably absent.

An inclusive work force

Other factors may significantly affect the industry. The Aspen

Institute, as reported in The New York Times, says enormous

demographic changes are afoot for the next two decades.

With declining birth rates, a leveling off of women entering the

work force and baby-boomer retirements at hand, the Institute

predicts: The labor force may grow as little as 16 percent

The percentage of native-born workers ages 25 to 54 wont

grow at all

Workers with any college education might increase by only

4 percent.

Contractors already know how difficult it is to find educated and

qualified workers, and these projected changes could have a big

impact on the available labor pool and productivity. Atul Dighe, a

futurist with Social Technologies LLC and recent NECA convention

speaker, thinks inclusion, looking at everyone as a possible

employee, is vital. Hispanic and Asian workers are quickly

becoming a large and influential part of the labor poolold

news to folks in California and the Southwest, but something

novel in other parts of the countryand President Bushs newimmigration policies would allow 8 million undocumented

immigrants to obtain renewable, three-year visas.

In an e-mail, Dighe wrote that young people today are the most

ethnically diverse in our history and if any industry wants to attract

talent in the future, they will have to figure out how to make their

industry reflective of this more diverse population mix.

Todays youth, he wrote, will seek employment situations that

have a diverse work force. Quite simply, todays youth will seek

employment situations that have a diverse set of people in it.

As your research indicates, many of the current contractors are

entering their 50s and 60s and, unlike in the past when the nextgeneration was ready to take the baton of ownership/leadership,

many contractors are finding that the next generation is not

interested, Dighe added. Inclusivity here could mean thinking

about passing the business on to someone outside of the family.

Contractors need to think carefully about identifying whos next in

the leadership pipeline and working with those people to develop

their skills and abilities. Looking outside the family to longtime

associates, key supervisors, and even in the current labor pool may

be a potential solution.

FIGURE A. Respondent Age

50%45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

Company SizeTotal 19 1019 2099 100+

AGE

1824

2534

3544

4554

5564

65+


19/32



alternative-energy projects such as fuel cells

at 3 percent and wind generation at 4 per-

cent barely registered. We also discovered,

regardless of company size, just about every-

one worked in the four lighting categories.

Rounding out the Top 10: datacomm systems at 62 percent backup power at 61 percent fire/life safety systems at 46 percent CCTV or access/motion security systems

at 38 percent energy management/power quality at 34

percent.

Future workWe also wanted to know what type of work

contractors expect to do, and which cat-

egories they think will change in volume

over the next few years, regardless of

what they do now. In general, contractors

expect to increase or stay the same across

all categories. Few expect a decrease in

any category.

If a contractor doesnt work in a cer-

tain category, we found theyre unlikely to

express an opinion about a future there. So

we focused first on firms participating in a

given area, then looked at those who hadnt

done that same type of work in 2003.

Among those who worked in a particular

category, large and very large firms usually

predict increases in all categories, except

ballast and lamps, where we find no dif-

ferences by company size, and home auto-

mation/theater/security, where small firms

expect greater future volume compared tomid-size, large and very large firms.

On average, small firms that dont work

in backup power, datacomm and fiber optics

pick those as growth areas more frequently

compared to all others firms not working in

these areas. In contrast, 16 percent of very

large firms predicted growth in fuel cells and

17 percent predicted an increase in wind gen-

eration projects compared with all other firms.

Overall, alternative-energy projects, including

solar at 10 percent, wireless networks (11 per-

cent), home automation/theater/security and

energy management (both at 9 percent) were

anticipated to be high-growth areas for firms yet

to tap into those sectors.

On the leading edge

We also compiled a list of seven leading-

edge projects ranging from configuring a

CISCO router (7 percent of firms) to com-

munications/data systems moves, adds andchanges at 34 percent, a type of work done

frequently by contractors of all sizes; however,

these percentages are even higher for large

and very large firms. Overall, 51 percent said

their firm performed this kind of work in 2003

compared to 37 percent two years ago.

FIGURE 4. Respondent Education

Total

19

1019

2099

100+

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

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

FIGURE 5. Volume will increase among those working and not already working in category

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Power (60-HZ)

Lighting Controls

Lighting Fixtures

Ballasts

Lamps

Backup Power

Energy Management/Power Quality

Biometrics (CII)

Fire/Life Safety Systems (CII)

Security Systems (CCTV/Access/Motion) (CII)

Home Automation/Security/Theaters (Res)

Communications/Data Systems

Fiber Optics (Datacomm and Lighting)

Wireless Networks

Fuel Cells

Solar/Photovoltaics

Wind Generation

Currently working in categoryCurrently not working in category


20/32



A simple formula for success: E=PC2

As we said, 84 percent of very large firms worked in

eight or more categories compared with 40 percent of

small contractors. In all, more than 90 percent of the firms

surveyed worked in four or more of the categories.

This points to an ever-developing integration trend, one

thats seen strong growth for the last decade and has affected

commercial/industrial/institutional projects and single-family

residential contractors alike. Dr. Tom Glavinich, a regular

contributor to ELECTRICAL CONTRACTOR, has devised the formula

E=PC2 to explain this simply. That translates into E for markets,

P for traditional power projects, and C stands for control and

communications work. The contractor that puts P and C together

will have plenty of Gs. And that stands for greenbacks.

The ability of a contractor to group traditional power

installations with various combinations of security, lighting

controls, fire alarm systems, automated building systems,

datacomm and even biometrics is a powerful sales tool,

providing a one-stop shop where an owner can get 120V

power, Category 5 cabling, HVAC thats computer-controlled

for optimum efficiency, an energy-saving lighting system that

dims at peak sunlight and spotlights an after-hours intruder

with the help of the integrated security system, and amenities

such as state-of-the-art home theater and sophisticated

sound systems.

Figure B shows 95 percent of our respondents did some type

of traditional power or lighting project and 65 percent did

a power-quality project, which includes backup power and

energy management. We also found some interesting figures

on what we call core integration projects: almost two-thirds of our contractors did some type of

automation/control systems project for commercial/industrial/

institutional (CII) or residential markets 55 percent of respondents did a CII automation/controls

system project almost one-third did a residential automation/security/

theater project 66 percent did a communications low-voltage project

and 10 percent of all contractors did a alternativeenergy project with 20 percent of very large firms involved in

this sector.

Home-theater work is an especially lucrative niche market, and

many, if not most, new homes are being wired for more than

120V power these days. Residential contractors who cant do

more complex wiring tasks could be left in the dust.

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

Total 19 employees 1019 employees 2099 employees 100+ employees

Any Traditional Power/Lights

Any Power Quality

Any CII or Res Automation/Controls

Any CII Automation/Controls Systems

Residential: Home Automation/Security

Any Communication/Low Voltage

Any Alternative Energy

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Regardless of whether their firm per-

formed this type of leading-edge work in

2003, respondents were asked to predict

their future volume in each area over the

next few years. Almost all expect to stay

the same, few predict a decrease, and

firms not working in a given area usually

didnt guess about a future there. However,

we discovered mid-size and large firms are

most likely to predict increases in all cat-

egories. For those not yet performing work

in these areas, 3 percent of very large firms

predicted a rise in low-voltage systems-inte-

grator work, and 10 percent predicted a rise

in datacomm work for a CLEC.

The whys for all of these predictions

are hard to discern, but surely, some con-

tractors for any number of reasonssecurity

in whats known, how local markets shape

up, etc.stick with their bread and butter

and probably will say the same when we

conduct our next survey. Were sure they

do what they do well, have a good business

reputation and a streamlined operation

that keeps the contracts coming, and see

no need to expand their business into more

arcane or risky projects.

Thats not to say fruitful opportunities dont

exist for the more adventurous contractor or

one whose market is rife with low-voltage or

alternative-energy work. As our survey shows,

those jobs and the number of contractors

performing them may rise in the future.


21/32



WHERE YOU DOYOUR WORK

OUR CONTRACTORS repor t

they get 41 percent of revenue

from new construction, 31 percent

from modernization/retrofit and 28 percent

from maintenance/service/repair. However,

maintenance is a high-revenue generator

for small firms, while the percentages for

new construction rises as firms grow larger

(See Figure 7). In what could be seen a

disturbing trend, the portion of new con-

struction has dipped 9 percent from our

2000 survey when we proclaimed it was a

good year to be an electrical contractor.

Its still good. Many think voice/data/

video will make a strong comeback and

renovation will be the wave of the future.

When baby boomers latch on to their

parents inheritancea sum estimated

in the low trillionssome experts think a

good chunk of that will be spent on real

estate, especially if empty nesters leave the

suburbs for the cities to take advantage of

FIGURE 7. Types of work by sector


60%

50%

40%

30%

20%

10%

0%

New construction Modernization/retrofit Maintenance/Service/Repair

FIGURE 8. Types of electrical projects by firm size


80%

70%

60%

50%

40%

30%

20%

10%

0%

Electrical power/distribution Communications/data systems Security/Life Safety Systems Total building automation Sound and video

FIGURE 6. Currently Work in Category

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Power (60-HZ)

Lighting Controls

Lighting Fixtures

Ballasts

Lamps

Backup Power

Energy Management/Power Quality

Biometrics (CII)

Fire/Life Safety Systems (CII)

Security Systems (CCTV/Access/Motion) (CII)

Home Automation/Security/Theaters (Res)

Communications/Data Systems

Fiber Optics (Datacomm and Lighting)

Wireless Networks

Fuel Cells

Solar/Photovoltaics

Wind Generation


22/32



their culture, nightlife and restaurants. If

this prognostication proves true, renovation

work should turn up aplenty.

In general, our 2004 survey showed: regardless of company size, electri-

cal/power distribution is by far the largest

revenue source, accounting for an average

of 69 percent of sales total building automation registered at 11

percent and accounts for more revenue of

mid-size firms than firms of any other size communications/data systems (low volt-

age) at 10 percent, is less important to

small firms similarly, security and life safety work, only

6 percent of total sales, grows in importance

as the company size grows; it accounts for 4

percent of small-firm revenue and 9 percent

of very large-firm sales sound and video accounts for 4 percent

of revenue on average with no significant

difference by company size.

But there are no huge gaps anywhere;

the biggest difference is only 9 percent in

power distribution sales, with small firms

at 71 percent and mid-size firms at 62

percent (See Figure 8).

Residential vs. commercial

Across the total sample, contractors get 34

percent of their work from single-family resi-

dential, 8 percent from residential multifam-

ily, and 52 percent for business from com-

mercial, industrial, institutional and public

places (CII). Airports, highways, power lines

and other nonbuilding projects account for

a mere 4 percent of the business.

The biggest difference in work performed

comes when comparing company size. Small

firms report 46 percent of their work comes

from single-family residential, while very

large firms say its a miniscule 5 percent of

their business. CII projects, however, account

for 79 percent of the work for very large firms

and 41 percent for small firms. Very large

firms also do four times as much nonbuild-

ing work as small firms. No big shock here.

Big firms take on big nonbuilding projects

and residential construction has always been

a mainstay of small firms.

HOW YOU DO YOURWORK

C

ONT RA CTO RS SAY 46 per-

cent of their revenue comes from

design/build, which allows con-

tractors total or near-total control of their

job. Its particularly important to small

firms, which claim it makes up 53 per-

cent of their work. (Mid-size, large and very

large firms all claim its 35 percent.) We

designated three more categories related to

engineering and design: work in which the contractor made sub-

stantive changes to specs and drawings work in which slight changes were

made work in which someone elses specs and

drawings were followed.

Contractors said they made substantive

changes in 13 percent of their jobs, and

also made slight changes in 13 percent of

their work, but in a hefty 28 percent of their

work, they followed specs and drawings to

the letter.

An even closer look shows small firms

FIGURE 9. Building categories


90%

80%70%

60%

50%

40%

30%

20%

10%

0%

Residential (single family) Residential (multifamily) Commercial/industrial/institutional Non-building (e.g., airports/highways/power lines)

FIGURE 10. Extent of contractors changes to specs and drawings


60%

50%

40%

30%

20%

10%

0%

Design/build Made substantive changes Made slight changes Followed others specs and drawings


23/32



use design/build on 53 percent of their proj-

ects; couple that percentage with the small

firms propensity to do single-family resi-

dential (remember, it took up 46 percent of

their work) and its a good guess deign/build

is being used in a lot of home construction.

Small firms say they followed specifications

faithfully only 23 percent of the time, a

percentage thats at least 12 percent lower

than that of the bigger firms.

Also, mid-size, large and very large firms

score much higher percentages than small

firms when asked if they followed specs and

drawings faithfully. Another why? An edu-

cated guess is that public-sector projects,

normally off-limits to design-build, are done

less often by small firms.

How contractors purchase

Respondents were given four specifications

options for installation and asked how their

company had to fulfill obligations on the

job. We found: a single brand is specified 21 percent

of the time multiple brands are used at 28 percent or equal to products can be used at a

37 percent rate performance-specified brands are

required 15 percent of the time.Note that a single-brand specification is

a requirement for small firms 25 percent

of the time, a rate that falls incrementally

as companies get larger, dropping to 13

percent for very large firms.

Its no revelation that distributors get the

lions share74 percentof the market,

with warehouse home centers lagging far

behind at 14 percent. As companies get

bigger, home centers play a smaller role:

very large firms buy only 5 percent of their

supplies from that source.

Almost all contractors surveyed buy from

multiple sources, the number of which

climbs with firm size. For example, 11

percent of small firms and 32 percent of

very large firms buy from all four sources;

however, a majority of small firms54 per-

centsay they buy from just two sources,

perhaps because larger companies are both

located in more places and involved in more

different types of work. Online purchasing

is still a small factorjust 6 percent of

all firms buy over the Internetbut very

large firms do 9 percent of their purchasing

online.

Computer use

Computer use is no longer the way it will be

done; its the way it is done. Forty percent of

large and 74 percent of very large firms use

computers in eight ways or more compared

to 15 percent of small firms and 10 percent

of mid-size firms. This patternmore useby small than mid-sizesuggests a concen-

tration of small firms that specialize and

need the tools to compete in selected areas.

The fact that almost all very large firms said

they used computers for four or more tasks

hints at the opposite, that they are involved

in many different sectors.

As noted earlier, Internet access/e-mail

is used almost universallyin fact, all large

and very large firms say they use it. Also: 97 percent of large and very large com-

panies use computerized accounting a whopping 94 percent of very large

firms use computers for estimating and

job-cost analysis and 88 percent say they run AutoCAD.

This part of the survey yields some puzzling

and interesting data. There are some unex-

pected results in computer-program use that

on the surface dont seem to be cost-effective

for small firms. For example, 34 percent of

small firmsthats just one to nine employ-

ees, remembersay they have computerized

equipment and tool inventory, and 9 percent

say they use computers for fleet management.

Now that could be something as simple as a

customized Excel spreadsheet or it could be

specialized software. In any case, contractors

have put their computers to good use.

This data is probably skewed toward nor-

mal office use of computers, but PDAs and

laptops have been common tools in the field

for some time. Reported use for field laptops

is 42 percent and 33 percent for PDAs, andwe found 23 percent of firms order material

with handheld devices. In the future, large

and very large firms expect increased com-

puter use from these already high levels.

You as key specifier in supply procurement

Our 2004 survey found con-

tractors choose the brand

72 percent of the time. Small

firms choose more often (74

percent) than very large firms

at 65 percent. In the latter

case, we hypothesize the

projects may be far larger and

more complex, and purchas-

ing may be controlled by the

general contractoror that

small firms are involved more

in single-family residential

design-build and have more

purchasing control.

Guesswork aside, we think the

electric contractors capacity

to make product choices is

terribly importantin terms

of costs savings and getting

the job done on time with a

minimum of change orders.

When it comes to purchasing

electrical material and sup-

plies, they know whats best.

Unless there are overriding

reasons, why should someone

else choose for them?

In his report to the Electri21

Council, Procurement

Chain Management in the

Construction Industry, Perry

Daneshgari, a consultant and

contributor to this magazine,

said general contractors con-

tend it saves money, provides

faster occupancy and wider

product selection when they

control procurement. Danesh-

gari disagrees somewhat.

While his study admits the

general contractor procurement

method (GCPM) adds value

through bulk purchases and

by cutting out the distributor

or subcontractor (and their

markup), and allows procure-

ment earlier in the project, this

method may cause lost time

later in the job due to lack of

expertise. Daneshgari says the

specialty contractor procure-

ment method (SCPM) provides

the owner value through service

and knowledge. These are some

of his crucial points when it

comes to SCPM vs. GCPM:

A subcontractors product

knowledge and installation

skill is vital to most owners


24/32

35 www.ecmag .com JUL.04 ELECTRICAL CONTRACTOR 35 www.ecmag .com JUL.04 ELECTRICAL CONTRACTOR

Tools and vehicle use

Of course, almost every one of you owns a

company vehicle and youd much rather buy

one than lease, though the latter option is

more prevalent as firms grow in size. The

same goes for tools. Youd rather own than

lease. We asked about the tools purchased

most frequently in 2003 and found 90 per-

cent of firms bought power tools followed by

hand tools at 89 percent, multimeters at 79

percent of firms and mobile phones/two-way

radios at 57 percent. Lifts and scaffolding

(23 percent) and digging and boring equip-

ment (16 percent) were at the bottom. Its

no shock that these two types of heavy,

construction-site equipment were the most-

leased tools in our survey, the only ones to

have a lease rate higher than 10 percent.

FIGURE 11. Specification options


50%

45%

40%

35%

30%

25%

20%

15%10%

5%

0%

Single brand Multiple brand Or equal to Performance specified

in managing, validating and

optimizing equipment speci-

fied in the design; general

contractors lack the electrical

knowledge to pass on impor-

tant new product information Distributors provide a

valuable role for manufactur-

ers; with no distributor, man-

ufacturers need to increase

customer sales and support

roles thus adding cost; dis-

tributors offer services that

can dramatically reduce the

specialty contractors labor

cost

Owner may experience

project delays or additional

cost from material delays or

material handling; electrical

contractors know importance

of fast job-site delivery andavailable inventory

GCPM assumes general

contractors can bypass dis-

tributors and contractors and

buy manufacturer-direct; but

many manufacturers require

all customers to go through

distribution, thus limiting

product selection

General contractors order

material and have it shipped

from the manufacturer to

the job site where its stored

until it is installed; in SCPM,

distributors and specialty

contractors schedule mate-

rial flow to the job site. It isdelivered as needed and can

be packaged according to the

area where it will be installed

We feel you should be the key

specifier for electrical products

and supplies. You know what

works best in a given applica-

tion, and you have developed

relationships with distributors

that ultimately work to the

owners advantage. Job-site

roles have become more

flexible in the past decade,

leading some general contrac-

tors to believe they should

make all purchasing decisions.

But this same flexibility canallow you to take the reins

of a project, especially if the

traditional general contractor

has become nothing more

than a dealmaker who puts

projects together on paper. This

flexibility also relates to the

ascendancy of design-build

where, from the very beginning,

you work with a team to map

out design and procurement.

METHODOLOGY/ABOUT THE SURVEY

The survey was conducted by postal mail

and via the Internet between April 8 and

May 10, 2004, among a random sample of

ELECTRICAL CONTRACTOR subscribers.

During that period of time, a total of 865usable surveys were completed, 505 via

the Internet and 360 via postal mail. There

were no follow-up mailings. An incentive

was offered for participation in the survey:

For each completed survey,ELECTRICAL

CONTRACTOR magazine would contribute $5

to charity.

The margin of error on the total sample of

865 respondents is +/- 2.8 percent at the 90

percent level of confidence.

Tables and figures contained in this article

come from the data generated by this

years Electrical Contractor Survey, whichwas conducted by New York, N.Y-based

Renaissance Research & Consulting Inc.

an independent marketing research firm

that specializes in construction. They can be

reached at [email protected].

CONCLUSION

WHAT LIES AHEAD? Its a pretty good

betin fact, bet the housecom-

puter use, especially with sophisti-

cated construction software, will grow. The

rumored death of VDVto borrow from Mark

Twainhas been greatly exaggerated. As we

said, look for more contractors to integratelow-voltage with traditional power and light-

ing. And we think three key areas will affect

contractors in years to come: contractor age,

procurement control and a possible decline

in new construction. An infusion of minorities

in the workplace could cure the stagnation

in average contractor age, and were sure

youll seize greater control in procurement

and adapt to a possible retrofit/renovation

upswing. All of these somewhat cloudy issues

may have a bright, shiny copper lining. We

say 2004and beyondwill be very good

years to be an electrical contractor. EC

FULMER, a Baltimore, Md.-based

freelance writer, can be reached at

[email protected].


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0 CONSTRUCTION MONTHLY l new york 2007

why not LEED?

For a long time, most people believed greenor sustainable buildingwas the province of granola-gobblers who built homes ou t of recycledtires and equipped them with hideous-looking solar panels the size of

garage doors. Perhaps they used hay bales for insulation. And they all

lived in California.

Then, environmentally conscious construction began to enter the

mainstream, and some early adopters in the commercial sector went

with the ow. The problem green-leaning contractors always had was

convincing owners that higher initial construction costs would pay

o in the long run with a buildings reduced energy consumption.

The feel-goodfactor, prodding owners to a loftier level of ecological

awareness, was an even harder sell, especially in a low-bid world.

All that has changed in an incredibly short time. The U. S. Green Build-

ing Councils Leadership in Energy and Environmental Design (LEED)

designation, which got its start in the late 1990s, may be the biggest

single development in this arena. As little as two years ago, mentioning

LEED to contractors and vendors was often met by blank stares. Now

LEED Professional Accreditation is seen as an important resume-builder

for architects and designers and many forward-thinking contracting

rms have accredited professionals (LEED AP) on sta, individuals

who have passed an exam in one of three areas: new construction,

commercial interiors and existing construction.

More important, every contractor should be aware of the LEED rating

system. While the USGBC is a nonprot, nongovernmental agency and

achieving LEED statusthere are dierent levels and categoriesis

strictly voluntary, many public-sector projects are beginning to require

LEED-based guidelines.

By John Fulmer

LEED 101

So what exactly is LEED? The USGBC (www.usgbc.org) describes itself as a community of more than 7,500 organi-

zations from every sector of the building industry united by a common purpose to transform the building market-

place to sustainability by rating construction practices. LEED divides construction into eight categories, such as

residential, schools, and new commercial construction. If you wanted to try for LEED certication, rst register

your projecttheres an online form on the Web siteand begin accumulating points in the six categories listed

on the rating system documents, which are also available online.

The categories for new commercial building are:

sustainable site

water eciency

energy & atmosphere

material & resources

indoor environmental quality

innovation & design process

0 CONSTRUCTION MONTHLY l new york 2007 new york 2007 l CONSTRUCTION MONTHLY 3

GETTING BROWNIE POINTS

Each of these categories has a total number of availablepoints. For instance, its possible to score a high of

17 points in Energy and atmosphereand a low of 5 pointsin Water eciency.There are subcategories that explainhow a builder/developer can amass points. Some criteriaare required, such as a fundamental commissioning of theenergy system. An advanced commissioning will award

builders an extra point.

The new commercial rating system has a total of 69 points,but a builder need not hit every target. The USGBC rates the

performance, tallies up the points and awards the certica-tion in four levels:

Platinum 52-69 points

Gold 39-51 points Silver 33-38 points Certied 26-32 points

SCORING POINTS

Some of the ways points are awarded would seem obvious,such as energy-ecient lighting systems and buildingenvelopes with advanced insulation techniques. But LEEDis a comprehensive program that awards points in often

arcane and oblique ways.

For instance, in a commercial project, LEED gives pointsfor easy access to public transportation and installation

of bike racks, with the idea that gasoline consumption isreduced. Builders would losepoints if they had equipmentand materials trucked in beyond a 500-mile radius becausethat increases diesel-fuel use. A quick look at a ratingsystem.maybe not that quick since the new-constructionPDF is 81 pages longwill outline requirements for carpet

systems and adhesives use. It will prohibit developmentin proximity to wetlands and in ood plains. Fenestrationthat maximizes daylightingand cuts the electric bill willput you in LEEDs good graces. It blesses construction that

implements recycled and regionally produced materialsand curses HVACR systems lled with refrigerants that cause

ozone depletion.

WHATS THE POINT?

Whats does it matter if you get a gold or silver star on yournew building? Why go green at all? Well, how about tax

breaks? The New York State Green Building Tax Credit for(GBTC) provides $25 million in income-tax credits over nineyears for several types of construction, including manycommercial classications, with a minimum building sizeof 20,000 square feet. GBTC criteria could even be consid-

ered more stringent than the LEED system, but the two arevery similar. In fact, the USGBC was among the parties thatprovided input on the New York requirements.

New York is one of dozens of U.S. cities that have LEED-based building requirements or incentives, and mostexperts agree that green-building momentum is unstop-pable. In various jurisdictions, LEED oers other benetssuch as grants, fast-track permitting and special loans. In

some cases, building-permitting fees are slashed in half forLEED projects and zoning variances are allowed for higherdensity. Why? Because LEED seeks to improve interiorenvironments, and one of the intangible benets that green

building proponents point to is that LEED-type buildings areconsidered more healthy. This may, in turn, cause insurancecompanies to drop mold-exclusion clauses and cut premi-ums, another example of the type of softbenets greenieslike to talk about.

Youll have partners, among them the New York StateEnergy Research and Development Authority. NYSERDA canassist with computer modeling and charrette coordination,help you gain LEED certication, and guide you on Execu-

tive Order 111, Gov. Patakis 2001 directive to state agenciesand authorities to become more aware of sustainable build-ing principles. NYSERDAs Web site highlights The Bank ofAmerica Building under construction in midtown Manhat-

tan. The two million-square-foot oce building is the rsthigh-rise to go for a LEED Platinum rating.

And a trend has emerged in which RFPs, owners andprojects all look for a rm with LEED APs. Yet this is a

simplistic overview. LEED certications and requirementsare complex, and estimators need to gure in LEED admin-istrative costs. However, as energy prices skyrocket andresources are depleted, owners will beginhave alreadybegunto understand that long-term energy savings

may outweigh savings on cheaper but less-energy-ecient construction.

new york 2007 l CONSTRUCTION MONTHLY 3


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w w w . t e d m a g . c o m J A N U A R Y 2 0 0 6 T H E E L E C T R I C A L D I S T R I B U T O R 55

Ask those in the electrical industry

about the retail market and theyll

tell you its mostly about lighting.

Ask what kind of lighting, andtheyll answer the energy-efficient kind

which should be obvious, since energy

costs are astronomical and lighting eats

up a big chunk of a retailers utility bill.

But there are nuances to retail lighting

and a storeowners desire to cut energy

costs. For instance, it cant be lousy light.

Ideally, retailers want light with a high

color rendering index (CRI), a one to 100

value that indicates an artificial light

sources ability to replicate natural light.

They also want components to last and to

be near zero maintenance. And, as if all

of that werent enough, they want a part-nership between form and function: The

lighting fixtures and design scheme must

be attractive as they are essential in en-

ticing customers into the store and luring

them closer to the merchandise.

Storeowners look at a lot of energy-

efficient applications, but in retail, its

about whats the best lighting application

for the customer to display their prod-

ucts, said Ken Hawley, vice president of

sales at Venture Lighting.

Property management

Replacing cheaper, less energy-efficient

fixtures, lamps, ballasts, and controls with

more expensive but energy-squeezing

retrofits is a big issue. Its often difficult for

a distributor to upsell an end-user when

the price of new-generation fluorescents

and HIDs seems prohibitive. Sometimes

the deck is stacked against a retailer who

wants to be a good environmental stew-

ard. As Mike Lancaster, sales develop-

ment manager for retail and property

management at GE Consumer & Indus-

trial, explained, many mall stores have

leases that require them to pay a prede-

termined assessment or share of the

malls total energy consumption based on

their square footage.

Lancaster has one customer with hun-

dreds of stores across the country. In some

stores the company uses an energy-

efficient 50W lamp that allows it to reap the

benefits of reduced energy savings. How-

ever, in malls where stores arent individu-

ally metered, the retailer continues to use

older, less expensive but less efficient

75W lamps. Theres no incentive to the

store to reduce its individual energy con-

sumption, said Lancaster. As a result,

were seeing malls adding submetering

equipment that allows better manage-

ment of costs and more equitable billing

of individual stores.

Retail construction

Retrofits are only part of the retail land-

scape, and malls represent the declining

side of new store construction. Enclosed

malls are losing favor with consumers

and being replaced by open-air lifestyle

centers that aim for a smaller footprint

MARKET FOCUS BY JOHN FULMER

When it comes to retail, energy efficient is what theyre shopping for.

MARKETS &TRENDS

While retailers desire lighting that entices customers into stores and lures them closer tomerchandise, they are also beginning to appreciate the benefits of energy-efficient lighting.

Know whats in store

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56 T H E E L E C T R I C A L D I S T R I B U T O R J A N U A R Y 2 0 0 6 w w w . t e d m a g . c o m

and a cozy, village-square approach, ac-

cording to the McGraw-Hill Construction

Outlook 2005.

McGraw-Hill said retail turned the

corner in 2003, with a 10% increase in

construction, followed by a 4% increase

in 2004. In 2005, the figure dropped to

1%, but that still means 297 million

square feet of new retail space was

added. The report ties retail to new home

starts, which McGraw-Hill expects to

drop 5%, and projects new retail con-

struction to also fall 5%, but that still

translates into an additional 283 million

square feet.

Reed Construction Data backs up

those growth figures and projected that

$70.4 billion would be spent on retailconstruction put in place in 2005. Reed

expects put-in-place growth to continue

in 2006 with $72.9 billion spent and in

2007 with $76.7 billion spent. Spending in

this sector had been growing steadily

until the post-9/11 downturn, when it

slumped to $63.2 billion in 2002 and

$62.1 billion in 2003, after hitting $67.9

billion in 2001. In 2004, retail construction

put in place began moving upward

again, ending with $66.6 billion spent.

If you look at market segments, retail

spaces are the largest in terms of square

footage, and lighting can represent more

than 50% to 60% of the electric load in the

facility on average, said Nick Bleeker,manager of business de-

velopment for Day-Brite/

Capri/Omega. With those

statistics, retailers need to

know how important light-

ing can be to address

their particular needs.

Design and

implementation

Bleeker said his lighting

companies use a tailored

approach to customers

needs, taking into con-

sideration the stor

Documents

Trade Publications Portfolio Fulmer