Theft of a Sale (Bryant Wheeler)

I was drug up in the construction industry as my father was before me. I was tarring foundation walls as soon as a brush would fit in my hands. It was a time when your word carried more merit than a signature on a paper. When a contractor not only built a building he also built a reputation. A reputation of self-worth, value, character and honoring one’s word. This stood in life no matter if it were private or business affairs.

Polycrete USA still recognizes and lives by these values. Sure we get things in writing – but the word of a person or business still holds value to this day. We see and hear all too often in this ICF industry where an installer or distributor is working on a deal but the manufacture takes it in house because they are afraid to lose a truck load of forms. Maybe they think the person working the sale can't close it. Or maybe perhaps they just jumped the gun. Either way, if it’s your lead, it should be your sale.

When the manufacture takes your customer in house for whatever reason without your consent this is theft of a sale.

If you, the installer, contractor or manufactures rep, feel you can't close the deal on a PolycreteUSA lead you should call for help. I for one love to help close deals. But it’s still your sale. We are not going to sell direct without paying the rep, and we are not going to send another crew to the site to do the erection. That is your job.

We know how hard you work to make a sale -- so much goes into it. First you must get the lead from somewhere. If it’s by word of mouth this is because you have built a reputation with someone and that’s a beautiful thing.

If the contact comes from a lead source this costs hard earned money out of your pocket. Either way you put countless hours into working this sale. From convincing the customer that is the best way to build, to working with their architect and making suggestions to their engineer.

It could be a developer you have to pitch. Maybe you point out a tax incentive, insurance breaks, make site visits and general schmoozing -- most of the time it is all of the above including your reputation for doing good honest work.

Coming from the construction industry, later joining the Marine Corps then back into construction, acting honorably has been imbedded into me and this is why we do what we do. I would like to challenge ALL the manufacturers and installers to try to live by these values. To assert great character and build this industry on honesty and self-respect.

This industry has seen the bottom. Let’s all of us grab our boot straps now and pick it back up. Work together for the greater good. We need to do this with old values and new technologies. If we treat our partners, supply chains, and distribution channels ethically and honorably we can show America that ICF technology’s time has come.

Bryant Wheeler, Executive VP
PolycreteUSA
Richmond, Virginia

ICF Industry Consolidation

ARXX Building Products filed bankruptcy at the end of December . In the beginning of the month, Reward Wall announced that it’s selling its assets to Airlite/Fox Blocks.  Here’s my take on the current consolidation in the insulated concrete forms market.

Nearly all the ICF products generally available in the marketplace are considered “residential grade” and are essentially identical. Two panels of Type II EPS joined by plastic cross ties. They’re all about the same size and shape and all have about the same baseline performance.

There are only three outliers of any substance: Polycrete, ARXX Steel and Nudura (I’m not sure if the ARXX Steel line is still available). Some might consider knock-down blocks in a separate category, but their steep installation labor costs ensure they will remain a niche product.

Since nearly all residential grade ICF products are alike, since they compete primarily on price, since there is a concerted price war in the market, we can expect to see more companies like ARXX and Reward Wall being absorbed and disappearing.  There are too many similar brands chasing too few jobs. If they can’t find anything to compete on except price, consolidation is the natural result.

In this pricing environment, the best managed, structured, positioned ICF suppliers will survive. The best structured are those that control their own manufacturing. If they have a diversified product line as well, they should be better positioned to survive reduced margins. Hopefully their other product lines are profitable and can finance their price war.

Those ICF brands that have real, tangible and provable differentiators should be fine over the long term as long as management  continues to sell the unique benefits and resists the urge to leap into the price war.

Recently we lost a job to Nudura. It was a small job. They came in at half of our price. When the contractor told us Nudura’s quote, we said, “Sorry, we don’t sell our product that cheap,” and walked away. We know our costs, we don’t sell below cost, and we’re always happy to let our competitors lose money.

It’s difficult to tell where this consolidation will end. Airlite/Fox seems to be the big dog in the fight. They have their own manufacturing, a diversified product line and the financial heft to hang in for a longer time.

This type of highly aggressive pricing can be a minefield for the entire industry. One danger is that small manufacturers and those that outsource will try to hang on by cutting costs and quality. More high profile failures by inadequate products will damage the entire industry.

A second hazard to the industry’s reputation is the habit of selling material directly to GC/Owner. This may aid the supplier’s margin, but it cuts out the installer’s profits. ICF suppliers that squeeze installers are slitting their own throats. It’s a habit that reduces the installer’s margin of error and increases the likelihood of him losing money or walking off the job. It happens and we all know it.

One more hazard is overselling product or aggressively selling into an inappropriate market, which causes troubled installations. This results in disappointed customers and leaves a lasting bad taste in the mouths of construction/A&E professionals.  

If you have a residential grade product, stick to houses. This is a sword that cuts  both ways. Polycrete products work best in a commercial environment. Many of our installers do residential work as well, and we always encourage them to use the right product for the job. When presented with an opportunity that’s not appropriate for Polycrete, we don’t hesitate to hand it off.

In my opinion, those ICF suppliers that cannot survive long term should read the handwriting on the wall and cut the best deal they can with a firm that has its own manufacturing capacity sooner rather than later. Alliances, equity deals and earn-outs are easy to structure if everyone’s serious and all can be winners. That will get the consolidation over with and our industry can go on to make some money.

Fix It Anyway

“If it ain’t broke, don’t fix it.” A time tested proverb, right?

Well, I came across an ad for GMC trucks the other day that talked about using a rolled steel process rather than the normal stamped steel for making the truck bed. Even though there’s nothing wrong with the stamped steel process, they found they could make truckbeds lighter, stronger and more durable using a different process. GMC calls this mind-set “an adamant desire to fix the unbroken.”

R-Stak inserts are a full eight feet long

That’s what we're doing with our R-Stak^TM inserts. Gluing and screwing EPS boards to the outside of an ICF wall is a perfectly fine way to add more insulation. It’s been done that way for a long time. Except it leaves the studs buried 2.5” from the outside surface so you need longer screws and a better aim with the screwgun to fasten your exterior finish.

Other ICF companies came up with the idea of moving the extra insulation to the inside of the cavity. They make 8 inch wide EPS inserts that slip between the cross ties inside the ICF where the concrete goes. That usually works ok, too. And then you don’t need such long screws to reach the studs because they’re right there near the surface.

We took that good idea and made it great with R-Stak^TM inserts.  Full 2 foot x 8 foot panels that drop into the concrete cavity in one motion and use only fraction of the labor. We make two standard thicknesses, but customization is a piece of cake so you can have just about whatever thickness you need.

Expander clip holds R-Stak firmly in place

Our flexible manufacturing lets us make the cavity up to 24” wide so you can easily add ridiculous amounts of insulation and have as thick a concrete wall as you want. Ingenious expander clips snap into place and secure the R-Stak^TM insert without need for glue or screws.

America wants energy efficient structures that stand up to Mother Nature. That doesn't have to be hard, and PolycreteUSA just keeps making it easier. 

Adding extra insulation to your ICF wall wasn't a broken process, but we fixed the hell out of it anyway. Call us today to learn how we can simplify your project. 

PolycreteUSA’s new website makes it easier for architects, contractors and building owners to learn about a better way to build...

PolycreteUSA’s mission is to make it easy to design, build and own energy efficient structures that stand up to Mother Nature. We took another big step in that direction recently with the launch of a new website, PolycreteUSA.com.

We want to get our story across more clearly. Who we are, what we do and how we do it. We think the new format accomplishes that. Our technology has been used in Canada, Europe, Asia and even here in the US since 1988, but a lot of people here still think of it as new and mysterious. We want everyone in the construction community to see how cool it is and to realize that this technology really will make their project easier to complete.

Polycrete’s technology is a system for constructing commercial buildings with highly insulated concrete walls. Conventionally formed concrete walls involve a labor-intensive process of constructing a wood or metal formwork structure, filling it with concrete, then dis-assembling all the formwork after the concrete hardens. 

The Polycrete formwork is set up in a fraction of the time and does not have to be dis-assembled. It’s made from expanded polystyrene panels that contain a steel reinforcing structure which makes it strong enough to contain the concrete. Since the formwork becomes the insulation for the building, it also eliminates the insulating step in the construction process.

The Polycrete system eliminates several other steps, too. Four or more. Normally you would have to build a wood or steel stud wall inside the masonry wall to hold your insulation and sheetrock. That all goes away with this system because you can attach sheetrock directly to the Polycrete wall by means of its built-in steel fastening strips.

The new website includes useful information for architects, contractors and building owners.

Architects will be pleased to see CAD files that can be downloaded to make their design work easier and detailed information on how doors, windows, floors and roofs are incorporated.

Contractors will find complete information on assembling  Polycrete walls and how it works with electrical, plumbing and other building systems.  

Building owners can learn about operating costs savings and even how they can benefit from Federal tax credits and deductions from using the Polycrete system.  

Building products like the Polycrete Big Block ICF system have to undergo a thorough series of tests before they are approved by the International Code Council. The ICC sets the rules that most local building codes are based on. Polycrete makes all of its ICC test results available on the website for download.

Intertek testing service ran all of our ICC tests. They’re the number one building materials testing service on earth, and I can tell you their results prove Polycrete Big Block is the strongest ICF on the market. Fastener withdrawal, shear tests, fire ratings, you name it. Some other ICFs are close to us in one or two areas, but overall, The Big Block is tops. That’s why we put all the data on the web for the world to see. This is not just a salesman making up stories, it’s the real deal.

We want to hear from construction professionals after you look over the site. It’s an evolution. We’re currently working to develop more resources for installers. In the meantime, we really want to hear what the community thinks of what we’re presenting and what you like and dislike about the site. It’s not about us, it’s about you. We’re going to continue to improve our usefulness. If there‘s other info or services you’re looking for, tell us and we’ll figure out how we can get it for you. 

The new website is at www.PolycreteUSA.com. We’re also on Facebook. There’s more pictures on the Facebook page. Contractors send them to us as their jobs progress and we just throw them up on Facebook.

Polycrete Moves The Target Again With Two Major ICF Innovations

Polycrete’s engineering and manufacturing folks have come up with two more advancements that will make it easier for you to design and build energy efficient structures that stand up to Mother Nature. I don’t know which of these is the bigger deal.

A few months ago we told you that size really does matter and announced that we can now make Big Block wide enough to accommodate up to 24" of concrete. Well, height matters, too. 

Since we already make Polycrete Big Block™ in 12”, 18” and 24” heights, we we thought you would want the option of mixing and matching panel heights on each block. We call it Polycrete Split Block™.

So if you have a slab turning down into an ICF wall and you need 24” height on the outside of the wall and 12” on the inside, you don’t have to rip it in the field anymore. We can make that for you. Saves time. Reduces waste.  

Any concrete core width from 5-1/2” to 24” in three different heights that can be mixed and matched on the same block. It just keeps getting easier.

The second innovation is Big Block Premium™. We’re now using BASF’s advanced technology Neopor polystyrene beads to give you the choice of a higher  R value ICF. 

Standard EPS has a minimum R value of 4.00 per inch at 75 deg. F.  BASF’s Neopor  is nearly 15% higher, at 4.53 per inch. Tiny graphite particles added to the EPS act as infrared absorbers and infrared reflectors which greatly reduces thermal conductivity. 

That means the EPS insulation alone is at least R22.65 and an R30 wall is much easier to achieve. As always, the R values quoted here are minimum ratings under ASTM C518. Some ICF manufacturers may claim their products carry higher R-values than this. If they claim it, make them back it up and show you their test results. 

Polycrete Big Block Premium™ with Neopor gets you more energy efficiency  with the same 
EPS thickness and it costs less than 20¢ more per square foot.

Polycrete Big Block™ is a commercial grade insulated concrete forming (ICF) system.  ICFs are forms for building reinforced concrete walls. The forms stay in place after the concrete cures and serve as insulation for the building. Sheetrock attached directly to the ICF on the inside and all conventional exterior finishes attach directly to the outside surface. Polycrete® lets you build faster , stronger and more efficient than traditional methods.

Top Concrete Contractors Join TeamPolycrete

Always on the prowl for new installers who can advance our mission to make it easy to design, build and own energy efficient buildings that stand up to Mother Nature, we've recently added two big dogs and one rising star.

Century Concrete, headquartered in Virginia Beach, serves the Richmond area from its Ashland location and Northern VA from Manassas. Led by Preston White, Century is one of Virginia’s most highly respected concrete contractors and has now added Polycrete ICF installation to its service offering.

The Burke Family has a long history of concrete construction in the Maryland and DC area. Brian Burke of Burke Concrete Construction has been an advocate of ICF construction for many years and developed a green construction division in 2009 to focus on ICF installation.

Jason Carey, owner of Hamptons ICF in Sag Harbor, New York is a native New Zealander. He’s built both residential and commercial in New Zealand, France, Switzerland and the US since 1990. Jason is also a Cuisine Professional who designs and builds world class restaurants and kitchens. These days, he’s a leading ICF installation contractor in Eastern Long Island and works in NYC as well.

Access PolycreteUSA’s Complete installer list.   

1-800-570-4313

    

K-12 Building That Generates Cash? Go Figure...

The Nation’s first net zero energy school was the subject of an article in Forbes recently because it just got its first full annual electric bill… errr, check. Yep, that’s right, after a full year in service, Richardsville Elementary School was paid $37,227 for the energy it delivered to the local electric utility.

If you were asked to guess where Richardsville Elementary School  is located, you might suggest California, Massachusetts, or Vermont -- where Prius ownership is highest and the politics bluest. Well, the answer’s nope, nope and nope. Richardsville’s in that red state of Kentucky.

Yes, Kentucky. Where the grass may be blue but the politics are red. Where coal is king, electric costs are the fourth lowest in the nation, and energy efficiency innovations yield taxpayers $3.3 Million in annual avoided costs.

You might ask what it means to be “Net Zero Energy”. It means that the building generates all the energy it needs (or more) to operate using various passive and active strategies like solar, wind, geothermal, etc. Public utilities are usually required to buy any excess energy generated from alternative energy producers hooked up to their grid and hence the check instead of a bill.

Typical annual energy costs for K-12 schools in the US are $1.25 per square foot. At 77,466 square feet, Richardsville earned almost 48¢ per square foot. In a state like Virginia, where average electric costs are 12.5¢/Kwh, that would translate to almost 75¢ per square foot or $58,100 per year in earnings and $155,000 in annual avoided costs. Assuming an interest rate of 3% and no increases in energy costs, that works out to more than $3 million saved over the expected life of the building.

You’re probably thinking that it costs a fortune to build such an efficient building and the up-front investment won’t stand up to economic analysis. You’d be wrong, though.

According to the National Clearinghouse for Educational Facilities, a program of the National Institute for Building Sciences, average Elementary School  construction cost in the US in 2010 was  $190 per square foot, and Richardsville came in at $156.

Part of the reason for the affordable construction costs is that it’s built with insulated concrete form technology. ICFs like Polycrete® Big Block™ are a very cost effective strategy for achieving high insulation value in walls and that allows downsizing of HVAC systems. ICF technology also adds of lot of other cost-saving attributes. A key to making the overall economic model of a net zero energy building work is controlling the costs of construction.

How does something like this happen? Well certainly not overnight. It took careful design and planning over a decade. Now, nearly all twenty-one schools in Kentucky's Warren County meet Energy Star certification. That accomplishment has resulted in more than $5 million in avoided energy costs to date. Real dollars that taxpayers did not have to shell out.

Richardsville’s Net Zero accomplishment is a result of its innovative building design. Although it’s  a typical school with classrooms, gym, cafeteria and such, many features are unique. Everything from the heating and cooling system to the lights work with sensors that automatically determine appropriate light and temperature levels and then make adjustments.

Most schools in the US operate at 73kBtus per square foot. The average Warren County Kentucky school uses 40.  In 2007, Warren County built Plano Elementary School to use 28. As it continued to work with its crack team of architects and engineers, it leveraged the lessons learned from Plano to design Richardsville to operate at 18 kBtus per sqft.  That’s less than 25% of the average school’s energy usage.

In 2008, Kentucky Governor Steve Beshear launched “Intelligent Energy Choices for Kentucky’s Future, Kentucky’s Seven Point Strategy for Energy Independence.” Despite that Kentucky is the nation’s 3^rd largest coal producer, the commonwealth's governing team introduced this far-sighted and ambitious program that's paying off in real dollars. 

It’s an oft repeated proverb that the cheapest energy is the energy you don’t use, but opponents of net zero insist it’s just a theory that won’t work in the real world. The Net Zero model that Richardsville Elementary’s design team pioneered has blown up that argument once and for all.

Imagine how net zero schools and government buildings will reduce the pressures on state and local budgets. Elimination of energy costs will free up funds for more teachers or other educational resources. Now that Richardsville’s proven the net zero model, we can feel comfortable repeating it for all new school construction. Our students and taxpayers deserve it.

For information on building your net zero design team, please call or email Bruce Anderson, PolycreteUSA 1-800-570-4313 Bruce@PolycreteUSA.com

 

Post-Sandy Flood Maps Come With Big Changes

FEMA is releasing new post-Sandy flood maps.

Technically known as Advisory Base Flood Elevations (ABFE), these are updated estimates of the water levels associated with a flood event that has a 1% chance of being equaled or exceeded in a given year (the notorious 100 year flood). These maps are being released to the municipalities and the municipalities will likely accept them and incorporate them into their code.

Closing the Breach at Mantoloking, NJ
USACE Photo (Click to enlarge)

They’re going to show higher elevations than those on the current maps. They’re also going to show coastal flood areas extending further inland than those on the current maps. They’re including re-drawn AdvisoryZones, areas of structurally damaging wave action and Hurricane Sandy high water marks.

FEMA began releasing the ABFEs for New Jersey’s inland counties last week. Those for the shore counties are coming out this week, and New York City and Westchester’s new ABFEs will be released next week (12/17/2012). FEMA has not yet decided if Long Island’s maps need to be updated, but the devastation we saw in Amityville alone would tend to imply they do.

A complete re-study of the New York and New Jersey coastline was already in process when Sandy hit. The new maps were scheduled to be released in Mid-2013, but recent events compelled FEMA to put out these advisories in advance of the official release so that intelligent re-building can get underway.

Between the new ABFE flood maps and the ramifications of the Biggert-Waters bill, it’s clear that homeowners in the affected areas need to take some action or they stand to find flood insurance premiums going through the roof.

Biggert-Waters is the law that reauthorized the National Flood Insurance Program. It was signed in July 2012 and makes a lot of changes. For instance, subsidies will be phased out for many building types other than primary residences. Even primary residences that have incurred excessive losses in the past will lose the subsidy.

Under Biggert-Waters, rates are also going up if there’s a change of ownership, a lapse in coverage, substantial improvements or -get this- “a mapped change in flood risk.”

Houses on left were properly elevated and substantially
undamaged. Houses on the right were not so lucky.

Building owners should evaluate actions they can take to reduce that risk. Not just because the new rates will reflect the full flood risk of the insured properties, but in order to avoid the heartbreak of being wiped out by another flood.

FEMA recommends strategies to reduce future losses. One of the best is to raise your building above the minimum required elevation. Generally, the higher the building is over the minimum required elevation, the lower the premiums and the lower your flood risk. 

That just makes sense. And it’s not as complicated as it seems.  

If you’re covered under the National Flood Insurance Program and have damage valued at 50% or more of the pre-market value of the house, you may be able to get $30,000 towards the cost of elevating the house. It’s called an ICCClaim. If your damage is less than 50%, there are other scenarios and programs that may be able to help you cover the cost.

The actual process of elevating the structure is usually pretty straightforward. Your contractor will pierce the existing foundation and slip steel girders under the floor joists. Hydraulic jacks are then used to raise the building up off the foundation.

Concrete block foundation washed
away  by Sandy's storm surge 

If your existing foundation is damaged or made from concrete block, your contractor should remove it and replaced with a cast in place concrete foundation. Polycrete ICFs are a very fast, economical way to retrofit a cast in place foundation on an existing structure.

Different categories of flood advisory zones call for different types of foundations, so bear in mind that you’ll need to check with a structural engineer and your local building officials to determine what sort of new foundation is required for your structure.

We have a list of qualified architects and structural engineers who can advise you on the proper foundation for your building, and we also have a list of recommended, licensed contractors who can handle the job. 

Depending on your particular circumstances, it's very likely you can have your structure elevated and new foundation formed in the next several weeks. In many cases, Polycrete foundations can be poured right through the winter. 

Please call or email us to get started, and don't forget, for every square foot of Polycrete ICFs sold in the region through the end of 2013, we're contributing to New York and New Jersey's rebuilding funds.  

     Richmond, VA  •  Bridgewater, NJ   •  Amityville, NY  

800-570-4313

PolycreteUSA.com