Progress, Partnerships and Possibility

Progress, Partnerships and Possibility Since then, SMACNA has evolved into an association that is actively growing and changing to advance our renewed mission of serving our members effectively.MarketingThe Marketing & Communications Department, led by Susannah Forde, launched a new, user-focused website. We also introduced National Career in Trades Week, our first national public relations campaign aimed at raising awareness of job opportunities in the trades. The campaign received strong local and national media coverage, including a front-page feature in The Wall Street Journal. Next year, we will expand this initiative through industry partnerships. Our collaboration with SMART continues to advance shared priorities. We have also strengthened our social media and video content to showcase member achievements and thought leadership on key issues.Markets / AI / EducationThe market sector councils and task forces have also been busy under Linda Jennings’ direction. They are creating new programming at every opportunity. Some examples include the work being done by the industrial market sector task force on productivity and safety, the architectural task force’s efforts to leverage trade shows to increase industry awareness, and the residential group’s work to use new media tools to expand market footprint.In a similar vein, the AI Task Force, led by Travis Voss and Hugh Seaton, is working diligently to help our members navigate the rapidly evolving AI landscape. Through their informative webinars and other materials, we hope to answer the questions our members have on this complex topic. We recognize that traditional white papers may not be the most accessible format for our members. To address this, we have converted many of these resources into podcasts and infographics, and we will continue to develop on-demand videos for greater accessibility.Our education programming continues to evolve. SMACNA now offers 40 to 50 web-based courses annually and has expanded chapter education opportunities. Core programs such as PMI and BMU are scheduled more frequently and are available to interested chapters. Erykka Thompson is leading an education task force focused on expanding field leadership, supervisory and project management offerings.Ultimately, the FAB Forum exemplifies our programming. Fabrication remains at the heart of our industry, and it is more important than ever that we keep our members on the cutting edge of the technologies and best practices emerging in this arena. Linda’s team has done a tremendous job in building a program that gives contractors the tools and best practices they need to succeed. TechnicalOur technical standards remain one of the key assets produced by our association. Eli Howard and his team continue to consistently produce tools of maximum value to our members. We have produced several technical videos to increase the exposure and utility of these items. This is just the beginning of our push to make our standards as accessible as possible. We are working to translate select manuals into Spanish, ensuring that all contractors deliver work aligned with our top-of-the-industry guidelines.Government RelationsStan Kolbe and the rest of the Government and Political Affairs Group have been highly effective in advocating for our members and our industry in Washington. The 118th Congress witnessed Stan’s group skillfully lobbying for the enactment of key provisions to advance modernizing airport Infrastructure, Nuclear Power Financing-Permitting Reform and reforms for project labor agreements. As we work through the 119th Congress, we were already successful in enacting the extension of our top tax priority provisions and we will press our lawmakers on key items, including change order reform and the SAFER Banking Act. Labor RelationsLabor relations and local bargaining support have long been core services of SMACNA. Jason Watson has expanded the department’s work and is actively working with Chapters to create stronger relationships with labor. He has also held additional training programs and is building a new trustee training program for 2026.Our association exists to advance the industry and support our members. The team’s ongoing efforts reflect this commitment, and we remain vigilant in addressing emerging needs and trends. Aaron HilgerSMACNA CEO

Artificial Intelligence: An Introduction

Artificial Intelligence: An Introduction Since late 2022, when ChatGPT was introduced, we’ve been hearing more and more about AI, usually with more hype than explanation. In this article, we’ll explain AI from the ground up, so you can be armed with a solid foundation of understanding as more and more products and pitches come your way.  What is AI?First things first: what is AI? You’ve probably heard a few explanations, and they often trip over themselves trying to explain this or that model or algorithm. AI isn’t actually one technology. Think of it as a collection of approaches that seek to create machines that can think. We haven’t been able to do that completely, but along the way AI has enabled very useful tools, like recognizing email spam, understanding normal language, automating some tasks and more. AI is still just software though, not magic, not an ‘digital brain.’ A useful definition that’ll help you think about AI is: AI is software that can do unique and useful things because it learns from data. AI represents a fundamental shift in how software systems operate and make decisions. Unlike conventional software that follows predetermined rules, AI systems learn from data, adapt to new situations and improve their performance over time without explicit programming for every scenario.Today’s most advanced AI systems include Large Language Models (LLMs) like GPT o3, Claude and Gemini, which can understand context, engage in complex reasoning and even tackle multi-step problem-solving tasks.In a construction context, AI shows up in various forms: everyday chatbots that summarize documents, draft emails and can do research, and proprietary systems like computer vision systems that monitor job sites for safety violations, natural language processing tools that analyze contracts and specifications, predictive analytics that forecast project delays, and autonomous equipment that performs specific tasks with minimal human intervention. Since late 2024, we’ve seen more and more of a move to introduce “agents,” which are AI tools that automate workflows, especially the tedious day-to-day tasks that involve documents.HOW is it different to “normal” software?  Traditional software operates on instructions, in the form of code. Developers write clear and complete instructions: if X happens, do Y, and the software does exactly that and only that. Every possible scenario must be anticipated, programmed and tested. This approach works well for predictable tasks but breaks down when dealing with the complexity and variability inherent in the real world. It is impossible to write enough rules to recognize a face, let alone millions of faces, yet AI does this all the time.AI makes software work in three main ways. First, AI systems learn from examples rather than following rigid rules. This is why we often hear so much about ‘data’ in the context of AI. It takes a lot of data for AI to learn anything useful, often hundreds of thousands of labeled, organized data points.Where a traditional software system might need thousands of lines of code to identify safety violations, an AI system can learn to recognize them from examples, generalizing to new scenarios it hasn’t seen before.Second, because of this learning from data vs. instructions, AI is much better at processing unstructured data: the messy, real-world information that makes up most of what we encounter daily. Things like images from job site cameras, handwritten notes, voice commands, architectural drawings and natural language in contracts all represent unstructured data. We call it “unstructured” because it isn’t neatly in rows and columns, like excel data or a database. These examples would be impossible to process at any scale with traditional programming. AI can extract meaning from these natural, messy sources, turning chaos into actionable insights. Third, and perhaps most importantly, AI systems improve over time through continuous learning. As they process more data and receive feedback on their predictions, their accuracy and capabilities expand. This adaptive quality means AI solutions can evolve with changing project conditions, regulations and industry practices without requiring manual reprogramming. A safety monitoring system, for instance, becomes better at identifying hazards as it analyzes more incidents and near-misses across multiple job sites.What is AI good at?We find in industry after industry, AI is good at things that make up for limitations that humans often have. Because AI can quickly recognize patterns, processing documents at lightning speed, modern AI systems can process millions of data points, from historical project records to real-time sensor readings, identifying trends and correlations that would take human analysts months to uncover. More realistically, AI can do things contractors just wouldn’t do because of the investment in time and money. Because it is software, the cost to do these things drops, and suddenly they become possible. In fact, that is the core of what we see AI changing in the near term: allowing contractors to control risk more completely because they can automate more of the tedious, time-consuming work that goes into analyzing, error checking and summarizing documentation that can so often be a huge source of risk. To expand on that, here’s a quick list of some of the things AI excels at: Natural language conversation: At the heart of the current AI wave is the ability for people who are not software developers to work directly with AI. We can ask it questions, get web searches summarized, get images created, and receive a growing list of everyday tasks that are now at our fingertips.Document processing and analysis: AI can analyze contracts, specifications, RFIs and change orders at superhuman speeds, automatically extracting key information, identifying conflicts and flagging potential issues. AI-powered systems can review thousands of pages of project documentation in minutes, ensuring nothing falls through the cracks. Safety monitoring: Computer vision systems powered by AI can continuously monitor job sites through existing cameras, detecting safety violations in real-time. This includes things like workers not wearing proper PPE, unsafe behaviors like working too close to moving equipment and so on. Predictive safety analysis, where AI analyzes historical safety data from previous accidents, near misses and safety observations, can identify patterns that predict future risks.Quality control: AI-powered image recognition can identify construction defects, measure installations against specifications and track progress with unprecedented accuracy. Drones equipped with AI can survey entire job sites, comparing actual construction against BIM models and identifying deviations before they become expensive problems.Automation of repetitive tasks:. AI can automatically generate quantity takeoffs from drawings, analyze and create optimal construction schedules considering countless variables, match invoices to purchase orders, and even draft routine correspondence. These time savings compound across projects, dramatically improving productivity.In all of the above instances, it is important to point out that no system is perfect, and we too often expect AI to be better than a human would or even be as good as an experience professional would be. In reality, AI systems are still just software, and they are good at automating parts of the work, supporting the professionals, but there are definite limits that users encounter quickly when they trust AI with too much, too fast.What is AI not good at?Despite its impressive capabilities, AI has serious limitations that contractors must understand to use it effectively. The core of these limitations is that AI doesn’t think like humans do, in fact under the hood, AI is nothing like the human mind. The fact that it can produce coherent, intelligent responses sometimes misleads users, but never forget it is software. Here’s a list of some of the limitations to watch out for:Made up information: Sometimes called “hallucinations,” AI will provide answers to questions even when it doesn’t know the answer. It does this with complete confidence, so it can be difficult to spot. This behavior is because AI, specifically LLMs like ChatGPT, are built from the ground up to provide answers. If they don’t know the answer, they’ll make one up that seems right. This can be almost entirely avoided by pointing the AI at real data, like a document or website, and asking better questions, but it is still a problem to be aware of.Understanding of the project: AI does not understand the world, so it will have no idea what certain things imply or what should be included or not. This is another place where AI being fundamentally different to human minds is important. You cannot ask AI a very high level question like, “Show me all the risks in this project manual” and get a good response, it’s just beyond the AI’s capability.Creative problem solving: While AI can generate variations on existing solutions or combine known approaches in new ways, it cannot match human creativity when facing new challenges. When a unique structural problem arises on a job site or when coordinating complex trades requires innovative sequencing, human expertise and creativity are essential.Complexity: AI can handle messiness much better than any other software, but it is nowhere near as capable as even an untrained human. This is why robotics is still limited to situations where the site has been cleared (like layout robots) or otherwise simplified. This is true also concerning what you ask AI to help with — involve too much complexity and you get a response that is not useful.What should contractors know?First and foremost, AI is a powerful tool, but it is not a replacement for human expertise. AI will not replace the fundamental need for a skilled workforce, expertise or lived experience. Successful implementation requires viewing AI as a partner that handles routine analysis and monitoring, while humans focus on complex decision-making, relationship management and creative problem-solving.For many applications, data quality serves as the foundation for AI effectiveness. These systems are only as good as the information they’re given. Start with areas where your documents and data are in good shape, then move from there. Where quality data is a struggle, start where the stakes of failure are lower and are likely to be caught, like marketing and sales, where AI can automate everything from proposal preparation to images and emails. The efficiency gains for these chronically understaffed functions are often significant.Implementation requires strategic planning and patience. Rather than attempting wholesale AI adoption across all operations, successful contractors start with pilot projects in specific areas. Common starting points include marketing, safety monitoring, document analysis or predictive maintenance for equipment. These focused implementations allow teams to learn the technology, demonstrate ROI and build confidence before expanding to other areas. While nearly all companies are investing in AI, only 1% of leaders call their companies “mature” on the deployment spectrum.Like all technology, training and change management will be crucial for AI adoption success. Address fears about job displacement directly and emphasize how AI augments rather than replaces human workers. The change management playbook is pretty well understood:Invest in training programs that build both technical skills and confidence. Create champions within your organization who can demonstrate AI’s benefits and support their colleagues.Align incentives to allow for time to adoptSecurity and privacy demand serious attention in the AI era. AI systems often require access to this data to function effectively. Contractors must understand how their data is being collected, stored, processed and protected. Key considerations include: Where is data stored? Who has access? How is it encrypted? What happens to data after project completion? Can competitors potentially access insights derived from your data?Vendor selection requires careful evaluation. The construction technology market is flooded with AI solutions, but not all deliver on their promises. Look for vendors with specific construction industry expertise, proven track records and verifiable case studies. Because of the hallucinations, and security issues mentioned above, require that vendors show how they evaluate their AI for accuracy and explain it in non-technical terms, it should not be rocket science. Similarly, require they explain data security, including if contractor team members leave.Future-proofing your AI strategy means staying informed about rapid technological advances while maintaining focus on fundamental business needs. In 2025, models will do more, and they will do it even better, with capabilities expanding monthly. However, avoid chasing every new feature or trending technology. Instead, maintain a clear vision of how AI serves your core business objectives: completing projects safely, on time and within budget.Finally, remember that AI adoption is a journey, not a destination. The technology continues evolving rapidly, and best practices are still emerging. Maintain a learning mindset, regularly reassess your AI strategy and be prepared to adjust as you gain experience. Connect with peers using AI in construction to share lessons learned and avoid common mistakes. The contractors who thrive in the AI era will be those who thoughtfully integrate technology while maintaining their focus on the fundamentals of good construction practices.   

What’s in H.R. 1, The New Tax Bill, and What It Means for SMACNA Contractors

What’s in H.R. 1, The New Tax Bill, and What It Means for SMACNA Contractors The Congress just passed, and the President signed H.R. 1 into law. This budget and tax law is filled with significant updates and the extension of valued existing provisions for HVAC contractors, equipment suppling firms, building owners and real estate project developers. While tax policy isn’t simple, this bill does include many industry tax incentives most contractors will be familiar with from the 2017 Tax Cuts and Job Act (TCJA). Other incentives will be new, representing significant changes that could impact business growth over the next few years. We are pleased that the new law brings back several SMACNA-endorsed and advocated tax incentives and extends others, some of which were on the verge of ending. Below, is outlined what’s in the bill, why it matters and what each section could mean for your bottom line. Bill Highlights for SMACNA Contractors and Clients: Bonus Depreciation (100%) Restored – Deduct 100% of qualifying property costs in the year placed in service, including past projects, to boost cash flow and tax savings. Section 179 Expensing Expanded – Instantly expense up to $2.5 million in equipment or property purchases with new, higher limits and inflation adjustments. Section 179D Energy-Efficient Deduction – Claim up to $5.00 per square foot for energy upgrades in new builds and renovations. This applies to both private owners and public building designers. The bill keeps the incentive in place but only until the end of 2026 when it ends. The Advanced Manufacturing Investment Tax Credit is increased from 25% to 35% for technology-related projects, often Chip plants, started by the end of 2026.Section 45L Home Energy Credit – The incentive survived efforts to kill it, so homeowners get $2,500 to $5,000 per unit for building energy-efficient single-family or multifamily housing until the end of 2026. Section 174/174A R&E Deduction Reinstated – Immediately deduct domestic R&D expenses instead of amortizing over five years, retroactive to 2022. Section 41 R&D Tax Credit Enhanced – Continue claiming 6% to 20% credit on qualified research while also deducting those same costs under Section 174A. Estate Tax Ceiling Raised – A permanent increase in the unified credit and GSTT exemption threshold from $10 million to $15 million per individual, indexed for inflation.SALT Allowance – Temporarily increases in the SALT cap to $40,000 from $10,000 with limitations until 2030 when the $10,000 threshold returns.The Section 199A deduction is made permanent at the deduction rate of 20%. Further, it limits the phase-in range for certain businesses by increasing the amount from $50,000 to $75,000 for non-joint tax returns and from $100,000 to $175,000 for joint returns.Excess Business Losses – The new Act makes permanent the excess business loss limitation allowed to the amount of aggregate gross income or gain attributable to trades or businesses of the taxpayer plus a threshold amount indexed for inflation ($313,000).Section 45U, Zero-Emission Nuclear Power PTC – Not modified; credit allowed through Dec. 31, 2032. SMACNA also appreciates the reconciliation process for demonstrating support for:The deductibility of employer-sponsored health insurance.Maintaining without changes the business state and local tax (SALT) deduction.Sustaining current law concerning treatment of the tax-free status of municipal bonds.While there is much our industry endorses in the H.R. 1 as passed by the Congress, we regret the final version included termination after 2025 or 2026 of the highly popular and valued IRA residential market tax credits (25C, 25D, 45L) and programs necessary to boost the important consumer-oriented contractor and HVAC equipment retrofit markets.  

HVAC: Modern Niagara Bets Big on Ottawa’s Hard Rock Casino Revamp

HVAC: Modern Niagara Bets Big on Ottawa’s Hard Rock Casino Revamp This ambitious redevelopment aims to establish a premier entertainment destination in Canada’s capital region.The project encompasses a significant expansion and renovation of the existing facility, integrating Hard Rock’s signature blend of luxury and entertainment. Upon completion, the venue will feature:A 150-room luxury hotel.The Hard Rock Live theatre, with a capacity of up to 2,200 guests.An expanded casino floor with 1,500 slot machines and up to 40 table games, including a separate Baccarat room and high-limit slots.Modern Niagara Founded in 1959 as a local plumbing services shop in Ottawa, Modern Niagara has evolved into a leader in mechanical, electrical and integrated building technology systems.Modern Niagara’s roots trace back to 1959, when Jan Kaminski and Joe Clark established Modern Plumbing, a local plumbing services shop in Ottawa. In 1999, the company merged with Niagara Mechanical, a Toronto-based mechanical services firm, and rebranded as Modern Niagara Group Inc. This expansion marked the beginning of a national presence, with the company now offering mechanical, electrical, HVAC and integrated building technology services across Canada.Today, Modern Niagara Ottawa employs over 850 professionals and is involved in major infrastructure projects throughout the city, including the redevelopment of Parliament Hill’s Centre Block and the construction of the new Ottawa Public Library. The company has also demonstrated a commitment to community engagement, exemplified by a $100,000 donation to Algonquin College’s Centre for Construction Excellence in 2009, supporting the development of a new trades training facility.Now, using innovative engineering solutions and collaborative strategies, Modern Niagara is bringing the Hard Rock Hotel & Casino’s ambitious vision to life. The Scope of HVAC & Sheet Metal WorkModern Niagara is playing a pivotal role in the transformation of Ottawa’s Rideau Carleton Casino into the Hard Rock Hotel & Casino Ottawa. The project encompasses a six-story, 150-room hotel, including 22 suites, a 1,800-seat Hard Rock Live theatre, and an expanded casino floor featuring 1,500 slot machines, 40 table games, a Baccarat room and high-limit gaming areas. Additionally, the venue will offer over 10 restaurants, bars and lounges, including the iconic Hard Rock Café and Council Oak Steakhouse. The anticipated completion date for the project is set for this year.As the mechanical, electrical and plumbing (MEP) contractor for this $350-million redevelopment, Modern Niagara is responsible for installing and integrating the building’s essential systems. This includes installing advanced mechanical systems to support the casino’s increased capacity. Their team is fabricating and installing extensive sheet metal ductwork, energy-efficient heating and cooling systems, and specialized ventilation to maintain air quality in gaming and entertainment areas.The company is deploying:Over 250,000 pounds of sheet metal ductwork to support proper airflow throughout the hotel, casino and entertainment spaces.Custom-fabricated ductwork and exhaust systems designed to maintain optimal indoor air quality, particularly in high-traffic casino areas.Energy-efficient HVAC units to regulate temperature and humidity for guest comfort while optimizing energy consumption.High-performance air handlers and ventilation systems to meet Hard Rock’s stringent indoor air quality standards.To ensure accuracy and efficiency, Modern Niagara is employing digital modeling and prefabrication techniques, allowing the team to manufacture HVAC components off-site before installation. The company is using MEP suspension solutions to achieve a 50% reduction in labor time compared to traditional methods. These products eliminate the need for threaded rods and unistrut systems, simplifying the installation of electrical conduit, cable trays, HVAC ductwork and piping systems.A key factor in the project’s success is Modern Niagara’s collaborative approach. By fostering strong relationships with stakeholders, the company ensures seamless integration of various trades and services. On this project, Modern Niagara is delivering sheet metal, insulation, plumbing and electrical services, showcasing their multidisciplinary expertise.The team is also using advanced technologies, such as transmitting 3D models directly to pipe profiling machines, as well as eliminating manual drawings and programming. This innovation is accelerating plasma cutting processes, potentially saving over 6,000 work hours annually and allowing the team to focus on higher-value tasks.Commitment to Community and CultureModern Niagara’s impact extends beyond construction. The company is dedicated to positively influencing Canada’s infrastructure and the communities where people live, learn, work and heal. Their culture emphasizes inclusivity and innovation, with values of passion, initiative, determination, professionalism and teamwork at the forefront.As the Hard Rock Hotel & Casino project progresses, Modern Niagara continues to use collaborative strategies, technological innovations and commitment to community engagement to set a benchmark for this and future projects. This redevelopment not only revitalizes an existing structure but also promises to enhance Ottawa’s entertainment landscape for years to come. 

ARCHITECTURAL: Detroit Firm Rebuilds Historic Tower’s Copper Crown

ARCHITECTURAL: Detroit Firm Rebuilds Historic Tower’s Copper Crown Custom Architectural Sheet Specialists (CASS) of Detroit won the 2022 North American Copper in Architecture award for their restoration work on the Summit on the Park Aquatic Center in Canton, Michigan. Most of us would be tempted to rest on our laurels after receiving recognition from the Copper Development Association, but CASS celebrated the prestigious win by sending key employees back to school. They attended one of the earliest courses of the iTi’s then-new Copper Soldering Strike Force Training. “When this copper certification came to fruition, I wanted Detroit to be one of the first participants in the process,” explains Glenn Parvin, owner of CASS. “I was on the SMACNA architectural steering committee. We sat around a table as long as 20 years ago because we were trying to develop a protocol for the iTi that meets all copper standards. It’s an old-world craft that is starting to fade away and we’re trying to bring it back.”Parvin’s focus on excellent copper work is paying off in a stream of copper-related projects and awards. Shortly after they completed the Strike Force training, his team used their enhanced skills to restore the high-profile copper roof of The Station at Michigan Central, a historic Detroit train station that has been reborn as an innovation and start-up hub. The project won CASS a second North American Copper in Architecture award, this time the 2024 award for Restoration and Renovation. “CASS Sheet metal has become quite reasonably known for historical restoration,” Parvin says.Months after they completed The Station, masonry contractor Akins Construction asked CASS to bring their skills to help rescue another Detroit landmark, the Detroit Towers. Parvin assigned the copper portion of the project to two young craftsmen who had graduated from Strike Force training and then gained an additional year’s worth of experience installing the roof of The Station. The Detroit Towers has been one of the most prestigious residential buildings in Detroit since it was built in 1925, but a 2022 windstorm tore away parts of its copper “witch’s hat” roof. The conical “witch’s hat” caps an 18-story curved column of windows with views of the Detroit River. The east side of the “hat” is accessible from the roof, but the most severe damage was on the west side, where there is a 200-foot drop. Akins initially planned to use a crane to reach the repair site, but quickly realized that scaffolding would be safer. They found a creative solution, engaging a subcontractor to construct an innovative scaffolding system that tied back to the roof by running directly through the copper cone. While the scaffolding kept the work crew safe, Parvin says it introduced new challenges to this “very difficult install.” The CASS team had to work around the scaffold throughout the project and could not replace the final copper panels until the scaffold was removed. Once the scaffold gave CASS full access to the “hat,” they saw why the structure had been vulnerable to wind. The original 1-inch snap-on riveted copper panels were installed improperly, which allowed rain to penetrate inside the roof for years. By the time wind exposed the inferior workmanship, the wooden framework was rotting away, and the soffit was falling off the building. The owners appreciated the need for a permanent solution and renegotiated the project to a full restoration. Due to the extreme weathering, CASS upgraded the entire structure. They strengthened the “witch’s hat” by replacing about 600 feet of one-by-threes and adding a new layer of 3/8-inch plywood. They replaced the damaged copper panels with an inch-and-a-half double-lock standing-seam tapered panel system, bringing it up to modern SMACNA standards, and they installed a new copper soffit“A properly installed copper roof should last about 100 years and is 100% recyclable,” Parvin says. The 8-foot finial that tops the “witch’s hat” illustrates his point. Akins Construction salvaged and cleaned the original finial, which CASS took to their shop for repairs. Restored to its original glory, the 100-year-old finial once again shines from the top of the historic property. Besides restoring the roof, the Detroit Towers needed extensive repairs to the masonry and windows. CASS worked with Akins to provide future access by creating dormers with door openings in the copper roof. “We had to flash them in and copper around them so that in the future somebody could open the door from inside the tower and install a swing stage beam,” Parvin says. “The swing stage access was critical to the needed restoration along the wall.”Parvin chose Revere Copper for this project. “We’ve only used Revere USA Copper in our career, largely because it’s American made, and I believe it’s the highest quality copper out there,” Parvin says.The copper is sold by the pound in flat stock, which CASS rolls and fabricates in the shop. “We custom-fabricate all copper used in our projects,” he says.Between the carpentry work and fabricating and installing about 2,000 square feet of copper panels, the Detroit Towers project brought CASS 1,000 work hours.