Lowering Carbon Footprints In 2022, SMACNA member United Mechanical, headquartered in Rockland, Massachusetts, helped a Massachusetts pharmaceutical production facility lower its carbon footprint and increase the energy efficiency of its building. United Mechanical partners with general contractors and property managers to devise economical solutions to meet HVAC needs and aggressive construction schedules. The company offers a range of services, including sheet metal, coordination and fabrication, as well as in-house BIM capabilities and managing projects with VDC. Its growth to a full-service fabrication facility since 1991 is a result of a focus on details, as well as a commitment to service and craftsmanship. United Mechanical prides itself on the fact that 80% of its business comes from repeat clients. This pharmaceutical facility needed complex mechanical solutions, and United Mechanical had 30 years of experience to bring to the job.SOME BENEFITS OF USING PHENOLIC DUCTThis pharmaceutical production facility required more than 8,000 square feet of Thermaduct’s Thermaround outdoor round ductwork to give the application’s HVAC system a smooth aluminum interior with an R-12 phenolic insulated value. By using phenolic materials in this application, the medical facility was able to see the following benefits at its new location:Lower Embodied Carbon Materials – The use of phenolic materials and fabrication practices allowed for a reduced carbon HVAC system when compared to traditional metal and insulation alternatives.Weather Resistant Cladding – United used Thermaround’s 1000-micron vinyl cladding and its assembly process to ensure a continuous cladded surface with minimal seams. Phenolic duct is fully sealed in each corner with a continuous bead of sealant supplied by the manufacturer in all four corners of the duct section. Longitudinal seams can be secured on the exterior with panel fasteners, which are metal clips with teeth that grip into the phenolic and are sealed with UL 181 approved tape.Closed Cell, High R Value Insulation – Using phenolic materials with high-insulated values helped the facility meet energy code requirements, using less space.Low Leakage Flanged Connections – United Mechanical had a relatively easy installation process using offset couplings and flanged connections. The manufacturer offers online training for tips on proper installation of these connections.DUCTWORK’S ROLL IN LOWERING EMBODIED CARBONLowering embodied carbon of HVAC systems is a growing conversation in the HVAC industry.With such a heavy dependence on high carbon producing materials such as rolled steel and glass insulation, ductwork has many times been left out of that conversation. In 2004, when phenolic materials entered the U.S. Market, a true low carbon alternative became available to contractors and building owners. This material offers less embodied carbon during manufacturing of the insulated panels and lower energy usage for fabrication into ductwork.United Mechanical’s teamwork philosophy enabled its project team of designers, engineers, subcontractors and vendors to work cooperatively, ensuring that the end results exceeded the customer’s expectations.
The Power of Collaboration One of the core values of membership is association and collaboration, especially within organizations like SMACNA. Proactively sharing resources and knowledge between member contractors is emerging as a best practice to ensure success on all levels.Contractors have numerous opportunities to collaborate and advance our shared interests. Given the evolving attitudes of government stakeholders regarding public works and infrastructure, it is increasingly critical to work together on bidding and executing these projects. Different SMACNA contractors possess varying levels of experience and skill sets. For instance, one contractor might have extensive experience in federal or public sector contracting. At the same time, a different contractor might be new to this field but have valuable technical skills and expertise crucial for successfully executing bids and projects. If these contractors operate independently, they may struggle to meet customer demands, especially regarding scheduling. However, by collaborating, even in the form of a joint venture or as a subcontractor, they can enhance their competitive edge, ultimately benefiting the client, who will have access to a diverse range of expertise offered by signatory contractors. This collaborative approach will maximize value for the client.Additionally, we have opportunities to collaborate with our partners at SMART. Labor and management must work together — labor provides the workforce essential for successful project execution, while management identifies and delivers the work needed to utilize our employees effectively. I understand this may sound repetitive, but it’s crucial to note that SMACNA and SMART align on 90% of our issues. This was the approach I adopted with Mike Coleman, now the General President of SMART, during our collaboration in Cleveland. We focused on finding solutions and avoided counterproductive disputes over minor issues. Workforce challenges affect everyone in our industry; we must unite to address them. There is much we can do regarding recruitment, education and talent retention. The perception that college is the only pathway to success is changing. A dynamic and motivated workforce is seeking fulfilling careers that support financial stability and family life without incurring debt. By continuing to partner with our labor associates to attract, retain and develop these individuals, we can take significant steps toward ensuring the long-term success of our industry and all SMACNA contractors.Once again, thank you for the trust you continue to place in me and stay safe. Tom Martin, SMACNA President
Credit Unions Make For High-interest Projects While visitors to CommunityAmerica Credit Union branches are focused on their finances, when Todd McLellan of Standard Sheet Metal (SSM) stops by, he focuses on something else — the buildings’ sleek metal-clad white entryways with crisp lines and sharp corners. That’s because McLellan, a senior project manager at SSM, and his team were responsible for several of the branches’ architectural details. SSM has been designing, making and installing sheet metal for industrial and custom projects in and around Kansas City, Missouri, for over 40 years. But the SMACNA member’s expansion into architectural projects like CommunityAmerica Credit Unions is a more recent development, according to Roger A. Reed, the company’s marketing director. “While the company’s initial focus was on fabricated components, we made the shift early on to include architectural work as well,” Reed says. “In the last 20-plus years or so, we’ve really made a push toward more architectural work.”Reed credited company Vice President Shawn Mann for SSM’s expansion into architectural projects. “He was really aggressive at bidding on architectural work,” Reed says. For much of its history, SSM mostly handled what Reed calls “small, one-off” projects in its 5,000-square-foot sheet metal shop. “We had a press brake and a shear, some hand tools and that was about it,” he says. Today, however, SSM is a much different — and much bigger — operation. It has a 40,000-square-foot shop with equipment such as a 10,000-watt fiber optic laser cutter that can easily slice through 1.25-inch steel plates. The shop also has a laser welder, punch press and a multi-axis routing table. About 40 employees, members of SMART Local 2, work in its sheet metal shop. Another 35 or so do field installation. Annual revenue is around $20 million. HVAC work was never a focusUnlike many SMACNA members, SSM has never focused on HVAC work, preferring to fabricate items like elbows and square-to-rounds for other area contractors without large sheet metal shops. “Our shop has the capability to do a wide variety of components,” Reed says. He estimates that 60% of the company’s revenue is architectural sheet metal with the remainder being custom fabrication work. Expanding into architectural work has paid off with SSM winning several CommunityAmerica Credit Union projects from general contractor A.L. Huber Construction of Overland Park, Kansas.McLellan says they’re a great partner on the credit union projects.“They understand our capabilities,” he says. “We’re upfront with them on our timelines so they can incorporate that into their schedule.”Credit union project contracts range from $100,000 to $300,000, depending on whether its new construction or renovation of an existing building. CommunityAmerica Credit Union buildings have three basic styles, McLellan says, but they’re modified to fit the site or structure. “They’re not all cookie-cutter,” he says. “But it’s still that iconic white entryway — the white ACM (aluminum composite material) panel. That look is still there.”The “look” McLellan refers to is designed by local architects GastingerWalker&. Like A.L. Huber, they’re also great to work with, he says. “The architect’s very involved, and we work with them upfront on details,” McLellan says. “As we work with them, they are incorporating our advice — whether it’s flashing details or waterproofing. That collaboration makes them relatively smooth projects for us.” Reed says he’s proud of the work SSM does on these projects, even though they’re not as high-profile as some others, such as historic restorations or downtown skyscrapers, might be. “Part of what we do is what I call ‘the architecture of the every day,’” he says. “We’re doing fire stations, schools, public buildings and banks. So these are the buildings that all of us visit regularly. And so it’s kind of nice and exciting to see that kind of stuff. It’s great to do a museum or some other iconic structures around town, but these are buildings that our families visit and use every day, and we are proud of that.”
Expanding Horizons As the HVAC and sheet metal industry continues to evolve, adding commercial services has become a pivotal growth strategy for businesses looking to diversify their revenue streams, stabilize cash flow and attract top-tier talent. Thomas Montgomery, North Regional Director of Mesa Energy (dba EMCOR Services Mesa Energy), shared his expertise during SMACNA’s 81st Annual Convention in Palm Desert, California, providing invaluable insights into why and how businesses should take the leap into commercial services.About Mesa EnergyAs a licensed, full-service HVAC, building automation and retrofit contractor, Mesa Energy combines high-quality consulting services with efficient, cost-effective customized energy solutions. The company’s experience spans nearly every major industry. Mesa Energy targets quality and innovation in projects like the Molina Healthcare office towers in Long Beach, California, where a complete mechanical system retrofit led to a reduction in annual operating costs by $250,000.Building a Sustainable FutureMontgomery began his convention talk by highlighting the shift in market dynamics happening in the commercial space. “In 2024, the U.S. mobile service market is projected to hit $80 billion, and by 2034, it’s expected to soar to $146 billion,” he notes. This growth isn’t just a number; it represents opportunities for HVAC businesses willing to adapt.Adding commercial services allows HVAC businesses to tap into recurring revenue streams. Montgomery compares it to the utility industry. “When you build up a customer base with automatic billing, it becomes a continuous revenue-generating machine,” he says. This stability is particularly attractive in industries prone to seasonal fluctuations, offering a consistent buffer against downturns.The Value of Service Over ConstructionOne of Montgomery’s key points was distinguishing between mobile service work and traditional construction projects. He emphasizes that service operations require a unique approach. “Service is a reactive business,” he explains. “Your technicians need to be prepared to tackle unexpected challenges, often with limited lead time.”The financial upside is clear. Montgomery cites that while construction projects may yield a gross profit margin of 15% to 20%, well-optimized service operations can achieve margins upwards of 35% to 40% on average, with some repair work hitting 60% or more. “The numbers don’t lie,” Montgomery says. “Service work not only commands higher markups but also builds a loyal customer base that leads to repeat business.”Laying the Groundwork for SuccessTransitioning into commercial services requires careful planning and investment in the right tools, people and processes. Montgomery outlines several key steps:Leadership Expertise: “Having someone on your leadership team with a strong service background is critical,” he says. This ensures the operation is managed efficiently and aligns with the company’s long-term goals.Tech Training and Tools: Commercial service technicians require advanced training to handle computer-driven systems, injection tools and complex diagnostic equipment. Montgomery emphasizes investing in versatile technicians who can adapt to various scenarios.Operational Systems: From billing to dispatching, robust systems are essential for managing the fast-paced nature of service work. Montgomery recommends exploring modern solutions like Microsoft Dynamics to streamline operations.Customer Relationships: Building trust is crucial. “Your best technicians are not just good at their trade; they excel at customer service,” he remarks, sharing stories of technicians who became indispensable to clients through their dedication and relationship-building skills.Challenges and StrategiesExpanding into commercial services is not without its challenges. Montgomery acknowledges common hurdles such as pricing pressures, competition and the difficulty of finding and retaining skilled technicians. He stresses the importance of a well-thought-out compensation plan, including rewards for securing maintenance contracts. “It’s hard to be mad when you see those commissions rolling in,” he jokes.For businesses looking to fast-track their service division, Montgomery suggests acquisitions as a viable option. “Find a solid operation with good systems and people already in place,” he advises. This approach minimizes the growing pains associated with starting from scratch and offers immediate access to an established customer base.A Winning FormulaThe long-term benefits of adding commercial services go beyond financial gains. It positions businesses as full-service providers, increases valuation and creates opportunities for internal growth. “This isn’t just about making money; it’s about building a legacy,” Montgomery says.As businesses look ahead, the message from Montgomery is clear: Adding commercial services is not just a strategy; it’s a necessity for those aiming to thrive in an increasingly competitive industry.
Embracing Innovation in Construction Construction has been an industry that both embraces innovation and resists change. I know that seems at cross purposes, but it has generally been true. We like to solve complex problems and figure out how to build great projects. That being said, many of us don’t like changing our processes or embracing new products — mainly because they often seem riskier than what we know. We are successful because we build good systems, and changing those systems is hard because they are core to our businessWhen I was a kid, I recall my dad getting our company’s first computers in the late 1970s and early 1980s. The TRS-80s were pretty cool if limited in function. 4 kilobytes of RAM were a big deal in 1977! The first spreadsheets made business and estimating easier, but they really did not change the game. I recall Dad customizing spreadsheets and programming them to make them work. The technology worked but really wasn’t that much better than hand counting and recording the counts on a piece of graph paper. Adding them up was a bonus and maybe helped limit some errors. It was also great to be able to edit a document and then print it, instead of having someone decipher and type whatever was handwritten.The early computers and related software were less meaningful than the “briefcase” phone in Dad’s truck, allowing instant communication with the office and with some foreman. The phone just made us work a little faster; it really did not change that much, but it did make it a little easier to solve problems. For a roofer who had to make weather calls, it was invaluable. The point of these examples is that construction companies were some of the first non-tech companies to embrace computers and cell phones. The technology did not change our work much on day one. Still, the TRS-80 has become a souped-up computer or cloud server running Rivit, Procore and/or Autodesk. That briefcase phone now fits in the palm of your hand (or used too before Apple and others made phones big again) and has more computing power then a warehouse full of TRS-80s. Small early innovations adopted in the 1970s shape how we run our companies. Today, we are talking a lot about Artificial Intelligence. AI is about as far away from the TRS-80 as the sun is from Earth. Like that TRS-80 though, it is making some things easier — estimating and contract review come to mind. Same with data organization and workflows. We are adjusting to this innovation and creating new innovations around it. SMACNA started an AI task force in 2024, and I am very interested to see the resources that we produce to assist members. I hope you have already taken part in our programming in this area. Innovation means being open to new products, processes and technology. It also means being willing to change and move on from the “old way” of doing something. The goals of innovation are for projects to become more efficient, cost-effective, safer and of better quality. If a contractor can do that, they become more competitive and can do more projects — both in number and complexity.Innovation sounds great. Who doesn’t want to build amazing projects and become more profitable? Or work safer? The problem is that it is hard to do new things. There is a learning curve, and many new or innovative ideas might not work the first time or at all. It is hard to get over the idea that if it “isn’t broke, don’t fix it.” Those are the things that got us to where we are. Said another way, good enough can be the enemy of great, but trying to be great is not cost- and risk-free. Anyone who has gone through a tech implementation knows how hard it is to change — both processes and people.This edition of SMACNews has articles about innovation that provide members examples and ideas to consider as you grow your business. We have members, both large and very small, who run highly innovative companies. They have in common a strong understanding of their market niches, tolerances for risk, and commitments the pursuit of the better. Not every solution is for every company, and it is important that you clearly understand what you need, the problem(s) you are solving and the goal you have in mind. Aaron Hilger is CEO of SMACNA, bringing more than two decades of executive association leadership to this role. Hilger is focused on building a stronger, more competitive environment for all SMACNA contractors.
SACRAMENTO — Fleet owners subject to California Air Resources Board’s (CARB’s) medium and heavy-duty vehicle regulations must report annually to meet regulatory requirements. The reporting deadline is February 1, 2024. WHO IS IMPACTED?The Advanced Clean Fleets...
