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Industry Today

Is it the Election or the Euro?
Thursday, May 17, 2012 - 09:21

As we march closer to November and the coming decision of the American people to re-elect the president or choose a new individual, how much will the outcome affect the construction industry? How much of the current financial crisis in Europe will truly affect the American construction industry? As I talk to many contractors around the country, optimism has returned, but will the uncertainty of a close election and the European market make their optimism turn into worry about another decline in new construction start-ups?

Many political strategists speak about the benefits that a Democratic president might have on the economy versus a Republican president, and vice versa. The main question that I ask when it pertains to forecasting future business is, “Where is the money?” The president’s party affiliation has little to do with those who actually control the purse strings of construction projects.

Most projects are built with money that has been financed through a bank. Last time I checked, most of the big banks give money to both political parties and both candidates. Banks and other institutions have been doing the typical “hedge your bet” strategy for years. The president’s political leanings rarely seem to influence the release of funds from the banks to the building owner who wishes to build something. So, what might cause a large bank from releasing funds to the construction industry for new projects?

Answer: A Financial Crisis. The current upheaval in the European market is not just causing the Dow to drop a few points. People in high places are waiting to see what the European Union will do to save the Euro. While the American mentality leads most of us to think we are not influenced by the politics and issues of the European continent, I would argue that we all need a good history lesson.

When the U.S. economy falters, the European economy stumbles. When there is political upheaval in Europe, it causes the U.S. to readdress its foreign policy. The world has shrunk so much due to technology, that it would be difficult for the banks in the U.S. not to tighten their lending policies in order to cover their possible losses in the European market. The impact will be felt in the construction industry just as it will be in all U.S. industries. The depth of that impact will not be known for many more months or even years.

Written By: Gary W. Jayne II, Sales Manager for Flannery, Inc. and a Historical Observer (but not a certified Economist).

 

Stop Ruining Your Aluminum Trim (Part 2)
Thursday, March 22, 2012 - 10:47

Last week I began by discussing how expensive aluminum trims can be ruined in a stucco wall system when proper installation techniques are overlooked. While our website, www.flannerytrim.com, outlines proper installation of trims, it is important that certain design techniques are followed in order to ensure the most aesthetically pleasing effect of an aluminum reveal.

1. Have the right tools for working with aluminum extrusions. A carbide tip blade with a 100-120 teeth ratio is preferred for cutting aluminum extrusions. I would also recommend spraying a blade lubricant on the blade between each cut. This will reduce your blade ware and will prevent the blade from melting the aluminum instead of cutting through it.

2. Try not to jamb one reveal into another when creating a horizontal and vertical intersection. It is much more appealing for aluminum trims to be mitered and pieced together rather than jammed and overlapped. Aluminum trims cut cleanly and allow the installer to create crisp intersections and joints. Always make sure your outside and inside corner miters line up and are tight together. You may want to consider ordering factory fabricated intersections and corners. They are cut and welded in the factory, which reduces your “in the field” labor costs. A clear silicon or sealant is preferable when sealing all butt joints.

3. If you do need to overlap and jamb horizontal and vertical reveals together in order to create an intersection, make sure you are consistent with which line continues and which one is broken off. Typically, many trade books prefer the vertical reveals on a plaster wall to be continuous while the horizontal trims stop and start as they come across the vertical reveal plane. If the installer is not paying attention they will alternate between the two and this creates a sloppy look that even someone outside the trade will recognize as an inconsistency.

4. Make sure to mask and protect all aluminum reveals from the stucco cement application process. A vinyl tape is preferable since they typically leave the least amount of glue residue when removed. Also, determine where your trowel man is going to trowel the stucco to, in relation to the aluminum reveals on the wall. If the reveals have the typical 3/16” plaster keys, then you have to determine whether or not you want to protect that little flange or cover it with stucco. Too often, half of the reveals’ stucco keys are covered with stucco while the others are not. This is another inconsistency that will need to be avoided.

These four practices are minor ways that every contractor that works with aluminum trims will want to consider following. Everyone at Flannery knows how expensive aluminum trims can be as well as just how beautiful they can make a wall appear. With the right planning and effort, the expense of aluminum plaster trims will be well worth it for the building owner as well as the contractor’s reputation.

Written By: Gary W. Jayne II, Sales Manager for Flannery, Inc.
 

Stop Ruining Your Aluminum Trim (Part 1)
Friday, March 16, 2012 - 15:30

From a distance, any building with aluminum trim looks great. Even a small ¾” Plaster Channel Screed reveal creates a special aesthetic in a plaster wall system. While galvanized reveals can create the same appearance, they lack a certain crispness that only an aluminum extrusion can produce. The unfortunate side to aluminum trims is the lack of care that some installers take when they are cutting and piecing these reveals together.

Everyone knows the saying, “the devil is in the details,” and while that can seem like a negative, sometimes it is a positive expression of how construction should be done. Any wall system can look good from a distance, but what happens when someone gets up close to that wall? Can they see the lack of care the installer took when they cut and mitered the trims? Can they see “out of plumb lines” and gaps between the trims? These are all things that can make a wall look shabby and cheap.

Issues such as these are what all installers have to address since the architect or designer of that wall system chose aluminum plaster trims for a reason. Designers know the value of using aluminum extrusions to create the right look and they also know that they are specifying a more expensive product than alternative trims. Too often, that more expensive trim can be wasted on a poor installation practice. Next week I will address specific ways aluminum trims can be installed in order to protect their valuable appearance in a stucco wall system.

Written By: Gary W. Jayne II, Sales Manager for Flannery, Inc.

Have we Seen the End of the Golden Age of Construction?
Monday, November 7, 2011 - 12:33

As the year “creeps” closer to its end on December 31, Flannery is fortunate enough to say that Gross Sales are up from last year’s numbers. This is despite a customer base that continues to be pessimistic about the future of the construction industry. We all continue to wonder if 2012 will be something special or will we continue to be in “slow-motion” as we try to crawl back from the brink of an industry collapse?

Many construction insiders are concerned that without any improvement in residential construction, the rest of the industry may continue to be stagnant. It would be great if someone would do a survey of construction professionals, similar to a “consumer confidence” survey, which asks industry insiders about their view of the current and future state of the building industry. Publicly, I think that most contractors are optimistic because they are bidding on a lot of work, but privately they are concerned about the New Year.

I love to talk with the veterans of the construction industry. It is almost like talking to a World War II veteran in that they have great stories of the sacrifice and triumphs in our industry from years gone by. Many of them talk of the good times of “building without limits” and “two years of backlogged work”. Every job was a winner back then, unless you screwed up royally on the estimating side of the job.

Those days are long gone now. These veterans now turn away possible work, not because they are too busy, but because they cannot risk having a loser on their hands. The jobs they do take have been bid three to four times and they get them out of loyalty from the builder as much as they did on their numbers. It is an age where things may improve, but as one veteran likes to say, “It will never be like it was”. Has the Golden Age of Construction passed us by?