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Construction Market Shifts: How Members Can Respond
The
construction market has changed considerably in a relatively short
period of time. We all know construction is a cyclical industry and
the prudent contractors have been preparing for this stage of the
business cycle. While the next fews months may be more challenging in
searching out construction opportunities, we know that this stage too
will change and the market will be more robust. In the meantime,
prudent contractors should consider the following as they respond to an
increasingly volatile economic climate.
Diversify your operations.
Contractors who can operate in a range of sectors will be better able
to ride the ebb and flow of the markets. We are already seeing
companies diversify out of residential construction into other sectors,
such as infrastructure, industrial and commercial projects.
Determine your true strengths as a company and market how you can add value to a project.
As
we move to a scenario where construction costs are going to be
carefully monitored, companies that can contribute to improving the
bottom line of projects will be in high demand.
Focus on improving productivity.
Over the last few years, we have seen declining productivity, primarily
due to an influx of younger, inexperienced workers. As these workers
become more proficient, employers need to focus on ensuring their
workforce is as productive as possible, by encouraging their workers to
enage in training, utilizing better tools and processes or with a
combination of the two.
Select your projects carefully.
Connecting to the right projects will be key. Be prepared to actively
pursue business opportunities by utilizing services such as VRCA's
planrooms and pre-bid information services, by building strong
relationships with others in the supply chain and by paying close
attention to opportunities as they arise.
This
next stage of the cycle should not be cause for panic or engaging in
counter-productive behaviour such as low-balling projects, "buying
jobs" and acting unethically. Contractors will have to bid their jobs
carefully and will have to pay more attention on ensuring all of their
costs are controlled and contained. But engaging in unethical practices
serves no one and will only result in a race to the bottom.
There
are challenges ahead but there will also be tremendous opportunities to
pursue. While declines in building activity are seemingly inevitable,
the market is expected to maintain a position higher than just a couple
of years ago. The strong growth period we've experienced should see
most contractors through the period ahead. The underlying economic
fundamentals of this province are among the strongest in North America.
BC's stable, prudent government is in an enviable financial position.
And our province's attractive business climate should result in a
strong rebound in construction activity that lets us pick up where we
were.
By, VRCA |
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Volunteers Needed!
GCABC
is looking for members to join the various committees. If you have a
special talent or are interested in supporting and assisting your
association please contact Zana Gordon at 604.588.0245 or via email at zgordon@gca-bc.org.
Committees to Join
- Social
- Education
- Marketing
- Membership
- Foundation
Remember this is your association so take some time and help to make it a strong organization.
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Interesting Articles and Newsletter links The American Architectural Manufacturers Association has some interesting articles in the May 2008 newsletter. You will find a case study on solar control LowE glass as well as:
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Protecting Glass During
Construction: The Blame Game
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IGMA Update
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Caring for Today's
Architectural Glass
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GICC Plans Bigger Role in
Energy Code Advocacy
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GMC Activity Summary
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The Debate over
Commercial Glazing System Thermal Performance
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Summer & Future
Conference Schedules
To view these articles click here |
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Education - VRCA Course offerings available to GCABC Members.
The VRCA and its members are committed to lifelong
learning and to providing training opportunities for career
development, skill enhancement, safety, and entry level into the
industry.
The Education Department works with
the membership to identify regional training needs and utilizes the
resources of Construction Organizations, and both public and private
trainers to provide workshops and seminars to the construction industry
in the lower mainland.
For further
information on the training opportunities provided by the VRCA and the
Construction Industry click any of the following:
http://www.vrca.bc.ca/page/education.aspx |
GCABC Health and Safety Manual
Don'f forget that GCABC now has a health and safety manual available for their members only. This manual is designed to provide your company with a
personalized and structured Occupational Health and Safety Program that will
assist in reducing accidents and ensuring compliance with Occupational Health
and Safety regulations. Created in response to recent changes to legislation,
this manual is of tremendous value in ensuring a safe and productive
work-site.
Included in the Manual are samples of policies, report forms
and checklists that are commonly used by glazing contractors and their
employees.
This manual will be of enormous benefit in ensuring that
everyone in your company is fully informed on Occupational Health and Safety
requirements and work as a template for developing your companies health and
safety program. This will assist in receiving the WorkSafeBC rebates. To order your manual click here.
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Hoping you have a GRINCH free holiday season
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Greetings!
Welcome to the December issue of the Glazing Contractors Association of BC's monthly enews.
The Glazing Contractors Association of BC wants to wish all of you the best of the holiday season and New Year.
Warm Wishes for the Holiday Season and the New Year Zana Gordon
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Technical Department Texas Glass Company Goes Live - ERP Software Leads to Automation, Communication and Extra Capacity
by Richard Porayko, Simplicity Computer Solutions
M3 Glass Technologies in Irving,
Texas, started tempering in July
2005 and it didn't take long before it grew into new capabilities and new technologies. "M3's first tempering furnace went online
and we made the investment to temper our own glass for our own consumption, for
our own installations (through sister company Mammen Glass and Mirror) and for
our own sales," recalls Chris Mammen, president of the company. "We grew so
quickly that we realized we needed to transition into a fabricator and not a
glass and mirror company that we've been for 50 years. The first step was to
have a new identity. We came up with M3 Glass Technologies."
The next step was to increase capacity and
throughput through technology and automation. In early 2006, M3 went live with
an enterprise resource planning (ERP) software package. An ERP system is one single integrated information software system
that serves the needs of the entire company, from sales to production to
human resources to finance. Historically, these departments generally have
their own systems that are unique and designed specifically for the ways that
each department works. However, ERP can handle transactions, maintain records,
provide real-time information and facilitate planning and control. ERP essentially is a standardized set of
best practices for performing a variety of tasks. What ERP Can Accomplish
To remain competitive, M3 Glass
Technologies invested in this business management software. "We were looking to
put less paper out on the floor for one thing, and implement bar-coding,"
Mammen explains of the company's decision to invest in ERP. "We got to the
point with all of our fabrication capabilities that there was a dozen copies of
each work order circulating around that needed to be tracked manually through
the plant. So we were looking to
automate, reduce our paper usage, increase our information flow with feedback
to the sales side so that our salespeople could check on order status and
vice versa, so our scheduling people could look ahead for orders that haven't
hit the plant floor yet." In order to reduce paper usage, many ERP
systems are written to accommodate common forms of digital documentation such
as AutoCad files, Microsoft Word, Microsoft Excel, PDFs, photographs and
electronic scans of original paperwork. The system stores everything digitally,
reducing the amount of paper a company consumes. Since ERP is designed to share
information, the software simplifies the need to label and catalog digital
documents. Such storage also allows the software to act as a document
management system. To help increase information flow, ERP systems are built to
integrate the data and processes of all of the company's various departments
into one single system that uses a unified database
so that each department can more easily share information and communicate with
each other and also store data for various functions found throughout the
organization. In addition, this type of software is able to provide feedback to
the sales team by allowing sales staff to quickly and easily check customer
order status, history, pricing, credit/A.P. information, tax status and energy
surcharge rates, and provide them access to user-defined customer relationship
management information. Advanced sales reporting is available, including sales
forecasting by customer or product in dollars, square feet and weight, from
some packages.
M3 Glass Technologies adopted ERP software
to increase its information flow.
Some systems include customer relationship
management tools, which allow users to take and share notes during
conversations with customers complete with follow-up calendars and scheduled
auto-email reminders. They can also be setup for customer-specific instructions
such as cutting tolerances or work/shipping instructions. Contemporary systems
include marketing tools such as mass emailing and mass faxing. Mammen sees
integration with equipment as an added benefit, as it is one of the things that
they are gradually adding. For example, M3 Glass Technologies is planning on
utilizing an optimizer software that it expects to eliminate the bridge between
the software and the equipment.
Taking Action
When M3 made the decision to integrate
software, action was taken quickly. "We left our previous software system cold
turkey," Mammen says. "Actually we were using Quickbooks® for our financial package
under the old system so we just went into bridging [the new system] into
Quickbooks®. That was a nice part of the implementation. We weren't changing
our entire business. The financial side of our business stayed as a solid
foundation with minimal changes so the only thing that changed was how we
bridged into it. That made it a lot more doable. We didn't have to worry about
keeping the books straight and keeping the glass going through the plant." Mammen
explains that the software had the most dramatic effect on throughput. Extra capacity enabled M3 Glass to start
laminating in April 2008. "Every piece of laminated has to be run as two lites
through the plant. So now we have the capacity to do that. Our growth
wouldn't have been possible without that change." Mammen adds, "We are bidding
and doing a lot of laminated work, which opens up whole new markets. It drives stuff
through the rest of our plant as well. The same thing we laminate is going to be
polished or tempered or bent or DecoTherm ® printed or fabricated or any
combination of those items." Mammen continues, "The software really has done what we were expecting it to do. We have found that it has a lot more
capabilities than what we are able to implement in a short time so we are slowly
adding functionality that is already available."
Managing Change
Mammen looked at several different
software suppliers when he shopped for an ERP package. He looked at criteria
such as how long the companies had been in the industry, price and the
familiarity of companies with the glass industry. When asked about his overall
experience with the implementation, Mammen comments, "I've been part of several
implementations over the years and compared to the other ones, I thought it
went very smoothly. It wasn't without some problems, but it went very smoothly,
comparatively speaking ... I think the hardest part of any implementation is
setting our own people's expectations on our end. I was doing that for months ahead
of time, telling people that hadn't been through an implementation before,
'You're not going to come into work on Monday morning and turn it on and it
works. It's not like buying a copy of Quicken® and you can just sit down and
start using it. We're going to have to set it up to adapt it to our business,
we're going to learn how it works and we need to customize it.' But I thought
that because of the preparation of our mindset in advance ... it really went off
well."
Mammen can't stress "change management"
enough. "Make sure your people are prepared well ahead of time. Most people
don't like change-I do. For the people that don't like it, it is scary, it is
intimidating and it's a big stress on top of any other stress they have going
on. You just have to manage that and let calmer heads prevail. Don't get wound
up and bent out of shape when someone says, 'Hey, I entered this order and
now's its gone.' 'Well, no, it's not gone, it's in there somewhere, let's think
it through and find it, something got changed.' Someone would say a document
wouldn't print and we'd look into it and find it printed down the hall at the
other printer. Simple things. It's the little things that go wrong, the things
that are going to go wrong anyway. Some people tend to see it through the lens
of 'this is the new software' and that makes everything a bigger problem. And
you ask the same people later if they would like to go back to what we were
using before and they always say no." Rich Porayko is the sales &marketing director for Simplicity Computer Solutions (SCS) in Ajax, Ontario.
SCS supplied M3 Glass Technologies with its ERP system.
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Its the Law
Liquor and Legal Risk
By Norm Streu and Chris Hirst  You
can reduce your party-planning stress by preparing strategies to deal with
potential drinking and driving before you invite your friends or employees to a
party where liquor will be served. In
a seminal decision released in 2006, the Supreme Court of Canada determined
that social hosts do not, as a general rule, have any responsibilities
regarding their guests' alcohol consumption. Unless the intoxicated guests are
under age, or the social host has actual knowledge that an intoxicated
attendee intends to drive, or does something "extra" to create a risky
environment, a social host will not incur liability in the event a partygoer is
subsequently involved in an accident. Where
a social host has actual knowledge that a partygoer is intoxicated and
intends to drive, an obligation to take positive action to prevent that person
from driving will arise. Actual knowledge means that the social host
knows (or can reasonably presume) that a person is intoxicated and sees them
preparing to drive, knows they are planning to drive, or has some other similar
knowledge beyond mere speculation. Social
hosts have also been found liable for creating a "risky environment" where
guests have been encouraged to participate in a risky activity (such as a
dangerous sport) in addition to the provision of and consumption of
alcohol. The Court has however been
careful to point out that merely providing alcohol or allowing guests to bring
alcohol to a party is not sufficient to attract liability for a social host. While
not legally required, the prudent social host may alleviate their worries with
respect to drinking and driving by taking any of the following steps: - Ensure
guests have pre-arranged rides or accommodations
- Offer to
call a taxi for a guest that appears intoxicated
- Request
that guests without a designated driver turn over their keys on arrival
- If
under-age persons are attending, ensure safeguards are taken to prevent
these guests from consuming alcohol.
Significantly,
employers who host a party for employees have more responsibility to monitor
alcohol consumption and to prevent drinking and driving. Factors that can
affect whether an employer may have exposure to liability include: - Whether
the party is on work premises or during work hours;
- Whether
the employees typically drive to and from work;
- Whether
the employer has actual knowledge that an employee intends to drive
after the party while intoxicated.
Where
a party occurs on work premises, or during work time, the employer will have a
heavier burden in monitoring employees as the employees are considered to be
under the "control and supervision" of the employer. However, where a party
occurs in a private setting after work hours, a positive obligation on the
employer may be lifted. A
prudent employer-host will take active steps to ensure that employees do not
drink and drive. Commonly, employers will arrange for alternative
transportation to and/or from a work party for employees wishing to consume
alcohol at the party. Such measures can include: - Handing
out taxi chits or offering to reimburse taxi fares;
- Arranging
for carpooling, designated drivers, or another means of "group"
transportation;
- If
an employee is causing concern, additional measures include calling a
taxi, arranging for the employee to go home with a sober guest, or taking
away the employee's keys.
By
factoring these few, but critical, points into party-planning, whether you are
an employer or social host, you can better ensure the enjoyment of all your
guests, as well as limit your own liability. Norm Streu is the Executive Vice-President & General
Counsel of the LMS Reinforcing Steel Group and the former chair of the Vancouver Regional
Construction Association. Chris Hirst is
a partner and the leader of the Construction & Engineering Group at the law
firm Alexander Holburn Beaudin & Lang LLP.
If you have any questions about this article, or any construction law
related issue, please feel free to call Chris at (604) 484-1700. This article originally appeared in, and is reprinted with
the permission of, the Journal of Commerce.
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The Economy
Wages, salaries and benefits earned by workers in British Columbia inched
ahead 0.6% (seasonally adjusted) in the third quarter of 2008. Nationally,
labour income advanced 0.8%. Alberta (+1.8%), Saskatchewan (+1.3%) and Nova Scotia (+1.3%) were the only provinces
that showed increases above the national average.
Data Source: Statistics Canada
The value of BC's exports totalled $3.1 billion (seasonally
adjusted) in October, up sharply (+9.0%) from September following two months of
declines. While all commodity groups registered increases, a jump in the value
of energy products (+13.8%) accounted for nearly half of the overall increase.
Increased machinery, equipment & automotive shipments (+13.5%) as well as
industrial & consumer goods (+8.4%) were also prime contributors to the
rise in total value of exports. Exports of agriculture & fishing products
jumped ahead by nearly one-tenth (+9.7%) while forestry products (+2.3%) were
up more modestly.
Exports to the US surged (+11.0%) in October with
a significant rise in energy products (+34.7%) fuelling the increase. Exports
to destinations other than the US
rose 6.9% as demand for machinery, equipment & automotive goods (+26.4%)
and industrial & consumer goods (+17.8%) shot ahead.
Canadian exports inched ahead for the second straight month
in October to $43.5 billion, up 2.5% from September's total. All sectors with
the exception of automotive products contributed to gains made. The downturn in
the automotive sector was reflected in Ontario's
weaker export figures.
Data Source: BC
Stats & Statistics Canada
Lumber production by BC's sawmills continued to fall,
dropping 16.9% in September compared to the same month a year earlier. While
production of lumber at Coastal sawmills nearly doubled (+97.9%) output at
Interior mills, representing more than 85% of total production for the province,
continued to slide (-23.2%).
Data Source: SC Cat no. 35-003-XWE
The number of new motor vehicles sold in British Columbia was virtually unchanged in
October as increased sales of new trucks were completely offset by lower demand
for passenger cars. Nationally, sales were off 0.9% (seasonally adjusted) with
eight provinces experiencing declining in sales. Only Saskatchewan
(+5.6%) and Manitoba
(+2.2%) recorded increased sales.
Data Source: BC Stats & Statistics Canada
The number of housing starts in BC plunged 31.0% in
November to 22,300 units (seasonally adjusted at annual rates), the second
straight month of double-digit declines. Nationally, housing starts were
off 18.8%, with Ontario (-29.3%) and Alberta (-17.4%)
contributing greatly to the decline. Starts were down in most parts of the
country.
Data Source: CMHC
British
Columbia's New Housing Price Index (NHPI)
declined 0.5% on a year-over year basis in October, the first downturn observed
since April 2001. In Vancouver, contractors'
selling prices decreased 0.4% while the price tag on a new home in Victoria slumped 1.1%.
Data
Source: Statistics Canada
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US Architects Report Increasing Adoption of Green Building
Autodesk, Inc. and the American Institute of Architects (AIA) have
announced the results of the 2008 Autodesk/AIA Green Index, an annual
survey that measures how AIA members are practicing sustainable design,
as well as their opinions about the green building movement. This
year's index shows an increase in the implementation of sustainable
design practices from architects and building owners. In addition, it
shows that architects' clients have experienced a doubling in the
market demand for green buildings over the past year as well as
positive shifts in architects' attitudes toward their ability to impact
climate change. A major finding of the 2008 Green Index was that 42 per cent of
architects report clients asking for green building elements on a
majority of their projects, with 47 per cent of clients actually
implementing green building elements on their projects, an increase of
15 per cent from 2007. Client demand remains the leading driver for
green building, with 66 per cent of surveyed architects citing client
demand as the primary influence on their practice of green building.
Architects believe that the primary reasons their clients are asking
for green buildings are reduced operating costs (60 per cent),
marketing (52 per cent) and market demand (21 per cent, up from 10 per
cent in the 2007 survey). The full Autodesk/AIA Green Index report is available at www.autodesk.com/green. "We
are encouraged to see the continued rise in demand for green buildings,
and that architects are responding to this demand by increasing their
practice of sustainable design," said Jay Bhatt, senior vice president,
Autodesk AEC Solutions. "Autodesk is committed to developing software
that makes sustainable design easier and more efficient, and it is
rewarding to learn through this survey that 41 percent of architects
are using software to help predict and evaluate the environmental
impact and lifecycle of their buildings." In response to the
rising client demand for green buildings, architects are increasing
their use of certain sustainable design practices. According to the
survey, 34 per cent of architects are now implementing green or
vegetated roof coverings on more than half of their new projects,
compared with seven per cent of architects in 2007. Also, 39 per cent
are using renewable, on-site energy sources, such as solar, wind,
geothermal, low-impact hydro, biomass or bio-gas on over half of new
building designs, compared with just six per cent last year. Architects
indicated a significant increase in their use of design software over
the past year to help predict and evaluate HVAC operating costs (39 per
cent, up from 31 per cent in 2007), conduct energy modeling and
baseline analysis (33 per cent, up from 29 per cent in 2007) and
evaluate and explore alternative building materials (35 per cent, up
from 20 per cent in 2007). "The results of the Autodesk/AIA Green Index
survey are encouraging because it shows that clients and the market are
realizing the bottom-line benefits of sustainable design," said
Christine McEntee, EVP and CEO of the AIA. "The AIA will be adding to
our various resources to help accelerate the adoption of sustainable
design principles by both clients and design professionals, and
advocating at the local, state and federal level for energy-efficient
buildings will continue to be our main legislative priority." |
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Sincerely, Have a great day!!
Zana Gordon
Executive Director GCABC
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