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Glazing Contractors Association of BC Newsletter
THE CUTTING EDGE
News and Information for the Glazing Industry
December 2008
In This Issue
Volunteers
Interesting Articles
Education
Technical
Its the Law
The Economy
US Architects
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
Quick Links...
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.
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:
  • Protecting Glass During Construction: The Blame Game
  • IGMA Update
  • Caring for Today's Architectural Glass
  • GICC Plans Bigger Role in Energy Code Advocacy
  • GMC Activity Summary
  • The Debate over Commercial Glazing System Thermal Performance
  • Summer & Future Conference Schedules
To view these articles click here
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.

Hoping you have a GRINCH free holiday season

grinch
xmas window
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
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.
Its the Law
Liquor and Legal Risk
By Norm Streu and Chris Hirst
scales justice
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.

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
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."
Sincerely,
Have a great day!!

Zana Gordon
Executive Director
GCABC