Mechanical Hub recently spoke with Bradford White Corp.’s Bruce Carnevale, president and chief operating officer, about the state of the economy short term, and a bit about the industry in general. Here is an excerpt from the Q&A. How do you see the short-term economic outlook? a) Residential Plumbing — This should remain strong, due Read more
Whats New
Mechanical Hub recently spoke with Bradford White Corp.’s Bruce Carnevale, president and chief operating officer, about the state of the economy short term, and a bit about the industry in general. Here is an excerpt from the Q&A.
How do you see the short-term economic outlook?
a) Residential Plumbing — This should remain strong, due in part to a good economy and the steady increase in home renovation projects. New home construction levels also remain stable, providing additional residential plumbing opportunities.
b) Commercial Plumbing — Feedback from specifiers, engineers, contractors and wholesalers, as well as key indicators from resources such as the Architectural Index, indicate that the commercial/mechanical contractors are largely backlogged through 2018. Also, it is important to note is that the bipartisan focus on infrastructure, will likely have both a short and long-term positive impact for commercial plumbing work.
c) Residential Hydronics — With the ever-broadening array of residential hydronic products, particularly combi-style options, the economic outlook is positive. Additionally, the same economic trends that will affect residential plumbing in 2018 come into play to enhance the outlook for residential hydronics.
d) Commercial Hydronics — Similar to commercial plumbing, all indications are that the prospects for commercial hydronics will remain solid through 2018. Between currently scheduled workloads and national, state and local infrastructure initiatives, the commercial hydronics outlook should remain healthy well beyond 2018.
What are the top indicators you examine to form these projections?
We aggregate a variety of data to help us arrive at our projections regarding our business and the industry at large. First, we have worked with a leading economist and his team over the past several decades to develop a proprietary trend report that gives us both a national and regional perspective on future sales and growth opportunities. We also examine industry related stock trends and look at data from other sources such as the National Association of Realtors, U.S. Census reports and the Dodge Report, just to name a few. Lastly, we look at these data points relative to the valuable information we get from our specifier, engineer, contractor and wholesaler customers.
What are some trends/factors that look positive—technology, construction, housing starts, units sold, etc.
There are a lot of good signs, most telling of which are the industry statistics that show higher sales, with water heaters in particular being up more than 5% over last year. Construction and housing trends also remain positive for the time being and economic growth is steady. We are also seeing some regional shifts in terms of energy utilization, most notably a move away from fossil fuels to electricity. The positive trend here is that as energy advocates and utility companies work more closely with manufacturers, we can be more responsive in terms of developing and providing the most relevant and efficient products possible to address consumer needs.
Conversely, what are some things that might concern you as you look to the future?
In a heated economy with GDP growing up to 3% and beyond, there could be a tightening of labor markets, increases in material costs, and a more accelerated rise in interest rates. A dramatic rise in interest rates could slow down spending, particularly when it comes to first-time home buyers, a trend that is already a concern as many of these potential home buyers are dealing with significant college debt. We also cannot ignore what’s happening on the global front, as the potential for more international conflicts or disturbances appears to be on the rise.
With year one under the new President in the rear view, in general, and from a company standpoint, how would you review his performance?
From a practical standpoint, his ability to address regulatory issues affecting domestic business growth has been a plus. His administration has also brought about a higher level of cooperation between the regulatory bodies and industry, helping to moderate what were once primarily adversarial relationships. By doing so, we can work together to bring about policies that are ultimately in the best interest of consumers. I think this change alone has had a significant impact on 2017’s economic growth, even more so than the anticipated tax reform benefits. Overall, despite the clumsiness of some of the administration’s messaging that has tarnished their results, the President deserves credit for taking action on the issues he promised would be addressed.
What are some things that directly affect the industry that you would like to see a more concentrated effort?
There should certainly be continued focus on modifying or even eliminating certain regulations that have stifled economic growth, particularity here in the United States. This would help companies like Bradford White, who prefer to keep their manufacturing facilities in this country. Also, a more coordinated effort between industry organizations to address common concerns would be beneficial. Various manufacturers, trade organizations and wholesaler associations are already doing great things on their own, but their combined strength would likely carry greater weight, thus driving quicker, more universally acceptable results. Another area of concentration that we can positively affect together is product training. Manufacturers are steadily increasing their efforts in this area, but doing more to work directly with trade organizations and suppliers on training initiatives would likely bring be more effective.
Built in the early 1970s, the 96,000-square-foot De Chantal Apartments needed to have its plumbing system entirely repiped — and not just because of its age. Water supplies, once drawn from a nearby lake, now came from private wells, whose water chemistry played havoc with the copper tubing, especially the solder joints where the vast Read more
Built in the early 1970s, the 96,000-square-foot De Chantal Apartments needed to have its plumbing system entirely repiped — and not just because of its age. Water supplies, once drawn from a nearby lake, now came from private wells, whose water chemistry played havoc with the copper tubing, especially the solder joints where the vast majority of the leaks originated.
The remedy? Repipe the entire building with PEX-a tubing (“AquaPEX”), manufactured by Uponor. Backed by a 25-year transferable warranty, this material will not pit, scale or corrode and is highly resistant to freeze damage — a key consideration in Saranac Lake, located in the far northern section of Upstate New York.
The complex chose Uponor AquaPEX for the re-pipe due to its fast installation and durability that is resistant to corrosion and scale buildup.
Not only did Hall Plumbing & Heating use the smaller diameter PEX pipe (1/2-inch and 3/4-inch), but also the larger diameters — up to 3 inches — required in a multi-story building like De Chantal.
The copper piping, which was ultimately replaced, exposed to corrosion. The original copper plumbing in the senior living complex began to corrode when the city changed its water source from a nearby lake to private wells.
De Chantal owners understandably wanted to restore the plumbing system as quickly as possible. Hall Plumbing & Heating was able to meet their demanding project timeline and stay within budget, while also cutting its labor costs in half, according to owner Tom Hall. The flexibility of the pipe made it easier for installers to maneuver the pipe runs through the older building’s tight spaces, while maintaining minimum distances between fittings. In addition, using ProPEX fitting system enabled Hall’s crews to comply with the local building-code prohibition of the use of torches in the ceiling.
Thomas Hall, owner of Hall Plumbing and Heating
Apple Valley, Minn. — Uponor Corporation (Uponor) announced that it will invest an additional USD $10 million in Phyn, a joint venture between Uponor and Belkin International, bringing its total investment in the company to USD $25 million. With this second round of funding, Uponor establishes a 50 percent ownership in Phyn, with the other Read more
Apple Valley, Minn. — Uponor Corporation (Uponor) announced that it will invest an additional USD $10 million in Phyn, a joint venture between Uponor and Belkin International, bringing its total investment in the company to USD $25 million. With this second round of funding, Uponor establishes a 50 percent ownership in Phyn, with the other 50% owned by Belkin International.
Phyn will use the funding to further accelerate market penetration and scale the company’s operations as it prepares for commercialization in late spring of its debut product Phyn Plus, smart water assistant + shutoff. As a joint-venture company, Phyn will be consolidated into Uponor’s financial accounts using the equity method.
“Uponor is proud of the innovative work that Phyn is doing, and we see tremendous potential in the solutions that Phyn is bringing to market,” added Jyri Luomakoski, president and CEO, Uponor Corporation. “Our additional investment represents our commitment to the shared vision for the future of intelligent water systems.”
“This funding from Uponor further cements Phyn’s position as the leading solution in the smart water space,” said Ryan Kim, CEO of Phyn. “It comes at a pivotal time for our company and allows us to grow our world-class team further as we continue to dedicate our efforts to solving some of the toughest challenges facing water, so that we not only protect our homes, but also become better stewards of water, our most precious natural resource.”
Phyn Plus is an intelligent water monitor that attaches to the main water line of homes. Through a combination of high-definition pressure sensing and machine learning, Phyn Plus detects leaks and plumbing issues and can automatically shut off the main water supply when needed to prevent costly damage. Phyn Plus will be available for purchase in the U.S., starting late spring, for USD $850 exclusively through the Uponor Pro Squad, a nationwide network of expertly trained plumbers and water specialists.
“Our objective with the joint venture has always been to help progress our business and the plumbing industry into the digital era with better ways to use water more intelligently,” said Bill Gray, president, Uponor North America. “That focus remains the same today, with this additional investment simply underlining both our belief in this partnership and our commitment to being innovation leaders in this space for many years to come.”
Franklin Park, Ill. — Recognized for his longstanding contributions to the industry, the Plumbing Contractors Association (PCA) inducted Sloan Executive Chairman, Charles (Chuck) S. Allen, into the Chicago Area Plumbing Industry Hall of Fame at a gala held on January 26, 2018. A third generation descendant of William Elvis Sloan, Allen joins the company’s founder Read more
Franklin Park, Ill. — Recognized for his longstanding contributions to the industry, the Plumbing Contractors Association (PCA) inducted Sloan Executive Chairman, Charles (Chuck) S. Allen, into the Chicago Area Plumbing Industry Hall of Fame at a gala held on January 26, 2018.
A third generation descendant of William Elvis Sloan, Allen joins the company’s founder on the distinguished list of hall of fame awardees, after a career devoted to the global manufacturing of smart, sustainable commercial plumbing products.
“On behalf of the entire company, I am so honored to join the elite fraternity of accomplished professionals in the Plumbing Contractors Association Hall of Fame,” said Allen. “And on a personal level, to stand alongside William Elvis Sloan on that list is all the more gratifying. I could not have achieved this accolade without the help of those before me and all the bright minds walking the halls at Sloan today.”
Allen started his Sloan career in 1972 on the shop floor running machines. After earning an MBA from Dartmouth’s Tuck School of Business, he returned to the company as a sales representative in New York, working directly with wholesalers and contractors. For years, he applied his talents in the sales and marketing departments and was instrumental in Sloan’s partnership with the Plumbing-Heating-Cooling Contractors Association (PHCC) and Mechanical Contractors Association of America (MCAA). He served as president and CEO of Sloan from 1977 to 2008.
From l to r: Graham Allen, Charles S. Allen, Jim Allen and Kirk Allen.
He assumed the title of executive chairman in 2008. While his three sons—Kirk, Jim and Graham—currently serve as co-president and CEO, Allen has remained an integral part of the company, contributing and helping to define Sloan’s strategic direction.
Under Allen’s guidance, Sloan has become a global brand synonymous with innovative, smart, sustainable and water efficient products. He was a pioneer who ushered in electronic plumbing technology such as battery operated sensor flushometers and faucets, at a time when manual flushometers and faucets were the industry norm. Chuck’s vision and persistence regarding electronic sensor technology heralded a whole new industry segment, that today is embraced by plumbing manufactures, contractors and end users.
“Water Connects Us® is more than just Sloan’s tagline,” Allen said. “Every day, around the world, Sloan products connect the systems that manage our planet’s most precious resource. We want to preserve the environment and continue to be the global leader for smart, sustainable restroom solutions that are as beautiful as they are innovative. We strive to elevate the total commercial restroom experience.”
https://youtu.be/v6zuSsrnaTY This video demonstrates how to properly solder and braze leak-free joints between copper tube and copper alloy flanges Read more
This video demonstrates how to properly solder and braze leak-free joints between copper tube and copper alloy flanges.