solutionsTHE OFFIC IAL PUBLICATION OF THE PLUMBING-HEATING-COOLING CONTRACTORS—NATIONAL ASSOCIATION | VOLUME 1, ISSUE 4 www.phccweb.org

FOUNDATION’S NEW PHCC ACADEMY®

BUSINESS AS USUAL WILL NOT KEEP WORKING

USING TECHNOLOGY TO TRANSFORM OPERATIONS

+

PH

CC

Isolating the Technology That Really Will Make You More Efficient, More Relevant, More Competitive

FALL 2017 CONFERENCE

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A MANUFACTURER’S PERSPECTIVE ON INNOVATIVE DESIGN STRATEGIES

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DEPARTMENTS 6 President’s Message Shifting Gears: My Perspective

on Technology

8 EVP Message Value-Added Service

Opportunity: Technology Installation and Integration

10 Editor’s Note A Reminder of Our Good Work

18 Legislative Report All Eyes on Health Care, Hurricane

Relief Funding and the Federal Budget; PHCC Priorities Wait in D.C.

T HE OF F IC IAL PUBL IC AT ION OF T HE PLUMBING-HE AT ING-COOL ING CON T RAC TORS — NAT IONAL ASSOC IAT ION | VOLUME 1, I SSUE 4 w w w.phc c web .o r g

solutionsPH

CC

20 Regulatory Report Federal Regulations in the

New Administration

30 Foundation Source Foundation’s New PHCC

Academy®: Leveraging Technology to Remove the Barriers to Classroom Education

38 Chapter Excellence Working Together to Provide Online

Apprenticeship Training

40 PHCC Calendar of Events

41 Index of Advertisers

PHCC Solutions is published for the Plumbing-Heating-Cooling Contractors—National Association. 180 S. Washington Street – Suite 100 – Falls Church, VA 22046. Phone: (703) 237-8100 or (800) 533-7694. PHCC Editor: Charlotte Perham, Vice President of Communications & Marketing

Published by: 5290 Northwest 1st Place, Gainesville, FL 32607; Phone: (800) 369-6220; Fax: (352) 331-3525; www.naylor.com.Publisher: Troy Woodham, Editor: Antonya English, Project Manager: Adam Lingenfelter, Marketing: Taylor Hicks, Advertising Director: Rick Jones, Advertising Sales: Bobby Ehlers, Ken Kepler, Bill Lovett, Matthew Yates, Jason Zawada, Layout & Design: Manish Dutt Sharma© 2017 Naylor, LLC. All rights reserved. The contents of this publication may not be reproduced by any means, in whole or in part, without the prior written consent of the publisher.PUBLISHED SEPTEMBER 2017/HCC-Q0317/9145

PHCC Solutions Copyright 2017 is the official magazine of the Plumbing-Heating-Cooling Contractors—National Association. PHCC members receive four issues a year as part of their membership dues. Non-member annual subscriptions are available for $30. Visit www.phccweb.org/store to subscribe. Comments/permissions: communications@naphcc.org

FEATURES 12 Industry Spotlight

A Manufacturer’s Perspective on How Innovative Design—and Work—Strategies Prove Better for Customers, Better for Contractors, Better for Infrastructure

14 Business as Usual Will Not Keep Working Automation, Robotics, Artificial Intelligence and Modularization Have Changed the Landscape of the Contracting Industry

22 Pre-fabrication Provides Competitive Edge How Technology Improves Coordination, Precision, Safety, Efficiency and Productivity

28 Transforming Operations Learn How an Integrated Approach to Technology Has Helped This Contractor

32 Profile: James Terry Dedicated to Sharing the Importance of Technology to Help Others Succeed

14

Cover Photo Credit: EtiAmmos/Shutterstock.com

Look for this symbol, and “connect” in person at PHCC’s CONNECT 2017

with many of the expert sources who contributed to these articles!

PHCC Solutions Digital Exclusive: The PHCC Annual Report for 2016–2017 can be found at

(www.naylornetwork.com/hcc-solutions).

1-800-533-7694 • WWW.PHCCWEB.ORG 5

P R E S I D E N T ’ S M E S S A G E

few months ago—when summer’s soaring temps

were posing a heat exposure safety threat to scores

of workers, including mine—PHCC—National

Association sent members a notice of a new OSHA safety

app that helps employers like me check the local heat index

and relevant protective measures. The app took just seconds

to download on my phone and on my employees’ devices.

I didn’t consider the app some revolutionary technology trend;

to me, it was just a more efficient way to help me do my job.

This experience reminded me of how technology has become

such an ordinary part of our day. It’s not a trend anymore; it’s

woven into every part of our business now. The choice today is

in how you can best leverage that technology for good, including

making your business more efficient; offering customers

more convenience, flexibility and cost-savings; and protecting

society—and the environment—in ways that we would not have

imagined 20, 10 or even five years ago.

That’s not to say that navigating this new technological

world isn’t still overwhelming. As a p-h-c contractor, where

do you begin? What’s working well…and what’s not worth the

investment? How do you isolate the technology that really will make you more efficient, more relevant, more competitive?

Yes, there are like-minded professionals out there with the

answers, but how do you find them…and connect with them?

Start BIGThose are the questions that fuel what we’re offering through

PHCC. Our job is to know your pain points, anticipate your

needs and the needs of your customers, and provide you

with the right resources. When it comes to technology, your

first stop should be PHCC’s Technology Business Interest

Group. This new portal is exactly what you need to engage

with those who share your same challenges (and others who

have the answers!). Join the discussion in the “Contractor

Talk” section, where your peers are sharing their experiences

on topics like cloud storage security. Plus tap into solutions

from companies that are already providing valuable training

sessions. (In July, PHCC partnered with CEDIA to present a

webinar on how to “Increase Your Business by Building a

Technology Integration Team;” if you missed it, then be sure

to download the webinar.)

Say Yes!Like I mentioned before, technology itself is no longer a

trend; it’s shifting your mindset. Every week—through

our newsletter, Member Updates and educational

opportunities—PHCC delivers ways to do jobs better,

smarter and faster. We’ve come to the point where you

can’t afford to click on by; instead say “yes” to new ways

of working…or at least explore what’s out there and see if

it’s a fit. Have you navigated PHCC’s Labor Unit Database,

for example? It simplifies your estimating process and

helps you prepare accurate bids so you can become more

efficient and profitable! When you receive opportunities

from PHCC Corporate Partners—like a recent one about the

Milwaukee Tool Tick™, a tool and equipment tracker—do you

investigate how that could streamline your business and save

you money?

As a PHCC member, leveraging technology is not

re-inventing the wheel. In most cases, we have the

resources you need; you just need to set them in motion,

and that even includes helping you attract a tech-savvy

workforce so you can stay competitive moving forward.

Our www.phccareers.com website, for example, is

strategically built and already loaded with targeted videos,

statistics, links, training opportunities and more that you

can share at chapter meetings, industry events and on social

media. It’s there; it’s done; it’s proven effective. It’s waiting

for you.

Of course, nothing beats the face-to-face connections

you make at industry events like PHCC’s seminars, chapter

meetings, conferences and CONNECT. Those are breeding

grounds for what’s really happening—and working—in your

industry…and it’s not just in the formal sessions but in those

valuable conversations in the hallways and gathering spots

before and after. Say “yes” to those opportunities. Be part

of the give and take. Watch what happens to your business

when you make engaging with an open mind part of your new

business philosophy. ●

PHCC—National Association President Patrick Wallner also is

president of Wallner Plumbing, Heating & Air Conditioning in

Redding, California.

SHIFTING GEARS: MY PERSPECTIVE ON TECHNOLOGY

ABY PATRICK WALLNER

PHCC—NATIONAL PRESIDENT

6 SOLUTIONS • FALL • 2017

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E V P M E S S A G E

s I wrote back in August of last year, there is a great

opportunity for p-h-c contractors, whether they

are in new construction or in service and repair,

to consider offering technology installation and integration

as a value-added service to their clients. PHCC sees a real

need to provide resources to help contractors consider this

opportunity and has partnered with the Custom Electronic

Design and Installation Association (www.cedia.org)

to provide these materials through a new web-based

“Technology Business Interest Group” (www.phccweb.org/

tech-big) that all PHCC members can access through the

PHCC website. As a member of this group, you’ll have access

to specific technology-oriented information, resources and

discussion opportunities to help you expand your knowledge

and contact base.

PHCC and CEDIA recently co-hosted a webcast, “Increase

Your Business by Building a Technology Integration

Team,” during which Dave Pedigo, CEDIA vice president,

Emerging Technologies, talked about the importance of

using technology to improve businesses today by enhancing

productivity and efficiency; meeting growing customers’

needs as integrated technology adoption is exponentially

accelerating; attracting tech-savvy workers; and simply

keeping up with the competition.

From a larger perspective, there is greater importance on

using technology to protect society by repairing and replacing

an aging infrastructure and providing water and energy

conservation options. Parenthetically, we cannot overstate

the PHCC members’ impact on technological advancement

in U.S. history when we consider, for example, that when the

air conditioner was first invented by Willis Haviland Carrier

in 1902, air conditioning contractors developed and adhered

to professional installation standards to protect the public’s

health and safety. In response to outbreaks of Legionnaires,

PHCC members advocated for codes and standards to help

prevent any future occurrences. Throughout the years, PHCC

members continue to provide input on the development

of many innovative products by serving on manufacturer

advisory boards.

According to an online 2017 Market Research Report on

the HVAC and Plumbing Contractors Industry: “HVAC and

plumbing contractors are adapting to major technical change

from both manufacturers and end users. Utility companies

are integrating technology to monitor and control systems.

Within commercial or industrial buildings, the HVAC and

plumbing systems are also part of the buildings’ monitoring

system, which is also using technology to diagnose and

repair problems in the system. Manufacturers are seeking

competitive advantage and therefore are designing products

with increased technological depth and functionality. For

contractors, this means more training and recruitment than

ever before—not only must they understand their trade, but

they must be proficient with the latest technologies being

used by utilities, building managers, and manufacturers.”

Back in 2015, I talked about technology integration growth

being driven by sustainable design requiring high performance

construction and green building techniques and materials

intended to minimize a building’s impact on the environment

and conserve natural resources. Some driving factors over

the last several decades include: newly enacted green

building regulations leading to Green Building standards and

codes; the existence of government stimulus programs, tax

incentives and increased public awareness; EPA regulations

requiring compliance with emissions standards; the need

to continuously upgrade components of the system during

scheduled maintenance; and LEED (Leadership in Energy and

Environmental Design) standards. This means opportunities

for plumbing and HVAC contractors who can employ emerging

“green” technologies that differentiate themselves from their

competitors by minimizing water usage, improving air quality

and helping the owner arrest rising energy costs.

PHCC members can differentiate themselves from their

competitors as the InternetofThings (IoT) continues to

expand. They can provide value to their clients by offering

the disintermediation of technological options that integrate

seamlessly and effectively. Bob Harden, principal at the Harden

Group, described the IoT as “…purchasing 10-20 different

services from 10-20 different vendors using 10-20 different apps

with 10-20 different user interfaces. If that’s the way IoT goes, it

will be a long, tough slog to Nirvana.” CEDIA will collaborate with

PHCC to develop meaningful content for PHCC members who are

interested in offering technology within the p-h-c industry either

on their own or by partnering with a technology integrator who

can specify and install these systems. ●

Michael Copp, MA, MIRM, is Executive Vice President of

PHCC—National Association. A respected leader among

construction industry trade association executives, Copp and his

team work to ensure that PHCC contractors are the best choice for

professionalism, reliable products and knowledgeable service.

VALUE-ADDED SERVICE OPPORTUNITY: TECHNOLOGY INSTALLATION AND INTEGRATION

ABY MICHAEL COPP

PHCC EXECUTIVE VICE PRESIDENT

8 SOLUTIONS • FALL • 2017

And just like our members have been

doing since PHCC began more than

130 years ago, we must continue

to embrace progress and leverage

technology to continue our work for

the common good…and for the good of

our businesses.

That’s what fueled the stories in

this issue of PHCC Solutions. Among

them, you’ll hear from a successful

contractor who has taken an integrated

approach to technology to streamline customer service,

control inventory, manage online reviews and more.

You’ll discover that pre-fabrication may be the only way a

contractor will be able to compete in the future, plus learn

the investment in technology, equipment and people that

it requires to be successful. You’ll hear from one of the

most respected experts in our industry that “business as

usual will not keep working.” And you’ll discover how our

own Educational Foundation is responding to that change

right now with a new learning management system that is

removing barriers to classroom education.

As Andy Bruce, president of PHCC of South Dakota,

mentioned recently in a chapter publication (by the way,

he has the same American Standard poster hanging in

his office!): “Things continue to change. We use motion

sensors and touch pads, and we operate our heating systems

using our cell phones. But our primary responsibility is to

keep things safe for the people we serve.” ●

Charlotte R. Perham is Vice President of Communications &

Marketing for PHCC—National Association. She specializes in

strategic communications of news, trends and events in the

construction industry.

E D I T O R ’ S N O T E

T he well-known American Standard poster that

hangs in our entrance area at PHCC—National

headquarters motivates me and other staff

every morning. It—together with images and accolades

throughout our office of both plumbing and HVAC

apprentices and professionals hard at work—reinforces that

our industry truly is working for good.

When the poster was created, World War I had just

ended, and hundreds of thousands of young men from rural

America were returning from the war no longer content with

outhouses. The plumbing industry responded with a series of

clever trade ads encouraging contractors toward renovation

work. This poster, introduced by the Standard Sanitary

Manufacturing Company (later American Standard Plumbing),

was among the most famous.

The image on the poster of a young plumber standing

in front of a globe—with a simple “The Plumber Protects

the Health of the Nation” message—may date back nearly

100 years, but, for PHCC and its members, it remains a

constant reminder of our mission: to advance the industry for

the health, safety, and comfort of society and the protection of

the environment.

That mission hasn’t changed. What has changed—and

what will continue to evolve—are the techniques and tools

and technology we use to do our jobs, to fulfill that pledge.

A REMINDER OF OUR GOOD WORK

Happy Birthday to Us!

It’s been one year since we launched PHCC Solutions

magazine. As always, we welcome your feedback…and

we encourage your input on ideas for future content.

What solutions are you seeking? Share them with us at

communications@naphcc.org.

COLLABORATION

Turns REACH into IMPACTWhether the collaboration is among PHCC members, among local, state and national

leaders, or between PHCC and legislative and regulatory agencies, real change happens when

we get together. Our top accomplishments in 2016–2017 are just some of the ways we’ve

joined forces to make our members’ businesses stronger and our future brighter.

It’s all part of PHCC’s 2016–2017 Annual Report, presented as a Digital Exclusive at

www.naylornetwork.com/hcc-solutions.

BY CHARLOTTE R. PERHAM

PHCC EDITOR AND VICE PRESIDENT OF COMMUNICATIONS & MARKETING

10 SOLUTIONS • FALL • 2017