April 2015 eNews

PRESIDENT’S LETTER: Committees – Get Involved

Kevin Wensel
Kevin Wensel, SMA President

Kevin Wensel, Omega Products International

During the last couple years, the SMA Board has made many changes to the association in order to transform it into a truly national organization and be the go-to authority for the plaster industry. One of the most important changes was the creation of committees. There are a number of committees:

Three Coat: Covers all aspects of three coat plaster systems. Chairman: Nick Brown
One Coat: Covers all aspects of one coat plaster systems: Chairman: Mike Griffin.
Accessories: Covers plaster-related accessories, such as lath and weep screed. Chairman: Jeff Sacks and Bob Blaswich.

There are also SMA administrative committees on education, marketing, membership, and the golf tournament. These committees are intended to be the engines that move the SMA and industry forward. The committees should be a place for all members of the plaster industry (manufacturers, suppliers, applicators, design professionals, etc.) to discuss issues that are facing the industry and develop plans to make the industry stronger. Everyone benefits when the industry is doing well.

Unfortunately, the committees have not gotten off to a great start. The participation has been weak. These committees are only as good as the people in them. Without adequate participation they will never reach their full potential. I strongly encourage you to regularly participate and bring your ideas to the group. If you are not the proper person, please delegate the responsibility to the correct person within your organization. There is a great opportunity to work together to achieve great things. Please contact me, Norma Fox, or the chairman of the committees to get involved.

EXECUTIVE DIRECTOR’S REPORT: Changing of the Guard

norma s fox
Norma S. Fox, Executive Director

Norma S. Fox, SMA Executive Director

Well folks, we all knew there would be a time when I would retire from SMA… well it is that time. At the last board meeting I sat down with the board and explained why I am doing this and gave them a plan on how to find my replacement. The board of directors requested I initiate the plan, and I have already almost completed interviewing each member personally about how they see this position and what they would be looking for in a new Executive Director. This process will take about a year to complete from beginning to end. The board has asked me to be involved in this process until I complete training the new person. This person will not be an employee but rather come from an association management company (independent contractor). There are many of these firms with non-profit association management skills. A Request for Proposal will be mailed to these firms. A committee will be selected from the board to review the applications of those that respond. From this initial go round, three or four will be selected to come in and be interviewed by the full board. I will always be available if the board should need my services.

Many of you may not be familiar with what an association management company is so here goes. These are firms that manage nonprofit trade and professional associations for a fee. They are extremely knowledgeable in all the rules and regulations that “must” be followed and will file all the correct forms to state and national government agencies. In other words in order for this association to grow and go to the next level, that association must be run efficiently and effectively. SMA is getting ready to go to the next level.

It is hard to believe it has been 21 years that I have been affiliated with SMA. They have been wonderful years and I am so proud to see SMA start to grow and prosper. We are a lot different now than when I began. SMA has always been a national association, but it was operating as a regional association. We have worked hard and the board sees the vision of SMA now. With the addition of one-coat and lath and plaster folks, we have been able to form a committee-based association. The board is no longer doing all the business of the entire association — now they are overseeing each committee. Each committee chair gives their report at each board meeting. Any item involving money goes before the board for approval. All motions made and approved by the committee are reviewed and approved or not. Also any project I am working on is reported on at the board meeting, and the board provides direction, etc., to me.

Yes, I will miss you all. Any time any of you wish to visit, have a drink or lunch just call me or email me. Come see what the seniors are doing with themselves at Laguna Woods. Since I have worked my whole life, now is the time, while I can, to enjoy retirement and spend time with my two grandchildren. Two boys ages 3 and 7. They make me smile.

Hope to see you all at the May 20th lunch meeting at Antonello’s. Be sure to make your reservation on line.

SIGN UP NOW FOR OUR MAY 20 LUNCH MEETING

SMA storm water regulations meeting May 20

 

SAVE THE DATE FOR OUR 3RD ANNUAL SMA GOLF TOURNAMENT: September 17, 2015

SMA’s 3rd Annual Golf Tournament — coming September 17 — is a fun day of golf, camaraderie, food, fun and prizes! Don’t miss your opportunity to sponsor the SMA event and get your company name in front of hundreds … click the image below and sign up for your sponsorship by June 30 to ensure maximum coverage for your company name.

Stucco Manufacturers Association 2015 Golf Tournament Sept 17

 

 

 

FEATURE ARTICLES

SILOS: Not Just for Grain Anymore

Jerry L. Pozo – BMI Products

Silo. When I hear the term, my mind conjures up our great American Midwest or California’s Central Valley.

Rustic silos…those towering structures alongside a barn, on some back road through the American farmlands. They were influenced by grain storage pits of the “old world” and corn cellars of Native American. They were built of wood, fieldstone, tile, and brick, concrete and steel.

BMI Products
BMI Products silo on the job.

Today, silo has become a popular and common sight on urban jobsites, housing premixed and engineered products for the construction industry.

Europeans have used silos for dry construction products for over four decades. They dislike cluttered jobsites of pallets, sacks, bags, cartons, banding, jugs, and a huge pile of sand. There are more than 150,000 servicing the market from Sweden to Italy, and over 50,000 silos in Germany alone. The U.S. marketplace is just now recognizing and embracing this significant delivery system.

BMI Products
BMI Products silo on the job.

Since BMI’s entrance onto the U.S. Chicago scene in 1988, and the Milpitas, CA, West Coast market in 1996, many projects have gained acceptance from this method of delivery. Of course, standard 90 lb bags or 2,500 lb super sacks are also available.

BMI plaster, mortar and stucco are factory-made blends of sands and binders. Our automated batch system controls the mixing process of our dry materials to ensure the consistency of our products. The final product is tested in our in-house laboratory for quality assurance and is then transported as a dry, premixed product to the construction sites. Testing is done by an independent laboratory to confirm our own test results.

Bulk dry material like BMI 690 Premixed and Engineered Plaster is held in a 27′ silo on an 8′ x 8′ pad. A continuous mixer, electrical and water source are hooked up, and with a control switch we can begin mixing the product, and pumping to the walls and ceilings.

BMI Products
BMI Products silo on the job.

Obviously, the most significant factor of premixed and engineered products is quality control/assurance from start to finish. Also, it lessens the liability of the contractor from heavy lifting, bending, shoveling, and mixing errors. And finally it leaves jobsites clean, dry and uncluttered.

Sand is another issue. Many quarries are running dangerously low on quality sand, so suppliers are substituting river sand and pulverized rock. Much of this low quality material leads to excessive cracking.

One plaster expert has noted that with BMI products, many formulations of sand are possible. So different formulations for different applications are possible. Our sand is clean and well-graded, without those things that lead to cement/sand reactions.

Many of our plastering subcontractors report that once they use the silo delivery system, they will never go back to sand piles and bag materials again.

Our subcontractors also report: increases in worker productivity, less injury, reduced material handling, safer material storage and no damage due to weather conditions.

By eliminating field mixing, sand piles, job debris, and uncontrolled water, this process is a real advance for the construction industry and fits nicely into LEED requirements to prevent jobsite mess, and prevent pollutants from entering the storm drain conveyance system.

Today, construction industry professionals feel that premixed products and silo delivery systems will be a “big part” of the Future of Stucco, and other product applications.

Jerry L. Pozo, CSI, CDT, BS has over 35 years’ experience in the plastering industry. His background includes manufacturing, distribution, education, technical, specification review and consulting. He resides in the Foothills of the Sierras and covers the Pacific West Coast for BMI Products of Northern CA. Contact jlpozo@bmi-products.com.

 

Building Materials Manufacturer Making Big Jump in Space

Ben van der Meer, Sacramento Business Journal – February 27, 2015

A decade ago, a building materials manufacturer in Rancho Cordova looked into moving to a bigger space, with housing construction still on the rise.

Though he said Omega Products International would’ve survived if it had done so just before the severe downturn, company vice president and general manager Todd Martin said it’s fortunate the company didn’t make the move.

Instead, Omega is seeing an upturn again and making plans to move, into a larger industrial space the company bought in Sacramento.

“It’s been a rough six years, but the last two have been pretty good,” Martin said. “And we think we’ll see really good growth in the next four to five years.”

By July, Omega wants to be up and running at 8111 Fruitridge Road, which the company bought in January for $2.325 million, according to CoStar. Martin said the company is going from 15,000 square feet on about an acre in Rancho Cordova to 50,000 square feet on 5.5 acres.

“This enables us to modernize our production lines and incorporate some automation,” he said. Omega builds stucco, tile, grout and other essential pieces of new home construction, and works with most major homebuilders in the region, Martin said.

The new site on Fruitridge also will gain an acrylic stucco production line, moved from Omega’s Las Vegas factory. Being in Sacramento is better for access to raw materials and lessens rising freight costs, Martin said.

In the short term, Omega plans to add five employees to an existing crew of 25, and another five to 10 more in the next three to five years, he said.

“Now we see what’s on the horizon, and we want to get ahead of it,” he said. John Fondale of Newmark Cornish & Carey worked on the sale on behalf of both the buyer and the seller.

For the market, it’s a good sign when companies tied to homebuilding are moving back in and looking for bigger space, he said.

“Those that weathered the storm and have money can take advantage of pricing,” he said. “Those are great signs, when we’re getting manufacturing jobs here again.”

Ben van der Meer covers real estate, development, construction, transportation and the business of sports for the Sacramento Business Journal.

 

Construction Growth Pushing Rancho Cordova Company To Look For Larger Warehouse

Ron Jones, CBS Sacramento – March 2, 2015

Construction across the nation is making a recovery after years of recession cost jobs and company hours. Back in 2008, a lot of construction companies were really hurting because of the economy. But Omega Products International in Rancho Cordova didn’t give up.

“The construction industry is alive and well again,” Dan Longstreet said.

He says construction material moving on pallets are bringing in huge profits. “We’re sending material into Oregon, Washington, Idaho,” he said.

The small company sells commercial and residential stucco, tile, and stone products to contractors across the country.
A recent report by the Associated Press found construction projects increasing nationwide, with hot markets in North Dakota, Utah, Houston and Miami. It also says some contractors are offering signing bonuses of $5,000 to $10,000 for skilled workers.

Longstreet says things are great now, but the 2008 economic crisis had them troubled. With fewer customers, things looked bleak. But now the company is getting so much business, it’s moving out of a 15,000-square-foot warehouse in Rancho Cordova and into a 50,000-square-foot facility in South Sacramento. The sales manager anticipates even better days ahead.

“We’re happy to bring in more jobs from Sacramento into our location. We love Sacramento — this is where we’ve made a lot of our growth happen,” he said.

The new facility will be open in about four months, adding 15 more jobs.

Ron Jones began his television career in 1988 while working as an officer for the Oakland Police Department. Not only did he patrol the streets of Oakland as an officer but he was featured in cable television commercials related to crime prevention. He was later given the opportunity to write, produce, and host numerous crime prevention and public affairs shows for the City of Oakland called “Bay Area Crime Watch” and “OPD on TV”. Those shows featured wanted people in Northern California and crime prevention tips. In 2004, Ron joined CBS13, where he is currently the weekend anchor. Contact Ron at rjones@kovr.com.

 

Construction Enforcement Coalition Enforcement Update: Department of Insurance Investigators Efforts Produce an Arrest for Workers’ Comp Fraud Estimated at over $11M

David Murillo, Executive Director of CALPASC

The Construction Enforcement Coalition commends the Department of Insurance for actively pursuing an investigation that led to the arrest of two Southern California garment CEOs and a CPA accused of workers’ compensation fraud in excess of $11M in losses. The accused allegedly conspired to under report $78.5M in payroll to multiple insurers including State Fund.

Though this bust was not in the construction industry, it nonetheless is a commendable example of the Department of Insurance keeping battling the underground economy at the forefront.

For the full story, please click here.

David Murillo, Executive Director of CALPASC. Phone: 916.704.2638. Email: dmurillo@calpasc.org.

 

New “Quickie” NLRB Election Regulations on Union Representation Go Into Effect April 14, 2015

Hill Farrer – Employment Updates – April2015

On March 31, 2015, President Obama vetoed a congressional resolution which sought to overturn new National Labor Relations Board (NLRB) rules, calling for expedited elections as to whether an employer’s employees will be represented by a labor union. Congress had criticized the new NLRB rules as creating “ambush” elections which do not give the employer sufficient time to communicate its message and educate employees about the disadvantages of union representation.

The new NLRB election rules will now go into effect on April 14, 2015. The new rules will shorten the time between the filing of an election petition by a union seeking to represent an employer’s employees and the election date. Under the current rules, employers normally had approximately 40 days between the filing of an election petition and the election. Under the new rules employers will have only 14 to 21 days between the filing of the election petition and the election. This is very little time for an employer to turn around employees who have been persuaded to support a union.

The new rules also require the employer to provide the NLRB with voters’ personal contact information within two days of notification of petition, and the employer must file a complete statement of position on issues affecting the election within seven days of filing of the petition. Litigation of voter/employee eligibility issues will be deferred until after the election. The employer will not have an NLRB determination of who is or is not a supervisor until after election. This lack of NLRB guidance before the election campaign may lead to unfair labor practices during campaign, because an employer is responsible for the acts of its supervisors.

Employers should respond to the new NLRB rules by making an assessment of their employees’ susceptibility to unionization and educating employees about the disadvantages of unionization before a union begins an organizing campaign.

Your labor counsel at Hill Farrer can provide guidance on how to avoid unionization prior to a petition, and how to effectively respond to the shortened campaign period prior to NLRB elections.

Hill, Farrer & Burrill LLP. 85+ Years of Advice and Solutions – Business Litigation & Transactions. http://hillfarrer.com/.

 

Construction Enforcement Coalition Breaking News: Little Hoover Commission Releases Report on Underground Economy

David Murillo, Executive Director of CALPASC

The Little Hoover Commission has released its anticipated report on the Underground Economy.

The report entitled “Level the Playing Field: Put California’s Underground Economy Out of Business,” makes 15 recommendations to give competitive advantage to compliant businesses:

  • Accountability. The Governor should designate a limited-term leader with authority to coordinate state efforts and eliminate barriers preventing a successful fight.
  • Enforcement. The Commission calls for improved enforcement efforts to reduce the scale of the underground economy which has grown and thrived.
  • Education. The state should develop new consumer education and outreach programs to reduce demand for underground economy goods and services. It also should better educate public officials on the harm caused by the underground economy and their role in curtailing it.

To see a copy of the full report, click here.

For an executive summary, click here.

For a press release, click here.

CALPASC is in the process of organizing a Coalition meeting in Sacramento to review the report and recommendations. Stay tuned for meeting details.

David Murillo, Executive Director of CALPASC. Please contact Bruce Wick with any questions at 909.793.9932 or email bwick@calpasc.org.

 

 

PRESS RELEASES FROM OUR MEMBERS

Sika Continues Its Fast Global Expansion in Mortars — Acquisition of U.S. Producer BMI

Sika has agreed to acquire mortar producer BMI Products of Northern California Inc., a U.S.-based company active in production and sales of a full range of mortar products and systems for the construction industry. The acquisition will accelerate Sika’s global expansion in the fast growing mortar business with an extended new supply chain in the Western U.S. The BMI plant brings Sika’s mortar footprint to 76 factories worldwide.

BMI Products of Northern California provides an excellent production platform and has developed a comprehensive range of mortar products and systems for the construction industry. The company is located in the city of Milpitas, California (San Francisco Bay Area) and, together with Sika’s Santa Fe Springs production facility near Los Angeles, provides strong access to the large and fast-growing California construction market.

The acquisition of BMI perfectly complements Sika’s growth strategy in North America and greatly strengthens its supply chain for mortar products sold throughout the Western United States. It also provides Sika with a known brand of specialty products, and an established customer base in the large California market.

The acquisition represents a further step in the expansion of Sika’s mortar business. With 31% growth in 2014, mortar is Sika’s strongest growing product area as well as one of the key elements of the Strategy 2018.

Christoph Ganz, Head of region North America: “This acquisition is a further acceleration of the implementation of our global mortar strategy. It provides us with a solid production platform to further expand the mortars business in the Western US. We are proud to welcome the new employees into the Sika team and we are excited about growing our business together.”

Sika is a specialty chemicals company with a leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing and protecting in the building sector and the motor vehicle industry. Sika has subsidiaries in 90 countries around the world and manufactures in over 160 factories. Its approximately 17,000 employees generated annual sales of CHF 5.6 billion in 2014.