PRESIDENT’S LETTER

Substantial Changes to Residential Building Envelopes: Title 24 Updates Coming
Nick Brown, Merlex

Stucco manufacturers are reporting an increase in the use of “one-coat” stucco systems, driven by changes in the California energy code, commonly known as Title 24 … And the upcoming cycle of Title 24, due to be released in 2013 and effective in 2014, will make this trend stronger. The draft 2013 Title 24 regulations promise substantial changes to residential building envelopes. The current regulations use 2×4 framing with fiberglass batt insulation between studs as the standard in most climate zones (Zones 2-10). The new standards would require the addition of R-5 continuous insulation outside the studs in addition to the R-13 batts, or equivalent.

“Or Equivalent”
For a new home in Zones 2-10, where most of the California population lives, a builder will face the choice of building with foam insulation outboard of the studs, or finding efficiency measures elsewhere that produce similar energy savings. An energy consultant will be part of this process, modeling the home’s energy consumption and weighing different insulation designs against windows, HVAC systems, cool roofs, and other design decisions. In many cases, a HERS rater will be needed to confirm some of these energy credits, such as an extra tight building envelope, sealed HVAC ducts, quality insulation installation, and many more.

What Is Equivalent?
Let’s take a typical new 2,000 square foot home in Irvine. With a standard R-13 insulation design, the house will consume 50.1 kBtu/sqft/yr. That compares to 48.2 for the R-13 plus R-5 continuous insulation design, now required by Title 24. So to be equivalent to the continuous insulation system, we’d need to find 1.9 kBtu/sqft/yr in other areas. This could come from low-E windows, testing the building for air leakage with a HERS rater, quality insulation installation, locating air ducts in conditioned space, and numerous other methods.

The answer to the question, “What is equivalent?” depends on many factors, including the climate zone the house will be built in, the size of the house, etc. The only way to know for sure is to model the house. By making the insulation requirements more stringent, the State is doing two things at once: (1) directly requiring more insulation to save energy; and (2) pushing builders to dig deeper to employ some of the energy-saving methods already available but rarely used.

What SMA Is Doing
SMA is currently developing a series of youtube-style videos that will help the building community embrace “one-coat” stucco. There may be a fear factor among builders and plasterers that is preventing wider adoption of one-coat and making buildings more energy-efficient through the use of continuous insulation foam. Our effort will help prepare the industry to benefit when Title 24 really kicks in on January 1, 2014. Please contact Ben Garcia or Kevin Wensel if you are interested in helping with this effort.

 

Feature Articles

The Housing Market: How Big a Bounce?

Christopher Thornberg, Beacon Economics

It’s official. The housing market has turned the corner. Existing home sales are on the rise, inventories of product are down, and the modest price declines seen over the past year have ended. Builders are starting to see increased demand and housing permits have started to rise again for both multi and single-family properties. Admittedly, some markets in the western part of the United States continue to struggle—but overall, there is a clear shift underway. The only question left in my mind is: How strong of a recovery will it be?

Hold on, you might be saying. A recovery? I’m sure I’ve seen this movie before and I didn’t like the ending. Yes, it is true that the market has seen one false recovery in the past two years. But looking back, that was stimulated not by a true shift in the market, but rather by various government policies, such as the home buyer tax credit, that were put into place to try and kick start a recovery. Those programs were bound to fail — trying to jump start a car with no gas in the tank isn’t going to get you far.

The good news is that the tank now has some real fuel in it. Employment is on the rise across the western United States; California, Washington and Utah have all seen payrolls expand by more than 1% over the course of the last year. Subtract out continued pain in public sector employment and the gains are closer to 2%. This wasn’t the case in 2010. The new jobs have lead to growing household formation, and incomes are also on the rise. In my mind I see thousands of parents having heart-to-hearts with the twenty-somethings in their lives — the economy is better kiddo, time to move out, no more free laundry and meals.

And it’s a good time to buy. With mortgage rates as low as they are, and incomes rising, affordability has hit levels not seen for years in the west. And buyers are seeing the writing on the wall. According to the senior loan officer survey from the Federal Reserve, many more banks reported stronger demand for mortgage products in the second quarter of 2012. And given that rates on 10-year treasuries remain at very low levels, that the inflation environment is still very favorable, and that Europe’s troubles are making our government deficit woes seem mild by comparison, there is little sign of this changing anytime soon.

Of course the bears in the woods continue to grumble about the coming mythical second wave — a pile of REO properties that the banks are about to dump on the market. This is simply not true. As for the shadow inventories, according to data from RealtyTrac, the number of unsold REO units in the United States fell from 872,000 in April of 2011 to 638,000 just last month. And just as important, data from the Mortgage Bankers Association show that the percent of seriously delinquent mortgages has fallen from 6.5% to below 4.5% in the last two years. The number of units in foreclosure has stayed stubbornly high—but this only in judicial states like Florida where all foreclosures have to go through the court system. Most west coast states use a non-judicial system, and as a result the markets have cleared much faster.

Of course, it’s not all wine and roses. While things have turned, Beacon Economics still anticipates only a modest recovery in construction for a number of reasons. First, while there are fewer REO units and fewer foreclosures, from an historic standpoint there are still quite a few out there. Builders will continue to find themselves competing with banks for buyers. And while inventories are falling, there is no pent-up demand as some bulls have claimed. In our opinion, the long bottom in construction activity has only been enough to allow the population to catch up to the stock that was so badly overbuilt in the bubble of the last decade.

And then there is the equity issue or, to be more specific, the lack of equity issue. While mortgage debt is very cheap today, there is still a record amount of it floating around the market. During the housing boom Americans picked up over $8 trillion in new mortgage debt on the basis of what they thought was $18 trillion in housing wealth. This meant that the equity ratio stayed at a steady 63% through the upside. But when prices crashed, that $8 trillion in debt stayed in place for the most part, and now there is record little equity in the market — just 45% overall. Record numbers of households have little or even negative equity. This will constrain the move-up market and in turn constrain the demand for higher end units.

To sum up, the market has turned — but it’s a slow turn and not liable to speed up in the near future. Better times are ahead, but builders should stick to the prudent decisions that have guided them through the last few years — avoiding much in the way of spec construction and investing only cautiously in land.

Train Wreck Ahead – Bush-Era Tax Cuts

Doug Shively, Shively, Longtin and Inouye CPAs

Unless extended, the tax cuts in the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) and the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA as extended by the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010) will end December 31, 2012! You’d think that laws given those names ought to go?!

But … These laws contained provisions which included lower individual income tax rates, “capped” long term capital gains/dividend rates, the $1,000 child tax credit and a long list of other tax incentives.

Although the House Speaker, John Boehner, has said that the House will vote before the November elections on legislation to extend these many tax cuts, there seems little likelihood that the Senate leadership will take them up. Even if the Senate passed a bill, many would suspect that the President would veto such a bill.

The Budget Control Act of 2011 (BCA) passed during 2011 further complicates matters. The BCA imposes mandatory and across-the-board spending cuts through “sequestration.” I find it interesting to read the definition of this word …

1. confiscating or being confiscated: the act or process of legally confiscating somebody’s property temporarily until a debt that person owes is paid, a dispute is settled, or a court order obeyed.
2. seizing or being seized: the seizing of an enemy’s property, or the fact or process of being seized.
3. going into or being in isolation: the act of going into or putting somebody in an isolated place, away from people or everyday pressures, or the fact of being in such a place.

The term just doesn’t sound nice … and may be indicative of what a catastrophe the BCA could be if not repealed. The House, again, did just that on May 10th, but the Senate has done nothing with it.
Few on Capital Hill expect this Congress to do anything before the November elections! That would leave any action on extending the Bush-Era tax cuts to a lame duck Congress. No matter what happens to the makeup of Congress as a result of the elections, the new members won’t get there in time to decide either to allow the cuts to expire, make the tax cuts permanent, and/or extend the tax cuts for another year.

Planning for a way around this “Train Wreck” just isn’t going to get any easier! In fact, we should all petition our representatives to simply get rid of the entire income tax law altogether … wouldn’t you enjoy not having to see the tax man ever again?

Declining Relevance

Jerry L. Pozo, BMI Products

Why is it that we are seeing a decline in the quality of specifications being published for projects these days?

With the headlong rush into getting product specifications out for bids, and fewer people involved with writing competent specifications, the architects are relying on those on-line sites that provide ready-made specifications, shopping lists of well over a dozen manufacturers (some current, some no longer in business), and cut ‘n’ paste documents from previous projects. However, are they relevant to their current project?

Having been in CSI (Construction Specifications Institute) since 1984, I was initially drawn in by the meeting of product representatives and design professional and specifiers. We industry representatives were their source of technical information regarding our products for their projects. We were welcome to meet with them in offices or product shows to go over how products should be used and specified. One should never overlook the value of a specification review performed by an experienced manufacturer’s representative.

It was a wonderful relationship until the past decade. Then, the relationships started to fray, staff members were cut, non-spec people were given the responsibility of organizing specifications, and online services streaming guide specs to all at a price.

Well, this was much like the boilerplate specifications we all have seen in the past. Once a specification is generated, it seems to be in the database forever and never altered no matter what the project. One spec seemed to fit all projects. Unfortunately, too many offices are still using those master specs developed years ago.

We must remember that product technology is constantly changing, and evolving. Yearly, we see firms go out of business, or bought and sold to others, product names change, as well as entire lines.

Today, it seems hard to get through to many specifiers and make them aware that their 3-part format specifications are out-of-date. Some of the largest firms consistently write the worst spec. Many of those responsible for specification writing bury their heads and fail to recognize new technology, applications, and what our plastering industry is saying.

I am also amazed when they disavow an application even when it carries an ICC-ES Report, which represents being tested by the largest US testing laboratory for compliance to code and standards.

So, what I am trying to get at is: HOW do we break through to these specifiers? It is apparent that online sources and boilerplate specs become watered down documents hardly worth the paper they are printed on. Ambiguous specifications are in many specifications these days. So how can we “raise the bar” for plastering specification? I do not have that definitive answer. But, I hope all of you will contribute your thoughts to this, so we can shore up this issue and make future specifications: clear, correct, complete and concise.

It’s Been 10 Years Since SB 800 (Right to Repair), Now What?

Theodore A. Prenovost, Prenovost, Normandin, Bergh & Dawe

On all homes built after Jan. 1, 2003, Civil Code Sec. 895 et. seq. is the exclusive remedy which controls construction defect litigation. Currently there are several cases moving forward in county courts that are addressing multiple issues created by the statute. Our intelligent legislatures, in their effort for simplicity, have created many unanswered questions which are now put before our already overwhelmed and underfunded California courts. Over the next several years many of these issues will be argued, ruled upon and Appellate law will be developed which will guide consumer attorneys, developers, manufacturers and subcontractors.

In reality, SB 800 has done little to stop the flood of construction defect cases. What has been more of an impact on case resolution is the real estate collapse (homeowners lose their homes to foreclosure and banks do not want to participate in a CD case) along with developer and subcontractor responses to making repairs to the homes. However, for those lawsuits that do not resolve, here are current considerations before the court that are being argued:

• Civil Code Sec. 896(g)(2) states … “Stucco, exterior siding and other exterior wall finishes … shall not contain significant cracks or separations.”

What is a significant crack or separation?

• For the plaintiff attorney, it means “every crack in my case is significant!”
• Who should be allowed to testify whether a crack is significant or not? (A plaintiff ? A defendant? An expert? All?)
• Who determines what the standard will be for a “Significant” crack? A Judge? A Jury?

• Civil Code Sec. 896(a)(2) states … “Windows, patio doors, deck doors and their systems shall not allow water to pass beyond, around, or through the window …”
• Civil Code Sec. 896(a)(10) states…”Stucco, exterior siding, exterior walls, including, without limitation, exterior framing….shall be installed in such a way so as not to allow unintended water to pass into the structure or to pass beyond, around, or through the designed or actual moisture barriers of the system…”

• Who should be allowed to testify as to whether “water passes beyond, around or through the window?” (A plaintiff? A defendant? An expert? All?)
• Who should be allowed to testify as to whether “unintended water passes beyond, around or through the stucco?” (A plaintiff? A defendant? An expert? All?)

From a defense attorney’s perspective, we do not want construction experts to testify as to what “significant” means. We believe that the Trier of Fact (Judge or Jury) must rely upon the “industry standard” to determine whether a crack is “significan” or not. The SMA is the industry and sets the industry standard. Experts have to provide a “source” for their basis of what the “industry standard” is. SMA is that source and is the industry and should be consistent and clear with what a “significant crack” is.

The SMA has the ability to influence the admissibility of evidence by establishing the “industry standard.” Additionally, we do not believe experts should define whether “water passes beyond, around or through a window, door or stucco” due to a water test. We believe any testimony should be left to the homeowner and/or the subcontractor and it should be limited to the finding of a pre-existing leaks and damage only. Additionally, we believe “unintended water” results from use of the modified ASTM E1105 water test should be inadmissible. We believe that the modified ASTM E1105 is a “resistive test” of the structur’’s membrane and is not used to “investigate a known leak.” Instead, the modified ASTM E1105 manufacturer’s leaks and defense counsel must file motions to exclude this evidence.

Plaintiff attorneys argue that any water entering the structure creates a violation of the statute and is actionable and recoverable. Plaintiff attorneys argue that they do not have to establish damage under the statute to get a recovery. We believe there must be damage to obtain a recovery. Plaintiff attorneys argue that in a (2) two paper layer system, if water gets past the first paper layer and into the second paper layer then there is a violation of the statute and they can pursue a case. They argue old staining found within the wall cavity alone (no drywall staining) is a violation of the statute and actionable.

These questions and the type and amount of evidence that may be introduced at trail, has yet to be determined by the court. Judges are asking these questions and both the plaintiff bar and defense bar are taking strong stands on each side. The SMA is the industry standard and should take an active role in forming the future of construction defect litigation and application of SB800.

Our firm, Prenovost, Normandin, Bergh & Dawe, has been active in representing subcontractors and manufacturers defending these issues and attempting to develop case law which comports with the positions of manufacturers and subcontractors and the SMA. We welcome your input.

EIFS and Stucco: Applying Products in Hot Weather

Ted Jones, ParexUSA

With any product application in the summer, working early during the cooler temperatures and following the shade around the building and out of the direct sunlight and wind is always recommended. It is also imperative to store the products in a cool, or even an air conditioned area, and when mixing is required, to use cool water. Let hot water run out of hoses before using water from them.

Aesthetic issues can occur in finishes of all types due to different rates of drying occurring between areas in shade versus those in the sun. For example, scaffolding will create shadow lines where the finish dries more slowly than adjacent areas. To help prevent this from occurring, the exterior should be tarped to limit the uneven sun exposure and different drying rates which can result in different colors.

Finally, always take into account that working times of products decreases in hot weather and sufficient manpower should be utilized to prevent cold joints in the finish.

Stucco basecoats
All Parex USA 100 and 300 Series stucco basecoats require moist curing. Without moist curing, mix water in the basecoat is lost to evaporation into the air and to absorption into concrete and masonry substrates. Dampening those substrate first reduces absorption into them, and fogging the set basecoat with a light mist of water replaces mix water lost to evaporation. Without this additional water, a weak bond can form between the cementitious coats of materials. Parex USA Adacryl Admix and bonding agent used as an admix in the cementitious materials will help retain the water content in the mixes for a longer period of time helping reduce the loss of moisture. When used as a bonding agent, it will slow the absorption of the mix water and allow for better hydration of the brown coat at the cement finish bond line.

Cement finishes
Moisture in stucco cement finishes is necessary for proper curing of the cement in them. The cement finish should be applied to a moistened stucco basecoat. Moist curing the cement finish is allowed and may also help retain the moisture; if the cement finish will be moist cured, it should be done immediately after it is applied and dry to the touch.

Moist curing helps maintain the original water, helps to develop the hardness of the finish and prevents uneven or excessive evaporation of moisture from finish during hot, dry or windy weather. Moist curing is done several times per day, with a gentle, fine spray evenly over the wall for a couple of days, or longer if very windy, dry and hot, keeping in mind that excessive watering can result in increased color differences.

EIFS basecoats and acrylic finishes
EIFS basecoats are never to be moist cured. Moist curing interferes with the film formation of the polymer in them. This applies equally to cementitious EIFS base coats because of the polymer they contain. During hot weather, EIFS adhesive may set too fast or skin over on the insulation board resulting in poor adhesion and the adhesive must be scraped off and re-applied. However, dampening surface is not permitted because it adversely affect the polymer in the adhesive.

Finish may be protected from drying too fast by using a Parex USA acrylic primer. The primer will slow down and even out the suction of the base coat product, giving a more uniform application, floating, and drying of acrylic finish. When applying acrylic finishes to a hot surface or on a hot day, the finish must be floated before it skins over. Floating too dry a finish will burn the surface and create an irregular texture and color.

Member News: Expo Stucco Awarded Rose Bowl Contract

Ben Garcia, Expo Stucco Products

Rose Bowl Renovation announced. Expo Stucco has been awarded the contract for the renovation of the Rose Bowl. Their three coat stucco was chosen as the cladding for the renovation. Expo Stucco will provide traditional 20/30 sand-finish coat, similar to the finish used on the original structure. The UCLA football season and the Rose Bowl game itself will not be affected.

Probond™ Architectural Foam Shape Coatings Receive a Class A Flame Spread Rating

Ben Garcia, Expo Stucco Products

Many factors influence fire spread within buildings, and one of the most important is the interior finish material. Class A materials provide life saving flame spread protection and today’s fire spread characteristics of building materials are regulated by code requirements. “We are pleased to offer Probond™ coatings to the industry in our attempt to help build better communities.” Garcia said.

The purpose of the testing is to provide architects and fire protection engineers with adequate information so that they can select appropriate materials that will not contribute to the crisis of life safety from fire within structures. For the purpose of applying flame spread limits to the interior finish material, The Life Safety Code groups flame spread ratings into five classes:

• Class A flame spread rating 0-25
• Class B flame spread rating 26-75
• Class C flame spread rating 76-200
• Class D flame spread rating 201-500
• Class E flame spread rating over 500

After conducting an independent ASTM E-84 test, one of the most widely recognized laboratory tests of such fire characteristics, Expo Probond™ earned a flame spread rating of 10.

Building codes cited: National Protection Association, ANSI/NFPA no. 101, “Life Safety Code,” 2006 edition. International Building Code, 2006 edition, Chapter 8, Interior Finishes, Section 803.

PRESIDENT’S LETTER

Teaching Stucco to School Kids
Nick Brown, Merlex

“I want the kid in the back row to see another career path for himself.”

Today’s school kids are told to focus on computers, foreign languages, and math, so they have the skills to compete in the Service economy. But this leaves kids with other skills thinking they can’t succeed in the new economy – we were those kids a few decades ago. Maybe we chose to go into building materials manufacturing for the tangible satisfaction of seeing our product on new homes. Or we liked working with our hands. It was easier for us to see a career path for ourselves than for kids today with the same interests we had.

This is why I started teaching a real-world one-day class for my friend’s Economics class at Long Beach Poly High. I want these kids to see manufacturing lives on in this country. The lesson makes the economics they are learning seem relevant to a real-world job they could some day have. And I want the kid in the back row to see another career path for himself.

We talk about the economics of running a real business – variable and fixed costs, how pricing decisions get made, why people get laid off when business slows down. And we use fictional stucco companies to demonstrate the points. The kids get into it when they have to offer a special price for a big job and compete with each other. The exercise raises questions from the kids like:

“Don’t the companies have the incentive to get together and agree to keep prices high?” (Yes, but you absolutely cannot collude.)

“Even if you get a big job, how do you guarantee that the customer uses your product next time?” (Service and relationships)

“Can I ship in my product from China so I have a cost advantage and can offer a lower price to get business?” (Not in this lesson, but that’s definitely possible for an enterprising company that wants to build a new brand in the U.S.)

Sherry Davis, of Carmeuse Industrial Sand Co., has done much the same thing in the San Juan Capistrano community, with a focus on mining. In the process, she helps communicate the benefits of having mining industry in Southern California, and helps public relations in her community that goes a long way toward staving off the city planners who often seem bent on driving industries like ours out of town.

The SMA Board has voted to make this type of school outreach a formal program this year. We’re going to develop a model lesson plan for all our members to use in their local schools like mine and Sherry’s. If each of our member companies gets out in their community schools just once a year, I know that our industry will get a public relations boost out there, kids will learn something important and real-world, and the day out of the office will give you a morale boost, too. I think you’ll find, like Sherry and I have, that the school experience will remind you why you went into this industry, and what potential our young people have to improve on what they will some day inherit from us – a prosperous manufacturing sector with fulfilling careers for those who don’t embrace the new service economy.

More information on the SMA School Outreach Program to follow. Contact Norma Fox to express your interest in helping shape the program.

 

Feature Articles

Dealing with Legal Disputes in a Tough Economy

Bjorn C. Green, Esq., Demler, Armstrong & Rowland, LLP

The current business climate, weakened by the recession and made worse by the crisis in mortgage lending, has hit the construction industry particularly hard. Many of our clients are family-owned and run businesses that have been around for generations, and they are struggling. Sons and daughters are doing what their parents and grandparents did before them – proudly helping build homes, schools and businesses for their communities. The knowledge and experience that these people bring to the table is irreplaceable, and the quality of their products is unparalleled, but the demand for construction materials and services, while slowly increasing, is still well below levels seen five or ten years ago.

While business is down in the construction manufacturing and service industries, business is up for lawyers. With more limited options as a result of financial instability, many are taking their disputes to court. Lawyers, many of whom make their living by the billable hour, are happy to take on the role of advocate or defender for often-desperate clients with limited knowledge of the system, and the longer a dispute drags out, the more money the lawyers on both sides of the fight make – win or lose. While there might certainly be spirited debate on the topic, many lawyers would argue that they too need to earn a living and, by fighting every last battle to the finish, they are just following their clients’ instructions.

Please don’t misunderstand. Not all lawyers are sharks. Many of my best friends are attorneys, and I have tremendous respect and admiration for the integrity, work ethic and passion they bring to the table in the representation of their clients. These people make the headaches of their clients their own. They lose sleep at night figuring out solutions to their clients’ difficult problems, and take wins and losses as personally as if they were the ones whose livelihoods were on the line. Sometimes, disputes are so heated and the parties are so polarized that there is no other way – you need a smart, experienced, aggressive lawyer with a big stick to beat the other side down.

As appealing as the “club” approach to litigation might be, however, there is usually a better way, especially when money is tight. Litigation is not only expensive, but it is emotionally draining. Parties involved in court battles usually take things very personally, and big lawsuits can become all-consuming. Given the economic realities confronting those in the construction industry today, time, energy and money invested in a lawsuit are things that many can ill afford. Unfortunately, the person those in need of help turn to for advice about how to confront a difficult legal situation can be the person who stands to gain the most from a long, drawn-out lawsuit.

Set forth below are a few things worth considering both before and during a dispute:

• Is a lawsuit really the best way to go? Litigation is an expensive and inefficient way to resolve many small and medium-sized disputes. Parties can fight for years and spend as much (or more) on lawyers than the case is worth and, after all of the money and heartache, the case gets settled, leaving everyone unhappy. Rather than wasting years and scarce resources fighting past the point of diminishing returns, think about mediation as a means of quickly settling things early on. Perhaps compromise seems less satisfying than suing someone, but would you rather spend years and tens of thousands of dollars (or more) waging war, only to reach the point that you are so fatigued and cash-strapped by the process that you settle anyway? Most cases settle, so why not get it over with so that you can move on?
• If you can’t reach a compromise or are not interested in mediation, think about arbitration or a private trial. Lawyers or retired judges are available to serve as triers or fact, and, if you need someone to decide who is “right” in a dispute, an arbitrator (or panel of arbitrators) or private judge can serve in that capacity, and can probably get you a result much faster than the court system. A word of caution, however: while arbitration or judicial reference might enable you to resolve a case more quickly, it is not cheap, and your rights to appeal if things don’t go your way are limited.
• Before embarking on the prosecution or defense of a lawsuit, make sure you have a complete understanding of contractual defense and/or indemnity provisions, or applicable insurance variables. While material or product suppliers may be less entangled in contractual requirements than contractors or subcontractors, litigants need to comprehend the import of the “small print” contained in contract documents. Language contained in many contracts can fundamentally affect your exposure and change the outcome of lawsuits. Many don’t realize that an indemnity obligation might force you to pay the attorneys’ fees of another party, even if you are ultimately found to be without fault. To a lay person, this defies common sense, so figure this out at the beginning of the process, rather than being told at the end that you have won the battle but lost the war.
• Understand your insurance picture. Do you have a deductible? Self insured retention? How much is it? Are their coverage limitations for things like “your work” or “your product”? Is it worth it to get the insurance carrier involved? If they deny coverage, should you challenge that denial? What are your options and remedies when the carrier you thought was supposed to take care of you fails to do so?
• Pick the right lawyer. Ask around. Interview a few. Get references. Have they tried cases, or are they specialists in working a file for years and then advising the client to settle? Do they have experience with the issue you are confronted with? Ultimately, the lawyer you hire will carry at least part of your financial well being in his or her briefcase – you had better trust them.

While the attorney’s job is to provide counsel and representation to a client, the client needs to be informed about the process, the risks and benefits of participating in a lawsuit, and what the costs (financial and emotional) of litigation are likely to be. In today’s business climate, we need to work together to resolve our differences, because the outcome of all-out war is probably not going to be what is expected or desired by either side.

Construction Market Forecast: The General Economy Is Seeing Mixed Signs

RALEIGH, N.C., June 10, 2011 – FMI, the largest provider of management consulting and investment banking to the engineering and construction industry, announces the release of the Construction Outlook: Second Quarter 2011 Report.

In FMI’s Construction Outlook for the second quarter 2011, there are signs that the economy is recovering – even for contractors – but you have to look hard to see them. The stock market has taken on a more bullish trend since the bottom of the recession, but that bull has yet to visit Main Street, which is struggling to fix the potholes, not to mention the infrastructure buried beneath the streets.

The costs of construction materials have been rising faster than the slow increase in construction activity would suggest. Recently, commodities investors woke up to the idea that the recovery may once again be delayed. Their concerns are justified when one considers the uncertainties in the news, including a slowdown in GDP growth to just 1.8% after a solid fourth quarter pace of 3.1%. Construction markets are also affected by national and global uncertainties including the ongoing political upheaval in the Middle East and northern Africa; the resurgence of concern over the European debt crises, particularly Greece; and the ongoing budget battle in the U.S. Congress.

Report highlights include:

• Total construction in 2011 will climb 2% after declining 9% in 2010.
• Construction employment remained abysmal and little changed since the depth of the recession.
• The nonresidential sector will decline just 2% in 2011 after a 19% decline in 2010.
• Most of the areas showing growth, excluding residential, are in markets related to infrastructure.
• Sewage and waste disposal, and conservation and development construction will contribute to a positive climb in the nonbuilding segment.
• Power will continue to be a growing construction market (2% growth for 2011) as there is no sign that our need for more of it will abate. We expect growth to accelerate over the next five years as more attention is paid to renewable energy sources.
• The much-expected nuclear renaissance could stall once again as regulating bodies and engineers reassess safety measures based on the devastating results of multiple catastrophes at Japan’s Fukushima nuclear plant.

Green Choices

Kevin Wensel, Omega Products Int’l

Portland cement-based plaster systems are an excellent green choice as the exterior wall cladding for sustainably built buildings because:

Durability: A portland cement-based plaster system has a life-cycle of 50+ years, which is one of the longest expected service lives for exterior cladding. There is a high financial and ecological impact when the cladding of a building needs to be replaced, so stucco’s long life-cycle is good for the building owner’s wallet and the environment.

Maintenance: The stucco requires very little maintenance. As a cement-based product, it is mildew, rot, termite, and fire-resistant, while also have a high impact resistance. When integral colored cement-based stucco finish is used, then the building does not need to be painted or re-painted.

Embedded Energy: The embedded energy is the amount of energy it took to manufacture and transport a product. Cement-based plaster is comprised mainly of sand, portland cement, and lime. The embedded energy of mining sand is relatively low, and it is typically sourced close to the jobsite. The embedded energy of cement and lime is high because of the high temperatures required in the kilns to manufacture the materials. Though cement and lime producers have, and will continue, to implement new technologies and methods to reduce the net energy required to make the materials, so the embedded energy is going down with time. Also, the energy required for transportation of cement and lime is low because most of the raw materials are sourced near the plants and the plants are typically close to most jobsites. The typical plaster mix is approximately 1 part cement to .75 part lime to 3 parts sand, so sand with the lower embedded energy is a majority of the plaster mix. Additionally, some plaster mixes use fly ash or other materials with recycled content, which further reduces the energy used to make the product. Furthermore, when the long life-cycle and low maintenance are considered, the embedded energy of the plaster system over the life of the building is better than most other exterior cladding options.

Energy Efficiency: There are plaster systems that incorporate a layer of rigid insulation board. The use of continuous insulation exterior to the studs greatly increases the energy efficiency of the wall.

Cost: The overall cost of cement-based plaster systems is one of the lowest. The cost of installing the product is relatively low, requires very little maintenance, and does not need to be replaced for a long time.

Greenhouse Gases, Cap and Trade, Carbon Allowances: Cleaner Air or Politics as Usual?

Tom Himes, EHS Manager, Carmeuse Industrial Sands

Whether we recognize global warming as science fiction or fact, one thing is certain: industry will have to manage it. Federal and state regulators are using existing laws to limit emissions of green house gases (GHGs) while the politicians are fighting to delay any new bill that mentions the words. The controversy hits at the core of our society. For some, more restrictions on industry will mean fewer jobs and slower economic recovery. Others think that now is the time to act and that waiting will only make matters worse.

The Clean Air Act treats pollution that causes global warming like any other air pollution. In 2007, the Supreme Court ordered the EPA to decide, based on the best available science, whether these pollutants pose a danger to public health or welfare. In December 2009, the EPA responded to the Supreme Court by issuing an “endangerment finding” determining that carbon dioxide and five other greenhouse gases are dangerous to both health and welfare. This finding allows the EPA to use its authority to develop standards that will reduce global warming pollution.

The Natural Resources Defense Council posts the following summary of potential effects caused by current and projected concentrations of the six key greenhouse gases:

• Increased frequency, duration, and intensity of heat waves. The associated health problems of heat cramps, heat exhaustion, and heat stroke will be become increasingly common. The very old and very young are especially vulnerable, as well as those who are poor, socially isolated or who have chronic illnesses.
• Increased air pollution. Increased temperatures cause increased production of ground level ozone, the main component of smog. This will increase rates of asthma and other respiratory diseases. It also makes breathing difficult for those who already have cardiac or respiratory ailments. Pollen production and allergies are also increasing as a result of increased CO2 concentrations.
• Infectious diseases. Climate change is altering the range of disease-carrying organisms. West Nile virus carried by mosquitoes was not as prevalent in the United States until recently. More than 25,000 cases and more than 1,000 deaths have been recorded.
• Extreme weather events. This includes severe storms, increases in both drought and flooding, and associated features such as erosion and wild fires. The commenter indicates that we simply do not have the public health capacity to respond to increasing numbers of large-scale disasters that are difficult to predict.

California’s AB 32 — Forging Ahead
Known as the “Global Warming Solutions Act of 2006,” AB 32 directs the California Air Resources Board (ARB) to develop actions needed to reduce greenhouse gases by 2020.

One strategy is the cap-and-trade program, which works by giving a polluter a permit from the state that lets it release a certain amount of carbon dioxide and other greenhouse gases into the air. If a company emits less than its allotted amount of pollution, it can sell its unused “carbon credits” in a marketplace. Polluters can even make a profit if demand for the permits is high and their prices exceed the initial cost.

Although cap and trade is only one of the eight strategies outlined by the ARB’s Scoping Plan, it has experienced the most challenges.

A San Francisco Superior Court Judge recently ruled that state air quality regulators failed to properly consider alternatives to the cap-and-trade program. The judge ruled that the failure to consider alternatives violated state environmental law, so the California Air Resources Board must conduct further review before implementing the plan.

So it’s back to the drawing board for ARB to see how it will get the last remaining wedge of its Emissions Reduction “pie.” ARB is expected to have the new analysis completed by early summer, at which time interested stakeholders will have an opportunity to weigh in.

New SMA Member Profile

Chris Kreple, ThermalStar Product Manager, Atlas EPS

Atlas EPS specializes in the development and manufacture of innovative, high-quality, HFC- and HCFC-free Expanded Polystyrene (EPS) rigid insulation for construction, packaging and OEM products. With plants across the North America, Atlas EPS – headquartered in Byron Center, Michigan, at the largest EPS manufacturing plant in the industry – can provide product solutions coast-to-coast. Since the mid-1960s, Atlas EPS has played a significant part in the growth of technology and product applications in the EPS industry. As of February 2010, Atlas EPS proudly announces its maiden membership to both the SMA & PCASC ranks.

With a dedicated Engineering Department and Quality Assurance Group, we can work with you to ensure the best possible product designs at a competitive price. Whatever your fitness-for-use may be, the Atlas EPS team can help translate your requirements into viable product solutions. Atlas EPS products are third-party tested, certified and listed with ICC-ES, Underwriters Laboratories, Factory Mutual and ONNCCE.

In the second quarter of 2010, Atlas EPS launched the ThermalStar® brand of construction products. This product line includes below grade products, roofing products, exterior wall products, and vegetative roofing products.

Included in the ThermalStar product line, are the enhanced EPSX™ products which include X-Grade, X-Pro and XTR. These product offer integrated termite resistance, engineered compressive resistance, enhanced moisture resistance, and warranted R-values. ThermalStar EPSX products are also a distinctive orange color so that construction professionals can easily identify this superior product.

The newest member of the ThermalStar EPSX rigid insulation family of products is XTR. ThermalStar XTR is used for continuous insulation under exterior stucco systems. California Title 24 has made “One Coat” stucco systems much more popular since One Coat stucco delivers quick installation over 2×4 framing, reduced material costs, and most importantly offers continuous exterior insulation. This continuous insulation makes meeting the Title 24 requirements much easier and cheaper than using traditional “Three Coat” stucco over costly 2×6 framing which would then require more and therefore more expensive cavity insulation.

ThermalStar XTR has a number of attributes that make it the preferred choice for One Coat stucco systems:

• ThermalStar XTR comes with a twenty year warranty on the insulation value
• ThermalStar XTR also comes with a twenty year warranty on the termite treatment applied to the product
• ThermalStar XTR is 100% virgin EPS which enhances physical properties
• ThermalStar XTR contains a proprietary wax matrix that enhances moisture resistance
• ThermalStar XTR meets ASTM Type II standard
• ThermalStar XTR has a compressive strength of 15 psi
• ThermalStar XTR is available 2’x8’ or 4’x8’ with the long edges being T&G
• ThermalStar XTR is a nominal 1 -1/16″ thick
• ThermalStar XTR has dimpling on the face that enhances the bond between the rigid insulation and the stucco components
• ThermalStar XTR comes standard with water management grooves on the back side with signifying marks on the front to allow for easy alignment of the grooves

As the demand for energy efficient homes continues to grow, builders and developers have a new option for meeting that demand and the associated regulations – ThermalStar XTR. These builders will also benefit from easy installation and the piece-of-mind that they are using a superior product backed by an industry leader.

For more information see http://atlaseps.com/products/thermalstar/side-wall-wall-insulation

Carbon Trading Programs Struggle – Remain Optimistic

Tina McIntyre, TXI Riverside Cement

Carbon trading in general has also had its share of challenges. In May 2011, New Jersey pulled out of the Regional Greenhouse Gas Initiative (RGGI) – a regional trading house for carbon credits whose members include 10 Northeastern states.

New Jersey’s governor Chris Christie said the program’s allowances were never expensive enough to change behavior, and that New Jersey has brought its carbon emissions below its 2020 goal as a result of market forces rather than cap-and-trade. Any benefits from the RGGI tax will also now be miniscule in comparison to those from New Jersey’s incentives for wind, solar and natural gas generation, Christie said.

New Hampshire and Delaware may follow suit; however, RGGI experts feel that this is a minor set back to the initiative. Point Carbon’s Emilie Mazzacurati states that that “longer term outlook is not necessarily negative.”

Should California’s cap-and-trade program succeed, carbon allowances will be traded on the Western Climate Initiative (WCI). WCI’s members include several Western states as well as most Canadian provinces.

The National Resource Defense Council states, “These groundbreaking policies are driving down pollution, improving public health, creating new economic and job opportunities, and positioning California as a global leader in the push for clean energy solutions.”

Where Are We Headed?
The current political arena has put climate change on the proverbial back-burner. But regulators continue to use existing laws and will continue to develop new standards that will limit the emissions of GHGs.

The Portland Cement industry is facing several new significant air quality regulations under consideration by U.S. EPA. These include updates to:

• New Source Performance Standard for Portland Cement Plants (NSPS Subpart F)
• National Emission Standards for Hazardous Air Pollutants for Portland Cement Plants (NESHAP Subpart LLL) also known as the Portland Cement MACT
• Proposed revisions to the NSPS for Nonmetallic Mineral Processing Plants (Subpart OOO) and NSPS for Coal Preparation Plants (Subpart Y)
• Greenhouse gas (GHG) reporting rule

The NSPS Subpart F requirements are significant because they will, for the first time, regulate NOx and SO2 from new and modified cement kilns – an example of how GHGs will be regulated in the future.

Plan for Change
The climate change battle will be a long one, and the debate over whether GHGs are to blame may never be won. The reality is that an air permit is required to operate, and there are existing rules that allow the regulators to limit emissions of GHGs.

The initial impact is affecting large sources such as power companies, refineries, and specific industries. But all industries will be impacted in one way or another, whether it is from the higher cost of utilities, transportation, or raw materials. It will also mean possible delays in permitting for new facilities or for major modifications on equipment that was previously not considered a source.

Ignoring the battle or waiting for a resolution is not the best strategy; it may have already impacted your business.

Pre-blended Portland Cement Plaster Basecoats

Ben Garcia, Expo Stucco Products

Construction specifications setting forth the minimum requirements for plastering work must be closely adhered to, whether stated in industry-wide standards and guide specifications or in local building codes. These written specifications establish acceptance requirements for the quality of materials and workmanship.

Portland cement plaster is a combination of cementitious material, fine aggregate, lime and water. When properly proportioned, these materials will provide a hard, durable plaster surface that provides reasonable resistance to weather and cracking.

A major concern voiced by many experts in the plastering field is the variation and lack of control in job site mixing of sand and cement used in portland cement plaster for the scratch and brown coats. Sand added in excess of recommended parameters can seriously affect the integrity on the entire wall assembly.

Another growing issue is the use of sand piles on job sites. At times restricted sites and multi-story projects cannot accommodate the space required for these large mounds of sand. Some organizations restrict sand piles over concerns of airborne dust and run off in the case of storms.

The high cost of on-site injuries is a challenge. Health and safety concerns have increased over the shoveling and heavy lifting associated with field mixing. An average of 383 injuries occur per every 10,000 workers per year.

(Source: Nonfatal Occupational Injuries and Illnesses Requiring Days Away From Work, 2008, Bureau of Labor Statistics, 11/24/09, http://www.bls.gov/news.release/osh2.nr0.htm)

Preblended basecoat mixes were developed to solve these challenges. Factory blended plaster mixes are specifically designed to conform to ASTM and IBC requirements for scratch and brown plaster applications. What’s unique is that the mixing happens at the factory, not on the jobsite.

These mixes are complete requiring only the addition of water. This control of the mix ratio at the factory eliminates the inconsistency associated with job-site mixes. This provides a consistent mix from batch-to-batch which aids in producing a uniform, durable basecoat.

Factory blended portland cement plaster has excellent pumping and troweling properties for the contractor, while providing the building owner with a durable plaster.

There is no sand to shovel. All a contractor needs is to start the mixer and add water, saving time, space and possibly money.

PRESIDENT’S LETTER

What’s Really Important in Our Business
Nick Brown, Merlex

After you’ve worked in the stucco industry a while, you begin to notice changes. The biggest thing I’ve noticed is the change in people and the spirit they bring to work. No one shows this better than Bob Anderson, who retired this month after a long career supplying stucco manufacturers with sand.

Bob started in the sand business in 1959 by joining Ottawa Silica (Crystal Silica) in Oceanside, CA. When Crystal Silica ceased operations in 1991, Bob joined P.W. Gillibrand Co., Inc. of Simi Valley. When he came to see you, it was with a warmth and support that told you he really was there to do whatever he could to help your business. He told you the truth, unvarnished, but without any negativity toward his competition or anyone else. And when the inevitable problem popped up, he was all over it, helping to identify the root cause, get the plant back up and running, and make sure it never happened again. And pricing was never a main topic of conversation.

Guys like Bob Anderson are in short supply in our industry these days. Today, many salespeople seem to focus on price first and the warm handshake and support last. Bob was successful, and I believe our industry has been successful, because of a focus on building real relationships between people and businesses that we can depend on to help everyone get through the tough times. I think that with Bob’s retirement, it is an opportunity to reflect on what’s really important in our business, our relationships, and what our industry should look like when we retire. Let’s hope it’s a tightly knit industry of businesses that deal honestly with one another, support the industry, and add value like Bob Anderson did for over 50 years. Congratulations, Bob.

I would also like to take this opportunity to thank our outgoing SMA President, Todd Martin (Omega Products International) for his service last year and in years prior. It is largely because of his leadership that SMA is in good financial standing, finding new ways to spread the stucco message, including the DVDs, website, AIA on-line course, interesting meetings, and this e-newsletter. Thanks go also to last year’s board members Ted Jones (Parex), Ben Garcia (Expo), Ed Gorter (California Stucco), Sherry Davis (Carmeuse), and Mike Duarte (P.T. Hutchins).

 

Feature Articles

Hopeful Signs for California Builders

Christopher Thornberg, PhD, Principal, Beacon Economics

The recent swoon in home sales that hit California and the rest of the nation in July caused the markets to tumble and fears among builders to climb. Why this is the case remains a bit of a mystery to us, as this was one of the least surprising surprises in the news lately.

After real estate bubbles pop, there is traditionally a fairly lengthy period of time (2 to 3 years) when the market sits on the bottom, with weak sales and a slow pace of building before it starts to move forward again. This is understandable—there is a large decline in available home equity that could be used for trading up to a nicer property, the market is typically over-supplied with units built during the boom, fewer people are moving for jobs in a weak labor market and all in all so many people bought homes during the bubble that many families are simply content to enjoy for a few years before they start thinking about upgrading yet again. In a sense, baseline demand needs time to recharge.

Despite these formidable hurdles, the administration pursued numerous quixotic policies that seemed to be designed to try and reignite the market far before its time. Tax credit programs, quantitative easing, a rapid pace of FHA lending, and those programs designed to slow the pace of foreclosures all contributed to a small burst in market activity early in the year. Builders began to buy land back they had sold just a year or more ago at huge discounts. But when these programs had run their course, the false demand faded away and the market logically sagged back to the floor it will continue to sit at for some time yet. Builder confidence and residential building permits in the state fell with the pace of sales.

Yet other data sources say that builders should actually be growing more, rather than less confident. While the many bubble deniers had all sorts of kooky justifications for the massive increase in prices here in California the one thing they did get right was the relative lack of supply. The state has not built enough housing to meet population growth for well over a decade. Indeed in the midst of the boom the pace of sales was only slightly greater than the need for housing. The net result was that California had a severe over-crowding problem.

What this means is that builders in the state are more likely to see rising demand for their products than in other bubble states such as Arizona, Florida or Nevada. Indeed this has recently come to light in data from another source—in rental vacancies. The major markets in the state have seen substantial declines in rental vacancies from the not-very-high peaks hit last year. Los Angeles, for example, has seen vacancies drop from 7.3% to 6.6%. And no, this isn’t foreclosed owners moving into rental housing—as the number of units for sale in the state has remained relative steady.

While this is good news—builders still need to pay attention to what they build. In the midst of the bubble construction was focusing on higher end units in outlying areas. The major source of population growth in the state is immigration from other countries, many who are low skilled workers from Latin America. This mismatch between supply and demand has lead to some quirky results. For example, between 2000 and 2008 homeownership rates in the rest of the US rose rapidly. In California it was flat, and in some places even fell. This implies that the need for housing will not be in those finished lots in suburban So-Cal, but infill development of entry-level homes near transportation hubs.

The margins won’t be as nice—but at least revenues will get flowing again, and some of those many workers who found themselves out of a construction job in 2007 may actually find themselves earning a paycheck yet again.

[Former] Governor Schwarzenegger Announced First-in-the-Nation Statewide Green Building Standards Code

Continuing California’s efforts to fight climate change and protect the environment, (former) Governor Arnold Schwarzenegger announced the California Building Standards Commission unanimously adopted the first-in-the-nation mandatory Green Building Standards Code (CALGREEN) requiring all new buildings in the state to be more energy efficient and environmentally responsible. Taking effect on January 1, 2011, these comprehensive regulations will achieve major reductions in greenhouse gas emissions, energy consumption and water use to create a greener California.

“With this first-in-the nation mandatory green building standards code, California continues to pave the way in energy efficiency and environmental protection. Today’s action lays the foundation for the move to greener buildings constructed with environmentally advanced building practices that decrease waste, reduce energy use and conserve resources,” said Governor Schwarzenegger. “The code will help us meet our goals of curbing global warming and achieving 33 percent renewable energy by 2020 and promotes the development of more sustainable communities by reducing greenhouse gas emissions and improving energy efficiency in every new home, office building or public structure.”

CALGREEN will require that every new building constructed in California reduce water consumption by 20 percent, divert 50 percent of construction waste from landfills and install low pollutant-emitting materials. It also requires separate water meters for nonresidential buildings’ indoor and outdoor water use, with a requirement for moisture-sensing irrigation systems for larger landscape projects and mandatory inspections of energy systems (e.g., heat furnace, air conditioner and mechanical equipment) for nonresidential buildings over 10,000 square feet to ensure that all are working at their maximum capacity and according to their design efficiencies. The California Air Resources Board estimates that the mandatory provisions will reduce greenhouse gas emissions (CO2 equivalent) by 3 million metric tons equivalent in 2020.

Upon passing state building inspection, California’s property owners will have the ability to label their facilities as CALGREEN compliant without using additional costly third-party certification programs.

In 2007, Governor Schwarzenegger directed the California Building Standards Commission (BSC) to work with specified state agencies on the adoption of green building standards for residential, commercial and public building construction for the 2010 code adoption process.

“We are committed to seeing the Governor’s vision for developing a green framework in California become a reality,” said California State and Consumer Services Agency Acting Secretary Tom Sheehy. “This new standard will set a nationwide example of how to incorporate building smart, resource-efficient and environmentally-responsible buildings into the everyday fabric of our state.”

The mandatory code provisions will now become the baseline of regulated green construction practices in the country’s most populous state. The BSC, which developed this initial Green Building Standards Code with extensive discussions with environmentalists, architects, builders, local officials and others, will continue to improve this new code with those interested parties.

In addition to the mandatory regulations, CALGREEN also includes more stringent voluntary provisions to encourage local communities to take further action to green their buildings to reduce greenhouse gas emissions, improve energy efficiency and conserve our natural resources.

Like California’s existing building code provisions that regulate all construction projects throughout the state, the mandatory CALGREEN provisions will be inspected and verified by local and state building departments. CALGREEN will use the long-standing, successful enforcement infrastructure that the state has established to enforce its health, safety, fire, energy and structural building codes. Many of the mandatory provisions in the code are already part of the statewide building code, making verification of CALGREEN an easy transition for local building inspectors.

Member News – Bob Anderson Retires

After 59 years in the Sales profession, Bob Anderson of P.W. Gillibrand Co, Inc. retired on December 31, 2010.

Following high school and a stint in the U.S. Navy, Bob attended L.A. City College and the University of Southern California, graduating in 1951 with a degree in Business Economics. Shortly after obtaining his degree, he began his sales career with the Shell Oil Company. In 1953 Bob moved to U.S. Limestone Products Co. (now Chemical Lime) and then entered the industrial sand business in 1959 by joining Ottowa Silica (Crystal Silica) in Oceanside, CA. When Crystal Silica ceased operations in 1991, Bob joined P.W. Gillibrand Co., Inc.

Bob has been a good friend to the stucco industry throughout his career, and we are grateful for the contributions he has made to the success of our company. Please offer Bob, and his wife Patty, your best wishes for a wonderful retirement.

It’s That Time of Year Again for Efflorescence in California

Kenneth Parks, CEMEX Technical Services Manager

The California rainy season has come early this year. One of the phenomenons that begin to appear more frequently in the fall for California homeowners and Contractors is efflorescence. Efflorescence appears in concrete construction as well as stucco/masonry construction. What exactly is efflorescence? A dictionary definition (Merriam Webster) of efflorescence is “The formation of a powdery surface on crystals, as a hydrate is converted to anhydrous form by losing loosely bound water of crystallization to the atmosphere.” To put it into layman’s terms, efflorescence is the product of water moving through a wall and bringing the natural salts to the surface. When the water and natural salts arrive at the surface, the water evaporates and the salts combine with the carbon dioxide in the air to form the white powdery substance on the surface of the wall. In the plastering industry we are referring to the crystalline deposit, usually white, that may develop on the surface of integrally colored exterior Portland cement plaster finishes or the calcium or alkaline salt which forms as a blotchy, powdery or crystalline deposit on the surface of Portland cement plaster finishes.

Efflorescence occurs as a result of a combination of factors. Those factors include soluble salts, physical forces applied to the walls, moisture that is present, and an opening through which the salts may migrate to the surface. Where do these salts come from? The soluble salts are present in the earthen building materials, water, and may leach from the soils and migrate into the building substrate. Quantities of water-soluble salts as small as a few tenths of one percent are sufficient to cause efflorescence. Physical forces applied to the wall include wind, capillary action, hydrostatic pressure and osmotic pressure. The moisture present for efflorescence to occur may come from many sources. Those sources include but are not limited to the mixing water, cleaning water, precipitation, groundwater, condensation or even from a landscaping sprinkler system. Lastly, there must be a pathway for salts to migrate out of the wall. These pathways could be from hairline cracks, shrinkage cracks, settling cracks, cracks from vibrations or even microscopic openings in the material itself. If one of the above factors is not present, efflorescence should not occur. What type of controls should we put in place to try to minimize the chance of efflorescence occurring?

There are many things that we can control to help minimize the chance of efflorescence occurring. The things we need to consider are:

• Properly graded aggregates
• Clean aggregates
• Low water/cementitious ratio mixes
• Proper curing techniques
• Good workmanship techniques
• Provision for good drainage away from the structure

Everyone must remember that there is one thing we cannot control; that is Mother Nature. Since we cannot control the weather, we must take prudent actions to minimize the contribution of the above listed factors. If efflorescence does occur, what should one do?

There are many options on how to deal with efflorescence:

• Dry brush the surface then flush the surface with clean water.
• Clean the surface with a vinegar and water solution (1 part vinegar to 5 parts water) and try a test patch first to check for possible discoloration of colored wall.
• Saturate the wall with water, then wash with a diluted acid solution (2-5 parts hydrochloric acid to 100 parts water), and follow with an alkaline wash, and finally wash with water (try a test patch first to check for possible discoloration of the colored wall).
• Let the efflorescence run its course, use fogging equipment, and repeat if necessary.
• Contact the manufacturer of the cleaning products used for recommendations.
• Remember to try out test patches with these cleaning options first; these options may cause discoloration to the colored walls.
• Always remember to use the proper safety equipment when working with any chemical for cleaning efflorescence.

To summarize the information above, one needs to remember that efflorescence is a naturally occurring phenomenon in construction. The four factors described above — soluble salts, a physical force, moisture, and an opening — must be present for efflorescence to occur. There are items that can be controlled to help minimize the possibility of efflorescence and there are items we cannot control. There are ways to clean efflorescence, but it must be pointed out that just because it is cleaned off one time, that does not mean the efflorescence may not re-occur. Secondary blooms are possible.

One final note: Safety first when dealing with any chemical. Wear the proper safety equipment and review the manufacturer’s suggested applications and warnings.

For further information on efflorescence, please contact the National Ready Mixed Concrete Association (www.nrmca.org) or the Portland Cement Association (www.cement.org).

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 silo … 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.

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.

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.

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 subcontractor 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.

Survival in Today’s Challenging Times

Jamie Makuuchi, Director of Marketing, Parex USA and LaHabra Stucco

If you are still in business today, congratulations, you are a survivor! There is a high probability you will make it through to see better days. The good news is that the worst is behind us. The bad news is that it is not going to go up as fast as it fell and will take several years to fully recover. The dramatic decline our industry has experienced over the last 3-4 years have been unprecedented and devastating to many businesses that did not adjust their business enough or fast enough to mirror the new reality. The recent news talks about the risk of the “double dip” which, amusingly, implies that we are out of the first one. I guess our industry did not participate in the recovery and historically there is no “real” recovery without our industry improving. After one of the longest and greatest construction growth cycles in our history we all have to face the “new normal” and adjust our businesses accordingly or die.

LaHabra has been around since 1926 and has seen many cycles, including the Great Depression. California is one of the most cyclical construction economies in the nation, so we are veterans of change. Sacrifices and tough decisions were made, but we are committed to the industry and plan to be around another 85 years despite all the recent obstacles.

Although every major industry economist continues to decrease their forecast for 2011 and push the recovery out into the future more and more, the overall consensus for the residential sector is overwhelmingly positive for the United States and California. The pessimists are now forecasting home starts to increase in the 10%-15% range and the optimists are in the mid 30%-35%. The high growth rate sounds great, however, when based on historical low starts, the improved level remains depressed and nowhere near the number of starts reached in the go-go years of the mid-2000s. We fully expect the residential sector to improve, but not until the second or third trimester. Even if starts remain at historically low levels and below the natural demand in 2011, we will be relieved to see things move in the right direction.

There are many factors holding the residential sector from making a rapid recovery. Pent-up demand exists, but the fear of falling values keeps people on the side lines. A recent California homeowner poll was taken and only 25% see values increasing. Most sales in California remain distressed, keeping values down. Delinquencies and foreclosures have recently declined, but fear of the unknown shadow inventory hitting the market remains. Recent news on the possibility of eliminating or limiting the mortgage interest tax deduction does not help matters. If this happens, which is unlikely, it will have devastating consequences on values and ultimately lead to more foreclosures. Rising interest rates will have the same effect. Although rates will not remain at these historical low levels forever, the probability of significant increases in the near term are very low. The inventory of new homes is extremely low (easy to control), the problem is that they are not selling fast enough to create a major increase in demand. The inventory of re-sales (hard to control) is high and represents about 10 (about 2 times the norm) months of inventory based on the current rate of sales. This inventory also needs to flush through the system before a robust recover in new home building begins. Although regional data in California varies, the good news is that the values at the lower end of the market appear to be stabilizing and increasing in some areas. Unfortunately the higher-end is a bit more sensitive and values continue to decrease, although at a much slower rate. The first trimester of 2011 will be pivotal and likely determine the direction values will take this year.

The commercial building cycle is lagging the residential sector by a few years. Thankfully, the dramatic declines over the last 2 years are most likely behind us, but with the high vacancy rates in the private investment sector (office, industrial, retail etc.) we do not expect an increase in activity in 2011. We are anticipating 2011 to be flat to slight decrease relative to 2010.

If you are a survivor, consider yourself very fortunate. You have made the right moves already. Most of the tough decisions are probably behind you and you are in a much better competitive position to take advantage of the upswing when it happens.

Recycled Content – A Key “Green Product” Attribute

Ben Garcia, Expo Stucco Products

A 2009 report estimates the U.S. market for green building materials will exceed $80 billion by 2013. This is a predicted 7.2% annual increase over the next four years.1 Both “Green” construction managers and “Green” architects are expected to grow 20% more than professionals that are not considered “Green” professionals.2 In a recovering economy we are all looking for ways to take advantage of the growing portions of our industry. Offering “Green” alternatives to these professionals gives us an opportunity to join in this growing building trend.

The new CALGreen code mandates new building requirements for new residential and commercial construction in California as of January 1st 2011. Leadership in Energy and Environmental Design (LEED) is a leading-edge system for certifying the greenest performing buildings in the world. Both reference guides list recycled content as a green product attribute. The intent of CALGreen and LEED is to increase demand for building products that incorporate recycled content materials, thereby reducing impacts resulting from extraction and processing of virgin materials.

To do justice to the growing ecological demands, we should make it our business to develop ecologically enhanced plaster products. By including recycled content into our product mix, we can offer sustainable product solutions that will be able to contribute to LEED and CALGreen certification.

By offering both pre- and post-consumer recycled content in our products, we can attract the attention of architects, builders and developers committed to incorporating new and innovative products in this growing segment of our industry. As the CALGreen and LEED certification programs continue to gain relevance across North America so too will the demand for sustainable product solutions.

Sources:
1 ECOHOME Magazine, 2009
2 O*Line.com, 2009

Rock Science, Not Rocket Science

The following is a summary of the SMA meeting held at Carmeuse’s facility in San Juan Capistrano on aggregates in plaster.

Aggregates are important because they form 50-80% of most cement products, yet they are largely ignored in base coats and specifications. For instance, ask yourself how often ASTM standards are cited on homebuilder contracts. Do you request a certain quality aggregate for your scratch & brown?

There are several ASTM Standards that apply to aggregate:

• ASTM C-144: Standard for Masonry aggregate
– sometimes quoted in specifications
• ASTM C-897: Standard for Job-Mixed Cement Plasters
– commonly cited for base coats
– contains gradation specification
– also contains specs & test methods for “friable particles,” “lightweight particles,” organic impurities, and soundness
-exceptions for aggregate proven to work on similar jobs and special textures

• ASTM C-926 governs the Application of Portland Cement Plaster, as close to a 10 Commandments as there is in the stucco industry. It calls for C-897 sand, but has a weasel clause:

“unless failing sand has acceptable demonstrated performance record in similar construction and climate conditions”

The bottom line is that there is lots of flexibility in ASTM standards for selection of aggregates. The user can select aggregate most of the time. Common practice is to use washed plaster sand in scratch and brown coats, but this may or may not meet C-144 or C-897 standards. Since it is practically difficult to evaluate quality of aggregates, price and availability become the default keys to selecting aggregates.

In finish coat plasters, manufacturers typically use factory-made aggregates, such as are supplied by Gillibrand and Carmeuse in Southern California. Northern California producers commonly use Monterey silica sand or calcium carbonate from Chemical Lime, or truck in Southern California silica sand. These products are wet graded and rinsed for purity and accuracy of gradation, then dried for precise control of water in the final mix. Acrylic plasters commonly use rounder calcium carbonate, which are preferred for their light color.

The careful plastering contractor considers carefully the impurities in aggregates, as impurities in the #1 ingredient in your mix can cause big problems. Iron has caused dozens of houses to develop rust spots in the past. Clays absorb water from the mix, then shrink as they dry and cause cracking (although a little clay is necessary to help pumped material slip through the hose. The appearance of aggregates can also be important, as dark spots may peek through light colored finish coats and mar the appearance. And bond-breakers need to be avoided in aggregates as well.

The SE scale is an easy and fast way to test for impurities, even in the field. Add roughly equal parts sand and water, shake in bottle to put in suspension, and allow to settle 20 minutes. Measure what percentage of aggregate is sand and that gives you the SE. Our recent tests show that many local plaster sands test above 70 and 80 and should produce solid plaster. But hopefully the preceding discussion encourages the industry to care about the aggregate, beyond the cost and whether it pumps or not.

The sand on the left has a 93 SE rating. On the right is a 67 due to the higher silt content.

The lower SE you go, the more water you’’ll need, and the more shrinkage cracking, lower strength, less dense your wall will be. For instance, the photographs below show panels made with low and high SE ratings and the water demand to get the same slump.

4A: SE=49 & Plastic – 9 gallons water
4D: SE=86 & Plastic – 6.75 gallons water

The shape and hardness of the aggregate are also important. Sharp, angular sand sticks in plaster and floats out well without rolling; round aggregate rolls, pumps better, and gives worm texture. The Mohs scale is useful for thinking about the hardness of different aggregates: It is exponential, like the Richter scale for earthquakes, which means 3 is twice as hard as 2, and so on. So gypsum is a 2, Limestone/ Calcium Carbonate is a 3, and Silica sand is a 7. Silica is 10 times harder than limestone.

There are also some alternative aggregates to consider. Recycled concrete can be reused in new plaster. Glass beads (Poraver/Viceroy Ceramics) can also be used to give recycled content and lower weight and insulation/acoustic value. Perlite has long been used for weight reduction and added fire resistance. And foam beads are on the market that are lightweight, pumpable, and give higher insulation value.

At SMA, we believe that the people in the field every day are the best qualified to choose aggregates. They see what works and what doesn’t, and can consider far more in the equation than an ASTM standard or an SE rating. But the careful professional will be smart to pay close attention to the aggregates he uses and consider tighter specs on field-mixed aggregates to ensure good results. Factory-blended base coat products are also something to consider to reduce problems from stormwater runoff and tighter quality control. And alternative aggregates promise to help manufacturers improve their products, especially in the areas of sustainability, insulation, weight, and acoustics.

Volunteers Needed in Haiti to Aid Earthquake Relief

Shelter2Home, LLC is looking for volunteers (Traditional Stucco Applicators/Installers) to go to Haiti for a minimum of seven days to assist in the training of Haitian youth in the application of two and three coat stucco applications. Shelter2Home, a Virginia-based manufacturer is supplying the components for the construction of 50 new homes in the southern part of Haiti from funding by Cross International, a Florida-based non-profit. Volunteers will stay at the Pwoje Espwa Sud Guest House, which is located in Les Cayes, Haiti, and instruct students in various application on basic two-room homes built for families displaced by the January 12, 2010, earthquake.

For more information please contact Donald Stevens at +1-540-327-4424 or dstevens@shelter2home.com. Please reference “Haiti Stucco” when you call or email.