A Comparison of Operation Cost Factors: Union Versus Nonunion HVAC and Sheet Metal Contractors
The New Horizons Foundation, in conjunction with FMI Corporation, a respected construction industry consulting and research firm, sponsored a study that focused on comparing operating costs of union and nonunion contractors. This study concluded that cost differences in total costs, labor costs, fabricated ductwork, and crew mix identified the operating cost differences between union and nonunion firms. Empirical evidence uncovered findings that left union and nonunion contractors taken aback. These findings included the significant differences in the crew mix, noteworthy differences in the cost of duct fabrication, nonunion firms are better at planning and managing projects, nonunion firms devote more funding to training than expected, and that nonunion firms are making significant investments in facilities and fabrication equipment. The Foundation research study identifies significant implications for union and nonunion firm operations as well as the institutions that service those firms.

Creating a Learning Environment: A Template for Creating and Cultivating a Learning Culture in the HVAC and Sheet Metal Industry
This report describes the research into creating and fostering a learning environment in the heating, ventilation, and air conditioning (HVAC) and sheet metal industry. The report defines a learning culture for HVAC and sheet metal contractors, and to explain how HVAC and sheet metal contractor organizations can create the environment to cultivate a learning culture. A competency scorecard and an example of a web-based company learning tool are included in the report.

As the report recommends there are numerous reasons for HVAC and sheet metal contractors to invest in a learning culture, including:

• Cultivation of the company’s most important asset – its employees and
• Enhancing company performance at delivering high standards of products and labor, consequently increasing profitability and repeat business.

Impact of Incompatible Software on HVAC and Sheet Metal Contractors
The main research objective of this study was to identify the impact of incompatible software on HVAC and sheet metal industry and to investigate recent interoperability initiatives within the architecture, engineering, and construction and facility management industries.

The study also

1. Documents the processes involved in the execution of a typical HVAC and sheet metal project and provides a generalized process map for such a project
2. Identifies initiatives being taken worldwide in the field of interoperability and Building Information Modeling (BIM) to eradicate the ills of incompatible software
3. Reports extensively on the International Alliance for Interoperability (IAI) Industry Foundation Classes (IFC) with the HVAC domain being the subject of special interest for the study. A detailed explanation of the IFC schema for the HVAC domain is presented in this report

Measuring Customer Loyalty
Because customer loyalty can be the key to a business’s success or failure, the New Horizons Foundation initiated and funded a study to gain greater understanding of heating, ventilation, and air-conditioning (HVAC) and sheet metal customers’ requirements with the intent of discovering specific paths to improving the competitiveness of HVAC and sheet metal contractors. Understanding what drives customers’ buying decisions, creates confidence, and builds enduring customer trust and loyalty is critical to developing a vital customer base that looks beyond price and bid to sustain contractor profitability in any economic climate. This study provides the first industry-wide measure of customers’ perceptions of (1) the factors that are most important to purchasing successful HVAC work and (2) the quality of performance of HVAC and sheet metal contractors. Individual contractors will realize the most value from this study by using the self-survey kit to do their own satisfaction survey of all their customers. They can benchmark the results with these findings and identify specific actions that meet their own customers’ needs and expectations. A PowerPoint presentation, Conducting Customer Surveys, is among the resources included in this publication.

Pre-construction Planning Process
Heating, ventilation, and air-conditioning (HVAC) and sheet metal contractors continue to be faced with the challenge of improving productivity to remain successful in an increasingly competitive industry. In an effort to meet these challenges, they are turning to better preconstruction planning as a method for improving their efficiency, and subsequently increasing their profitability. The purpose of this implementation manual, which was developed as part of a three-phase research project by The New Horizons Foundation, is to present HVAC and sheet metal contractors with a comprehensive preconstruction planning process, laying out 50 step-by-step activities in 12 key planning categories. The process can be implemented fully or partially to accommodate each company’s unique project planning situation. [The hard copy includes a CD-ROM with a Microsoft Excel version of the forms found in the publication. The PDF download does not contain these additional files.]

Procurement Chain Management in the Construction Industry
Changes in customer expectations in the construction industry regarding project delivery, time, cost, and quality have forced the stakeholders to search for new operational models. While productivity increased significantly for most industrial sectors during the 90s, it actually decreased for the construction industry. One cause of this is that the procurement chain management system is no longer satisfying the market requirements. There is an urgent need for improvement of the current construction procurement model. A variety of alternative models are being practiced throughout the industry. Electrical Contracting Foundation (ELECTRI’21) commissioned research to investigate the prevailing, existing, and alternative models of procurement. In order to adequately assess the strengths and weaknesses of each model, a neutral comparison of each model was conducted. The investigation found that none of the existing and alternative models are offering an efficient, streamlined approach to procurement. The study recommends the development of a new procurement process to achieve better time, cost and quality. This can be accomplished through direct collaboration of all the stakeholders in the procurement chain to produce a horizontally integrated procurement process.

Quantifying the Cumulative Impact of Change Orders
Change on construction projects is inevitable, but the effects of change are often disputed amongst owners and contractors. The complete effects that change orders have on a project are noticed by the contractor but are difficult to quantify because they involve direct costs of extra materials and hours, as well as changes on the flow of work (its effect on labor) and a “ripple effect” through the project, causing dilution of supervision, out of sequence work, rework and schedule acceleration. This negative effect on productivity caused by cumulative impact is difficult to quantify. Contractors may seek legal claims for their loss but often fail to convince the court because of the lack of hard data. Past research on the impact of change orders has primarily focused on general construction and the labor-intensive trades of electrical and mechanical construction. The New Horizons Foundation formed a research team to focus on the impact of change orders on labor productivity specifically for the sheet metal industry. The team developed a model that can estimate the productivity loss on a project impacted by change orders. The model can be applied to projects to generate a percentage loss of productivity due to changes. The study includes recommendations for contractors, owners and architects/engineers on increasing the likelihood of project success. [Hardcopy includes accompanying software cd]

Residential HVAC Trends
In recent years, home improvement centers have dramatically changed the residential building market in terms of product sales and installation, most notably in the cabinet and countertop, flooring, and roofing segments. Now, in an increasingly competitive market, they have targeted both residential and commercial sales, installation, and service markets as an area for growth and expansion. This movement has both current and potential impact on the construction industry. This study examines trends and drivers that will impact future scenarios, specifically for the HVAC industry and the union segment of the trade. The research was developed through a combination of interview and surveys with HVAC industry stakeholders and an in-depth literature scan of private and public documentation, trade press, and industry reports.

Schedule Compression Effects on Labor Productivity
During a typical construction project, a contractor may find that the time originally available, or normally expected to perform its work has been severely reduced. To finish the project by the completion date, the contractor is forced to find a way to speed up the progress of its work, or “compress the schedule.” The most common way to compress the schedule is either to work longer hours (overtime), add more workers (overmanning), or implement multiple shifts (shift work). Schedule compression poses a problem to contractors because it negatively impacts labor productivity and decreases profits for the contractor. Understanding how schedule compression affects labor productivity is crucial for increasing project performance, avoiding disputes, and maintaining sound financial status of one's company. While models have been developed to quantify the loss of productivity resulting from schedule compression in other industries, a similar model for the sheet metal contracting trade did not exist. This study shows how schedule compression affects sheet metal contractors' labor productivity, quantifies the effects of overtime, shift work, and overmanning on sheet metal contractors' labor productivity. Models that quantify the impact of each on the labor productivity of sheet metal contractors are presented. Recommendations for the contractor are provided to help reduce the impact of schedule compression on labor productivity. [Hardcopy includes accompanying software cd]

The Future for Union Sheet Metal Construction
Union sheet metal construction is at the most important point in its history. Actions and decisions undertaken over the next few years will determine not just how well the industry thrives over the next 20 years, but if it survives. Commonly held assumptions about the future may no longer stand and a diverse set of potential future scenarios is unfolding. The Future for Union Sheet Metal Construction is the result of a 24-month study based on a series of “future focus groups” with SMWIA and SMACNA leaders from all around the country, interviews with construction industry experts, and extensive research into social and technological trends. The study debunks seven myths about the future of the union sheet metal industry. Understanding these myths as well as the realities and forecasts for them will allow SMWIA and SMACNA leaders to make more informed decisions regarding the future of the industry.

The Impacts of a Merger or Consolidation for the SMWIA
The American labor movement and the building and construction trades are in crisis. Over the past 25 years, the proportion of the construction labor force that is unionized has declined significantly, leading to an unprecedented quest to revitalize the building trades. The building trades unions have put significant efforts and resources into the reorganization of their trades, without much success. Technology and political changes have favored the growth of the nonunion sector over the union. As a result, the building trades have been discussing potential mergers between unions, both for their very survival and as a way to restore their former strength. This report presents the findings of research on the prospects for the merger of the Sheet Metal Workers International Association (SMWIA) with one or more other unions, and the potential impact of that merger(s) on the SMWIA, sheet metal contractors, the construction workplace, and the future of unionized construction. While the future is uncertain, the report examines a range of potential scenarios, including specific mergers between organizations.

Thinking Lean—Tools for Decreasing Costs and Increasing Profits
This project updates research that was conducted in 2005. The need for this update is driven by the increasing complexity of the heating, ventilation, and air conditioning (HVAC) and sheet metal construction industry. Advancements in technology, financial pressure, and customers seeking greater involvement and value from their projects are the main contributors to this complexity. A goal was established to identify the Lean principles and techniques used successfully in other industries that could be, and in some case were, easily implemented in construction. To accomplish this, the project concentrated on identifying the Lean principles used successfully in manufacturing and service industries; defining how “Lean” applies in the HVAC and sheet metal construction industry; determining which Lean techniques were most applicable and useful in the construction industry; and identifying how HVAC and sheet metal construction companies were already successfully applying Lean principles. The research concluded that the Lean principles that have led other industries to higher profitability and lower costs are easily applicable to the HVAC and sheet metal industry. Those contractors that learn how to use Lean effectively will have a definite competitive advantage in their productivity and in meeting customer needs and expectations.

Tool and Material Management Systems
Poor tool and material management hampers operations on a day-to-day basis and can do damage to your business. The cost of owning and providing tools may amount to only a few percent of the cost of doing construction work, but it can significantly impact labor productivity and the quality of work performed. Further, poor practices in tool and material management can be indicative of other systemic wastes, hidden in your company’s day-to-day work, such as lack of planning, poor scheduling, poor housekeeping, unsafe work, and problems with quality. 1.1 Tool and material management includes identifying the needed tools and materials, acquiring them, and issuing them to the fabrication shop, job site or service truck for use or installation. It also includes returning or disposing of excess materials and managing the return, maintenance, repair and replacement of tools. This guide provides practical considerations, tactics and processes that apply specifically to managing tools, equipment and off-the-shelf, consumable materials. It provides an easy-to-reference list of considerations, tactics, and processes for implementation and ongoing improvement. Additionally, the study details the four step process (Plan, Do, Check, Act) as a way to foster learning and create a culture of continuous improvement.