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Sales of New Single-family Homes Hit Highest Mark Since Early 2008
SOURCE: NATIONAL ASSOCIATION OF HOME BUILDERS MAR 24, 2015
Regionally, new home sales increased 152.9% in the Northeast and 10.1% in the South. Sales dropped 6% in the West and 12.9% in the Midwest.
Sales of newly built, single-family homes rose 7.8 percent in February to a seasonally adjusted annual rate of 539,000 units from an upwardly revised January reading, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. This is the highest sales pace since February 2008.
The inventory of new homes for sale was at 210,000 in February, which is a 4.7-month supply at the current sales pace.
Regionally, new home sales increased 152.9 percent in the Northeast, which experienced its lowest sales level in 43 years back in January 2015. Sales were up 10.1 percent in the South, which was the highest level since early 2008. The West saw sales dropped 6 percent reaching the level established in the fourth quarter of 2014. The Midwest saw a slight softening in sales with a 12. percent decrease.
“Today’s numbers are a great start to the spring buying season,” said Tom Woods, chairman of the National Association of Home Builders (NAHB) and a home builder from Blue Springs, Mo. “Hopefully, this is an indicator of how the rest of the year will fare.”
“Most sales activity continues to be among existing home owners who are trading up to new construction and taking advantage of low mortgage rates,” said NAHB Chief Economist David Crowe. “First-time home buyers remain absent from the market, restricted by tight lending conditions.”
Building a Seaside Foundation on the Rock
published March 2015 in
by Joe Nasvik
Every year the Concrete Foundation Association (CFA), based in Mt. Vernon, Iowa, holds a contest to honor the best and most difficult foundation projects of the year. So, Purinton Builders, East Granby, Connecticut, decided to submit their “Point O’ Woods” cabin retreat foundation and deck project located near Old Lyme, Connecticut.
Old Lyme is a small peaceful beach community along the Connecticut coastline. The coast has rocky points and sandy bays that owners of beach houses flock to during the summer months. However, building these resort homes can be a daunting project, especially when they are built on rock. That’s the challenge Purinton Builders accepted when they won the contract to provide the footings, piers and a concrete deck for a small resort home on an uneven rock point on the edge of the ocean.
The original cabin was run down; resting on an old rubble foundation and the footprint was about 1,400 square feet. The lot size was approximately 50 feet wide and 150 feet long, all on rock with the front of the building cantilevering five-feet out. Water surrounded three sides of the project and there was almost no working room—additional safety equipment was provided as conditions dictated.
Dennis Purinton, President of Purinton Builders, says Old Lyme is a vacation area with “Hammer Law” rules in effect—no construction work is allowed from Memorial Day to Labor Day, so the construction season is fall and winter.
Job challenges
There were many challenges that made this construction a perfect candidate for the CFA contest:
- FEMA regulations mandate floor elevations to be a minimum of sixteen feet above medium tide elevation. In addition, local building code requires the maximum height of the roof of a structure not be above a certain elevation. So for this project all vertical elevations were critical.
- The footprint of the new building was allowed to be minimally varied from that of the old building. The owner wanted the maximum size building permitted so measurements were of high concern.
- The entire project was on rock with uneven surfaces and elevation changes as much as 10-feet. Each footing pad was different and forms had to be scribed to fit each location. The rock surface under each pad required milling to create flat surfaces with no more than a 10 percent pitch.
- The owner and environmental requirements mandated that the site was to be left in pristine condition, so no concrete spillage was allowed anywhere and all anchoring was to leave absolute minimal scarring.
- A bridge over the only entrance to the community was a little too low for ready-mix trucks to pass under, so tires were deflated on one side and re-inflated on the other, a time consuming process that aged the fresh concrete.
- Purinton reports that on windy days workers got wet from waves spraying water as they hit the rock, making for cold uncomfortable working conditions.
- Materials and equipment had to be secured because winds were often strong.
- The “Hammer Law” meant that concrete work would be completed under winter conditions.
Laying out pads and piers
With no flat surfaces and elevation differences of several feet, layout became the most difficult part of the job. “The elevation and center of the top of the piers was all we had,” says Purinton. “We knew the footing pads had to be 18 inches thick and the pitch of the rock under the piers couldn’t exceed 10 percent. Starting with the top center point of each pier we located each point in space in order to locate the bottom center point for each of the 12 piers.” They used a total robotic station and string line for this work, but Purinton says using the string line was the most helpful. After the points were located a subcontractor cut and chipped out the rock to provide the specified surface for the footing pads. Two of Purinton’s men worked half a day on each footing pad to scribe forms to the rock—no concrete spillage was allowed.
The plans also defined the top length and width of each pier so, working backwards, they laid out the tops of piers with string line. Then by measuring the length of each pier and calculating the five degree pitch, they were able to lay out the bottom shape on each footing pad. The tapered piers were cut and assembled in their shop using 2×12 inch lumber, plywood and surrounded by Western aluminum forms.
Securing all the formwork so it didn’t move during concrete placement was also a challenge. They decided to use Hilti “Qwik Hus” screw anchors for rock—employing several thousand. Holes were drilled in the rock to receive the anchors that secured both forms and braces.
Reinforcement
With layout as the most difficult part of the job, placing the engineered reinforcement was the most critical. Large waves rolling up on the shore could potentially cause the floor slab to lift. The space under the floor is wedge shaped, with the widest part of the wedge (10-feet high) facing the ocean. Atlantic storms occasionally produce waves big enough to roll to the back of the wedge, pushing up on the floor slab. So the careful installation of reinforcing steel was all important.
All reinforcement was epoxy coated, vertical pieces were three-quarter inches in diameter (#6 bar) and horizontal members being five-eighths inches in diameter (#5 bar). Workers drilled 18-inch deep holes in the rock and anchored them with epoxy. Purinton especially likes Hilti products and bought their largest drill with a clutch for worker safety—if the drill-bit caught on something in the hole the operator wouldn’t suffer arm damage. It also featured a Hilti dustless drilling system with an attached vacuum and they were surprised to see how dust removal increased drilling efficiency. Purinton’s son, Mike, enrolled in and passed, the ACI-CRSI “Adhesive Anchor Installation Certification Program” and set all the anchors to specification. Proper anchorage was seen to be very important.
After concrete placement in the foundation pads, holes were drilled, rebar for the piers was installed and anchored with adhesive. The same procedure was followed on top of the piers to anchor rebar to the double reinforcing mats for the slab. In this way, a continuous load-path went from the concrete slab into the rock below.
Concrete requirements
The biggest issue for the concrete on this project was durability—everything is exposed and gets regularly soaked by ocean salt water. So the engineer specified that concrete couldn’t exceed a 0.45 water/cement ratio. The mix contains 600 pounds of cementitious material, 30 percent being fly ash and slag. Six percent air entrainment is included for freeze-thaw resistance. A super plasticizer admixture was added to increase durability, allow a placing slump of eight-inches, and to keep the ready-mix concrete fresh longer.
In total, the job only required about 80 yards of concrete.
Placing concrete
There was little room to work on the site and footing was especially difficult. Purinton said they employed the necessary safety precautions as dictated by the jobsite environment. They also extended the deck forms just so there would be a place for workers to stand. The form is also being used by the contractor to construct the building.
Working under winter conditions concerned Purinton when they placed the deck concrete because it was only eight-inches thick—the piers were fine because the thick concrete produced enough heat for protection. So workers insulated above and below the deck forms and covered the top with plastic sheeting. Maturity meters were used to monitor the slab, five were located in the areas of greatest concern. The requirements of ACI 306-10, tables 305.1 and 307.1 were followed. Strength gain turned out to be uniform and there were no freezing issues.
They were able to rent a concrete boom-pump that could fit under the bridge and everything was placed by pump.
Earning profit
Jim Baty, the Executive Director of the CFA, says that making profit on a very difficult project is one of the ground rules of their awards competition. “There is no point to giving an award to a project if it loses money,” he says. Purinton says this project was successful, his company achieved the profit they expected, in spite of considerable weather variables and the many unforeseen site challenges. “Our specialty is difficult projects like this, ones that most of our competition avoids, so we have learned how to bid them,” he says. “But the many layers of difficulty presented in this job made it our most challenging to date and I particularly wanted it,” he added.
An interesting footnote is there was no room on the property to place an air conditioner or heat pump, as the footprint of the house went to the property lines. So a geo-thermal well was drilled 350 feet into the rock and pipe was tunneled under the floor slab and into the house.
R.F. Woehrmyer – First Ohio CFA Certified Foundation Company
For Immediate Release March 13, 2015
R.F. Woehrmyer Becomes First
Certified Foundation Company in Ohio
Mt. Vernon, Iowa – Concrete foundations constructed in the state of Ohio will now be produced by Ohio’s first certified foundation company, R.F. Woehrmyer Concrete Construction of Minster, Ohio.
The Certified Foundation Company distinction is a program rating established by the Concrete Foundations Association ™ of North America (CFA) offering third-party quality assurance for professional concrete foundation companies.
Recognizing the need for a national program to establish a consistent base of knowledge and quality assurance for the cast-in-place concrete foundation industry, the CFA created the Certified Foundation Company a decade ago. The program recognizes certified companies in the states of Missouri, Iowa, Pennsylvania, Illinois, Wisconsin, Virginia and now Ohio.
“The Certified Foundation Company program was an ideal extension of the introduction of Certified Foundation Technician,” states Jim Baty, Executive Director for the CFA. “Introduced in 2007, the technician program established a grueling examination of the knowledge base for understanding the codes and standards that shape the minimum requirements for today’s residential concrete foundations. However, having a person on staff, or even multiple project managers that know the important sections of code documents was just the start. This industry needed a recognizable standard for operation of a quality foundation company.”
R.F. Woehrmyer became interested in becoming a certified company when they learned about the growing success of the program and the adoption of the technician certification into the American Concrete Institute (ACI). “It was important to us to show our region that we are serious about our foundations,” states Nick Woehrmyer. “When ACI took over the certification of individuals seeking to become Certified Foundation Technicians, we realized that this program would signal our commitment to our customers. My brother Greg and I received our certifications in November.”
The next step for the Woehrmyers was establishing the company with CFA certification. A member of the CFA since 1995, the process to become a certified company forced the brothers and their father who founded the company to look much deeper into their processes. Certified companies must prove their safety programming, commitment to workforce safety and performance, financial stability and quality of relationships.
“We are very pleased to have been through this process as it demonstrated just how much we already knew about our company but also some new ways to improve our processes and our commitments,” offered Ron Woehrmyer, company president.
For more information on R.F. Woehrmyer Concrete Construction, please contact Nick Woehrmyer at (419) 628-3480 or visit their website, www.rfwconcrete.com.
For more information on the CFA, please contact James Baty, Executive Director, at 866-232-9255 or jbaty@cfawalls.org or visit the Association website at www.cfawalls.org and go to keyword Certification.
For more information on the American Concrete Institute and their individual certification programs visit their website, www.concrete.org.
Further information, including electronic files, logos and photography, is available from Lindsey Bloomquist, Manager of Communications and Networks for the Concrete Foundations Association, lbloomquist@cfawalls.org | 866-232-9255.
IRVING EQUIPMENT ANNOUNCES PLANS FOR 4.4 MILLION DOLLAR EXPANSION
Irving Equipment has announced that plans are underway on a 4.4 million dollar expansion. This includes a 40,000-square-foot building on 8 acres of land located at 1785 CR 1, near its existing facility in Tiffin, Ohio. The expansion became necessary due to growth and increased demand for products, such as concrete pumps, and cranes.
The newly acquired facility is equipped with six overhead cranes (10-20 ton). The service area is five times larger than the current . The increased ceiling height allows for even the largest of units to extend, while inside. The expansion will include a state-of-the-art, fully-stocked parts department. This will compliment our parts specialists which have over 75 years of experience combined.
The new building is heavily- insulated, and equipped with hi-efficiency lighting, making the work environment a much brighter, more inviting space. In keeping with the improved workspace, the floors throughout the workshop have been stained, and sealed for a cleaner, safer work area.
During the most recent phase of development, a newly-constructed, two-story office complex will sit directly in front of the service facility. This addition is to include conference areas, training rooms for operators and technicians, as well as much needed office and storage space.
The Irving family is very appreciative of the amount of local support, and the support of the concrete pumping industry, regarding the project. “We have invested so much in our company and in the community; these are very exciting times for us”.
RISK MANAGEMENT: Cyber Crime: An Evolving Threat
NOW IS THE TIME TO REVISIT THE TOPIC OF CYBERCRIME AS CRIMINALS HAVE ELEVATED THEIR GAME AND CONTINUE TO CARRY OUT MALICIOUS ATTACKS ON AMERICAN BUSINESSES AND INDIVIDUALS
By Kristen Long, Senior Vice President, Arthur J. Gallagher
In September 2014 I wrote an article titled “The Threat Posed by Cyber Criminals.” In the article, I discussed the emerging risk of Cybercrime and the link between main street American businesses and the Fortune 500 company attacks.
Now is the time to revisit this topic because, since that time, cyber criminals have elevated their game and continued to carry out malicious attacks on American businesses and individuals through phishing emails and malware viruses. Several large data breach events have taken place in the mere five months since I last addressed the issue. JP Morgan Chase, Staples, Sony, Michael’s, Home Depot, Albertson’s, Kmart and Dairy Queen have all fallen victim to cyber criminals. Even last month we witnessed possibly the most devastating breach to date – the attack on a health insurance giant, Anthem Inc.
As the level of sophistication and number of attacks continue to increase, it can be overwhelming to attempt to protect your household or your business. In the following article, I am going to share some basic information and tips to help equip you in the fight against cyber perils.
CYBER-ATTACKS ON YOUR HOUSEHOLD
The breach on Anthem Inc., the second largest health insurer in the U.S., compromised the information of over 80 million people or 1 in 4 people in the United States. The attack included spouses, dependents (such as children) and even deceased family members. The information stolen includes the following: social security numbers, DOB’s, addresses, names, phone numbers, email addresses, and even salary information. Having all of this confidential personal information is like giving a criminal or outsider a passkey into your life.
What is concerning is the lack of outcry from the public. Hundreds of millions of people have been affected by the data breaches over the past year and yet there remains no urgency to fend off the hackers. Why is that? Up until now, data breaches have mostly affected credit cards. Credit card companies have provided fraud protection, paying out of their corporate pockets any expenses/damages and replacing credit cards when customers’ information has been compromised.
While these attacks reached a huge number of people, the outcome for most individuals is a minor annoyance rather than a crippling event. Now, imagine instead of merely needing to update your Netflix payment method, you discover that your credit rating has been damaged, your social security number was used by another person to obtain employment, or you are now unable to receive healthcare when needed. Take it one step further, what if somebody stole your child’s identity? That’s the very real possibility and touches on the magnitude of Medical and Social Security Identity Theft.
Monitoring and correcting Medical/ Social Security Identity Theft can be a difficult and time-consuming task. Since this is a new breed of attack, we are just learning the power of these crimes, and it could take years or even decades to understand the true enormity of the events. Below are the definitions and details of Medical/ Social Security Identity Theft:
- Medical Identity Theft occurs when someone steals your personal information (like your name, Social Security number, or Medicare number) to obtain medical care, buy drugs, or submit fake billings to Medicare in your name. The Coalition against Insurance Fraud offered the following warning regarding Medical Identity Theft, “But be warned: Correcting records can be hard. In general, federal law lets patients’ correct medical records created only by the medical provider or insurer that now maintains your information. A hospital or insurer that later receives your information doesn’t have to correct its records— even when they’re wrong. But… you do have the right to have your records state that you disagree with the information, and why. Be sure your complaint is entered into your records”.
- Social Security Identity Theft involves fraudulently using someone’s social security number to get a job, file for governmental benefits, fraudulent
tax returns, credit, and medical care. The Social Security Administration says, “If you have done all you can to fix the problems resulting from misuse of your Social Security number and someone still is using your number, we may assign you a new number”.
According to the Identity Theft Assistance Center (ITAC), “Adults can monitor their own credit reports every few months to see if someone has misused their information, and order a fraud alert or freeze on their credit files to stymie further misuse. But most parents and guardians don’t expect their youngster to have a credit file, and, as a result, rarely request a child’s credit report, let alone review it for accuracy. A thief who steals a child’s information may use it for many years before the crime is discovered. The victim may learn about the theft years later, when applying for a loan, apartment, or job”. Further the ITAC states, “Until recently, very little was known about the scope of the crime and how the stolen information is used. ITAC sponsored the 2012 Child Identity Fraud Report to get verifiable data that can be used to develop solutions to identity theft”. Prior to the current string of data breaches, ITAC conducted a study into Child Identity theft, below are the key findings:
2012 CHILD IDENTITY THEFT KEY FINDINGS
2012 Child Identity Theft Key Findings Social Security numbers are the most commonly used piece of information by identity thieves targeting children. In fact, 56 percent of respondents reported theft or misuse of a child’s SSN.
The most common way criminals use a child’s personal information is to combine a child’s Social Security number with a different date of birth to create a new identity that can be used to commit fraud. Fraud involving “synthetic identity” is especially difficult for victims and industry to detect.
The study found that 2.5 percent of U.S. households with children under age 18 experienced child identity fraud at some point during their child’s lifetime. This equates to 1 in 40 households with minor children being affected by this crime.
Fraud committed by family and friends is to blame in many child identity theft cases. The data shows that 27 percent of respondents reported knowing the individual responsible for the crime.
Low-income households are disproportionately affected by child identity theft. As family income decreases, the risk of child identity fraud increases. While 50 percent of households of child identity theft victims had incomes under $35,000, only ten percent of households of child identity theft victims had incomes of more than $100,000.
Child identity theft is more difficult to detect and resolve than adult identity theft. The survey showed that these crimes took 334 days to detect and 44 hours to resolve, and 17 percent of children were victimized for a year or longer.
If these data breaches have taught us anything, it is that every
American household, child, and business should be taking at a minimum, the following steps to monitor their identity:
- Credit Monitoring/Freezing – Sign up for monitoring with all credit bureaus directly or via a credit monitoring company, remember to include children
- Child Identity Protection – http://www.consumer.ftc.gov/articles/0040-child-identity-theft
- Medical Identity Monitoring – Review health insurer monthly and annual report of charges.
- Review Social Security Activity – http://www.socialsecurity.gov/myaccount/
The opportunity for children to socialize online has risks and rewards. As adults, we must reduce the risks by talking to kids about making safe and responsible decisions. SafeKids.com offers many suggestions on areas of discussion with your children.
CYBER-ATTACKS ON YOUR BUSINESSES
The massive Target attack in late 2013 was a perfect example of how cyber criminals hone in on small businesses to gain access points to larger prey. In that instance, hackers penetrated an HVAC contractor in Pittsburgh that performed contracting work for a local Target. Once the hackers had taken control of the HVAC contractor’s systems, the thieves discovered an online portal that Target used for its vendors for payment and contract delivery. That was all the hackers needed to hit the mother- load. So, how many larger companies do you do business with? Large general contractors, banks, owners, suppliers, etc. could all be targets, and you could unknowingly serve them up on a platter. Does your company execute vendor contracts that allocate liability and indemnification for data breaches? When protecting cyber risks, companies often ignore the risks created by their vendor agreements. Your business partners create exposures outside of your internal IT business network. Cyber breaches involving a 3rd party muddy the waters and spill into complex litigation.
As a first line of defense, every company should establish training and a risk management program for its cyber exposure, including remote access, cell phones, laptops and even tablets. This should include a response plan in the event your company is hacked… who will you call first? Your company IT professional should be included as a strategic partner to help guide your plan and company training. Equally important is the purchasing of Cyber Liability Insurance. Cyber insurance is a continuously developing product that can cover both liability and property damage losses that may result when a business engages in various electronic activities, such as selling on the Internet or collecting data within its internal electronic network (such as payments from clients via credit cards). Cyber insurance policies can cover a business’ liability for a data breach in which customer information, such as social security or credit card numbers, are stolen by a hacker who has gained access to the firm’s electronic network. The policy would cover a variety
of expenses associated with data breaches including: notification costs, credit monitoring, costs to defend claims by state regulators, fines and penalties, and losses resulting from identity theft.
Currently, there is a market for cyber liability insurance, but as the amount of attacks have increased, insurance carriers have tightened up their underwriting guidelines before accepting new policyholders. The insurer will need verification that the company is up to date on firewalls, antivirus, anti-malware, and if it monitors how access is granted to company systems. So, please be aware that bringing you “up to code” in terms of insurability and finding the proper market for your company may require time and effort.
When considering the probability of whether you or your company will suffer a cyber-attack, it is no longer a question of “if” but “when”. In October of 2014, FBI Director James Comey stated in an interview with CBS, “There are those who’ve been hacked by the Chinese and those who don’t know they’ve been hacked by the Chinese”. As Cybercrime continues to evolve and the stakes become more severe, it is our responsibility as heads of households and professionals to educate ourselves as to how to defend our own information, as well as others’. Kaspersky, Internet Security Company, has an excellent training tool called “Stop Cyber Crime Guide”.
As an insurance professional who specializes in the construction industry, and a victim of identity theft, it troubles me to say that less than five percent of my clients have implemented the security procedures discussed above. I implore each of you to take this issue seriously and to be proactive in protecting your personal, business and client’s information. While the thought and expense of putting a security plan into action may seem daunting, it is a fraction of what you will be forced to deal with if you are attacked without one.
The Salesperson’s Handbook: FIVE COMMON OBSTACLES AND HOW TO OVERCOME THEM
Veteran salespeople know that while every customer is unique, the obstacles to a sale are predictably the same and occur rather frequently. Once you understand these obstacles and the strategies to overcome them, you will have all of the tools you need to make the sale.
OBSTACLE 1: IDENTIFYING AND COMMUNICATING WITH THE DECISION MAKER(S)
Too often, salespeople will focus solely on their initial contact at an organization. Whether that person is a mid-level manager or an HR executive, they are probably not the only person who is going to have input on the proposal process. Smart salespeople know that there are usually other decision makers who will have input in the deal, and the challenge is to figure out who they are and how you can meet with them. In order to get the information you want, you will to have to ask your current contact some questions that might seem awkward. Some questions to broach the issue are:
• What is your time frame for making a final decision?
• What criteria will you be evaluating to ensure you are making the best decision? • What measurable outcomes are you looking to achieve?
Once you are able to determine who else will be involved in the decision making process, you can ask this follow up question: “I really appreciate this insight. So that I can propose the best solution that is going to meet the needs of everyone else involved, I would love to talk with these other individuals and get their input. When can I meet with them?”
OBSTACLE 2: UNCOVERING THE BUDGET
Nothing will derail a deal faster than a mismatch between your proposal and the customer’s budget. Unfortunately, prospects are often reluctant to discuss their budgets with salespeople. It is your job to press them further to get a number, or at the very least, a range of what their budget is for the project. There are two options to making this happen.
You can politely—but firmly—suggest that your prospect determine their budget prior to soliciting bids. Stress the importance of an advance figure, and express your interest in receiving them before you reconnect.
This approach puts the focus on the prospect, not you. It tells them that you care about them and their financial security and you do not want them to make a mistake.
The second option involves framing the interaction through the lens of recommending a program that best suits your prospect’s needs and expectations, and expressing how budget parameters can shape the direction for both parties.
If they say they cannot give you a number because they’re not the ones putting the budget together, ask to be introduced to those who are involved in crafting the budget. This will minimize price objections later on in the process, especially when you are put in front of people who are not as concerned with budget, as they are with their ROI.
OBSTACLE 3: WORKING WITH CUSTOMERS WHO DO NOT WANT TO COMMIT
There is nothing more frustrating that getting ready to close a sale, only to have a customer say, “I still need to think about it.” When this happens, a seasoned salesperson knows that he or she needs to follow up on the customer’s statement. You should respond by saying: “I can understand you need to think about this. After all, it is an important decision and you need to do what is best for you and your organization. Tell me, what specifically stands out from our conversation that is of interest to you?”
The goal of this question is to get clarification on how much the prospect is really interested in what you have shared and whether or not the prospect feels they want to move forward. Is there sincerity in the response, or are you being blown off?
Once you get an answer to your first question, you can acknowledge that the customer has concerns, and ask them what they are. Ask what is holding them back from making a decision, and then hopefully you can help alleviate their concerns and get the sale back on track.
OBSTACLE 4: UNDERSTANDING THE CUSTOMER’S VALUES
Too often, salespeople get stuck on the issue of price. If you sell on price, you lose on price. As soon as someone cheaper comes along, a customer will not give you a second thought before cutting you loose. Instead of getting caught up in price wars, you need to steer a customer’s attention to other issues. This means you need to ask your customers about value. What characteristics does the organization value in a vendor? Are they most concerned with good customer
service, high quality products, speedy delivery, or ease of use? Once you get a customer talking about these areas, you can determine what their needs are and how you can position yourself to get those needs met.
OBSTACLE 5: ESTABLISHING YOUR CREDIBILITY
Many salespeople make the mistake of spending an initial meeting talking all about themselves and their products. This is a mistake. During an initial call, your goal should be for the prospect to do 70% of the talking. Why? For two reasons:
1.You want to hear about his/her problems, goals, concerns and ideas. 2. You want to qualify if there is a genuine
opportunity with this prospect.
You cannot do either of those things if you are trying to sell during the first meeting. As much as you want to sell yourself, you should never bring out PowerPoint, samples or company literature during an initial meeting.
What should you do at an initial meeting? You should start the meeting with a unique value opening statement, which is a 30-60 second description of who you are as a company and what you do. The value opening statement should detail the benefits of your company to the prospect, the impact that hiring you will have to their organization, and an immediate follow-up question to gauge their expectations and interest.
Remember Lucy? She started to utilize these tips and strategies with her customers. She found that she was able to ask great questions of her customers and this in turn led to increased sales and increased overall performance in her office.
By: Paul Cherry
ABOUT THE AUTHOR:
Paul Cherry is President of Performance Based Results and is the leading authority on customer engagement strategies. He has more than 23 years’ experience in sales training, leadership development, sales performance coaching and management coaching. He is also the author of ‘Questions that Sell: The Powerful Process for Discovering What Your Customer Really Wants’ and ‘Questions that Get Results: Innovative Ideas Managers Can Use to Improve Their Team’s Performance.’ For more information on Paul, please visit www.pbresults.com. You can also reach him at 302-478-4443 or cherry@pbresults.com
CFA MEMBER SPOTLIGHT: What Comes Around Goes Around
ASK MOST ANY CONCRETE CONTRACTOR FOUND IN TODAY’S CAST- IN-PLACE CONCRETE INDUSTRY AND HE/SHE WILL TELL YOU THAT THEIR BUSINESS IS A GENERATIONAL AFFAIR…AFTER ALL, CONCRETE DOES GET IN YOUR BLOOD AND ONCE THERE, IT NEVER LEAVES.
Ask most any concrete contractor found in today’s cast-in-place concrete industry and he/she will tell you that their business is a generational affair. There are few exceptions and if the company has changed ownership, chances are that generationally the new ownership has ties to a history of involvement with concrete. After all, concrete does get in your blood and once there, it never leaves.
Thirty seven years ago, Dennie Hill took an opportunity and an introduction to the concrete industry and began working as a laborer for a contractor. Fifteen years later he was given the chance to become an owner of a company and started Hill Construction located just north of Detroit, Michigan.
“I have a passion for pouring walls,” states Dennie. “I believe it was what I was put on earth to do. After starting my company I found out just how competitive this industry was but also how exhilarating it could be.”
Ten years ago, the northern Detroit, Michigan area had ten good poured wall companies. There was plenty of work and the industry was moving, even in Detroit, a regional market that had taken its fair share of economic hit. “Then the recession came and companies started dropping left and right,” describes Dennie. “When it was all said and done, only we and another good company some forty miles north were left.”
It is a scene all to familiar to some markets and then again, many others can be described by all ten companies hanging around and driving down the price points just to stay alive. When asked how they were part of the 20% that survived, Dennie stated, “I was raised to be frugal and fortunately was able to pay off our debt. The growth that we had enjoyed during the fruitful periods I kept working on to make sure it didn’t leverage us beyond our means. Things were also going well and I thought of our company as a leader, so I joined the CFA. Back then, however, we were so busy and I didn’t have the time to see what CFA was about and I certainly didn’t feel I could break away during the summer to attend an event, no matter how nice the location.”
The number of companies working in the northern Detroit market isn’t the only thing that has changed, so has the mindset for Hill Construction. “I picked up the phone toward the end of last year and called the CFA. I figured I had made it through the recession and considered myself secure and ready to help out. I felt I had a story to tell. What I wasn’t quite prepared for was just how much I would ended up learning in such a short time, the number of fantastic companies that are out there freely offering discussion of their past and their goals for the future. I’m really learning here now.”
Dennie was welcomed into the Association and connections began to happen immediately. After a couple of members reached out from seeing his member announcement, questions like what forms do you use, and what do you do in the winter months to keep busy, were immediate conversation topics that establish some exciting potential. “My son is getting involved today,” states Dennie, “and this makes my business one of those generational affairs. I’m really excited about that and want him to learn as much as he can. He needs to be able to surround himself with challenging conversations and peers rather than just seeing through my eyes. I need to give him the chance to learn how to do things differently.”
The timing couldn’t have been more perfect. World of Concrete was right around the corner and the start that he experienced through a few email and telephone conversations was quickly expanded to several sit down meetings at the CFA booth and during specific networking events. Dennie Hill is convinced that he has hit the jackpot and connected his company to a vital resource for their future.
When asked about what he sees in the future, Dennie quickly responded, “I’ve experimented in the past with a lot of things including expensive liners to try and make concrete look certain ways or achieve an image that I wanted to see in the concrete. With time on my hands in the upper Midwest during these cold months, I’ve figured out a way to engrave concrete with some pretty detailed images. Being able to sit and talk about this product with some like-minded contractors is opening the doors to a much broader opportunity for us to add to our business.”
“Listen, we had started to get really big before the throws of recession, big at least for us. Today, I run a crew of six guys and I’m actively involved. I love it and couldn’t imagine being bigger than we are. We might have to, especially if that is a direction my son and I begin to sense, but right now, we are really happy and enjoying learning.”
Stories like the Hills’ are not surprising nor are they unique in this industry. They can be found and expanded upon every year at the watering hole many companies stop at during the summer at the CFA Summer Convention. It continues to grow as the largest annual gathering of the cast-in-place concrete contractor. Take some time to get the dates on your calendar so that you too can benefit from the conversations that Dennie and his son will participate in.
Concrete Reinforcement Changing
THIS ARTICLE RECOUNTS THE PROCESS CONDUCTED BY ABI CORPORATION, STARTING IN SEPTEMBER 2103, TO INTERNALLY VALIDATE THE MERITS OF USING HELIX MICRO REBAR IN PLACE OF REBAR IN BASEMENT FOUNDATIONS WITH THE GOAL OF REDUCING LABOR.
The requirements to pass the test were simple: the process must save labor and the quality of the finished product must be as good or better than a traditionally reinforced wall. The testing was not scientifically certified and the information in this report is simply a history of the evaluation of the product. It is important this information not be used as a guide or a substitute for the information provided by Helix or a qualified structural engineer.
SMALL SCALE TESTING
Small scale testing began by casting samples that would be representative of 8” nominal wall sections that measured 26” long by 14” high by 7.5” thick. A 3000lb compressive strength concrete mix was used. After 28 days of curing time, the samples were laid flat in a hydraulic press. Three inches on either side were supported and the rest of the sample spanned approximately 20 inches. Pressure was increasingly applied in the center of the samples until they failed.
SAMPLE A was plain concrete. The sample failed at 19,980 pounds of pressure.
SAMPLE B had one #4 rebar floated into approximately the center or the sample. The concrete failed at 16,218lbs of pressure and the rebar began to yield steadily until 22,018 lbs (~0.5 inch crack width). Then it dramatically lost its ability to carry load and the crack quickly opened ~2 inches.
SAMPLE C had two #4 rebar floated into approximately the center. An audible pop was noted at 13257lbs when the concrete failed on the tensile (bottom) side of the sample and a visible crack began to form.
Complete cross sectional failure of the concrete occurred at 21,939lbs and the rebar quickly began to yield to the pressure. The yielding #4 bars were able to maintain a load reading of about 14,000lbs until the crack width opened to approximately 0.05 inches.
At that point a metallic snapping sound was noted and the pressure gauge dropped to 4598lbs and the crack started to open must faster.
SAMPLE D had 9lbs/yard of Helix 5-25. No rebar was used. Under rapid loading the sample failed at 21,705 lbs of pressure.
SAMPLE E had 9lbs/yard of Helix 5-25. No rebar was used. The load was applied much slower than sample 3 to try and detect the yielding of the Helix.
The sample failed at 17,205 lbs of pressure.
Dan Bromely the President of ABI Corporation said, “This test convinced me to move forward with the wall.” The wall he was referring to was a full-scale basement foundation section he poured behind the corporate headquarters located in the South East suburbs of Kansas City, Missouri.
THE FULL SCALE TEST WALL
The materials for the test started as 3000 psi compressive strength mix with 9lbs per yard of Helix 5-25 added at the batch plant. Water was added on site to achieve a 9 inch slump resulting in an unknown, but certainly much lower compressive strength. Aluminum Forms were then used to cast an 8 inch nominal wall, 9 foot tall, 16 foot long with 90 degree turn sections at each end. Other than corner steel, no traditional rebar was used in the wall, only Helix twisted steel micro reinforcement.
The wall was poured and the formwork was removed after 18 hours. It was immediately evident that an 8” long vertical shrinkage crack formed starting at the embedment of an anchor bolt and running down the wall. ABI experts were certain the shrinkage crack was the result of the high ambient temperature and the water added to the concrete mix at the site. This type of crack would have formed in the plastic phase of the concrete no matter what reinforcement was used.
The wall was allowed to cure 7 days and then backfill was placed against the wall. The method of backfill is important because the 12,000-pound loader was run parallel and close to the wall to add additional dynamic and static compressive loads to the wall. Ultimately, 100% unbalanced backfill was achieved with no evidence of change in the wall (see image below).
A hose was placed on the backfill near the wall and water was allowed to saturate the backfill for 7 days. Not only did the backfill become saturated, the soil at any point within 15 feet of the test wall was saturated to a depth of about 8 inches. Again, there was no obvious indication of change in the wall.
The next phase of the test likely generated the most severe loading of the wall. After allowing the backfill to dry, a ready mix truck with 10 yards of water and gravel, weighing approximately 70,000 pounds was backed up to the wall to simulate the pouring of a basement floor. In addition to the weight of the truck, the rear tires of the ready mix truck were spun against a compressed layer of approximately 10 inches of backfill that was trapped between the tires and the wall. Once the truck was stopped, the drum was rotated at high speed and abruptly stopped and rotated in the opposite direction several times. The shifting material and changes in drum direction caused the truck to heave back and forth transferring unknown amounts of energy to the soil inches from the wall. Neither the heaving of the truck nor the simultaneously applied weight and the pushing force of the tires created a visible change in the wall (see image below).
The final active phase of the test was backfilling gravel over the wall with the same 12,000 lb. loader used earlier in the test. The loader with full buckets of gravel was driven up to the wall such that the tracks pushed against and climbed on top of the wall (see image below)
The wall section is now 7 months old and has gone through the 2013-14 winter. The foundation on what would normally be the interior of the basement has been completely exposed since it was poured. There is no doubt the ground froze under the footing so an unknown amount of force was applied to the wall from frost heave. The original 8 inch long shrinkage crack has grown to a 48 inch long tight, but visible crack. During an inspection of the wall on March 18th, 2014 Dan Bromley commented,“That’s nothing” while observing the hairline crack indicating there it was nothing to be concerned about with regard to the integrity of the wall (see image below).
MARKETING STRATEGY
After seeing the results of the in-house testing, ABI was convinced they could offer better quality foundations by using Helix. The next step was to develop a marketing strategy and present the idea to their builders. Like most good marketing strategies, the ABI message is easy to understand and highlights the advantages of the product. Below are the ABI reasons to promote Helix:
- After extensive research and in-house testing we feel that it improves the quality of our foundations.
- It will help us be more productive. We can do more with less people and will help us mitigate the effects of the housing labor shortage as this market grows.
- Safer
- As a builder there may be a marketing opportunity to homebuyers; a chance to promote a better foundation product with the synergistic combination of waterproofing on a Helix reinforced wall.
DOSING HELIX
There are several important considerations when planning how to place Helix into the ready mix truck. Helix comes in 45lb boxes. To achieve a 9lb per yard concentration in a 10 yard truck two boxes (90 pounds) have to be added to the truck. Using the example of a basement that requires 60 yards of concrete, it would require six trucks of concrete and a dozen 45-pound boxes. In order to get the material into the truck, two important tasks have to be accomplished. The first is lifting the Helix to the level of the hopper and the second is a sifting the material so that no clumps are introduced into the truck.
ABI adds Helix at the concrete plant where the material can be lifted to an elevated platform with a forklift. Once the boxes are on the platform, one worker to stand safely with the hopper at waist level and sift the material into the trucks. As the number of projects using Helix increases they intend to look at automated dosing equipment.
Field dosing is an option as well, but can be physically challenging. To experience the worst-case scenario, Dan Bromley personally climbed the truck and sifted the material through a manual doser. Climbing a rear discharge truck without adequate truck mounted work platforms is the least desirable method. It is physically taxing and has a moderate safety risk for the worker. Front discharge trucks with safe working platforms provide for a better situation, but the material still has to be lifted to the level of the platform.
Methods of getting the helix into the truck are really only limited by ones imagination and mechanical ability as evidenced by the videos posted online. Do to an apparent lack of availability or unreasonably high cost, most dosing devices have been self- built by the companies that use Helix. Some are vibrating hoppers with blowers, some are vibrating table with chutes. One off-the-shelf solution may a fiber conveyor like the one available from Portable Conveyors (800) 456-7687. But the conveyor below still lacks a vibratory screen or tray to sift the material before it goes into the hopper and it is more expensive than a most of the homemade solutions.
PRODUCT ACCEPTANCE
In order to gain the support needed for technical acceptance in the Kansas City, Metropolitan Area, ABI thought is was important to have the involvement of well- known residential engineer. Therefore, they contracted Apex Engineering to prepare
drawings with Helix as an alternative to traditional rebar. Last fall, Luke Pinkerton, the President and Chief Technology officer for Helix was in town for a presentation at Kewitt and he was able to come to ABI and meet with Dan Bromley and Clayton Hess of Apex engineering. After that initial meeting, Apex did an extensive review of the science behind Helix.
Apex engineering was able to review a complete engineering report prepared by Helix based on a set of plans for a typical Kansas City foundation design. They were also able to review the documentation on the testing done to prove Helix’s ability to serve as a structural concrete reinforcement. The bulk of that information is now available in a single report named the ER-0279 Report.
Once satisfied, they prepared sealed drawings with notes for the use of Helix as an alternative. Unfortunately, the process took more than 2 months.
In Helix’s 12 years on the market it has been mostly confined to large commercial projects. Those projects are mostly engineered projects inspected by the engineers who designed them and the responsibility remains with the engineer. City inspectors however normally inspect residential construction and they rely on city codes that vary from city to city. The ER-0279 report doesn’t require an inspection to be conducted when using Helix. It only requires that the dosage be annotated on the batch ticket and that a written copy of the batching procedures to be on
hand when Helix is added to concrete. Since there isn’t anything to inspect other than the batch ticket annotation and the presence of written dosing procedures, it will likely present some city building departments with an unknown situation. The ER 279 report does however provide information about verification of dosage. Anyone who wants to make sure the correct amount of Helix is in the mix can take sample amounts of plastic concrete and wash away the cement, separate the Helix, from the aggregates and weigh it.
It’s A New Dawn, It’s A New Day…
Turning the calendar to 2015 has ushered in a great deal of excitement and anticipation here at CFA headquarters. First of all, I recognize that those of you reading this are in one of two camps; the many knowledgeable individuals working for CFA members that have relied on Ed Sauter for a great many years; or a far greater number of individuals working for companies that have yet to experience the powerful advantages that are found in the Concrete Foundations Association.
I am proud to now be serving those of you in that first camp as Executive Director. Since coming on staff in 2001, this Association has demonstrated incredible resilience, unparalleled passion and a hunger for the future that is hard to do justice with words. Your actions are often so much more telling. Ed Sauter has been a tremendous leader and mentor to this industry and this Association. Taking the reigns from the passionate and talented directors before him, Ed managed a period of growth for the CFA that has led to an enviable collection of research, support and prestige. This Association has now placed their trust and future in my hands, hands trained by Ed and prepared to lead the next generation of cast-in-place concrete greatness. I’m up for the challenge and prepared to give you everything I have… are you?
I remain proud of the opportunity to continue serving this industry, and therefore those of you in that much larger second camp. Whether you are an owner of a concrete contracting company or a key individual in a project management role, reading this message you have an opportunity right now to make the most convenient and timely investment in your future. In fact, this investment is one that won’t put your company at risk and it certainly isn’t a strong influence on your cash flow. It will, however, deliver a powerful network of potential and begin doing so the moment you commit your first year’s dues. Each and every one of you can and should have the opportunity to engage your peers and be supported by a powerful network that works every bit as hard as you do.
I possess an endless energy and passion for this Association and this industry that has partly come from the fourteen years of service I’ve already given you and partly for the genetic code found in my wiring. I have much to convey to you, together we have a long way to go and a lot of potential within our grasp. We haven’t even begun to dream our full potential yet. Michael Bublé is credited with that lyric, “It’s a new dawn, it’s a new day, and I’m feeling fine.” Well, unlike Michael, I’m not just feeling fine, I’m feeling charged up. Enjoy the pages of this magazine. They are built for you, each of you. I’d like to hear from you and be challenged to know your needs, your passions and your interests. That’s how I can best serve you, whether you are a member of this great Association or a member of the industry that is benefitting tremendously from the work we are doing. There is always room for you here.
James Baty
