e-glass weekly - August 8, 2006
Vol 1 | Num 9
(Print All Articles)

Associations end talks over bath-enclosure standards, codes

Talks have failed between officials at the Bath Enclosure Manufacturers Association in Topeka, Kan., and the Americas Glass Association in Placerville, Calif. They were striving to reach a consensus on whether to create standards or building codes for the bath-enclosure industry.

Officials from both organizations held a conference call in late June to address BEMA leaders’ concerns with AGA’s proposed amendments to the International Building Code and proposed test standards for hardware to ASTM International of West Conshohocken, Pa.

A second conference call was scheduled for July 26. However, officials on both sides pulled out after AGA members refused a request from BEMA to withdraw the proposals.

The AGA “task group did not want to withdraw, so there was no reason to have another teleconference,” says Donn Harter, president and director of technical services for AGA.

BEMA began developing its own bath-enclosure standards in 2005. “It is unfortunate that the associations could not come together in the interest of the public and the industry,” said Chris Birch, BEMA executive director, in an Aug. 3 statement. “However, it is no longer a question of standard or code change for BEMA. The association simply cannot support the code change as written.”

As a result, the AGA proposal will face BEMA opposition as it advances to code hearings sponsored by the International Code Council of Falls Church, Va., in late September. “While BEMA [members] had hoped to use its limited resources to fund the standards process, it will now use them to oppose the AGA code change,” Birch said in the statement.

Harter says BEMA’s opposition could hinder AGA’s success at the hearings, as “the word of the manufacturers is pretty strong, both with contractors and code officials. … If they are able to stop us at code change hearings, then we’ll just go ahead and try again next year.”

However, Harter says he wants future collaboration to occur between the organizations, whether or not the amendments make it through the code change process. “We’ve hoped they would partner with us, and would like to bring dialogue again,” he says. “Even if we prevail, we are still willing to sit down and look at amendments [that address BEMA concerns] that might be practical.”

Union and nonunion glaziers alike rely on training to overcome shortage of experienced workers

Joe Clabbers, president of National Glass and Metal Co. in Horsham, Pa., looks to the glaziers’ and ironworkers’ unions to find quality, trained workers. Andy Gum, president and owner of Thomas Glass Co. in Columbus, Ohio, tries to attract applicants and then trains them in house.

Either way, managers at union and non-union shops all report difficulty finding skilled employees, resulting in more available projects than they have workers to complete.

“There are fewer people that want to be in the trade, and that is a problem that’s only going to get worse,” Gum says. “We are able to sustain a pretty solid-core workforce, but it becomes difficult when you try to build that. For every five we hire, we keep one."

Being a non-union company, Gum says he has to provide applicants with good wages and consistent work to attract and keep them.

Tony Baca, president of Southwest Glass & Glazing Inc. in Albuquerque, agreed, adding that non-union shops require effective training programs because the majority of applicants don’t have prior job knowledge.

“You can’t just go out and run an ad for experienced glaziers. You have to bring in new people and train them yourself,” he says.

Union shops can draw from the local chapters to find skilled workers, says Gary Evans, vice president and owner of TSI/Exterior Wall Systems in Landover, Md. “You have to nurture someone to teach them a highly specialized sub-contractor category,” he says. “We pull from within the union and make them project managers.”

However, Clabbers says, most already have work. “The unions are a source to go to if there are people there; but when there’s nobody, you have to try to go with what you have,” he says. “When guys become available, you try to pick them up.”

As a result, training programs become critical for union shops as well. “The guys that come to us, we refer them to the union,” Clabbers says. “So, in addition to our training, they’re getting classroom training and specialized training at [the union’s] training centers.”

Hurricane and blast-resistant glazing continue to drive protective market

Despite FBI reports of rising robbery rates nationwide, demand for security storefront glazing has remained level for the past several years. Manufacturers instead have been inundated with rising orders for storm- and blast-resistant glazing.

“It makes sense that [demand for protective glazing in commercial storefronts] will begin to rise, but we haven’t seen that yet,” says Scott Haddock, president of GlassLock in Prince Frederick, Md., and president of the Protective Glazing Council in Topeka, Kan. “We’re seeing more demand for blast and ballistic [to counter the threat of] terrorism—most of that work with the federal government.”

Steve Connolly, project manager for Action Bullet Resistant in West Islip, N.Y., agrees. Demand for protective glazing for government buildings has been rising for the last three or four years, he says.

The FBI released in June its preliminary annual Uniform Crime Report for 2005. Nationwide, robberies increased 4.5 percent in 2005 compared to 2004. The Midwest saw the largest increase, rising 8.5 percent, and the West the smallest, edging up 2.3 percent, according to the report.

Robberies in metropolitan areas increased 8.7 percent. Cities with populations of 500,000 to 999,999 experienced the largest increase, with a 9.9 percent change from 2004, according to the report.

Connolly anticipates a rising call for forced-entry or burglar-resistant glazing in the coming years. “I would say we could expect a slight increase, mostly in cities,” he says. However, he expects government jobs with blast- and bullet-resistant glass and systems to continue to dominate the security market.

The other side of the protective market—storm-resistant glazing—has kept many laminated glass producers at capacity in some areas, Connolly says.

Contractors and building owners in the post-Hurricane Katrina environment can already feel the effects of increased demand, Connolly says, as it takes “a lot longer to get products—hurricane glass and hurricane-resistant windows. Instead of six weeks, it’s going to take 12-to-14 weeks.”

No matter what spurs the demand for laminated glass and other safety products, Martin Mandel, president of Allied Glass & Mirror Co. in Cincinnati, appreciates the business, particularly during a time of price hikes and fuel surcharges. “The prices have gone through the roof,” Mandel says. “But we’re still pretty healthy for our niche. … We sell a lot of laminated glass, and it keeps us always busy.”

Asahi receives AA issuer rating

Analysts from the Tokyo-based Rating and Investment Information Inc. maintained their AA issuer rating for Asahi Glass Co., of Japan, according to a July 31 article in The Nikkei Weekly...

Analysts from the Tokyo-based Rating and Investment Information Inc. maintained their AA issuer rating for Asahi Glass Co. of Japan, according to a July 31 article in The Nikkei Weekly.

R&I listed the glassmaker’s outlook as “stable,” and attributed the high rating to Asahi’s broad product range and high market share, according to the article written by R&I Analyst Toshifumi Nagasaki.

However, Nagasaki wrote in the article, “to ensure stable earnings, it will be vital for Asahi to improve its money-losing operations, including North American production of construction-and automobile-use glass, as well as explore new, profitable business areas.”

Asahi’s North American operations include AFG Industries of Kingsport, Tenn., and several AGC Automotive locations.

Nagasaki also noted the current difficult environment for glass producers, because of rising fuel prices. “Under the circumstance, Asahi has come up with a price-hike policy for its construction-use sheet glass to pass a recent surge in its costs of fuel, including heavy oil, on to customers. How successfully the company can implement the policy deserves a close watch,” he wrote in the article.

The week's business headlines

...

China's Fuyao submits bid for ACH glass operations
Officials from auto-glass maker Fuyao Glass Group Industries Co. of China bid last week on Automotive Component Holdings LLC of Tulsa, the glass segment of Detroit’s Ford Motor Co., according to an Aug. 1 report from the Dow Jones Newswire.

Fuyao is one of several possible buyers for the company, according to the article… read more

Impact-resistant product sales drive growth for PGT in second quarter
Sales rose 39 percent to $108.7 million in the second quarter of 2006 for Venice, Fla.-based PGT Inc., compared to the same period last year, according to an Aug. 2 company release.

Company officials attribute the large gains to increased sales volume of its WinGuard line of impact resistant windows and doors… read more

PGT officials also announced in an Aug. 1 release that the underwriters of its initial public offer purchased more than 1.3 million additional shares of the company’s common stock.

The company went public in June with an initial public offering of about 8.8 million shares of common stock priced to the public at $14 per share… read more

Solutia Europe secures $256 million loan
Belgium’s Solutia Europe, a subsidiary of Solutia Inc. in St. Louis, closed on a $256 million loan to close in 2011, according to an Aug. 1 company release… read more