e-glass weekly - November 27, 2007 | Vol 2, Num 48
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Midwest commercial construction market steady

Part two of four
While the Midwest commercial construction market is not experiencing dazzling growth, contractors say it remains steady with some areas of growth. The region’s construction market has been unaffected by the financial market downturn, as seen in the latest release of the Architectural Billings Index from the American Institute of Architects, Washington, D.C.

Growth picked up for architectural billings in the Midwest during October following a slowdown during the summer, according to the ABI, released Nov. 16. The Midwest was the only region that saw the rate of growth increase during the month.

Energy and power facility construction will drive nonresidential growth in the Midwest for 2008, says Ken Simonson, chief economist for the Associated General Contractors, Arlington, Va. “The brightest prospects are energy-related projects. This includes … ethanol plants across the Midwest,” he says.

However, glass-heavy project types will likely start to decline, Simonson says. “There will be widespread slowdowns in 2008, especially in the previously hot office, hotel, resort markets.”

Despite Simonson’s predictions, Christine Shaffer, marketing manager for Viracon, Owatonna, Minn., says office and hotel construction are the two largest areas of growth for the company. In the Midwest, Arkansas, particularly in Little Rock, and Illinois, in and around Chicago, are booming, she says.

Rod Van Buskirk, president and owner of Bacon & Van Buskirk of Champaign, Ill., says he doesn’t expect to see the downturn in glass-heavy segments of the nonresidential market until after the presidential election. In the meantime, the nonresidential construction climate in the Midwest is “overall, very good,” with some communities stronger than others. “In our area, there are communities that are quite active, others not so,” he says. “Some smaller cities or semirural areas aren’t busy if they’re not economically diverse and if that community’s industries aren’t busy.” The larger cities—Chicago, Indianapolis and St. Louis—are all strong, he says.

Strength in the nonresidential sector varies by market segment, says Max Dodson, CEO of Commercial Glass & Metal Inc. in Joplin, Mo. He has seen office construction decline, but the institutional segment has picked up, he says.

“We have several schools being built in the area—that’s our primary business right now,” Dodson says. “There are also several hospital expansions.”

Van Buskirk and Dodson back findings from the most recent Beige Book report from the Federal Reserve.

In the Fourth District out of Cleveland that includes eastern Kentucky, Ohio and western Pennsylvania, commercial construction is steady, with healthcare, transportation and manufacturing construction driving growth, according to the report. Contractors say their current backlogs show nonresidential construction should continue strong through 2008.

In the Seventh District out of Chicago, covering northern Illinois, Iowa, Michigan and southern Wisconsin, nonresidential construction so far has remained unaffected by the falling housing market. However, volatility in the financial markets has “restricted developers’ ability to obtain financing for projects,” according to the report.

Commercial construction and real estate showed positive growth in the Ninth District out of Minneapolis that covers the Dakotas, the upper peninsula of Michigan, Minnesota, Montana and western Wisconsin. Construction was up with several large projects including a 500,000-square-foot retail center in Hudson, Wis. Office, industrial and medical space vacancies also decreased in the Minneapolis-St. Paul region.

Commercial construction and real estate also remained strong in the Tenth District out of Kansas City that includes Colorado, Kansas, western Missouri, Nebraska, Oklahoma and Wyoming. “Most contacts were upbeat about future commercial activity despite some decrease in the availability of credit,” according to the report.

Read about the construction markets in the Northwest and the South in the next two editions of e-glass weekly. To read about the West, click here.

--By Katy Devlin, e-Newsletter Editor, e-glass weekly

Fabrication debris common in heat-treated process

This is the second story about cleaning glass with metal scrapers. A longer story will appear in an upcoming issue of Glass Magazine.

Fabrication debris, metal scrapers don't mix
The demand for heat-treated glass has increased during the past decade due to the development of higher-performance tinted and coated glasses that must be heat-treated to avoid thermal stress breakage. Higher design loads require stronger, heat-treated glass to prevent breakage...

This is the second story about cleaning glass with metal scrapers. A longer story will appear in an upcoming issue of Glass Magazine.

Fabrication debris, metal scrapers don't mix

The demand for heat-treated glass has increased during the past decade due to the development of higher-performance tinted and coated glasses that must be heat-treated to avoid thermal stress breakage. Higher design loads require stronger, heat-treated glass to prevent breakage. According to members of the glass industry, a clean product is delivered to the job site, however, microscopic fabrication debris might be on the glass surface and is essentially undetectable until hit with a scraper.

Meanwhile, window cleaners continue to clean glass with metal scrapers -- the same way they have for the past 40 years or more. Many window cleaners believe the debris on the glass is a result of poor fabricating procedures. Glass fabricators clean and maintain the glass washers and tempering equipment, but this does not prevent the random occurrence of surface particles on heat-treated glass, according to experts in the glass industry.

It’s quite a predicament for two industries involved in different ends of the construction process. The glass manufacturers and fabricators produce high performance coated glasses that assist in safety, energy savings, human comfort and the attractiveness of a building. Before the ribbon can be cut, the window cleaners are called in to do their job.

“Scrapers are a standard technique for construction window cleaning,” says Dan Fields, president and CEO of Fields Construction Services, Livermore, Calif., the West Coast distributor of SRP Scratch Restoration Systems. “All construction window cleaners use blades and scrapers, which will not scratch glass. All scratches come from defects on the glass.”

Fields’ name is prominent on both the Web sites for the International Window Cleaners Association, Kansas City, Mo., and the Association of United Window Cleaners, Milwaukee. He flies across the country to present seminars and supply expert testimony about defects in glass.

“The only heat-treated glass that scratches with ‘metal’ scrapers has excess fabricating debris on the surface as a result of poor fabricating procedures,” he says.

Many washers today include a pre-spray area that removes debris even before it enters the washer, says Bob Lang, sales engineer, Billco Manufacturing Inc., Zelienople, Pa. The company makes and sells machines that wash glass.

However, no equipment upgrade, cleaning or maintenance can eliminate the occurrence of fabricating debris because of the nature of the process, according to those in the glass industry. The large volumes of air used in the quench can create airborne particles, the glass seaming operation creates particles and the occurrence of glass breakage in the tempering oven all serve as a source of microscopic glass particles that will periodically end up in the oven or on the glass and become stuck to the surface of heat-treated glass.

A Canadian company has discovered an alternative to scrapers.

City View Maintenance of Vancouver has been cleaning windows without scrapers since January. Rejean De Guise, who owns the company along with Howard Schuk, says the process involves powders and a paint-thinning product.

“Each time I introduce myself, and tell them [potential clients] I don’t use razor blades, they are [thrilled] out of their mind,” Guise says. “I use the expression new technology.”

Guise says he is planning to expand his company since it is booking about twice as much business as in the previous year.

“We’re not using blades, and it’s such a relief,” Guise says.

To read last week's article, click here.

--By Matt Slovick, editor in chief, Glass Magazine

Transparent projection screen

Woehlburk GbR of Germany introduced the CristalLine transparent rear projection screen made of laminated sheet glass. The screen can be a window or applied behind regular windows, and the glass is not noticeable as a multimedia screen when not in use, according to a company release. When a projector is pointed at the screen, the glass turns into a visual screen that can display multimedia content. Maximum available size is 6.6 feet by 9.8 feet; for larger installations, several screens can be put together. The company can provide shaped screens such as logo forms, curved screens or different aspect ratios. The screens can be used in architectural glass products, digital signage networks and retail applications, among others. The holographic effect makes the screen suitable for three-dimensional effects. Screen resolution exceeds high definition, allowing the screen to be used with high resolution projectors, according the release.
+49 (0) 3731 165187 | www.woehburk.de

Nippon Sheet Glass reports $42 million net income in second quarter

Nippon Sheet Glass Co., Japan, returned to profit in the second quarter, which ended Sept. 30, with $42 million net income, according to financial statements released Nov. 21. For the same quarter last year, NSG reported a loss of $35 million.

The profit is a result of a 2.9 percent increase in sales combined with the favorable currency exchange rate from the euro and pound to the weaker yen. Ninety percent of sales came from the company’s flat glass business, according to the release.

The declining U.S. market and a slowdown in the growth of the German market balanced growth in Russia and Eastern Europe and a steady recovery in Central European economies. The Japanese economy also grew slightly despite higher prices for raw materials and oil, according to the release.

Demand for glass continues to grow in Europe, NSG’s largest market since the June 2006 $3.7 billion acquisition of Pilkington. The European market accounts for half the company’s total sales, according to the release.

NSG remains conservative in its estimates of total net income for this fiscal year, anticipating about $490 million. Higher fuel costs and the slow down of the Japanese and U.S. markets are expected to impact profits in the latter half of the year. Read NSG’s full report here.

Nonresidential construction starts jump 9 percent in October

While total construction starts remained unchanged from September, nonresidential building increased 9 percent to $22.8 billion ...

While total construction starts remained unchanged from September, nonresidential building increased 9 percent to $22.8 billion, according to a Nov. 21 report from McGraw-Hill Construction.

“Homebuilding has weakened steadily over the course of 2007, but nonresidential building through October has held up fairly well,” Robert A. Murray, vice president of economic affairs for McGraw-Hill Construction, said in the release.

The start of several large institutional structures led growth for the sector, with healthcare facilities up 47 percent, public buildings up 41 percent and transportation terminals up 88 percent, according to the report.
Hotel construction increased 13 percent, office construction 7 percent. Store construction, however, fell 8 percent compared to September.

Tighter lending conditions and slower employment growth have not had an affect on the nonresidential market yet in 2007, Murray said, “although some dampening is likely to becoming more discernible in the coming year.”

Read the full McGraw-Hill report here.

More business headlines

...

Asahi Glass announces executive changes
Japan's Asahi Glass Co. announced the creation of several new executive positions, including chairman and CEO, and president and COO, according to a Nov.13 company release ... read more

Demand for flat glass in China expected to grow 8.4 percent annually
Industrialization efforts, new construction gains and government efforts to privatize home ownership will fuel rising demand in China’s flat glass market, according to a report released Nov. 16 by Reportlinker.com of Lyon, France. The gain is expected to continue through 2011, to a demand for more than 31 billion square feet. Drawn, rolled and float glass accounts for 87 percent of overall demand … read more

Southwall revenues dip in third quarter
Revenues slipped 3.36 percent for Southwall Technologies Inc., Palo Alto, Calif., in the third quarter, compared to the same period last year, according to a Nov. 14 company release. Revenues dipped from $9.597 million third quarter last year to $9.249 million this year. Third quarter 2007 income was $250,000 … read more

e-glass weekly - November 27, 2007 | Vol 2, Num 48(Print All Articles)