May 2010
Newsletter
Management
Michael O’Grady examines the importance of putting yourself in your customer’s buying situation when selling goods or services in his article titled “Sell to Your Customer’s Needs and Wants.” Read his article.
Marketing
CallSource® VP of Home Improvement Services, Brad Barnett, offers an overview of state and federal telephone recording laws in his article titled “Don’t Let a Quantum Leap Forward Land You in Hot Water.” Read his article.
Training
In his article titled “Missed Calls Are Missed Opportunities”, CallSource HVAC Director, Jas Jackson, gives advice on why answering all telephone calls into your business is crucial to your company’s profitability. Read his article.
Industry News
Construction Activity Index Reaches Highest Mark in Over Two Years
U.S. architecture firms have been showing signs recently that they may be getting nearer to ending their two-plus year downturn. The American Institute of Architects (AIA) reported that, for the third straight month, its Architecture Billings Index (ABI) has gone up. As a leading economic indicator of construction activity, the ABI reflects an approximate nine to 12 month lag time between architecture billings and construction spending. The AIA said the April ABI rating was 48.4, up from a reading of 46.1 the previous month.
“It appears that the design and construction industry may be nearing an actual recovery phase,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “The economic landscape is improving, although not across the board, but doing so at a gradual pace. It is quite possible that we will finally see positive business conditions in the foreseeable future.”
Although this score reflects a continued decline in demand for design services (any score above 50 indicates an increase in billings), it is the highest score since January 2008 when revenue at architecture firms headed into recession. Source: The American Institute of Architects
House Passes Home Star Bill Designed to Spur Economy
The Home Star Energy Retrofit Act of 2010, nicknamed “Cash for Caulkers,” is designed to spur economic recovery and job creation by providing $6 billion in rebates to homeowners who make energy efficiency upgrades. The Silver Star rebates are intended to reimburse homeowners for installing energy savings measures. Such measures range from whole-house sealing and insulation to window and door replacement to heating and cooling equipment upgrades. The maximum rebate provided for a home under Silver Star is $3,000 or 50 percent of the total cost of the installed measures.
The Gold Star rebates are intended for whole-house energy reduction and are based on software simulations comparing the energy use of a home before and after retrofits. Gold Star provides a $3,000 rebate for a 20-percent reduction in a home’s total energy consumption, with an additional $1,000 for every additional 5-percent reduction. The maximum Gold Star rebate per home is $8,000.
While industry groups are excited about the positive potential impact of this legislation, many have raised concerns about certain provisions in the bill. Contractors who perform work under the Silver Star program must have a work force certified by the Building Performance Institute (BPI), North American Technician Excellence (NATE), or the Laborers’ International Union of North America (LIUNA), and those who perform work under the Gold Star program need to be specifically accredited by BPI. The legislation did include an amendment that would require the Department of Energy to approve or deny proposed alternatives to BPI within 30 days. Source: achrnews
NATE Cautions Flood Victims to Hire Certified Contractors
In the aftermath of tragedy, there are often unscrupulous operators who descend on unsuspecting homeowners to 'rescue' them from their plight. The North American Technician Excellence (NATE), a VA-based HVAC certification organization, is issuing warnings to victims of the Tennessee flooding regarding who they should hire to repair or replace flood damaged HVAC systems.
"In the coming weeks, homeowners around the region will be depending on HVAC contractors to evaluate and replace HVAC units to ensure a comfortable summer. With the potential for work comes the opportunity for fly-by-night operations to try and make a quick buck," says Mike Reed of The Bradford Group, spokespersons for NATE.
Hiring contractors with NATE certification establishes that technicians installing HVAC systems have successfully passed a series of tests and displayed a working knowledge of the HVAC industry. It also demonstrates that the person has the experience to complete HVAC projects with all the necessary permits and inspections. Source: Contracting Business
Legislation for Federal Building Personnel Gains Support
New federal legislation has been introduced that will provide training for federal building personnel in the areas of building operations and maintenance, energy management, safety and design functions. The Federal Building Personnel Training Act of 2010 is supported by 33 organizations involved in the design, construction, operation, and maintenance of buildings and by the High-Performance Buildings Congressional Caucus Coalition (HPBCCC), a private sector building coalition.
Federal workers can be trained in a series of core competencies relating to building operations, maintenance, energy management and safety. “This is an important piece of legislation for the design, construction, operation, and maintenance of our nation’s federal buildings,” said Gordon Holness, ASHRAE president. “The federal government sets an example for the rest of the nation and its efforts are a visible example of what can be accomplished in building and maintaining energy efficient buildings with high indoor environmental quality.” Source: ASHRAE.com

