Commercial & Industrial Insulation – The Forgotten

Technology

May 25, 2010

HW Johns Roofing Manufacturing

Company

Moved HQ and R&D from NYC to Denver

Berkshire Hathaway Company

Over 150 Years of Proud History

18581858 2001200119721972

Commercial Industrial Products

Pipe Insulation

Duct LinerDuct Wrap

Tank & Equipment Insulation

Duct Board

Wall Cavity Insulation

Insulation Board

Two product categories often referred to as building insulation and mechanical insulation

C & I Insulation Value Chain

Architect is an influencer only

Value chain requires competitive bidding at each level

Economic recession means even more competitive bidding

Profitability in the chain often depends upon field change orders and “value engineering”

Commercial and industrial insulation an easy target Insulation

Manufacturer

Distributor / Wholesaler

Insulation Contractor

Mechanical Contractor

General Contractor

Building Owner

Construction Schedule Challenge

“Hell, we aren’t even on the schedule!” Insulation Manufacturer

Distributor / Wholesaler

Insulation Contractor

Mechanical Contractor

General Contractor

Building Owner

Must compete with other trades for access

Damage reduces energy efficiency or requires rework

Building Codes Challenge

Little change in the ASHRAE code for mechanical insulation since the 1999 standard

ASHRAE 90.1 – 2010 represents a significant increase to the code

Space and Timing Challenges Commercial building

retrofit typically not feasible

– Exceptions are mechanical rooms and full renovations

Space constraints and access limit ability to increase insulation

Energy efficiency depends upon proper insulation from the beginning

Value chain leads to “value engineering”

Negative impact of construction schedule

ASHRAE 90.1-2010 adoption and enforcement critical

Commercial building retrofit is difficult

Important Takeaways