PHCC Washington Spring 2017

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SPRING 2017

PHCC of Washington PHCC of Washington News is published twice per year for the Plumbing, Heating & Cooling Contractors of Washington Association Greta Flinn, Executive Director P.O. Box 47195, Seattle, WA 98146 Cell: (253) 250-1149 | Fax: (866) 272-2545 http://www.phcc-wa.org For information on advertising in this magazine, please contact the publisher: Eric Johnson, Blue Water Publishers, LLC Phone: (414) 708-2059 • Fax: (414) 354-5317 eric@bluewaterpublishers.com The publisher cannot assume responsibility for claims made by advertisers, content provided by the editor, or for the opinions expressed by contributing authors.

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A Message From PHCCWA President

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xciting times! PHCC of Washington and our industry in general are experiencing growing pains. Fortunately, here we are beginning to get some traction on dealing with the issues of not enough personnel and changing the rules we must work with and under. Gerald Church Our Grassroots and Political Action Committees are working hard to facilitate the advent of change to make our industry great for the generations to come. Let’s not lose sight of our goal: to make our world safer and healthier one customer and one day at a time. We are the first line of defense. It’s time for each one of us to get involved. Only together can we make a difference. Ask yourself, “What can I do?” Not, “What can I get?” Be a part of the solution. Go forth and prosper, Gerald Church President, PHCC of Washington President, J & K Plumbing

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Contents: 4

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A Message from PHCCWA President – Gerald Church

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Update: Grassroots Committee Report

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PHCC National Strategic Plan 2016-2020

12 Zone Director’s Report – Bill Buckingham 14 The Transfer of Power to the Trump Administration 16 Change Can Be a Good Thing – Michael Copp, EVP PHCC-NA 18 PHCCWA Annual Golf Tournament Registration 19 PHCCWA Annual Tournament Sponsorship Form 20 Do You Drive S.A.F.E? 21 PHCCWA Membership Application

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22 PHCCWA Associate Membership Application 4

www.phcc-wa.org • PHCC of Washington News • Spring 2017


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UPDATE: GRASSROOTS COMMITTEE By Brian Harding, General Manager, The Plumbing & Drain Co.

H

ello fellow PHCC members. This is an update on the efforts and progress of the Grassroots Committee’s efforts thus far. We have been meeting once a month for several months now to address the legislative needs of our industry. The task of addressing all of our needs is monumental, and there are many different things to take into account. We are mindful that changes we would propose and hopefully get passed through the legislation could solve some existing problems while inadvertently causing some new challenges that we don’t currently face. To date, we have focused our attention on the tremendous shortage of plumbers in the state and how the current laws generally do not allow for much growth in the pool of plumbers over the next several years. Areas of focus have included; 1. TECHNOLOGY AND, “SIGHT AND SOUND,” SUPERVISION. Currently the law is written so that the supervising plumber must be within, “Sight and sound,” of the trainee(s), which means the supervising plumber must be on site. Many of us in the Grassroots Committee believe that an offsite supervisor could effectively supervise trainees in the field by means of a smart phone or tablet using such means as Skype, Facetime, and photo and video sharing to communicate proper methods of installation and repairs while being able to see what is actually happening on the job to make any corrections as needed. For many of us, this would allow a supervisor to be able to do more technical things on his own while a trainee could perform less technical tasks on a different jobsite independently. 2. RATIOS OF SPECIALTY AND JOURNEY LEVEL PLUMBERS TO TRAINEES. Currently, the law requires a 1:1 ratio of plumber to trainee on commercial jobs and a 2:1 ratio for residential. Many of us agree that these ratios could be increased and plumbers could still effectively supervise trainees with ratios of 3:1 or even higher.

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3. CREATING A NEW LEVEL OF LICENSING FOR DRAIN CLEANING, SERVICE PLUMBING OR BOTH. Many of us have found ourselves in situations where you have a guy that is very qualified to perform certain tasks, but as the law reads, he is not able to legally perform that task. A third-year guy getting cited for installing a toilet seems to be a little silly, for example. One of the things we are discussing is the possibility of creating a drain cleaning license that would allow for the most basic tasks to be completed legally after only 6 months or a year. Setting toilets and installing kitchen sink p-traps for example; only things where is nearly zero risk of a cross connection. Or, perhaps a license after two years where things like repairing and replacing faucets and shower valves could be performed legally, as well as pipe leak repairs and other tasks, again, with very little risk of cross connection exists. The new license(s) would not have any bearing on the existing specialty and journey level certifications. The idea is that the journey level certification would still be the pinnacle and the goal for any person entering our trade. We are not suggesting that these types of licenses be allowed for companies without any journey level plumbers on staff – like handyman companies. But, we have generally acknowledged that there are a number of tasks that can be safely completed with less than three years of training. All of these areas directly correlate with workforce development, so that is often a key part of the discussion as well. Getting the laws changed regarding apprenticeship programs in schools like Skills Centers and other tech schools so that students could earn hours towards certification while in class is something we have discussed as well. Todd Allred and I have met with Washington State Rep. Dick Muri to get an idea of how to go about creating a plan for getting a bill considered for next year’s legislative session. He told us Continued on Page 8 www.phcc-wa.org • PHCC of Washington News • Spring 2017


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that we would need to have something prepared to present to a legislator that would be willing to sponsor a bill by September or October of this year. That is a very tall order, but at least we have an idea of what we need to do. Also, many of you may have heard that House Bill 1890 came through legislative committee early in February. In addition to some changes to the Plumbers Advisory Board - which the Grassroots Committee did not oppose, the bill would have also raised the maximum fines from $1,000 each to $5,000 each. We felt that this would be disastrous as we all know the labor shortage we are facing. It does not make sense to us that we raise the fines without first addressing the legislation – written in 1973 – that has helped lead us to the point we are at now; and to first allow legitimate plumbing contractors to work within reasonable laws and statutes. So, many of us went to Olympia to testify against the bill. We all testified about the very things we are working on in our committee as mentioned above, and of the crisis our industry is in regarding manpower. I would humbly say that our testimony was very successful. One of the legislators on the committee emailed an aid of hers to come into the chamber and meet with

us as soon as we were done testifying. Next thing we knew, we were in the hallway with three of the legislators on the committee (including the chair) and the aid that was dispatched to assist us. We had them very interested in what we had to say, and they gave us some great information about who to work with in Olympia to get some traction on our workforce development efforts. One of the committee members suggested that he would likely amend the bill and add a technology piece to it before submitting it again. We have not heard anything about the bill since then. Although I’ve not testified in Olympia before, I don’t know how it could have gone much better for us. You can find the video of our testimony online. So, that is where we are right now. I hope I haven’t missed anything. Special thanks to all of those donating their time and expertise to the Grassroots Committee. We would like it very much if you came to join us. We have a very large task in front of us, and we could use your knowledge to help us get through it quicker. Also, we will not make any headway without full support from our industry professionals, so the more of us that are on board, the faster things will go. Thank you all and I will see you soon.

PHCC NATIONAL STRATEGIC PLAN 2016-2020: PHCC’s Five-Year Strategic Goals and Objectives During its May 2016 meeting, the PHCC Board of Directors adopted a five-year road map for the future centered on positioning PHCC members for success. The board envisions that “PHCC would become so relevant that PHCC contractors are the best choice for professionalism, reliable products, and knowledgeable service.”

MEMBERSHIP Goal: Joining and maintaining PHCC membership is viewed as essential to contractor success. Objectives: 1. Maintain a minimum of 90 percent retention rate. 2. Double membership by 2020 (3,000 new members). 3. Expand PHCC’s geographic reach. 8

PUBLIC AWARENESS Goal: PHCC members are recognized as contractors of choice. Objectives: 1. Formulate a strategy to identify potential targets for outreach and prioritize based on greatest impact for investment.

Continued on Page 10

www.phcc-wa.org • PHCC of Washington News • Spring 2017


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2. Enhance effectiveness of communication tools, e.g., social media, etc. 3. Increase members’ ability to market themselves with PHCC tools.

DIVERSIFY REVENUE Goal: Diversify revenue streams to develop new products, programs and service offerings. Objectives: 1. Increase relationships with Industry Partners to provide specialized expertise for product and program development. 2. Increase convention/tradeshow participation and attendance from contractors, plumbing and HVACR manufacturers, suppliers and service providers. 3. Develop standards and certifications designations/ certificates to be adopted by the PHCC industry.

WORKFORCE Goal: Reduce workforce shortages within the industry through PHCC’s leadership and education efforts to attract skilled workers for the estimated 138,000 positions needing to be filled by 2020. Objectives: 1. Increase the number and effectiveness of PHCC workforce recruitment resources. 2. Increase the utilization of workforce recruitment resources. 3. Increase PHCC’s role in raising awareness of job opportunities.

HVAC Goal: PHCC is more highly regarded as a valuable and equally recognized resource for HVAC professionals as it is within the plumbing industry. Expansion into the HVAC trade will help increase membership, sponsorship, education, collaboration, awareness, workforce development, etc. Objectives: 1. Increase collaboration with other associations that are predominately heating and cooling associations to promote the value of membership and provide resources to develop HVAC-related education and content. 2. Expand HVAC-related participation and education at CONNECT. 3. Increase support to plumbing contractors to expand into HVAC. 4. Expand opportunities to unify plumbing and HVAC industries.

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www.phcc-wa.org • PHCC of Washington News • Spring 2017


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Zone Director’s Report

By Bill Buckingham PHCC NA Zone 3 Director

I

t is an honor to serve and represent you on the PHCC Board as your zone director. Last October. 18, the PHCC National Board of Directors met in conjunction with CONNECT 2016! It was good to see many of you there in San Antonio and I hope you were as inspired as I was. It was a high-energy educational event, with lots of opportunities to network with contractors and industry partners. During the board meeting, we discussed several challenges and opportunities for our members, and heard staff and committee reports on the progress PHCC is making to protect member

interests and provide the resources they need to be successful. The enthusiasm was high and the outlook for the future of our association and our industry was positive during the meeting. With the rapid change of pace in our industry, I think we can all agree there are many unknowns ahead. The National Board of Directors’ commitment to transform our organization for the good of our members and the industry as a whole is stronger than ever. It’s an exciting time to support their efforts. As your zone director, I am encouraged with the forward momentum taking place throughout the PHCC Federation. During the meeting, we learned of progress in several important areas – membership growth, workforce development solutions, chapter collaboration, increased resources, greater value of HVAC members and much more.

Many of these advancements are in line with the vision in PHCC’s five-year strategic plan to position PHCC members as “contractors of choice.” I am pleased about the progress we’re making to set that stage for our members to exceed their business goals and to reinforce the value of PHCC membership. Please join me in Milwaukee, Wisconsin, Oct 4 – 6, for the next CONNECT 2017. Here is just one of the exciting and different events that will be offered during CONNECT 2017: PHCC & Harley Davidson – attendees will have the opportunity to experience the Harley Davidson Museum (www.harley-davidson. com/museum) during the closing reception in Milwaukee on Oct. 6. Again, it is an honor to serve and represent you.

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www.phcc-wa.org • PHCC of Washington News • Spring 2017


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THE

TRANSFER OF POWER

TO THE TRUMP ADMINISTRATION

W

hether you had the opportunity to watch President Trump’s inauguration or not, the speech that directly follows the oath of the presidency is extremely important in order to understand the vision and tone of an administration’s focus. A newly-elected president will touch on certain issues and themes, signaling what to expect in the first 100 days. As we experience the beginning of President Trump’s term in office, the vision of his blueprint is materializing. Remember, the inauguration address is not only a signal to the American people…it is a signal to Capitol Hill.

AFFORDABLE CARE ACT Tops on his agenda is repeal and replace the Affordable Care Act (ACA)…we all know this. The House and Senate took steps recently to authorize work on drafting legislation that would, in essence, begin to dismantle major provisions of ACA. President Trump then signed (on the day he was sworn in) an Executive Order to repeal and replace. Much more to come on this in the next few weeks and months.

IMMIGRATION POLICIES Also mentioned in his address were tightening immigration 18

policies, preventing manufacturing jobs from being outsourced, and promising to “rebuild” the country’s infrastructure. He also conveyed that he intends the United States will play a leadership role in global affairs (global economy), though he stated that his intention is to also focus on domestic matters. President Trump’s inaugural speech also broke with the GOP regarding entitlement programs, as he wants to keep them as is, while GOP lawmakers on Capitol Hill want to overhaul Medicare and Medicaid.

TAX REFORM One of the most visible issues on Capitol Hill and of which President Trump campaigned, is a comprehensive tax reform policy. Current meetings on Capitol Hill (which include House Speaker Paul Ryan) have been advanced to make that happen. Speaker Ryan is a crucial part of moving a reform package on Capitol Hill as he was a chairman of financial committees in the House prior to being elected speaker. He has pieced together a plan, “Better Way,” that puts the tax reform in a blueprint for action. Many of the provisions of a reform are supported by both sides of the aisle, and PHCC has issues in play (i.e., regulatory accountability, death tax, etc.) that we will push through our national grassroots network system. Make www.phcc-wa.org • PHCC of Washington News • Spring 2017


no mistake, though, “Better Way” has been wellcoordinated with the new administration so as to ensure success. All in all though, it is too early to predict any timing of tax reform, though it is a safe bet that PHCC members will begin to see more and more of the reform in the spring of this year.

INFRASTRUCTURE Another issue President Trump campaigned on and mentioned during his address is infrastructure. This is significant. Infrastructure spending includes many issues. Absolutely it includes roads, highways, and bridge development and maintenance. President Trump is a believer that the health of any economy – the ability to move people and produce (state or national) – parallels its infrastructure (roads, highways, bridges). From our standpoint, we also want underground infrastructure addressed (e.g., Flint, Michigan). But the investment into infrastructure will not be a mere federal investment. It will be a combination of federal funding and public-private partnerships (this will be a very important dynamic of the Trump Administration). Remember, Donald Trump is a “developer.” Infrastructure spending will be a critical part of the success of his first 100 days.

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www.phcc-wa.org • PHCC of Washington News • Spring 2017

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A Message from the PHCC National Association Executive Vice President, Michael Copp

Change Can Be A Good Thing

S

ince returning from PHCC’s CONNECT 2016 event Oct. 19-21, I have spent some time reflecting on the event, and have concluded that we have some dedicated folks in our industry who continuously want to learn how to improve themselves, and hence, offer better service to their clients. Whether it was our members, PHCC association executives, sponsors, exhibitors, presenters or PHCC leadership, everyone came together to network, share best practices and participate in education sessions. The overarching goal for all was to change what we are doing now such that we will consistently delight, and hence, “create loyal, engaged, and satisfied customers” (John Spence, Delivering Business Excellence, May 8, 2015).

“There is a certain relief in change, even though it be from bad to worse; as I found it traveling in a stage coach, that it is often a comfort to shift one’s position and to be bruised in a new place.” – Washington Irving (1783- 1859) Planned and unplanned change is a result of an organization’s need to address a shift within the internal and/or external environment. Andrew Grove, former president and CEO of Intel Corporation, wrote that “what [change] does to a business is profound, and how the business manages this [change] determines its future.” (Grove Andrew, Only the Paranoid Survive: How to Exploit the Crisis Points that Challenge Every Company and Career, Doubleday, NY, 1996. P. 27.) Grove noted 20

Planned (Strategic Thinking) Transformational Change

Unplanned (Strategic Planning) Transactional Change

Proactive- Changes are foreseen and are integral to and are in conjunction with an overall strategic plan to address a specific effort to address performance gaps, meet a business objective or reach a new corporate vision.

Reactive- Changes are unintentional and spontaneous. They are not tied directly to the strategic needs of an organization, but to the tactical readjustment of workflow.

Structured- Changes are intentional and are part of a thoughtful collaborative process of preparation (unfreezing), modification (changing), and normalization (re-freezing).

These changes occur without an intended plan and are typically in reaction to minimizing negative outcomes of a specific situation. Not all unplanned changes are inappropriate if they reduce waste and improve product cost, quality and on-time performance.

Answers what and why

Answers how and when

Modifies an organization’s underlying norms, policies, and objectives.

Seeks incremental improvements in efficiency and effective use of resources while maintaining current organizational values and culture.

www.phcc-wa.org • PHCC of Washington News • Spring 2017


that Professor Michael Porter of Harvard University described six forces that determine a company’s continued prosperity: the power, vigor and competence of company’s existing competitors, suppliers, customers, potential competitors, product substitution and complementors. (Grove, A. p. 28.) When one or more of these forces change, the organization must positively reposition itself within the changing business environment. Planned change may be more transformational depending on the organizational need and/or the change agent who directs the change. Unplanned change is typically a transactional response to impromptu interpersonal conflicts, a procedural deficiency, and/or a process inefficiency not directed by a change agent. Differences between planned and unplanned change include: (Schermerhorn, J., Hunt, J., Osborn, R., Organizational Behavior, John Wiley & Sons, NY, 2000. P. 397.) The PHCC Board of Directors has a well-thought-out, five-year strategic plan that will help us achieve a level of transformational change that is centered on positioning PHCC members for success. We look forward to implementing programs and services that will make PHCC contractors the best choice for professionalism, reliable products, and knowledgeable service. If you’re not a member of PHCC, contact us at membership@naphcc.org to learn more.

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Washington News • Spring 2017

12/18/14 10:48 AM21


THE PHCC OF WASHINGTON STATE ANNUAL GOLF TOURNAMENT JUNE 16TH, 2017 AT Lake Wilderness Golf Course Friday June 16th, 2017 12:00 Registration / Lunch 1:30 Shotgun Start

Date: Time: Registration Deadline:

June 1st, 2017

Place:

Lake Wilderness Golf Course 25400 Witte Road SE Maple Valley, WA 98038

Registration Price Includes: 18 Holes of Golf, Golf Balls, Power Cart, Lunch, Any 2 Drinks (alcoholic or not), and a Banquet Dinner. Cost: Postmarked by May 19th After May 19th PHCCWA Member (Contractor & Associate) $140.00 $150.00 Non-PHCCWA Members $160.00 $170.00 $50.00 Banquet Dinner Only for Non-Golfers No refunds for cancellations or no shows, substitute’s golfers are allowed. Golfer Name Company Paired Together YES NO YES NO YES NO YES NO

My check for the amount of $____________is enclosed or Please charge my credit card $___________ Visa MasterCard Please remit payment to: PHCCWA P.O. Box 47195 Seattle, WA 98146 Fax: 1-866-272-2545 Greta Cell 1-253-250-1149

Company Name: ____________________________________________________ Card Holder:___________________________ Phone:________________________ Card Number:___________________________________Expiration Date:_________ Billing address w/ zip: _________________________________________________

22

www.phcc-wa.org • PHCC of Washington News • Spring 2017


THE PHCC OF WASHINGTON STATE ANNUAL GOLF TOURNAMENT JUNE 16TH 2017 AT Lake Wilderness Golf Course SPONSORSHIP FORM All sponsors will receive: Signage at tournament Recognition in PHCCWA 2017 Fall Magazine Get listed on the PHCCWA Website until 7/15/17 Listing on all publications promoting tournament

Dinner Sponsor Lunch Sponsor Drink Sponsor Hole Sponsor Longest Drive Men Longest Drive Women Closest to Pin (K.P.) My check for the amount of $____________is enclosed or Please charge my credit card $___________ Visa MasterCard

$600.00 $500.00 $400.00 $200.00 $250.00 $250.00 $250.00

Please remit payment to: PHCCWA P.O. Box 47195 Seattle, WA 98146 Fax: 1-866-272-2545 Phone: 1-253-250-1149

Company Name: ______________________________________________________ Card Holder:___________________________Phone:_________________________ Card Number:_______________________________Expiration Date:______________ Billing address w/ zip:__________________________________________________

www.phcc-wa.org • PHCC of Washington News • Spring 2017

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DO YOU ‘DRIVE S.A.F.E.’?

H

ow often do you consider that there are far more serious consequences to unsafe driving than just getting ticketed? In most states, if you killed or injured someone because of distracted driving or playing a role in a road rage incident, you could be criminally charged. If that’s not bad enough, these risky driving behaviors also put your loved ones in harm’s way, whether or not they are even in the vehicle with you. Think about it: What would your loved ones do if your behind-the-wheel conduct resulted in your being seriously injured or killed in a car crash, or you are sent to prison because your actions contributed to another’s injury or death? Bottom line: poor driving decisions could ruin your freedom and tear your family apart. At some point, everyone has made a poor driving decision: speeding to make up for lost time, reading an incoming text message, driving when too tired, or letting emotions take over when encountering a “crazy” driver. The majority of all auto crashes can be traced back to four driving behaviors: Speed, Attention, Fatigue, and Emotion. Branded “Drive S.A.F.E.” (www.federatedinsurance. com/ws/fi/InsuranceResources/PROD_1154112), Federated Insurance’s driver awareness program helps business owners and risk managers call attention to these behaviors to help their employee drivers understand the risks each can present, and their resulting consequences.

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Risky driving habits typically develop over time and can be hard to break. Keeping the S.A.F.E. factors in mind may help you overcome the temptation to engage in behind-the-wheel conduct that puts you and others in danger. Before each trip: • Give yourself ample time to get where you’re going. Not only does it feel good to be early and not rushed, you can significantly reduce your chances of being involved in a crash. • Make a commitment to pay attention to the task at hand, mentally and physically. Be on the lookout for inattentive drivers and drive defensively. • Get enough rest to help ensure peak mental awareness so you can react to hazards that may require split-second maneuvers. • Remain in control of your emotions and act responsibly. Put space between you and motorists whose actions aren’t sensible. Drive S.A.F.E. has one goal: to help keep you and your loved ones out of harm’s way. Please make it home safely today! For more information on all of Federated’s risk management programs, contact your local marketing representative, or visit our www.federatedinsurance.com. www.phcc-wa.org • PHCC of Washington News • Spring 2017


PLUMBING - HEATING - COOLING CONTRACTORS OF WASHINGTON STATE 2017 CONTRACTOR MEMBERSHIP APPLICATION COMPANY NAME:

_______________________________

CONTACT:

_______________________________

ADDRESS:

_______________________________

CITY, STATE & ZIP: _______________________________ PHONE:

_______________________________

FAX:

_______________________________

CELL:

_______________________________

E-MAIL:

_______________________________

WEB SITE:

_______________________________ (Please fill out all the above information)

CONTRACTOR MEMBERSHIP FOR 2017

$1024 year

THANK YOU FOR YOUR SUPPORT! Please check your method of payment and complete all pertinent information: My check for the full amount of $1024.00 I authorize PHCCWA to charge my credit quarterly for annual dues each year until notified in writing I authorize PHCCWA to charge my credit card for annual dues each year until notified in writing MasterCard VISA

CARD NUMBER: _________________________________EXPIRATION DATE: ____________ BILLING ADDRESS WITH ZIP CODE: ______________________________________________ SIGNATURE: ______________________________________________DATE:_______________ Please return with payment to: PHCC of Washington P.O. Box 47195, Seattle, WA 98146 Phone: 1-253-250-1149 Fax: 1-866-272-2545 PHCC membership dues are not deductible as a charitable contribution for US Federal income tax purposes, but may be deductible as a business expense. For 2011, PHCC estimates that 5% ($23.10) constitutes lobbying expense.

IT COSTS TO JOIN, ALTHOUGH IT PAYS TO BELONG www.phcc-wa.org • PHCC of Washington News • Spring 2017

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www.phcc-wa.org • PHCC of Washington News • Spring 2017


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