Florida Roofing Magazine - November 2016

Florida

November 2016

ROOFING A Publication of the FRSA – Florida’s Association of Roofing Professionals

Workers’ Compensation Regress Cold-Applied Adhesives for Modified Bitumen Internet Marketing Trends Strategic Planning Hurricane Matthew and Price Gouging

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TABLE OF CONTENTS

November 2016

Florida

ROOFING Now Available Online at www.floridaroof.com/florida-roofing-magazine/

FRSA – Florida Roofing Magazine Contacts:

14

S.T.A.R. Award Shining Star Winner

Are you documenting your best and most interesting 2016 Florida roofing projects for the next S.T.A.R. Awards?

6 | Workers’ Compensation Regress

Have a funny feeling we are moving backwards? Maybe it’s from what’s going down in Florida’s Workers’ Comp.

For advertising inquiries, contact: Heidi Ellsworth at: heidi@floridaroof.com (800) 767-3772 ext. 127 All feedback including Letters to the Editor and reprint permission requests (please include your full name, city and state) contact: Lisa Pate, Editor, at: lisapate@floridaroof.com (800) 767-3772 ext. 157 Florida Roofing Magazine, PO Box 4850 Winter Park, FL 32793-4850 View media kit at: www.floridaroof.com/ florida-roofing-magazine/

8 | Marketing Trends

Trends are changing again. Here are some tips on staying in front of your prospects on the Internet.

12 | Cold-Applied Adhesives for Modified Bitumen

On the iPad

Cold-applied adhesives are now being used in modified bitumen roofing as an alternative to torch applications.

17 | New Workers’ Comp Rates www.is.gd/iroofing

20 | Strategic Planning

Develop a strategic business plan to see above the routine of daily business operations.

Any material submitted for publication in Florida Roofing becomes the property of the publication. Statements of fact and opinion are the responsibility of the author(s) alone and do not imply an opinion or endorsement on the part of the officers or the membership of FRSA. No part of this publication may be reproduced or transmitted in any form or by any means, without permission from the publisher.

Florida Roofing (VOL. 1, NO. 11), November 2016, (ISSN 24728705) is published monthly by FRSA, 7071 University Boulevard, Winter Park, FL 32792. Periodicals Postage paid at Orlando, FL. POSTMASTER: Please send address corrections (form 3579) to Florida Roofing, PO Box 4850, Winter Park, FL 32793-4850.

www.floridaroof.com | FLORIDA ROOFING

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PRESIDENT’S COLUMN George Ebersold

ASCE 7-16 Wind Maps Mean High Costs Fall is finally here (but you can’t tell by the temperatures) and I am awaiting some cooler weather as I am sure you are too. The Political Action Committee golf and clay shooting tournaments, held in Sarasota in conjunction with the Fall Board and Committee meetings, went very well. We were able to raise about $8,000 for the PAC fund. Thank you to our dedicated members and sponsors! Attendance was up and all the committees were in overdrive.

Roger Jeffery (an engineer with FRSA Member Terracon) presented his findings and calculations of pressures based on the new ASCE 7-16 wind map as well as comparisons of the ASCE 7-16 to the 7-95 and 7-98 wind maps. The ASCE 7-16 wind map includes several new pressure zones for both residential and commercial structures, as well as increased pressures for new and existing homes and buildings. In appearance, this is good as new structures will be able to withstand higher wind loads and speeds, but the problem is with existing structures being able to comply. FRSA and many other national associations are vehemently opposed to the 7-16 wind map based on the additional costs of complying with the new requirements and pressures for existing structures.

To further our point, FRSA asked a roofing contractor to work up the additional costs for compliance on an existing house with a 5:12 gable roof (approximately 22 squares), aluminum soffit, fascia and gutter, shingle, felt and half-inch plywood, and found it will cost an additional $18,167 to comply to the new ASCE 7-16 standards. Now imagine the additional costs for a commercial building to comply with a Gypsum, Lightweight Insulating Concrete, Tectum, or Load Master deck. Based on the new pressures (and other requirements in the standard), these types of decks will not meet the requirements and would need to be retrofitted, and those costs would most likely exceed the value of the buildings.

How does one safely and cost effectively replace or retrofit a deck on an occupied building without shutting down the business?

Contracts have been signed and the Executive Committee announced that the 2018, 2019 and 2020 FRSA Convention and the Florida Roofing & Sheet Metal Expo is moving to a Wednesday through Friday format and will be held at Gaylord Palms Resort in Orlando (Kissimmee). FRSA leadership has heard the request from exhibitors and have agreed to make the format change. Thanks to all who completed the Convention and Expo surveys.

We are actively looking for a new home for FRSA and the Building Committee has reviewed many potential locations, but the right one has not materialized yet. Our search has included over 65 properties (both land parcels and properties with an existing building).

The Educational Foundation reviewed and discussed seminars for the fall, spring and 2017 Convention, along with the need to develop a seminar based on the new OSHA silica standard.

The Governmental Affairs Committee discussed the ongoing assignment of benefits (AOB) issue and how to curb the abuse of the AOB’s by some contractors. FRSA is not against the use of AOB’s, rather we would like some controls established to stop the abuse that is rampant in the industry. Insurance companies have already stated that as a result of increased AOB claims, rates will increase in the coming year. And speaking of increases, despite our best efforts, the Office of Insurance Regulation has increased FRSA President George Ebersold, the workers’ comp rate by 14.5 Tom Tanenbaum Roofing Inc, Orlando percent beginning on December 1, 2016 for new or renewal policies (see page 17 for rates). This action was a direct result of the Castellanos and Westphal Supreme Court rulings.

As I mentioned earlier, the committees were in overdrive and much was accomplished: THANK YOU TO ALL THAT ATTENDED! In closing, I would like to wish all of you a safe, healthy and happy Thanksgiving holiday season.

Best Regards,

George Ebersold – FRSA President george.ebersold@tanenbaumroofing.com

www.floridaroof.com | FLORIDA ROOFING

5

FRSA LEGISLATIVE COUNSEL Cam Fentriss

Workers’ Compensation Regress The topic of the day (and for months to come, maybe even years) is workers’ compensation. It seems like we are traveling back in time, and we actually are because the problem that is plaguing us was fixed in 2003 but invalidated by the Florida Supreme Court in 2016 so that we go back to the way things were in 2003. This is not true for everything in workers’ comp, but it is true for one of the most expensive components of the system: fees charged by attorneys who represent injured workers.

These attorneys will tell us that this change is good because injured workers really need attorney representation, but I do not think the statistics support that – most injured workers are doing just fine accessing benefits in the self-executing system. These lawyers also say that they cannot help these injured workers for fees that calculate out to less than minimum wage. Okay, I can understand that. But I’d like these lawyers to explain to us why it seems the solution is to allow them to be paid $200 to $400 per hour, especially when defense attorneys are usually earning less than $200 per hour. Why don’t these claimant attorneys propose they be paid $100 or $150 per hour? Because they did not spend years and thousands of dollars getting their attorney fee complaint to the Florida Supreme Court just to settle for reasonable fees – this is about cashing in, winning big, and hitting the litigation lottery.

So how about those injured workers – are they demanding that claimant lawyers be paid $200 to $400 per hour? Not likely. I doubt they even know anything about what their attorneys are getting paid. I think much of the attorney fee process takes place after the injured worker exits the stage, benefit in hand. And I think it is a pretty safe bet that if an injured worker knew that his or her attorney was getting a fee four times greater than the injured worker’s benefit, it would be a problem.

Claimant attorneys are going to work very hard to keep their open-ended fees right where they had them in 2003. But they also know that with these big fees come big increases in statistics causing that arrow on the graph to shoot for the sky and making a perfect picture for a much-needed rate increase. What would you do if you were in their shoes? You would come right out of the box shifting blame and creating confusion, hoping to take yourself out of the spotlight as long as possible so you can just keep collecting ridiculously large fees.

It seems the first step in that strategy is to attack the messenger, NCCI, because it says “charges for attorney fees are going up, up, up, so rates have to be increased to cover the cost.” Ignore the math and accuse the messenger of doing nothing more than trying to increase the profits of insurance companies. Yes, it is ironic that the group that fought all the way to the Florida Supreme Court 6

FLORIDA ROOFING | November 2016

to increase their profits is complaining that the injured worker attorney fee increase in cost to the system is for the purpose of increasing the profits of the insurance companies. That does not even make sense.

Another part of the strategy would be to make a lot of growling noises in an effort to intimidate the regulators who make the decision on whether or not to allow a rate increase. You could do that by suggesting that the Office of Insurance Regulation would be handing the insurance industry a big windfall if they approved the requested rate increase of nearly 20 percent. If your growling reduces the increased rate below 20 percent, that changes the perception (which is everything in the world of politics) from a crisis to not enough to warrant a quick legislative fix.

Digesting all that is exhausting, and this is just the first shot. Claimant lawyers currently have the advantage, and they are not taking it for granted. Among other things, they are strengthening their public relations efforts and they are working harder than ever hoping to see their favorite candidates elected to Florida’s House and Senate.

We are doing the same thing, and we will be stepping up those efforts because it is what we have to do to win. I expect this to be a very long and painful battle.

Anna Cam Fentriss is an attorney licensed in Florida since 1988 representing clients with legislative and state agency interests. Cam has represented FRSA since 1993, is an Honorary Member of FRSA, recipient of the FRSA President’s Award and the Campanella Award in 2010. She is a member of the Florida Building Commission Special Occupancy Technical Advisory Committee, President of Building A Safer Florida Inc. and past Construction Coalition Chair (1995-1997).

September Correction I would like to make a clarification to my article in the September 2016 edition of Florida Roofing Magazine. The Florida Homeowners’ Construction Recovery Fund notice that now must be included in your residential contracts applies to contracts valued over $2,500. I should have included that specific point, and I apologize for any inconvenience.

FRSA LEGAL COUNSEL Trent Cotney, PA

Hurricane Matthew and Price Gouging Hurricane Matthew has brought a myriad of legal issues to the forefront. One of the most important things for any roofing contractor or supplier to remember during hurricane repairs are the Florida-specific, price gouging laws. Florida Statute 501.610, commonly referred to as the Price Gouging Statute, states that during a declared state of emergency the rental or sale of essential commodities for an amount that grossly exceeds the average price for that commodity during the 30 days before the declaration of the state of emergency is unlawful. The statute defines a “commodity” as any goods, services, materials, merchandise, supplies, equipment, lumber, and other products necessary for consumption or use as a direct result of the emergency.

Inflated prices on the rental or sale of the commodities is unlawful unless the increase in the amount charged is attributable to additional costs incurred in connection with the sale of the commodity.

With regard to the roofing industry, the Price Gouging Statute would apply to a roof that was damaged as a result of a hurricane during a declared state of emergency. Decking, underlayment, shingles, and other

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materials used when repairing the roof would be subject to the Price Gouging Statute, and it would be unlawful to increase the price of the materials by an amount that grossly exceeds the average price of the commodity during the 30 days prior to the declared state of emergency. In its definition of commodities, the statute specifically mentions lumber and encompasses other materials used as a direct result of the emergency.

The definition also refers to services and resources, which would likely entail a restriction on grossly increasing prices for the labor portion of the roof repair.

In a civil suit filed by the attorney general as a result of statewide investigations into price gouging by Sun State Trees & Property Maintenance, Inc., the complaint stated the removal of a tree that damaged one man’s roof was subject to the Price Gouging Statute. After the man complained of the cost of removal, Sun State offered to complete the job for a third of their original offer. This is an example of a service relating to the repair of a roof subjected to the Price Gouging Statute and would imply further roof repair would be included as well.

Despite these restrictions on increasing prices, the Price Gouging Statute seems to understand that increased prices can affect more than just consumers.

Roofers can use things like increased mobilization costs to justify increased prices during a state of emergency.

Therefore, so long as roofers are able to show that increased prices reflected the increase in costs, they can avoid hefty civil and criminal penalties.

Author’s note: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.

Trent Cotney is Florida Bar Certified in Construction Law, General Counsel and a director of the Florida Roofing and Sheet Metal Contractors Association (FRSA), a director of the West Coast Roofing Contractors Association (WCRCA), and a member of the National Roofing Contractors Association (NRCA), Midwest Roofing Contractors Association (MRCA) and several other FRSA affiliates.

For more information, contact the author at 813-579-3278 or visit www.trentcotney.com. www.floridaroof.com | FLORIDA ROOFING

7

Marketing Trends Heidi Ellsworth, HJE

For those of us who are active every day in one form of marketing or another, it is hard to separate the forest from the trees. One of the areas where I find ongoing good marketing information is on LinkedIn. By simply spending a small amount of time every day, I collect items of interest that I believe will help my clients with their marketing along with my own professional development.

By following several posts and influencers, I have found a couple of lists talking about 2016 marketing trends. I have added in key points for roofing or construction, but usually these trends can be applied or researched to not only grow business today but help you stay ahead of the competition tomorrow.

Reviews

Optimization

Targeting

Google is constantly changing and with several upgrades and new software launches, mobile optimization is more important than ever. In fact, for sites that are not mobile friendly they are losing SEO. Be sure to talk to your provider or web designer about optimizing your website for mobile. It is not just about making it easy for your customers to use your site but it is also about making it easy for them to find you.

Sitting with my daughter the other day, we were looking for services and she insisted that we check the reviews.

Almost all of them were bad and I asked her if she ever puts up a good review. “I only do a review if it is a bad experience,” she replied. It is going to be an uphill battle to get the good word out and minimize the bad, but it is important. Reviews are a resource to today’s customers but reviews will become even more critical with the millennials. Now is the time to put practices and procedures in place to gather strong and positive testimonials, reviews and referrals so you are ahead of the market. Determine how to use and share them to help build a positive brand.

I learned in my college communications class that a good communicator knows their audience. It is even more essential in marketing. Today’s technology allows us to fine tune our messaging for the right audience. If you are providing both residential and commercial roofing services, don’t try to use the same content or messaging for both customers; they are different. Take the time using customer relationship management (CRM) software to know who your audience is, what they want to buy and what they want to receive in order to gather the right leads and close sales.

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Storytelling is a strong marketing trend. It is about creating an image of your company and telling a good story that intrigues customers and potential customers. By separating your business away from the rest of the market with strong imagery and information, you begin to create a lasting impression and strong branding for your company. For example, the market may know you are the family-based company that can be trusted or maybe the technically advanced solution for their roofing needs, but you need to continue to tell that story every day. Determine your strengths and share them through social media, web and in every day conversations. This will keep your brand alive for your employees, customers and prospects.

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technology and marketing automation, it allows companies to start coordinating marketing efforts from the lead to the close. It is also a major benefit for ongoing communications that fit a predefined plan. It is going to be obvious by the marketing itself who is using marketing automation. By creating, scheduling and tracking consistent emails, content, audience segments and social media posting, management is able to make informed and scalable decisions for future marketing.

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Social media continues to take a lead in engagement marketing. Understanding the social media that your customer base uses can save a lot of time and effort and also works with the earlier trend of targeting. In roofing, residential tends to use Facebook and commercial uses LinkedIn and Twitter, but this continues to evolve. Sites like Instagram and Pinterest may be the next hot spot for residential marketing. LinkedIn and Twitter are finding new ways of promoting business and helping with your marketing efforts. This is one trend that you need to be constantly researching. It is all about engagement so you need to know that your audience is listening.

Heidi J. Ellsworth has worked in the roofing industry for over twenty years. Previously leading sales and marketing initiatives for EagleView Technologies and Carlisle, Ellsworth launched HJE Consulting Group in 2015. This sales and marketing consulting firm focuses on supporting overall marketing strategies and implementation along with providing consulting to build strong collaboration between sales and marketing teams for business profitability and success. Ellsworth leads advertising sales for Florida Roofing Magazine along with participating in FRSA board meetings. She also provides sales and marketing consultation for NRCA contractors, along with consulting for the NRCA and The Roofing Industry Alliance for Progress. She recently helped found the National Women in Roofing (NWIR) association where she serves as chairperson for the organization.

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View Member Benefits at www.floridaroof.com, Member Login, Member Benefits.

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11

The Use and Application of Cold-Applied Adhesives for Modified Bitumen Membrane Roofing Roof Coatings Manufacturers Association

The use of cold-applied modified bitumen (MB) membrane roofing systems is perhaps the fastest growing segment of the cold-applied roofing industry.

Cold-applied adhesives were initially used as the inter-ply adhesive in the construction of built-up roofing systems. The use of cold-applied adhesives has expanded more recently, and they are now an excellent method for adhering modified bitumen roofing systems as well.

For obvious reasons, the use of cold-applied adhesives in roofing provides an attractive alternative to the use of hot asphalt or open-flames. This article will focus on the application of cold-applied adhesives for MB membranes.

an incomplete or weakened bond. Unless the laps are to be torched or heat welded, a visible bleeding-out or “bead” of adhesive should be seen at the laps during application in accordance with the membrane Types of Cold-Applied Adhesives manufacturThe term “cold-applied” is used to describe a type er’s instructions. This is a visual way to ensure that the of product that can be applied at ambient temperature. critical lap areas have received sufficient amounts of The base resin for these adhesives generally consists adhesive. of bitumen (asphalt or coal tar). Additional components may include: a polymer modifier, petroleum based sol- Installation Methods and Tips vents, fibers and fillers. The polymer chosen to modify Cold-applied adhesives can be applied using a the asphalt depends on the final properties desired. The notched trowel, notched squeegee, roller, spray or most common modifiers for modified bitumen cold-ap- automatic spreading equipment. Always follow the plied adhesives are: manufacturer’s directions for coverage rate and application method. Verify the correct coverage rate of the ■■ Styrene-Butadiene-Styrene (SBS), cold-applied adhesive by measuring the volume applied ■■ Styrene-Isoprene-Styrene (SIS), in a small pre-measured portion of the roof, by using ■■ Styrene-Butadiene Rubber (SBR), and a wet film gauge, or by using applicators with metered flow rates. Follow the membrane manufacturer’s rec■■ Styrene-Ethylene-Butylene-Styrene copolymers ommendations for unrolling and relaxing modified (SEBS).

Acrylics, butyl, neoprene and urethanes are also bitumen sheets prior to installation in cold-applied adhesive. A few application tips include: start with an used as modifiers. approved clean, dry, smooth substrate; positive drainage is required; ensure that solvent vapors will not be Application Considerations of drawn into the building; start at the lowest part of the Cold-Applied Adhesives Like all roofing products, application is an important roof; install the adhesive evenly and at the recommendkey to long-term, successful performance. The following ed rate; and ensure the side and end laps are completely are a number of items to consider when using cold-ad- sealed. Cold-applied adhesives should not be used with membranes which have poly burn-off films. hesive with modified bitumen membranes.

Rate of Application

The rate of application is of primary importance when using any cold-applied adhesive. The adhesive must be applied at the manufacturer’s recommended rate and application temperature range, as excess material can trap solvent in the membrane, causing membrane softening, slippage, or loss of granules. An excessive amount of adhesive can cause the membrane to float and retard full adhesion to the underlying substrate. Inadequate amounts of adhesive can result in 12

FLORIDA ROOFING | November 2016

Adhesion Considerations

Laps are critical and it is important to follow the membrane manufacturer’s guidelines for lap adhesion.

Some manufacturers recommend that the laps be left dry until the field of the roof is complete, and then adhered separately with a heavier-bodied adhesive. The membrane manufacturer may specify that laps be rolled after application. Some materials are designed to have the laps heat (hot air or torch) welded. It is very important to keep foot traffic and equipment off finished

portions of the roof until the adhesive has set, as weight can displace wet adhesive, creating a void and/or staining of the roofing granules.

Cold-applied adhesives typically take longer to set than a hot asphalt application. On slopes above ½ inch in 12 inches, membrane manufacturers often require rolls to be installed parallel to the slope (strapping), and nailed at the high point of the roll under the endlap (backnailing) to prevent slipping. Consult the membrane manufacturer for specific fastening requirements.

It is good roofing practice in strapped roof application to have the lap facing away from the prevailing winds.

Application Temperatures and Set Times

Consult membrane manufacturer’s installation instructions for acceptable application temperature ranges for membrane materials. Cold-applied adhesives can typically be installed at temperatures between 50˚ F and 100˚ F (10˚ C to 38˚ C). Recommended product temperature is between 70˚ F and 100˚ F (21˚ C to 38˚ C). This will ensure that the adhesive is the proper viscosity for application.

Full set times are dependent on many factors, including temperature, humidity, solvent and coverage rates.

Generally, colder temperatures, high humidity or high application rates retard set up time of the adhesive. For the specific application temperatures and rates, storage

conditions and mixing instructions, consult with the individual manufacturer’s recommendations.

Odor

One factor that must be kept in mind when using a cold-applied adhesive is that solvent vapor is released as the material dries. Care must be taken to ensure that solvent vapors do not get into the ventilation system.

Some adhesives may be manufactured with solvents that are combustible; care should be taken that vapors do not come in contact with sources of ignition.

Cold-applied adhesives provide another successful installation method for modified bitumen membranes.

For additional information about roof coatings, adhesives and cements, visit www.RoofCoatings.org. The Washington, D.C.-based Roof Coatings Manufacturers Association is the national trade association representing the manufacturers of asphaltic and solar reflective roof coatings, and the suppliers of materials, equipment and services to the industry. RCMA has more than 70 members who manufacture or supply roof coatings products. It maintains industry expertise in building codes and standards, technical research and end-user education.

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13

S.T.A.R. Award Shining Star Winner Florida Roofing magazine is continuing coverage of the winning projects from the 2016 S.T.A.R. Awards – the Spotlight Trophy for the Advancement of Roofing – which highlights industry projects throughout Florida.

FRSA members submitted their roofing projects completed during the previous year, along with an application detailing the project, and in-progress and completion photos for placement in one of six categories.

Project submission required a description including tear-off (if applicable), preparation, design work, installation, problem solving and any other information that might be unique to the job, such as safety requirements or field fabrication.

Categories for submission included: Sustainable, Community Service, Steep Slope, Low Slope, Specialty Metal, and Unique.

■■ Superintendent and Foreman: Mark Ganskop A panel of three industry professionals was established to ■■ Architect: Conner Ross – Gilchrist Ross Crow Architects review the submitted projects. Judging criteria included, but was not limited to: aesthetics, size, completion time, special ■■ Manufacturer: Ludowici Roof Tile Inc. circumstances, unique project design, complexity of project, ■■ Manufacturer Rep: Sam Mattina workmanship, teamwork, testimonials, and creative problem ■■ General Contractor: Culpepper Construction Co. Inc. solving. The judges selected three projects in each of the six categories to receive either first, second or third place S.T.A.R. ■■ Project MVP: Mark Ganskop Awards.

The FSU Housing Replacement Phase I Steep Slope Old World Craftsmen Inc. won first place in the steep slope Roofing Project was comprised of two six-story dormitory category for the FSU Housing Replacement Phase 1 project. buildings. The buildings were designed to match historical Their team consisted of: structures on the FSU Campus. Therefore, the roof pitches ■■ Contractor and Estimator: Jeff Ganskop were steep, 4:12 and 12:12, and the buildings were roofed with a Ludowici Classic XL flat tile in a three-color blend of ■■ Project Managers: Matt Ganskop and Mark Ganskop Clay Red, Summer Rose and Santiago Rose. Ludowici Tile is known for its durability and the manufacturer provided a 75year material warranty.

In addition to the high-quality clay tiles that were installed on the dormitory building roofs, the structures also had the following specialty roofing components: ■■ Seven-inch K-style copper gutter, downspouts and collectors were custom-fabricated by Old World Craftsmen Inc. (2,000 linear feet of gutter, 2,000 linear feet of downspouts and 65 custom collectors). Flat roofs were roofed with a LEED Siplast modified roof system.

■■ Seven timber-frame entryways were also constructed and roofed with Ludowici tile.

■■ Neenah Foundry custom-fabricated 65 iron downspout boots with “FSU” forged in each boot.

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FLORIDA ROOFING | November 2016

Special challenges of the project included: ■■ Old World Craftsmen Inc. was responsible for installation of 1,300 sheets of pressure-treated plywood, over the metal roof decks and dry-in of 43,000 square feet of roof area.

■■ Due to the height of the dormitory buildings, roof stocking was a challenge. Most materials were hoisted to the roof areas by means of 120’ reach hydraulic power ladders.

■■ Old World Craftsmen Inc. was also responsible for the installation of 800 linear feet of copper wall cap on gable end walls.

■■ Lightning protection cables were hidden behind copper downspouts and the cables were also concealed under ridge cap tiles on the steep roofs, for aesthetic purposes.

This new construction project was large in scale and involved extensive coordination with several other trades.

Since the project was for university housing, meeting the job completion time frame was also an important factor.

The scope of this project and the special challenges Old World Craftsmen Inc. overcame helped earn them the Shining Star Award for the best overall project submitted from 2015.

Congratulations to the team from Old World Craftsmen Inc.!

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New Workers’ Comp Rates for December 1 Renewals In August, FRSA President George Ebersold, FRSA up upon renewal. If your insurance policy renews at a later Legislative Counsel Cam Fentriss and FRSA and SIF staff date, you’ll continue your current rates until renewal. attended the annual workers’ comp rate hearings for the State as we do each year. Ebersold testified on behalf of the Association and its members, encouraging the Office of Insurance Classification Code 2017 Rate 2016 Rate Regulation to consider consistenSheet Metal Shop ONLY – 3076 5.93 5.17 cy in the rates, and to consider the 11.11 9.70 affects that a NCCI proposed 19.6 Carpentry NOC – 5403 percent rate increase would have on Carpentry Interior – 5437 10.22 8.92 employers.

A/C Service, Install, Repair – 5537 7.95 6.92 The Florida Office of Insurance Painting – 5474 12.63 11.02 Regulation disapproved an overall Roofing – All Types – 5551 21.29 18.60 average rate increase of 19.6 percent 10.98 9.58 and requested an amended filing re- Sheet Metal Installation – 5535 flecting an average voluntary rate Construction Executive/Superintendent – 2.12 1.84 level increase of 14.5 percent. This 5606 (new title) approval reflects an average rate lev- Sales Estimator – 8742 0.51 0.45 el increase of 14.5 percent for ALL 0.26 0.23 classifications effective December 1, Clerical – 8810 Contractors Permanent Yard – 8227 8.47 7.39 2016, for new and renewal policies.

Workers’ comp rates change Carpentry Residential – 5645 19.40 16.92 for those who have a January 1 or A/C Portable Units – 9519 6.35 5.55 later renewal. For members who Electrical Wiring – 5190 6.02 5.25 have their workers’ comp insurance 5.86 5.11 through the FRSA-SIF, rates will go Plumbing – 5183

www.floridaroof.com | FLORIDA ROOFING

17

Industry Updates Wayne Marshall, CPRC, Retires from BITEC

to that she ran Harwerth-DeMarco Creative providing marketing communications services to building material manufacturers, contractors and briefly worked with RoofersCoffeeShop.com in 2008 as a marketing After 46 years in communications manager. She also spent six years as the industry, Wayne Marshall, CPRC, is a graphic designer with HJE Marketing and Carlisle retiring. “I’ve had a Syntec. long run and the opHarwerth-DeMarco holds a Bachelor of Fine Arts portunity to work in Visual Communications from Southern Illinois with some great peoUniversity. She resides in Arlington Heights, Ill. with her ple,” stated Marshall, husband, Pat, and is active in the community through who started his cathe Palatine Jaycees. reer working for J.M. Among her many accomplishments, HarwerthMontgomery Roofing, DeMarco worked with FRSA staff to redesign Florida Miami. “Frank Jenkins (FRSA President in 1984) was my Roofing magazine – thanks Sarah! mentor, and gave me the chance to learn so much about the industry,” said Marshall, who started out as an ap- Tropical Roofing Products Adds Two prentice and worked his way up to estimator and then Regional Managers vice president. Over the years, he earned the Certified Tropical Roofing Products announces the addition of Professional Roofing Contractor designation from FRSA two new Regional Sales Managers to cover the Central and served as the president of FRSA’s Affiliate, the and West Coast regions. Steve Del’ Nero, appointed as South Florida Roofing and Sheet Metal Contractors West Coast Regional Sales Manager, comes to Tropical Association (now RCASF) from 1986-88.

Roofing Products with over 15 years of experience in Marshall left J.M. Montgomery and went to work the building and roofing industry, having previously at Bob Hilson & Co., Inc., Homestead, working for worked as a Regional Sales Manager for InterWrap Inc., Bob Hilson, CPRC. “After Hurricane Andrew destroyed and a Territory Manager for ACH Foam Technologies. my home, my wife Vickie and I decided to relocate Covering the Central Region as new Regional Sales to Daytona Beach where I went to work for R & R Manager is Christopher Arriaga. Christopher has spent Industries,” stated Marshall. From there, Marshall went the last decade in the roofing industry as Regional and to work for BITEC Inc. as their Florida rep and retired Territory Manager as well. after 17 years. Marshall stated that his first FRSA “Tropical Roofing Products views these appointConvention was in Marco Island 45 years ago. ments as a sign of our commitment to being a leading Marshall asked FRSA to pass along his thanks to supplier to our industry. The growth of our Fluid Applied the industry members for their support, friendship and Restoration Systems and the increasing demands of our kindness over the years. customers led us to look for the right additions to our team who will fit in with our ethos of innovation and RoofersCoffeeShop.com Welcomes exceptional service,” said Michael King, Vice President Sarah Harwerth–DeMarco RoofersCoffeeShop.com, the place where the industry of Sales.

For more information on Tropical Roofing Products, or meets for technology, information and everyday business is pleased to welcome Sarah Harwerth-DeMarco to find your closest representative, call 800-432-2855 to the RoofersCoffeeShop.com team as digital opera- or visit www.tropicalroofingproducts.com. Download the Tropical Roofing Products dynamic mobile app by tions manager.

In this role, Harwerth-DeMarco will manage the texting “ROOFING” to 94502 or visit the app store for branding, messaging, communications, design and your mobile device. overall user experience for RoofersCoffeeShop.com.

Her strong background in marketing, branding and cre- Polyglass Publishes New E-Newsletter for ative design will be key in the continued growth and Roofing Professionals Polyglass U.S.A., Inc. has published a new electronic success of the company. Harwerth-DeMarco understands the roofing industry, having spent most of her newsletter to provide roofing professionals with another career working for various suppliers and manufactur- valuable source of information. The quarterly newsleters. Most recently, she was the creative director and ter ─Q News─ shares regular updates about Polyglass brand manager for EagleView Technologies. Previous and the roofing industry.

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FLORIDA ROOFING | November 2016

Q News is one of many resources developed by Polyglass to help roofing professionals learn about the wide range of roofing solutions available and diversify their product offerings. The Q News content is short and concise with links to more detailed information. The newsletter is sent directly to roofing professionals who subscribe to it.

Through Q News, customers and prospects will be more informed about Polyglass’ new and existing modified bitumen membranes, roof coatings, rewards program, seminars, training for contractors, events and other important news. Q News subscribers can expect information that will help them stay ahead of industry roofing trends. As one of the top leaders in the roofing industry, Polyglass is at the center of roofing conversations and will deliver relevant content through Q News. Roofing professionals can sign up through the subscription page on the Polyglass website.

Providing quality, innovation and service at its best, Polyglass adds value worldwide. For more information about the premium products and services offered

by Polyglass, call 800-222-9782 or visit www.polyglass.us.

“The recent managerial alignment of TAMKO’s composite decking operation, adding my position as Senior Director Decking and Matt Shaner as General Sales Manager Decking, coupled with the new product addition and updated logos, showcases the direction we are headed,” Brian Lowry stated. He added, “We know our customers are as excited as we are about the future of composite decking at TAMKO.” #Envisionthefuture TAMKO® Building Products, Inc. is one of the nation’s largest independent manufacturers of residential and commercial roofing products. For more information about TAMKO, visit www.tamko.com.

TAMKO Launches New Logo for Envision Composite Decking Line

TAMKO Building Products, Inc. has launched a new logo for its Envision composite decking line, creating a new visual identity for the brand as it approaches its five-year anniversary. The logo for TAMKO’s classic composite decking product, EverGrain, also received an update.

The updated Envision logo, with its blue accents and stylized “E” fashioned from four composite decking boards, re­ presents a more modern look for the Envision brand portfolio, while paying homage to the heritage of TAMKO’s composite decking line introduced nearly 20 years ago. As the look and application of composite decking continues to evolve, so does Envision. www.floridaroof.com | FLORIDA ROOFING

19

Strategic Planning Lee Rust, Florida Corporate Finance

I don’t believe that anyone would start a trip to a new destination without either a map or some directions as to how to find the place. Yet many company owners and executives operate their business without such directions. They simply act as if each day is only a repetition of the past and copy what they did during the previous day with little regard for changes to accommodate a changing world. That, however, is a prescription for stagnation, little if any growth, and mediocre results.

Instead, I believe the owners and managers of virtually every business should look ahead and plan for the future.

That continuing exercise should take the form of a written, five–year Strategic Plan. In addition to developing that first Plan with input from all key managers, the Plan should then be reviewed each year and updated. That annual review would explore any changes during the past year in the company’s markets, operations, organization, and financial condition and then project into the future the effects of those changes on the company.

In a recent Strategic Plan I developed with the managers of a client company, the contents and the rationale for each Plan section included: ■■ A History of the Company – You can’t understand where you’re going without knowing where you’ve Florida been.

ownership relates to the future development of the company and how both might change over the coming five years.

■■ Markets and Customers – This includes profiles for both the markets served by the company and its customers in those markets. Those profiles can then be used to explore appropriate market expansion and the acquisition of new customers.

■■ Sales Organization, Functions, and Marketing – How you reach your markets and convert sales into orders is among the most important functions for any company.

■■ Web Site Design, Use and Interactive Features – A company without a well–designed, interactive web site that addresses the information needs of its customers, employees, and suppliers is operating in a world that has passed them by.

■■ Competition – You can’t compete effectively without knowing who your competitors are.

■■ Growth Opportunities – What can or should you do over the next five years to reach specific revenue and profit goals.

■■ Personnel and Organization – This section includes an organization chart as the company functions today Roofing and another showing how the organization might look vacancies ■■ Business of the Company – You must clearly under- BW in two to three years. All YOUR CUSTOM are shown with LABELED PRODUCT shaded blocks. The management team at any company stand what business your company is in and how you 7.125x3.25 and how that team works together should be among can modify that business definition over time to adjust November its 2016 major assets. to changing conditions.

■■ Corporate Structure & Ownership – This section is used to explore how the current structure and

■■ Accounting, Operating Procedures and Administration – This section explores internal financial controls and

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operating procedures and how those can be used to enhance profits. You can’t control what you can’t measure.

■■ Facilities and Equipment – Matching fixed assets to revenue growth and planning for future capital expenditures is a particularly important part of cash flow analysis. You need to estimate both your future cash needs and potential sources.

■■ Contingencies and Business Risks – What are those external factors which could dramatically affect your company and its operations over the next five years and over which you may have little, if any, control?

■■ Management Comments – In compiling a Strategic Plan, always interview all key managers in depth. This section simply extracts, without the names, some of their comments that would be of interest to the other managers. Exclude such comments as, “John in accounting is a bone head.”

■■ Historical Financials – These, of course, show the financial results of the past.

■■ Financial Forecasts – These show the anticipated results by quarter for the next two years and annually for the two following years. Financial Forecasts should be one of the principal maps to the future for any company.

■■ Notes to the Financials – These simply explain certain

pertinent line items in both the Historical Financials and the Forecasts. The notes also examine any significant changes over time or any non–recurring expenses.

■■ Action List – This ending section condenses each action item in the Plan into a bullet list with the page reference for each. This comprehensive Action List is then used to set priorities.

A Strategic Plan as outlined above is also a form of what I call an “Operations Audit.” Most companies in the U.S. have their financial statements either reviewed or audited by an independent CPA each year. They almost never, however, think of having their operations audited, including interviews with their key managers and an examination of their efficiencies (or lack of efficiencies), business processes, organization, and internal controls. Such an Operations Audit should be more important to the future development of a company than its annual financial review.

Planning should be an integral part of every company’s development, and that planning should be distilled into a written Strategic Plan which, in turn, becomes a road map to the future. Please call me if you would like to explore such a plan for your company.

Lee Rust, Florida Corporate Finance, (407) 841–5676, deals with mergers and acquisitions, corporate sales and strategic planning, financing and operation audits.

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