Insights March 2016

Page 1

INSIGHTS THE MAGAZINE FOR TODAY’S ELECTRICAL AND SYSTEMS CONTRACTORS

MARCH 2016

WWW.IECI.ORG

M

M

G N I R E T S A

E L P I T L U M

S T E ARK

PLUS

INDEPENDENT ELECTRICAL CONTRACTORS

+ EXPERT IN MULTIPLE MARKETS + HOW TO BRING VALUE + PURSUING VERTICAL MARKETS



THE HOME DEPOT CARRIES MORE KLEIN TOOLS THAN ANYONE ELSE. ®

THE #1 BRAND OF ELECTRICAL TOOLS

© 2015, HOMER TLC, Inc. All rights reserved.

®

AN UNBEATABLE SELECTION OF BASICS AND SPECIALTY ITEMS

MADE IN THE UNITED STATES


Tested Tough. Trusted Safe.

Find us here

www.kleintools.com


INSIGHTS

CONTENTS

MARCH 2016 | THE MAGAZINE FOR TODAY’S ELECTRICAL AND SYSTEMS CONTRACTORS

FEATURES

10

10 Becoming an Expert in Multiple Markets BY DR. PERRY DANESHGARI & DR. HEATHER MOORE

17 How to Provide Value

BY LARRY SILVER

21 Knowledge Is Key to Pursuing Vertical Markets

17

BY CRAIG EDLIN

21

www.ieci.org | March 2016 | Insights Magazine

3


CONTENTS CONT’D. 25

6

COLUMNS

28

6 President’s Message 8 From the Editor’s Desk 25 Code Corner 28 IEC Foundation 30 Featured Products

34

33 Ad Index 34 Safety Corner

COMMENTS? 4

Insights Magazine | March 2016 | www.ieci.org

We want your feedback! Send comments or suggestions to communications@ieci.org.



MANAGEMENT PRESIDENT’S MESSAGE METHODS

Training for the Big Leagues By Joseph Hovanec

A

recent IEC meeting opened with the moderator asking attendees to tell something about themselves that no one in the room knew. When it was my turn, I revealed that I managed my son’s little league baseball team for 8 years, and 7 of those 8 years the team finished in 1st place. I always believed it was my job to do everything in my power to help those kids win. I apply that same philosophy to my business today. Managing a sports team is not unlike managing a business. It is important to recognize the talent you have at your disposal and to cultivate that talent to build a winning team. As a little league manager, my focus was to assess each player’s strengths and weaknesses. By focusing on each player’s strengths, I was successful in building winning teams. Keeping your eyes open and continually assessing the talent you have in your company is the first step to building a strong team. I have always been a strong believer in education and training. In my company, this includes cross-training all apprentices and journeymen to perform tasks beyond their everyday norm. By tracking the results, I can more readily judge who are the best candidates to move ahead within the company. Cross-training outside an employee’s current position takes them out of their comfort zone and often reveals talent you never knew they had. It is our job as owners and managers to place the very best we have in each position within our company.

6

It begins with apprentice training and continues throughout the career of each and every employee. The best place to start is to enroll your apprentices into the IEC Apprentice program. Taking advantage of the many education tools offered by IEC will help produce the best field electricians, foremen, project managers, and estimators. It’s also important to recognize people’s weaknesses and plan around them. One of the little league teams I managed had a player that was never going to hit the ball; his hand-eye coordination just was not there yet. Rather than dwell on that weakness, I decided the best way he could help the team was to teach him the strike zone. Although he went through the entire season without ever once hitting the ball, he finished that year with an .800 on base percentage. During the years that I managed those little league teams, players rotated in and out. That resulted in managing a different team each year. Just as those little league teams experienced a turnover of players, our businesses will always experience turnover in our workforce. Some will stay with us until they are ready to retire, some will go to our competitors, and others will go into their own successful businesses. Each scenario will result in the need to hire new talent that will have to be assessed for their strengths and placed in a position that will help strengthen your team. It is the turnover of workers that is the most important reason to cross-train employees in all areas of your company’s field operations and beyond. By doing so, you’re creating a bench that you can call upon when one of your other employees

Insights Magazine | March 2016 | www.ieci.org

moves on or is absent for a day, resulting in a virtually seamless transition. By training all employees outside their comfort zone, there is a good chance you may recognize a future foreman, estimator, or project manager, even though they may currently be working their way through the IEC Apprentice program. Given the labor shortage our industry is suffering, it is important that we recognize and continue to train and develop the talent we already have, focusing on how each individual can help our organization beyond just filling the current opening. How can they help the company in the future? Do they show promise in other areas? It is our responsibility as leaders to assess each and every employee for the answers to these questions. A well-organized training program spanning all areas of work the company performs will develop the next leaders in our companies By continually training and educating your employees, you not only build your own winning team, you build the future of our industry. Joseph Hovanec Jr. is IEC’s 2016 National President. As the principal elected officer of the association, Hovanec serves as the National Chair to the Board of Directors, House of Delegates, and Executive Committee. Hovanec is the president of Advanced Electric Design & Service in Rahway, New Jersey. With a career that spans over 35 years in the electrical industry, Hovanec is extremely knowledgeable on where we have been and the direction we need to go.


®

Wiring Device-Kellems

Power when you need it... Energy savings when you don’t

Hubbell Permanently marked recePtacles for Automatic Outlet Control Systems

Hubbell permanently marked receptacles for automatic outlet control systems are embossed with the universally recognized power symbol and the word “CONTROLLED.” These markings clearly identify which convenience outlets are turned off when the workspace is vacant.

Permanent power symbol remains clearly visible after installation Control both outlets per device for 100% controlled applications or just one outlet for 50% controlled applications Ideal for commercial buildings, retail, schools, hotel rooms Part of the Hubbell Load:Logic™ Plug Control system.

www.hubbell-wiring.com


Insights MANAGEMENT

FROM THE EDITOR’S DESK

EDITORIAL OFFICE Thayer Long, Publisher tlong@ieci.org Joseph Cephas, M.A., Editor-In-Chief jcephas@ieci.org Spencer Langrock, Managing Editor slangrock@ieci.org Marlise Drischler, Associate Editor mdrischler@ieci.org ADVERTISING Rich Ryan (419) 734-5545 rgrsvc@gmail.com DESIGN/ART DIRECTION Think Baseline PRINTING Mount Royal Printing 2016 IEC NATIONAL OFFICERS President Joseph Hovanec, Rahway, New Jersey Treasurer Bruce Seilhammer, Camp Hill, Pennsylvania Secretary Lloyd Quinney, San Antonio, Texas Vice President Gary Golka, Mesa, Arizona Immediate Past President Mark Gillespie, Clarksville, Ohio Insights is published in January/ February, March, April, May/June, July, August, September/October, and November/December by the Independent Electrical Contractors, Inc. Insights Independent Electrical Contractors, Inc. 4401 Ford Ave., Suite 1100 Alexandria, VA 22302 Tel: (703) 549-7351 Fax: (703) 549-7448 www.ieci.org

Established in 1957, IEC is a trade association with more than 3,000 company members and 50 chapters nationwide. INDEPENDENT ELECTRICAL CONTRACTORS Headquartered in Alexandria, Virginia, IEC is the nation’s premier trade association representing America’s independent electrical and systems contractors. IEC National aggressively works with the industry to establish a competitive environment for the merit shop — a philosophy that promotes the concept of free enterprise, open competition, and economic opportunity for all.

Mastering Multiple Markets In late February, I was working on a top secret project that involved visiting 11 member jobsites and four chapter offices in seven days (Is it really top secret if there are photos of my trip all over Facebook and Twitter?). This project included a video crew and some very helpful members and chapter staff. I had the privilege of touring and shooting footage of many different types of projects – from a hippo aquarium at a zoo to a surgical center of a hospital to a historic school that was being converted into apartments. The diversity of projects is one of the many things that make a career in the electrical industry unique. I was also afforded the opportunity to speak to many IEC members. These one-on-one interactions with members is one of my favorite parts of my job. After a morning of interviews in a training lab at IEC of Greater Cincinnati, I caught up with one of my favorite people, 2015 IEC National President Mark Gillespie. Our conversations always include a plethora of topics, including family; sports; politics; and, of course, IEC. During this chat, I asked him about his company’s shift to specialize in solar and renewable energy while still offering other services. He stressed the importance of identifying the demand; making sure you have the proper personnel in place; and study, study, study. They found success in this market because they’re an NABCEP certified solar installer and have become recognized as photovoltaic experts. As a company, they saw the need for contractors to provide energyefficient solutions and knew they were equipped to fill the void. Their back-to-back IEC National Excellence in Electrical Contracting awards speak for themselves. During my trip, there were many members and chapters that rolled out the red carpet and let me invade their workdays with a film crew. I’d like to give a special thank you to David Hittinger of IEC of Greater Cincinnati, Walt Czyrnik of Mid-South IEC, Marcie Funchess of IEC Fort Worth/Tarrant County, and Jerry Thomas of IEC Dallas for setting up schedules and being such gracious hosts. THANK YOU! IEC of Greater Cincinnati

TMI Electrical Solutions

Biz Com Electric

J. Beischel Electric

Queen City Electric

Ohio Valley Electrical Services

Cooper Electric

Mid-South IEC

Pyramid Electric Above & Beyond Electric Ekmark Electric

Tutor Electrical Service Fox Electric IEC Dallas

IEC Fort Worth/ Tarrant County

As a reader, we are interested in hearing from you. If you have a specific topic you would like to see covered in an upcoming issue or a new delivery method, please contact the Insights Editorial Staff at communications@ieci.org.

JOSEPH G. CEPHAS, M.A. Vice President of Public Affairs Editor-In-Chief, Insights IEC National FOLLOW ON TWITTER: @JosephCephas

8

Insights Magazine | March 2016 | www.ieci.org

If you want the most up-to-date information, stay connected with IEC National by liking us on Facebook at www.facebook.com/IEC.National, joining our group and following our page on LinkedIn, and following IEC National (@IEC_National) on Twitter.


LIGHT ON WEIGHT. HEAVY ON SAVINGS.

IMC and Kwik-Couple® IMC Switch to Intermediate Metal Conduit and you have a lot to gain. Lower cost and lighter weight than Rigid Steel, IMC can be used for the same applications while saving you money. Save even more with Kwik-Couple® IMC by eliminating the need for separate couplings and reducing the time of installation. There are some savings that can’t be taken lightly. Visit alliedeg.us to learn more.

©2016 Atkore International, Inc. All rights reserved.


FEATURE

10

Insights Magazine | March 2016 | www.ieci.org


BECOMING AN

EXPERT IN

MULTIPLE MARKETS By Dr. Perry Daneshgari & Dr. Heather Moore

www.ieci.org | March 2016 | Insights Magazine

11


FEATURE

S

o you’ve cut your teeth and made a name for yourself by carving out your own special niche in your local market. You’re now known as the go-to contractor for your specialty and it’s taken years for you to achieve that stature. You’ve watched the market fall and weathered the storm. Now you’ve been paying attention to the market around you, and while it’s coming back, you have a feeling the market is shifting and not coming back in areas that have been strongholds for you in the past. You’re suspicious that other markets are taking off, but you’re not sure they are worth pursuing. You would like to expand into other markets, but that means expanding outside of your niche market and venturing into uncharted waters. All the while still feeling a little jaded from your last experience, which ended up costing you six figures off your bottom line, and you’re still not sure what went wrong.

MEASURE THE WORK AVAILABLE

FIND MARKET OPPORTUNITIES

past 5 years. Next, you focus on the overall size of the industrial, commercial, and residential segments of your specific trade within your geographic area. Looking at the results, you see that your market is predominately commercial and residential, with not as much industrial work as you had previously thought. You’ve had a feeling that the commercial market had shifted to be the predominant segment in recent years, and these results have confirmed your suspicions. Comparing your sales over the past five years to the overall market and within each market segment will provide you with the trend of what your market is doing and whether you are growing with it or not. Let’s say that the trend in the commercial segment shows that you haven’t been growing your sales with the market. The million dollar question you’re asking yourself now is, “What market do I go after next?”

You begin by finding out your overall construction market and the size of the industrial, commercial, and residential segments in your geographic area for the

You look at a list of the 21 detailed market categories and 4 sub-categories of the general commercial market. After some deliberation, you decide you

• The data sources must be impartial, consistently reported, reliable, and accurately measured. • The method must be easy to understand and use. • Allow for the segregation of work, recognizing both existing and emerging markets. MCA Inc. met these criteria by developing a method to measure the construction market size in 30 separate trades down to the county level. The methodology begins with using CPIP as the basis for the construction market size. EEU is then used to scale the market by its segments: industrial, commercial, and residential.

You remember reading newsletters and published articles a few months back talking about the construction market and how there is a direct correlation between the value of Construction Put In Place (CPIP) and Electricity End Use (EEU). The relationship between EEU and Gross Domestic Product (GDP), as lead indicators, and CPIP is well documented. EEU is closely related to GDP, and its usage relates directly to the production of goods and services. This relationship can be used to accurately determine the size of the construction market within any segment. The relationship between these three factors, construction market cycles, and other key market indicators can be used to accurately identify the market size across various areas of construction. In 2005, MCA Inc. was commissioned by the ELECTRI Council to develop a methodology to determine the size of specific markets in select areas, based on the following criteria: • Remain neutral and unbiased as well as applicable nationally, yet be extendable to the local level.

12

Insights Magazine | March 2016 | www.ieci.org

US Construction Trend


hours. With the numbers above, this means the crew will spend 8,000 hours receiving, moving, unboxing, looking for, ordering, or more activities related to material handling. By having material flow through a prefabrication operation to be uncrated, checked for damages, pre-assembled, kitted, and packaged for the most effective movement to its final installation location onsite, we have seen those 8,000 hours drop by more than half. Furthermore, by measuring productivity using ASTM Standard E2691 for Job Productivity Measurement, you will see what is impacting your productivity on a weekly basis and be able to respond immediately to any deviations. So, if you are going into an unknown market, make sure you follow the principles of a work breakdown structure (WBS)2 to plan the work as much as can be known up front, and then track against that plan to learn and adjust quickly.

Market Size Commercial Category

Composite Crew Rate

would like to segregate your market into what you believe are the largest components of your commercial market. With the figures in, all of the markets you selected appear to be on the rise. Office, education, and the general commercial detailed market categories not only top the list, but are actually larger than your own niche market of healthcare.

TACKLE THE NEW MARKET Excited about the new market opportunities available to you, you can now begin to strategically plan and go after the work in these categories. At this point, you could send your estimators out and bid on every job that pops up in your targeted markets, but just like everyone else you’re bidding against, you are going to have similar material, equipment, and overhead costs. The one area that has the most variance between bidders and profitability is going to lie within your labor costs. There are two factors that you can influence to impact and reduce your labor costs:

1. Productivity 2. Composite Crew Rate You could go after these jobs using the same crew mix and expected productivity that worked in the healthcare market, but how do you know what your competition is doing? Perhaps the most crucial, yet overlooked, facets of expanding into changing or emerging markets is tracking your productivity and crew mix.

Productivity First, we’re going to look at increasing your job productivity and reducing your labor cost by externalizing work® from the jobsite. MCA Inc.’s research and data shows that electricians spend 40% of their time handling material on the jobsite, and they run into obstacles on 9 out of 10 tasks that they schedule to finish1. Let’s look at the gains that can be achieved just with planning and prefabrication alone. In this scenario, we begin with a project with an estimated labor budget of $1.4 million and 20,000

The second tool you have to succeed in the new market is to look at using a lower composite crew rate. Let’s say on the same job you just won you have an estimated composite crew rate of $70.00 per hour. By doing the WBS and having your field leader evaluate all of the activities in regards to who should do what, you plan to reduce your composite crew rate to $65.00 per hour. This will allow you to pick up and extra $100,000 of profitability. But this begs the question, “How do I drop my composite crew rate by $5.00?” After a close examination of the open market composite crew rate in the office category, you see that you need an 8% reduction in your composite crew rate to be competitive. This is where most owners start shaking their heads and say, “I can’t reduce their pay.” However, making adjustments in this area doesn’t necessarily have to come from reducing an individual’s pay, but rather improvements can be made by making adjustments in your crew mix. Let’s look at the effect of simply bringing on a couple of material handlers to move material for your higher-skilled workers, thereby allowing the skilled worker to stay focused on

www.ieci.org | March 2016 | Insights Magazine

13


FEATURE

TABLE 1 Apprentice

$50/hr. (fully loaded labor rate) x 5 workers

Journeyman

$98/hr. (fully loaded labor rate) x 2 workers

Foreman

$114/hr. (fully loaded labor rate) x 1 worker

Composite Rate

$560 per hour total / 8 workers = $70.00 per hour

TABLE 2

14

Material Handler

$28/hr. (fully loaded labor rate) x 2 workers

Apprentice

$50/hr. (fully loaded labor rate) x 3 workers

Journeyman

$98/hr. (fully loaded labor rate) x 2 workers

Foreman

$114/hr. (fully loaded labor rate) x 1 worker

Composite Rate

$516 per hour total / 8 workers = $64.50 per hour

Insights Magazine | March 2016 | www.ieci.org

the direct installation of the materials at hand. This can have an immediate effect on lowering your composite crew rate, as shown in the tables to the left: In Table 1, the $70.00 per hour composite rate for the eight man crew is calculated as the total hourly rate for the crew divided by the total number of men on the crew. Table 2 shows the effect of changing the crew mix by reducing the number of apprentices by two and including two material handlers. While the number of men on the project did not change, your composite rate for your crew on this project is reduced by 8%. Using the crew mix from Table 1 for the 20,000 hour project, your labor costs would be $1.4 million. By changing the crew mix and reducing your composite rate to Table 2, your labor costs on the same job would be $1.29 million, a $110,000 decrease. This reduction would be enough to actively compete and win against other contractors who have made this area their specialty.


Construction Detailed Categories

Dr. Perry Daneshgari is the President / CEO of MCA Inc. MCA Inc. is a research and implementation company that focuses on implementing process and product development; waste reduction; and productivity improvement of labor, project management, estimation, accounting, and customer care. He has also published four books and an ASTM Standard for Job Productivity Measurement. Dr. Heather Moore is Vice President of Operations for MCA Inc. She holds a Ph.D. in Construction Management from Michigan State University. Additionally, she holds an MBA from University of Michigan, Flint, and a B.S.E. in Industrial and Operations Engineering from the University of Michigan, Ann Arbor. She was a contributor for the ASTM Standard E2691 “Job Productivity Measurement” and also was co-author of the newly published ASTM book “Application of ASTM E2691 Standard Practice for Job Productivity Measurement in Agile Construction®.” Perry Daneshgari and Heather Moore. Optimize Jobsite Material to Improve Productivity & Cut Costs. 2015.

1

Perry Daneshgari and Heather Moore. How to Manage Your Job Using Work Breakdown Structure. 2014.

2

Perhaps the most crucial, yet overlooked, facets of expanding into changing or emerging markets is tracking your productivity and crew mix. www.ieci.org | March 2016 | Insights Magazine

15


When you don’t have the time or the estimator, We’ll lend you ours™

Residential

Industrial

Commercial

Medical

Design Build

Budgeting

Electrical Enlightenment, Inc. has been committed to helping contractors increase their estimating capabilities since 2000. Call us today for complete, accurate, and reliable estimates (440)-793 -6000 www.enlightenmentcompanies.com


FEATURE

O T W HO E D I V O PR E U L VA ilver

S By Larry

I have been hearing Ted Garrison’s (construction consultant and contributing columnist for Insights) mantra for many years now that bringing value is the key to doing business. I have to agree with that premise one thousand times over. People want value for their investment. If something is of value, people are willing to pay for it. Granted, some of it is perceived value, but nonetheless, it is value to them.

www.ieci.org | March 2016 | Insights Magazine

17


FEATURE Being a consultant and recruiter myself, I have a strong grasp of this concept. In the past, many contractors would call me and discuss how I could help them in their firms. I used to quote really large sums of money and, more often than not, I blew the prospect out of the water. Why do you think? The reason that I blew them out of the water was that I had not first established the value that I was bringing to the table. So, really, any amount of money seems high if you do not establish some value on the front end. For example, let’s say that you are attracted to hiring a certain business developer who you think highly of in your marketplace. You interview them confidentially, and when you ask what salary they want they share $200,000 as a base salary. Most contracting firms would balk at that figure, and it would end the fantasy about the hire, right? But, let’s say instead that the business developer laid out a simple and clear annual plan of how to bring $2 million in gross profits to your bottom line on top of what you are already doing. Would it be so arrogant to request 10% of that profit as a base salary and as a reward for the growth earned? It would not be arrogant. Now the $200,000 base salary looks fair and reasonable. After all, you will be a millionaire and your business will have some breathing room. It is only a matter of perceived value and its impact on you.

It is the same with your clients. It is necessary – and very important – to establish value on the front end of every relationship, transaction, and communication. This cannot be overstated. Here are some ideas of how you can bring that value through ideas that have been tried and true in our industry.

SOLVE THEIR CHALLENGE Regardless of what your product or service is, your client has a need for it and there has been challenges in their past with the fulfillment of it. Therefore, it behooves you to uncover what their true needs and business goals are. Once this has been uncovered, you can apply your product/service to meeting that challenge in part or in whole. Using your expertise, it is important to express how you can – over the competition – save them time or money. If you can minimize their liability, hassle, pain, and discomfort, your contribution is golden. Taking experience from one of your markets and applying it to another could provide creative solutions that your competitors can’t offer. By showcasing what makes you unique and a perfect fit for the project, you will win a loyal client who will also let others know what you did to serve their needs.

DESIGN IS IMPORTANT Having worked in various roles and capacities in the contracting industry, I have learned that one of the most

Many contractors use the term value engineering. That term is important, but if you are not locked into a specific design, you may find that you can influence the overall design or subsets of it to bring tremendous value to your client.

18

Insights Magazine | March 2016 | www.ieci.org

important ways to bring value is through the design of a product, service, or project. It is on the front end, when the preliminary concepts and needs are being discussed, where the largest strides and gains can be made. Many contractors use the term value engineering. That term is important, but if you are not locked into a specific design, you may find that you can influence the overall design or subsets of it to bring tremendous value to your client. One realm where this is obvious – not as obvious 10 years ago – is the area of sustainability. Construction has a life cycle and the initial cost turn out to be about 10% of the costs over the life of the project. This is huge. Therefore, roll-up your sleeves and figure out how to save your client time and money over the life of a project. Many electrical contractors have worked in multiple different markets at some point in their career. Draw from solutions you’ve provided to other markets to think beyond the normal scope of the initial work. Even one piece of your counsel could save them the cost of the entire project. One of my careers was with an engineering/architecture firm where we designed and promoted tilt-up concrete construction. Because of some aggressive engineering and understanding how to use the shell of the building as sheer walls, we could eliminate the structural columns surrounding the internal wall perimeter. The savings were astronomical and, if there were initial plans drawn up by competitors that did not consider the “sheer” wall concept, they could not compete with our design.


COMMUNICATION IN RELATIONSHIPS Business Development is all about relationships. If you desire to bring value in relationships, then you must learn to be an above average communicator. We are not looking for perfection here. But, are you responsive to your contacts? Do you keep your word consistently? Do you admit fault when it is there and eat humble pie even when it is not (I had to do that recently)? Do you have a formal or informal system in place to communicate thoroughly with your contacts? Is your attitude positive and upbeat? These are differentiators nowadays, when we are all being bombarded with the same or very similar messages. Recently, I had to decide between four vendors to aid in selling an important asset. One stood out as positive, assertive, and confident. The others were not as confident or positive, and they were more hopeful and wishful, rather than demonstrative. I went with the positive one. That is what I need to sell my asset.

DIFFERENTIATE It is crucial to differentiate your firm from the pack. Be clear and focused with your value proposition. Make sure your whole staff/team is trained in how to deliver and communicate that differentiation. It also comes out through your written proposals and presentations. Make sure that they are salted with strong business development ideas that demonstrate that you are paying attention and ready to consult with your clients. It makes a difference in the results of your sales, people, and growth. Taking in these techniques and implementing them into your business model will help make you a success and win more projects than ever before. Larry Silver is the president of Contractor Marketing Inc., a national consulting and recruiting firm specializing in the architecture/engineering/construction industry. Larry can be reached at larry@contractormarketing.com or 937-776-7170.

www.ieci.org | March 2016 | Insights Magazine

19


We Focus on YOU

Electrical Staffing does one thing . . . We provide quality employees nationwide to electrical contractors . . . Period. 

Local and National Network—We have the largest database of electricians, helpers and supervisors

Exclusively Electrical—That’s all we do

Free Temp to Direct Option after 500 hours Make us a partner in your hiring process.

Call toll-free 1-877-695-1200 www.electricalstaffing.com Proud Members of:


FEATURE

KNOWLEDGE IS KEY TO PURSUING VERTICAL MARKETS

When pursuing business growth in new, unfamiliar markets, independent electrical contractors should understand the needs of that particular market and the various product and service options available to meet those needs. They must know the characteristic challenges each particular market poses to electrical systems operation and use effective tactics and supporting tools to convey that knowledge to prospective customers.

By Craig Edlin

www.ieci.org | March 2016 | Insights Magazine

21


FEATURE Most independent electrical contractors are engaged in the traditional core markets of residential and commercial buildings, often competing for the same business. However, many electrical contractors are beginning to find excellent opportunities outside of these core markets. Depending on where the contractor is located, there are specialized market opportunities to consider. For example, oil-producing areas, like Texas and Louisiana, offer excellent opportunities to support oil fields and refineries. There are also manufacturing facilities in the Northeast, Midwest, California, Texas, and North Carolina. And every metropolitan area has at least one water/wastewater treatment facility. These opportunities occur in what are known as vertical markets; markets that have needs specific to their industries. These opportunities may be outside of the typical contractor’s core business, but business growth is possible if the contractor makes the effort to understand the needs that are common in that market and demonstrates the ability to meet them. When considering expanding into vertical markets, electrical contractors should do three things: Learn the Market: Find out as much as possible about what that market does, including its unique operational, economic, or regulatory attributes. For example, to avoid or minimize production downtime, many pulp and paper processors use plug-and-play power systems to keep individual equipment and processes running while performing maintenance in another processing area. Identify the Market’s Challenges: Every vertical market has conditions that affect the quality and reliability of the electrical system. Protecting the customer’s electrical system can mean the difference between consistent operations and long down times caused when, for example, liquid-damaged components are replaced or the system is rebuilt.

22

Find the Right Product Solutions: Manufacturers, like Thomas & Betts (T&B), have been working with companies in all industries and sectors to identify and solve their unique problems, leading to continual new product additions. Electrical distributors can assist in finding new products that are available to better meet customer needs.

KNOWLEDGE IS POWER The key to marketing in a specialized industry is understanding its specific challenges. For example, the frequent changeovers, startups, and special batches in chemical processing makes the demand for reliability in the electrical system particularly significant, while the long-term reduction in funding for civil infrastructure has placed exceptional budgetary stress on the construction of roads and bridges. Deciding which markets to target also should be based on an understanding of current economic conditions. To illustrate, the increasing use of electronic data and communications services has made the electrical density of data centers 15 to 30 times that of other commercial buildings, with operations running continuously 24 hours a day, 365 days a year. These conditions make reliability of the electrical system in a data center critical, as downtime can cost as much as $350,000 an hour, making this a profitable market. Another example is the rail industry, which is growing in North America, Europe, and Asia due to increasing demands for energy efficiency and environmental sustainability. This provides a potentially lucrative market for contractors who can respond to the industry’s demands for reliability and cost containment. Business opportunities can be found in the particular stressors that affect certain industries, such as water/ wastewater treatment. Electrical systems in these kinds of facilities typically need replacement every 15 to 20 years,

Insights Magazine | March 2016 | www.ieci.org

creating a demand to extend the service life of these systems. Understanding what components will make an electrical system more resistant to the harsh conditions that exist in a water treatment facility, as well as what will make an electrical system more adaptable in response to changing regulations and technology, will enhance the contractor’s competitiveness in this market.

WHERE DOES IT HURT? Electrical contractors are in the business of solving problems, not just installing electrical components. When soliciting business in an unfamiliar industry, it is critical to understand where that industry’s “pain points” are in its electrical systems. Pain points are issues or problems that customers face with their electrical systems, such as sustaining continuous operations; containing costs; ensuring safety; and enhancing the power quality, efficiency, and reliability of electrical systems. These pain points are common to most markets but present problems specific to each industry, while others, such as corrosion and extreme temperature resistance, are characteristic of particular industries, such as oil and gas processing or food processing. In response to typical problems in various vertical markets, T&B organized its products into groups called “Solution Sets.” Solution Sets combine products into an integrated selection that addresses a particular challenge commonly encountered with an electrical system in a variety of vertical markets. These challenges can include continuous operations and sustainability; corrosion and harsh environments; extreme temperature protection; grounding and bonding; power quality, efficiency, and reliability; safety and contamination; stock-keeping unit (SKU) reduction; total project cost reduction; and a roster of service and training programs. Any of these challenges can occur in numerous vertical markets,


and electrical systems in any vertical market may encounter more than one of these challenges at any given time. For the contractor, access to a breadth of product solutions available to meet the specific needs of a particular industry enhances competitiveness and establishes value to the prospective customer. Finding a product that offers features developed in response to a challenge that is typical in a particular industry is often the first step in solving a customer’s problem.

USING THE BEST TOOLS Once a market is identified as promising, the contractor should try to engage at the highest level of the organization as possible, such as owners, senior managers, or high-ranking officials. Communicating at this level requires that the contractor establish an understanding of the prospect’s business and challenges, including the value offered in addressing these challenges. When dealing with middle-level contacts in project or operations management, the focus should be on the value proposition and problemsolving, while engineers and specifiers are typically more concerned with details about the products and their applications. When engaging with a prospect, it helps to have collateral pieces, such as a brochure, to use to structure the conversation so that it leads from establishing credibility

as a knowledgeable contractor to providing a selection of products and services that addresses the concerns typical in the prospect’s industry. Pictures, charts, and diagrams are effective tools in enhancing a conversation, much like visual aids in a more formal presentation. The contractor needs to not only be a service provider but a trusted adviser, and leading a dialog with a prospect about the specific concerns for a building’s electrical system helps establish the contractor’s credibility for an adviser’s role. The success of business growth into new markets requires not only knowledge of that market and its characteristic challenges, but an understanding of the contractor’s role in meeting those challenges. The contractor should be educated about the product and service options available to address the various problems typical to electrical systems found in a particular market. Being thoroughly educated about the prospect’s industry and how to best serve it will also give the contractor the confidence and enthusiasm to make a good impression.

Craig Edlin is the marketing communications manager at ABB, Electrification Products Division, U.S., in Memphis, Tennessee. He holds a master’s degree in industrial distribution from Texas A&M University and a BSME in mechanical engineering from Valparaiso University. He has served as associate faculty at Indiana University-Purdue University Indianapolis in logistics, supply chain management, and industrial distribution. He has published instructional materials in industrial automation, industrial power distribution, and career management.

T&B offers a variety of print and online tools, including a series of brochures that explains various vertical markets, and another series that describes the solution sets of products to help solve typical operational problems. A local T&B distributor can provide more information, or you can download vertical market brochures at www.tnb.com/pub/en/ node/1436 and solution set brochures at www.tnb.com/pub/en/node/1425.

The success of business growth into new markets requires not only knowledge of that market and its characteristic challenges, but an understanding of the contractor’s role in meeting those challenges. www.ieci.org | March 2016 | Insights Magazine

23



CODE CORNER

Codes and Standards By Larry Ayer

I

EC has been actively involved in the National Electrical Code Making Process since the first IEC representative was placed on Code Making Panel #2 for the 1987 edition of the National Electrical Code (NEC). Since then, IEC has expanded its role, with representation on each of the 19 Panels as well as many other National Fire Protection Association (NFPA) Committees. The latest 2017 NEC Code Revision Cycle will be wrapped up in June of this year, and the IEC Codes and Standards Committee, chaired by Terry Cole, has already made a significant impact on the 2017 NEC deliberations. IEC influence is demonstrated through changes to the NEC, such as adding new code language to increase safety for our many field workers and revisions to code language that will reduce ambiguity with the local authority having jurisdiction (AHJ) without compromising safety. IEC code panel members are mindful of changes that effect installation costs and identify when these issues may have an adverse affect on our contractors.

Revisions to the NEC One such change that will increase safety was identified for rooftop EMT raceways, where ground continuity is lost as a result of corrosion or being pulled apart due to either long-term weather exposure or as a result of re-roofing. Terry Cole (IEC Oregon, Hamer Electric) submitted a public input for the 2014 Code Cycle to require a wire-type equipment grounding conductor for EMT raceways installed on rooftops. While this proposal

www.ieci.org | March 2016 | Insights Magazine

25


CODE CORNER failed during the 2014 cycle, it was resubmitted for 2017 and was successfully adopted with the following language: 440.9 – Grounding and Bonding: Where multi-motor and combination load equipment is installed outdoors on a rooftop, an equipment grounding conductor of the wire-type shall be installed in outdoor portions of the metallic raceway systems that use non-threaded fittings. A public input was submitted to Code Panel 2 by Larry Ayer (IEC of Greater Cincinnati, Bizcom Electric) to reduce the lighting allowances in Table 220.12 for office and bank-type occupancies. Even though there have been significant advances in lighting technologies over the past twenty-plus years, the lighting allowances have remained stagnant since 1981. Today, common engineering practice is to design with lighting usage of less than 1 watt per square foot. A revision to the NEC was necessary to reflect the real-world design and energy-saving lighting that is used today. Lighting systems designed to meet energy codes of less than 1.2 watts per square foot will be permitted to reduce the 3.5 watts to 2.5 watts per square foot. Exception No. 2: Where a building is designed and constructed to comply with an energy code adopted by the local authority and specifying an overall lighting density of less than 13.5 volt-amperes/13.5 m2 (1.2 voltamperes/1.2 ft2), the unit lighting

26

loads in Table 220.12 for office and bank areas within the building shall be permitted to be reduced by 11 voltamperes/11 m2 (1 volt-amperes/1 ft2). Another challenge that IEC members face when installing electrical systems is the actual interpretation of NEC rules by the local AHJ, which can result in significant time and money lost to correct misinterpreted regulations. An important goal for IEC is to reduce this ambiguity. One example is the public input that was submitted by Scott Harding (IEC of Greater Chesapeake, F.H. Harding Electric) to modify the notes to Table 250.122. The revised wording was accepted to clarify that a grounded conductor is only increased in size if the phase conductors are increased for voltage drop. This rule does not apply when increasing the phase conductor size due to ambient temperature or conduit fill. Increase in Size: If ungrounded conductors are increased in size to account for voltage drop, wire-type equipment grounding conductors shall be increased in size. The increase in size shall be at least in the same proportion as the increase in the size of the ungrounded conductors using their circular mil area. IEC also participates in various task groups that are formed by the NFPA to study and provide recommendations to the code panels on issues where consensus is not attained. IEC participated in a task group formed to study the rooftop

Insights Magazine | March 2016 | www.ieci.org

ambient temperature correction factors. The correction factors located in section 310.15(B)(17) were first introduced in the 2008 NEC. In many installations, this provision would force users of the code to double the ampacity of conductors on rooftops due to sunlight exposure. The task group studied the issue in more detail and has since eliminated the correction factors for outdoor rooftop conductors, except for when conductors are installed in a conduit that is directly installed on the roof. As long as the conduit is elevated a minimum of ž inch above the roof, the correction factors are not necessary. Many code panel members, such as David Hittinger (IEC Cincinnati), Eddie Rodriguez (IEC Texas Gulf Coast), John Masarick (IEC National), Robert Jones (IEC Texas Gulf Coast), and David Johnson (IEC San Antonio), have provided tremendous support in writing and submitting IEC proposals and public comments to modify the NEC in ways that will benefit the entire electrical industry. The IEC Codes and Standards Committee is continuously looking for contractor members, employers of IEC members, training directors, or educators at IEC chapters with intimate NEC knowledge that are willing to assist in the code development process. Interested individuals should contact IEC National Codes and Standards Vice President John Masarick at jmasarick@ieci.org to learn more about a great opportunity that will not only benefit your company and chapter but also the entire IEC community.


NOVEMB ER 11TH , 2:12 P.M .

A LESSON LEARNED, THE EASY WAY IN AN INS TANT, PHIL TR A M M EL’ S IN - C A B B EH AV I O R TR A ININ G INSPIR E D A R E WA R D IN G CO M PE TITI O N

When MoboLectric manager Phil Trammel viewed an In-cab Behavior training webinar through CNA, he learned that using a cellphone while operating any motor vehicle increased the risk of a crash by 590%. Taking this lesson to heart, Phil equipped his entire fleet with hands-free devices, and initiated an annual safety competition across his entire staff. Now MoboLectric is filing fewer claims than ever before, and Phil’s enjoying a handsome bonus for worker safety and performance.

When you’re looking for risk control programs that keep contractors dialed in to relevant industry trends … ® we can show you more. To learn how CNA’s electrical contractors program can help your business grow more profitably, contact your independent agent or visit www.cna.com/iec.

The examples provided in this material are for illustrative purposes only and any similarity to actual individuals, entities or places is coincidental. Please remember that only the relevant insurance policy can provide the actual terms, coverages, amounts, conditions and exclusions for an insured. All products and services may not be available in all states and may be subject to change without notice. CNA is a service mark registered by CNA Financial Corporation with the United States Patent and Trademark Office. Certain CNA Financial Corporation subsidiaries use the “CNA” service mark in connection with insurance underwriting and claims activities. Copyright © 2016 CNA. All rights reserved.


IEC FOUNDATION

ENSURING THE GROWTH OF THE

ELECTRICAL INDUSTRY By Lauren Stewart

As the U.S. economy continues to improve, the need for electrical apprentices increases faster than ever before. Projections show that by the year 2020, our industry will need to add nearly 115,000 new skilled electricians to the trade. The best way to ensure that we meet this demand is to help provide access to the education and training

This is where YOU come in. The IEC Foundation is preparing to launch our 2016 Scholarship Campaign. Last year, we awarded 40 deserving apprentices with a scholarship to help with their education and training. This year, we hope to grow the number of lives we can touch with a scholarship. Even though we were able to help more students last year than ever before, we also had to turn down more than ever before. As more and more young people attempt to enter our industry, it is imperative that we do not forget the financial struggle that so many of them are facing. An apprentice should never have to make the decision between providing food for their family or paying their tuition. It is our mission to help these struggling students stay in school, stay employed, and go on to earn their journeyman license.

that is needed.

How can you help? Our goal for the 2016 Scholarship Campaign is to raise $100,000 to help struggling apprentices across the country. Every dollar you send goes towards the continuing education and training of well-deserving youth and adults who desire a prosperous career in the electrical and communications industry. If you are interested in helping improve the lives of future electricians and ensuring the growth of our industry, please contact the IEC Foundation for more information on how to give to the 2016 Scholarship Campaign. We can be reached by calling us at either (502) 417-5326 or (502) 417-0157.

Donations can be sent by: 1) Dialing (502) 417-0157. 2) Donating on our website: www.iec-foundation.org. 3) Mailing a check to: T he IEC Foundation PO Box 20687 Louisville, KY 40229

28

Insights Magazine | March 2016 | www.ieci.org

The IEC Foundation is a 501(c)(3) organization, and all donations are tax-deductible. We look forward to receiving your donation and positively impacting many future electricians’ lives this year.


Bypass the ballast. Bypass the hassle.

Eliminate ballast systems in standard T8 and T12 fluorescent tube fixtures. TOGGLED commercial-grade LED tubes are engineered to run directly off of building line power, use 40-70% less energy, and deliver high quality light.

Learn more at toggled.com/IEC 164 Indusco Court, Troy MI 48083

IEC members earn cash back when they enroll in Pro Xtra and the IEC Rebate Program. An additional amount is contributed to the IEC Foundation.


NEW & IMPROVED

Featured Products Milwaukee® Demolition Work Gloves Provide Ultimate Durability and All-Day Comfort Milwaukee Tool continues to provide jobsite solutions with the introduction of the new Demolition Work Gloves. Designed from the ground up to be five times more durable than other gloves available today, they offer the perfect combination of ultimate durability and all-day comfort for users that require reliable protection when working with an array of different jobsite materials. As touchscreen smartphones and tablets have become more prevalent on jobsites, the need for tech-compatible gloves is an absolute must. To address this issue, these new gloves also include a SMARTSWIPE™ Knuckle that permits the use of touch screen devices without removing gloves or wiping dirty fingertips across the screen. For more information, please call (800) SAWDUST or visit www.milwaukeetool.com.

Milwaukee® Introduces Compact Solution to their Knockout Lineup Milwaukee® Knockouts were designed to make every step in the hole-making process both faster and easier. The New M18™ FORCE LOGIC™ 6T Knockout delivers unprecedented access and maneuverability for electricians. The M18™ FORCE LOGIC™ 6T Knockout, combined with Milwaukee’s EXACT™ lineup of punches and dies, will redefine productivity for the user by reducing the tedious steps of hole-making and improving the speed of the process. For more information, please call (800) SAWDUST or visit www.milwaukeetool.com.

30

Insights Magazine | March 2016 | www.ieci.org


Milwaukee Broadens Its Pliers Offering with 5 Trade-Specific Designs Milwaukee continues to rapidly expand its hand tool offerings with the introduction of five new pliers to its pliers line. The new additions broaden Milwaukee’s current pliers line and are designed from the ground up as solutions for trade-specific applications. Milwaukee’s new lineup of pliers will consist of five trade-specific tools: Crimping Pliers, Fencing Pliers, Ironworkers Pliers, 7” Nipping Pliers, and PVC/Oil Filter Pliers, all backed by a limited lifetime warranty. For more information, please call (800) SAWDUST or visit www.milwaukeetool.com.

B-Line Series Telescoping Box Mounting Bracket From Eaton The B-Line series telescoping box mounting bracket and box mounting clip allow for prefabrication of the box assembly, which helps reduce time on jobsites. The bracket features a unique flange end that can mount multiple box depths beyond the standard 2-1/8”deep boxes. The bracket has increased rigidity to help withstand drywall installation. Flange ends can be cut and bent to mount multi-gang 5” square, masonry, and speaker/strobe boxes. Additionally, pipe/conduit clamps require no hardware to install and provide support anywhere between the stud. To learn more, please visit www.eaton.com.

www.ieci.org | March 2016 | Insights Magazine

31


NEW & IMPROVED

Ultra-Compact Terminal Block Approved for Larger Conductors WAGO’s universal surface mount PCB solution – the 2059, is now approved for 20 AWG/0.5 mm² conductors. 2059 terminal blocks create compact connections providing the perfect tool to minimize the size of LED modules.

New Intuity 2.O App Upgrades Legrand Home Automation System for Use With Nest, Schlage, and Linear Products Legrand has launched the Intuity 2.0 app for iOS devices, expanding the Intuity home automation ecosystem to include products from Nest, Schlage, and Linear. The free app, downloadable from the App Store, enables control of the system’s home security, entertainment, comfort, and convenience products from iPhones and iPods. Intuity systems currently in use will automatically recognize the corresponding firmware update and prompt users to accept it to enable the app and other system functions. For more information, please call (800) 223-4162 or visit www.legrand.us.

Platinum Tools® Launches Fault Trapper™ Tester Platinum Tools® is proud to announce the launch of the new Fault Trapper™ smart tester. The TFT100 Fault Trapper uses Spread Spectrum Time Domain Reflectometry (SSTDR) to monitor live circuits and runs on in-line power for extended battery life. In addition, the device can capture time and distance to opens, shorts, and arc faults, saving the event information in memory for later investigation. The last faults can be viewed off-line using battery power. The in-line 40A module isolates the circuit being monitored from the breaker panel and all other breakers. For more information, please visit www.platinumtools.com or call (800) 749-5783.

32

Insights Magazine | March 2016 | www.ieci.org

For more information, please visit www.wago.us or call (800) DIN-RAIL.


AD INDEX

Allied Tube & Conduit

(800) 882-5543

www.alliedeg.us

pg. 9

American Technical Publishers

(800) 323-3471

www.atplearning.com

Inside back cover

Atkore International

(800) 882-5543

www.atkore.com

pg. 24

BOSS Controls

(855) 708-4900

www.bosscontrols.com

pg. 5

CNA

(800) CNA-2000

www.cna.com/iec

pg. 27

Electrical Enlightenment

(404) 793-6000

www.enlightenmentcompanies.com

pg. 16

Electrical Staffing

(877) 695-1200

www.electricalstaffing.com

pg. 20

Graybar

(800) GRAYBAR

www.graybar.com

Back cover

Hubbell Wiring Device-Kellems

(800) 288-6000

www.hubbell-wiring.com

pg. 7

Klein Tools

(800) 553-4676

www.kleintools.com

pg. 2

McCormick Systems

(800) 444-4890

www.mccormicksys.com

Inside front cover

Platinum Tools

(808) 384-2777

www.platinumtools.com

pg. 19

The Home Depot

(800) HOME-DEPOT

www.homedepot.com

pg. 1

Toggled®

(844) TOGGLED

www.toggled.com

pg. 29

WANT TO ADVERTISE?

IEC AD AND EXPO SALES COORDINATOR Rich Ryan (419) 734-5545 | rgrsvc@gmail.com

www.ieci.org | March 2016 | Insights Magazine

33


SAFETY CORNER

End in Mind – Keep Your Eye on the Ball By Thomas Domitrovich, P.E.

K

eep your eye on the ball. You may have heard your coach tell you that over and over until you realized that’s just what you needed to do in order to succeed. In business, the message is the same, and it doesn’t change when it comes to electrical safety. In order to keep our eye on the ball, we need a clear understanding of what that ball is. When it all comes together, our designs, plans, and actions ensure we achieve our goals. All too often bare minimum requirements, whether it be the National Electrical Code (NEC) or others, drive design decisions, while they should instead be driven by our goals and objectives. We need to ensure our actions, decisions, and designs achieve our goals and do not violate bare

34

minimum requirements. Not the other way around. One could argue that if safety is your goal, then not violating bare minimum codes comes along for the ride. Often, decisions are made to value engineer or cost out designs to save money on projects. This activity is not an issue as long as attention to the details is maintained. We must dot the I’s and cross the T’s to ensure we don’t sacrifice achieving our goal of safety for the cost of getting the job done. Sometimes, we think we are saving money or time; but in reality, the bottom line tells a different story. Today, we’ll explore the topic of 80% vs. 100%-rated overcurrent protective devices (OCPD) and build a foundation for understanding the old phrase... the devil is in the details.

Insights Magazine | March 2016 | www.ieci.org

THE PROCESS The basic process to select the right overcurrent protective device for this discussion of 80% rated versus 100% rated begins with a calculation of the load, includes a journey through conductor selection based on the calculated load current, and ends with the right OCPD to protect the conductor. A system that is engineered to be fully rated – an OCPD used at 100% of its rating – can result in a lower cost solution, but when we take this approach consideration must be given to details. In general, for all but motor overload protection, when an overcurrent device, such as a molded case circuit breaker (MCCB) or fuse, is applied in an assembly,


it must be sized at 125% of the continuous load. This results in an overcurrent device being applied at 80% of its nameplate rating. For example, if the load on a branch circuit is a continuous load and calculated to be 100A, NEC Section 210.20(A) requires the OCPD rating to be 125% of the calculated continuous load current, which would be 125A. The 100A continuous load is 80% of the 125A rating of the OCPD. This accounts for the resulting higher ambient temperatures found when an overcurrent device is contained within an enclosure and aligns with how an OCPD is tested by the standards that govern their performance. For this above example, a 100%-rated solution would have a 100A breaker feeding this 100A calculated continuous load.

THE LOAD

NEC 2014 Sections 422.13 “Storage-Type Water Heaters,” 424.3 “Branch Circuits,” 426.4 “Continuous Load,” and 427.4 “Continuous Load” as examples).

The load calculation is where it all begins and where the basic decision is made as to how the system will be designed with regard to selecting equipment rated at 80% or 100%. The difference between a continuous load and a non-continuous load is important, but it is not as simple as it sounds. To begin this discussion, open your Code book to Article 100 and review the definition of “continuous load.” NEC 2014 tells us that a continuous load is “a load where the maximum current is expected to continue for 3 hours or more.” For many loads, this will be a very subjective effort of load analysis; but for some, the NEC is specific with this regard (Reference

Common to services, feeders, and branch circuit requirements are a few sections (Sections 210.19, 215.2 and 230.42) that focus on the sizing and rating of the portion of the circuit for which each article is responsible. Article 210 is a good representative as the rest have similar language, so we’ll begin here. Section 210.20(A) states, “Where a branch circuit supplies continuous loads or any combination of continuous and non-continuous loads, the rating of the overcurrent device shall not be less than the non-continuous load plus 125 percent of the continuous load.”

www.ieci.org | March 2016 | Insights Magazine

35


SAFETY CORNER The equation for calculating load current, which will drive the selection of conductors and ultimately drive the selection of the OCPD, is as follows: Load Current = (Non-Continuous Load Amps) + (1.25 x Continuous Load Amps) This equation changes slightly when the decision is made to have a 100%-rated system. A review of the exception to the parent text of 210.20(A) tells us, “Where the assembly, including the overcurrent devices protecting the branch circuit(s), is listed for operation at 100 percent of its rating, the ampere rating of the overcurrent device shall be permitted to be not less than the sum of the continuous load plus the non-continuous load.” Based on the language in this exception, the load current is calculated for a 100%-rated system based on the following equation: Load Current = Non Continuous Load Amps + Continuous Load Amps You’ll note the missing 1.25 multiplying factor in the above equation. From this calculated load current through the selection of conductor and OCPD, the process is exactly the same as that for the 80%-rated system. The selection of the conductor is based upon the calculated load current previously discussed. As always, Chapters 1–4 of the NEC apply generally, so we can’t forget about the details related to adjusting conductor ampacity and more. Table 310.15(B)(16) of NEC 2014 provides a resource to determine the correct conductor for the application based upon a calculated load current. Once the conductor is selected, the OCPD is chosen to ensure protection of the conductor. The exception to 210.20(A) reminds us that it is important to understand that 100%-rated OCPD solutions rely on the enclosure in which they are installed. The following text is taken from UL Standard 489, “MoldedCase Circuit Breakers, Molded-Case Switches, and Circuit-Breaker Enclosures.”

36

“9.1.4.4: A circuit breaker, having a frame size of 250A or greater, or a multi-pole type of any ampere rating rated over 250V, and intended for continuous operation at 100 percent of rating shall be marked: Suitable for continuous operation at 100 percent of rating only if used in a circuit breaker enclosure Type (Cat. No.) ____ or in a cubicle space ___ by ___ by ___ mm (inches). Equivalent wording shall be permitted. Location Category C. The blanks are to be filled in with the minimum dimensions.” This paragraph enlightens us to some important details: 1. 100%-rated solutions for a circuit will have a frame size no smaller than 250A at 250V or below, or any case size for multi-pole circuit breaker with a voltage greater than 250V. Applications where the OCPD frame size is smaller than 250A at 250V or less must utilize the circuit breaker at 80% of its amp rating (except for motor overload protection). 2. The circuit breaker will be marked with a specific enclosure catalog number or minimum dimensions of the enclosure. These details tell us that we can’t just swap out a circuit breaker with one that is rated to handle 100% of its rating for continuous loads. Consideration must be given to the enclosure in which the device is installed. It is not always possible to replace a standard-rated circuit breaker with a 100%-rated circuit breaker and obtain a 100% rating for the application. There are also requirements that pertain to the enclosure for 100%-rated applications, as demonstrated by Section 7.1.4.1.19 of UL 489, which states the following: “7.1.4.1.19: For the 100 percent rated test, a circuit breaker shall be connected with copper bus bars if the circuit breaker is intended for use with both bus bars and wiring terminals. Unless the circuit breaker is marked to indicate otherwise, the bus bars shall have a cross section of 1.55A/mm2 (1000 A/in2) for ratings

Insights Magazine | March 2016 | www.ieci.org

less than 1600A. For ratings of 1600A and higher, the bus bar shall be in accordance with Table 7.1.4.1.3. If the circuit breaker is intended only for use with wiring terminals, the test shall be conducted with insulated conductors, as specified in 7.1.4.1.15. The bus bars or cable shall be at least 1.219m (4 feet) long. The test shall be permitted to be repeated using insulated cable for a circuit breaker intended for use with both bus bars and wiring terminals.” Not only the material of bus bars but also the dimensions are specific for these applications. Manufacturers will help with what can and cannot be achieved with their equipment. It is important to not violate the listing of the solution and as always, the devil is in the details with this regard.

CLOSING REMARKS The use of circuit breakers and fused switches is strictly controlled by the NEC and the UL standards governing the circuit breakers, fused switches, and equipment into which they are installed. There are times when it might be economically advantageous to utilize the devices at 100% of their ratings, but all of the I’s must be dotted and T’s crossed first. Thomas Domitrovich, P.E. manages a team of Application Engineers for the Circuit Protection Division of Eaton Corporation, specifically Eaton’s Bussmann business. Thomas is based out of St. Louis, Missouri, and has more than 25 years of experience as an Electrical Engineer. He is a LEED Accredited Professional and a licensed Professional Engineer. Thomas is active in various trade organizations and chairs committees for NEMA and IEEE. Thomas is a principal member of Code Making Panel 2 for the National Electrical Code (NFPA 70) and an Alternate member on NFPA 73, both representing NEMA. Thomas is also active in state by state adoption of NFPA 70 and other building codes, working closely with review committees and other key organizations to increase safety.



Inventory Management

Technical Assistance

Kitting and Pre-assembly

In-stock Products

What is Your Total Cost of Install?

$ Financing

Great service, product availability and a fair price. You’re set, right? Wrong. If you’re ignoring a project’s total cost of install, you could be leaving money on the table on every job.

Download our Contractor Services Guide at info.graybar.com/tci

graybar.com

There are many options to simply procure products, but our focus is to help you be more profitable. Services designed to help your installations be more efficient, safe and productive, another way Graybar works to your advantage.

1-800- G R AY BA R


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.