Needham & Associates Consulting Engineers

1. Needham & AssociatesConsulting Engineers Fort Wayne, IN - Overland Park, KS http://www.needhamassoc.com

2. Making Tilt-Up Construction Competitive with Metal Buildings---- Part 1 Introduction ----Presented ToConcrete Alliance Workshop ByJeff Needham, P.E., S.E.Needham and Associates, Inc.Consulting Engineers

3. Promoting Tilt-Up Construction at the Local Level Focus on Competing with Metal Buildings

4. Jeff Needham, Principal P.E., S.E in 20 states, started firm in 1989 in Fort Wayne, IN BS and MS from University of Kansas Charter Member of Tilt-Up Concrete Association Your Speaker

5. General Practice Structural/Civil Engineers Consultants to PEMB Industry Heavy Structures (ex: large clear-spans, steel mills, special structures) Hardwall Buildings (ex: site-cast, tilt-up concrete for PEMB’s) Needham and Associates?

6. What is Tilt-Up? • A construction method which eliminates the cumbersome practice of constructing two wooden walls to get one concrete wall. Thomas A. Edison, 1909 • The process of casting walls or other concrete elements on site and lifting and placing them in their final location in a structure.

7. Vero Beach, Florida

8. Kansas City, Kansas

9. Lawrence, Kansas

10. Questions???Are you losing work to metal buildings? What kind of projects?

11. Concrete Can Do Better Than This…..Metal Buildings at Their Worst!

12. Why Worry About Competing? • MBMA claims about 60% market penetration (So they say?? However the recent economic downturn and dramatic increase in steel prices have hurt this market share) • That is to say 6 out of 10 non high rise buildings • However, they often do not utilize metal wall panels Competition is really a metal wall • So are ready mix companies really vendors or competitors?

13. The Answer Is ? • You must be both!! • Vendor for foundation and slab concrete. • Possible supplier for wall panels on some hybrid jobs. • But often a competitor when teamed with conventional roof supplier.

14. Key Concept: Tilt-Up Panels are a Hybrid ProductThat is, they may be used with either metal buildings or conventional buildings.

15. Must have a market need, that is Hard-Wall construction must be a requirement. Must have (or create) qualified subcontractors that can readily bid and build tilt-up panels Subcontractors must be able to supply bids, prices, and proposals on a design-build basis. This requires an alliance with a qualified engineer. (The market in metal buildings is Design-Build) How do you Promote Locally, that is, Develop a Market(Create process infrastructure )

16. Need several qualified subcontractors to really be successful. Need (Educate) a code and planning department that understands the difference between precast, CMU, and tilt-up and is not biased. Need (Educate) a knowledgeable engineering and architectural community to take advantage of the unique features of tilt-up How do you Promote Locally (process infrastructure )

17. General Contractors must be qualified, that is, they must be planners and actively involved in the process, CM “bid takers” don’t cut it. Must have access to cranes, particularly mobile cranes with “training wheels”. How do you Promote Locally (process infrastructure )

18. How do you Promote Locally Finally, if the process infrastructure is in place, Market and Sell !, Sell and Market ! otherwise know as“Hit the Bricks”Follow classic sales and marketing strategies

19. Making Tilt-Up Construction Competitive with Metal Buildings---- Part 2 Background ----Presented ToConcrete Alliance Workshop ByJeff Needham, P.E., S.E.Needham and Associates, Inc.Consulting Engineers

20. Definitions:Pre-engineered Building is a steel framing system, usually with a metal roof and walls, with all structural engineering done by a manufacturer.Conventional Building is a framing system, built of any material, with the structural engineering done independently of the manufacturer.Also, the distribution systems of the two approaches are different.

21. Is this building a metal building or a conventional building?

22. Tingle Project is an American Building Company Project

23. For Tilt-up to Be Competitive with Metal Buildings - A Broad View of Building Construction is Necessary! A narrow product view, i.e. comparing only metal wall cost to tilt-up wall cost in-place, will always indicate metal walls are the choice, but this hardly the story. Don’t fall into this trap!

24. History and Trends in Metal BuildingsNeed to Understand Your Competition.What are their Strengths and Weaknesses?

25. Historical Background - Metal Buildings • Metal building companies first formed in 1920’s to service oil industry. • WW II saw the development of the Quonset Hut. • The Quonset Hut was a major image problem for the PEMB industry.

26. Historical Background - Metal Buildings (cont.) • The introduction of high strength sheet steel and the SSR roof in the 1960’s propelled the industry into a fast growth period in the 1970’s and 1980’s. • The PEMB industry relies heavily on proprietary computer software to aggressively design their products.

27. Historical Background - Metal Buildings (cont.) • They are very efficient, but don’t have any “extra” steel or strength. • The AISC now (since the early 1990’s) certifies PEMB companies to ensure a minimum level of quality.

28. PEMB Trends in the 1990’s • PEMB structures have continued to increase their market penetration, PEMB are attempting to compete for complex buildings. • This has lead to a misuse of PEMB structures and actually higher prices and longer deliveries than conventional construction--however owners often have no way to know this.

29. Most Recent Trend, 2003 and 2004 • Metal Buildings are losing their competitive advantage due to New IBC Code and Unified ASD/LRFD Steel Design • Recent Run-up in Steel Prices • Dislike for Metal Walls in many Communities

30. Example of a More Successful PEMB Market Penetration Program • Hardwall Systems (concrete or masonry walls). • Tingle, Lee’s Summit, Missouri

31. Typical NEW PEMB Hardwall Buildings • Designed for strict serviceability issues • Load bearing walls

32. History and Trends in Conventional ConstructionStrengths and Weaknesses of Conventional Approaches.

33. Trends in Conventional Construction • Wide spread use of high strength steel. • Increased use of tubular steel. • Previous points driven by the rise of the mini-mill. • Expansion of Mills providing WF shapes. • Precast concrete wall industry is generally in decline, but is being replaced by site-cast panels.

34. Historical Background - Conventional Buildings • Conventional Building carry on the trend of “stick built” construction. • Architects and engineers have always done the bulk of the design work. • Steel framing is the most common, but pre-cast concrete and cast-in-place concrete are sometimes used in special low-rise buildings.

35. Trends in Conventional Construction (cont.) • CMU use is very influenced by local building trades. • The overall trend is to “pre-engineer” more components, example is the steel stud industry and wood Truss-Joist products. • The good architect/engineer takes advantage of these trends for his client.

36. Historical Background - Conventional Buildings (cont.) • Wood framing and steel stud framing are still very common in smaller structures. • The conventional building world has been slower to adopt the more efficient methods used in the PEMB industry. • High strength steels have only become the norm in the last 5-10 years. • The steel joist industry and pre-fabricated wood trusses have adopted PEMB style methods.

37. Trends in Conventional Construction (cont.) • Bar joist industry claims they are involved in over two thirds of low-rise construction. • How can this be true with PEMB market share at 65% in the late 90’s???

38. Big Question - How Do You Make Tilt-up Competitive with Metal Buildings (really metal walls)? • Must find and team with partners. • Partners can be a metal building company or local dealer. • They can be a joist supplier. (SMI is a good example). • They can be a developer or architect. • In all cases, develop a market sense of where your opportunities exist.

39. Basic Cost Examples (100’x200’x20’ and 200’x400’x20’) • 20,000sf MB, metal walls convert to $2.09/s.f. • 20,000sf TU, concrete walls convert to $4.14/s.f. • 80,000sf MB, metal walls convert to $1.02/s.f. • 80,000sf TU, concrete walls convert to $1.88/s.f. • Conclusion - All other things being equal, bigger is more competitive.

40. Basic Design Concepts(These will make the previous unit costs even closer, and even eliminate the cost disadvantage) • Eliminate perimeter columns (tough for metal building types!) tilt-up walls are very strong, use them. • Use long bays over 30 feet (bar joists are a very low price levels). • Consider and sell alternatives to SSR roofing..currently a big advantage. • SSR/bracing diaphragm installed is $3.30/s.f. • Single Ply/Deck installed installed is $2.20/s.f.

41. Example: (This 90,000 s.f. project was essentially conventional except for roofing, and SSR was more costly than single ply and deck. Also exterior columns were not necessary).

42. Industry Legend:Metal buildings are less costly than conventional.Not true at least for structures over about 40,000 s.f.

43. Avoid long clear-spans, competing only with walls. Avoid tall buildings, panel costs may rapidly escalate over about 30 foot tall. Avoid small projects unless they are “jewel-boxes” where cost is not an object. Avoid low quality jobs, tilt-up is several steps up the quality ladder over metal walls. Avoid projects not well suited for tilt-up

44. Butler Delta Joist and Hardwall Systems Varco-Pruden Ceco/Star ABC Hardwall NCI Group’s new Long Bay product The problem working with these companies is almost always their“mind-set”. Also, the interface between the panels and their products is a problem on most jobs. Another Approach - Join with Metal Building Companies

45. When competing with metal walls, or promoting tilt-up construction on any job, you need: • NRMCA and TCA marketing support. • Clearly explain the advantages of tilt-up. • Team-up with other quality sub-contractors, vendors and suppliers. • Qualify users, do not waste time on “low-cost, tire-kickers”.

46. Marketing Needs: • Technical literature to influence and train engineers. • Sales literature for owners. • Training for contractors (TCA Certification). • Training for Planning and Zoning Officials • Seminars in your area.

47. Review The Advantages: • Very Durable, i.e. quality is big advantage over metal. • Flexible and attractive, remember arches, curves, reveals, inlays, and many other architectural features are possible, try this in metal. • Secure, metal walls can be removed with simple hand tools. • Long-Term Value, Lenders perceive concrete walls as having much better long term value over metal.

48. Can metal do this? (Target store in Lee’s Summit, Missouri)

49. Can metal do this? (Secure, Hazardous Chemical Distribution Center (225,000 s.f.) in Palmyra, Missouri with tilt-up concrete column rigid frames)

50. Can metal do this? (Arched Towers in Vero-Beach, Florida)