Na#onalFenestra#onRa#ngCouncil(NFRC)FallMembershipMee#ng

Summary,CommercialModelingApproach(CMA)ProgramEffec#venessStudy

Denver,ColoradoOctober3,2016

ProblemStatement

•  WhyismarketuptakeofNFRC’scommercialfenestra9onproductsenergyperformancera9ngsystemandtheComponentModelingApproachSo?wareTool(CMAST)solow?

•  WhatcanbedonetoimproveNFRC’scommercialprogramtoincreaseuptake?

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ReportMethodologyThroughexternalandinternaldataanalysisandresearch,•  Characterizestheexis#ngCMAprogram

marketandes#matedmarketsize•  Summarizesthecurrentprogramfee

structureandentrypointsThroughsurveysandinterviews,•  Analyzesthemo#va#onsofcommercial

marketstakeholders(manufacturers,permit/codeofficials,architects,contractors,modelers)–  DetailstheCMAvalueproposi#onforits

variousstakeholderaudiences•  DocumentsthereasonsfortheCMA

program’slackofmarketuptakeandthebarrierstoitsadop#on

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ReportStructure1.  ContextandExis#ngCer#fica#on

Process2.  AnalysisofNFRCCommercial

ProgramFeeStructureandMarketSize

3.  AnalysisofCurrentNFRCMarketPenetra#onandDemographics–  Pushvs.PullApproachesfor

IncreasingMarketPenetra#on4.  FindingsfromStakeholder

Engagement–  SummaryofMarketDrivers,Value

Proposi#on,SupplyandDemandBarriers,andStructuralBarriers

5.  Recommenda#onsandNextSteps

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FINDINGS

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CurrentCMAProgramFeeStructure•  $1000annualfeeforaccesstotheCMASTsoZware,requiredformost

users;ACEs,IAs,codeofficials,andresearchersareexempt.•  Annualpar#cipa#onfeefororganiza#onstomaintaincomponentsin

CMAST--from$1,500to$8,500forframemanufacturers,and$3,500or$4,500forspacermanufacturers

•  Aper-componentfeetomaintainapprovedcomponents;$15percomponentforNFRCmembersand$30percomponentfornon-members.Spacercomponentfeesare$80formembersand$130fornon-members.

•  Annualpar#cipa#onfeeforApprovedCalcula#onEn##es(ACEs),from$1,500to$5,000.

•  AnnualmaintenancefeeforeachpersonACEwithinanACEorganiza#on;$150perpersonforNFRCmemberorganiza#onsand$200perpersonfornon-members.

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CMASTMarketUptakeDataAnalysis•  Subjectofanalysis:databaseofcer#ficatesissuedthrough

CMAST2010through2015–  Context:U.S.commercialbuildingsdatafromtheEnergyInforma#onAdministra#on

•  Totalnumberofassembliesinpastfiveyears:9,653•  Totalnumberofprojectsinpastfiveyears:567(~113/

year)•  Averageoftestedfenestra#onassembliesperproject:17•  Totalof70uniquemanufacturersac#ngasspecifying

authorityonacer#fiedbuilding

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Na#onalComparisonData–NumberofNewBuildings

•  TotalvalueofnewU.S.commercialandmul#familyproper#esin2015,$554billion(Census)

•  EIA(CBECS)es#matesanaverageof69,000newcommercialbuildingsperyearfrom2003to2013

•  Censusshowsthatoverthesame#meperiodanaverageof12,000mulIfamilyresidenIalstructureswerebuiltperyear.

•  Averageof81,000newCMA-eligiblebuildingsperyear.

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Na#onalData–Manufacturers•  GlassandGlazingcontractorstotalrevenuein2014,$12billion

•  5,328glassandglazingcontractors,56over100employees

•  65flatglassmanufacturingcompanies,17over100employees

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MarketUptakeAnalysisVisualiza#on

Between2010and2015,567cer#fica#onsvs.400,000es#matedCMA-eligiblebuildings

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Fenestra#onTypeand

BuildingSize

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MarketDataAnalysisSummary•  Smallercommercialbuildingsmorelikelytousedpunchedopenings,fixed/operable

windows,withresiden#alproductcrossover.Largebuildingsmorelikelytousecurtainwallorwindowwall.

•  CMAcer#fiedbuildingshavebeenlargerinsizethanthena#onalaveragebuilding(CMAuptakeskewstowardcomplexbuildings)

•  Marketsuppliers--championmanufacturersandspecifyingauthori#es--drivinguptake–  EFCO,Window-Tech,Tubelite

•  Championsectorsdrivinguptake–  K-12andHigherEduca#on

•  Regulatorydemanders--championstatesandci#es--drivinguptake–  Overhalfofna#onalmarketuptakefromtwostates,WashingtonandUtah(commercial

buildingcodecompliancereliesonCMAST)•  coveragenottotal,despiterigorouscompliancestandard

•  Na#onaluptakes#llafrac#onoftheoverallmarket(0.14%)–  2.0%inWashington,1.6%inUtah–  0.5%ofna#onalK-12andHigherEduca#on

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SurveyandRoundtables:Iden#fyingBarrierstoMarketSupply

•  Cost–  Par#cipa#onintheprogramiscostly,andaddi#onallaborandtes#ngcosts

associatedwiththecer#fica#onprocessaddup•  Speed

–  Theprocesscantake4–9months(longerthansomeconstruc#onjobs–  Noeconomiesofscale.Commercialbuildsareuniqueandreusabilityofexis#ng

componentsislow.•  EaseofUse

–  CMASTlearningcurvecanbesteep..–  CMASTcoulduseimprovement(doesn’trespondwelltonon-standardsizes,

metrictoimperialconversion,etc.).•  Predictability

–  Designvaluescanendupdifferingsubstan#allyfromcer#fiedvalues.–  ResultsmayvarybasedontheACEdoingtheworkandthevaria#onfromlabs

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SurveyandRoundtables:Iden#fyingBarrierstoRegulatoryDemand

•  EnergycodeenforcementforfenestraIonislax–  Codeofficialsunlikelytostopajoboverenergycomplianceforglass–  Permitreview:underfunded–  Concernedwithlife-safetyissuesfirst

•  EnforcersacceptsubsItutesordon’tknowwhattolookfor–  Engineeringdrawings,CMAdesignnumbers(notfinallabelcer#ficate),

thermaltestresults,manufacturer-provideddata,centerofglass,etc.–  CMAlabelcer#ficatenot“visible”tocodeofficials

•  Residen#alprogramplaceslabelontheproduct.Highlyvisibleinthefield.Commercialprogramdoesnot.

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StakeholderConsensusontheValueChain

•  Keypartofvaluechainformarketuptake:–  Commercialmanufacturers

•  Atrustedsourceofinforma#on•  OZencontractuallyboundtostatedperformance•  Designteams/ownersandenergymodelerslooktomanufacturersandACEsforperformancenumbers– Manufacturers/ACEsprovideenergyperformancenumbersaspartofsales/biddingprocess

•  Notaskeyapart:permitofficials– Willingtoacceptsubs#tu#onsfortheNFRClabelcer#fica#onorbypassenergycoderequirements

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InterviewswithPermitOfficialsDuaneJonlin,SeaZle•  ProjectsmustsupplyCMASTcer#ficates/reportstopassfieldinspec#ons•  “Nosubs#tu#onsallowed;noAAMAreportsallowed”–“notrigorous”enoughEllenEggerton,FairfaxCounty•  State-widecostsavingssoughtinpublicsector•  Ranksofpermitofficialsreduced•  Residen#alinspectorsbecome“lightcommercial”inspectors

–  Lightcommercial=under10stories(vastmajorityofcommercialbuildings)•  Lightcommercialinspectorsare“combo”inspectors,coveringalltrades(electrical,plumbing,

etc.).Consequences:–  “Knowledgebarriers”–“imaginestackingallcodebookstogetherandhavingtomaster

that”–  Lifesafetytakespriority

MichaelHamilton,ArlingtonCounty•  OnlydedicatedenergyspecialistinDMV

–  CoversallArlingtonconstruc#on;headsDMVenergycodecomplianceroundtable•  FamiliarwithNFRCstandardsandComCheck;notfamiliarwithCMAST

–  Hadtolookupapplicablecoderequirementsforcommercialbuildingfenestra#on

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InterviewswithManufacturerACEs/PEs•  CatherineBest,Benson

–  Onlackofmarketadop#on:“There’swhattherulessay.There’swhatthespecssay.Andthenthere’swhatthepoli#cssay.”

•  SteveFronek,Wausau–  Implica#onsoftrendtowardscomplicatedframeassemblies

•  JesseWinters,WindowTech–  IncreasedbusinessprovidingdraZinganddetailingservicesforglazing

contractors•  BenWest,Oldcastle

–  MarketdemandincreaseingeographiesofNW,NE,CA–  ACEtrainingkey

•  MasonFritz,EFCO–  About55%ofhisCMASTprojectsfinalized–thus,CMASTmarketuptakelikely

morethanwecanes#matebasedonfinalizedprojectsalone

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StructuralBarriers•  Feestructuredesigncreatesadisincen#veformanufacturerstouseandmaintainalargenumberofcomponentsinCMAST

•  MisuseorabuseofoutputsinCMASTorCOMcheckallowforshortcutstoavoidcer#fica#on.

•  Thereismarketconfusionbetweenresiden#alandcommercialprograms,especiallyinthespacewherecommercialbuildings(withpunchedopenings)andresiden#alwindowsoverlap.

•  Thecommercialmarketisfundamentallydifferentfromtheresiden#almarketintermsofcontractualrela#onshipsandthetrustgap.

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CMAProgramValueProposi#on•  ForManufacturers:– Enhancedconsumertrust– Enhancedcredibilitywithgeneralcontractors– Standardiza#onofthecodecomplianceprocess

•  Commonlyacceptedperformancemetricsandvalues– Differen#a#on– Value-addedserviceforarchitectsandengineers– Pathwaytocodecompliance

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ValueProposi#on,Con#nued•  ForACEorganiza#ons:– Revenuegenera#on

•  Forpermitandcodeofficials:– Fair,transparent,andrigorousverifica#onmethodofenergyperformanceclaims

– Markettransforma#ontowardsanenergy-efficientbuiltenvironmentatamunicipalorcountyscale,resul#nginlowercarbonemissions

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StakeholderTopTenMust-HavesForACommercialFenestra#onRa#ngSystem

1.  Focusonthedirectcustomers–productmanufacturers.Thesystemmustbeeasy,fast,reliable,andcost-effec#ve.

2.  Addresstheneedsofthevariouslevelsofthevaluechain,withafocusalsoonindirectcustomers(codeofficials,glazingcontractors,etc.).

3.  CoverU-factor,SHGC,andVTasacodeminimumandconsidercondensa#on.4.  Resultinthird-party/independentlyvalidatedoutputs.5.  Coverallproducttypesandmarketsinasinglesystem.6.  Coverstandardoractualsizes.7.  Includebidreportfunc#onality.8.  Validatecodecompliance.9.  Accommodateavarietyofglasspackages,includinglaminatedglass.10. Beincludedinoracceptedbyreferencedstandards(code).

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RECOMMENDATIONS

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Recommenda#onBaskets

1.  Marketdevelopment2.  Programdesign3.  Improvementprocess

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Recommenda#onsforMarketDevelopment

•  Focusonincreasingvaluetomanufacturers,ACEs,andotherCMASTusersastheprimarystakeholdersoftheCMAprogram,ratherthanenforcement/permit/codeofficials

•  AchievesuccessonthemeritsofdeliveringvaluetoCMASTstakeholdersintheformofaprogramthatis:–  Cost-effec#ve,easytouse,#mely,accurate,credible,andconsistent,whilemaintainingsufficientrigortoprovidetrustedandstandardizedresultsforcodecompliance.

–  Abletomeetneedsbeyondcodecompliancesuchasfacilita#ngmarke#ng,modeling,commissioning,etc.

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Recommenda#onsForProgramDesign,1•  ChangethefeestructuretochargeforcerIficaIonratherthanparIcipaIon.– Noannualfees,par#cipa#onfees,orfeesformaintainingcomponentsinthedatabase,incen#vizingtheindustrytousethetoolandbuildthedatabaseofcomponents,whichincreasesthevalueofthetool

– Anominalfeeforthegenera#onofabidreport– Acer#fica#onfee

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Recommenda#onsForProgramDesign,2•  Eliminatemarketconfusionbyins#tu#ngasingleNFRCprogramspanningtheresiden#alandcommercialmarkets,differen#a#nginsteadbyseparate“product”or“project”paths.– Aproductpaththatrequiresallfenestra#onproductsonajobtobeindividuallycer#fied(byproduct)

– Aprojectpath,similartotheexis#ngCMAcer#fica#on,thatwouldallowindividualapprovedcomponentstobeusedincustomassembliesinasingle,project-levelcer#fica#on

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Recommenda#onsForProgramDesign,3

•  CloseloopholesintheverificaIonprocess.– RemovetheabilitytogeneratebidreportswithoutregisteringinCMASTandlookforwaystoreduceorcallaqen#ontotheentryofunverifiedcomponentvaluesinthetool.

– Researchwaystocloseloopholesinrepor#ngwithinCOMcheck.

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Recommenda#onsForProgramDesign,4•  StreamlinethecerIficaIonprocess.

–  DoNOTeliminateheverifica#onandtes#ngprocess,thefounda#onofcredibility

–  Encourageandincen#vizestakeholderstobegintheprocessearlyandtoreusetested,library-archivedcomponentswherepossible

–  Considerreduc#onsincer#fica#onfeesforprojectsthatusepreviouslyapprovedcomponentstoencouragethemarkettoreuseexis#ngcomponents,resul#nginfastercer#fica#onturnaround#mes

–  Considerareaswhereverifica#oncouldbereducedoraccelerated(perhapsamovetoselectedaudits,asopposedtofullreviews)

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Recommenda#onsForProgramDesign,5

•  Focusonimprovingtheaccuracy,credibility,andconsistencyoftheCMASToutputs.–  EnsurethatCMASTcanbeusedasamarke#ngtool– Worktoreducevariabilityofresultsdesignandcer#fica#onnumbersbetweendifferentACEsanddifferentsimula#onlabs

– WorktoharmonizeCPDandCMASTperformancenumbers

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Recommenda#onsForProgramDesign,6•  MakethelabelcerIficatevisibletoenforcersandconsumersalike.– Forcer#fiedproducts,displayalabelsuchastheonenowaffixedtoresiden#alwindows

– Forcer#fiedprojects,createaprojectlabeltobedisplayedonthejobsite

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Recommenda#onsforImprovementProcess

•  Includeallmembersofthevaluechain.– Manufacturers–  Tradeassocia#ons,suchasAAMA,IGMA,andGANA–  Governmentandcodebodiesrepresenta#vesandpermitofficials

–  ACEs–  Designers(architectsandengineers)

•  Workinconcertwithsimilarprograms(AAMA507)tocreateastandardwithunifiedindustrysupport.

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QuotefromDOE’sDavidCohan

•  “Ihavenowaytogetoutto30,000jurisdic#onsinameaningfulway,toeducatethemaboutcodecompliance.Ifit’snotthecommercialbuildingpermitofficialsdrivingit,ithasgottobethecommercialmanufacturers...intheend,you’vegottohaveabusinesscaseforsomebody.”

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DISCUSSIONANDQUESTIONS

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Contact:•  VickyKiechel,AIA,LEEDAPBD+C,O+M,ID+C,ND,Homesvictoria.kiechel@cadmusgroup.com240-204-6209

•  PhilipQuebe,LEEDAPBD+Cphilip.quebe@cadmusgroup.com703-247-6132

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