Category: Uncategorized

Maximizing the Value in Multifamily Development

No Comments

Multifamily construction had a good year in 2022. As noted in this recent report from Dodge Data & Analytics:

Nationally, commercial and multifamily construction starts increased by 25%. Commercial and multifamily construction made impressive gains in 2022, largely driven by rising demand for apartments and condos. Not to be outdone, commercial starts also posted strong gains fueled by increased demand for hotel, data center, and retail projects.

The New York metropolitan area was the top market for commercial and multifamily starts in 2022 at $37.1 billion, an increase of 37% from 2021. The Dallas metropolitan area was in second place, totaling $16.7 billion in 2022, a 51% gain. The Washington, D.C., metro area ranked third during 2022 with $11.4 billion in starts—a 38% gain over 2021.

Is it reasonable to expect such numbers to keep growing in 2023? Well, probably not. Another report from the National Association of Homebuilders (NAHB), published in January, reasonably predicts that multifamily starts will likely fall in 2023, following 2022’s “unsustainable” high production level.

When a specific market sector—in this case, multifamily housing—may be anticipating slower growth, we can calibrate how to best support and serve that market. For example, NAHB cites slowing rent growth and tightening commercial real estate financing conditions as reasons that may contribute to a potential slowdown.

With this kind of climate, it’s reasonable that developers may look at ways to control their costs more carefully regarding new projects. As this happens, I believe it’s important for our industry to continuously—no matter the forecasted economic conditions—advocate for the value that high-performance commercial glass and related products can bring to any project.

The benefits of multifamily applications are numerous and are well worth the continued investment for any developer interested in making high-performance buildings and comfortable living spaces. And the enabling technologies are likewise worth continued investment for glass professionals serving the multifamily market. Some of those benefits include:

  • Thermal Efficiency: Energy efficiency has been the name of the game in commercial construction for some time now, especially as highly glazed buildings have become popular around the world. Insulating glass technologies like warm-edge spacer systems, which can help optimize thermal efficiency by lowering thermal conductivity, make for a good choice to improve occupancy comfort and optimize energy savings. Meanwhile, multifamily construction is a ripe opportunity to use high-performance commercial vinyl technology that can further enhance thermal efficiency. Commercial vinyl framing is well suited for punched-opening applications, which are numerous in multifamily projects. And if maximized thermal efficiency is the goal, vinyl can be cost-effective; metallic systems typically must incorporate thermal breaks or other measures to match vinyl’s thermal numbers, driving up complexity and cost.
  • Sound Control: In noisy metropolitan environments, where multifamily high-rise buildings can be commonly found, acoustic performance is an important consideration for complete occupancy comfort. Commercial vinyl framing offers benefits here, too. Multi-chamber commercial vinyl extrusions can help mitigate noise, especially when compared with a metallic frame that reverberates more readily. Metallic framing can be designed to eliminate noise by incorporating dampening technology, too, but as noted earlier, such measures can make the design and manufacturing process more complex. A vinyl profile that helps lessen noise ingress from the busy streets below can be an attractive feature.
  • Color Options: Modern color options in vinyl framing have been popular in single-family residential spaces. But condominium and apartment dwellers have desires too. Commercial vinyl technology pairs well with modern color technology. For example, coextruded color technology incorporates color as an integral part of the vinyl profile. Such technologies can deliver outstanding color durability, enhanced scratch resistance versus painting or laminates, and the ability to withstand harsh weather conditions commercial windows face. For manufacturers, they also eliminate any labor involved with paint or laminates.

***

Investing in high performance makes good business sense for developers and property owners. It’s been shown that people simply like living in buildings that have been thoughtfully designed to maximize occupancy comfort. And for commercial glass professionals, delivering on those demands is essential. No matter what the rest of the year has in store for multifamily construction, there’s no room for compromise regarding glass and window performance.

Joe Erb is the national account manager for Quanex.

What To Do When Your New Equipment Arrives

No Comments

In last month’s blog, I highlighted the importance of seeking supplier support when bringing new automated equipment online. Indeed, successful automation doesn’t happen by accident.

An ideal scenario sees your automated machines whirring away as your technicians work with software to ensure that all processes flow as they should. Logistics and shipping are optimized at every level. Many of today’s commercial glass manufacturers may not be quite at this level of sophistication, but we’re getting closer every day. You may have invested in new automated equipment over the winter and are awaiting installation from the OEM in the coming months—just in time for summer.

In my work with customers who’ve implemented today’s top technology for commercial glass fabrication, I’ve seen some things they all have in common. Drawn from that experience, here’s a checklist with some tips on how you can get the most from your new equipment:

Don’t assume “business as usual” – New equipment will likely require adjustments to your typical processes. Floor staff will require some training on how to best work with the new machinery. If you’re adding capacity, raw materials ordering and fulfillment will need adjusting, too. Work with your vendors to ensure you have what you need to maximize your new capabilities.

More than anything, keep an open mind. Advanced new equipment may open doors to new opportunities for glass manufacturers—be open to where those doors might lead once you’re up and running.

Don’t neglect your older equipment – Not many commercial glass producers are completely overhauling all equipment at once. While it can be easy to become preoccupied with ensuring new equipment is up and running as you intended, priority must still be placed on numerous older and reliable machines and equipment that help you make quality commercial glass. Be sure that you don’t let maintenance lapses happen.

Optimize production flow – Vertical high-speed lines deliver great quality and consistency by efficiently assembling units in a straight line, allowing production managers great visibility into the product. Because supervisors can see straight down the line, they’ll know exactly what is happening with in-production units at all times, allowing them to spot any deficiencies easily.

The installation of new equipment provides a great opportunity for you to rethink plant flows and processes—indeed, a straight-line approach can and should be applied across your plant, where possible. Doing so will help to minimize the number of touchpoints and the distance your units need to travel from point to point. You’ll also have greater visibility into the product, wherever it is in production.

Prepare your sales teams – The benefits of new equipment extend beyond just the shop floor; high-tech machinery can sometimes help you make a higher-performing product. That means your sales teams must have the knowledge to convey those benefits to your customers. An example: A new high-speed line has enabled you to switch from a metallic spacer system to warm-edge spacer technology. Your sales teams must be armed with the right information and knowledge to communicate the benefit of your improved product to discerning customers.

New machinery brings new opportunities. Make the most of them by properly preparing yourself for installation and ongoing operation.

Joe Erb is a national account manager for Quanex

Why Supplier Support Matters in 2023

No Comments

No one wants to start 2023 on a sour note, but to make a point, let’s consider a hypothetical scenario for a moment.

Imagine that you’re a mid-sized commercial glass manufacturer. Despite a few challenges in 2022, you had a good year. So good, in fact, that you made the investment in a new automated insulating glass (IG) line to maximize your production potential and meet demand. Maybe it’s your first line. Maybe it’s your second or third. In any case, it’s an investment in your own growth and prosperous future.

So, let’s say your new line is being installed this month. Your equipment supplier will remain on hand to see that production is up and running and that your equipment is properly calibrated and in good working condition.

Then, they’ll leave. And what happens next is critical.

Successful Automation Doesn’t Happen by Accident
It can be easy to fall into the trap of viewing an automated line as a money printer. The promise of increased production figures, all accomplished with less labor, is an attractive one. But the reality is that an automated line is a sophisticated piece of equipment, and making the most of your investment takes the right skills and right mindsets.

For example: Are your maintenance teams up to the task of keeping your new equipment in proper working condition over the long term? Do they know the proper best practices to ensure you’re running the same quality glass in 12 months that you were in month one? Are they willing and eager to learn about how your new equipment works and how they can maximize its potential?

How about your raw materials inventory—are you ordering enough to meet your new production targets? Are your shipping operations capable of getting more units out the door?

These are just some of the questions you need answers to, or else you might find yourself wondering why your major investment isn’t delivering the return you might have expected. The good news is that our industry is a collaborative one. Still, unless you’re one of the major commercial glass manufacturers who are operating dozens of automated lines, there’s a possibility that you don’t have all of the required expertise under your roof.

And that’s OK—because in an ideal scenario, you should be able to find support from some of your vendor partners. It’s likely your spacer supplier has knowledge of how to best run their product on the type of equipment you’ve just installed. They may be able to provide you with additional tips and best practices on how to get the most out of it.

Leaning On Your Vendor Network
The truth is that the right network of trusted suppliers can bring significant value to your operations, and I think that’s something that will only become truer this year and beyond. The pandemic threw the need for flexibility and tailored support into sharp relief over the past several years. Today, it’s continuing to manifest in all different ways across the B2B value chain.

Recent research from McKinsey shows that modern B2B customers want more channels, convenience and a more personalized experience from their suppliers. New ways of communication and collaboration, which were made mandatory by widespread COVID policies, now have the potential to deepen engagement between B2B buyers and their sellers. Perhaps you have a training need in your facility.

A vendor supplier may be able to provide you with a virtual lunch-and-learn where once the only option was thought to be a time-consuming, on-site instruction course. Or let’s say you’re facing an equipment issue—you may be able to get in touch with a technical support resource more quickly and easily to help diagnose and solve a problem.

So, even if my automated line example was irrelevant to your operations specifically (maybe you’re an old pro at automation, or maybe your niche requires manual application), the point remains that leaning on your trusted suppliers may bring you unexpected benefits. Bringing in outside experience can shed new light on any problem, helping you remain successful this year and beyond.