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REPORTA Publication of the Insulation Contractors Association of AmericaGain “The Leading Edge” at the 2016ICAA Convention in Denver!July/August 20162016 ICAAConvention & Trade ShowCity CenterDenver MarriottSeptember28 – October 1, 2016MThe Leading Edgeark your calendars! The 2016 ICAA Convention and TradeShow will take place in Denver at the Marriott City Centerfrom September 29 to October 1. The focus this year is onhelping our members gain the “leading edge” in an ever-changingindustry, and there will be a wide variety of educational sessionsthat empower contractors to navigate the world of business. Plan toarrive Wednesday, September 28 for the Pre-Convention Workshopon Training the Competent Person for the New OSHA ConfinedSpaces in Construction Standard. From theft prevention to OSHAregulations, tax reforms to effective hiring, every session will addanother piece to your knowledge toolbox.www.insulate.org/conventionIn addition to the educational sessions and networking luncheon, ourannual Trade Show hosts the industry’s leading manufacturers and suppliers who will displaytheir newest equipment and technology.You can view the full program, book a hotel, and register at www.insulate.org/convention.We hope to see you in Denver!2016 ICAAConvention& Trade ShoDENVERM A R R I OT w 9.28.16 –10.1.16T CITYCENTEROSHA Issues Guidance on Confined Spaces inConstruction StandardOSHA has provided a list of frequentlyasked questions that clarify the scope ofthe new Confined Spaces in ConstructionStandard, as well as how the standard appliesto attics, crawlspaces, basements, and otherconfined spaces that may occur during residentialconstruction work. Here is sampling of thequestions and answers, in paraphrased form.inside this issuePresident’s Message . . 2Spotlight on Graco Inc. . . 4Update to OSHA 300 Recording Rules . 10Department of Labor Updates Overtime Provisionsin the Fair Labor Standards Act . 11Accella Performance Materials Acquisitions . . 11Calendar of Events . . 12If an attic, crawl space, or basement containsa hazard, is it automatically a permit-requiredconfined space under the Standard?A: No. However, assuming the attic, crawl space orbasement is a confined space, if the hazard is notisolated or employees could potentially be exposedto it, that would trigger the permit-requiredconfined space requirements. Not all unsafeconditions constitute “physical hazards,” whichthe standard defines as only those conditions thatcould impede an entrant’s ability to exit the spacewithout assistance.How hot must it be in an attic that is a confinedspace for the attic to be considered a permitrequired confined space?A: While OSHA has not quantified the heatneeded to trigger the permit-confined spacesContinued on page 10

PRESIDENT’S MESSAGEManaging in a VUCA WorldJeff BeckICAA PresidentEmail: jeff.beck@insulate.orgIf consumers knew all the work that goes intorunning an effective contracting company,they’d be shocked. As you well know, insulationinstallation goes beyond what takes place on thejob site. We always have one foot on a ladder,and the other on the business ladder. Betweennavigating OSHA regulations and FTC rules,keeping up with market trends, and training youremployees, it can be hard to keep your footing. Toborrow a term from the military, contractors mustconstantly manage an environment of VUCA –volatility, uncertainty, complexity, and ambiguity.ICAA’s top priority is to cut through all thenoise, helping contractors become the leaders ofan increasingly VUCA field. That’s why the themeof this year’s ICAA Convention is “The LeadingEdge.” The better you can adapt to the technicaldemands of the industry, the more time you candevote to your customer. Here are just a few of theeducational sessions that will help you take on bothbusiness and contracting with confidence.VolatilityAs customer desires change, so must businessdecisions. But how do you know what the marketwill look like in five years? In the Johns ManvillePlatinum Educational Session “Reading the TeaLeaves — Adjust, Adapt, Act,” Cynthia Paul of FMICorporation will outline some predictions for futuremarket growth and explain how contractors can getahead of these changes. And don’t forget the ICAATrade Show! With technology always changing, this aperfect place to find out about the newest equipmentand processes being used by top suppliers.UncertaintyContractors spend a lot of time ensuring thephysical safety of their employees, but it canbe difficult to tell if your company has its ownvulnerabilities. The Owens Corning PlatinumEducational Session “You Just Lost 100,0002— Theft Prevention for Insulation Contractors”will outline measures you can take to eliminatefraud and theft that damages your profitability.Convention educational sessions such asCertainTeed’s Platinum Educational Session“Challenges and Opportunities: How to IncreaseDesire for Insulation” and creating effectiveincentive compensation plans will ease your mindand give you the tools to position yourself in frontof the competition.ComplexityKeeping on top of industry regulations cansometimes feel like running up a descendingescalator — just as you master one step, anotherone appears. One of ICAA’s chief roles is to guideyou through this maze of rules. This year’sConvention will have several programmingblocks devoted to OSHA, including a session onhow to contest a citation and a pre-conventionworkshop on how to train your “CompetentPerson” for the new OSHA Confined Spaces inConstruction Standard. In addition, the DemilecPlatinum Educational Session “Building EnvelopeRequirements of the 2015 IECC” will clarify codecompliance options.AmbiguityEven harder than trying to understandgovernment policies is trying to predict what’sgoing to come next down the pipeline. With somuch back and forth in governance, how can youtell what’s actually going to affect you? That’swhy ICAA called in the experts to provide someclarity. If you’re concerned about how tax codeswill impact your bottom line, you’ll want to attendSaturday’s general session on tax policy reformand business ownership options. Need to makeimportant business decisions but have no idea howto untangle the legal aspects? Don’t miss “Clauseand Effect — for Non-Lawyers.”Continued on page 12July August 2016 Insulation Contractors REPORT

Insulation Contractors REPORT July August 20163

spotlightSpotlight — Graco Inc.Nick PaganoBusiness Development ManagerFoam and Polyurea EquipmentGraco Inc.You are currently the Business Development Managerfor Foam and Polyurea Equipment at Graco Inc. Whatkind of work does your role entail?In this role I work closely with ourSales and Engineering teams, ourdistributors, and our end-users. I amalways looking for ways to improveupon our existing equipment andto develop new equipment to meeta need in the marketplace. I amalso looking for ways for Graco toimprove how we do business with ourdistributors and end-users. It is mygoal to get closer to the end-user,to better understand their needsand listen to how we can make theirjobs more efficient, and improve theirprofitability, while helping to makesure they are spraying according to thechemical manufacturers specifications.tech days, equipment training classes, distributormeetings, etc.Can you tell us about Graco’s new productdevelopment process?One of Graco’s key business strategiesis their commitment to bring new andinnovative products to the market.Graco has a large team of mechanicaland electrical engineers, designers, andtechnicians all dedicated to developingnew products. What makes Graco uniquein this industry is the level of lab testingand field-testing that is done on every newproduct design. For example, bringingthe new Reactor 2 to market involvedliterally hundreds of documented labtests, thousands of hours of field testing,and individual components being tested tothousands and sometimes millions of cyclesto be sure they are built to last manyyears in a contractor’s environment.Graco partners with suppliers to provideGraco’sReactor2E-30Graco as a worldwide company alsoinstallers with access to its products. Howmakesa large investment towards ensuringdoes the company build relationships withour equipment meets or exceeds the necessarythese distributors?safety requirements for our products includingGraco works very closely with our distributors.UL, CSA, and CE standards. This often involves aEveryone in the Sales and Marketing Teams atconsiderable amount of internal, as well as outsideGraco has daily interaction with some aspect ofagency, analysis and testing to earn the right toour sales channel. For North America, Graco hasapply the approval marks.a 12 person Sales Team made up of Area SalesA very important part of our design processManagers. The Area Sales Managersfor any new piece ofhave the daily interaction with theirequipment is to developdistributors. Other key members of thea robust production testteam: the Sales Manager, the Productthat each new piece ofManagers, the Marketing Managers,equipment must passthe Sales Director all work closely withbefore it can be sold. Fordistributors as well. We rely on ourexample, every electricDistributors for feedback of products,Reactor 2 being builtmarketing programs, providing endgoes through a final testuser feedback, etc. There are alsothat includes over 55many direct interactions with thefunctional tests thatdistributors and Graco at trade shows,Continued on page 84July August 2016 Insulation Contractors REPORT

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spotlightSpotlight on Graco Inc.continued from page 4have pass/fail criteria. The test is fully automatedand includes running each unit at the maximumspecification limits of heat, pressure and output.All tests results are 100% electronically stored andtraceable by model and serial number.Graco manufactures applicators and proportionersthat can be used in the installation of polyurethanespray foam. Can you tell us about any new productsGraco is developing that may be exciting for ourmembers?Graco is continuously investing in new productdevelopment. Over the past few years Graco hascompletely overhauled its Reactor product line.This includes bringing the Reactor 2 design to theelectric, hydraulic, and integrated units. We havealso developed a high pressure/high temperaturemobile sprayer called the E-10hp, and developed ahigh pressure air power unit called the A-XP1.Wealso developed Graco InSite, the remote reportingtechnology, to the Reactor product line.Graco currently has a number of new productideas in various stages of development that will beused in the foam and polyurea industry. At thispoint, we are not ready to let the “cat out of the bag”for what our next big ideas will be, but contractorscan always expect Graco to be creating newproducts that will change and improve our industry.Do you have any sort of mechanism in the productdevelopment process that allows Graco to receivefeedback from contractors?Getting feedback from thecontractors using our equipment isthe biggest source of informationwhen developing new product ideas.These ideas come to us in manyways: direct feedback obtained withour sales team making hundreds ofcontractor visits every year, oneon-one discussions with contractorsat trade shows, and feedback givento our distributors they relayed toGraco. Our sales and marketingteams have personal relationshipswith hundreds of contractors socontractors call us and send usemails with their ideas. In addition8Graco invites contractors to participate in focusgroup and surveys about new product designs.During the actual new product developmentprocess, the Product Manager works very closelywith contractors to include their ideas in the newdesign. Early field-testing of ideas and conceptsprovide great feedback to Graco as the designis being finalized. Many of the final design featurescome from direct feedback we receive from ourend-users.Have you noticed any trends in the market that mayimpact contractors or fellow manufacturers?With the internet, consumers are educatingthemselves on the benefits of spray foam and weare seeing spray foam being offered by more andmore of the large nationwide home builders. Asmore homeowners ask for spray foam, I think wewill continue to see more homebuilders offering it.The industry itself continues to innovate thechemistry being used in the spray foam product.Chemical blenders are bringing new productsto market with higher R values, shortened reoccupancy times, the ability to spray thicker foamper pass, and new “greener” blowing agents. Thesenew products are designed to make spray foammore economical to install and provide additionalbenefits to the homeowner and environment.In what ways do you think Graco has benefited frombeing an ICAA member?Being a member of ICAA allowsGraco to stay in-tune withindustry news, and provides us theopportunity to participate in theICAA Convention and Trade Show.The ICAA Convention is alwaysone of the best events of the yearfor our industry. The interactionwe have with contractors, ourdistributors, and materialsuppliers at the Convention isalways valuable. We also lookforward to helping educate ourcustomers at the Convention.July August 2016 Insulation Contractors REPORT

Insulation Contractors REPORT July August 20169

Update to OSHA 300 recording rulesAnew OSHA rule published in May 2016 hasinstituted new requirements for electronicsubmission of injury logs. Workplaces with250 or more employees will now be required toelectronically submit 300 Logs, 301 Forms, and300A Summaries once a year. In industries OSHAdeems hazardous — including contracting —those with twenty or more employees will have toelectronically submit only their 300A Summaries.When will it take effect?Establishments with twenty or more employeeswill be required to submit their 300A Summarieson July 1, 2017, and larger organizations with 250or more workers must submit 300 Logs, 301 Forms,and 300A Summaries on July 1, 2018. Beginning in2019, all employers with twenty or more employeesmust submit the information by March 2.What else should I know?While OSHA’s computer software will removeany personally identifiable information tied toindividuals, the submitted information will beuploaded to a publically searchable database. Thismeans that the press, competitors, and consumerswill be able to view, at a minimum, the amount ofdays in a year your company lost to injury.The rule also adds stricter anti-retaliationprotections for whistleblowers. Specifically, anew provision restricts post-incident drug testingto cases where drug use was likely to havecontributed to the incident and there is a test thatcan accurately measure impairment from the drug.As such, this limits employers’ ability to test formarijuana impairment, as there is no agreed-uponstandard to evaluate impairment from the drug.How should an employer inform employees of theirright to report work-related injuries and illnesses freefrom retaliation by their employer?One way for employers to meet this requirement isby posting the OSHA “It’s The Law” worker rightsposter from April 2015 or later (http://www.osha.gov/Publications/poster.html). Employers alsomust establish a reporting procedure that does notdeter workers from reporting work-related injuriesand illnesses.May an employer require post-incident drug testingfor an employee who reports a work-related injuryor illness?The rule does not prohibit drug testing ofemployees. It only prohibits employers from usingdrug testing, or the threat of such, to retaliateagainst employees who report injuries.For more information on recordkeepingand reporting requirements, visit www.osha/recordkeeping/RKforms.html.Submission YearEstablishments with250 or more employeesEstablishments with20-249 employeesSubmission Deadline20172018Form 300AForms 300A, 300, 301Form 300AForm 300AJuly 1, 2017July 1, 2018OSHA Issues Guidance on Confined Spaces in Construction Standardcontinued from page 1requirements, the heat must be so extreme that itcould potentially impede an entrant’s ability to exitthe attic without assistance. Factors that OSHAwould consider are (1) the temperature of the spacewhile work is performed, (2) the nature and durationof the tasks performed in the heat, and (3) whetherthe entrant is acclimatized to work in extreme heat.Additionally, OSHA will consider measures taken tocontrol the heat in an attic, such as the use of a fan,when determining whether a serious hazard exists.If a “Competent Person” determines that a confinedspace in a residential home does not contain or havethe potential to contain a hazardous atmosphere,10would an entry employer need to conductatmospheric testing of the space before an entryand provide for continuous monitoring of the spaceduring the entry?A: No. If a confined space does not contain or havethe potential to contain a hazardous atmosphere,an entry employer is not required to performatmospheric testing or atmospheric monitoring.For the full FAQ, visit .On September 28, ICAA is hosting a Pre-ConventionWorkshop on Training the Competent Person for theNew OSHA Confined Spaces in Construction Standard.If attending, we recommend you arrive Wednesday,September 28 as the workshop begins at 1:00p.m.July August 2016 Insulation Contractors REPORT

Department of Labor UpdatesOvertime Provisions in the FairLabor Standards ActCall 1-800-666-8191Beginning December 1, 2016, an update to theFair Labor Standards Act will increase theemail: sales@adoproducts.comsalary threshold for exemptions to overtime pay.Under the Final Rule, executive, administrative,and professional white-collar workers will beeligible for overtime pay if they earn 47,476a year ( 913 a week) or less. Bonuses andincentive payments may now count towardup to 10 percent of the salary level for theseemployees, so long as the payments are madeat least once a quarter. The threshold will beupdated every three years, starting in 2020, sothat it remains aligned with wage growth.To ensure compliance with this new rule,identify salaried, exempt employees at yourcompany who are paid less than the newthreshold. For these workers, employers can a)pay time-and-half for overtime work, b) raiseworkers’ salaries above the payment threshold,w w w. a d o p r o d u c t s. c o mc) restrict them to working 40 hours a week orless, or d) some combination of the above.Learn more at https://www.dol.gov/featured/overtime, or read frequently asked questionsabout the Overtime Rule at https://www.dol.gov/ICAA Ad 3.5x4.75 2015.indd 1 2016 ICAA Conventionwhd/overtime/final2016/faq.htm.Products You Need.Service We Deliver. 2015 ADO Products, LLCAccella Performance MaterialsAcquires Quadrant Spray Foamand Premium Spray Products10/23/15 1:04 PM& Trade Show 9.28.16 –10.1.16D E N V E R M A R R I OT T C I T Y C E N T E RAccella Performance Materials, a leadingmanufacturer of polyurethanes and recycledrubber products, has acquired two othermanufacturers in recent months. QuadrantSpray Foam and Premium Spray Products wereacquired in March and September, respectively,and anticipate little change in their operations.Denver Art MuseumIt’s Our Businessto Protect Yours! www.federatedinsurance.comFederated Mutual Insurance Company · Federated Service Insurance Company* · Federated Life Insurance CompanyOwatonna, Minnesota 55060 Phone: 507.455.5200 www.federatedinsurance.com*Not licensed in the states of NH, NJ, and VT. 2016 Federated InsuranceInsulation Contractors REPORT July August 201611

Introducing ICAA’s newMarketing CoordinatorWe are excited to introduce Meghan Lasswellas ICAA’s new marketing coordinator.Meghan began her professional career at VanderbiltUniversity, where she majored in political science.While at Vanderbilt, Meghan developed an interestin non-profit groups and their mission-driven work.During summer semesters, she interned at severalWashington D.C. advocacy organizations focused ondisability policy. At United Cerebral Palsy, Meghanlearned how to create effective email and socialmedia campaigns and at the American Associationof People with Disabilities, she was charged withwriting press releases, finding potential sources ofgrant funding, and representing AAPD on policyworking groups. Shortly before graduating, Meghanstudied abroad at University College London (preBrexit — it was a different time).2016 ICAACALENDAR OF EVENTSICAA Meetings Denver, CO Fall 2016ICAA Pre-Convention Workshop on Trainingthe Competent PersonWednesday, September 281:00pm to 4:00pmIf attending, arrive Wednesday, September 28ICAA Convention and Trade ShowWednesday, September 28 throughSaturday, October 11321 Duke Street, Suite 303Alexandria, VA 22314Tel: 703.739.0356Fax: 703.739.0412Website: www.insulate.org e-mail: icaa@insulate.org2016 ICAA BOARD OF DIRECTORSPresidentJeff BeckPresident-electFerrell DrumSecond Vice PresidentJeff BankerTreasurerWayne SullivanSecretaryGinny CameronDirectors:Ted BlanchardRichard CarrollMark DietzJeff HireMike KingKevin KinzlerJoe MillerJerry PalmerThomas Sprouse IIAfter receiving her undergraduate degree,Meghan served as a communications associatefor Georgetown Lombardi Comprehensive CancerCenter, further honing her digital marketingskills. ICAA welcomes Meghan to the insulationcontracting industry where she will provide ourmembers with top-notch education and support. Inher free time, Meghan enjoys practicing outdoorphotography and enabling her popcorn addiction bygoing to see movies at the theater.Please feel free to reach out to Meghanwith any questions or feedback! Her email ismeghan.lasswell@insulate.org.And Congratulations to Sally Harrs on herretirement.We wish Sally all the best on her life afterretirement, and tons of happiness in the yearsahead.President’s Message continued from page 2As the ICAA Convention approaches, and youdeal with the ups-and-downs of business andconstruction, let me remind you of perhaps themost important lesson of all: have fun. Between thepaperwork and accounting, it can be easy to losesight of the true motivation for your work, but tryto find the bigger picture within the daily grind.Warren Buffett once said: “You have to find yourpassion in life. I would choose the same job. I enjoyit. It is a terrible mistake to sleepwalk through life.”All I’m saying is – if you spend so much time on aladder, you may as well enjoy the view.ICAA Committees and Co-ChairsICAA Technical/Marketing CommitteeRichard Carroll, Carroll Insulation & Window Co., Inc.Kelly Frauenkron, BASF CorporationICAA Government CouncilKevin Kinzler, KCS, Inc.Shawn Beears, CertainTeed CorporationICAA Commercial Building Insulation CommitteeMark Dietz, Superl, Inc.Greg Meilinger, Owens CorningPublished by the Insulation Contractors Association ofAmerica and provided as a service to its members. Copyright 2016.ICAA is the trade association representing the insulationcontracting industry.Executive Director Michael Kwart

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