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

2. Making Tilt-Up Construction Competitive with Metal Buildings (Understanding Building Systems) Presented To Arkansas Ready Mixed Concrete Association, Inc. By Jeff Needham, P.E., S.E. Needham and Associates, Inc. Consulting Engineers

3. Your Speaker Jeff Needham, PrincipalJeff 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 AssociationCharter Member of Tilt-Up Concrete Association

4. What Does Needham and Associates Do? General Practice Structural/Civil EngineersGeneral Practice Structural/Civil Engineers Consultants to PEMB IndustryConsultants to PEMB Industry –Heavy Structures ( ex: large clear-spans, steel mills, special structures) –Hardwall Buildings ( ex: site-cast, tilt-up concrete)

5. Vero Beach, Florida

6. Huntington, IN

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

8. Why Worry About Competing? MBMA claims about 60% market penetrationMBMA claims about 60% market penetration That is to say 6 out of 10 non high rise buildingsThat is to say 6 out of 10 non high rise buildings However, they often do not utilize metal wall panels (Competition is a metal wall)However, they often do not utilize metal wall panels (Competition is a metal wall) So are ready mix companies really vendors or competitors?So are ready mix companies really vendors or competitors?

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

10. Tilt-Up Panels are a Hybrid Product That is, they may be used with either metal buildings or conventional buildings.

11. 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.

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

13. Tingle Project is an American Building Company Project

14. 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. Dont fall into this trap!

15. History and Trends in Metal Buildings Need to Understand Your Competition. What are their Strengths and Weaknesses?

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

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

18. Historical Background - Metal Buildings (cont.) They are very efficient, but dont have any extra steel or strength andThey are very efficient, but dont have any extra steel or strength and The AISC now (since the early 1990s) certifies PEMB companies to ensure a minimum level of quality.The AISC now (since the early 1990s) certifies PEMB companies to ensure a minimum level of quality.

19. PEMB Trends in the 1990s PEMB structures have continued to increase their market penetration, PEMB are attempting to compete for complex buildings andPEMB structures have continued to increase their market penetration, PEMB are attempting to compete for complex buildings and 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.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.

20. Example of a More Successful PEMB Market Penetration Program Hardwall Systems (concrete or masonry walls).Hardwall Systems (concrete or masonry walls). Tingle, Lees Summit, MissouriTingle, Lees Summit, Missouri

21. Typical NEW PEMB Hardwall Buildings Designed for strict serviceability issuesDesigned for strict serviceability issues Load bearing wallsLoad bearing walls

22. History and Trends in Conventional Construction Strengths and Weaknesses of Conventional Approaches.

23. Trends in Conventional Construction Wide spread use of high strength steel,Wide spread use of high strength steel, Increased use of tubular steel,Increased use of tubular steel, Previous points driven by the rise of the mini-mill,Previous points driven by the rise of the mini-mill, Continued shortages of WF shapes, andContinued shortages of WF shapes, and Precast concrete wall industry is generally in decline, but is being replaced by site-cast panels.Precast concrete wall industry is generally in decline, but is being replaced by site-cast panels.

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

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

26. Historical Background - Conventional Buildings (cont.) Wood framing and steel stud framing are still very common in smaller structures,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,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, andHigh strength steels have only become the norm in the last 5-10 years, and The steel joist industry and pre- fabricated wood trusses have adopted PEMB style methods.The steel joist industry and pre- fabricated wood trusses have adopted PEMB style methods.

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

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

29. Basic Cost Examples (100x200x20 and 200x400x20) 20,000sf MB, metal walls convert to $2.09/s.f.20,000sf MB, metal walls convert to $2.09/s.f. 20,000sf TU, concrete walls convert to $4.14/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 MB, metal walls convert to $1.02/s.f. 80,000sf TU, concrete walls convert to $1.88/s.f.80,000sf TU, concrete walls convert to $1.88/s.f. Conclusion - All other things being equal, bigger is more competitive.Conclusion - All other things being equal, bigger is more competitive.

30. 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.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).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.Consider and sell alternatives to SSR roofing..currently a big advantage. SSR/bracing diaphragm installed is $3.30/s.f.SSR/bracing diaphragm installed is $3.30/s.f. Single Ply/Deck installed installed is $2.20/s.f.Single Ply/Deck installed installed is $2.20/s.f.

31. 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).

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

33. Avoid projects not well suited for tilt-up Avoid long clear- spans, competing only with walls.Avoid long clear- spans, competing only with walls. Avoid tall buildings, panel costs may rapidly escalate over about 30 foot tall.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.

34. Contrary Example: (This 250,000 sf industrial project still used a combined tilt-up grade beam and wainscot wall, despite being in the low quality, span and height avoidance groups.

35. Another Approach - Join with Metal Building Companies Butler Delta Joist and Hardwall SystemsButler Delta Joist and Hardwall Systems Ceco/StarCeco/Star ABC HardwallABC Hardwall NCI Groups new Long Bay productNCI Groups new Long Bay product Varco-PrudenVarco-Pruden The problem working with these companies is almost always theirmind-set. Also, the interface between the panels and their products is a problem on most jobs.

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

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

38. Review The Advantages: Very Durable, i.e. quality is big advantage over metal.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.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.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.Long-Term Value, Lenders perceive concrete walls as having much better long term value over metal.

39. Can metal do this? (Target store in Lees Summit, Missouri)

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

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

42. Thank You!...Needham & Associates Consulting Engineers http://www.needhamassoc.com 233 W. Baker St. Fort Wayne, IN 46802 233 W. Baker St. Fort Wayne, IN 46802 (219)420-3400 (219)420-3400 8417 Santa Fe Dr. Overland Park, KS 66212 (913)385-5300