By
Joe Salimando
Exclusive for McCormick Systems
Not
every electrical contractor wants to grow rapidly. And not every
company (of any kind) in America specifically targets growth.
But
that’s what they’ve done at Kortman Electric, Inc., of Phoeniz, AZ,
a company that started out (25 years ago) on a kitchen table. We’re
happy to report that the strategy is working – and that McCormick
Systems electrical estimating software plays a role in the plan.
With a strategic plan guiding the company in new directions, the
Kortman executive team looked to recruit some experienced estimating
help. That came in the form of Keith Waldrup, who has worked in both
general and electrical construction since taking a job in 1974 as an
estimator trainee for a mid-sized Minnesota electrical contractor.
“I’ve worked for five electrical contractors in those 34 years,”
says Waldrup, “and that doesn’t count the stop at McCormick
Systems.” (He worked with us from 1989 to 1992.)
Prior to Kortman, Waldrup was Perini Building Company’s Senior
Manager of Electrical Services on MGM-Mirage’s $11 billion
CityCenter project in Las Vegas, commuting weekly from Phoenix.
“I’ve known and admired the Kortmans for quite a while” he says.
“When the Kortmans asked me if I knew anyone they might hire to help
with their growth plans, I gave it some thought. To make a long
story short, I woke up one day and said . . . maybe it’s me!”
Waldrup began working with Kortman Electric in April 2007.
Growing By Plan
Kortman’s management team established goals for steady, planned
growth. How to do that was the subject of some important
discussions. “Ownership wanted controlled, profitable growth,”
Waldrup explains. “We didn’t want to necessarily be the biggest guy
on the block. We didn’t want things to get out of control.”
Brought in as the Director of Estimating, Waldrup says he looked
first at getting a firm handle on the company’s estimating efforts.
“We weren’t using McCormick’s software to its full potential,” he
notes. “We hadn’t adapted it to our efforts to the extent we could.
“We
are still tuning the system to better meet our needs.”
“If
we do our estimating in a consistent manner – within reason – we can
handle more volume. By inputting take-offs into an established
database, with McCormick there’s a big advantage,” Waldrup states.
“That advantage is that the information is already there, for
everyone to work with. Using assemblies, estimators can’t ‘forget’
anything. It’s a huge benefit for us in our effort to grow.
“As
we identified a need for more estimating help we brought on a new
estimating trainee. Using McCormick’s assemblies will help assure
complete estimates and minimize mistakes.”
Kortman Electric uses the McCormick 8000 system. The company was a
user before Waldrup arrived; in fact, our March 2003 newsletter’s lead story was about Kortman Electric.
Building On The Estimate
Estimating a job correctly, according to Waldrup, is the key to
building a more profitable business – especially as the company
grows. “We’ve targeted jobs that best fit our company,” Waldrup
says. “We try to avoid pursuing work which is not suited to what we
do best.”
“That could be called the first step in ‘working smarter.’ Limiting
our pursuits to what we do best increases our chances for success. Why? Because we know the project. That means we can talk a
lot more intelligently about it. We approach our client with the
sure knowledge of a solid estimate.”
How does that work? “It’s important to have our estimating
efforts under control. Knowing we’ve got good, repeatable estimates,
we’re in control. We can evaluate them in a lot more detail thanks
to McCormick. We can bring more value to the client and to the
project.”
How Does THAT Work? "OK,
let’s say that on a given project I know I have a good number. It
might not necessarily be the lowest number – but it’s definitely the right number.
“If I know I have the right number, I can work with the client and
review design details that are incomplete or inefficient,” Waldrup
says. “It’s not just throwing a problem at them – I’m talking with them to provide solutions. I know the job. I’m pointing out
what might be approached differently so that the client can get the
best value for his money.”
“I
know the job. I know my estimate is solid. The goal is to bring more
value to the table than the competition. I can talk with that kind
of confidence. Now let me ask you: If you’re the client, who would
you hire?”
Joe Salimando (ecdotcom@gmail.com) writes for and edits electrical industry publications, including Rexel’s Power Outlet. He’s the editor of McCormick Systems’ newsletter and the proprietor of The EleBlog.
Endings & Beginnings
By
Todd McCormick, President, McCormick Systems
In
estimating, we look forward; the very thing we do is about
the future. Of course, electrical estimators look hard at how to
construct a job, bid projects or provide budgets, and win projects.
Not long after, we’re moving on to the next challenge.
In
some ways, the end of 2008 marks a dividing line for all of us. The
economic recovery that began in 2003 seems to have petered out. The
best reading any of us have for non-residential construction’s
future – the “work
on the boards” monthly index from the American Institute of
Architects – is telling a sad story about the second half of 2009.
So
perhaps our work will get tougher in the coming months. We’ll have
to work to “sharpen our pencils,” figuratively. Some contractors
will bid work very tight, so as to keep their core group of
electricians busy. And the fact that the price of a pound of copper
is down from the $4 range in May under $1.75 may wreak havoc for
some.
Is it time to give up? We don’t think so. We’re not blowing
smoke here, there are some VERY positive things on which to hang our
hats:
-
If proving
your value to your customers is important (and I certainly
think it is!), then this is the time to do it. When
you come through for a customer in a boom period, you might
get a “thank you.” But when you come in under budget, ahead
of time, and safely for a customer in tough times, you earn
something more.
We
all know that, whatever is coming, good times are on the other side
of this cycle. McCormick Systems stands ready to come through for
you, as a valued supplier of software and services, in this period.
We’ve noticed a trend. When we help our customers survive these
tough times and thrive on into the future, we as a company do
better. And we – as people – can put into our personal “bank”
something you can’t print out on a check . . . job satisfaction.
So
you can count on us. Here’s wishing you a happy holiday season, and
the best of all possible worlds in 2009.
PERSPECTIVE
November items from www.eleblog.com
Copper Prices To
Fall?
(posted 11/17) Here's a potent three paragraphs (well, the last
one is astoundingly BAD) from a Bloomberg.com report dated today:
Copper is an indicator for the world economy and sets the pace for
other industrial metals because an average 400 pounds (181
kilograms) are used in homes and 50 pounds in cars, according to the
Copper Development Association. Prices collapsed after rising as
high as $8,940 a metric ton on the London Metal Exchange July 2. The
International Monetary Fund in Washington said the U.S., Europe and
Japan will fall into a recession simultaneously for the first time
since World War II.
China is the key to commodity prices because the country is the
largest user of iron ore, aluminum, zinc and copper. The nation's
economy may grow 7.5 percent or less next year, Morgan Stanley and
Credit Suisse Group AG say. That would be the slowest pace since
1990, data compiled by Bloomberg data show.
Demand from China helped copper prices more than double in the past
six years. Now, the price may fall 37 percent from the Nov. 14 close
to $2,400 a metric ton next year, said Andrew Keen, an analyst at
Sanford C. Bernstein & Co. in London, the second most-accurate
forecaster in the weekly Bloomberg copper survey.
Explanation: A metric
ton is 2,205 pounds. At $2,400 per MT, that drives copper's price
below $1.10 per pound.
Eliminating Wires
For Lighting
(posted 11/18) A feature in the online edition of "Green
Intelligent Buildings" supplement to Engineered Systems (an HVAC
magazine) -- from a wireless lighting system supplier -- made some good
points. Here's a particularly telling section:
Imagine, if you will, the ability to eliminate home-runs, circuits,
panels, j-boxes, and time and installation costs. What does that do
to the first cost of building a new building?
Recent accounting examples demonstrated by the DOE state that if
done properly, it equates to a first-cost savings of 40%. Continuing
this train of thought, what if the need to rewire for moves, adds,
and changes disappears altogether — what’s that value equate to in
terms of costs? What’s that value equate to in terms of time and
savings?
The deep-dive realization that comes to mind in choosing a wireless
lighting control system is that wiring a building based on
traditional home-runs can be eliminated.
Bottom line: Reduced need for an electrician, at the beginning (in
constructing the building) -- and especially over time.
One Opinion On
Lighting Controls
(posted 11/17) Engineered Systems magazine (which is aimed at
HVAC engineers and the like) apparently had a Green Intelligent Buildings supplement in November. One
article was about "Accountegration" and intelligent lighting. Here
are a couple of key paragraphs that ought to tick off at least some
visitors to the EleBlog:
For many engineers and building owners,
integrating lighting control with the BAS has been a game of
chance with very poor odds. Those disappointing results are
supported by an industry survey that reveals less than 6% of
all BAS installations include control lighting.
The primary reason for these meager
results is fragmentation. Fragmentation in the field leads
to the growth of uncertainty in the design and bid process.
As the electrical contractors and BAS control contractors
developed their bids, they were unlikely to know in advance
which two systems would be awarded the contract. This
uncertainty, which normally fostered the best deal for
standalone systems, actually encouraged each participant to
add a risk premium to their price to cover integration
uncertainty costs.
AND, two paragraphs later (I've bolded the sticky
part)
Using the Accountegration methodology of
specification, the BAS control contractor chooses a lighting
control system proven to interoperate with the existing
equipment and includes that system in the bid, effectively
eliminating integration uncertainty. Likewise, the
electrical contractor develops his bid knowing that he is
clearly responsible for installing the lighting control
system and ensuring electrical power and connectivity to the
lighting. The designer can easily, confidently, and
clearly specify that the lighting control system is provided
by the BAS control contractor and is installed by the
electrical contractor. The owner gets an integrated EMS
that is sustainable and maximizes the return on their
investment.
SAVE THE DATE -
McCormick Conference 2009
April 22-25
LOCATION: Scottsdale, AZ.
Where You Can See Us Early 2009!
Planning ahead? Come to see us – we’re coming closer to you! Put the
dates below on your calendar:
1 –
We’ll be at the BICSI Winter Conference, Jan. 19-22 in Orlando, FL
You’ll find us in Booth #706. More info here.
2
– You’ll also find McCormick Systems at the Electric West show,
March 18-20 in Las Vegas. Go to Booth #300. Click here for more.
Don’t forget the McCormick Systems
User’s Conference, April 22-25 in Phoenix, AZ.
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