Annual Insulation Industry Assessment Survey Shows Steady Growth

The recently completed 2000 Insulation Industry Assessment shows that in 1999 the industry experienced a 4.7 percent growth increase over the previous year. This figure is based on data collected from NIA members in an industry-wide survey by Industry Insights, a research company based in Columbus, Ohio. The assessment was based on insulation and accessory manufacturers sales only.

Assessing the industry on an annual basis was initiated in 1998 by the Foundation for Education, Training and Industry Advancement as a way to benchmark the performance of the program. Foundation has over 80 investors contributing to the strategic marketing initiatives and programs designed to build awareness of the mechanical insulation industry-if awareness is raised, the insulation industry has a better platform for growth. The survey, which is strictly confidential, is one way to measure growth.

Definitions for Reporting

Industrial insulation products are defined as batt, blanket, board, block wrap, and shaped (pipe covering, curved segments, etc.) products manufactured from fibrous glass, ceramic wool, mineral wool, calcium silicate, perlite, cellular glass, polyurethane/polyisocyanurate, polystyrene phenolic foam, cellular rubbers and elastomerics.

Mechanical systems include all piping systems, process equipment boilers, chillers, HVAC systems and exterior ductwork (but excluding interior duct lining, tanks, spheres and storage vessels).

Industrial insulation product sales include any/all accessory products when sold as an integral part of the manufactured products (i.e: ASJ and other facing on blanket, board or pipe covering. Metal building is excluded for the purpose of this survey.)

Insulation accessories was defined as all manufacturers' direct sales to distributors, fabricators (including removable pad fabricators), contractors, and owners of the following product categories: adhesives, fabrics/reinforcing membranes, fasteners, insulation cements, jacketing/facing, lagging, mastics, rigid fitting/pipe jacketing, sealants, tapes, wire/strapping/banding.

Manufacturers' OEM sales and other insulation product manufacturers for resale as integral parts of their products were not included.

Foundation Awareness Building -Ready for Benchmarking

We're two years into the Foundation campaign and many of the bigger initiatives which will lead to growth are now being implemented. For instance…

• Foundation investors have given Insulation Outlook magazine the financial support it needs to become a "trade" magazine targeting 20,000 energy users and specifiers in key markets. The editorial is now purposely focused on educating key audiences on the value and technical merits of our products. As Insulation Outlook grows in its circulation so does the opportunity for a new and better understanding of the value of insulated systems.
• Foundation investors have helped fund www.insulation.org. It soon will be an independent insulation industry resource for many kinds of information on insulated systems.
• Foundation investors have embraced the Certified Industrial Energy Appraisal Program. After the first trial class, students, monitors and program developers are excited about the potential business it can bring to the companies that have certified appraisers on staff.
• Foundation investors have made it possible for NIA to take a leading role in the Department of Energy's (DOE) Steam Best Practices Program. The more we participate with DOE, the more recognition our industry receives for being a cost-effective, and practical solution to energy and environmental issues in a manufacturing environment.

Programs like these and others in development are helping to redefine the mechanical insulation industry. As an association we're working to upgrade the image and professionalism of the insulation industry by providing members with professional tools and programs that they can use to increase the professionalism and growth within their own organizations.

Assessment Will Continue - How Does Your Investment Measure Up?

There is no question that Foundation is working to benefit NIA. NIA has more value to offer members than ever before. And NIA is also positioning itself to be of value to the energy and environmental management community, whether it be government organizations, energy managers, plant and facility managers or maintenance engineers.

It's up to you as members to take advantage of the Foundation programs and make them work for you.