Although I worked for a small, very regional, paint manufacturing company, Pennsbury Coatings, it was decided that I should participate in that meeting. Continue reading 30 Years of AWWA ACE Conventions→
We’ve talked before about the meaning of value and what that looks like to us at Induron. But I really think it’s a topic worth revisiting, especially since we want to be the best value provider for coatings in our market.
Today, everybody seems to want to do more with less. We have the ability to communicate almost instantaneously. So is it realistic for us to call on design professionals we want to work with and provide each one with valuable information? Continue reading Be a Resource, not a Peddler to Add Value→
Back in the 1990s, I taught a Junior Achievement class to eighth graders at Tarrant Middle School, here in the Birmingham area. This was not the “project” many people associate with Junior Achievement, but an actual 50-minute class once a week for an entire semester with curricula offered by Junior Achievement. The regular Social Studies teacher remained in the classroom to help, but it was truly a “teaching experience” for me.
Tarrant is a “working class,” mixed-race suburb of Birmingham, and my classes consisted of boys, girls, black, white, motivated, not-motivated kids, just as you would expect. Some were from single-parent homes and some were from homes with both mom and dad. But many of them hadn’t had the advantages that other kids their age have had.
I started teaching this class not knowing what to expect, but soon found that most of these kids were bright, inquisitive and really interested in economics and “home business” (how I described balancing a checkbook, creating and sticking to a budget, paying taxes and getting and keeping a job). Continue reading The Learning Curve→
I’ve always enjoyed the challenge of selling and feel that every job has some sales aspect – even if it’s just selling yourself to your boss. A teacher is selling education, a minister is selling religion, a politician is selling… well, you get my point.
I started out my sales career thinking all it took to be a good salesman was to treat your customer like you would like to be treated – the “Golden Rule” of sales. Then one day, it dawned on me that Customer Service was a big part of selling. So I started putting more emphasis on Customer Service.
Recently, I talked to a potential new customer about how great Induron’s customer service was. I felt I had made a strong presentation, but it didn’t convince the customer to switch.
Shortly after that I read an article from Alister & Paine entitled, “Do You Need a Customer Service “Spring Cleaning?” It came as a big surprise when I realized that I had at least three of the five bad customer service habits described in the article. It was a good reminder that even people who have been in this business a long time can always make improvements.
For example, probably my greatest fault during my years in sales has been that I worry too much. I worry about not getting orders shipped on time or my customer blaming our products for a failure that wasn’t our fault. This article made me realize that spending more time solving a customer’s problems – rather than worrying about things I can’t control – will make me more productive.
More than 40 years ago, I went to work for my father, who had just started Pennsbury Coatings Corporation, a small, family-owned coatings manufacturing company. Work was different then – no fax machines, no internet, no cell phones (some of us refer to them as “the good ol’ days”). We did business on land lines and through the Post Office. We also refined the art of the sales call. Back then, a contract was simply a hand shake.
Five years ago, I found myself unemployed and began looking for a company that represented what my father’s company stood for: a company that did what it promised, provided reliable and cutting-edge products, treated its customers like valued friends and offered its customers help if they needed it.
Induron Protective Coatings is a small, family-owned business that has allowed me to thrive in an environment that trusts its employees to work for the betterment of the company, as well as the industries that it serves. We try very hard to keep all the promises we make and never make a promise we can’t keep. It is a philosophy that serves us well. Continue reading Corporate Values – Do they still have a place in today’s business environment?→
Our Core Values here at Induron are Integrity, Respect, RELIABILTY and Innovation. I was reminded of the least referenced one of these while reading this article in “Chemical Processing.”
As industrial paint manufacturers, we are considered part of the chemical industry, not only by ourselves, but also by the U.S. government. This article begins with the statement, “Reliability improvement remains imperative for chemical makers,” and mentions two of our biggest suppliers – Air Products and Chemicals and Dow Chemicals.
At Induron, we regularly report our Cycle Count (read more about Cycle Count here), which is an internal measure of doing things correctly time after time. More accurately put, it’s a measure of reliability. We consistently score in the 0.15 – 0.25 range (the lower the better), which by all accounts is an industry outlier.
This article talks about how Air Products and Dow have both taken an inward-looking metric and turned it inside out. This places their focus more on their customers than just their internal processes, and puts reliability at the forefront.
Two comments by Wilbur Mok, Air Products vice president of North American tonnage gases, that I particularly appreciated are, “We took the best operating practices and shared them globally. So now we operate each plant the same way.” This led to Air Products “freeing up site teams to spend more time on higher value tasks, such as preventative maintenance, improvement projects and troubleshooting.” Continue reading Impacting Reliability→
Induron is proud to have received the Award of Distinction as a Top 25 Customer for 2012 by Southeastern Freight Lines. This award is an acknowledgement of the amount of products shipped in 2012, which was a very good year for Induron.
But to me, what’s more important than this award is that we, as a company, get to do business with another company that shares our values. At the bottom of the award, it says, “For loyalty, character and integrity in the spirit of true partnership.” This is similar to Induron’s core values: “integrity, respect, reliability and innovation.” Continue reading Partners in Values→
I recently read an article in a coatings publication and came across the term “sustainability.” It’s quickly become a buzzword in industry – and even in personal – life. But just what does it mean?
One definition of sustainability, written about 25 years ago, is, “meeting the needs of the present generation without compromising the ability of future generations to meet their needs.” Today, it has been defined as, “providing the best for people and the environment, both now and in the indefinite future.
So how can a small business contribute to sustainability without drastically affecting how it does business? One way is to look closely at how you package your products.
For example, many of our products are packaged in metal drums. Years ago, Induron chose to utilize reconditioned drums instead of new ones for our packaging. The number of reconditioned, rather than new, drums we purchased last year resulted in 115 tons of greenhouse gas (CHG) emissions NOT being released to the atmosphere. That’s more significant than most might imagine – energy “avoidance” through re-use!
This simple example demonstrates that it may not require large sacrifices to your particular process or program to contribute to “sustainability.” Just think about your current process, recognizing opportunities that could incorporate the re-use of a raw material or package in that process. Go Green!
I recently read an article entitled, “Authentic Selling: Be An Advisor”, by Marc Corsini. This article really struck a chord with me, as it represents the notion that I have always felt was the overriding philosophy here at Induron Protective Coatings. That philosophy being, that we work as “advisors” for our clients, not just “salespeople.” The Authentic Selling acronym is as follows:
Last week, I spoke about the importance of cycle count in terms of efficiency. Our numbers are consistently low, and that’s something we are especially proud of around here.
The final numbers are in, and I can say that annually, our cycle count has been at .25 or less since 2007. That’s 5 years running. So how did we get and keep our numbers so low?
I can sum it up in one word: communication.
Our paint is made great by three teams: Paint Makers in our production department, the technical folks in the lab and quality control. Internally, these departments have a genuine respect for each other’s work. They have trusted relationships that allow for feedback. Continue reading What Cycle Count Says About Teamwork→
This is a NEW ADDITION providing SIGNIFICANT IMPACT on the tower to ENHANCE SERVICE LIFE.
While fixing foundations maintains what’s already there, applying Induraguard 9200 is like adding a fresh layer. It’s a new addition. The process needs to be done on a larger scale, so it’s important enough to be closely looked at by the Public Utilities Commission (PUC). With the huge U.S. electrical grid that can rust over time, the importance is clear. When this helps a structure stay useful for much longer and costs much less than getting a new one, it’s a real benefit for ratepayers.
WHY are you hearing this now?
The recent FERC ruling outlined the specific requirements for obtaining CapEx treatment when revitalizing towers.
FERC (Federal Energy Regulatory Commission) Update Enables Capitalization of T&D Coatings Initiatives
Formerly, utility companies could include replacement costs for transmission towers and poles in their capitalization, but corrosion control for these assets was excluded. A groundbreaking shift introduced by the Federal Energy Regulatory Commission now allows utility providers to categorize corrosion control programs (coating programs) for transmission structures as a “significant addition,” thereby enabling them to capitalize these expenses for accounting purposes. This alteration is poised to significantly impact the condition of the nation’s aging electric utility infrastructure.
On February 22, 2022, the Federal Energy Regulatory Commission (FERC) approved a utility company’s proposal to classify their tower coating programs as “substantial additions.” The order (1) clarifies, “The Commission has previously permitted utilities to consider the addition of minor property items that were previously absent as substantial additions and to capitalize the related costs when such costs extend the useful life, operational capacity, or efficiency of the associated retirement units.” Utility companies are now authorized to capitalize on the costs linked with corrosion control. This change aligns with generally accepted accounting principles (GAAP) and offers various financial advantages, including a more balanced assets-to-liabilities ratio and reduced income fluctuations.
In numerous instances, corrosion control solutions such as coatings have been repeatedly applied to structures, demonstrating anticipated performance and proven outcomes. Corrosion control coating programs, such as Induraguard 9200, possess the capacity to effectively prolong the service life of structures indefinitely.
HOW is this possible?
PG&E successfully presented a rate case supporting their proposal, citing examples of Southern Company and other utilities employing similar CapEx treatment. The PUC specified certain documentation requirements, but in the end, they granted the CapEx treatment as long as those requirements were met.
“Why should the ratepayer or the environment be asked to bear the cost of a new tower when coatings can be used to keep the one we already have operating indefinitely at a much lower cost?”
In PG&E’s success rate case proposal, FERC highlighted that comparable accommodations have been extended to prominent utilities such as Georgia Power and Southern California Edison. This ruling established a much-needed precedent and framework for other utilities to make the case that they have a responsible coatings program. Such programs can significantly enhance existing structures and potentially extend their operational lifespan by two decades or beyond.
The Tower Is Revitalized
Once the integrity of the galvanizing is compromised, the tower’s initial environmental protection is ineffective. However, the structural integrity remains intact. Implementing a new protective measure will ensure its preservation.
The application of Induraguard 9200 involves installing it on energized towers, typically at a rate of 1-2 towers per day for standard sizes.
Results In Monetary and Environmental Savings
Using Induraguard 9200 to restore a tower costs much less than replacing the whole tower – less than a tenth of the cost. It achieves the same goal while significantly reducing the need for procurement, engineering, and other human resources.
The environmental impact of mining, fabricating, shipping, and installing a new tower is drastically more detrimental compared to the environmental impact of prolonging the use of existing infrastructure.
Achieves An Indefinite Service Life
These structures, composed of steel and reinforced concrete, possess an indefinite design life if we manage environmental deterioration. This means there is no predetermined limit on the amount of value and serviceability after the initial installation at the ratepayer’s expense.
By implementing future applications of Induraguard 9200, the potential utilization timeframe for the structure becomes limitless. This becomes especially significant due to the existing strain on constructing new power infrastructure. It underscores the fact that we cannot simultaneously construct all the required new facilities and overhaul the current grid.
Revitalization Is Now A Capital Expense
The utilization of Induron’s Induraguard 9200 as a protective coating has gained recognition as a Capital Expense by both FERC and Public Utilities Commissions across the United States. This acknowledgment enables the potential cost of installing a replacement tower to come off of ratepayers while permitting the utilization of CapEx funds for this undertaking.
The Replacement Tower Is Now A Capital Expense
Once the existing tower has reached the end of its serviceable lifespan, the cycle starts over — thorough planning, procurement efforts, and assessment for a rate case to install a new replacement tower that is incredibly expensive and potentially disruptive to critical power transmission. This will be classified as a Capital Expense, thereby falling within the responsibility of the ratepayers again.
The Tower Corrodes And Needs Replacement
As the galvanizing layer diminishes, corrosion sets in, initiating the deterioration of the asset itself. This progression leads to visible corrosion and a reduction in structural integrity, ultimately necessitating the replacement of the entire structure.
Maintenance is classified as an O&M expense
Maintenance activities for the tower are categorized under Operations & Maintenance expenditures. Given that the asset was acquired using CapEx funds from ratepayers, the mentality of operation-to-failure takes hold. The objective then shifts to maximizing the asset’s operational lifespan before allocating further CapEx funds for its replacement.
The Tower Needs Maintenance
Over the tower’s lifespan, regular maintenance tasks are performed. Bolts are periodically replaced, foundations undergo repairs, and in some instances, structural elements are swapped out. However, it’s important to note that these routine maintenance activities do not mitigate the gradual degradation of the galvanizing layer, which ultimately leads to corrosion and, ultimately, the failure of the entire structure over time.
The Tower Is Built
The need for a new power transmission line is assessed, followed by meticulous planning, procurement of materials, and installation. The newly constructed tower is fortified with a protective layer of zinc, commonly referred to as galvanizing, which can have a lifespan of 20 to 50 years, contingent upon its quality, quantity, and service environment. This is financed through Capital Expenditure (Capex) funding, thereby distributing the financial responsibility to ratepayers through their imposed rates.