What’s News  
In Florida, Impact Codes  
Stir Debate  
hen you think “impact glaz-  
ing,” one state comes to  
mind—Florida. And with  
Insulated units that have to run through  
autoclaves cost $23 per square foot.  
good reason.  
Florida has long been ground  
zero for devastating storms such as  
Hurricane Andrew in 1992. Because  
of that, it’s also ground zero for strict  
coastal building codes that mandate  
the use of impact-resistant fenes-  
tration products. And last June, the  
requirements got even stricter.  
modification to the Florida  
Building Code that took effect then  
mandated much more stringent  
impact requirements that will have  
a major effect on door and window  
manufacturers and dealers doing  
business in Florida. At the same  
time, it also greatly increased the  
thermal efficiency requirements.  
According to the recently released  
AAMA 2015/2016 Study of the U.S.  
Market for Windows, Doors and  
Skylights, Florida represents 68 per- state. This provides opportunity for have included renovations as well,  
cent of the total U.S. market for resi- vinyl windows. Also, much publicity a concern for many in the industry.  
dential impact windows.  
around the change has helped, and  
The practical effect of RECA with-  
So how has last year’s code change now homeowners expect energy effi- drawing its declaratory statement is  
affected the market in the Sunshine ciency with their impact windows. that Palm Beach, Broward and Dade  
State as hurricane season gets under- Today, they can have both.”  
counties will not require insulated  
way? Depends on who you ask. However, there’s been a lot of impact windows in a home if the proj-  
According to Amy Rahn, the mar- confusion surrounding the energy ect costs less than 30 percent of the  
keting director for Tampa’s New South requirements of the new code with home’s value, according to a report  
Window Solutions, it’s meant that alu- regard to impact windows, especially from WPTV in West Palm Beach. While  
minum monolithic windows in high- for renovations.  
big manufacturers such as PGT have  
wind zones now face much stiffer  
In October 2015, Frank LaPete developed insulating impact win-  
of the Responsible Energy Codes dows, retrofitting insulating glass onto  
The aluminum monolithic win- Alliance (RECA) withdrew the petition impact units had proven troublesome  
dow has dominated the Florida for a declaratory statement he filed and costly for many installers in South  
window market for years, especial- with the Florida Building Commission Florida.  
ly for impact windows,” says Rahn. in July of that year. RECA sought a  
“When you have insulating glass,  
This is true for both residential and determination that all replacement the proper way to do it is the break-  
multi-family. Now, the aluminum fenestration in existing buildings away layer and the insulating gap face  
monolithic window cannot compete must comply with U-factor and SHGC the exterior side,” says Josh Boyarsky  
on the energy front and no longer requirements consistent with the of Florida Impact Door Systems in  
meets code in the majority of the Florida Building Code. This would West Palm Beach. “But that now  
Door & Window Market  
means your impact layer is inside the direct sunlight, there’s no need to opportunity to continue growing our  
house and the tempered breakaway make home owners pay for such pre- profitability faster than the growth in  
layer is on the outside of the house. It mium glass.”  
means with every sale, we have to ask  
our end-markets,” The filing reads.  
“We believe that our focus on opera-  
tional excellence will result in the con-  
the client if they want us to do it inten- FINANCIAL  
tionally backwards or not, because Jeld-Wen IPO Brings Strengths— tinued expansion of our profit margin  
now a piece of chewing gum thrown and Challenges—to Light  
and free cash flow as we systematical-  
When Jeld-Wen filed its initial pub- ly transform our business.”  
Currently, 60 percent of Jeld-Wen’s  
too hard could break your glass. The  
whole thing’s been a mess.”  
lic offering (IPO) with the Securities  
The cost of the glass is prohibitive and Exchange Commission on June net revenues are in North America,  
as well.  
1, the filing offered insights into the 29 percent in Europe and 11 percent  
“I can get standard impact glass at future growth plans of this global man- in Australasia. For North America,  
10-$12 per square foot,” Boyarsky ufacturer (see related story, page 8). here’s how it breaks down by product  
says. “Insulated units that have to “We are in the early stages of imple- type: doors (57 percent); windows (33  
run through autoclaves cost $23 per menting our business transformation  
square foot. If your door doesn’t have and, as a result, we believe we have an  
continued on page 14  
Fenestration Canada Has WinDoor on its Mind  
Planning for the revitalized WinDoor promise a much more robust website  
North America trade show was a for the event. When it eventually goes  
major focus for Fenestration Canada’s live, windoorshow.ca will feature exten-  
annual general meeting, held in Mont sive information about the show and an  
Tremblant, Quebec in early June.  
online registration form.  
In February, show organizers  
Changes to the WinDoor schedule  
announced that the 2016 event will be include a possible pub crawl around Old  
held in Montreal for the first time after Montreal after the show’s first day and  
a long run in Toronto. WinDoor also is a social event on the show floor after  
under new management. Zzeem Inc. is the close of the second day. It would  
taking over operations.  
be similar to those at major European  
A major goal of the new WinDoor is trade shows such as Fensterbau, which  
to push exhibitors to bring new prod- feature live music and plenty of food  
ucts. Attracting more machinery com- and drink.  
panies will be another big focus. Both  
are departures from the past.  
“We want everybody to stay togeth- to attract more small and mid-sized  
er and network for as long as possible,” fabricators to the organization.  
It’s important for people to real- said LaBelle.  
Geography is an issue. Canada’s huge  
ize it’s a new show,” said Stephane  
That spirit of staying close and size might be preventing a lot of com-  
LaBelle of Groupe Eugenie, who serves socializing would extend to the planned panies from participating. But it’s also  
on Fenestration Canada’s WinDoor educational sessions, which organiz- a plus. As one attendee noted, “you  
ers hope to schedule earlier in the can talk to a fabricator who’s 3,000  
Other topics discussed included more day to encourage attendees to hang kilometers away, somebody you’ll never  
engagement with dealers, contract gla- around the exhibition hall and visit compete directly against, and you can  
ziers and remodelers via educational more booths.  
learn what they do.”  
Earlier, Fenestration Canada’s mem- yy➤ Check windoorshow.ca for more  
Fenestration Canada and Zzeem also bership committee met to discuss ways show updates.  
June/July 2016  
WCONThINaUEtD ’s News  
percent); and other (10 percent). 52 acquisition of complementary door filing does state, “our indebtedness  
percent of its revenue comes from the and window manufacturers in new could adversely affect our financial  
residential remodeling segment.  
geographies as well as providers of flexibility and competitive posi-  
All this growth, which includes new product lines and value-added ser- tion We are a highly leveraged  
product development, will require vices. While this has not been a major company. As of March 26, 2016, we  
the hiring of additional personnel. In focus in recent years, we expect it to had $1,246.1 million of term loans  
fact, according to the filing, the com- be a key element in our long-term outstanding …”  
pany has hired more than 20 engi- growth.”  
Other potential impacts include  
neers “who will work closely with our But with growth comes challeng- raw material costs of commodities  
expanded group of product line man- es, and the door and window maker including vinyl extrusions, glass, alu-  
agers to identify unmet market needs highlights these for potential inves- minum, wood, steel, plastics, fiber-  
and develop new products.”  
tors. This includes changes in build- glass and other composites. “Changes  
All those products need to be mar- ing codes (including Energy Star stan- in the underlying prices of these com-  
keted, and the IPO states there are dards) that could increase the cost modities have a direct impact on the  
plans for that as well. “We recently of its products, as well as domestic costs of products sold.”  
began to make meaningful invest- and foreign governmental regulations  
When disclosing the company’s  
ments in new marketing initiatives to that could increase the costs of busi- consolidated financial results, net rev-  
enhance the positioning of the Jeld- ness operations. Environmental regu- enues decreased $126.1 million or 3.6  
Wen family of brands.”  
While the company has made sev-  
lations come into play as well. percent in the year ended December  
“We may be subject to significant 31, 2015. The company attributes this  
eral acquisitions in the past few years, compliance costs with respect to to an unfavorable foreign exchange  
it says there is still potential growth in legislative and regulatory proposals impact of 8 percent. However, net  
new markets and geographies.  
to restrict emission of greenhouse revenues in North America increased  
We believe there are opportunities gases,” reads the IPO. $26.1 million, or 1.3 percent, to  
Also, when outlining the risks, the $2.015.7 billion.  
to expand our company through the  
Cardinal to Open New Facility in Arizona  
Cardinal IG Co. will build a new first quarter of 2017 and another 50 ity to the customer base were also key  
00,000-square-foot manufacturing by 2019. He says a majority of those drivers in the decision to set up shop  
facility in Buckeye, Ariz., where it hires will be local.  
in Buckeye.  
will fabricate insulating glass for the  
southwest region.  
“This is a wonderful day for the City  
of Buckeye and its residents, because ning its senior staff, and from there,  
The facility is in the process of plan-  
It will be Cardinal Glass Industries’ it delivers new jobs right here into our employees for production and other  
tenth standalone insulating glass divi- community,” says mayor Jackie Meck. departments will be hired. Those  
sion location and the parent com- In 2015, the city became the first employees will then be sent to other  
pany’s 37th manufacturing facility. in Arizona to opt out of the collection operating Cardinal IG facilities for train-  
Cardinal also produces float, coated, of municipal sales tax for manufac- ing during the new plant’s construction.  
custom tempered and laminated glass. turing operations, something Meck  
As part of its economic develop-  
There’s been a void in the and Watson say helped draw Cardinal ment agreement with Cardinal, the  
Southwest market for high-quali- to the area. In early February, Meck city will purchase approximately ten  
ty insulating glass for quite some began working with councilmembers, acres of its site for a regional water  
time,” says Cardinal IG plant manager city management and staff to bring campus. The city purchased key water  
Clayton Watson. “We’ve had the U.S. Cardinal to the city.  
pretty well covered other than this “We wanted a good, solid available  
infrastructure in the area last year.  
The purchase sale agreement for  
region. We’ve wanted a factory out workforce, and this city brought that,” the water campus and development  
here, and demand became so strong says Watson. “We were also on a fast agreement were approved Tuesday  
that it finally warranted we open one.” track to get operations up and running, at a Buckeye City Council meeting.  
Watson says the facility aims to and they worked very close with us to They will become legally binding once  
hire approximately 100 employees by keep pace with the project’s goals.”  
Cardinal IG Co. completes the pur-  
the time it is fully operational in the  
He adds that elevation and proxim- chase by the end of July 2016.  
Door & Window Market