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					         Polyurethane Foam and EnergyStar Roof Coatings




Marketing Plan
   Texas
 Polyurethane Foam
 EnergyStar Roof Coatings
     Foam Insulation
       Written By:
   Lloyd Alex Gilmore




              1
                      Polyurethane Foam and EnergyStar Roof Coatings




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                                 Polyurethane Foam and EnergyStar Roof Coatings


                                  Index

Executive Summary                                                 5
Introduction
      Polyurethane Foam Roofing                                  7
      EnergyStar Roof Coatings                                   15
      Sprayed Polyurethane Foam Insulation                       25

Situational Analysis SPF & EnergyStar® Coatings
       Situational Environment                                   35
       Neutral Environment                                       37
       Competitor Environment                                    38
       Company Environment                                       41

Target Market                                                    41

Problems and Opportunities                                       41

Marketing Objectives and Goals                                   42

Marketing Strategy                                               42

Marketing Tactics                                                42

Implementation and Control                                       43

Summary                                                          44

Appendices                                                       45

References                                                       47




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                      Polyurethane Foam and EnergyStar Roof Coatings




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                                        Polyurethane Foam and EnergyStar Roof Coatings


                              Executive Summary
         Introduced in the 1960s as an alternative roofing material, Sprayed Polyurethane
Foam (SPF) was touted as golden boy for the roofing industry. Initially SPF received a
bad reputation due to several factors but mainly to installation error and not from the
product itself. Early on, it received minimal share of the market; up to 3% for several
years and then lost market share. Since early in the 1990s SPF has again made significant
gains in market share. This is due to manufacturers and organizations like BASF, Dow,
and SPFA (Sprayed Polyurethane Foam Association) instituting standards and
certification processes for applicators. Installing foam on roofs allows building owners to
repair, insulate, and structurally strengthen their building at a fraction of the cost of
reroofing. It also qualifies as a green building product since it reduces construction debris
in landfills and improves the energy efficiency of buildings it’s applied on. Compared to
other sectors of the industry, qualified contractors of polyurethane foam represent less
than three percent of all roofing contractors. In addition to roofing it can also be applied
to new construction homes and commercial buildings as an insulator, vapor barrier, and
an air permeance barrier. Since it is UV unstable, it requires an EnergyStar roof coating
to be applied as a UV protector when exposed to the suns rays.

        EnergyStar roof coatings was introduced to the roofing industry in the 1990s as a
way of restoring existing roofs that are sound (without structural damage) with existing
leaks and high energy cost due urban heat island effect. Being composed of Acrylic,
Urethane, or Rubber they can be installed on virtually every roofing system. Reflectivity
as high as 97% and comprising a sacrificial barrier to weather and sun damage, they
create a roofing system that saves energy cost and also provides a restorable system at a
fraction of the cost of re-roofs.

        Demand is expected to increase for many years. Attributing to this demand is: (1)
governmental regulations, (2) rising air-conditioning and heating cost, (3) California’s
Title 24, (4) flaws in and age of existing roofs, (5) tax laws, and (6) demand for increased
profitability for businesses.

        Entrance into the market is considered easy by business standards but out of reach
for approximately 90% of existing roofing contractors. Entrance into the market costs
range from $100k and up and require a different business structure than most roofing
companies currently posses. The main difference is the type of sales force needed;
consultative capable salesmen and not closers. Another factor to consider is qualified
applicators of polyurethane foam. Since it is a very specialized application, acquiring a
qualified applicator requires either recruiting or several years of training under the
tutelage of a qualified applicator, applicator training courses, and years of on the job
training. Considering these barriers of entry, upon successfully entering the market you
can expect higher than normal profits for the next seven to ten years; 40% gross margin
and higher. Polyurethane Foam and EnergyStar roof coatings can also expect an increase
in market share, currently 3%, as many existing roofing systems fail and energy efficient
systems are pushed to the for by savvy business owners and the federal government.



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                      Polyurethane Foam and EnergyStar Roof Coatings




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                                       Polyurethane Foam and EnergyStar Roof Coatings


                               Introduction
Polyurethane Foam Roofing
Sprayed Polyurethane Foam (SPF) was introduced as a low cost viable roofing system
and a high ―R‖ insulator in the 1960s. Weighing approximately .25 lbs per square foot,
low cost and ease of installation as compared to other roof restoration systems, and
installable over virtually every roofing system of its day foam was considered the golden
boy of the roofing and insulation industry. Unfortunately, because of the lack of
qualification standards from foam manufacturers and applicator error the industry
received a less than desirable reputation from its onset. According to the Spray Foam
Industry (SPI) the roofing industry in 1995 used 61 million pounds of SPF as compared
to 1990s total of 35 million pounds; a 70% increase in just five years (Knowles 1996).
Why the dramatic increase in demand. To understand this fully an examination of several
areas is required.

Urban Heat Islands

According to Mark Decot of the Department of Energy urban heat islands are created
when dark colored roofs and pavement raise the temperature of a city higher than the
surrounding country. These urban heat islands also cause many other problems such as
smog formation, high cooling cost, and human health cost due to the poor quality of air.
Another significant effect is when water is heated and then drained from roofs and
pavements it has disturbing effects on plant and animal life and creates mediums that
promote the growth of bacteria. Cool roofs (insulated and reflective coatings) could save
Los Angeles a total savings in energy (both indirect and direct), reduction of smog, and
human health would approximately amount to $171 million a year in 1996 dollars (Mark
Decot). When considering all the metropolitan areas in the US this estimate of energy
savings becomes very significant.

Energy Savings

Texas A&M University at College Station Texas conducted a study of SPF roofing on
more than eight million square feet of roofing resulting in the recouping of the cost of
application from energy reduction in three and a half years (Texas A&M). This is due to
the reduction of roof temperatures as high as 190 degrees, before the SPF and reflective
coating application, to about 10 degrees above ambient temperature. If the interior of the
building is maintained at 76 degrees its cooling equipment must overcome approximately
a 114 degrees. Thus by lowering the roof temperature by as much as 90 degrees the
amount of energy needed is significantly less. In addition, SPF also increases the over all
―R‖ factor of the building envelope. Many factors affect heat transfer from the exterior to
the interior of a building.

Patrick Downey’s article ―Energy Efficient Roof Design‖ in the May 1995 issue of the
Roof Consultants Institute’s Interface magazine, addressed the problems associated with
controlling interior temperatures by considering the factors involved in thermal transfer

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                                        Polyurethane Foam and EnergyStar Roof Coatings


from the exterior to the interior of commercial buildings (RCI Interface Magazine).
Avenues considered when evaluating energy-efficient roof systems were thermal
bridging, surface profile and color causing high and low albedo effects, radiation,
convection, conduction, thermal shock, thermal gain, and thermal loss. Downey also
offered the following observations and recommendations associated with SPF roofs.

    Insulation is more effective above the roof deck.
    Thermal bridging problems occur when insulation is not continuous (voids within
     the insulation).
    Moisture condensation can occur between joints of insulation.
    Increased insulation R-value is favored where energy costs are primarily for
     heating.
    Dark-colored roofs can have surface temperatures 90 degrees F higher than
     ambient temperature.
    High albedo (heat reflective) surfaces are favored where energy costs are
     primarily for cooling (RCI Interface Magazine).

On a typical hot summer day roofs dark colored membranes absorb radiant heat and the
surface temperature thus rises (Texas A&M). Fasteners and gaps in the insulation
conduct heat to the interior of the building via thermal bridges (thermal shorts). Insulation
effectiveness value is reduced between 11.5% to as much as 31.5%; depending on
thickness of insulation and number of fasteners (Interface Magazine May 1996). SPF
works in several ways to reduce energy cost as listed below:

    SPF roofing systems are installed above the roof deck. The insulation and roof
     system are the same.
    Thermal bridging is eliminated by the SPF since it provides a monolithic layer
     over thermal bridges in the roof assembly.
    SPF aged R value is approximately 6.0 per linear inch of foam.
    Typically SPF requires a reflective coating as a sacrificial barrier for the roofing
     system. When ambient temperatures are 90 degrees surface temperatures on these
     reflective coatings range between 110 and 130 degrees F. Comparing dark roofs
     and reflective roofs the surface temperature can be between 50 to 90 degrees
     higher on dark colored roofs.

Energy use in buildings is reduced due to SPF providing a continuous barrier against air
and moisture infiltration through air leakage. Dew point problems are also minimized and
as a result condensation within the building envelope is reduced. Lastly, heat movement
in all directions is restricted thus providing reliable performance under varying conditions
(Spray Foam 93). Polyurethane foam also saves energy in manufacturing cost over other
insulation materials.

A study conducted in 1991 by Franklin and Associates revealed polyurethane foam
insulation saved 39.4 trillion BTUs manufacturing energy costs over glass fiber insulation
in 1990 (Franklin Associates 1991). One trillion BTUs is almost equivalent to 179,000
barrels of oil. This constitutes 7 million barrels of oil or .12% of US total oil consumption



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                                       Polyurethane Foam and EnergyStar Roof Coatings


for 1990; a small but significant savings (Power Labs 1996). Since 1990 polyurethane
foam has increased in market share resulting in more significant energy savings.

Durability

30 years or more of durability from SPF roofing is indicated by research and performance
studies. Low maintenance, resistance to leaks from damage caused by hail, resistance to
damage from wind driven debris, resistance to high wind blow off, and structural strength
benefits make SPF roofing a wise choice for any building.

One such study was performed by Dr. Dean Kashiwagi of the Del E. Webb School of
Construction at Arizona State University on more than 30 SPF contractors and 1600 SPF
roofs installed since 1983. Results of this study show:

    97.6% do not leak
    93.3 % have less than 1% deterioration
    921 are not maintained

Since the oldest roof in this study was installed 26 years ago (from 1996) and the average
surveyed was 13 years old, Kashiwagi suggests SPF roofing can and should last well
beyond 30 years with scheduled maintenance (Kashiwagi 1996). Extending the roof life
cycle from 15 years to 30 years and more saves approximately $5.4 billion (1996 dollars)
and 160 million cubic feet of waste taken to US landfills. These numbers would eliminate
a 900 megawatt coal fired electrical plant; the amount of energy needed for 12 to 16
states (Mark Decot).

The summer and fall of 2005 brought significant roofing issues to the US Gulf and
Atlantic coastal cities from hurricanes. One such instance was from hurricane Katrina and
the Louisiana Super Dome. SPF roofing serviced the Super Dome from 1974 to 2000
without sustaining any leaks or blow offs. Succumbing to local pressure the roof was
partially removed and replaced with a white EPDM membrane. Recently, Brazos
Urethane was contracted to reinstall a SPF roof back on the Super Dome with the
installation being completed by August of 2006, just in time for its reopening for the start
of football season.
                                                                       Picture 1
                                                                       Louisiana
                                                                       Superdome
                                                                       after
                                                                       hurricane
                                                                       Katrina 2005.




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                                       Polyurethane Foam and EnergyStar Roof Coatings


In 2004 Florida was pummeled by two hurricanes named Charley and Ivan. Resulting
damage to existing roofs was significant with the exception of SPF roofing. The Roofing
Industry Committee on Weather Issues ―Hurricane Charley Ivan Report‖ findings show
SPF roofs received 10% or less damage from either wind uplift or flying debris damage.
This was primarily due to the monolithic fully adhered installation and moisture resistant
closed cell nature of SPF roofing. The picture below, picture 2, shows a SPF roof
installed over a modified bitumen roof comprising of 8288 square feet of roof on a
condominium related structure. After sustaining 130 – 140 mph winds from the east
damage was limited to 10%; due to wind uplift under the galvanized metal flashing used
as foam stop edge. Compared to a, picture 3, modified bitumen mechanically fastened
roof subjected to 130 – 140 mph winds from the east ending up as a total loss SPF is the
clear choice for high wind prone regions (RICOWI).

                                                                      Picture 2
                                                                      SPF Roof
                                                                      Fully Adhered




                                                                      Picture 3
                                                                      Modified Bitumen
                                                                      Mechanically Fastened




When damage is sustained moisture infiltration is not a concern. Due to the monolithic
nature of SPF debris damage can be repaired easily with a caulking gun and unless the
damage goes completely through the closed cell structure of SPF it will not leak. As
shown in picture 2, when wind uplift damage does occur and the resulting repair is kept
to a minimum.




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                                       Polyurethane Foam and EnergyStar Roof Coatings


Waste Stream

Dr. Kashiwagi’s research also showed at least 70% of SPF roofing is installed over
existing roof membranes. Since SPF is applied over the existing roof landfills will receive
less construction refuse. Application of the SPF roof system significantly lessened debris
created as compared to other roofing membranes. A typical 20,000 square foot SPF roof
installation will produce approximately one pickup load of waste consisting of plastic,
scrap foam, tape and up to four gallons of solvent of which can be easily reclaimed by
reasonably priced portable equipment (Kashiwagi 1996).

Renewable

SPF roofs typically do not need replacement at the end of their usable life. This is due to
only requiring a recoated and/or renewed reflective membrane; discussed further in the
EnergyStar Roof Coatings section. Once renewed, warranties range from 5 to 10 years,
however research shows SPF roofs are typically recoated every 8 to 15 years depending
on a variety of reasons including: thickness of coating, physical properties, weathering,
environment, and warranty requirements. Since it is very renewable it influences waste
stream totals (Energy Conservation and Thermal Envelope Design Using Polyurethane).

Environmental Impact

The total Equivalent Warming Impact (TEWI) of greenhouse gases is comprised of both
direct and indirect emissions on Global Warming. Energy consumption; caused by a
building product’s use and manufacture is called indirect emissions and the release of
greenhouse gases is called direct emissions. Carbon Dioxide contributed 55% of
greenhouse gases from 1980 to 1990 affecting the future of Global Warming. Conversely,
CFCs contributed 17%. Changing the blowing agent of SPF from CFC to HCFCs reduced
the contribution by fluorocarbon gases up to 92%. Attributing to the increase in
performance is:

    HFC emissions take 500 years for carbon dioxide to be purged from the
     atmosphere.
    HCFC emissions take 20 years to be purged from atmosphere.
     (Energy and Global Warming Impacts of CFC Alternative Technologies)

The longer it takes for gas to purge the worse it is for global warming potential.
Producing energy from the burning of fossil fuels forms large amounts of carbon dioxide
(electricity, fuel oil, natural gas, etc). SPF roofing save energy by reducing the amount of
fossil fuel burned to cool and heat buildings and thus reduces the amount of carbon
dioxide produced (direct emissions).




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                                        Polyurethane Foam and EnergyStar Roof Coatings


Installation

To alleviate failures that resulted in SPF’s undesirable reputation in the 60s, it requires a
highly trained professional to apply. Understanding of how temperature (ambient and
product), sprayed foam pass thickness, humidity, wind, A and B component ratio, and
delivery hose pressure ratio of A and B components is critical. The A component is
comprised of isocyanate and the B component is polyol resin. SPF is sprayed through a
mixing gun, attached by heater hoses to a spray foam reactor, onto the roof as liquids and
then expanding 20 to 30 times there original volume to create a monolithic roofing
system. Quality of surface texture and thickness is based on three principle factors:

    Proper equipment adjustment.
    Environmental effects (i.e., wind, temperature and humidity)
    Knowledgeable and skilled applicator.

Thickness: The thickness and correct application of each pass is dependent on the
metered output of the spray equipment and applicator skill level. SPF installation manual
states the following (NRCA):

    ―Optimum pass thickness should be from .5 to 1.5 inches (13 to 38 mm)‖.
    ―Single passes thicknesses greater than 1.5 inches (38 mm) are acceptable,
     provided special polyurethane foam formulations are used. However, the
     manufacturer’s recommended maximum pass thickness for the formulation being
     used should not be exceeded‖.

                                         Diagram 1




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                                        Polyurethane Foam and EnergyStar Roof Coatings


Humidity: SPF should not be applied under humid conditions when the roof deck’s
temperature is less than 5 degrees Fahrenheit (3 degrees Celsius) above the dew point, as
measured by a psychrometer. Moisture between the SPF roof and roof deck will occur
resulting in blisters if not observed.

Temperature Ambient: SPF should not be applied to a roof deck when the temperature
is below 50 degrees Fahrenheit (10 degrees Celsius) unless temperature sensitive foam
materials are supplied by the manufacturer. When temperatures are extreme, below 50
degrees Fahrenheit, or to hot, above 160 degrees Fahrenheit (roof surface temperature),
foam physical qualities of texture and adhesion will be seriously compromised.
Temperatures are to be measured by a pyrometer.

Temperature Component: Both A and B component must be kept, in the delivery hoses
from the foam reactor to the mixing gun, at manufacturers temperature requirements.
Failure to do so could affect foam physical qualities of texture and adhesion.

Wind: Wind adversely effects SPF in two ways: by over spray and by unacceptable
surface texture. In wind speeds of 12 mph or higher require a wind shield to be used to
avoid over spray and surface texture problems.

Ratio: The ratio between the A and B component of SPF roofing is critical to proper
installation. Delivery hose pressure must be equal and mixing gun properly adjusted for
correct ratio installation. If the A and B components are off ratio resulting in an excess
polyol (B resin) the resulting characteristics will be: slow or insufficient rise, soft or
spongy texture, pinhole or blow holes, improper cell structure, light in color, mottled, or
coarse surface. Contrariwise, if the excess is of the isocyanate (A) the condition will be
more difficult to detect unless it is very excessive and the following characteristics are
revealed: hard surface, dark color, irregular glassy cell structure, improper rise or yield,
improper density, smooth, irregular glassy cell structure, brittle, or friable. When the ratio
is off to the isocyanate but not manifesting the previous characteristics the result will be
not enough A component to complete the project (NRCA).

Mixing Gun Cleaning: Flush pot cleaning is applicators choice of methods in cleaning
the mixing gun. Proper techniques are a must when cleaning a gun thoroughly. The
following techniques are to be used for proper cleaning when using a flush pot.

    Clean one side of your gun at a time. (This requires a flush pot coupling with two
     manual valves).
    Clean the least viscous (thinnest side) first. This is usually the ―A‖ side.
    Clean the other side next.
    Open both valves and flush both sides.




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Polyurethane Foam and EnergyStar Roof Coatings


  Table 1




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                                       Polyurethane Foam and EnergyStar Roof Coatings


EnergyStar Roof Coatings
EnergyStar roof coatings (cool roofs) provide building owners and property managers an
effective way to reduce operating costs. It also improves energy efficiencies of all cooling
systems within the building envelope. Finally, it offers superior waterproofing system
that is unsurpassed by its durability and renewability which is less damaging to the
environment than any other roofing system with the exception of SPF roofing. In fact,
when combined with SPF roofing no roofing system is comparable.

A Cool Roof is a light colored roofing system that uses either titanium oxide or
aluminum oxide as its reflecting compound to prevent heat and damaging rays from
entering the building through the roof. The benefits it provides to the building are:

      Energy Conservation
      Renewability
      Life-Cycle Cost Savings
      Greater Comfort
      Building Maintenance Cost Reduction

There are over 400 different types of Reflective Roofing Coatings ranging from Polyurea,
Polyurethane, Acrylic, Asphalt, and Rubber. The reflectance abilities of each
EnergyStar® Certified Coating, where you will find initial reflectance ratings as high as
99%, are published at www.energystar.gov. United States Green Building Council, Cool
Roof Rating Council, Cool Communities & California Energy Commission, and the
Energy Star ® Program are agencies and organizations directly related to the regulation
of this segment of the roofing industry.




                                    About ENERGY STAR
                                    ENERGY STAR is a joint program of the U.S.
                                    Environmental Protection Agency and the U.S. Department
                                    of Energy helping us all save money and protect the
                                    environment through energy efficient products and
                                    practices.

                                    Results are already adding up. Americans, with the help of
                                    ENERGY STAR, saved enough energy in 2005 alone to
                                    avoid greenhouse gas emissions equivalent to those from 23
                                    million cars — all while saving $12 billion on their utility
                                    bills. (www.energystar.gov)




                                            15
     Polyurethane Foam and EnergyStar Roof Coatings



COOL ROOF RATING COUNCIL
The Cool Roof Rating Council (CRRC) is an
independent and non-biased organization that has
established a system for providing Building Code
Bodies, Energy Service Providers, Architects &
Specifiers, Property Owners and Community Planners
with accurate radiative property data on roof surfaces
that may improve the energy efficiency of buildings
while positively impacting our environment.
(www.coolroofs.org)


About USGBC
The U.S. Green Building Council (USGBC) is the
nation’s foremost coalition of leaders from every sector
of the building industry working to promote buildings
that are environmentally responsible, profitable and
healthy places to live and work. Their more than 6,400
member organizations and our network of more than 80
regional chapters are united to advance our mission of
transforming the building industry to sustainability.
Core Purpose
The U.S. Green Building Council's core purpose is to
transform the way buildings and communities are
designed, built and operated, enabling an
environmentally and socially responsible, healthy, and
prosperous environment that improves the quality of
life.
Guiding Principles
At USGBC, they take how to make their decisions as
seriously as the decisions themselves. Their Board of
Directors has articulated a set of guiding principles to
provide clarity and continuity in our decision making.
(www.usgbc.org)


Cool Communities Mission Statement:
"Our mission is to promote healthy and livable
communities by advocating urban heat island
mitigation using sustainable cost-effective strategies
for development, construction and existing structure
retro-fitting." (www.coolcommunities.org)




          16
                                              Polyurethane Foam and EnergyStar Roof Coatings


Cool Attributes

Cool roofing dramatically reduces the roof surface temperature as compared against
different roof membranes. Graph 1 below demonstrates different roof membrane
temperatures measured in Central Texas on a clear 90 degree Fahrenheit day. Reflective
acrylic coating systems reflect sunlight and release heat (emissivity) best where as dark
colored roofs and aluminum coatings do not fare so well. Roofing materials other than
cool roof coatings absorb and retain the sun’s energy so that the surface temperatures
reach as much as 200 degrees Fahrenheit.

                                               Graph 1

                                 Roof Surface Temperature
                  200
                                                                     199

                                                           178
                  160                         172
                                    162

                  120

                         110
                   80
                                     Ta
                          W




                                               G


                                                           Al


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                                                            um


                                                                         ac
                           hi



                                       r&



                                                   v
                             te




                                                                           k
                                                    an


                                                                 in
                                          G




                                                                             Si
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                                                      iz
                                            ra




                                                                               ng
                                                       ed
                                   ry



                                              ve




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                                                                        oa


                                                                                   Pl

         Roof Surface Material
                                                              ee


                                                                          t in


                                                                                       y
                                                                 l


                                                                              g




        (Cool Roof Systems)

By reducing the surface temperature of buildings roofs a subsequent savings will result in
several areas. One such area is electricity directly related to air conditioning of the
building; Scientist at the Lawrence Berkeley National Laboratory (LBNL), a research
facility for the U.S. Department of Energy, partnered with the U.S. Environmental
Protection Agency (EPA) and NASA’s Global Hydrology and Climate Center to quantify
the cost savings by reducing an area’s Urban Heat Island. LBNL findings demonstrate
since the 1930s, Los Angeles peak summer temperatures have risen about eight degrees
Fahrenheit due to commercial buildings, pavement, and homes that replace indigenous
vegetation. This replacement directly impacts air quality since smog in Los Angeles rises
approximately 3% with every degree rise above 70 degrees Fahrenheit. This requires
additional electricity to be generated by power plants that exhaust CO2 gas, which is a
major contributor to Global Warming.

Nationally, studies demonstrate widespread use of cool roofing technology could
potentially reduce as much as $1 Billion in direct energy usage cost and peak demand
charges. Peak energy demands are presently surpassing metropolitan electricity
production capacity in the U.S. Another significant savings by electrical production

                                                    17
                                           Polyurethane Foam and EnergyStar Roof Coatings


companies would result from the delay of investments needed in order to assemble new
power plants. Building owners would also benefit by the downsizing of their HVAC
systems due directly from lower temperatures in the building (Cool Roof Systems).
Graph 2 demonstrates the cool energy savings from different roofing membranes on a
50,000 square foot commercial building in four different cities.


                                             Graph 2
                                  Annual Energy Costs ($)

         120,000
         100,000                                                             Built Up
                                                                             Roofing
          80,000
          60,000                                                             Aluminum
                                                                             Coating
          40,000
          20,000                                                             White Acrylic
                                                                             Coating
               0
                   Sacremento     Tucson          Salt Lake   Philadelphia
                                                    City
                                           City


       (Cool Roof Systems)


Solar Reflectivity

Reflectivity simply put is measuring the percentage of the suns rays that is reflected away
from the buildings interior. According to the ASTM D-1918 ―Test Method for Measuring
Solar Reflectance of Horizontal and Low Slope Surfaces in the Field‖ involves using a
pyronometer: a device for measuring solar radiation, aiming it at the sun, then rotating it
180 degrees and aiming it at the roof surface. The ratio of reflected radiation to incident
or direct radiation is solar reflectance and is measured as a percentage. Coatings must
reflect all spectrums of solar radiation since not all energy from the emitted from the sun
is in the visible spectrum as indicated by Graph 3 below.

                                Reflectance Test (Picture 4)




                                                   18
                                       Polyurethane Foam and EnergyStar Roof Coatings


                                         Graph 3




   (Cool Roofing Jargon)

Additional methods of measuring solar reflectance are: (1) Test Method for Solar
Absorptance, Reflectance, and Transmittance of Materials Using Integrating Spheres,
taken from ASTM E-903 and (2) Standard Test Method for Determination of Solar
Reflectance near Ambient Temperature Using a Portable Solar Reflectometer, taken from
ASTM C-1549 (Cool Roofing Jargon).

ASTM E-903 method requires a delicate spectrophotometer to measure the amount of
reflected light from the sample. While the sample size required is relatively small, the
equipment needed is not suitable for field measurements. This requires a sample to be
taken and sent to the testing laboratory (Cool Roofing Jargon).

ASTM C-1549 method (previously know as the D&S method) uses a portable unit that
contains a light source and photocell array to create and measure the reflected light from
the sample. This method is widely used since the equipment is self contained,
lightweight, and portable (Cool Roofing Jargon).

On an added note, dark colored asphalt shingle roofs seem to degrade quicker than light
colored ones having the same orientation and exposure. Causing this are dark colors
absorbing more sunlight, specifically the infrared portion, which causes them to be hotter
(Cool Roofing Jargon). The same applies to dark colored flat roofs.

Another measure of solar reflectivity is emittance. It is described as the ―ratio of an
object’s radiance to that emitted by a black body radiator at the same temperature and at
the same wavelength.‖ Simply put it is the roofs ability to hold or release heat energy.
This is not the measure of a roofs surface ability to conduct heat into the building. As
described previously, thermal shorts are voids in the roofs insulations and metal fasteners
used to attach the roofs membrane.

                                            19
                                       Polyurethane Foam and EnergyStar Roof Coatings


As shown from above, there is two values needed, solar reflectance and emittance, to
determine the overall cool roof performance. ASTM has a method to capture both values
into a single coefficient called: ―Practice for Calculating Solar Reflectance Index of
Horizontal and Low Slope Opaque Surfaces,‖ E-1980. This method is simply a
mathematical formula, using the two experimentally attained coefficients, thermal
emittance and solar reflectance, to generate a single number called the ―Solar Reflectance
Index‖ (Cool Roofing Jargon).

These concepts will assist us in understanding ―Cool Roofing,‖ however there is a greater
value in realizing how these properties can affect roof durability and longevity.
Reflectance plays a critical role since the higher quality roofing materials used then all
spectrums of the solar radiation, both infrared (heat) and ultraviolet (destructive), is
prevented from harming your roofing membrane. Subsequently, it also assists the
building to operate more efficiently.

Performance

Roof coatings are much like the paint on your house, the more solids (polymers) per
gallon, the potential of durability, years, it possesses. Since the reflective property is
either Aluminum Oxide or Titanium Oxide, the higher percentage of the reflecting
element in the cool roof coating extended longevity will be experienced. This will be true
for both water and solvent based coatings. Solvent based coatings are a little more
forgiving, when being applied, than water based since they are a primer free coating but
they do not necessarily ensure better adhesion or weathering performance. The primary
qualities necessary for an acceptable roof coating are:

      Low Moisture Absorption.
      Good Flow Properties At All Suitable Application Temperatures.
      Quick Skinning and Short-Cure Properties.
      Good Weathering Properties with Minimal Surface Chalking.
      Good Adhesion Properties to Prepared Surfaces.
      Consistency/Viscosity Suitable For Spray Applications.
      Compatibility With Surfaces Over Which Coatings Are To Be Applied.
      Acceptable Heat Resistance.
      Algae/Fungus Resistance.(Dick Baxter)

Since there is an absence of standard qualitative test methods, the only way to ascertain
the best coating formulation for your application is by comparison; this will provide the
qualities suitable for your roof. For instance, one companies coating test results were
good weather ability, low moisture absorption, good flow properties, and good adhesion
but would not skin over in less than six hours. In the Gulf Coast region of the U.S. any
afternoon shower that comes along and rains will send the coating off the roof and into
the storm drains. Contrariwise if you are where it rains less than 15 inches a year, it
would be a good candidate. Acrylic based coatings have been determined to have
virtually all the desirable properties listed above and can be used for a base comparison.
Comparative testing will thus allow us to calculate how other coatings compare to an



                                            20
                                       Polyurethane Foam and EnergyStar Roof Coatings


optimum formulation. Each of the properties above will be described in the following
paragraphs.

Flow Properties are a determined visually. It is critical for a coating to have good
wetting out (flow) properties. When using a coarse bristle brush to apply coatings over
smooth metal substrates the better coatings flows or ―wet out‖ is needed to provide a
uniform surface. On the other hand, with less desirable wetting out properties, whether
applied by any method (brush, roller, spray), aesthetically pleasing finish will not be
experienced.

Skinning Over is the time required by a coating to cure so as to be unaffected by the
sprinkling of water on a freshly coated surface. Since impending weather will cause roof
maintenance to be delayed and possible coating damage, skinning over time becomes a
very important property. A skin time of thirty to forty five minutes is desirable or
coatings could be washed from a roof causing a major expense to the contractor by clean
up and recoating expenses plus environmental damage.

Short Cure properties are needed since foot traffic on the roof is needed for the
application of a second coat. This time needs to be between 18 and 24 hours so as to not
unduly delay the timeliness of the installation process.

Good Weathering Properties are evaluated after 90 days by using film samples exposed
to QUV in a weatherometer. Since the beginning thickness is known, ideally there will be
minimal erosion and chalking on the surface of the test panel following exposure.
Warning, weatherometer testing provides no validity to the potential longevity of the
coating; it only indicates that one coating potentially performs better than another.

Adhesion properties are qualitatively evaluated by applying a layer of coating to a
section of glass and then peeling the coating away. Since glass is a very smooth surface
superior coatings will need to be scraped off; on the other hand low quality coatings will
smudge from thumb pressure. Warning, typically acrylic-based coatings will not develop
their full adhesion properties for at least two days under optimum conditions. Thus it is
wise to wait up to seven days to allow a full cure to occur with the coating. Also, the
greater the depth of the coating the longer cure time is needed.

Viscosity is a property of cool coatings that needs to be considered when determining the
method of application. Two methods of choice are either (1) airless sprayer or (2) brush
and roller. Because of this property some coatings will dictate spray application and
others will require brush and roller. To test which method is needed a coatings of the
right viscosity will flow through the spray tip evenly and wet out to a uniform thickness.
Of course if the viscosity is low or if there is a risk of over spray because of high wind
then brush and roller will be the method of choice.

Heat Resistance is compared by placing samples of various coatings under infrared
lamps and raising the surface temperature up to 180 degrees Fahrenheit for seven days.
Surface cracking, discoloration, or heavy oxidation is considered unacceptable.



                                            21
                                         Polyurethane Foam and EnergyStar Roof Coatings


Algae and Fungus resistance is evaluated by placing coating samples in a warm water
bath for seven days then visually inspecting them for any indications of algae or fungus.

Installation

Critical to the bonding of cool roof coating is proper preparation of the substrate.
Additionally any surfaces contaminated with silicone (caulk etc) will never adhere any
coating until contaminates are eradicated from the surface. Pressure washing is the
cleaning method of choice by most of coatings manufacturers. Using a rotating head on
the pressure washer’s wand is the best method for cleaning. However, be warned, care
needs to be exercised when using a pressure washer since it can damage the substrate you
are coating. Do not spray directly into flaps, seams, or flashings as damage and water
inside the building may occur. Most times, a stiff bristle brush applying a strong
cleaning agent followed by a thorough flushing of water over the entire roof will be more
effective than pressure washing.

Since roofs come in many different surfaces, it is necessary to conduct a peel test in order
to determine whether the coating you choose will adhere to the substrate. Conducting a
peel test is done as follows:

       Prepare a sample area by cleaning it thoroughly.
       Apply an initial layer of the selected coating.
       Embed a strip of fabric (4 to 6 inches in length) with a tail of 4 inches exposed.
       Allow to cure for three days.
       Then pull the exposed tail of fabric straight up.

If the coating is effectively bonding to the surface of the roof, it will not pull away before
the fabric tail breaks or tears. If it fails try different cleaning methods, different coatings,
or different primers until the test results are positive.

TPOs: Installing acrylic based roof coatings over TPO roof membranes can be hazardous
to your business health unless extraordinary precautions are done, before applying the
coating, when preparing the surface. Even then most adhesives will not bond
satisfactorily to TPO surfaces. Tests indicate that even roughing up the surface with
sandpaper does not significantly improve the coatings ability to adhere. Primers are
available that will bond coatings, with a high degree of success, to a TPO membrane but
they will out gas a significant odor. The important point is: a little amount of testing will
save money and embarrassment in the long run (Dick Baxter).

APP-Modified Bitumen: Modified Bitumen roofs are applied either by torch down or
cold process by installing layers of roofing materials and glued together with asphalt or
tar with the top layer having mineral granules introduced or not. Most coatings have very
few problems adhering to a granulated mod bit roof but they will not always adhere to a
smooth surface mod bit roof. Solvent based asphalt aluminum roof coatings will typically
bond to either smooth or granulated mod bit roofs. If an acrylic based aluminum coating
is used care needs to be exercised since explosion hazards do exist. This will be discussed
further later in the paper under ―Asphalt-Based Aluminum.‖

                                              22
                                        Polyurethane Foam and EnergyStar Roof Coatings


Metal Roof Panels: Metal roof panels come in varying widths, designs, and types of
metal. They also come in different finishes: Kynar ® 500, Galvalume ®, or Enamel. In
addition the occurrence of rust requires consideration too. Kynar 500 is a Teflon®-based
paint that is applied to some metal roofing. Since not much will adhere to Teflon
significant surface preparation is required. This can be accomplished by sanding to
roughen the roof surface (Dick Baxter). Note: ER Systems has a product specifically
made to adhere to this finish called KynaKote. Galvalume® may have residual zinc in the
galvanized finish that will inhibit adherence to the metal panel so pickling the surface
with a mild acidic solution may be required. When rust is present on any of these surfaces
a rust arresting primer will be required for adhesion of an acrylic coating to occur.
However, when the cool roof coating is solvent based (Poly Urea, Polyurethane, and
Liquid White EPDM) priming may not be necessary.

Primers: Coating primers are necessary for inhibiting rust and for adhesion. Primers are
divided into three categories: (1) intended to inhibit the expansion of rust contamination,
(2) intended to facilitate adhesion to the roof’s surface, and (3) to accomplish both.
Primers purpose is to facilitate proper adhesion between the coating and roof surface.
This adhesion can be unsatisfactory due to rust or factory finish; thus the correct primer is
critical in the successful application and longevity of the cool roof coating. Epoxy based
primers are usually the most effective in both problems and also the most expensive
(Dick Baxter).

Asphalt-Based Aluminum: This type of roof coating must be judged by the quantity of
aluminum sulfate contained in each gallon. Because of the varying cost for this type of
coating the amount of aluminum will vary significantly and have a direct correlation
between the amount and price. Also true is the direct correlation between price and
longevity or performance. Note: It is not possible to have more than 2 pounds (0.9 kg) of
aluminum metal in suspension per gallon of coating. Container labels and data sheets
only indicate the amount of aluminum paste per gallon that is contained but it does not
indicate the amount of actual aluminum. Some interrogation with the manufacturer’s
technical representative will be required to determine the overall quality of the coating
(Dick Baxter).

Asphalt based coatings comprise of either solvent or water carriers. The solvent type is
essentially self priming and the surface only needs adequate cleaning (removal of dust
and debris) before application of the coating. Surfaces that will receive a water coating
are to be cleaned thoroughly and primed with an asphalt primer to ensure proper
adhesion. As mentioned earlier water-carrier aluminum roof coatings need to be treated
with caution since under certain conditions the aluminum metal and water contained (as a
carrier) coatings may be explosive (Dick Baxter). It is not a good idea to save partial
pales of this type of coating for the next contract. This is due to aluminum being a
hydrogen liberator and since water contains a significant amount of hydrogen; partial
containers will allow a harmful amount of hydrogen to build up in the cavity and there by
have explosive potential.

Maintenance: Today, reflective roofs are hot topics in the roofing industry. Initially they
can have as much as 93% reflectivity but will degrade from there as the life of the roof

                                             23
                                       Polyurethane Foam and EnergyStar Roof Coatings


progresses; all due to several factors. EnergyStar.gov website shows an initial reflectance
rating and also a reflectance rating after three years for every EnergyStar coating. A
footnote indicates the manufacturer can have the roof surface washed prior to taking the
three year measurement (www.energystar.gov). However, after much research, all
reflective coatings will loose approximately two to six percent reflectivity only, over
time, if cleaned on a regular basis. Contrariwise, many of the coatings indicate
reflectivity losses of 22% to 35% on the website; this is an unwashed rating. Reflectivity
degradation occurs from the build up of alluvia, dirt, pollution, and drainage conditions.
It is then recommended that roofs be washed at regular intervals such as every two to
three years to have its peak reflectivity and longevity.

Odor: Of all the reflective coatings present in the market acrylic coatings emit the least
offensive of odors during installation. However, the solvent based and polyurethane
coatings can give off a significantly strong odor. Caution will need to be exercised as to
when the coatings are applied and the location of fresh air induction ports. Educating the
buildings occupants as to the possibility of odors entering the building before the contract
commences would be prudent. In addition, placing obstructions over the air intakes, in
the general location of the work being done, will alleviate many odors from entering the
building.




                                            24
                                       Polyurethane Foam and EnergyStar Roof Coatings


Sprayed Polyurethane Foam Insulation
Sprayed Polyurethane Foam (SPF) was initially introduced into the construction industry
as a cheap and easy way to make buildings roofs watertight and add insulation to the
building envelope. Soon manufacturers also realized it could be used as an insulator on
the inside of structures such as Potato Cellars, Industrial Refrigerators and Freezers. Not
long after that savvy individuals realized SPF would make a superior form of insulation
for homes and buildings since it touted an R factor of 10 per inch initially and an aged R
factor of 6 to 6.5 per inch. By industry standards of R13 needed in the walls only two to
two and a half inches of foam would be required, however that was just the tip of the
iceberg when we consider the other benefits:

 Meets air barrier requirements                  Not damaged by water.
  without extra materials and work.               Controls airborne sound transfer.
 Perfect fit for irregular or hard to            No framing distortion.
  insulate spaces.                                No settling or sagging.
 Contains Ozone friendly materials.              Enhances structure shear value.
 Contains no formaldehyde.                       Will not leak water.
 No harmful emissions after                      Closed cell insulation.
  installation or drying.                         Reflects thermal conduction
 Not a source of food or mold.                    (U Value).
 Will not shrink or develop voids over           Constant R Value above and below
  time.                                            70 degrees Fahrenheit.
 Will not absorb water.                          Resist thermal currents in insulation.

                                          Table 2




                                            25
                                       Polyurethane Foam and EnergyStar Roof Coatings


Understanding the above benefits will be demonstrated further from the consideration of
how insulation and air barriers work to conserve energy usage. Note: (1) For the purpose
of this Plan SPF insulation is for new construction only and will be installed during the
insulation phase of construction, (2) The terms Home, Commercial Building, and
Structure are virtually the same when considering polyurethane foam insulation benefits.

Understanding Air Barriers

Buildings require the control of physical elements and the environment to operate
efficiently (energy) and have a long service life. They are comprised of heat flow, air
flow, and moisture flow plus solar and other radiation. Since air flow has significant
influence on heat and moisture it requires precise understanding. Moisture is carried into
buildings by air flow and because it impacts structural integrity and building materials
long-term performance it necessitates control (Understanding Air Barriers). Such control
is facilitated by air barriers.

Air barriers are the part of the building envelope system that separates each unit’s
conditioning space from others; controls air flow between conditioned space and
unconditioned space. It can also separate units in structures that contain multiple
dwellings and offices. Air barriers also define pressure boundaries of the structure
(Understanding Air Barriers). There are several approaches to facilitate air barriers.
Typical configurations are illustrated below:


                                   Air Barrier Systems


       Figure 1a                                             Figure 1b
       Single Family Detached                                Townhouse




       (Understanding Air Barriers)




                                             26
                                        Polyurethane Foam and EnergyStar Roof Coatings


       Figure 1c                                              Figure 1d
       Multi-Story Building                                   Office Space




       (Understanding Air Barriers)


       Figure 1e                                              Figure 1f
       Apartment Unit                                         Apartment Unit




       (Understanding Air Barriers)

Pressure differences are the physical force that facilitates the operation of the four flows;
heat flow, air flow, and moisture flow plus solar and other radiation. Typical systems
used to combat these flows are:

    Gypsum Board (drywall)
    Exterior Sheeting Material (plywood or OSB)
    Flexible Barriers (plastic or vinyl sheeting)



                                             27
                                        Polyurethane Foam and EnergyStar Roof Coatings


SPF can effectively replace all three and in addition eliminate the need for insulation.
Note: Gypsum Board, or drywall, will still be required to facilitate an aesthetic
appearance on the interior walls of the structure. SPF can be either externally applied
covering the structural elements of the building or internally within the cavities of the
structure’s envelope. Since correctly installed SPF is a closed cell structure it effectively
isolates outside air from inside air thus creating an air barrier and restricting the four
flows including the wind-washing effect. Air barrier systems should be:

    Impermeable to air flow.
    Continuous over the entire building enclosure or continuous over the enclosure of
     any given unit.
    Able to withstand the forces that may act on them during and after construction.
    Durable over the expected lifetime of the building.

As seen in figure 2, air leakage can occur in many places within a building. SPF will
create a complete sealed envelope within the whole building whether it is a house,
commercial building, or a metal frame metal building.


                                          Figure 2




           (Dik McGlaughlin)

"With the best insulating value per inch, along with its soundproofing and strength
benefits, foamed-in-place polyurethane insulation is an attractive alternative for
residential wall construction." Dik McGlaughlin




                                              28
                                                  Polyurethane Foam and EnergyStar Roof Coatings


When is an R-Value not an R-Value?

Insulation’s R-value is accepted as the standard of measure for a wall, ceiling, or floor’s
ability to contain heat in the winter and cool in the summer. It is in fact a fairy tale that is
not known for being as such. Actual performance of insulation is virtually impossible to
define with a single number. This makes it imperative that we know more than just a
single number. The term R-value has been perpetuated down through the years because it
obviously favors fiber insulation. If the fiber insulation was submersed in water or
exposed to a 20 mph wind its R-value would virtually go to zero (David B. South). Given
the same test SPF insulation (solid insulation) R-value would remain constant. Thus R-
value is a fictitious number that supposedly indicates a materials ability to resist heat loss.
To derive this number you take the ―k‖ value of a product and divide it into the number
one.

―K‖ value is determined by an ASTM test. This test was constructed by a committee to
give us the measurement values of something meaningful; hopefully. As indicated earlier,
a major part of this flawed test is the favoring of fiber insulations such as: fiberglass, rock
wool, and cellulose fiber and has very little input from solid insulation such as: foam
glass, cork, expanded polystyrene, or urethane foam. This is due to the test not taking into
account the movement of moisture (water vapor) or air (wind). Thus we see it does not
reflect real world conditions. Fiberglass insulation, based on this test, would have an R-
value of 3.5 per inch if tested with zero wind or zero moisture. Small amounts of
moisture or wind would in effect cause the R-value to drop as much as 50% or more
(David B. South). When you come right down to it fiberglass works better as a filter (on
air conditioner or heater) than as an insulator. Graph 4 below best describes R-value at
specific temperatures and zero wind.
                                           Graph 4
                                          R-Value vs Temperature
                                          For Loose-Fill Fiberglass

                               20
                               18
                               16
                               14
                     R-Value




                               12
                               10
                                8
                                6
                                4
                                2
                                0
                                    45F
                                     1      32F
                                             2      19F
                                                     3       9F
                                                             4        -4F
                                                                       5    -18F
                                                                              6
                                                    Tem perature


                  (David B. South)

Heat loss, or migration, in insulation is a little understood subject but needs to be covered
in order to better understand how SPF works and at what thickness is best since it has an
aged R-value of 6 to 6.5 per inch of thickness. Graph 5 shows that at one inch thickness
of SPF stops 70% of the heat loss and at two inches it increases to 90%. After two inches

                                                      29
                                                                    Polyurethane Foam and EnergyStar Roof Coatings


you get what is termed a ―Diminishing Rate of Return‖ because for each additional inch
the benefit reduces dramatically.
                                       Graph 5

                                                           Reduction in Overall Heat Loss


                                                 120

                                                 100

                          Percent of Heat Loss   80

                                                 60

                                                 40

                                                 20

                                                  0
                                                       1        2       3      4      5       6   7
                                                                     Inches of SPF Urethane


                       (David B. South)

Synopsis: Polyurethane foam prevents most heat loss with only a couple of inches (David B. South).

Since SPF is applied during the insulation phase of construction it has many other
benefits other than just as insulation. These are considered below:

Perfect fit for irregular or hard-to-insulate spaces: Since SPF is applied by spray
method it will encapsulate the cavity by becoming the exact shape of the cavity.

Contains no formaldehyde: Formaldehyde is not used to produce SPF unlike fiberglass,
either batts or blown in, and mineral wool.

No harmful emissions after installation or drying: Within minutes of application SPF
is completely dry and thus out gassing will cease.

Not a source for food for mold: SPF uses no water as a blowing agent or formulation of
the product; one of the agents essential for mold production. It also encapsulates and
seals the cavity virtually eliminating any air infiltration; another agent essential for mold
production.

SPF will not shrink over time: SPF expands some 20 to 30 times its original size; filling
the cavity and attaching itself to the walls of that cavity.

SPF will not absorb or leak water: Since it is petroleum based and has a closed cell
structure it virtually will not absorb or leak water through its structure.




                                                                         30
                                        Polyurethane Foam and EnergyStar Roof Coatings


SPF is not damaged by water: Since it is petroleum based and has a closed cell
structure it is virtually not damaged by water within its structure.

SPF controls airborne sound transfer: Since it has a closed cell structure sound finds it
very difficult to radiate through it.

SPF has no framing distortion: Since SPF is sprayed into a three walled cavity the
expansion pressure is relieved by the open side of the cavity. SPF cannot be used as a
retrofit for an existing structure unless the cavity it is being applied to is opened on one of
the four sides.

SPF will not settle or sag: SPF expands some 20 to 30 times its original size; filling the
cavity and attaching itself to the walls of that cavity virtually eliminating any sagging or
settling.

SPF adds shear value to structure: Since SPF fills the cavity, attaches itself to the walls
of the cavity, and becomes a rigid structure when applied at two inches and more it
provides excellent shear enhancement of the structure.

SPF resists thermal currents: Other forms of insulation posses a phenomenon called
thermal currents. Since other forms of insulation are not closed cell in structure thermal
currents, or air movement, results by convection within the insulated space. This does not
occur with SPF.


Description of Equipment Needed For SPF Applications
(Quoted from: http://www.sprayfoam.com/spps/ahpg.cfm?spgid=9)

They are:

      Proportioning Machines
      Spray Guns
      Heated Hoses
      Auxiliary Equipment
      Mobile Spray Rigs (Complete Unit)

Spray foam is applied using commercially available plural-component proportioning
equipment. It should be applied by trained, professional contractors. SPF can also be
applied using pre-packaged cans or larger pressurized bottles for smaller
applications.

The polyol resin and isocyanate material components are typically supplied in 55-
gallon drum sets. The materials must be shipped and stored according to specific
procedures. Once in use on the jobsite, they are transferred from 55-gallon drums to
the machine using special pumps called transfer pumps.
(Quoted from: http://www.sprayfoam.com/spps/ahpg.cfm?spgid=9)


                                              31
                                     Polyurethane Foam and EnergyStar Roof Coatings


Typical equipment used to apply SPF has two metering, or proportioning pumps (one
for each component) that heat and proportion the isocyanate and polyol resin through
heated hoses to the spray gun in a 1:1 ratio. The two materials are kept separate
through this entire system until they come together in the gun, where they are mixed
and spray applied to the substrate.


Proportioning machines come in all shapes and sizes from several manufacturers.
There are several major distinctions to consider when specifying and purchasing a
machine: type of drive system, output and pressure capacity, heating capacity, and
electrical system are the majors. Maximum and minimum hose lengths may be
affected by the choices made in these major component areas.

       Pump Drive System: The drive system is what forces the metering pumps to go
       up and down, or back and forth. The metering pumps are the pumps that
       proportion, or ratio, the materials and move them out through the machine
       and hoses to the gun. Most drive systems are pneumatically, electrically, or
       electric-hydraulically driven. Pneumatically driven machines are typically less
       expensive, but because air is compressible, hydraulic drives are considered to
       be of higher performance.

       Output & Pressure Rating: A machine’s output rating is a measurement of
       how much mixed foam the machine will dispense in any given time period.
       Output is typically classified in pounds per minute, gallons per minute, or
       kilograms per minute. The machine’s pressure rating is a measurement of how
       much pressure the machine will generate to mix the chemicals at the spray
       gun. Pressure is typically classified as pounds per square inch (psi.) or bars
       for metric pressure measurement. Keep in mind that equipment manufacturers
       often classify their machine’s maximum pressure rating as a static pressure.
       Operating pressure is often less than what is rated. It is important to make
       sure that your spray gun’s output and pressure ratings are matched to your
       machine.

       Heating Capacity: Most spray foams are commonly processed at 140°F-
       150°F. This temperature requirement is primarily to lower the viscosity of the
       liquid chemical components to assist in pumping and mixing. Often times the
       temperature of the material can affect spray pattern development and the
       physical properties of the finished foam product, so it is very important to
       assure the machines heating system is in good working order, and of enough
       capacity to keep up with the output of the machine.

       Electrical System: Most proportioning machines have heaters and control
       systems which require an electrical connection. Hydraulic machines use an
       electric motor to power the hydraulic drive system, which also requires
       electricity. Proportioning machines can typically be ordered by the
       (Quoted from: http://www.sprayfoam.com/spps/ahpg.cfm?spgid=9)

                                         32
                                      Polyurethane Foam and EnergyStar Roof Coatings


       manufacturer to operate anywhere in the world. Common electrical voltages
       are single-phase 220v, three-phase 220v and 380v. Know where your machine
       will be used and be sure it is compatible with the available electrical system.

Most every commercial Polyurethane Foam Spray Gun uses impingement-mixing
technology to mix the chemicals inside the gun. Pouring and injection applications
can incorporate a variety of different mixing technologies including static and
dynamic mix, however, in this section we will focus on spraying.

It is important to understand that once the two materials come together inside the gun
to mix, they begin to react immediately as they mix and exit the spray gun. If all of the
reacted material is not expelled from the gun once the trigger is released, the
material will set-up and harden inside the gun, rendering it non-usable. The design
function within the spray gun that assures this does not happen is called purging.
There are three basic purge systems offered by the various manufactures that offer
different degrees of advantages and disadvantages, mechanical purge, air purge and
solvent purge. Solvent purge is not that common in spraying foams as it is in coatings.

       Mechanical Purge: Mechanical purge serves two functions in a spray gun. A
       valving rod is set inside the mixing chamber of the gun. When the gun is not
       triggered, the valving rod remains static and closes of the two chemical ports.
       When the gun is triggered, the valving rod withdraws, opens up the two
       chemical ports to let the polyol resin and isocyanate materials into the gun to
       mix and spray. When the trigger is released, the rod comes forward closing off
       the two chemical ports and mechanically purges the remaining mixed material
       out of the gun.

       Air Purge: Air purge guns work similar to mechanical purge guns, except they
       purge the material from mixing chamber and gun block using a quick blast of
       air.

       Solvent Purge: Solvent purge is not that common and requires flushing of a
       cleaning solvent through the gun to neutralize the chemical reaction and the
       wash out the inside of the gun. This not favorable due to the fact that solvents
       cost additional money, they need to be properly disposed of (costing more
       money), and they can be harmful to the operators and the environment.


However, the most common SPF applications are in the construction market with
commercial roofing and perimeter wall insulation leading the pack. It is not always
practical to lift the machine and all its auxiliary components onto a roof or into a
residential home. For this reason, most SPF machines use several hundred feet of
hose to deliver the raw materials to the spray gun for applying to the remote roof or
wall surface. As mentioned previously, SPF needs to be heated to 140°F-150°F for
optimum processing. Heating the material is the job of the pre-heaters located on the
(Quoted from: http://www.sprayfoam.com/spps/ahpg.cfm?spgid=9)

                                           33
                                      Polyurethane Foam and EnergyStar Roof Coatings


proportioning machine. Heated hoses are used to maintain the chemicals at the
required temperature until they are mixed and applied with the spray gun.


In any given SPF application, you will typically find much more equipment and power
utilities in addition to the proportioning machine, spray gun and heated hoses. Many
different power tools are used to prepare the substrates and perform set-up,
operational and clean-up duties.

This auxiliary equipment, in addition to the proportioning machines need electrical
power to run and are typically powered by a mobile generator, unless power is
available at the jobsite or building facility. The generator needs to be sized to handle
the full load amperage draw of all jobsite equipment it is intended to power.

The transfer pumps that supply the material to the machines from the 55-gallon
drums are typically air driven and require a supply of compressed air to run. Most
every spray gun is air actuated, which requires yet more air. Pneumatic machines
also require compressed air in specific volumes to drive their pump drive systems. A
large capacity air compressor located on the jobsite or OEM facility typically
satisfies these air requirements.


Mobile Spray Rigs integrate all of the necessary tools and equipment needed for SPF
application into a turnkey trailer system. Most of these trailers are tag along style;
however, you will also see them integrated into a box truck style as well. The benefit
with a mobile spray rig is that all equipment is always set-up and stored in one place.
The power utilities are also included in the rig so you always have electrical power
and air.
(Quoted from: http://www.sprayfoam.com/spps/ahpg.cfm?spgid=9)




                                           34
                                                     Polyurethane Foam and EnergyStar Roof Coatings


                                        Situational Analysis
Situational Environment (SPF and EnergyStar® Roof Coatings)
Both the new construction and re-roof categories of the roofing industry demonstrate a
continual growth for the years of 2006 to 2012. Projections indicate no change in market
percentages between the re-roof versus new construction categories (Surveying the
Roofing Market). Currently the Texas roofing market for SPF and EnergyStar® (liquid
applied) is displayed in Graph 6 below.

                                                         Graph 6

                                            SPF and EnergyStar Roofing
                                          Texas Low Slope Re-Roof Market

                                46
           Value in Millions




                               45.5

                                45

                               44.5

                                44

                               43.5
                                      2006 2007
                                        1    2    2008
                                                    3    2009
                                                           4    2010 2011
                                                                  5    6    2012
                                                                              7
                                                         Year


       (Note: Statistical methodology is described in the Appendix)

However, an opportunity exists where capturing other markets in which the cost of SPF
and EnergyStar® roofing would cause the market price to become elastic as a less
expensive substitute. These are:

      APP Modified Bitumen
      Built Up Roofing Asphalt
      Built Up Roofing Coal Tar
      Built Up Roofing Cold Process
      CSPE Hypalon®
      EPDM
      Metal Structural
      Other Single Ply
      Poly Vinyl Chloride
      SBS Modified Bitumen
      TPO



                                                           35
                                                       Polyurethane Foam and EnergyStar Roof Coatings


Since there are over 400 coatings with an EnergyStar® rating and they have the ability to
renew and restore many low-slope roofing types available in the market, SPF and
EnergyStar® roofing is presented with the opportunity of a potential market
approximately 20 times its current one as illustrated below in Graph 7.

                                                        Graph 7

                                                Other Viable Markets
                                          Texas Low Slope Re-Roof Market

                               $805.00
                               $800.00
           Value in Millions




                               $795.00
                               $790.00
                               $785.00
                               $780.00
                               $775.00
                               $770.00
                                           1
                                         2006    2
                                                2007      3
                                                        2008      4
                                                                2009      5
                                                                        2010    6
                                                                               2011     7
                                                                                       2012
                                                                Years

        (Note: Statistical methodology is described in the Appendix)


Social and cultural factors influence the move in the industry to SPF and EnergyStar®
roof coatings. Growing demand for more environmentally friendly products and
processes of application have recently taken SPF from being an HFC blown polyurethane
foam to an HCFC blown foam; due to HFCs taking 500 years to be purged from the
atmosphere versus HCFC taking 20 years (Energy and Global Warming Impacts of CFC
Alternative Technologies). Additionally, SPF roofing reduces the amount of energy used
by commercial enterprises and requires less energy to manufacture than fiberglass
insulation (Franklin Associates 1991) resulting in less greenhouse gases released into the
atmosphere from electrical energy production plants (Power Labs 1996).

Demographics of the market contain all low-slope and no slope buildings of 2000 square
feet of roof deck and larger with either APP Modified Bitumen, all types Built Up
Roofing, CSPE Hypalon®, EPDM, Metal Structural or Architectural, all types of Single
Ply, Poly Vinyl Chloride, and TPO. In Texas this would include approximately 303,000
commercial buildings, as of the year 2002, requiring restoration or replacement over the
next 30 years (2002 Roofing Industry Economic Census). Also included would be steep
slope architectural and structural metal roofing since some of the EnergyStar® coatings
and SPF also posses the ability to restore them; this market is not reflected in the above
graphs. Finally, existing roofs with SPF and EnergyStar® roof coatings would be
included since this type of roofing is a renewable system requiring maintenance, cleaning
every three to five years and recoating every 5 to 12 years depending on physical forces
and original installation mils (installed thickness).

                                                           36
                                        Polyurethane Foam and EnergyStar Roof Coatings



Economic and Business conditions also influence the demand for these products. As the
cost of energy elevates, oil and natural gas, businesses are adjusting their business models
to reduce operating cost. Since Texas is one of the southern most states, businesses
domiciled there have energy costs that are mostly affected by the need for cooling. SPF
and EnergyStar® roofing materials both reflect heat and insulate the buildings, thus
providing significant reduction in the amount of energy required to combat the physical
forces subjected to them (Texas A&M). Additionally, both products posses tax
implications (discussed later).

SPF and EnergyStar® roof coatings market is basically homogeneous. The state of
technology is relatively stagnant since both have been in the roofing industry market for
many years and all the manufacturers’ products are similar in composition with minor
variations; SPF has variations as to density of the foam rated in pounds (weight) per
cubic foot and EnergyStar® roof coatings having a base composition of either
polyurethane, acrylic, of liquid rubber.

Politics, laws and industry regulations also favor these products (discussed later).

Neutral Environment (SPF and EnergyStar® Roof Coatings)
Financial Environment: Currently only Austin Energy offers low interest loans and
grant money for the retrofitting of buildings located in their service area. These include
lighting, windows and doors, insulation (including roof insulation) and reflective roofing.

Government Environment: In Texas there exist a current bill, SB 982, that would
require, before construction or any major renovation to State of Texas Government
Buildings begin, to be compliant to all energy reduction standards and such certification
be presented to the state of Texas Energy Conservation Office. Section 1331 of the
Energy Policy Act of 2005 179D provides a deduction with respects to energy efficient
commercial buildings. Several areas are cited as attaining this deduction but our concern
is of the building envelope deduction. The purpose of the deduction is to achieve a 50%
reduction in energy cost. Once qualified the maximum deduction is $1.80 per square foot.
Another federal government tax implication is a re-roof on a commercial building is a
capital improvement and requires amortization at a 39 year schedule; however reflective
coatings are a maintenance issue and are therefore expensed in the year it is realized
(Instructions Schedule C 2005). An argument can be made that SPF does not add value or
extend the life of the structure and could also be expensed in the same year but this is yet
to be determined.

Media & Special Interest Environment: Due to the manifestation of Global Warming,
both environments favor any process that is more environmentally friendly.




                                             37
                                       Polyurethane Foam and EnergyStar Roof Coatings


Competitor Environment (SPF and EnergyStar® Roof Coatings)
This type of roofing contains many competitors in the Texas. These are:

      All Quality Roofing
      Beldon Roofing
      Brazos Urethane
      Centimark Roofing Systems
      Mascon Inc.
      Milagro Reflective Coatings
      Texas Ceramic Coatings
      Texas Fifth Wall
      Thermal Guard Incorporated

Of these the internet only provides information concerning: All Quality Roofing, Beldon
Roofing, Boyd Inc., Centimark Roofing Systems, Dallas/Fort Worth Urethane Inc, and
Texas Fifth Wall.

All Quality Roofing: They are a 30 year old roofing company that is primarily involved
with installing polyurethane foam/gravel foam and modified bitumen membrane roofs. In
addition to focusing on the Texas market they are also involved with completing projects
at Guantanamo Bay, Cuba, Middle East, The Virgin Islands, Guam, and Guatemala for
the U.S. Government. Since they appear on the Austin Energy Commercial Rebate
Program Participating Companies List for Roofing Contractors their experience and
capitalization would be significant (Austin Energy Commercial Rebate Program
Participating Companies). The SPF and reflective coatings used by them is
undeterminable at this time. Another relevant point is their website mentions coatings and
foam installation services just briefly. More than likely they are using the direct sale
method via salesmen.

Boyd Inc.: Started in 1974, they are a commercial roofing company located in Mansfield
Texas. Their website provides some information about the company, specifically their
size. Operating currently from a 7500 square foot office and warehouse they have a full
compliment of equipment such as: roofing asphalt tankers which include 7.5 ton roofing
tankers, 6 ton roofing tankers, 37 ton roofing tankers and 50 ton storage tanker. Their
website, www.boydbonedry.com, provides information about jobs accomplished;
illustrating pictures of some jobs extraordinary in size. This reflects significant
capitalization abilities as well as expertise in the SPF and reflective coatings market.
Also, their website lists ER Systems as their only coatings and SPF supplier.

Brazos Urethane: Recently was the sole bidder of the Louisiana Superdome SPF roof
installation. Consisting of $35 million it was accomplished in record time; just in time for
their season opener in September 2006. Locating information was difficult since no
website exist. Completing the contract for millions it is reasonable to assume they are
capitalized very well.



                                            38
                                                      Polyurethane Foam and EnergyStar Roof Coatings


         Centimark: Being nation wide and definitely they are the industry leader in Texas in the
         commercial and industrial roofing industry. Being a publicly traded company, they are
         capitalized very well and boast a 5A1 Dun & Bradstreet credit rating with a net worth in
         excess of $88.1 million. Their website, www.centimark.com, boasts both SPF and
         reflective coatings. They also offer a full compliment of new and replacement roof
         systems that include: EPDM, PVC, Modified Bitumen, BUR, and Metal Roofing.

Edward B. Dunlap started D&B Laboratories in 1967 as a part-time industrial cleaning business in the basement of his
home. In 1968, with $1,000 seed money from D&B Laboratories and one associate, Dunlap started Northern Chemical
Company. This upstart building maintenance products and services business produced first year sales of $98,500.

In response to customer needs, Northern Chemical Company became involved in roof maintenance. In the 1970s, the oil
crisis negatively impacted the built-up roofing market that was dependent on crude oil for asphalt. The quality of asphalt
decreased as oil companies were pressed to extract as much oil from crude as possible and the price of asphalt
increased, resulting in higher roofing prices.

Concerned about the quality of bituminous materials used in built-up tar and asphalt roofs, CentiMark began marketing
and installing single-ply rubber (EPDM) roof systems. The newly developed EPDM polymer was both durable and
waterproof. It was a cost-effective and energy-efficient solution to the increasing costs associated with built-up roofing.
In the late 1970s and early 1980s, rubber polymer was one of the fastest-growing roofing products and accounted for
almost 40% of new and replacement roofs on commercial and industrial properties.

The company, with corporate headquarters in Pittsburgh, PA, grew through geographical expansion, diversification of
product line and an aggressive National Accounts Program. In 1987, the corporate name was officially changed to
CentiMark Corporation.

Each decade brought a new milestone: revenue of $1 million in 1974; $10 million in 1984 and $100 million in 1994. In
1991, CentiMark was the first roofing contractor to be rated 4A1 by Dun & Bradstreet based on a strong credit appraisal
and net worth.

In 2000, CentiMark became the first and only roofing contractor to achieve a 5A1 rating from Dun & Bradstreet based
on a strong credit appraisal and net worth in excess of $50 million.

By year 2003, revenues exceed $247 million. CentiMark, with 65 offices in the United States and Canada, is the largest
commercial roofing contractor in North America.

Moving into the 21st century, CentiMark continues to make strides in the roofing industry with strategic business
partnerships, relationships with group purchasing organizations and thousands of National Account customers.
CentiMark leads the roofing industry with comprehensive roofing portfolio databases and e-commerce and web-based
initiatives.

To better serve customers, CentiMark has always kept abreast of new trends and technologies. New CentiMark Roofing
Solutions include: single-ply EPDM, fleece-back TPO thermoplastic, copolymer rubber coatings, metal roofing and wall
panels, spray polyurethane foam and steep slope shingles. CentiMark is the only coast-to-coast provider of commercial
steep sloped shingles and the largest spray polyurethane foam roofing contractor in the United States.

In response to today's energy concerns, technological innovations and customer-demands, CentiMark is moving forward
with solutions for energy efficient roof systems to increase R values and reflectivity. Energy solutions include the
increased use of spray polyurethane foam, photovoltaic solar panels and environmentally safe, "green" roof solutions.
It's the near future -- not the distant future -- when we'll see rooftops doubling as urban gardens and grasslands or as
miniature electronic generating stations.                (Taken from http://www.centimark.com/aboutus/history/history.html)


                                                            39
                                        Polyurethane Foam and EnergyStar Roof Coatings


Dallas/Fort Worth Urethane Inc.: Organized by John Ewell and Bengy Hurd in 1986,
DFW Urethane installs SPF and reflective roof coatings. Between the two they have
installed over 1500 SPF roofs across the United States. Over the last seven years they
have also installed over 150 roofs consisting of about 2.5 million square feet of
elastomeric, acrylic, and urethane reflective coatings valued at about $5 million. Their
expertise is significant for installation, boasting a 97% customer satisfaction rating, and
their website promotes both SPF and reflective coatings which is better than other
company’s websites. This indicates they are very well capitalized and are only using the
direct sale method of advertising.

Francis Brothers Inc.: They are a SPF and reflective coatings installer located in
Amarillo Texas. Their website, www.francisbrosinc.com, has significantly more
information about the market than most and promotes them very well. Conklin is their
reflective coating manufacturer which, at the writing of this plan, has three coatings
registered at EnergyStar.gov website. Capitalization abilities were not determined at this
time.

Schmidt Roofing Services: Located in Beeville Texas and ran by Paul Schmidt, they
install both SPF and reflective coatings with Conklin products being cited on the website
www.schmidtroofingservices.com. Determining capitalization strength and other facets is
difficult to accomplish since their website has not been updated since November 2001.

Company Environment
Provider Construction was formed in 1979 by Drake Bellomy as a residential home
contractor. In 1988, after constructing over 800 homes, Provider began focusing on
insurance claims concerning damage assessments, repair, and reconstruction primarily
focusing in roofing. In 1992, Provider expanded its operations from primarily residential
construction to include, multifamily, homeowner associations, commercial, hotel/motel,
industrial, institutional, and churches. In 2005 they began to enter the SPF and Liquid
Applied roofing niche market.

Application expertise of both SPF and EnergyStar® roof coatings has not been attained
yet; either by training or acquisition of qualified installers. This places the niche market
outside their core competency. Some training from one of their suppliers of reflective
coatings, APOC, has been received on a 400 square roof but this was limited to the
application on an ―R‖ panel roof with an acrylic coating.

Currently Provider Construction has several suppliers for reflective coatings with the use
of products from only one; APOC. The others are: Topps, ER Systems, Karnack, and
UCSC. These suppliers provide varying products for different application: Polyurea,
Polyurethane, Acrylic, and Liquefied Rubber.

Provider Construction has a better than average reputation with their clients for a roofing
company. They receive many referrals from previous clients which consist of about 1%
of their new business. Over 80% of their new business is directly related to Yellow Page
advertising.

                                             40
                                        Polyurethane Foam and EnergyStar Roof Coatings


Provider Construction’s Strengths:

      Established Roofing Contractor
      Standing Seam Installation
      Single-Ply PVC Installation
      Composition Shingle Installation
      Capitalization
      Storm Restoration
      Sales (Closer)
      Licensed Contractor In Multiple States

Provider Construction’s Weaknesses:

      Lack Of Consultative Sales Experience
      Lack Of a Qualified SPF Applicator
      Lack Of Business Plan
      Lack Of Dedicated Sales Force to the Market
      Lack Of Marketing Plan Compliance



                              Target Market
Texas is the second largest state in size and fourth largest in the roofing industry revenue
generation in the union with over 300,000 commercial buildings 2000 square feet of floor
space and up. With the exception of standing seam metal and PVC roofing, new roofs
have 10 to 15 years of usable life before replacement or major repairs are needed.
Considering the amount of viable contractors in the market and the market size, the
market is not being satisfied and above average profits potential is available for the next
three to ten years.

SPF and EnergyStar® roof coatings can be applied to virtually any existing roofing
system. These include: Modified Bitumen, all types Built up Roofing, CSPE Hypalon®,
EPDM, Metal Structural or Architectural, all types of Single Ply, Poly Vinyl Chloride,
and TPO. These types of roofs vary in usable life of 10 to 30 years with either a reroof or
a recoat needed at the end of that period.


               Problems and Opportunities
SPF requires significant skill for a quality and successful installation. This creates
difficulties in finding and acquiring qualified applicators. It also causes significant
difficulty with applicators in training successfully completing the training.

With the large amount of commercial buildings and small amount contractors installing
SPF and EnergyStar® coatings domiciled in Texas, any entrants into this market would
be considered a first mover; this would only apply until a savvy contractor developed

                                              41
                                        Polyurethane Foam and EnergyStar Roof Coatings


strategies to acquire a large share of the market. An opportunity of securing and holding a
large segment of this market presents itself for as short as three months to up to three
years. This is due to current advertising and sales strategies being conducted by the
contractors in the market; non existent. Of course this can change rapidly since others
may already be pursuing strategies of similar nature.


          Marketing Objectives and Goals
Ten percent of the existing market, (SPF and Liquid Applied) and cross over market
(Mod Bit, EPDM, Structural and Architectural Metal, BUR, PVC, Hypalon, Etc…) of the
SPF and EnergyStar® roof coatings market entrance is a the three to five year goal.
Initially the first goal is to within the first year secure 1/2 percent of the existing market
plus training and certification of applicators. In addition, locating and training adequate
sales force to meet the above sales goals.


                         Marketing Strategy
Each category (SPF, EnergyStar®, and Foam Insulation) will have essentially the same
strategy; Market of One and Product Differentiation strategy. This will consist of: (1)
Sales Force, (2) Internet Based advertising, (3) Direct Mail advertising, (4) Outdoor
Advertising, and (5) Yellow Pages. These five areas will form Provider Construction’s
Marketing Communication.


                          Marketing Tactics
To achieve a Market of One the following tactics will be followed. Illustrated below is
how each area will follow the strategy.

Sales Force: Divided into two groups consisting of: (1) Appointment setters via of the
telephone and (2) Sales persons via direct contact. Appointment setters will solicit over
the phone commercial enterprises with 2000 and more square feet to determine if they
posses roofing issues. Once roofing issues are identified, they will determine, if possible,
what type of roof the commercial enterprise possesses and then hand off the contact and
information to the direct salesman. The direct salesman will not only pursue leads
provided by the appointment setters but will also cold call prospective business identified
by scouting their assigned territory. Specific Marketing Communication concerning each
type of roof found in the market will be developed by the Marketing Department and will
follow a need satisfaction theme. To effectively follow a Market of One strategy it is
essential to only communicate information concerning their roof type and problem. Also,
this type of sell is a consultative sale requiring relationships to be formed with the
building owner and may take several months to close.

Internet Based: This will be conducted by both a website and web based searching of
potential contracts. An optimized and functional website is to be developed. Optimization

                                             42
                                       Polyurethane Foam and EnergyStar Roof Coatings


will enhance a search engine based solicitation. Functionality of the website is essential
and this will be accomplished on the three click method with many forms of PDF’s of
Provider Constructions print based Marketing Communication. Additionally, the
Marketing Department will register with websites of the following enterprises purchasing
departments:

       State Offices
       Cities Offices
       County Offices
       School Districts
       Federal Government
       Custom Home Builders (insulation)
       Roofing Contractors (not entered the market)
       Other Large Organizations

Direct Mail: This will be facilitated by mailing directly to building owners with
Marketing Communication that is request from the website or from mailing lists. A
database of such will be developed for either the phone solicitors or the direct salesmen
to follow up.

Outdoor Advertising: This consists of vehicle signage, yard signs, and the use of
billboards.

Yellow Pages: This will be used on a limited basis in large metropolitan areas.

Note: Five databases will be developed to continue relationship development. First a
master contact database containing all the commercial buildings in Texas 2000 square
feet and up. Second a database with all the names of the first list that has been contacted
with any information acquired by either the phone solicitors or direct salesmen. Third a
database of all contacts made that requested marketing communication indicating which
types. Fourth will be a database of all contacts made by the direct salesmen and resulting
information gained. Fifth a database of all sales made for maintaining marketing
communication for maintenance and recoats at the end of the roofs service life.


              Implementation and Control
Implementation will follow the following sequence:

   1.   Form a marketing department.
   2.   Research and write the marketing plan.
   3.   Develop marketing communication.
   4.   Develop strategies for the sales force and identify hydrogenous type of salesman.
   5.   Hire and train salesman, telephone solicitors, and qualified applicators.
   6.   Start campaign.




                                            43
                                        Polyurethane Foam and EnergyStar Roof Coatings


Each member of the sales force will maintain a contact and activity log with a minimum
of 40 initial contacts plus 100 cultivation contacts per week for the salesmen and 1500
contacts a week for telephone solicitors. In addition, each week the phone solicitor will
develop 30 viable leads. Each week on Monday and Wednesday a sales meeting will be
conducted for 30 minutes to get feedback, report status of sales, and provide additional
training. Both the salesmen and phone solicitors will not miss in excess of two meetings a
month.

The marketing department will develop spreadsheets to benchmark each application
project. These will set inventory levels, to be verified, for each quarter phase of the
project to ensure product is being applied at correct thicknesses.



                                   Summary
Presently all three niche markets are extremely viable; SPF roofing, Reflective Coatings,
and Foam Insulation. Rises in the price of energy and the populations attitude toward
environmentally friendly products is causing both homeowners and commercial building
owners to find alternative, energy efficient, building products. With relatively few
companies in the market above average profits will be realized for the next five years or
more.

Lower energy expenditures are the most significant driving force behind this market. A
large number of markets in the U.S. economy are in the mature stage of the product life
cycle. Since this demands a strategy of low price leader reduction of fixed operating cost
is necessary to realize normal profits for businesses. All three niche markets will satisfy
this need.

SPF roofing, Reflective Coatings, and Foam insulation installation have, by business
standards, relatively few barriers to entry. Capitalization is minimal but out of reach to
approximately 90% of all roofing contractors. The most significant barrier to entry is
qualified applicators since spraying polyurethane foam requires significant expertise and
training.




                                             44
                                       Polyurethane Foam and EnergyStar Roof Coatings


                                   Appendix
Statistical Methodology

2006-2012 Re-Roofing Market Projections:
Baseline sales data is derived for the years of 2002 and back. For the purpose of this
Marketing Plan only the state of Texas is considered and provides us with the total value
of the Roofing Market in Texas for the year 2002 (2002 Roofing Industry Economic
Census). The areas of the Texas re-roofing market that is a direct market for SPF and
EnergyStar® roof coatings are:

    Liquid Applied
    Sprayed Polyurethane Foam

The areas of the Texas re-roofing market that is an indirect market, possible capture, for
SPF and EnergyStar® roof coatings are:

      APP Modified Bitumen
      Built Up Roofing Asphalt
      Built Up Roofing Coal Tar
      Built Up Roofing Cold Process
      CSPE Hypalon®
      EPDM
      Metal Structural
      Other Single Ply
      Poly Vinyl Chloride
      SBS Modified Bitumen
      TPO

A survey, conducted by the NRCA, of roofing contractors percentages devoted to each
category of the roofing industry and broken into to ―New Construction‖ and ―Re-Roof‖
divisions gives us our percentages to be applied to projected values of each category of
the re-roofing market (Surveying the Roofing Market). All statistics given in this
category are to be considered 80% reliable and in no way precise.




                                            45
                      Polyurethane Foam and EnergyStar Roof Coatings




Intentionally Blank



                          46
                                     Polyurethane Foam and EnergyStar Roof Coatings


                                References
   1996 Roofing Contractors/Systems Performance Information, Dr. Dean Kashiwagi.
    Ph.D. P.E.
   2002 Roofing Industry Economic Census, U.S. Census Bureau, U.S. Department of
    Commerce, Issue December 2004
   Austin Energy Commercial Rebate Program Participating Companies List for
    Roofing Contractors, October 18, 2006,
    http://www.austinenergy.com/energy%20efficiency/programs/rebates/commercial/co
    mmercial%20energy/participatingCompanies.pdf
   Comparative Energy Evaluation of Plastic Products and Their Alternatives for the
    Building and Construction and Transportation Industries, Final Report 1991 prepared
    for The Society of the Plastics Industry by Franklin Associates, L.T.D.
   Cool Roofing Jargon, William A. Kirn, RRC, September 2004.
   Cool Roof Systems, National Coatings, August 22, 2006,
    http//:www.nationalcoatings.com
   Energy and Global Warming Impacts of CFC Alternative Technologies, Executive
    Summary, 1991, Alternative Fluorocarbons Environmental Acceptability Study, U.S.
    Department of Energy.
   Energy Conservation and Thermal Envelope Design Using Polyurethane. Spray
    Polyurethane Foam Mason Knowles. Assistant Director: SPUSPFD, presented at
    NCSA Construction Materials and Technology Institute 1996 University of
    California, Berkeley California.
   Energy Efficient Roof Design, Patrick Downey President of Merik Inc, RCI Interface
    Magazine May 1995.
   Factors Affecting the Field Performance of Spray Applied Thermal Insulating Foams,
    presented at Spray Foam 93 by M. Bomberg, Ph.D. P.E. and R. Alumbaugh, Ph.D.
    P.E.
   Field Study On Whole House Air Infiltration, 1997, Dik McGlaughlin. August 12,
    2006, http://www.spray-foam.com/questions.html
   Instructions Schedule C 2005, IRS, Page C-5, Line 22, October 18, 2006,
    http://www.irs.gov/pub/irs-pdf/i1040sc.pdf#search='Schedule%20C%20instructions'
   NRCA Sprayed Polyurethane Foam Based Roofing Manual, 2003.
   Power Labs Oil Consumption Chart 1996,
    http://powerlab.fsb.hr/OsnoveEnergetike/1999/bpstat/tables/oilcon2.htm
   ―R‖ Fairy Tale: The Myth of Insulation Values, David B. South, October 16, 2006,
    http://www.monolithic.com/plan_design/rfairy/index.html
   RICOWI Roofing Industry Committee On Weather Issues ―Hurricane Charley Ivan
    Report‖ March 1996.
   Roof Coatings For Better or Worse, Dick Baxter, May 2006
    http//:www.professionalroofing.net
   SPF as a Green Building Material, Mason Knowles Assistant Director, SPYSPFD,
    presented at University of Florida’s Green Building Material Conference, June 1996.
   Surveying the Roofing Market, Carl Good, Professional Roofing Magazine, NRCA,
    August 12, 2006, http://www.nrca.net

                                          47
                                     Polyurethane Foam and EnergyStar Roof Coatings


   Texas A&M’s SPF Roofing Experience presented at Spray Foam 94 by Sam Cohen,
    P.E. Physical Plant Department, Texas A&M University.
   Thermal Conductivity in Mechanically Fastened Roof Systems, Mike Watts CST.
    CDT. Interface Magazine May 1996 issue.
   Understanding Air Barriers, Building Science Corporation 2005, Joseph Lstiburek,
    Ph.D., P.Eng.
   Urban Heat Islands, Mark Decot, Department of Energy, presented at Oak Ridged
    National Laboratories, Sustainable Low Slope Workshop, Oak Ridge Tennessee,
    October 1996.




                                         48