Access Rush

March 1, 2005
Thanks to the Will Ferrell, Luke Wilson, Vince Vaughn comedy Old School, the trend these days is starting your own fraternity. Anyone can do it and you

Thanks to the Will Ferrell, Luke Wilson, Vince Vaughn comedy “Old School,” the trend these days is starting your own fraternity. Anyone can do it and you don't have to be a student. Just get some people together with common interests and goals, and voila, you've got a fraternity. With all the training and specialized knowledge required to rent and sell scaffolding it does seem like a special group, and Cleveland-based Waco Scaffolding president Marty Coughlin equates it to just that.

“This industry is almost like a fraternity in that salesmen tend to stay in the business and may change companies for a variety of reasons,” Coughlin explains. “Most salesmen start their career on a sales counter and work their way up in the business under the watchful eye of the branch manager or sales manager. Before he goes outside he gets some formal training in scaffold applications, scaffold safety and scaffold erection.”

So why not create a real frat for all the specially trained people who make up the scaffolding rental niche — salespeople, counter personnel, contractors and their employees? If the scaffolding industry was actually a fraternity, it might be called Sigma Pi Kappa Epsilon (ΣΠKE) or Spike, for short. No hazing would be tolerated of course, since safety is the name of game in the scaffolding world, but partaking of a fine brew or two is certainly not discouraged.

Why rent scaffolding?

For starters, scaffolding is among the top 10 rental products in terms of return on investment of all rental items, according to Chuck Hutchinson, vice president of sales and marketing for Archbold, Ohio-based Bil-Jax, which is strictly a manufacturer of scaffold equipment.

“When asked to list their top 10 rentals in terms of ROI, rental companies typically rank scaffolding in the top 5 to 10,” Hutchinson says. “It's not a very sexy product because it's been around for a long time, but it does offer an excellent ROI.” Additionally, scaffolding doesn't require a lot of maintenance, which contributes to its high ROI and, if properly maintained, some scaffolding can last 10 to 15 years or more.

Because many rental companies want to keep equipment in excellent-looking condition, they may choose to replace it after about three years on rent or sooner if it starts to show wear and tear. Often, Hutchinson says, the rental company can sell it for the same price it paid for the equipment originally.

“It's a rewarding and satisfying product line to carry,” says John Miller, president and chief operating officer of Upper Marlboro, Md.-based Millstone Corp., which rents, sells and leases scaffolding and shoring equipment. Miller is also president elect of the Scaffolding Industry Association. “When I started in this business, I used to say that scaffolding was a nickel and dime business, but at the end of the day there were a lot of nickels and dimes.”

Scaffolding and other access equipment are popular rental items because most contractors have a need for it at some point, making it a lucrative addition to most rental fleets. Small contractors typically need scaffolding for only a few days or weeks at a time and may not have the resources to maintain or store it when not in use, making it inefficient for them to purchase it. Larger contractors with consistent project volumes may find it more economical to own their own equipment, however that leaves them with the responsibility of all maintenance, repairs and updates, which can be a big risk if not managed well, according to Liz Callahan, vice president of Power Climber, a division of SafeWorks LLC, Seattle.

Basic scaffolding doesn't require much of a capital investment. Most rental businesses could get started with anywhere from a few hundred to a few thousand dollars.

“Someone who wants to get started could begin with an interior rolling scaffold, which is used only indoors, and then expand their fleet to include basic rolling towers, and finally expand to frame scaffolding, adding more frames and accessories as they go along,” says Hutchinson.

Since scaffolding is a specialized rental niche, rental business employees will need to be trained in several areas, including familiarizing themselves with specific OSHA codes and the types of scaffolding your company will rent. Employees should understand the differences in the many types of access equipment and their applications and load limits.

“Scaffolding can be an attractive business for the well-prepared company that can drive the margins needed to manage risk professionally,” says Callahan, whose company has been in the access business for more than 30 years. Sister company, Spider, started as a manufacturer more than 55 years ago and now has a rental presence in 25 markets across North America.

Pre-planning — a necessity

In the planning stages of an access equipment rental the counter or salesperson should be prepared to ask several questions such as: What is the task you are trying to complete? What areas do you need access to? Are there any obstructions on the ground or in the air that you must get around? How many people will be working on the scaffolding? How high does it need to be? How long will you need it? How long will it be erected?

“For customers who call in to the counter, the sophisticated user or professional contractor usually has a good idea of the material he needs, but you still need to ensure that you ask all the right questions, determine that competent and trained people will be doing the erection and dismantling of the scaffold and that they are renting or own all the safety equipment such as guard rails, access, toe boards, etc., that are needed to erect a safe scaffold,” says Coughlin, whose company, Waco, manufactures scaffolding, owns 15 rental branches, and has more than 100 dealers throughout the United States and Caribbean Islands.

The next step is to determine the type of access equipment most appropriate for the project in question. There are many different types of scaffolds, but here's a brief overview:

  • Rolling towers are designed to move from location to location.

  • Fixed towers are well suited to applications where several people will be working in the same location for longer periods of time.

  • System scaffolds are designed for use on industrial applications such as power plants.

  • Frame scaffolds are well suited to masonry applications such as brick, stucco and painting.

  • Mast climbers are ground-based units that use a rack-and-pinion-based system with a large, wide lifting platform. Masts are often used in big-box construction projects that have straight walls with no variation on the surface of the wall. Use mast climbers when you don't need to get around any obstructions. They are useful in jobs that require a heavy payload, multiple employees and a large working swath. Masonry, EFIS, glaziers and demolition work can be well suited to mast climber access.

  • A swing stage is a suspended platform that's rigged to and lowered from the top of a structure and is powered by electric or air hoists. A swing stage can be a simple work cage for one or two workers, or a larger stage that holds up to four workers. Used on buildings of just a few stories up to 100-story skyscrapers, swing stages are moved around the structure to access the work surface. Large new construction projects can have numerous platforms at work simultaneously.

    “Both mast climbers and swing stages can move from floor to floor, but there is more mobilization and installation work required for mast climbers,” says Callahan. “They require much larger delivery vehicles and may require street closures to setup the unit on the site. Plus, a mast has to be tied in to the building façade at a certain height to prevent tipping. A swing stage can be delivered on a service or pickup truck, and a suspended platform does not need to be tied in.”

  • High-reach equipment can be used inside or outside and is commonly used for commercial applications such as inside a mall, church, school, or anywhere uers might need to move around at height quickly and easily.

  • An elevator, or personnel hoist, is a rack-and-pi ion-based system for moving personnel and materials to height. These units provide enhanced safety in emergency situations, such as when an accident occurs on the jobsite.

“When every second counts because of an accident or an injury, evacuating employees or delivering an injured worker to emergency medical technicians can be accomplished quickly with the use of personnel hoists and/or elevators,” says Paula Manning, GEDA product manager for Houston-based Champion Elevators.

The initial investment required varies based on the type of access equipment, of course. Rolling and fixed towers require the least amount of capital investment and start-up, followed by frame scaffolds. Start-up packages are available from slightly less than $1,000 to about $3,500.

To have a credible amount of suspended scaffolding equipment in a smaller market, Callahan says, requires an initial investment of $200,000 to $250,000. “In a bigger market, realistically, a credible fleet takes an investment of $750,000 or more, including the delivery trucks and personnel training,” Callahan says.

Suspended access equipment, such as frame scaffolds, has very few maintenance requirements and has a lifespan of about 20 years, which makes it a lucrative rental item. “It can be paid off in a matter of two years and then rented repeatedly for the next 15 plus years,” says Callahan. “These assets hold their value well. Suspended scaffolding rentals can be profitable for an independent rental company provided the company has a few highly skilled employees.”

Personnel hoists have long been viewed as a luxury rental item on a worksite, but Manning provides evidence that suggests contractors are paying their workers the same price to climb a structure several times a day.

“Let's figure that a single worker's wage is $25 per hour (before benefits), and a contractor hires him on a 15-story scaffold job,” says Manning. “Let's assume this worker can climb a flight of stairs in about seven seconds, making his trip up the steps take nearly two minutes. Consider that he does this a minimum of five times a day for breaks, lunch, more breaks, tool retrieval, etc. We must add to the equation that once he reaches the top he is going to have to catch his breath; we have him climbing at a pretty good pace, so let's give two minutes to recover. Basically, he is costing the contractor $11.46 to climb your stair tower every day.”

If you add 19 additional co-workers to the equation that amount skyrockets to $229.17 per day, or $1,145.83 per week to get that crew to the worksite. That amounts to about $5,000 a month — about the same cost as a monthly rental on a personnel hoist.

Engineer wanted?

Having an engineer on staff isn't really necessary, though some engineering knowledge is helpful. Most scaffolding manufacturers will provide an engineer to its customers on larger jobs where it's necessary. For rental salespeople, counter personnel and especially jobsite specialists it is useful to have an understanding of voltage drop; electric circuits; rigging, including outreach; load and counterweight calculations; platform loading and weight distribution; and OSHA and local code requirements.

“OSHA requires all frame jobs over 125 feet high to be designed and stamped by a professional engineer,” says Coughlin. “Some states/cities may have a more stringent requirement and you always design to the stricter standard.

“Most scaffold applications can be designed by trained and experienced scaffold salespeople who have been trained in scaffold layout and design. Most of the major scaffolding manufacturers and/or suppliers have engineering departments to assist the customer with this. Some charge for this service and some do not, depending on the complexity of the project and history of the customer.”

Some rental companies require a site visit prior to an access rental. Usually the rental salesperson or access specialist will conduct the visit to evaluate the design, engineering (if necessary), and pricing of the project.

The site visit, also known as a job walk, will generally follow a checklist that includes an assessment of all the potential hazards, assessment of the roofline where equipment may be tied on, and determination of where independent safety equipment for workers would be attached independent of the platform. The salesperson or access specialist should know the appropriate OSHA and local codes, have competent-person training, be educated in rigging techniques and site evaluation, and have some basic electrical and math understanding.

Many scaffold suppliers offer erection and dismantling services, using specially trained and qualified scaffold erectors. Like other rental items, maintenance is required after each rental. Upon return the scaffold frame needs to be inspected to make sure the locks are still there. There should be no debris stuck in the legs, such as concrete or dirt, and the maintenance personnel should make sure that no water has frozen inside the legs, causing them to split at the seams. Parts that are bent, broken or cracked should be thrown away and replaced.

For suspended access rentals a different checklist is required. Safety devices such as overspeed brakes, controlled descent and the power control circuits are checked after each rental. More extensive service is done depending on the environment the rental hoists were exposed to. Very dirty environments require additional clean-up work. Inspection for overloading conditions or other types of operator abuse are also needed as part of the turn service performed after rent.

Training 101

The training required for rental professionals who offer access equipment might make you feel like you're back at the frat. The resources, like the beverages in most frats, are abundant. Most manufacturers will provide the rental company with all the training materials it provides when equipment is purchased, including safety packets, detailed erection and dismantling instructions, and OSHA codes. The counterperson should always review these materials with a customer and give him a copy.

Some scaffolding manufacturers also offer a safety video, which can also be supplied to the customer. Often, the same information is also available on the manufacturer's Web site to further ensure its accessibility. Additionally, scaffolding safety seminars are provided by many manufacturers. For example, if a local masonry association requests training, some access suppliers will come to them to do it. Rental company employees can also benefit from this training. It can be viewed as both a way to further the education of rental employees and as a customer service provided by the rental company.

Competent-person training is required for at least one person who is ever-present at the jobsite. OSHA defines a competent person as “One who is capable of identifying existing and predictable hazards in the surroundings or work conditions that are unsanitary, hazardous or dangerous to employees, and who has the authority to take corrective measures to eliminate such hazards.”

Scaffold Industry Association provides competent-person training. Once an employee completes the class successfully, SIA issues a card that indicates the employee received training. Unions, trade organizations, universities and other commercial entities also offer scaffold-training courses.

“Reputable manufacturers offer mechanics' training programs,” says Callahan. “They differ in quality. Programs that are hands-on and require accountability from the student are best. Power Climber trains in its facility for better student performance and tests strudents at the end of each full day of class to prove retention of the material learned.”

Waco Scaffolding has won the SIA Accredited Training Institute (ATI) of the year award for the past four out of five years. “The SIA has a number of training programs that are taught through its 47 recognized ATI's,” says Coughlin. “They have set the industry standard in training for scaffold use and erection. They offer programs to all trades that cover frame scaffolds and swing stages. They are constantly working to improve scaffold safety. If you're in a business that sells, rents or uses scaffolding, you need to become a member of that organization. We hold training classes for our employees and customers throughout the United States, and train hundreds of erectors each year on scaffold erection procedures and safety.”

Safety, safety, safety

As a rental company, the concern of whether a customer will use equipment safely is a constant worry. So what can be done between the rental company and the manufacturer to help ensure the equipment will be used responsibly?

“We give each of our customers a code of safe practices after every scaffold is erected and deemed ready for use,” says Millstone Corp.'s Miller. “It is a very basic overview of what to do and what not to do in terms of safely using the scaffolding.”

Millstone also gives clients a 22-point inspection checklist to be used daily prior to beginning work. Items to look for include checking whether any planks or guardrails have been removed, and a check of the base to make sure no erosion has occurred. If any changes are noted, the client is instructed to contact Millstone immediately so it can be corrected.

According to Waco's Coughlin, his company employs two full-time safety officers who are dedicated to training both Waco employees and its customer's employees. In addition, these safety officers conduct daily, unannounced jobsite inspections where the company is erecting scaffolding to ensure compliances with its policies and OSHA codes.

“The scaffolding must be inspected daily to ensure that it is in good condition, jobsite conditions have not changed and — the most frequent problem — that the contractor or his employees have not altered the scaffolding while performing the job,” Coughlin says. “Our general philosophy is that we target professional contractors and end users that we are comfortable have the experience to use the equipment properly and safely. All of our employees and counter staff have the absolute right to refuse to rent equipment to anyone who, in their opinion, does not have experience or does not know how to safely use the product. There is no such thing as a five-minute primer on scaffold erection while standing at the counter.”

Swing stage rental companies may offer competent-person training, post-installation safety inspections and first-user training to facilitate safe use of the equipment. Power Climber helps to train its dealers to perform this work.

“We take that a step further and also help evaluate a business, looking at their people, their fleet plan and even operating procedures,” says Callahan. “We help our dealers create the proper maintenance documentation that verifies that their fleet has been maintained regularly and properly This is an important piece of a prudent risk control plan.”

To further protect itself, Millstone requires clients to sign a ticket, agreeing to take possession of the scaffolding and agreeing that it was assembled properly and safely, and that they were provided guidelines for its safe use. The ticket is loaded with indemnification language that protects Millstone from liability.

“The best defense you have against liability claims is the proper training for erectors and users,” Miller says.

The appropriate level of insurance is key for rental businesses that offer access equipment. It is not uncommon for general contractors, subs and facility owners to ask the rental company to not just indemnify them, but to name them as an additional insured on the rental company's policy. This is an important matter to understand and evaluate for each company. The more entities named as additional insured, the greater the risk profile the rental company represents to its insurer, which can cost that company more at renewal time. If an incident happens, the rental company pays for its customer's defense, even if the customer was at fault.

“Rental companies need to understand this issue well and how their insurer will treat this before naming additional insureds,” warns Callahan. “Ultimately, smart rental contract language that holds the contractor responsible for his own actions is the best protection.”

Concern over imports

Recently, more and more scaffolding components are being imported from outside the U.S. because of significantly lower costs. Though quality standards were of great concern in the past, the increasing number of imports to the U.S., where standards are high, has brought improvement in the quality of these imported scaffolding components. However, liability issues are still a major concern. Many of the imports are coming from Asian manufacturers who don't carry liability insurance on the equipment in the U.S. As a result, American customers have no recourse if the equipment fails or if there's an accident.

Still, many U.S.-based scaffolding manufacturers are doing business with these overseas suppliers because manufacturing costs in the West have been so significantly impacted by the rising cost of steel. “The total increase in the cost of steel in the last 18 months is more than 15 percent,” says Miller. “Because of the dramatic fluctuation in steel prices, many companies cannot hold a quote for more than two weeks at a time.”

To help offset the cost of raw materials and freight, which is also a growing concern, manufacturers have begun to add steel surcharges to their invoices. The savings that can be realized by sourcing parts outside the U.S. are just too significant to ignore. Miller estimates that between 40 to 50 percent of the parts sold by U.S. manufacturers are now being imported.

But the demand from U.S.-based customers is driving quality improvements in Asian suppliers. U.S. manufacturers are sending their standards to the foreign companies with the stipulation that their product must meet or exceed U.S. standards for quality.

Imported components for suspended access equipment have been less of an issue, according to Callahan. “There are very few providers of hoists to the North American market. Credible insurance coverage and the regulatory requirements pose a barrier to entry.”

Callahan suggests looking for a number of things when evaluating suppliers of access equipment, including professional reputation; quality assurance processes; insurance coverage; required UL, or equivalent, ratings; product availability; applications and business support; as well as professional affiliations.

As with other types of rental equipment, look for a partner in your scaffolding supplier. They can help provide you with literature, customer support, promotions at trade shows and more.

“Demand service from your supplier — there's a lot that can be done behind the scenes,” says Miller. “Purchasing the scaffolding should be the beginning of the relationship with your supplier, not the end. With importers there's no support after the fact.”

Miller has worked with the same supplier for many years and their close partnership has helped him successfully grow his business. In the past, when all his access equipment has been out on rent the supplier has provided him with all the additional product he needed on a re-rent basis. His supplier has also helped cover him on big jobs when additional umbrella policies were needed that Miller didn't have.

The scaffolding industry and its fictional frat Spike are always looking for new members. Manufacturers, SIA and other industry resources are readily available to help independent rental companies profit from access rentals. Could adding scaffolding to your fleet be good for your business?

For additional material on this story visit www.rermag.com.