In September 2022, a major data center operator based in the western suburbs of Chicago was facing a dilemma that has become all too common in today’s climate.

The delivery of the power distribution units, or PDUs, the operator relied on to keep centers running was extremely late, delaying the opening of a new 185K SF facility. This delay was costing time and money and keeping clients from gaining access to the data storage they needed. 

Thankfully for these operators, they were working with Clune Construction, a Chicago-based general contracting firm with offices in Dallas, Los Angeles, New York, Phoenix, San Francisco and Washington, D.C. Over the last few years, Clune has adopted strategies for overcoming the supply chain issues that have been plaguing data center construction. 

After the client decided to select an alternative brand of PDUs in case its preferred choice didn’t arrive, Clune Senior Vice President and Senior MEP Coordinator Joe Zobel and his team devised a plan to prep the location so they could work with either solution. 

“We needed to accommodate multiple choices,” Zobel said. “This way if our client were to change their minds on which equipment to install, there would not be any cost impact. It gave them the freedom to make the right decision for their facility.”  

He added that there were 75 of these units, so it would have been very costly and time-consuming for this data center client if an adjustment to its new facility was needed to accommodate a last-minute decision to go with a different solution. Having freedom like this has become particularly important for data center operators, who have been dealing with significant project delays since the pandemic began, which led to major supply chain disruptions. 

While these disruptions have impacted every asset class, Zobel said that they can be particularly devastating for data centers, which are mission-critical facilities that can cost companies thousands of dollars for every second they aren’t operational. 

“As soon as construction is completed, data centers can net a lot of income for our clients,” he said. “So if there are delays and they can’t receive a month or two of rent from their clients, it can be significant. It can also make those who are renting the space consider other options.” 

The Clune team has decades of combined data center experience, so it is uniquely positioned to understand these challenges and devise strategies to overcome them. In recent years, these strategies have included developing new workflows to minimize the impact of delays. 

When Clune is awarded a project, its team analyzes the specified equipment and materials and is upfront with the client about the lead times it can expect for these items. If necessary, it proposes alternatives that can be purchased immediately to ensure the best price. 

“We adjust the bidding process to reflect what we are seeing in the design and the potential delays that may arise from it,” Zobel said. “We view our clients as partners, and the more we collaborate with them and understand what needs to happen and by what date, the better we can meet their schedule.” 

Zobel’s role as mechanical, electric and plumbing, or MEP, coordinator at Clune has also evolved as the company continues to work to meet its data center clients’ needs. He said that while Clune has always partnered with clients and taken responsibility for the equipment, now, when there appears to be no end in sight for supply chain delays, the team is going above and beyond to ensure clients are getting the materials they need. 

“We have weekly calls with all vendors and we get into every detail of their fabrication schedule. This helps confirm that they have all the necessary parts from their vendors to build the equipment,” Zobel said. “If they are having trouble obtaining a part, we then get on the phone with the engineer of record to decide if we can recommend an alternative  to keep the flow going.” 

His team also includes its trade partners on these calls to discuss installation methods with the vendors. The goal is to make sure that all parties completely understand how everything should be installed so Clune is aware of and can prepare for any changes that must be made at the factory.

Zobel said that in the past, factory witness tests where the Clune team would go and personally test every piece of equipment being manufactured were common practice. These visits can be expensive, and over the years, clients stopped requiring them. Now, however, as supply chain issues persist, Clune has brought this practice back, letting clients know which pieces of equipment are worth the trip to test in person. 

“Sometimes it’s because the information we’re receiving from the factory isn’t clear,” he said. “Other times, there are elements that could potentially pose field-related challenges if we don’t verify it prior to their arrival at our site. Our motto in these scenarios is, ‘Trust, but verify.’” 

As a result, Zobel said Clune and its factory partners have been able to strengthen their relationships. In the past, vendors have occasionally tried to resolve minor issues before sharing the problem with Clune or its clients, he explained. 

“We have created an environment so if they have to, they are able to give us bad news, even if the bad news is only a possibility. This way we can decide if we need to make a change in the field,” Zobel said. “There’s no penalty. We just want the truth. The more we know, the better we can mitigate the problem.” 

He said that to better plan for the future and the likelihood of continued supply delays, Clune is developing a database of lessons learned and things to look for so it has more details to share with its partners and its teams across the country. 

“The more information we have, the more tools we gain to help us make the best decisions for our clients,” he said. 

This article was produced in collaboration between Clune Construction and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com. 

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Dollop Coffee in Chicago in 2016. | Photo: Shutterstock.

Two Chicago police officers walked into a coffeeshop last week and asked to use the restroom. They were informed that restrooms were for customers only.

The seemingly innocuous incident has been blown into a social media storm (perhaps in a teapot) that has been dubbed “Hurricane Restroom,” with critics threatening a boycott and wishing the coffeeshop harm. Some called it “Bud Light 2.0,” referring to the beer maker’s decision earlier this year to partner with a transgender social media influencer, which reportedly alienated a portion of its audience, also prompting calls for a boycott.

“It will be hilarious when you get robbed and no one wants to help,” wrote @arizonacardslover to Dollop Coffee in a post on X.

“We must all boycott @dollopcoffeeCo for once and for all! United we all stand a chance against the woke agenda folks! #BLM,” wrote Mauricio @ghosting199.

“Vile people. Vile company. Don’t come crying when lowlife criminals target your store and you call 911,” wrote Emmi1111* @MyfriendOliviaa.

The reaction prompted the CEO of the 14-unit coffeehouse chain to defend the policy in a post on Medium on Sunday.

Dollop CEO Dan Weiss said the staff’s recent interaction with the police officers was not political. The customers-only policy is designed to keep employees safe, he writes, because restrooms have been left a mess, with feces smeared on windows and walls and needles and other drug paraphernalia to be cleaned up—not by police officers, he makes clear, but the policy is to say “no” to non-customers because of “rushes and workloads and moments.”

For context, he adds, the barista had been asked 20 times by non-customers to use the restroom in the hour before the police officers arrived.

However, the police officers response, according to Weiss, brought politics into play and was “horrifyingly inhumane,” he wrote.

The officers returned to the coffeeshop twice with individuals they claimed were “homeless and drug addicted” and “harassed our staff members about them being allowed to use the bathroom,” wrote Weiss, though it’s not clear how workers were harassed. “These officers were offended that they were being treated like everyone else and they were bullying employees. And using unhoused and impoverished people to do so. It was disgusting.”

Weiss called Chicago’s housing, mental health, addiction, and police brutality issues “desperately critical.”

“I’m ready and willing to partner with the city as a business owner—but I won’t stand by and be quiet while people are mistreated by a few bored cops,” he wrote.

Chicago Police officials declined to comment except to say an internal investigation of the incident has been initiated.

To critics on X (formerly known as Twitter) who posted that they wished Dollop Coffee would be robbed, inspected, or broken into, and who threatened boycotts, he wrote, “Most of you don’t even live here. Most of you don’t think Black lives or trans lives matter. Most of you think Steve Bannon is hot and celebrate January 6th as a national holiday. Most of you don’t think women have the right to reproductive freedom. So how about you please fuck off.”

While footage and information is still being collected/assembled regarding Hurricane Restroom, one thing is certain. There are common, um- shall we say…themes to the accounts/users that have politicized this and chosen to “boycott” us over it. To them, we proudly say: pic.twitter.com/ghrwfOPgrm

— Dollop Coffee Co. (@DollopCoffeeCo) September 2, 2023

Dollop’s X feed also received many posts in support, mostly reacting to why the social media account stood up to those critics.

I tend to make my coffee at home because I’m a nerd about things like that but I’m all for community members who take a stand. I’ll be ordering from y’all ASAP. Keep fighting for our rights and don’t let the bastards grind you down!

— Walter Driskell (@therealdriskell) September 3, 2023

Restroom access has been a recurring issue in many cities, as restaurant operators attempt to find balance between serving customers and safety.

How police officers are treated in restaurants has also become somewhat of a hotspot.

Many restaurants offer perks to police to encourage them to visit frequently with the hope their presence will deter crime and make both guests and workers feel more safe. But the presence of police can cause some to feel unsafe.

The guns police officers carry can also be an issue. The San Francisco restaurant Reem’s California reportedly last month got into a social media feud over a policy that banned police officers carrying guns from entering.

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Lisa Jennings is a veteran restaurant industry reporter and editor who covers the fast-casual sector, independent restaurants and emerging chain concepts.

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By last Friday, all of the striking nurses at Robert Wood Johnson University Hospital in New Brunswick, New Jersey, were scheduled to lose their employer health care coverage. No new talks are scheduled.

“As of Sept. 1, RWJUH nurses must pay for their health benefits through COBRA,” said RWJ spokeswoman Wendy Gottsegen. “This hardship, in addition to the loss of wages throughout the strike, is very unfortunate. We hope the union considers the impact a prolonged strike is having on our nurses and their families.”

This painful standoff has some of the state’s wealthiest and most politically connected power brokers up against the United Steelworkers Nurses Local 4-200, which represents close to 1,700 nurses who weathered a once-in-a-century mass death event that around the country killed thousands of health care workers and disabled many more.

Our health care system in New Jersey and across the nation did not hold up well during COVID. The U.S. has 4% of the world’s population, but at least 12% of its COVID deaths. Multiple peer-reviewed studies have documented the lack of N-95 masks and proper staffing in our health care system helped drive the infection and death rate, particularly in underserved communities of color. 

In a reality that residents of New Jersey and New York know all too well, congregant care facilities where the most vulnerable are housed, became vectors for the disease.

Holding the American health care system accountable for its failure means being prepared to take on some of our nation’s most entrenched interests that have cultivated both major political parties. President Biden’s recent comment that “health care is a right” is a sign that we might see some attention to the health care affordability and access crisis that still grips our nation.

Even before the pandemic that killed 1.1 million Americans and disabled millions more, our health care system, largely based on nonprofits like RWJBarnabas that pay Wall Street wages for leadership, was ranked as the most expensive among peer OECD nations with the worst health care outcomes.

In the big picture, U.S. life expectancy continues to decline as costs go up. Our nation is likely to drop further in that ranking as the corporatization of health care accelerates.

In 2018, CNN reported the U.S. would “take the biggest drop in ranking of all high-income countries, falling from 43rd in 2016 to 64th by 2040, with an average life expectancy of 79.8. The U.S. will be overtaken by China, which rises 29 places to 39th in the table.”

That was before the pandemic.

U.S. life expectancy continues to decline as costs go up. Our nation is likely to drop further in that ranking as the corporatization of health care accelerates.

The RWJBarnabas system is a not-for-profit health care giant with a dozen acute care hospitals and a partnership with Rutgers University. The system has 38,000 employees and $6.6 billion in revenue. It relies on hundreds of millions of dollars in tax-exempt state issued bonds for capital construction.

Yes, it sounds like a public, almost quasi-governmental entity with a vital and noble mission, which, along with its workforce, is executed 24/7 in some of New Jersey’s poorest and most underserved communities.

Yet it also generates vast fortunes for some people on top of the health care pyramid.

The system’s recently-retired CEO and president, Barry Ostrowsky, earned $16 million in the second year of the pandemic, making him the highest paid hospital executive in the New York area, according to Crain’s New York.

He’s now on the board of directors of PSE&G, New Jersey’s largest utility. 

According to RWJBarnabas’ latest available 990 IRS form from fiscal year 2020, Ostrowsky made $5.59 million three years ago. More than a dozen other top executives listed were in the $1 million or more category.

The hospital system’s filing includes links to dozens of “related organizations taxable as partnerships,” identified with nondescript names like Medmerge LLC or Jersey ASC Ventures LLC. There’s a C-corporation called Major Investigations Inc., which is listed as “security” at the same address in West Orange, New Jersey, as the RWJBarnabas Health Foundation.

Any entity that operates on the scale of the RWJBarnabas system needs to have cash on hand and investments that can help it sustain its charitable mission. It’s all a matter of degrees and transparency.

Under Schedule F in the RWJBarnabas IRS filings, which catalogues its financial “activities outside the United States,” listed are “program services” in Central America and the Caribbean described as a “financial vehicle” worth $41.2 million.   

For its PR strategy, the nonprofit’s management is relying on MWW, the powerhouse firm founded by Michael Kempner, who has been described by Politico as a “major Democratic fundraiser who bundled millions of dollars for Barack Obama’s campaigns.”

According to Kempner’s LinkedIn profile, he is “active in progressive politics, having played roles in the presidential campaigns of Barack Obama, Hillary Clinton and most recently, Joe Biden.”

For its PR strategy during the strike, the nonprofit relies on MWW, the powerhouse firm founded by Michael Kempner, a “major Democratic fundraiser” who bundled millions in donations for Barack Obama.

The global crisis management firm has a high-powered team that includes Steve Sandberg, a former journalist and former chief spokesperson for U.S. Sen. Bob Menendez, a New Jersey Democrat who currently chairs the Senate Foreign Relations Committee. In his role as senior vice president for public affairs “at one of the world’s leading public relations agencies,” Sandberg is playing a key role in the RWJBarnabas system’s response to a strike it has consistently asserted it wanted to avoid.

Sandberg, who has been proactive about getting management’s message gets out, did not answer a query from this reporter as to whether MWW is providing its services pro bono.

He responded by asking if I was in the employ of any unions. I responded that I was not, but that I do benefit from a SAG-AFTRA pension and Social Security so I am grateful to the union movement.

Central to the labor-management dispute in this case the question of which side represents the best interests of the hospital’s workforce and the patients, as well as the broader community they serve. 

Three years ago in its IRS filings, RWJBarnabas reported it spent $18.5 million for advertising. In the present media landscape that buys a lot of space.

In one recent release, the nonprofit heralded the success of RWJUH’s heart transplant team, which “successfully performed a transplantation on August 4 within the first 24 hours of the nurse strike implemented by its nursing union.” That patient, a 52-year-old resident of Trenton, was reportedly discharged on Aug. 14 after 10 days in the hospital’s cardiovascular ICU and in-patient unit. 

Last year, Lester J. Owens was named as chair of the RWJBarnabas Health Board of Trustees. Owens “has served as Vice Chair since 2019 and has served on its Audit, Compliance, Compensation, Nominating and Governance, as well as Racism and Social Justice Committees,” according to a press release.

Owens is also senior executive vice president and head of operations for Wells Fargo & Company, where “he oversees a team of more than 70,000 employees and is responsible for building a more unified, integrated approach to Wells Fargo’s business operations functions,” according to the press release announcing his appointment. Before joining Wells Fargo, Owens held prominent positions at BNY Mellon, JPMorgan Chase, Deutsche Bank, Citibank and Bankers Trust.

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Residents of communities like Newark and Irvington know Wells Fargo well.

Earlier this year, Fortune reported on internal documents from the beleaguered banking multinational that privately expressed “increased concern that a years-long effort to unionize the bank’s employees could soon start notching victories” and outlined “plans to spend millions addressing the ‘pain points’ that can fuel organizing efforts.” 

Fortune further reported that Wells Fargo “has seen ‘an increase in organizing activity’ by employees working with the Communications Workers of America, according to an internal PowerPoint presentation. … That comes amid what it called a broader ‘resurgence’ of U.S. union activity.”

An unnamed source in Wells Fargo management told Fortune, “Leaders at the San Francisco-based bank have worried over the trends. … The company has estimated the extra expense of having unionized workers, and drafted plans to spend hundreds of millions of dollars on staffing improvements.”

In a statement, the bank responded: “Wells Fargo believes our employees are best served by working directly with the company and its leadership – not a third-party group like a union – to address matters of concern. The company is investing in employees through training and education, is boosting minimum pay and health benefits, and now has a Diverse Segments, Representation, and Inclusion leader who reports directly to its chief executive officer.”

Fortune observed that the bank had roughly 193,000 U.S. employees at the end of 2022, none of them unionized.

RWJUH, on the other hand, has had a nurses’ union going back decades. Back in 2005, the United Steelworkers Local 4-200 took up the mantle. As one of America’s legacy unions, it has 1.2 million active and retired members including 50,000 in the health care sector representing titles as varied as physicians and EMTs from New Jersey to California. The union even scored a recent organizing coup in Wyoming.

On day one of the strike, the plumbing in a church rented by the union suffered a “construction accident” that disabled its plumbing, taking out the toilets available for striking workers.

On day one of the job action, the plumbing in the Magyar Reformed Church in New Brunswick, which the union is renting as a strike headquarters, suffered a “construction accident” that disabled its plumbing, taking out the toilets available for striking workers on the picket line. The church sits at the center of the RWJUH complex, which includes the ongoing construction of its $1 billion cancer center.

“We’re nurses, we are resourceful, we do what we have to do, so we rented portable toilets,” Judy Danella, president of United Steelworkers Nurses Local 4-200, said. The union has filed several claims of unfair labor practices against the hospital system.

The union says its top priority is to improve nurse-to-patient ratios and to establish an enforcement mechanism to hold hospital management accountable when it falls short of that standard. The hospital counters by saying that it tried to prevent a strike and painting the union as an erratic and unreliable bargaining partner.

“RWJUH did everything it could to avoid a strike. The hospital agreed to and signed a memorandum of agreement (MOA) on July 13, which included the union’s core staffing proposal and compensation settlement,” according to the hospital. “The union leaders signed it and agreed to recommend the MOA to its membership but did not. It was voted down by the nurses and a notice to strike was presented to the hospital.”

Two days before the strike, the hospital narrative continued, RWJUH “submitted a proposal to the union that went even further than what was in the MOA, and the union never presented that proposal to its membership before they went out on strike.”

RWJUH further asserts that it “offered to enter binding arbitration or participate in a federal mediation and conciliation board of inquiry” and asked the union to “rescind its strike notice and return to the table to continue good faith negotiations,” and that the union refused those offers. The hospital chain also alleges that “during the 10-day window prior to the strike, the hospital made another counteroffer to attempt to avert the strike. The union did not respond to the offer until after the strike. Since the strike, mediation has not been productive; counteroffers from the union have far exceeded all previous asks, including those the union agreed to in the MOA.”

The union has a different narrative, of course. Danella told hundreds of her members on the picket line on Aug. 28 that the hospital was not coming to the table, and that the union had “never refused to bargain” with management. She said the failure to make progress “was not for the lack of the union trying.”

Danella told members she hoped that “somebody would push” New Jersey Gov. Phil Murphy, a Democrat, to become engaged in the almost month-long strike at one of the state’s Level 1 trauma centers. Unlike in a recent strike at Rutgers University, Murphy has stayed on the sidelines so far. He has committed to use the tragic lessons of the pandemic to improve New Jersey’s health care system. That’s no small task. A lot of powerful folks have made a killing from the way New Jersey handles health care. 

“Hospitals have been downsizing their staffs over the years to try and save money at the same time that some of the hospitals are full — so safe staffing is something that nurses not just in New Jersey but all over the country are looking at,” New Jersey AFL-CIO president Charlie Wowkanech told Insider NJ earlier this month. “The issue isn’t just about the nurses, it’s about you and me and our families. Someone gets sick and goes to the hospital and they’ve got one nurse for eight or nine patients, particularly in some of these wards with infants, or in intensive care units where people need pretty much constant attention. That’s really what the fight is all about.”

Local 4-200 nurse and activist Renee Bacany said, “We need to make sure that we can take care of our patients to the best of our ability, and that would mean less patients than we are taking on now on a daily basis. Better staffing reduces infection, reduces patient mortality — that’s what study after study shows.”

Christi Peace, a spokesperson for Gov. Murphy, said that the governor “remains a strong proponent of organized labor and believes employees deserve a seat at the table when negotiating labor matters. The administration encourages both parties to maintain an open dialogue and will continue to remain engaged with them as they work towards a fair and acceptable resolution to these negotiations.”

Last Monday, the striking nurses got a pep talk from state Assembly Speaker Craig Coughlin, a Democrat. He discussed his own daughter-in-law’s experience as a nurse during the COVID pandemic.

“To thank you requires more than a speech, it requires some action,” Coughlin said. “I know what this is about — fundamental fairness. This is about people getting paid what they ought to be paid, being able to provide the care that their patients need each and every day…. This is about patient care and fundamental fairness and that’s why it’s so important that you stand up for yourself today.”

He went on, “It’s time to stand up together and to get a contract. It’s time for all of you to be back inside doing what you love to do, what you care about doing and making the difference that you make each and every day.”

Last weekend, Sen. Cory Booker, D-N.J., also offered support for the striking nurses. “We hailed them as heroes during the pandemic, but when it comes to their compensation, the nursing ratios, we’ve got to make sure they are being treated like heroes, not just in words but in the kind of contract and living circumstances they have,” he said.

Read more

on America’s labor resurgence

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By James Reynolds and Keith Griffith

12:47 May 25, 2023, updated 13:09 May 25, 2023

Banana Republic is the latest chain to close its doors in a crime-ridden part of San Francisco, joining a slew of brands citing security and lower footfall as reasons for the closure.

The clothing store announced it would be leaving the Westfield San Francisco Center as the city’s flagship store is located at 256 Grant Ave. will also downsize and become a store at 152 Geary St.

Dozens have closed or are expected to close in recent months, including Saks, H&M and Nordstorm, citing a drop in foot traffic, online shopping and safety concerns.

The Gap, which owns Banana Republic, has closed a number of Banana Republic stores during the pandemic and last month announced it would lay off 1,800 employees at its San Francisco headquarters as net sales fell six percent to $15.6 billion last fiscal year US dollar declined.

Drug addicts and homeless people in the Tenderloin District, San Francisco The luxury department store blamed the closings on the changing “dynamics” in the city. Pictured is the Westfield store

High-end retailer Nordstrom is also cutting 400 jobs as it prepares to close all of its San Francisco stores.

A total of 379 jobs will be eliminated at the department store, as well as at the Westfield San Francisco Center mall and the Nordstrom Rack outlet a few doors down.

LEARN MORE Why San Francisco is caught in an apocalyptic DEATH LOOP: A work-from-home boom has devastated the local economy, while drugs and homelessness are soaring thanks to soft policing.

The company announced earlier this month that it was closing both stores, blaming the “changed dynamic” of the crime-ridden city.

Jamie Nordstrom, Chief Stores Officer, said, “Decisions like these are never easy, and this one was particularly difficult.”

“But as many of you are aware, the dynamics of the downtown San Francisco market have changed dramatically over the past few years, impacting the flow of customers into our stores and our ability to operate successfully.”

Westfield Mall said in its statement to the Washington Post that business churn could be due to “unsafe conditions for customers, retailers and employees.”

The mall said, “These significant problems are preventing an economic recovery for the region.”

In April, Whole Foods announced it was closing its flagship store in downtown San Francisco “for the time being” to ensure the “safety” of employees.

“If we believe we can ensure the safety of our team members in store, we will consider reopening our Trinity location,” a spokesman said.

Multimillionaire tech entrepreneurs in the city have also indicated they would relocate to London, UK, as crime and homelessness rose.

“Tech workers are increasingly disillusioned with San Francisco,” Annie Ingram, a private banker at Coutts, told The Telegraph this week, citing concerns about rising crime, homelessness and outdoor drug use in the Golden Gate City.

Instagram boss Adam Mosseri made a highly publicized move from the Bay Area to London’s ritzy Kensington district, despite being called back to the US by Meta bosses.

Organic food giant Whole Foods opened a new “flagship” location on Trinity Place in the city’s Tenderloin area in March 2022, but closed its doors after a year. Bags of beef jerky are sealed in plastic crates at the Target store in the Metreon neighborhood of San Francisco May 8, 2023 as soft crime policies correlate with an ongoing crisis of everyday shoplifting

A recent study found that San Francisco is the most expensive US city to raise children at more than $35,000 a year.

At the same time, residents say San Francisco is beginning to feel like a ghost town as many retailers are moving out of town due to crime and low foot traffic.

A disturbing recent report showed that 95 retailers in downtown San Francisco have closed since the COVID pandemic began, down more than 50 percent.

Of the 203 retailers that opened in the city’s Union Square area in 2019, only 107 are still operating, a 47 percent drop in just a few years battered by the pandemic.

In early May, T-Mobile closed its flagship store in Union Square, a 17,000-square-foot building in the heart of the city.

They said it was part of a “nationwide retail strategy to better serve customers”.

The T-Mobile building previously housed Apple’s flagship store before the tech giant moved to its current Post Street location.

Since early May, San Francisco has been hit by a spate of retail closures since the pandemic as the city failed to deal with rising crime and drug problems. The Anthropologie store in Union Square (pictured) in San Francisco is now closed

Earlier this month, women’s retailer Anthropologie closed its store in the Union Square retail space in San Francisco as more stores relocated for security reasons.

The now-closed location was scheduled to close permanently on May 13. They urge customers to visit nearby branches on Fourth St and Village at Corte Madera.

Though Anthropologie didn’t give a reason, they join retailers like RealReal, Gap and Whole Foods that have closed their nearby locations.

The city is also affected by a statewide shoplifting law that downgrades theft of goods from a criminal offense to a far less serious offence.

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By now, you know all about the supply chain mess wreaking havoc on the global economy. The onset of the pandemic was the last straw on the camel’s back that broke the global supply chain, and it may be a while until it’s fixed.

Building owners are undoubtedly feeling the ill effects of product shortages. But we’re here to say the supply-shortage consequence you should be most worried about is in regards to your building’s HVAC system.

HVAC contractors nationwide have been hampered by rising costs, a labor shortage, and the inability to get their hands on needed materials like microchips. All this is leading to delays in getting repairs done. And with winter coming soon, now’s the time building owners need to get started on what could be a lengthy HVAC procurement process.

The supply chain nightmare has given all of us a lesson in logistics and globalization we probably didn’t want. It’s essential for property owners to prioritize HVAC repairs now, be flexible with contractors, and build resilience into their supply chains.

The supply chain chaos

You may remember the supply chain problems all began right after the virus struck and caused a shortage in vital medical supplies and personal protection equipment (PPE). As lockdowns began, tremendous demand for N95 masks and other PPE outstripped supply. Consumer panic buying also caused some strange situations (toilet paper shortage).

Unfortunately, this was just the beginning. Factories in parts of the world with much of the global manufacturing capacity were hammered by the pandemic, leading to shutdowns. Shipping companies thought consumer demand would drop because of lockdowns, but they were terribly mistaken. With stay-at-home orders in place, consumers went on online buying sprees for everything from personal computers to home gym equipment. The increased demand overwhelmed supply chains and slowed down the transportation of goods.

All told, it was a perfect storm. And now, more than 18 months since this all started, just about anything that’s produced or manufactured is in short supply. As a result, almost every industry has been hit hard. In particular, the automotive industry has been significantly impacted, as a shortage of microchips has led to considerable decreases in car production and increased costs for consumers.

The microchip shortage is one problem that’s affecting HVAC contractors. Semiconductors are essential components of HVAC systems and they’re in very short global supply. Shortages for all sorts of other HVAC parts have also been reported, including compressors, motors, and raw materials like copper, steel, aluminum, and plastic.

Labor away

Shortages of HVAC components have caused significant price increases. Raiven HVAC supply chain research reveals that specialized equipment including semiconductors will likely see 10-30 percent price increases soon. Copper prices reached an all-time high in May 2021, jumping more than 130 percent from March 2020. The steel price nearly doubled in August 2021 compared to last year, according to a US government index tracking the price.

The US Pacific Northwest and Southwest just went through a historically hot summer, increasing demand for HVAC services. The HVAC industry is also no stranger to labor shortages, but the pandemic has made it worse. All these factors have combined to cause the highest HVAC distributor lead times since 1987, according to Raiven research.

Karl Pomeroy, GM and President of Motili, a nationwide HVAC service provider, said many of the HVAC industry’s supply-chain problems have also been caused by very close to “all-time highs in terms of business growth” for the industry.

The HVAC industry’s labor shortage has had a significant impact, too, Pomeroy said. “As our industry gets more technically advanced, I think the labor shortage is more pronounced,” Pomeroy told us. “It takes a higher level of skill to service some of these pieces of equipment. The industry is also feeling a rising inflationary cost for labor because so many of these companies have to attract and retain top employees, and they’re paying more. So, not only are we paying more for finished goods and parts and pieces, but we’re also feeling the pinch of more expensive labor.”

Pomeroy added that for the typical building owner, they’ve seen fairly dramatic rising costs throughout the past 18 months, and “there’s really no end in sight.”

Stay ahead of the seasons

So, yes, it’s all rather messy right now. But while it seems like an apocalyptic scenario, it’s not all doom and gloom. By taking the proper steps, building owners can do many things to alleviate the pain. Undoubtedly, you’ve already been dealing with increased HVAC service prices and lead times for more than the past year, so you’ve probably come up with some solutions. But as this supply chain mess drags on, it’s imperative to keep a laser-like focus on your HVAC system—especially as winter approaches.

HVAC systems are one of the most expensive and vital pieces of equipment in commercial buildings, and breakdowns can be catastrophic. Get a fall inspection on your HVAC now, especially if it’s acting up. If there are needed fixes that require parts, lead times may be longer. Be proactive and patient with contractors, and get repairs done before the cold weather sets in.

Preventive maintenance of HVAC systems is more critical than ever right now. Check and change air filters on a monthly basis, keep the unit clean, and check heating-specific parts like gas/oil connections, burner combustion, and heat exchangers. This type of maintenance extends the unit’s lifespan and helps avoid significant problems during the heating season.

So see

“Tenant satisfaction is a huge factor affected by HVAC systems,” Pomeroy said. “A lot of our clients are moving into a model where they’re looking at their total portfolio of (HVAC) products, looking at the age of those products, and doing preventive maintenance to keep them in peak operating condition. Our clients are also more proactive when their systems starts to approach its age of replacement and putting it on a planned replacement strategy.”

Back up a system

A second and equally important thing building owners can do right now is build resilience into their supply chains. And this doesn’t just go for HVAC repairs and contractors. Take a look at all your vendors and suppliers and motto ways to make your supply chain stronger during these unpredictable times.

Beware of being stuck in a sole supplier situation. Establish secondary vendors and contractors for essential services (like HVAC), and don’t hesitate to reach out to them if their lead times are shorter or in emergency cases. Consider using supply chain management software, as well. Common programs from Blue Yonder, Infor, Oracle, and SAP help building owners gain better visibility into their vendors and supply chains and they also greatly benefit planning.

Perhaps the worst part of the supply chain nightmare is no one’s quite sure when it will end. Major exporters in Southeast Asia of critical components like semiconductors are still struggling to contain COVID-19, and global port and shipping congestion may last well into 2022.

The Biden administration has taken steps to alleviate the problems, such as urging the Port of Los Angeles to operate 24/7. But as General Motors CEO Mary Barra and other business leaders have indicated, the shortages and rising costs have forced many companies to re-think supply chain management altogether.

Pomeroy said building owners have to be “proactive instead of reactive” with their HVAC systems. Property managers need to focus on their HVAC units and ensure their mechanical components are in good working order. If they’re not focused on HVAC right now, he said, “they’re setting themselves up for a very difficult period of time.”

“I don’t believe this is a case where, in two to three months, all these supply chain and labor shortage issues affecting HVAC go away,” Pomeroy said. “I think we all came into 2021 thinking, well, it’s going to be better. In some cases, it has been better. But in some cases, it hasn’t been. The demands on the HVAC industry have been high. For those clients who are sitting back and waiting, they’re running the risk of the day they decide to do something, they’re going to find themselves not being able to find a labor source or not being able to find the materials.”

Lead times for HVAC repairs may be longer, and costs may be higher, so be proactive about this situation and keep a close watch on it. Get fall HVAC maintenance done as early as possible, and also think about other essential supplies and parts that may be affected. Resiliency, flexibility, and planning skills are the key attributes for surviving this supply chain turmoil. You likely already know about the supply chain issue, don’t wait until it leaves you out in the cold.

The post What the Provide Chain Mess Means for HVAC Repairs appeared first on DAILY SAN FRANCISCO BAY NEWS.

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The global supply chain crisis is being felt at the base of Potrero Hill, where the opening of a condominium building called 88 im Park has been delayed by six months. The culprit? Not lumber or steel, but mirror lights, quartz worktops and duct glass.

Calvin Li of First City Development, the company leading the project, says his company considered opening the building without these surfaces but ultimately decided against it. “We don’t want to compromise on quality or the first impression for buyers.”

Virtually every construction project in San Francisco is affected in some way by the current state of the global supply chain, say developers, contractors and architects. Some, like 88 in the park, see delays. Other projects will be slightly redesigned in the middle of the construction phase, while those that have not yet broken the ground are going through far more extensive pre-planning than before the pandemic. While there is some evidence that the most acute bottlenecks may be easing, there are other signs that the current crisis may mark the beginning of a new normal for the construction industry, making it all the more difficult to find much-needed housing in the Bay Area to build.

At this point, it’s not so much about a shortage in a particular material, but about a general feeling of unpredictability in the supply chain. “The worst part is the uncertainty,” says Sam Moss, CEO of the non-profit developer Mission Housing. “Everything can be delayed in the truest sense of the word. There was no rhyme or reason for it. “

The tangled journey of the missing materials at 88 in the park illustrates this uncertainty. The building’s countertops were made in Vietnam and loaded onto a ship on schedule. The delays came from the ship waiting in port here in the United States and the shipment languishing on the dock to be unloaded. The building’s Ohio-made LED mirror lights had to wait for electrical parts from Asia. When the lights were ready, a shortage of truck drivers delayed them even further.

In response to a request from The Examiner, San Francisco-based David Baker Architects surveyed its employees and identified over a dozen materials that contractors were having difficulty sourcing that affected almost every part of the construction process. Steel and wood were sometimes difficult to come by, as were different types of insulation, certain types of windows and doors, and paint and acrylic panels for the exterior.

In response, DBA adapted some of its designs, downsizing building frames and stairs, and replacing certain plastic elements with metal elements.

For Moss and Mission Housing, the supply chain crisis has forced the nonprofit to “spend a lot more money on pre-development before the building breaks the ground”. In the long term, that could be good, says Moss. By working more closely with architects, contractors and community members right from the start of a project in detail, the client should be able to bring more security to the construction process.

Joe Olla, vice president of Nibbi Brothers General Contractors, says his company has also changed its practices in recent months, adding a warehouse to store high-demand equipment and materials like refrigerators, stoves and windows. “Gone are the days when you could basically deliver just-in-time,” says Olla. “You have a day it is delivered, it shows up, you move it to the unit or floor you want – you can’t really rely on that anymore. The delivery times are too demanding. “

Supply chain issues add an additional variable to the already difficult process of “inhabited rehab” or renovating a unit currently housing a tenant. “If their unit is torn apart and waiting for closets or whatever, it doesn’t make a happy customer or happy tenant,” says Olla.

Material delays have forced a handful of Mission Housing residents to stay in a hotel or other accommodation provided by the landlord for weeks longer than planned, in some cases. “It has a human price,” says Moss. “The thought of going back to your brand new home and waiting another two or three weeks is emotionally brutal.”

Of course, it’s not just the global supply chain that is a challenge for construction projects in San Francisco. For the development team at 88 Arkansas, it ultimately made economic sense to postpone sales by a few months. With condominium prices still bouncing off the pandemic-era lows, the project’s creditors were “okay to postpone sales later,” says Li, “because we’re seeing the market picking up.”

Natural disasters here in North America also seem to be a factor. Successive hurricanes that hit the Carolinas have “made it very difficult to get box cabinets right now,” says Olla. This year’s winter storm Uri, which caused a deep freeze in Texas and much of the south, made it difficult to obtain plastic pipes and foams for insulation. Although the nationwide shortage of truckers was sparked by the pandemic, it doesn’t look like it is going anywhere anytime soon as more people find ways to “make a living without making a living,” as Olla says .

Fortunately for professionals in this business, adapting to changing circumstances is nothing new. “One of my mentors always said that we measure things with a laser, but then we do it with a stick,” says Moss. “It sucks and brutal, but the supply chain is just the next obstacle that the affordable housing industry has to jump over.”

bschneider@sfexaminer.com

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MINNEAPOLIS (WCCO-TV) – Winter is just around the corner, which means the Minnesotans will be cranking up the heat. This winter could be challenging for those who have old or broken stoves due to global supply chain issues.

As in many industries, the supply of ovens and their parts is secured. The pandemic is to blame.

CONTINUE READING: Police: Lockdown at Pinole Middle School lifted after student was found with shotgun

None of us have experienced this supply chain problem,” said Andy Ryan, president of Homeworks Plumbing, Heating, and Air in Eagan, Minnesota. “This is hopefully a one-off problem that we can all face, take care of, and hopefully never happen again.”

With cooler temperatures, now is the time to make sure your oven is ready to use.

“We always recommend that our customers do their annual furnace polls,” said Ryan. “So if you haven’t hired yet, call Homeworks, call another company. Get someone to watch this. Get the status of your heating system. To make sure it is safe, it works properly and works efficiently. “

CONTINUE READING: Supply Chain Issues: How Global Bottlenecks Affect Consumers Across The Country

It is possible to wait months to get the oven you want. Homeworks has done its best to replenish inventory to address the supply chain problem. But prices keep rising.

“Every month that goes by, prices go up. This year alone we’ve seen five price increases for ovens and air conditioners, ”said Ryan. “That’s why we recommend our customers that the earlier they buy, the more likely it is that they will pay a lower price, the longer they wait, the higher the costs will be.”

To keep your wallet full and your home warm, it is better to act sooner.

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“The worst thing you can do in Minnesota, which is just around the corner, is minus 20 degrees without being stuck in the heat and having to pick an inferior product,” said Ryan.

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Winemaking has never been an easy business, but many in the industry say this year has been one of the toughest in recent times.

California winemakers, still recovering from last year’s scorching forest fires, anticipate another year of historic drought as retailers and restaurants are hit by the shift in consumer behavior sparked by the pandemic.

Now the industry is also confronted with massive bottlenecks in the supply chain. Delays in ports have left shops and importers reliant on foreign shipments with no inventory. This has disrupted local bottling, labeling and wine-growing businesses.

“2021 just won’t work,” said Stuart Smith, founder of Smith-Madrone Winery on Napa’s Spring Mountain. “Everywhere you go, things that were easy are no longer easy.”

Stuart Smith, right, founder of Smith-Madrone Winery, helps press the grapes at the winery in St. Helena, California on Wednesday, September 8, 2021. (Courtesy Smith-Madrone Winery)

As the pandemic progressed, Smith struggled to get the most basic necessities like PVC pipes or galvanized fittings for sprinklers and fire fighting. “It’s not just about winemaking. It’s all, ”he said. “Right after the glass fire, I needed more chainsaws – I couldn’t get one.”

All of this happens while he struggles to find water for his thirsty vines. “This is a colossal, historic drought,” said Stuart. “We’re all scared because we’re running out of water and our reservoirs are empty.”

But not only winemakers feel the pinch. An entire branch of bottlers, label manufacturers and cooperatives is also feeling the strain caused by the overloading of the ports.

“The word disruptive doesn’t describe how dire the situation is,” said Erica Harrop, founder of Global Package, which supplies glass bottles to high-end Napa wineries. “It’s total chaos”.

Harrop said freight costs have skyrocketed as demand for goods has increased. Meanwhile, ports don’t have enough dockers, dockers or truckers to keep the flow of goods going, resulting in a backlog of products waiting to be reloaded. Those additional costs, she said, are passed on to her customers and ultimately to consumers.

“We fill around 20,000 bottles in a container. And if it costs $ 20,000 to ship, that’s a pretty straightforward calculation, ”she said. “With glass, this has an immediate effect on the cost of the product.”

On Wednesday, the Biden administration announced a plan to keep the Port of Los Angeles open “24 hours a day, seven days a week,” reflecting the already extended opening hours in the Port of Long Beach to move more goods faster.

However, companies that buy inventory months in advance remain affected by the delays. Josh Trowbridge, CEO of Tonnellerie Ô, a Benicia-based barrel maker, said he waited a month to receive a shipment of wood from a ship docked outside Half Moon Bay.

“It was just so frustrating,” he said. “What you need is right there, and it’s not even in port.”

Trowbridge watched wood prices skyrocket during the pandemic as people stuck at home focused on home improvement projects. Just this week he was told that the price of French timber would rise by 20-30%. Combined with the increased cost of shipping goods, he fears that his barrels will be unaffordable for many wineries in the years to come.

Wine label makers are also getting into trouble as paper is scarce and demand for such services explodes.

“Demand for wine had gone above the charts in the past year and a half,” said Travis Pollard, vice president of ASL Print FX in Napa Valley, finding that business had grown 57% over the past year.

However, satisfying this demand has been challenging as paper suppliers have moved to making products from corrugated cardboard that are easier for online retailers like Amazon to make, as opposed to fine paper, which is needed for wine labels.

“The availability of the raw components for making this paper is tight,” said Pollard. “What we are seeing is a huge change in the way people shop and the huge impact this is having on our industry.”

The disturbance is already seeping through to local wine shops.

Some of the cheaper wine selections at Decant SF on Thursday, October 14, 2021. (Kevin N. Hume / The Examiner)

“If you look at the shelves at Gemini, you can see it all along the line,” says Dominique Henderson of San Francisco’s Gemini Bottle Co., which focuses on natural wines from small producers. “You see a Riesling bottle and there is something like Pinot in it, or there is Blaufrankisch in it or something, because people have ordered whatever vessels there were.”

As the holidays get closer, wine stores try to figure their way around how to stock the shelves when there is less wine and it takes a lot longer to arrive.

French wines were particularly hard hit this year as frost, bad weather and mold ravaged the vineyards. “Champagne was very difficult to come by,” said Simi Grewal, co-founder of Decant SF. “Our shelves are definitely a lot lighter than usual.”

The champagne department at the Decant SF wine shop on Thursday October 14th, 2021. (Kevin N. Hume / The Examiner)

Yet when Grewal tries to convey this inedible reality to their customers, the warning is often answered with a collective shrug. “They kind of laugh at it like, ‘Oh, champagne problems,’ but it’s like, ‘No, literally,'” she said. “If you know you want to ship 100 bottles or 50 bottles of something, we need to start planning now.”

jwolfrom@sfexaminer.com

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