March 2020

By Joel Smith, PMI Board of Directors President, Kohler Co.

Here in my home state of Wisconsin, it’s still very much winter with over a foot of snow on the ground. While most of us are longing for spring by this time each year, there is one thing I still appreciate about the cold and snow. They often force you to stop whatever you’re doing until the roads are clear or the temperature rises. No matter how busy you are or what your plans are, you have to stop and wait out the weather before you resume your routine.

By keeping us inside and limiting our ability to travel, winter in Wisconsin gives us time, and I have found that it’s useful to use this time to reflect. Whether you live in a cold or temperate climate, I think it’s important to schedule time to reflect not only during the winter, but throughout the year. PMI presents you with many chances to do that.

April, May and June will bring us the first few of a series of PMI 2020 events that can provide you with the opportunity to recharge and reflect.

The PMI California Legislative Forum and Fly-In, April 27-28 in Sacramento, will provide you the opportunity to better understand industry issues now being discussed and debated in this bellwether state and to make personal contacts with legislators and regulators who will influence our industry’s future.

The May 12-13 Emerging Water Technology Symposium in San Antonio will showcase the innovation occurring within the water and plumbing manufacturing industries. Co-convened by PMI, the Alliance for Water Efficiency, the American Society of Plumbing Engineers and IAPMO in cooperation with the World Plumbing Council, this meeting is a wonderful learning and networking opportunity for anyone interested in the future of water.

June 22-23 will introduce the inaugural PMI CEO Thinking Forum co-located with the PMI Washington DC Legislative Forum and Fly-In scheduled for June 23-24. The PMI CEO Thinking Forum, designed for CEOs and c-suite executives, will examine the leadership challenges that faced commanders during the Battle of Gettysburg, the largest battle fought in North America. Each participant will learn practical, usable lessons that will benefit their modern organizations and will have the opportunity to reflect and create a personalized leadership philosophy. Executives will engage in open roundtable discussions with fellow leaders to explore strategies that will keep their companies and the plumbing manufacturing industry on a continual path to success.

As the table begins to be set for the consequential November 2020 elections, PMI members will have a front-row seat at the PMI Washington DC Legislative Forum and Fly-In, where they will learn from expert presenters what’s at stake for our industry.

Finally, from Nov. 9-12 in San Diego, the PMI Aspiring Leaders Program will kick off the PMI20 Manufacturing Success Conference. Building on the success of last year’s inaugural program, promising talent from our member companies will sharpen their leadership skills by tapping into their creativity. The following conference is PMI’s most well-known signature event, with participation by individuals from all member companies anticipated.

Various studies have shown a correlation between taking the time for strategic thinking and success, according to a Harvard Business Review article by business consultant and author Dorie Clark. Giving ourselves a bit of downtime and a chance to see things from a different perspective opens doors within our minds.

We rarely stumble into success. Rather, we create success by synthesizing insights, determining strategy, and persevering in the execution of strategic and tactical plans. Today’s culture pushes us relentlessly on the execution and rarely leaves us time or space to pause, reflect or strategize.

It’s up to each of us to assert our need for the personal time and space our professional selves need to be most effective.

It’s important to have time to reflect. Whether it’s snowing or warm and sunny where you live, I encourage you to get outside, go for a walk and start your own reflection. Exposing yourselves to the elements will reinvigorate your body and your mind. Then, when you come back in, start making plans to be a regular participant at PMI’s 2020 events.

By Kerry Stackpole, FASAE, CAE, PMI CEO/Executive Director

Have dinosaurs and humans co-habited the earth together?

Yes, if you count the Jurassic Park movies. I’ll never forget the scene in the first movie in which a jeep carrying the characters played by Jeff Goldblum and Laura Dern is chased by a T. rex. The driver looks into the car’s side mirror with the words “objects in the mirror are closer than they appear” and sees the T. rex bearing down on them.

As KBIS and IBS 2020 fade in our rearview mirrors, we still have impressions of the innovations that will soon be coming our way. While the smart products of the future are not as scary as a dinosaur wanting you for lunch, they do bring a definite feeling of “vuja de” to our industry. Thought up by the late comedian George Carlin, vuja de is “the strange feeling that, somehow, none of this has ever happened before.”

It wasn’t too long ago that you would have been taken away for examination if you were found asking your showerhead to play you a song you could sing along to. Today, that’s only one example of a plumbing product that hadn’t happened before, until recently.

That’s the story of innovation – taking an idea from the realm of imagination into reality. It has happened many times before, and it’s sure to happen again.

PMI members have continual opportunities to see “sneak previews” of what is coming by participating in PMI committee calls and events. Right now, for example, our Technical and Advocacy/Government Affairs Committees are monitoring potential legislation and regulations in several states (see pgs. 4 and 5), as well as the latest developments on tariffs and other issues in Washington, D.C. (see p. 7).

On behalf of its members, PMI has been in contact with influencers and decision-makers in capital cities. The dialogues forged between PMI members, lawmakers and regulators provide individual PMI members with a louder voice together than they would have alone.

These efforts have influenced legislators and regulators in the past and will in the future. In 2019, for example, PMI efforts contributed to the continued funding of the WaterSense program, the removal of proposed amendments calling for a drastic flow rate reduction in Los Angeles County, and more than a dozen tariff exclusions.

These victories protected PMI member investments and avoided disruptions to markets, inventories, production lines and supply chains. But these wins didn’t just happen. The work involved to produce these profitable outcomes was substantial and dependent upon the engagement of our members in all of our committees – Technical, Advocacy/Government Affairs, Allied Member, Commerce, Outreach/Communications, and Water Efficiency and Sustainability.

It’s important for your company to stay engaged with these committees – and with PMI communications such as Ripple Effect, Inside My PMI and the PMI Market Outlook – because objects in the mirror are closer than they appear. Staying involved and engaged keeps you from being caught off guard. It also gives you the opportunity to raise concerns early, before an issue of importance to your company becomes extremely urgent. PMI involvement is an effective early warning system.

In the scene from Jurassic Park, the riders in the jeep were saved because the Jeff Goldblum character heard the T. rex’s footsteps coming. Attending industry and PMI events and participating on PMI committees are ways you can hear footsteps before it’s too late.

Objects in the mirror are closer than they appear. What’s coming hasn’t happened before.

Let PMI help you stay apprised of new developments, and keep the dinosaur at a safe distance away.

Current title and employer: Product Line Manager with Fluidmaster, Inc.

Length of time in the plumbing manufacturing industry: It will be 10 years this year.

My proudest plumbing manufacturing career achievement: Developing and launching Click Seal, a Fluidmaster water supply line connector. We were looking to differentiate our products and make water supply connectors easier to use for consumers. We also wanted to reduce the risk of over-tightening and simplify the installation process. So, we looked to the thinking behind a car’s gas cap, which clicks into place. We were able to turn a commodity product into an innovative product that’s easier for consumers to use.

I started a career in the plumbing manufacturing industry because: I wanted to focus more on knowing what consumers need and managing the business side of things. I started my career in manufacturing engineering, which focused on only one piece of the business. I also worked in the fashion side of plumbing – in kitchen and bath cabinetry – for about five years. Once I decided to dig deeper and understand a more holistic view of the industry and how it works, I earned my MBA to take my career in that direction. In addition, I’ve always enjoyed doing a lot of home repairs, so it was an easy transition into the home improvement industry. I was lucky enough to have Fluidmaster recruit me; I was offered a position with the perfect blend between business experience and an engineering degree. As I like to joke, once you get into the bathroom, you can’t get out!

What is your current role in PMI? What do you hope to accomplish in this role? I became the 2020 co-chair of PMI’s Water Efficiency and Sustainability Committee and hope to better understand efficiency standards and issues and then drive the industry to develop strong water-efficient products for consumers. I was always involved with PMI and found the Tech Talk calls to be very informative but wanted to get even more involved. PMI offers so many great insights and information on flow rates, codes and standards, legislation and safety issues. They’re all such critical pieces of our business. Because there’s a drive around the country to use less water, we need to strike a careful balance between creating products that use less water and perform well for consumers.

I promote PMI within my company by: Sharing all information on changes to regulations from PMI’s Tech Talks in our bi-weekly meetings. That information is helpful when discussing new product requirements and managing our product life cycle. Our customers also appreciate advanced notice of any changes to the state legislation. For example, we reached out to our plumbing wholesale customers in Fort Collins, Colo., when the toilet codes changed from the EPA’s WaterSense minimum performance score standard of 350 grams of solid waste to 600 grams. This advanced notice helped our customers begin to plan and manage their toilet inventory.

Our PMI membership delivers the following benefits to my company: Aside from information on any potential changes to codes and standards, linking with others in the industry is a huge benefit. Without PMI, there would be no connection. Being in the know and having advanced notice of legislation coming down the pike is invaluable, too.

Best career advice I ever received: Always be learning. I practice the continuous learning philosophy handed down from a previous mentor. You can always learn more – and improve upon your craft!

I’m currently reading: “The 80/20 Principle” by Richard Koch. It’s all about how to use your work and personal time more efficiently.

My favorite movie: “Jerry Maguire.” That’s a guy who really stuck with his principals regardless of the ups and downs.

When I face a challenge at work (or in life): I tend to take a step back and look at the macro view – try to get a new perspective on it.

In my spare time: I enjoy spending time with my family, working with my 11-year-old son on his basketball skills (he’s on a club basketball team), and listening to my 7-year-old daughter practice singing and playing piano.

By Judy Wohlt, PMI Communications Team, Valek and Co.

State-level legislative activity has kicked into high gear, adding to PMI’s already large volume of legislative monitoring on issues critical to members – from stricter water efficiency standards to lead level testing in end-point plumbing devices. PMI has added two significant areas to its watch list – consumer data protection and single-use plastic packaging.

The top priority for PMI and its members is California AB2060, a bill proposing changing the testing protocol that defines “lead free” for end-use plumbing devices which come in contact with drinking water. Sponsored by California assembly member Chris Holden, the bill proposes that for end-use devices, “lead free” would mean “not more than one microgram of lead for test statistic Q or R calculated in accordance with section B.8.9 of NSF International/American National Standards Institute (ANSI) Standard 61 and NSF International/ANSI Standard 61 certified, until NSF International adopts an equal or more stringent standard.” The current standard allows for a Q value of not more than five micrograms of lead.

“PMI has been anticipating this and we’ve formed a task group to help develop a strategy to address the proposed changes,” said Matt Sigler, PMI technical director. “One of the largest issues will be to give our industry enough time to comply.” When CA AB1953 changed the definition of lead free and led to the “Reduction of Lead in Drinking Water Act” at the federal level, the plumbing manufacturing industry was given three years to comply, so there is a precedent to be considered, Sigler added. He and Jerry Desmond, PMI’s California government affairs consultant, are spearheading efforts to manage PMI’s response to the bill’s progress.

Reviewing efficiency standards for plumbing products in four states

PMI recently sent letters to lawmakers in Arizona, Massachusetts, Pennsylvania and Rhode Island, where proposed changes to bills on plumbing appliance efficiency standards are being considered. The letters outline PMI’s stance supporting these states’ product efficiency standards being in line with the flow rates of the EPA WaterSense program and offer comments and suggested modifications, including the steps necessary to properly enforce and apply the proposed legislation.

For example, PMI recommended several changes to Massachusetts S2499 on the definitions of showerheads, faucets and body sprays and added a testing method used for measuring water consumption of faucets, showerheads, urinals and toilets. PMI also has Illinois and Maine on its radar for potential changes to efficiency standards bills.

Nearly 100 consumer data protection bills under consideration

With legislation to protect consumer data growing – and more PMI members using technology in their products, PMI is now monitoring 97 state bills on the topic, with a close eye on 32.

“Several of our members have developed technology to measure leaks in the water supply system and use the Internet of Things for products enhanced with voice activation, so they need to be aware of all the rules and legislation about how data can be used,” Sigler stated.

Besides California, where the California Consumer Protection Act was passed in 2019, Washington and New York have the most proposed legislation on consumer data and privacy. PMI is monitoring 10 bills in Washington, including HB2742 and SB6281. Those bills provide consumers with the rights to access personal data collected by a business, correct and delete the data, data portability, and opt out of the processing of personal data to sell or use in targeted advertising.

New York has 22 data privacy protection bills in play, including A5306 and S4012, which prohibit operating a voice-recognition feature without prominently informing users during initial setup and prohibit third parties from selling the spoken word collected by a connected device or using it in advertising.

Some states looking to reduce single-use plastic packaging

While PMI is monitoring 48 state bills on single-use plastic packaging, there are six currently relevant to members. One of those bills, A4850, will require manufacturers to meet certain standards with their packaging in New York state to reduce waste. It also establishes guidelines and sets a timetable by which manufacturers must comply.

Some PMI members are already seeking more eco-friendly packaging to replace single-use plastic packaging, Sigler noted.

As states continue to propose more of these state-focused bills, PMI and its members will need to spend more time monitoring progress and closely following compliance timetables.

“We would like to see something done at the federal level that applies to everyone and provides consistency,” Sigler said. “It makes it more challenging and costly for manufacturers when states each act on their own.”

By Judy Wohlt, PMI Communications Team, Valek and Co.

Do you need to better understand legislative and regulatory issues in California for your work in the plumbing manufacturing industry? Would you like to get to know the lawmakers and regulators behind those issues and bills?

Consider attending PMI’s California Legislative Forum and Fly-In, to take place April 27–28, where PMI members and policymakers will meet to discuss key issues facing the industry.

An important hub of legislative activity, California is often where many policies and laws affecting plumbing manufacturers originate and eventually take on national relevance.

Topping this year’s agenda will be California AB2060, a bill sponsored by California Assembly Member Chris Holden that proposes changing the testing protocol that defines “lead free” for end-use plumbing devices which come in contact with drinking water. (See a more in-depth article on legislative issues on page 4.)

Other topics to be addressed include the California Consumer Privacy Act; draft regulation proposed by the Division of the State Architect that would significantly revise shower bar reinforcement requirements and shower stall slope requirements; and regulatory activities that could impact maximum flow rates in plumbing products. PMI California Government Affairs Consultant Jerry Desmond is working on putting the finishing touches on the agenda with PMI’s Advocacy/Government Affairs Committee.

PMI members interested in attending the event should contact Jodi Stuhrberg, PMI association manager, at jstuhrberg@safeplumbing.org.

The Washington Post recently published two articles featuring advances made in the plumbing manufacturing industry.

The first article, published online on Jan. 30, features several plumbing manufacturing industry experts, including PMI CEO/Executive Director Kerry Stackpole, responding to President Donald Trump’s recent remarks about the performance of toilets and showerheads. Stackpole stated that turning back the clock on water-efficiency regulations would be wasteful, and that “we’re not hearing lots of complaints about showers and shower heads.”

The article also features Bill Gauley and John Koeller of Maximum Performance Testing talking about how soybean paste is used to test toilet flushing performance. They say today’s toilets are able to clear an average of two pounds of paste and paper per flush – four times as much as the old toilets, despite using less than half as much water.

The second article, published online on Feb. 4, examined advances in plumbing technology that have made leaks less likely. This story featured a photograph of a product made by PMI member Viega.

By Judy Wohlt, PMI Communications Team, Valek and Co.

March offers many opportunities for PMI members to celebrate and support diversity in the workforce and innovation in plumbing manufacturing – with International Women’s Day, World Plumbing Day and World Water Day.

“Each for Equal” a call to action on International Women’s Day

Developing and training a diverse workforce is becoming more important as manufacturing companies, including plumbing manufacturers, are stepping up their efforts to innovate and fill vacant positions caused by a tight labor market.

International Women’s Day on March 8 is a great reminder that building a diverse workforce and hiring more women is good for business, according to the International Women’s Day website.

Recent research proves that point. Companies with a “culture of equality” produce innovation levels six times their peers, states a Universum e-book on “Women in STEM: Untangling the Myths.” The book also cited a recent study by the Wall Street Journal revealing that the 20 most-diverse companies on the S&P 500 deliver better operating results compared with lower-scoring firms.

Some PMI members have been boosting their inclusion plans by creating programs and supporting organizations that focus on women and diversity in the workforce. For example, as part of its TradeUP initiative to attract more young people to plumbing careers, PMI member LIXIL has partnered with Tools and Tiaras (toolsandtiaras.org), a group that helps girls learn trade skills. Take a look at a video about the program and partnership.

Kohler Co., another PMI member, offers business resource groups (BRGS) to “create a more diverse and inclusive workplace,” according to the company’s website. Women@Work, Kohler’s largest BRG, includes several global chapters working to encourage an inclusive environment that supports women who share similar and diverse experiences, perspectives and challenges.

While International Women’s Day is officially celebrated in March, businesses and others are encouraged to keep the global campaign going throughout the year. This year’s theme “Each for Equal” supports a call to action for accelerating gender equality. PMI members and others can post their International Women’s Day messages using the hashtag #IWD2020 and #EachforEqual on social media and post photos using the “hands out” equal pose (internationalwomensday.com/2020Theme).

Get tools to promote World Plumbing Day

PMI members can celebrate World Plumbing Day on March 11 to promote the link between quality plumbing and strong public health, environmental sustainability and economic prosperity.

Several important facts, shared on the World Plumbing Day website, drive home the importance for further developing water infrastructure and innovative plumbing products around the world: three in 10 people worldwide (2.1 billion) lack access to safe, readily available water at home; six in 10 people (4.5 billion) lack safely managed sanitation; and 900 million school children have no handwashing facilities – a critical barrier needed to stop the spread of deadly diseases.

Need inspiration to promote World Plumbing Day at your facility or company? Take a look at several resources, including fact sheets, posters, social media posts and a PowerPoint presentation template for schools, on the event website.

Remember to post your activities and messages on social media using the hashtag #WorldPlumbingDay and follow World Plumbing Day on Twitter (twitter.com/WPlumbingDay).

UN World Water Day: water efficiency will reduce greenhouse gasses

UN World Water Day 2020 focuses on water and climate change – and how the two are directly linked. It also highlights how using water more efficiently will reduce greenhouse gases.

Climate change has spurred extreme weather events, reduced the predictability of water availability and affected water quality worldwide, according to the UN-Water Policy Brief on Climate Change and Water.

The UN encourages everyone to get involved on World Water Day, March 22, and throughout the year by organizing events, such as touring a wastewater treatment plant, sharing key messages and starting conversations on social media, and simply learning more about water and climate change.

What are your company’s plans to promote these special days in March?

By Judy Wohlt, PMI Communications Team, Valek and Co.

Thanks to the combined efforts of PMI, its member companies and coalition partners, several more plumbing-related products and components of Chinese origin received tariff exclusions from the Office of the United States Trade Representative (USTR).

Since the trade war between the U.S. and China began in 2018, PMI has been working diligently on behalf of its members to gain these exclusions – with some solid wins.

Gaining the exclusions means more than a dozen plumbing products on List 3 of Section 301 tariffs will not be subject to 25% additional duties retroactive to Sept. 24, 2018, and valid through Aug. 7, 2020. The products include certain copper bath and shower faucets, brass and copper water pressure valves, and brass toilet paper holders with chrome or nickel finishes. PMI is working on getting the exclusion period extended. View the USTR notice and list of exclusions (plumbing-related products are listed numerically from 49-72) on the USTR’s website. The exclusions process is now closed for List 3.

“The tariffs exclusion process is extremely challenging and requires a lot of data and effort to fill out the forms,” said Stephanie Salmon, PMI’s federal government affairs consultant. Even if you do everything by the book, present a strong case and submit testimony to the USTR, there’s still a chance you will not achieve the exclusion, she said. USTR examines whether the product is available only from China, whether the tariff would severely harm the requesting firm or other U.S. interests, and whether the product is strategically important to the “Made in China 2025” program or other Chinese plans.

Salmon works with PMI’s Advocacy and Government Affairs Committee, providing monthly updates on tariffs and other important federal issues affecting the plumbing manufacturing industry. She also worked closely with PMI CEO/Executive Director Kerry Stackpole and PMI members to develop testimony and comments filed with the USTR in August 2018 and June 2019 on Section 301 List 3 and List 4A tariffs.

The volume of product exclusion requests vs. the number of exclusions granted shows how challenging the process can be. From a total of 45,500 applications for exclusions from Lists 1, 2, 3 and 4A of the Section 301 tariffs, the USTR granted 5,126 – an approval rate of only 11.2% as of January 2020 (before the List 3 product exclusion announcement was made), according to a report from Salmon.

The exclusion process starts when an individual company files a formal request to the USTR. The request is publicly posted on regulations.gov, according to a USTR guide on “How to Navigate the Section 301 Tariff Process.” The public then gets 14 days to file responses to the request for product exclusion. After that, a company has seven days to reply to any responses received either supporting or opposing the request, states a 2018 USTR news release. The release also said the USTR makes decisions on a case-by-case basis and may consider whether a product is available from a source outside of China and whether additional duties would cause severe economic harm to the requestor or other U.S. interests.

The USTR recently started the exclusion procedures for products on List 4A of the Section 301 tariffs. This list covers several plumbing products and fittings, including ceramic and porcelain sinks and bathtubs and ceramic toilets and urinals, showerheads and several other components, Salmon added. Several PMI members have requested multiple exclusions. The period for submitting List 4 exclusions closed on January 31. PMI along with member companies Moen Incorporated, Water Pik, Inc., Pfister, and American Standard Brands testified in June 2019 in opposition to the List 4A tariffs. These tariffs have been recently reduced from 15% to 7.5% under the “phase one” deal signing in January. While this reduction was a welcomed step in the right direction to relieve some of the burden, the Trump administration must negotiate a phase two deal that lifts all tariffs, noted Stackpole.

Despite the phase one deal, nearly $12 billion in imports from China in December 2019 remained subject to 25% tariffs. In addition, there were $8 billion in imports from China in December that continued to face 7.5% tariffs after the phase one reduction. Recent data from Tariffs Hurt the Heartland shows that U.S. companies and consumers have paid an additional $50 billion in tariffs since the trade war began in February 2018 through December 2019.

For the past two years, PMI has been active in the Americans for Free Trade Coalition (americansforfreetrade.com), a group of more than 150 associations from every sector of the economy united in their concern about the negative impacts that the tariffs continue to have on U.S. businesses, workers and consumers.

PMI has hosted several webinars presented by international trade experts to review and offer tips on how to navigate the product exclusions application process for imports under Lists 3 and 4 of the Section 301 tariffs. PMI members can view the webinars on PMI’s website.

PMI also addressed tariffs in meetings with lawmakers and staff, such as during the PMI Washington DC Legislative Forum and Fly-In in 2018 and 2019. Trade will once again be a key priority issue during the June 2020 DC fly-in.