22 Verti Dr,
Winslow, ME
1-800-232-5798

WINSLOW -- Waterville Window Co. President Donald J. Shirley rents buildings in Oakland and Vassalboro to store the overflow of raw materials for his manufacturing business on Verti Drive.

But two buildings are not enough. He also has a storage facility next to his own home.

His truck drivers have to travel to those three locations on a regular basis to retrieve the products -- a situation that has become an aggravation for Shirley.

It also a sign of his company's success.

Waterville Window, which did $3 million in sales last year, has outgrown its facility.

Even with the off-site storage buildings, Shirley said he had to dedicate the back end of his factory to raw materials.

"We were using too much of our manufacturing facility for storage," Shirley said.

That is the reason for the 10,000- square-foot addition to the factory currently under construction. Shirley, who expects the expansion to be completed by September, said the new construction will allow him to eliminate his off-site buildings and regain much needed manufacturing space.

He said the growth probably will create six jobs, pushing his work force to 36 full-time employees.

Waterville Window builds 11 window systems that it sells to retailers such as Hammond Lumber Co., Ware-Butler Inc. and McCormack Building Supply.

Shirley said window sales are up a bit -- the company produced 37,000 windows last year -- but another reason for the expansion is Waterville Window's recent move to add vinyl railing and fencing for porches and decks to its product line.

Along with completing its traditional product line, the introduction of vinyl railing and fencing is about meeting the needs of customers that do business at local lumber yards and building supply stores.

It also is part of Shirley's ongoing effort to make the company he purchased in 1998 more efficient. Waterville Window began in Waterville in 1953, moving to Verti Drive in 1989.

For most of its history, Shirley said, the window manufacturer based the size of its workforce on the business cycle.

When sales took their normal dive during the winter months, Shirley said the company would typically lay off about half its employees for three or four months.

While this saved on labor costs, the seasonal cuts resulted in the permanent loss of several veteran employees -- they found employment elsewhere -- on an annual basis. This meant time and money had to be spent training new recruits each spring, Shirley said.

Shirley saw stability in the factory as more important than short-term labor savings.

"So when we bought the company," Shirley said, "I made a deal with the employees that even when we slowed down in winter, I'd keep them, so they could stay year-round."

In addition to keeping a stable work force, Shirley put an emphasis on cross training so that each employee is capable of handling a variety of duties. That makes the company more flexible, Shirley said, and eliminates the monotony of an assembly-line approach to manufacturing.

Shirley also invested more in high-end equipment, including a $250,000 glass cutter that greatly reduces the amount of waste glass generated.

"We have automated the shop a lot since 1998," Shirley said. "We've spent a little over $1 million in new machinery updating the shop."

Shirley had hoped the new construction would be completed in May, but unforeseen circumstances pushed back that schedule. Still, that delay is only a temporary aggravation, and Shirley is confident that permanent relief is only a couple of months away.

President Signs Energy Bill with Tax Incentives for Efficient Windows
Window and Door Magazine®
September 2005

Tax credits for energy-efficient windows and doors are part of the 1,754-page energy bill designed to overhaul the nation’s energy policies and reduce dependence on imported oil. In effect for 2006 and 2007, the window provisions cover new construction, remodeling and commercial projects.

“The bill recognizes that America is the world’s leader in technology, and that we’ve got to use technology to be the world’s leader in energy conservation,” noted President Bush at a signing ceremony held in New Mexico in August. He even specifically pointed to the window provisions, adding, “The bill includes incentives for consumers to be better conservers of energy. If you own a home, you can receive new tax credits to install energy-efficient windows and appliances.”

The window tax credit is included as part of an overall credit of up to 10 percent of the total cost of installing building envelope components consistent with the 2000 International Energy Conservation Code. Set forth in Section 1333 of the Energy Policy Act of 2005, the overall credit for consumers upgrading their homes is capped at $500, with a specific limit of $200 set for windows.

For the residential construction market, Section 1332 of the new law offers builders a credit of up to $2,000 for a home that saves at least 50 percent compared to the 2003 IECC, and $1,000 for an Energy Star-manufactured home. Section 1331 includes a credit of up to $1.80 per square foot for commercial buildings designed to use 50 percent less energy than required by the 2001 ASHRAE 90.1 model commercial code. The actual requirements to qualify for these incentives, also scheduled to be in effect for 2006 and 2007, are still to be determined by the Department of Energy.

The new law is said by supporters to refocus the nation’s energy priorities and promote cleaner and alternative sources of energy. “I believe that five years from now, we will look back on an energy bill that will have stabilized energy prices, created hundreds of thousands of jobs, boosted our economy and protected our environment,” said Sen. Pete V. Domenici, R-NM, chairman of the Energy & Natural Resources Committee. “I think in years to come we’ll look back and see this piece of legislation as the birth of clean energy in this country,” said U.S. Rep. Joe Barton, R-TX, chairman of the House Energy & Commerce Committee.

Although passed in both houses of Congress by a large majority, the new law has plenty of critics. On one side are many who support opening the Arctic National Wildlife Refuge in Alaska and a number of other locations to exploratory drilling. President Bush, among others, is still pushing to open these areas up for drilling. Legislation to make that happen is expected to come before Congress this fall.

On the other side are those who argue that more needs to be done to encourage alternative energy sources and energy efficiency. “This bill leaves American consumers and the economy with no real relief,” said Bill Prindle, deputy director of the American Council for an Energy Efficient Economy. “Congress will likely have to revisit key energy issues like oil dependency and natural gas prices again soon.” Lobbyists supporting greater energy efficiency are still promoting a bill in Congress that would provide overall credits of up to $2,000 for upgrades to existing homes.

In signing the new law, President Bush highlighted its importance to the economy. “What this energy bill is going to do, it’s just going to help keep momentum in the right direction so people can realize their dreams,” he said. “What this energy bill does is it recognizes that we need more affordable and reliable sources of energy in order to make sure the economy continues to grow.”
Unprecedented Commitment
The energy bill “makes an unprecedented commitment to energy conservation and efficiency,” Bush stated, pointing to higher efficiency standards for vehicles, household products and federal buildings.  In addition to tax incentives, the bill also includes a number of provisions designed to encourage government agencies and government-funded projects to purchase Energy-Star qualified and other high performance products.

“This bill is not going to solve our energy challenges overnight,” Bush conceded. “Most of the serious problems, such as high gasoline costs, or the rising dependence on foreign oil, have developed over decades. It’s going to take years of focused effort to alleviate those problems.”