An Enlightening Interview with NTCA President James Woelfel

Peter J. Marcucci

Special Contributor

NTCA President James WoelfelIn the relentless search for informative news to present to our readers, the SRG presents the experience and wisdom of James Woelfel in this month’s Pillars of The Industry.   

With over 35 years in the stone and tile industry, James Woelfel is the newly elected President of the National Tile Contractors Association (NTCA), an organization he’s been active in since 2000. James is also the owner of Artcraft Granite, Tile and Marble, in Mesa, Arizona, a tile contracting company installing all forms of tile. 

James, let me begin by offering our congratulations to you on your appointment as President to the National Tile Contractors Association. Your Father, Butch Woelfel, was President of the NTCA from 1985-1987. How has the role of the NTCA changed since then, and what is its current mission? 

“Its mission back then was to bring a little bit of knowledge to the industry with workshops and things like that. At that time it was a southern association. I think about eight years ago, the NTCA had a decision to make; were we going to stay a southern association, or were we going to become a national association? We chose to become national, and since then our enrollment has exceeded a thousand members. 

“Today, our role is training tile contractors in how to run a business, training the next generation of tile installers and keeping our members up to date on new methods and standards for installing stone and porcelain tile. I’m big on standards and methods, and helping tile contractors defend themselves against questionable installation situations. So I’ve spent a lot of time putting those installation standards and methods in the NTCA handbook in 2008. That’s my biggest claim to fame, right now.”

There are many issues from green building standards to installation methods facing the tile industry today. At this time, which ones are at the top of your list?

“Well, installation-wise we’re dealing with big sheets of thin porcelain tile that are five feet by ten feet in size, and installing them without failures is at the forefront of what we’re trying to do. As for green sustainability, what I try to inform the architects and designers about our products is that most tile products are very green, but the ultimate sustainability is never having to rip it out and do it again. That’s the perspective I come from. If you do it correctly the first time, the life cycle should be a hundred plus years for porcelain tiles, and if you only do it once you’re using up less resources. 

“In order to help develop correct installation standards, we have NTCA technical meetings twice a year. We also have four to five meetings per year with tile manufacturers and tile contractors to help develop new standards as well as perfect the old standards. We also offer a workshop program where Michael Whistler and Gerald Sloan travel the country meeting tile contractors and distributors to show them the latest and greatest technology. We’ve done ninety of them so far this year. 

“We’ve also partnered with the Ceramic Tile Education Foundation (CTEF) to certify installers. It’s a hands-on approach to certify that they have the ability to install tiles correctly. A step beyond that is that we, along with the Tile Contractors Association of America (TCAA); the International Masonry Institute (IMI); and the International Union of Bricklayers and Allied Craftworkers (IUBAC), have developed a program to confirm that installers can mud-set floors, walls, install large format tiles and use waterproof membrane correctly. Our mission is to train and educate those installers.” 

What other tough issues do you see the NTCA grappling with during your two-year tenure?

“I see a continued splintering of our industry as it pertains to tile contractors using hourly employees versus contractors, being the biggest right now. You can pay to install tile by the hour, which is what my company does with all of our employees, or you can sub-out work to contractors and pay by the job. As the price pressures keep going down, more and more companies are going to subcontract it, such as the “one shop does it all” type of places. Those companies are beginning to dominate the market.
“Most of them sub-out all their work, and that goes hand-in-hand with the problems that you have with installations. Usually, like anything else, the cheaper the labor, the more problems you have. So the biggest problem right now is that our industry continues to splinter, and it’s really hard to find good hourly employees and talent, period. 

“I find it fascinating that so many people think they have to go to college to become successful. That may be true for a lot of people, but I’m a firm believer that a lot of people aren’t built for college. They would rather go out on their own and do things like this. So if we can convince some of these younger people to get into hands-on industries, like tile setting, and making a really good living without the debt of college, they’ll be out setting tiles for twenty plus dollars per hour, and not flipping burgers for seven. To me, tile setting is a great way to make a good living.

“I’ve had some of my people start as laborers helpers for ten to twelve dollars per hour, and they’re now making twenty-two to twenty-three dollars per hour as tile setters. A few of them, after gaining the needed experience, have even decided to start their own company. 

“I had a guy that worked for me for a few years, and he just emailed me to congratulate me on becoming president and thanking me for the blueprint of my company, because that’s how he modeled his company in Minnesota. He’s already got twelve people working for him, so that’s a success, and I’m always happy with success.” 

That’s a credit to you and a credit to our industry. 

“Thank you! I appreciate that.”

What, if any, government regulations do you see coming through the pipeline during the next 6 years?

“We are already struggling with the affordable care act, but one of the scariest things for a business owner like me is OSHA regulations that continue to get tighter and tighter. Some of the rules are good and some are not common sense. 

“Artcraft Granite, Marble and Tile, like so many other tile contracting companies, have an excellent safety program in place and do everything in our power to protect our people, but I think OSHA is hamstringing the industry and will continue to do so. 

“I’m safety driven, and go to the job sites everyday to inspect my guys and have safety meetings to explain what to look for. But on the flip side, OSHA is starting to make things so onerous, that I’m losing an hour a day, per person, dealing with safety issues that have no common sense: don’t eat the thin-set — don’t eat the grout. So it’s a very difficult balancing act.
“Like I said, I’m very safety conscience, but at the same time regulations like these are increasing the installation costs when people are looking for these costs to go down. So this combination does not work very well together.”

As an industry luminary, what direction do you see the industry going in the next 2 decades?

“A while back I got a call from a gentleman who was one of the heads of robotics at Harvard University. He explained that he was trying to develop a robot that would set tile. I quickly and respectively disagreed with that idea because you are never going to develop a robot that can set tile. You may get a robot to assemble a mosaic on a manufacturing line, but never one that will set tile. It will always be by hand, and by man. 

“The problem I do see, however, is that we will not have enough craftsmen in the future. We really need to be training craftsmen, because when our economy pulls out of what it’s pulling out of, we are going to have such a shortage, it’s not even funny. We can see what is happening, and we should be training them right now.” 

Could you please explain how the production of American porcelain tile has changed since you have been involved in the industry?

“When I was growing up everything was ceramic and quarry-driven in the U.S. Really, the only thing that was porcelain was ceramic-porcelain mosaics that a certain few U.S. manufacturers produced. Porcelain production then moved overseas to Italy, Spain and other countries. You’re now seeing some of that production coming back to the U.S. as well as going to China, Brazil and Mexico.” 

So, in that regard, what do you see happening in the next decade?

“As a tile contractor I never thought I’d have to think about oil prices, government regulations, taxes and everything else. Some of these companies that are coming back to the U.S., if they didn’t see it being profitable by producing porcelain tiles here, wouldn’t be coming back. At the same time, you’re combating China, which has cheaper labor. So does Mexico and so does Brazil. Their labor costs are starting to go up, too, and that’s why it’s becoming more advantageous for international manufacturers to come back to the U.S. I’m hoping that trend continues.” 

So explain how an NTCA membership could help some of our readers?

“Well, if you’re a tile contractor you need to be a member of the NTCA for educational purposes and a position within the industry. We bring a lot of standards to bear in the industry, and we are the birthplace and conduit for a lot of those standards. We go out and do the workshops and I hope do a good job at fighting for the tile contractors who try and stay out of trouble when it comes to standards. 

“The NTCA has actually gone international with two other countries, Australia and Tobago, using our reference manual. Many other countries don’t have installation standards, and they look upon us for them.  

“One of our members came up to me at a meeting in San Antonio and asked, ‘What do you see in the next few years — what do you want to do?’ I replied, ‘I want a bigger international footprint for the NTCA, and I want us to keep doing what we’ve been doing right for the last eight years, especially developing standards and training people.‘” 

What important issues should owners of new or existing companies (especially smaller ones) be most concerned with to ensure their continued viability in a price competitive market?

“I consider Artcraft Granite, Marble and Tile to be a small company. We only employ seventeen people. What I try to do is perfect our niche in the market, and that niche is show up, don’t rush, get it done and don’t create any problems. 

“Many of our installations are very difficult, and I try and perfect that niche. I think the smaller companies, for liability reasons (I know it’s hard to turn a job down), need to discover what they do best and keep doing that. They don’t need to go from zero to a hundred employees in three years. They need to go incrementally to their perfect niche, then perfect it. I think that’s where they can find their highest profitability. 

“I also think that continuing education and training your people is priority, because the better you train your people, the better your company becomes and the more clients will come back to you saying, ‘Your company was really good and didn’t cause us any problems,’ and that’s what you want! Marketing can only go so far. So you want word-of-mouth with general contractors and homebuilders, and that’s what is going to get you where you want to go. 

“I think that a lot of tile contractors are really just tile layers. They know how to set tile, but don’t know how to run a business; that is two totally different things. So we offer our members our Business Manual. It is all about how to run your business professionally and profitably, and we try to update it every year.” 

What does a membership cost per year?

“NTCA membership costs $600.00 per year, but that cost is offset by coupons. You get coupons from manufacturers that total, I think, eighteen-hundred dollars. We pay you to be a member — all we ask for is your time. If you become more knowledgeable in the industry, and you give back, you are going to be a more valuable person to the industry, to your employer or your business.” 

What emerging markets do you see offering great promise, and what is needed by tile contractors to acquire these markets?

“Well, you know, I personally believe that tile should go everywhere—and this goes back to the green and sustainability issues— per square-foot and life cycle cost, tile is lower in cost than any other floor material. Tile, and I keep saying this, is the most sustainable finished product in the world. The age of planned obsolescence is over, and if you do tile correctly, it should last forever. 

“We went through a decade of planned obsolescence where people were constructing buildings, saying they are just going to tear out the insides in five years and replace it anyway! Now, it’s about how long can I make this building last, and how long can it be viable for? Tile is right there, it isn’t an emerging market — using tile is an emerging thought. I think you should have more tile in hospitals. With the new technology in tile production, there are germ killing capabilities within them. 

“I also think thin porcelain tile is the future. When I went to Europe a few years ago to visit a manufacturing plant, I witnessed them making this large tile, from three sixteenths thick to one and a half inches thick, on the same machine. Tile like this is a whole different animal and setting it is different. So education and training is at the forefront of tapping into this market.” 

The building downturn of the last few years really thinned the number of businesses competing for customers. How has the industry comeback affected the tile industry and residential tile installation market? 

“We are seeing less talent and fewer craftsmen out there. Some of the fly-by-night tile companies are where you get most of the customer complaints from. Even as a good tile contractor, we go in with one foot in the grave sometimes. Clients’ think, ‘Oh yeah! I’ve heard this before!’ In their minds we are just as bad as some roofers and others. Unless we can get the end user to understand that a higher front-end cost will help them on the back end, we are going to continue to see this. 

“By that I mean that a good, qualified tile installer, like an NTCA five-star contractor, costs money. We need to educate the homebuilders, architects and homeowners that it needs to be done right the first time, so there are no problems on the back end. A lot of clients’ have a Wal-Mart mentality—it’s not how well you can do it — it’s how cheap can you do it, not realizing on the back end, that if it’s not done correctly you’re going to pay three or four times what you did originally. 

“Sometimes I’m a consultant, and people show me tile showers that failed. They originally got a bid for two-thousand dollars to put the shower in, then come to me and say they’ve had nothing but problems and ask what is it going to cost? I then explain to them, that by the time I rip it out and do it right, it’s going to cost six-thousand dollars and the look on their face is ‘What are we going to do?’    

“There’s an old saying, ‘You can pay me now or you can pay me later.’ 

“Pete, you’re a fabricator—you’ve seen this, too. So we are trying to work with builders, architects and designers to only use qualified installers. We are also trying to be more closely associated with the American General and Contractors Association, National Kitchen and Bath Association, and remodeling associations. Those are the people that are getting the work. As far as homeowners, you’re dealing with a localized thing, and I’m not sure how to attack that yet.” 

James, that said, what direction would you like to see the industry take in the near future? 

“Like anyone else, I’d like to see it more education and quality based. I’d like to see all tile contractors treat themselves as professionals rather than a commodity. 

“Years ago I was a golf pro, and I linked that same attitude back to professional golfers. At the turn of the century, professional golfers were considered, by some, the scourge of the earth. They weren’t allowed in the club house nor allowed to fraternize with the members of country clubs. I think tile contractors have been like that and need to come out of that mindset and take pride in what they do. They need to look professional and take off their street T-shirts when they’re on the jobsite. Not dressed to the nines — just dressed professionally. 

“They also need to give good answers by explaining to the homeowner, builder or general contractor, this is how I do it and this is the reason why I can’t do it this way, and our standards say you’re going to have a problem if I do it your way. You need to be knowledgeable, professional, take pride in your work, and not be ashamed to call yourself a tile installer.” 

So what can people like myself as well as owners do to help promote sustainability within the industry?

“You know my position: the better it’s set — the longer it will last. Installing a job that will last a hundred years is the ultimate sustainability.” 

What other organizations, if any, do you encourage tile and stone contractors to join?

“I think the Marble Institute of America (MIA) does a great job. Coming from the slab-oriented portion in the industry, they’re getting more into the stone tile installation side of things. They are a very good group, and anyone who is familiar with stone should join the MIA. 

“If you’re a member of any association, you can effect change. When I was just a member of the NTCA, before I got all the fancy titles, I was able to effect change such as the handbook. Everybody has that opportunity. I’ve just been fortunate to have had some good ideas, but that doesn’t make me the smartest person in the world. There is always someone smarter and has a better idea, and I always appreciate people who join any organization. Being an active member of an association is going to benefit you in the end.”

Does the NTCA show up at events such as Coverings? 

“My dad was one of the originals that helped negotiate Coverings. He flew to Orlando, Florida thirteen times in one year to meet with the Italians and Spanish. Dad was one of the many people that brought Coverings to life, and we are part owners of the franchise. I watched him effect change. Just one person helped make change in our industry. It was a global change, and that’s why I’m such a big proponent of the NTCA. 

“Every year we do the installation showcase on the floor at Coverings. There are four tile companies that show up, and we actually do an installation of a vignette on the floor. It takes us four days. We also do installation demonstrations on stage as well as seminars. 

“We are also becoming more active in Surfaces, doing seminars and manning a booth at each event. The next one is in Las Vegas January 21-23. (Note: the MIA will also be there.) It’s more of a flooring show, and we see it as a good way to get more exposure on the western side of the U.S. Flooring companies are getting more and more into tile, and many don’t have the education to pull it off.” 

What important facts do retailers as well as installers need to know when ordering or purchasing domestic or imported materials? 

“As an installer, I like to deal with people I know, such as a nationally recognized manufacturer, distributor or locally recognized distributor. That’s who you want to buy from. I don’t like to pick on China, but I would be leery of products that come from them just because of the problems I and others have seen. 

“I think that retailers need to be suspicious when the prices are too good. You don’t get anything for free. Installers also need to know that our standards, as well as the standards of others, are voluntary until you get into a court of law or mediation process. Those standards then become mandatory. Because we are such a litigious society, we are seeing more and more disagreements on things. So you need to know what you installation standards are so you don’t get in trouble. 

“I’ve just finished my fourth deposition in four years as a consultant, not as a representative of my company, and let me tell you what—they attack you on standards — lawyers will attack you on standards. They do enough reading of the NTCA and the American National Standards Institute (ANSI) that they can quote it back to me. So if we can become more knowledge-based and really understand quality over quantity, a lot more installers are going to come out unscathed and getting sued into oblivion. That’s what I’m hoping.”

James Woelfel, President of the National Tile Contractors Association, thank you so much for contributing your time and wisdom to our readers. 

For more information about the NTCA go to www.tile-assn.com.

Peter J. Marcucci has over 25 years of fabrication experience in the stone industry. Send your comments to our Contacts page.