Utility Contractor - 10 Oct 2009

O C TO BE R 2 0 0 9 C O N TE NTS

October 2009 | www.utilitycontractoronline.com

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Mobile Metal Gear By Jason Morgan Battling through the troubled truck market.

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Predicting Your Business Future By Brad Dawson The five stages of strategic business planning.

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Utility Contractor’s Salute to the Minnesota Utility Contractors Association By Jason Morgan We tip our hats to one of the hardest working chapters in NUCA.

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Track It Out By Jason Morgan Mighty tracked trenchers tackle utility installations.

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Utility Contractor | October 2009

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DEPARTMENTS 8

Groundbreaking News

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Calendar

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The Pipeline

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Advertisers’ Index

NUCA DEPARTMENTS 6

President’s Message

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Utility Construction EXPO ‘10

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Inside Washington

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Safety Management

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NUCA News

BENJAMIN MEDIA

Publishing Team

NU CA P R ES I D EN T’ S ME SSAGE

Show Up and Speak Up!

“S

eize the day,” wrote Roman lyric poet Horace. It was good advice some 2,000 years ago and it’s good advice now. It’s advice I long ago decided to take with regard to expressing my views to my representatives in Washington. As a utility contractor I have a unique perspective on the abysmal state of our nation’s underground infrastructure — literally the view from the trenches — and as a small businessman, I know what it takes to keep a company afloat in today’s economy. To make informed decisions on my behalf, these lawmakers need to hear what I have to say and at every opportunity that presents itself. As President of NUCA, I’ve had the privilege of speaking before several congressional committees on infrastructure and small business issues. As a NUCA member, I’ve visited my state’s representatives in their Capitol Hill offices during the association’s annual Washington Summit. Is all that enough? Not in my opinion. There are a multitude of opportunities worth seizing in my own backyard. It’s just a matter of translating concern, and in some cases anger, into effective political action. Let me give you an example. Recently, I read that my congressman, Kurt Schrader (D-Ore.), was holding a few public meetings in the district. One was going to be held in the food court of a local shopping mall on the upcoming Saturday — an ideal opportunity to get a little more face time with him. We had met previously in his Washington office during the Summit, and when I testified before the Small Business Committee, he had, at my request, introduced me. I arrived at the mall and discovered that I needed to fill out a sheet of paper outlining my issues. When the congressman walked into the mall, he immediately recognized me and I was able to use that opportunity to thank him for the congressional introduction. By talking to his staff, I was able to have my paper moved to the last slot, which I hoped might give me more than the three minutes allowed each constituent. Since everyone else was talking about health care, I purposely avoided that topic and concentrated on making a case for sewer and water infrastructure funding and, using my own company as an example, explained why changing the current laws governing the process of unionization was a case of fixing something that wasn’t broken. I understand that due to economic restraints, it is difficult for most people to travel to Washington, D.C., to talk to his/her congressman or senator, but it is possible to personally interact with these folks if one stays vigilant for opportunities at home and then acts on those opportunities. We can and do make a difference when we show up and speak up.

Publisher Bernard P. Krzys — [email protected] Associate Publisher Robert D. Krzys — [email protected] Editor James W. Rush — [email protected] Managing Editor Keith Gribbins — [email protected] Associate Editor Jason Morgan — [email protected] Contributing Editors Sharon M. Bueno — [email protected] Bradley Kramer — [email protected] Pam Stask — [email protected] Creative Director W.M. Conley — [email protected] Graphic Designer Elizabeth C. Stull — [email protected] Marketing Manager Pete McNeil — [email protected] Regional Sales Representative Ryan Sneltzer — [email protected] Circulation Manager Alexis R. Tarbet — [email protected]

NUCA

Officers President Lyle Schellenberg — Salem, Ore. President-Elect Dan East — Albuquerque, N.M. Senior Vice President Ryan Schmitt — Jacksonville, Fla. Treasurer Alex Paris — Atlasburg, Penn. Secretary James Barron — Joppa, Md. NUCA

Vice Presidents Bill Bocchino Jacksonville, Fla. Virginia DiCristofaro Warwick, R.I. Chuck Dimick Las Vegas, Nev. Glenn Ely Newtown, Pa. Alan Gravel Powder Springs, Ga. Florentino Gregorio Washington, D.C. Ricky Harp Fayetteville, Ga. John Letourneau Duluth, Minn. Ron Nunes West Warwick, R.I.

Chad Reed Dover, Del. Dave Rice Henderson, Nev. Mark Scoccolo Pacific, Wash. Mike Smith Albuquerque, N.M. Keith Steen West Point, Ga. Bruce Wendorf Punta Gorda, Fla. Andy Wolf Davenport, Iowa Kirk Woodward Phoenix, Ariz.

NUCA

Staff Regards,

Lyle Schellenberg

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Chief Executive Officer Bill Hillman — [email protected] Chief Operating Officer Linda Holtz — [email protected] Director of Communications Susan Williams — [email protected] October 2009 Volume 33, Number 10 Utility Contractor (ISSN 1098-0342) is published monthly for the National Utility Contractors Association by Benjamin Media Inc., 1770 Main Street, PO Box 190, Peninsula, OH 44264. Periodicals postage paid at Peninsula, OH and additional office. Subscription price: $1.50 per issue, $15 per year. Foreign subscriptions: $3 additional per year. Subscription rate for members is $15, which is included in the dues. ©2009 NUCA. All rights reserved by the National Utility Contractors Association for articles contained herein except where otherwise noted. No part of this publication may be reproduced or transmitted by any means without written permission from the publisher. Printed in the U.S.A. POSTMASTER: Send address changes to: Benjamin Media P.O. Box 190 Peninsula, OH 44264-0190 USA. Canadian Subscriptions: Canada Post Agreement Number 40040393. Send change of address information and blocks of undeliverable copies to Canada Express; 7686 Kimble Street, Units 21 & 22, Mississauga, ON L5S 1E9 Canada

G R O U N D B R EA K I N G N E W S

Construction Equipment Exports Dip

These are strange economic times. If the economic fallout has showed us anything, it’s that we are a global economy — when there’s a drastic change in one nation’s economy, it affects the others. U.S. construction machinery exports dropped 36 percent during the first half of 2009, with $6.4 billion shipped to global markets compared to $10.1 billion at mid-year 2008, according to the Association of Equipment Manufacturers (AEM). All world regions recorded double-digit declines in construction equipment exports for the first half of 2009, led by Europe and Canada. • Exports declined 53 percent to Europe for a total $777 million and dropped 45 percent to Canada for a total $1.8 billion. • Exports to Asia decreased 30 percent to $939 million. • Exports to Central America dropped 21 percent to $662 million, with a lesser decline to South America — minus 14 percent for a total $1.2 billion. • Australia/Oceania’s export purchases decreased 42 percent to $497 million, while Africa took delivery of $528 million worth of construction equipment, a 24-percent drop. “U.S. exports of construction equipment began to erode in third quarter 2008 with the worsening global recession. We’re an export-intensive industry and the continuing decline is especially detrimental since we’re also experiencing steep cuts in domestic business,” stated Al Cervero, AEM Senior Vice President. “The U.S. 8

Utility Contractor | October 2009

government has been using various economic stimulus measures to jump-start the economy. The economic stimulus package has fallen short for construction machinery manufacturers. But, free trade increases exports and stimulates the economy. It helps keep American manufacturers in business, providing American jobs and economic resources to communities, states and the nation.” AEM urges Congress to pass the free-trade agreements already completed and to leave NAFTA alone, Cervero noted. “Other nations are joining in free trade agreements with each other, and we are being left behind,” he said. “We also need to get our roads and bridges and other infrastructure in good condition so we can move goods to market more efficiently. China and many other nations realize the connection and are spending much more on infrastructure than we are — China’s 9 percent of GDP, for example, compared to 0.93 percent for the United States. We need to be sure U.S. manufacturers have access to business around the world, as other nations ramp up their infrastructure funding to better compete on a global scale,” Cervero added. The top 10 countries buying the most U.S.-made construction machinery during the first half of 2009 were: (1) Canada — $1.8 billion, down 45 percent; (2) Mexico — $510 million, down 6 percent; (3) Australia — $473 million, down 43 percent; (4) Chile — $425 million, up 5 percent; (5) South Africa — $231 million, down 38 percent; (6) Belgium — $222 million, down 39 percent; (7) Brazil — $216 million, down 16 percent; (8) China — $210 million, down 6 percent; (9) Peru — $177 million, up 1 percent; and (10) Colombia — $168 million, up 27 percent. India came in at No. 16 with $76 million worth of construction equipment purchases, a 33-percent gain compared to midyear 2008. No.18 was Russia at $67 million, a drastic decline of 71 percent from the first half of 2008. The AEM off-road equipment manufacturing trade group consolidates U.S. Commerce Dept. data with other sources into global trend reports for members.

GR OUND B R E A KI NG NEWS Regulating Emissions John Deere Employs New Engine Technologies to Meet EPA Requirements John Deere will use cooled exhaust gas recirculation (EGR) engines with exhaust filters consisting of a diesel oxidation catalyst/diesel particulate filter in its construction equipment to meet the 2011 Interim Tier 4 (IT4)/Stage III B emissions regulations mandated by the Environmental Protection Agency (EPA) for diesel engines 174 hp and above. “We’re looking to provide the simplest IT4 solution for equipment users, all while delivering the productivity, uptime and low daily operating costs that customers expect from Deere,” said Joe Mastanduno, Product Marketing Manager, Engines and Drivetrains, for John Deere Construction & Forestry. “We believe cooled EGR with exhaust filters is the right technology right now.”

Stage III A cooled EGR diesel engines and has the highest field population of cooled EGR engines currently operating. Extensive testing in key products featuring these engines, such as the 350D excavator, 700J crawler dozer and the new 772G motor grader, has shown a 10-percent or greater advantage in “material moved per fuel used” over competitors.

“Our field experience has also proven that John Deere cooled EGR engines operate efficiently with traditional low-sulfur diesel fuels as well as B5 to B20 biodiesel blends,” Mastanduno said. “We’ve seen optimal performance with fuel-choice flexibility, and Deere dealers will be highly trained to service and support these new engines and optimize total vehicle efficiency.”

The new John Deere Power Systems engines will utilize EGR to meet the emissions standards. Testing has already started on machines like this 350 D excavator.

Deere’s approach to the IT4 solution builds upon the current clean burning and fuel efficient Tier 3/Stage III A PowerTech Plus engine platform manufactured by John Deere Power Systems. The John Deere cooled EGR engine platform for IT4 compliance is simpler, more operator friendly and less complex to maintain compared with selective catalytic reduction (SCR) systems, said company officials. “Unlike SCR, this IT4 solution doesn’t require liquid urea to achieve emissions compliance, so there are no additional fluids to worry about obtaining, filling or storing on remote jobsites at proper temperatures,” Mastanduno said. “EGR is a single-fluid solution and that fluid is diesel fuel.” John Deere was the first manufacturer to widely commercialize off-highway Tier 3/

October 2009 | Utility Contractor

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G R O U N D B R EA K I N G N E W S Constructing the Future Doosan Infracore’s Sleek Excavator Concept Wins Award Equipment concepts excite our ideas of how wondrous the machines of the future could be, and Doosan Infracore’s sleek concept excavator, the “CX,” sparked enough awe to win the Best of the Best Award at the 2009 Reddot Design Award Show. More than 2,733 designs were entered, from 61 countries, and 206 were honored at the Reddot Design Award, which awards products that are creative, innovative and superior in quality. Out of these awarded designs, only 15, including Doosan Infracore’s futuristic concept excavator, were presented with the Best of the Best Award. Out of those 15 Best of the Best Awarded designs, only one will be presented with the honorary Luminary Award on Nov. 24, 2009, in Singapore.

Doosan Infracore’s futuristic concept excavator was well received by the judges for its EcoTransformer concept, which reflects four core benefits — ecology, safety, usability and efficiency. The excavator is designed to function at the highest level at various working sites, be environmentally friendly with energy-efficiency and exhibit high performance even in severe conditions. Development of this futuristic excavator is targeted to finish by 2018. The Reddot Design Award was Doosan Infracore’s “CX” design is among the Best of the Best. However, no word on the inclusion first started in 1955 and is manof a flux capacitor or hyperdrive functions. aged by Design Zentrum Nordtop three industrial design competitions heim Westfalen in Germany. This award is given after the world’s biggest de- along with the iF Design Award and the sign competition and is one of the world’s IDEA Design Award.

Tracking Tools When you’re trying to save every penny, you can’t have tools walking off the jobsite. That’s why Dynamic Systems Inc., a Redmond, Wash., software developer specializing in data collection applications for the construction industry, offers a low-cost tool manager program based on bar code technology. Bar code data collection has been proven to be the most accurate and efficient method of tracking or counting tools and equipment. One minute checking a tool out or in can save you the cost of a lost or stolen tool. Barcode technology has been actively used for over 20 years in manufacturing, distribution and retail to track inventory and jobs. The barcode terminals are similar to PDAs and provide immediate and accurate information. There are barcode labels designed for harsh environments that are durable enough to withstand the dirt, grease and rough use that many tools experience.

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When the Powers Combine Navistar and Cat Joint Venture Creates New Company The joint venture between Navistar International Corp. and Caterpillar Inc. that was announced over a year ago in June 2008 has finally closed, creating a new company — NC2 Global LLC — to serve the global commercial truck market. The leadership team of the new entity will establish its headquarters in the Chicago area. “Together, Navistar and Caterpillar have moved this project from concept to reality in little more than one year,” said Al Saltiel, President of NC2. “We now have a dedicated and experienced leadership team that will hit the ground running.” Saltiel brings a wide range of global distribution and marketing experience to NC2. As Vice President of Marketing and head of Navistar’s marketing efforts since 2004, Saltiel was responsible for all brand, product and pricing strategy. Prior to joining Navistar, he held key senior marketing positions at Sony Electronics, Jaguar and Ford’s Premier Automotive Group. “NC2 will produce and market a full line of commercial on-highway trucks for markets outside of North America,” says Saltiel. “Customers will benefit from the unparalleled depth and scope of support provided by Navistar and Caterpillar’s global dealers.” As previously announced, the 50/50 joint venture will develop, manufacture and distribute commercial trucks with an initial focus on markets including Australia, Brazil, China, Russia, South Africa and Turkey. NC2’s product line will feature both conventional and cab-over truck designs and will be sold under both the Cat and International (Navistar) brands. “The formation of this joint venture represents a long-term strategic decision,” said Caterpillar Group President Doug Oberhelman. “Despite the current challenges facing the global economy, both Caterpillar and Navistar are dedicating the right people and investing significant resources to ensure NC2’s long-term success in the global on-highway truck market.”

G R O U N D B R EA K I N G N E W S Robotic Bobcats Meet a New Kind of Military Machine

SJC-equipped loader used in the rough manner the military requires,” said Dr. William Ribich, President of the Technology Solutions Group. “The kit gives the war-fighter and bomb disposal teams tremendous flexibility in a cost-effective manner, given the low cost of the Bobcat loaders manufactured in high volumes for civilian uses compared to customized robots built in small numbers just for counter-IED activities.” The robotics kit for Bobcat loaders includes seven cameras, a microphone to enable the remote operator to hear ambient sound from the cab, three different CREW 2.1 compatible radio options, three control options (laptop, wearable and table top), green and yellow warning lights to signal robotic engagement, an anti-rollover warning system and emergency manual shut off switches on the vehicle and on the control panel that support remote restart. The kit’s hardened electronics are rated at 156 degrees fahrenheit to handle the solar load in places like Iraq and Afghanistan and have passed rigorous MIL-STD-810F environmental testing. Cameras include five mounted on the roof, one in the cab and one on the vehicle looking at the load. Night vision is provided by IR Illumination and thermal imaging in addition to the white lights on the Bobcat loader itself.

Skid steers — often referred to as the “Swiss Army Knife” of construction equipment (much to the chagrin of construction equipment magazine editors) — can now tackle a new jobsite task. But this time, it’s not material movement, digging or demolition. It’s finding improvised explosive devices (IEDs) on the battlefield. QinetiQ North America, makers of the TALON robots used extensively to defuse roadside bombs in Iraq and Afghanistan, announced a new large-scale robotic technology that it has developed jointly with Bobcat Co., a manufacturer of Bobcat compact loaders. QinetiQ North America’s Technology Solutions Group has developed a kit that can be installed in about 15 minutes on any of 17 models of Bobcat skid steers, all-wheel steers or compact track loaders that are equipped with the selectable joystick controls (SJC) option. This temporarily turns the loader into a remotely-operated “robot” capable of using more than 37 Bobcat-approved attachments. The loader can be sent down-range to handle large, deep-buried IEDs that require actual excavation to dislodge or a bucket to lift and remove. In Afghanistan, where there are reported to be more than 100 million mines, Bobcat loaders could also be used to remotely render safe mines on building sites. Upon completion of a mission, the kit is removed and the machine reverts to “in the seat” operation. The kit can be swapped from one SJC-equipped Bobcat loader to another by the user, allowing the mission to dictate what size machine to use along with the specific attachment works best. “Other companies have roboticized individual pieces of earth-moving equipment, but until now, no one has created a universal kit that can quickly remotely Skid steers can do it all, but now they can do it without an operator in the seat thanks to QinetiQ North America’s control any Bobcat robot kit. It’s designed to help identify and defuse improvised explosive devices (IEDs) on the battlefield. 12

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The Key to Predicting Your Business Future BMI Educational Webinar Series Presenter: Brad Dawson, Managing Director of LTV Dynamics Date: October 20, 2009 Time: 2 p.m. EST Registration: www.benjaminmedia.com/webinars Sponsored by Utility Contractor

Cost: FREE

Strategic planning has become an annual administrative rite. Every year, contractors brush off last year’s plans and doggedly seek to update their strategies. Once completed, the task, like filing tax returns and conducting employee reviews, is checked off for another year. What value do you really get from that sort of current planning process? When done correctly, strategic planning is a dynamic and invigorating process. New market opportunities are explored and competitive threats vanquished. A true strategic plan however is not an annual event. It is an activity that is tied to your business cycle – a period for contractors that extends for approximately 5 years. Brad Dawson, Managing Director of LTV Dynamics, gazes into his crystal ball to provide participants with a clear explanation of the five phases of the natural business cycle and pinpoints the exact location their business is in with regards to this cycle. Now is the time for growth.

Predicting Your Business Future

The Five Stages of Strategic Business Planning By Brad Dawson

trategic planning has become an annual administrative rite. Every year, contractors brush off last year’s plans and doggedly seek to update their contentss . On n ce c o mpleted, the task, like filing tax returns and c on nducttin ing n g em e pl p oy oyee eee rev evv ie iews wss , iss checcke k d off forr an a otthe herr ye year. What value do yo you u really ly g e from get om m you ourr current cu plannii ng process? When done correctly, strategic planning is a dynamic and invigorating g g process. p New market opportunipp ties are explored and competitive threats vanquished.

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A true strategic plan, however, is not an annual event. It is an activity that is tied to yourr b buss iness cycle — a period for contractors that extend n s fo nd forr approxim mattel elyy five years. The business cycle is a seriies of five v pha hase ha ses, se s, eac s, ach h with a prediccta tabl blee time dur bl urrat atio ion io n. Contractorss aare re lit iter eral er allly able to o pre r di dict ct busin inesss bo booms and busts with th h a high degree of accuraccy and craft effective strategic plans to achieve desired results. Understandingg yyour business cycle y is the key to unlocking your strategic advantage.

The “R” Cycle Before you can exploit the business cycle, you need to understand its components. Enter the “R” Cycle. Every business cycle begins with the Research Phase. During this phase, contractors and suppliers develop new products and services, test these offerings in the marketplace and identify specific tactics to ensure offering success. As the strategic phase of the cycle, the Research Phase’s primary success characteristics are high levels of market savvy and competitive intelligence. The typical duration for this phase is approximately six months. The second phase of the business cycle is the Release Phase. This phase, referred to as the “market bet,” is characterized as the period when new offerings are released to the entire target market population. Aggressive marketing and sales campaigns are enacted — spending all or most of the available funds of the business. The typical duration for this phase is six to 12 months. The favorite phase of every contractor is the Reward Phase. Lasting approximately two years, this phase is characterized by sharp increases in revenues (but not always profits). It comes with high levels of owner euphoria that, in some cases, creates a false sense of never-ending success. However, because the business is in a cycle, this phase eventually does come to an end — much to the chagrin of every owner. Revenues generated from the Reward Phase are used to start the Reinvest Phase — the next phase in the business cycle. Flush with cash and high levels of owner confidence reinvestments are made to the infrastructure, employee base and, in some cases, other businesses are acquired. Investments during this phase are expected to strengthen the overall business structure, extend the euphoria of the Reward Phase and begin to position the business for the last phase of the cycle. The duration of this phase is approximately one year. Every business cycle concludes with the Rework Phase. At this point in the cycle, revenues have dropped off – usually quite dramatically from the Reward period. Business transformation is necessary to ensure an effective transition to the next business cycle. During this phase, contractors reinvigorate strategic planning efforts and carefully explore industry paradigm shifts. The duration of this phase is approximately six months.

Your Competitive Transformation Where is your industry evolving? What customer needs are not being met? What other industries are beginning to impact your business activities? How does your business need to change to take advantage of your evolving market? These are the questions that the contractor faces as he or she enters the Rework Phase of the business cycle. This is

the phase where transformation must occur to successfully enter the next business cycle. This is where the competitive advantage is born. Business transformation can occur vertically or horizontally. Vertical transformation relies on maintaining a subset of your existing customer base and adding niche offerings that satisfy a smaller, more unique, customer type. This vertical transformation approach refines the business’ offerings, reduces the number of potential customers and increases the service rates. Horizontal transformation occurs when businesses look sideways to those industries that are performing services that fit under a broader umbrella of customer service. During recessionary periods, it is a common practice to acquire related businesses as a means to expand a customer base, diversify a scope of offerings and increase the size of the employee workforce. Businesses that practice horizontal transformation during a recessionary period often achieve exponential growth during the subsequent business cycle. In a typical contractor business, you must transform your business at least every five years to remain competitive. Business stagnation places you at a competitive risk — where other businesses will evolve beyond your current offerings.

Leveraging Your Customer’s Position Knowing where your customers reside in their business cycle provides you with a competitive edge as purchasing decisions change based on the prevailing phase. During early phases of the cycle, potential customers have very little discretionary cash making sales a long and expensive process. In fact, attempting any form of new customer acquisition while a targeted customer is in the initial phases of their business cycle is usually met with failure – regardless of your value proposition. Later, as your customer evolves into the Reward and Reinvest Phases, purchasing decisions are often expedited with lower levels of vendor scrutiny. It is during these phases that new customer acquisition is most successful. Flush with cash, customers are more open to examining value proposition messages and incorporating vendor promises into their “expansion” plans. You become part of your customer’s growth solution. Customers acquired during the Reward and Reinvest Phases can be extended as paying relationships through every other phase in the business cycle. The key is to refine your product and service offerings to match your customer’s needs as they evolve through their business cycle.

Exploiting Your Competitor’s Cycle The competition is constantly working to take your customers away. Successful businesses use the “R” Model to pinpoint a competitor’s cycle position and, subsequently, implement strategic counter tactics leveraging the weaknesses inherent in every phase. October 2009 | Utility Contractor

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If your competitor is in the initial stages of its business cycle, capital resources are being used to introduce new offerings to the market. You have an ability to piggyback the efforts of your competitor by following a “me too” market strategy. Under a “me too” market strategy, a business relies on the research results of the competitive firm and follows their lead into the marketplace. The business saves the costs of conducting their own research but also runs the risk of not having any tangible results to support their market strategy. When your competition is in the Reward or Research Phase, there is still an opportunity to beat them – even during this cycle peak. Businesses that are enjoying the spoils during these phases often start to take their customers for granted. Customer service begins to fall off as these businesses seek to increase their customer base. Lower tier customers, frustrated by a lack of attention, seek alternative businesses to satisfy their requirements. Referred to as “low-hanging fruit,” these unhappy customers make ideal additions to a business that is not enjoying the benefits of the Reward and Research Phases.

Getting Stuck in the Cycle

or small contractors that constantly feel like they are starting over every year, the problem is not with the cycle. The issue is that the product and service offerings are perceived to be of limited, if any, value by the marketplace. The initial phases of the cycle are being short-changed. Most contractors try to extend the Reward Phase of the business cycle. Unfortunately, the Reward Phase is only a single component of the cycle that will, eventually come to an end. Contractors caught up in this phase miss the importance of the Reinvest Phase and are unable to effectively position themselves for the Rework Phase — the most important phase to ensure your business’ success for the next business cycle. As a result, it is commonplace to see businesses only remain in operation through a single business cycle. The business cycle is a predictable event that can be leveraged for your competitive advantage. The key is to realize that each cycle phase can be used to increase customer rosters, defeat competitors and strengthen your own business. The “R” Model is a powerful tool that identifies phase characteristics and indicates when a phase is coming to its natural end. When used correctly, the “R” Model predicts the future of any business.

Failure to effectively execute the requirements of each business cycle phase can stop a business dead in its tracks. While each phase has its own evolutionary characteristics, trying to operate your business outside these confines can derail even the very best businesses. It is not uncommon for some businesses to never evolve beyond the Release Phase. For entrepreneurs

Brad Dawson is an internationally-recognized business strategist and growth-oriented financial management consultant. He is a frequent speaker at business events and serves as a contributing writer to several international management and leadership publications. He can be reached at [email protected]

More Future Predictions BMI Webinar Educational Series Presenter: Brad Dawson, Managing Director of LTV Dynamics Registration: www.benjaminmedia.com/webinars

Date: October 20, 2009 Time: 2 p.m. EST Sponsored by Utility Contractor

Cost: FREE Want to hear more from Brad Dawson’s thoughts on strategic business planning? Brad Dawson, Managing Director of LTV Dynamics, gazes into his crystal ball to provide participants with a clear explanation of the five phases of the natural business cycle and pinpoints the exact location their business is in with regard to this cycle. Brad will reveal a custom Corporate Value Calculator Tool that will show business owners how to determine their current business value and, by developing various growth scenarios, see the impact of those decisions on their business value.

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Battling Through the Troubled Truck Market By Jason Morgan

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ose-diving sales, bankrupt companies and government bailouts have all taken their toll on the long, tough road of a downward spiraling truck market. Brothers in work truck arms — like Sterling and General Motors (GM) medium-duty chassis cabs — have been lost. Though the war against slumping sales continues, it looks like there’s a break in the battle, bringing relief and a sense of hope for the future. “The market isn’t going down anymore. We’ve bottomed out and we’re seeing hope in specific sectors where there are people that need vehicles,” says Todd Bloom, Vice President of Marketing for Isuzu Commercial Truck of America Inc. “We are adapting to the market that is picking up a bit, but the growth over the next year is going to be small. Isuzu is projecting 10 to 15 percent. It’s a long way to go. However, we do see that by 2013 and 2014, we will be back at a level in medium duty-trucks that’s comparable to the high levels that were seen in 2006 and 2007.” This time last year, the medium-duty truck market was in dire straits thanks to a 26 percent increase in diesel fuel prices

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and the extreme volatility of the stock market. The economy has dramatically impacted the medium-duty range because many of the vehicles are used in service-type industries. The industry has seen a drop of almost 70 percent since the high of 2006, according to Bloom. In the utility sector, there are typically two different groups of truckers — the major fleet operators and the smaller independent contractors. The government side of it has seen some signs of recovery thanks to stimulus funding, but independent utility contractors are still being tremendously impacted. Ford, which has been the leader in the commercial truck market for 24 years with 43 percent of the Class 2 to 7 segment, also sees signs of recovery. “Our commercial customers — from RV and body builders to equipment upfitters and dealers — are seeing increased demand,” says Len Deluca, Director of Commercial Trucks, Sales and Marketing for Ford. “They’re taking advantage of our full range of commercial vehicle offerings in our Super Duty lineup. That’s good news for us.”

Ford also sees an increased demand for medium-duty (F-650 and F-750) production. “Our customers are cautiously increasing their orders,” Deluca says. “There are companies buying trucks who stayed out of the market the last few years.” Within the last two years, true truckers — hauling horse trailers, large equipment, trailers, etc. — have stayed in the market and many image kings — personal use customers, boats and toy haulers, etc. — have left, says Nantaé Rayners, Truck Marketing Manager for Toyota Motor Sales USA Inc. “Customers and companies are also using their trucks for a much longer period of time potentially waiting for an up in the economy and housing market.”

Staying Solid in a Soft Economy The enemy economy has infiltrated your fortress of profits. Bleeding capital, you have to reposition to take out the threat. For the medium-duty truck market, adaptation is the key. The new economy has brought new buying trends. For instance, buyers interested in trucks are downsizing. Whereas in years past you may have seen someone driving a burly Class 6

When you think utility truck, a cab-forward might not come to mind at first. But with the multitude of chassis options, you can tailor one to fit your needs.

medium-duty chassis cab, now they are piloting smaller trucks that better fit their needs. Operating costs are also a major consideration of today’s truck buyers. Sure, the machine costs you money up front, but not doing your homework on the maintenance schedule and cost of repair could turn your trusty steel jobsite steed into mechanical moneygobbling monster. The truck business is similar to the car busi-

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ness, in that it’s talking about a transaction price — not just what’s the discount off the retail price. “What it comes down to is ‘I have a vehicle and a need for a new vehicle, so what is the transaction price of this vehicle vs. another?’” explains Bloom. “And people can look at incentives. There are discounts on bodies and chassis. There are discounts based on vocation and based on financing. There are dealer programs out there. If you’re interested in a quality vehicle, now is the best time to consider it.” Just as it did when diesel vehicles had to install a diesel particulate filter (DPF) to meet engine emissions standards in 2008, the cost for the new technology to hit emissions standards for 2010 is going to send some buyers into various states of sticker shock. All diesel engines produced after Jan. 1, 2007, must comply with regulations requiring the reduction of nitrogen oxide (NOx) and hydrocarbons (HC) by 50 percent and particulate matter (PM) by 90-plus percent over the previous 2004 emission standards. And starting in January 2010, every on-highway diesel engine built in this country has to have NOx emissions that are under .02 ppm. Most manufacturers will use a system called selective catalytic reduction (SCR). If you looked at a $30,000 vehicle in 2005 — the 2008 $3,000 to $5,000 price increase plus another $3,500 to $5,000 price hike for 2010 technology puts that same machine around $40,000 to $45,000. If you’re in a state with stringent emissions standards — like California — that is pushing diesel on-highway engine users to adopt the best available technology (BAT) to improve the air quality, the price of new technology is unavoidable. For the rest of us, it’s only avoidable until the rest of

New Maintenance Objectives Most new technology usually comes with a learning curve. Take the latest diesel emissions technologies for on-highway truck engines, which have new maintenance routines. Workhorse Custom Chassis, a leading manufacturer of chassis for Class 3 to 6 walk-in trucks used in construction, utility and landscaping operations, has noticed instances of driver failure in this regard. Right now, on-highway diesel trucks are equipped with a diesel particulate filter (DPF) to reduce particulate matter, explains Mike Knaack, a technical writer for TaigMarks Inc. The DPF captures soot and larger sulfate particles in a series of ceramic honeycomb channels as gas passes through the porous material, and the particulates are trapped and accumulate on the channel walls. After thousands of miles, depending on the duty cycle, the DPF will eventually become clogged if nothing is done. To prevent the DPF from clogging, the trapped particulates are burned off, and

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the country falls in line. For some potential truck buyers, these price hikes have increased the interest in gasolinepowered trucks. The low rumbling of an idling diesel has long been the call of the workman’s truck, but saving green reigns supreme. So gas has been a growing market for vocational mediumduty trucks. Without the extra technology needed to meet the diesel emissions standards, gasoline-powered trucks tend to be less expensive. “Last year when fuel prices jumped and diesel was so high, we saw a softening in diesel market. But this year, diesel orders have stabilized,” says Deluca of Ford.

An Old Truck on a New Jobsite Regardless of the market, your work truck productively churns its mobile metal gears day in and day out. You don’t call it quits until the job is done and you need a truck that does the same. If you can’t stretch your dollar into a new truck, you might consider a pre-owned vehicle. “Within every sector, there are people who buy new and those who buy pre-owned vehicles,” Bloom explains. “Usually, people in a new a business start out with a used vehicle and move into a new vehicle. You have businesses that are contract utility installations and they’re on a job-by-job basis. They are owner operators and they tend to start with a used vehicle and build their fleets from there.” If you can’t afford a new or new-to-you truck, you’re not alone. According to Bloom, the time frame that people are holding onto trucks has actually increased in the past couple of years. Part of that is due to financing. Before the downturn, vehicles were leased more readily. But today, a buyer has to have better credit, making purchase more difficult.

the filter is cleaned using a high temperature (around 1,700 degrees Fahrenheit in the particulate filter) regeneration process that leaves a harmless ash and residue. There are different regeneration processes in the industry, including automatic regeneration, manual regeneration and DPF removal for an exchange, or off-vehicle regeneration. Driving at highway speeds will typically cause automatic regeneration to occur. However, for low speed and stopand-go city driving, manual regeneration is needed. For this typical system, there are four levels of warning that indicate potential hazards and the action needed: • Low Soot Load Buildup requires the driver to get up to highway speed to engage the automatic regeneration or to safely pull over and engage in manual parked regeneration. • Exhaust Filter Is Full requires the driver to safely pull over and begin parked regeneration to prevent loss of power.

• Exhaust Filter Is Full and Engine Performance Is Limited means the driver needs to safely pull over and begin manual regeneration to prevent engine shutdown. • Soot Overload is a serious engine problem that has occurred and the engine may shut down soon. Safely pull off the road, turn on flashers, place warning devices and stop engine. DO NOT USE parked regeneration. Call for service. • Manual Parked Regeneration is a simple process of hitting a switch that increases the engine speed to a set RPM to achieve the temperature needed to burn off the soot. Needless to say, this will make the exhaust very hot, so the driver needs to take care to park away from people or combustible materials and vapors. This process takes about 30 minutes. To thoroughly clean the DPF system, the vehicle should also be run at highway speeds for 20 minutes after a manual regeneration.

If you are in the market for a new truck, you expect to see the value of the vehicle — be it through service intervals, fuel economy, residual values or repairs. Ford Work Solutions, for example, is a suite of productivity technology available for the F-Series, E-Series and Ford Transit Connect. Ford Work Solutions offers an in-dash computer with a navigation system and Bluetooth for hands-free calling, keeping your crew connected and safe. Tool Link, an RFID asset tracking system, keeps track of tools and equipment, while Crew Chief allows fleet owners to manage their vehicles through fleet telematics and diagnostics system. The last piece of Ford Work Solutions offers a cable lock se- You aren’t the only cargo your work truck hauls to and from the jobsite. Small equipment like a skid steer or loader backhoe can often be towed by a medium-duty pickup. curity system to discourage theft of exusing the trucks and make operational corrections to impensive tools in the pickup. With all the new technology being implemented, it’s no sur- prove product efficiency. The medium-duty truck market has changed. There’s no deprise that truck manufacturers are able to pull mountains of operational data from your truck. However, you might find a nying the new technology and trends, but there’s true value in today’s market offerings. Potential truck buyers should gather few surprises in what those numbers can tell you. Isuzu, for example, issues a Health Report every time vital intel on their operations and finances to find the truck that the truck is serviced — offering info for everything from will best fit their jobsites. acceleration and braking to idling and regeneration. Owners can check the sheet to see how their drivers are Jason Morgan is Associate Editor of Utility Contractor.

October 2009 | Utility Contractor

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Utility Contractor’s Salute to a NUCA Chapter By Jason Morgan

Though the National Utility Contractors Association (NUCA) headquarters is strategically placed in Arlington, Va., a mere stone’s throw away from Capitol Hill, its heart is pumping across the country. Like any association, NUCA gains its strength from its 24 chapters. Each year, Utility Contractor takes a moment to salute a NUCA chapter. This year, the excellent work and its support of NUCA have earned the Minnesota Utility Contractor Association (MUCA) the UC salute.

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ike every other state across the country, Minnesota has its infrastructure problems. Luckily, MUCA crusades for the interests of all utility contractors on both the state and federal legislative levels. The association staff has over 40 years of combined legislative and association policy experience. MUCA’s Lobbyist is Mike Robertson, a former Deputy Commissioner of the Minnesota Pollution Control Agency and with the help of MUCA’s effective and experienced team at the Capitol, they know how to make things happen. But before MUCA was a bustling utility contractor community, it was a small, dedicated group of individuals who wanted to make a difference. MUCA was formed in the summer of 1978 when a group of contractors came together to work on bridging communication with the engineering community. There were only around 20 companies in the early days of the chapter. They met at the offices of the different members 22

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and did not have a permanent staff person — members donated their time to keep notes and logs of their meetings. There were five original Board Members that were elected by ballot at the first session. Stan Hemphill, C. S. McCrossan, was elected the first President of MUCA and Tom Schany, Northdale Construction, was elected Vice President. Larry Gordon, DGB Inc., was voted Secretary/Treasurer and the other Board Members were K.O. Hafner, Johnson Brothers, Tom Montgomery, Thomas Montgomery Construction, and Wayne Brown, Brown and Chris Inc. “The early days of the chapter were consumed with discussing objectives and laying out principles for the organization,” says DeAnn Stish, MUCA Executive Director. “There were five areas of focus that committees were established to work on: membership; finance; policy and planning; nominating; and specifications. One of the main areas of focus beyond establishing the organiza-

tion and its inner-workings was helping to standardize underground specifications in Minnesota. The next area of focus was the amount of money the EPA was allocating to Minnesota for underground projects. This has always been a core focus for Minnesota and as early as the winter of 1978, MUCA’s leadership was meeting with the EPA regional office to lobby for more investment in clean water and drinking water projects.” Early on, one of the main struggles for the organization was time. The individuals who were working to start the organization were full-time employees in their companies and MUCA members Steve and Jeanette Hentges (left), MUCA Vice President Gary Zajac had multiple responsibilities. and MUCA Executive Director DeAnn Stish (right) meet in Washington, D.C., with What is clear through the imRepresentative (D—Minn.) Jim Oberstar (center), Chairman of House Transporation and Infrastructure Committeee. peccable notes kept from these early meetings is that these 25 companies involved in the early days of MUCA saw the start as late as 7:30 in the evening after a full day of work. organization as an extremely valuable tool to accomplish These companies gave a lot of their time and effort to start a great deal for the industry. Most of the meetings would what has been a strong 30-plus year tradition in Minnesota.

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MUCA outgoing President Phil Lesnar of Northdale Construction passes the gavel to the incoming President Jeff Fye of Dahn Construction at MUCA’s Annual Meeting last November.

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oday, MUCA’s 170 members are just as dedicated as those founding members. Its members drive as much as three to four hours, one way, to attend a meeting for MUCA, carrying on that early sentiment of sacrifice for the industry. Housing its operations in Woodbury, Minn., just minutes from the Capitol, allows MUCA quick access to the legislature while in session. MUCA also hosts board meetings in alternative locations to accommodate its regionally diverse Board of Directors. While member support is strong, these strange economic times have certainly hit MUCA. “Our goal is to continue growing the membership, but in this economy, we have to show our value in a short-term way to our existing membership,” says Stish. “Those who are in the industry will see the value of belonging to our association if we simply focus on what is best for our existing membership. We have set very lofty goals to be able to provide more free training to our membership and offer key programming that they cannot access through any other organization.” In terms of membership, MUCA has value in spades. To its members, MUCA offers a variety of incentives including advertising and free or low-cost training. MUCA has also established itself as a premier training source for the utility industry — it’s acknowledged by 24

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both the Minnesota Department of Labor and Industry and Minnesota’s Department of Transportation and Pollution Control Agency to certify for safety and environmental programs. MUCA is one of a few groups in the state with this distinction. The association publishes an award-winning magazine twice a year, as well as a membership directory. It also sends out electronic weekly updates that provide membership with timely updates on legislative, regulatory and membership related issues. Additionally, MUCA hosts plenty of activities and meetings to keep its members involved, while having some fun. “We host an annual membership meeting each year along with a vendor fair and membership meetings,” says Stish. “We also host the largest construction golf tournament in the State with a sellout crowd that fills both morning and afternoon sessions with capacity sponsorship tents on each hole. But the Jeff Hanson Memorial Last Ditch Open is by far our most successful and well-known event that brings member and non-member interest from the construction industry. We are headed into our 30th anniversary of this massive scholarship event.” As the economy has continued to put pressure on the industry, MUCA has had to cut back on family-oriented events

this year. However, it has industry. It focuses on ev“Our goal is to continue growing the continued to host an Assoerything that is important ciation Day at the Hubert membership, but in this economy, we to its membership. H. Humphrey Metrodome, “This level of service is which offers families and have to show our value in a short-term not common any more,” member company staff the says Stish. “Adhering to opportunity to purchase way to our existing membership. Those the principles that the ordiscounted tickets to a Minganization was founded who are in the industry will see the nesota Twins baseball game upon has benefited this each year. value of belonging to our association if industry and our organi“We encourage comzation as a whole. MUCA panies to join MUCA as we simply focus on what is best for our will continue to grow in we are their trade asboth numbers and in how sociation — not just an we service our members. existing membership.” organization to join for “Too often associations social reasons, but busi- – DeAnn Stish, MUCA Executive Director. can become comfortable ness reasons,” Stish says. in what they do and cease “Our Association is their single voice on issues fac- to change how they serve their members. We have been ing the industry on everything from project funding through a number of changes in the past several years and to regulatory issues and environmental compliance. that has shifted our focus to keep pace with the economic Without an organization to monitor and communicate pressures we are under.” Construction is cyclical and MUCA knows that it needs on these issues, there is no way one company could afford to have a team in house working on all of these to change how it serves its members through these ups and issues. By joining together, everyone benefits from a downs in order to be successful. For the past 30 years, MUCA has served the industry well and will continue to do so into common goal of a strong and productive industry.” Though times are tough, there no doubt that MUCA will the next 30 years and beyond. weather the economic storm. MUCA stands out in the Minnesota economy because of its long history of serving the Jason Morgan is Associate Editor of Utility Contractor.

October 2009 | Utility Contractor

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Track It Out Mighty Tracked Trenchers Tackle Utility Installations By Jason Morgan

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ts presence is undeniable. Casting an intimidating shadow over the jobsite, the tracked trencher hungers for productivity, as it chews up earth and rock. You’re likely to find these ditch-digging beasts on utility, pipeline, mining and wind farm installation jobsites, but to pigeon-hole the tracked trencher would be folly. “Track trenchers can be used in most any application,” says Jason Zylstra, Solutions Specialist, Utility Products for Vermeer, a Pella, Iowa-based manufacturer of tracked trenchers. “[The jobs] can range from on-grade sewer to cross country pipeline. Unless you are working in congested cities or established neighborhoods, where open cutting is not an option, trenching is a cost-effective way to put in the product, be it water, gas, sewer or footings.” Though it may seem like an excavator is a more common sight on a utility installation jobsite, the tracked trencher offers many benefits compared with its boom-arm digging brethren. For example, a trencher only excavates the amount of ditch determined by the depth and width of the cutters. You are not over excavating with a trencher like you do with an excavator. In some applications, you are able to re-use the spoil as pipe bedding. If you use an excavator, you typically have to bring in a foreign material to back fill with. In today’s market, any potential cost savings means more money in your pocket. “Tracked trenchers can offer faster excavating cycles, from trench bottom to spoil pile for more controllable results, less backfilling and reduced project completion times,” says Kris Phillips, 26

Utility Contractor | October 2009

Sales Representative for Tesmec, a manufacturer based in Texas that offers a wide variety of tracked trenchers. “The material that is removed from the trench can often be used for select fill without running it through a crusher. In some instances, a tracked trencher also eliminates the need to blast therefore eliminating the danger and expense associated with explosives.” In the current cost-cutting environment, you might be able to save on job costs using a tracked trencher. Depending on the application, the calculator can determine the cost per foot of a tracked trencher compared with an excavator, or multiple excavators if the job calls for it. “The increased average daily trencher production in rock or dirt vs. an excavator is an advantage,” says Kelly J. Ralls, Trench-Tech International’s Vice President of Sales. “An excavator is better for loading and unloading pipe from truck to projects, and for safety precautions, exposing existing lines and pothole ditch, before a trencher begins working. But a trencher can work in a narrow right of way, because there is no swing movement in the trenchers operation. And it tends to stay on grade better while providing a more consistent square-bottom ditch for back fill and the laying of the pipe.”

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racked trenchers are commonly categorized by weight and engine horsepower. For larger installations, tracked trenchers typically range from 220 to 900 hp, with digging depths up to 24 ft and widths up to 48 in.

The most common manufacturers are Vermeer, Tesmec, Trench-Tech and Trencor. Of course, there are miniature versions of tracked trenchers that start around 42 hp and have cutting widths starting around 5 in. The method of trenching can also be a categorizing factor. The most typical being chainsaw, rocksaw, bucket or drum cutter trenching. As the name would suggest, the undercarriage is a major component of the tracked trencher. “The main purpose of the undercarriage is to provide a solid and stable platform to work from,” says Phillips. “The tracked undercarriage provides that solid base that would be impossible to get from a wheeled undercarriage. Tesmec does offer a tilt undercarriage on several of its models to maintain a vertical wall while operating on a slope.” For many manufacturers, tracked trencher undercarriage manufacturing is an important focus. Vermeer, for example, builds the complete undercarriage to use CAT-spec track chains for its line of track-mounted trenchers. The benefit to building them in house is that Vermeer is able to build them more robust to accommodate the difference in machine models, says Tony Bokhoven, Solutions Specialist — Tracks for Vermeer. Each model’s undercarriage is specifically engineered and designed with a certain weight machine and application in mind. One of the most innovative track designs in the past few years has been Vermeer’s quad track system. Available on its 75- to 125-hp class of trenchers, the system offers great flotation and side hill stability, compared with rubber tire machines. The quad track system also has relatively no breakover point, according to Vermeer. Compared with dual track trenchers, the quad track system keeps full power to the ground at all times. Innovations don’t stop at the undercarriage. The most recent technology developments have been in the grade control field — both in GPS machine control grading and 2D grading systems (laser and sonic). Though laser and sonic systems have been around since the 1970s, laser, sonic and GPS grade control systems are becoming commonplace on jobsites to control and monitor the depth of the digging chain. Laser systems are able to dial in a grade and have it projected by the laser in a 360-degree dome light stream that the machine sensors can pick up, and sonic systems use sonic sensors to sense the ground and allow machines to work in both vertical and horizontal grades. GPS systems, on the other hand, utilize triangulated points from the global positioning system satellites to create a 3D mock-up of the jobsite to control the grade. “We typically see Topcon or Tremble brand units [installed on machines],” says Zylstra. “They are used for grade and depth control in situations where you are installing on-grade sewer and cutting flat floors for mining applications.” Beyond technological jobsite advances, the tracked trencher’s churning chain is a modern construction marvel. The teeth that cut into the ground are changeable to match the soil you’re digging in. In dirt, most chains are equipped with cup cutters, while a conical bit, with tungsten carbide inserts, are used for rock applications. There is also a steel cutter with impregnated carbide hard facing on the outside to reduce wear. Depending on the application, there are different sizes available. Long hours spent cutting into the ground can be taxing on both you and your machine. These days, manufacturers are taking the time to make sure that the cab is nice and comfortable.

The ever important A/C and heat are offered in the operator’s station by most manufacturers, and the cabin is pressurized in order to reduce air contamination and enhance air quality. Manufacturers, like both Tesmec and Vermeer, have made great strides to reduce the noise and vibrations that are felt and heard by the operator, which is important when you are putting in those long hours. Your machine keeps you comfy and gets the job done, so be sure to return the favor when it comes to daily and long-term service checks. While it’s always important to check your owner’s manual for the machine’s exact maintenance schedule, the basics typically include monitoring the air filter monitoring system, servicing the grease points on the machine and monitoring the tension of the digging chain and undercarriage track chain. “As with any heavy machinery, daily maintenance is the key to the lifespan that you will get out of your equipment,” says Phillips. “The machine must always be thoroughly greased and all fluid levels maintained. In addition, trenchers must be checked daily for any loose bolts or hardware due to the environment in which they work.” After all, when you invest from $400,000 to upwards of $1.7 million into a tracked trencher and rely on it day in and day out, you want to make sure that it keeps pulling its weight. To dig into the trencher market and find the right trencher for you is a matter of balancing your needs with your budget and figuring out the best long-term solution for your outfit. Jason Morgan is Associate Editor of Utility Contractor.

In the current cost-cutting environment, you might be able to save on job costs using a tracked trencher. Tracked trenchers can offer faster excavating cycles, from trench bottom to spoil pile for more controllable results, less backfilling and quicker project completion times, compared with excavators.

October 2009 | Utility Contractor

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INSIDE WASHINGTON

Timing Is Everything in Highway Debate By Eben Wyman

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n a “normal” year, when the huge federal surface transportation reauthorization program (aka “the highway bill”) is up for reauthorization, it is a high-profile issue that warrants significant media attention, as well as fierce debate among lawmakers looking to protect their share of federal dollars for road, bridge and highway improvements. However, This year — when America is fighting two wars, attempting to recover from the worst economic climate in decades and attempting to overhaul the nation’s entire health care system — it seems that the pressure to move highway legislation has lost some steam. This is despite the fact that the unemployment rate in the construction industry exceeded 21 percent only months ago and the Highway Trust Fund (HTF) is facing bankruptcy. Unfortunately, the only real debate on highway reauthorization right now centers on when, not how, to address these growing infrastructure problems.

Status Quo Not Cutting It When Congress finally gets serious about highway reauthorization, the debate will center on how to pay for future projects currently funded by the HTF. Currently, these projects are mainly paid for by the 18.4-cent per-gallon “user fee” on gasoline. The fact that the gas tax has not been increased since 1993 has inevitably led to the current deficit facing the HTF. Considering the increase in fuel-efficient vehicles and the fact that people are generally driving less due to the bad economy, we simply will not be able to count on fuel taxes as the only long-term financing solution to our rising transportation needs. One alternative that will be on the table is the establishment of Vehicle Miles of Travel (VMT) tax. Simply put, this involves installing a Global Positioning System (GPS) receiver and antenna, a mileage counter unit and a 34

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short-range-radio-frequency antenna in vehicles to track how far drivers are traveling. While the general idea is favored by some, there are currently more concerns than support. Tracking when and where American citizens are going will doubtless spark “Big Brother” controversy, since many Americans would resent the idea of the government tracking information about where and when they travel. Additionally, there would be scores of policy issues with which Congress would have to grapple. That said, considering the tremendous needs facing our highway infrastructure and the large number of jobs that are created with funding transportation projects, it is clear that these are issues that must be debated, and sooner rather than later.

Do the Work vs. Kick the Can We weren’t far into the 111th Congress before it became clear that something had to be done to address yet another HTF shortfall in 2009, with lawmakers estimating in July that there would be a $5 billion to $7 billion deficit this year. Because a similar shortfall in 2008 was addressed through an $8-billion transfer from general (tax) revenues, conservatives on the Hill were quick to criticize the concept of another direct transfer from general revenues, labeling the action a mere “Band-Aid” for a much bigger problem. Almost immediately, the White House, Congress and industry drew their battle lines over the best ways to reauthorize the program, and more importantly, when. While gas tax advocates in Congress and in the private sector maintained that increases in gas and diesel taxes, along with indexing them for inflation, would provide a much needed boost for the HTF, the White House called the idea a non-starter almost immediately. The VMT concept was also considered D.O.A. by Obama officials. At that point neither a gas tax increase nor establishment of a VMT was strongly

INSIDE WASHINGTON

Considering the tremendous

supported by a large group of lawmakers. Therefore, the idea of moving a six-year, $500-billion reauthorization bill, as supported by longtime infrastructure champions such as House Transportation and Infrastructure committee Chairman Jim Oberstar (D-Minn.), as well as the TCC, was temporarily forced to take a back seat. Timing was everything. The HTF was set to expire at a rapidly approaching Sept. 30 deadline, and to make matters worse, it became clear that the shortage of available funds would make the HTF defunct even before the date of expiration. Therefore debate quickly turned to what short-term “fix” would be appropriate. Although all key players agreed that a fix was needed, as always, the fight was over the money. In a race before the annual August recess, lawmakers worked furiously to agree on the short-term fix. In the end, a $7-billion transfer from the general fund to the HTF won the day. With the $7-billion fix taken care of through September, the debate turned to how long the next extension using current funding levels should be until a full reauthorization could be worked out. Advocates looking to move a full reauthorization bill wanted as short an extension as possible to exert pressure on Congress to move a comprehensive bill. The House overwhelmingly passed a three-month extension. On Sept. 30 (date of expiration of the last highway bill), Senate leaders who initially advocated an 18-month exten-

needs facing our highway

infrastructure and the large number of jobs that are

created with funding trans-

portation projects, it is clear that these are issues that must be debated, and

sion were working furiously to develop their own three-month bill. The expectation at press time was that if an agreement was not reached, Plan B would be the inclusion of a one-month extension of current HTF funding in a broader “continuing resolution,” which keeps federal programs (whose appropriations bills have not passed) running after the fiscal year.

Transportation Appropriations Update

All in all, 2009 was a good year for transportation infrastructure. Appropriations funding for the HTF was $40.7 billion, and surface transportation received an additional $27.5 billion in “economic stimulus” funding provided in the American Recovery and Reinvestment Act. The FY 2010 transportation appropriations bill passed in the Senate on September 17, providing $42.5 billion for the federal highway program, a 4.4 percent increase over this year’s level. The bill must now be reconciled with House legislation, passed earlier this year, which would provide a less generous $41.1 billion in FY 2010. NUCA works actively on highway legislation because it is estimated that three to five percent of federal highway dollars end up funding utility location projects (storm drains, traffic signals, dry utility, etc.). Increased funding benefits your bottom line, and that’s what we’re all about. Eben Wyman is NUCA Vice President of Government Relations.

October 2009 | Utility Contractor

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National Utility Contractors Association

sooner rather than later.

S AF E T Y M A N AG EM EN T

The Ubiquitous Dump Truck It’s Big and It’s Heavy, But Are You Paying Attention?

By George Kennedy

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t is said that what is out of sight is out of mind. Unfortunately, the same is often true of what is everywhere in sight. Take for example the dump truck, which is used in the utility construction industry to transport materials to and from jobsites. Because we see them all the time, there is a danger of taking them for granted to the point of ignoring the very real hazards they pose. What follows is a close look at dump truck operations with an eye to ensuring that serious injuries and fatalities don’t result from accidents that could have been prevented. In general, if your company owns its trucks, a fleet operations plan should be established. At minimum the plan should include driver qualification, training, vehicle inspections, maintenance and safety rules. If trucking operations are subcontracted out, then there should be a plan to ensure that the subcontractors’ trucks are in good condition and operated by qualified drivers. Failure to do so could result in your company being held liable by OSHA or the courts if an accident occurs.

fication the driver’s license should be verified and an MVR (Driving History Report) check run prior to letting the individual behind the wheel. Take advantage of your insurance agent or company if you don’t have the in-house capability to run an MVR check. Your company certainly does not need someone with a fraudulent driver’s license and/or poor driving record behind the wheel of your big, heavy and very expensive dump truck. Drivers should be thoroughly familiar with the company fleet safety rules before hitting the road. It’s also a good practice to require drivers to attend a truck driver’s defensive driving course (DDC) such as that offered by the National Safety Council. It will not only help ensure that a safe driver will be behind the wheel, but also will allow the company to take advantage of the premium discount offered by many insurance companies if a predetermined percentage of company drivers have received DDC training.

Elements of Safe Operation Equipment Maintenance The place to start is with preventive maintenance. As with any other piece of equipment, trucks should be inspected regularly and all defects should be repaired. Prior to operation, the driver should always perform a pre-trip inspection that includes checking lights, turn-signals, mirrors, windshield wipers, tires, fluid levels, brakes and back-up alarm. All should be in good working order before the trucks goes on the road or moves across the jobsite. In addition to the items checked during pre-trip inspections, drivers and mechanics should regularly inspect: the suspension system to ensure that it provides even suspension; pins and bushings for wear and lubrication; hydraulic cylinders and hoses for leaks or damage; boxes for damage; and anything else that might require routine maintenance.

Driver Qualification All dump truck drivers must be qualified (by training/ experience) and have a Commercial Driver’s License (CDL). No one who has not been prequalified by the fleet manager should be permitted to drive a truck. As part of the prequali36

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Obviously, there’s more to operating a dump truck than just driving it from point A to point B. One of the most hazardous situations associated with dumping a load is truck tip-over due to an unbalanced load. Drivers should be trained to recognize such hazards as soft soil conditions, uneven surfaces and inadequately compacted fill. They should also avoid surfaces that are sloped to the side such as low road shoulders because they can change the truck’s center of gravity. When spreading dumped material from a moving truck, the driver should make sure that the entire length of travel is relatively level. Trucks should never be parked close to a trench/excavation, even when they are not loaded because the weight of the vehicle alone is sufficient to cause a cave-in. Vibration caused by a truck can also affect trench wall stability. Trucks should therefore always be loaded and unloaded a safe distance from the edge of an excavation. Drivers should make sure there will be adequate clearance from overhead power lines and obstructions, especially when raising the truck bed. They should also check to see that workers are clear of the truck. Additionally, all workers

should be instructed to stay clear of the back and sides of trucks when the load is dumping. Before raising the dump bed, the driver should ensure that the tailgate and dump bed are unlocked. The driver should return to the driver’s seat and should not stand beside the truck or on the running board when dumping. Trucks should be separated from other vehicles and equipment during a dump to ensure that if the truck does tip over it will not cause an injury to another driver or equipment operator or damage to other equipment.

Two-thirds of the worker fatalities resulting from being struck or run over by vehicles occurs inside the work zone. Whatever the organized system of traffic control, it should take dump truck operations into consideration, ensuring that the trucks flow in, around and back out again according to an established plan. Because drivers of dump trucks cannot see who or what is behind them when backing up, eliminating the need for them to back up will make the jobsite safer. That said, un- One of the most hazardous situations associated with dumplike a flat-bed ing a load is truck tip-over. Drivers should be trained to avoid truck deliversurfaces that are sloped to the side such as low road shouling a load of ders because they can change the truck’s center of gravity. pipe that will be unloaded by a crane, excavator or forklift, dump trucks must often back up to dump a load clear of the roadway. When it is necessary for a dump truck to move in reverse, an audible back-up warning device must be used or a spotter stationed to guide the driver and ensure that workers do not walk behind the truck when it is backing up. All workers inside the work zone who could be exposed to vehicle or equipment traffic should be required to wear high visibility (lime green or orange) clothing so that drivers will be able to see them. The clothing does not necessarily have to include the reflective stripes that are required of workers exposed to traffic on the road. Check local and state requirements. The important thing is that the workers’ clothing is easy to spot by the driver and that the worker does not blend in with the surroundings. All workers should also be instructed to make eye contact with the driver before approaching the truck. Based on the foregoing, is it time for you to take a closer look at your dump truck operations in the interests of providing a safer workplace? If so, remember the basics I’ve outlined — equipment maintenance, driver qualification, elements of safe operation and traffic control. Whether we’re talking about your trucks or those of a subcontractor, you are ultimately responsible for ensuring that injuries and fatalities don’t result from accidents that could have been prevented. George Kennedy is NUCA Vice President of Safety. October 2009 | Utility Contractor

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National Utility Contractors Association

Traffic Control Inside the Work Site

NU CA N EWS

It’s Full Speed Ahead for NUCA’S New Colorado Chapter The newly chartered NUCA of Colorado chapter is fired up, thanks to its successful strategic planning retreat held August 21. The chapter’s newly adopted vision says it all: “Be the best association for utility construction in Colorado.” Joining chapter leaders at the retreat was NUCA President Lyle Schellenberg, who shared his chapter development experiences from starting NUCA of Oregon and Southwest Washington 12 years ago. At the retreat, chapter leaders also adopted a new mission: “Grow membership by providing best-in-class resources, as measured by the satisfaction of our membership.” To accomplish this mission, retreat participants identified major goals and developed action plans to implement immedi-

ately. The resulting planning documents will help guide NUCA of Colorado leaders in the coming year, according to Retreat Facilitators Jeff Moore and Jason Miner of Maxim Consulting, Denver. Since its incorporation earlier this year, NUCA of Colorado has already formed eight committees reporting to its Board of Directors. More than 80 people gathered August 20 in Centennial for the chapter’s second membership event, according to NUCA of Colorado President Jeff Rumer. Visit the Colorado chapter’s Web site at www.nucacolorado.com, or contact the chapter’s Executive Director Kenneth Sommer, who directs NUCA’s Chapter-in-Development program, at (703) 797-8219 or via e-mail at [email protected].

UUCF Foundation Announces Scholarship Winners During the Underground Utility Contractors of Florida (UUCF) 2009 Annual Convention (July 23-26), the chapter’s Andrew Scott Johnson Memorial Scholarship Foundation announced the winners of its 2009 scholarships. The recipient of the $7,500 scholarship went to Sarah Cannon* (pictured), daughter of Michael Cannon of Reynolds Inliner LLC. Additional scholarships of varying amounts were awarded to: Benjamin Hurst, son of Tim Hurst (APAC Southeast Inc.); Yang Ge, son of Helen He (England Thims & Miller); 38

Utility Contractor | October 2009

Mark “Tommy” McCabe, son of Mark and Kim McCabe (C & M Road Builders Inc.); Avery Spofford, daughter of George Spofford (Glenn Rasmussen Fogarty & Hooker P.A.); Steven Sanchez, son of Rosa Sanchez (JohnsonDavis Inc.); Megan Unger*, daughter of Thomas Unger (Florida Roads Contracting Inc.); Benjamin Burgess (A. J. Johns Inc.); Ashleigh Elizabeth Ciambriello, daughter of Paul Ciambriello (Guignard Co.); Christopher Todd, son of David Todd (Florida Roads Contracting Inc.) and Austin Wynn, son

of Donald Wynn (Florida Roads Materials LLC). Since its inception in 2000, the Foundation has awarded a total of $155,500 in Sarah Cannon scholarships. *Also received 2009 NUCA Foundation for Education and Research Scholarships.

NU C A NEWS

NUCA of Indiana held its second annual Golf Outing at the Golf Club of Indiana on September 10. At the dinner following the event, participants had the opportunity to hear NUCA President Lyle Schellenberg talk about what is currently going on at the national level. After dinner, Executive Director Chris Price presented the golf awards. The First Place Team and Closest to the Pin Awards went to MacAllister Machinery, which was represented by Greg Henry, Drew Kissel, Dave Clark and Pat Riley. The Longest Drive and Longest Putt Awards went to Doug Denney (Atlas Excavating) and Kip Bancroft (Holt Equipment) respectively. Sponsors of the event included: U.S. Pipe, North American Pipe, Blood Hound Inc., Corbitt & Sons Construction Co. Inc., Atlas Daylighting, Indiana 811, Tramco Inc., Frakes Engineering, MacAllister Machinery, Rudd Equipment Co., Brandeis Machinery and Reynolds Inc.

NEW MEMBERS CONTRACTORS Badger Daylighting Hydrovac Excavation David Oberg 4733 Showdown Dr. North Las Vegas, NV 89031 Work: (702) 395-7211 Fax: (702) 396-3176 [email protected] www.badgerinc.com Garco Industries Blanca Garza P.O. Box 2843 McAllen, TX 78502 Work: (956) 783-1695 Fax: (956) 781-3990 [email protected] www.garcoindustries.com

Visiting NUCA President Lyle Schellenberg (Armadillo Underground) (l) completed the golf team that included NUCA of Indiana ED Chris Price, Kip Bancroft (Holt Equipment) and NUCA Immediate Past President Terry Dillon (Atlas Daylighting).

R & D Enterprise Contractors Inc. Rose Stockslager 5436 Sunset Pike Chambersburg, PA 17202 Work: (717) 257-1385 Fax: (717) 267-0491 [email protected] Subterrain Technologies Inc. Trayci Wells 909 10th St. W. Palmetto, FL 34421 Work: (941) 721-3446 Fax: (941) 722-3447 [email protected]

William Anthony Excavating Anthony Raposo 3666 Quaker Ln. North Kingstown, RI 02852 Work: (401) 294-2320 Fax: (401) 294-2391 [email protected] www.williamanthonyexcavating.com

ASSOCIATES Enterprise Fleet Management, A Div. of ERAC Karole Fitzgerald 6800 N. Dale Mabry Hwy. #170 Tampa, FL 33614 Work: (813) 885-5636 Fax: (813) 884-3247 [email protected]

Sentry Barricades Inc. John Mabbitt 1620 George Jenkins Blvd. Lakeland, FL 33815 Work: (863) 682-7098 Fax: (863) 680-9901 jmabbitt.sentrybarricades@ verizon.net Streamline Environmental Inc. Lee Ford 1821 Sahlman Dr. Tampa, FL 33605 Work: (813) 258-5561 Fax: (813) 258-4257 [email protected] www.streamlineenv.com

October 2009 | Utility Contractor

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National Utility Contractors Association

NUCA of Indiana Holds Golf Outing

IN D U S T R Y C A L EN DA R

November 2009

December 2009

5 — GUCA Fall Quarterly Meeting & Trade Show, The West in Buckhead, Atlanta, Ga., Georgia Utility Contractors Association, (404) 362-9995

TBA — UCA of South Florida Holiday Party & Officer Installation, Maggiano’s, Boca Raton, Fla., Underground Contractors Association of South Florida, (954) 575-0110

6 — NUCA of Arizona Fall Golf Tournament, Wigwam Golf Resort, Litchfield Park, Ariz., NUCA of Arizona, (480) 775-3943 6 — SUCA Fourth Annual Clay Shoot, Deer Creek Sporting Clays, Land O’ Lakes, Fla., Suncoast Utility Contractors Association, (813) 989-7822 7 — NUCAORSWW Annual Holiday Auction, The Governor Hotel, Portland, Ore., NUCA of Oregon & Southwest Washington, (503) 742-8877 15-18 — NCUCA Fall Conference and New Board Member Induction Ceremony, Grove ParkInn, Asheville, N.C., North Carolina Utility Contractors Association, (919) 845-7733 17 — UCAC Person of the Year Dinner Dance & Scholarship Auction, Wethersfield Country Club, Wethersfield, Conn., Utility Contractors Association of Connecticut, (860) 529-6855 19 — Broncos Game Night Social, Location TBD in Denver area, NUCA of Colorado, (703) 797-8219 20 — UCA of South Florida Scholarship Golf Tournament, Palm Beach National, Lake Worth, Fla., Underground Contractors Association of South Florida, (954) 575-0110 30 — Mid Florida UTCA Annual Auction & Barbecue, Mid Florida Utilities & Transportation Contractors Association, (877) 931-8899 40

Utility Contractor | October 2009

2-3 — NUCA Safety Directors Forum, New York New York Hotel, Las Vegas, National Utility Contractors Association, (703) 358-9300 3 — NUCA of New Mexico Membership Meeting & Recognition Dinner, NUCA of New Mexico, (505) 888-0752 3 — Mid Florida UTCA Christmas Party, Mid Florida Utilities & Transportation Contractors Association, (877) 931-8899 5 — NUCA of Arizona 2 Wheels 4 Meals Bike Run (St. Mary’s Food Bank Alliance), NUCA of Arizona, (480) 775-3943 5 — SWFUCA Annual Christmas Party, Holiday Inn Airport, Fort Myers, Florida, Southwest Florida Utility Contractors Association, (239) 939-1952

January 2010

10-13 — Utility Construction EXPO ‘10 All Together Now, Walt Disney World Swan and Dolphin Hotel, Lake Buena Vista, Fla., National Utility Contractors Association, (800) 662-6822

THE PIPELINE

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ADVERTISERS’ INDEX

Al Asher & Sons www.alasher.com .................................41

Griffin Dewatering www.griffindewatering.com ................2

Moffat Enterprises 541-548-1144 ........................................25

Arntzen Corporation www.arntzenpipe.com .........................41

Harco Fittings www.harcofittings.com ........................41

NUCA Membership www.nuca.com .....................................43

Benjamin Media Resource Center www.benjaminmedia.com/book-store 42

Hitachi Construction/John Deere www.hitachiconstruction.com .............44

Pressure Pipe Inspection Company www.ppic.com......................................19

Calculated Industries www.countonCI.com/dig4 ...................25

International Construction Equipment www.ICEUSA.com................................37

Rain For Rent www.rainforrent.com ...........................9

Cerda Industries www.buyshoringdirect.com ................11

ISCO Industries www.isco-pipe.com .............................41

RWF Bron www.rwfbron.com................................21

CNA Insurance www.cna.com .......................................17

Kenco Corporation www.kenco.com ...................................41

Utility Construction Expo ‘10 www.nuca.com .....................................28-33

Educational Webinar Series www.benjaminmedia.com/webinars ...13

Kenworth www.kenworth.com .............................5

Vermeer www.vermeer.com ...............................7

Foundation Software, Inc. www.foundationsoft.com.....................35

LockMasters USA www.lockmastersusa.com ...................41

Geospatial Corp. www.geospatialcorporation.com ........23

McWane Inc. www.mcwanebuyamerican.com .........3

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