Construction Equipment Owner

Attendance was up by more than a couple hundred contractors at the recent National Pavement Expo in Nashville, and that’s just one of what might be hopeful signs for the coming season. Overall attendance at seminars was up over 2009, Roundtables (the free Q&A sessions at the end of the day) were close to standing-room-only, and NPE hasn’t seen that kind of end-of-day interest in at least a couple of years.

Then there’s the exhibit floor. Typically I get an opportunity to walk the floor on the show’s first and second day, but I steer clear of booths where exhibitors are talking with prospective buyers. Still, usually I am able by the end of the second day to at least stop in most booths to say hello, welcome exhibitors to the show, and learn about what they are displaying.

Not the case this year. The first day of the show was awfully busy, and while I couldn’t spend much time on day two when I was out there in late morning it looked almost like a first day. And it there must have been a pretty good combination of contractors looking to buy and exhibitors doing a good job selling because in the last four days I’ve received numerous e-mails from exhibitors letting me know not only how happy they are with the 2010 show — but that they sold equipment (in more than one case several pieces of equipment) before the show closed.

So as I said, maybe some positive signs for the upcoming season.

Obama Parcels Out Rail Funds, But No One Gets All They Wanted

President Barack Obama announced that the U.S. Department of Transportation (USDOT) is awarding $8 billion to states across the country to develop America’s first nationwide program of high-speed intercity passenger rail service. While the funds were substantial, most local officials note that completing the projects will cost far more than this initial federal contribution.

Caterpillar Expects Higher Sales & Revenues and Profit in 2010

Caterpillar expects 2010 sales and revenues to be up 10% to 25% from 2009, and profit is expected to be about $2.50 per share at the midpoint of the sales and revenues range.

Raising or Suspending the Gas Tax … States Eye Different Approaches

Michigan is proposing a gas tax hike. Its per-gallon gas tax would jump from 19 cents to 23 cents this year, and then to 27 cents in 2013, under a measure that seeks to avoid the loss of more than $2 billion in federal highway aid for state and local roads over the next five years. To view the article, click here.

On the other hand, Alaska’s governor wants to suspend its gas tax. According to an Associated Press Report at Bloomberg.com, a proposal by Gov. Sean Parnell to suspend Alaska’s motor fuels tax may relieve some “pain at the pump,” but it will undermine federal transportation funding, U.S. Rep. Don Young said. For this article, click here.

Company Purchases Highest-Reaching Aerial Work Platform

The newly formed Abilene High Lift Aerial Company of Abilene, TX has purchased a Steiger TTS 1000 aerial work platform with a working height of 328 feet. When delivered, it will be the highest-reaching aerial in North America.

Business Webinar Series for Concrete Contractors

The American Society of Concrete Contractors has developed presentations on a variety of topics of daily importance to concrete contractors. These presentations are designed for small and medium-sized contractors and will be presented as webinars, approximately 40 minutes in length, once per month.

We were fortunate to have Mark Betner, product manager for Citgo’s Heavy Duty Lubricants, in our office this week to tell us about a couple of initiatives the company is promoting to on- and off-road equipment fleets. With 30+ years of experience in the lubricants industry, Mark knows his stuff - plus has some great stories to share!

There were several good take-aways from our discussion, but the one that stuck most in my mind were the potential savings fleets could gain by switching from a 15W-40 engine oil to a 5W-40 product with a synthetic base. Mark indicates that the greater lubricity of a 5W-40 synthetic can substantially reduce fuel consumption. In fact, for on-highway fleets, it can potentially reduce fuel use by 500 gallons per power unit annually.

For off-road fleets, the benefits tend be measured more in terms of oil drain intervals and component wear rates. Mark cited Halquist Stone Quarry, a Wisconsin-based aggregate supplier, as an example. By switching to a 5W-40 synthetic-based lubricant, Halquist has been able to extend the drain intervals for its construction equipment fleet from 250 hours to a whopping 1,000 hours, meaning lower oil consumption and reduced downtime for service. It has also eliminated the need to use ether as a starting aid during the winter months, a practice that was costing the company two to three blown engines per year at roughly $28,000/engine.

Citgo is so sure of the benefits of switching to a 5W-40 synthetic that it has introduced the LubeAlert Confidence Program. The program guarantees you’ll see a preset level of improvement in fuel efficiency and oil drain intervals, based on individual consultation, or you get your investment back on the oil product.

Of course, a switch to any new lubricant product is never as “simple” as it sounds. Still, Mark had me convinced it could be worth your time to investigate. If you don’t believe him, check with the EPA; its testing program shows that a 5W-40 synthetic can provide up to 3% better fuel economy than conventional 15W-40 diesel engine oils. And in this economy, even a 2% to 3% savings can mean the difference between profit and loss.

Share Your Story: If you’ve made the switch to 5W-40, let us know how it went. Good or bad, we’d love to hear from you!

Caterpillar Contributes to Economic “Bullwhip Effect”
According a report at The Wall Street Journal, Caterpillar Inc. recently told its steel suppliers that it will more than double its purchases of the metal this year - even if the company’s own sales don’t grow.
In fact, says the report, the heavy-equipment maker has been boosting orders to suppliers for everything from big tires and hydraulic tubes to shatterproof glass.
How is that possible? Give credit to the “bullwhip effect,” which is snapping across the U.S. economy.
(To view the entire article at wsj.com, a subscription may be required.)

Support for Long-Term Transportation Plans at Forum
According to a report at Finance & Commerce, despite past differences, two of America’s most influential transportation policy makers are presenting a united front in support of a long-term federal spending program for roads, bridges and mass transit.

$171 Million to Go for Transbay Transit Center in San Francisco
The construction of a new transit center in downtown San Francisco just received a financial boost from a $171 million federal loan, U.S. Transportation Secretary Ray LaHood announced. The new Transbay Transit Center will connect the Bay Area to the rest of California, making daily commutes and longer trips easier, faster and more convenient.

Concrete Manufacturer Supplies Systems for Winter Olympics
In preparation for the Vancouver 2010 Olympics, MAPEI provided 41 different products that contractors used for concrete restoration, surface preparation, waterproofing and flooring installation in six Vancouver venues.

Terex AWP Sells Off Generator and Power Buggy Product Lines
The Terex Aerial Work Platforms (AWP) segment of Terex Corp. announced that it has exited the generator business and sold its power buggy product line as part of an overall strategic plan to focus on its core aerial equipment business.

ARTBA Voices Opposition to EPA Proposal
A proposal from the U.S. Environmental Protection Agency (EPA) to tighten ozone standards threatens to put hundreds of communities across America out of compliance with the Clean Air Act (CAA) and, in turn, places federal highway funds for those areas at risk. That was the message American Road & Transportation Builders Association (ARTBA) Assistant General Counsel & Director of Regulatory Affairs Nick Goldstein delivered at an EPA Clean Air Scientific Advisory Committee hearing on the agency’s proposed regulation.

ABC Urges President Obama to Include Free Enterprise Solutions in State of the Union
Associated Builders and Contractors (ABC) is urging President Obama to include free enterprise solutions to stimulate the economy and help create jobs in his State of the Union address tonight.
“With construction in this country nearly at a standstill and the industry unemployment rate at a staggering 22.7% - more than twice the national average - we call on President Obama to focus on a job proposal that will help put Americans back to work and the construction industry back on its feet,” said ABC 2010 National Chairman James W. Elmer.

Clean Energy, Solar Technology Could Create Construction Jobs
The Senate Environment and Public Works Committee this week will highlight solar energy and clean energy job opportunities as President Obama and Democrats continue to work on economic recovery and job creation. Five Democratic senators sent a letter to Obama and Majority Leader Harry Reid (D-Nev.) in November asking that equipment and manufacturing facilities for solar companies be covered under the current 30% solar investment tax credit, which currently covers solar-technology purchases and installation. It could create 7,200 jobs in manufacturing and another 2,700 in construction, the letter said.

CIM Students Build Monument to Fire Fighters Who Died on 9/11
Concrete Industry Management students will be working during the annual World of Concrete Artistry event to create a memorial to the fallen firefighters of the firehouse located at 48th & 8th Streets in New York City. On September 11, 2001, this firehouse lost two Companies including the men and women on duty for Ladder 4, Engine 54 & Battalion 9.

Contractor Receives Lifetime Achievement Award
Chec Consultants’ Alan Curtis received a Lifetime Achievement Award presented to him by the Asphalt Interlayer Association (AIA) at National Pavement Expo West in Las Vegas. John Miner and Jeff Rasche, TenCate Geosynthetics North America, presented the award on behalf of AIA for Curtis’ service to the pavement industry and his efforts on behalf of pavement preservation.

At the recent 55th Annual National Asphalt Pavement Meeting, sustainability and/or “green” seemed to be the mantra industry participants have endorsed as the key to their future success. It’s a powerful message the asphalt industry has in arguing the benefits of asphalt over concrete for both customers and taxpayers. More importantly, the stewardship role of using resources wisely and reducing the carbon footprint in the delivery of quality surface structures exhibits a strong commitment of preserving what we’ve all enjoyed for future generations.
Asphalt has always been a leading recycled product, with over 90 million tons of old pavements being recycled into new pavements annually. The Asphalt Pavement Alliance will continue to foster that responsibility by promoting recycling, warm mix, perpetual pavements, porous pavements and open-graded friction course designs as the most cost-effective and environmentally-friendly solutions to building quality pavements. And for preserving the quality pavements already in place, APA will continue to promote thin-lift overlays as the appropriate solution.
Delay of Congress to reauthorize a federal surface transportation bill will continue to plague state governments’ and the surface transportation industry’s ability to move forward in building and maintaining the vital road network we all rely on, but the asphalt industry continues to research and develop new solutions that maximize the investments made, while limiting waste and emissions produced. Warm mix asphalt mix designs, for example, could very well be the new standard specified by road agencies within five years.
And with new Environmental Protection Agency requirements and Clean Energy Bill regulations governing greenhouse gases, it will become increasingly difficult to construct and maintain roads without being environmentally responsible.
Going green will become the new reality for asphalt producers and contractors, and industry participants who lead the charge will ultimately lead the industry.

Firms That Broke Law Still Get Tax Dollars
The federal stimulus program is funding roadway construction in many Massachusetts towns. But an investigation by Boston University’s New England Center for Investigative Reporting found that 13 of the 21 companies that got federal transportation money have a history of misconduct.

AGC Economist: “Construction Employment is Losing Ground Almost Everywhere”
For the first time since the start of the economic downturn, every state and the District of Columbia reported losing construction jobs over the past twelve months, according to a new analysis of state-by-state employment data released by the Associated General Contractors of America (AGC).
“There’s nowhere for construction workers to turn for relief from job losses and hardship,” said Ken Simonson, the association’s chief economist. “Sifting through the monthly variations, it is obvious that construction employment is losing ground almost everywhere.”

How the Stimulus Saved Renewable Energy
Paul Gaynor, chief executive of First Wind, is using $40 million in federal funds to help build a wind farm that will produce enough power for 13,000 homes and has created 200 construction jobs. Without the stimulus, First Wind’s project — and most renewable energy projects across the country — may not have happened. 

December 2009 Contracts Increase 5 Percent
McGraw-Hill Construction, a division of The McGraw-Hill Cos., New York, has reported construction starts increased 5% in December 2009. During 2009, total construction was down 26% compared with a 13% decline in 2008.
“The construction industry went through a particularly tough year in 2009 as the 26% annual decline for construction starts was the steepest in at least the past 40 years,” says Robert A. Murray, vice president of economic affairs for McGraw-Hill Construction.

Thompson Pump Supports Haiti Relief Efforts
Thompson Pump & Manufacturing Co. Inc., a full-service manufacturer and provider of pumps, pumping equipment and engineering expertise, is aiding disaster relief efforts in Haiti with company-wide monetary donations and supplies. The pumps are being made available to the U.S. government and its aid agencies, which are aiding in the relief effort on the Caribbean island.

The 25th National Pavement Expo is history, but that doesn’t mean its impact is over. The event was busy, with attendance up from 2009 and contractors and exhibitors pretty positive about the upcoming year. Attendance at seminars was up, interaction with speakers was strong, and many people let me know they thought NPE had an especially strong conference program. It’s always gratifying when I get stopped in the hall outside of a seminar room and a contractor tells me how effective a speaker was or how much he took away from a specific session. That happened many times last week in Nashville and we’re glad to be able to provide that help.

One of the greatest benefits of attending NPE is the opportunity to meet and talk with contractors from throughout the country. I spent much of last week doing just that and thanks to everyone I talked with I’ve got more ideas for magazine articles, new seminars, and even a couple of new speakers. I talked with contractors who return year after year, and they told me they look for those or two small things that can have an impact on their business. I talked with a contractor who attended the first NPE, and I talked with many who attend every year or two. So to all those who took a few minutes out of their day to share their business with me, thanks much. I’ll put that all to good use.

I always find NPE invigorating and energizing. It recharges my batteries and gets me ready for the year ahead, and I think many contractors feel the same way. Let me know how you liked NPE, what you learned, what you bought, and anything else about NPE you want to share. I’ll be doing the same over the next few days so keep checking back.

AEM Survey Indicates Slight Upturn for Construction Equipment Industry in 2010
Construction equipment manufacturers expect overall industry business to turn around slightly in 2010 following double-digit expected year-end 2009 declines in the minus-40% range for the United States and minus-30% range for Canada and other worldwide sectors, according to the annual “outlook” survey of the Association of Equipment Manufacturers (AEM). Survey respondents then anticipate stronger growth going into 2011, but not enough to erase the severe 2009 business and job losses. Business in 2012 is then expected to level off.

$36B in Stimulus Isn’t Enough, say Contractors and Industry Reps
According to a report at CNNMoney.com, nearly $36 billion in stimulus money has been spent so far on highways, bridges and transit systems.
But that’s not nearly enough, according to contractors and representatives of the construction industry. They say the stimulus money has kept some projects on track and some people on the job, but hasn’t resulted in a lot of new hiring.

WisDOT Announces Excellence in Construction Awards
A grading project in Oconto County, an asphalt paving project in Shawano County, a concrete project in Winnebago County, a small bridge construction project in Taylor County, a large bridge project in Outagamie County, and an airport project in Rock County were announced as winners of the annual Wisconsin Department of Transportation Construction Awards.

Builders, Buyers Embrace Smaller Houses
New home buyers responded to the tough times in 2009 by opting for smaller houses, driving down the average size of a house built in the U.S. for the first time in 27 years.
“You’ve heard the mantra ‘downsize me’ and ’small is the new big?’ Well, last year was definitely a downer,” said Carol Lavender, president of Lavender Design Group, a residential design firm in San Antonio, TX.

NRMCA to Offer Online Courses
The National Ready Mixed Concrete Association (NRMCA) will launch the online version of three of its courses for architects and engineers beginning in March. Courses will include: Pervious Concrete - A Stormwater Solution; Design of Concrete Pavements; and Building Green with Concrete.

Despite Decline, the Worst May Be Over
Associated Builders and Contractors (ABC) released its Construction Backlog Indicator (CBI) highlighting a full year’s worth of data in commercial, industrial, institutional and infrastructure construction. The most recent CBI of 5.8 months from November 2009 is down 18 percent from November 2008.
“You can summarize three important points from the recent CBI data - the worst is over for the construction industry as a whole; the recovery may not be a sustained one; and the United States is rebuilding its infrastructure capacity,” said ABC Chief Economist Anirban Basu.

Prices Squeezing Contractors
Construction contractors are being squeezed by rising materials costs and disappearing profit margins, based on analysis of the latest producer price index (PPI) conducted by the Associated General Contractors of America. The new figures show finished prices of nonresidential buildings dropped last year even though a number of construction materials prices have begun to increase in price, noted Ken Simonson, the association’s chief economist.

Congress and Obama Administration Urged to Create National Infrastructure Bank
A broad coalition of members of Congress, experts, and stakeholders called on Congress and the Obama Administration to create a National Infrastructure Bank (NIB) to help generate the investment needed for infrastructure projects of regional and national importance.
“America needs a variety of methods … to repair and modernize our nation’s infrastructure,” said Governor Ed Rendell (PA), Co-chair, Building America’s Future. “… This is an important reform that is urgently needed to address our nation’s infrastructure funding shortfalls.”
A NIB would help improve the nation’s roads and highways, bridges, ports, rail (freight and passenger), drinking and waste water treatment plants, smart grid, broadband, and schools.

Komatsu Pledges $100K to Haitian Relief Efforts
“We extend our heartfelt concern and condolences to the people of Haiti who have been devastated by the earthquake,” says Dave Grzelak, chairman and CEO, Komatsu America Corp. “We will be contributing to the American Red Cross which is doing incredible work by providing aid to help rebuild the lives and communities in Haiti devastated by this disaster.”

Company Offers Web Platform for the Green Industry
Launching on Feb. 1, this “Green Social Marketplace” from New Home Green Materials and Learning Center will provide a complete repository of green information, documents, educational materials, regulations, incentives, construction project search engine and financial resources available. The site is designed to connect the public, contractors, manufacturers, government and regulatory agencies, and more.