ForConstructionPros.com

It's hard for any contractor to avoid the current economic realities. Yet, there are a few emerging markets that are being driven by a trend toward recycling and the infusion of funds from the American Recovery and Reinvestment Act (ARRA).

"Of the $787 billion ARRA, there was only $26.6 billion appropriated to highways," says John Irvine, vice president of sales and marketing, Roadtec Inc. "In 120 days [by June], the states were supposed to appropriate $9.3 billion. They were well on their way to doing that. They were at 59%, or $5.5 billion, by April 7."

This speed favors mill and fill work, which can be designed quickly. "We are seeing some impact," says Irvine. "The question is whether it is a temporary blip or whether it is sustainable."

Terry Sharp, worldwide marketing manager of global paving, Caterpillar Inc., also expects the ARRA to mainly impact mill and fill applications. "Mill and fill work is hot right now. If the contractor has the equipment and the experience, he can jump on it right away," he states. "The key is good equipment and support to get jobs done quickly and with quality results. It has always been a specialized business."

Big mills are in demand
Some contractors who previously subbed out milling work are now doing it themselves. "While it is specialized, the paving contractor who has experience subbing this work out understands the business and can make money in this area. Trucking is important and margins are down to the penny," Sharp explains. The learning curve would be rather steep for a general contractor. "Only the paving contractor has a chance to enter this marketplace."