June 2008

Battling a Sliding Economy

National Safe Digging Month Raises Buried Utility Awareness

Case Wants to Rock (For the Troops)

D. Brown Management Expands Financial Offerings to Contractors

Alpha Pipe Passes a Decade

Benefits of Bonus Depreciation

Product Profile: Yanmar’s Compact Wheel Loaders

Letters to the Editor

Battling a Sliding Economy
GUCA Members Teaming Up for Kia Plant Project
By Michael Moon

If you turn on the evening news, listen to your favorite talk radio show or simply glance down at the front page of the newspaper, the words and fears of a sliding economy are pronounced and remain a constant across all media. You do not need a high-definition television, the clearest AM signal or a subscription to the most accomplished editorial writers to understand that the economy is suffering. The owners and employees of various industry companies can attest to this harsh reality firsthand.

Although the utility construction industry is experiencing the ripple effect of the current economic state, Georgia Utility Contractor Association (GUCA) members continue standing strong by working hard and remaining dedicated to the utility construction industry.

The west side of Georgia has been buzzing ever since Kia, South Korea’s second largest automaker, announced it was building a plant in LaGrange, Ga., that would produce 300,000 vehicles annually while employing over 2,500 employees. As U.S. automakers General Motors and Ford close plants in Georgia, Kia’s investment in this new Georgia plant will hopefully offset some of the economic losses Georgia’s economy is experiencing from the departure of these other automakers.

To ensure that ground was broken properly on this project, GUCA member Brent Scarbrough & Co. Inc. traveled to the Kia planet site tasked with installing over 60,000 ft of storm drain, 25,000 ft of sewer lines and 20,000 ft of water lines. They began working on this project on Sept. 4, 2007, by devising a precise plan of incorporating 60-hour work weeks, several crews, over 60 employees and immeasurable dedication. This dedication has been recorded by laying a project best of 2,000 ft of storm drain in one day and averaging at least 1,000 ft a day.

An integral part for this project’s progress is keeping safety in the forefront of each worker’s mind. To date, this project is being successfully completed without a single recordable safety accident.

To ensure safety remains a top priority on the project, Brent Scarbrough & Co. Inc. safety director Chris West implements weekly toolbox talks — held every Monday morning in English and Spanish — to remind employees that jobsite safety is not a choice but a requirement for all Brent Scarbrough & Co. Inc. employees.

“Safety first is not only our company’s motto but also a part of our culture at Brent Scarbrough and Company,” owner Brent Scarbrough stated. “Our employees have consistently shown the mental toughness that it takes to perform on such a demanding jobsite. With over 50 pieces of equipment in use at any given time, safety can never be overlooked.”

Another key contractor hard at work on this project is GUCA member Graham Brothers Construction Co. Inc., which was brought in as the earthmoving contractor for this 3,000-acre project.

This is a huge task as project manager Jeff Graham explains, “We’re moving about 12 million cu yds of material in a very short time frame. The job also has very precise compaction requirements.

“Fortunately, we have a lot of experience doing this type of fast-track job. One of our strengths is that we have the equipment and the manpower to adequately staff a job of this size and scope and bring it in on time and on budget,” adds Graham.

To meet these requirements and handle such a large workload in such a short amount of time, Graham Brothers Construction Co. Inc. uses experienced operators and Komatsu equipment from GUCA member Tractor & Equipment Co. GUCA supplier and subcontractor members on this project include: B&B Septic Tanks Inc. /Precast Division; East Jordan Iron Works Inc.; Ferguson Waterworks; Mainline Supply of Jonesboro Inc.; Metro Koring & Supply Inc.; and Tractor & Equipment Co.

Completing the massive sewer construction site of the future Kia Plant, GUCA member BRI Utility Construction Inc. has been brought in by the City of West Point to expand and improve the manufacturing plant’s surrounding infrastructure coming in from the city. Over the last two years, BRI Utility Construction Inc. has installed over 1,600 ft of 24-in. gravity flow sewer lines and over 30,000 ft of 8- to 10-in. force main sewer lines. In addition to these installations, BRI Utility Construction Inc. has completed a 500-ft bore under I-85.

Of course, there have been challenges with traffic control and gaining access to the property because of easement issues with private land owners, but these have been overcome without any serious issues or setbacks.

As progress continues at the LaGrange Kia Plant, GUCA members remain focused on the future. Moving earth and installing underground utilities may never grace the bold print of major newspapers or demand a prime time spot on the evening news, but GUCA members understand the importance of their role in laying the foundation and lifelines for Georgia’s economic success.

Michael Moon is director of membership and communications for GUCA.

National Safe Digging Month Raises Buried Utility Awareness

Warmer weather brings more contracts to bid and more work to be done, and with them come digging jobs that damage utility lines, disrupt neighborhood service and lead to fines and repair costs. But homeowners and contractors have a resource to avoid the accidents — 811, the national call-before-you-dig number.

Each year in the United States, there are nearly 700,000 unintentional underground utility damages — more than one per minute. That is why the Common Ground Alliance (CGA) — the national association created to prevent damage to underground utility infrastructure and ensure public safety and environmental protection — designated May as National Safe Digging Month. Deere and Co., a leading industry supporter of the CGA and its efforts, joins with the CGA to recognize and actively promote this important event.

National Safe Digging Month is dedicated to increasing awareness of safe digging practices across the country and to celebrate the one-year anniversary of 811. Throughout the busy digging month of May, CGA and Deere encouraged homeowners and contractors to call 811 before they dig to prevent injuries, property damage and inconvenient outages.
Calling 811 before digging is an important rule to remember each and every day throughout the year. Whether you’re on the job or sprucing up the homestead by planting a tree or installing a deck, you have to call before you break ground. For more information about National Safe Digging Month, visit www.commongroundalliance.com.

Case Wants to Rock (For the Troops)

Well into its fifth year, the Iraq War rages on. With everything going on in the world, it’s easy for the Iraq War to slip onto the back pages of the newspaper. To keep it fresh in the public’s mind and continue to support the troops deployed overseas, Case Construction Equipment will be co-sponsoring the “Rockin’ for the Troops” concert, held at Cantigny Park in Wheaton, Ill., on July 19, 2008.

The event is being held by Operation Support Our Troops Illinois Inc. (OSOTIL), which was formed five years ago by military family members to support members of the Armed Forces deployed in harm’s way. The group has since grown to be one of the largest military support efforts in the country.

“Case has a long history of supporting the U.S. military,” said James Hasler, vice president, Case Construction Equipment.
“During the last four years, we earned contracts to provide more than 5,000 pieces of construction equipment. We currently have a facility in Balad, Iraq, to repair equipment. Plus, as recently as last Christmas, we donated care packages to U.S. troops in Iraq. Sponsoring an event like this is yet another way we stand behind our armed forces.”

For the past two years, OSOTIL has partnered with “CSI: New York” star Gary Sinise and the Lt. Dan Band to produce a sell-out crowd of 10,000 attendees. This year, Sinise and his band will be supporting the troops once again, with special guest appearances from American English and Dick Biondi.

Last year’s event allowed OSOTIL to: donate $75,000 to the effort to bring the first Fisher House to Illinois; donate $50,000 to Hines VA Hospital to go directly to the needs of the Poly Trauma Unit for treatment of those returning with traumatic brain injury, spinal cord injury or blindness; ship more than 5,600 care packages to troops serving oversees; expand efforts to provide comfort, support and resources to families with deployed military members; provide welcome and support to returning veterans; and support other organizations whose mission is similar, including the USO and Operation Homefront.
Cantigny Park, the Rockin’ for the Troops site, opens at noon, and live entertainment begins at 4 p.m. Gary Sinise and the Lt. Dan Band hit the stage at 7:30 p.m. Tickets are $25 and are available at participating Jewel-Osco stores, online at the OSOTIL Web site at www.osotil.org/rockin2008.html or by phone at (800) 594-8499.

“We are thrilled to have Case onboard as a Rockin’ Partner,” said Deborah Rickert, president of Operation Support Our Troops — Illinois Inc. “We know that Case already supports our troops with equipment used to build infrastructure and maintain military facilities at home and abroad, and we very much appreciate the extra level of support represented by this sponsorship.”

D. Brown Management Expands Financial Offerings to Contractors

In today’s volatile economy, we need a hero — someone to protect and guide us through difficult times. Today’s economic heroes, courageous financial advisors, wear suits with ties and jackets, not body armor or skin-tight spandex. Adding to its arsenal of tools that crusade against poor financial decisions, D. Brown Management has expanded its financial services offerings to meet the growing needs of companies wanting to improve long-term profitability through strong financial management practices.

As a leading provider of management consulting services for the construction industry, D. Brown Management developed the financial services program as a way to enable clients to make data-driven decisions to manage their finances for today while preparing for tomorrow.

Because D. Brown Management focuses exclusively on the construction industry and has a deep understanding of contractor operations, technology and accounting, its financial service offerings provide a specialized approach to clients that ensure the effective integration of accounting systems with overall company operations.

“Studies have shown that the average construction foreman makes approximately 100 decisions per day,” states Dan Brown, president of D. Brown Management. “Our belief is that these decisions can be better made if they are based on accurate, timely financial information.”

As part of its financial services, D. Brown Management offers a step-by-step process towards operations and accounting integration. Starting with a detailed analysis, the process includes a review of basic accounting and reporting to ensure that regular and accurate summary reports, including P&L and balance sheets, are being correctly generated. From there, D. Brown Management puts the systems into place to properly account for indirect and direct job costs and begins regular production of a work-in-progress report, which is required for banks and bonding companies. This provides a basic foundation.

Then, D. Brown Management works with clients to standardize job cost codes and trains everyone on the project team on how to use the information and understand how their role affects gross profit, net profit and cash flow.

Once the integration of operations and accounting and training has been completed, D. Brown Management then assists clients to develop annual business plans, integrated compensation programs and real-time feedback tied into accounting systems and other information.

“We find that most clients come to us with accounting systems that are primarily focused on providing summary-level reports for management, banks, bonding companies and the IRS,” says Brown. “However, once their operations and accounting are effectively integrated, they are amazed at how this critical data that is now readily available to them can assist tremendously in day-to-day and long-term business planning.”

Alpha Pipe Passes a Decade

In April, Alpha Pipe Co. wrapped up the celebration of its 10-year anniversary. Founded in 1997, the company’s co-owners Carl Hylton and Jim Roeder had a primary business focus of nationwide distribution of new, surplus and used large outside-diameter line pipe. Hylton and Roeder have combined experience of over 60 years in the pipe and pipeline industry.

Today, Alpha Pipe Co.’s corporate headquarters is located in St. Louis, Mo., with stocking locations strategically located in Houston, Baton Rouge, La., Phoenix, Ariz., St. Louis, Mo. and Lexington, Ky. And recently, Alpha Pipe forged relationships with new manufacturers to offer expanded services to their customers including sales of HDPE pipe and fittings.

Through a proven track record, Alpha Pipe Co. has become a leader in both the supply of pipe and asset recovery, supplying services to some of the largest companies in the industry including Algonquin Gas Transmission, Bechtel Corp., ConocoPhillips, Dominion Transmission, Duke Energy, Florida Gas Transmission, Gregory & Cook Construction, Henkels & McCoy Inc., Louisiana Interstate, Michels Corp., Rogers & Phillips, Sheehan Pipe Line Construction, Sunland Construction, U. S. Pipeline and W. E. Energy.

Over the years, Alpha Pipe Co. has purchased hundreds of miles of new, surplus and used line pipe from the asset recovery divisions of the natural gas and pipeline industry, while developing a reputation for honesty, reliability and getting the job done right the first time. Hylton and Roeder take a hands-on approach to their business by sharing their expertise to provide innovative solutions to unique situations and invariably one of them will be onsite to ensure direct access when and if required.

Their services also include the removal of pipe from the ROW or staging areas, loading, unloading, abatement and site restorations. Once the pipe has been taken up, it is prepared for resale by removing old coatings, straightening, cutting and beveling. The resulting material is then sold for numerous uses — such as sign poles, piling, dredging and bridge building — throughout the U.S., Canada, Mexico and South America. Much of the pipe is recycled back into the pipeline industry for temporary lines, bore casing, culverts and flume.

Just as they strive to maintain their customer relationships, Alpha Pipe Co. strives to maintain that dynamic working relationship among its sales and support team. Hylton and Roeder forged their partnership while working together at another company and had firm beliefs regarding how a successful organization should be run — and that begins with the treatment of their employees. Hylton and Roeder think of their employees as family. And in fact, some are.

Five years ago, Roeder brought in his step-daughter, Leslie Buxton, to begin learning more about the administration of the company and began training her in the sales field. She is now one of the top sales representatives at Alpha Pipe Co. and looks forward to building her client base over the next 10 years. Leslie spearheaded the movement to expand Alpha Pipe’s product line to include the HDPE pipe sales.

Hylton began training his son, Kyle, back in 2005. Kyle has traveled to many jobsites with Carl over the past two years, gaining invaluable knowledge from his father in a hands-on working environment. Kyle currently attends university in Missouri. During his summer breaks, while not in the field with his father, he works in the office making sales contacts.
When they need temporary help on special projects or to fill in for the support team during vacations, Hylton and Roeder look to family. In addition, Sandra Roeder, Jim’s wife, has worked at Alpha Pipe part-time for the past two years as a receptionist.
And some employees just feel like family. Signing on Steve Olson as part of their sales team in 2001 was a major step for Alpha Pipe Company. Olson brought over 30 years of experience with him to the organization. He has become a favored advisor to Jim and Carl, as well as a mentor to Leslie. Olson’s customers know that they can count on his knowledge of the industry to provide them with the best deals on the pipe they require, delivered in a timely manner.

Cindy Wooten joined Alpha Pipe Co.’s family at the beginning of 2005. She was originally brought in to fill a void in the accounting department, but now manages the office.

She has brought innovative ideas with her and pushed Alpha Pipe to the next level by advocating the latest technology, streamlined sales and accounting procedures and new promotional ideas.

These changes have helped Hylton and Roeder and the rest of the sales team to focus on what they do best — sell pipe. This led to record sales years in 2006 and 2007, and a greatly expanded client base consisting of satisfied customers who received their pipe when needed at great savings. Looking forward, Hylton and Roeder intend to continue this growth into the future, while maintaining the excellent level of quality, pricing and service available to the customers of Alpha Pipe Co.

Benefits of Bonus Depreciation

When President Bush announced that the U.S. government was going to be giving away money, the caveat was that the money should be spent. As rebate checks go out to the American people, the U.S. economy is expected to benefit from the economic stimulus package passed by Congress and signed in February 2008 by President Bush.

Not only does the common tax payer benefit, but businesses will also benefit from a less publicized, but important provision in the package, stated the Association of Equipment Manufacturers (AEM). AEM notes that equipment manufacturers and buyers will find the legislation’s bonus depreciation provision of particular interest.

“AEM strongly supported the economic stimulus legislation, especially the section that provides a bonus deprecation for businesses to deduct 50 percent of the cost of new equipment purchased and placed into service in 2008,” said Dennis Slater, AEM president. “A healthy equipment industry contributes greatly to the overall strength of the economy, helping Americans to keep jobs.

“In a recent poll of AEM construction equipment manufacturing members, 60 percent of respondents said that the bonus depreciation provision will provide their customers with an incentive to purchase new equipment. Manufacturers expect the bonus depreciation will spur business investment in new capital goods by reducing the current year cost of the asset.

Temporary bonus depreciation provisions passed in 2003 have been credited with boosting business spending by four percent in the six months following enactment.”

Product Profile: Yanmar’s Compact Wheel Loaders

Where there’s excavation, there’s the demand for load and carry applications.

The wheel loader is the common tool of choice by most diggers. The correct pairing of machines working in tandem is a sight that displays the greatest degree of fluid motion and production. For tough load and carry jobs in close-quarters, Yanmar’s new compact wheel loaders deliver.

A user-friendly design philosophy was focused on the three major design elements demanded in wheel loaders — ease of operation, versatility and durable on-site performance. The new models also offer a reduced overall height to make them even more compatible with enclosed carrier loading and unloading operations. This lower profile also improves the machine’s center of gravity promoting greater stability in the process.

A fully-automatic drive mode allows the 6,750-lb V3-6 and 7,651-lb V4-6 loaders to accelerate smoothly and change gears with no operator input. A fixed-speed mode keeps them in low gear regardless of the position of the accelerator pedal. Power comes from Yanmar’s highly regarded TNV Series engine. This three-cylinder, water-cooled diesel generates 30 hp and can propel the V3-6 up to 11 mph.

The V4-6 utilizes a 40-hp version of this engine and motivates this loader to a similar maximum speed. A wide engine cover allows easy access to these power plants for routine maintenance requirements.

Driving force is transmitted evenly to the ground thanks to a system of rear axle oscillation. Designed for irregular surfaces, this feature reduces operator fatigue and ensures operator control of the equipment. Combined with a full 10 in. of ground clearance on the V3-6 and 12 in. for the V4-6, unlimited access to any and all parts of the jobsite is the routine.

Single lever operation places the bucket on the ground and at the ready. Actual bucket movement is fast, smooth and consistent. Lifting capacity for both loaders is rated at a hefty 5,760 lbs for the V3-6 and 7,451 lbs for the larger V4-6. Forward and reverse loader movement is also activated by a column shifted lever with a safety lock so the loader cannot accidentally travel in the wrong direction. For multi-purpose versatility, the V3-6 and V4-6 loaders can be equipped with an optional mechanical quick-coupler that fits most skid steer attachments.

LETTERS TO THE EDITOR