project management
Companies may require up to three employees for a larger sized, higher volume operation that might use the ADM MileMaker Series plants, which run in the 120-425 TPH range. Photos courtesy of ADM
Get the Most Out of Plant Labor During, After COVID-19 We all see the pandemic has presented new economic and labor challenges for hot-mix asphalt (HMA) producers. Savvy owners and operators will explore new avenues to overcome the challenges, based on the size of their asphalt operations and revenue potential. With hiring and layoff legal issues to navigate (see the article titled “Tips to Navigate Re-hiring Workforce After COVID-19� from the September issue) into the 2021 asphalt season, asphalt producers continue their attempts at producing readily available and high-quality mix during challenging times. It is more important than ever that asphalt producers operate for a high return on investment (ROI), which requires they understand the significant role labor plays in ROI. Employee training is another area that has been impacted during the pandemic. Although many smaller asphalt-production facility employees train in the field, newer, younger workers who may have had the advantage (pre-COVID) of training with more highly
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skilled workers who did not return to work this year, did not have that advantage, leaving knowledge and skill gaps. Balancing labor considerations with other operational factors, especially with a potentially shrinking labor pool, can be like walking a tight rope. Labor can be expensive, and many asphalt operations have traditionally kept labor costs low with lower compensation scales, even before the pandemic. Although this approach may be seemingly good for the bottom line, there are pitfalls that also negatively impact ROI and endanger revenue streams in ways that are bad for operations in general. Regardless of the asphalt-production facility size, choosing to pay workers at lower compensation scales makes it harder to attract more knowledgeable and skilled workers who are more likely to stay with an operation. This opens asphalt facilities up to high turnover, which is itself costly to the bottom line in recruiting and training costs that become a revolving door, and a continual drain on business capital.
