The Conveyor 2024 Fall Issue - Economy

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CHAIRMAN'S LETTER

Show, don’t tell: The importance of further educating stakeholders about our industry

PRESIDENT & CEO MESSAGE

Despite economic challenges, California pushes to meet environmental standards

FEATURE STORY

Lynx Cat Mountain Quarry: A local game-changer

FORECAST

An exploration of factors driving construction aggregate demand

EDUCATION

Skate4Concrete’s Construction Summer Camp: A hands-on journey into the concrete and construction industry

DISTANCE MATTERS

7/11 Materials supports Park Fire containment

COMPLIANCE

Environmental Product Declarations: Three key steps to ensure compliance

TRAINING

Economic advantages of tire maintenance in heavy-duty truck fleets

CALCIMA NEWS

CalCIMA welcomes Erik Turner

LEGISLATIVE

The year in brief and a look ahead

NATIONAL ASSOCIATION NEWS

Myftari
Photo of Lynx Cat Mountain Quarry Operations in San Bernardino County.

The focus of the 2024 CalCIMA Education Conference is what happens to our products once they are mined. This is why our theme this year is “If it’s built, we’re in it.”

We’ve spent the last year elevating our industry in the halls of Sacramento and in the communities where we operate. Now we need to take the next step to educate legislators, neighbors, and local officials. We need to show them why our products are important and where our materials are used. In short, we must make clear how our communities, economy, and environment depend on each of us in this essential industry. We produce the essential materials and minerals that build California.

Our materials make reliable roads and bridges as well as strong foundations for our homes and businesses…everyone knows that. Our materials are also used in a wide range of essential products for a new generation including industrial batteries, magnets, raw materials for manufacturing, agricultural feed, renewable energy infrastructure, consumer goods, and digital technologies. Our materials have more end-uses now than ever before. And, as we

keep up with developing rules, regulations, and the collective environmental consciousness of our stakeholders, our products are not only becoming more pervasive but they are becoming cleaner and greener with every passing year.

We each represent an important company that makes CalCIMA what it is today. At the Education Conference, look at each attendee as more than just another person in our industry. We are the team actively working to reduce carbon impacts across our operations. We are using renewable fuels for operations and transportation, developing solar energy and storage projects, and utilizing solar energy for operations. It’s our industry that provides the essential materials and minerals that make clean energy and decarbonization possible.

I hope you enjoy(ed) the 2024 CalCIMA Education Conference. “If it’s built, we’re in it!” n

Vulcan Materials Company

CalCIMA

PRESIDENT & CEO MESSAGE

Despite economic challenges, California pushes to meet environmental standards

As summer comes to a close, we are in a different place than we had anticipated to begin the year. We are navigating a challenging landscape marked by softening private markets, delays in public infrastructure and the escalating costs associated with electrification and emission mandates. As the state pushes for cleaner air and a reduced carbon footprint, contractors face the dual challenge of meeting ever tightening environmental standards while grappling with tightening budgets. Even in the foggiest of days, however, there are several bright lights shining through the haze. First and foremost, interest rates are expected to be on the move downward through the end of the year which should fuel private markets, burning away the limitations of higher finance costs and providing less expensive capital for investment and expansion. Furthermore, the state budget deficit slowed the storm of discretionary bills that target industry and the pain of inflation in food and energy costs will prompt further discretion. That said, we are seeing continued adoption of the materials policies we have been working hard to develop and shape to enable the transition of the materials sector, and there is positive traction in the circular economy as it relates to materials. California’s commitment to sustainability offers another ray of light. Funding to support resiliency and lower carbon operations are finally moving throughout federal and state agencies to support industry. Many state and local agencies are prioritizing investments in “cleaner and resilient” infrastructure. This paves the way for the work we have done and the investments we have made to operationalize and deliver those lower carbon and cleaner materials. From lower carbon, to recycling of materials which

significantly reduces carbon and extends the life cycle, we are poised for this future.

Innovation is and will continue to play a vital role in helping mineral and material providers adapt. When I reflect on the history of CalCIMA’s policy agenda, it is clear we have been preparing for what is to come for years. We sponsored our first recycling bill in 2011, the same year we adopted the mindset that distance matters. Innovation and adaptation also matters. Materials producers have been engaged in continuous innovations, from changes in cement, to increases in processes, to recycling of bitumen. At the Education Conference, we will hear about broader industry wide innovations from the California Mobility Center.

Ultimately, our industry will emerge stronger from these challenges. But we can only do so by working together. Mineral materials and the vital products made by our members build the human environment and create quality of life. As priorities change, objectives occur, and material requirements become more complex, our innovation and expertise will meet the need. We are strong together across all materials classes as our products are woven together to build our society.

Together we can educate and advocate for practical and scalable solutions to these challenges. Together we can advocate for the proper phasing of implementation which ensures the ability of producers to meet society's material needs within the finite budgets allocated to build and maintain our essential infrastructure.

Together we can lead the discussions to ensure that change is an opportunity as we continue to innovate for our future, California’s future. When it’s built, we will be in it. n

Sincerely,

LYNX CAT MOUNTAIN QUARRY: A local game-changer

Asmall unincorporated community nestled in the Mojave Desert, Hinkley, California, is mostly known for its history of environmental struggles. Described in 2016 by The New York Times as a ghost town, this resilient community is finding new ways to thrive through local businesses like Lynx Cat Mountain Quarry Operations, LLC.

Lynx Cat Mountain Quarry is unique because of its hard granite, which is crushed into durable, high-specification materials like ballast for railroads. Since October 2021, Lynx Cat Mountain Quarry has supplied rock and sand to numerous entities, including Caltrans

District 8, San Bernardino County, BNSF Railway, and local military bases like Fort Irwin, Edwards Air Force Base, Marine Corps Logistics Base Barstow, and Naval Air Weapons Station China Lake. By prioritizing local sourcing, environmental responsibility, and diverse ownership, Lynx Cat is helping to shape a sustainable and inclusive future for Hinkley, demonstrating how local initiatives can drive positive change in small communities.

Lynx Cat Mountain Quarry has played a vital role in supporting Hinkley and the surrounding areas by creating jobs and supplying locally sourced crushed aggregate. “Since I started the operations, I've seen Hinkley, Barstow, and

Below: Crushing Class II base and mainline ballast—Lynx Cat Mountain Quarry's top products supporting military bases throughout the high desert.
Above: Gina Zatica, President of Lynx Cat Mountain Quarry Operations, LLC.

the surrounding areas begin to improve,” remarks Gina Zatica, Lynx Cat Mountain Quarry’s owner. “It’s satisfying to support local businesses and infrastructure projects by supplying them with materials. For example, we provided Class II base, ballast, and rip rap for the new Barstow North First Avenue Bridge Project. Driving across the new bridge feels incredibly rewarding, knowing that our materials played a role in its construction. It feels like we’re helping to revive our historic high desert communities.”

The dedicated operations crew members live in the high desert areas of Barstow, Victorville, Hesperia, and Hinkley. Scott Martin, an operator at Lynx Cat, used to drive up to 3 hours one-way down the Cajon Mountain Pass to get to work. The traffic was so brutal that he would often stay with family during the week to avoid it. Since joining the Lynx Cat team, he has a short 15-minute commute from his home in Barstow and has more free time for himself. “I am able to go home each day instead of every 2 or 3 days, see my dogs, check on the

chickens, and get yard work done,” said Martin. “With the money I’m saving on driving and the better pay, I was able to afford a new truck and spend a quarter less on fuel than I used to each week.”

Locally sourced materials shorten transportation distances for reduced emissions and delivers cost savings for contractors. These cost savings mean bigger budgets for more projects to be built throughout southern California. This economic efficiency creates a ripple effect

Below: Loading Class II base keeping local projects on track.

Left: Meet the hardworking crew behind Lynx Cat Mountain Quarry – the driving force behind every load and every success!

L-R: Alex Gonzalez, Scott Martin, Brandon Morales, Stan Northington, Ruben Lopez, Scott Wieneke, Casey Chism, Julian Tudor, Keeth Burns, Gina Zatica, Charles Balderrama, Annie Fox.

that benefits the local economy by keeping money within the community and supporting local jobs.

Lynx Cat Mountain Quarry is not just about sustainability—it’s also a symbol of diversity as a woman-owned, minority-owned, and LGBTBE-certified business. This certification highlights the company's commitment to inclusivity and breaking barriers in the traditionally male-dominated industries of construction and mining.

Stan Northington, a Plant Manager with over 20 years of experience in the rock crushing industry, shares his perspective on working for Lynx Cat. He has seen how diversity in leadership can drive innovation and economic growth. Reflecting on Zatica’s impact as a female president, Northington shares:

“Gina offers a fresh perspective, bringing new ideas and innovative approaches to problem-solving. Entering a predominantly male field as a young woman requires

courage and adaptability. Watching her navigate these challenges with determination is inspiring. It’s creating a more resilient and forward-thinking team culture at Lynx Cat, a company we are all honored to be a part of.”

This blend of diverse leadership not only challenges the status quo but also enhances the company's competitive edge in the industry, proving that embracing inclusivity is not just good ethics—it's good business.

Lynx Cat Mountain Quarry represents resilience and innovation in the high desert. Since Zatica took over the quarry in 2021, the operations have driven local growth through job creation and supplying essential materials for local projects. Committed to sustainability, diversity, and community impact, Lynx Cat is proud to be a part of the high desert community, shaping a brighter future for Hinkley. n

Above: Lynx Cat’s existing plant is efficiently processing mainline ballast, Class II base, and 3/4" crushed aggregate. Looking ahead to 2025, LCMQ is set to expand its crushing operations to increase production and meet the demands of upcoming projects in the high desert.

An exploration of factors driving construction aggregate demand

Since the onset of the COVID-19 pandemic in 2020, the economic landscape has experienced significant volatility. Record inflation became a major concern due to supply chain disruptions from shelter-in-place policies and increased demand fueled by government stimulus. In response, the Federal Reserve raised interest rates 11 times between 2022 and 2023, increasing from a historic low of 0.08% to 5.33%, the highest in over two decades. These elevated rates persist as the Federal Reserve monitors inflation and job growth.

This situation highlights the need for a thorough analysis, which this article aims to provide. We will examine the trends in inflation and job growth that influence the Federal Reserve’s policies on interest rates and then assess how these factors impact the demand for construction aggregate in California.

Inflation

The Federal Reserve raised interest rates to temper demand, aiming to slow economic growth and reduce inflation without triggering a recession. Their target is an annual inflation rate of 2%, as measured by the Personal Consumption Expenditure (PCE) Price Index

from the U.S. Bureau of Economic Analysis. Currently at 2.5%, the PCE has declined from 2.7% in March 2024. The Federal Reserve’s response to whether they will lower interest rates if the PCE remains above 2% is influenced by employment trends.

Employment

The Federal Reserve monitors job growth reports to gauge whether the economy is moving toward a soft landing or a downturn. As shown in Figure 1, job growth has been declining since 2022, with employment across most industries, excluding farming, experiencing a steady decrease. Construction employment has also fallen but appears to have stabilized. Figure 2 provides a detailed view of the construction sectors, highlighting the factors influencing these employment trends.

Examining different construction sectors provides insight into the impact on construction aggregate. Residential construction employment steadily decreased from 2022 into 2023, correlating with the Federal Reserve's 11 rate hikes, which increased mortgage rates and reduced

Figure 1: U.S. Employment Numbers for All NonFarm & Construction Jobs.
Figure 2: U.S. Construction Employment by Type

demand for housing construction. In contrast, nonresidential construction remained relatively stable. Notably, employment in highway, street, and bridge construction surged in late 2022 through 2023, likely due to anticipated funding from the Bipartisan Infrastructure Law (BIL) or the Infrastructure Investment and Jobs Act (IIJA). However, delays in fund allocation have likely led to a decline through 2024.

To illustrate the impact of inflation on infrastructure spending, we compare nominal spending with real spending for highway, street, and bridge projects. Nominal spending, which does not adjust for inflation, has increased. However, real spending, represented by the orange bars, accounts for inflation and shows that, despite the nominal increase, actual spending decreased in 2022. This reflects the diminished buying power of the dollar when adjusted for inflation.

Based on the data reviewed, inflation has moderated, but job growth is slowing, potentially leading the Federal Reserve to lower rates before achieving its 2% inflation target. Chairman Powell has recently indicated that a rate cut may be imminent, suggesting a reduction of 0.25-0.5% could be announced at the Federal Open Market Committee (FOMC) meeting on September 17-18, 2024. This potential rate decrease could influence mortgage rates and construction loan costs, likely boosting demand for construction aggregate in the latter half of 2024 and into 2025. Additionally, a rate cut may alleviate some of the spending constraints linked to presidential election uncertainty.

California

In California, inflation and job growth have mirrored national trends, with inflation easing and employment growth slowing. The primary factors affecting construction aggregate demand in the state are inflation’s impact on infrastructure spending and reduced demand for housing and commercial buildings due to higher interest rates. Given the anticipated

rate cut, the CWC Construction Aggregate Model projects a 1% increase in demand in 2024 compared to 2023, with a similar 1% increase expected in 2025. (Figure 4)

Crystal Waters Consulting (CWC), led by Crystal Howard, brings nearly 20 years of expertise in the construction aggregates industry. Specializing in market analysis, CWC has developed the CWC Construction Aggregate, Concrete, and Asphalt models for demand forecasting. In addition, CWC provides economic impact analysis, royalty reports, lease negotiation support, market studies, mineral valuations, and expert witness services.

Update: On September 19, 2024, after this article was written, the Federal Reserve reduced the Federal Funds rate by 50 basis points to 4.83%. n

1 Source: U.S. Bureau of Labor Statistics

2 Source: U.S. Bureau of Labor Statistics

3 Source; Nominal spending – Federal Reserve Economic Data; Real Spending – CWC adjustment for inflation using the producer price index.

4 Source: Blue Line -Construction Aggregate Consumption Estimate 2002-2023 was obtained from the United States Geological Survey (USGS). Dashed Gray Line – CWC Construction Aggregate Model

Figure 4: California Construction Aggregate Consumption Estimate & Forecast
Figure 3: Nominal vs. Real Highway, Street & Bridge Construction Spending
SCAN ME

Skate4Concrete’s Construction Summer Camp

A hands-on journey into the concrete and construction industry

Skate4Concrete recently concluded its highly successful Construction Summer Camp, designed to provide 15 to 18 year olds with an immersive, hands-on experience in the concrete and construction aggregates industry

Skate4Concrete is more than just an initiative - it's a platform for empowerment. Designed to bridge the younger generation with the concrete and construction aggregates industry, it offers alternative career pathways that challenge the traditional belief that success is solely tied to a college education. The program enables individuals to explore entry-level careers, fostering community building and career development through interactive activities and educational sessions that highlight the industry’s accessibility and potential for growth.

The camp kicked off with a visit to the Associated General Contractors (AGC) Apprenticeship and Training Trust Program. Students were introduced to detailed information about AGC’s apprenticeship programs, application process, and expectations. They engaged in immersive activities, including metal and wood carpentry and creating concrete molds. Additionally, participants experienced time on equipment operator simulators, which offered a realistic preview of potential career paths in the concrete and construction aggregates industry.

On the second day, students explored Martin Marietta’s quality control lab. They learned about the various steps involved in preparing aggregate for concrete and asphalt, gaining insights into the meticulous processes that ensure quality and consistency. Students also visited Volvo Construction Equipment & Services, which showcased its latest machinery and allowed campers to examine and learn about the advanced technology used in the concrete and construction aggregates industry. Students viewed the engines of these machines and replicated maintenance tasks.

Later, West Coast Sand & Gravel Inc. brought one of its transfer dump trucks to the camp and provided a hands-on learning experience. The students climbed into the driver’s seat to learn about the controls and observed the process of operating the truck by experienced professionals. This practical exposure highlighted the importance of safety and precision in handling heavy machinery and sparked interest in potential careers as drivers. The day concluded with MiraMar College Diesel Technology Program instructor Valentino Nevarez welcoming campers

Left: Students closely examine the mechanisms of a West Coast Sand and Gravel transfer truck, enhancing their understanding of the vehicle and its operation.
Below: Martin Marietta Materials' mechanics provide valuable guidance to trainees, offering insight into a diesel mechanic career.
Photo credit: Martin Marietta Materials

into the diesel mechanic shop. He taught them about the robust work involved in being a mechanic and provided valuable insight into the path to becoming one.

On the third and final day of camp, students visited Enniss Inc., where they participated in the entire process of creating concrete Verti-Block. They emptied molds, cleaned them with scraping tools, prepared them by spraying oil, and assisted in pouring and finishing the concrete. This interactive activity provided a detailed understanding of concrete block production. Additionally, students were shown how to cut, shape, and weld a piece of metal, giving them practical experience in metalworking and fabrication. Students were thrilled to have the chance to have a professionally monitored experience of operating equipment, an opportunity that offered them practical experience and a deeper understanding of the machinery used in the concrete and construction aggregates industry.

The final day concluded with the support of Cemex, Superior Ready Mix, Hester’s Granite, Martin Marietta, and Enniss Inc., where campers participated in mock interviews with hiring managers from each company. This opportunity gave campers a realistic preview of the interview process and boosted their confidence for actual job interviews in the future.

The Construction Summer Camp aimed to expose the younger generation to career opportunities within the concrete and construction aggregates industry. Its success was evident: Those old enough to apply were guided through job application processes, while younger participants gained a clearer understanding of the industry

Above Left: Instructor and trainee working together to set up a concrete form, offering hands-on experience and valuable mentorship.

Above Right: Students prepare to assist in finishing freshly poured concrete for a Verti-Block, guided by skilled craftsmen.

Right: Students took turns on the state-ofthe-art heavy equipment operator simulators, which are paving the way for safer and more efficient heavy equipment operation.

and expressed a desire to pursue careers in this field. Participants interacted with company employees during the camp and received personalized coaching on career pathways to become mechanics, welders, and more. The concrete and construction aggregates industry continues to be essential and offers various opportunities for advancement without requiring a degree.

Skate4Concrete’s Construction Summer Camp effectively demonstrated that success can be achieved through these alternative pathways, inspiring the next generation of industry leaders.

This event was made possible through the generous support of our sponsors, including the Lakeside Chamber of Commerce and the companies that contributed their time, expertise, and materials to support the future of concrete and construction professionals. We extend our gratitude to

Associated General Contractors Apprenticeship and Training Trust, Martin Marietta, Valentino Nevarez of MiraMar College, West Coast Sand & Gravel, Volvo Construction Equipment & Services, Enniss, Cemex, Superior Ready Mix, and Hester's Granite for making this Summer Construction Camp an outstanding success!

About Skate4Concrete

Skate4Concrete bridges the younger generation with the concrete industry, empowering individuals to explore entry-level careers and build their futures. By challenging the traditional belief that success is solely tied to a college education, Skate4Concrete provides alternative career pathways, fostering growth and community development. For more information please visit www.skate4concrete.com n

DISTANCE MATTERS

7/11 Materials supports Park Fire containment

The Park Fire began July 24 east of Chico, near Upper Park Road in Bidwell Park, and spread north toward State Highway 36, east of Cottonwood. Located approximately six miles from 7/11 Materials’ Chico facility, the fire caused massive devastation, burning 429,603 acres and destroying over 700 structures. As of October 1, the Park Fire has been 100% contained.

Within days of the fire starting, Pacific Gas and Electric Company (PG&E) reached out to CalCIMA producer member 7/11 Materials. Located only six miles from the fire, 7/11 Materials’ Chico Aggregates facility was able to supply and deliver crushed ¾” rock for road construction that same weekend.

7/11 Materials plays a vital role in the Chico community and economy. In one weekend, 7/11 Materials was able to deliver over 800 tons of materials.

“7/11 Materials’ proximity to the Park Fire was critical to the road repair success and fire’s containment,” said Ramon Neilson, Aggregate Area Manager for 7/11 Materials. “Having employees who are part of the Chico community, we wanted to get our materials out as soon as possible in order to support our neighbors. It would have been much more difficult to deliver this many materials in one

weekend from a facility further away.”

In a time of need with short notice, 7/11 Materials demonstrated its commitment to the community, proving to be a reliable source to its customers by adjusting schedules, and empowering its team to deliver results safely and efficiently. 7/11 Materials involvement in disaster relief, including firefighting efforts for the Park Fire highlights its dedication to supporting the community whenever possible.

7/11 Materials is part of the Reed Family Companies, which also includes Basic Resources,

George Reed Inc., VSS International, Reed International Inc., and VSS Emultech. Together, these companies contribute to economic growth by providing high-quality products and services, including ready-mix concrete, asphalt, aggregates, construction personnel for commercial and residential projects, and equipment manufacturing and sales. All the companies share a commitment to caring for people, customers, communities, and the environment, guided by the company’s core service principles. n

Park Fire (Image courtesy Cal Fire)

Environmental Product Declarations:

Three key steps to ensure compliance

Effective July 1, 2024, California's Green Building Standards Code (CALGreen) will include embodied carbon emissions as a mandatory requirement, marking a significant shift in the state's approach to sustainable construction. This update has major implications for all producers in California. In this article, we’ll break down the details of the new regulation, explore its impact on producers, and offer guidance on how to comply with the changes.

What Projects Does This Apply To?

SECTION 5.409 LIFE CYCLE ASSESSMENT 5.409.1 Scope.

[BSC-CG] Effective July 1, 2024, projects consisting of:

• Newly constructed building(s) with a combined floor area of 100,000 square feet or greater shall comply with either Section 5.409.2, or Section 5.409.3.

• Alteration(s) to existing building(s) where the combined altered floor area is 100,000 square feet or greater shall comply with either 5.105.2, 5.409.2, or 5.409.3.

• Addition(s) to existing building(s) where the total floor area combined with the existing building(s) is 100,000 square feet or greater shall comply with either Section 5.105.2, Section 5.409.2, or Section 5.409.3.

Effective January 1, 2026, the combined floor area shall be 50,000 square feet or greater. *

Builders must meet one of two embodied carbon options to comply:

1. Section 5.409.3 Product GWP compliance, the Prescriptive Path

Provide a Type III EPD that is either product or factory specific and meets material specific threshold requirements. Producers have full control of this standard and should encourage owners and the AEC community to follow this approach. Providing product EPDs will be lower cost and straight forward for ready mix producers that have implemented an EPD Generator.

2.

Section 5.409.2 Whole building LCA

The Whole building LCA must demonstrate a 10% reduction in Global Warming Potential compared to similar buildings. Whole building LCA is still in its infancy and in most cases will be costly and complex to comply technically and to justify what is a similar building.

If an owner chooses Whole Building LCA, concrete producers can contribute by providing product EPDs, but an outside LCA expert will need to develop the Whole Building LCA and the comparative analysis.

CALGreen Mandatory Requirements For Ready Mix Concrete

Footnotes:

1. The GWP values of the products listed in Table 5.409.3 are based on 175 percent of Buy Clean California Act (BCCA) GWP values, except for concrete products which are not included in BCCA.

2. For concrete, 175 percent of the National Ready Mix Concrete Association (NRMCA) 2022 version 3 Pacific Southwest regional benchmark values are used for the GWP allowed, except for High Early strength.

3. Concrete High Early Strength ready-mixed shall be calculated at 130 percent of the Ready mixed concrete GWP allowed values for each product category.*

* Sourced from: SUPPLEMENT UPDATE GUIDE to the 2022 California Green Building Standards Code (CALGreen)-Nonresidential www.dgs.ca.gov/-/media/Divisions/ BSC/05-Resources/CALGreen/2022-CALGreen-Supplement-Guide07-01-24---Final.pdf

1. Data Collection

12 months of plant data is necessary to ensure that seasonal impacts of projects and utilities usage are incorporated into the data needed for the LCA report.

Data is collected from three areas as illustrated below:

Data collection is the stage of the implementation process that takes the longest to complete and is primarily in the producer’s control. The time it takes to get set up can be reduced when the producer’s project lead is knowledgeable and available on a weekly basis to complete data collection tasks.

2. LCA Report and Verification

Once all of the data collection is complete, a Life Cycle Assessment (LCA) Analyst will conduct an LCA study and prepare an LCA report. The LCA report and your EPD template will be sent to your selected Program Operator (such as: ASTM or NRMCA) for verification. You can view published EPDs on ASTM, NRMCA.

3. Go live on your automated EPD Generator™

Upon notification of verification, your automated EPD generator is set up and unlimited EPDs can be generated any time.

Producers Without An EPD Generator Should Act Now

Once a producer has an EPD Generator installed, producing EPDs for job requirements only takes a minute or two from start to finish.

However, producers without an EPD Generator should consider implementing one very soon. While Climate Earth has staffed up to meet demand, the third party verification process has grown from a few days to at least a month and sometimes more. The result is that the total time to set up an EPD Generator has grown from 3-4 months to over 5 months, and this trend is expected to continue. In order to meet these requirements for upcoming projects, it is important to start now.

What Is The Lesson?

Our industry is moving rapidly into a more sustainable future. Concrete is leading other core materials such as wood and steel. CALGreen can be seen as a challenge or an opportunity to expand the concrete industry leadership. At 175% of the NRMCA regional averages, the CALGreen benchmark will initially be easy to meet. The time to move is now.

This information has been provided courtesy of: Climate Earth’s EPD Generators™ are running at 159 ready mix and block plants in California, over 1,200 plants worldwide and more than 69,000 EPDs have been published to date.

For more information and to see a demo of Climate Earth’s EPD Generator™, take a look at the EPDs made easy webinar Climate Earth hosted for CalCIMA in November 2023 or visit: climateearth.info/calcima n

Economic advantages of tire maintenance in heavy-duty truck fleets

CalCIMA members gained invaluable insights into tire maintenance and its economic impacts to their fleets during a specialized training seminar hosted by Bridgestone Tires and Parkhouse Tire in June. Held at the Parkhouse Tire retread facility and Bridgestone Tire Distribution Center, the event attracted fleet managers, maintenance professionals, and industry leaders eager to learn about cost-saving strategies in tire management for heavy-duty trucks. Bridgestone, a global leader in tire technology, flew in one of its top engineers to lead the discussion, focusing on the significant financial benefits of proper tire maintenance.

Bridgestone Tires' senior engineers started the training by leading small groups through hands-on out-of-service tire analyses. Parkhouse Tire followed by taking small groups on a

thorough Bandag retread plant tour, followed by discussions regarding basic tire construction with focus on radial design, tube/tubeless types, tire sizing nomenclature, conventional versus low profile sizes, and load carrying capacity. The group discussed irregular tread wear regarding causes, and constructive tips with emphasis on circumferential and spotty irregular wear, stone/rock drilling damage to belts, and rock blockers.

Understanding the Stakes: Tire Maintenance in Heavy-Duty Fleets

For fleet operators in the construction materials industry, tire maintenance is not just a matter of safety—it's a critical component of the bottom line. Heavy-duty trucks, often carrying substantial loads over long distances, are subject to extreme wear and tear. Being one of the most vulnerable

parts of these vehicles, tires require constant attention to avoid failures that could lead to costly downtime, accidents, or the premature need for replacement.

The seminar underscored the fact that tires are not merely consumables; they are assets that, when managed properly, can deliver significant returns. The Bridgestone Tire engineers presented compelling data showing how proactive maintenance can extend tire life by up to 50%, reduce fuel consumption, and ultimately, lower operational costs.

The Economics of Tire Maintenance

One of the key takeaways from the seminar was the economic impact of tire maintenance on a fleet's overall budget. The

Above: Bridgestone Tire engineers lead a thorough discussion regarding tire construction.

Bridgestone Tire engineers highlighted several areas where fleets can realize savings:

1. Extended Tire Life: Proper inflation, regular rotation, and timely repairs can dramatically extend the lifespan of a tire. Engineers explained that under-inflated tires wear out faster and are more prone to blowouts, which can lead to costly roadside repairs and vehicle downtime. By maintaining the correct tire pressure and conducting regular inspections, fleet managers can avoid premature tire replacements.

2. Fuel Efficiency: Tires properly inflated and aligned reduce rolling resistance, which in turn improves fuel efficiency. In a fleet of heavyduty trucks, even a small increase in fuel efficiency can lead to substantial savings. The seminar discussed how some fleets reduced fuel costs significantly through rigorous tire maintenance practices.

3. Reduced Maintenance Costs: When tires are well-maintained, it’s less likely to cause additional wear and tear on other vehicle components. Misaligned or unbalanced tires, for example, can put extra stress on the suspension system, leading to more frequent

and expensive repairs. By ensuring that tires are always in optimal condition, fleet managers can reduce the frequency of these costly maintenance issues.

4. Retreading as a Cost-Effective Solution: The seminar also covered the benefits of retreading, a process where the worn tread of a tire is replaced with new tread, effectively giving the tire a second life. Retreading can be up to 50% less expensive than purchasing new tires and, when done correctly, offers nearly the same performance as a new tire. Parkhouse Tire experts emphasized that proper tire maintenance is crucial for maximizing the number of times a tire can be retreaded, further amplifying cost savings.

The Role of Technology in Tire Maintenance

Advancements in tire technology and monitoring systems have made it easier than ever for fleet managers to stay on top of tire maintenance. The seminar introduced participants to Bridgestone’s latest tire pressure monitoring systems (TPMS) and predictive analytics tools that can detect issues before they become serious problems. These

technologies provide real-time data on tire conditions, allowing fleet managers to make informed decisions that enhance safety and reduce costs.

The engineers also discussed the importance of integrating these technologies into a broader maintenance strategy. By leveraging data from TPMS and other monitoring systems, companies can establish predictive maintenance schedules that optimize tire performance and extend their lifespan. This proactive approach not only minimizes unexpected expenses but also helps businesses budget more effectively for future tire-related costs.

Conclusion: The Road Ahead

In an industry where margins are often thin, the savings from effective tire maintenance can be the difference between a profitable operation and one that struggles to stay afloat. As more fleets adopt these best practices, the economic advantages will become increasingly apparent, driving further investment in tire maintenance technologies and strategies. n

Above: Bridgestone Tire engineer explains how to read a tire by assessing rebar, nail, curb, and screw damage. And clarifies that technicians use gauges; no billy clubs and kicking tires allowed!
Above: Parkhouse Tire experts walk CalCIMA members through their Bandag retread facility.

CalCIMA welcomes Erik Turner, Director of Legislative Affairs

CalCIMA would like to welcome Erik Turner, its newest Director of Legislative Affairs!

Turner joins CalCIMA after nearly a decade spent working in the Capitol for numerous legislators and across the street as an associate at a top advocacy firm.

Before joining CalCIMA, Turner served as Legislative Director for the Chair of the Assembly Committee on Transportation and then-Chair of the California Legislative Black Caucus, Assemblymember Lori Wilson, during which time he worked on three measures set to appear on the November ballot in addition to covering an array of issues, including the state budget, transportation and construction legislation, energy, utilities, telecommunications, water, and the environment.

Prior to returning to the Capitol for Wilson’s office, Turner worked for Niemela Pappas & Associates (NPA) as an associate lobbyist beginning in 2021. Turner represented and advocated before the state legislature,

governor’s office, and regulatory agencies on behalf of a diverse portfolio of clients, including public sector entities – such as local governments, water & irrigation districts, and publicly owned utilities – as well as private sector market leaders in industries such as building and construction materials, ag equipment & heavy machinery, cybersecurity, technology, finance, and cryptocurrency. He developed and implemented successful legislative and political strategy and messaging for clients on a wide range of issues, was a frequent collaborator with stakeholders to build strong coalitions, facilitated relationships for clients with legislators and staff, and further cultivated connections in and around the Capitol.

Turner served as Legislative Director for Assemblymember Rudy Salas beginning in 2018 and as Communications Director and Legislative Aide for Salas in 2017. Salas had served as a co-chair of the "moderate caucus" and later

became the Chair of the Joint Legislative Audit Committee. He oversaw legislative and budget priorities and managed legislative staff, helping to secure millions of dollars in allocations from the state budget for the Central Valley and staffing innumerable pieces of legislation signed into law, while also crafting strategic messaging for the legislator. Turner also assisted on several of his campaigns and served as a spokesperson during an expensive electoral race in 2018 in which Salas decisively won reelection.

Turner began his tenure in the California Legislature in 2016 as a legislative intern for the thenSenate Transportation Committee Chair who authored the landmark transportation infrastructure funding measure SB 1, before he joined another Silicon Valley legislator as a legislative aide in 2016.

Turner graduated with honors from the University of California, Davis with Bachelor of Arts in English Literature. He lives in Sacramento, CA with his dog Remy. n

Above: Turner and his dog Remy.
Left: Turner previously served as a Legislative Director for Assemblymember Lori Wilson (D-Suisun City).
Above: Turner (left) served as Legislative Director, Communications Director and Legislative Aide for then-Assemblymember Rudy Salas (AD-32) in 2017-2018.

• Utilizing Type 1L (HS) low carbon cement to reduce embodied carbon and CO2 emissions.

• Providing innovative, high performance mix designs with third party verified Environmental Product Declarations (EPDs) available with every mix.

• Incorporating a large fleet of bulk material haulers (aggregate and cement) and concrete mixers that run on renewable natural gas RNG, reducing GHG emissions.

• Technically advanced, high production facilities providing superior quality and service throughout Los Angeles, Orange and Ventura Counties.

nrmcc.com

The year in brief and a look ahead

Am id a tumultuous election cycle and shifting political and fiscal realities in California, the State Legislature is in a time of transition – and yet, in many ways, the more things change, the more they stay the same. Regardless, one thing is certain: There will be no shortage of pressing issues ahead and exciting new opportunities to build on CalCIMA’s past successes.

In 2024 the legislature looked a little different with new leaders taking the helm in both houses – Senate Pro Tem Mike McGuire (D-North Coast) and Assembly Speaker Robert Rivas – but the make-up was primarily the same with democrats still holding supermajorities. The 2025-26 legislative session will see a sizable crop of new legislators (35 in total), but it appears unlikely that the democrats will lose supermajorities in either house. Seemingly endless speculation surrounded Governor Newsom’s future for much of the year, but has mostly died down (for now) as he enters his final two years as governor.

A multi-billion dollar budget deficit forced some cuts to climate and transportation funding, but various budget solutions – using reserves, cost shifts, reversions, deferrals, and delays – and windfall federal funding, as well as a $10 billion climate bond being put onto the ballot, helped to stop the bleeding. The state budget also addressed the shortfall through a temporary revenue increase that limits tax credits to $5 million and suspends tax deductions for net operating losses (NOLs) until 2026.

Looking ahead, the fiscal outlook is fairly uncertain. It was recently reported that California was nearly $2 billion over forecast in corporate tax receipts since April. However, the Legislative Analyst’s Office has projected modest operating deficits over the multiyear period—ranging from a very small deficit in 2025-26 to larger ones in the out-years.

The outcome of the election and reality of state revenues will have an enormous influence on shaping policy discussions in Sacramento for the 2025-26 legislative session. While California enacted sweeping climate policies in years past, including corporate emissions reporting laws SB 253 and SB 261, 2024 was quiet by comparison. Instead, energy affordability became a primary focus of the administration and legislature at the end of session.

This resulted in last-minute affordability proposals to reduce utility bills and streamline clean energy, which mostly failed to pass. However, the governor called a special session for the legislature to hear proposals requiring oil refiners to keep a minimum reserve on hand to reduce fuel price spikes. We can anticipate climate policy will be central to the legislature next year as efforts to renew the state’s cap-and-trade program which expires in 2030 are already being contemplated.

After successfully supporting and influencing various pieces of legislation signed by the governor this year (e.g. PAGA reform), CalCIMA is continuing to build into next year and expand its support and reach within the legislature. Major issues relevant to the industry – from emissions to infrastructure finance, from sustainability to conservation, from recycling to water quality – remain at the forefront for legislators and the administration. We look forward to a busy year ahead! n

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NATIONAL NEWS

National association news

ESSENTIAL MINERALS ASSOCIATION (EMA)

Essential Minerals Association Industry Update

With the upcoming election, EMA is already looking ahead to the work the new Congress must undertake in the new year. The tax bill will be a big undertaking in 2025, and EMA has already started outreach to lawmakers about the Percentage Depletion Tax Deduction that mineral companies can claim as a deduction for depletion a percentage of the gross income on their properties. This is a critical issue for the mineral companies’ ability to start and maintain operations, and EMA will be asking Congress to maintain this deduction in next year’s tax bill. Mark your calendars for EMA’s 2025 Annual Conference – coming to you in Monterrey, California on May 5-8. The conference represents an opportunity to network with colleagues and gain insights into the top issues the industry is facing. Registration will open in early 2025. Prospective members that produce or process minerals should reach out to Chris Greissing at chrisgreissing@essentialminerals. org for information on a one-time complimentary registration.

NATIONAL ASPHALT PAVEMENT ASSOCIATION

(NAPA)

EPA Selects NAPA for $10M Grant

On July 16 in front of Superior Paving Corp.’s Bull Run asphalt mix plant in Chantilly, Va., the EPA announced 38 grants totaling almost $160 million to support low-carbon construction materials. Superior, a NAPA member, was chosen to host the national announcement, reflecting the asphalt pavement industry’s longstanding commitment to lowering emissions while producing materials more efficiently. Reflecting on the launch of The

Road Forward just three years earlier, NAPA Vice President for Engineering, Research, & Technology J. Richard Willis, PhD, outlined what the EPA grant would empower the industry to do next. “We’re going to revolutionize what we have right now by making asphalt EPDs more robust. We’re going to allow students in the industry to grow in their knowledge of EPDs, life cycle assessment, and asphalt. And we’re going to take the next step by looking beyond the gate of this asphalt plant and start looking at the whole life.” The grant is expected to be funded in Fall 2024. Program updates are provided at NAPA meetings and on NAPA’s websites: AsphaltPavement.org and NAPANow.org.

NATIONAL STONE, SAND & GRAVEL ASSOCIATION

(NSSGA) Sensible Tax Reforms to Support Our Industry

Association members from NSSGA, NAPA and NRMCA met with lawmakers during the Joint Hill Day on Sept. 26 as part of the annual Legislative & Policy Forum. Without Congressional action, several key provisions from the Tax Cuts and Jobs Act of 2017 are scheduled to expire at the end of 2025.

A key priority for NSSGA is sensible tax reform to remove burdens and foster innovation. This includes:

– Permanently expanding bonus depreciation to encourage capital investments.

– Reverting R&D deduction limitations so that research and development expenses are deductible within the same fiscal year.

– Maintaining the 21 percent Corporate Tax Rate without an additional minimum tax.

– Permanently extending Section 199A’s 20 percent deduction for qualified business income.

– Fully repealing the 40 percent federal estate tax.

– Maintaining the percentage depletion allowance, providing a 5 percent capital cost recovery method for sand, gravel and crushed stone and 14 percent for industrial sand development.

Policymakers must consider industry feedback while laying the groundwork for the next tax reform package. NSSGA will continue working with Congress and the new administration on tax code changes to support the aggregates industry and strengthen the national economy.

To learn more, visit nssga.org

NATIONAL READY MIXED CONCRETE ASSOCIATION (NRMCA)

NRMCA Selected for EPA Grant Aimed at Reducing Embodied Carbon

US EPA has selected NRMCA for a $9.63 million grant aimed at reducing embodied carbon of concrete. Through this five-year project, NRMCA proposes to increase the quantity of ready-mix concrete EPDs by providing rebates to producers to offset the cost of publishing EPDs. In addition, NRMCA plans to provide data quality management oversight and training to improve the quality and robustness of EPDs. NRMCA also plans to enhance its existing

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Bakersfield Branch

19428 Colombo Street

Bakersfield, CA 93308

Phone: 661-392-1912

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Yuba City Branch 1690 Sierra Avenue

Yuba City, CA 95993

Phone: 530-674-2444

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Fresno Branch 2539 South Cherry Ave. Fresno, CA 93706

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Merced Branch 2280 Cooper Avenue Merced, CA 95348 Phone: 209-722-8844 merced@cir.net

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