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GENCOR, YOUR TRUSTED CHOICE!
At Gencor, we’ve led the industry with the most fuel-efficient, environmentally clean and lowest-maintenance design available to the hot mix industry. Gencor Industries remains focused on proactively serving and satisfying its customers from all aspects. Through improved cost-effectiveness, and quality of its products and services, Gencor’s personnel are dedicated to the principle of providing the highest quality to the industry to maintain a sustainable competitive advantage for Gencor. LEADER IN PERFORMANCE AND EFFICIENCY Call 407-290-6000 or visit www.gencor.com
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TABLE OF CONTENTS | DECEMBER 2023
COVER STORY Be Humble and Kick Asphalt One producer is doing what many consider the unthinkable: making asphalt mixes from 100% reclaimed asphalt pavement. Any plant can convert their production, but changing opinions is harder. | 14 TECHNOLOGY MATTERS
SPECIAL REPORT
20 How AI Can Propel the Industry Forward
22 2024 State of the Asphalt and Road Building Industry
As firms continue to embrace automation, upskilling becomes increasingly essential. The industry needs to commit to providing training and development opportunities that help employees expand their technical skills to advance their careers.
A year ago, there was a growing sense that 2023 would see some form of economic recession, but that didn’t happen. This contributed to a greater sense of uncertainty as experts looked towards 2024. The takeaway? Be prepared for anything.
JOBSITE INNOVATON
34 Navigating Used Equipment Purchases While most used equipment purchases go off without issue, there is a circumstance that buyers should be aware of, and that’s whether the used equipment in question has a hidden lien on it.
PRESERVATION UPDATE
38 The Value of Planned Maintenance Planned maintenance is very valuable, maximizing fleet performance and equipment longevity while reducing downtime and operation costs. It also promotes safety on construction sites and provides peace of mind that your equipment is well maintained.
WWW.FORCONSTRUCTIONPROS.COM/ASPHALT
IN EVERY ISSUE 8 Editor’s Perspective
CONTRACTOR WWW.FORCONSTRUCTIONPROS.COM/ASPHALT WWW.FORCONSTRUCTIONPROS.COM/ASPHALT
CONTRACTOR LATEST INNOVATIONS FOR ASPHALT PROFESSIONALS
41 Last Exit
LATEST INNOVATIONS INNOVATIONS FOR FOR ASPHALT ASPHALT PROFESSIONALS PROFESSIONALS LATEST
ASPHALT ASPHALT
DECEMBER 2023 Vol. 37, No. 10
CONTRACTOR CONTRACTOR LATEST INNOVATIONS FOR ASPHALT PROFESSIONALS
LATEST INNOVATIONS FOR ASPHALT PROFESSIONALS LATEST INNOVATIONS FOR ASPHALT PROFESSIONALS
Published by IRONMARKETS
Asphalt
Asphalt CONTRACTOR
CONTRACTOR
LATEST INNOVATIONS INNOVATIONS FOR ASPHALT ASPHALT PROFESSIONALS 201 N. Main Street Ste 350, Fort Atkinson, WIFOR 53538 LATEST PROFESSIONALS (800) 538-5544 • WWW.IRON.MARKETS www.ForConstructionPros.com/Asphalt LATEST INNOVATIONS FOR ASPHALT PROFESSIONALS
Published and copyrighted 2023 by IRONMARKETS. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage or retrieval system, without written permission from the publisher. Asphalt Contractor (ISSN 1055-9205, USPS 0020-688): is published ten times per year: January, February, March/April, May, June/July, August, September, October, November, December published by IRONMARKETS, 201 N. Main St. Ste 350, Fort Atkinson, Wisconsin 53538. Periodicals postage paid at Fort Atkinson, Wisconsin and additional entry offices. POSTMASTER: Please send change of address to ASPHALT CONTRACTOR, PO Box 3605, Northbrook, Illinois 600653605. Printed in the U.S.A. SUBSCRIPTION POLICY: Individual subscriptions are available without charge only in the USA. The Publisher reserves the right to reject nonqualifying subscribers. One-year subscription to nonqualifying individuals: U.S. $45.00, Canada & Mexico $65.00, and $95.00 all other countries (payable in U.S. funds, drawn on U.S. bank). Single copies available (prepaid only) $10.00 each (U.S., Canada & Mexico), $15.00 each (International).
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www.ForConstructionPros.com/Asphalt
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2024 DATES • Week 1: January 22-25 • Week 2: January 29-February 1 • Week 3: February 5-8 • Week 4: February 12-15 REGISTRATION CLASS SIZE IS LIMITED! To secure your seat, please register before December 15, 2023 DETAILS Details can be found at www.blawknox. com/training or call us at 407-290-6000 ext. 342.
The Blaw-Knox University, now in its 58th season, is dedicated to training paver operators and foreman on proper Paver Operation and Maintenance and applied Best Paving Practices through classroom-style and hands-on application courses. For over a half a decade Blaw-Knox has earned its reputation as the go to source of training and instruction on hot mix paving. Blaw-Knox provides improved technical and problem solving skills on a variety of paver operations and maintenance topics. Course instructors share decades of field and teaching experience with attendees, including training on the latest DOT requirements. Blaw-Knox offers multiple dates to satisfy the demand for its popular courses.
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DIGITAL CONNECTION www.ForConstructionPros.com/Asphalt
Dynapac North America has BIG Plans for PAVE/X The live equipment demos in San Antonio, January 30-February 1 2024, will feature 14 different manufacturers in the paving and pavement maintenance space.
Watch the video at: https://asph.link/mtmtoljs
What’s New At Trimble Dimensions 2023
Which Tires Are Right for Your Wheel Loader?
3 Construction Trends You Can’t Ignore
Trackunit Rolls Out Emissions Reporting Software
Trimble partners with Microsoft by harnessing Azure AI, plus announcements regarding autonomy, integrations within the Trimble Construction One platform and a focus on small contractors.
Wheel loader performance rides on the right tire selection. Get tips on when to choose radial versus bias tires along with guidelines on proper tire pressure.
Soaring home prices, the nation’s most expensive property insurance market, high interest rates and increases in construction costs are all contributing to a housing affordability crisis in a state that cannot keep up with the demand.
Emissions Reporting harnesses synthesized machine metadata and individual equipment profiling to unlock fleet emissions reporting for off-highway machines and equipment.
Read more at: https://asph.link/ vderus28
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Get social with us! Share pictures of what you’re working with over 29,000 other asphalt contractors on our Facebook page: Facebook.com/Asphalt.Contractor
6 ASPHALT CONTRACTOR DECEMBER 2023 ACON1223_02-7_TOC_BN_BN.indd 6
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ASTEC SERVICE
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Astec’s commitment to its customers extends beyond making the sale. From the beginning, our service team has provided construction services for the equipment we build. Astec construction and relocation services for asphalt plants include plant and equipment installs, plant tear-downs and moves, silo repairs, and industrial piping and tank farm installs. Efficient planning minimizes downtime, local regulations and permits also play a key role. Astec has an extensive history and experience with permitting and regulations. Safety, efficiency, and compliance are paramount throughout the process.
Scan QR code to see Astec’s Asphalt Service & Construction offerings.
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EDITOR’S PERSPECTIVE EDITORIAL
Brandon Noel, Editor
Editor ............................................................................. Brandon Noel bnoel@iron.markets
Contributing Editor .............................................Jessica Lombardo
bnoel@iron.markets 234-600-8983
jlombardo@iron.markets
Managing Editor ............................................................... Gigi Wood gwood@iron.markets
Aghavni/AdobeStock
Senior Editor, Construction Technology, IRONPROS .................................. Charles Rathmann crathmann@iron.markets
Senior Editor, Equipment & Workwear, IRONPROS .......................................... Michael Cheng mcheng@iron.markets
Junior Editor .............................................................. Merina Shriver mshriver@iron.markets
AUDIENCE Audience Development Manager ........................ Angela Franks PRODUCTION Senior Production Manger ........................................ Cindy Rusch crusch@iron.markets
Art Director ............................................................... April Van Etten
ON THE ROAD AGAIN
I’ve still got a lot to do and see out there, and I’m going to need your help!
T
his month’s issue is a big one. The annual State of the Asphalt and Road Building Industry report is always packed with information and answers from some of the leading experts in the country. These are some of the people who can speak to things moving and changing behind the scenes, in places where they might not be so obvious. Their insights can help shed light on what the year to come might look like for the work that you all do day-in and day-out. It’s my second State of the Industry report since becoming the editor of Asphalt Contractor. It makes me reflect on all that I’ve learned during the past year, and how difficult it felt to formulate questions a year ago, when I felt I didn’t have enough of a grasp of the industry itself, yet. Of course, while I’m still very much learning the asphalt world, when it came time to make my questions this year -- things come much easier to me now. The questions in this issue are really a reflection of what I observed during the past 12 months, and represent real inquiries into what might be around the corner.
type of asphalt jobs that fall under the other magazine I’m the editor of: Pavement Maintenance. I did get to visit two asphalt plants this year. One of those visits is the topic of the current cover story. However, I still have not had the chance to visit a highway-scale road building jobsite. That is something I really need to remedy next year. So, for 2024, if you work or own an asphalt plant, or work on or own a road building crew (or both), and you have a job you think should make the pages of the magazine, then I need your help. I’m just one guy, and I can’t know what I don’t know about. So, this is you chance to reach out and hit me up. I may not be able to come to every single invitation, but I’m going to try and make as many visits happen next year as I can. Email me during this cold offseason, and let’s make a plan! Maybe your crew and/or company can be featured right here in the pages of the magazine. My email is Bnoel@ iron.markets (reflecting our company’s recent name change!). The jobsite visits continue to provide the greatest education for me, as I grow into this role, and I can’t wait to see what 2024 will bring. See you on the road!
WHAT’S NEXT FOR ME In 2023, I visited a fair number of jobsites. However, the majority of those visits were the
8 ASPHALT CONTRACTOR DECEMBER 2023 ACON1223_08-9_Editorial_BN gw.indd 8
ADVERTISING/SALES Brand Director .......................................................... Amy Schwandt aschwandt@iron.markets
Brand Manager ......................................................Megan Perleberg
mperleberg@iron.markets
Sales Representative ....................................................Sean Dunphy sdunphy@iron.markets
Sales Representative ......................................................Kris Flitcroft kflitcroft@iron.markets
IRONMARKETS Chief Executive Officer................................................... Ron Spink Chief Financial Officer .......................................... JoAnn Breuchel Chief Revenue Officer ............................................ Amy Schwandt Corporate Director of Sales ................................... Jason DeSarle Brand Director, Construction, OEM & IRONPROS ..................................................... Sean Dunphy VP, Audience Development ................................... Ronda Hughes VP, Operations & IT ..................................................... Nick Raether Content Director ....................................................... Marina Mayer Director, Online & Marketing Services ...... Bethany Chambers Director, Demand Generation & Education ............. Jim Bagan Content Director, Marketing Services ...............Jess Lombardo CIRCULATION & SUBSCRIPTIONS P.O. Box 3605, Northbrook, IL 60065-3605 (877) 201-3915 | Fax: (847)-291-4816 circ.asphaltcontractor@omeda.com
LIST RENTAL Sr. Account Manager .............................Bart Piccirillo | Data Axle (518) 339 4511 | bart.piccirillo@infogroup.com
REPRINT SERVICES Brand Manager ..................................................... Megan Perleberg mperleberg@iron.markets | (800) 538-5544 Published and copyrighted 2023 by IRONMARKETS. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or any information storage or retrieval system, without written permission from the publisher.
@ASPHALTCONTRACTOR @ASPHALTCONTRCTR @ASPHALTCONTRACTOR @ASPHALT-CONTRACTOR-MAGAZINE
Published by IRONMARKETS 201 N. Main St. Ste 350, Fort Atkinson, WI 53538 (800) 538-5544 • WWW.IRON.MARKETS
www.ForConstructionPros.com/Asphalt
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NEW PRODUCTS Topcon LN-50 3D Laser
Yanmar TL100VS Compact Track Loader The TL100VS comes equipped with a 103.5-hp Tier 4 Final Yanmar diesel engine and standard 40 gpm high flow for performance capacity on the jobsite. Paired with a 3,600-lb. standard operating capacity and 10,286-lb. tipping load, the TL100VS is available in Yanmar Premium Red color. Travel speeds up to 8 mph round out the performance features, while 4.5 psi ground pressure allows performance on sensitive, unstable surfaces. The TL100VS improves operator experience with premium 360-degree visibility and a 7-in. color display. Operators can access a standard suspended seat and a removable roof hatch escape inside the cab.
Mecalac AX1000 Articulated Loader Features a single boom that offers rigidity and strength, resisting the twisting that can occur with the traditional two-arm setup. Combining large, tinted windows with the monoboom design, it eliminates the two loader arms obstructing the operator’s view and allows clear visibility to the left and right in addition to straight ahead. This machine has a standard bucket volume of 1.3 cu. yd. (1 cubic meter) plus a 75-hp engine. The machine has a lift capacity of 9,038 lbs. (4,100 kg). Further, the AX1000 maintains lifting power from the ground to its highest point.
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Topcon Positioning Systems has announced the launch of the LN-50 3D laser, the latest addition to the LN layout navigator family of instruments. Intended to be a solution for digital layout, the LN-50 has a 50-meter (164-ft.) range as compared to the longer-range, full-featured LN-150. The new LN-50 is designed specific to homebuilders, mechanical, electrical, plumbing (MEP) trades, concrete contractors and others to achieve high-speed precision in their measuring and layout work, mitigating the risk of errors that can lead to rework. The LN-50 works with Topcon Digital Layout building construction software.
L
Cat 432 Backhoe Loader
Earthwave FleetWatcher Earthwave’s FleetWatcher has integrated with B2W Software, resulting in added functionality for customers. Machine hour readings from FleetWatcher equipped assets flow through to populate B2W modules, thus eliminating the manual input of this information. Because data is tied to equipment activity, the realtime data details who worked and for how long, thus eliminating time-card overhangs. Information from rolling assets as well as off-road equipment is automatically captured for heavy construction contractors of all sizes. Contractors using B2W to manage operations and equipment maintenance can leverage the integration with FleetWatcher telematics to complete the data transfer chain. With automated data capture and reporting from project to payment, contractors can manage projects.
The Caterpillar 432 side shift backhoe loader is designed for moving materials, digging and filling on construction sites. This 92-hp machine is powered by a C3.6 electronic turbo Intercooled engine and is equipped with an all-wheel drive configuration, enabling stable performance on rugged terrain. Under the hood, flow-sharing valves help manage oil flow across various functions of the backhoe loader. A four-speed powershift transmission comes as standard on the 432. Operation is facilitated by the directional control lever, rather than floor mounted lever, to shift gears. The six-speed automatic shift transmission is available as an option. Heavy-duty axles and a 100% locking rear differential come as standard on Cat backhoe loaders. The axles provide durability whilst providing traction on uneven surfaces. No daily greasing is required on the front axle.
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LEADING THE WAY Weiler Material Transfer Vehicles lead the way with proven innovations to provide the lowest cost per ton of operation.
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THE POWER T
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R TO CHOOSE With ADM’s standard components, the choice is yours. We can customize any plant we make to your specific production needs.
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PRODUCTION NOTES | By Brandon Noel, Editor All photos by Brandon Noel
Be Humble and KICK ASPHALT
Any asphalt plant can be a Green Asphalt plant and produce 100% RAP mixes. Changing long-held, outdated opinions is the hard part.
I
n the middle of 2016, Green Asphalt was still trying to define its identity as a company, and how they wanted to project themselves into an industry that, at the time, wasn’t interested in what they had to say. More troubling, however, no one was interested in what they were making. “We made an innovative product that no one wanted,” Jim McMurray told me, as we started a full tour of their facilities in Queens, New York. He’s the VP general manager of Green Asphalt, the kind of person who’s so passionate about reclaimed asphalt pavement (RAP) that, at one point in the tour, he thrust his hand into a large pile of newly crushed material and held it up for me to see. Needless to say, from the minute I set foot on the premises, there was an energy that, at first, I couldn’t put my finger on, but eventually became clear when I saw this quote on the side of one of their aggregate loading bins, “Be humble and kick ass.” McMurray was visibly sentimental when explaining the origin of the slogan.
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About five years prior, in Green Asphalt’s very early days, the CEO, Michael Capasso, challenged his leadership through a series of corporate coaching sessions. They were all tasked with picking one person from the entire company with whom they would want travel to the moon. The concept is a fairly typical corporate exercise, but McMurray and the company’s owner happened to select the exact same person. That was one of their mechanics, Brian Cranston, who sadly passed away in 2019. “We had to explain why we chose that person, explaining all their characteristics,” McMurray said. “That’s where we came up with that motto. It means a lot to the company.” AN EXAMPLE OF TRUE DISRUPTION There’s a lot of talk in the corporate world about disruption. Disruption of supply chains, of product offerings, of marketplaces, and on-and-on, especially when it comes to the technology
This is Green Asphalt’s 2.0 plant. It’s a Gencor barrel, but it’s been built with a hodgepodge of parts from differen’t OEM’s, as well as their patended extra bag house, available for anyone to buy.
industry. What does real disruption really look like? At its most basic disruption means changing the rules of competition in an industry by doing things differently. In a practical sense, disruption identifies areas of consumer or market demand, and then applies new techniques, platforms, or paradigms in order to do what is already being done at a lower cost. Disruption like this takes action, and often garners significant investment, because of the potential for profit. In this case, it looks like a company that absorbed a whole lot of risk on an innovative idea where no tangible demand for it existed. “In January of 2008, before Green Asphalt existed, the price of asphalt cement (AC) was around $400,”
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PurMoon/AdobeStock
McMurray said. “Then, by August of that year, it was almost $960.” But this was just one of the factors that started to align the need for disruption in the asphalt market. Due to solid waste regulations in New York City, as well as a general lack of available real estate, companies have to pay to dump their RAP. Around the same time, the price to dump went from a reasonable $15-$20 per ton all the way up to $60-$70 virtually overnight. In the wake of this one-two-punch, a wellknown scientist approached the company with a potential solution that involved a process for producing high-performance asphalt mixes from 100% RAP. Currently, they have a contract with the city DOT to take their millings in, because they simply don’t have enough space to put them anywhere else, and through that, they are able to offer an all-in-one solution where they dispose of their millings and pick up recycled asphalt. “We were like, ‘yeah, let’s make 100% recycled asphalt,’ of course, none of us really ever made asphalt before,” McMurray explained. “We started figuring out how to permit a plant like this. The original plant in 2011 was a Frankenstein, hodgepodge of different manufacturers, and then our patented baghouse. Then we worked backwards from the New York City mixes, and basically reverse engineered it using only the materials we had.” OPEN ENDED EXPERIMENTATION The process of development has been anything but a straight line. For example, Green Asphalt currently utilizes a paraffin oil based rejuvenator, but they’ve literally tried everything that you can imagine. Nothing was off the table. “In our first experiments, we used waste motor oil, and we even tried French fry oil,” McMurray said. Incredibly, that didn’t stick. “The reason we switched was not necessarily
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because of performance. It was because the New York City DOT did not have waste motor oil on their approved rejuvenator list. Currently we have mixes at six different labs and they’re running tests as we’re trying to find the best rejuvenator.” EPDS AND BEYOND Green Asphalt has four published environmental product declarations (EPD) created with the National Asphalt Association’s (NAPA) Emerald Eco Label tool. Two of them are for 100% RAP mix designs. Their A1 and A2 scores are near zero, both showing an A1(.78) and A2(.11), which helps keep their overall Global Warming Potential (GWP) low at 43.91. All published EPDs are available on NAPA’s website: https://asphaltepd.org Green Asphalt did spend a significant amount of time and research ensuring that beneath the coating of asphalt, the gradation of the underlying stone was correct after the screening process. This marks the biggest departure between how they treat RAP versus the majority. In plants where 20% RAP content is still the norm, it’s only treated as a single type of aggregate, but the no-additional AC was the real goal. RECYCLED ASPHALT ALCHEMY? On the surface of things, the operations at Green Asphalt have the appearance of a regular run-of-the-mill asphalt plant. It’s important to note this, because one of the most reiterated things during my day at the plant was the fact that ANY asphalt plant can be converted into a 100% RAP producing plant, batch or continuous. The existing machinery is all the same, the only exception being the additional, patented baghouse. Largely, it isn’t what they do that is so different, as much as it is, how they do things differently. The whole process of conversion only takes about three weeks. That’s
something that could be accomplished during any normal offseason. Shutdown in Q4 and reopen for business in Q1 with the ability to produce a mix at a lower cost, and a higher margin. But what if your asphalt plant has its own quarry associated with it? “A quarry is a limited resource,” said McMurray. “What’s the plan when it runs out? In California, they’re no longer permitting new quarries. What if you could keep that resource in the ground? Instead of selling it to yourself at a discount, you could sell it to someone else for a profit?” The whole process begins with an enormous, unprocessed pile of RAP. A sight surely familiar to anyone working in asphalt production. The RAP is then
A fresh pile of Green Asphalt’s, “black sand,” which is one of three fractionates they make from reclaimed asphalt, in order to get the right composition for 100% RAP mixes.
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PRODUCTION NOTES
fed into a standard impact crusher, fitted with a magnetic filtering system to capture any incidental metals. From there it’s processed by way of “fractionating” into three different byproducts simultaneously: what Green Asphalt calls “black sand”, then 3/8, and 3/4 aggregates. From these and their rejuvenator alone, they are able to reproduce every mix that New York City utilizes. No additional AC is used. McMurray grabbed big double handful of the black sand and held it up to me. “This is all coated in asphalt,” he said. “This has 6% to 6.5% asphalt content. This is like black gold. To make top course you would use approximately 50% black sand and 50% of the 3/8 RAP aggregate.” Conventionally, at least 5% of your mix is going to contain fresh AC, the price of which is volatile. It’s fluctuations mean a highly fluctuating price of asphalt per ton. For Green Asphalt, they are incorporating only .5% of rejuvenator, the price of which is fairly stable. Green Asphalt has been charging $58 per ton steadily for its 100% RAP mixes, steadily for 15 years. Some local city contractors who use it, factor that stability so greatly into their bids, that they will delay a project if they have to wait to get Green Asphalt. This very loyal customer base continues to grow, because the product
Green Asphalt is able to keep their price per-ton stable, because it removes the cost-volatile elements from the equation.
offers emissions reductions and cost savings, but the growth is challenged by government agencies. “Besides the rejuvenator, we didn’t want to have to add AC,” McMurray emphasized. “That would defeat the purpose, Right? There’s so much it’s coated on there. Why not reuse it? Why have these piles all over the country? Most asphalt plants make one product. Those using 15%, 20%, and 30% RAP, are using these combined, they crushed it down into one size, and inject it into their mix. They’re not doing the specific quality control you see here.” McMurray continued to explain that this previous way of processing RAP contributed to some of the misconceptions about it. “Historically, it was crushed but it wasn’t tested, and then it just put back in the mix. It’s why there’s been a misconception that RAP is bad. The stockpiles weren’t tested properly, they weren’t sent out for asphalt extractions. That’s why, in the past, when someone tried to go up to 30%-40% RAP the mixes failed.” Essentially, it’s apples-and-oranges. To grasp what Green Asphalt is doing,
The fractionating process takes RAP and makes three distinct aggregate sizes.
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you can’t think of the RAP in the same way. “The previous way the industry has treated RAP is an outdated process. It’s based on outdated data,” McMurray said, almost breathlessly. So, the question is, with the focus on sustainability, reducing emissions, and greener more environmentally viable solutions, like those being heavily supported by federal policy and funding, why isn’t this the norm? Obviously, the regulations regarding performance and mix design limit the amount of RAP, but how do you get new data in front of the people that have the authority to update those regulations? For Green Asphalt’s team, these questions have been much harder than the science behind making 100% recycled asphalt work. A RADICAL RAP PARADIGM SHIFT From talking with McMurray and the Green Asphalt team, you realize that when they talk about RAP and what is generically considered RAP, they are dramatically different things. They believe that when previous failed studies were conducted, likely using between 20%-30% RAP content in the mix, the problem was specifically in how the RAP was treated. In 2023, the science behind RAP has drastically changed.
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PRODUCTION NOTES
The goal should be to simplify, to make it very clear and attainable, so that you can allow for innovation. -Jim McMurray, VP, Green Asphalt
They argue that municipal, state, and federal regulation hasn’t kept pace with the evolution of RAP science, despite the growing political support for greener, more sustainable solutions. Meanwhile, other industries rush to put everything from waste rubber from tires, recycled single-use plastic material, and, as in the state of Florida, radioactive byproducts into our asphalt mixes! “This is not a waste product that you’re trying to jam into your mix, and make it work,” McMurray said poignantly. “It is our mix. It is our raw material. It was made by an approved plant, with approved aggregate, and approved oil. It’s all sitting in the millings. So, bring it back to life and turn it back in.” Green Asphalt has done several presentations at various events, both within the industry and for various people who hold public office. The response is always positive, especially when they explain that it costs 30% less than conventional asphalt mixes. “We tell the town officials, the elected officials, and they say, ‘Wow, this is great. I’m gonna go talk to my DOT managers,’” McMurray told me. “Then they come back and say, ‘It can’t be done 100% RAP, it’s no good. You can’t do that,’ and just it just dies on the fire.” This, despite the fact that they have, and can demonstrate the mix’s consistent performance capabilities.
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All too often, the issue is that they are unable to get an audience with the officials, or, are frequently ghosted or stonewalled when they ask for simple things like: what are the exact requirements they need to prove they can meet in order to be approved. “Agencies across the country have talked about moving towards a balanced mix design, and in that there are two main factors: rutting and cracking,” McMurray explained. “If you find that balance between rutting and cracking, you have a mix that lasts a long time, it’s sustainable. A
Any plant can be retrofitted to make 100% RAP mixes. The conversions can be done in a relatively short amount of time and minimal shutdown.
balanced mix design has certain criteria, rutting tests and a cracking test. If you meet those, you’ve made your asphalt. What we want to know is: what is that criteria? The goal should be to simplify, to make it very clear and attainable, so that you can allow for innovation, not just for our experimentation, but for others to experiment.” THE MAKING OF TRUE BELIEVERS Part of the problem is that every DOT, city to state to federal, there can be different variables. Everyone wants or needs slightly different things, but even if they are the same, whenever you initiate the process with a new DOT you have to start from scratch. Prove the same things over again. That can be a lot to consider for a producer, even if you are very interested in doing a conversion on your plant. Where do you start? “That’s a great question,” said Kerianne Melillo, chief marketing officer at Green Asphalt. “That’s something we bring to the table along with the plant conversion, essentially, a consulting service to share with other producers what we’ve learned through the process over the last ten years. We want to be part of the solution, getting this through a city agency or a state agency. What tests do you have to have done? We have a lot of that information already. We’ve done the research, we’ve
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been through the trials and tribulations.” She continued, “Once you have a meeting with a DOT, you have to be prepared to answer their questions, and their questions are unequivocally engineering based, they are almost never questioning the sustainability benefits of it. It’s very rarely a question of if there’s a cost benefit. It’s really focused on does it perform. So, we have been through that barrier already and we know how to approach those types of hurdles.” On one occasion, they invited a city DOT to a project on a stretch of Pelham Parkway that was being repaved with their 100% mix. “They were very skeptical,” Melillo said. “They turned to me, and they said, ‘How can I trust that this is 100% recycled, because this looks like it couldn’t be more than 20,’ and I asked if they would you like to drive to the plant, because we’re making it right now. They were blown away by how it looked, how it smelled, how it was paved out. They were blown away to the point where they didn’t actually believe it was 100% recycled.” “We have the ability to meet whatever performance is requested,” McMurray said. “Part of our confusion is that balanced mix design, performance based specifications, are not widely accepted. No one can give us that list. So, we don’t even know what we’re trying to meet. They want performance data, and we don’t know what they’re comparing it to.” Melillo interjected, “When it comes to conventional asphalt producers, they’re meeting the volumetric specifications, which we can also meet. But our confusion comes when we speak with someone from a DOT who wants to see our performance data. After we give it to them their response might be that it isn’t good enough, but compared to what? We don’t have any basis for what they want, and whatever that might be, we’ll find a way to get there.” THE NET-ZERO END POINT Something that you have to consider is where the industry says it is headed. Many major players have signed on to the goal of a net-zero carbon emission future by 2050. Everyone I have spoken to agrees that higher RAP percentages will have to, at least, be a functional part of how we attain that goal. The Inflation Reduction Act has provisions to offset the costs of plant upgrades that result in the production of materials with a lower embodied carbon. That could help a producer make the necessary changes, while still offering conventional mixes at the same time. Green Asphalt currently offers traditional mixes, something they added to their offerings, almost to just prove that they could do both. Additionally, according the Green Asphalt, after undergoing a plant conversion to be able to produce the 100% RAP mix, it can pay for initial investment in as little as six months. “We did it not knowing if we would sell anything,” McMurray said. “The city in New York didn’t accept 100% RAP mixes when we started doing this. Now, everyone’s waiting for the customers ask for it. We believed in providing it first, and then get the customers to change their mind. Someone’s got to have the guts to just do it.”
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TECHNOLOGY MATTERS
How AI is Propelling the Construction Industry Forward with Efficiencies As firms continue to embrace automation, upskilling becomes increasingly essential.
T
he construction industry, currently valued at $10 trillion, is set to boost its contributions to the global economy thanks to the rapid integration of artificial intelligence (AI). AI-driven tools and software are accelerating growth by automating workflows in nearly all stages of construction, from pre-construction design, offsite prefabrication and assembly, onsite building to ongoing maintenance and performance. The technology is also modernizing the notoriously complex financial side of the business, empowering construction owners to revolutionize operations by curbing costs from high materials, alleviating supply chain chaos and creating gamechanging efficiencies. These capabilities can help construction firms reap several benefits, including better visibility, faster and more accurate payments, as well as stronger collaboration with enhanced productivity. As more firms embrace the adoption of AI solutions in their back-offices, the construction industry at-large can be propelled forward and experience reduced financial distress while curbing labor market challenges, which ultimately creates a more collaborative future.
EASING FINANCIAL WOES While the construction industry made an impressive rebound from historic challenges brought on by the pandemic and the global economic crisis that followed, its growth hinges on firms’ abilities to accurately manage risk, liabilities and cash flow while sustaining strong relationships with contractors and suppliers.
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@metamorworks - adobe.stock.com
This is no easy feat given that the industry is dealing with wild pricing fluctuations as well as supply and labor shortages that make it difficult to provide reliable, timely bids to drive new business. Inaccurate data and little visibility into these factors also contribute to ongoing challenges in operations. For example, an Autodesk and FMI Corporation survey found that inaccurate, incomplete and inaccessible data may have cost the global construction industry $1.85 trillion in 2020 alone. Conversely, the study shows that firms that effectively collect, manage and analyze their data experience fewer project delays, budget overages, change orders and safety incidents. Automated platforms and solutions support effective data management strategies for construction companies, keeping financial and project data more secure than if executed manually using paper methods, while providing realtime access and powerful insights for firms. As a result, firms can quickly and easily track financial metrics, such
Construction industry growth hinges on firms’ abilities to accurately manage risk, liabilities and cash flow while sustaining strong relationships with contractors and suppliers.
as committed costs, change orders and invoiced costs all the way through to proof of payment. This enables them to carefully manage bids and commitments against budget and time, harnessing better control over cash flow. The solutions can also keep a historical view of work, including what went right and wrong, which can be used to guide future projects and optimize the allocation of labor and materials. This is valuable for when resources are in short supply, as they are today. In addition to providing coursedirecting insights, continuous monitoring provided by AI protects firms by identifying risks—anything from a suspicious payment to a project that has an unusually high rate of safety incidents, to a crew with low productivity rates.
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TECHNOLOGY MATTERS
Flagging risks empowers construction companies to address them and pivot when needed to avoid unnecessary costs or delays. Monitoring also provides protection against security risks like fraud and ensures ongoing regulatory compliance. OFFSETTING LABOR CHALLENGES AND KEEPING UP WITH DEMAND A survey conducted by the Associated General Contractors of America and Autodesk shows that worker shortages continue to plague nearly all construction firms, largely due to an aging workforce and a lack of qualified candidates. Having too few people to do the work makes it difficult for firms to finish jobs on time or take advantage of federal investments in infrastructure and manufacturing, hindering their bottom lines and overall industry growth. In addition to hiring and retention initiatives, such as increased pay, training and development programs to prepare staff for advancements, the industry is leaning on technology to do more with less. New research from McKinsey illustrates this powerful potential, predicting that AI could replace as much as 30 percent of work hours by 2030. Automated bots and software solutions replace labor-intensive manual processes that are mission critical to the construction business, such as those in procurement, finance, accounting and reporting. This frees people from timeconsuming work and empowers them to handle greater workloads without additional hiring. No longer saddled with mundane tasks like entering invoice data or calling suppliers to check on pricing and availability, staff can turn their attention to more satisfying, strategic work, such as managing cash flow, negotiating new vendor contracts and strengthening supplier relationships. Automation also enables growth by eliminating the paper shuffle that ensues between construction firms, contractors and suppliers. For instance, AIdriven, cloud-based financial solutions
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can digitize invoices and receipts and provide electronic payment options, requiring far less time and labor than manual financial processes. Since they eliminate the need for employees to be tethered to an office, the solutions also provide remote work opportunities for staff, allowing firms to recruit without geographical restrictions. @ME Image - adobe.stock.com
SOLIDIFYING RELATIONSHIPS AND POWERING SEAMLESS COLLABORATION The financial side of the construction business is complex, reliant on scores of suppliers, vendors, contractors and subcontractors who might be scattered across jobsites—creating pressures to pay quickly and retain labor over competitors. Finances can be riddled with complexities like partial deliveries and back orders that are intensified in today’s volatile environment, and there’s intense competition for qualified tradespeople. AI-driven tools are providing one of the most powerful ways to cut through the chaos and win contractor and supplier loyalty by paving the way to faster payments. Automated invoicing and payment solutions integrate with accounting systems, replacing manual data entry with advanced capture tools, OCR technology and automated coding, speeding the process and ensuring accuracy. End-to-end solutions eliminate the need for error-prone, slow-moving paper checks and offer suppliers the speed, convenience and security of electronic payments. Because financials are digitized, owners and their suppliers get real-time access to payment statuses. The shared
visibility shows when payments arrive and saves both sides the time and hassle of phone and email follow ups. It also provides peace of mind for suppliers, assuring them that they’ll have cash on hand to pay their bills, their suppliers and make payroll for their employees. For some, that access to capital allows them to purchase inventory and equipment, expand operations and invest in employees. CREATING A MORE EFFICIENT AND COLLABORATIVE FUTURE Advanced technologies like AI are transforming the construction industry, creating new workflows and providing powerful insights that empower firms to build stronger businesses and better serve their customers. The global economy has a lot to gain from this transformation. In fact, McKinsey predicts that if the construction industry can close the productivity gap that it has long suffered from, it could increase its value by $1.6 trillion a year, bumping the global GDP up 2 percent. What’s standing in its way? 87 percent of construction firms polled by The Association of General Contractors and Autodesk said their employees need to possess digital technology skills to be successful as firms adopt exciting new technologies. As firms continue to embrace automation, upskilling becomes increasingly essential. The industry needs to commit to providing training and development opportunities that help employees expand their technical skills to advance their careers. By ensuring that their people develop the skills they need to succeed in an automated workplace, construction companies can increase their productivity, improve employee engagement and drive innovation throughout the industry. Jim Campbell is vice president of construction at AvidXchange.
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SPEICAL REPORT | By Brandon Noel, Editor AdobeStock/pengzphoto
2024
State of The Road Building Industry:
INTO THE UNKNOWN A year ago, there was a growing sense that 2023 would see some form of economic recession, but that didn’t happen. This contributes to a greater sense of uncertainty as experts look toward 2024. The takeaway? Be prepared for anything.
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THE INFLATION REDUCTION ACT: ONE YEAR LATER With the consecutive passage of multiple pieces of groundbreaking infrastructure legislation (the IIJA and IRA) what do you see as the next funding frontier? Where did these legislative efforts fall short of that might be a goal for the next policy-horizon? Audrey Copeland, CEO, NAPA: Looking toward the next Congress, our goal is to ensure that the momentum achieved from IIJA for robust federal funding across our surface transportation network grows as the next highway reauthorization
package is addressed within the next two years. In the interim, maintaining annual appropriations for agencies implementing these infrastructure projects is key, though it has been more difficult in an increasingly divisive and partisan Congress. We continue to work with our coalition partners, SAPA partners, and industry allies to build momentum for the next highway bill. We must show Capitol Hill that IIJA needs to be the rule, not the exception, when it comes to robust federal funding for our surface transportation network. Zachary Fritz, COO, Sage Policy Group: These legislative efforts have failed to address the severe worker
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JOBSITE STATE OFINNOVATIONS THE ROAD BUILDING INDUSTRY
shortages that have plagued the construction industry for several years and now, since the start of the pandemic, affects a majority economic segments. Worker scarcity, especially for occupations that require certain technical skills, has and will continue to put upward pressure on construction wages. That means that, in addition to slower project deliveries, taxpayers are getting less infrastructure per dollar of funding. Where have there been direct impacts from the funding of these bills over the last year? Has the industry shifted as a direct result of those federal monies coming down the pipeline? Alison Black, SVP, ARTBA: The Infrastructure Investment and Jobs Act (IIJA) continues to have a significant market impact as year three of the program gets underway, supporting over 30,000 new project commitments in 2023 alone. This impact has been amplified by states increasing their own transportation revenues through bond issues, raising recurring revenues, new user fees, and General Fund transfers. Contractors were busy last year – with significant increases in the value of work completed on highways (+17 percent versus 2022), bridges (+8 percent), and airport runways (+35 percent).
Zachary Fritz is the chief operating officer at Sage Policy Group, an economic and policy consulting firm in Baltimore, Maryland. He studied economics at Auburn University and formerly researched policy at one of D.C.’s largest think tanks.
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These markets are expected to continue to show growth in 2024, according to ARTBA’s market outlook, with total transportation construction activity across all modes increasing 14 percent compared to a record-level of work in 2023. Highway and bridge capital spending by state Departments of Transportation (DOTs) is expected to grow over 13 percent, according to ARTBA analysis of all 50 state DOT budgets, with 43 states planning to increase or maintain highway and bridge capital spending levels in FY 2024. Copeland: The monies from the IRA package continue to trickle out as various programs and agency guidelines are established, but within IIJA, state DOTs are supporting numerous highway and surface transportation projects across the country, as federal investment exceeds previous levels of support. We have noticed industry enthusiasm for these opportunities, but we also recognize that some states, compared to others, were better prepared from a budget and planning perspective, had overcome local labor and raw material sourcing hurdles, or more aggressively took advantage of federalmatched dollars for certain projects. Fritz: Highway and street related construction spending has risen in the past few years, but not as quickly as one would have expected given these funding packages. While it takes time for funding to translate into construction put-in-place, environmental review laws continue to delay projects, including those with obvious environmental benefits, while also adding to project costs. Several metrics that measure inflation show a steady decline over 12 consecutive months, but other economic indicators indicate that purchasing power is low, confidence is low, and costs of raw materials (and manufactured goods) are still at record highs. Why are these two economic points out of sync? What is keeping construction costs at these higher levels? What might it take to see them come down?
Audrey Copeland was appointed National Asphalt Pavement Association (NAPA) President & CEO in 2019. Previously, she served as NAPA’s Vice President of Engineering, Research, and Technology beginning in 2012. She began her career as a highway engineer at the Federal Highway Administration (FHWA) and then went on to be a highway materials research engineer at FHWA’s Turner Fairbank Highway Research Center where she managed asphalt-related research laboratories and projects. Audrey earned a doctorate degree in civil engineering from Vanderbilt University in 2007 and master’s and bachelor of science degrees in civil and environmental engineering from Tennessee Technological University. She is a registered engineer in the Virginia and Maryland. Audrey lives in Kensington, Maryland, with her husband, Jose Albertini, and their two children.
Fritz: Construction input prices have been well behaved over the past year, increasing just 0.3 percent from September 2022 to September 2023, but are still up more than 40 percent since the start of the pandemic. While supply chain improvements are largely to thank for the recent moderation in prices, I don’t anticipate those costs falling in the coming months; once the toothpaste is out of the tube, it’s not going back in.
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JOBSITE STATE OFINNOVATIONS THE ROAD BUILDING INDUSTRY
I think labor shortages are at least partly to blame for the growing chasm between sentiment, which has been pretty dour, and hard data, which shows an economy with ample momentum. Employers are having to raise wages to compete for workers. I’d also point to inflation. Yes, we’ve seen remarkable disinflation over the past year, as the rate of price increases has fallen sharply, but many consumers were actually hoping for deflation. Again, once prices go up, they rarely come back down (and that would be an entirely different and arguably worse problem). Black: Overall, price indices for highway and bridge construction have moderated in 2023 but remain at elevated levels, meaning the index has stabilized but is not going down. The U.S. Bureau of Labor Statistics measures average prices for key materials used in highway and street construction. While prices have eased for asphalt, plastic conduits, fuel, iron and steel and some services, other commodities and goods continue to show an increase in average costs. This includes ready-mix concrete, pavers and equipment, concrete block, and brick, aggregates, and concrete pipe. Copeland: There are many factors beyond our control, but it is clear that inflationary pressures have hurt the construction materials supply chain harder than other sectors. FHWA shared data illustrating that between July and September of 2022 – peak paving season for many – inflationary costs were up 50 percent compared to costs in December of 2020. A combination of labor shortages, difficulty acquiring raw materials (aggregate or asphalt binder), and increased demand for public works projects across the country has resulted in the construction industry experiencing modest gains from IIJA compared to when the bill first passed at the end of 2021. BUY AMERICAN, BUY CLEAN What is the current attitude and level of buy-in concerning the implementation of Environmental Product Declarations (EPD)? Copeland: In general, paving
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Dr. Alison Premo Black joined the American Road & Transportation Builders Association (ARTBA) in August 2000. In addition to serving as senior vice president and chief economist for ARTBA, she is managing director of the Transportation Investment Advocacy Center program. Black manages ARTBA’s economics staff and is responsible for over 100 studies examining national and state transportation funding and investment patterns, including the association’s landmark economic profile of the transportation construction industry, state bridge condition profiles and annual modal forecast. She has been interviewed numerous times as an industry expert for national and local print, television and radio, including the NBC TODAY show, the Washington Post, NPR, USA Today, the Wall Street Journal, The Economist and industry publications. She has testified before state legislative committees in Illinois, Tennessee, Kansas, North Carolina and Pennsylvania. Black completed her doctorate in economics at George Washington University and holds an master’s degree in international economics and Latin American studies from the Johns Hopkins School of Advanced International Studies (SAIS). Black graduated magna cum laude from Syracuse University with majors in international relations, Latin American studies and Spanish. She is a member of the Phi Beta Kappa and Golden Key Honors societies, and a recipient of the Syracuse Remembrance Scholarship. A native of the eastern shore of Maryland, Black resides in Washington, D.C. with her husband and four children.
contractors and asphalt mix producers already engaged with this topic have great anticipation. There is a growing recognition that pavement owners are interested in EPDs to quantify embodied carbon, and that this will create opportunities for companies to differentiate themselves from their competitors. But there is still a lot of uncertainty around how pavement owners will use EPDs in the context of procurement, project delivery, and other decision-making aspects of asset management. Some of the procurement policies already implemented lack the nuance needed to address the complexity of our industry with respect to agency specifications, local availability of aggregates, and other factors. Mix producers that have developed EPDs for their own products are in a unique position to drive the development of these policies in a way that benefits the industry while helping pavement owners achieve their goals.
How is the majority of the industry positioned concerning both the many new environmental and sourcing regulations? Is it where it needs to be or is it lagging behind? Copeland: In reference to Buy Clean policies and EPDs, the industry is still in the early adopter stage of technological innovation, since fewer than 10 percent of asphalt mix plants have published EPDs. Likewise, only a handful of agencies have formal policies that require contractors to supply EPDs. But there is substantial growth on both fronts, with a steady stream of new asphalt mix plants developing EPDs and at least 39 states expressing interest in using EPDs. As mix producers continue to develop EPDs and evaluate their own operations, they are identifying ways to use the data to advance their interests, whether it’s looking for the ability to use more RAP, communicating the environmental
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JOBSITE STATE OFINNOVATIONS THE ROAD BUILDING INDUSTRY
Driving Union Membership Through Enhanced Education In a one-on-one conversation with Chris Treml (executive director of the International Union of Operating Engineers, National Training Fund), he discussed the role of education in recruitment, as well as, reasons why union membership is more attractive than ever to those entering into the construction industry: In Crosby, Texas, the union has the International Training and Education Center available to all our members to take classes, whether they be in construction, stationery, pipeline, or safety and health. Once they are approved by their local, all they have to do is pack a suitcase and get to the airport. All costs are covered by the National Training Fund. Thousands of members come through every year, because we offer all stages of training to fit the needs of the operating engineer, or for our local union instructors, we offer additional training for them, as well. For our members, it does make them more marketable. All the local outfits have their own prestigious training programs. This is simply an augmentation to what they’re already doing. We have state of the art equipment, the latest and greatest machinery, GPS equipment, excavation equipment, and everything in-between. If a class isn’t available at the local level, and they see it available through us, they can sign up for it. We are partnered with many of the industry’s top manufacturers enabling us to have their components and/or equipment on site when we train our members. That means our members go back to the job with that first-hand experience. This includes emerging trends in things like autonomous equipment. We want to meet all the demands of the industry, ensuring our members are ahead of the curve on any and all new technology that’s out there. However, we also believe that you’re always going to have a place for the human element. There’s a place for everything, you’re never going to get rid of the human worker completely, but this technology is here, so we should embrace it. If we don’t get out in front of changes in the market, then we’re at risk of falling behind. While the industry definitely continues to experience labor shortages, it’s always our goal to increase membership. We see these training opportunities as a large part of how we accomplish that. We believe our members can do better in life, because of things like, better education, higher wages, and retirement benefits. The new workers coming in to the industry today might not always look down the road, or be planning ahead, but at the end of a career, you want to have something to show for it.
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benefits of their products, or implementing energy efficiency projects at their asphalt plants. The supply chain obviously plays an indisputable role in these issues. Is the current supply chain poised to handle the demands that policy makers are placing upon the asphalt and road building industry? Copeland: As agencies advance their efforts to adopt and deploy Buy Clean policies, there is no doubt there will be a strong push for EPDs to fill existing data gaps and include supply chain-specific data, meaning there will be a need for material suppliers such as asphalt terminals, quarries, and additive manufacturers to develop their own product-specific EPDs. Alternatively, and to a lesser extent, they could participate in industrywide life cycle assessments (LCAs) and EPDs. The learning curve on this is pretty steep for most companies, but NAPA is filling the gap with the development of interim guidance for upstream suppliers. The International Training and Education Center (Crosby, Texas). Taken from https://www.iuoe.org/
Have there been any early impacts from either the Buy Clean or Buy American policies? Copeland: We’re starting to see mix producers take a hard look at their own operations to prepare for the changes driven by Buy Clean policies. Some improvements we are seeing include using warm-mix asphalt technologies to reduce mix production temperatures, converting to cleaner fuels, electrifying asphalt plant equipment, and upgrading old batch plants and parallel flow plants to more efficient counter-flow plants. We are also seeing some agencies take a more open-minded approach to updating their specifications, such as exploring policies that allow more RAP in the mix or investigating the use of locally sourced aggregates. CONTINUED LABOR ISSUES In February, the Bureau of Labor Statistics predicted that the construction industry would see a labor shortfall of more than half a million workers in 2023. Road construction being only a portion of that larger figure, how do you feel our industry has fared in relation to other recent years? Fritz: The industry appears to have had an easier time hiring than other construction segments, adding jobs two times faster than the overall construction industry since the start of the pandemic and three times faster over the past year. Despite this rapid hiring, wages in the segment
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JOBSITE STATE OFINNOVATIONS THE ROAD BUILDING INDUSTRY AdobeStock/ Enrique del Barrio
have increased at a slower rate than overall construction wages over the past year, suggesting slightly better labor availability. That is not, however, to suggest that the road construction segment is not facing worker shortages, and the broader construction industry, long plagued by
worker scarcity issues, is a poor measuring stick for healthy labor availability. Given population dynamics, long term fertility trends, and recent federal funding, the segment will likely continue to grapple with worker shortages for years to come. Black: Highway construction employment is at record levels, but
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could probably be even higher, given the current volume of construction activity. The number of workers employed by highway, street, and bridge contractors reached record levels during the 2023 summer construction season, with over 30,000 new workers on the payroll, an increase of 8 percent, compared to 2022. Despite this good news, job openings in the entire construction industry remain at high levels, indicating a demand for workers that is not being filled. TECHNOLOGY: AUTOMATION AND EVS Fleet electrification was big at all the major trade shows this year, as well as in the media. When it comes to the heavy machinery our industry relies on, is there a large group of earlyadopters out there? Or do you see most people across the industry hanging back, waiting to see? Copeland: The landscape of electrified construction equipment appears to be in its early stages of implementation. We anticipate that adoption will gain momentum as more products are introduced to the market. While certain operations and tasks may lend themselves more readily to the transition to electrified equipment, the concentrated efforts of manufacturers in this sphere lead us to expect ongoing technological advancements that will promote adoption. When it comes to automation, while most manufacturers are
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building these features into more and more of their products, do you believe there is real-world-demand for increased automation, or is it the greater push coming from the producer/developer side? Copeland: Automation has played a crucial role in the asphalt pavement industry for a long time, with applications such as asphalt mix plant controls and automatic grade control systems on pavers. The trend toward automation is poised to evolve further, with asphalt mix producers and contractors eagerly adopting advanced automation technologies. These innovations aim to guarantee the utmost quality in asphalt pavement while enhancing the efficiency of equipment and operators across a company’s projects/operations. While AI has been the tech-topic of the year, arguments surrounding its place and effectiveness in the
www.ForConstructionPros.com/Asphalt
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road building industry have gone back-and-forth. Where do you see its potential place, if any? Copeland: AI has potential in the road-building industry, particularly in areas such as construction planning, predictive maintenance, quality control, and safety enhancement. AI can: • help in optimizing construction schedules and resource allocation, • be used to monitor sensors and review maintenance records to better predict the need for equipment maintenance, • enhance the quality control process when paired with technologies that capture and process images, allowing crews to proactively avoid construction defects, and • be used to monitor construction sites in real time to identify potential safety hazards and alert personnel. AI has the potential to revolutionize the road-building industry by improving efficiency, quality, safety,
and cost-effectiveness. However, the implementation of AI in this industry requires careful planning and consideration to ensure it is used effectively and ethically. What pain-points or technology gaps remain in the industry, from your perspective, that might be primed for the next big advancement? Where in the industry could there be beneficial advances that have yet to recieve much attention. Copeland: Prospects such as robotics, cutting-edge systems for effortless real-time data capture and utilization, and innovative technologies dedicated to increasing mixture performance properties at drastically reduced (or cold) production temperatures are all opportunities in the asphalt pavement industry.
For more information visit https://asph.link/asphalt
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JOBSITE INNOVATIONS
Navigating Used Equipment Purchases: A Closer Look at Hidden Liens While most used equipment purchases go off without issue, there is a circumstance that buyers should be aware of, and that’s whether the used equipment in question has a hidden lien on it.
The market for used equipment is vibrant, and a significant majority of transactions happen without lien-related complications. @Mr Twister adobe.stock.com
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ompanies of all sizes buy used equipment. In the asphalt industry, it can represent a fantastic value, especially for up-and-coming companies, as the larger machines needed for paving jobs can be costly. And while most used equipment purchases go off without issue, there is a circumstance that buyers should be aware of. Here’s an example: You stumble upon a paver offered by another company. After a thorough inspection, you determine it checks all the boxes. The seller has owned it free and clear for a few years, and even has a payoff letter they show you. You buy it. Fast forward six months: The seller’s bank reaches out to you. It appears the seller defaulted on a different loan, and the paver you purchased was part of a blanket lien. The bank is claiming ownership and will move to repossess it. An immediate call to your lawyer confirms the bank is correct – they can legally take it. Even worse, unless the loan-defaulting seller is going to give you a refund, you’ll lose the money you paid. UNCOVERING USED EQUIPMENT LIENS Finding out if there’s a lien on a particular piece of equipment typically
34 ASPHALT CONTRACTOR DECEMBER 2023 ACON1223_34-37_Jobsite_BN gw.indd 34
entails a Uniform Commercial Code (UCC) search – this will generally expose most existing liens. The party responsible for conducting the UCC search varies. Most authorized dealers or resellers will usually perform one when first obtaining the equipment for resale. When financing enters the picture, the lender might conduct a search as well. Alternatively, a conscientious private seller might conduct a search to show a clean title. If none of these avenues have been pursued, it’s prudent for buyers to conduct a UCC search themselves. Nothing can 100% guarantee a clear title. Several factors contribute to this uncertainty. One is the complicated paper trails inherent to used equipment, especially those involving multiple owners. Moreover, the variables of a UCC search can have potential pitfalls, ranging from geographic considerations (locale searched) to clerical errors somewhere along the way. One of the largest complicating factors is the existence of blanket liens. ABOUT BLANKET LIENS A blanket lien covers every asset belonging to a company. It’s also a common clause in business loans from banks. For instance, if a company borrows funds to purchase a new vehicle, the blanket lien from that loan encompasses all company assets, even those long since paid off. Our paver at the beginning of this article falls under that. Unfortunately, the fine print containing that blanket lien clause is easily overlooked, so a seller may believe
a piece of equipment has a clear title because its own loan was paid off. And since the blanket lien only comes into play when there’s a default, it’s easy to see how these can be forgotten. STEPS FOR BUSINESSES TO PROTECT THEMSELVES 1. Buy from an Authorized Dealer: Acquiring equipment from authorized dealers or resellers often minimizes lienrelated issues, and more importantly, they will typically stand behind the equipment being lien-free. 2. If Buying Private, Prioritize UCC Searches: When buying from non-dealer private sellers, making certain a UCC search is conducted is paramount. In addition, buying used equipment from the original owner makes issues easier to uncover. 3. Clear Paper Trails are Optimal: Having a complete paper trail all the way back to the manufacturer helps. This includes bills of sale and payoff letters. Tracing the paper trail back to the original manufacturer or dealer enhances transparency. Relying on reputable sellers, diligent UCC searches, and clean paper trails can mitigate potential lien issues to a great extent. Ultimately, however, the buyer bears the responsibility for any ramifications from potential lien issues. Dan Furman is vice president of strategy at Crest Capital.
For more information visit https://asph.link/orqb8o
www.ForConstructionPros.com/Asphalt
11/19/23 2:24 PM
rs
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11/20/23 2:14 PM
January 30 - February 1, 2024 Henry B. Gonzalez Center | San Antonio, TX
This new, exciting event is designed to enhance your business through a full three-day schedule. Our agenda covers fun and engaging networking opportunities, ample time on the show floor to view new products and equipment and over 60+ hours of educational offerings to learn from industry experts. The PAVE/X difference begins with a robust educational program that is unlike any other learning experience in the market. The educational program will feature five tracks: Paving, Striping, Sweeping, Sealcoating and Business Management. Attendees can choose the sessions that will be most impactful to them and their needs. Following education, contractors will be able to see equipment in action - an incredibly important part in any equipment buying decision. And, PAVE/X is thrilled to bring a fast-paced demonstration showcase for attendees to watch equipment at work and ask questions to help ease the decision-making process. The live equipment showcase experience will be maximized with seating, a beer garden, food trucks and a live recording of the equipment so attendees can get a better look at the machines on a large screen in the demonstration area. The final leg to the PAVE/X experience is creating meaningful connections. Over the three-day event, there will be ample opportunity for next-level networking that will create and strengthen the relationships that are vital to the success of business owners working to grow. “Like everything else we do, our team wouldn’t take on a launch like PAVE/X Pavement Experience unless we could do it better, bigger and bolder than anyone else. We owe you that and we’re looking forward to hitting the pavement with you in 2024,” says Amy Schwandt, Chief Revenue Officer, IronMarkets (previously known as AC Business Media).
We hope you can join us in 2024 for our kick-off show in San Antonio! Brought to You By:
Previously Known as AC Business Media
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11/22/23 7:46 AM
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11/22/23 7:51 AM
PRESERVATION UPDATE
The Value of Planned Maintenance Maximize fleet performance, longevity & reduce downtime. Regular maintenance will save time and money and ensure that your equipment is performing optimally. CASE
I
n the world of construction, where projects are bound by tight deadlines and rigorous demands, there is no time to waste on equipment downtime and unexpected maintenance issues. For operations to run smoothly, proper maintenance must be a top priority, as every minute your machinery is down leads to revenue loss. That’s why shifting gears to a more preventative maintenance approach will help you elevate your operational success. Implementing a proactive strategy has been shown to increase worksite productivity, ensuring that your projects stay on schedule and that your equipment continues to operate at peak efficiency.
WHAT A PLANNED MAINTENANCE PROGRAM HAS IN STORE FOR YOU In terms of benefits, regular maintenance and inspections conducted by experts at recommended intervals can enhance equipment performance and efficiency, reduce overall downtime and operating costs, increase equipment longevity and resale value, and improve safety on the jobsite. Another advantage of a planned maintenance plan is the use of Original Equipment Manufacturer (OEM) parts and fluids specifically designed for your machine’s optimal performance. Moreover, performing routine maintenance tasks, such as changing filters, lubricating parts and adjusting components, is far less expensive than repairing or replacing damaged equipment. This adds up to a higher return on investment and operational cost savings in the long run. Additionally, equipment with a detailed maintenance history can retain a higher resale value as it demonstrates to potential buyers that the
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machine has been properly cared for. For equipment reliability, well-maintained machinery experiences less wear and tear, which extends its lifespan. BUILDING, IMPLEMENTING & TRACKING YOUR MAINTENANCE STRATEGY In order to develop a successful maintenance plan, it is important to communicate with your dealer regarding the specific demands of your equipment, its rate of usage —in a given day, week, month or year— and any other observed issues or relevant concerns that you have about the machine. Fortunately, thanks to advancements in telematics technology, there is much better visibility today regarding how much the equipment is being operated and the level of usage of that equipment. By taking into account the construction application of your equipment and its operating conditions, you can customize a comprehensive maintenance program that is specifically tailored to meet the needs of your machinery. Your maintenance plan will outline the recommended intervals when routine service tasks and inspections will be required within a well-structured maintenance schedule. To stay on top of your equipment maintenance schedule, take advantage of any maintenance tracking systems or software offered by your equipment dealer to monitor service history, track upcoming maintenance tasks or receive timely reminders. MONITORING YOUR PLAN’S EFFECTIVENESS Keeping a comprehensive record of all maintenance tasks performed on your
construction equipment is one way to assess if your maintenance program is delivering the desired outcomes and goals. Accurate record-keeping also aids in identifying areas that need improvement so necessary adjustments can be made to improve your equipment upkeep. Another valuable source of insight into the functionality of your maintenance procedures is the equipment operators themselves, since they interact with the machines on a daily basis. This is a proactive, cost-effective and customizable maintenance solution that offers construction businesses the opportunity to optimize their equipment maintenance and be more efficient on the jobsite. A planned maintenance program is a valuable asset as it maximizes fleet performance and equipment longevity, while also reducing downtime and operation costs. Most importantly, it promotes safety within construction sites and provides peace of mind by guaranteeing that your equipment is properly maintained. By doing regular maintenance and addressing potential issues before they become major, you not only save time and money, but you also improve operational productivity, ensuring that your equipment performs optimally. Talk to your OEM today about the right proactively planned maintenance strategy. Ryan Schubert is the aftermarket services development manager for CASE.
For more information visit https://asph.link/9ywso6
www.ForConstructionPros.com/Asphalt
11/19/23 2:27 PM
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www.ForConstructionPros.com/Asphalt
11/20/23 1:55 PM
By Brandon Noel, Editor
| THE LAST EXIT AdobeStock/GDM
Fed Announces $384 Million Low Carbon Asphalt Investment The GSA announced 150 different construction projects using low embodied carbon.
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ccording to a press release by the U.S. General Services Administration (GSA), a record $2 billion investment set aside by the Inflation Reduction Act (IRA) is now set to be distributed over 150 construction projects nationwide that utilize a special type of “low-embodied carbon” (LEC) construction materials. The funds will go to 39 different states, the District of Columbia, and the Commonwealth of Puerto Rico with the goal of supporting the the American-made market for greener, more sustainable asphalt, concrete, glass, and steel products. Of that investment, $384 million is specifically set aside for asphalt related projects, with more details listed below. The IRA funds are intended to grow the industrial output of domestic manufactured goods and materials now and into the future, while fighting the effects of man-made climate change, while creating good jobs for American workers. This is in parallel with the overall Biden-Harris administration’s Buy Clean Initiative. “Today’s announcement shows how the Biden-Harris Administration is delivering on our commitment to use the federal government’s buying power to strengthen American leadership in clean manufacturing and jobs,” said GSA Administrator Robin Carnahan. “By incorporating clean construction materials in more than 153 projects (82 involving asphalt) across the country, we’re helping create good-paying jobs in the clean manufacturing industries of the future and sending a clear signal that the homegrown market for these sustainable products is here to stay.”
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While the investments aren’t exclusive to the asphalt and road building industry, it is important to note that the federal government recognizes the need for systemic change in maintaining infrastructure in regard to sustainability, while mitigating damage done to the workforce economy. Asphalt is part of the plan for the greener future. The Inflation Reduction Act—the largest climate investment in history— provided $3.375 billion for GSA to invest in federal buildings to help reduce carbon emissions and catalyze innovation, primarily by acquiring and installing LEC materials for construction projects. More on GSA’s LEC projects can be found in this fact sheet [PDF - 976 KB]. GSA has identified over 153 federal government buildings projects that will prioritize the procurement of LEC materials. This includes: • $384 million for asphalt • $767 million for concrete • $464 million for glass • $388 million for steel The projects include repaving, seismic upgrades, structural repairs, facade, and window replacements. It is estimated that the $2 billion investment will reduce approximately 41,000 metric tons of greenhouse gas emissions, and support around 6,000 jobs annually. It also represents another step in the Biden’s administration’s goal towards a net zero emissions building portfolio by 2045, and net zero procurement by 2050 without doing damage to American labor or manufacturing. This is inline with the asphalt industry’s own goals under the National Asphalt Pavement Association’s Road Forward initiative working towards net zero industry emissions by 2050.
“EPA is thrilled to be partnering with GSA and other federal agencies to support construction projects that cut harmful climate pollution,” said EPA Deputy Administrator Janet McCabe. “At EPA, we are also working with the construction materials manufacturing industry and NGOs to help track the climate impacts of their operations.” A selection of asphalt projects identified under GSA’s plan are below: John W. McCormack Parking Garage - Boston $13 million for LEC steel, concrete, and asphalt to repair and replace structural deck, vehicular travel surfaces, and other related foundation and waterproofing items within the belowgrade parking garage. Champlain Land Port of Entry Champlain, N.Y. $11 million for LEC asphalt, concrete, and steel to address deteriorating infrastructure including repairing and replacing aging roads and parking areas. Joseph F. Weis, Jr. Courthouse - Pittsburgh $16 million for LEC asphalt, concrete and steel to complete critical repairs to the building’s crumbling loading dock, including replacing corroded steel members, delaminated and spalled concrete, and damaged asphalt. CMS Headquarters - Woodlawn, Md. $11 million for LEC asphalt to support the replacement of aged parking lots while incorporating environmentally preferable paving features to further enhance sustainability and reduce the burden on the local stormwater system.
For more information visit https://asph.link/7tiuz5
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2023
CONTRACTORS TO WORK FOR IN
CONSTRUCTION
Presenting the 2023 Best Contractors to Work for in Construction ACON1223_41-44_LastExit_BN gw.indd 42
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Solving the Workforce Challenge Starts with Great Employers Recruiting and retaining workers in the construction industry is paramount as the industry grapples with increasing labor shortages. There are many gimmicks, tips and life hacks out there promising to help construction companies attract, hire and keep workers. Successful construction companies know solving the workforce challenge starts with great employers. To recognize those companies, the staff of Equipment Today, Asphalt Contractor, Concrete Contractor, Pavement Maintenance & Reconstruction, and their digital hub ForConstructionPros.com, hosted the inaugural Best Contractors to Work For recognition program, a research-driven analysis that examines a company’s practices, programs and benefits and surveys its employees for their perspective. To be considered, employers needed to register, while employees filled out surveys about what it’s like to work for their boss. Entry forms and surveys were handled by the Best Companies Group, which analyzed the data and provided an actionable insights report that companies can use to improve employee recruitment and retention. Want to be considered for the 2024 Best Contractors to Work For? Please contact Emily Leising at: ELeising@ACBusinessMedia.com To be eligible, construction companies must have 15 full- or part-time employees working in the U.S. The company’s primary business activity must be either general building construction, earthmoving, paving, concrete, or specialty and trades, such as underground, utility, electrical, HVAC, demolition and others.
★ After a few months of tallying and analysis, the results are in. Here are the 2023 Best Contractors to Work For in Construction: Winners include, in alphabetical order (company name, number of employees, headquarters): PBS Contractors, 34, Emerald Construction Co., 27, A&A Paving Contractors, 19, Naples, FL Richmond, VA Roselle, IL ACE Construction Services, 53, Scarborough, ME
Foresight Construction Group, Inc., 42, Gainesville, FL
Redmond, 47, Chicago, IL
AGUA TRUCKS, 27, El Mirage, AZ
Fessler & Bowman, Inc., 971, Charlotte, NC
Stronghold Engineering, Inc., 141, Perris, CA
Alpha Structural, Inc., 134, Sunland, CA
Kent Design Build, 86, Mandeville, LA
The Garrett Companies, 245, Greenwood, IN
C.W. Driver Companies, 327, Pasadena, CA
Landis Construction, 61, Mandeville, LA
The Hayner Hoyt Corporation, 150, Syracuse, NY
Diamond Surface, Inc., 83, Rogers, MN
Loven Contracting, 48, Flagstaff, AZ
The Pavement Group, Inc, 25, Wexford, PA
DP Electric, Inc., 654, Tempe, AZ
Morrey’s Contracting, 39, Detroit, MI
The Surface Masters, Inc., 50, Marietta, GA
Please join us in congratulating these leading employers!
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11/19/23 2:28 PM
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