THE OFFICIAL MAGAZINE OF NATIONAL PAVEMENT EXPO
Is Reselling Sealer a Way to Grow Your Business?
MAINTENANCE & RECONSTRUCTION JANUARY 2019
Taking What the Market Gives You: ROCCIE’S ASPHALT PAVING
How AUTOMATED VEHICLES Will Change Pavement Marking
❄
2019 Top Contractor Survey, Page 12!
FINE-TUNE YOUR MANAGEMENT!
How to Extend SNOW BLADE Life
› › › www.ForConstructionPros.com/Pavement
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✔ How to Address Critical Moments in Growth ✔ How to Thrive in a Price-focused Market ✔ How “Focusing Attention” Yields Results ✔ How to Use Mentoring to Develop Leaders ✔ 7 Steps to a Successful First Day 12/20/18 11:26 AM
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What’s Inside January 2019
PAVEMENT FEATURES 18
From Survival to Success
Roccie’s Asphalt Paving implements new business model so they can “take what the market gives you.”
24 Surviving a Critical
27 How to Thrive in a
Price-focused Market
It’s decision time, and addressing these five areas will launch your company forward.
26 How to Use Your
Way to Grow Your Business?
28 Use Mentorship
Moment in Growth
Make sure your customers are not buying -- and you’re not selling -- a commodity.
40 Is Reselling Sealer a
Contractors often see reselling sealer as a way to increase their margins, but there’s more to sealer distribution than filling tanks.
Programs to Attract Young Construction Talent
44 How Automated
Features of mentorship programs make them unique from internships and apprenticeships.
Attention as a Tool to Drive Better Results
38 Improving Pizza
What you – and your team -- focus on gets done.
Delivery by Improving Roads Domino’s “Paving for Pizza” ad campaign helping to protect your carry-out pizza.
Vehicles Will Change Pavement Marking The needs of cameras and software used to detect pavement markings will drive changes in marking requirements.
46 Contractors’ Choice:
Milling Equipment
What to know before buying a milling machine.
ON THE COVER Performance Paving & Sealing, Phoenix, AZ, used their Carlson CP100 II paver to complete the paving of ISM Raceway’s new pit road ahead
of the NASCAR CAN-AM 500 in November. Performance Paving laid more than 5,000 tons of asphalt over multiple lifts, achieving the rigorous specifications for smoothness, ride quality and density the raceway mandated. Performance also expanded the parking lot outside the track complex, placing more than 11,000 tons of asphalt with a 2017 Carlson CP100. Photo courtesy Carlson Paving Products, Tacoma, WA. Vol. 34, No. 1 January 2019
Published and copyrighted 2019 by AC Business Media Inc. 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.
PAVEMENT
Subscription policy: Individual subscriptions are available without charge in the U.S. only to pavement maintenance contractors, producers and government employees involved in paving or pavement maintenance; dealers, and distributors of pavement maintenance equipment or materials; and others with similar business activities. Complete the subscription form at www. forconstructionpros.com or use your company letterhead giving all the information requested. Publisher reserves the right to reject nonqualified subscribers. One year subscriptions for nonqualified individuals: $35.00 U.S.A., $60.00 Canada and Mexico, and $85.00 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). Pavement Maintenance & Reconstruction (ISSN 1098-5875), is published eight times per year: January, February, March/April, May, June/July, August/ September, October/November, December by AC Business Media Inc., 201 N. Main St., Fort Atkinson, WI 53538. Periodicals postage paid at Fort Atkinson, WI and additional entry offices. POSTMASTER: Please send change of address to Pavement, PO Box 3605, Northbrook, IL 60065-3605. Printed in the USA. Canada Post PM40612608. Return Undeliverable Canadian Addresses to: Pavement Maintenance & Reconstruction, PO Box 25542, London, ON N6C 6B2. PAVEMENT MAINTENANCE & RECONSTRUCTION is proudly supported by these associations:
www.ForConstructionPros.com/Pavement • PAVEMENT • January 2019 3
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What’s Inside January 2019
DEPARTMENTS 6
Editorial
8
Hot Mix
The Other Half of Your Business
The Latest News in the Industry
14 Just In Select New Products and Upgrades 16 NPE Buzz Paving sessions will dominate technical topics at NPE 2019 in Nashville.
30 Pavement
Profit Center
49 Classified
Ads
46
56 On the Job How to Extend Snow Blade Life 58 From the Owner’s Desk Why I’ve Been Attending NPE for a Long, Long Time 59 Your Business Matters Marijuana Use at Work: How to Maintain a Drug-free Workplace. 60 Technology Update 4 Steps to Get Your Construction Team to Buy Into Automation Software
56
62 NAPSA Report #PowerSweepingStrong 62 WSA Update Can You Sweep the “Pavement of Tomorrow”? 63 PCTC Dispatch Effectively Communicating the Value of Sealcoating to Your Customers 64 Contractor Snapshot Infrared-only Start-up Puddles ‘n’ Potholes Proves What’s in a Name Matters 65 Index 66 Tailgate Talk 7 Steps to a Successful First Day
60
64
Get fast, relevant product information in the Buyers Guide at ForConstructionPros.com
4 January 2019 • PAVEMENT • www.ForConstructionPros.com/Pavement
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Editorial
Allan Heydorn, Editor
The Other Half of your Business HAVING THE SKILLS and knowing how to perform quality work is only halfway to a successful and profitable pavement maintenance business. The other half is the business side, which is why each January we devote an entire issue to business management. This year we feature five articles by upcoming National Pavement Expo (NPE) speakers – Roger Bostdorff, Nick Howell, Brad Humphrey, Bill Silverman, Jeff Stokes – who each touch on some aspect of what they'll be discussing at NPE. Stokes tackles those
awkward and troublesome growth stages and how to work through them, Bostdorff discusses overcoming price objections in the sales process, Humphrey offers onboarding steps to help new employees, Silverman discusses the impact of "paying attention," and Howell takes the long view of his NPE attendance. Just a taste of what you can learn at NPE – and information you can use as you plan this winter for the coming season. Then Vinny Engongoro, owner of Roccie's Asphalt Paving (and another NPE
presenter), takes us behind the scenes of the business his father started. His is the story of a small business that changed direction, took off, crashed and was rebuilt through perseverance and a different business model. It's a cautionary tale but it works out just fine. Then we take a look at your employees and examine some issues critical to today's labor market. We discuss mentoring as a leadership tool, how to get you employees to "buy in" to any new technologies you are
implementing, and we even get a legal eagle view of how to handle marijuana in the workplace – now that it's legal in so many places. Accompanying all this business coverage, we include the Top Contractor Survey (page 12) so your company – your business – can qualify for the 2019 Top Contractor lists that are announced in our June/July issue.
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6 January 2019 • PAVEMENT • www.ForConstructionPros.com/Pavement
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Hot Mix
Sweeper Summit Addresses a Changing Industry by Jessica Lombardo
The annual event hosted nearly 200 industry professionals, offering insight into the future. Panelists are, from left, Amy Schwandt, Jim Adair, Chad Bormann, Tim Cook, Tracy Day, Mike Higgins.
Jim Adair with Schwarze Sweepers says optimizing the total cost of operation on the sweeper is where contractors will see real cost benefits. “We’re trying to make buying equipment more about the total cost of operation,” he says. “We want customers to not have to do repairs as often and that helps them to get that longevity out of their investment.” Adair also says that having the right piece of equipment for the job is paramount to lowering total cost of operation. “Don’t bring a heavy mechanical machine to a parking lot sweeping job,” he says. “You’re not going to get the most out of every job if you’re using the wrong machine or the right machine wrong.”
The Sweeper of the Future 1-800-Sweeper has hosted their annual Sweeper Summit since 2011, offering sweeping professionals the opportunity to expand their knowledge in this increasingly challenging business. Hosted in Las Vegas, NV this year, the summit was opened for the first time to non-members of the 1-800-Sweeper network. Just under 200 people gathered for a panel discussion that addressed the concerns sweepers have today and what the industry might be facing down the road.
Rising Equipment Costs The rising costs of equipment is a problem that is not unique to the sweeping industry, but still has been weighing heavily on the minds of business owners. Sweeping manufacturers are working hard to keep costs down and not pass them on to customers, but sometimes increased costs are unavoidable. “Some costs you can’t control,” Mike Higgins with Elgin says. “You’re probably looking at a 2-3% increase in costs per year, barring any new EPA regulations or higher tariffs.” But tariffs are already having an impact on the industry. “Labor issues, steel tariffs - those issues impact us too,” Tracy Day with Nitehawk says. “Steel prices went up 30% this year alone. We try to keep costs down but it’s
unfortunate that we’re going to have to see steady increases. We’re trying to improve efficiencies on the manufacturing side to keep costs down. Maybe that increase will slow down, but that’s hard to say.” However, it’s a hard job working to improve efficiencies and keep costs down while retaining product quality. “Sweeper manufacturers have three options with rising costs, absorb, mitigate or pass it through,” Chad Bormann with Global Environmental Products says. “We are trying to mitigate with cost control without jeopardizing quality.” Bormann says one way to do that is through a proper preventative maintenance program. “With proper preventative maintenance, you can sweep more, you won’t need to replace equipment so often and that provides safety and quality without having to replace parts too early,” he says. Craig Cook with TYMCO adds that improving sweeper fuel efficiency is yet another way to keep costs down, referencing the fact that newer machines can achieve a 5-18% savings in fuel alone. Managing inventory without prolonging delivery and controlling big ticket variables like engines and chassis are other ways to manage rising costs.
Technology today is changing rapidly to help further improve sweeping efficiencies and sweeper manufacturers are going to be using these innovations to help contractors improve their business. “We are looking at ways to do more with less,” Higgins says. “Contractors that excel in areas that are more efficient, have less downtime and repairs, they will stand out as industry leaders. How that looks on a machine, we can’t say, but that’s where we’re headed.” Cook says one way to do that is to design sweeper technology that gives you more insight into how you sweep and finds areas where you can improve. “We trying to make it so you can draw more data from the sweeper so operators can make better decisions on how the equipment is used, how it’s maintained and how your operators are performing,” he says. “We can draw real-time data with telematics to send the information to a computer and it can be tracked at all times. It changes how the manager is going to use that machine and helps them to use it more effectively which can make you more money in the long run.” This also means sweeper safety is improving, “Sweepers of the future will have more advanced driver awareness systems,” Day says. “This will help drivers be safer and
8 January 2019 • PAVEMENT • www.ForConstructionPros.com/Pavement
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Hot Mix
that technology is morning forward rapidly. Systems that help keep your employees safe you’re going to see that sooner rather than later.” And safe operators is the goal, but what happens when operators are removed from the equation down the road? Currently, China is developing a fully autonomous sweeper and another company in California looking in to it.
Geotextile Apparatus Manufacturing Plant Destroyed in California Fire Some products back in production in 3 – 4 weeks By Allan Heydorn The intense forest fire that jumped the Sacramento River near Redding, CA, in November destroyed Iron Mountain Manufacturing, which produces Geotextile Apparatus Co. (GAC) products, according to Mounque Barazone, owner of GAC. Products manufactured by GAC include the multi-patented Grizzly Cub 300T, Grizzly 600T and 600TH Oil Truck fabric installation machines, patent-pending models RP3XL and RP4XL roll pullers, and patent-pending High Melt brush/broom. But Barazone, who developed his first fabric installation machine in 1980 and acquired numerous patents for it through the mid-1980s, said that despite the fire the company was able to produce and ship it's roll pullers within weeks of the fire because parts could be produced and assembled elsewhere. Manufacture of the fabric installation machines will be more problematic because the factory was destroyed and Iron Mountain Manufacturing will not be allowed to rebuild on the same site. He said Iron Mountain was permitted to manufacture at its forested location because it was grandfathered in by a state law. But since the fire destroyed the entire facility the state will not allow them to rebuild to manufacturer there. So Barazone says GAC is researching other locations for manufacturing. Carl and Sue Taylor, owners of the Iron
But Adair says autonomous sweepers are a ways off because even when you make that machine, you’re liable for what happens to it. Still, drastic changes are coming to the industry and contractors need to be ready for it. “We’re going to see greener machines that run on alternative fuels and increase efficiency,” Bormann says. Full electric
sweepers are inevitable and in fact, hybrid equipment already exists. Zero emission, hydrogen fuel cell sweepers exist and are being tested. These are products that are being driven by the customers. They tell us what they need and we design it. Someone just has to be willing to pay for it.”
Mountain Manufacturing, lived on the property and escaped the fire. Barazone, an experienced sailor who was support staff in the America’s Cup, met Carl Taylor, a blacksmith in the mid-1980s when the two were working on their boats in a nearby lake. They struck up friendship that became a business relationship where GAC would invest in Iron Mountain Manufacturing so it could add the necessary equipment and the company would produce product under contract with GAC. “Carl’s disabled and they gave them 30 minutes to evacuate,” Barazone said. “He immediately left his house and went to the facility to collect all his notes he’s made over the years about making the GAC products. I have the drawings but there are things he’s learned over the years and he wanted to make sure he had those for when we start up again.
Barazone said the manufacturing equipment was decades old and used old-school technology and because of that it was virtually uninsurable. “My equipment, all my tooling and fixtures were old and all written off years ago and not insurable. The insurance cost exceeded my inventory cost,” Barazone said. “Insurance companies don’t want to insure equipment like that because it can’t really be replaced. You have to replace it with more modern digital equipment that costs way more than the old equipment.” But he said GAC is getting tremendous support from both Federal Emergency Management Association (FEMA) and the Small Business Administration (SBA) in its effort to get its manufacturing going. He says part of the difficulty GAC will have restarting its manufacturing operation is the machines require many fixtures and tooling. There are over 300 parts with angles, holes and slots and assembly cannot be done with the fixtures and tooling. Barazone said that because Iron Mountain Machinery will need completely new manufacturing to build the fabric installation machines, he will eliminate the Cub 300T The burned-out remains of Iron Mountain and Grizzly 600T and produce and introduce Manufacturing, which manufactured Geotextile Apparatus Co. products just outside of Redding, CA. a new, upgraded installation machine, the Grizzly 900, that takes advantage of new “Every year I use every dime I have to get technologies. Machines take between two the shop going and buy steel and inventory, and four weeks to manufacture dependbrushes and all. It was our busiest time and ing options selected and Barazone says he we were three days away from completing expects the first Grizzly 900 to be shipped a machine and had just built roll pullers to this spring. replace the year’s sales. I had just borrowed Barazone said the fire and manufactur$10,000 to put those in stock and build ing delays will not alter his plans to speak at an extra inventory machine. We had one National Pavement Expo, Feb. 27-March 2 in machine just about ready to ship and orders Nashville, where he will be discussing “Best for three more we were working on – but Practices” for Installing Paving Synthetics.” those will be delayed until we can get the manufacturing up and running."
10 January 2019 • PAVEMENT • www.ForConstructionPros.com/Pavement
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PAVEMENT 2019 Top Contractor Survey WELCOME TO THE Pavement Maintenance & Reconstruction survey of paving & pavement maintenance contractors. Our hope with this survey is to develop verifiable Top Contractor listings in each of five industry segments: Paving, Sealcoating, Striping, Sweeping and Pavement Repair. To do that we need to know: • Gross Sales Volume for your fiscal year 2018 (regardless of the date that fiscal year ended) • A breakdown by percentage of the type of work that generated those 2018 sales
• Third-party verification of that sales total (see additional explanation at the end of the survey) To determine whether a company qualifies for one (or more) of our five lists we will multiply your total 2018 sales dollars by the percentage of work done in each industry segment. For example, if a contractor reports $1 million in 2018 sales and generated 40% of those sales from striping, the number used to determine qualification for the Striping Top Contractor List would be $400,000 ($1 million x 40%).
Name & Title of Person Completing This Form *First _______________________ Last_______________________________
CONTRACTOR
TOP
2019
Top Contractor Survey
2019
TOP
CONTRACTOR
Note: No sales figures will be reported or published; sales figures will be used only internally for determining each list. Also, no contractor will be eligible for the list without third-party verification of your Fiscal Year 2018 Gross Sales Volume. There are 3 ways to complete and submit this form: • Online at https://www. surveymonkey.com/r/ TopContractor2019
• Complete a hard copy and fax (920-542-1133) or mail it to: Pavement Maintenance & Reconstruction, Top Contractor Survey, 201 N. Main Street, Fort Atkinson, WI 53538; Attn. Jessica Lombardo. • Complete a hard copy, scan and e-mail to aheydorn@ ACBusinessMedia.com Thanks very much for your participation. We do appreciate it.
DEADLINE: April 23
5. * What percentage of your fiscal year 2018 Total Gross Sales is generated by working as a subcontractor for other contractors? ___________________
E-mail _______________________ _Phone _____________________________
6. * Do you self-perform more than 50% of your work?
*Company Information Company Name (as you would like it to appear on the magazine) ______________________________________________________________ Street Address _________________________________________________ City State Zip Code _____________________________________________ Phone Number with Area Code ___________________________________ Website _______________________________________________________ Years in Business _______________________________________________
7. What was your overall company-wide profit margin in FY 2018? (Not for publication; results will be presented for the industry as a whole.) ______ Less than 3% ______ 5%-10% ______ More than 15% ______ 3%-5% ______ 10%-15%
Please indicate your number of employees at peak season (If employees fulfill more than one function please include them in the category they perform most often): ______ Management ______ Field Supervisors ______ Laborers ______ Office Staff ______ Sales May we contact Your Company by e-mail? ____Yes
___No
1.* What is your company’s Total Gross Sales for your Fiscal Year 2018?
___________________________________________________________
___Yes
___No
8. How many different customers did you work for in FY 2018? ______ Fewer than 100 ______ 151-200 ______ 301-400 ______ 101-150 ______ 201-300 ______ More than 400 9. How many different jobs did your company complete in FY 2018? ______ Fewer than 100 ______ 151-200 ______ 301-400 ______ 101-150 ______ 201-300 ______ More than 400 10. What is the estimated replacement value of your equipment fleet (including trucks)? ______ Less than $250,000 ______ $1 million - $2 million ______ $250,000 - $500,000 ______ More than $2 million ______ $500,000 - $1 million Signature ______________________________________________________ Title (please print) _______________________________________________
(This figure used internally for listing purposes only; it will not be published.) Please round to whole dollar amounts. (Example: 1,548,222; note: when entering online please omit commas.)
Date: _________________________________________________________
2. * What percentage of your fiscal 2018 Total Gross Sales is represented by each of the following areas (must total 100%):
IMPORTANT! SALES VOLUME VERIFICATION
______ Paving ______ Sealcoating ______ Striping ______ Sweeping ______ Other (explain) ____________________________
______ Pavement Repair ______ Concrete ______ Surface Treatments (Micro, Slurry, Chip, Fog, etc.) ______ Hot mix asphalt plant operation
3. * What percentage of your fiscal 2018 Total Gross Sales is generated from work done on each of the following (must total 100%): ______ Highways ______ Driveways ______ Streets/roads ______ Other (explain) _____________ ______ Parking lots 4. * What percentage of your fiscal 2018 Total Gross Sales is generated from each of the following types of customers (answers must total 100%). ______ Commercial/Industrial ______ Municipal (state/local agency) ______ Multi-family residential (apartments/condos/HOAs) ______ Single-family residential ______ Other (explain)______________________________________
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To qualify to have your Top Contractor application considered, third-party verification of your FY 2018 Total Gross Sales is required from your company’s CPA, an independent CPA or your accounting firm, or a copy of the appropriate page from your tax return. Verification must be on the CPA or accounting firm letterhead (no photocopies) and must include a statement to the effect that “I have reviewed the company’s Top Contractor application, and the FY 2018 gross sales response to question Number 1 is accurate to the best of my knowledge.” The letter must be signed and dated and include the person’s name, title and telephone number. No financial information will be revealed; it will be used only internally to determine qualification for each listing. Send verification to:
aheydorn@ACBusinessMedia.com
or
Pavement Maintenance & Reconstruction 2017 Top Contractor Application 201 N. Main Street, Fort Atkinson, WI 53538 Attn. Jessica Lombardo Questions? Allan Heydorn, Editor; Phone: 708-531-1612; aheydorn@ACBusinessMedia.com
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Just In 1
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Road Dryer The RD-1200XT pavement-drying unit from Road Dryer, LLC, quickly dries asphalt and concrete pavement, allowing crews to pave or apply surface treatments or striping after just one pass. •• The unit, which blows heated air up to 300° F directly downward through multiple nozzles, eliminates the risk of “flying objects,” and allows traffic to flow in nearby lanes — reducing congestion caused by traffic restrictions •• Available as a simple-tooperate trailer- or truckmounted unit, the RD-1200XT can be adjusted for 8-ft to 12-ft drying widths
RoadHog Milling This attachment is suited for milling asphalt prior to overlay, cutting utility trenches and performing in-place recycling of chip and seal as well as stabilization of road base and soil. •• Includes its own hydraulic system and a Caterpillar turbocharged Tier 4 diesel engine in 142-, 225- and 275hp versions •• Cutting widths range from 40 to 96 in. with a cutting depth to 12 in. using replaceable carbide cutting teeth •• Features hydraulic control of tilt (slope) depth and side shift via wireless remote control
Dispensing Technology The EasyRiser Spray Gun Elevator facilitates quick and easy “on the fly” adjustment of line width for line striping equipment. Elevator attaches using quickmount bracket, connection to the onboard or optional 12V battery and installation of the directional rocker switch to the handle bar at the operator position •• Vertical adjustment 0 to 5.9 inches; can be stopped anywhere the operator desires within this range •• Adjust using handlebarmounted toggle switch either up or down as needed to obtain the required line width •• Fits most commercially available line stripers
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14 January 2019 • PAVEMENT • www.ForConstructionPros.com/Pavement
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NPE Buzz
Allan Heydorn, Editor
Paving Sessions Will Dominate Technical Topics at NPE 2019 10 of 14 paving sessions are new or updated AMONG THE 24 technical sessions to be presented at National Pavement Expo 2019, Feb. 27- March 2 in Nashville, will be 14 paving-focused topics – five of which are new to NPE and five of which will take an updated approach or include new video. Among the new paving-focused topics are: “Best Practices” for Installing Paving Synthetics – Mounque “Monk” Barazone, Geotextile Apparatus Co. In the session Barazone, an expert on fabrics, grids, hybrid mats and composites, will detail how each product is meant for a specific application and each requires different installation techniques. “Parking lots, airports, city streets, highways, mountain roads, mobile home parks and even tennis courts all have different installation needs, so he’ll cover how to avoid costly problems and mistakes to “maximize the synthetics long-term benefits.” “Best Practices” of Residential and Commercial Paving – Brian Hall, VT LeeBoy, will explain “effective, efficient and time-tested paving practices” that help contractors sculpt pavement “to meet – in some cases – extreme geometric and grade constraints.” Hall, will cover proper paving practices, safety on the jobsite, practices to increase efficiency, and he’ll introduce innovations “that can impact each and every commercial or residential paving job.” Small Paving Jobs: Tips to Improve Efficiency, Quality – and Profitability – A tag-team session presented by Pavement Magazine Advisory Board members Vinny Engongoro, Roccie’s Asphalt Paving, and Chris Tammany, Petra Paving, this new session is a “how-to” focused on the smaller-scale asphalt paving projects that dominate the market. Engongoro
and Tammany, who specialize in residential jobs, will “work you through a number of small paving jobs starting at excavation and working through grading to completion.” They’ll cover the logistics of planning and scheduling smaller paving projects, take you step by step through jobs, and teach how to handle the most-common challenges facing contractors on small jobs. How Your Paver Operates – and How Its Operations Impact Your Bottom Line – Jim Scherocman, consulting engineer and long-time NPE presenter will help contractors understand that they can improve their paving process and produce a better quality pavement by gaining a better understanding of the most important element in your operation: your asphalt paver. He will cover the paver’s component parts, how they work together to produce a quality mat, and what you need to know to make sure they are functioning optimally. The tractor unit, hopper, hopper wings, flow gates, flow control sensors, and screed unit will be covered. Plus, he’ll offer field-proven tips that will improve the loading and unloading of your haul trucks. Paving Operations: How to “Train the Trainer” – Longtime NPE presenter and noted field consultant John Ball, Top Quality Paving, will teach owners and supervisors how to “train the trainer” so crews can be taught to do a better paving job. In addition to discussing the relationship among the HMA plant, trucking, paving speed, and compaction, Ball will explain what each person on the crew needs to be responsible for and how to train for each position. He’ll also discuss why the trainer needs to teach the crews that can help generate additional unplanned profit on almost every job.
WSA Members get 3 Free Sessions at NPE World Sweeping Association (WSA) members can attend three 90-minute sessions for free as part of the WSA membership. Those sessions are: Preparing for and Executing a Successful M&A Transaction, presented by Mark Herbick, Pursant Inc., who will make clear that contractors can’t wait until “the last minute” if they hope to maximize their chances of success when exiting their business. He’ll answer questions such as, What do you need to do to increase your business’ value over the long term? What can you do to increase value over the short term? What are common deal terms, structures, processes, timelines and other key metrics? Mentorship Excellence: The Key to Personal and Industry Leadership. Gary Rabine, Rabine Paving, is a proponent of the mentoring process and he’ll discuss how it works and how it can instill leadership characteristics and develop leaders – in place of or in addition to a formal education -- and how to establish a mentoring program within your company. You Want Change? Here’s How to Make Changes Stick! Bill Silverman, Springboard Business Coaching, will offer tips and insights to help you make lasting, positive changes in your business by learning how to spot the barriers and resistance points that derail most change efforts, by providing “best practices” that will accelerate change and make your business improvement efforts stick. For details and complete descriptions visit www.nationalpavementexpo.com.
Asphalt Institute at NPE 2019 Among the updated paving sessions are three Asphalt Institute-sponsored sessions presented by Wayne Jones, Asphalt
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The 2019 National Pavement Expo, Feb. 27-March 2 in Nashville, TN, will feature 14 paving-focused seminars among its 54 conference sessions. All major paver manufacturers exhibited at the 2018 National Pavement Expo in Cleveland (above).
Institute senior regional engineer. Materials Selection: Matching the Right Materials to the Right Project – In this 90-minute session, Jones answers a broad variety of material-related questions so contractors such as, Can I pave a residential driveway with a DOT mix? How can I avoid customers holding up payment because the mat “looks too coarse”? His insights will provide the knowledge of asphalt materials and mix designs to help contractors make projects easier to pave, look better, sell faster, and be more profitable. Jones was the lead author on both the Asphalt Institute’s MS-16 Manual: Asphalt in Pavement Maintenance and Preservation, and the MS-22 Manual: Quality Asphalt Construction. Introduction to Thickness Design and Pavement Distresses – In this session, which is also 90 minutes, Jones will cover the basics of pavement design and failure. He will introduce free web-based thickness design tools that allow contractors to design a pavement specifically for each customer. Jones will also discuss “the distresses that attack asphalt pavements causing them to fail” so that contractors “can make the best-possible repair decisions for your clients.” Suggestions on how to improve project quality and attract repeat customers without adding additional cost will be included. Understanding Pavement Evaluation, Preservation and Repair Options – In this 3-hour workshop, Jones’ goal is to help contractors “do a better job for your clients by making sure your pavement repairs treat the cause of the problem and not the symptom.” He’ll cover the distresses and cure options for all types of pavement defects – plus he’ll help contractor understand “how the pavement surface can give you insights into what’s going on beneath the pavement.” Once he’s covered pavement evaluation he’ll outline “best practices” for repairing an asphalt pavement and provide specific tips on how to “up-sell” your operations to solve longterm problems for your customers.
NAPSA Members Get 3 Free Sessions at NPE Members of the North American Power Sweeping Association (NAPSA) will be able to attend three 90-minute sessions as part of their NAPSA membership. Those sessions are: • Hiring Process Strategies to Improve Results & Manage Risk, presented by Kathy Cole, DK Cole Co., a construction-hiring specialist, who will present processes and strategies to improve your hiring process and mitigate risk, including how the speed of your process impacts your results, how to prevent bad hires and potential legal problems, and how to increase your candidate pool. • 4 Ways to Grow Your Business: Take Your Pick! Presented by Dave Sulkin, American Asphalt Company, this session will examine the four ways (maintain the business you have, sell more work to current clients, sell new services to current clients, or develop new business) and help identify which approach (or combination of approaches) is best for your business. • Why You Should Be a “Systems-Driven” Company – and How to Make it Happen will be presented by Mike Rorie, Go iPave, who will outline the five major advantages systemsdriven companies enjoy over their competitors, and the steps you can take to implement repeatable, scalable systems at your pavement maintenance company. For details and complete descriptions visit www.nationalpavementexpo.com.
Attendees at each of the Asphalt Institute sessions will receive certificates granting 3.0 Professional Development Hours (PDHs).
More Updated Paving Sessions Diagram It! How to Pave a Parking Lot & a Cul-de-Sac from Start to Finish – Ball, who has presented this session for several years, will update the parking lot diagram to help show contractors the step-by-step process how each job should be done. Supported by his “patented” onthe-job videos, Ball will work through how to determine the amount of mix for each job, how to determine haul truck size and delivery schedule, how to “line-out” the start of the work and plan the paving, how to achieve the required slope and density, and team member responsibilities. Solving the Paving Puzzle: Video Solutions Show How a Job Fits Together – Ball says “all phases of paving are ‘most important’ and he’ll cover each one to prove his point. Ball, who spends more than 30 weeks a year on the road shooting video on paving jobsites to help contractors improve their paving operation will put that video to heavy use creating a “case study” for this special paving session. Ball will “take apart” an entire paving job, then put it back together via video to show not only all the elements of a successful paving job but how those elements come together. Two other paving sessions, both by Scherocman, will be presented at NPE.
Effective Compaction of Hot Mix Asphalt – “Compaction is the single most important factor in the ultimate performance of a hot mix asphalt pavement,” and Scherocman will help paving crews understand the basic elements of compaction and the use of various types of rollers, including static steel wheel, pneumatic tire and vibratory steel wheel rollers. Use of different rollers and rolling patterns for different paving situations will be emphasized. Identifying, Preventing and Solving Mat Problems – In this session Scherocman will help paving contractors identify potential problems in the asphalt mat so they can provide a better end product for their customers. He’ll start by explaining how to differentiate among four primary problem areas: the properties of the mix itself (checking, shoving, rutting, moisture content, bleeding); site-related conditions (milling, minimum layer thickness, tack coat application, soft subgrade); equipment-related problems (screed settings, surface shadows, streaks); and long-term durability issues (raveling, sliding, fatigue cracking, delamination, drainage structures). Then he’ll explain steps contractors can take to prevent these problems from happening (and correct them when they do occur). For complete details on these and all 54 NPE 2019 conference sessions visit www. nationalpavementexpo.com.
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Allan Heydorn, Editor
From Survival to
Success
Roccie’s Asphalt Paving implements new business model so they can “take what the market gives you” A STUBBORN REFUSAL to fold, an understanding of the industry, a belief that Roccie’s Asphalt Paving is more than just a company, and a willingness to redesign a business model to fit a new economic reality has enabled owner Vinny Engongoro to revitalize and grow his Stamford, CT, business. Like many contractors, Roccie’s survived the recession of the early 1990s and the longer-lasting recession that started in 2009. Roccie’s also survived the incredibly bad timing of an expansion acquisition that almost capsized the company. “But I never turned my back on the
commitment to the business because to me it’s more than just a place to go to work,” Engongoro says. “Number one, it’s my father’s legacy. Number two, it did a pretty good job of supporting my family over the years. And number three, it supported about a dozen other families. “I’m just not that person that I could turn my back on the business or people that trusted me. The situation was kind of “it is what it is” and you deal with it. But I realized sometimes you have to adapt to what the market gives you and what it allows you to take, and that’s what we’ve done.”
A Focus on Residential Work Started in 1956 as a landscaping and outdoor masonry business by his father, Rocco, the company did very little paving until the mid-1960s. “Just after the war my father started
Roccie’s Asphalt Paving now employs 16 full time people, including 13 people in the field (an eight-person prep and pave crew, a two-person excavation crew and three truck drivers). Two people handle sales, an office manager holds down the fort, and they have a part-time in-house marketing person.
working for a landscaping company and the owner would hand some jobs over to him that the owner didn’t think fit what the company wanted to do. He gave my father customers that didn’t fit his business,” Engongoro says. Eventually that side work became fulltime work and Rocco Engongoro started his own landscaping company. “He didn’t want people calling him ‘Rocky’ and spelling the company ‘Rocky’s’ so he added the ‘i-e’ and that’s how the company got its name, Roccie’s.” Occasionally Rocco was asked to pave
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Left: Once Roccie’s remodeled to fit the new economy – and emphasized pavement maintenance – they reached break-even in 2012 showed a profit in 2013. Middle: Roccie's Asphalt Paving cut back on excavation, now focusing primarily on excavation work that relates to its asphalt paving work. Right: Responsiveness is essential in residential work, so Roccie’s added office staff. “When a phone call comes in that call gets answered by a person and an appointment gets scheduled before they get off the phone,” Vinny Engongoro says.”Then within a day or two the salesperson calls on that customer, and a day after that they have a bid in their hands.”
in both landscaping and paving, Roccie’s took on the extra volume of paving work and got out of the landscaping business. At that point the company was made up of Vinny, his father and five field workers. “We didn’t have an office manager and we didn’t have a sales person. When you’re that size everyone sort of does everything,” he says.
“Driving to Higher Revenues”
a driveway. With bills to pay and a family to raise the answer was always “yes.” Rocco got some help from a paver friend to show him how it’s done, and by the early 1980s Rocco was doing landscaping, outdoor masonry (field stone walls and flagstone patios) and paving. Vinny joined his father in 1985 after his stint in the U.S. Army as a paratrooper. By 1987 the company’s primary business was paving residential driveways. “Our first really large growth spurt was in the mid-80s,” Engongoro says. “There was a huge boom, not only in real estate but in general. Young new families in affluent neighborhoods didn’t want their father’s old-style gravel driveway. They wanted blacktop so their kids can roller blade and play hockey or basketball. So it was somewhat of a market force that brought us in that direction.” He says that rather than trying to grow
“Then the stock market crashed and by 1989 the recession started to take root. Most of our days in 1990-1991 we were doing only a small patch and a couple of small sealcoating jobs. Business was very soft. Luckily we didn’t have any real debt and we had no non-production employees, so taking those small jobs sustained us through that period.” Then from 1992 through 2007 Roccie’s experienced “a big run-up in the business.” “Other than 2002, which was flat, we had no real retreat during those years,” Engongoro says. “We grew intentionally as much as we could. We were driving ourselves to higher revenues and we wanted to grow our business, but there’s only so much any one segment of the market can support. “Over the years we acquired the right equipment, the right people, and the expertise so we decided to pursue different kinds of work within the paving arena and we started to take on some commercial work and even some select municipal projects, though the overall
majority of our work was residential.” In 1988 Roccie’s Asphalt Paving’s seven employees generated less than $1 million in work. By 2007 they’d grown to $3 million in sales with 12 people in the field plus a sales person and an office manager. “We hired the office person the same time we hired the estimator because we were looking at more work,” Engongoro says. “Sales is a numbers game and the more work you look at the more you’re going to get, so there was more paperwork, more customer contacts, and more phone calls and we needed an
Roccie’s Road to Revival • Commitment. “When you make a commitment you have to stick with the commitment. If you hop into something you hop into it with both feet.” • Listen to others. “I think I did not understand how bad the economy was going to be. People warned me and I didn’t heed that warning. I should have listened to people who knew better than me about that.” • Carry no debt... or as little debt as possible • Stay on top of receivables • Commit to pay your bills • Have a cash reserve • Maintain good relationships with vendors and banks • Have a person answer the phone • Adapt to what the market gives you and what it allows you to take
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Following the recent acquisition of a small paving company, Roccie's offers additional paving-related services and generated revenue of more than $4 million in 2018.
office person to handle all that and keep track of it all.” Then came 2008 and the Great Recession.
“Everything is Going to Change” “I clearly remember when the poop hit the fan,” Engongoro says. “I was doing a highend residential job in Greenwich, Connecticut when the landscape architect I was working for came over and asked me if I’d heard what happened to the stock market. His exact words to me were ‘Everything is going to change.’ And while I didn’t believe him at that moment, he was right.” Engongoro says he thought the 2008 recession was going to be like the recession of 1990-1991. “It was tough but we got through that, and I thought this was going to be like that. That we were going to have a bad year or two but we’d tough it out,” he says. But it was far worse. Not only was the recession deeper and longer, but at the same time the recession began, Engongoro was in the midst of negotiations to buy a large parcel of land and an excavating/site-work business that was on the land. “If there ever was a more perfect storm of what could happen, I can’t imagine it,” he says. “In 2007 we had a banner year and as it ended, I wanted to do a couple of things in the business. I was very much in love with myself is how I like to put it now. I felt like we couldn’t do anything wrong.” So when an opportunity came along to buy a piece of property from an excavating company Roccie’s had been
paving for, Engongoro pursued the deal. He already owned two pieces of property and the opportunity with the excavating company started as a land deal. “But then I realized we couldn’t make it work as a land-only deal so I asked him what he was going to do with his excavating business. And so it became a land and excavating business deal.” As the financial crisis grew, an outright purchase became impossible and Roccie’s ended up leasing the land and owning the excavation business – equipment, employees and all. “I wasn’t concerned because I felt that the economic problem was not going to be that bad,” he says. “Plus I’d already gone so far down the road to make the purchase that I felt I couldn’t just turn my back on it. “Unfortunately the economy declined and our market declined. So here we had taken on more debt and increased our payroll to add excavating to our business, and the work just wasn’t there. And the paving work dried up too.”
Time to Make Tough Decisions He says that he struggled for a good 18 months during 2008-2010 to try to make everything work – but he could no longer ignore the reality. At its peak in 2007 Roccie’s did $3 million in revenue. It had $400,000 in capital reserves, zero dollars borrowed on their lines of credit, little-tono receivables outstanding, no other debt, and owned two investment properties. By 2010 that situation had changed dramatically. Roccie’s had burned through all its capital reserves, had maxed out two lines of credit, and had sold one of the investment properties. Essentially a $1.2 million dollar shift in wealth. “If we hadn’t done so well from the mid-90s through 2007 we couldn’t have gotten through that bad period because we wouldn’t have had the monetary fortitude to get through it,” Engongoro says. However, difficult decisions could not be put off any longer. Selling off idle equipment and letting some people go was obvious and inevitable. “Mentally and
Why to Pursue the Residential Market “Our market is not like most other markets in the country,” says Vinny Engongoro. “While there’s a fair amount of commercial property in areas we serve, they are typically smaller properties and privately held and privately managed. There’s not a lot of large properties and not a lot of big box stores. He says most contractors in his market serve commercial customers and do some residential work or they focus on commercial and municipal customers. “A few competitors try to be all things to all people and do work for all three – commercial, municipal and residential.” “But we focus on our market segment – residential. These other companies put residential work on the back burner because the jobs are smaller. If they have a $100,000 commercial job that they can do, that $10,000 residential job is going to get back-burnered. And you can understand why they might do that, but the fact is we don’t do that. “I think everybody likes to say we serve our clients better, but we can say we service our residential clients better because that is our focus,” Engongoro says.
After implementing its new approach to business, Roccie’s Asphalt Paving broke even in 2012, showed a slight profit in 2013, and has been more profitable each year since. Today 80% of sales are from residential work and 20% are from commercial jobs.
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spiritually it took me a long time to make that decision but I had to stop the bleeding,” he says. “One thing I learned is that good people land on their feet very quickly and these people all landed on their feet. “I didn’t have the cash flow and I didn’t have work, so I couldn’t pay my bills,” he says. So he sat down with the creditors, vendors and his bank. “I just told them the situation. I told them they’re not getting paid now but that they will get paid. It might be three months, it might be six months, it might be more, but I assured them that I would pay them.” He says the creditors, of course, were in the same situation. “Those companies have employees, too, and they have families that rely on them. Talking with them helped.” He and his suppliers came to an agreement where they would still sell him what he needed for cash – an agreement that enabled him to continue working.
Roccie’s to Offer Insights at NPE Vinny Engongoro, Roccie’s Asphalt Paving, will present a joint session with Chris Tammany, Petra Paving, titled Small Paving Jobs: Tips to Improve Efficiency, Quality – and Profitability at the 2019 National Pavement Expo, Feb. 27- March 2 in Nashville. The two members of Pavement’s Advisory Board will focus on smaller jobs “from repairs to driveways to small strip malls” that require special planning and construction expertise to be successful and profitable. Engongoro and Tammany will work through a number of small paving jobs starting at excavation and working through grading to completion. They’ll cover the logistics of how to plan and schedule smaller paving projects, outline the steps to take to see a small job through to quality completion, and discuss the most-common challenges facing contractors on small jobs – and how to handle them. For details and a complete session description visit www. nationalpavementexpo.com
Roccie's Asphalt Paving's new business model reemphasizes its commitment to the residential market as well as to pavement maintenance work.
“Another important lesson I learned was the relationships I fostered over the years with my bank and my creditors was very strong – strong enough to where when I told them they would get paid they believed me and they helped me out immensely,” he says. And after one year he’d paid everyone in full.
A Business Model for the New Economy “Things never went back to the way it was. The pricing structure of 2007 never came back,” Engongoro says. “The pricing structure has not kept pace with the cost structure of the market including the cost of insurance, dumping, labor, and asphalt. As an example: in 2007 we were getting $3.20 per square foot to remove and repave a typical 3,500-square-foot driveway. Asphalt was $40 per ton. Dump fees to get rid of ripped out blacktop were practically non-existent. And base material was $5 per ton. “Today asphalt is about $90 a ton, dump fees are up to $400 per load, and base material is $10 per ton. But the pricing has stayed stagnant if not lower than 10 years ago due to increased competition. If the pricing structure and margins were where they should be, we would be in the $4-$5 million area for our sales.” To accommodate the new reality of fewer jobs and smaller margins, Engongoro created a new business model that calls for Roccie’s to continue to focus on the residential market, which other pavers often neglect. They would avoid the municipal market that was overly competitive, bid select commercial work, put increased emphasis on pavement maintenance (the work that had helped carry them through two recessions), they would reduce their house site work excavating efforts because margins were miniscule, and re-focus that division on paving-related projects requiring
substantial site work and drainage. “Mentally I couldn’t completely raise the white flag on excavation,” he says. “So we kept a couple of good-paying home builder accounts and decided we were going to focus on excavation work with greater relation to our main core of work, asphalt paving.” And the strategy worked: Roccie’s Asphalt Paving broke even in 2012, showed a slight profit in 2013, and has been more profitable each year since. And the strategy worked: Roccie’s Asphalt Paving broke even in 2012, showed a slight profit in 2013, and has been more profitable each year since. Today Roccie’s generates $3 million in annual sales – 80% from residential work and 20% from commercial jobs. The paving business at $2.3 million is slightly smaller than it had been, and the excavation business at $700,000 is much smaller. “You trim the fat and do what you have to do to get what the market will yield you,” Engongoro says. “In a continuing commitment to the business and the residential market, we recently acquired another small paving business that had market share connected to our major areas and a similar focus on residential paving,” he says. “The addition of the new market share has helped increase revenues for Roccie’s and help expand our territory as well as provide a continuation of another wellknown brand in our area.” The combined organizations will offer additional services such as chip seal. Together, both companies had more than $4 million in revenues for 2018 with a greater market share of paving and pavement maintenance. “Buying another paving business was scary after what I had been through. But my military years helped teach me a few life lessons,” Engongoro says. “Mistakes are painful. But you can’t just crawl into a hole and curl up in a ball. You have to bury your dead, learn from your mistakes, put more thought into major decisions, and keep moving forward.”
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Management Jeff Stokes
Surviving a Critical Moment in Growth It’s decision time, and addressing these five areas will launch your company forward JASON HAS WORKED for 12 years growing his pavement maintenance business. He has put the time in “grinding it out” and now the business appears successful and healthy, at least from the outside. There are plenty of positive things happening. He had good crews in place for paving, sealing and concrete work. The overall quality was good. The company has three good sales people who in turn had several good customers that provided repeat business. In the office, he had a bookkeeper and a few office staff that kept the books balanced and the business moving. On a personal perspective, Jason’s life balance is certainly better than the early years. While he is still required to work in the business, he can get away for vacation in the winter and make it to his kids’ school and sports events often. Behind the scenes however, there were storms brewing that have him worried and puzzled. As he reviews financials, margins are eroding a bit and he isn’t sure if it is on the estimating or the operating side or both. When he attempts to dig in to the problem, his staff can’t get him the right data he needs to analyze properly. Sales are basically flat, and the sales team seems content. Jason is getting more and more calls from previous customers who indicate they were happier with the level of service that Jason once provided them. Leads are coming in and the sales people are busy doing estimates, but win rates are falling slightly from year to year. Most frustrating to Jason is the fact all kinds of details are dropping through the cracks. He also finds himself having constant conversations with employees who seem to find all the problems, but rarely have solutions. So, what is really going on in Jason’s business? Why is this moment so critical for Jason and owners like him? The short answer is this: Jason has grown his business from start-up to
Stokes on Sales at NPE 2019 In addition to four 90-minute sessions at the upcoming National Pavement Expo, Feb. 27-March 2 in Nashville, Jeff Stokes, Next Level Contractor System, will present a 3-hour workshop with Brian Hess, Top Contractor School, taking an in-depth look at how contractors can improve their sales operation. The workshop, Sales Success through Organizational Support and Improved Personnel Sales Skills, will provide a “unique look at the sales effort” and will discuss: • The importance of a company commitment to organizational support • How to instill that commitment and structure within your company • Processes and systems needed to support today’s sales efforts • The value of a sales leader who inspires and motivates the sales team to drive sales results • How to develop that sales leader within your own organization • How to analyze and improve your company’s sales processes and support systems Stokes and Hess will also discuss ongoing training and development of sales personnel to improve and fine-tune their personal skill set. Stokes will also participate in four additional management related sessions: • How to Lead and Retain Your Millennial Workers, with Matt Slawson, Next Level Contractor System • How to Make Your Online Presence Your Top Sales Person, with Brandon Stanton, 405 Media Group • How to Build Maximum Value in Your Business for Eventual Transition, with Tim Bateman, Next Level Contractor System • Developing and Managing a Marketing Plan for Your Pavement Maintenance Company, with Stanton For details including dates, times and complete descriptions visit www. nationalpavementexpo.com.
existence to the success stage. In the success stage, while the business is making a profit, owners have several options. They can attempt to operate the business as is, exit the business through a sale or transition, or re-invest and move the organization to the growth stage. Let’s weigh Jason’s options in more detail. Keeping the business “as is” is difficult long term for several reasons, not the least of which is Jason will have to continue working in the business and losing the freedom he always dreamed of. Jason could potentially sell the business. The issue of selling is based on the size of Jason’s business; the sale price may not be sufficient to sustain his lifestyle based on his young age of 38. The third option
is moving to the growth mode. In reality, the growth stage is likely the right choice for Jason given his age, desire to have more freedom and increase profits. However, navigating the growth stage is very difficult for many owners. While every company is certainly different, there are a few common areas that must be addressed for a company to move into and succeed in the growth stage. Let’s review the top five areas and analyze them in light of Jason’s predicament. 1. Systems and Processes. As you grow, you find that the simple systems and processes stop working. You need better data on production, job cost, sales, and customers that you can glean intelligence from. You also need clear processes
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that are documented for others to follow. This means developing standard operating procedures (SOPs) and flowcharts for every key process in the company. 2. Cash. Growth requires cash and lots of it. As sales increase, your line of credit will need to increase. You must re-think strategies around purchasing of equipment and debt in general. New banking relationships requiring timely reports will be required. A renewed focus on key performance indicators will be necessary at the owner and manager level. 3. Personnel. In the growth stage, you need more professional managers. This means that some of your people that brought you to the success stage will not have the skills to perform in the growth stage. Growth requires a new organizational structure with personnel that have the competencies and experience to accomplish what is needed. 4. Delegation. Growth requires
delegation to the new professional managers that you put in place. Delegation requires clear roles, responsibilities and performance management discussions – things that often were undefined in the previous business stages. More challenging is when the owner doesn’t want to give up authority and decision making. 5. Planning. Growth only occurs when planning and execution go hand in hand. In smaller companies, owners typically made all the decisions and often personally executed them. In the growth stage, owners and managers have to clearly outline the direction for the company and then develop detailed strategic and operational plans to accomplish that move. So Jason is right. He has reached a critical moment. His organization is successful but with the current symptoms he is seeing and experiencing, his company has plateaued. He has a decision to make: Should he attempt to keep his business as
it is? Sell? Or reinvest for growth? For Jason to reach the growth stage, he must address the five areas discussed above and successfully navigate through them. It won’t be easy as it requires new skills and decisions which are risky and have layers of complexity. However, the rewards are great. If successful, Jason will achieve new levels of profit, freedom and ultimately value for the company -- the very reasons he started the firm and why he wanted to become his own boss to start with.
Jeff Stokes is CEO of Next Level Contractors LLC based in Lawrence, KS. Through a customized road map, they guide owners to reach the next level in their contracting business. Jeff and the NLC team can be reached at info@nextlevelcontractors.com or at www. nextlevelcontractor.com
Pavement Marking Equipment
THERMO
TH8000 Hog Technologies manufactures a variety of paint marking equipment including the revolutionary Thermo Hog as well as the Paint Hog. The Thermo Hog can melt thermoplastic at 8,000 lbs. per hour per color. The Hog Melter system uses heated oil to evenly melt the thermoplastic, allowing for shorter start-up times than our competitors! The Paint Hog is our most customizable truck as it is available in both atomized air and airless formats. You can customize the size of your paint and bead tanks, the brand of your guns, type of chassis, as well as your safety packages to accommodate the needs of your company!
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ForConstructionPros.com/10075186
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Culture
Bill Silverman
How to Use Your Attention As a Tool to Drive Better Results What you – and your team – focus on gets done HAVE YOU EVER heard the saying “What gets measured, gets done?” How about “Inspect what you expect”or even “What you focus on grows”? What these sayings have in common is the idea that whatever you consistently focus your attention on will tend to improve. Whether you want to improve sales, profit, customer satisfaction or some other aspect of your business, the more you focus everyone’s attention on an area needing improvement, the more improvement you will see. There’s employee research starting in the 1920s and continuing to today that backs this idea up. It makes sense. If your goal is to increase net profit by 5% but you never measure your net profit, you don’t examine why your net profit is lower than you want, and you never talk with your team about your net profit, your net profit won’t improve much -- if at all. On the other hand, if you measure your profit, focus on it regularly with your team and continually look for and implement ways to improve, you will make improvements in a big way. Focusing everyone’s attention on driving the results that are important to your business is a simple idea, but I don’t see it executed very well. There are just too many competing priorities and distractions. And the result of not focusing everyone’s attention on what matters to your business is subpar performance. Here are three ways to focus attention to get better business results: 1. Focus on a short list of priorities. If you have too many priorities, then you really have no priorities. You’ll spread your energy, time and efforts too thin, and your employees will be confused and
lose focus. So, keep everyone focused on a short list of priority goals that you want to accomplish this year. 2. Measure and discuss results frequently. To get great results, you must measure and track progress toward your goals and share your results with your team regularly. Consider having a monthly allemployee meeting to discuss results and weekly one-on-one meetings with management team members to review last week’s results and this week’s goals and to resolve any challenges that might keep your managers from meeting their goals for the week. These weekly meetings enable you to systematically spread your attention around, keep managers focused and accountable, and help you identify problems and make adjustments to keep things moving in the right direction. Sales managers and production managers also should have regular weekly or brief daily meetings to focus on the results you're trying to achieve. Here are five questions some of my clients’ production managers have adopted to keep crew leaders focused: • What were your man hours yesterday compared to your goal? • What did you accomplish yesterday? • What is your goal for today? • What obstacles do you anticipate? • How can you overcome the obstacles? Similar questions could be developed for a sales manager. The key is that asking the same questions daily keeps everyone focused and thinking about how to drive better results. 3. Reward and celebrate successes. Rewards and recognition are key tools to keep everyone’s attention focused on what matters. Audit your compensation, rewards, recognition, incentives and performance reviews to ensure that all incentives align with your goals. You’ll be surprised how many aren’t!
Silverman on Saturday at NPE 2019 At National Pavement Expo Bill Silverman, Springboard Business Coaching, will present back-to-back sessions Saturday, March 2. “How to Build Your Management Team and Get More from Your Managers” kicks off the morning by explaining that a contractor’s success “depends on building a team of trusted managers you can rely on to run parts of your business for you,” then offers insights on how to add the right management team members. He follows that session with “You Want Change? Here’s How to Make Changes Stick!” which is designed to help contractors implement what they learned at NPE. He will discuss why most change efforts fail, how to spot and deal with the barriers to change, and will provide “a framework for guiding effective, long-lasting change based on how change really happens.” NPE will be held Feb. 27-March 2 in Nashville. For complete session descriptions and to register visit www. nationalpavementexpo.com.
Pay attention to this idea! There’s huge power in focusing everyone’s attention on driving the results that are important to your business. So, take an hour and focus your attention on implementing the ideas that I've laid out here. It will help you and your team produce better business results and simplify your life in the process! Bill Silverman, president of SpringBoard Business Coaching and author of The 5 Critical Success Factors for Running a Great 7-Figure Contracting Business. Reach him at bill@ springboardbizcoaching.com.
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Roger Bostdorff
Sales
How to Thrive in a Price-focused Market Make sure your customers are not buying – and you’re not selling – a commodity ONE CHALLENGE FOR many paving and pavement maintenance contractors is protecting their margins. Evidently, a very high percentage of the transactions in the paving industry end up being decided on price – and only price. Is this true for your company? Assuming you are also encountering this same challenge, please read on. Let’s first look at this from the buyer’s perspective. Please mentally select a product that you or your wife purchases for your home. Do you have that in mind? Since I cannot seek your input while I write this please allow me the liberty to select a couple of examples. Let us select groceries or gasoline. If you have a Walmart near you, my bet is that you have on occasion purchased at least one of these from Walmart. However, if the product or service being purchased is viewed as a commodity, then price is going to be the primary driver of your decision. What is a commodity? A commodity is a class of goods or services for which there is demand, but which is supplied without qualitative differentiation across a market. A box of Cheerios is pretty much the same whether you buy it at Kroger, Walmart or Target. By the way, that may not be the case relative to their service. Therefore, if you are selling a commodity, the best way to make money is to be the low-cost provider. Let me emphasize that I said “cost” not necessarily “price.” Walmart has succeeded in their market over time by driving their costs down by leveraging their size, their suppliers and their distribution channel. However, unless your company is the size of Walmart and has the lowest costs, then competing on price is a losing proposition. So what do you do? How do you compete? You either have to cut your margins so
low that you only can make it with a very high volume – like Walmart does – or you need to change the game. People buy by comparing the products and services associated with the product. If the only differentiator of a product or service is price, you can only compete on price. As I have pointed out earlier, the only winner here is the one with the lowest cost structure. Therefore, what needs to be done is to quantify other key differentiators of your offering than price. I have facilitated with many customers their SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis. When we discuss their strengths, many times I hear things like customer service, quality, and responsiveness. These are all excellent qualities of a company’s product or service. However, can you envision your competitors suggesting that they provide bad customer service, poor quality and lack of responsiveness as compared to your company? Of course not. The question is, how do you differentiate? What are your competitive advantages? How do you substantiate your claims? The ground rules for outlining these differentiators, as I call them, or your competitive advantages as defined by J. Smith in her book Creating Competitive Advantage are as follows: 1. They need to be objective not subjective 2. They need to be quantifiable, not arbitrary. “We have great customer service; 95% of our business comes from referrals.” 3. They need to different – not already claimed – by the competition 4. They need to be not a cliché. Don’t tell me you exceed customer expectations. How do you know what these expectations are? How is your business? Are margins down? Do you have some new wrinkles in your sales message that are different from last year? If you do things the same way going forward you will probably get the same or similar results. Is that what you are looking for in 2019?
If the Problem is Price… What is Your Solution? Roger Bostdorff, B2B Sales Boost, will expand on how you can help buyers make decisions on something other than price in “If the Problem is Price...What is Your Solution?” a 90-minute session Saturday, March 2 at National Pavement Expo, Feb. 27-March 2 in Nashville. He’ll answer questions such as: • What do you do when it appears that almost every sales opportunity comes down to price? • Is this the new ‘Way of the World’ or is there something you can do to minimize price-based buying decisions? • How do you handle it when your market puts you in a price-focused position? In what NPE terms “an executive conference” Bostdorff will discuss what buyers are really focusing on when they seem to be buying on price and how to position your company to minimize the times price is the deciding factor in any buying decision. For complete details and to register visit www.nationalpavementexpo.com.
Or, are you and your team able to enunciate your differentiators/competitive advantages? Seems to me that no matter what industry you are in unless you run the Walmart of that industry, you might want to invest some time in first identifying your competitive advantages and then figuring out a way to communicate them to your current customers as well as your prospective customers. The other alternative, assuming you have plenty of margin left, is to continue to give it away! Roger Bostdorff is president of B2B Sales Boost (www.b2bsalesboost.com), which helps organizations improve their sales and overall business processes. Phone 419-351-4347; to receive the B2B Sales Boost Newsletter, send an email to sales@b2bsalesboost.com.
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Training
Joanne Nikolski
Use Mentorship Programs to Attract Young Construction Talent Features of mentorship programs make them unique from internships and apprenticeships THE BABY BOOMER generation is defined as those born roughly between 1946 and 1964. That means that today, this generation is between the ages of 53 and 71, and they are retiring at a rate of 10,000 people per day. Given these statistics, guiding new graduates into the construction industry has never been more important. Within 10 years, the Baby Boomers will be completely in retirement mode. All types of construction companies will find themselves saddled with work and without anyone skilled enough to do it. To prevent skills gaps from impacting your company when your talented construction professionals retire, it’s crucial to start investing in emerging talent today.
Mentorship vs. Internship/ Apprenticeship It is important to understand the different ways in which you can invest in and develop the Millennial and Generation Z talent you will be hiring to replace the Boomers and Gen Xers. You may already have certain entry-level development practices within your company, but there are several features of mentorship programs that make them unique from (and, in some ways, superior to) internship and apprenticeship programs. Internships and apprenticeships tend to be standardized, and are designed toward one specific goal. For example, interns may receive college credit and a generalized introduction to the workforce, while apprentices tend to earn certifications or other technical
designations. On the other hand, mentorships can be very customized and flexible. They can be adjusted to suit a particular mentee’s goals and learning style, and they do not have a fixed end date. Mentor/mentee relationships can last throughout the duration of a mentee’s career, including after a mentor has retired. In a mentorship situation, the mentor and mentee connect one-on-one, which strengthens the personal relationship and allows for low-pressure, high-value conversations. In addition, unlike an internship or apprenticeship program, mentorship programs benefit both the mentor and mentee in equal measure. While mentees gain insights into the construction industry and grow their networks and skill sets with the help of experienced workers, we have seen time and time again that those experienced workers are eager to mentor and coach incoming talent. They understand that without passing on their wisdom and experience to a new generation of workers, that knowledge could all be lost. Mentees can also provide help with new technologies and bring fresh perspectives to old problems. By pairing up talented Baby Boomers with eager, new workers, you provide each of them with opportunities for growth and express confidence in their respective, unique abilities.
Build or Improve Your Mentorship Program As important as recruiting highpotential talent is, it does not have to be complicated. Challenge each of your workers who are heading toward retirement to find a mentee, and open the challenge to the rest of your organization. Whether they’re looking within their own families or considering potential
candidates from shared volunteer opportunities or neighborhoods, you’ll be surprised by how many employees might know recent or soon-to-be graduates who are looking for excellent, long-term career opportunities. Reach out within those networks and implement the new recruiting strategies you’ve developed. You can also connect with local community colleges, universities or high schools, taking advantage of career centers or guidance counselors who can guide promising students into your program. Once you identify and attract potential mentees, make sure that you are very strategic as you pair them with a mentor. You know your workforce well. Have a frank, open discussion with the student or new employee to determine their career goals, key personality traits and communication styles, and use that information to determine which experienced construction professionals would be a good fit to coach them. You want their communication styles to be compatible, but you also want to consider what each person can learn from the other. For example, say you have a mentee who is technologically advanced and who has an excellent work ethic, but who struggles interpersonally and worries about their ability to network well and communicate effectively in the workplace. Pair them with a strong communicator within your organization who is recognized as a respected leader but who may not have as much expertise on the technical side of the construction industry. Mentors and mentees should be in regular contact, especially at first. Encourage a minimum of one weekly
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meeting, whether in the office or out, where they can discuss what is going well, find opportunities for improvement and build their relationship consistently. As the relationship develops, they may work out their own meeting times and communicate differently, but at the outset a regular schedule will help build the habit of staying in touch. It is also important to ask for regular feedback from all participants in your mentorship program. Set up an anonymous feedback system that will allow you to gauge how effectively you are matching your mentor/mentee sets, how supported each person feels and how you can improve your program to serve everyone’s needs better. After all, a great mentorship program benefits your company culture as much as it benefits the individual participants. The key to the future of the construction industry is identifying, recruiting and training new workers who want the chance to make a difference as well as earn a living. We are seeing companies invest in this talent pool and use mentorship programs to provide lifelong skills
and relationships to up-and-coming construction professionals. It is paying off as they strengthen their organizations and eliminate the threat of a skills gap as their experienced workers retire.
Joanne Nikolski is a senior recruiter in the General Construction Division of Kimmel & Associates. She has more than 25 years of experience in recruiting and sales, and also specializes in the disaster restoration industry.
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SEALER ADDITIVES ADVANTAGE-4 • High potency additive, based on 100% acrylics • • Use with RT & AE based sealers • • Higher scuff and chemical resistance •
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Based on acrylic polymers and specialty chemicals. Faster drying time by up to 75%.
Learn “How to” Mentor at NPE 2019 Gary Rabine, founder of Rabine Paving and a Pavement Advisory Board member will discuss Mentorship Excellence: The Key to Personal and Industry Leadership at the 2019 National Pavement Expo, Feb. 27-March 2 in Nashville. Rabine is founder of the nonprofit True Mentors and will discuss the “mentoring” process, including how it works and how it can instill leadership characteristics and develop leaders – in place of or in addition to a formal education. He’ll also outline how to establish a mentoring program within your company, and how mentoring can make a significant impact on the development of your employees – and on those who mentor them. For details visit www. nationalpavementexpo.com
Macro-Fast
Based on acrylic copolymers, fast evaporating solvents and specialty chemicals. Does not increase viscosity.
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Pavement Profit Center
KoldSpray Model MMA 982WB Walk Behind Line Striper Methyl methacrylate (MMA) striping machine The KoldSpray Model MMA 982WB walk-behind line striper sprays. KoldSpray MMA 982WB is designed to spray methyl methacrylate pavement marking materials at a fixed ratio of 98 parts resin to 2 parts of catalyst. • Available with single or dual striping guns • Stripe lines from 2 to 12 inches wide per gun • Guns operate manually or automatically using built-in layout and skip-timer functions • Guns are easily removed from the quick-connect holder for use spraying legends or other detail markings • All stainless steel and polymer wetted parts • Catalyst pump utilizes DTC’s robust patent pending HydraSync and TriRod pump technology which provides accurate and reliable proportioning of the catalyst at a 2% ratio by weight • 4-liter stainless steel catalyst and solvent tanks are standard • Resin is dispensed from the factory 5-gallon material container or an optional 15-gallon container • Gravity flow or pressurized bead systems with air compressor are available as options • Powered by a 6.5 HP Honda engine
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Replacement Brooms You Can Rely On
Booth #17156
Quality. Performance. On-Time Delivery Keystone Plastics has been manufacturing the industry’s leading replacement brooms for street sweeping and road construction since 1954. At Keystone we believe in reliable quality and strive to make the heaviest, longest lasting brooms in the industry. We also believe the only good broom is one that arrives to you as promised. Contact us to find a distributor near you. Learn more about Keystone Quality kpbrush.com | 800.635.5238
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Pavement Profit Center
WALK-BEHIND GUIDANCE LASERS
GL1000
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GL1700
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ForConstructionPros.com/10158355
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Pavement Profit Center
PAVEMENT MARKING EQUIPMENT DIVISION
M-B Companies Inc.’s Pavement Marking Equipment Division specializes in designing and manufacturing equipment for all types of road marking materials.
M-B’s equipment line-up offers specialized designs engineered to meet the performance demands of private contractors as well as custom equipment configurations to meet the specification requirements of state and county road marking departments.
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QUALITY YOU NEED SERVICE YOU DESERVE
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Pavement Profit Center
EW
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TM
Tools Free Line Width Adjustment! Dispensing Technology introduces our new EasyRiserTM Spray Gun Elevator that facilitates quick and easy “on the fly” adjustment of line width for line stripers. EasyRiserTM has a vertical adjustment range of 5.9 inches and the spray gun can be stopped anywhere within this range the operator desires. Line width adjustments are easlily made by toggling a handle bar mounted switch. EasyRiserTM is shipped completely assembled with a quick connect mounting bracket and an easily mounted handle bar switch with fuse and connectors. An optional battery kit is available for stripers that are not equipped with a battery.
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IMPROVE RIDE QUALITY Skid Steer Attachment for Smoothing Pavement, Bump Grinding, Pavement Markings and Coatings Removal
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Paving
Allan Heydorn, Editor
Improving Pizza Delivery by
IMPROVING ROADS Domino’s “Paving for Pizza” ad campaign helping to protect your carryout pizza NORMALLY WHEN DOMINO’S Pizza asks “small, medium or large?” they’re filling an order for a pizza. But since last July they’ve been filling small, medium and large potholes and providing for other road repairs – and they’re only half done. That’s because a clever ad campaign that required input from pizza-buying customers and cooperation from various municipalities has already helped repair pavement in almost two dozen states – and Domino’s Pizza is on its way to smoothing the route for pizza carryout and delivery for one city in each of the 50 states. Initially the ad campaign had planned to provide a $5,000 grant to 20
municipalities, the idea being that the cities would put that money to use repairing roads. “We started in July and it really took off. People loved it,” says Jenny Fouracre, director of public relations for Domino’s. “So at the end of August we decided to amp it up and do one municipality in all 50 states.” By early November 22 cities in 22 states “have done everything they need to do and have started the process of paving” and Dominos has handed out $110,000 in Paving for Pizza grants. “And we’re working through the next 28 states,” Fouracre said.
How “Paving for Pizza” Works “The idea for the campaign was the result of a lot of talking with our customers,” Fouracre says. “We have a whole team that is devoted to getting
Visitors to www.PavingforPizza.com can select road conditions of mild, moderate, critical or catastrophic on the “Pothole Impact Meter” and a video shows the damage roads in that condition can cause to a pizza.
customer insights, and they heard a couple of stories regarding carryout pizzas and people driving their pizzas home.” So Dominos looked into it and realized that the pizzas being driven over roads that are in poor condition can be damaged before they can be eaten. To verify the extent of damage, Domino’s placed a camera inside a pizza warmer, then drove the pizza over roads of varying quality. The camera recorded the results, and the results can be seen at PavingforPizza.com, under the tagline “Bad roads shouldn’t happen to good pizza.” The site invites visitors to select a road condition (they can choose mild,
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moderate, critical or catastrophic) from its “Pothole Impact Meter.” Once selected the site plays a video – the “Pizza Damage Report” – to show exactly what happens to a pizza as it is driven to its destination over a road in that condition. Visitors to the site can then enter a zip code for their city or county to help get a Paving for Pizza grant for their town. Fouracre says the site has received more than 137,000 nominations covering more than 15,000 zip codes. Domino’s tracks and counts the nominations for each zip code and the zip codes with the greatest number of nominations become eligible for a grant. Domino’s then reaches out to the municipality. “Every municipality is different because some are not set up to accept a grant,” Fouracre says. “So we can’t just give them the money. Some have to get city council approval or the approval of the city’s attorney or whatever their specific process is. So even once we select a municipality it can take a while before we can send them the grant. But once all the Is are dotted and the Ts are crossed we send them a check and an Asset Kit and they can give us the date they plan to start paving.” The Asset Kit, Fouracre says, is to inject a little fun into the campaign and the process. It includes jobsite signs, magnetic truck signs with the Domino’s logo, Paving for Pizza business cards and stickers and even stencils for use once the job is done.
By early November 22 cities in 22 states have qualified to receive Domino’s $5,000 Paving for Pizza grant and have started or completed their paving work.
Hamtramck, MI; Grand Forks, ND; New Orleans, LA; and Jackson, MS.
Fun...and Successful
The Importance of Pizza “Potholes, cracks, and bumps in the road can cause irreversible damage to your pizza during the drive home from Domino’s. We can’t stand by and let your cheese slide to one side, your toppings get un-topped, or your boxes flipped. We’re helping to pave bad roads in all 50 states so that you can get your pizza home smoothly, no matter where you carry out.” – from the Paving for Pizza website
Fouracre says that Domino’s asks each municipality to use the $5000 for paving projects in their town “and they get to decide how that happens.” She says many of the municipalities have their own crews to perform road repairs, but municipalities aren’t prevented from subcontracting the work to a private contractor. She says cities are welcome to report back to Domino’s what they accomplished with the grant and a number of them have: • Bartonville, TX – Filled 8 potholes and repaired 3 roads • Athens, GA – Repaved 150 square yards of failing roads • Burbank, CA – Repaired 5 potholes, 1 road improved • Milford, DE – Repaired 40 potholes on 10 roads in 10 hours Other cities that have accepted a grant and are in the process of repairing roads include Wilkes-Barre, PA; Fitchburg, MA; Kinston, NC; Des Moines, IA; Marion, TX; Havre, MT; Milwaukee, WI; Once a city has accepted a Paving for Pizza grant, Domino's sends them a check along with a Paving for Pizza Asset Kit that includes worksite signs, business cards and magnetic signs for the trucks.
“It’s been a campaign that’s been fun for our customers, for the cities and for our stores,” she says. “Our customers like that they’re being listened to and we think everyone is having some fun with it. “For us it’s being part of their community. People really love that we’re out there doing something for their neighborhood and our stores really like it – after all it’s their neighborhood, too, and they’re getting some recognition for it.” In fact, local Domino’s outlets are supporting the program by providing free pizzas to Paving for Pizza crews on the job.
Fouracre says the Local Domino’s campaign will continue stores have until Domino’s has provided delivered grants to one city in each free pizza state. She said a number of to Paving municipalities are currently for Pizza workers on working through their the job. process so they can accept a grant but there are still additional cities in additional states to be selected. She said she expects the approval process to continue through the winter but some cities have already indicated that they will wait to spring to make their road repairs. “The concept is we care about our customers and their experience and we want to make the carryout pizza experience the best it can be,” Fouracre said.
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Sealcoating
Allan Heydorn, Editor
Is Reselling Sealer a Way to Grow Your Business? Contractors often see reselling sealer as a way to increase their margins, but there’s more to sealer distribution than filling tanks
ALMOST EVERY SEALCOATING contractor, once they reach a certain level of production, considers selling sealer. And the thought process is almost always the same: They know price is related to volume, so if they can sell sealer they can buy more, making it cheaper for their own sealcoating – plus make money on the sealer they sell. It’s a win-win! But not so fast. While sealer manufacturers do rely on contractor resellers and distributors (more on the distinction below) to expand their sales in markets distant from their plants, there’s a lot more involved in the business of reselling sealer than most contractors consider. “Selling sealer is a separate business and you have to regard it that way,” says Bill Maclean, The Brewer Company. That means figuring out why you want to sell sealer, doing your homework on your market, examining the costs and profit potential, recognizing the impact selling sealer will have on your contracting business, understanding the pitfalls and challenges – essentially developing a business plan for the new business. “Typically when contractors approach us about this they haven’t done any due diligence on their own and they haven’t completed or even thought of developing a business plan for becoming a
distributor,” says Jeff Cayton, regional vice president at Neyra Industries. “Oftentimes people who want to resell sealer want to have control of the sealer in that market. They feel like they’re going to get a piece of everything that goes on in that market even if they aren’t doing the job. That’s not really true.” Of course, that doesn’t mean contractors shouldn’t consider becoming a reseller or distributor. It just means contractors should enter this new type of business only after doing their homework and with reasonable expectations of what reselling sealer can provide.
Reseller vs. Distributor Sealer manufacturers make clear that there is a distinction between a “reseller” and a “distributor,” and most manufacturers rely on (and prefer to rely on) distributors. A reseller is a contractor who simply sells sealer, perhaps carrying a few additional items in inventory but not much. A distributor, on the other hand, might or might not sell sealer but carries a full inventory of the support materials sealcoating contractors use. “They are two different approaches. A distributor understands he is buying product and selling product and other tools or equipment or material and he understands how selling those additional items affects his business. That’s how he makes his money. That’s his business model. The distributor understands the importance of smaller items and sells those products,” says Lee Lowis, president of GemSeal. He says the reseller, on the other hand, figures they will get a price break on sealer if they purchase more gallons, which they figure will add to their bottom line or at least offset some other costs. That combined with the money
generated by selling those additional gallons to other contractors is often seen as a way to make or save some money. “A lot of times resellers think they’re going to make more money on a gallon of sealer than they really are,” Lowis says. “Contractors often don’t understand the costs involved in becoming a reseller and they often don’t know that the revenue from reselling sealer is fairly small. “When we sit down with them and do the math they realize that unless they’re going to be selling a significant volume they won’t really make much money,” Lowis says. Maclean says that over the years The Brewer Co. has sharpened its requirements for becoming a distributor. “Twenty-five years ago if you bought sealer from us and wanted to resell that product we said okay, you are a distributor. Now, we want to understand your business model and commitment. What sealer product is right for your market? What other items will you need to support contractors who buy from you? Successful distributors support their customers with the products they need, ample supply and information. Today, we are an active partner in that effort” he says. Among the inventory manufacturers expect distributors to carry are sand, additives, crackfiller, paint, tools – basically any products a contractor might need to buy. “You really need to carry all the inventory a contractor needs, otherwise you don’t captivate that customer,” Cayton says. “If they have to go somewhere else to buy what you don’t have, why would they come to you when they could just go to one place instead of two?” Girish Dubey, STAR Inc. president, says STAR distributors start by carrying the basics.
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Sealcoating
“They don’t have to carry every sealer product we make but they should buy the product that sells or is desired in their market,” Dubey says. “Their site also needs to have a source of clean water because the mix design is so important. They have to carry sand and at least a couple of different additives.” Dubey says that in most cases, distributors who are also contractors will use the majority of inventoried products themselves, so carrying a full inventory doesn’t have to be burdensome. “As a contractor they know what products are in demand in their market and that’s where they should start their inventory. They don’t have to maintain an inventory of items if they don’t have the space from the get-go but eventually we expect them to work their way up.”
What is the Profit Potential? While reduced pricing is usually the driving force behind contractors looking to resell sealer, price should not be the determining factor. “If you understand your labor and your overhead costs and sell profitable work, you’re going to make a whole lot more money than you’ll make by reselling sealer,” Maclean says. “Reselling sealer is not a revenue stream if you’re looking at it the right way. It’s a different business model and approach. It’s an add-on for your business because it drives your sealer purchases a bit higher to get a few cents off a gallon of sealer,” Lowis says. “Hypothetically, say you make 25 cents on a gallon of sealer. You’ll make more money applying that gallon on the pavement than by selling that tank of sealer. Some people think that reselling sealer is a higher margin and bigger profit than it really is.” Cayton agrees. “Margins on sealer are very thin so you have to do huge volume to make any real money on it. Let’s say you’re working on 10%
margin on a product that’s $2 a gallon; that’s 20 cents profit per gallon. If you’re doing a $5,000 job at 10% margin you’re looking at $500 profit. If they spend time getting one or two more jobs for the year they will make better money than they will reselling sealer all year long. I generally discourage reselling because if you really do the due diligence, your homework and the math, a lot of times the math doesn’t work.”
Doing Your Homework Manufacturers emphasize that contractors interested in becoming distributors or resellers need to do their homework. “People think they want to be a distributor but they’re often surprised at what’s involved,” Cayton says. He says, for example, that many contractors have to hire an extra person to staff the yard all day to sell sealer to other contractors. “If that’s the case it’s just not going to be that profitable.” He says if you already have that person on staff, and he (or she) is at the yard all day, then that cost concern is alleviated – although meeting with contractors and filling tanks and answering questions and accepting payment will take time away from whatever other duties that person normally has. Because markets are so different each situation needs to be considered on a market-by-market, caseby-case basis to determine if it is financially beneficial to the contractor – and to the sealer manufacturer. “Not all markets are large enough to generate sufficient sales for distribution to be profitable as a standalone business,” Maclean says. “If you’re in the middle of nowhere with a small number of potential customers then reselling without the larger commitments of time and inventory might make sense, but you still need to do your homework – who will you sell to, what product(s) do they use, will they buy from you, etc.” “But if you’re in a small market with one or more established
Check These Boxes When Considering Reselling Sealer ❑ Develop a business plan for your reselling or distribution operation. ❑ Make sure any additional expenses are factored into your costs and included in your business plan. Margins on reselling sealer are going to be slim. ❑ Understand the costs associated with buying and storing the inventory. ❑ Maintain enough sealer and inventory so you have everything available when people need it. ❑ Don’t overestimate how many additional gallons of sealer you expect to sell. Try to come up with a realistic number. ❑ Determine a realistic price point for reselling sealer. ❑ Evaluate your yard and site to make sure it’s sized and suited for selling sealer. You’ll need space for the bulk tank, space for sealer delivery and space to fill buyers’ tanks. If contractors have to line up is there space for them to do that? Do you have a source for clean water? What’s the layout of your yard relative to the other things you have going on in your yard and business. Are you zoned to store and resell sealer? ❑ Don’t discuss any projects -- either ongoing or just projects in the bidding stage -- with customers buying sealer from you. ❑ Don’t ignore the impact reselling will have on your contracting business. One of the dangers is that contractors can find themselves with so much work that they don’t have time to handle both businesses well. ❑ Make it a cash-only business. This makes sure you get paid, eliminates the need for credit checks and saves the additional merchant fee charged by credit cards (which will cut into profits). ❑ Have an employee available to sell during the day and on weekends. ❑ Expect – and be able to answer – a lot of questions from your contractor customers. ❑ Support you customers when they encounter a problem on a job. ❑ Prepare for the impact this will have on your office and yard. You’ll have people in your yard who you don’t know. Your competitors will be in your yard. People will be in and out all day long. ❑ Install a meter on your bulk tanks and make sure it’s calibrated accurately. You need to be prepared to handle a complaint of “I bought 130 gallons and you only gave me 120.” Even worse, says GemSeal’s Lee Lowis, “Maybe the meter is off and instead of pumping 100 gallons you’re pumping 105 or 110. If so, where’s your profit?” ❑ Weigh how much money will drop to the bottom line at the end of the year vs. how much you can earn completing a few more sealcoating jobs.
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distributors who stock what their customers want, you would have a tough time competing with them and your time is better spent selling work.” “They need to start by developing a business plan to run a distributor business,” Cayton says. “After they’ve done that they can ask themselves if it is it really a direction they want to go. Nobody is going to know their market better than the contractor, so once they work through developing a business plan they’ll have a much better idea of what they will be facing and the kind of business they’ll be running – which is very different from a contracting business.”
Selling Sealer to Competitors Part of doing your homework includes understanding that you will be selling material to some of your competitors. Even in friendly situations selling to your competition has its pitfalls, so part of your business plan should include learning about and understanding your competition. Cayton says that it can be difficult for an established contractor to find people to buy from him because contractors might not want to buy from their competition – and that’s something that should be addressed in the business plan. “You have to be careful about selling to your competition,” Cayton says. “If you’re competing on jobs with people you sell to they’re not going to be very excited about buying sealer from you. So do you know your competition?” Maintaining a balance between “competing with” and “selling to” other contractors can be touchy, and several manufacturers suggested distributors cultivate relationships with smaller contractors with whom you don’t compete. “If you are a commercial applicator you can refer driveway work to smaller contractors or you can take the work and sub it to them,” Maclean says. “Many successful contractors who understand their labor, mobilization and overhead costs get inquiries on jobs they don’t necessarily want. If you’re a distributor you can pass those jobs along to smaller contractors who buy from you and strengthen that relationship.” In fact, Dubey says that’s how many contractors become resellers or distributors.
“Once they reach a certain size contractors make the decision that they don’t want to handle the smaller jobs, so either they sub it out or sell sealer to the smaller contractors to do the work with the stipulation that they buy the material from them.”
Should You Do it? So, bottom line: Should you think about becoming a reseller or distributor. “I don’t think there are a lot of advantages for contractors, to tell you the truth,” Cayton says. “If they are really going to be able to get their quantity up to whatever the needed level is, then bulk buying could be a minor advantage. And there might be some additional advantages as far as cash flow is concerned. But even then it will take several years before the initial costs are paid back because you have to buy and build up all the inventory you need to run a successful distribution business.” “If they approach it as an incremental
part of their business that can offset some of their other costs –and they don’t experience any setbacks – then okay. It’s not a bad idea,” Lowis says, adding that assumes they don’t have to hire another person to staff their yard. “If on a Saturday afternoon they need to send a crew guy out to fill 150 gallons of sealer, they probably didn’t make any money on that sale.” Maclean says he sees fewer contractors each year pursuing distribution. “If your market is such that there are no distributors, no company stores near you or existing distributors really aren’t supporting there customers, it may still be an opportunity, he says.” “People who are unsuccessful becoming distributors are people who have very lofty ideas,” Dubey says. “People who have done their homework and who have some skin in the game tend to be successful because they have reasonable expectations.”
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Pavement Marking
Paul Carlson
How Automated Vehicles Will Change Pavement Marking The needs of cameras and software used to detect pavement markings will drive changes in marking requirements THERE IS OBVIOUSLY a lot of excitement and even hype about the future of vehicle technologies to automate the task of driving. And when you combine the vehicle automation progress with the potential of connectivity and the shared economy, there are significant signs of an innovation revolution in the transportation sector. As the excitement and hype builds, so does pressure to get engaged and be part of the revolution. One of the questions that many road agencies think about is, “What can we do to prepare our highways for this innovation—to help accelerate the benefits while not sacrificing the needs of human drivers in the mixed vehicle fleet era?” While the question has been hard to answer with complete certainty, the best answer so far is also one of the simplest. We’ve known since at least 2013 that the automotive industry has desired higher standards in terms of uniform applications and maintenance of pavement markings. In 2013, Michael J. Robinson of General Motors testified before the House Committee on Transportation and Infrastructure Subcommittee on Highway and Transit saying that, “One of the key highway needs is to provide – at a minimum – clearly marked lanes and shoulders.” In 2015, Elon Musk complained about low contrast markings in a tweet. In 2016, Volvo’s North American CEO Lex Kerssemakers lost his cool as the automaker’s semi-autonomous prototype sporadically refused to drive itself during
a press event at the Los Angeles Auto Show. “It can’t find the lane markings!” Kerssemakers griped to Mayor Eric Garcetti, who was at the wheel. “You need to paint the bloody roads here!” Audi has now joined the group of unhappy automotive companies. In May 2018 Audi announced that their muchanticipated Level 3 technology (Traffic Jam Pilot on the 2019 Audi A8) will not be available in the United States because of several factors including legal and infrastructural. On the infrastructure side, Audi points to road markings, signage, and road configurations that can vary significantly from state to state and region to region – rendering a single solution impractical if not impossible. In January 2018, the Federal Highway Administration (FHWA) published 10 questions in the Federal Register with the intent to develop a better understanding of what was needed from the infrastructure side to support automated driving systems. In May 2018, the FHWA summarized the top themes from the RFI, including, “Greater uniformity and quality in road markings and traffic control devices would enable automation. Having greater consistency in road markings and traffic control devices and an improved state of good repair benefits
According to FHWA, “Greater uniformity and quality in road markings and traffic control devices would enable automation. Having greater consistency in road markings and traffic control devices and an improved state of good repair benefits all road users, including ADS.”
all road users, including ADS.” This FHWA finding prompted action within the National Committee on Uniform Traffic Control Devices (NCUTCD), whose purpose is to assist the FHWA in the development of standards, guides and warrants for traffic control devices and practices used to regulate, warn and guide traffic on streets and highways. The Marking Technical Committee of the NCUTCD developed a task force to consider the FHWA ADS RFI findings related to markings. That task force reviewed the available research and developed draft pavement marking criteria to engage stakeholders (e.g., automotive industry, highway industry, and policy makers). The draft criteria are driven by the needs of the cameras and the software that are used to detect pavement markings. The draft criteria include suggestions to improve uniformity such as dotted lane line extensions along exit ramps and chevron style markings in gore areas (neither
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of which are consistently practiced throughout the US). They also include criteria to help the cameras (and humans) detect markings in otherwise challenging conditions such as worn markings, wet conditions, glare, etc. (the suggestions include standardizing the width of edge lines at 6-inches and standardizing the skip length of a broken line to 15 feet). Some agencies are already conforming to these recommendations but national uniformity is lacking. For instance, Michigan and Florida Departments of Transportation (DOTs) have been using 6-inch wide markings for years. Agencies such as Michigan and Florida adopted 6-inch wide markings as a way to evolve their infrastructure to accommodate older drivers. California adopted 6-inch wide markings in 2018 as a way to accommodate automated vehicle technologies (many of the companies pursing automated vehicles are based in California). The point is that the highway infrastructure has evolved before (for the last 20 years there has been a push to accommodate older drivers) and will continue to evolve. The next evolution might be the transition from the human driver to the machine driver. But in the
FHWA has announced it will develop a new MUTCD to address the needs of automated vehicle technologies. It will likely require 6-inch-wide edge lines and possibly minimum required pavement marking retroreflectivity levels.
meantime, for the foreseeable future, there will be a mix of human drivers and machine drivers on the road. The challenge will be to find areas where the highway infrastructure can evolve to assist the adoption of automated vehicle technologies while accommodating the needs of human drivers. In October 2018, the U.S. DOT released their highly anticipated document, “Preparing for the Future of Transportation: Automated Vehicles 3.0 (AV3.0).” This document introduces guiding principles and describes the U.S. DOT’s strategy to address existing barriers to safety innovation and progress (https://www.transportation.gov/ av/3). One of the most noteworthy items described in this document (as it relates to pavement markings) is that the FHWA will pursue an update to the 2009 Manual on Uniform Traffic Control Devices (MUTCD), taking into consideration the needs of automated vehicle technologies, “The U.S. DOT recognizes that the quality and uniformity of road markings … support safe and efficient driving by both human drivers and automated vehicles (pg. 11).” The biggest challenge for the FHWA as they develop a new MUTCD is what to include that will demonstrate their intent to address the needs of automated vehicle technologies. For road markings, there is likely to be subtle changes from current practices. In other words, there will not be a significantly new requirement such as embedded microchips in road markings. However, there may be changes such as 6-inch wide edge lines, and possibly adding minimum required pavement marking retroreflectivity levels (which has been a Congressional mandate since 1993 that FHWA is still trying to fully implement). Changes likes these have been proven in multiple studies to be good for both the human driver and the machine driver. Greg Driskell, ATSSA Board of Directors member and president of Professional Pavement Products, Inc., said when it comes to AVs and roadway infrastructure, it’s important to talk about the “hurdles” and what is most needed today and tomorrow.
A draft of changes needed to accommodate automated vehicles focuses on the needs of the cameras and the software that are used to detect pavement markings.
“The most important infrastructure element on our roadway system for automated vehicles (AVs) and for Advanced Driver Assist Systems (ADAS), is pavement markings,” Driskell said. “There’s a significant and almost complete reliance on pavement markings for the automated vehicle technologies of today. A lot of people think AVs mean the car drives down the road and you’re facing the other direction, working on your computer, but we have partial AVs on the road right now. Honda, Cadillacs, Chevrolets, they all have these ADAS systems and they all depend heavily on being able to see that pavement marking.” “A lot of people don’t think we will need signs, traffic signals, or pavement markings in the future but if you talk to the people who are doing the automated vehicle work, they insist that pavement markings are a vital infrastructure asset now and, in the future,” Driskell said. “They have all of these sensors, all this technology, but pavement markings give them confirmation that their sensors are providing good information. Ultimately, the auto side is telling me they’re always going to want pavement markings on the road. That is a positive sign for pavement marking contractors.” Paul Carlson is chief technology officer, Road Infrastructure, Inc., PCarlson@ roadinfrastructureinc.com.
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Contractors ’ Choice: Milling Jessica Lombardo
What to Know Before Buying a Milling Machine More decisions go into the purchase of this piece of equipment over any other IT’S A WELL-SHARED sentiment that paving companies do not like to see another companies’ machine in front of them running the mill while they’re doing the paving. Add that to the fact that many paving companies are at the mercy of the milling contractor’s schedule and it makes sense that many paving contractors want to be their own source, but be careful before jumping all in. “Contractors want to have control over their own operations and if they sub-out their milling, that can be a complexity within their business,” A.J. Lee, product manager for milling machines with Caterpillar, Inc. says. “But there is math at play that contractors need to be aware of before buying their own machine.” Many companies are contracting out milling services on an annual basis. Is what you’re paying for these services annually, over multiple years after costs and inefficiencies, more than what it would cost to own and operate a mill?
That’s where contractors need to look long and hard. Whether you’re a dedicated milling contractor or a paving contractor looking to bring this service in-house, there are many things to consider before making a purchase. Understanding the full cost of ownership before jumping in to any large purchase decisions is the best place to start.
Can You Staff It? There is a reason nearly 40% of the industry are dedicated to just milling. This is a specialty business that requires experience and dedication to get the job done right. Whether your company has 15 milling machines in its fleet or you’re considering purchasing a mill for the first time, you first need to consider if your company even has the staff to run this new piece of equipment. “If you’re going to be going out and actively bidding milling jobs, you first and foremost need to decide if you have
the crew to run it,” A.J. Lee, product manager for milling machines with Caterpillar, Inc. says. “A mill is a big complex machine that requires an operator that can run the machine efficiently in order to win business repeatedly is key.” And it today’s competitive labor market, it can be hard to find quality operators that can complete this specialty work. “The first thing contractors need to understand is if you don’t have a quality crew, it won’t matter who makes that machine, it’s not going to what it’s designed to do,” Tom Chastain, milling applications specialist at Wirtgen America says. “That’s the biggest things contractors need to understand right out of the gate when considering any equipment purchase.”
Work Load Determines Size Once you’ve determined you have the staff to run the machine, you need to make sure you have the work to continually feed it. There is nothing worse than
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a huge piece of iron sitting idle for days without the work to keep it busy. “This is not a machine you bring out and use once a month,” Lee says. “In order to manage your costs, you need to be really aware of the business in order to keep the machine running. Crews that are running their mills continuously are putting 1,000 hours on their machine easily with many of them putting up to 1,800 hours on it.” One you decide you have enough inhouse work to keep a mill busy for a few years and make it a part of your internal services, then you can look at size. “Paving practices, the common applications and project requirements will help in selecting the proper machine,” Kyle Hammon, product manager for mills, stabilizers and brooms at Roadtec says. “What cut width, cut depth and production levels will be necessary from the machine most often? These factors will also help determine the most suitable horsepower and size class of the machine.” Smaller commercial mills are often used for parking lots, shoulders and patching. The cut width of these machines ranges between 2-feet and 5-feet. These machines are nimble and capable of reaching more confined areas. However, they can be limited in overall production due to cut width and horsepower. Half-lane machines have the benefit of versatility. They have more mobility than the full-lane machines, but also more horsepower than the smaller mills. Full-lane machines are large, high
horsepower units designed for high production milling of highways and interstates. Niche contractors who really have the time to use them are going to be more apt to purchase these machines. “Smaller units are versatile in tighter areas such as parking lots and neighborhoods, but can require more passes to accomplish the same amount of work (4-foot drum vs. 7-foot, 3-inch drum.),” Matt White, product manager with Bomag, says. “Half-lane units are extremely popular because they allow for easy transport, powerful and efficient operation and versatility to maneuver in reasonably small areas. Large, full-lane units can easily remove large sections of pavement very rapidly.” But, the larger the machine, the more support that equipment is going to need. “Many times, the old adage “bigger is better” does not always hold true,” White adds. “Many times contractors can comfortably use a 600-700-hp mill just as effectively as a 900-1000-hp unit due to availability of dump trucks. A larger machine will require fleet of trucks to handle the large amount of freshly milled material. If the job site does not allow, due to traffic or distance from the dump site for example, the bottleneck will certainly not be the mill. I have seen many times where the mill waits 45 minutes on trucks to return.” In addition to relying on haul trucks, a full-lane machine is also more difficult to transport from job to job. “In a lot of states, full-lane mills are hard to transport fully-assembled
because they are considered superloads,” Chastain says. “It might be difficult to gain that permit so you really need to just consider what that machine is going to be doing. If the machine is just going to sit on the interstate and go, then you can consider a full-lane. But if you’re milling residential street, a full-lane will be overkill and you might damage that thin asphalt with the weight. Half-lane machines are great all-around versatile machines where you can do city streets, parking lots and interstates as well”
The Five C’s The basic systems on the milling machine will get the job done for you every day. The components you choose will help the machine to live up to those tasks that you’re putting before it.
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Contractors ’ Choice: Milling
Crawlers/tracks. Many milling machines are configured with either three or four tracks. The difference between the two is essentially preference. “Track configuration is an important consideration,” Hammon says. “Both 3-track and 4-track configurations are available. In a 3-track configuration, the rear steer function is more effective as the single rear track is free to turn without interference from the side wall of the cut.” Cutter System. Application will also determine the cutter system. Standard milling will only require a standard drum, but you need to understand the specifications that you’re working under and the wear those systems go through. Key attributes of the cutter drum are tooth spacing and lacing pattern. Tooth spacing can range anywhere between the industry standard (5/8-inch) and a micro-mill pattern (0.2-inch). “Drum configurations can vary from 6mm tooth spacing (with 15mm standard) to 25mm, so this must be a consideration,” White says. “Generally, the application will determine what options and size of machine will be needed.” “Some projects will have a smoothness specification, or the spacing of the drum itself can be specified,” Hammon says. “Micro-mill drums are used exclusively for shallow cut depths that are often followed by a thin overlay of asphalt. The lacing pattern can also be modified to provide a “double hit” drum. This is a more versatile option that will also provide a smooth surface pattern with more flexibility in cut depth.” “All the abuse happens inside the cutter housing,” Chastain adds. “Having a durable and well-designed system will help improve job quality and productivity.” Conveyors . “Conveying capacity is huge,” Chastain says. “If you don’t have the conveying capacity then you can’t get the material out so the machine is going to struggle more. You want to make sure you have ample capacity so you can do those deeper cuts and keep your production numbers up.”
Maintenance Matters The sole purpose of a milling machine is to crush rock, making it one of the more involved pieces of equipment when it comes to maintenance and your company needs to be ready to handle that. “Many contractors don’t think about the high costs associated with maintaining these machines,” Chastain says. “Milling is a self-destructive application. You have milling teeth, track pads, conveyor belts and other wear parts. You need to maintain the machine in order to continue to keep the quality and production from the machine up.” “These are expensive machines, there is a lot of upkeep,” Lee says. “These machines are literally designed to chew up asphalt, drag it through their guts and spit it out on the other end. That causes a lot of wear and tear so you really need to have a topnotch support system behind these machines. If you have a paving train with a mill break down, you have 15 trucks of asphalt sitting, pavers, rollers and a deadline approaching, you can’t sit there and not have the support you need to get back up and running.”
“Most modern milling machines are equipped with a front-loading conveyor system, tracks and grade control as standard,” Matt White, product manager with Bomag says. “Only with smaller units is there a choice between a tracked or wheeled unit, conveyor or windrow. This will come down to application and cost.”
Controls. “The controls on the machine, whether it be grade control or other integrated systems that the machines may have, will help you get the most out of the machine,” Lee says. “As the shortage of labor becomes more prevalent, it’s going to be more important for controls to have common platforms so operators can easily fill gaps on different crews. Controls should be easy to understand so that you can potentially pull an operator from a paving crew and have him be able to easily pick up what they need to do on a mill and vice versa. Comfort. Operators are the key to the success of your jobs and making sure they’re happy means they are going to be productive for more hours in a day. “Milling isn’t typically seen as a glorious job,” Chastain says. “Standing out in the sun for 12-14 hours a day starts to take a toll on people. Making the machine easy and comfortable to operate are big things to consider before buying." Vibration can also wear on an operator so consider choosing a mill that where the operator platform is isolated. "It's important that the entire operator platform is isolated from machine vibration," White says. "The BM2200/75’s entire operator platform is isolated from machine vibration. By utilizing the weight of the entire platform onto large isolation dampeners, vibration is nearly eliminated for the operator. This fights against long-term nerve damage that can occur from consistent exposure to vibration." Seats, canopies, cabins and easy to understand controls will also play a factor in increasing the comfort of your operators. “Careful consideration should made to look at all aspects when choosing the right mill,” White says. “Ease of operation and operator comfort is a tremendously important portion to consider. I’m a firm believer that if the operator(s) job is made easier, that will translate into better overall care of the machine, increased production and decreased down-time!”
48 January 2019 • PAVEMENT • www.ForConstructionPros.com/Pavement
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52 January 2019 • PAVEMENT • www.ForConstructionPros.com/Pavement
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1-866-789-7325 54 January 2019 • PAVEMENT • www.ForConstructionPros.com/Pavement
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On The Job
Ryan Frey
How to Extend
SNOW BLADE LIFE Start with blade selection, preventive maintenance and operator training IT’S NOT THAT hard to walk into a dealership, take a look around and pick out one of the least-expensive snow blades. It’s new. It’s made to move snow. And the price seems reasonable. It’s harder to know if that shiny good deal is going to pay off in the long run. But how long is it going to last before another bargain blade needs to be purchased? And how much downtime might there be if its components aren’t made for the rigors of the elements? While there’s no easy answer, there are a number of factors that can help future-focused snow removal contractors lengthen blade life. From blade choice to preventive maintenance to operator training, it all helps extend a blade’s lifespan and, as a result, provide a better return on investment.
Before the Buy It all begins with matching the plow to the carrier. While it may be tempting for contractors who just bought a new carrier to save money by using a blade already in their fleet, they could be putting efficiency and longevity at risk. Using a bigger carrier than recommended for a blade can cause stress fractures and cracks in the blade, significantly shortening its life. Meanwhile, using a carrier that’s not big enough for the blade doesn’t maximize the blade’s potential. Beyond finding the right match, some
blade features and components are simply better engineered and built to withstand harsh day-to-day conditions, and last longer than others. Choosing a new or even used blade with such features can lead to years of use with little downtime. Carbide edges are a prime example. While they cost about four times more than steel edges, they can last as much as seven times longer, which means fewer replacements and, in turn, less downtime. A contractor can go through two sets of steel edges in a season, whereas a carbide edge can last more than three seasons. That’s a half-dozen fewer stints of downtime to replace the edges, coupled with 43 percent savings over those seasons in product cost. That savings multiplies when compared to rubber or polyurethane edges. These softer materials may fare OK on smaller, lighter-duty blades and are even required for some applications, such as airport runway jobs, but for clearing large parking lots or roadways, they are impractical. Rubber and polyurethane wear faster than steel and much faster than carbide, even when lubricated in wet conditions. In cold, dry areas, rubber gets brittle and wears down even faster over dry pavement. When it comes to cutting edges, carbide isn’t the only feature that contributes to longer wear life. Reversible edges that can easily be flipped and replaced double edges’ useful life as well. The material type matters beyond the cutting edges, too. The thicker the blade’s steel, the heavier duty it is, but
Be sure to use the appropriate down pressure and speed. Excessive down pressure can quickly wear out cutting edges and, when paired with faster speeds, can cause significant blade damage when hitting an obstacle hidden under the snow.
there’s a caveat: More steel means more weight, and thus more strain on the carrier or the need for a larger carrier. Some manufacturers combat this by using steel that offers the right balance between steel gauge, weight and abrasion resistance. Choose blades with cutting edges that are made with steel that has abrasion-resistant properties of AR400 or better. This ensures a long wear life without a significant weight increase. Blades that incorporate steel tube frames also better resist flexing, helping the blade last even longer. Threats to a blade’s wear life also lurk beneath the snow, as it’s inevitable the blade is going to hit something hidden below. While best known for improving productivity, segmented blades that trip over obstacles lessen damage. To get the longest life from these trip edges, look for a model that connects the panels with parallel steel linkages rather than polyurethane block systems. Parallel systems keep the moldboard properly aligned during use, eliminating the risk of damage when piling and stacking snow. Hydraulic systems also can make or break—literally—a good return on investment. The simpler the hydraulic system, the less it should cost to maintain, and the longer it should last since there are fewer cylinders and pins to
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wear or break, and need replacement over the life of the blade.
Maintaining for the Future Besides hydraulic system simplicity, regular visual inspections of the system go a long way in getting the best life out of a snow blade. Check the hydraulic lines and linkages daily, looking for wear, cracks and loose connections. Sure, it’s probably not feasible or even the first thing on an operator’s mind when heading out at 2 a.m., but it should at least be done at the end of a shift. If a hydraulic line does come loose, it can get caught in the carrier, or pinched or cut by the blade. What could have been a minute spent checking and tightening the line becomes a more timeintensive process to repair or replace the line. Not only is that downtime unnecessary and undesirable, but Murphy’s law predicts it’s going to happen in the middle of a big snowstorm. Even less dramatic damage, such as cracks in hydraulic hoses, can lead to significant downtime if left unchecked since hose chafing causes leaks and leaks cause component failure.
Cutting edges that are made with carbide and can be flipped and replaced provide optimal longevity.
components lock up, maintenance time increases exponentially. While it’s important to keep moving parts moving, it’s just as essential to keep stationary parts stationary. Regularly check a blade’s parts and fasteners, ensuring they’re tight and in place. Pay special attention to bolts along a blade’s cutting edge. Blade operation causes vibration and stress, which can loosen bolts. If a loose bolt isn’t spotted and tightened, it may shear off when going over a manhole cover or other obstacle, requiring the operator to stop and make repairs. For the best blade life, annual maintenance checks—whether at the beginning or end of the season—should be done. Before storing a blade for the summer or taking it out in the fall, thoroughly clean the equipment. Once cleaned, it is easier to spot issues, from loose parts to cracks. Tighten parts when feasible and replace others when needed. Whether completely worn or not, some parts benefit from annual replacements and changing them can ensure greater uptime during the peak snow removal season. Swap out skid shoes annually, for example, and replace the cutting edge if needed. Using original equipment manufacturer (OEM) parts and keeping backups handy not only increases uptime, but also lessens the risk of using a less-than-optimal replacement in a time pinch and ending up with damage. When inspecting the cleaned blade, look for areas where the paint is scratched or worn. Use custom-matched spray paint from a manufacturer or dealer to cover any damage. While this goes a long way in terms of resale value, it also helps prevent rust, prolonging blade life.
The Drive toward Longevity Maintaining a regular schedule of greasing a blade’s moving parts also adds to the product’s life. Check the owner’s manual for recommended grease points and set a schedule so it’s not forgotten. Be sure to choose grease with an adequate cold rating, as well as strong moisture-repellent qualities. It’s common knowledge that snow melts and, if that water gets into areas lacking lubrication, it can seize a blade’s moving parts. If
Correct operation also has an impact in getting the most use from a blade. Intuitively, the faster something goes, the quicker the task is going to be accomplished. That’s not the case with snow removal, though. Rather than finishing the job faster, excessive speed often results in blade damage. Similarly, strong down pressure may seem to be the best way to scrape a road right to the surface, but that, too, can backfire. Excess
pressure causes premature wear, especially on cutting edges. Plus, the combination of too much down pressure and speed can cause damage since something is inevitably going to be hidden under the snow and, when hit with extra speed and pressure, be more likely to damage the blade. Operators also should avoid angling the snow blade forward. While doing this can occasionally clean the surface better, long-term use can be detrimental. Manufacturers design blades to be used perpendicularly to the ground, so tipping the top forward can wear cutting edges and blade wings faster than if used properly.
When buying a blade make sure to match the plow to the carrier. Using a bigger carrier than recommended for a blade can cause stress fractures and cracks in the blade. Using a carrier that’s not big enough for the blade doesn’t maximize the blade’s potential.
Call in Backup When longevity is needed, customer support is key. A manufacturer that backs its products with a favorable warranty is more confident in how they’re going to hold up. Look for a product that is going to be supported at least through its first couple of years. That way, if something goes wrong, there’s no stress in getting a fast replacement. More often than not, though, the longer the warranty, the less worry there is going to be of a breakdown. Ryan Frey is the general manager of Horst Welding, which has been manufacturing equipment solutions for the snow removal and agricultural markets for more than 20 years, including its HLA brand of snow removal equipment. For more information visit www. greenindustrypros.com/10155831.
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From the Owner’s Desk
Nick Howell
Why I’ve been Attending National Pavement Expo for a Long, Long Time I’VE BEEN ATTENDING National Pavement Expo (NPE) since it was called National Pavement Maintenance Expo and was referred to as NPME. And yes, that dates me a little. And though things have changed over the years, one thing that remains the same: NPE is the premier source to learn the trade, see and buy new equipment. My first shows were just me attending solo; talk about a sensory experience from all angles! A lot of industry pros, cool equipment, great seminars -- it was just quite the experience. As time went on I started taking my right-hand guy, which now has evolved into taking our top guys and even some lower level staff. Why do I do it? You just can’t beat the level of pavement-related education anywhere else. The ability to take seminars and listen to industry veterans share their stories is invaluable. If you listen well to the speakers, you can often find the answers and keys to your own growth. Seminar topics include a wide range -- from management-related sessions to “how tos,” and even beginner courses. There is something for everyone at NPE. As strange as it might sound, I absolutely enjoy taking a session that I’ve already taken before. No, it’s not because I didn't learn anything the first (or second, or...), but just the opposite. Each time I take a class I learn more and more. One of my all-time favorite sessions was a class on pavement defects, presented by the great late industry veteran Alan Curtis. (That session is now presented at NPE by Wayne Jones, The Asphalt Institute.) It was through that class that I learned so much about what I was doing that it gave me the confidence to accurately diagnose a client’s pavement problems with ease. I took it every year. Not only did I continue to learn and refine my
Howell Adds a New Topic for NPE 2019 In addition to moderating the Sealcoaters Roundtable, Nick Howell, T & N Asphalt Services, will present three sessions – one new – at National Pavement Expo, Feb. 27-March 2 in Nashville. The new session: Improving Cash Flow (including Debt Collection) to Help You Survive, Thrive – and Grow, will offer cash flow tips, cover how to establish credit and how to transition from personal credit to business credit, provide an overview of credit options that can facilitate cash flow, and discuss collections including invoicing tips and techniques. Other Howell sessions are: Basic Pavement Defects: Causes, Solutions – and How to Set Your Price! and Sealcoating in the Field: Understanding Basics and Troubleshooting on the Job. For details and complete session descriptions visit www.nationalpavementexpo.com.
knowledge of asphalt, but to hear the many stores of Alan’s career was the icing on the cake. Very few times in life can we hear so often from those who have really made a difference in the industry, and NPE is one of those times. As much as the conference provides business management insights and technical training, the show floor provides opportunities to see “the latest and greatest” equipment, tools and materials. In fact, it’s usually where brand new equipment is released. It’s a great opportunity to really feel things out before you buy. But even if you’re not in the market for a new sealcoating rig, simply visiting with suppliers and exhibitors can be valuable. (Another benefit, unknown to those who don’t attend NPE, is that very often exhibitors will make killer deals if you are willing to buy and take the piece home after the show.) But as much as I learn from the seminars and enjoy talking with exhibitors, my all-time favorite part of NPE is the networking. I’ll admit, I’m a talker. But I also have learned so much over the years just by networking in the halls, on the show floor,
after the seminars, and at the free “roundtable” question-and-answer sessions. A while back, a group of us – contractors I’ve gotten to know over the years through NPE -- were talking about NPE and observed that while there is never any guarantee of success in business or life, those of us that have regularly attended the show and got involved in the industry are still around and thriving. Is there a correlation? Maybe, maybe not. But it’s a gamble I’d take anytime. See you at the show! Nick Howell, president of T & N Asphalt Services, Salt Lake City, UT, has been a regular presenter at National Pavement Expo since 2008 and a member of the Pavement Advisory Board since 2007. This is his first column for Pavement Maintenance & Reconstruction. Let him know your thoughts on “From the Owner’s Desk,” and if you have a question or topic you’d like covered – let him know that too! You can reach Nick at nick@ tnasphaltservices.com.
58 January 2019 • PAVEMENT • www.ForConstructionPros.com/Pavement
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David Whitlock
Your Business Matters
Marijuana Use at Work As more and more states enact laws that decriminalize, and in some cases, legalize marijuana use how does a contractor maintain a drug-free workplace? CONTRACTORS ARE increasingly frustrated by so-called marijuana reform legislation. More and more states are enacting laws that decriminalize, and in some cases, legalize marijuana use. Approximately 20 states now protect medical marijuana use to some extent. Half a dozen states now permit recreational marijuana use. Yet, marijuana remains a controlled substance illegal under federal law. So how do business owners maintain a zero-tolerance policy on drug and alcohol use? How can contractors maintain a drug-free workplace if their ability to conduct pre-employment and random drug testing is compromised by state legislation? What steps are contractors taking in states that have legalized recreational marijuana to find drug free employees? How do contractors avoid wrongful termination litigation? Good questions; unfortunately, there are not good answers for all of them.
Recreational Use First, let’s break the issue down into two different components: recreational use versus medical use. So far, no state court system has refused to acknowledge an employer’s right to prohibit impairment on the job. This means that contractors can drug test on a pre-employment and random basis and refuse to hire or terminate someone who is impaired by recreational marijuana use. This will likely continue to be the case so long as the federal government continues its current stand making marijuana a controlled substance with limited medical value. As a practical matter, contractors should continue pre-employment and random drug testing even in states that have legalized recreational marijuana use. One problem that may arise is determining “impairment.” Here, contractors should work closely with their occupational medicine clinic. If at all possible,
contractors should not make an “impairment” determination on their own, but instead should rely upon an evaluation by a medical professional. This is also important because impairment and drug testing results do not correlate well. In other words, an individual may test positive for marijuana use days or even weeks after impairment. This makes it all the more critical for contractors to rely upon the independent “impairment” determination of a qualified medical professional. Note that this is only necessary in states that have legalized use of marijuana. In other states, contractors can rely upon the drug testing results and make the decision not to hire or to terminate the individual.
Medical Use In states that have sanctioned medical use of marijuana, the situation is slightly different. In most cases, the individual will indicate before testing that he or she is a medical marijuana user, and usually will present a medical card issued by the state of documentation from a physician. Last summer, a Massachusetts court held that an employee who acknowledged medical use of marijuana and was terminated for a positive drug test could state a claim for disability discrimination. In essence, the court said that the employer must go through the disability claim process, using the reasonable accommodation analysis, before taking final action. As part of the reasonable accommodation analysis, the employer may claim that the accommodation the individual seeks would impose an undue burden. The Massachusetts court noted that if the employer is subject to DOT drug free workplace regulations or can otherwise prove that the individual’s medical use of marijuana would impair performance or pose an unacceptably significant safety risk to
the public, the individual, or coworkers, the employer’s undue burden claim would prevail. Here, again, close cooperation with an occupational medicine clinic is paramount. A medical professional may be the contractor’s best defense against a wrongful termination claim. The defense is strengthened if the medical professional understands and takes into consideration the performance impairment issue, but also if the medical professional understands the safety risk created by continued employment. The bottom line is know your state law. In states where no marijuana reform legislation has been enacted, test and rely upon the test results. In states where medical marijuana is legal, test but follow the disability claims analysis if the individual asserts medical use. Again, make certain to work closely with a medical professional who is well aware of the individual’s job and safety factors. In states that have also legalized recreational use, work closely with the medical professional to obtain an independent impairment determination. Of course, none of this guarantees drug free workers, but at least it will be safer to refuse to hire or terminate impaired workers and avoid wrongful termination lawsuits even in states that are legalizing marijuana use. David C. Whitlock has over 25 years experience in business immigration, compliance, employment counseling and training. He can be reached at (404) 626-7011 or at davidcwhitlock@gmail.com.
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Technology
Dave Nevogt
4
Steps to Get Your Construction Team to Buy Into Automation Software DESPITE THE impressive capabilities of emerging tools and software, many firms haven’t made the leap to modernize the way they run their business, and as a result, are working harder than they really need to. The construction companies that look to technology to improve business performance will find that they’re staying ahead of industry standards and their competitors. What’s needed now is a step-by-step procedure so that teams can easily transition to a more technology-driven system. Successfully implementing technology into the business is a full team effort, but with the right leadership and thinking, can be easier than you think.
Step 1: Explain how technology will make everyone’s lives easier It is the business owner's duty to let the team members know that a significant change is coming their way. This will give them time to prepare themselves without disrupting the way they work. The good news is that new technology will almost always simplify processes. Your team might require brief training or onboarding at first, but once you’ve explained how the software will streamline operations, it will be that much easier to implement.
Emphasize the problems faced by the construction industry. All industries have their own share of problems. Construction, however, faces quite a lot. It’s a well-known fact that construction is one of the industries with the most occupational hazards. While crewmen have adapted to these risks, the project heads should make them understand that there are more ways to guarantee better safety. Accountability, or lack thereof, is one of the major issues that construction managements face. The general failure to identify who is supposed to do what creates new complications like unfinished tasks and unexpected delays in schedule. There have even been incidents where contractors are either unfairly compensated or unpaid at all, caused by unrecorded work hours and failure to monitor the progress of the crewmen. It’s worth noting that there may be team members who firmly believe that nothing is wrong with the way they do their work. Whether this is completely or only partly true, they should understand that their work process is far from perfect, and can be made better. Give an idea of what the technology can do. Demonstrating the functionalities of
the tools can be considered a big opportunity to persuade the team why they are needed. Sometimes, the sheer capabilities of the tools are enough to convince them that they are indeed beneficial to the team.
Step 2: Show how technology is perfect for the team Once the team has been convinced, the project heads should focus on explaining how the tools can provide support for each particular problem they are facing. List the major problems down, then elaborate on how the features of specific software can mitigate them. Improve security standards with wearables. As mentioned above, safety is the most important concern in any given situation. Wearables are more advanced versions of safety equipment such as hard hats and vests. Modern technologies like GPS tracking, fatigue sensors and even cooling systems are embedded into them to ensure that the crewmen are always in safe areas and their physical condition is closely monitored. Plan more efficiently with business information modeling. The sheer amount of data that needs to be considered make construction
planning a long and tedious process. Geographic information, aesthetic requirements and project specs need to be well-documented and organized so that teams can execute properly. Business information modeling, or BIM software, can be used to create more accurate budgets and schedules. These can help prevent reworks which, according to research, equates to roughly 4% to 6% of the total project cost. Using BIM tools lead to better efficiency, fewer setbacks and potentially more earnings for the team. BIM software also support cloud features, which allow anyone involved in the project to access the files should the need arise. Manage teams better with time and project management apps. Due to the nature of construction projects, it’s difficult to ensure that every member of the team is making use of their time efficiently. A report shows that 35% of construction professionals’ time is spent on irrelevant tasks. Time management problems like this can be fixed with the use of time tracking software. They are basically time clocks for construction workers, and they have GPS location tracking capabilities which ensure that accurate
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time records from the crew are received by the management on a daily basis. Some time management apps come with features like automatic invoicing and support for virtual payment options, which make things much easier for contractors. Streamline work processes with artificial intelligence. Miscalculations on the construction site can affect the entire project plan, and may require expensive adjustments to fix. These potential delays can be lessened with the use of artificial intelligence. One of AI’s unique capabilities is generating useful information such as blueprints and 3D maps, which help make planning and decision-making easier. AI can also be utilized to further improve safety in the workplace. Modern AI such as Smartvid.io’s VINNIE is capable of performing assessments of sites to determine safe working areas and identify if anyone isn’t following safety guidelines via photo and video analysis.
simple conversation. It also allows you to understand the team members better, leading to faster implementation. Dave Nevogt has created several million-dollar companies and is the cofounder and CEO of Hubstaff (www.hubstaff.com), a time tracking software for on-site work crews with online timesheets, scheduling, billing and invoicing.
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Step 3: Conduct onboardings Set aside time for training on a new tool or bring in a representative to conduct a learning session. This will ensure the software is used properly and to its full extent, instead of avoided and ignored. Designate people in charge. It’s vital that there are people assigned to lead the transition to technology, and these people should be experts in the particular tools. They will be responsible for making sure that everyone on the team is able to keep up with the changes and must always be there to answer questions. Don’t force the change. It’s possible that the implementation of the technology goes smooth, but if it doesn’t there’s no reason to worry. Such a major change in the way the team operates will take time until everyone gets used to it.
Step 4: Listen to feedback Managers should make it a point to listen to team members who have something to say regardless of which stage of the transition process the team is in. Accepting feedback is an important part of the process because it is through feedback that the management finds out if there are better ways to implement the technology into the business. Often, feedback can be addressed right away because it stems from a lack of communication or misunderstanding that can be solved with a
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NAPSA
WSA
#PowerSweepingStrong Can You Sweep They say that time passes quickly, and it does. Over the course of the past year, NAPSA has undertaken and continued to press forward with our many challenging goals and as they say in Cincinnati, we are “rounding third and heading for home”. Any day now, the first ever Power Sweeping Standard will have survived the three rigorous levels for approval and will be finalized. As a result, NAPSA has turned its eyes toward creating the educational component of this very important project and is working on this important piece. We continue to refine the Certified Sweeping Operator Construction modules and they will be ready at National Pavement Expo 2019 making the second of two intense, focused training opportunities. The amount of time spent with these projects is simply staggering but the industry will benefit tremendously. If you haven’t had the opportunity to check out what NAPSA has online currently, visit www.SweeperSchool.com. NAPSA also starts the new year with a new Board of Directors and the shear knowledge base in this group is amazing. We welcome five new directors this year as well as those returning, so we are pleased to share the 2019 NAPSA Board of Directors: President: Scott Duscher, Agua Trucks Vice President: Chris Dick, Katsam Enterprises Secretary: Mark Carter, Peloton Sweeping Treasurer: Bryan Young, TYMCO Manufacturing Past President: Pete Phillips, Clean Sweep
Directors: • Loring Dunton, C & L Sweeping • Lee Miller, Pacific Sweeping • Nikki Kryston, Property Maintenance Services • Cole Watts, More Clean of Texas • Matt Andrews, West Michigan Sweepers • Chris Griffin, C & M Parking Lot Sweepers • Jay Presutti, East Coast Industrial Services • David McCaskill, AccuSweep Services • Greg Heyer, Old Dominion Brush • Jeff Old, Visual App These power sweeping power houses have been charged with continuing the great course for NAPSA members and the power sweeping industry. It is through NAPSA that power sweeping has a community from which to grow and thrive. If you would like to find out more about NAPSA, visit our website at www.PowerSweeping. org....#powersweepingstrong
The North American Power Sweeping Association (NAPSA) is a nonprofit association made up of 200+ contract sweepers, service providers and sweeping equipment dealers, manufacturers and suppliers. NAPSA is dedicated to providing beneficial support to the membership and enhancing services to the sweeping industry. NAPSA is committed to promoting and educating the power sweeping community while enhancing the environment. For more information on NAPSA membership, please visit www.powersweeping.org or call (888) 757-0130.
the ‘Pavement of Tomorrow?’ by Ranger Kidwell-Ross
Finding ways to reduce stormwater runoff pollution is an ongoing problem and the adage we heard 30 years ago — that clean water would ‘become the new oil’ — is now roaring to the forefront throughout the U.S. and the world. To address the problem, three different types of paved surfaces that allow water to pass through them are increasingly being built. The biggest advantage of pass-through pavements is that rainwater is naturally filtered back into the ground rather than running off into receiving waters, transporting pollutants as it goes. To distinguish them from each other the different types of pass-through pavements have similar, but not identical, names: 'porous' when referring to asphalt, 'pervious' for concrete and 'permeable' for interlocking concrete paving blocks. All three share a characteristic that is the crux of this article: They need to be cleaned on a routine basis by professionals who understand how to do so and who have the correct equipment. Most types of air sweepers will do the job, though some believe vacuum units may offer a better solution than regenerative air. Either type can do the work, though, and cleaning pass-through surfaces is a market niche that is poised to become more and more lucrative over time. To learn what you need to know, go to WorldSweeper. com and put the search term
‘porous’ into the Google search bar located toward the middle top of the page. You’ll see links to articles that will explain what you need to know. Once convinced you can handle cleaning pass-through surfaces, I encourage you to complete the survey that WSA and the Interlocking Concrete Pavement Institute have collaborated on that’s designed to develop a list of sweeping contractors pavement owners can call. Here’s the survey link: www.surveymonkey.com/r/ VS7FVZB As always, the management team at WSA is here to answer your questions. Feel free to call us toll-free at 866.635.2205.
WSA contributor Ranger Kidwell-Ross has been providing information to the power sweeping industry since 1988. He is editor of WorldSweeper.com, an information resource for power sweeping, as well as founder and executive director of the World Sweeping Association. For more information about WSA visit www.WorldSweepingPros.org or contact Kidwell-Ross at director@ worldsweepingpros.org.
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PCTC
Effectively Communicating the Value of Sealcoating to Customers Homeowners and property managers balance several priorities when it comes to maintaining their assets. However, pavement coating may not make the top of their to-do lists, as the average person lacks in-depth knowledge about the value of treatment. Contractors realize the importance of filling this education gap in order to resonate with clients and drive additional business. That’s why the Pavement Coatings Technology Council (PCTC) is dedicated to helping contractors convey the benefits of sealcoating to customers. We recommend an approach that communicates the impact on expenses and sustainability and demonstrates benefits in a way that connects with customers. Showcase Long-Term Benefits Customers often look for money-saving solutions, but may struggle to think long-term.
Contractors can overcome this by sharing examples that showcase the overall return-oninvestment that sealcoating provides. For example, a comparison of sealed vs. unsealed pavement on the Be Informed. Seal Success. portal of PCTC’s website reveals that homeowners could save $8,000 on an 18-foot x 30-foot driveway through a regularly-scheduled sealcoating program. Consumers are also increasingly interested in sustainable practices. However, those who do not treat their surfaces will likely have to repave after 15 years of ownership. Property owners may be unaware that this process consumes countless resources during the removal of old pavement and the manufacture and installation of new pavement. Breaking down these cost and sustainability ramifications can make a significant difference in a client’s final decision.
CREATE MEMORABLE ANALOGIES Sealcoating is a foreign concept to many, and customers may not consider the effects outdoor elements have on exposed pavement. Contractors can convey the importance of protecting asphalt through applicable comparisons. The PCTC likens sealcoating to paint protecting wood siding on a house. Contractors could also compare pavement coating to the finish on a stained surface, like a dining room table, that protects the table from deterioration. Analogies show the significance of pavement preservation by connecting with the average person, and therefore demonstrate value to indecisive customers. Contractors can help customers make informed decisions by following the tips above.
For more about PCTC visit www.pavementcouncil.org.
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Contractor Snapshot
Allan Heydorn, Editor
Infrared-only Start-up Thrives Puddles ’n’ Potholes proves what’s in a name matters FOR 30 YEARS Marty and Johanna Pfenninger ran a full-service commercial and residential paving company, and for 30 years they would get the same phone calls. “People called and said they really liked their driveway but that it had puddles here or there after it rained,” Johanna says. “They didn’t want to repave their driveway for something like that, they wanted repair. And the same is true of paving contractors. It drives pavers crazy because puddles are the first thing people can see even if the rest of the driveway is perfect. “So when people would call we’d ask them, ‘What’s your problem?’ The answer was always ‘puddles’ or ‘potholes’.” In 2016 the Pfenningers decided it was time to semiretire. They still wanted a business, smaller with less work and less stress, so they sold the equipment from their 12-person company and started Puddles ‘n’ Potholes, Stockton, NJ. “Being a full-service paving company we knew there were always the little repair jobs that nobody wants to do. So we figured that was a great niche for us and we figured it was perfect for semi-retirement,” Marty says. And Puddles ‘n’ Potholes has taken off better than the Pfenningers expected. “We think it’s the name,” Johanna says. “The name just came to us because that’s what we do.”
Infrared Only And they tackle the niche in a unique way: Puddles ‘n’ Potholes might be the only company in the U.S. that repairs pavement using only infrared equipment – it’s the only equipment they own. They run a trailer-mounted KM International infrared unit, a KM International recycler and hot box on a dump truck, and a Kasi infrared machine and a hot box on a service truck. “When we had the paving company we had our own infrared machines to do repairs on our own paving work, but we never made much money doing infrared repair,” Marty says. “We just used it for ourselves to make our work better.” Marty says 70% of Puddles ‘n’ Potholes’ work is for homeowners and 30% is for commercial pavers. They perform small crack repairs, level depressed areas near garages, repair birdbaths, fix potholes, and have recently begun constructing overlays on small townhouse driveways – and all using only infrared machines. “We can fix all of that pretty efficiently,” Marty says. “People have learned that it’s a lot less expensive for us to come in and repair a driveway than it is for a big paving company to come in and do it – if they can even find a big company to come in and do a small job.”
Marketing the Start-up Johanna says that having been in the paving business for 30
years they relied on their reputation to start Puddles ‘n’ Potholes and “had quite a customer base already and people trust us.” They used directmail marketing, social media, Marty and Johan and Facebook Puddles ‘n na Pfenninger, ’ Potholes ads to get the word out, and they also ran ads in local newspapers. “We just replaced the ads we used for the paving company He also makes clear when with the ads for Puddles ‘n’ infrared is not the process they Potholes. We switched the should use. name but kept the same spots “I tell them we can use it on in the paper from the old to transverse cracks if they want the new ads,” she says, adding but those cracks are going to that they make it a point to come back. And if a driveway demonstrate to prospects that is too bad I’ll tell them it’s too they are neighbors. bad, that they should put their “We always show ourselves money toward a new driveway. to be in the neighborhood; They appreciate that. It’s better we’re your neighbor,” she says. to be up front with them that’s “We want people to know that for sure.” we face the same trials and That approach, Johanna tribulations they face.” says, gets them so many referrals they almost don’t need Teaching Infrared to advertise. She says Puddles Puddles ‘n’ Potholes has been ‘n’ Potholes now does 10-15 successful in the residential jobs a week, which is more market because Marty knows than the semi-retirement they’d how to explain the infrared planned. process. “The business is really “We take the time to explain developing,” Marty says. “We what infrared is and people started it with one thing in mind have really embraced it,” Marty – to give us a little something says. “I tell them it’s like a weld, to do in semi-retirement -- and that it’s like you’re welding old it starts taking off. It’s very asphalt to new asphalt and they gratifying that it’s a hit – at the seem to understand that pretty same time then you have to well.” keep up with it.”
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PAVEMENT Published by AC Business Media.
201 N. Main Street | Fort Atkinson, WI 53538 800.538-5544 • www.ACBusinessMedia.com www.ForConstructionPros.com/Pavement Editorial Office: Allan Heydorn, 2339 Stratford, Westchester, IL 60154 (708) 531-1612 | Fax: (708) 531-1613 | aheydorn@ACBusinessMedia.com PUBLICATION STAFF: Publisher: Amy Schwandt Editor/Conference Manager: Allan Heydorn Art Director: April Van Etten Ad Production Manager: Patti Brown Sr. Audience Development Manager: Wendy Chady Audience Development Manager: Angela Franks ADVERTISING SALES: (800) 538-5544 Tom Lutzke, Eric Servais, Sean Dunphy, Amy Schwandt, Erica Finger, Denise Singsime, Kris Flitcroft FORCONSTRUCTIONPROS.COM WEBSITE: Digital Operations Manager: Nick Raether Digital Sales Manager: Monique Terrazas Editor: Larry Stewart Managing Editor: Kimberly Hegeman CHANGE OF ADDRESS & SUBSCRIPTIONS PO Box 3257, Northbrook, IL 60065-3257, Phone: (877) 201-3915 Fax: 847-291-4816 • circ.pavement@omeda.com REPRINTS Denise Singsime at (800) 538-5544 ext. 1245 dsingsime@ACBusinessMedia.com. LIST RENTAL Jeff Moriarty, SVP, Business & Media Solutions, Infogroup Phone: (518) 339-4511 • Email: jeff.moriarty@infogroup.com AC BUSINESS MEDIA INC.: CEO: Barry Lovette CFO: JoAnn Breuchel Editorial Director: Greg Udelhofen
Index Advertiser Index
PAGE
1-800-Pavement
Belly Band
B & E Seal Coat Products Inc.
36
Carlson Paving Products Inc.
67
Cimline Pavement Maintenance Group
6
Crafco Inc.
15, 41
Deery Brand
63
Dispensing Technology Corp.
30, 36
Dynapc Fayat Group
9
EZ-Liner
30
Gem-Seal Pavement Products
2
Go I Pave
14
GuardTop
33
HOG Technologies
25
Keystone
31
Keystone Engineering
36
K-M International
23
LaserLine Manufacturing Inc.
32
Laser Point Lasers
34
LeeBoy
11
Maintenance Inc.
34
M-B Companies Inc.
34
Mesabi Asphalt Tools
32
MRL Equipment Company Inc.
37
Neal a Division of Blastcrete Equipment
21
Neyra
35
N. I. Wilson Mfg. Co. Inc.
32
PRO Cru
61
Seal-Rite
5
SealMaster
68
Star Inc.
29
Vance Brothers
43
Weiler
13
Wirtgen America Inc.
7
ADVISORY BOARD: ACI Asphalt Contractors Inc., Maple Grove, MN: Jim Bebo Asphalt Contractors Inc., Union Grove, WI: Robert Kordus Asphalt Restoration Technology Systems, Orlando, FL: Connie Lorenz Brahney Paving, Hillsborough, NJ: Steven Brahney Clean Sweep Inc., Chattanooga, TN, Pete Phillips Custom Maintenance Services, Shippensburg, PA: Michael Nawa Eosso Brothers Paving; Hazlet, NJ: Tom Eosso Pacific Sweeping, San Marcos, CA: Lee Miller Parking Lot Maintenance, Lake St. Louis, MO: Todd Bruening Petra Paving, Hampstead, NH: Chris Tammany Pioneer Paving, Albuquerque, NM: Don Rooney Robert Liles Parking Lot Service, Tyler, TX: Robert Liles Roberts Traffic, Hollywood, FL: Lisa Birchfield Roccie’s Asphalt Paving, Stamford, CT: Vincent Engongoro Show Striping Inc. (SSI), Wisconsin Dells, WI: Amber Showalter T&N Asphalt Services, Salt Lake City, UT: Nick Howell The Rabine Group, Schaumburg, IL: Gary Rabine Young Sealcoating Inc, Lynchburg, VA: Steve Young ASSOCIATION REPRESENTATIVES: Pavement Coatings Technology Council: Anne LeHuray, Executive Director
Get fast, relevant product information in the Buyers Guide at
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Tailgate Talk | Brad Humphrey
7
Steps to a Successful First Day
ONCE A NEW employee is hired and placed on a crew, nothing is more critical than how the foreman or crew leader handles the new worker on their first day. The effort made, and the support provided, can send the new employee home with no intention of coming back -- or can reinforce to the worker that they have made the best decision possible about accepting the new job. Here are seven actions a foreman or crew leader should take on that new employee’s first day – both to make the employee more comfortable and to give the leader a chance to begin the assessment process. SHAKE HANDS & INTRODUCE THE CREW. Shaking hands hints at the new employee’s self-confidence, provides insights (based on grip strength) if the worker has the physical strength to perform some of the on-thejob tasks, and can signal the employee’s level of enthusiasm (which can be reinforced -- or not -- by their eye contact and response to the handshake. Then introduce the new employee to the rest of the crew, making sure to introduce each member by name. While the new employee is not expected to memorize the names each employee, this effort serves as an “ice breaker,” allowing the crew to feel more comfortable with the new face. MATCH THE NEW EMPLOYEE WITH ANOTHER CREW MEMBER.
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For a successful first impression and a quick study of the new employee, match the new worker with one of your existing crew members. Matching new employees with a current worker will reduce some of their anxiousness, allowing them to relax so they can focus more on what they see, hear, and learn. Matching a crew member with the new employee also provides some field assessment from a trusted worker. Over the course of a few days, the veteran worker will be able to discern the new employee’s work habits and describe the new employee’s attitude, work strengths, work attitudes etc. ASSIGN EASIER BUT NECESSARY TASKS. If the new employee comes to you as an experienced worker, you might be able to start them out on more complex work. But if you have a new employee with little to no construction experience, especially in your area of specialty, then introduce them to some of the easier, more fundamental tasks. As much as you want that new employee to fill a huge need in the crew, you will only frustrate them if they are pressed too soon to perform difficult tasks; you’ll risk either a “No Show” the next day or your crew’s anger – or both. Make the new employee’s first day as simple or as easy as possible. After all, if they cannot learn, or if they struggle to perform even the simplest
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of tasks, how difficult will it be to push them to learn more complicated tasks and processes? CHECK ON THE NEW EMPLOYEE AT “10 & 2”. That’s 10:00 a.m. and 2:00 p.m.! Most new workers will be glad to have an early morning visit from their Foreman – just ask how they’re doing, if they have any questions, and if they’re ready for another task! Use the afternoon check-in to ask what they have learned on their first day. Answers to such simple questions can tell you loads on how they have embraced and internalized their work day. TAKE THE TIME TO EXPLAIN THE “WHY". It’s easy to teach a worker the “What” or even the “How” to do something. But explaining “Why we do it this way” begins the process of education and defines how our company is different from others. You will have to repeat the “Why” periodically but sharing it early, here, begins the process of letting the new employee know that there is a real and significant purpose to what they will be doing today, this week -- and maybe for their career. ASK THE NEWWORKER WHAT THEY LEARNED ON THEIR FIRST DAY. Ask them not only how they thought their first day went, but what did they actually learn. Make sure to give them a heads-up early in the day so they can have time to prepare their message. The new worker who is enthused and wants
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to work for your company will respond positively to this question. The worker who sort of “hems and haws” may not be nearly so interested in working for your company. TELL THE NEW WORKER WHAT THEY DID RIGHT & WELL BEFORE LEAVING FOR THE DAY. For our new employee, simply telling them how you observed their work effort can ignite a flame of enthusiasm in the employee. Be sure to do this just before they leave for the night. It will be a positive send off, one that they will transfer to those waiting for them at home. With the number of workers looking to construction as a career choice dropping, contractors must pull out all of the stops to give a new worker every excuse possible to stay with their new contractor. Incorporating these seven steps into your hiring and onboarding process will help your new hire become more comfortable more quickly and will enable you to more easily evaluate whether this new hire could be a longterm employee.
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Brad Humphrey is president of Pinnacle Development Group, a consulting firm that specializes in the construction industry. Brad’s newest publication, “A Foreman’s Playbook for Leading the New Employee,” is available through Amazon.com and through his website, www.pinnacledg.com.
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ForConstructionPros.com/10072346
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ForConstructionPros.com/10074572
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