Pavement Maintenance & Reconstruction June/July 2020 by ForConstructionPros.com

Overcoming “Time Wastes” on the Job

THE OFFICIAL MAGAZINE OF NATIONAL PAVEMENT EXPO

MAINTENANCE & RECONSTRUCTION JUNE/JULY 2020

Improve

HOW TO MANAGE

COMMERCIAL SNOW REMOVAL

ASPHALT DENSITY

by Adding a Snow Pusher

2020 TOP CONTRACTOR SURVEY RESULTS CATEGORIES TOP 50

TOP 50

SEALCOATING

STRIPING

› 20

› 26

TOP 50

PAVING

PAVEMENT REPAIR

› 14

HOW TO MAXIMIZE FORGIVENESS OF YOUR

PPP LOAN

TOP 50

› 30

Entry Open for

2021 Pavement Awards!

› › › www.ForConstructionPros.com/Pavement

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What’s Inside June/July 2020

2020 TOP CONTRACTOR SURVEY RESULTS

FEATURES 12

2020 Top Contractors Overview Sales volumes take a huge leap as large contractors join the list.

The 2020 Paving 50

The 2020 Sealcoating 50

44 Contractors’ Choice:

Snow Removal

How to add a snow pusher for commercial snow removal operations.

List demonstrates stability, margins improve for qualifying contractors.

Sealcoating-only sales continue to demonstrate growth, margins continue to improve.

The 2020 Striping 50

The 2020 Pavement Repair 50

Larger striping-focused companies join the list, driving sales numbers and margins higher.

Repair-only sales grow in dollars but decline as a percentage of contractor work.

ON THE COVER Design by April Van Etten, Art Director, AC Business Media, 201 N. Main Street, Fort Atkinson, WI 53538; phone 920-542-1250.

Vol. 33, No. 5 June/July 2020

Published and copyrighted 2019 by AC Business Media. 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, 201 N. Main St., Fifth Floor, 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. PAVEMENT MAINTENANCE & RECONSTRUCTION is proudly supported by these associations:

www.ForConstructionPros.com/Pavement • Pavement Maintenance & Reconstruction • June/July 2020

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What’s Inside June/July 2020

DEPARTMENTS 6

Editorial Now Is Not the Time to Go Dark.

Hot Mix The Latest News in the Industry

Just In Select New Products and Upgrades

NPE Buzz Reinvigorating the Speaker Rotation at NPE.

Pavement Profit Center

On the Job

How to Manage Asphalt Density. 50

From the Owner’s Desk The Value of Perceived Value – and How to Improve Yours.

Classified Ads

Your Business Matters Training is the Key to Technology Adoption; How to Maximize Forgiveness of Your PPP Loan.

Technology Update Push-to-Talk Technology Gaining Ground in Construction.

NAPSA Report Certified Sweeping Company 2.0 Launched!

WSA Update What’s Next After COVID?

PCTC Dispatch COVID-19 Resources Available to Navigate the “New Normal.”

Contractor Snapshot Pennsylvania’s Sweep A Lot Fills Local Service Gap.

Index

Tailgate Talk

Get fast, relevant product information in the Buyers Guide at ForConstructionPros.com

Shortening “Time Wastes” on the Job.

June/July 2020 • Pavement Maintenance & Reconstruction • www.ForConstructionPros.com/Pavement

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Editorial

Allan Heydorn, Editor

Now Is Not the Time to Go Dark ALMOST ALL THE many contractors we reached out to through April and into midMay were cautiously content about the state of their business so far in 2020. A rare few weren’t working yet, and a few did indicate they are running what one termed “skeletal crews,” working in the field or around the yard. But most are working. Yes, some projects – especially large ones – have been put on hold. Yes, overlay and new construction paving seems to have taken the brunt of the

impact. Yes, residential work has slowed significantly. But this is not the time for your company to go dark. Marketing and just plain old communication efforts are essential to the growth and possibly the survival of your business. Direct-mail likely won’t reach customers working from home, so utilize social media to the fullest. Let your customers know you are there and ready to work. Let them know of changes you’ve implemented to make work

safer for your employees and customers. Let them know you can develop and provide accurate bids from your office. Let them know you’re available for a video chat, just to check in and to see how their business is doing. And don’t forget the phone. You’ve spent years or decades developing your business. You took risks, made and executed blue sky plans, hired and supported workers and their families, been a good neighbor to local charities, and provided

a boost to the local (and national) economy. Now is not the time to become complacent – or worse, scared. Now is the time to double down on what you’ve done over the years, on what you can do now, and on what you plan on doing in the future. Now is the time to shine a light on your business.

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June/July 2020 • Pavement Maintenance & Reconstruction • www.ForConstructionPros.com/Pavement

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Hot Mix

NAPA Offers "Pave It Black" Podcast The National Asphalt Pavement Association (NAPA) now offers a biweekly podcast, “Pave It Black,” highlighting today’s asphalt pavement industry. Through discussion and interviews with industry leaders, hosts Brett Williams, NAPA Director of Engineering and Technical Services, and Richard Willis, NAPA Vice President for Engineering, Research, & Technology, explore challenges, opportunities, and innovations reshaping the ways America’s roads and highways are built. Asphalt Pavement magazine editor Monica Dutcher produces the podcast. “Podcasting is a great way to open a window on the industry and give a platform to the voices of the people who build roads

and further innovation in road building,” Williams said. “They are at the plants, on job sites, and involved in research and development. They are all focused on building the best asphalt pavements possible, and ‘Pave It Black’ lets us help people understand what it takes to get that job done.” The first season will focus on how asphalt pavement mix producers are putting innovation to use, with interviews with NAPA members, researchers, and suppliers. Episodes will also examine how the asphalt pavement industry is addressing the workforce issues affecting all sectors of construction. “When people think about jobs in road building, often they focus only on the person holding a flag at the start of a work

Entries Open for 2021 Pavement Awards It’s time – for the seventh year in a row – to begin thinking about documenting your best or most-challenging jobs so you can enter them to receive a 2021 Pavement Award. Presented by Pavement Maintenance & Reconstruction, the annual awards provide industry-wide recognition for contractors involved in all aspects of pavement maintenance. Job-related awards recognize contractors and their crews for their 2020 efforts, and entries are open for: • Seal & Stripe: Small Job • Seal & Stripe: Large Job • Paving: Non-Parking Lot • Paving: Parking Lot • Good Neighbor Award (charitable efforts) • Best Marketing Video • Best of the Web • Cutting-Edge Sweeper All entries must be made online at ForConstructionPros.com/ PavementAwards - and entering is easy. All that’s required is a brief description of the job and its challenges, including an explanation of why the job should be recognized. Then upload two high-resolution photos and you’re done! So as we get deeper into the season, keep the 2021 Pavement Awards in mind. Note particularly good work and tough challenges, take photos – and enter them in the appropriate category. And the website is already “live” so you can enter throughout the summer as jobs are completed. Actual deadline is November 1, but you don’t have to wait... And you can enter in multiple categories – but note: Entries are limited to one job per company per category. Pavement’s Advisory Board selects the winning entries, and winners will be announced at the 2021 National Pavement Expo, Jan. 20-23, 2021 in Nashville, TN, and in the February 2021 issue of Pavement.

zone,” Willis said. “Flaggers are an important part of every roadway work zone, but the truth is the asphalt pavement industry offers a wide range of skilled jobs with clear paths for advancement.” Ten episodes are planned for the first season of “Pave It Black” with new episodes airing every other Monday. Listeners can subscribe through iTunes, Google Podcast, SoundCloud, Spotify, Stitcher, and TuneIn. Links can be found at www. AsphaltPavement.org/Podcast

Bergkamp Offers Pothole Patcher Rental Program Bergkamp Inc., Salina, KS, recently announced its Pothole Patcher Rental Program, which allows public works departments to quickly bring a FP5 Flameless Pothole Patcher or an SP5 Spray Injection Pothole Patcher into their fleets. With immediate availability of late-model, low-hour equipment and competitive rental rates, agencies are not required to wait for capital expense budgets and approvals to begin providing permanent pothole patches in their areas. Bergkamp reports it is the only patcher manufacturer in the United States to offer such a rental program. “The new Pothole Patcher Rental Program offers rental terms to fit agencies’ needs, including long- and short-term rentals and a rental purchase option,” said Todd Bigler, government sales manager for Bergkamp. “It’s a great way for agencies to gain a late-model pothole patching unit, without having to go through the monthslong purchase cycle – especially this time of year, when they are working hard to catch up on winter’s freeze-thaw damage to their streets and roads.”

8 June/July 2020 • Pavement Maintenance & Reconstruction • www.ForConstructionPros.com/Pavement

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SAVE THE DATE Join National Pavement Expo as we return to the Music City Center in Nashville, TN January 20-23, 2021. NPE brings vendors and contractors together who make their living from asphalt and concrete paving, sealcoating, striping, sweeping, crack repair, pavement repair, and snow removal to network with other paving professionals. Donâ&#x20AC;&#x2122;t miss the perfect opportunity to check out the latest products and make valuable connections through fun events and networking opportunities at National Pavement Expo.

Stay connected!

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CONFERENCE: JANUARY 20-23, 2021 I EXPO: JANUARY 20-22, 2021 MUSIC CITY CENTER I NASHVILLE, TN nationalpavementexpo.com

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Just In 1

Get fast, relevant product information in the Buyers Guide at ForConstructionPros.com 1

DFP Series Forward Plate Compactors

MIRA-1 Infrared Heating System

SG7 SurfacePro Edge Grinder

Dynapac North America The DFP plate compactors are powered by either a Honda petrol or a Hatz diesel engine and are ideal for compaction in tight areas. • Models include DFP6, DFP7, DFP7AX, DFP8, DFP9, DFP10D, DFP11 and DFP12D • Add-on wheels, mats and a water tank adds to the versatility of these machines • Open style construction of the heavy-duty base reduces the maintenance cost as the stones don’t stick, wear and tear of parts are minimized

Trade Industry Company AB MIRA-1 is a two-unit foldable infrared heating system for repair of potholes, failed pavement joints, catch basins, dips in asphalt, leveling and removal of asphalt from different surfaces. • Propane fired • Heats pavement in less than 10 minutes • Two 70,000 BTU, high-intensity infrared heaters • 3/4-in. hoses • 8 heat-resistant wheels • Ceramic fiber heater surface • Handle for hand pushing the unit • Available in orange, green and red • Weight: 214 lb.

General Equipment The SG7 SurfacePro edge grinder can accommodate a wide variety of surface preparation applications, such as leveling concrete and asphalt. • Intended for smaller areas • Heavy-gauge steel frame is ergonomically designed to allow the operator to work in a fully upright position • Reduces the potential for lower back pain, strained knees or other occupational-related health issues • 7-in. diamond cup wheel • 27 lbs., detachable handle • Anti-Vibe caster wheels and a 1.5-in.-diameter dust connection port and hose

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10 June/July 2020 • PAVEMENT • www.ForConstructionPros.com/Pavement

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NPE Buzz

Reinvigorating the Speaker Rotation at NPE NPE’s call for papers and conference advisory board aim to reinvigorate conference program MANY LONG-TIME National Pavement Expo (NPE) attendees noticed a difference earlier this year when the show convened for its 35th anniversary gathering in Nashville. The difference was by design, and Thomas Eosso, advisory board member for the show, reveals that it took a while for attendees to warm up to the changes. “At first there was negativity,” admits Eosso, a frequent NPE presenter and owner of Eosso Brothers Paving, Farmingdale, NJ. “People don't like change. But once we got a day or two into the show and the classes, people really started liking it. When you make change, sometimes it doesn't work, but the show earlier this year went really well.” Some of the initial push back stemmed from the lack of familiar faces. “There were speakers who had been doing the show for more than 20 years who did not attend the 2020 show because we made a switch in trying to re-energize the speakers and get industry professionals doing the classes," Eosso says. Taking the lead from Russ Turner, NPE’s associate show director, organizers issued their first-ever call for presentations to get new blood to the 2020 show. Meanwhile, the educational advisory board met in Chicago for intense discussions about what attendees would really want to hear. "It’s a responsibility that all board members take seriously, because they know the time, effort, and expense it takes to attend. “The people in the audience have spent a lot of money to be at

the show, and they want to come home with good information," Eosso says. Highly focused, relevant, and specific are all traits for the “new breed” of speaker. Attendees don’t need to hear generalities, and now more than ever NPE is attracting the “winners” in the industry who are willing to share detailed examples. “Over the past three years, particularly with social media, there are some people excelling at a high level,” Eosso says. “They know about what we can now do with technology, such as iPads. Everything is at your fingertips and it is speeding things up. We’re getting the top guys in front of our audience talking about how they are making things happen in their area. We want the best of the best.” Saying “no” to speaker proposals is a difficult necessity, particularly when it comes to those who are not tech savvy. Others may be affiliated with the industry, but aren’t close enough to relate to the specialized NPE audience. Eosso puts it this way: “We're trying to

Tom Eosso, co-owner of Eosso Brothers Paving, Farmingdale, NJ, is a National Pavement Expo advisory board member and NPE presenter, who says changes in the conference program have benefited attendees.

avoid speakers who don’t ‘get it.’ We are a seasonal industry, for example, and I've seen speakers who don't understand that many of us start in April and stop in November, and we must make every day count. “We want winners in the industry up in front—people who started with nothing and built their names and reputations—those are the people we want to see,” Eosso says. “People on the board are industry people and they know that.” Like the rest of the country, Eosso has expanded his normal job concerns to include the COVID-19 situation. And at the Jan. 20-23, 2021 show in Nashville, he too wonders; what will it look like? Eosso can predict the mind-set of attendees, because he too has faced anything but business as usual.

www.ForConstructionPros.com/Pavement • Pavement Maintenance & Reconstruction • June/July 2020 11

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Allan Heydorn, Editor

2020

Top Contractors Overview

Sales volumes take a huge leap as large contractors join the lists

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Overall Sales Dollars

all the work contractors qualifying for lists increased: • Paving 50: $1.611 billion total sales compared to $1.046 billion in 2019 • Striping 50: $1.536 billion total sales compared to $1.070 billion in 2019 • Sealcoating 50: $1.271 billion total sales compared to $977 million in 2019 • Pavement Repair 50: $1.360 billion total sales compared to $981 million in 2019 And there was an increase in segment-only sales for three of the four segments as well. • Paving-only sales rose to 832,921,050 from $493 million in 2019 • Sealcoating-only sales rose to $161,001,568 from $137 million in 2019

• Pavement Repair-only sales rose to $217,721,018 from $209 million in 2019 The only list where segment-only sales decline was the Striping 50, which saw a drop from $215 million last year to more than $204 million this year. Surely some of this was growth in the industry, good economy and contractors having good years, but just as certainly part of the increase in sales resulted from large contractors participating in the survey for the first time. Clearly the new companies joining the list are paving-focused operations. Their impact on the overall sales for the Paving 50 and paving-only sales is substantial. And it’s certainly reasonable they have an impact on overall sales

June/July 2020 • Pavement Maintenance & Reconstruction • www.ForConstructionPros.com/Pavement

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THE 2020 TOP CONTRACTOR results took a huge – and we mean huge – leap forward in sales volume as a number of large contractors saw fit to participate in the survey. The impact is that overall sales volume of all lists jumped significantly – so significantly, in fact, that year-to-year comparisons will be very difficult. Segment-only sales rose as well, especially in the Paving 50 list. Sealcoating 50 and Pavement Repair 50 segment sales rose, but Striping 50 sales declined. Here’s an overview of the Paving 50, Sealcoating 50, Striping 50 and Pavement Repair 50 for 2020 – along with some industry insights resulting from the information these companies provide.

We start with overall sales dollars of the qualifying contractors, which reached more than $1.316 billion. That compares to $1.055 billion last year and to $910 million in 2017. That overall sales number represents the combined total of only paving-only, sealcoating-only, striping-only, and repair-only sales – in other words the sales figures used to compile our four lists. No sales dollars are duplicated, and any sales relegated to the “Other” sales category also are not included. Why the large jump of more than $260 million dollars? A number of large contractors – specifically pavingfocused contractors – participated this year, which had a significant impact not only on overall sales volume but on paving sales volume in particular. All lists saw an increase in overall sales – in other words the total sales of

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and segment-only sales for sealcoating and pavement repair, too. Many contractors provide all those servers. What’s interesting is the impact the paving-focused large companies had on the Striping 50. Note that overall sales for the Striping 50 jumped almost $500,000 – yet the striping-only sales was the only segment that experienced a decline. We can speculate on the reason for that: As is evident, paving-focused operations exhibit high overall sales volume – but the likelihood exists that they don’t do much of their own striping. So the overall volume doesn’t translate to the segmentonly volume. In fact, only 39 of the Paving 50 generate revenue from striping – and 14 of those contractors generate less than 5% of revenue from striping.

The “Average” Top 50 Contractor Taking into account all the companies participating in this year’s survey, the average contractor generates just over $22 million in annual sales ($14 million last year) from a diversified mix of paving and pavement maintenance work. The average revenue by segment breaks down this way: • Paving, 33% (33% last year) • Sealcoating, 21% (24%) • Striping 18% (20%) • Repair, 14% (12%) • Sweeping, 3% (3%) • Other, 11% (8%) Concrete work is the most-common service cited in the “Other” category, which also includes surface treatments, hot mix asphalt production, excavation, drainage, traffic control or sports courts. The average company works 64% of its time on parking lots, 19% on streets, 12% on driveways, 4% on highways and 1% “Other” (paths, sports courts). As for the customers this average contractor works for: • 57% are commercial clients • 18% are multi-family properties • 15% are municipal customers • 9% are single-family homeowners • 1% is “other” (a mix of park district, cemeteries, golf courses etc.) The average contractor generates

A Note About Our Approach to These Lists As close followers might have seen, the lists have fluctuated from 50 to 75 contractors each since 2013 – the fluctuations a result of the number of contractors participating in the survey. In the past we adjusted our reporting of results based on those fluctuations, so some years we’d report results for 75 companies and some years for 50 companies. We’ve stopped that. To make reporting easier and comparisons more valid we’re going to hold to 50 companies per list – at least until survey participation increases substantially and regularly. This year’s reporting will compare the 2020 figures with 2019 and 2017 – the most-recent three years we limited lists to 50 contractors.

21% of revenue (22% last year) from work as a subcontractor.

Other Findings for 2019 Overall Profit Margins. We’ll report profit margins for each industry segment in the introduction to each segment in the following pages, but the chart on this page provides a look at the overall range of profit margins for all companies responding to the survey, whether they qualified for a list or not. As the chart shows, there continues to be a broad range of profit margins with which contractors are working. This holds true for each of the industry segments as well. But what is clear is that the 2020 profit margin results reinforce the trend that margins continue to move in the right direction. • 1% of respondents indicated they earn less than 3% margin (the same as last year and 2017) • 7% reported margins in the 3-5% range (3% last year; 6% in 2017) • 16% report margins in the 5-10% range (17% last year; 16% in 2017) • 32% report margins in the 10-15%

range (33% last year; 33% in 2017) • 45% report margins greater than 15% (46% last year; 45% in 2017) Replacement Value of Equipment. While the pavement maintenance business has been viewed as an industry with a low-cost barrier to entry, particularly in the sealcoating and striping segments, the contractors that make up these lists have significant investments in their fleets. Survey results indicate that: • 6% could replace their fleet for less than $250,000 • 11% for between $250,000-$500,000 • 20% for between $500,000-$1 million • 15% for between $1 million-$2 million • 48% for more than $2 million Number of Jobs. Who knows what next year’s survey results will show, given the COVID-19 impact on the economy, but last year contractors were busy folks: 67% completed more than 200 jobs, with 45% completing more than 400 jobs. More than one-quarter (26%) perform fewer than 150 jobs (again, larger contractor might influence this as well as they might be taking on larger, longer-term projects). • 10% perform less than 100 jobs • 16% perform between 101-150 jobs • 7% perform between 151-200 jobs • 8% perform 201-300 jobs • 14% perform 301-400 jobs • 45% perform more than 400 jobs Number of Customers. The number of customers contractors perform those job for indicates they often obtain multiple projects from the same customer – a good sign for those pursuing relationship-building as a means of growth. A little under half (49%) work for fewer than 200 customers, while 27% work for more than 400 customers. • 27% work for fewer than 100 customers • 14% work for 101-150 customers • 8% work for 151-200 customers • 13% work for 201-300 customers • 11% work for 301-400 customers • 27% work for more than 400 customers

Number-crunching assistant, Nick Raether, AC Business Media Digital Operations Manager.

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PAVING 50 Sponsored by

2020 Paving 50

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Sales volume jumps wildly as larger contractors join the list THE 2020 PAVING 50 contractors generated $832,921,050 in paving-only sales, up substantially from the $493 million in paving-only sales last year, which was down slightly from the $503 million in paving-only sales in 2017. As noted in the Top Contractor overview, the huge increase reflects the welcome addition to some of the industry’s larger companies to the lists. Their addition, however, makes year-toyear sales volume comparisons difficult, as sales volume blew past historical benchmarks. But with or without the addition of large companies, paving-only sales continue to dwarf sales of other industry segments, with pavement repair-only sales at $217 million ($209 million last year), followed by striping-only sales at $204 million ($215 million last year), and by sealcoating-only sales at $160 million ($137 million last year).

Total Sales for Paving 50 Total sales for all the work the 2020 Paving 50 did was $1.611 billion. (Total sales of the 2019 Paving 50 was $1.046 billion, up from $962 million in 2017.) Again, while some increase would probably have happened anyway, the jump of more than $500 million reflects the addition of large paving companies to the list. The 2020 paving-only sales represent 51% of total list sales – up from 47% in 2019 and down from 52% in 2017. This is more than triple the segment-only sales of any of the other segment lists. The remaining 49% of sales come from a broad mix of other pavement maintenance services: • 44 companies perform sealcoating work

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• 39 companies perform striping (though 14 of those companies generate less than 5% of sales from striping) • 43 companies perform pavement repair work The paving list results certainly reinforce the diversity within the industry – in fact, none of the 50 companies on the list performs only paving, though most of the companies on the list generate the lion’s share of their work from paving.

Higher Profit Margins As the chart on this page shows, contractor profit margins within the 2020 Paving 50 continue to fluctuate, with the most dramatic changes coming in the 5-10% and 10-15% ranges. Unfortunately, while those reporting in the

largest range of profit margin remained steady, there was a significant decline in margins for more than a quarter of the Paving 50 contractors. • The percentage of Paving 50 contractors reporting margins greater than 15% remained steady at 38%, gaining 1% from last year • Contractors reporting margins of 10-15% declined dramatically to 28% from 41% last year • That decline was picked up by contractors in the 5-10% range, which rose to 26% from 16% last year • 6% of contractors reported margins in the 3-5% range, up from 4% last year • 2% reported margins of less than 3%, the same as last year As the right-leaning chart shows, this reverses a trend of contractors

June/July 2020 • Pavement Maintenance & Reconstruction • www.ForConstructionPros.com/Pavement

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PAVING 50 reporting, for the most part, higher margins since at least 2016, though the 5-10% range shows more of an up-anddown movement than any of the other margin ranges.

Where the Paving 50 Work As in the past, there’s no question that the 2020 Paving 50 emphasize off-road work, with 49 companies (98%) reporting sales from parking lots (none reporting less than 5%) and 38 companies (76%) reporting sales from driveway work (including eight reporting less than 5%). Only two of the 50 companies report any significant amount of

Replacing the Paving 50s’ Equipment

highway work and only eight report any highway work at all. And 37 companies (74%) report sales from work on streets.

Not surprisingly, 33 of the Paving 50 companies reported it would cost more than $2 million to replace their equipment. Another 10 companies said it would cost between $1 and $2 million, while six companies reported it would cost between $500,000 and $1 million to replace their fleet. No companies reported in the $250,000-$500,000 range, while one company indicated they could replace their fleet for less than $250,000.

The Paving 50s’ Customers • 48 contractors work for commercial/ industrial customers • 45 contractors work for multi-family residential customers • 39 contractors work for municipal clients • 27 contractors work for single-family homeowners Despite the addition of significantly larger companies to the list, these figures remain consistent with past years.

Sealcoating

Striping

Sweeping

Pavement Repair

Other

Highways

Streets/Roads

Parking Lots

Driveways

Other

Commercial

Municipal

Multi-family

Single-family

Other

Customer Mix (%)

Paving

Where We Work (%)

Year in Business

Sales Composition (%)

A&A Paving - Roselle, IL

A.C. Moate Industries Inc. - Auburn, WA

100

ACI Asphalt & Concrete Inc. - Maple Grove, MN

ADC Paving - Louisville, KY

All County Paving - Delray Beach, FL

All Out Services LLC - Havertown, PA

American Asphalt Repair & Resurfacing Co., Inc. - Hayward, CA

ASAP Asphalt Sealing And Paving Co. - Meadow Lands, PA

Associated Paving Contractors Inc. - Warminster, PA

Atlantic Southern Paving and Sealcoating - Sunrise, FL

Bear Owen Paving Company Inc. - Peckville, PA

Brahney Paving / www.FIXASPHALT.com - Wall Twp., NJ

100

Brothers Paving & Concrete Corp. - Manassas, VA

C & R Asphalt LLC - Lexington, KY

Cardi Corporation - Warwick, RI

Cincinnati Asphalt Corporation - Cleves, OH

Daniel B. Krieg, Inc. - Harrisburg, PA

Dominion Paving & Sealing - Purcellville, VA

Sponsored by

June/July 2020 • Pavement Maintenance & Reconstruction • www.ForConstructionPros.com/Pavement

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PAVING 50 Sealcoating

Striping

Sweeping

Pavement Repair

Other

Highways

Streets/Roads

Parking Lots

Driveways

Other

Commercial

Municipal

Multi-family

Single-family

Other

Customer Mix (%)

Paving

Where We Work (%)

Year in Business

Sales Composition (%)

Erickson Asphalt Services Inc. - Princeton, MN

F. Allied Construction Co. - Clarkston, MI

Finley Asphalt & Concrete - Manassas, VA

Finnegan Paving Inc. - Glenview, IL

Flynn Paving Co. - Royal Oak, MI

Giant Development Inc. - Raleigh, NC

100

Harding Group - Indianapolis, IN

Intercounty Paving Co. - Carmel, NY

K&L Industries - Canby, OR

Kansas Asphalt Inc. - Bucyrus, KS

Luizzi Asphalt Services - Albany, NY

M&D Blacktop Co. - Grove City, OH

Maul Paving Inc. - Plainfield, IL

O’Leary Asphalt Inc - Ijamsville, MD

Prestige Paving Company - Corona, CA

Pro-Seal Asphalt Contractors - North Charleston, SC

Rabine Group - Schaumburg, IL

Rose Paving - Bridgeview, IL

100

Ruston Paving - Gainesville, VA

100

S&G Asphalt Service - Slatington, PA

SCG Paving Co - Batavia, IL

Stasi Brothers Asphalt - Westbury, NY

Sunland Asphalt & Construction Inc. - Phoenix, AZ

Synergy/AMS - South Beloit, IL

The Surface Masters Inc. - Marieta, GA

100

U.S. Pavement Services - Woburn, MA

United Paving Co. - Corona, CA

Valley Blacktopping Inc. - Eagan, MN

Wolf River Asphalt & Sealcoating Inc. - Shiocton, WI

Yeager Asphalt Inc. - Carrollton, MI

Sponsored by

M&M Asphalt Maintenance Inc., dba All County Paving Delray Beach, FL

Parker Line Striping Inc., dba National Pavement Dekalb Junction, NY

June/July 2020 • Pavement Maintenance & Reconstruction • www.ForConstructionPros.com/Pavement

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SEALCOATING 50 Sponsored by

2020 Sealcoating 50 Sealcoating-only sales and margins continue to grow SEALCOATING-ONLY SALES for the 2020 Sealcoating 50 totaled $161,001,568, compared to last year’s $137 million, which was a significant increase over the more than $112 million total of the 2017 list (50 companies). Just for historical purposes (and not for direct comparison), the sealcoatingonly sales totals for the last few years when the list included 75 companies was $171 million in 2018, $201 million in 2016, and $249 million in 2015. We have consistently noted that the highvolume years of 2015 and 2016 likely are the result of pent-up demand and that sealcoating-only totals are settling into a more “normal” level since then. This year’s total, which is amplified by the addition of several larger companies to the Sealcoating 50, support that contention. Sealcoating-only sales trailed all other industry segments (as they have each year of the survey), with pavingonly sales surpassing $832 million, striping-only sales reaching $204 million, pavement repair-only sales at $217 million, followed by sealcoatingonly sales at $161 million.

Total Sales for the Sealcoating 50 Total sales for all the work the 2020 Sealcoating 50 did was $1,271,173,438 &#822; up almost $300 million from the more than $977 million reported last year and the $885 million total Sealcoating 50 sales reported in 2017. Sealcoating-only sales represent 13% of total Sealcoating 50 sales, down from 14% last year but equal to the 13% of 2017. The remaining sales represent a broad mix of pavement maintenancerelated work, including:

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To ap an gr • 38 companies perform paving work • 45 companies perform striping work • 42 companies perform pavement repair work None of the 50 companies on the list performs only sealcoating (one generates 87% of sales from sealcoating) and only four of the companies generate 75% or more of sales from sealcoating.

Highest Profit Margins Continue Growth Despite the fact the sealcoating-only sales volume brings up the rear of the four industry segments, that doesn’t mean sealcoating has to be less profitable than the other segments. The good news is the highest margins continue to grow, while the smallest margins also show slight improvement.

• None of the contractors on the list reported margins of less than 3% • 6% report margins between 3-5% • 22% report margins of 5-10% • 26% report margins of 10-15% • 46% report margins of greater than 15%. Interestingly, the middle-margin ranges of 5-10% and 10-15% absorbed the greatest changes, with the 10-15% range declining 15% and the 5-10% range improving by 8%. As the chart indicates, this is a marked reversal of last year. We noted last year that 80% of the Sealcoating 50 reported margins of 10% or more (consistent with the 77% in 2017), but that has declined to 72% this year.

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Where the Sealcoating 50 Work Consistent with other years and with the sealcoating service, contractors on

June/July 2020 • Pavement Maintenance & Reconstruction • www.ForConstructionPros.com/Pavement

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PAVEMENT SEALERS

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SEALCOATING 50 the Sealcoating 50 emphasize off-road work, with all the Sealcoating 50 indicating they generate sales from parking lot work; 10% report they generate 100% of sales from parking lots (6% last year). Another 26% report 90% or more of sales from parking lots, and 62% report sales from driveway work; 72% report they work on streets; 12% report they work on highways.

The Sealcoating 50s’ Customers

Replacing the Sealcoating 50s’ Equipment

• 50 contractors work for commercial/ industrial customers • 47 contractors work for multi-family residential customers • 38 contractors work for municipal clients • 23 contractors work for single-family homeowners

Only three companies reported it would cost less than $500,000 to replace their equipment. Another 11 reported it would cost $500,000-$1 million to replace their fleet; 10 companies said it would cost $1-$2 million; and 25 companies reported it would cost more than $2 million to replace their equipment.

Sealcoating

Striping

Sweeping

Pavement Repair

Other

Highways

Streets/Roads

Parking Lots

Driveways

Other

Commercial

Municipal

Multi-family

Single-family

Other

Customer Mix (%)

Paving

Where We Work (%)

Year in Business

Sales Composition (%)

A&A Paving - Roselle, IL

A.C. Moate Industries Inc. - Auburn, WA

100

AAA Striping & Seal Coating Service - Edmonton, Canada

ACI Asphalt & Concrete Inc. - Maple Grove, MN

Affordable Striping & Sealing - Las Vegas, NV

All County Paving - Delray Beach, FL

All Out Services LLC - Havertown, PA

American Asphalt Repair & Resurfacing Co. - Hayward, CA

ASAP Asphalt Sealing And Paving Co. - Meadow Lands, PA

Asphalt Restoration Technology Systems Inc. - Orlando, FL

Associated Paving Contractors Inc. - Warminster, PA

Atlantic Southern Paving and Sealcoating - Sunrise, FL

Bear Owen Paving Company Inc. - Peckville, PA

Birmingham Sealcoat Inc. - Oxford, MI

Brahney Paving / www.FIXASPHALT.com - Wall Twp., NJ

100

Brothers Paving & Concrete Corp. - Manassas, VA

C & R Asphalt LLC - Lexington, KY

Cincinnati Asphalt Corp. - Cleves, OH

Constantine Paving & Sealing - Glastonbury, CT

Daniel B. Krieg Inc. - Harrisburg, PA

DH Striping Company - Oviedo, FL

Dominion Paving & Sealing - Purcellville, VA

Sponsored by

June/July 2020 • Pavement Maintenance & Reconstruction • www.ForConstructionPros.com/Pavement

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SEALCOATING 50 Sealcoating

Striping

Sweeping

Pavement Repair

Other

Highways

Streets/Roads

Parking Lots

Driveways

Other

Commercial

Municipal

Multi-family

Single-family

Other

Customer Mix (%)

Paving

Where We Work (%)

Year in Business

Sales Composition (%)

Erickson Asphalt Services Inc. - Princeton, MN

Finley Asphalt & Concrete - Manassas, VA

Harding Group - Indianapolis, IN

K&L Industries - Canby, OR

Kansas Asphalt Inc. - Bucyrus, KS

Lynne Services Inc. - Saint Augutine, FL

M&D Blacktop Co. - Grove City, OH

Maul Paving Inc. - Plainfield, IL

NextGen Great Sealcoating - Sciota, PA

O’Leary Asphalt Inc. - Ijamsville, MD

Paramount Asphalt Sealcoating Corporation - Naples, FL

Prestige Paving Company - Corona, CA

Pro-Seal Asphalt Contractors - North Charleston, SC

Richland Sealcoating Co Inc. - Mansfield, OH

Rose Paving - Bridgeview, IL

100

Sealcoating Specialist Inc. - Hermitage, TN

100

Seal-O-Matic Pavement Solutions - Olathe, KS

Stasi Brothers Asphalt - Westbury, NY

Sunland Asphalt & Construction Inc. - Phoenix, AZ

Superior Asphalt Maintenance - Utica/Owensboro, KY

T&N Asphalt Services Inc. - Salt Lake City, UT

The Surface Masters Inc - Marieta, GA

100

U.S. Pavement Services - Woburn, MA

United Paving Co. - Corona, CA

Wolf River Asphalt & Sealcoating Inc. - Shiocton, WI

Yeager Asphalt Inc. - Carrollton, MI

Sponsored by

M&M Asphalt Maintenance Inc., dba All County Paving Delray Beach, FL

Parker Line Striping, Inc., dba National Pavement Dekalb Junction, NY

SA $

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If th atte

FRO

June/July 2020 • Pavement Maintenance & Reconstruction • www.ForConstructionPros.com/Pavement

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STRIPING 50 Sponsored by

2020 Striping 50 Slight decline in segment sales, but margins continue to climb STRIPING-ONLY SALES for the 2020 Striping 50 totaled $204,420,374 – a decline from last year’s $215 million, which was way up from 2017 when the Striping 50 striping-only sales totaled just over $139 million. It’s the first step back for striping-only sales since 2014. Last year we attributed the jump in sales to the fact that several large stripingfocused contractors joined the list. It’s just as likely that because a number of large contractors – specifically a number of large paving-focused contractors – joined the list this year, the emphasis on striping among list members has lessened.

Total Sales for the Striping 50 Total sales for all work done by the contractors making up the 2020 Striping 50 was $1,536,739,758 – up more than $450 million over last year’s $1.070 billion, which was up over $926 million in 2017. This year striping-only sales represented 13% of total sales for the Striping 50, down from 20% last year, from 15% in 2017. Other revenue was generated as follows: • 33 companies pave • 41 companies sealcoat • 38 companies repair pavement

Profit Margin Shift Profit margins for the Striping 50 continue to shift toward the high end, and just like last year (and just like other segment this year) the biggest changes were seen in the middle margin range. • Those reporting the greatest margins, more than 15%, jumped substantially to 49% from 37% last year and even surpassing 48% in 2017 • Contractors reporting margins in the 10-15% range dropped to 22% (41% last year and 25% in 2017)

• 25% of the Striping 50 reported margins in the 5-10% range, up from 16% last year, which was down from 23% in 2017 • Those reporting margins of 3-5% remained stable at 4% • None of the Striping 50 reported margins of less than 3%

The Striping 50s’ Customers

Where Stripers Work

Replacing the Striping 50s’ Equipment

All but one Striping 50 company generates sales from parking lot work, with six companies reporting 100% of sales from parking lots and another 10 companies reporting 90% or more from parking lots. Work on roads and streets generates sales for 39 companies; nine companies indicated they work on highways

• 50 contractors work for commercial/ industrial customers • 39 contractors work for multi-family residential customers • 41 contractors work for municipal clients • 32 contractors work for single-family homeowners

Only seven companies reported it would cost less than $500,000 to replace their equipment. Another four reported it would cost $500,000-$1 million to replace their fleet; 10 companies said it would cost $1-$2 million; and 28 companies reported it would cost more than $2 million to replace their equipment.

MA GL

June/July 2020 • Pavement Maintenance & Reconstruction • www.ForConstructionPros.com/Pavement

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Sales Composition (%)

Where We Work (%)

Customer Mix (%)

Paving

Sealcoating

Striping

Sweeping

Pavement Repair

Other

Highways

Streets/Roads

Parking Lots

Driveways

Other

Commercial

Municipal

Multi-family

Single-family

Other

Spon

Year in Business

Sponsored by

1-800-STRIPER - Hilton, NY

100

M&D

A&A Paving - Roselle, IL

M&M

A.C. Moate Industries Inc. - Auburn, WA

100

AAA Striping & Seal Coating Service - Edmonton, Canada

Accurate Pavement Striping - Pflugerville, TX

ACI Asphalt & Concrete Inc. - Maple Grove, MN

Affordable Striping & Sealing - Las Vegas, NV

All County Paving - Delray Beach, FL

All Out Services LLC - Havertown, PA

American Asphalt Repair & Resurfacing Co. - Hayward, CA

American Roadway Logistics - Norton, OH

ASAP Asphalt Sealing And Paving Co. - Meadow Lands, PA

Associated Paving Contractors Inc. - Warminster, PA

Atlantic Southern Paving and Sealcoating - Sunrise, FL

B&G Sealcoating LLC - Endicott, NY

Brahney Paving / www.FIXASPHALT.com - Wall Twp., NJ

100

Brite Line Asphalt Maintenance Inc. - Canton, GA

100

Brothers Paving & Concrete Corp. - Manassas, VA

C & R Asphalt, LLC - Lexington, KY

Cincinnati Asphalt Corp. - Cleves, OH

Constantine Paving & Sealing - Glastonbury, CT

DH Striping Company - Oviedo, FL

Dominion Paving & Sealing - Purcellville, VA

F. Allied Construction Co. Inc. - Clarkston, MI

Finley Asphalt & Concrete - Manassas, VA

Flynn Paving Co. - Royal Oak, MI

Harding Group - Indianapolis, IN

Intercounty Paving Co. - Carmel, NY

Kansas Asphalt Inc. - Bucyrus, KS

Line Design Solutions LLC - Lighthouse Point, FL

Lynne Services Inc. - Saint Augutine, FL

Delra

June/July 2020 • Pavement Maintenance & Reconstruction • www.ForConstructionPros.com/Pavement

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Mau

Mich

O’Le

Para

Park

Deka

PCI -

Prec

Pres

Pro-

Rose

S&G

Strip

Sun

Syne

U.S.

Unit

STRIPING 50 Sales Composition (%)

Paving

Sealcoating

Striping

Sweeping

Pavement Repair

Other

Highways

Streets/Roads

Parking Lots

Driveways

Other

Commercial

Municipal

Multi-family

Single-family

Other

Maul Paving Inc. - Plainfield, IL

Michigan Marking - Holland, MI

100

O’Leary Asphalt Inc. - Ijamsville, MD

Paramount Asphalt Sealcoating Corporation - Naples, FL

PCI - Azusa, CA

Precision Striping and Sealcoating, Inc. - Blairstown, NJ

Prestige Paving Company - Corona, CA

Pro-Seal Asphalt Contractors - North Charleston, SC

Rose Paving - Bridgeview, IL

100

S&G Asphalt Service - Slatington, PA

Stripe-A-Zone Inc. - Grand Prairie, TX

Stripes & Stops Co. - Houston, TX

Sunland Asphalt & Construction, Inc. - Phoenix, AZ

Synergy/AMS - South Beloit, IL

U.S. Pavement Services - Woburn, MA

United Paving Co. - Corona, CA

Other

M&D Blacktop Co. - Grove City, OH

M&M Asphalt Maintenance Inc.,dba All County Paving Delray Beach, FL

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6 0

Customer Mix (%)

Where We Work (%)

Year in Business

Sponsored by

Parker Line Striping Inc. (dba National Pavement Dekalb Junction, NY

0 0 0 1 2 0 0 0 0 20 0

www.ForConstructionPros.com/Pavement • Pavement Maintenance & Reconstruction • June/July 2020 29

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PAVEMENT REPAIR 50 Sponsored by

2020 Pavement Repair 50 Repair-only sales grow in dollars but decline as a percentage of contractor work HERE IS THE HISTORY of Pavement Repair-only sales: 2020 – $217,721,018 (list size 50 companies) 2019 – $209 million (50) 2018 – $265 million (75) 2017 – $165 million in sales (50) 2016 – $255 million in sales (75) 2015 – $269 million in sales (50) 2014 – $141 million in sales (75) The 2020 repair-only sales total represents the second-highest total for a year when we listed 50 companies, coming in far behind 2015 (which was a post-Great Recession year when pent-up demand was resulting in unusually large sales numbers).

F a W

Total Sales for the Pavement Repair 50 Total sales for all the work the Pavement Repair 50 did was $1,360,280,901 – way up from almost $981 million last year and $813 million in 2017. As a percentage of total sales by the Pavement Repair 50, pavement repaironly sales accounted for the smallest percentage (17%) since we started tracking this industry segment in 2014. That’s down from 21% last year and from 20% in 2017. While it’s difficult to explain the decline, we’ve always noted that many contractors lump pavement repair in with their paving work. It’s possible that large contractors are even more likely to do this as patching and small repairs are often part of large overlay jobs – and with large contractors joining the lists this year that could account for the difference from previous years. Contractors in the Pavement Repair 50 perform other work as follows:

• 35 contractors perform striping work • 44 perform paving work • 46 perform sealcoating work

Profit Margins Trend Higher Profit margins for the 2020 Pavement Repair 50 followed the trends of the other segments this year, tilting to higher margins while the middle margins experienced a shift. • 42% reported margins of more than 15%, up from 37% last year and near the high of 44% in 2017 • 26% reported margins in the 10-15% range, down from 41% last year and from 33% in 2017 • 28% reported margins in the middle 5-10% range, up from 16% last year and from 15% in 2017 • 4% reported margins of 5% or less, down from 6% last year • No contractors reported margins less than 3%

So 68% of the Pavement Repair 50 generated more than 10% profit for their work (compared to 78% last year and 77% in 2017).

Where the Pavement Repair 50 Work All but one of the Pavement Repair 50 indicated they generate sales from parking lot work, with six companies (12%) generating 100% of their sales from parking lots and another 12 (24%) reporting 90% or more of sales from parking lots. Possibly demonstrating the impact large paving companies are having on the list, roads and highways make up a decent percentage as well with seven companies (14%) reporting sales from highway work (the same as last year) and 37 companies (74%) report sales from streets and roads (up from 20 companies last year).

June/July 2020 • Pavement Maintenance & Reconstruction • www.ForConstructionPros.com/Pavement

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To pr pr mi ae

n m

Congratulations to 2020’s Top Pavement Repair Contractors! For more than 40 years, Crafco has helped customers protect, preserve, and extend the service life of asphalt and concrete pavement. We’re proud to repeatedly partner with the nation’s Top Pavement Contractors. Top contractors know that crack sealing is the best solution to keep roads in good condition. Crack sealing is the proven, lowest-cost-with-highest-benefit pavement preservation treatment. It enables long-lasting repair while protecting against the formation of other distresses. When used as a pretreatment, it extends the benefits of chip sealing, microsurfacing, sealcoating, and other pavement preservation treatments — helping contractors consistently deliver the aesthetics and performance their customers demand.

Crafco supports contractors with: Quality hot-applied sealants and mastics, along with the equipment to apply it Innovative, ready-to-use cold patch materials Pavement sealers and sealcoating equipment, supplies, and materials Dedicated field support Sales, service, and equipment rentals from our Crafco Pavement Preservation Supply Centers nationwide

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The Pavement Repair 50s’ Customers • 49 contractors work for commercial/ industrial customers • 47 contractors work for multi-family residential customers • 39 contractors work for municipal clients

• 22 contractors work for single-family homeowners

it would cost $500,000-$1 million to replace their fleet; nine companies said it would cost $1-$2 million; and 29 companies reported it would cost more than $2 million to replace their equipment.

Replacing Pavement Repair 50s’ Equipment Only one company reported it would cost less than $500,000 to replace their equipment. Another 11 reported

Spon

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Sponsored by

Hard

Sealcoating

Striping

Sweeping

Pavement Repair

Other

Highways

Streets/Roads

Parking Lots

Driveways

Other

Commercial

Municipal

Multi-family

Single-family

Other

Customer Mix (%)

Paving

Where We Work (%)

Year in Business

Sales Composition (%)

Kan

A&A Paving - Roselle, IL

Line

A.C. Moate Industries Inc. - Auburn, WA

100

Luiz

ACI Asphalt & Concrete Inc. - Maple Grove, MN

Lynn

ADC Paving - Louisville, KY

M&D

All County Paving - Delray Beach, FL

M&M

All Out Services LLC - Havertown, PA

American Asphalt Repair & Resurfacing Co. - Hayward, CA

ASAP Asphalt Sealing And Paving Co. - Meadow Lands, PA

Asphalt Restoration Technology Systems Inc. - Orlando, FL

Associated Paving Contractors Inc. - Warminster, PA

Atlantic Southern Paving and Sealcoating - Sunrise, FL

Brahney Paving / www.FIXASPHALT.com - Wall Twp, NJ

100

Brothers Paving & Concrete Corp. - Manassas, VA

C & R Asphalt LLC - Lexington, KY

Cincinnati Asphalt Corp. - Cleves, OH

Constantine Paving & Sealing - Glastonbury, CT

Daniel B. Krieg Inc. - Harrisburg, PA

DH Striping Company - Oviedo, FL

Dominion Paving & Sealing - Purcellville, VA

Erickson Asphalt Services Inc. - Princeton, MN

Exterior Maintenance Service LLC - Nashville, TN

100

F. Allied Construction Co. - Clarkston, MI

Finley Asphalt & Concrete - Manassas, VA

Inte

K&L

Delra

June/July 2020 • Pavement Maintenance & Reconstruction • www.ForConstructionPros.com/Pavement

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Mau

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PAVEMENT REPAIR 50 Sponsored by

Paving

Sealcoating

Striping

Sweeping

Pavement Repair

Other

Highways

Streets/Roads

Parking Lots

Driveways

Other

Commercial

Municipal

Multi-family

Single-family

Other

Customer Mix (%)

Year in Business

Where We Work (%)

Flynn Paving Co. - Royal Oak, MI

Giant Development Inc. - Raleigh, NC

100

Giordano Construction Inc. - Houston, TX

Harding Group - Indianapolis, IN

Intercounty Paving Co. - Carmel, NY

K&L Industries - Canby, OR

Other

Sales Composition (%)

Kansas Asphalt Inc. - Bucyrus, KS

Line Design Solutions LLC - Lighthouse Point, FL

Luizzi Asphalt Services - Albany, NY

Lynne Services Inc. - Saint Augutine, FL

M&D Blacktop Co. - Grove City, OH

M&M Asphalt Maintenance Inc., dba All County Paving -

Prestige Paving Co. - Corona, CA

Pro-Seal Asphalt Contractors - North Charleston, SC

Rose Paving - Bridgeview, IL

100

Ruston Paving - Gainesville, VA

100

SCG Paving Co. - Batavia, IL

Seal-O-Matic Pavement Solutions - Olathe, KS

Stasi Brothers Asphalt - Westbury, NY

Sunland Asphalt & Construction Inc. - Phoenix, AZ

Synergy/AMS - South Beloit, IL

T&N Asphalt Services Inc. - Salt Lake City, UT

The Surface Masters Inc - Marieta, GA

100

U.S. Pavement Services - Woburn, MA

United Paving Co. - Corona, CA

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Delray Beach, FL 0 0 0 0 0 0 0 0 6 0 0 0 0 0 0 0

Maul Paving Inc. - Plainfield, IL Parker Line Striping Inc., dba National Pavement Dekalb Junction, NY

1 2

www.ForConstructionPros.com/Pavement • Pavement Maintenance & Reconstruction • June/July 2020

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Pavement Profit Center

Get it Right the First Time – Automate your maintenance re-striping process with the new LifeMark®-300 Automated Re-striping System. Designed to control the re-striping of pavement markings without a rear operator, the system components work together to provide automated control of a striping truck’s paint guns and carriages. #robotstriper

FOR MORE INFORMATION, CONTACT CHRIS DAVIES at 215-240-2223 or visit limntech.com.

Replacement Brooms You Can Rely On.

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 the one that arrives to you as promised. Contact us to find a distributor near you.

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June/July 2020 • Pavement Maintenance & Reconstruction • www.ForConstructionPros.com/Pavement

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www.ForConstructionPros.com/Pavement • Pavement Maintenance & Reconstruction • June/July 2020

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Pavement Profit Center

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June/July 2020 • Pavement Maintenance & Reconstruction • www.ForConstructionPros.com/Pavement

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www.ForConstructionPros.com/Pavement • Pavement Maintenance & Reconstruction • June/July 2020

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Pavement Profit Center

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June/July 2020 • Pavement Maintenance & Reconstruction • www.ForConstructionPros.com/Pavement

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www.ForConstructionPros.com/Pavement • Pavement Maintenance & Reconstruction • June/July 2020

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Pavement Profit Center

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www.ForConstructionPros.com/Pavement • Pavement Maintenance & Reconstruction • June/July 2020

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Pavement Profit Center

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Handy Tamp 8" X 8" X 3/8" a11 welded steel tamper with a 48" handle for those hard to get at places and a reflective decal. This Is a "MUST" for patching.

The Mat-Miser makes for quick. easy, accurate measure of blacktop mat thickness when paving. It has an engraved scale from 0 • 8" in 1/2" increments. (Metric available) It is a valuable yet Inexpensive tool.

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June/July 2020 • Pavement Maintenance & Reconstruction • www.ForConstructionPros.com/Pavement

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www.ForConstructionPros.com/Pavement • Pavement Maintenance & Reconstruction • June/July 2020

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Contractors ’ Choice : Snow Removal

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How to Add a

SNOW PUSHER

for Commercial Snow Removal Operations Adding the right snow removal attachment eases snow removal operations, reduces plowing and improves year-round utilization of equipment IF THERE IS snow in your area, you can bet that you have an off-season that runs from at least December through March, and possibly longer. A particularly wet spring can extend it several weeks longer. Regardless, that is at least a third of the year where equipment and employees are idle, a sizable chunk of time to be sitting without work. When you consider what you need to start a snow removal business, many of the pieces are already in place. Existing wheel loaders, tractors, excavators, backhoes, skid steers and track machines may all be fitted with snow pushers and plows. You already have trained and reliable operators, which are difficult to come by these days. And

finally, you may have an established commercial customer base that you can easily turn into snow removal clients. Loan payments and equipment depreciation take place regardless of whether equipment is utilized or not, which is even more reason you want to use it all year round. If you are currently renting or leasing equipment because of your seasonality, you will find that your enhanced utilization gives you the ability to negotiate better purchase or financing terms. In addition to improving equipment utilization in the off season, consider employee retention following seasonal layoffs. Many companies permanently lose good workers, as some may seek out new, year-round jobs and not return when construction kicks back into high gear. In addition, many laid-off employees do not look for temporary jobs but instead collect unemployment. This elevates the company’s unemployment insurance costs, adding major expenses without steady work to offset that cost.

By offering the opportunity for yearround employment, a business minimizes the risk of losing quality employees and eliminates the costs associated with hiring and training replacements. Having year-round services offers the additional opportunity to maximize revenues from existing customers, by becoming more of a “one-stop shop” – a place to go for multiple needs. The new, planned supermarket in town needs to have its parking lot poured, but also have that lot plowed every year thereafter. A diversified construction company can demonstrate the convenience of working with a fullservice company by touting the fact it can both pour the concrete and later snowplow the lot. The same is true for landscaping. The client is reassured that you will not only do a nice job on his snow removal but be careful to protect the landscaping you installed over the summer.

Pushers vs. Plows Successfully entering the snow removal business requires securing the right

June/July 2020 • Pavement Maintenance & Reconstruction • www.ForConstructionPros.com/Pavement

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equipment. These initial costs can seem intimidating to contractors with limited capital, but when the right decisions are made, the actual returns make this a no-brainer. It’s like anything else you need the right tool for the job. One of the biggest upfront costs for a snow plowing operation is the equipment needed to push the snow. This includes both the actual snow pushers and the machines driving the operation. However, a contractor’s existing machines such as loaders and skid steers can all be repurposed for snow removal, rather than being left idle for the winter season, leaving the pusher as the key piece of equipment to consider. To draw the distinction between pushers and plows, a plow is an angled blade that guides snow to either side of the driver. A pusher is a containment or box plow with side wings that contains a great quantity of snow which it moves from one end of a parking lot to the other, where it is piled up out of the

A contractor’s existing machines such as loaders and skid steers can all be repurposed for snow removal, rather than being left idle for the winter season, leaving the snow pusher as the key piece of equipment to consider.

way. The pusher is the work horse of any commercial snow operation and should be its primary tool.

Selecting the Proper Pusher To select the proper snow pusher, a contractor must first analyze the existing fleet and select the size pusher that will match well to that machine. Each model of pusher is meant for a particular size of equipment – meaning

one designed for a large loader would not work on a small skid steer. Local dealers provide assistance to contractors looking to purchase the right pusher for his or her equipment.

Pricing Options for Plowing Snow There are three basic pricing options and it’s up to each individual contractor to decide what’s best for his or her operation. • Hourly - The tactic for this pricing strategy is the most straightforward and easily understood. The snow contractor charges customers an hourly rate based on the time and materials necessary to get the job done. There is less risk to the contractor, the company gets paid for the work completed, no more no less. There is also less profit potential since no real value is placed on contractor efficiency. The contractor may end up paying more to hourly workers who are, consciously or sub-consciously, dragging out the process in the attempt to take more time and charge the client more. This can inhibit profits by limiting the number of contracts the company can take while it also may harm its reputation by appearing slow or unethical. • Per push - In this example, customers agree to be charged by the event with the establishment of a trigger depth. The trigger depth is the decided-upon amount of snow that must be on the pavement before the contractor comes out to plow. The advantage of per-push pricing is the guarantee of payment for the work done on each visit. If it is a heavy snow season, the money made will be significant. This approach also rewards efficiency because per push cost is based on an expected hourly calculation. If the crew finishes the job faster, the whole company wins. The drawback is the risk assumed by the contractor. If it is a light snow season, the plows will not go out as often, eliminating the opportunity for work and dollars earned. • Seasonal Contract - A seasonal contract is based on one flat rate to provide snowplowing services for an entire winter season. The advantage of this contract is the guarantee of a set payment throughout the winter, regardless of snowfall. If there’s only one blizzard the entire season, the contractor is still paid the full amount for that season. However, in a heavy snow year, more work than originally anticipated will be required on the part of the contractor. As mentioned previously, the amount of snowfall or trigger depth will be the deciding factor on when to dispatch the plows. It is important to note there are two subcategories with regards to the seasonal contract option: with or without a cap. The scenario detailed above would be a seasonal contract without a cap. In this case, whether it snows 10 in. or 100 in., the amount paid by the client is fixed. However, with a cap in place (for example, a 40-in. cap) the amount paid would abide by the contract price up to 40 in. Anything after 40 in. would be billed at an agreed-upon per push or hourly rate. When supplying a service, it is advantageous to be flexible when it comes to pricing. Different parts of the country have a different history regarding pricing. Also, each client may have his own preferences. The contractor may have to consider a blend of all three in order to successfully bid his area, and to satisfy all parties.

www.ForConstructionPros.com/Pavement • Pavement Maintenance & Reconstruction • June/July 2020

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Contractors ’ Choice : Snow Removal

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Snow pushers come in a variety of sizes, with the smallest measuring 8 ft. to larger units extending well over 20 ft. Contractors can minimize equipment costs by analyzing their existing fleet and then fitting with the appropriatesized pushers. For example, a small skid steer could be outfitted with an 8-ft. snow pusher and be ready for use. Those with larger equipment in their fleet would want to look at snow pushers in the 16 to 20 ft. range. No matter how big or small the snow pusher, it is important to purchase one with the greatest potential for return on investment. A high-quality snow pusher will typically pay for itself in the first 30 in. of snowfall – a relatively quick return, considering many areas of the country average this amount in the first

few months of the winter season. When it comes to choosing a highquality pusher, remember: All snow pushers are not created equal. Many are designed to increase efficiency, cut back on salt usage and reduce potential property damage, and some have unique design features that vastly improve its safety profile. If you want to be an expert in snow removal technology, get prepared to discuss topics such as sectioned moldboards, trip edges, polyurethane mounting blocks, floating side panels and universal slip-hitch mounting systems. A pusher featuring a sectional moldboard design moves more snow with each pass, and greatly cuts down on plowing and follow up re-plowing time. Each section moves up and

Sectional pushers are designed to trip over obstacles and contour to uneven pavement, cleaning more snow and requiring less salt.

down independently, enabling the plow to essentially contour to uneven surfaces and remove snow from dips and depressions in pavement. Because they are can remove more snow and ice with one pass, less salt is required. It is also important to look at the unit’s cutting edge. Rubber and steel trip edges are most common options, with steel cutting edges typically being the best. Steel edges scrape snow and ice down to the pavement and offer cleaner removal with a single pass, further reducing salt needs.

May 2020 • Pavement Maintenance & Reconstruction • www.ForConstructionPros.com/Pavement

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de the pro de am an ins to de ne ser de da co

A universal slip hitch mount allows an operator true drop-and-go capability. This model fits all manufacturers' quick couplers and can be attached/detached from inside the cab.

Additionally, it is worth considering a pusher with mechanical side panels. Unlike rigid, fixed side panels, mechanical panels are designed to rotate up and over obstructions like curbs and medians. While this saves greatly on potential damage to the plow, the real benefit comes in preventing expensive damage to the client’s property. Snowplow companies can spend tens of thousands of dollars each year repairing expensive curbing and other such features commonly found in parking lots and on streets. Some sectional or sectional-like designs use springs as the basis of their up and down movement. The problem with springs is that they are designed to release when encountering a mound of hard-packed snow or ice and so do not perform well in those instances. Also, while they may be able to lift over bumps, they cannot dip into depressions in the pavement. The other negative to springs is that if there is a serious unforeseen impact, springs can deform and the moldboards become damaged, the same as would result in a conventional one-piece design.

A far better design employs the use of flexible polyurethane blocks that add torque to the cutting edge, cleaning up ice and hard-pack as easily as the soft stuff. The blocks flex up and down so the sectioned edges can both avoid obstacles and reach into depressions. They also act as bumpers to protect the equipment and the operator. If the impact is serious enough, the blocks are designed to break before any steel is deformed or the operator hits the windshield, and they can be replaced for under $100.

Evaluate Hitch Options Finally, the more modern and advanced pushers may also feature newer hitch designs, providing ease of operation and enhanced results. A snow pusher is picked up and set down hundreds

of times during a snow event. Typical hitch designs force the operator to manually adjust the plow each time it’s dropped to make It level, making for a very challenging, time-consuming and often frustrating process, especially for inexperienced operators. The other problem is traction as traditional mounting systems cause the weight of the pusher to lift the machines front tires off the ground. Newer “drop-andgo” hitch designs solve both problems automatically, saving precious time and ensuring a properly placed pusher every time. This is an extremely important but overlooked point until one has actual experience behind a snow pusher. Now, operators who have never plowed a day in their life are soon able to plow as well as experts. While the pusher is indeed the most significant tool for your business, you need to consider your secondary equipment. Items such as sand and salt spreaders, liquid anti-icing applicators, or snow brooms may be required, depending on the extent of services offered by each individual company. The same principles apply – take the time to research features and benefits. An informed equipment selection is well worth the effort and will pay back dividends.

h OEM polyurethane mounting blocks allow for up-and-down movements, variable downward pressure to the cutting edge and impact protection.

www.ForConstructionPros.com/Pavement • Pavement Maintenance & Reconstruction • June/July 2020

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On The Job

Jessica Lombardo, Contributing Editor

How to Manage Asphalt

DENSITY

When dealing with compaction, keep your focus on these four main areas

THE PAVING INDUSTRY relies on compaction to increase pavement density and extend pavement life. A study by Washington State concluded that the life of a pavement can be extended by two years for every 1% increase in final in-place density achieved. It makes sense then that most states incentivize contractors for achieving and exceeding density numbers. “Density is not only a top quality indicator, in terms of how long the pavement will last, but it is also a top pay item in most state specifications,” Todd Mansell product application specialist for Caterpillar, Inc. says. “In most states, contractors are paid incentive or disincentive (financial penalties), based on the final, in-place density of asphalt on the roadway. In extreme cases of low density, contractors may be required to remove and replace the new asphalt if it does not meet density specifications.” Mansell says there are many factors that contribute to contractors having to “chase” density on a jobsite, but there are four main things you should pay attention to.

This includes how the settings of amplitude and frequency on steel drum vibratory rollers and tire pressures on pneumatic rollers affect the ability to achieve density (see sidebar). “Knowing when to make changes and what changes to make are key to being successful,” Mansell says. “Training helps operators identify why they are not getting density. If it is paver speed, they know that, they can speak intelligently to their manager or foreman to slow down the paving operation.” However, training is only effective if there are people in the organization who are willing to enforce what needs to be done, for example, slowing down the paver or adding more rollers to maintain a higher paving speed. “The paver operator and crew must understand how their job affects compaction as well,” Mansell adds. “It’s a team effort to be successful with density on the road.”

2. TEMPERATURE Creating density is easiest when you’re at the highest temperature for the

type of mix you’re using. Typically, asphalt comes out of the plant at about 300° F. At that temperature, it is relatively low viscosity and is readily compacted. As the mix cools, it sets up and compaction becomes increasingly difficult. “Whether it is conventional hot mix or warm mix or any other type asphalt mix, it needs to be rolled and compacted while it is hot,” Mansell says. “Asphalt has a relatively short shelf life before sufficient compaction cannot be achieved.”

The rolling pattern affects density primarily as it relates to making the required number of roller passes while the mix is still HOT. The required number of roller passes is determined in a test strip or control section. Most times, this is simply part of the first day’s production. An efficient rolling pattern that covers as much of the paved area in as short amount of time as possible is generally the best approach to a rolling pattern.

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Training plays a big role in helping roller operators know what factors affect density.

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Preparation, planning and training are key components of achieving optimal asphalt compaction, but they mean very little if nothing is being communicated to the team.

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3. PROPER ROLLER & ROLLING PATTERN

1. TRAINING

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First, you have the breakdown roller which develops the majority of the density in an asphalt layer. It works immediately behind the paver where the asphalt is the hottest and it must match the production and speed of the paver. According to Mansell, steel drum vibratory rollers are most often used directly behind the paver as breakdown rollers and they will achieve the largest increase in density while the mix is at its hottest coming out behind the screed.

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Creating density is easiest when you’re at the highest temperature for the type of roller you’re using. Typically, asphalt comes out of the plant at about 300° F. At that temperature, it is relatively soft and is readily compacted. As it cools, it firms up and compaction becomes increasingly difficult.

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build density “bottom up,” making them very effective in the breakdown position. The kneading action of the rubber tires also aids greatly in achieving a more uniform density throughout the depth of the asphalt layer. Lastly, there are finish rollers whose goal is to clean up marks left by previous rollers. Finish rollers may also achieve additional density gains, however, it should not be expected in most cases. Static steel wheel rollers are primarily used as finishing rollers because they produce the smoothest surface of any roller type.

4. COMMUNICATION

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Lack of roller operator training on using the optimal settings of amplitude and frequency on steel drum vibratory rollers and tire pressures on pneumatic rollers is a huge contributing factor to achieving density.

Typically, pneumatic tire rollers are used in the intermediate position behind the breakdown roller, although pneumatics can be used very successfully directly behind the paver in the breakdown phase of compaction. “Using pneumatics for breakdown directly behind the paver is more common in northern states where colder temperatures dictate achieving density as quickly as possible,” Mansell says. “It takes a skilled operator to run a pneumatic tire roller directly behind the paver while preventing mix from sticking to the tires.” Steel drum rollers build density from the top down with successive roller passes, whereas pneumatic tire rollers

Preparation, planning and training are key components of achieving optimal asphalt compaction, but they mean very little if none of the above factors are being communicated and implemented. “Proper communication is essential to achieving density,” Mansell says. “As noted above, if the root cause of not achieving density is related the paver moving too fast and the rollers having to keep up, the roller and paver operators must communicate to each other and figure out the correct paver speed that allows the rollers to keep up with the paver and maintain 10 – 12 impacts per foot. This is just one example.” Keep in mind that rollers are the last piece of equipment to touch the mat after it is placed and are the last opportunity to “undo” the smooth mat that the paver has placed. Mansell says always have a “Plan B” if density is not being achieved and a means to communicate that to the rest of the crew. “Take pride in your work and work as a team in order to accomplish a quality job that you can be proud of,” Mansell concludes.

Using Amplitude & Frequency Lack of roller operator training on using the optimal settings of amplitude and frequency on steel drum vibratory rollers and tire pressures on pneumatic rollers is a huge contributing factor to achieving density. According to Mansell, amplitude is the “hammer” that imparts compactive energy from the roller to the mat to achieve density. The thicker the mat, or the larger size stone in the mix, dictates using a higher amplitude setting. A general rule of thumb is to use a higher amplitude setting on lift thicknesses greater than 2-in. thick. Lower amplitude on 1-in. to 2-in. thick and static (no vibration) on lifts 1-in. or less in thickness. There are several other factors, such as the base conditions (soft versus stiff), mix temperature, binder type, etc. that also factor into deciding what amplitude setting to use. The most significant factor is the lift thickness. “Frequency should always be run at the highest frequency setting possible on the roller,” Mansell adds. “One thing to always remember on rollers that have multiple amplitude and frequency settings is that a high amplitude setting means a lower frequency setting on most rollers on the market today. Since frequency is directly related to how fast the roller can travel and maintain the recommended 10 -12 impacts per foot, it is CRITICAL that operators understand going to a lower frequency setting means they will need to slow down!”

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From the Owner’s Desk

Nick Howell

The Value of Perceived Value…and How to Improve Yours PERCEIVED VALUE IS huge in many businesses, and the asphalt industry is no exception. What exactly is perceived value, and what does it mean to me? We all know (or should know) that in the paving and pavement maintenance industry we are in the service business: we provide a service to others. For anything from striping to paving, we constantly market our company and services to the end user, and we want to do that in the most professional way we can. Why? Simple: it's a trust factor. As you gain experience and are trusted more and more, you will find your business getting more jobs – and hopefully more money on each job.

Marketing More than Low Cost When a client looks at potential businesses to hire, there are usually several factors in addition to cost that influence a decision. Unfortunately, many asphalt operations focus just on cost and become the infamous #LowBid guys. We’ve taken a different approach, focusing less on cost and more on marketing our company’s abilities and who we are professionally. We are improving how our company is perceived, creating the value of the company in and of itself. This is perceived value. It sets us apart from those that don't do it, and it lets the customer know that we can handle their project with ease and professionalism. Perceived value is a great way to market your operation to show that it’s superior to your competition. Some of the steps we have taken to improve our perceived value include expanding our knowledge

base by attending National Pavement Expo regularly, attending executive leadership conferences, and enrolling in continuing education courses (and letting our customers know about our self-improvement efforts). Our estimating team understands what causes pavement failures and defects, so we know the proper methods of repair. And we research the best sealcoats, traffic paints, and other products to ensure we offer the best of the best for our clients. In fact, we are constantly conducting field tests with products and documenting results to ensure what we use will exceed expectations. All these efforts enable us to offer the best available products and services to our clients – we are creating perceived value for our company. I would say the top things you need to create perceived value are: • Professionalism • Properly trained and uniformed crews • Clean trucks • Modern tools and equipment

Does Perceived Value Work?

product than its rivals, even within its own class. Some will argue Fruit Loops dominates, but in many cases, you can’t tell! It’s all marketing, all perceived value. One thing is clear: people will pay for perceived value. We market and relate to those customers who want to hire a premium contractor. We don't play the highvolume or #LowBid game but take each client and give them exactly what we promise without any rush or compromise. It's not blowing hot air either – we genuinely offer a premium experience and product. I firmly believe that you will be able to command higher prices by representing your operation in the most professional light you can. We’re a great example! Ever since we have improved our perceived value, we do get those higher prices. We don't get them all, but we do get a good chunk. By creating perceived value for your company, not only will you potentially increase margins but your clients will be happier, and you will be bettering the industry.

Think about the products or services that you buy….Now think about the products you buy that you might pay more money for the brand name or for something you think is simply better. Is Chevron premium gasoline that much better? Is Fruit Loops cereal better than its white label rival Tootie Fruities? Is the Ford F-150 Platinum really better than the Ford F-150 Lariat? These are just a few examples of everyday cases where marketers are trying to market a product that’s thought to be a better, more-premium

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. 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.

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Your Business Matters

Jessica Lombardo, Contributing Editor

Training is the Key to Technology Adoption in the Asphalt Industry EVERY ASPHALT CONTRACTOR has been on a project that requires them to use some form of new technology they aren't familiar with in order to meet the job specifications. Most workers will manage to get through the project doing what is required of them and move on to the next job, forgetting how the technology helped improve their daily operations and ultimately the performance of the job. This is the primary issue with technology adoption in the construction industry. Workers won't use new options available to them unless they are forced to and then they regress back to what they've always done. "The key to technology adoption for long-term use is getting them trained properly on how to use it correctly," says Tim Kowalski, HAMM application support manager at Wirtgen America. "Those that end up doing the training and finally understand and realize that it's a real benefit for them, whether it be intelligent compaction or thermal imaging, after they use it they start becoming a super user. They realize that it's actually helping them out do a better job."

Technology Doesn't Have to be Scary While technology is sure to change the way asphalt contractors complete their daily tasks, it doesn't have to be perceived as a negative change. "The biggest problem I see in the industry with technology is that contractors are afraid of it," Kowalski says. "Most of the time when they start using it, it's only because the states require certain things and then forced to use it." However, once properly trained, there's no stopping where they'll take this technology.

One technology contractors have become familiar with mostly through state mandate is intelligent compaction (IC). IC works by using modern vibratory rollers equipped with an integrated measurement system, an onboard computer reporting system, Global Positioning System (GPS) based mapping and optional feedback control. IC rollers facilitate realtime compaction monitoring and timely adjustments to the compaction process by integrating measurement, documentation and control systems.

While the technology has been widely used in the industry, it's still not widely accepted on a day to day basis by many contractors and manufacturers want to change that. "We want the software to be more user friendly and adaptable to download information," Kowalski says. "Manufacturers are working on like the next generation based on what people are asking for, what states are looking for, etc. We want to know how we can make it simpler and easier to use. We're all developing something to update from the versions we have now." Another emerging technology trend asphalt contractors need to continue to familiarize themselves with is the IR bar or a paver-mounted thermal profiling scanner. These devices use either a scanner or camera to measure and

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detect temperature differences that could be caused by segregation. "These devices actually show you where you might have possible segregation issues based on the temperature differences," Kowalski says. "Whether it's identifying it as a trucking issue or a loading issue into the paver, or maybe possibly something with the paver and how the material is flowing through the paver. If you have just individual spots, and they're consistent, it's probably maybe a truck dump that's the issue and we need to look at how we're going to resolve that. If it's just a streak in the mat, then maybe it's something to do with the paver and we can identify it that way. "Once we can identify those issues, we can fix them while we're doing the work," Kowalski continues. "Before if you didn't have that, you didn't know the problems until after you've finished paving and then a couple years later, you see all these issues come up."

Training Makes the Difference While the reasons to use new technology are clear, many contractors are still hesitant to deploy it every day on their jobsites and that's mainly due to lack of training. "Customers think that well, we'll just put it on the machine and it works. That's not how that happens, not with intelligent compaction and not with thermal imaging," Kowalski says. "There's definitely a training portion that needs to be done and we can't stress it enough. A lot of times people think, well, I'll train this month, but I'm not going to use the technology for three months down the road. That's not how that works because people are going to forget 90% of what you just

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A Step-by-Step Primer to Maximize Forgiveness of Your PPP Loan By Justin Boron

So you received your funds from the Paycheck Protection Program, now what? The next step is to make sure you spend the funds in a way that maximizes the forgiveness of the loan. Here is a step-by-step primer on what you need to do.

STEP ONE: Calculate Your Anticipated Forgiveness Amount To be forgivable, your loan proceeds must be spent during the eight-week Forgiveness Period. The Forgiveness Period begins on the date you receive your loan proceeds and ends eight weeks later. To get 100 percent forgiveness, that means you must spend 2.5 times the amount of your average monthly payroll in 2019 in two months or less. Here is how you set up your plan to maximize forgiveness: Calculate your estimated eight-week payroll costs. To be forgiven completely, 75 percent of the loan proceeds must be spent on payroll. In other words: if you received a loan of $100,000, you must spend $75,000 on payroll costs in the eight-week Forgiveness Period. So what are payroll costs? 1. Any amount of salary, wage, commission, or similar compensation that does not exceed the annualized amount for $100,000. [$4,166.67 on a bi-monthly payroll] 2. Payment of cash tip or equivalent [estimated based on past tips]; 3. Payment for vacation, parental, family, medical, or sick leave [mandatory paid sick leave under the Families First Coronavirus Response Act is excluded]; 4. Allowance for dismissal or separation; 5. Payment required for the provisions of group health care benefits, including insurance premiums; 6. Payment of any retirement benefit; or 7. Payment of State or local tax assessed on the compensation of employees. Calculate your forgivable non-payroll costs. Payments of rent from a lease, mortgage interest, or utility on agreements or services in force before February 15, 2020.

STEP TWO: Avoid Reductions In Forgiveness Forgiveness can be reduced in two ways: a head count reduction and a salary-basis reduction. To avoid a head count reduction, you must have the same or more full-time employees (FT) or full-time equivalent employees (FTE) than you did during either of the two periods: February 15, 2019 to June 30, 2019 or January 1, 2020 to February 29, 2020. To avoid reduction based on salary, you should maintain current pay levels. So how do I count FTs and FTEs? The PPP statute doesn’t say. And the SBA hasn’t said either. The SBA likely will, and we expect it to embrace the counting method used under the Affordable Care Act—i.e. 30 hours per week is a FT and any combination of parttime employees that add up to 30 hours per week is a FTE. But the SBA might not go this route. So you should closely monitor the guidance the SBA issues at https://www.sba.gov/document/?program=PPP. What if I had to layoff, furlough, reduce pay? No problem. The PPP gives you until June 30, 2020 to restore your employment levels and pay to avoid reductions in forgiveness.

STEP THREE: Ask For Forgiveness To apply, submit an application to your lender. It will need to contain documentation that will enable the reviewer to determine head counts and pay levels for the relevant time periods, including payroll tax filings to the IRS and state authorities. You will also need to include all documentation of what you spent the forgiveness amount on. Lastly, you must certify in good faith that the documents are true and correct and the amount for which forgiveness is requested was used to retain employees, make interest payments on a covered mortgage obligation, make payments on a covered rent obligation, or make covered utility payments. Justin Boron (jboron@fmglaw.com) is a partner in Freeman Mathis & Gary’s Philadelphia office. A member of the firm’s Labor and Employment national practice group, he advises employers on employee policy issues and defends them in employment discrimination claims, wage and hour claims, FMLA and ADA claims, and disputes over the enforcement of non-compete, non-solicitation, and confidentiality agreements.

told them by then and then you have to go back and do the training again. "That's why we like to do just in time training as it needed so they it's fresh in their mind when they use it," Kowalski adds. "If they are trained properly, they aren't just going to use it on places or locations that it's required, but they are going to use it on more locations because now they're a super user and

they can do a much better job on all their projects" And with the new technology that's coming out, Kowalski says it's also important to hire the right people with the right mind-set for change. "The contractor needs to realize they need more educated people to understand the technology so that it becomes easier for them to use," he

says. "If you have an operator that's 65 years old and if they don't want to learn it, they're not going to learn it. When you get a younger person in there that understands the technology and realizes that that can help them become a better operator, now, they're going to want to use it. Just like anything else eventually, if you keep using it, you're not going to want to do anything without it."

www.ForConstructionPros.com/Pavement • Pavement Maintenance & Reconstruction • June/July 2020 59

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5/26/20 4:36 PM

Technology

by Allan Heydorn, Editor

Push-to-talk Technology Company Gaining Ground in Construction Live voice communication app offers flexibility for contractors IN THEIR DAY-TO-DAY work, contractors oversee multiple job sites, crews, material drivers, traveling estimators and salespeople. In so doing, they must constantly track and stay in contact with a large team of people who are on-the-go and can be difficult to access. Many different types of technologies have attempted to address these communication issues over the years, but most recently, push-totalk solutions, now available on any smartphone, has presented a number of solutions for making communication easier and safer. A relatively new feature presented by Zello at ConExpo offers a way for contractors to tailor their PTT system to their company’s specific needs. Based in Austin, TX, Zello offers both a free (Zello) and a subscription-based (Zello Work) PTT app, which is available through the app store on either an iOS or Android phone. Once the app is downloaded, the user can either use Zello for free on the same network as millions of other Zello users, or they can set up their own private Zello Work network through their browser on a computer. “It’s the same idea as Nextel push-to-talk, but it’s an app instead of a flip phone,”

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Co says Bill Moore, Zello CEO. “"Emails and texts have squeezed voice communication out of our lives. Zello puts it back in, focusing on the live human voice, which is how we've evolved to communicate." According to Moore, the Zello app requires virtually no training. The user taps on a contact name or channel, presses and holds the pushto-talk button, and releases the button when finished talking. The app stores recent and missed messages and alerts the user if there are

unheard messages. A history button enables the user to retrieve and replay any messages for up to seven days. “It provides instant communication. You just have to push the button to talk and the connection is immediate,” Moore says. One of Zello’s newest features, Dispatch Hub, is a part of the paid subscription offered by Zello, intended for larger organizations who want to pool their driver dispatch. The Dispatch Hub enters incoming calls from drivers into a queue.

The main difference between Zello and Zello Work, which offers a variety of options for larger organizations, is the ability to access an administration console to manage users and channels centrally.

Dispatchers can respond to any call from this shared queue, replaying or discarding them, as needed. The dispatcher can also select a specific driver to talk to, without talking over other drivers or creating distracting conversation on a channel for others. The dispatcher also

June/July 2020 • Pavement Maintenance & Reconstruction • www.ForConstructionPros.com/Pavement

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The Zello app requires virtually no training. The user taps on a contact name or channel, presses and holds the push-to-talk button, and releases the button when finished talking.

can send a message to all drivers at the same time. Photos and texts can be sent individually or to a group along with voice messages, and dispatchers can locate drivers on a map.

Zello Work Subscription The main difference between Zello and Zello Work is the ability to access an administration console to manage users and channels centrally. “Zello Work features a variety of options for large organizations,” Moore says. Where Zello generally allows only one person to talk on a channel at a time, the Dispatch Hub feature places callers into a queue and records any calls so the dispatchers can listen back to what they missed or replay a message if they need to confirm something such as an address. Zello Work is best for companies with more than 20 employees because, according to Moore, “smaller companies can often get by just fine with the free Zello version.” With Zello Work, contractors create a private network on a dedicated server. Using a web-based management console, contractors configure the system to their needs, including showing user status and tracking drivers. Real-time mapping is included with the basic app, but for an additional fee, contractors can add Google maps and traffic data. Other add-on services include a dedicated emergency alert button that sends audio, text, and location to a specified emergency channel, and a message vault that stores and makes available all voice messages, photos and texts.

The Value of Voice “Voice is the most natural way to communicate,” Moore says. “In just a few seconds, you can learn a lot from someone’s voice including how old they are, their mood, tone, urgency of their message and more – all things you really can’t pick up from a text. And it happens in seconds with the voice. “It’s an excellent way to coordinate people and breed trust and build relationships. It’s important socially, with teams of people and drivers on Zello channels who are really connected to their peers – otherwise they are isolated.” This is a subject Zello that is currently the basis of an internal research project. “When you put employees in touch with one another you have a higher level of retention because employees are happier. We’re going to do a study on that, but all indications are that voice connection reduces turnover, which is one of the biggest problems contractors have today,” Moore says. “Communication is the lifeblood of many businesses. You see traditional radios everywhere you look. This is a modern, more convenient and powerful version of that.”

Construction Biggest Market According to Moore, the company has 140 million registered users worldwide and is growing at the rate of 1 million new users each month. Roughly one-third of registered users use the app for work, and 40% of the free work-based users are drivers. Approximately 2,000 customers are using the Zello Work subscription product. Moore says construction is the single biggest market, and the biggest users are driver dispatch and what Moore terms “work teams,” such as construction crews, retail teams and hospitality industry workers. He says current users include hundreds of large ready mix and asphalt companies. According to Moore, Zello Work is popular in the construction industry partly because users pay only per person and per day. “You only use it when you need it, so it’s ideal for seasonal work,” Moore says, adding it is especially used by quite a few snow removal contractors who want to keep in direct contact with operators in poor weather conditions. The Zello app also integrates with other systems. For example, it is used as part of Trimble Construction Logistics Division’s TrimFleet Suite.

www.ForConstructionPros.com/Pavement • Pavement Maintenance & Reconstruction • June/July 2020

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5/26/20 4:40 PM

NAPSA

Certified Sweeping Company 2.0 Launched!

WSA

What's Next After COVID? by Ranger Kidwell-Ross

Many of you know that the North American Power Sweeping Association (NAPSA) has a Certified Sweeping Company (CSC) designation. What you may not know is how it will help sweepers, operators and customers alike in many ways. WHAT EXACTLY IS A CERTIFICATION? A certification is a third-party attestation of an individual or company’s proficiency in an industry profession. NAPSA has had its CSC program since 2004 but with the addition of the Power Sweeping Industry Standard (PSS2018) in 2018, it necessitated a change in the program to integrate those concepts. So, voila, introducing CSC 2.0! WHY IS A CERTIFICATION IMPORTANT? In the power sweeping industry, NAPSA certification means that the company operators and managers have had industry specific training on the Power Sweeping Standard, management operations and power sweeping vehicle operations. NAPSA’s SweeperSchool (www. sweeperschool.com) is the location for all power sweeping training. By completing training, companies and operators have increased efficiencies, typically greater level of responsibility and expanded skills. Quite frankly, it increases earnings capacity for the company and operators. Training of operators, managers or other staff members leads to happier employees who stick around longer which in return boosts productivity. Certified Sweeper Operator (CSO) is focused training for operators in the areas of parking lot and construction sweeping. To be a CSO, the operator must complete the online course, pass

a proctored exam and have at least 1,000 hours of incident free driving. Imagine what your insurance company will do when they find out that your drivers are CSO certified! A Certified Sweeping Manager (CSM) has taken the CSM courses which train managers and owners on the Power Sweeping Standard (PSS2018). This is important to the company because the PSS is your first line of defense in a lawsuit. If you aren’t following the PSS, download the standard today and find out exactly where your company vulnerabilities are. Certified Sweeping Companies have a competitive advantage if promoted. Having a CSC designation gives clients more confidence in your business which encourages greater peace of mind! This also transfers into protection for the customers asset. What a great way to build credibility so share your accomplishment with your customers. Put your CSC designation logo on your website. Be listed on NAPSA’s Contractor Locator as a CSC designated company. These are all great marketing tools. WHAT DO I HAVE TO DO TO BE CERTIFIED? To obtain a designation as a CSC, NAPSA members must annually train at least one Certified Sweeper Operator, at least one Certified Sweeping manager, adopt the Power Sweeping Standard (available at www. powersweeping.org) and complete the CSC application. The trainings plus your membership in NAPSA are the greatest way to increased protection and professionalism. Currently NAPSA is waiving the CSC fee for anyone wanting to become CSC. If you would like to take advantage of this opportunity, contact NAPSA at info@powersweeping.org or (888) 757-0130.

World Sweeping Association (WSA) is proud of the leading role we have taken in providing industry information confirming sweeping’s essential business status, as well as in helping contractors navigate an increasingly uncertain business climate safely. As of this writing, WSA continues to dialogue with the Centers for Disease Control on the importance of requiring sweeping on a nightly basis for all still-open retail establishments. This remains an uphill battle since, because the parking lot sweeping industry is conducted at night, it is largely invisible. In addition to our ongoing contacts with the CDC, FEMA and other agencies and news media, we have also provided handouts explaining why nightly sweeping should be mandatory, given all of the potentially infected masks, gloves and other materials being tossed by shoppers onto retail parking areas. An ongoing question during this time has been people wondering “When will things get back to the way they were?” The answer is, they will not. All manner of the way business is conducted is in a state of flux, with leaders in all sectors rethinking how their businesses and industries will be conducted. Although the demand for parking lot sweeping has remained reasonably strong in the early stages of the pandemic, there is no question that the shape of America’s retail sector will emerge from this crisis in a changed form. In planning for the future, I urge all sweeping contractors to consider the many possibilities for changes that may occur. As customers change, so must service providers. The changes most likely to affect the power sweeping industry are factors that WSA will be bringing to its membership via the WSA Member Updates emails we send to our members on the first and 15th of each month. Predicting the future is difficult. It’s even more so when you try to do it on your own.

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.

62 June/July 2020 • PAVEMENT • www.ForConstructionPros.com/Pavement

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5/26/20 4:42 PM

PCTC

COVID-19 Resources Available to Navigate the “New Normal” Many business owners face uncertainty surrounding the stay-at-home orders, travel restrictions and economic impact of this unprecedented COVID-19 event. PCTC can help by providing relevant and helpful resources for contractors and applicators. Take a look through the following tools from organizations including the U.S. Chamber of Commerce, Centers for Disease Control (CDC), Occupational Safety and Health Administration (OSHA) and more to learn how your business can prepare and adapt. The CDC Interim Guide for Businesses and Employers to Plan and Respond to COVID-19 showcases best practices for preparation in the age of the coronavirus. Crucial information includes guidelines on readying workplaces for an outbreak, reducing transmission among employees and

maintaining healthy business operations. For those who may be uncertain about where their state stands in terms of essential business practices and shelterin-place mandates, especially as these recommendations change over time, The MultiState Associates Guide to Stay-at-Home Orders: What is Considered an “Essential Business”? can serve as a clarifying tool. Organized by location and updated daily, the resource offers details on legislation passed at the state level and what these guidelines mean for business operations. Similarly, The MultiState Associates State and Local COVID19 Response Information outlines regulatory activity related to COVID-19 in addition to travel restrictions issued by state. The OSHA Guidance on Preparing Workplaces for COVID-19 contains health

For more about PCTC visit www.pavementcouncil.org.

recommendations for maintaining a safe environment for employees during the pandemic. OSHA also offers valuable insight about which jobs are classified at lower, medium or high exposure risk to help business owners make informed decisions about worker protection. For a more concise resource, explore the OSHA Alert to Prevent Worker Exposure to Coronavirus, which includes general practices for minimizing risk. In addition to following official recommendations, PCTC urges professionals to leverage health policies that promote the well-being of customers and employees. PCTC’s Establishing a Policy on Reducing the Spread of Disease fact sheet guides owners through crafting a sound wellness plan to help applicators feel secure within their own companies and communities.

www.ForConstructionPros.com/Pavement • PAVEMENT • June/July 2020

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5/26/20 4:45 PM

Allan Heydorn, Editor

Pennsylvania’s Sweep A Lot Fills Local Service Gap Environmental concerns lead automotive technology instructor to start part-time business A FEW YEARS ago, Robert Vlacich’s son and his preschool classmates cleaned up a parking lot to celebrate Earth Day. “I thought that while it was great to do something like that, kids shouldn’t have to be cleaning up parking lots,” Vlacich says. And that might have been the genesis of his two-year-old, part-time sweeping company, Sweep A Lot in Montoursville, PA. Vlacich isn’t a rabid environmentalist, but his son’s Earth Day celebration and what he noticed on local parking lots got him thinking. “I love to hunt and hike, and while I’m not a crazy ‘tree hugger,’ I definitely worry about the environment. I love the outdoors,” he says. “My family and I love to vacation down at the Chesapeake Bay and the largest contributor to that bay is the Susquehanna River which runs right near where we live. The storm water issue is really important down there and I realized we’re contributing to whatever problems might be happening in the bay. “The simple fact is there’s trash everywhere you go, and it really looks terrible. I started noticing that not all places are like that and I got to wondering why that is.” His brother-in-law is a civil

engineer involved in storm water management, and Vlacich called his attention to some of the trash he saw regularly. “I think we were down at the Chesapeake Bay, as a matter of fact, and I was pointing out how all the parking lots there were clean compared to where we live. He said, ‘Well, these parking lots are swept.’ I just started thinking about that.”

No Local Sweeping Companies Vlacich investigated who was sweeping in the Montoursville area – and he discovered a gap. “Nobody really offers parking lot sweeping and when I saw that I saw an opportunity,” he says. “There are a few sweeping contractors servicing the area but they’re servicing it from quite a ways away. There’s nobody local.” He thought the fact that no one serviced the area locally could account for the state of local parking lots, partly because sweepers coming from a distance must spend on fuel and operator time. So he decided to start a local sweeping company. “There wasn’t really an ‘ahha’ moment. It was more an accumulation of thoughts over time,” he says. That accumulation of

thoughts led in 2018 to the purchase of a well-used Tymco 210 and suddenly Vlacich Robe was an owner/ marke rt Vlacich research t and st ed the sw eeping operator of there were arted Sweep A Lot after reali no local sw zing eeping co a sweeping mpanies. business. With fewer than a dozen accounts, he sweeps nights and Vlacich says he learned weekends, focusing on comhow to sweep parking lots mercial and industrial clients. “through trial and error,” which he says wasn’t that difficult and didn’t take him Automotive very long. He’s done quite a bit Background Helps of pounding the pavement and Currently Vlacich is not using knocking on doors in search Sweep A Lot as a “feed myself of clients. He joined the local or starve” business. He’s a fullChamber of Commerce and time instructor of automotive he says networking at their technology at Pennsylvania Colmeetings has helped. He’s also lege of Technology – so he has used direct-mail promotions to invaluable skills that enabled various lists, and currently relies him to buy an older sweeper on a Facebook page instead of he could fix. a website. “That was actually the He says his pricing is toughest part – getting the competitive and he’s flexible sweeper operating the way it enough so he can sweep should,” he says. “The truck whenever a client needs him. had all the manuals with it, He plans to begin working for which was lucky, and I read municipal customers and to them all start to finish to learn grow into a full-time company. all I could about the truck.” “I figure that storm water is He also did a lot of maintea big issue now and it’s going nance that had been deferred, to continue to be a big issue,” including adjusting the hydraulic he says. “There’s just going to system and getting the brooms be more and more emphasis set up in the right spots. He also on cleaning up storm water.” rebuilt the sweeper head and had a dust separator fabricated out of stainless steel.

June/July 2020 • Pavement Maintenance & Reconstruction • www.ForConstructionPros.com/Pavement

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5/27/20 1:52 PM

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 (920)-542-1302 | Fax: (920) 542-1133 | aheydorn@ACBusinessMedia.com PUBLICATION STAFF: Publisher: Amy Schwandt Associate Publisher: Cathy Somers Editor/Conference Manager: Allan Heydorn Art Director: April Van Etten Ad Production Manager: Cindy Rusch Audience Development Manager: Angela Franks ADVERTISING SALES: (800) 538-5544 Tom Lutzke, Eric Servais, Sean Dunphy, Amy Schwandt, Denise Singsime, Kris Flitcroft FORCONSTRUCTIONPROS.COM WEBSITE: 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.: Chief Executive Officer: Barry Lovette Chief Financial Officer: JoAnn Breuchel Chief Digital Officer: Kris Heineman Chief Revenue Officer: Amy Schwandt VP Audience Development: Ronda Hughes Group Content Director: Jon Minnick Director of Digital Operations & IT: Nick Raether Director of Digital Strategy: Joel Franke Group Content Director: Jon Minnick ADVISORY BOARD: Agua Trucks Inc., Wickenburg, AZ, Scott Duscher Asphalt Contractors Inc., Union Grove, WI: Robert Kordus Asphalt Restoration Technology Systems, Orlando, FL: Connie Lorenz Brahney Paving, Hillsborough, NJ: Steven Brahney Eosso Brothers Paving; Hazlet, NJ: Tom Eosso Maul Paving/Concrete/Sealcoating, PLainfield, IL: Chris Maul 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

Index Advertiser Index

PAGE

B & E Seal Coat Products, Inc.

Billy Goat Industries, Inc.

NEAL, a Division of Blastcrete Equipment

Boyd Equipment & Supply

Buffalo Turbine

Calculated Industries

Carlson, an Astec Industries Company

Crafco Inc.

21, 31

Cretex Seals

Dynapac North America

EZ-Liner

Graco

HOG Technologies

IGNITE Construction Summit

Keystone Engineering & Mfg. Inc.

Keystone Plastics

KM International

2, 10

LaserLine Manufacturing Inc.

Limntech Scientific, Inc.

Mesabi Tool Co.

Mr. Manhole System

MRL Equipment Co.

National Pavement Expo

Neyra

Old Dominion Brush Co.

Paynes Parking Designs Inc.

RAE Products & Chemicals Corp.

Rubberform

Schwarze Industries, Inc.

SealMaster

Star Inc.

Unique Paving Materials

VT LeeBoy, Inc.

Weiler Products

Wirtgen America Inc.

Get fast, relevant product information in the Buyers Guide at

ForConstructionPros.com

www.ForConstructionPros.com/Pavement • Pavement Maintenance & Reconstruction • June/July 2020

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5/26/20 4:53 PM

Tailgate Talk | Brad Humphrey

Shortening "Time Wastes" on the Job WITH ALL OF our “re-start” reasons, some due to normal seasonal start-ups and some imposed on us thanks to the COVID-19, it’s about that time of year when a few of the past time wastes reintroduce themselves into our crews’ work efforts. Lean Construction calls one of their seven wastes, “Waiting,” as one of the biggest costs experienced by contractors. When I speak of “waiting,” I’m literally suggesting things that can cause our workers to wait, including: • Equipment breakdown • Employees late to work • Gassing up vehicles/putting water in roller • Late delivery of materials • Job-site not accessible or prepared • Owner didn’t unlock premises • Emptied out current inventory of supplies • Employee forgot important tool or equipment • No directions to jobsite • Crew waiting for supervisor to return from lunch While the reasons can vary from day to day, the costs incurred remain painfully consistent. You can never replace lost time. “Downtime” in construction costs you, the contractor, money and is not recoverable from the customer. What are the costs of waiting workers? Well, let’s cost-out one situation. Consider a paving contractor who suddenly finds

his five-person crew without asphalt to lay. A mix-up in the directions given to the driver left the crew is standing around for one hour. Let’s calculate what the cost might be for five workers standing around for one hour. 5 Workers × 1 Hour Waiting = 5 Man-Hours Waiting Average Hourly Rate = $30.00 Per Hour (Fully Burdened Rate) 5 Hours × $30 Per Hour = $150 Our cost for having labor waiting on materials is $150. Are there other costs? That depends on the step in the process. For example, if the crew needed this missing material to finish out a section, the hour wait might result in a visible longitudinal joint. You might think that one mistake costing $150 is no big deal. And you’re right, if this only happened once…in the year. But, we know that’s not realistic. Unfortunately, the reasons workers might be forced to wait can shift for one reason or another, leaving employees waiting around for five minutes here and 15 minutes there. Another wasteful time for workers to experience is due to lack of planning or organizing. Let’s imagine that 10 employees spend 60 minutes a day looking for “stuff.” The “stuff” could be brooms, brushes, tips, directions, cell numbers, rake, spade, safety tape, time cards etc. Let’s

calculate the average cost of waste for one year of those 10 employees, still earning $30 an hour. 10 Employees × 60 Minutes/Day × 300 Work Days/ Year = 180,000 Minutes/Year 180,000 Minutes/Year ÷ 60 Minutes/Hour = 3,000 Total Man-Hours/Year 3,000 Man-Hours/Year × $30/Hour = $90,000/Year That’s $90,000 in less profits for the year. While this amount may not be terribly great for some contractors, it is still a cost that is paid due to poor organization and planning. (The 60 minutes that each worker spends looking for “stuff” is conservative. Some estimates are closer to 90 minutes per day. Office workers can spend up to two hours per day looking for… lost files, information on the internet, the boss etc.) We can only imagine what all of the waiting around is robbing from our organization. Contractors must do a better job of not only providing clearer direction and instruction but also involving their workers in learning how to determine direction for themselves. These techniques will help: • Develop a Weekly “Look Ahead” Schedule. This tool should identify what jobs will be performed, what resources will be needed, what day the work will be performed, and who will be completing the work.

• Conduct Daily “Huddles.” Begin each day with a 5-15 minute informational meeting. This also acts as a verbal daily planner. • Job Cost & Track Performance. This will help you to improve performance and keep more workers educated about what they are doing, what they will need to do it, and how they will go about doing it. • Create Job Tools & Materials List. The document should itemize every tool and material needed to complete the intended job. • Make Preventive Maintenance a Company Priority. Put all your equipment and vehicles on a preventive maintenance schedule and watch how much more work gets completed. • “Stage” Your Job-Site at the End of Each Day. Getting the job or work site ready for the next day’s performance will save you time the following morning and warn you if you are missing anything. Brad Humphrey, Pavecon’s Vice President of Human Resources & Employee Development, is known throughout the industry as The Contractor’s Best Friend. In addition to reading Brad’s articles and subscribing to his e-newsletter, be sure to listen to The Contractor’s Best Friend podcasts, sponsored by Caterpillar and AC Business Media at www. forconstructionpros.com.

June/July 2020 • Pavement Maintenance & Reconstruction • www.ForConstructionPros.com/Pavement

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5/26/20 4:57 PM

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