Aggregates Manager January 2019 by Sandy Turner Jr

Problem solving PG3 | Rock to rail PG15 | Facts matter PG28

Your guide to profitable production

January 2019 | www.AggMan.com

Forecast 2019

Sunny with a Hint of Clouds

20 10 tips for your tires 24

Get a first look at Catâ&#x20AC;&#x2122;s MD6200 drill

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Metso updates its Lokotrack LT200HP cone crushing plant.

PAGE 6 On Our Cover: The forecast for 2019 is sunny with a touch of clouds. Cover photo by Kerry Clines.

From proper storage to air pressure, the right care for your tires will increase their longevity.

PAGE 20

TABLE OF CONTENTS JANUARY 2019 |

VOLUME 24, NUMBER 1

FEATURE ARTICLES

8 Mostly Blue Skies Ahead

Respondents to this year’s annual forecast survey say the industry remains strong but note pockets of weakness.

COLUMNS & DEPARTMENTS 3 Editorial Collaborative problem solving.

20 Don’t Tread Lightly on Maintenance

4 Data Mining The latest financial analysis of issues impacting in the industry and Aggregates Manager’s exclusive aggregates industry outlook.

Look: Cat’s new MD6200 24 First Rotary Blasthole Drill

6 RollOuts McCloskey International’s new All-Terrain Stackers, and other new equipment for the aggregates market.

Proper tire maintenance keeps your machines on the move and profitable.

Designed for ease of transport, this drill is the only machine in the market to have the negative angle or pre-split ability.

28 Rock Law When it comes to proving a citation, appeals courts find that MSHA must support its factual findings with actual facts. 30 Advertiser Index See who’s who and where to find their products.

OPERATIONS ILLUSTRATED

From Rock to Rail

Rail access can expand a producer’s market area but requires careful weighing.

31 Classified Ads Aggregates industry classifieds. 32 Carved in Stone Turn the saying “if it’s not grown, it’s mined” on its head by better understanding plant nutrition.

January 2019

EDITORIAL

Vol. 24, No. 1

by Therese Dunphy, Editor-in-Chief, tdunphy@randallreilly.com

aggman.com /AggregatesManager /AggManEditor

Editorial Editor-in-Chief: Therese Dunphy Editorial Director: Marcia Gruver Doyle Senior Editor: Kerry Clines Online Editor: Wayne Grayson editorial@aggman.com

Design & Production Art Director: Sandy Turner, Jr. Production Designer: Timothy Smith Advertising Production Manager: Leah Boyd production@aggman.com

Construction Media Vice President, Construction Media: Joe Donald sales@randallreillyconstruction.com

3200 Rice Mine Rd NE Tuscaloosa, AL 35406 800-633-5953 randallreilly.com

Corporate Chairman Emeritus: Mike Reilly President and CEO: Brent Reilly Chief Operations Officer: Shane Elmore Chief Financial Officer: Kim Fieldbinder Senior Vice President, Sales: Scott Miller Senior Vice President, Editorial and Research: Linda Longton Senior Vice President, Acquisitions & Business Development: Robert Lake Vice President of Events: Stacy McCants Vice President, Audience Development: Prescott Shibles Vice President, Digital Services: Nick Reid Vice President, Marketing: Julie Arsenault

For change of address and other subscription inquiries, please contact: aggregatesmanager@halldata.com.

Aggregates Manager TM magazine (ISSN 1552-3071) is published monthly by Randall-Reilly, LLC copyright 2019. Executive and Administrative offices, 3200 Rice Mine Rd. N.E., Tuscaloosa, AL 35406. Subscription rates: $24 annually, Non-domestic $125 annually. Single copies: $7. We assume no responsibility for the validity of claims of manufacturers in any advertisement or editorial product information or literature offered by them. Publisher reserves the right to refuse non-qualified subscriptions. Periodical circulation postage paid at Tuscaloosa, Alabama and additional entries. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by an information storage retrieval system, without written permission of the copyright owner. POSTMASTER: Send all UAA to CFS. (See DMM 507.1.5.2); NON-POSTAL AND MILITARY FACILITIES: send address corrections to Aggregates Manager, 3200 Rice Mine Road N.E., Tuscaloosa, AL 35406.

Collaborative Problem Solving

ood help is hard to find. This is not a new problem, nor an insignificant one. For the third year in a row, respondents to our annual forecast survey said it was their most common challenge in the workplace. Three in 10 describe worker retention as a major problem, while an additional four in 10 describe it as a minor problem. In total, 70 percent of industry respondents struggled with the labor issue during the last year; a fact corroborated by the thousands of industry job postings on Linkedin. So, what’s the solution? Operators shared a number of different approaches with us, ranging from attending job fairs to using contract labor to fill the gaps. Several themes emerged, however. The first is that in the current environment of extremely low unemployment, the aggregate industry — like many others — must consider higher wages as part of the solution. Next, a number are providing better benefits and incentive pay. Finally, a handful of operators are focusing on worker training, internships, and apprenticeship programs to grow expertise within their ranks. These developmental types of programs could be particularly effective with millennials. While this age group has traditionally been viewed as more difficult to engage and employ, there is a segment of the generation who doesn’t care to work in an office environment and prefers the outdoors. They also thrive on attention and seek development. Apprenticeships and worker training opportunities may lead to a good match with potential equipment operators and truck drivers, while internships offer a more traditional path for engineering and business students. Another demographic worth greater scrutiny is women, who are playing an increasingly prominent role within the industry. According to our forecast survey, nearly one in four respondents reported an increase in the number of female personnel found within their companies. This is a trend that some companies are wisely nurturing. For example, The Shelly Co., a CRH Company, hosted its first Women@Shelly forum. Its goal? To create an opportunity for women in all lines of its business to collaborate and discuss ways to make the business better and the work environment ideal for everyone. In the United Kingdom, Aggregate Industries has invested in a diversity and inclusion program to ensure a more balanced workforce, specifically by attracting more women to the workplace. Its workforce is made up of 16 percent females, but it has a goal of reaching 20 percent employment in this category by 2020 and 30 percent by 2030. What works for you? Take a moment to share recruitment strategies and demographic segments that are working for your operation or company. Simply send an email to therese@aggman.com, and I’ll follow up with you for more details. Let’s find a solution for this industry-wide problem by working together. AM

AGGREGATES MANAGER / January 2019

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AGGREGATE SYSTEMS

CRUSHING • SCREENING • WASHING

mining

Company Cemex, S.A.B. de C.V.

Diesel Fuel

Prices 12/3/18

United States $3.207 One Week -0.054  One Year +0.285

New England $3.310 One Week -0.034  One Year +0.413 

Central Atlantic $3.394 One Week -0.053  One Year +0.332 

Lower Atlantic $3.098 One Week -0.047  One Year +0.304 

Midwest $3.117 One Week -0.068  One Year +0.240 

Gulf Coast $2.989 One Week -0.046  One Year +0.276 

Rocky Mountain $3.291 One Week -0.048  One Year +0.272 

West Coast $3.694 One Week -0.045  One Year +0.321 

West Coast less California $3.406 One Week -0.049  One Year +0.300 

California $3.922 One Week -0.042  One Year +0.337  Source: U.S. Energy Information Administration (dollars per gallon, prices include all taxes).

$4.89 

$4.47

52-Week High $8.51

CRG

$26.68 

$25.31

$37.68

EXP

$67.40 

$64.95

$122.49

Granite Construction Inc.

GVA

$46.49 

$39.51

$68.58

HEI

$65.32 

$62.22

$109.50

$8.82 

$8.10

$12.59

HCMLY

Martin Marietta Materials, Inc.

MLM

$185.05 

$150.75

$241.33

MDU Resources Group, Inc.

MDU

$26.50 

$24.29

$29.62

Summit Materials

SUM

$13.40 

$11.67

$34.06

United States Lime & Minerals, Inc.

USLM

$74.50 

$70.56

$85.95

U.S. Concrete

USCR

$36.27 

$27.68

$86.35

Vulcan Materials Co.

VMC

$100.56 

$82.52

$141.20

Source: Wall Street Journal Market Watch. Currency conversion calculated on date of close 12/5/18.

COMPANY SPOTLIGHT

East Coast $3.229 One Week -0.048  One Year +0.325 

52-Week Low

Eagle Materials Inc.

LafargeHolcim Ltd. ADR

U.S.

Current Value

CRH plc

HeidelbergCement AG

On-Highway

Ticker

ranite Construction Inc. (GVA) reported third quarter net income of $55.7 million or $1.17 per diluted share, compared to net income of $46.0 million or $1.14 per diluted share in the comparable prior year period. This is an increase of 21.1 percent. Third quarter and year-to-date 2018 results include after-tax acquisition-related expenses of $11.7 million and $43.4 million, respectively. Excluding these expenses, third quarter adjusted net income was $67.4 million. “In 2018, Granite has executed our strategy to develop a leadership position as America’s Infrastructure Company,” said Granite Construction Inc. (GVA) Granite President and CEO James H. Roberts, in a press release. “Acquisitions have helped us to deliver profitable geographic and end-market diversification, and this action highlights the significant opportunities we have to expand Granite’s platforms for growth in the new Transportation, Water, Specialty, and Materials segments.” In Granite’s Materials segment, third quarter revenue increased by 32.1 percent to $128.6 million, compared with $98.1 million last year. Year-to-date 2018 revenue increased 30.4 percent to $276.3 million, compared to $211.8 million last year. The quarterly gross profit improved 9.9 percent to $21.3 million, while the gross profit margin fell from 19.8 percent in 2017 to 16.4 percent in 2018. The company attributed the quarterly and year-to-date revenue and profit growth to improved external demand across most markets. “Our focus has remained intent on improved profitability this year, and our teams, new and old, have delivered,” Roberts said. “Demand for projects across all segments of our business remains strong as we maintain our deliberate emphasis on improved pricing. Increased pricing is creating solid bottom-line improvement, while having an expected, near-term impact on project win rates, most notably transportation projects. Transportation demand continues to strengthen, fueling expected growth in project bookings and revenues that, coupled with our ongoing pricing discipline, will spur improved segment margin performance for quite some time.” In December, Granite Construction also announced that its wholly-owned subsidiary, Kenny Construction Co., was awarded a $46 million contract by the city of Chicago for the Navy Pier Flyover’s Lakefront Trail Project Phase III. Construction was scheduled to begin in December 2018 and conclude in summer 2020. Source: Market Watch

Data

STOCK REPORT

AGGREGATES INDUSTRY OUTLOOK The December Aggregates Industry Index registered its largest decline in more than two years, falling 7.75 percent from November to 120.56. This month’s response period fell as the Dow Jones Industrial Average dropped nearly 800 points in early December and many publicly held aggregates companies traded near their 52-week lows. Respondents reported significant declines in the outlook for monthly sales (-12.6 percent) and annual sales (12.49 percent).

Aggregates Industry Outlook 150 138.44

145

134.72

140 135

120

130.68

138.89

130 125

136.65

134.94 132.22

135.83

120.56

132.73

130.86

129.35

115 110 105 100 Jan. 2018

Feb. 2018

March 2018

April 2018

May 2018

June 2018

July 2018

Aug. 2018

Sept. 2018

Oct. 2018

Nov. 2018

Dec. 2018

Along with a strong and growing economy, so has our sales and demand for construction-related products in all seven of the markets that we produce and market in. With lower fuel prices and a growing economy, projections for construction-related products look very positive for 2019. — Van Stockstill, President, Consolidated Aggregates

Still awaiting the federal infrastructure package, which will help solidify the future. — Bill Schmitz, Vice President — Quality Control and Sales, Gernatt Asphalt Products, Inc.

It seems the weather has impacted sales this fall more than years in the past. While weather is always used as an excuse, this year it seems to be a sincere reason why business has just been neutral. — Ray Mack, Sales Manager, Carmeuse Lime & Stone

As the year ends, we have seen an increase in new machine quotes and acquisitions. Customers have also increased maintenance and repair spending to prep for an anticipated strong first half 2019. — Jason Hurdis, Senior Market Professional, Caterpillar

Editor’s note: To join our panel, email Editor-in-Chief Therese Dunphy at tdunphy@randallreilly.com.

VALUE OF CONSTRUCTION PUT IN PLACE, SEASONALLY ADJUSTED ANNUAL RATE 10/1/2018

9/1/2018

% change Oct. 2018 - Sept. 2018

Residential

545,066

547,638

-0.5

1.7

Non-residential

763,782

763,168

0.1

7.3

Type of Construction

% change Oct. 2018 - Oct. 2017

Office

76,024

73,569

3.3

14.8

Commercial

88,686

88,886

-0.2

1.6

Health Care

42,400

42,418

0.0

-1.0

Educational

98,891

96,805

2.2

9.0

Transportation

53,458

54,024

-1.0

12.5

Power

99,357

101,564

-2.2

8.7

Highway and Street

94,790

94,851

-0.1

5.2

Sewage and Waste Disposal

22,222

22,483

-1.2

7.6

Manufacturing

67,102

67,882

-1.1

2.6

Seasonally adjusted annual rate. (Millions of dollars. Not all sub-categories of non-residential construction are included.) Source: U.S. Census Bureau.

ROLLOUTS

Your complete guide to new and updated equipment and supplies in the aggregates industry.

by Therese Dunphy | Editor-in-Chief | tdunphy@randallreilly.com

Updated crushing plant lowers fuel consumption Metso updated its Lokotrack LT200HP mobile cone crushing plant. Designed for secondary and tertiary crushing, it now features a direct v-belt drive from the gearbox which delivers fuel consumption savings of an estimated 15 percent compared to hydraulic-driven cone crushers. In addition, the plant boasts several safety and maintenance improvements, including elevated service platforms to ensure safe, easy access to service and maintenance points and improvements that make daily maintenance quicker and easier. The crusher is available with the Metso ICr wireless information and control system, which allows customers to monitor and control the crushing plant from an excavator cabin.

Metso Corp. | www.metso.com

Truck expands ADT lineup The Cat 740 GC articulated dump truck re-introduces the 40-ton size class to its lineup. The new model includes features found in other models of the ADT line, including new controls, transmission-protection features, hoist-assist system, advanced traction-control system, stability-assist system, and a fuel-saving ECO mode. The truck also incorporates the latest automatic retarder-control system, which eliminates the need for operator input and improves operating efficiency. It also features a ‘wait-brake’ which temporarily applies the service brakes during pauses in the work cycle to reduce operator fatigue. The cab features the new ‘external spinal-ROPS’ found in other Cat ADTs, while a lighting system, controlled via a ground-level switch, illuminates the cab’s entry steps and hitch area as part of the ‘wake up’ feature. Optional Cat Connect Payload technology calculates payload via sensors on the walking-beam suspension and includes load-status lights at all four corners of the cab roof to ensure visibility to the loader operator from any angle.

Caterpillar | www.cat.com

RDT tires can handle larger loads Michelin North America, Inc. introduces the Michelin XTRA Load, the first ‘3-star’ 18.00R33 tire on the market for rigid dump trucks. A star rating is the industry’s indicator of load capacity for a given dimension as defined by the Tire and Rim Association. This means operators can increase load capacity by 11 percent or accommodate more distance per hour to maximize productivity. Available in two surface rigid dump truck applications, the Protect version is for hard, sharp, abrasive conditions on flat, dry services, where the priority is protection and damage resistance. The Grip version is for soft, loose, muddy ground conditions in mining and quarrying operations on slopes and inclines where the priority is high grip and traction.

Michelin North America, Inc. | www.michelinman.com

AGGREGATES MANAGER / January 2019

Stacker boasts stability and mobility McCloskey International adds All-Terrain Stackers to its lineup. Blending the benefits of onsite track mobility with the productivity of a radial conveyor, the stackers allow the conveyor to switch from track mode to radial in seconds. Designed for use in any terrain, the 60- to 150-foot stackers can be moved from site to site without the need to remove the wheels for transport. Instead, the wheels can be folded. Built-in leveling indicators allow operators to position the stacker regardless of ground evenness, with independent hydraulic jack legs to stabilize once in place. The stackers feature a unique rear counterweight that counter balances the tracks and wheels, which are behind the stackerâ&#x20AC;&#x2122;s center of gravity. This design is said to allow a much higher stockpile capacity with the radial wheels well set back. McCloskey International | www.mccloskeyinternational.com

Control helps stop plugged chutes Conveyor Components Co.â&#x20AC;&#x2122;s Model DLC is a flush-mount, pressure-activated, diaphragm-style level control and plugged chute detector. Available in either a heavy-duty rubber diaphragm or a 302 stainless-steel diaphragm, it has two dry (unpowered) 15-amp microswitches that activate when material within the bin or chute presses upon the diaphragm face. Designed to be mounted on the vertical side wall of the bin, hopper, or chute, it may also be mounted on the sloped portion of the chute as long as material flows freely and does not bridge. It can also be used as a high-level switch, a low-level switch, or a plugged chute detector, and can operate as a material presence control on a conveyor belt or a high-level indicator above a crusher box.

Conveyor Components Co. | www.conveyorcomponents.com

Portable screen plant sets up quickly Haver & Boecker launches the Tyler F-Class portable plant, which includes several new technologies to improve setup time and extend equipment longevity in quarry operations. The plant features a new custom-built chassis equipped with six hydraulic run-on jacks that quickly level the plant, eliminating the need for cribbing while ensuring the chassis stays level during operation to minimize wear. A new bolted-on suspension can be removed during operation to eliminate the risk of damage, and the chassis is sandblasted and coated with a heavy-duty finish for optimal wear life and rust resistance. It offers up to three screen decks. The feed conveyor, cross conveyor, and fines conveyor are hydraulically operated. The vibrating screen has a double eccentric shaft design, supported by four doublespherical roller bearings. The plant is said to be able to be set up in less than 30 minutes, with takedown requiring less than 20 minutes.

Haver & Boecker Canada | www.havercanada.com

Lightweight coating dispensing system Sulzer Mixpac USA, Inc. offers the MIXPAC MixCoat cartridge-based system for mining applications, such as applying abrasion-resistant coatings on pipes and transportation equipment, bores, walkways, and conveyor equipment. It is a portable pneumatic dispensing system for small volume applications, touch-ups, and repairs. It is said to be lightweight and require minimal time for set up, clean up, and breakdown. Paired with the DPS Spray Dispenser for maintenance and repair projects, the complete MixCoat Spray system includes cartridges containing the packaged coating material, a mixer that ensures consistent coating mix, and the pneumatic operated spray.

Sulzer Mixpac USA, Inc. | www.cox-applicators.com

AGGREGATES MANAGER / January 2019

INDUSTRY FORECAST by Therese Dunphy | Editor-in-Chief | tdunphy@randallreilly.com

More than half of survey respondents anticipate an excellent or very good year in 2019.

Mostly Blue Skies Ahead The industry remains strong overall, but some segments anticipate declines.

n terms of overall results, 2018 proved to be another strong year for the aggregates industry. More than half of respondents (50.7 percent) to the 2018-2019 Aggregates Manager Forecast Survey indicated that business in 2018 was either excellent or very good. And, more than four in 10 respondents said they had higher production volumes this year than during 2017.

AGGREGATES MANAGER / January 2019

This is very good news, but is only part of the industry’s overall economic story. At the other end of the spectrum, nearly 18 percent of respondents described business as fair or poor — an increase of more than 8 percent over the last year’s results. In addition, the percentage of respondents who said they had lower production volumes nearly tripled that of last year. These are indications that,

while the majority of producers continue to thrive, some operators may be experiencing a substantially different business environment.

2018 business ratings For the vast majority of respondents, 2018 was a strong year; 11.7 percent described it as an excellent year, 39 percent said it was very good, and

2018 Business Rating Trends Excellent

Very Good

Good

Fair

Poor

2004

10.40%

32.40%

41.70%

11.60%

3.90%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

12.40%

29.70%

36.60%

17.40%

3.90%

12.90%

32.20%

35.90%

15.10%

3.90%

6.60%

18.60%

35.70%

28.50%

10.50%

2.30%

9.80%

30.30%

35.80%

21.80%

2.90%

7.20%

23.90%

38.80%

27.30%

1.60%

11.20%

22.40%

38.40%

26.40%

5.70%

13.20%

24.50%

34.90%

21.70%

6.90%

10.90%

32.70%

37.60%

11.90%

3.80%

21.90%

37.10%

30.50%

6.70%

8.90%

26.60%

40.30%

20.20%

4.00%

12.00%

23.20%

45.40%

15.70%

3.70%

11.10%

28.90%

36.30%

20.00%

3.70%

11.10%

36.80%

42.70%

8.50%

0.90%

11.70%

39.00%

31.50%

13.00%

4.80%

15.10%

35.60%

39.70%

8.20%

1.40%

2019 (forecast)

Due to rounding, all numbers may not equal 100 percent of respondents. Source: Aggregates Manager Forecast Studies

Business conditions in 2018 skewed slightly higher — and lower — than predicted last year. Nearly 5 percent more respondents reported excellent or very good business ratings than anticipated in last year’s forecast, while almost 7 percent more reported fair or poor conditions than predicted. As a result, those reporting a good year shrunk from a forecast of 42.7 percent to an actual result of 31.5 percent. Looking ahead, respondents anticipate a resurgence in the center, with nearly 40 percent who called for a good year. Growth is also expected at the high end, with more than 15 percent predicting an excellent year and a significantly smaller percent (1.4) anticipating poor business results in 2019. another 31.5 percent said it was good. At the other end of the spectrum, however, a growing percentage of respondents gave less positive business ratings with 13.0 percent who described 2018 as fair and another nearly one in 20 (4.8 percent) who categorized it as poor — the highest percentage to opt for the most negative results since 2013. Despite increases in the lowest two business rating options, 2018 results are a far cry from those experienced during 2008-2013. In generalities, large producers fared better than small producers. Those producing more than 5,000,000 tons per

year reported excellent (15.0 percent) or very good (50.0 percent) results; approximately the same percent opting for the top two categories last year. Those who produce more than 3 million but less than 5 million tons per year were also quite positive — 7.7 percent reported excellent business ratings and 61.5 percent categorized 2018 as very good. Conversely, small operators — those who produce less than 500,000 tons per year — were the most likely to report fair (22.2 percent) or poor (9.3 percent) business ratings. This is more than double the percentage of small producers who reported business results

at the lower end of the spectrum in last year’s survey. By commodity, sand and gravel producers were the most likely to report excellent (13.3 percent) or very good (40.0 percent) results in 2018. They were followed by producers of crushed stone & sand and gravel with a combined 53.1 percent who reported excellent or very good results, and crushed stone producers with a total 48.7 percent who indicated excellent or very good results. From a regional perspective, operators in the Northeast were once again the most likely to report strong business AGGREGATES MANAGER / January 2019

INDUSTRY FORECAST Aggregate Production Volumes

2018 v. 2017 Increased:

43.9%

Stayed the same:

39.0%

Decreased:

17.1%

Average increase: 20.9% Average decrease: 20.5%

Regional Production Results: Northeastern Region

2014 2015 2016 2017 2018 2019* Regional Production Results: Northeastern Region Increased Increased Increased Increased Increased Increase 78.9%

54.5%

12.4%

52.6%

50.0%

Increased about the same

50.0% 42.9%

50.0% 46.4%

Stayed Decreased about the same 0.0%

about about 45.9% the same the same 9.1% 18.8%

Stayed Decreased

36.4%

68.8%

Stayed Decreased about the same 0.0%

Stayed Decreased about the same 7.1%

Stay Decrease about the same 3.6%

Decreased 5.5%

Decreased

Decrease

18.8%

0.0%

7.1%

3.6%

2014 2015 2016 2017 2018 2019 * Stayed Stayed Stayed Stayed Stayed Stay 78.9% 21.1% 21.1%

Decreased

0.0%

48.6%12.4% 54.5% 36.4% 68.8%

9.1%

52.6% 47.4% 47.4%

42.9%

Increase about the same

46.4%

Regional Production Results: North Central Region

2019 Forecast v. 2018 Increased:

48.6%

Stayed the same:

45.9%

Decreased:

5.5%

Average increase: 21.1% Average decrease: 12.5% Source: Aggregates Manager 2018-2019 Forecast Study

2018 Work Force Trends Decreased:

15.1%

Increased: Stayed the same:

37.0%

47.9%

Regional Production Results: North Central Region

2014 2015 2016 2017 2018 2019*

Regional Production Results: North Central Region

Increased

Increase

56.4%

48.2%

25.7%

42.4%

40.6%

43.2%

Increased about the same

42.4% 51.5%

40.6% 45.9%

43.2% 51.4%

Stayed Decreased about the same 6.1%

Stayed Decreased about the same 13.5%

Stay Decrease about the same 5.4%

2014 2015 2016 2017 2018 2019 * Stayed Stayed Stayed Stayed Stayed Stay 56.4% 30.8%

48.2% 44.4%

25.7% 54.3%

Stayed

the same 12.8%

the same 7.4%

the same 20.0%

Regional Production Results: Region Decreased Decreased Decreased about about Southern about

54.3%

45.9%

Increase about the same

30.8%

44.4%

Decreased

Decrease

Increased

Increase

Increased Stayed about 69.8% the same

Increased Stayed about 46.3% the same

Increased Stayed about 49.0% the same

Increased Stayed

Increased Stayed about 38.0% the same

about Decreased the same

Decreased

Decrease

4.6%

7.4%

15.7%

10.3%

24.0%

4.0%

Regional Production Results: Southern Region

51.5%

Increased about the same

51.4%

2014 2015 2016 2017 2018 2019 Regional Production 12.8% 7.4% 20.0%Results: 6.1%Southern 13.5% Region 5.4% * 69.8% 2015 46.3% 2016 49.0% 53.8% 38.0% 2019 58.0% * 2014 2017 2018 25.6% Stayed 25.6% 4.6%

46.3% Stayed 46.3% 7.4%

35.3% Stayed

35.3% 15.7%

about 53.8% the same 35.9% Stayed

35.9% 10.3%

Increase Stay

38.0% Stayed

about 58.0% the same 38.0% Stay

38.0% 24.0%

38.0% 4.0%

about Decrease the same

Regional Production Results: Western Region

While the percentage of respondents who grew their workforce in 2018 remained nearly even with 2017, the percentage of those who downsized their ranks more than tripled to 15.1 percent. The workforce categories most likely to grow included equipment operators and hourly labor. In contrast, employment among service and maintenance personnel declined by nearly 10 percent. Nearly one in four (23.3 percent) respondents reported an increase among women in the workplace throughout 2018.

2014 2015 2016 2017 2018 2019*

Regional Production Results: Western Region

Increased

Increased Stayed about 27.3% the same

Increased Stayed about 62.1% the same

Increased Stayed about 35.5% the same

Increased Stayed about 46.2% the same

Increased Stayed about 50.0% the same

about Decreased the same

Decreased

13.6%

10.3%

19.3%

62.1% 2016 35.5% 46.2% 27.3% 2015 50.0% 2019 39.3% * 2017 2018 2014 59.1% Stayed

59.1% 13.6%

*Forecast figures Source: Aggregates Manager 2018-2019 Forecast Study

AGGREGATES MANAGER / January 2019

Increase

27.6% Stayed

27.6% 10.3%

45.2% Stayed

45.2% 19.3%

50.0% Stayed 50.0% 3.8%

Increase Stay

32.1% Stayed

about 39.3% the same 50.0% Stay

32.1% 17.9%

50.0% 10.7%

Decreased

Decrease

about Decrease the same

Source: Aggregates Manager Forecast Studies 3.8% 17.9% 10.7%

Major Challenges Facing Aggregates Managers 2014

2015

2016

2017

2018

Competition for Sales

Aggregates Availability /Permitting

Retaining Workers

Regulatory Compliance

Regulatory Fines

Water Availability

Community Relations

13.7% 17.7%

15.7%

20.4%

17.7%

15.3%

16.7% 15.7%

9.7%

6.5%

6.5% 4.8%

2.8% 4.6%

Safety

17.0% 17.0%

19.3% 14.1% 5.9%

5.2% 4.4%

12.8% 21.4%

29.1% 19.7% 8.5%

4.3% 6.8%

Safety

13.0% 16.4% 30.1% 13.0% 4.1%

6.2%

11.0% Safety

1.6%

2.8%

3.0%

1.7%

2.1%

Environmental issues *

8.9%

10.2%

7.4%

*Category added in 2014.

9.4%

11.0%

Source: Aggregates Manager Forecast Studies

For the third straight year, worker retention was the most commonly cited major concern for survey respondents. It was the top challenge for three of four regions: South (44.0%), West (25.0%), and North Central (16.2%). In the Northeast, however, it was reported as the areaâ&#x20AC;&#x2122;s second highest challenge in 2018. Instead, aggregates availability and permitting (32.1%) remained the most significant challenge for Northeast respondents. conditions, with 10.7 percent who described it as excellent and an additional 57.1 percent who said it was very good. Operators in the West followed, with 46.4 percent who reported excellent or very good conditions, while 46.0 percent of operators in both the South and North Central opted for the top two business condition ratings. From a year-over-year perspective, three of four regions had a higher percentage of respondents in the top two business rating categories for 2018, the Northeast (+9.9 percent), the West (+7.9 percent), and the North Central (+0.5 percent). The South registered a lower percentage of respondents in the top

two categories (-5.2 percent). It was also the region most likely to report lower business ratings with 14.0 percent who described 2018 as fair and an additional 12 percent who called it poor.

2019 forecast While there were weak spots during 2018, operators maintained an overwhelming sense of optimism when looking ahead. More than half (50.7 percent) anticipate excellent (15.1 percent) or very good conditions (35.6 percent) in 2019. This represents the highest expectations given for the coming year since the survey began in 2004. Nearly four in 10 (39.7 percent) expect 2019 to

be a good year. Another positive sign is that, despite an increase in the percentage of respondents who described 2018 as fair or poor, a significantly smaller percentage anticipate similar results in 2019. Less than one in 10 said they expected fair (8.2 percent) or poor (1.4 percent) business ratings. These are among the best percentages predicted for these categories as well. Once again, bigger seems to be better when it comes to forecasted business conditions. Almost two-thirds of respondents at sites that produce more than 5 million tons per year anticipate either excellent (25.0 percent) or very good (40.0 percent) business conditions

AGGREGATES MANAGER / January 2019

INDUSTRY FORECAST 2019

US Region Map

Western Region

North Central Region

Northeastern Region

the Northeast were the least likely (7.1 percent) to do so. The biggest production gains were seen in the Northeast, where 35.7 percent of respondents noted volumes that increased by 30 percent or more. In contrast, the biggest declines were registered in the South where 25 percent of respondents reported volumes that declined by 30 percent or more.

2018 production forecasts

Southern Region

in 2019. This represents an almost 2-percent increase over last year’s forecast results. Conversely, 37 percent of small producers (up to 500,000 tons per year) anticipate either an excellent year (11.1 percent) or very good (25.9 percent) year. By commodity, half or more of all respondents have strong expectations for 2019. Sand and gravel producers were most likely to predict an excellent year (20.0 percent), with an additional 30.0 percent who said it would be a very good year. On its face, this appears to be very strong, but it also represents a 20-percent decline from sand and gravel producers’ expectations for 2018. More than 15 percent of crushed stone & sand and gravel producers said they anticipated an excellent year, with 35.9 percent more who said it will be very good. This is a 7.5-percent increase over 2018 in the top two rating categories. Crushed stone producers were optimistic with 10.9 percent who called for an excellent year and 43.2 percent who forecast a very good year. Producers in this category predicted the sharpest increase in top business ratings for 2019 with a 16.7-percent increase compared to 2018 expectations.

2018 production volumes More than 40 percent of respondents said they produced more aggregates in

AGGREGATES MANAGER / January 2019

2018 than during the prior year, a slight decline (4.8 percent) from the percentage that reported increases during 2017. The average production increase was 20.9 percent, a 4.3-percent uptick from 2017, while the average decrease was 20.5 percent, more than double last year’s average decrease of 10.1 percent. Operators with annual production of 500,001 to 1 million tons were the most likely to experience an increase (63.4 percent) and least likely to experience a decrease (3.3 percent) during 2018. Producers of 500,000 tons or less were the least likely to report an increase (27.8 percent) and most likely to report a decrease (27.8 percent). By commodity, crushed stone producers were most likely to indicate higher volumes (48.7 percent), followed by crushed stone & sand and gravel producers (45.3 percent) and sand and gravel producers (36.7 percent). More sand and gravel producers reported a decrease (23.3 percent) than any other commodity. Half of operators in the Northeast and West noted increased volumes in 2018, followed by 40.6 percent of those in the North Central and 38 percent of those in the South. Operators in the South were the most likely (24.0 percent) to report a decrease in volumes, while those in

As 2017 survey respondents predicted, areas of the market softened in 2018. This year’s respondents, however, are bullish on 2019. Nearly half (48.6 percent) expect production volumes to increase in 2019 while only 5.5 percent anticipate a decrease. With almost 95 percent of respondents who said they anticipate either higher or stable volumes, 2019 appears to be another strong year for the aggregate industry. When it comes to operator optimism, there is no clear correlation between size and expectations for 2019, but large operators (more than 5 million tons per year) were quite upbeat about 2019 volumes with 65 percent who predict an increase. In the next size category down (more than 3 million to 5 million tons per year), that number nearly shrunk by half to 38.5 percent who expect more production. Mid-size operators (more than 1 million to 3 million tons per year) voiced mid-range optimism with 41.4 percent who said they expect an increase. This group was also the most likely to predict a decrease with 10.3 percent who said volumes will decline in 2019. At the smaller size range, 56.7 percent operators who generate more than 500,000 to 1 million tons per year forecast an increase, and 44.4 percent of operators who produce up to 500,000 tons per year agree. Respondents who produce crushed stone & sand and gravel were the most optimistic, with 54.7 percent who called for increased production. They are followed by crushed stone only producers (48.7 percent) and sand and gravel producers (40.0 percent). Crushed stone producers were the most likely to predict

decreased volumes (13.5 percent). By region, the South â&#x20AC;&#x201D; where nearly one in four respondents reported decreased production in 2018 â&#x20AC;&#x201D; predict a turnaround in 2019. A total of 58 percent of respondents there said they expect higher volumes this year. The region is followed by the Northeast, where half of respondents forecast an increase; and the North Central where 43.2 percent said they expect to produce more aggregates. In the West, 39.3 percent predict higher volumes, but more than one in 10 call for lower production totals.

Tackling challenges The most significant challenge for operators in 2018 was, once again, worker retention. Since 2016, the need for labor has been the top source of concern for producers, and itâ&#x20AC;&#x2122;s a problem that continues to grow. This year, 30.1 percent of respondents described it as a major problem, an increase of 1 percent compared with 2017. An additional 39.7

JVI_AGRM0119.indd 1

percent of respondents characterized it as a minor challenge. Labor was the top concern in three of four regions: South, West, and North Central. In the Northeast, the top concern was aggregates availability and permitting, followed by labor. Other growing concerns include, community relations (+4.2 percent), water availability (+1.9 percent), environmental issues (+1.6 percent), and competition for sales (+0.2 percent). Community relations and environmental

issues each hit a five-year high with 11 percent of respondents who categorized each as a major challenge. Community relations was particularly concerning for respondents in the West where more than one in five (21.5 percent) described it as a major problem, while environmental issues were more frequently reported in the Northeast (17.9 percent). The bottom line is that 2019 is likely to be a strong year for most operators, but the industry must remain vigilant for pockets of weakness. AM

Methodology, Objectives, and Sources The objective of the 2018-2019 Aggregates Manager Forecast Survey was to determine business, production volume, spending, and workforce trends. In November 2018, Aggregates Manager emailed questionnaires to a random selection of readers in the crushed stone and sand and gravel, crushed stone-only, and crushed gravel-only industries. A total of 146 useable surveys were completed, with more than 75 percent of respondents holding corporate executive or superintendent/manager titles.

12/6/18 1:17 PM

AGGREGATES MANAGER / January 2019

Get the the most current information with the 2018 Aggregates Industry Atlas and the Atlas Download. While the printed version of the Aggregates Manager 2018 Aggregates Industry Atlas will become an integral part of doing your job, donâ&#x20AC;&#x2122;t forget to order your copy of the Atlas Download to see additional information about companiesâ&#x20AC;&#x2122; mine locations, types of rock mined, GPS coordinates, pertinent facts about companies listed in the atlas, and more.

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Quarries and property values Equipment investment continues to climb The final Workplace Exam Rule

OPERATIONS ILLUSTRATED By Nathan Medcalf, Contributing Editor

From Rock to Rail

Rail access can greatly increase a quarryâ&#x20AC;&#x2122;s market size. Greater distances to markets drive rail use for quarries.

Payload technology prevents under or over loading.

OUR EXPERTS

Each rail car holds as much aggregate as five trucks.

Michael Sanders is the operations manager of Texas Materials, a CRH Company. He has worked for the company and in the industry for 11 years. Sanders graduated from the University of Texas with a degree in accounting and is CLTD APICS certified.

Kevin Vonesh is the worldwide strategic account sales manager for Trimbleâ&#x20AC;&#x2122;s Aggregates Division. Prior to joining Trimble, he spent 18 years with LafargeHolcim in various roles, including U.S. head of infrastructure and segment director.

AGGREGATES MANAGER / January 2019

Rail shipment expands market opportunities

arkets for quarries are limited by distance. When product has to travel far, transportation costs add to the cost of the product, and eventually, it becomes more cost-effective to purchase product from an operator closer to the market. Transporting product by truck has a range of up to about 25 miles. After that distance, it usually becomes more cost-effective to purchase from another producer. However, some transportation methods, such as water and rail, allow for a larger distribution footprint at a fraction of the cost of shipping by truck. “The industry is changing from short-haul routes completed by trucks,” says Kevin Vonesh, worldwide strategic account sales manager, Trimble, Aggregates Division. “There is a public perception that quarries should not be close to cities and residential areas, so quarries are usually located in remote areas from the markets they serve, and the construction industry is becoming more dependent on rail for transporting building materials.” According to the Association of American Railroads, rail transportation of aggregates is becoming more prevalent as projects requiring these materials move farther away from quarry sites. In 2016, U.S. Class I railroads originated 1.2 million carloads of stone, sand, and gravel (4.3 percent of total carloads) carrying 128.9 million tons (8.6 percent of total tons) and earning gross revenue of 2.3 billion (3.5 percent of total revenue), the association notes, adding

that rail transportation of aggregates is becoming more prevalent as projects requiring these materials move farther away from quarry sites. One railcar can carry as much aggregate as five trucks, so this means freight rail also can be an environmentally friendly way to move aggregates. And, if product is weighed accurately, rail can be an efficient way of transporting rock, since underloading rail cars increases the cost per ton of moving them and overloading them can lead to fines. There are several rail car options for transporting aggregate with gondola- and hopper-style rail cars being the most common. Gondola-style cars unload from the top while hopper-style cars unload from the bottom. Gondolas are unloaded with a railcar topper or backhoe while hoppers are unloaded by being positioned over a trestle or pit and then gravity takes over. The unloading system owned by the customer determines the type of rail car used. Shipping by rail can have a large impact on operations. “Traffic flow is one challenge. When we load a train, we are shipping 12,000 to 25,000 tons of product per day,” says Michael Sanders, operations manager, Texas Materials, a CRH Company. “Even on days we load trains, we do not use less trucks.” Texas Materials has set rail schedules for its local market terminals and coordinates with each rail carrier and customer.

Measure accurately

By placing pay scale technology that is connected to reporting software on the equipment in an aggregates operation, managers can observe production levels for the entire site and make changes if needed. Pay scale technology can provide an accurate account of what material is going across the belt, what is being pulled out of an aggregate pile, and what’s getting loaded onto a truck or into a rail car.

AGGREGATES MANAGER / January 2019

Expand market opportunity

Tracks provide an opportunity for quarries to increase their market by transporting rock by rail. By investing in the construction of a rail system, operations can unlock new markets and the potential to transport product at a lower cost per ton than trucks. Each rail car has the same capacity as five trucks. However, larger quantities demand greater accuracy in rail car loading, since inaccuracies can lead to lost revenue when underloaded or potential fines if overloaded.

Match customer needs

Trains have been used to move aggregate in the United States for nearly 200 years and are an affordable way of transporting rock for operations fortunate enough to be located near one. A variety of rail cars can be used to ship product by rail, with gondola- and hopper-style cars being the most common. Producers use the rail cars that match their customerâ&#x20AC;&#x2122;s unloading system (top or bottom).

Transport by truck as needed

Transporting rocks by truck is still the most popular way of getting rock to market. Trucks typically have capacities between 15 and 20 tons and a profitable range of up to 20 to 25 miles. Outside that range, there is often another operation closer to the market that can provide product for less. Alternatively, sites can use rail to extend their market reach.

AGGREGATES MANAGER / January 2019

Voices of Experience Michael Sanders

exas Materials, a CRH Company, ships approximately 50,000 rail cars of product per year from its Marble Falls, Texas, quarry, where it has approximately 6 miles of tracks. The state of Texas produces and consumes more aggregates than any other state. Population growth, especially around Houston and Dallas/Ft. Worth, has driven the most demand for rail-shipped aggregates. The company had the rail installed a little more than a decade ago. “We used a company to design the layout,” says Michael Sanders, operations manager. Several contractors bid on the construction, and then the company with the successful bid built the rail. Texas Materials does, however, handle the upkeep. “We maintain the track through inspections and through the use of an outside contractor,” Sanders explains. When rail was first installed, the company shipped out 10,000 cars of product per year, but that number has grown. Now, it ships approximately 76 percent of its product by rail, with the remaining production being shipped via truck. Total product shipped was just under 7 million tons and includes everything from base material to aggregates for hot-mix. “We have a locomotive on site, and we operate locomotives from two Class One railroads: Union Pacific and Burlington Northern,” he says. “We load the cars/trains in our plant, and the short line railroad delivers the loaded cars to our terminals or delivers them to the interchange to be delivered to our offline customers.” Texas Materials relies on two types of rail cars — which it leases — to ship its product by rail: gondola- and hopper-style rail cars. “We use both styles of cars,” Sanders says. “The unloading system at the customer drives what type of car we send.” Texas Materials has set rail schedules for its local market terminals and coordinates with each rail carrier and customer. The company is serviced by a short line railroad owned by Watco companies. “Watco companies services our local market or terminals we have on their line,” Sanders says. Watco interchanges with the Union Pacific and the Burlington Northern when the operator ships to offline markets, such as Houston and some locations in Louisiana. While Texas Materials has served its home state for more than a quarter of a century, rail has allowed it to ship its material into Louisiana as well. “Rail access allows us to ship larger quantities to our customers at a reduced rate,” Sanders says, cautioning that shipping by rail is not without its challenges: “Traffic flow is one challenge. When we load a train, we are shipping 12,000 to 25,000 tons of product per day. Even on days we load trains, we do not use less trucks.”

Kevin Vonesh

n the quarry space, Trimble provides LOADRITE wheel loader, excavator, and conveyor belt scales, as well as the InsightHQ reporting tool that takes data collected from the scales and puts it into a dashboard, so a plant manager can make decisions using that data. “We help manage payload weight to make sure trucks or rail cars are not over or underloaded,” says Kevin Vonesh, worldwide strategic account sales manager. The technology provides an accurate account of what material is going across the belt, what is being pulled out of an aggregate pile, and what’s getting loaded onto a truck. “You get near real-time weight information instead of finding out at the yard scales, or after the truck has left the site. This greatly reduces the risks of being fined at Department of Transportation weigh stations for being overloaded,” Vonesh says. “With Trimble technology, you don’t back-cycle your trucks.” The same principle applies to rail cars, which are weighed on rail scales. “If rail cars are overloaded or underloaded, the train will get backed up, so material may have to be taken off or put on, so that the cars meet the desired weight,” he explains. By weighing material in the bucket, it can be tracked throughout the entire operation. By collecting production data and using Trimble’s preformatted graphs and reports, a plant manager can see production levels, compare them for different time periods, and identify potential problems based on trends. “All this data is communicated from the displays of the cabs of the machines, as well as on Trimble’s InsightHQ dashboard, so the quarry manager can observe production levels for the whole quarry and to see how much is going out,” Vonesh says. Data collection and analysis aids in creating the connected operation. “Everything that operates within the quarry — from the crusher, over the belt scale, to the load-out, our products accurately calculate the weight of the materials loaded into rail cars or trucks,” he adds. For rail loadout, payload measurement systems help maintain consistent rail car payload for uniform unloading. Accuracy is even more important when loading rail cars than trucks, because they have a significantly higher weight capacity. Rail cars have capacities of up to 100 tons each, in trains of 50 to 100 rail cars. If an operator just slightly underloads each car, the result is a lot less total product being sent to market at a higher cost per ton. “There is a larger quantity gamble with rail cars when you don’t weigh the product accurately,” Vonesh says. “By using Trimble technology, you know how much material is going into the rail car.”

AGGREGATES MANAGER / January 2019

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EQUIPMENT MANAGEMENT

Don’t Tread Lightly on

Maintenance Proper tire maintenance keeps your operation’s machines on the move and profitable.

n order to maximize resources — and productivity — aggregate workers move fast. Yet, in their zeal to keep equipment working, operators can be tempted to overlook a very important step — proper tire maintenance. Wellmaintained tires can equate to increased profits, thanks to increased uptime, productivity, safety, and on-time job completion. Taking proper care of tires on construction equipment, such as wheel loaders and haul trucks, should always be a best practice for any kind of operational work site. At Michelin, we pride ourselves

AGGREGATES MANAGER / January 2019

on being a long-term partner who works with producers to provide value-added solutions and ensure that operators are maximizing tire life and extracting the full value from their tire assets. Q. How can operators get the most out of their tires? A. The most important step, by far, is to properly maintain the manufacturer’s recommended tire pressure for the loads being carried. Other areas include following a recommended tire maintenance schedule, making sure your machine operators are properly trained in maximizing

tire life, and minimizing potential hazards around the worksite. By properly maintaining tire pressure, the contact patch will provide better traction, avoiding wasted fuel by spinning tires. For loaders, the proper contact patch delivers the traction needed to better pick up materials, meaning a dump truck could be filled with fewer buckets since the equipment is more efficient. A good contact patch also allows the tire to act like a more efficient suspension system, allowing for less wear and tear on the equipment and the operator. Along with proper tire pressure,

A visual inspection of tires should be completed prior to machine operation, and, at least once a week, a formal inspection, including tire pressure readings, should be performed.

properly trained equipment operators will also help maximize tire life. Equipment operators should be trained in: • How to visually inspect tires and what to look for; • Why to avoid damage-causing obstacles at the site when operating equipment; • The cost of damage and downtime; • Reporting obstacles to be removed from the site or repaired; and • Using slower speeds in corners and other driving tips. Routine tire inspections help to ensure that tires are looked at and any necessary

The appropriate tire pressure is variable and includes factors such as machine type, tire type, size, weight on tire, tread design, rubber compound, and maximum pressure of the wheel.

AGGREGATES MANAGER / January 2019

EQUIPMENT MANAGEMENT

Ten Tire Maintenance Tips: Tip 1: Conduct a visual inspection of your equipment’s

tires prior to operation, looking for signs of irregular wear, deep cracks, cuts, or other major problems in the tread or shoulder of the tire.

Tip 2: If any symptoms of tire damage are discovered

during inspection, do not operate the vehicle until a trained service technician can diagnose the severity of the problem and make the proper repairs. Never allow an untrained person to attempt repairs.

Tip 3: Proper tire pressure is critical to a tire’s perfor-

mance. Check tires prior to use and while they are cold for correct pressure. Conduct a visual inspection daily. Check the pressure properly with an accurate gauge.

Tip 4: Determine precise PSI for your tires based on the manufacturer’s requirements and vehicle application. Your tire dealer can help pinpoint the exact recommendation for your application and loads carried. Tip 5: Never operate a vehicle that has low or flat tires, damaged or distorted rims or wheels, missing bolts, or cracked studs.

Tip 6: Never weld or apply heat to a wheel or wheel

parts. If a wheel requires repair, it should be inspected and repaired by the wheel manufacturer.

Tip 7: When not in use, store tires in a cool, dry place away from direct sunlight to avoid premature aging. Prevent exposure to ozone sources such as sun, arc-welders, and mercury vapor light bulbs, as well as ultraviolet rays and inclement weather. Store tires standing upright on the tread and avoid stacking. Tip 8: Avoid lifting tires through the center with a crane

hook, which can damage the critical bead area. Instead, lift the tire under the tread by using flat straps. Flat straps are recommended over steel slings or chains because they are less likely to cause cuts or abrasions.

Tip 9: Deflate the inner and outer tires of a dual fitment

before removing any rim fixture from the hub of the vehicle.

Tip 10: Avoid mixing tires on your vehicle, such as normal tread depth with deep tread depth or a bias-ply tire with a radial. Using two different types of tires could damage the vehicle’s internal components because the tires do not work together to provide the same traction and handling performance.

AGGREGATES MANAGER / January 2019

corrective actions are taken. As part of a routine inspection, equipment maintenance staff or the trained equipment operators should follow some basic rules, such as the following. • Check tire pressure weekly and always visually inspect the tires at the beginning of a work shift to look for visibly low pressure or damages to the tires. • Always have sealing metal valve caps, which have a sealing rubber gasket, in place to retain tire pressure even when the valve core is partially open due to dirt infiltration. • Ensure that tire rims and wheels are in proper, safe working condition. Proper air pressure, in any vehicle or piece of equipment, is an issue. This is true for your car, pickup truck, or bicycle. Excessive heat in the tires can be caused by a number of different factors. The majority of the time it is due to under inflation or an over-loaded condition, but it also can be an issue of going too fast or too far. There are different stages of heat damage. Slight over heating can cause the rubber to wear faster than what would be considered normal. Heat causes the rubber to break down and cause separations in the tire. The rubber gets soft/spongy and breaks down. Steel cables can start to come out of the tire as it heats up, and the rubber turns to a soft liquid. In the worst case, the tire actually gets so hot that it catches fire. To avoid heat build-up, it is imperative to have a proactive maintenance program to monitor pressure, wear, damage, etc. to protect the tire asset and keep the tires performing in an optimal condition. It is unclear how many customers are not maintaining the correct PSI for their specific equipment and loading. There are many variables that affect PSI, including the type of tires, the load amount, etc. It is hard to determine based on the job location, the operations they are performing, and other factors. Customers have a better opportunity to keep the right PSI in their tires because they are able to see the tires daily. Different things can happen to a tire that is either over- or under-inflated. You can also have fast wear, sidewall damage, or rock drilling in the crown area. Tires should be monitored every day during the operator pre-trip inspection. At least once a week, there should be a formal tire check that includes checking PSI, as well as any damages whether they are new or pre-existing. PSI can vary depending on what type of machine is being used and what type of tire is being utilized, such as bias, radial, foam-filled, airless radial, etc. Recommendation should not be made without prior knowledge of these factors. Other considerations include size, machine, weight on the tire, tread design, rubber compound, and the maximum pressure of the wheel.

EQUIPMENT MANAGEMENT A Checklist for Maximizing Tire Life: • Select the best tire for the application. • Run the manufacturer’s recommended air pressures. • Check tire pressures regularly for correct pressure readings, with a visual inspection at the start of a work shift. • Make sure that sealing valve caps are in place. • Check that tire rims and wheels are in proper working condition. • Ensure that the work site is free of hazards. • Follow a recommended tire maintenance schedule. • Make sure machine operators are properly trained.

Inspect tire rims, tread, and sidewall before driving the vehicle.

Q. What can a maintenance manager do to ensure he is getting the most out of his vehicles’ tires? The answer is simple — evaluate tire wear on a routine basis through tracking tire life and always matching tire depths according to the OE equipment manufacturer’s recommendations. Doing these things will lead to better wear rates and less stress on the equipment. There are two main areas to check when evaluating tire wear — the tread and the sidewall. Be on the lookout for signs of cutting, chunking, stone drilling, or debris penetration and rubber tearing. Some of these damages are signs of over- or under-inflation, or poor site maintenance in a stationary operation.

Determining the root cause may allow you to address the concern and mitigate or eliminate the damages. Another important element impacting overall tire life is keeping the worksite area clean of potential tire dangers. The worksite can have a very significant impact on tire life. Supervisors and personnel should pay special attention to road surfaces and other worksite conditions, such as the cleanliness of loading and dumping areas, to eliminate potential puncture hazards. While this is usually easier with a stationary operation, portable sites can benefit from these practices. These are fairly obvious factors to extended tire life, yet they require

commitment, equipment, training, and diligence from everyone at a site. Q. But what about those operations that still don’t take tire maintenance seriously? A. If proper tire maintenance is not a priority, an operator is virtually guaranteeing he will reduce the tire’s life, increase the likelihood of tire-related failures such as like punctures or run flats, reduce the machine’s productivity, and cost the company money. It simplly doesn’t make good business sense not to pay attention to such a large operational asset. AM Article courtesy of Michelin Tires.

AGGREGATES MANAGER / January 2019

FIRST LOOK by Kerry Clines | Senior Editor

Cat’s new

MD6200 Rotary Blasthole Drill

The MD6200 is highly transportable and maneuverable because, when the mast is lowered, the cab is the tallest part of the machine.

t a dealer/customer event in Denison, Texas, Caterpillar unveiled its new MD6200 Rotary Blasthole Drill, which is designed to be flexible and transportable. The crawler-mounted drill can perform rotary or down-the-hole (DTH) drilling in either single-pass mode to a depth of 36 feet or multi-pass mode to a depth of up to 156 feet. Drill holes range from 5.0 to 7.87 inches in diameter.

AGGREGATES MANAGER / January 2019

“We believe this machine is going to be a good fit in the aggregates stage for those customers that maybe use one machine to go to three different sites or for those customers who want to move the machine around,” says Matt Jacobs, commercial manager, Surface Rock Products, Caterpillar. Cat is taking orders for the MD6200 drill and plans to ramp up production this year. Key benefits include:

1. Negative angle drilling The mast on the new MD6200 has the ability to drill at angles from 30 degrees to -15 degrees. Being able to drill at a negative angle allows producers to match the slope of the highwall for pre-split drilling, which makes for a clear highwall. The operator can adjust the angle of the mast in increments of 5 degrees using the touch screen monitor in the cab.

“We are the only machine in the industry to have the negative angle or pre-split capability,” Jacobs says. “This machine actually goes over center to the other direction and drills back under the machine.”

336 undercarriage,” Jacobs says. “We know this machine will tram more being a smaller machine, so we’re adding the durability and life into that undercarriage component. It also gives us a lower center of gravity for better stability.”

2. Transportability The MD6200 is highly transportable and maneuverable because when the mast is lowered, the cab is the tallest part of the machine. It is said to have the smallest shipping envelope of any drill in its class, allowing it to be transported over the road with the mast in a prone position. If desired, parts of the outside of the machine can be removed by two people without the use of lifting tools. The drill’s compact working envelope allows it to get into position fast, reducing the time spent accessing drill patterns and moving between holes. “We decided to go with the larger

3. Cat power train and electronics The MD6200 is powered by a Cat C18 engine and is available in U.S. EPA Tier 4 Final configuration or U.S. EPA Tier 2 equivalent configuration to suit the needs of the quarry or mine. The drill offers both high-pressure and low-pressure compressor configurations for variable volume air control to match compressor output to the desired application. The system also lowers stand-by pressures while the machine is idle, which helps improve fuel efficiency. The electronics on the MD6200 are the same as those found in other

LET'S BUILD

Cat equipment, which helps with troubleshooting. “It is key for our machines to have the same controllers, ECMs, or electronic control modules,” Jacobs says. “This drill will be able to use Electronic Technician, which is the same tool a dealer or customer would use to troubleshoot other equipment.” The electronics allow for automated controls. Integrated machine protection features and interlocks help keep the machine up and running by preventing potential failures and operating errors. Managers can track drill performance in real time using Product Link Elite.

4. Improved cab and operator system The MD6200’s operator system is designed to promote operator comfort and productivity, as well as safety. The cab’s multifunction joystick controls and

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hydraulics system features an auxiliary circuit pump, fan pump, two primary pumps, charge pump, and oil sampling ports. The compressor’s electronic compressor controls and variable volume control allow the operator to adjust air output to match the tool.

6. Cat technology Cat technology options, such as Drill Assist, offer auto level, auto retract jacks, auto raise and lower mast, and auto drill. The drill depth monitoring system helps reduce over- and under-drilling, which helps to optimize productivity and fragmentation. The MD6200 is also set up for Cat Terrain for drilling, which helps operators drill holes in the exact location specified by the plan, resulting in smoother, safer, and more efficient blasting. Auto Level and Auto Mast are standard on the drill. “We can more efficiently level a machine than an operator can, and we can keep the operator from putting undue stress on the machine by doing it improperly,” Jacobs says. “We make sure when the mast is going up and getting pinned at a certain angle, it slows down before it stops versus the operator wagging the mast. With these tools, we can make sure the machine has additional durability.” AM

The MD6200 is said to be the only machine in the industry to have the negative angle or pre-split capability.

Experience: Retired November 2011 following 41 years with the U.S. Geological Survey • USGS Aggregate Resource Geologist 1977-2011 • Past Chair and Distinguished Service Award recipient, Society for Mining, Metallurgy, and Exploration, Industrial Minerals and Aggregates Division • Author of ASBPE award-winning columns - Carved In Stone, Aggregates Manager, 1998-Present

The MD6200’s cab is designed to promote operator comfort and productivity, as well as safety, and features multifunction joystick controls and two touchscreens.

two touchscreens are said to be easy to understand and use. Large windows in the front, rear, and right side of the cab; a full-length drill window with a guard; and three cameras offer the operator a clear, unobstructed view of the work area.

The MD6200’s C18 Cat engine is a perfect match for the Cat hydraulics system and the Cat compressor on the drill. The AGGREGATES MANAGER / January 2019

• Resource evaluation • Expert testimony

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BillLanger_AGRM0115.indd 1

12/14/16 8:54 AM

HEAD OUT

to NSSGA’s Young Leaders Annual Meeting

2019 NSSGA Young Leaders Annual Meeting

April 28 – May 1, 2019 | Omni Hilton Head Oceanfront Resort | Hilton Head, SC

This April, the aggregates industry’s most promising professionals 40 years of age and younger will be heading out to Hilton Head, SC, for NSSGA’s Young Leaders Annual Meeting. This is where future aggregates industry leaders interact with, and learn from, veteran heads of the industry. This is the primary event where relationships get started and continue to grow throughout their careers.

At the tropical Omni Hilton Head Oceanfront Resort, young leaders will attend several professional development sessions, take part in community service and teambuilding projects, and socialize during interactive networking activities, focusing on the business and personal skills they need to excel.

Visit www.nssga.org for more information and to sign up for Young Leaders alerts.

REGISTRATION OPEN NOW!

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by Kristin R.B. White

ROCKLAW Facts Matter When it comes to proving a citation, appeals courts find that MSHA must support its factual findings with substantial evidence.

Kristin R.B. White is a member in Jackson Kelly PLLC’s Denver office where she practices in the Construction, Energy, and Mining Law industry groups, focusing primarily on workplace health and safety, and labor and employment. She can be reached at 303-390-0006 or kwhite@ jacksonkelly.com.

hen the Mine Safety and Health Administration (MSHA) issues a citation to an operator, that citation is supposed to be based on specific facts that are alleged to have violated a specific standard, regulation, or provision of the Mine Act. MSHA has the burden of proof to ultimately demonstrate that the facts occurred as alleged via a legal standard called “substantial evidence.” Two recent appellate court cases overturned administrative law judge (ALJ) or the Federal Mine Safety and Health Review Commission decisions that had affirmed citations issued by MSHA because the citations were not supported by substantial evidence. These decisions illustrate the importance of fact gathering at the time of the citation. In the case of Bussen Quarries, Inc. v. Sec’y of Labor, - F.3d -, Docket No. 17-2281 (8th Cir. July 16, 2018), the Eighth Circuit vacated a citation that had been issued to Bussen Quarries, Inc. for an alleged violation of 30 C.F.R. § 56.15005, which requires the use of certain fall protection equipment at surface metal and non-metal mines when working where there is a danger of falling. The Eighth Circuit held that the ALJ’s inference that the operator had worked in an area where there was a danger of falling was unreasonable because it was based on nothing more than suspicion. The only actual evidence testified to by the equipment operator was his description of how he stood at least 7 feet away from the

AGGREGATES MANAGER / January 2019

highwall edge at all times because his feet were near the drilled holes. He further testified and demonstrated how the equipment was moved into the so-called “fall hazard zone” while he remained a safe distance from the highwall edge. There also were no recent footprints near the edge of the highwall, and the mine had a policy forbidding its employees to walk close to the edge without fall protection. The equipment operator knew and had been trained on this policy. The ALJ, who had upheld the citation, discredited the equipment operator’s testimony. In her decision, she failed to provide any indication as to why she disbelieved the operator, and the court could find no legitimate reason for the disbelief. As the court pointed out, the operator’s witness was the only witness who possessed any relevant knowledge on the issue and had testified consistently throughout the investigation and litigation. The Eighth Circuit also specifically stated that it was not endorsing a position wherein an MSHA inspector must personally observe a violation in order to cite it. The court then provided examples of what could constitute substantial evidence in the absence of first-hand knowledge. For example, the Secretary may be able to prove a violation by any number of methods, including testimony from other witnesses, circumstantial evidence, past practices, and the absence of a company policy. However, the Eighth Circuit emphasized

that the Secretary cannot rely upon mere speculation and conjecture that a violation occurred. To hold otherwise, the Eighth Circuit found, would “flip the burden of proof on its head” and be fundamentally unfair to mine operators. In Canyon Fuel Co. v. Sec’y of Labor, - F.3d -, Docket No. 17-9541 (10th Cir. July 10, 2018), Canyon Fuel was cited for an alleged violation of 30 C.F.R. § 75.380(d)(5). Section 75.380(d)(5) requires that escapeways be located to follow the most direct, safe, and practical route to the nearest mine opening suitable for the safe evacuation of miners. MSHA alleged that Canyon Fuel Co. was in violation of the regulation because the alternative escapeway was not assessible via a roadway for land traveling vehicles. The Tenth Circuit found that MSHA’s burden, with respect to the standard, is to identify a route that more closely complies with the standard than the route currently designated by the mine. Here, the Secretary, on behalf of MSHA, failed to engage in a comprehensive comparison between the two routes. The Secretary was required to make a comprehensive comparison of both the practicality of the route and the suitability of

the mine opening in order to determine that one escapeway was more acceptable than the other. Not only did the Secretary fail to engage in this comparison, but the ALJ made no findings along these lines. Therefore, the record lacked any meaningful comparison by the Secretary of the two escapeways. The Tenth Circuit thus concluded that the citation was not supported by substantial evidence and vacated it. These cases illustrate that, in proving a citation, MSHA has to support its factual findings with substantial evidence. The Secretary fails to meet his burden if the factual findings are based on improper conjecture and speculation, as well as unfounded decisions to discredit an operator’s testimony. Both of these decisions are important for mine operators as they emphasize that facts do, in fact, matter. It is important for the operator to determine the facts early in an investigation and who the key witnesses are for those facts. It also is important to have safety policies and practices that are enforced at the mine in order to rebut speculation that a violation had been committed based on an alleged condition. AM

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CARVED IN STONE

Bill Langer is a consulting research geologist who spent 41 years with the U.S. Geological Survey before starting his own business. He can be reached at Bill_Langer@hotmail.com

If It’s Grown, It’s Mined Plants need nutrients found in minerals to build their cells.

ost of you reading this article probably have heard the saying: “If it’s not grown, it’s mined.” The title of this article might surprise you. It is not a typo. Just like you do, plants build their cells from carbohydrates, proteins, lipids, and nucleic acids. The difference between you and a plant is that you get all these molecules from your food, but plants need to build them for themselves. There are 18 essential nutrients that plants need to create these molecules. Three non-mineral elements — carbon, hydrogen, and oxygen — are used by plants during photosynthesis to build carbohydrates. Plants get 98 percent of their food by the photosynthesis process itself, and, without these three elements, plants can’t grow at all. These eleMount Pinatubo’s 1991 eruption. ments are obtained from the carbon dioxide and water in the atmosphere. To build other kinds of molecules, plants need 15 other critical mineral elements that are mined from the soil. These mineral elements include macronutrients and micronutrients. For those who care, macronutrients are needed in large amounts and include calcium, magnesium, nitrogen, phosphorous, potassium, and sulfur. Micronutrients are only needed in tiny amounts and include boron, chlorine, cobalt, copper, iron, manganese, molybdenum, nickel, and zinc. Most critical mineral elements are applied to crops as fertilizers that are manufactured from minerals mined from the ground, so maybe you can understand why I say, “If it’s grown, it’s mined.” But, there is more to the story. Four times as much land surface in the United States is covered with forests, grasslands, and shrubs than with crops, so it is fair to say that most plants in the U.S. are grown without any help from humans. Those plants must extract critical elements from the soil all by themselves. Soil is likely to have several kinds of rock and mineral particles, as well as very small flakes of clay. These particles are the products of the weathering of what is referred to as parent material, which is the underlying local bedrock (ledge rock) or naturally transported sediments. In many cases, the parent material does not contain all the essential elements, and neither does the soil derived from it. In addition, some critical mineral elements are leached out of the soil during soil forming processes. Consequently, Mother Nature needs a way to supplement the soil with critical mineral elements. One way she does so is through dust. Every year, millions of tons of dust are picked up by strong wind in arid areas and are blown tremendous distances around the globe. For example, dust from the Sahara Desert in Africa is spread across North America, Central America, northern South America, and Europe. Saharan dust is the main source of phosphate across the Atlantic Ocean in the Amazon forests. Similarly, dust from the Gobi Desert in Asia is crucial to the survival of the giant sequoias in California’s Sierra Nevada mountains. And, dust from deserts in central Australia provide mineral nutrients for plants throughout the country, as well as in New Zealand. Just to sweeten the pot, Mother Nature also throws in a plethora of mineral elements via ash from volcanic eruptions. For example, volcanic ash from the 1991 eruption of Mount Pinatubo spread completely around the globe. So how do plants take up the nutrients? Well, the secret lies in tiny root hairs. However, the process of nutrient uptake is way more complicated than I can convey in this short article. Let’s just say “If it’s growing, it’s mining.” AM

AGGREGATES MANAGER / January 2019

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