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2012 ARTBA Chairman Paul Yarossi Nov.-Dec. 2011

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contents

VOL. 23, NO. 6

NOV. DEC.2011 The official publication of the American Road & Transportation Builders Association

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10 ON THE COVER

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2012 ARTBA Chairman Paul Yarossi

FEATURES

10 A Tribute to Tom Walker ARTBA 14 2012 Executive Committee the Bay’s 18 Rebuilding Famed Crossing Transportation 28 2012 Construction Market Outlook Cover shot: 2012 ARTBA Chairman Paul Yarossi Courtesy of HNTB Corporation For more information: www.hntb.com Nov.-Dec. 2011

COLUMNS 6

From the Chairman

8

President’s Desk

22

2011 Environmental & Regulatory Issues—ARTBA’s Got Your Back

32

Member News

33

AEM Corner

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®

builder

Transportation Builder® (TB) is the official publication of the American Road & Transportation Builders Association, a federation whose primary goal is to aggressively grow and protect transportation infrastructure investment to meet the public and business demand for safe and efficient travel. In support of this mission, ARTBA also provides programs and services designed to give its members a global competitive edge. As the only national publication specifically geared toward transportation development professionals, TB represents the primary source of business, legislative and regulatory news critical to the success and future of the transportation construction industry.

Staff PUBLISHER T. Peter Ruane transportationbuilder@artba.org EDITORIAL DIRECTOR Matt Jeanneret mjeanneret@artba.org DEPUTY EDITORIAL DIRECTOR Beth McGinn bmcginn@artba.org PUBLICATIONS EDITOR & GRAPHIC DESIGNER Jenny Ragone jragone@artba.org CONTRIBUTING WRITERS Dan McNichol Author: “The Roads That Built America” Rich Juliano ARTBA vice president for federal & state relations Nick Goldstein ARTBA vice president of environmental and regulatory affairs Alison Premo Black ARTBA vice president, policy and senior economist Transportation Builder® (ISSN 1043-4054) is published bi-monthly by the American Road & Transportation Builders Association (ARTBA). Postmaster: Send change of address to Transportation Builder®, c/o ARTBA, The ARTBA Building, 1219 28th Street, N.W., Washington, D.C. 20007. Telephone: 202289-4434, Fax: 202-289-4435, Internet: www.artba.org; E-mail: artbadc@aol.com. Periodicals postage paid at Washington, D.C., and additional mailing offices. Subscriptions are $120/year for ARTBA members, which is included in the dues; $105/year for non-members; and $200/year non-U.S. mailing addresses. Copyright ©2011 ARTBA. All rights reserved. Material may not be reproduced in any form without written permission from the

Executive Committee  Chairman: Paul Yarossi

HNTB Holdings, Ltd., New York, N.Y.   Senior Vice Chairman: Steve Wright Wright Brothers Construction, Charleston, Tenn.   First Vice Chairman: Doug Black Oldcastle Materials, Atlanta, Ga.   Northeastern Region Vice Chairman: Nick Ivanoff Ammann & Whitney, New York, N.Y.   Southern Region Vice Chairman: Tom Elmore Eutaw Construction Company, Aberdeen, Miss.   Central Region Vice Chairman: Kathi Holst RoadSafe Traffic Systems, Romeoville, Ill.   Western Region Vice Chairman: Jim Andoga Austin Bridge & Road, Austin, Texas   Vice Chairman At-Large: Ward Nye Martin Marietta Materials, Raleigh, N.C.   Vice Chairman At-Large: Bob Luffy Grandview Consultants LLC, Pittsburgh, Pa.   Vice Chairman At-Large: David S. Zachry Zachry Construction Corporation, San Antonio, Texas   Vice Chairman At-Large: John Houle 3M Traffic Safety Systems Division, St. Paul, Minn.   Vice Chairman At-Large: Bob Close Parsons Brinckerhoff, Orange County, Calif.   Vice Chairman At-Large: John Kulka HRI, Inc., State College, Pa.   Treasurer: Tom Hill Summit Materials, LLC, Washington, D.C. Secretary & President/CEO: T. Peter Ruane ARTBA, Washington, D.C.   ARTBA-TDF Board of Trustees Chairman: Leo Vecellio Jr., Vecellio Group, West Palm Beach, Fla.  Young Executive Leadership Council Chairman: Chris Fronheiser, AECOM, Baltimore, Md.  Contractors: Jeff Nelson David Nelson Construction Company, Palm Harbor, Fla.  Contractors First Vice President: Bob Alger The Lane Construction Corporation, Cheshire, Conn.  Planning and Design Division: Larry Peterson Kleinfelder, Kuna, Idaho  Traffic Safety Industry: Taylor Bowlden 3M’s Traffic Safety Systems Division, Washington, D.C.   Materials & Services: Steve McGough HCSS, Sugar Land, Texas  Transportation Officials: Tim Zahrn Sangamon County Engineer, Sangamon, Ill.  Manufacturers Representative: Ron DeFeo Terex Corporation, Westport, Conn.  Research and Education: Deborah Underwood North Carolina A &T University Transportation Institute, Greensboro, N.C.  Public-Private Partnerships: Patrick Rhode Cintra U.S., Austin, Texas  Council of State Executives Chairman: Marc Herbst Long Island Contractors’ Association, Hauppauge, N.Y.   Immediate Past ARTBA Chairman: Bill Cox Corman Construction, Annapolis Junction, Md.  Past Chairmen’s Council Representative: Jim Madara Gannett Fleming, Allentown, Pa.

publisher. Reg. U.S. Patent & Trademark Office. Visit us: www.transportationbuilder.com

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from ARTBA chairman Paul Yarossi can never give up. We have to keep scratching for everything we can get until we get what we want.

“KEEP SCRATCHING”

I

t is an honor to be elected ARTBA chairman and help lead the nation’s most respected transportation construction organization. My firm has been involved with ARTBA for more than 60 years. HNTB founding partner Enoch Needles, the “N” in our company, served as ARTBA chairman from 1949-51. Since then, two other HNTB executives—my former colleagues John Wight and Dan Spigai—have also held the position. I have been involved with ARTBA in one capacity or another for over a decade, and I have seen first-hand the important role this organization plays in promoting and protecting our interests in the federal policy arena. There is a sign in the Washington, D.C., headquarters that reads, “We Advance the Interests of the Transportation Construction Industry. Period!” That singular mission could not be more critical to the future of our individual businesses and organizations.

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There is no question that the political climate in Washington is one of the most challenging we have ever faced. I often hear from friends in the industry who are resolved to the idea that “we are going to get what we are going to get” when it comes to federal investment in transportation infrastructure. We cannot accept this thinking. We must continue fighting for robustly funded, long-term reauthorization of the federal highway, transit and aviation programs. And we should remain cautiously optimistic, because we know transportation investment is the right thing for the country and sound public policy. Rest assured that if we only end up with a two-year highway/transit bill, ARTBA will quickly pivot to the future with the creation of a new Reauthorization Task Force. This group will be charged with developing the industry’s legislative blueprint for the next bill. As I said during the 2011 ARTBA National Convention in Monterey, our industry

Another challenge that I would like to tackle in the year ahead, and need your support on, is the transportation design and construction industry’s image problem. For too long, people outside our industry have helped shape its public image. The “shovel ready” caricature and “bridge to nowhere” come to mind. In the months ahead, ARTBA plans to build on the recommendations of the 2011 Strategic Planning Committee and the work of previous ARTBA chairman Bill Cox, to take greater control of the industry’s image by demonstrating the innovations we are developing, which benefit taxpayers, and the many contributions our projects make to the country as a whole. If we can clearly demonstrate these benefits to the public, then we will have an easier time getting the types of funding and policies we need. The “Transportation Makes America Work” campaign will be the primary vehicle for this effort. As the association works toward these important policy and public relations goals, I plan to enlist the help of the industry’s youngest and brightest. The ARTBA Young Executive Development Program, a three-day “crash course” on industry advocacy held each May, generates a tremendous amount of energy and enthusiasm for our industry and its public policy efforts. Our goal moving forward is to keep these people engaged in the mission long after they leave Washington through ARTBA’s Young Executive Leadership Council, social media tools, webinars and other means of communication. After all, what we accomplish today will determine the

Nov.-Dec. 2011


playing field they inherit. Achieving these goals will not be easy, and clearly we have a lot of work cut out for us. But people in our industry like a good challenge. Whether it is building a bridge across a three-mile river, or tunneling under a body of water to add room for a multi-lane highway, if it were easy, we probably wouldn’t be doing it. So, I look forward to the year ahead as your chairman and building a better America with you.

HNTB Corporation

Editor’s Note: When I was hired back in October to be editor of “Transportation Builder” (TB) with a B.A. in graphic design, all eyes were on me to create a fresh new look for the publication. After a month of research and planning and as part of ARTBA’s continued effort to better serve you, our members, I am thrilled to roll out the magazine’s redesign. My goal was to create a more modern look that was “cleaner”and easier to read. As technology continues to rapidly change, graphic design evolves right along with it. The new TB is a reflection of ARTBA’s commitment to staying on top of the latest publication design trends. Jenny Ragone, Publications Editor & Graphic Designer

This issue’s cover story, beginning on page 6, spotlights the distinguished career of 2012 ARTBA Chairman Paul Yarossi and outlines his goals for the year ahead. On page 28, in what is highly anticipated each year, ARTBA Senior Economist Alison Premo Black provides her 2012 transportation construction market economic forecast. We also have a feature story from special guest writer, Dan McNichol, the best-selling author of “The Roads That Built America.” He shares with us the rebuilding of the San Francisco-Oakland Bay Bridge, one of the busiest bridges on earth. Please let me know what you think of the new look. Contact me at jragone@artba.org or give me a call at 202.289.4434 with your thoughts.

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president’s desk members of Congress, regularly meeting with current members, and almost daily contact with key transportation committee staff.

Transportation Makes America Work

T. Peter Ruane ARTBA President & CEO

ARTBA 2011 = Big “ROI”

I

begin this year-end column by saying “thank you” to all ARTBA members for your personal and financial support during 2011.Your grassroots actions in particular have had a positive impact. We realize that working through a down economy has been challenging for everyone involved in transportation design and construction. The poisonous, hyper-partisan political atmosphere in Washington, D.C., and many state capitals across the nation, has also introduced a higher than normal level of uncertainty about future market prospects. By continuing to stick together during these hard times, however, better days can—and will—lie ahead!

Turning Back the Tide True to its mission, ARTBA worked to build and protect your market in 2011. Our #1 accomplishment has been helping turn back the tide from a possible massive cut in federal surface transportation investment in 2012, to 8

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leadership agreement in both political parties that the line should largely be held on federal highway/transit investment. Some states cut back on transportation. The federal government did not… despite the ongoing, bitter fights that have taken place over spending and priorities. In fact, over the past three years, it’s been federal dollars that have stabilized the market in most states. While we still have not achieved our top legislative objectives of securing a well-funded, multi-year reauthorization of the federal surface and aviation transportation programs, much progress has been made. As I write, the Senate EPW Committee has unanimously approved a two-year reauthorization bill, and House Speaker John Boehner (R-Ohio) has indicated his desire to complete action on a highway/transit bill in December. This movement forward didn’t just happen by itself. ARTBA’s role started with educating the nearly 100 new

Under the “Transportation Makes America Work” campaign banner, we developed the award-winning “Reagan/Clinton” television and radio ads that have saturated Capitol Hill and key congressional district media markets. Partnering with the American Public Transportation Association and the U.S. Chamber of Commerce-led “Americans for Transportation Mobility,” the ads generated more than 20 million impressions. The ARTBA co-chaired Transportation Construction Coalition also produced a landmark study by the Harvard School of Public Health on the unnecessary public health costs being caused by traffic congestion.

“Had Your Back” We also “had your back” on the regulatory front, filing comments nearly 25 times with federal agencies on clean air and water, transportation conformity, retro-reflectivity issues and more. ARTBA was also involved in four, ongoing federal court actions to stop or limit unnecessary burdens on member firms and agencies.

New Programs & Services To better serve you, we rolled out new activities, including the TransOvation Workshop, Bridge Preservation Action Team, Women Leaders in Transportation Design & Construction Council & Awards program, Intelligent Transportation Systems Council, “Transportation Development Hall of Fame” gala dinner, “Best of the Best” safety academy and an

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Times remain challenging and we know you have a choice as to which associations you will support, if any. At ARTBA, we are very proud to represent you and hope you see the return on your dues investment. Be assured we will never take your support for granted and continue to work hard every day on your behalf. Here’s to an even better 2012 for ARTBA and the transportation design and construction industry it represents!

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by Rich Juliano

An ARTBA Tribute to

TOM WALKER The following are October 20 remarks made by ARTBA Vice President for Federal and State Relations Rich Juliano during the Wisconsin Transportation Builders Association fall meeting honoring the life of Tom Walker.

I

am incredibly honored to have been asked to share memories of Tom Walker with you. I am fortunate to be speaking on behalf of ARTBA, your national association, and Tom’s colleagues at contractor associations around the country. I’ve spoken and e-mailed with many of them this week, and they wanted Sandy, the family and all of you to know how much Tom meant to them. You know, we meet and work with people in our lives who bring certain qualities to their endeavors. Some people have an astounding intellect—an ability to absorb information, analyze it, determine what’s important and then share their well-formed opinion. Some people have an incredible passion for what they do every day. Some people are more than they seem to be when you first meet them. Once you get to know them better, you’ll learn about some amazing life experiences they’ve had. And some people can’t be replaced. Tom Walker was all of these things. I started working at ARTBA in the spring of 2002. I remember hearing Tom Walker’s name mentioned for the first time—literally—within a day after I started work. And it was in a context that—I later realized—was very common—along the lines of, “We’d better send this to Tom Walker and see what he thinks of it,” or, “Call Tom Walker and ask him if he’ll look this over.” A couple years later, I took on new duties at ARTBA—essentially the job I have now—working with our chapters and our contractors around the country. Bill Toohey, our COO, said, “The first thing we want you to do is get on a plane, fly to Madison and meet with Tom Walker.”

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Tom was about to become chairman of our Council of State Executives, his national peer group, so we would be working together closely. I didn’t know Tom very well and was frankly a little afraid of him, as you can imagine, because he knew so much more than I did about so many important issues relating to our members. But on that trip Tom could not have been more welcoming. He and Sandy took me to dinner at Delmonico’s. We sat in the WTBA office and talked through several of those important issues, and I met the other staff, including Kevin. My favorite part of those two days, however, was when Tom took me in his car for a driving tour of Madison. It was my first trip here and over those few hours I quickly recognized why so many people love this area. Tom showed me the Capitol, the university, and the many different beautiful neighborhoods, including his own. He was very generous with his time and insights. Tom didn’t say much when that visit wrapped up, but a couple weeks later Jim Peterson called and told me, “You’ve really made a friend in Tom Walker.” And my education courtesy of Tom went on from there. Some months later, Tom brought all of his counterparts to Kohler for our annual state executives meeting. One clear impression from that meeting was how much Tom loved Wisconsin, his adopted home state. He gave a little talk on the first night about why he loved it here, and he brought in a Wisconsin historian to give us an additional perspective as well. I mentioned ‘passion’ earlier, as did Pat. We were talking at the ARTBA office earlier this week as this bad news sank in, and my colleague Dave Bauer commented, “No one fought for contractors harder than Tom.”

“So this was our friend Tom Walker. An advocate. An innovator. A teacher. A student. A leader. “

To that end, the most important point I want to share with you today is how much we relied on Tom at the national level. I simply can’t overstate it. Need someone to critically read a 50-page report? Call Tom. Need someone to analyze a new bill in Congress in 24 hours? Call Tom. Need someone to testify at a hearing on Capitol Hill next week? Call Tom.

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Tom about where he grew up, how he got interested in transportation, and some other aspects of his life history. Turns out Tom started collecting highway maps when he was a boy in the New York City area, and during his college years he had some incredible experiences hitchhiking all over the U.S., just to see the country. Those stories were amazing and a window to the bygone America of his youth. And to me, that explained why he and Sandy would often take two-week driving vacations to attend ARTBA meetings around the country, no matter how far-flung from Madison. Even in his later years, Tom never tired of getting on the road to see the old sites or discover new ones.

Pete Ruane presents the ARTBA Award to Tom Walker back in 2005.

Need someone to chair a policy task force? Call Tom. Of course many of these tasks are things that we do internally at ARTBA, but we would ask Tom to get involved because he always added incalculable value, especially since he was so close to the real world through the challenges that all of you faced at the state level. ARTBA honored Tom with its highest award in 2005, but it was he who bestowed the honor on us with his continued insight. And whenever he complimented our work, I can tell you it was a true seal of approval. You can use a lot of terms to describe Tom Walker, but of course “shrinking violet” wasn’t one of them. From ARTBA’s standpoint, he challenged us. He taught us. He led us. He made us more effective. He supported what we did when we needed his help. And for being a man of such incredible intellect, he was not a bully. He was not a naysayer. He did not disagree for the sake of disagreeing. And it was never about him or his ego. It was about all of you whom he represented. That’s why he had a hand in so many successful programs in this state over the years, which are models for the nation. There have been several innovations in funding and policy—on the state and national levels—for which we can thank Tom Walker. And Tom was one of a very small circle of people anywhere in the country who understood so many of these arcane programs and issues as well as he did. Finally, I told you there was more than met the eye with Tom. When he was Council of State Executives chairman, Tom invited me to a small dinner in Las Vegas during CONEXPO. I’m really glad I spent that time with him. It was more of a social occasion and for the first time I had the chance to ask

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So this was our friend Tom Walker. An advocate. An innovator. A teacher. A student. A leader. Over the past few days, I’ve been in touch with many of Tom’s current and former counterparts from around the country. I’ve also had conversations with the many other ARTBA staff who worked with Tom over the years. All of us shared the same primary reaction: we just can’t believe Tom is gone. Gone from our national meetings, gone from our conference calls, gone from our on-line communications, through all of which he shared so much wisdom. From my standpoint, no more phone calls or e-mails in which he asked very precise questions or raised a specific issue he thought ARTBA needed to address. Like all of you, I can still see and hear him very clearly. In fact, on my most recent visit to this hotel for a WTBA event last year, Tom was the last person I spoke to before heading home. I can still remember where he was sitting when we talked out there in the hall. So for all of us, this sudden absence will be hard to process. Tom loved advocating for all of you. Many of us share that passion, and can only aspire to raise our own dedication to Tom’s level. But Tom Walker can’t be replaced. So as the industry faces unprecedented challenges, those of us who advocate for you will have to work that much harder without Tom. On behalf of ARTBA’s leaders, members, chapters and staff, as well as his colleagues from around the country, we offer condolences to Sandy and the family, and to all of you who knew Tom so well. ” Rich Juliano is ARTBA vice president for federal & state relations: rjuliano@artba.org

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2012 ARTBA EXECUTIVE COMMITTEE

The following outstanding industry leaders were elected to the ARTBA Executive Committee during the October ARTBA National Convention in Monterey:

Paul A. Yarossi

Founded in 1914 as a railroad bridge design firm, HNTB has developed a reputation for excellence and innovation in the infrastructure industry. The firm provides a range of services from civil engineering, architecture, planning and construction management.

Steve Wright

Founded in 1961 by brothers, James and Robert Wright, the company performs site preparation, grading, excavating, highway and heavy construction services. Wright Brothers has moved hundreds of millions of cubic yards of soil and has completed infrastructure projects in almost every state in the southeastern U.S.

Doug Black

Oldcastle Materials, Inc., a division of CRH plc, the international building materials group, is one of the leading vertically integrated supplier of aggregates, asphalt, ready mixed concrete, and construction and paving services in the United States. The firm has 17,500 employees at more than 1,200 locations in 44 states and generates more than $6 billion in revenues annually.

Nick Ivanoff

Founded in 1946, Ammann & Whitney and its architectural affiliate, A&W Architects and Engineers, provide design and construction services for public and private sector clients. Known for an ability to handle complex projects and provide award-winning, innovative and cost-effective solutions, the firm’s work focuses on new construction, renovation and adaptive reuse, historic preservation, interior design and sustainable design.

Tom Elmore

Eutaw Construction Company is named for the strong eutaw clay which is prevalent in northeast Mississippi. For nearly 30 years, the company has provided municipalities, state and federal agencies and the private sector with reliable, professional heavy construction services on highways and utility projects, demolition and disaster relief.

Kathi Holst

RoadSafe Traffic Systems, Inc., a national company, provides the roadway construction industry with the latest technologies in efficient traffic control and protection services. The company’s tagline, “Life on the Road,” reflects its dedication to work zone safety and commitment to protecting the motoring public, pedestrians, workers and property.

Jim Andoga

Austin Bridge & Road began building bridges in the late 1880s. Today, it provides pre-construction services, design-build, construction management and general contracting services in the heavy highway industry. The company has expertise in site preparation, underground utilities, asphalt and concrete paving, and construction of bridges and other structures.

Chairman pyarossi@hntb.com President HNTB Holdings, Ltd. HNTB Corporation New York, N.Y.

Senior Vice Chairman swright@wbcci.com President Wright Brothers Construction Co., Inc. Charleston, Tenn.

First Vice Chairman doug.black@oldcastlematerials.com CEO Oldcastle Materials Atlanta, Ga.

Northeastern Region Vice Chairman nivanoff@ammann-whitney.com President & CEO Ammann & Whitney New York, N.Y.

Southern Region Vice Chairman telmore@eutawconstruction.com Founder & President Eutaw Construction Company Aberdeen, Miss.

Central Region Vice Chairman kholst@roadsafetraffic.com Senior Vice President RoadSafe Traffic Systems, Inc. Romeoville, Ill.

Western Region Vice Chairman andoga@austin-ind.com President Austin Bridge & Road Austin, Texas

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Ward Nye

Martin Marietta Materials is the nation’s second largest producer of construction aggregates used primarily for construction of highways and other infrastructure projects, in certain green initiatives, including flue gas desulphurization, and in the domestic commercial and residential construction industries. The firm’s Aggregates Business’ network for more than 285 quarries, distribution yards and plants, spans coast to coast through 27 states, Canada, the Bahamas and the Caribbean Islands.

Bob Luffy

Luffy retired in 2010 after a distinguished career with American Bridge in Coraopolis, Pennsylvania. He now runs his own company, Grandview Consultants LLC, which advises investors on potential acquisitions and valuation of existing investments.

Vice Chairman At-Large ward.nye@martinmarietta.com President & CEO Martin Marietta Materials Raleigh, N.C.

Vice Chairman At-Large bobluffy@comcast.net Grandview Consultants LLC Pittsburgh, Pa.

David S. Zachry

Zachry Construction Corporation began in 1924 with the construction of a series of bridges using mule-drawn graders. Over the years, the company has pioneered techniques that have become the standard for today’s heavy and building construction. It offers a wide variety of general construction, project development and construction management services.

John Houle

3M Traffic Safety Systems Division develops products, systems and services that help improve traffic safety and management. The division provides a wide variety of safety products, such as highway sign and pavement marking materials directly to government, sign fabricators and pavement marking contractors.

Bob Close

Parsons Brinckerhoff is a global consulting firm assisting public and private clients to plan, develop, design, construct, operate and maintain thousands of critical infrastructure projects around the world. Founded in New York City in 1885, the company provides services for all modes of infrastructure, including transportation, power, energy, community development, water, mining and the environment.

John Kulka

Since its founding in 1947, the small, family-owned paving company HRI, Inc., has grown to become a major contractor working on asphalt paving, heavy and highway construction throughout Pennsylvania. Today, as a part of the large multi-national corporation Colas SA, the company supports a global organization dedicated to all aspects of the road building industry.

Tom Hill

Summit Materials was formed in 2009 to acquire and grow heavy-side building materials companies in the aggregates, ready-mix concrete, cement, asphalt paving and construction industries. By teaming up with established local businesses, Summit is committed to creating value, providing access to growth capital and putting a focus on environmental and social responsibility.

T. Peter Ruane

Established in 1902, ARTBA represents the transportation design and construction industry before Congress, the White House, federal agencies, news media and general public.

Vice Chairman At-Large david.zachry@zachrycorp.com President & CEO Zachry Construction Corp. San Antonio, Texas

Vice Chairman At-Large jrhoule@mmm.com Vice President & General Manager 3M Traffic Safety Systems Division St. Paul, Minn.

Vice Chairman At-Large close@pbworld.com Vice President Parsons Brinckerhoff Orange County, Calif.

Vice Chairman At-Large jkulka@hrico.com President HRI, Inc. State College, Pa.

Treasurer thill@summit-materials.com CEO Summit Materials, LLC Washington, D.C.

Secretary pruane@artba.org President & CEO ARTBA Washington, D.C.

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Leo Vecellio, Jr.

The Vecellio Group is a fourth-generation, family-owned and operated business, tracing its roots back to 1900, when Enrico Vecellio began a masonry contracting business in West Virginia. Today, the company is made up of six divisisions offering a wide range of heavy/highway, mining and energy services and products to both public and private-sector customers.

Chris Fronheiser

Listed by “Fortune 500” as one of America’s largest companies, AECOM is a global leader in providing fully integrated professional technical and management support services for a broad range of markets from transportation, energy and water systems, to enhancing environments and creating new buildings and communities.

Jeff Nelson

David Nelson Contracting specializes in commercial buildings, heavy highway construction, site work and underground utilities. With over 35 years of experience in the construction industry, the company has constructed several hundreds of lane miles for both public and private owners and numerous toll plazas. It provides a wide range of contract delivery systems, from design build to fixed price.

Bob Alger

The Lane Construction Corporation, founded by railroad engineer John S. Lane in 1890, is one of America’s premier heavy civil contractors specializing in quality highways, bridges, locks, dams, and mass transit and airport systems. Lane and its 11 affiliates also produce bituminous and precast concrete, and mine aggregates at 70 plants and 11 quarries throughout New England, the Mid-Atlantic region, and the Southeast and South Central United States.

Larry Peterson

Kleinfelder is an employee-owned company offering comprehensive engineering, science and architecture consulting services to clients worldwide. With more than 50 years of experience, it delivers thousands of complex projects in the energy, facilities, federal, transportation, and water markets.

Taylor Bowlden

3M, an innovation leader in traffic safety for more than 65 years, combines comprehensive systems and services with high-performance materials to provide safety and visibility to better serve motorists in today’s challenging driving conditions.

Steve McGough

HCSS provides integrated construction management software solutions designed to improve operational efficiency for infrastructure contractors. With estimating, field management, and resource management software, thousands of contrators fully integrate and streamline their operations from the estimate through project completion.

Tim Zahrn

The Sangamon County Highway Engineering Department constructs and maintains 253 miles of county highway and 63 bridges in Sangamon County, Illinois. They also prepare road and bridge construction plans and maps of the county.

ARTBA-TDF Board of Trustees Chairman lvecellio@vecelliogroup.com Chairman & CEO The Vecellio Group West Palm Beach, Fla.

Young Executive Leadership Council Chairman christopher.fronheiser@aecom.com Associate Vice President Transportation, AECOM Baltimore, Md.

Contractors Division President jnelson@nelson-construction.com President David Nelson Construction Company Palm Harbor, Fla.

Contractors Division First Vice President realger@laneconstruct.com President/CEO The Lane Construction Corporation Cheshire, Conn.

Planning and Design Division President lpeterson@kleinfelder.com Senior Principal Kleinfelder Kuna, Idaho

Traffic Safety Industry Division President trbowlden@mmm.com Manager Federal Government Affairs 3M Traffic Safety Systems Division Washington, D.C.

Materials & Services Division President steve.mcgough@hcss.com COO HCSS Sugar Land, Texas

Transportation Officials Division President timz@co.sangamon.il.us County Engineer Sangamon County Highway Engineering Department Sangamon, Ill.

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Ronald DeFeo

Terex is a global heavy equipment leader. It manufactures a broad range of equipment for use in various industries, including the construction, infrastructure, quarrying, mining, shipping, transportation, refining, energy and utility industries.

Deborah Underwood

Since 1970, the Transportation Institute at North Carolina A&T State University (UTI) has been a leader in transportation research, education, and technology transfer. The Institute combines transportation research, education, and technology transfer by facilitating and expanding the relationship among transportation managers, state and federal transportation officials, and emerging transportation professionals.

Patrick Rhode

Cintra is one of the leading private developers of transport infrastructure in the world in terms of number of projects and investment volume. Its business activities are concentrated in the toll highways and car parks markets.

Marc Herbst

Formed in the 1920s, the Long Island Contractors’ Association (LICA) is the voice of the area’s highway and infrastructure professionals. Among other things, the association advocates for increased funding of public infrastructure projects and promotes safety on the job. Focused primarily on the infrastructure construction industry, such as highways, bridges, sewers, parks, other public works and private site development, LICA’s member companies play a significant role in sustaining the region’s quality of life and economic engine that is Nassau and Suffolk Counties.

Bill Cox

Since its founding in 1920 as a Washington, D.C.-area contracting company, Corman has evolved into an industry leader throughout the Mid-Atlantic region, specializing in highway construction, bridge construction and repair, underground utility work, tunnel construction, marine construction and more.

Jim Madara

Gannett Fleming has evolved from a two-person firm in 1915 to currently employing more than 2,100 individuals that provide an array of services in the transportation, water/wastewater, facilities, environmental, and information technology disciplines. With more than 60 offices throughout the U.S., Canada, Mexico, and U.A.E., the company provides consulting engineering, planning, and construction management services in every geographical area.

Manufacturers Representative rdefeo@terex.com Chairman & CEO Terex Corporation Westport, Conn.

Research and Education Division President deborahu@ncat.edu Program Manager North Carolina A&T University Transportation Institute Greensboro, N.C.

Public-Private Partnerships Division President prhode@cintra.us.com Vice President of Corporate Affairs Cintra U.S Austin, Texas

Council of State Executives Chairman mherbst@licanys.org Executive Director Long Island Contractors’ Association Hauppauge, N.Y.

Immediate Past ARTBA Chairman bcox@cormanconstruction.com President Corman Construction Annapolis Junction, Md.

Past Chairmen’s Council Representative madarajr@aol.com Senior Vice President Gannett Fleming Inc. Allentown, Pa.

Nov.-Dec. 2011

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The Bay’s New Landmark: The SAS tower is 525-feet-tall and echos the height of the four, 1930s suspension towers of the West Span (unseen to the right). By design, the SAS tower’s single, mile-long main cable presents a longer slope towards the Oakland side (left) and sharper drop on the San Francisco side (right). The new tower legs were assembled vertically on the steel mill’s dock in China before it was raised a final time in the Bay. One lift weighed nearly 2,500 tons. Lift One of the tower was comprised of four individual pieces each weighing over 1,100 tons. Photo credit: Caltrans

Rebuilding the Bay’s Famed Crossing

by Dan McNichol

T

he San Francisco-Oakland Bay Bridge is one of the busiest bridges on earth. Today, it’s being re-built. Replacing the famed crossing’s 75-year-old, earthquake damaged eastern span is one of the most sophisticated steel structures in the world. Soaring to 525-feet, the tower of the world’s longest SelfAnchored Suspension Span (SAS) is inspiring a nation to rebuild its infrastructure—its image. A minor portion of this newest American bridge was produced by one of the nation’s latest challengers—its biggest rival—China. The news that ZPMC, a Chinese steel company, won the $400 million contract to produce the SAS tower and deck segments sparked a media controversy. Why the strong opinion towards China? That’s another discussion for another day. Why was China able to produce vast quantities of steel in short time? That’s obvious. The Middle Kingdom is in the midst of a building boom that makes the construction of the Great Wall and the Grand Canal appear trite. Fifty percent of the world’s steel production happens in China. Japan produces just seven percent, which is sadly more steel than the United States produces. China is capable of fulfilling the largest orders of steel to be delivered anywhere around the globe. ZPMC delivered the SAS segments to San Francisco in the hulls of their own ships.

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Lay-Down-Assembly: Pre-assembed on ZPMC’s dock in Shanghai are the sections of the SAS deck. “Progressive Assembly in China was a must.” You don’t want a 1,000 ton segment to be sitting on the hook in the Bay and it not fit into place,” explains Mike Flowers, CEO of American Bridge Company. Photo credit: Dan McNichol

The “Left-Coast-Lifter:” A customized crane nicknamed the “Left-Coast-Lifter” lowers one of the last sections of the of the Bay Bridge’s East Span into place this past October. “You’d expect to hear metalon-metal sounds when these giant segments are placed. The mill work is so precise, you just don’t,” reports Caltrans spokesman Bart Ney. Photo credit: Caltrans

Time is money. But, on the Bay Bridge, time is also a matter of life-and-death. The threat of an earthquake hangs over the bridge’s rebuilding schedule. The Bay Bridge is magnificent—its location is not. Because the Bay Bridge sits between the San Andreas and Hayward Faults, strengthening the bridge before another earthquake shakes it, means sourcing the steel from a plant with enormous capacity. Again, that’s China. ZPMC’s facility in Shanghai is approximately three million square feet— more than the Empire State Building. “It’s a huge public safety issue. We have a bridge that carries almost 300,000 vehicles a day, one of the busiest bridges in the country, that’s probably going to fail—catastrophically —in the next major earthquake,” stresses Tony Anziano of Caltrans, who also serves as manager for the Toll Bridge Program Oversight Committee. “We need to get the new bridge done as quickly as possible.” Anziano puts the amount of steel into perspective, “The SAS section of our bridge that was fabricated in China is only a fraction of our overall project. We’ve got a 2.2-mile long stretch that comprises the Eastern span. Out of that 2.2 miles

Nov.-Dec. 2011

between Yerba Buena Island and Oakland, about a third-of-amile was fabricated overseas. That’s what we’re talking about. We ought to be focused on the vast majority of the bridge project. The majority of steel on this project is domestically sourced. It’s all being erected onsite by U.S. workers. And the companies involved here are United States companies that have been doing the construction work.” To understand why the work is not done domestically, examine the speed of delivery for steel in the U.S. The concrete Skyway, a separate project connecting the SAS to Oakland, interfaces with the SAS section with two steel box-girder segments. The Skyway was under a “Buy America” clause. As a result, its sections were fabricated at a midsize steel fabricator in Vancouver, Washington. Running at 50 to 60 percent of capacity on the Bay Bridge job, it took the fabricator two-years to produce just two sections. There are 50 sections to the SAS tower and deck of comparable size, greater complexity, involving much more welding. “Do the math,” says the direct Anziano. “That’s 50 years of fabrication if you were to do it all at that one facility.You got

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to be fair on this.You say, ‘Can you maybe carve that up and distribute that so you can get the time down?’ And, the answer, to some degree, is yes, you could probably fabricate the tower separately from the deck. So maybe you could cut those 50 years down to 25 years. Maybe you could utilize a larger fabricator in this country to do the work. In fairness, let’s say that cuts the time in half again. Now you are looking at about 12 ½ years to do the work compared to the five it took to do in China.” But, could you send the work out all-around the U.S.? Anziano says breaking up the SAS steel fabrication would have exposed the Bay Bridge project to a major hazard. “This project has very tight tolerances. It has to have them to achieve the seismic performances that we need to have in a major event [earthquake]. It’s critical that you don’t carve a project like that up into a whole bunch of different locations and have different people doing the work. If you do that, all you’re doing is introducing a huge risk to field erection when you get the stuff out here. If it doesn’t fit, then what do you do? I don’t think any contractor in their right mind would’ve taken on that risk. So, can you chop it up and distribute it? No, you really can’t. That’s not realistic. The best-case scenario is maybe you’re looking at 12 ½ years to do the work domestically. We don’t have the facilities in this country at this time that can do what the facilities overseas can do. That’s simply a reflection that we haven’t been doing much big-bridge building in this country.” Anziano knows risk. He’s been supervising seismic retrofits for Caltrans’s many celebrated bridge superstructures. As a public official, Anziano’s primary responsibility is public safety—not political posturing. An intense, publicly minded, professionally motivated man, Anziano is to the point when addressing the concerns around the media circus over a minority portion of the project’s steel coming from China. “Every time an issue like this comes up, it creates the possibility—the reality—of slowing us down. That’s not a good thing. If there is a real reason to slow us down, that’s a different question. But, media attention and politics are not good reasons to slow us down. It hurts us and the public.” “The main span was put out to bid twice,” recalls Anziano. “The first time, in 2004, federal funds were a possibility so ‘Buy America’ did apply. We asked contractors to submit alternate bids on the job. They were supposed to submit one bid for steel fabrication domestically—one for steel fabrication

on an international basis. We received only one single bid on this in 2004. And, it came in, not surprisingly, high given the situation we were facing based on bonding, insurance and materials prices. American Bridge Company–Fluor submitted that bid and they actually bid the job at around $1.4 billion sourcing the steel internationally verses $1.8 sourcing it domestically. That cost differential invoked a ‘Buy America’ exception that would have required the job go international. The bottom line: out of that first bid we validated what we already seemed to know, that this project would probably have to go international.” Caltrans was short on funds due to their in-house engineer’s estimate being much lower than the American Bridge CompanyFluor-Nippon Bridge’s bid. In 2006, the highway department had a new internal estimate and additional funds. This time there were two bidders: American Bridge Company-Fluor-Nippon Bridge, and Kiewit-Koch-Skanska. At this point in the bidding process the funding was all California funds—no federal money. The language indicates that California has determined it does not want “Buy America.” Rather, the Golden State takes a simple low bid approach to civil projects. Contractor American Bridge Company–Fluor won again with its bid for $1.4 billion with steel sourced through China. “We like to call it warranty work,” jokes Mike Flowers, chief executive officer for the American Bridge Company. “We built the Bay Bridge 75 years ago and now we’re rebuilding it.” Kidding aside, had there been a warranty for the bridge, it would have been voided by any reasonable non-compliance or act-ofGod clauses. The Bay Bridge wasn’t designed to carry the loads that are allowed to drive upon it today. Another reason the bridge needs so much reinforcing. Say nothing of the damage to the entire bridge caused by the 1989 Loma Prieta Earthquake. “The reality is the bridge is carrying a lot more traffic and heavier vehicles than it was ever designed for when Model-Ts first started crossing it. No one ever thought there would be 280,000 vehicles crossing that bridge,” reflects Flowers. “The over all team: Caltrans, American Bridge Company, Fluor, and Caltrop/Alta Vista, the quality assurance inspector on site and in China, has assured that this bridge job was inspected more than any other bridge ever built any place in the world,” explains Flowers, “We engaged Ph.D. metallurgists, inspectors and engineers to back that statement.” “This SAS bridge is one of a kind,” assures Flowers. “I am not sure I’ve ever seen anything like it. I may never see anything like it again.” Dan McNichol is the author of “The Roads That Built America:” dan@danmcnichol.com

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e m

ric a

ge A

gA Servin

gen cies

Natio n

P & TTAP TA Pr L l

s ram og

a

www.ltapt2.org

id ’s L Br & ocal Road

Enhancing Transportation for Over 25 Years Federal Highway Administration’s (FHWA) Local and Tribal Technical Assistance Program (LTAP/TTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300,000 bridges in the United States. The LTAP/TTAP network consists of 58 Centers; one in each state, Puerto Rico and regional Centers that serve tribal governments. These Centers may also be known by many other names such as T2, T3 or Technology Transfer Centers. Most LTAP/TTAP Centers

      All Centers share a common goal; to bring transportation technology, services, products, and educational resources to the local level.       environmentally sound surface transportation system by improving skills and increasing knowledge of the transportation workforce and decision makers.

        visit www.ltapt2.org.

The FHWA LTAP/TTAP Clearinghouse, managed by the American Road & Transportation Builders AssociationTransportation Development Foundation (ARTBA-TDF), provides program support for LTAP and TTAP centers. Nov.-Dec. 2011

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2011 Environmental & Regulatory

Issues—ARTBA’s Got Your Back

W

hile much of the focus during 2011 has understandably been on the multi-year highway and transit bill, there is another “hidden story” worthy of your attention. ARTBA has been working aggressively to beat back an onslaught of federal regulatory actions launched by the Administration and to represent your interests in court. This year, ARTBA filed formal comments and/or testified on proposed regulations that could impact industry firms and agencies nearly 25 times. We visited more than 100 congressional offices to discuss EPA’s proposal to declare coal ash a hazardous material, which, a groundbreaking study by the ARTBA economics team estimated, would unnecessarily drive up the cost of transportation projects in the U.S. by more than $100 billion over the next 20 years. And we were involved in four, ongoing federal court actions to stop or limit unnecessary burdens on member firms and agencies.

Landmark Coal Ash Study In September, ARTBA released a groundbreaking study, “The Economic Impacts of Prohibiting Coal Ash Use in Transportation Construction,” which offered timely, critical information as EPA considered regulations to label recycled coal ash as a “hazardous” material, making it nearly impossible to use in highway construction. The study helped provide momentum for bipartisan, House approved legislation (H.R. 2273) to ensure coal ash will continue to be an important transportation building material. A companion bill (S. 1751) in the Senate also with bipartisan support awaits final action. The Economic Impacts of Prohibiting Coal Fly Ash Use in Transportation Infrastructure Construction

Let me give you additional background on our efforts. In a huge victory for the industry, the U.S. Environmental Protection Agency (EPA) withdrew its proposed rule to tighten ozone standards. If enacted, the standards would have placed highway funding in jeopardy for hundreds of counties. Through multiple sets of comments and testimony submitted throughout 2010 and 2011, ARTBA warned the EPA that tightening the standards was akin to “moving the goalposts in the middle of a game” and transportation improvements, many of which contribute to improving air quality, would be needlessly put at risk.

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September 2011

Regulatory Filings ARTBA’s numerous filings to federal agencies representing the industry’s views covered such issues as the Clean Air & Water Acts, transportation conformity, stormwater, wetlands permitting and retro-reflectivity. ARTBA

by Nick Goldstein

was also the only construction-related group to participate in-person and in-writing at hearings following a presidentially-ordered review of EPA, Department of Transportation and Small Business Administration regulations.

Legal Advocacy On the legal front, ARTBA was involved in two cases before the U.S. Supreme Court. In PPL Montana v. State of Montana, we are fighting to ensure the Court does not adopt a severely weakened or nonexistent concept of “navigability,” which could lead to a scenario where the EPA and the U.S. Army Corps of Engineers would have the option of exerting jurisdiction over roadside ditches. In Sackett v. EPA, ARTBA is seeking to determine if EPA jurisdiction could be challenged at the beginning of the transportation planning process, rather than waiting for the agency to assert a violation after the fact. ARTBA is also litigating two additional federal appellate cases. In one, it is challenging EPA’s unprecedented revocation of a valid wetlands permit, and in the other, is fighting against efforts to expand the definition of “point source,” which would lead to increased regulatory requirements for transportation construction projects. Be assured that whether it’s in the halls of Congress and federal agencies, or in the halls of justice, ARTBA will continue to “have your back” on the environmental and regulatory fronts. Nick Goldstein is ARTBA vice president of environmental and regulatory affairs: ngoldstein@artba.org

Nov.-Dec. 2011


Kathi  Holst  knows  that  all  things   roadway  safety  are  just  a  click  away. That’s  why  she  and  her  employees  at   RoadSafe  Traffic  Systems  regularly   access  www.workzonesafety.org. The  National  Work  Zone  Safety  Information   Clearinghouse  is  the  world’s  largest  online   information  source  for  educational  and  training   materials—including  the  FHWA  Training  Grant   products  and  services—as  well  as  laws  and   regulations,  statistics  and  best  practices.  

Use  It‌Save  Lives!

Information  provided  by  the  National  Work  Zone  Safety  Information  Clearinghouse,  award  #DTFH61-­06-­H-­00015,  does  not   ""!'!)##%&"# ! &'"#!# !#!!" !## $!"""#!" !## % # $#!"#" ( !$#""!%"# ' !"#'# !$"! 

Nov.-Dec. 2011

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by Matt Jeanneret and Beth McGinn

2012 ARTBA Chairman:

Born to Be

an Engineer P

aul Yarossi was born to be an engineer.

His mother’s father started one construction company, and two of his uncles started others. He was always around people who were building driveways, sidewalks, patios and other projects. Because of it, he was drawn to construction. He also had a strong aptitude for math, so engineering was a natural choice. His grandfather, who immigrated to America from Italy, and two of his uncles, started their own construction companies. “When I was 15, I started working for my grandfather, pushing a wheelbarrow, shoveling dirt, raking and mixing concrete—anything he needed,” Yarossi says. “I learned how to be a mason. It was good work; you were outside and it kept you in shape. After working my way up, I was able to drive a dump truck.” When he graduated from Manhattan College in New York in 1973 with a degree in civil engineering, he took a job making $5 an hour with HNTB, one of the nation’s top engineering, architecture, and construction management firms. Nearly 40 years later,Yarossi is now president of HNTB Holdings, Ltd., and serves on the board of directors and executive committee of The HNTB Companies.

Nov.-Dec. 2011

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Paul and his wife of 33 years, Anita.

A Yarossi-style family vacation.

He’s also the newly elected chairman of the American Road & Transportation Builders Association (ARTBA).

firm’s training and development programs.

On the Job Experience

Yarossi’s service to industry and business groups runs deep. His impressive decade-long roster of ARTBA leadership positions includes: senior vice chairman, first vice chairman, vice chairman at-large, chairman of the Transportation Design and Construction Innovation Advisory Committee, and co-chairman of the ARTBA SAFETEA-LU Reauthorization Task Force.

Yarossi began his HNTB career with basic engineering work on water infrastructure projects. It was a good learning experience. “Once I was assigned to produce the drawings for an irrigation system in a private development. It was a Friday before Labor Day, and we had to give the drawings to the client on Tuesday,” he says. “My boss took a look at them and said they were all wrong. He was furious. I thought it was the end of my career. I stayed until 2 or 3 a.m., fixing them. The big lesson was that they don’t teach you everything in college. When I woke up the next day, I realized what makes a good manager. My boss had given me a good talking to, but he had also showed me how to correct my mistake and then stayed and helped me.” Over time,Yarossi became known within HNTB as a problem solver. He went on to manage major road and bridge projects as officer-in-charge of company offices in New York and New Jersey. As chairman of the firm’s Aviation Services, he was instrumental in establishing training and development programs and served as principal-in-charge of planning and design projects at airports throughout the United States. Today, as an HNTB director,Yarossi is responsible for overseeing and directing the firm’s governance, capitalization strategy, compliance and audit functions, as well as its external and government relations. He’s played a key role in formulating the

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Distinguished Leadership

He’s also actively involved with the U.S. Chamber of Commerce “Let’s Rebuild America’s Leadership Council,” an American Council of Engineering Companies Transportation Committee vice chair, and member of the Design Professionals Coalition Executive Committee. Yarossi is recognized by the industry and his peers as an expert on transportation and infrastructure funding and legislation. He has testified before Congress and appears regularly on FOX Business Channel and other television news programs to push the pro-transportation investment message. He also pens opinion pieces on transportation policy matters and is regularly interviewed by reporters at leading national newspapers and industry publications.

Family Is Everything

When he’s not working or participating in industry events, Yarossi makes sure to carve out time for his family, including his wife of 33 years, Anita; his son, Mat; his father, Peter; and his two siblings Maryellen and Peter. Thanksgiving is his favorite holiday because that’s when the family gathers for several days.

Nov.-Dec. 2011


“Coming from the Italian roots that I came from, family is really everything. If you have nothing, you always have family. And that’s really the key. So being together is really what’s most important to me,”Yarossi says.

launch an expanded long-term public education and image campaign that will spotlight industry innovation in delivering transportation projects more quickly and in ways that benefit taxpayers.

Yarossi is a life-long fan of the three-time Super Bowl champion New England Patriots, which helps explain his competitive spirit and drive to win. His colleagues can also attest to his integrity, character, and commitment to his clients.

During his acceptance speech in Monterey,Yarossi also pledged to build on the work of 2011 ARTBA Chairman Bill Cox and implement the recommendations of the Strategic Planning Committee. Among other things, this will mean establishing ARTBA as a clearinghouse for its member firms, state chapters and other industry groups seeking information about successful local and state transportation investment strategies, research, legislation and advocacy programs.

Dan Spigai, a former HNTB partner and 1988 ARTBA chairman, observes: “The first thing I would say about Paul Yarossi is that he is easy to underestimate. He is quiet, but he keeps coming. He’s a stayer.” 2001 ARTBA Chairman John Wight, a former top HNTB executive who is now retired, puts it this way: “I’ve worked with Paul for about 25 years. When given a challenge, he would execute with remarkable speed and accuracy. He was not afraid to make a decision to move ahead.” Now, he tackles new challenges as the 2012 ARTBA chairman.

The Agenda At the heart of Paul Yarossi’s multi-pronged agenda is the push for passage of a robust, multi-year federal highway and transit investment bill. He knows it’s a heavy lift in the current polarized political climate, but he also knows it is critical to the industry’s future.

“The involvement of the industry’s young executives is critical to our industry’s ability to grow and protect the transportation construction market in the future,” he explained.

“The first thing I would say about Paul Yarossi is that he is easy to underestimate. He is quiet, but he keeps coming. He’s a stayer.”

Finalizing work on the long overdue aviation reauthorization measure is also an ARTBA priority,Yarossi says. If Congress fails to pass a long-term highway and transit reauthorization measure and settles for a two-year bill,Yarossi vows ARTBA will move quickly to prepare for the future by launching a new Reauthorization Task Force. The group will be charged with developing the association’s legislative and regulatory policy positions for the next bill. Yarossi is also concerned about the industry’s image. With the “bridge to nowhere” and the stimulus “shovel ready” caricatures, the industry has endured a public relations pasting over the past few years. He is committed to turning that around. Under the “Transportation Makes America Work” campaign umbrella, and as approved by the board during the October ARTBA National Convention in Monterey, the association will

Nov.-Dec. 2011

Finally,Yarossi’s agenda includes ensuring graduates of the Young Executive Development Program remain fully engaged in ARTBA with new program offerings and expanded use of social media.

Yarossi is very aware of the work that is cut out for him in the year ahead, yet he remains optimistic. “We have a great transportation system in our country, but it needs improvement,” he said. “In the 1950s, legislation accelerated the creation of our highway system, which in turn became an economic driver for the country. Our industry collectively needs to do its part to make sure Congress finds the same sense of urgency today about surface transportation, to keep our country competitive and to improve our quality of life.” Matt Jeanneret is ARTBA senior vice president of communications & marketing: mjeanneret@artba.org Beth McGinn is ARTBA director of public affairs: bmcginn@artba.org

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by Alison Premo Black

2012

Transportation Construction Market Outlook Mixed

WA

No matter how you slice it, the American Road & Transportation Builders Association’s (ARTBA) outlook for the 2012 transportation construction market is mixed.

OR

First the bad news: the highway and bridge construction market is expected to contract six percent, to $72.6 billion from an estimated $77 billion in 2011. The subway and light rail markets will be down even more. The good news: the railroad market, driven largely by private sector investment, is expected to increase by nearly four percent; and the value of construction for ports and waterways is expected to grow by six percent, driven by work on both coasts in preparation for the 2014 expansion of the Panama Canal. Also in the good news category, the transportation construction market sector, as has been the case for the past five years, will remain the most stable industry sector.

NV CA

The main factors driving the decline in highway and bridge construction are not surprising: the winding down of infrastructure investment under the American Recovery & Reinvestment Act (ARRA), continued weak growth in the U.S. economy, persistent state and local budget challenges, and a static federal-aid highway program. Of course, the long-delayed highway/transit reauthorization bill remains a “wild card.” If Congress in early 2012 passes a multi-year bill, that at minimum, maintains current investment levels, it could help interject greater certainty in the market. Both the Senate and House proposals also contain language to expand the Transportation Infrastructure Finance and Innovation Act (TIFIA), which if leveraged quickly, could offer another market boost.

AK

HI

Source: ARTBA analysis of McG through September 30.

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Highway & Bridge Contract Awards FY 2011 versus FY 2010 NH MT

ME

VT

ND

MA

MN ID

NY

WI

SD

PA

IA

NE

IL

UT CO

AZ

KS

OK

NM

IN

OH

MO

NJ

MD WV NC

TN

CT

DE

VA

KY

DC

SC

AR MS

TX

RI

MI

WY

AL

       This  state  increased  

GA

the  value  of  contract   awards    more  than  5%  

             This  state  increased  

LA

or  decreased  the  value   of  awards  by  5%  

FL

       This  state  decreased                        the  value  of  their   contract  awards  by   more  than  5%  

Graw Hill Data; Fiscal Year is October 1

Nov.-Dec. 2011

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The Most Stable Construction Market

The historical stability of the transportation market is in large part due to the role of public sector financing. Federal investment, through the highway program and ARRA, has increased significantly over the last few years, and accounts for nearly 45 percent of all highway and bridge construction spending. And although state and local governments continue to have budget challenges that impact their discretionary highway and bridge spending, most state highway user fee revenues are constitutionally protected and must be used for transportation purposes. So although the transportation construction market is not immune to the overall U.S. economy, it is significantly less volatile than other construction sectors, which are more dependent on general economic conditions.

$30   $25   Billions  of  2011$    

The transportation construction sector remains stable compared to other construction markets. Between 2007 and 2011, the real value of highway and bridge construction, adjusted with the ARTBA Price Index for material prices, wages and inflation, fell only 10 percent. Over the same period, the real value of total construction work in the U.S. fell by one-third from $1.1 trillion to an estimated $769 billion. And the real value of residential construction tanked more than 50 percent from $500.5 billion in 2007 to $236.5 billion in 2011.

A"er  Decade  of  Record  Growth,  Bridge  Market  Expected  To  Drop   10.3%  in  2012   $23.9  

$26.0  

$26.3  

2010  

2011  (e)  

$23.6  

$23.8  

2012  (f)  

2013  (f)  

$24.8  

$26.5  

$27.6  

$20   $15   $10   $5   $0  

2009  

2014  (f)  

2015  (f)  

2016  (f)  

The  ARTBA  forecast  of  the  value  of  construcBon  put  in  place  assumes  staBc  federal  aid  program,  modest  U.S.  economic  growth  and  project   costs  in  line  with  inflaBon.  Data  through  2011  from  the  U.S.  Census  Bureau,  adjusted  with  the  ARTBA  Price  Index.    

Bridge Market Slow Down Dramatic The value of bridge work in 2012 is expected to drop by 10 percent from $26.3 billion to $23.6 billion. The bridge market has continued to grow over the last three years, despite the recession, for two reasons: projects are often larger and work has continued on projects that were awarded and underway before the economic downturn; and second, state DOTs and local governments have put $3.2 billion in ARRA funds toward bridge work. Part of the forecasted decline in bridge work is because nearly all the projects that include ARRA investments are finished or underway. State DOTs and local governments are now pulling back on new projects. This is likely due to a combination of the delayed federal reauthorization legislation and continued state and local budget challenges.

Slight Decline in Pavement Work for 2012 $70  

Billions  of  2011$    

$60  

A"er  Sharp  Decline  in  2011,  Pavement  Work  Forecasted  to   Decrease  2.0%  in  2012   $57.9  

$52.4  

$50  

$45.0  

$44.1  

$44.5  

$44.9  

$47.0  

$48.6  

2011  (e)  

2012  (f)  

2013  (f)  

2014  (f)  

2015  (f)  

2016  (f)  

After a sharp decline of 14 percent to an estimated $45 billion in 2011, pavement work in 2012 is expected to decrease by two percent to $44.1 billion, again attributable to less ARRA money in the marketplace.

$40   $30   $20   $10   $0  

2009  

2010  

The  ARTBA  forecast  of  the  value  of  construcBon  put  in  place  assumes  staBc  federal  aid  program,  modest  U.S.  economic  growth  and  project  costs   in  line  with  inflaBon.  Data  through  2011  from  the  U.S.  Census  Bureau,  adjusted  with  the  ARTBA  Price  Index.    

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Uneven Growth Among States Despite the national downturn in market activity, some states are poised for growth. There are 18 states where the value of state and local government highway and bridge contract awards for fiscal year 2011 is higher compared to fiscal year 2010. This is an indicator that the value of work in those states will likely increase in the coming year as those projects are underway. The value of contract awards is down in 24 states and Washington D.C. Contract awards in the remaining eight states were relatively stable, either up or down within five percent.

Airport Runway Work Slated to Dip The value of work done on airport runways is expected to fall four percent from $4.9 billion in 2011 to $4.7 billion in 2012, primarily because of flat funding for the Airport Improvement Program and continued failure by Congress to pass a new aviation reauthorization program.

$25  

Railroad  Work  Will  Increase  3.6%  in  2012  as  Subway  and  Light   Rail  Market  Forecasted  to  Drop  16%  

Billions  of  2011$    

$20   $15   $10   $5   $0  

$5.4  

$6.4  

$5.4  

$4.6  

$5.8  

$6.4  

$7.1  

$7.7  

$11.5  

$11.8  

$12.1  

2014  (f)  

2015  (f)  

2016  (f)  

$9.5  

$9.8  

$10.2  

$10.6  

$11.1  

2009  

2010  

2011  (e)  

2012  (f)  

2013  (f)  

Railroads  

Subway  &  Light  Rail  

The  ARTBA  forecast  of  the  value  of  construcJon  put  in  place  assumes  staJc  federal  aid  program,  modest  U.S.  economic  growth  and  project   costs  in  line  with  inflaJon.  Data  through  2011  from  the  U.S.  Census  Bureau,  adjusted  with  the  ARTBA  Price  Index.    

No Fast Track for Subway & Light Rail After a decade of rapid growth, the real value of subway and light rail construction is expected to decline nearly 16 percent from an estimated $5.4 billion in 2011 to $4.6 billion in 2012. This drop is in large part due to the continued delay in the reauthorization of the federal surface transportation bill. State and local government contract awards for subway and light rail are down sharply in 2011, indicating transit agencies are pulling back on projects.

Private Investment Spurs Railroad Market The railroad market, driven largely by private investment, is expected to increase 3.6 percent from an estimated $10.2 billion in 2011 to $10.6 billion in 2012. The sector is expected to grow in the long run as the U.S. economic recovery gains strength.

Ports & Waterways Floating Higher The value of construction work for docks, piers and wharves is expected to grow nearly six percent from $1.9 billion in 2011 to $2 billion in 2012. ARTBA expects continued growth over the next five years. A number of East Coast ports are taking on projects in anticipation of the 2014 Panama Canal expansion.West Coast ports are also investing in infrastructure improvements. Spending by the Army Corps of Engineers for inland waterway projects is expected to decline next year compared to 2011 levels.

About the Models ARTBA has a series of econometric models that take into account current economic conditions, state and local funding and federal investment. The ARTBA forecast model assumes: 1) the U.S. economy will continue to show modest growth in the coming years; 2) material prices and project costs will be in line with inflation; and 3) there is no major increase or decrease in federal investment over the next five years. The outlook would change if either federal, state or local governments provided significant increases in their investment levels. Editor’s Note: Alison Premo Black will outline her comprehensive 2012 forecast during a 90-minute webinar on Dec. 12. ARTBA senior vice president of Government Relations Dave Bauer will also provide a reauthorization update. See page 35 for registration details. Alison Premo Black is ARTBA vice president, policy and senior economist: ablack@artba.org

Nov.-Dec. 2011

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member news

DEXTER + CHANEY TO LAUNCH NEW PRODUCTS AT WORLD OF CONCRETE SAM, Inc. Establishes New Subsidiary to Perform Construction Services AUSTIN, TEXAS, Surveying And Mapping, Inc. (SAM, Inc.), a nationally recognized provider of geospatial data solutions, has recently established a new wholly owned subsidiary to further extend their capabilities into construction phase services. The subsidiary is named “SAM-Construction Services Inc.” and will also do business under the name “SAM-CS, Inc.” SAM-CS, Inc., will offer services that include construction inspection and observation, contract administration, implementation of QA/QC programs, and development of construction/materials quality manuals and specifications. The new subsidiary will focus primarily on transportation, electric transmission, oil and gas pipeline, and water/ wastewater projects. SAM-CS, Inc. will also be able to deploy LiDAR-based data collection tools and other state-of-theart technologies for construction phase service applications. Samir “Sam” G. Hanna, founder and president of SAM, Inc., is excited about the prospects for this new reach the company is making. “Looking forward we see great opportunities in the market for construction phase services, such as we’re now offering, and we’re enthusiastic about growing our capabilities to meet those needs,” he says. For more information, visit: www.saminc.biz.

SEATTLE, WASH., Dexter + Chaney, makers of Spectrum® Construction Software, will launch a new version of Spectrum as well as a completely new product line aimed at the needs of construction operations professionals at the 2012 “World of Concrete” trade show in Las Vegas this January 24-27. Dexter + Chaney will display the products at booth C4165 in the central hall of the Las Vegas Convention Center. The new product line will be the first release from Dexter + Chaney’s newly formed Operations Group. “Our product line delivers a new approach and a new platform for collaboration across the entire lifecycle of a project,” said Mark Reich, senior vice president, Operations Group. This first release will include a number of project collaboration applications all designed to work together. “There are too many starts, stops and restarts in today’s typical construction project,” according to Reich. “Our software platform keeps the threads of communication and information flowing among all partners throughout the project.” Besides demonstrating their new products at booth C4165 in the central hall of the Las Vegas Convention Center, Dexter + Chaney welcomes everyone to join them at the booth at 4 p.m. each day during the show for a champagne launch celebration and prize give-away. For more information, visit: www.dexterchaney.com.

G.A. & F.C. Wagman, Inc. Voted “Best Places to Work in PA” for 7th Time YORK, PA., G.A. & F.C. Wagman, Inc. was named among the “Best Places to Work in PA for 2011.” This is the seventh time in which G.A. & F.C. Wagman, Inc. made the list. The “Best Places to Work in PA” program is generally made up of two groups of companies: 50 medium-sized (25-250 employees) and 50 large-sized companies (251 employees or more). Through the research process, a survey is sent to both the employers and employees from hundreds of companies from across the commonwealth. However, this year, more medium-sized companies scored higher marks than large sized companies, so the list is made up of 65 medium-sized firms and 35 from the large category. Wagman is listed among the large-sized companies. The awards program, created in 2000, is one of the first statewide programs of its kind in the country. The program is a public/private partnership between Team Pennsylvania Foundation, the Pennsylvania Department of Community and Economic Development, the Pennsylvania State Council of the Society for Human Resource Management, and the “Central Penn Business Journal.” This survey and awards program was designed to identify, recognize and honor the best places to be employed in Pennsylvania, benefiting the state’s economy, its workforce and businesses. For more information, visit: www.wagman.com

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AEM corner Industry collaboration marked AEM’s beginning and is an association hallmark. ARTBA has been a key partner. In fact, the evolution of ARTBA and CIMA are intertwined; AEM members are active in the ARTBA Manufacturers Division, and the two associations have long worked together to advance transportation construction.

AEM at 10—Building on a 100-Year-Plus Legacy of Action The Association of Equipment Manufacturers (AEM) is in its 10th year of advocating for members and the off-road equipment industry. In September 2001, the membership of the Construction Industry Manufacturers Association (CIMA–formed 1911) and Equipment Manufacturers Institute (EMI–formed 1894) voted to consolidate. AEM was officially established on January 1, 2002. AEM has built upon the success of its predecessor groups and has created a more powerful voice for the industry— especially in the Nation’s Capital. Public policy is a priority; AEM has become more visible to represent the industry in Congress and the Administration. In 2011, a major focus has been AEM’s “I Make America” national grassroots campaign to call attention to the need for a superior infrastructure system for improved productivity and job creation. AEM operates trade shows “for the industry, by the industry” and 2011 saw six AEM-run expositions, including CONEXPO-CON/AGG and ICUEE – The Demo Expo. AEM statistical-reporting programs have become the “gold standard” for the industry to help companies benchmark and plan corporate strategy. AEM now handles its safety manual program in-house and sells an average of 575,000 manuals and other safety products yearly through the AEM Store. Nov.-Dec. 2011

As you can see, AEM was fully engaged in 2011. Here are other selected accomplishments from AEM’s first 10 years. 2002: • Inaugurated co-location of IFPE exposition with CONEXPO-CON/ AGG. • Conducted Washington, D.C. conference that established closer liaison with key U.S. agencies overseeing standards harmonization. 2003: • Under “Transportation Makes America Work” campaign, raised more than $650,000 to encourage congressional support of highway funding. 2004: • Opened Canadian office. • Initiated monthly index of construction equipment revenue trends. • Developed guidelines for Tier 4 rules compliance flexibility options. 2005: • Established formal European presence in Brussels and launched “Advisor Brussels” newsletter. • Initiated report on rural road safety and maintenance needs and served on a coalition to increase water infrastructure investment. • Introduced new industry-conditions reports for China and Latin America. 2006: • Completed phase one of new online safety pictorial database.

• Underwrote extensive publicinformation campaign by TRIP, tied to 50th anniversary of U.S. Interstate Highway System. 2007: • Completed certification to offer continuing education credits for AEM seminars. • Officially signed alliances with MSHA and OSHA to advance worksite safety. • Continued work on statistical programs in Russia and Latin America. 2008: • Held first “Construction Challenge” teen competition to spur interest in construction careers. • Established Political Action Committee as another avenue to influence the political debate. • Launched the CONEXPO Russia brand with a Moscow show to bring AEM’s manufacturer-run trade show philosophy to this growing marketplace. 2009: • Signed a global trade show agreement with Messe Munchen, with the first joint event bC India. • Signed a supporting agreement with BICES show in China. • Joined in the “Start Us Up USA” campaign for congressional infrastructure investment. 2010: • Launched the “I Make America” national grassroots campaign. • Developed monthly market- condition “snapshots” for wholegoods manufacturers.

• Met with Chairman and President of Export-Import Bank to advance industry interests: one example of many actions taken by AEM’s busy Washington, D.C. office. TransportationBuilder

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ADVERTISER INDEX INSURANCE CNA www.cna.com..................................13

Transportation Construction Market Intelligence Reports Prepared by ARTBA’s expert economics and research team, these value-added reports are ARTBA’s best-selling products. With monthly and quarterly reports, we help make sure to cover the market from every angle, including the highly sought after “Contract Awards” data. This premium subscription service provides the most current information on the transportation construction market so that analysts and industry firms are armed with the data they need to make smart, well-informed decisions.

HIGHWAY SAFETY PRODUCTS & RESOURCES Work Zone Safety Clearinghouse www.workzonesafety.org.....................23 LTAP www.ltap.org....................................21

MEASUREMENT INSTRUMENTATION, SOFTWARE, TESTING EQUIPMENT GRL Engineers, Inc. www.GRLengineers.com......................9

There are two options available to you, including: #1

• Monthly Transportation Construction Contract Awards • Monthly Value of Transportation Construction Put in Place • Monthly Federal Highway Obligations • Monthly Transportation Construction Employment • Quarterly Market Conditions Survey

Annual Subscription: $3,500, $4,000 (non-member) #2

• Quarterly Market Conditions Survey: $750/year, $900 (non-member) • Monthly Value of Transportation Construction: $750/year, $900 (non-member) • Monthly Federal Highway Obligations $750/year, $900 (non-member)

CONSTRUCTION EQUIPMENT Wirtgen America www.wirtgenamerica.com.................IFC Caterpillar Inc. www.cat.com..................................BC

SOFTWARE HCSS www.hcss.com...................................9

Advertise with “Transportation Builder” Promote your company’s products and services in “Transportation Builder!” Contact ARTBA’s Peter Embrey

To purchase, visit: www.artbastore.org. Contact ARTBA Director of Sales Peter Embrey at pembrey@artba.org or 202.289.4434 with any questions.

at 202.289.4434 or pembrey@artba.org Check out our rates in the 2012 media kit on our website at www.artba.org. “ARTBA reserves the right, at its discretion and without liability of any nature whatsoever, to reject, cancel or suspend any advertising in whole or in part, in which case any fees paid in advance shall be refunded to the advertiser on a pro-rata basis.”

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Upcoming ARTBA Webinars Seminar on the 2012 U.S. Transportation Construction Market Forecast & Transportation Reauthorization Bill Outlook Monday, December 12 from 1:00 - 2:30 p.m. , EST • What are the chances Congress will pass a multi-year federal highway/transit investment bill soon? • What are the resulting market impacts from continued congressional delays on a long-term bill? • With the end of the stimulus money and continuing state budget challenges, is the transportation construction market poised to “crash and burn” in 2012? • Which states offer the best opportunity for market development in 2012? • What is the long-range market forecast through 2016?

Dave Bauer

ARTBA Senior Vice President of Government Relations Dave Bauer, and Vice President of Policy and Senior Economist Alison Premo Black will answer these questions and any others you may have, and also offer additional market insights during a special 90-minute briefing for analysts, investors and construction industry executives. If you track domestic and foreign firms with a stake in the U.S. transportation infrastructure market, this comprehensive webinar is for you. It provides a “behind the scenes” look at the political and economic factors that will impact the transportation design and construction market sector in 2012. All registrants will receive a copy of the PowerPoint presentation.

Alison Premo Black

Register: www.artba.org. $325 members; $450 non-members.

What Every Highway Contractor & Engineer Needs to Know About CMGC Procurement & Project Delivery Wednesday, December 14 from 1:00 - 4:00 p.m., EST Is your firm prepared to work in a procurement environment that includes “Construction Manager General Contractor” (CMGC) as the delivery method? FHWA is actively promoting the use of CMGC by state transportation departments as a way to accelerate project delivery. The highway reauthorization bill now being considered in the U.S. Senate would explicitly enable states to use CMGC when they wish. You will need to know what CMGC is all about.

Jim McMinimee

This three-hour educational webinar, presented by CMGC expert and 25-year industry veteran Jim McMinimee, will neither promote nor discourage the use of CMGC. Its purpose is to provide the information on this emerging procurement method so that your firm is prepared to deal with it if it is being considered in the states where you do business. The distinctions between “Construction Manager at Risk” (CMAR) and CMGC, as well as many other details about how CMGC is being applied to highway design and construction,will be covered.

Additional course topics include: • • • • • • •

An overview of the CMGC process and anticipated benefits and risks How the owner-contractor relationship differs using the three major contracting methods How to identify the most favorable project parameters for applying CMGC What a contractor needs to know to successfully implement CMGC CMGC selection and pricing options Case studies of CMGC implementation and lessons learned Challenges and keys for success

Register: www.artba.org. $300 members and $425 non-members. Questions about either webinar: Contact Jim Colleton at jcolleton@artba.org or 202.289.4434 Nov.-Dec. 2011

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AGGRESSIVE WHEN YOU WANT IT, GENTLE WHEN YOU NEED IT. Versatile Cat® Asphalt Compactors use proven technology that is easy to set up for any mix or application. Not every mix and application is the same, so your asphalt compactor should be versatile and easy to set up to match performance to ever-changing conditions. If it isn’t easy to use, how can it be productive? Cat® Asphalt Compactors get the work done on the breakdown pass, when the mat temperatures are higher and conditions are optimal for compaction. They are comfortable and simple to operate: high amplitude for aggressive compaction, low amplitude for gentle massaging. They match high paving speeds with high frequency, and low paving speeds with low frequency. Simple and reliable, with predictable density every time in minimal passes. No complexity and constant tweaking, as there is using “non-aggressive” compaction technologies; no hoping your density numbers will catch up on the intermediate or final pass. Caterpillar is the market leader because we offer proven technology that makes turning a profit easier. Isn’t that what technology is supposed to do? To get the real story on asphalt compaction, visit your Cat Dealer today. www.cat.com SAFELY HOME. EVERYONE. EVERYDAY. SAFETY.CAT.COM™

CAT, CATERPILLAR, their respective logos, “Caterpillar Yellow” and the POWER EDGE trade

36 dress, TransportationBuilder as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission. ©2011 Caterpillar All Rights Reserved

Nov.-Dec. 2011


Nov/Dec 2011 "Transportation Builder" magazine