CalContractor Owner/Operator 2018

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Operator Issue

Feature Articles 06


Operated Backhoe and Compact Equipment Specialist at Your Service with More Than 100 Years of Combined Experience





Operated Backhoe Rental Company Offering Quality Service and Customer Satisfaction for 15 Years



Owner-Operator, Jose Rosales, Expands Capabilities with Addition of John Deere Compact Excavator and Skid Steer Loader






CalContractor Magazine / PUBLISHER: Kerry Hoover



CalContractor is published twelve times each year by Construction Marketing Services, LLC. All rights reserved. Reproduction in whole or in part without permission is prohibited. P.O. Box 892977, Temecula, CA 92589 / Phone: 909-772-3121

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ccording to information available on the web, the development of the backhoe loader came from a few separate sources working toward the same goal of bringing a better and more compact digging apparatus to the general construction public. Earliest accounts refer to Cyril Bamford from Staffordshire, England, who had long been interested in developing a machine with a bucket on each end of a tractor that could perform both digging and loading tasks with one piece of equipment. According to reports, design plans were developed in 1945, and by 1950, Bamford had produced one of the first true backhoe loaders that would mount to a Fordson “Major” tractor. Then in 1957, Bamford introduced the first JCB Hyrdra-Digger backhoe to be produced on a production line and sold to contractors throughout the UK and beyond. During this same period, J.I. Case was also working on the development of a backhoe loader, and they introduced what is referred to as the first factory-integrated tractor loader backhoe complete with a factory warranty in 1957. Their Model 320 backhoe offered a multi-tasking construction machine that presented new construction capabilities and advanced productivity for excavating contractors everywhere. Another player, Wain-Roy Corporation, developed and tested their initial 6

backhoe attachment in 1947. These hydraulic backhoe units were mounted to a Ford Model 8N tractor and initially sold to a light and power company for $705 each. Eventually, every major construction equipment manufacturer wanted in on the game, and it is not always about who is first, but more about who could offer the best technology at an affordable cost with the proper resources and workforce to support their product line. John Deere had been a world leader in the production of agricultural equipment for more than 110 years when they formed their industrial equipment division (later referred to as their Construction and Forestry Division) with an initial $15 million investment in 1956. The funds were used to separate farm and

2018 Owner/operator ISSUE CALCONTRACTOR

Above L to R: Tyler Long, Nick Long, Jordan Long and Tony Long.

construction divisions, as well as to develop their new line of dozers, forklifts, skidders, crawlers, motor graders, wheel loader, scrapers and more. John Deere introduced their version of the backhoe loader in 1966 with their launch of the JD 500A, which was deemed a great success and led to the evolution of today’s highly advanced L-Series models. John Deere had not yet introduced their backhoe in 1957 when Chamberlain Backhoe Service started out in the operated backhoe rental business. Don Chamberlain started his company during an era when the backhoe

Operated Backhoe and Compact Equipment Specialist at Your Service with More Than 100 Years of Combined Experience

Above: CBS haul truck with John Deere 315SK offset backhoe at yard in Placentia.

was initially introduced to the U.S. marketplace, and after several years of success, he decided to sell his business to five co-owners in 1976. Hank Swickard was one of those investors and coming from a farming background in Indiana, he had long been a fan of Massey Ferguson, and the company chose to operate this brand in their rental offering of two backhoes and two operators. Over the next ten years, Swickard would buy out all four of his partners, leaving the daily operations and duties to just he and his wife, Roberta. Swickard then sold the business to his step-son, Tony Long in 1988,

who would immediately go to work expanding his business in both size and focus. Tony Long had been running his own landscape construction business and initially looked at his ownership in the backhoe rental company as sort of a temporary situation. “When I arrived in 1985, I was just 21 years old, and I was not exactly sure of what the future would bring,” says Long. “When I purchased the company in 1988, I acquired a “C” Contractors License and started doing more than just the hourly rental. We began doing contract work, and by the late 80s and early 90s, we were performing regular contract jobs for the LA Unified School District. This brought new life to our operated backhoe rental business, and we began growing.”

Chamberlain Backhoe Service now had five Massey Ferguson backhoes in their fleet, but when the Massey plant was shuttered in the 90s, Long was forced to take a look at switching to another brand. “We demoed all of the major manufacturers and had multiple operators using these various brands in the field so that they could provide feedback and guidance,” says Long. “John Deere came back as the hands-down leader and what our operators said they preferred most. The thing that put it over the top was that Coastline Equipment (their local John Deere dealer) was located right around the corner where we could get parts, equipment, and service quickly and professionally.” Long points out that their John Deere machines are utilized every day and rarely sit idle, so if one of them has an issue and needs service it is important to them that they are taken care of as soon as humanly possible. “Having Coastline Equipment nearby, acting as a sort of business partner, really helped out in those sticky situations where we needed a machine or service immediately,” says Long. “It is the seemingly small things like this that helped get us through the 90s recession and then later during the great recession in 2008. The folks at Coastline have been great to work with over the years, and they know my son Tyler not only by name but by the sound of his

2018 Owner/operator ISSUE CALCONTRACTOR


Above: Operator, Toivo Lampi digging footings at Chapman University. Right: Operator, Jordan Long (far left), with one of their concrete customer's crews.

voice over the phone. Jeff Warren manages the rental department, and he is simply at the top of his game and has been there for us on many critical occasions.” Although Chamberlain Backhoe Service had five in-house John Deere backhoes at the time, they were also brokering for several other well-known and trusted backhoe owner-operators. “By the mid-90s, we were putting out around 20 machines with operators a day, and we continued our success into the 2000s,” says Long. “When the last recession hit we probably lost around 75 percent of our revenue. We held on the best we could, but we knew we had to come up with a plan to get back that lost revenue and 8

return to the growth and success that we had become accustomed to in the past.” As fate would have it, that plan came sooner than later in the form of an acquisition. “We purchased American Backhoe in 2011, which was an operated backhoe rental company that started out in 1976 and was located just miles from our operation,” says Long. “I took a look at their customer base of around 600 names and our list of around another 600 contacts and noticed that there were very few crossover customers. We pulled the trigger, and the acquisition served to double our customer base from day one. American Backhoe continues to make up

2018 Owner/operator ISSUE CALCONTRACTOR

around half of our business today, as our customer base remains loyal to the name.” Chamberlain Backhoe Service now has nine operators on staff, with seven John Deere backhoes, three compact excavators, a skid steer loader, three dump trucks, and five haul trucks. They work primarily in Los Angeles, Orange, San Bernardino, and Riverside counties and perform operated excavating work for both public works agencies, and private construction companies including electricians, plumbers, concrete contractor, utility contractors and virtually anyone that needs to get some digging done right. “If it needs to be dug, [ Continued on page 10 ]


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Above Left: Jordan Long operating the JD 30G compact excavator. Above Right: Electrical trenches dug by operator, Robert Lopez in the City of Vernon.

[ Continued from page 8 ]

we’ll dig it,” says Long. “There are a lot of owner-operators out there, but as individuals, they are swamped and cannot respond to multiple jobs or at a moment’s notice like we can.” Long goes on to explain that through Chamberlain Backhoe Service, American Backhoe and their backhoe brokerage services, they can respond quickly and provide a backhoe or other machine with an operator the next day if necessary. “This is our competitive advantage. If we do not have an operator or machine available, we will place our customer or potential client with one of our experienced and professional owner-operators,” says Long. “Our motto is never to say no. If we can’t do it, we find them a qualified operator with a late model machine, even if the call comes in at 4:00 p.m. and they need it the following morning. Our one stop shop status has helped us weed out the competition and has put us in a category of our own.” Long stresses that the ultimate goal is to keep his inside operators working every day on quality jobs. 10

“When we need extra equipment or a machine that we don’t have in our fleet, we rent from Coastline Equipment,” says Long. “I know the quality of machine that I will be getting and that the hours will be low, and the unit well maintained.” Long also points out that he is always on the lookout for hardworking, reliable operators, and confesses that this is easier said than done. “Before adding any new operator to our team, I make sure that I go out into the field and witness the operator in person. If he passes the eyeball test, we then do our background checks and put them through a battery of questions to see if they meet all of our strict guidelines,” says Long. “I am extremely fortunate to have my three sons working for the family business, and that puts me at ease knowing that we have each other's back.” Nick Long is the finance and marketing manager, Tyler Long is the service technician, and Jordan Long is an operator for Chamberlain Backhoe Service. “My sons are my ‘go to guys,’ and they are very important to our operation,” says Long. “My wife, Wendy, is the president of the company and she has been there for all of us since day one. It is a family enterprise for sure, and I wouldn’t have it any other way.”

2018 Owner/operator ISSUE CALCONTRACTOR

Tony Long makes it clear that the new generations of Longs have brought new and exciting things to the business just like he did some 33 years ago. “Nick has plugged us into social media on several levels and has put a website together that brings in a lot of traffic and accounts for much of our new business,” says Long. “Tyler has been well-trained in the newest John Deere software programs and is extremely knowledgeable and proficient in the equipment maintenance and service of our machines, which are primarily serviced in-house. Jordan is already one of our top operators and is requested by many of our good loyal clients. I am proud of all three of our sons and their continuing contribution to our family business.” Chamberlain Backhoe Service also has several long-term employees that have been there for Long through thick and thin. “We have two guys, Jeff Graham, and Benny David, that have been with us for 27 years, Ken Stoltzner for 20 years, and several others with five to seven years of service,” says Long. “The caliber of operators that we have here at Chamberlain Backhoe Service and American Backhoe is extremely hard to

Above Left: Jordan Long, CBS Operator, digging in tight area two stories below ground level in Downtown Los Angeles.

find, and we do everything we can to keep them happy. Because of the shortage of great operators available right now, we have also instituted an operator training program, and so far it has worked out extremely well with the last two out of three student operators.” According to Long, the company had a great fiscal year ending June 30. “The past two years have brought growth and added revenue, with this year being a slight increase over last year,” says Long. “It is difficult to predict any trend right now, and there does seem to be an unforeseen element out there that makes it difficult to say how things will be after 2019. We are pushing hard right now, but we will always remember the hard times and past recessions. We feel that we will have growth in 2019 due to our past efforts regardless of what happens with the economy, and we want to take advantage of the current economic climate right now.” Long also has his sights on expanding into the Inland Empire with a satellite location soon. “The Inland Empire is a target area for our future growth plans. We are presently maxed out at our current headquarters and yard in Placentia, which I purchased back in 1991,” says

Long. “We are looking at adding more machines and additional operators, and a satellite yard in the Inland Empire would give us the room to do that and more.” Chamberlain Backhoe Service and American Backhoe’s equipment offerings are right in line with their client list. “Compact equipment is trending big time right now, and we have added two additional John Deere compact excavators recently to meet that demand. Our sales and calls for compact excavators have more than doubled over the past two years,” says Long. “John Deere is also telling us that they see fewer backhoe sales in favor of compact excavators and skid steer loader purchases. We pay attention to that sort of valuable information and will continue to adjust accordingly.” Currently, the company offers a variety of John Deere backhoes to choose from, as well as several compact John Deere compact excavators, including the JD 26G, 27D and 30G, as well as John Deere 318 skid steer loaders. Additionally, they offer an exhaustive list of attachments, as well as dump trucks, bobtail, and 10-wheel dump trailers. Chamberlain Backhoe Service is extremely busy right now with regular return clients, and they are adding to their list every day.

Above Right: Operator, Jose Valencia moving dirt for electrical contractor at Concordia University.

“We have a well-known electrical contractor that has given us a ton of work over the years. As a matter-of-fact, one of our operators just finished up on a nearly 2-year project for them at a FedEx distribution center in the Inland Empire,” says Long. “He did everything from digging miles of electrical trenches to backfill, compaction and the demolition of asphalt and concrete, as well as hauling away tons of material as needed.” Chamberlain Backhoe Service is also on a big project in Burbank for Warner Bros. Studios with two operators, and they are out in Los Angeles digging footings for a new high-rise apartment complex with two JD compact excavators. There is no such thing as a job that is too small for Chamberlain Backhoe Service. If you need a professional, experienced operator, visit Chamberlain Backhoe Service at, American Backhoe at or call 800-498-4227. Cc

2018 Owner/operator ISSUE CALCONTRACTOR


By Brian Hoover


ean Lourenco loves playing in the dirt. Whether it be on one of his motocross bikes or operating one of his four Cat backhoes, he enjoys being out working the earth for fun and profit. He went to work for a well-known ready-mix company

in 1993 after leaving high school before graduating in 1994 to go directly into the workforce. Still in his teens, Lourenco worked as a welding shop assistant and pushed a broom for minimum wage. Eventually, Lourenco was given the opportunity to interact with heavy machinery. "I worked

at a rock plant for a large readymix producer and one day my boss asked me to move a tractor. I was hooked from there on and within six months, they made me an operator and I began running everything from dozers and wheel loaders to forklifts" says [ Continued on page 14 ]

Right: Lourenco Backhoe utilizing their 30' Cat A26B auger bit with Cat extensions mounted on a Cat 420F backhoe loader to drill concrete columns.


2018 Owner/operator ISSUE CALCONTRACTOR


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Top Left: Lourenco Backhoe Team doing a pit stop for Clayton Roberts, their team rider, at a recent weekend night race. Dean Lourenco shown with with fuel can. Above Left: Lourenco Backhoe breaking up concrete on project in Lake Elsinore. Above Right: Dean Lourenco, Owner and President of Lourenco Backhoe, Inc.

[ Continued from page 12 ]

Lourenco. "Opportunity knocked again, and I was invited to work for an owner-operator who had a small fleet of machines in the Inland Empire. I had very little to no experience, but he gave me a shot, and so I went with it. I went on to work for a few other operated rental companies, and I took careful note of everything going on around me." Lourenco enjoyed operating a backhoe loader most as he began to hone his skills working for operated backhoe rental companies. He was doing good but could see that his income opportunities would be limited if he remained on the same path. "I did not have much money or a degree, but I did have tremendous ambition and drive. I jump out of airplanes for fun and have always taken risks, so the idea of going


out on my own was not that big of a deal. I took a leap of faith and started my own business in 2003," says Lourenco. "I started out renting a backhoe, and I made an effort to buy a used one but could not generate the points needed to get a loan. This was when I went into see Quinn Company, who showed me their rental purchase option (RPO) that was available at the time. I got in with no money down, and my rental payments became my down money after six months, and my business began to take off from there." Lourenco Backhoe purchased their first backhoe, a Cat 420D, in 2004 and their workload was steady and reliable. "I started out working residential jobs for large plumbing and electrical contractors that had more work than they had machines and operators

2018 Owner/operator ISSUE CALCONTRACTOR

to handle. I was able to get a long-term job for one of these companies in the low desert that paid great. I was driving 100 miles each way but was able to generate enough money to buy my first semi-truck," says Lourenco. "I remember that my first job on my own was for a dairy operation in Bakersfield where I worked as an operator for three months doing a variety of underground excavation work. These were long days, but I was able to generate enough startup cash to begin talking with my Cat sales representative about purchasing a new backhoe. Those were exciting times." Lourenco says that the backhoe business, in particular, is an excellent niche because you can take your machine anywhere and work in many different trades. "I love owning and operating Cat backhoes

Above: Cat 420F with Cat auger attachment drilling 11' 6" down for concrete columns that will support a solar panel parking lot shade structure for a commercial building in Ontario.

because they are so mobile and comfortable to run every day. Our operators don't get beat up on a Cat backhoe like on so many other machines," says Lourenco. "I went with Cat because of my experience running equipment on my first job for a major ready-mix company. I ran some ancient Cat machines, but they were still strong and reliable after thousands of hours and years of service. When the time came to buy, I did my due diligence, ran the numbers and went with Cat for their overall reliability and financing options." Lourenco also points out that he decided to go with Cat because of their ample supply chain. "When we have an issue from small repairs to catastrophic failures, we cannot wait around for parts or service. Quinn Company has always been there for us and our rep, Dennis

Madden, has gone beyond all expectations since Day One," says Lourenco. "I once had a machine without the appropriate bucket, and Dennis ran to the rental yard with his personal truck and had a bucket out to us almost immediately. It's that kind of service that will keep me going back for more Cat backhoes in the future." Lourenco says that he hopes to replace his entire fleet of Cat backhoes soon with the latest and greatest models soon, like the Cat 420F II. "I am very content with the size of my business right now. I am in a comfortable place and hate to overstep after personally experiencing what a bad down cycle can be like," says Lourenco. "2008 was a crazy year. We had just purchased a brand-new 2008 Cat 420E backhoe and were making a run to expand that year.

Things slowed down instead, and I had to sell my first backhoe (a Cat 420D) to a friend. Things could have completely fallen apart, but I had some luck and managed to hang on. We have never really had the chance to get comfortable, but we are doing good, and I am happy for what I have and look forward to a bright future." Lourenco Backhoe is headquartered in San Bernardino and works throughout Southern California. "I want to make it clear that none of this could have become a reality without the help and support of our operators and staff," says Lourenco. "My wife Genevieve has been there from the beginning when it was all just a idea and dream with unwaivering dedication and support. Without her, none of this happens."

2018 Owner/operator ISSUE CALCONTRACTOR


Above: Auger drills 11' 6" down in preparation for concrete column installation.

Lourenco concedes that they are a part of a fast-paced business with most calls coming in with only a day's notice for a machine and operator. "The stress levels can get quite high and you never want to tell a customer that you do not have a man or a machine," says Lourenco. "This is where our brokering network comes in. If we are not available, I am on the phone securing a high quality machine and operator." Lourenco Backhoe's willingness to show up at a moment's notice is one of the things that separates them from other operated rental backhoe companies. "Putting out fires is a big part of our business and emergency requests are always welcome," says Lourenco. "It is our overall rounded experience and willingness to go above and beyond for customers from all different trades that make us the initial choice for those


Above: Rebar form in place and ready for concrete support columns for solar shade structure.

looking for a backhoe operator. Of course, safety is always first, but productivity is also very important to our clients. It needs to get done right and on time or you can get run off a job and never asked back." Lourenco Backhoe currently has four Cat backhoes and four operators available. Their fleet consists of three Cat 420F backhoes and one Cat 420E. "We have top-notch highly skilled operators working full time here at Lourenco Backhoe and are busy right now working on commercial and industrial projects, as well as work on schools for the state and even on high security military bases. We work for a long list of trades, including electrical, plumbing, concrete, masonry and underground contractors," says Lourenco. "I don't think that just any person can be an operator, not a good one anyway. We hire the best and are always on the

2018 Owner/operator ISSUE CALCONTRACTOR

lookout for young talent that can take us into the future." Dean Lourenco is not all work and no play. He has enjoyed riding dirt bikes for the past 20 years and has won his fair share of events. "I have raced in many motocross and offroad events, such as Desert racing and Grand Prix. We support riders in the AMA District 37 Big 6 GP Series," says Lourenco. I love this sport, and I am friends with quite a few heavy equipment operators that race bikes with us out there as well." Whether at work or play, Dean Lourenco goes all-in on anything he sets his sights on, and his hard work and enthusiasm will undoubtedly take his company to new heights in the future. For more information in Lourenco Backhoe, please visit their website at or call (909) 499-6368. Cc

Rosales Hauling Owner-Operator, Jose Rosales, Expands Capabilities with Addition of John Deere Compact Excavator and Skid Steer Loader By Brian Hoover


ometimes there does not seem to be enough time in the day or money at the end of the week to make ends meet or begin to achieve those lifelong dreams. This is why more than half a million hardworking Americans choose to take the leap of faith and start their own small business every year. Jose Rosales is one of these hardworking people who has risen early each day for many years and worked from sunset to sundown to put himself and his family in a position to enjoy a better life. Rosales had been working as a dump truck driver for a hauling company and as a roll-off driver for a few select construction companies for several years when he eventually realized that he needed to do something to bring in more money. “I was working for a good friend of mine, Pedro Muñoz, driving a truck and was living check to check,” says Rosales. “I began paying close attention to everything that was going on around me each day, and taking notes and began putting a plan together to go out on my own.” Rosales decided to approach his friend and employer to let


him in on what he had been struggling with and what he was thinking about doing. “Pedro was great and even offered up his truck and equipment for me to use on a contract basis just until I could afford to buy a rig of my own,” says Rosales. “I took him up on his offer and paid him a percentage of the jobs that I would take on using his truck. I put the work out to my contacts and people began asking Above: Jose Rosales, Owner-operator, me for my number, Rosales Hauling. and one job turned into another.” Rosales points out that the jobs were minimal at sense. I then decided to take first and only amounted to the next step and found a a few hundred dollars, but great 2011 Kenworth truck it was the start that he was and a 12-ton 10-wheeler looking for and he was happy dump trailer in Bakersfield to see progress. “I saved that I modified to fit my every dollar I could and ran situation perfectly. I cut off into a few roadblocks at the sleeper and extended the first, like insurance for a new axles to accommodate the truck,” says Rosales. “I was dump box, and it is working getting insurance quotes for out well for me.” thousands of dollars a year Rosales makes it clear that and that sort of discouraged starting up his own hauling me. I finally saved up some business from scratch was startup funds, applied for my no easy task. “It’s all the business license, and found an insurance plan that made [ Continued on page 20 ]

2018 Owner/operator ISSUE CALCONTRACTOR

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little things that add up, like setting up an office, the internet and searching for the right deals on the equipment that I would need to be successful,” says Rosales. “I was determined to get this thing off the ground, and the word began to get out, and the jobs started coming in.” Rosales began taking on hauling jobs for homebuilders,


concrete, demolition and utility contractors, and other general engineering construction companies. During these initial projects, his customers started requesting additional services that would require construction equipment like trenching and loading construction materials. “I obtained my contractor’s license and was capable of doing more than just

2018 Owner/operator ISSUE CALCONTRACTOR

importing and exporting construction materials. I just needed to find a way to purchase the equipment necessary to begin taking these requests.” Rosales looked around and began getting pricing and financing quotes from several leading brands. “I started out renting the equipment that I needed each week, and that was costing several hundreds of dollars a day. I began to

think that owning might be a better solution and so I looked into it,” says Rosales. “I talked with Juan Loza, one of Coastline Equipment’s compact specialists, and he showed me a financing plan that would allow me to purchase a John Deere 17G (compact) excavator and a John Deere 314G (rubbertired) skid steer loader with a monthly payment that equaled just about what I was

paying for a week of rentals,” says Rosales. “They offered the best price, great financing and all of the features I was looking for in an excavator and skid steer loader. It was a hard decision, but the right decision, and it is so much more convenient, along with saving me a bunch of money. I offset the cost even more by renting my John Deere machines to other contractors and friends.”

Rosales Hauling works primarily for private companies, contractors, homebuilders, subcontractors and occasionally residential clients. He is a true owneroperator and does it all himself. “I take my time and am never in a hurry so that the job gets done right the first time with no callbacks. I also never leave to go to another job, like so many of my competitors that from

Left & Below: Rosales Hauling uses their John Deere 17G compact excavator and their John Deere 314G skid steer working at a private residence in Orange. Bottom: Prepared trenches for utilities at the residence.

2018 Owner/operator iSSUE CALCONTRACTOR


Below: Using a compact excavator and a skid steer loader in tandem is a common practice by owner-operators.

time to time will disappear and not come back for several days. I focus on a clean, safe and productive job site and I realize that every job, large or small, is another testimony to my ongoing reputation,” says Rosales. “I need to work a little longer on my own to pay off my truck and equipment, and then I would like to begin hiring additional crew members, purchasing another truck or two and additional John Deere machines. I have these plans, but am also watching the economy closely, taking precautions and always ready for a downturn.”


Rosales Hauling works primarily in Orange County with trips to Los Angeles County and occasionally Riverside County. They recently finished on a two-day job in Orange County where they were working for a homebuilder, digging footings for a new home and excavating a 20’ x 20’ area in preparation for a new driveway. “This was a perfect job for my John Deere excavator and skid steer loader where I excavated down around 24 inches and exported out around 40-yards of dirt with 90 percent compaction,” says Rosales.

2018 Owner/operator ISSUE CALCONTRACTOR

“I used my John Deere compact excavator to excavate around crews placing forms on the perimeter of the driveway area, and my skid steer loader to excavate the center area and to load my 10-wheel truck. It is the perfect combination, and I am pleased with the progress I am making and am excited about the prospects of a very bright future.” For more information on Rosales Hauling, please call Jose Rosales at (714) 381-6912. Cc

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WHY SHOULD I CONSIDER PURCHASING A CYBER LIABILITY POLICY? By Steve Cota, Patriot Risk & Insurance Services Cyber Liability covers your business for financial losses that result from data breaches and other cyber events. Just about any organization that uses technology to do business faces some sort of cyber risk. There are generally two types of cyber liability coverage: firstparty and third-party. First-party covers direct losses to an organization or individual, whereas third-party coverage extends to claims and legal action taken by customers or business partners. Cyber and Data Breach attacks can be devastating to any size business. Both the state and the federal government have enacted legislation protecting personal information. Here are some reasons why you should consider purchasing Cyber Liability insurance: 1. Any business that experiences a breach of this personal information is subject to expenses that comply with these laws, not to mention lawsuits and other regulatory action. 2. The average cost PER RECORD to a company from a data breach is around $200. 3. The Federal Trade Commission estimates that the average time spent resolving a single identity theft is 400 hours. 4. The average price for small businesses to clean up after a breach is north of $300,000; for larger companies, it’s well over $1 million. The examples below are real-life cyber-related claims which would not be covered under your GL policy: An HVAC contractor has a contract with a national retailer. A virus infects the HVAC contractor’s computer system. Hackers are able to use the virus to breach the


2018 Owner/operator ISSUE CALCONTRACTOR

retailer’s billing system and steal tens of millions of credit card records. The retailer must spend millions to pay fines, notify affected customers and clean up the mess. This also affects the retailer’s reputational harm. The retailer files a lawsuit against the contractor. An employee at an electrician’s office steals customers’ credit card information. State law requires the company to report the breach and notify customers. The electrician spends over $200,000 to hire a firm to conduct forensics to determine all those affected, resecure the network and set up credit monitoring for all of its customers. Tom owns a good size and growing paving company. When Tom goes to the bank to get a loan to purchase more equipment, the bank turns him down for poor credit. Apparently, his identity was stolen. Somebody had used his name and set up additional lines of credit. They purchased a new boat and pickup truck. All the bills for these items went unpaid as they were sent to a false address. Tom will need coverage for the expense of overnighted documents to the credit agencies, and a year of credit monitoring. Due to the costs of recovery, clean up, and fines many businesses don’t survive a Cyber Liability attack or breach. Cc Steve Cota, CRIS, directs the Construction Program for Patriot Risk & Insurance Services in Irvine, California. For more information regarding the above or any other insurance-related questions, he may be reached at (949) 486-7947 or




Compaction Wheel


Thumb Bucket

Rock Bucket


Hydraulic Thumb


Vee Bucket


Skid Steer Grapple Bucket

Wain Roy Bucket

Wood Shear

DB Equipment Attachments offers a complete Factory-Direct line of Heavy Duty-High Capacity buckets and attachments made with hardened steel and AR400 steel at the cutting edge and side cutters for all models of Backhoes, Excavators, Skid Steers and Wheel Loaders. We can manufacture any bucket or attachment configuration for any machine to meet your needs. DB Equipment Attachments is supported by an experienced Engineering, Sales and Management Team dedicated to “A QUALITY PRODUCT FOR A REASONABLE PRICE” without compromising on Customer Service.

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A backhoe loader truly is one of the most versatile pieces of equipment available – whether it's on the jobsite, in a disaster response situation or a variety of other specialty applications. CASE has recently introduced several enhancements to the N Series line of backhoe loaders—improvements to the cab and drivetrain, as well as enhancements to the electrical and hydraulic systems—that make these already versatile machines even more robust and productive. They've made several features standard that were only options before, like their fuel economy package, which includes ECO mode switches for both the loader and backhoe functions, allowing for greater fuel savings, as well as optimal power and performance. CASE N Series backhoe loaders now feature an all-new Pilot Control hydraulic system for optimal precision and smoothness, offering the operator more control in applications where precision is critical. LIMITLESS CONFIGURATIONS Backhoe loaders can be configured in an infinite number of ways to suit specialty applications—options like sirens/ PA systems, high-visibility paint, strobes, LED light bars, remote spotlights and advanced lighting packages can help improve visibility and effectiveness in any situation. Other machine options include robust guarding packages and solid tires. Front fender packages, fuel tank guarding and boom guarding can help beef-up a machine and protect its critical components from damage that can be caused by debris or other 26

hazards. Winches and hooks can also be added to a machine for a variety of search and rescue applications. For disaster response applications, CASE offers an emergency deployment container through one of their vender partners. Designed to be carried into tough-to-access areas by a backhoe loader fitted with forks, the container includes a hydraulic generator, 100-gallon fuel tank and pump, a fire extinguisher, medical response kit, GPS system, satellite phone and other critical emergency response equipment. ACCESS IS CRITICAL One of the most critical challenges in specialty applications—particularly in disaster response, firefighting etc.—is access. If access to a worksite is problematic, you want to make sure that the equipment you are able to get on site is going to be as versatile as possible in order to maximize effectiveness and productivity. In applications where access is a challenge, contractors try to bring as few pieces of equipment on site as possible. In addition to their material handling work and

2018 Owner/operator ISSUE CALCONTRACTOR

cleanup, the auxiliary hydraulics on a backhoe loader serve as a powerful platform for running hydraulic hand tools, eliminating the need to bring compressors or other equipment on site. Adding an extendable hydraulic hose reel to a backhoe allows contractors and first responders to use hydraulic saws, grinders, Jaws of Life and other hydraulic tools. Many backhoes now come standard with telematics – a powerful equipment management and utilization technology that is particularly helpful for decentralized operations like railroad work, firefighting or other disaster response applications. Telematics provides an easy way to know the current location of machines and their crews. This can be helpful in many ways: It simplifies maintenance by keeping track of engine hours and maintenance alerts. It provides a record of how equipment is being used (idle vs. working mode, etc.) and helps identify underutilized pieces of equipment that may be put to use in areas where they are needed. The possible number of configurations for specialty backhoe applications is too great to be completely covered in this one article. If you are in need of a specially configured backhoe, visit your local CASE dealer to explore the possibilities. Cc


Volvo Construction Equipment demonstrated the LX2 electric compact wheel loader at the Volvo Group Innovation Summit in Berlin. The prototype machine delivers zero emissions, significantly lower noise levels, improved efficiency and reduced operational costs. Volvo Construction Equipment (Volvo CE) unveiled its latest concept machine – known as the LX2 – to industry specialists, policymakers, the media and academics at the Volvo Group Innovation Summit on September 12th. The electric compact wheel loader prototype delivers zero emissions, significantly lower noise levels, improved efficiency and reduced operational costs, compared to its conventional counterparts. The LX2 was presented at the Volvo Group’s fourth Innovation Summit – which was held in Berlin, Germany – alongside autonomous and electromobility innovations from across the Volvo Group. The event focused on infrastructure and transport in cities of the future as well as how new concepts can have a positive impact on society through increased transport efficiency, reduced environmental impact and improved traffic safety. At the summit, Volvo CE also demonstrated its EX2 fully-electric compact excavator prototype and presented the company’s electric site research project. ELECTRIC OPERATION The LX2 is a second-generation prototype that is part of a research project and is not commercially available. To make the machine electric, the combustion engine has been replaced with a lithium ion battery. This stores enough electric energy to operate the

machine for eight hours in its most common applications, such as light infrastructure construction and landscaping. The LX2 also incorporates two dedicated electric motors, one for the drivetrain and one for the hydraulics. Decoupling the subsystems has led to higher efficiency in both the systems and the entire machine. “The LX2 is a revolutionary zero-emissions prototype that offers improved efficiency and lower operational costs, without compromising on machine performance,” says Ulrich Faß, Emerging Technologies Manager. “It incorporates the latest advanced chemistry battery technology. As it’s electric, no particulate matter, nitrogen oxide or carbon dioxide are released into the environment. This, together with the fact that it has extremely low noise levels, makes it ideal for use in cities and densely populated areas, as it can be used without disturbing people. This is the same for the EX2 100% electric compact excavator, therefore the machines

would be ideally suited to working alongside each other.” Like the LX2, the EX2 is also part of a research project and is not commercially available. The prototype machine delivers zero emissions, 10 times higher efficiency, 10 times lower noise levels and reduced total cost of ownership compared to its conventional counterparts. CLEANER. QUIETER. MORE EFFICIENT. At the summit, Volvo CE also presented its electric site research project which aims to transform the quarry and aggregates industry by reducing carbon emissions by up to 95% and total cost of ownership by up to 25%. Volvo CE and its customer Skanska Sweden are currently testing the electric site solution in a real production environment for ten weeks at Skanska’s Vikan Kross quarry, near Gothenburg, Sweden. The system incorporates prototype electric and autonomous machines including the HX2 autonomous, battery-electric load carrier, the LX1 hybrid wheel loader and the EX1 cableconnected excavator. These machines are part of a research project and are not commercially available. Cc

2018 Owner/operator ISSUE CALCONTRACTOR


INTRODUCING MEDIUM-SIZED G-SERIES SKID STEERS AND COMPACT TRACK LOADER Getting the most productivity and profitability on a jobsite often means finding the right machine. Our new G-Series mid-frames are just right for customers looking for exceptional versatility. In addition to our small- and largeframe models, we’re adding three medium-frame machines: the 320G and 324G Skid Steers, and the 325G Compact Track Loader. MAKE YOURSELF AT HOME Opt for the spacious, comfortable four-season cab, which is tightly sealed to help keep out noise and dust. Available options include a heated air-suspension seat and Bluetooth® radio. KEEP THINGS MOVING Like all G-Series machines, our medium-frame models are easy to trailer and compatible with a wide variety of Worksite Pro attachments, for superb versatility. KEEP IT CLEAN Like to keep things clean? You’ll appreciate the convenient new cab-footwell floor access that helps speed cleanout. Cab

side windows also remove easily for cleaning. REACH YOUR POTENTIAL More height to hinge pin (325G CTL only) enables easy loading of tandem-axle dump trucks, feed mixers, and fill hoppers. You’ll also appreciate the generous reach to truck-bed height when handling pallets of pavers or other heavy materials. HAPPY MEDIUM Our medium-frame G-Series machines are the perfect fit for customers who want productivity and technology similar to our large-frame G-Series models, but prefer a narrower, lighter machine.

WORKING KNOWLEDGE G-Series medium-frames are exceptionally reliable and simple to service. With JDLink™ telematics as an option, you’ll have access to machine data and health alerts to help keep you up and running. UNLEASH THE BEAST Excellent pushing power and bucket breakout forces deliver the tractive effort and leverage to carve out clay, handle heavy loads, and power through piles. Increased auxiliary hydraulic flow and power allow you to run an even broader range of attachments. HAVE IT YOUR WAY Choose the control styles and performance features that best fit your needs. Electrohydraulic (EH) ISO-pattern joystick controls come standard on the 325G CTL (optional on the 320G and 324G). Mechanical hand and foot controls are standard on the 320G and 324G. Cc

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2018 Owner/operator ISSUE CALCONTRACTOR


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2018 Owner/operator ISSUE CALCONTRACTOR



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JV Lucas Paving, Inc. is a fourth-generation paving company providing asphalt paving services to the Greater Bay Area for nearly 70-years. Located in Lafayette, they are one of the East Bay’s most versatile and successful asphalt paving companies.

JV Lucas Paving, Inc. paves a driveway at a private residence using their brand new LeeBoy 8520 paving machine from Nixon-Egli Equipment Co.

President and owner, Jim Lucas, has over 35 years of asphalt paving experience. The company consists of 15 employees, all experienced and specialized individuals, who have contributed toward building the great reputation that JV Lucas Paving, Inc. has earned. The scope of their work consists of small to large paving projects, focusing on public, private and commercial projects. JV Lucas Paving recently took delivery of a brand new LeeBoy 8520 paving machine from Nixon-Egli Equipment Co. This is their 11th LeeBoy purchased from Nixon-Egli Equipment whom they have been doing business with for over 30 years. Lucas comments, “We bought the new LeeBoy 8520 because we needed a heavier, larger paver that could handle the maximum tonnage we need to put down each day. The LeeBoy 8520 has a heavier screed, great mat quality, and all of the LeeBoy specifications that we have come to know and trust.” Lucas has this to say about Nixon-Egli Equipment Co., “Our Nixon-Egli Equipment salesman, Denny Johnson, works closely with our team and is always there for us, problem-solving and offering support whenever and wherever we need it,” says Lucas. “The entire team at Nixon-Egli Equipment has been great to work, including everyone with from sales, service, parts and finance. Working alongside Nixon-Egli for these past 30-plus years has been a great partnership and rewarding experience.”

California’s Largest General Line Construction and Municipal Equipment Dealer. So. California: 2044 S. Vineyard Ave., Ontario, CA 91761 • (909) 930-1822 No. California: 800 E. Grant Line Rd., Tracy, CA 95304 • (209) 830-8600

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