Alabama 7 March 27, 2019

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March 27 2019

Vol. XXXII • No. 7

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Charities, Contractors Pitch In to Help Relieve Tornadoes’ Devastation

By Lori Lovely

CEG CORRESPONDENT

As part of a powerful storm system that also tore through the Florida panhandle, South Carolina and Georgia, devastating tornadoes decimated parts of eastern Alabama during the first week of March, killing 23, injuring dozens more and leading Gov. Kay Ivey to declare a state of emergency.

First responders were on site almost immediately as the Federal Emergency Management Agency quickly turned out to organize a search for the missing and the state government assessed the damage and released contracts for construction.

Christian Aid Ministries photo Chainsaws and generators proliferated in the Members of the Rapid Response Team of Christian Aid area, but the most predominant pieces of equip- Ministries helps with the cleanup following a pair of devastating ment in use were skid steers equipped with grap- tornadoes in southeastern Alabama. ples.

The Rapid Response Team of the Christian Aid Ministries erly, widows and the handicapped by cutting and clearing Hudmon Construction photo brought in three skid steers, said Paul Kim Eichorn, country trees and debris from their homes.

President Donald Trump comforts David Grimes, a supervisor and liaison based in the ministries’ Ohio office, Rubble had to be moved to the right of way before FEMA mechanic from Hudmon Construction Co., during his who was responsible for sending teams from different states could haul it away. While it was the homeowners’ responsivisit to the devastated area. to the disaster sites, where they focused on helping the eld- bility to move it there, not all homeowners are able to do so.

“The Alabama EMA clears the roads,” Eichorn said. “We get trees off houses and tarp the roofs so houses don’t get damaged by the rain.”

Using chainsaws, the teams removed trees from driveways and yards. In addiMONTGOMERY, Ala. (AP) Alabama drivers will see a 10-cent support behind the bill. tion, they provided meals, necessary per gallon increase in the state gas tax to fund road and bridge conThe 10-cent-a-gallon gas tax increase will be phased in over three hygiene and other donated items, emostruction under legislation signed into law March 12 by Alabama years, beginning with an increase of six cents later this year. The tional support and assistance in arranging Gov. Kay Ivey. state tax would then be adjusted up or down with the National housing for displaced victims and famiCalling it a historic day for the state of Alabama, Ivey signed the Highway Construction Cost Index and could increase up to a penny lies in need. bill and related measures into law shortly after they won final every two years. The proposal would also place an annual $200 fee According to radar and video evidence approval in the Alabama Legislature. Ivey said lawmakers made a on electric vehicles and a $100 annual fee on hybrid vehicles. gathered by the National Weather Service, “bold statement that they are all in when it comes to investing in The bill also sets aside $11.7 million of the revenue to be used for several tornadoes touched down in Lee Alabama’s future.” a bond issue for improvements at the Port of Mobile.

County, reaching up to category 4 on the “What the members of the Alabama Legislature have done today The Republican governor found broad support in the GOPEnhanced Fujita Scale and packing winds is to improve Alabama’s infrastructure for generations to come,” dominated legislature for raising the motor fuel tax to fund road as strong as 170 mph. The affected area in Ivey said in a bill-signing ceremony at the Alabama Capitol. and bridge construction. State senators approved the tax increase Lee County was estimated to be almost a The swift legislative approval was a political victory for Ivey, on a 28-6 vote. The state House of Representatives approved the mi. wide and 24 mi. long. who called lawmakers into special session to consider the tax bill, 83-20. increase, and for Republican legislative leaders who also threw their see TAX page 2 see TORNADOES page 8

Gas Tax Hike to Fund Infrastructure Projects

Page 2 • March 27, 2019 • www.constructionequipmentguide.com • Alabama State Supplement • Construction Equipment Guide

Commerce Secretary: Infrastructure‘Key Issue’ for Growth Alabama Commerce Secretary Greg Ala. Governor’s Office Photo Canfield said March 4 that infrastructure improvements financed by Gov. Kay Ivey’s “Rebuild Alabama” plan would help the state’s economic development team sustain momentum as it seeks to recruit high-caliber jobs and companies.

“I believe we need to focus on infrastructure as a key issue in Alabama at this critical time,” Canfield said. “We have had tremendous success in bringing great companies from around the globe to the state. For these companies to thrive and expand, Alabama needs to have the best roads and bridges it Alabama Gov. Kay Ivey announced her “Rebuild Alabama” plan at press conference can.” at an aging bride in Chilton County.

Ivey’s “Rebuild Alabama” plan calls for “We are falling behind our neighboring a 10-cent increase on the state’s fuel tax, that inflation, greater fuel efficiency and risrolled in over three years, to generate fund- ing road construction costs have eroded the states, the ones we most frequently compete ing for improvements to the road network purchasing power of the fuel tax over time. with, in addressing our deteriorating infraOther economic development leaders structure, and that’s crippling our ability to and at the Port of Mobile, the state’s only seaport. The Alabama Legislature passed and business groups from around the state compete for investment and the jobs that the tax March 12. Ivey signed it into law the have joined Canfield in supporting the investment creates,” Searcy said.

“Rebuild Alabama” plan as an investment Justice Smyth, the ATI’s outreach direcsame day. tor and a former director of corporate develThe fuel tax had not been raised since in the future.

Jim Searcy, executive director of the opment at the Montgomery Area Chamber 1992, even though it is the chief revenue stream for state funding of road repairs and Economic Development Association of of Commerce, said Alabama’s businessAlabama, said deficiencies in Alabama’s friendly environment and effective workimprovements.

Experts from the Alabama infrastructure system could soon begin to force development programs position the Transportation Institute at the University of put the state at a disadvantage in the eco- state to succeed in economic development.

Alabama is not as strong in a third key Alabama noted in a January 2019 report nomic development process.

area: the transportation network.

“That’s where Alabama is struggling to stay as competitive as we are with the other aspects,” Smyth said. “Transportation is becoming more and more of a driver.”

Revenue generated by Rebuild Alabama would permit the Alabama State Port Authority to make improvements to the ship channel providing access to the facilities at the Alabama State Docks.

“Alabama’s port channel needs critical improvements to ensure Alabama industries remain competitive and enjoy transportation cost efficiencies to reach global markets,” said James K. Lyons, director and CEO of the Alabama State Port Authority.

“Our port will fall behind competing ports, who are already modernizing their infrastructure, if our port is not deepened and widened.”

The Business Council of Alabama, the state’s largest business group, also backs the infrastructure improvement plan.

“The road to our future must be paved,” BCA President and CEO Katie Boyd Britt said. “Alabama’s transportation system is the backbone of the state’s economy and is crucial to our economic growth, and I commend end Gov. Ivey for making this a priority of her Administration.” 

Construction Partners Backs Ivey Signs Gas Tax Into Law Rebuild Alabama Gas Tax Hike After Special Legislative Session Construction Partners Inc., a civil infrastructure company specializing in the construction and maintenance of roadways across five southeastern states, issued a statement March 14 following the enactment earlier in the week of the Rebuild Alabama Act, which provides for an increase in Alabama’s gas tax to be used for transportation infrastructure projects.

“We applaud Gov. Ivey and the Alabama Legislature for working in a bipartisan manner to ensure a stable source of funding for transportation infrastructure projects across the state,” said Charles E. Owens, president and chief executive officer of the company. “The additional resources generated by the Rebuild Alabama Act will continue to drive economic development and public safety efforts in the state. We look forward to playing our part in rebuilding Alabama’s roads and bridges.”

The Rebuild Alabama Act provides for a 10-cent increase in Alabama’s tax on gasoline (currently 18 cents per gallon) and diesel fuel (currently 19 cents per gallon) that will be phased in over three years, with an increase of 6 cents per gallon on Oct. 1,

2019, 2 cents per gallon on Oct. 1, 2020, and 2 cents per gallon on Oct. 1, 2021.

Beginning in 2023, the tax will be tied to the National Highway Construction Cost Index and will be subject to automatic adjustments of up to one cent every two years.

The law, which represents the first increase in Alabama’s gas tax since 1992, is expected to generate approximately $320 million in additional annual funding for investment in Alabama’s roads and bridges when fully implemented.

Construction Partners, Inc. is a vertically integrated civil infrastructure company operating across five southeastern states, with 31 hot mix asphalt plants, nine aggregate facilities and a liquid asphalt terminal. Publicly funded projects include local and state roadways, interstate highways, airport runways and bridges. Private sector projects include paving and site work for office and industrial parks, shopping centers, local businesses and residential developments.

For more information, visit www.constructionpartners.net.

TAX from page 1

Supporters said Alabama’s current 18cent gas tax has been unchanged since 1992, leaving the state without adequate funds to replace aging bridges and improve congested and dangerous roads.

“We addressed this because it’s the responsible thing to do. It’s been 27 years since we had an increase in revenue. We had to do something,” Senate President Pro Tempore Del Marsh, said after the vote.

A Democratic senator who voted against the bill said the tax increase would be a burden on low-income drivers in a state where politicians have rejected Medicaid expansion, minimum wage increases and tax reform efforts.

“I cannot with a clear conscience vote yes on this bill because of what it does to lowincome people and people under the poverty level,” said Sen. Vivian Davis Figures, a Democrat from Mobile.

Senators tabled a proposed change by Sen. Dan Roberts, R-Birmingham, that would have created a $40 million pool for tax rebates for low-income motorists.

Roberts also proposed to end any automatic increases through indexing in 2039.

Roberts said he wanted to revisit the idea in the regular session.

Despite the broad legislative support, the proposed gas tax increase has divided Republicans. The Alabama Republican Party Executive Committee approved a resolution opposing the measure. However, the Republican governor had the backing of GOP legislative leaders.

Road building companies, county commissions, chambers of commerce and cities mounted a push for the legislation.

Ivey made the infrastructure proposal one of her first initiatives after winning a full term in office in November. The governor called lawmakers into a special session to consider the gas tax increase. The proposal went before a Legislature with a large number of freshmen in a body that has often been resistant to tax increases.

Marsh said he had cautioned legislative candidates that he met with, telling them infrastructure would be a “something we had to deal with.” 

Construction Equipment Guide • Alabama State Supplement • www.constructionequipmentguide.com • March 27, 2019 • Page 3

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Page 4 • March 27, 2019 • www.constructionequipmentguide.com • Alabama State Supplement • Construction Equipment Guide

Construction Partners Makes Its Mark Across Southeast The road to success for Construction Partners Inc. (CPI) is paved with strong leadership, a continued strategic growth plan in the Southeast and the ability to attract talented individuals.

CPI is one of the fastest-growing civil infrastructure companies in the United States, specializing in the construction and maintenance of roads in Alabama, Georgia, Florida, South Carolina and North Carolina.

With corporate offices in Dothan, CPI was founded in 2001 and currently has about 2,000 employees, which is double the number employed by the company eight years ago.

Charles Owens, chief executive officer; Alan Palmer, chief financial officer; and Ned Fleming, executive chairman of the board and managing partner of SunTx Capital Partners, a Dallas-based private equity firm — all of whom are Wiregrass natives or have strong connections to the area — are CPI founding partners. In his role at SunTx, Fleming brought in the private equity partners who provided the initial capital to start CPI. All three men are still active in the business today.

“We are happy to have our corporate offices in Alabama and Dothan,” said Owens. “There is a lot of excellent talent in Alabama and the Wiregrass area.”

In May 2018, CPI took another milestone step in its relatively short history when it became a publicly traded company. It is one of only a few public companies that specialize in road construction. CPI raised more than $100 million in its initial public offering in the spring, and its Class A common stock is now traded on the Nasdaq Global Select Market under the ticker symbol ROAD. “There is only so much money available to grow with private equity,” Palmer said.

“We believe raising public money is the best route to create shareholder value and continue to grow the company.”

Thus far the strategy has proved to be successful, as CPI reported $680 million in revenue in fiscal year 2018, which ended Sept.

30. The revenue was up from $568 million in fiscal year 2017, and the company target is $1 billion in revenue by 2022.

When CPI started 18 years ago, Owens and Palmer were certainly not embarking on a road less traveled in their careers. In fact, combined, the two of them have more than 60 years of experience in the road construction industry.

They both began their careers in the road construction industry with Couch Construction, a family-owned hot mix asphalt company in Dothan. In 1986, Couch was sold to Superfos, a Danish company.

Superfos’ United States division headquarters remained in Dothan, with Owens serving as president and CEO and Palmer serv-

Jay Hare photo

(L-R): Construction Partners’ leadership team, CFO Alan Palmer, CEO Charles Owens and Senior VP John Harper, who also is president of Wiregrass Construction.

ing as CFO. During their time at the helm of the U.S. division of Superfos, Owens and Palmer oversaw the acquisition and integration of more than three dozen companies. It propelled Superfos U.S. into one of the largest highway construction companies in the U.S. In 1999, Superfos U.S. was sold to Ashland Oil Co. In 2001, the newly formed CPI purchased its first platform company in Florida — C.W. Roberts Contracting. The Florida company remains an integral subsidiary of the CPI family today. A year later, the company expanded into the Alabama market by purchasing Wiregrass Construction Co. Wiregrass Construction, like C.W. Roberts Contracting, is still a subsidiary handling all types of Alabama road construction projects.

In its first two years of existence, the young company was off and running by literally opening new roads for growth.

CPI grew in Alabama and Florida during its first 10 years. The second decade has seen growth into Georgia, South Carolina and North Carolina.

“Our target growth area is the Southeast,” Palmer says. “However, if it made sense, we would look outside the Southeast.”

Palmer said Southeastern weather patterns allow for year-round project work.

CPI’s acquisition history has included five platform companies in Florida, Alabama, Georgia and North Carolina, 11 bolt-on

companies and seven greenfield expansions.

Bolt-on companies and greenfield expansions are operated through the platform companies.

In addition, CPI operates 30 hot mix asphalt plants and nine aggregate facilities.

The hot mix asphalt plants provide material to resurface roads, airport runways and commercial sites. CPI also sells asphalt from the hot mix plants to local customers in some of its markets. In fiscal year 2018, CPI produced 3.6 million tons of hot mix asphalt, which was up 12 percent over the prior year.

About 70 percent of CPI’s revenues come from public projects and includes local and state roads, interstate highways, airport runways and bridges. From a private perspective, CPI offers paving and site work services for residential subdivisions, office and industrial parks, shopping centers and local businesses.

Both Owens and Palmer believe the company will continue to grow, because there is a significant need for road resurfacing and adding additional lane capacity. There is an increasing demand due to deteriorating roads and rising investment by public customers, such as states, in the fastest growing region of the country.

“Our growth strategy is to continue buying existing family-owned companies,” Owens said. “There are a lot of familyowned civil construction companies with hot mix asphalt plants.” He also believes there

are still a lot of families looking to retire and get out of the business, which will create more acquisition opportunities for CPI. CPI managers pride themselves on building a good reputation as a “buyer of choice” among companies looking to sell, allowing them to acquire and integrate some 16 companies over the years.

“Our goal is to retain the local management team of companies we acquire and to keep day-to-day decision making at the local level, while standardizing key business practices and providing strategic leadership and insight from our senior management team,” said Owens.

“There are a lot of talented people who are experienced in this industry,” Palmer said.

“By acquiring family-owned businesses, we give talented people an opportunity to advance in the company.”

John Harper, president of Wiregrass Construction and senior vice president of CPI, is an example of someone who has advanced in the company. He was recently named chairman of the National Asphalt Pavement Association, which represents the interests of asphalt pavement material producers and paving contractors on the national level with Congress, government agencies, and other national trade and business organizations.

As the company continues to grow, it is paving the way for talented individuals to keep CPI viable for years to come. 

Construction Equipment Guide • Alabama State Supplement • www.constructionequipmentguide.com • March 27, 2019 • Page 5

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Construction Equipment Guide • Alabama State Supplement • www.constructionequipmentguide.com • March 27, 2019 • Page 7

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Page 8 • March 27, 2019 • www.constructionequipmentguide.com • Alabama State Supplement • Construction Equipment Guide

Local Contractor Lends Equipment to Tornado Cleanup

Christian Aid Ministries photo

A Cat loader clears debris in the aftermath of the tornadoes.

Christian Aid Ministries photo

Skid steers equipped with grapples became the workhorses of the cleanup effort.

TORNADOES from page 1

The tornadoes were the country’s deadliest since May 20, 2013, when 24 people in Moore, Okla., were killed by an EF5 tornado. Local news reports quoted Sheriff Jay Jones describing “massive damage” to buildings and stating that many homes were completely destroyed.

Thompson Tractor Cat Rental in Opelika, Ala., also provided several skid steers with grapples, but, according to Will Watson, rental coordinator, most of the equipment used to clear debris was owned by local contractors such as B&J Enterprises and Hudmon Construction Co. Inc., which also sent employees to help.

Hudmon sent a large Komatsu excavator and a skid steer on Day 1 — a chilly 32degree day — to assist in the effort.

“We assisted the fire department,” said Brandon Clifton, Hudmon’s general manager, who personally operated equipment, clearing tree limbs, brush and portions of houses destroyed by the storm in order to allow crews to search for survivors.

Fortunately, the significant rainfall that accompanied the tornadoes did not impede cleanup operations, and equipment was able to access the area without getting bogged down.

Shifting focus to the affected area 10 mi. away from its headquarters in Opelika, Ala., forced Hudson to “pretty much shut down operations” while dealing with tornado damage, Clifton said. The company’s clients have been understanding, however, with one customer in Florida telling Hudmon that his job could wait while the work in Lee County

Hudmon Construction photo

An excavator from Hudmon Construction Co. Inc. clears debris on a site where a house used to be.

went on.

Clifton estimated that 10 of the tornado victims had direct connections to his company. The roof of Hudmon’s secretary’s house was blown off, he said, but the most tragic losses were visited on one of the company’s mechanics, David Grimes, who lost his brother Lynn and Lynn’s fiancée, and whose niece was hospitalized.

Grimes, who spent a great deal of time operating equipment during the rescue and recovery efforts, was embraced by President Trump during his visit to the ravaged site.

“We’re helping out our employee and our community,” Clifton said. “They call us the Bible Belt for a reason.”

Initially, Hudmon worked side by side with some of its competitors, but there were “so many other folks down here” to help with cleanup, Clifton said, that Hudmon is no longer on site. However, it left equipment behind to assist the county with cleanup.

“It’s on loan,” Clifton said. “We wouldn’t take a dime for it.”

To date, nearly $1 million has been donated for relief efforts.  CEG

Construction Equipment Guide • Alabama State Supplement • www.constructionequipmentguide.com • March 27, 2019 • Page 9

Page 10 • March 27, 2019 • www.constructionequipmentguide.com • Alabama State Supplement • Construction Equipment Guide

Montgomery • Jefferson • Talladega • Calhoun • Russell • Walker • Lawrence • Dekalb • Morgan • St. Clair • Tuscaloosa • Morgan • Shelby •Alabama…

Bibb •Hale • Fayette • Marion • Winston • Cullman • Shelby • Chilton • Chambers • Covington • Baldwin • Clarke • Monroe • St. Clair • Chilton • Escambia• Montgomery • Jefferson • Russell • Fayette • Conecuh • Coffee • Geneva • Montgomery • Jefferson • Talladega • Bibb • Coffee • Calhoun • Russell • • Walker• Lawrence• Dekalb • Morgan • St. Clair • Tuscaloosa • Bibb• Hale • Fayette • Monroe • Clarke • Winston • Cullman • Shelby • Chilton • Chambers • Covington • Baldwin • Clarke • Monroe • Montgomery • Jefferson • Talladega

‘The Yellowhammer State’ Highway Project Lettings

The Alabama State Department of Transportation received bids for transportation-related improvement projects.

Following is a list of some of the projects let.

County: Hale Contract ID: 20180928010 Project: Bridge replacement and approaches.

Location: On CR 68 (Gasline Road) over a tributary to Greer Creek and on CR 40 (Greer Creek Road) over a tributary to Greer Creek.

Contractors and Bid Amounts: • Mitchell’s Contracting Service LLC — $518,291 • Winston Contracting LLC — $565,950 • Gillespie Construction LLC — $575,273 • H & L Construction Inc. — $623,977 • Cornerstone Civil Contractors LLC — $672,933 • Carcel & G. Construction LLC — $724,106 • MSE Building Company Inc. — $729,021 County: Hale Contract ID: 20180928014 Project: Resurfacing and traffic stripe.

Location: On CR 16 from the intersection of SR 25 to the intersection of SR 61 in Newbern.

Contractors and Bid Amounts: • Asphalt Contractors Inc. — $1,004,362 • S. T. Bunn Construction Company Inc. — $1,123,876 County: Hale Contract ID: 20180928015 Project: Resurfacing (full depth reclamation) and traffic stripe.

Location: On CR 12 from the junction of SR 25 to the junction of SR 61.

Contractors and Bid Amounts: • Blount Construction Company Inc. — $1,177,576 • Asphalt Contractors Inc. — $1,288,926 County: Russell Contract ID: 20180928026 Project: Front slope repair.

Location: On SR 1 (U.S. 431) at mp 85.500 (northbound lane) southwest of Pittsview.

Contractors and Bid Amounts: • W. S. Newell & Sons Inc. — $1,534,032 • Newell Roadbuilders Inc. — $1,550,252 • Robinson Paving Company Inc. — $2,567,111 County: Shelby Contract ID: 20181102001 Project: Widening, planing, resurfacing and traffic stripe.

Location: On CR 17 from the junction of CR 22 to the junction of CR 26 in Brantleyville.

Contractors and Bid Amounts: • Wiregrass Construction Company Inc. — $1,173,951 • Midsouth Paving Inc. — $1,189,476 • Dunn Construction Company Inc. — $1,234,268

County: Barbour Contract ID: 20181102009 Project: Pile encasements and riprap placement.

Location: Various bridges on CR 72, CR 31, CR 53, CR 20, CR 17, and CR 75 in the southeast region.

Contractors and Bid Amounts: • Riley Bridge Company Inc. — $762,575 • Carter’s Contracting Services Inc. — $898,162 • Grady Ralls & Sons Inc. — $991,359 County: Shelby Contract ID: 20181102012 Project: Proposed bike lanes (grade, drain, pave, bridge and stripe).

Location: On John Findlay Drive from State Park Road to the North Trailhead at Oak Mountain State Park.

Contractors and Bid Amounts: • Wiregrass Construction Company Inc. — $3,992,320 • Winston Contracting LLC — $4,149,716 • Chilton Contractors Inc. — $4,354,085 • Carcel & G. Construction LLC — $4,389,194 • Cornerstone Civil Contractors LLC — $4,494,449 • Ikaros LLC — $4,750,000 County: Crenshaw Contract ID: 20181102020 Project: Planing, resurfacing and traffic stripe.

Location: On SR 9 from the Conecuh River Bridge to south of Sasser Street and on SR 15 from north of the Dry Creek Bridge to SR 9.

Contractors and Bid Amounts: • Wiregrass Construction Company Inc. — $1,031,382 • Midsouth Paving Inc. — $1,246,054

County: Covington Contract ID: 20181102029 Project: Safety widening, planing, resurfacing and traffic stripe.

Location: On SR 15 (U.S. 29) from mp 48.477 in Andalusia to the Crenshaw County line.

Contractors and Bid Amounts: • Wiregrass Construction Company Inc. — $5,282,949 • Midsouth Paving Inc. — $5,823,612 County: Cullman Contract ID: 20181102038 Project: Resurfacing (scrub seal) and traffic stripe.

Location: On CR 1545 from the junction of CR 1422 to the junction of CR 1527 northwest of Fairview.

Contractors and Bid Amounts: • Reed Contracting Services Inc. — $763,640 • Good Hope Contracting Company Inc. — $780,114 • Wiregrass Construction Company Inc. — $875,564 County: Jefferson Contract ID: 20181102021 Project: Planing, resurfacing and traffic stripe.

Location: On SR 150 from the junction of Morgan Road to 0.06 mi. west of the junction of Lake Cyrus Boulevard in Bessemer.

Contractors and Bid Amounts: • Dunn Construction Company Inc. — $1,221,260 • Midsouth Paving Inc. — $1,428,159

Construction Equipment Guide • Alabama State Supplement • www.constructionequipmentguide.com • March 27, 2019 • Page 11

Page 12 • March 27, 2019 • www.constructionequipmentguide.com • Alabama State Supplement • Construction Equipment Guide