Equipment Today February 2016

Profit Matters: How to Unlock the Profit Potential in Equipment Telematics Helping you optimize ROI on your construction equipment

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FEBRUARY 2016

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ELECTRONICS BOOST COMPACTS' ROI Smart Features Speed Payback of Compact Equipment

Page 20

SPECIAL REPORT: IMPERFECT HIGHWAY BILL IS STILL A STEP FORWARD

2016 ROAD BUILDING OUTLOOK

MORE EMISSIONS CUTS AHEAD

Experts share their forecasts for the transportation sector.

Push to cut truck emissions is moving to the next phase.

Pg 22

Pg 29

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2/11/16 7:38 AM

The all-new 2016 Ford F-650/F-750* present upfitters with a clean cab-to-axle design. There are no components to move, no rivets or bolts along the top of the frame rails to get in the way, helping to make upfitting easy and fast. It’s more proof that Ford means business.

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2/9/16 1:44 PM

DID YOU KNOW? You can order the new F-650/F-750 with fully integrated Ford Telematics™ powered by Telogis® to get historical and real-time status of vehicle health, location, driver activity and more. Experience how Ford Telematics can help save time and money for fleets of all sizes.

THE ALL-NEW F-650/F-750 *Aftermarket equipment shown. Available Fall 2015.

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/// FORD.COM

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Contents ELECTRONICS ENHANCE

FEBRUARY 2016 | ForConstructionPros.com

COMPACT EQUIPMENT ROI

COVER STORY

PRODUCTS 8 Equipment Introductions

24 Road Building Equipment Check out these asphalt

Publication Staff

DEPARTMENTS 6 Breaking Ground Five-year “Fix” Offers No

Cold Weather Dress Tips for Outdoor Construction Workers

If you truly expect to protect your people, you need to be taking a much wider perspective, says safety expert John Meola.

ForConstructionPros.com/12147592

The first long-term highway bill in a decade is flawed but provides a good starting point for the future.

STATE OF THE INDUSTRY — ROAD BUILDING PART 2 pg 22 In Part 2 of our industry outlook, economists share insights on the future of the transportation sector.

PUSH TO CUT EMISSIONS IS FAR FROM OVER pg 29 Cutting NOx and particulate matter was only the first step.

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Step Ahead of OSHA

ONLINE EXCLUSIVES

SPECIAL REPORT: AN IMPERFECT BUT POSITIVE STEP FORWARD pg 20

4 EQU IPMENT T OD AY | February 2016

27 Safety & Compliance Milling Industry Stays a

from Tax Extenders

Key steps enable you to extract actionable intelligence from the data delivered by telematics systems.

29

Real Solutions

35 Running the Business Plan to Get Max Benefit

HOW TO UNLOCK THE PROFIT POTENTIAL IN EQUIPMENT TELEMATICS pg 16

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paving and compaction options for your road building projects.

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15 Skid-steer Loaders Find the latest skid-steer models in various size classes.

Electronic controls enable “smart” features that boost equipment, operator and attachment productivity. Page 12

®

10 Construction Trends Shaping the Industry in 2016 and Beyond

Emerging technologies and construction practices will transform the construction industry and lead to projects that are faster, safer and less expensive.

ForConstructionPros.com/12162200

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Information about DEF to help you manage Tier 4 equipment for maximum uptime and ROI. ForConstructionPros.com/12154872

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GOT A BEAST OF A JOB?

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1.877.745.7813 Bobcat ® and the Bobcat logo are registered trademarks of Bobcat Company in the United States and various other countries. ©2016 Bobcat Company. All Rights Reserved. | 1275

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B R E AKI N G G R O U N D By Becky Schultz

Five-year “Fix” Offers No Real Solutions

Becky Schultz / bschultz@acbusinessmedia.com

THE FIXING AMERICA’S SURFACE Transportation Act (FAST Act) was passed

by Congress late last year with broad bipartisan support. Yet, few are calling the new five-year highway bill a resounding success. As noted in the Special Report on page 20, the $305 billion federal spending package has a number of positive provisions, but fails to address the larger issues the transportation sector faces.

According to Pete Ruane, president and CEO of the American Road and Transportation Builders Association (ARTBA), legislators “sidestepped” a chance to put the federal highway and transit investment program back on solid ground long term. Congress chose to maintain the existing gas tax rather than develop a sustainable funding mechanism to shore up Highway Trust Fund (HTF) revenues.

Funding levels in the FAST Act also fall well below what is needed. “Congress and the Obama Administration... fell short in providing the level of investment that would result in demonstrable improvement in the overall physical conditions, performance and safety of the system,” Ruane states. “At best, we will be treading water.”

The legislation does modestly increase funding levels; provide a level of certainty for state DOTs over a five-year period; and reduce federal red tape for state transportation improvement programs. “This, in turn, will help maintain employment, assists the public and private sectors to plan ahead and it will speed up project delivery,” Ruane acknowledges.

Congress and the Obama Administration... fell short in providing the level of investment that would result in demonstrable improvement…

No stakes, No paper, No problems.

To solve problems on today’s stakeless site, foremen need more information than a paper plan can give them. The Trimble ® SitePulse™ System allows foremen to document decisions and share issue or event reports that include photographs and position information. Simply put, it’s a fast and affordable way to keep foreman, operators, and the office all on the same page.

Replace paper plans.

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It also provides greater flexibility for state and local governments in spending on necessary projects, and an expanded focus on transportation projects that are national or regional in scope.

While a positive move forward, the highway bill fails to address revenue generation, instead siphoning funds from several sources to fill the gap between spending levels and HTF revenues. This is a temporary fix at best.

Members of the Americans for Transportation Mobility (ATM) Coalition believe Congress must continue to pursue dependable sources of funding that will meet the nation’s infrastructure needs for the foreseeable future.

“It is a good thing for American communities, businesses and consumers that we’re not facing a series of short-term patches any time soon,” states Thomas W. Smith III, FASCE, executive director, American Society of Civil Engineers. “But it’s not too soon to start looking down the road at the enduring need for sustainable funding solutions to put this critical national program back on solid footing for the next decade.”

Ed Mortimer, executive director of the ATM Coalition and executive director of Transportation Infrastructure, Congressional and Public Affairs for the U.S. Chamber of Commerce, agrees, noting, “Ultimately, the country needs a dedicated, sustainable funding source to meet the nation’s tremendous and still growing transportation infrastructure needs.

“However,” he adds, “the FAST Act is a bipartisan compromise that will provide states across America with certainty around which they can plan and carry out critical transportation projects for at least five years.”

That in itself is at least a step in the right direction. ET

THE CONSTRUCTION TECHNOLOGY STANDARD

Trimble Heavy Civil Construction Division (800) 361-1249 (937) 245-5154 FAX: (937) 233-9441 © 2015 Trimble Navigation Limited. All rights reserved. TC-202 (3/15)

2/9/16 7:52 AM

SUDDENLY, OTHER FUEL GUARANTEES FEEL A BIT LIKE THIS.

Introducing the John Deere WorkSight™ Fuel Advantage. Like other manufacturers, we pay you back if your machine doesn’t meet a fuel consumption target. But this is where other fuel programs hit empty.

• Our fuel consumption targets are 10% lower than Cat®’s.* • We give you quarterly reports with suggestions for improvement.

• Receive a $100 fuel card for use at participating fuel retailers when you discuss your frst quarterly report with your Construction & Forestry dealer.

Talk about getting more from a fuel guarantee. For details, see your John Deere dealer or visit our web site. * Compared to the Cat® Fuel Guarantee Program fuel consumption guarantee levels as of November 2, 2015.

Cat® is a registered trademark of Caterpillar. The John Deere WorkSight Fuel Advantage program is available now through April 30, 2016.

JohnDeere.com/FuelAdvantage

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EQUIPMENT INTRODUCTIONS

Take a look through the next couple of pages for the latest equipment available. You’ll find a sampling of both new machines and models that have been revamped by the manufacturers. For more information on these products, fill out the reader service card following page 10 or visit the Buyers Guide at ForConstructionPros.com.

ReachMaster

Bluelift B85 Hybrid Compact Lift

Volvo

SD75B and SD115B Soil Compactors The 74-hp SD75B and 148-hp SD115B are powered by Tier 4 Final engines and can achieve up to a 40% reduction in fuel consumption with an ECO mode and quicker ramp-up speeds at lower pressure. The SD75B has a 66-in. drum width, 15,432- to 15,986-lb. operating weight and 21,600/29,700 lbs. (low/high) of centrifugal force.

The SD115B has an 84-in. drum width, 25,668- to 26,015lb. operating weight and 46,800/58,050 lbs. of centrifugal force.

Both units offer two standard frequencies (1,850/2,025 vpm) and five optional frequency settings. The advanced drum control system allows the operator to adjust frequency and amplitude to compensate for changing soil types and conditions. The machines can be set up in three different configurations and are available with a smooth or padfoot drum.

The 7,600-lb. Bluelift B85 can be powered by a standard 15-hp Honda engine and electric motor, a single-cylinder diesel engine and/or lithium ion battery pack or a hybrid between batteries and combustion engine. The electrohydraulic system provides the ability to operate two independent functions at the same time, and enables simplified and reduced control circuits, increased power and the ability to dial in functions with full proportional control. The unit has a 550-lb. basket capacity and a four-section telescopic boom and articulated jib that offer an unrestricted 85-ft. working height and a 47-ft. 10-in. maximum outreach. Features include an improved operator interface, multi-position outriggers, auto-leveling, auto center position of turret and a double-speed drive system.

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DeWalt

DCH273P2 MAX* XR Brushless SDS Rotary Hammer

The 1-in., 20-volt DCH273P2 MAX* XR Brushless SDS rotary hammer is suitable for use in various concrete drilling applications. Its brushless motor provides 2.1 joules of impact energy, and is optimized for chipping work and drilling diameters of 1/2 in. or less. It provides a no-load speed of 0 to 1,500 rpm and generates from 0 to 4,600 bpm.

The SHOCKS Active Vibration Control significantly reduces vibration (6.6 m/s² vibration at the handle) and increases user comfort and productivity. The lightweight hammer comes with a retractable utility hook that allows it to be hung from a belt, lifts, ladders, carts, etc., as well as an LED with a 20-second delay that provides visibility in dimly lit spaces.

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Bobcat Topcon

GLS-2000 Laser Scanner Models The GLS-2000S, GLS-2000M and the GLS-2000L are designed to capture data based on the measurement range needs of specific applications. The S model is optimized for short-range applications, while the M and L models are suited for medium- and long-range measurement fields. Using Precise Scan Technology II, the units are designed to emit pulse signals three times faster than earlier GLS systems, enabling timing to be detected more precisely, which results in reduced noise and higher accuracy data. Dual 5MP cameras include one with a 170° wide-angle lens for high-speed imaging, as well as an 8.9° telephoto camera that is coaxial with the measuring axis. When paired with ScanMaster software, the models provide complete systems for capturing and processing 3D point cloud data.

S595 Skidsteer Loader This 74-hp 500-frame size skid-steer loader boasts a 2,200-lb. rated operating capacity and weighs 6,800 lbs. The vertical lift path model offers a 119-in. lift height to hinge pin. M-Series features include optimal operator comfort, machine performance and enhanced visibility. Standard two-speed travel allows operators to choose between low and high speeds to match jobsite conditions and tasks. A pressurized cab minimizes dirt and dust and keeps operators more comfortable. Simple checkpoints make it easier to perform routine maintenance. Auxiliary quick couplers mount directly to the front plate of the lift arm. The guard bar extends in the front of the coupler for added uptime protection. Simple hose routing through the loader arms allow for better protection.

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ForConstructionPros.com

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Power and comfort make all the difference on the job, and Takeuchi’s new TS80 skid steers are big on both. These highly maneuverable models feature low-effort pilot controls that are comfortable, precise and low maintenance, delivering consistent, reliable performance day in and day out. The operator’s station features a lower threshold for easy entry and exit, and an updated multi-function LCD display keeps the operator informed of the machine’s functions and performance. Find all the details at takeuchi-us.com.

THE NEW LARGE-FRAME TS80 SERIES The new TS80 skid steer is available in both vertical and radial lift arrangements. Both are packed with features for outstanding power and productivity.

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FIND OUT WHAT OTHERS KNOW. VISIT TAKEUCHI-US.COM TO FIND THE DEALER NEAREST YOU.

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EQUIPMENT INTRODUCTIONS

Rhino

REX Excavators REX excavators are available in crawler or wheeled models ranging from 3 to 70 tons. Yanmar or Cummins engines rated from 25 to 354 net hp enable maximum digging depths from 6.5 to 23.6 ft. and bucket digging forces from 2,563 to 73,737 lbs. Features include opencenter, load-sensing hydraulic systems, automatic speed control to increase fuel efficiency, Kawasaki pumps, a closed cab with ergonomic seat, radio and air conditioning and a hydraulic line for accessories and attachments.

Optional accessories include different materials and sizes of track shoes and longer arms. The 20-ton REX 210 shown includes a 150-hp Cummins engine, 1.3-cu.-yd. bucket capacity, on-demand cooling system, advanced multi-function monitor and productivity modes to adjust digging style to the application.

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SEE VIDEO: ForConstructionPros.com/12145549

Sakai

SA33L-2 Trench Roller The 24.6-hp SA33L-2 offers a tight turn radius that cuts in half the time spent on manholes, and a solid frame capable of withstanding severe conditions. It comes standard with an infrared remote control system, or infrared remote and manual controls on the Dual Control model.

Split-style drums enable easy 24- to 33-in. conversion.

The unit provides 19,460 lbs. of centrifugal force, a vibration frequency of 1,950 vpm and amplitude of .083 in.

The heavy-duty yet simple engine compartment layout along with marinegrade wiring, accessible sectional hydraulic hoses and a metal engine compartment hood with heavy-duty self-adjusting hood latches ensure durability and ease of maintenance and service. The molded polyurethane battery shock mounting includes cast dynamic shock absorbers for added stability.

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Mustang

550Z Compact Excavator The 5.5-metric ton 550Z zero tailswing compact excavator is equipped with a 47.6-hp Yanmar Tier 4-certified, turbocharged diesel engine with electronic throttle. The ECO mode can be activated with the flip of a switch inside the cab and will reduce engine speed by 10% without sacrificing power. Auto deceleration decreases engine speed to idle after four seconds without hydraulic movement. The unit has a boom offset swing of 68° in both directions, and provides a 12-ft. 9.5-in. digging depth and 9,419 lbs. of bucket breakout force.

A proportional auxiliary hydraulic rocker switch allows the operator to adjust the hydraulic flow for optimal attachment performance. ISO or optional backhoe control patterns are selectable via a mechanical lever. An angle blade with float and bolt-on cutting edge is a factory installed option.

Takeuchi

TL12V2 Vertical Lift Compact Track Loader The TL12V2 features a vertical lift loader arrangement that provides a 4,107-lb. rated operating capacity (35% of tipping load), greater reach and lift height, optimal stability and enhanced load and carry performance over the TL12 radial lift model. The unit also delivers 7,884 lbs. of bucket breakout force. Power is supplied by a Kubota 3.8L, Tier 4 Final-compliant diesel engine generating 111.3 hp and 284 ft.-lbs. of torque. A lower rear crossmember design provides improved visibility to the rear of the machine, while a revamped operator’s station with wider cabin ensures greater operator comfort and accessibility. The quiet track design reduces noise and vibration during operation, and a new tread pattern produces greater flotation to minimize ground disturbance. A lengthened undercarriage provides greater stability and improved ride quality.

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Access Construction Equipment

Gas-powered Generators

These 12,000- or 18,000-watt, 480volt, industrial-quality, three-phase generators are powered by a 23-hp Vanguard gasoline engine with low oil shutdown that will operate for up to 6.5 hours under half load and 6 hours at maximum load. Features include a powdercoated frame, recessed control panel, electric start, battery tray, L16/20 plug and cord. Also available is a 12,000-watt, 120-volt model with a 23-hp Vanguard engine that will operate for up to 6.9 hours under half load and 6 hours at maximum load. It weighs in at 284 lbs. and includes a powder-coated frame, electric start and battery tray. All models are available with optional two- and four-wheel kits that make it easy for a single person to transport them to a location and around the jobsite.

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SEE SPEC SHEET: ForConstructionPros.com/12162174

SEE VIDEO: ForConstructionPros.com/12146064

ForConstructionPros.com

2/9/16 7:56 AM

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2/9/16 7:56 AM

COM PACT E Q UI P M E N T By Curt Bennink

ELECTRONICS ENHANCE Compact Equipment ROI

Electronic controls enable “smart” features that boost equipment, operator and attachment productivity.

T

he integration of hydraulic systems and recent electronic engine systems with software enables features that simplify attachment operation and reduce operator fatigue.

Electrohydraulic (EH) controls were introduced on skid-steer and compact track loaders almost 15 years ago, and have become popular on larger models over the past five years. They are also gaining popularity on mid-size machines.

Three primary methods control hydraulic valves on skid-steer and compact track loaders — manual, pilot and electric. Each has its place depending upon the application and operator preference. Pilot controls were the first advancement over manual controls, reducing the effort needed to manually open and close hydraulic valves. But expanding the actual functionality of pilot controls meant adding additional hydraulic lines or ports to the hydraulic valve.

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With EH controls, joysticks are connected to an electronic control unit (ECU) by wires.

The ECU is then wired to an actuator on the hydraulic valve.

“Electronic controls allow us to add features and have variable settings that may not be available with hydraulic pilot controls,” says Mike Fitzgerald, product specialist, Bobcat. “When you get electronic control systems adjusted properly, they can accommodate the operator’s preferences better and meet the needs of individual jobsite requirements.”

Both EH and pilot controls remain popular. “Both styles allow operators to perform their work very well. But EH controls really show their value when working in varied applications where the operators want a different feel from their skid steer as they move from task to task,” says Scott McElroy, SSL/ CTL training manager, Case Construction Equipment.

SOFTWARE DRIVES FLEXIBILITY Software is the key enabler.

“Dynamic mapping of input to valve output characteristics allows the operator to change how the machine responds to a given command,” says Chris Schottler, engineering manager, Advanced Technology, Eaton.

“EH controls enable capabilities

such as remote operation and adjusting the sensitivity of the machine based on the work being performed. EH can also tie in operator input commands with other machine information, including engine speed and power demands, to make smarter decisions about what the machine needs to be doing.”

to have six hoses, which can be a challenge to route in a compact machine like a skid steer,” Powell notes. “Another advantage of EH systems is the ability to add advanced diagnostics, which make it easier to maintain and prevent downtime.”

EH controls let the operator adjust to the preferred control

One drawback is EH controls command a price premium.

“Though the gap is closing, currently EH controls are still a premium in our industry when looking at up-front costs,” says Nadine Powell, global strategy and planning manager, Eaton.

However, there are several advantages to EH systems that help offset those costs. “For example, installation is faster and less complex. Pilot-operated controls require each joystick

EH controls really show their value when working in varied applications where the operators want a different feel from their skid steer as they move from task to task. pattern at the flip of a switch.

“The ability to switch operating patterns with the simple push of a button is something that is consistently praised by operators,” says McElroy. “That ability to easily switch the control pattern

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COMPACT EQU IPMENT

can mean the difference between a new employee expertly operating the machine in a pattern they are familiar with vs. trying to muddle through and make due because they are unsure of how to change the pattern.”

Operators are also able to adjust the “feel” of the controls as needed. “The challenge is that ‘feel’ is very subjective — each operator has their own interpretation on what feels right,” says Steve Zumbusch, director, Technology Development, Eaton. “EH control enables the user to match their ‘feel’ preferences to how the machine actually responds.”

EH controls offer greater speed, as well. “You can make electronic controls fast and reactive to the point that they are significantly faster than pilot controls,” says Bobcat’s Fitzgerald. “Control systems are tested at maximum speed initially. We then manage settings internally through software to make them smooth and work properly for the operator.”

Since software serves as the interface between the hydraulic controls, it is possible to add features in the future via upgrades without having to change hardware. “Software is an enormous part of EH systems and the flexibility they provide,” says Zumbusch. The importance of

such features is likely to increase as sophisticated attachments become equipped with positioning and telematics technologies.

EH systems allow a new degree of customization. “In the digital world, customization is easier and has fewer recurring costs,” says Schottler. “These recurring costs make it much more expensive to make special hardware for a customer, as compared to providing customized software or a different parametric setup.

“As end users demand better performance and custom solutions, machine builders will continue to build on the unique

capabilities that electronic controls will bring to differentiate their machine,” he continues. “Safety fencing (limiting the operating footprint), return to dig and other features make these machines more productive and lower overall operating costs for a job to justify adding more capabilities.”

Easing operator loads and automating certain functions will also make the machines more productive, even in the hands of a novice, says Schottler.

“EH systems allow Caterpillar to offer premium control features on our skid-steer loader, multi-terrain loader and compact track loader models,” says Kevin Coleman, senior marketing engineer, Caterpillar. “[Such features include] adjustable implement response modes, adjustable drive response modes, Speed Sensitive Ride Control, Creeper mode, Dual Self Leveling, work tool positioner and Return-to-Dig. Another feature is power management. “With EH controls, the engine power output can be set to match the power being requested by the operator,” says Schottler. “For under-sized engines, the power request can also be manipulated so that the engine does not stall. Additional functions include bucket shake and selectable flow priority, in which key functions continue to get the flow if there is not enough to meet all functions.”

ATTACHMENTS AND APPLICATION DETERMINE BEST STRATEGY “As performance expectations continue to rise, these machines will have to be tailored to get the most out of each attachment,” says Zumbusch.

EH systems provide this ability. “EH controls allow machines

The advanced controls on Caterpillar machines allow the operator to select one of three Implement response levels. This enables the operator to match the responsiveness of lift and tilt functions to the requirements of the specific attachments or tasks.

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to be dynamically configured for certain attachments,” says Schottler. “When a new attachment is placed on the machine, the controls can be reconfigured to match the implement’s requirements (scale the flow gains, maximum flow limitations, etc.).”

The joystick control system offered by Bobcat clearly illustrates how EH-enabled features such as Speed Management and drift compensation directly enhance attachment productivity.

“With Speed Management, you can set the specific speed on the machine, move the joystick to its full stroke and have full hydraulic flow so your attachment isn’t overloaded or being pushed too hard,” says Fitzgerald. You can also optimize the speed to the job. “That really works well with cold planers, trenchers or a grader.”

Drift Compensation further enhances attachment utilization. “If you are operating a planer or a trencher that is offset to one side, you can adjust drift compensation to give more power to one side than the other, which helps the operator maintain a straight direction,” says Fitzgerald. The operator doesn’t have to keep making manual corrections.

Automated features can also simplify attachment operation. An example is Bobcat’s tree spade attachment. “You can set it in automatic mode where it will automatically activate each spade individually,” says Fitzgerald.

“The operator presses a button and it automatically forces the spades into the ground in an efficient manner.”

But EH controls are not the correct choice for every application. To meet diverse customer demands, a few manufacturers offer several control options.

Bobcat offers three different control systems. “Joystick controls tend to be more popular on the compact track loader line than in the skid-steer line,” says Fitzgerald. “The track loaders are heavier and push more material. Operators feel more force on manual steering levers when compared to joysticks. From a long-term operational standpoint, joystick controls offer low effort, low fatigue operation. When looking at our product lineup, we see joystick controls used more on the larger, heavier, higher horsepower machines than we do on smaller machines.”

“With EH controls, the engine power output can be set to match the power being requested by the operator.” ­— Chris Schottler, Eaton

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COM PACT E Q UI P M E N T Bobcat has developed a plug-and-play radio control solution for its skid steers and compact track loaders due to the electronic controls on its Selectable Joystick Control-equipped machines.

This is partially due to cost. “On a lower priced skid-steer loader, adding that option has a larger effect on the overall purchase price than it does on a larger horsepower track loader,” Fitzgerald explains. “Overall, the joystick control option on Bobcat loaders increases every year. Once the operator has been trained and learns what features are available, their productivity and profitability increase.”

“The skid-steer loader and compact track loader market offer both high- and low-end machines,” says Powell. “Similar

to your car, you can either get all the bells and whistles or a simple car with the basics. Pilot hydraulics are offered on the lower end/inexpensive machine for basic work. Any platform that relies on precise control or complex functions will always see a benefit with EH functionality.”

For instance, the advanced controls on Caterpillar machines provide the ability to adjust a number of machine settings.

“The operator can easily select one of three Implement Response levels,” says Coleman.

“This allows the operator to choose the

responsiveness of lift and tilt functions to match the requirements of the implement functions to specific work tool attachments or tasks.

This means improved productivity by giving greater work tool control (lowest setting) for precision jobs like material handling where precise work tool control is desired. It also provides quicker movements for production work (highest setting).”

EH systems provide significant advantages when operating complex implements, such as cold planers,

Dynamic Machine Control.

Empowered by Eaton.

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trenchers, brooms, etc.

“The EH mode enables Caterpillar to offer a creeper control mode, which allows the operator the ability to fully move the drive joystick in the direction of travel,” Coleman explains. “Adjustments can then be made via the main cabin display, while driving to limit the machine ground speed and provide a performance match between the machine speed and the optimum work tool attachment speed. This provides greater comfort to the operator when using these types of hydromechanical tools for long periods of time. It also results in a more consistent cut/trench/ sweeping pass to deliver a better finished product with one pass, minimizing or eliminating any required rework.”

By allowing the operator to tailor the hydraulic system’s response rates to fit the application, jobs can be completed more confidently and quickly.

For instance, Case Alpha skid-steer loaders offer nine preset control settings — combinations of three for speed and three for control. Case claims these settings meet the needs of 85% of operators. For those that need even more fine-tuning capability, the company offers a custom option with the potential for 1,225 different combinations of speed and control settings.

“One of the examples regarding how EH controls give the operator more flexibility revolves around contractors regularly moving between wide open areas and smaller, more confined areas, and operators who regularly work with different attachments,” says McElroy.

For example, an operator using a skid steer with forks in a wide-open supply yard will operate the machine at high speed/high control. “As that operator moves indoors where there are new obstacles, workers and more confined operating spaces, they can easily switch to a low/low setting,” says McElroy. “In other applications where attachments are being used that require some level of precision or there is a heavy load being put on the attachment — planers, milling machines, soil rakes, a broom or a snowblower — a low/low setting may be most appropriate.”

Such flexibility means work can be done in the most efficient manner for the given task. “We are always looking for new, innovative ways to help customers solve problems and make their jobs easier,” says Caterpillar’s Coleman.

“EH controls and software solutions are part of that evolution. The EH control platform has already played a part in the state-of-the-art features we deliver to customers to help them solve problems, make their jobs easier and, ultimately, help them make more money with our equipment.” ET

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SKID-STEER LOADERS >> Products

JCB Demolition Package

Caterpillar RemoteTask System The RemoteTask remote control system is designed for integration into 16 models of the Cat D Series skid-steer, multi terrain and compact track loaders.

• Provides precise control of machines and more than 200 work tools from outside the cab and from as far away as 1,000 ft.

• Intuitive remote control interface closely mimics in-cab machine controls with virtually no lag in machine response time • Proportional hydraulic flow capability enables oil flow to auxiliary work tools to be adjusted via a thumb dial • Transitions from manual to remote mode at the turn of a key switch • Includes emergency stop buttons, fail-safe communications between transmitter and receiver and a tilt sensor on the controller

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Bobcat Tier 4-compliant 700 and 800 M-Series Loaders The S750, S770 and S850 skid-steer, A770 all wheel steer and T750, T770 and T870 compact track loaders include Bobcat 3.4-liter, Tier 4-compliant diesel engines that do not require a diesel particulate filter (DPF).

• 75-hp and above models have an updated in-cab display panel with DEF level indicator and SCR error icon and audible alerts when the DEF tank gets low • Offer 8,893- to 12,925-lb. operating weights, 3,200- to 3,950-lb. rated operating capacities and vertical lift paths with 11- or 12-ft. lift height to hinge pin • 85- and 92-hp ratings with the exception of the 100-hp T870 • 23-gpm auxiliary hydraulic flow with 36.6-gpm high-flow option

The 6,370-lb. R200S radial lift path skid-steer loader has a rated operating capacity of 2,000 lbs., 116 in. of lift height and nearly 22 in. of reach.

• Boasts 10.5-in. ground clearance and a 28.3° rear angle of departure • Comes equipped with a 60-hp Perkins diesel turbocharged engine and loadsensing, variable-flow hydraulics to provide 8,453 lbs. of tractive effort • Optional two-speed transmission enables travel at up to 12 mph • 25-gal. fuel tank • Variety of performance-matched attachments available

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John Deere Mid-frame E-Series Loaders

Volvo Expanded C-Series Loader Line

Case SR240 and SV280 Tier 4 Final Skid Steers The 7,400-lb. SR240 and 8,090-lb.

SV280 Tier 4 Final large-frame skid steers feature a 74-hp Tier 4 Final engine with a maintenance-free particulate matter catalyst solution.

• Deliver 232 ft.-lbs. of torque, a bucket breakout force of up to 8,680 lbs. and standard (24.2 gpm) and high-flow auxiliary (33.2 gpm) hydraulics • Offer rated operating capacities of 2,400 (SR240) and 2,800 lbs. (SV280) • 360° visibility with a cab-forward design, skylight and ultra-narrow wide side screens • EZ-EH (electrohydraulic) setup menu

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Kubota SSV65/SSV75 Skid-steer Loaders

Wacker Neuson Skid Steers and Compact Track Loaders

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Takeuchi TS80 Series Skid-Steer Loaders The large-frame TS80 series skid-steer loaders are powered by a 74-hp Deutz Tier 4 Final engine that delivers 192 ft.-lbs. of torque at 1,800 rpm.

• 7,950-lb. radial lift TS80R2 features a 2,825lb. rated operating capacity (ROC), 5,845-lb. bucket breakout force, 7,080-lb. lift arm force and 10-ft. 5-in. maximum hinge pin height • 8,965-lb. vertical lift TS80V2 has a 3,500lb. ROC, 5,920-lb. bucket breakout force, 6,200-lb. lift arm force and 10-ft. 10-in. maximum hinge pin height • Optional ride control, bucket positioning and high-flow auxiliary hydraulics

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The E-Series mid-frame line includes the 318E and 320E skid steers and 319E and 323E compact track loaders featuring an upgraded boom that offers greater reach at truck-bed height and increases lift height to the hinge pin.

• Auxiliary lines integrated through boom for improved visibility and protection • All major control patterns available • Yanmar Tier 4 Final diesel engines • Feature connect-under-pressure auxiliary hydraulic couplers, auto-idle, reversing fan and high-visibility pressurized cab • Optional keyless start sealed-switch with anti-theft system and ride control with shock-absorbing boom cylinders

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Terex R200S Skid-steer Loader

This factory-installed demolition application package provides additional durability and safety features for JCB skid-steer or compact track loader models used in demolition applications.

• Available for all 18 models, which feature 6,153- to 11,596-lb. operating weights and 48to 74-hp JCB Diesel Tier 4 Final engines • Includes a fire extinguisher, Level 2 FOPS guard, twine cutter (wheeled models only), front screen guard and heavy-duty rear bars • Canopy models require the front impact protection option • Loaders include the PowerBoom single arm design and left-side entry door, 270° visibility, a choice of radial or vertical lift, cab or canopy and large rear service door

The radial lift MC60C and MC70C and the vertical lift MC85C, MC95C and MCT85C skid-steer and compact track loaders deliver enhanced dump height, reach and lift capacity and greater allaround visibility.

• Rated operating capacities from 1,350 to 1,900 lbs.

• Gross engine power from 48 to 59 hp • Reinforced single loader arm design • Large top window in cab for improved visibility during truck loading • Wide-opening side cab door • Redesigned operator’s environment with ergonomically placed controls and gauges

The 64-gross-hp SSV65 boasts a 1,950lb. rated operating capacity (ROC) and 4,839-lb. bucket breakout force, and the 74-gross-hp SSV75 has a 2,690-lb. ROC and 5,884-lb. bucket breakout force.

• Vertical lift configuration can dump into a dump truck with 10-ft. sides • Kubota Tier 4-certified four-cylinder diesel engine • Include a spacious, dust-resistant pressurized cabin with an optimized climate control system, slide-up frontentry door and hand-foot controls • Standard two-speed travel • Optional high-flow hydraulics and multifunction lever for fingertip control of major machine and implement functions

Two skid-steer and two compact track loader models feature 74.3-hp Perkins turbocharged, Tier 4 Final engines with maintenance-free PMC (Particulate Matter Catalyst) aftertreatments and standard two-speed transmissions.

• Radial lift SW24 skid steer delivers a 2,350-lb. rated operating capacity (ROC) and the ST35 CTL has a 3,500-lb. ROC (50% of tip load), with both providing a 10-ft. 5-in. lift height • Vertical lift SW28 skid steer has a 2,800lb. ROC and the ST45 CTL has a 4,500lb. ROC (50% of tip load), with both models offering an 11-ft. 2-in. lift height • Pressurized cabs with adjustable suspension seat and H-pattern or ISO joystick hydraulic pilot controls

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P R OFI T M AT T E R S By Larry Stewart

HOW TO UNLOCK THE PROFIT in Equipment Telematics

Key steps enable you to extract actionable intelligence from the torrent of data delivered by digital vehicle monitoring systems.

Equipment dealers can assist you in identifying fault codes on a machine and respond quickly to alerts as they occur.

he detailed data about what’s going on in the field that is delivered by telematics and digital grade control can make the systems vastly more valuable than traditional, largely manual field data collection. Yet, extracting actionable intelligence from the sheer volume of data may be the greatest administrative challenge many contractors will ever face.

Adding the task of receiving and analyzing that data to existing staff ’s responsibilities is already retarding the systems’ ability to improve jobsite performance in most organizations.

Realizing the potential of digital machine monitoring will require deliberate focus, clear direction and dogged persistence.

even an equipment purchaser.”

Look for someone who understands not only your company’s core competencies — priority activities where your company adds maximum value to the construction process — but also what motivates various equipment users.

“We identified a handful of champions,” says Kerry Sudrla, equipment operations manager at Kiewit Corp. The Omahabased construction giant had revenues of more than $10 billion in 2014, and is involved in hundreds of projects across North America and Australia. “We have six or eight men and women that are technology champions spread geographically. Their charge is to address technology issues programmatically to raise the bar. They own [technology implementation] like a business.

They plan, train, execute, audit and then adjust the process as necessary.”

ASSIGN A DATA CHAMPION

A THREE-PHASE APPROACH

Start by finding a telematics point person for your company.

“The minimum you want to start off with is someone who is going to champion telematics information in your organization,” says Craig Cutting, system application rep for Caterpillar’s Product Link telematics. “Somebody has to be responsible for receiving and looking at this data, doing some analysis and pushing key information to the other people in the organization who can take action to improve your operations based on what they’ve learned — whether it’s a maintenance supervisor, a site supervisor or

When Kiewit began trying to plumb the depths of telematics’ benefits five or six years ago, the company started small.

“We knew then that technology could help us on a lot of fronts — better productivity, better maintenance, safety, compliance, environment, all those things,” says Sudrla. “Technology is evolving. It has a lot to offer, but we saw that it could easily outrun our headlights if we weren’t careful in how we started the technology process.

“We elected to identify and focus on just a few basics and grow from there,” he says. “And

T

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we’re still in the growing and learning phase.”

Kiewit’s three-phase approach started with learning to use hours and location information from telematics feeds in its operations. Phase 2 includes managing and using machine health information. Phase 3 will implement connected work sites, where company managers will monitor site productivity and job progress with telematics and grade control systems.

“Machine hours, if you think about it, drive everything — for us anyway,” Sudrla says. “It’s the denominator for all of our costs: repair costs per hour, tire and track costs per hour, tech-

to learn from it and how it can improve operations.

“The next small step [after selecting a champion] is to get to know what the customer’s pain points are,” says Cutting, “sitting down with them and talking about what keeps them up at night.”

From a list of five or 10 critical issues, Cutting will identify one or two with the highest priority that telematics data can address. “I’ll show them where to get and how to read the key portions of the data, what the data means, how they can interpret the data. Then they can go about pushing it to the right people who can keep an eye on it or use

“We elected to identify and focus on just a few basics and grow from there.”

— Kerry Sudrla, Kiewit Corp. nician labor cost per hour. It drives utilization data, certainly, and component management decisions.

“So with the ease of getting accurate machine hours telematically,” he continues, “we think the payback we get is big in time, accuracy and even safety.”

PROOF OF CONCEPT Learning to manage telematics data with just one or two data streams that help measure key equipment challenges can demonstrate proof of concept — invaluable to an organization trying to gauge the ROI of new investments in technology. The focus allows people to see how the data flows, figure out what they can practically be expected

it to modify behaviors to fix the issue,” he says.

Every organization’s issues are different, but Cutting says most Top 10 lists include three or four common ones that telematics data is uniquely suited to address. Reducing fuel used and hours put on machines while they’re running at idle is probably one of the most universal.

“After idle time, we’re usually looking at improving preventive maintenance scheduling, productivity and managing fault codes.

We want to help them realize when there is an issue going on with a machine and figure out how to fix it before something breaks down,” says Cutting.

Kiewit’s savings from accurate machine hours and location

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PROFIT MAT TERS

have helped it move on to Phase 2 of its telematics implementation plan: monitoring and improving machine health and reliability.

“A couple of market dynamics make [using fault codes communicated by telematics] critical: 1) it can be an issue finding and retaining good technicians; and 2) today’s equipment has become very complex,” says Sudrla. “Together, they’re a challenging mix. It can make troubleshooting very tough.

“When I started in the industry, you diagnosed problems with an excavator the same way, whether it was a Caterpillar, Komatsu, Volvo or Case. The mechanical systems were the same,” Sudrla comments. Proprietary control system coding, unique diagnostic codes and special tooling required to deal with modern machines’ electronic complexity have magnified the diagnostic challenge. “With an evolving workforce, we can’t be that good. We have the whole United Nations of brands of equipment, so we rely very heavily on dealer technicians and on the onboard health system to allow us to mitigate downtime to keep us working.”

DEALERS AS DATA PARTNERS Equipment dealers can be natural allies in the transition to data-driven jobsites.

They have access to your data, and the best of them already have expertise in analyzing data and working with customers to solve equipment problems.

“I would much rather a distributor call me and say, ‘Hey, we just saw a fault code on your machine. We have a service truck in the area; we have the parts on the shelf.

Can we come up there around noon and work on the machine over lunch?’” says Dan Samford, a 21-year equipment management veteran at Herzog Contracting Corp., who recently started an equipment management consulting firm. “In most cases, I would have responded, ‘Can you come any earlier? Let’s not wait until noon.’”

Of course, not every contractor’s response is as enthusiastic as Samford’s, and not all dealer service departments should be equally welcome on site. But achieving the dramatic improvements in machine cost efficiency possible with telematics will take additional resources that not even the biggest organizations are anxious to commit.

“I can promise you that even in the best run equipment operations, there are people on vacation, in meetings, in review sessions that just can’t respond to those telematics alerts,” says Ed Meese, senior director for heavy equipment in Waste Management’s disposal operations. “Knowing that you have a dealer partner who is an extra set of boots on the ground for you and an extra set of eyes on your data is really important.

“When you enter into an agreement or you get a machine with telematics, think honestly about your capabilities

and your limitations, and decide how much involvement you want from your dealers,” Meese advises. “Then communicate what you need from them: ‘I got this level of alert covered; don’t worry about it.

If I get a high-level alert, get on the phone with this person, this person or this one and let’s get it taken care of.’

“That arrangement is key to having a successful telematics system,” he adds. “It’s up to each of us to decide what we want from that support system.”

Remember that machines monitored by telematics will start warning you of a failure the first time any operating conditions wander beyond the equipment manufacturer’s acceptable range. It’s one of the reasons the systems transmit so much data. Waiting until those early, typically low-priority alerts turn into red alerts is like waiting until you have a heart attack to balance your diet.

“Customers will say, ‘I just want the red alerts — the high-level alerts. I don’t want to see all those codes. I don’t want the information overload,’” says Steve Pirnat, product support manager at Ohio Cat. “But the problem is if you have no one looking at those low-level codes, they develop into yellow, or medium, and red alerts.

Underscoring the advantage of responding to low-level warnings, he adds, “You can catch a problem ahead of time — things like an oil filter or seals and bearings — and your cost to repair is greatly reduced.”

WHEN IS IT THE OPERATOR’S FAULT? According to Pirnat, low-level alerts can often be initiated by operator behaviors that push a machine out of normal

operating parameters. Telematics data offers new perspective on how to deal with it.

“It’s important to understand the difference between an event and a fault in a piece of equipment,” he says. He defines a fault as something mechanically wrong with the machine, like a fouled injector or overheated hydraulic reservoir. An event is an out-of-spec condition induced by the way the machine is operated, like engine overspeed or high-speed direction changes. “Are we seeing codes induced by operators? How do you want us to present that information? Because, quite honestly, I can’t dispatch a technician to fix that.”

Telematics can change this question from a fingerpointing session to a business philosophy challenge. Sensors feeding the electronic controller on the equipment will identify the abuse an operator can inflict on a machine, count the number of times it happens and stamp each with a time and date. A few isolated events may not be worth spending a lot of time addressing.

But there’s no escaping the higher costs of habitually operating a machine beyond its design limits — in fuel consumption, accelerated wear, component life and, in some cases, compromised safety. The type, frequency and severity of those events may determine whether or not contractors consider them acceptable costs of production or opportunities to improve efficiency.

Dicing and comparing the records of event codes by operator, jobsite and machine type will help identify operators and site supervisors who get the necessary production without sacrificing component life and safety. Likewise, the data will indicate those who can learn from them.

Construction professionals committed to being the best in their field will figure out how to use telematics data to improve production, cost efficiency and safety.

A CHANCE TO CONNECT Meeting with dealers monthly or quarterly to talk about progress using telematics data will inevitably make them better at supporting the equipment management end of the data. Your goal should be to free up internal management resources to focus on improving operations. An equipment department champion can keep an eye on the dealers supporting fleet aspects of your telematics effort. There should be greater profit potential in applying data to improve production.

“Ultimately, we see down the road some form of connected work site — something I bet is in all of our futures,” says Sudrla.

“Jobsite logistics, optimizing productivity, fleet optimization, autonomous trucks — a lot of that technology exists today.”

Sudrla says combining automated grade control systems and load management systems such as onboard scales now available on trucks, loaders, excavators and pavers can make production management accurate in near real time. Transmitted by telematics, measurements of actual work accomplished day by day offer one of the greatest production improvement opportunities since internal combustion.

Don’t underestimate the fact that the technology necessary to manage job production is already in place. Using it to reshape expected levels of project cost efficiency is only a matter of management innovation. ET

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HELPING TRUCKERS LIKE CASEY KING MOVE HEAVY LOADS AND LOWER THEIR REAL COST OF OWNERSHIP. Casey King, Independent Owner/Operator for Alaska West Express, relies on the powerful Freightliner 122SD for his toughest jobs.

With a wide variety of suspension, frame and cab configurations, this truck was built for challenging loads and rough terrain.

The 122SD can gross up to 105 tons with up to 600 horsepower and 2,050 lb-ft of torque, and the spacious, well-equipped cab keeps Casey comfortable in the Alaskan elements. That’s how the 122SD maximizes productivity and lowers his Real Cost of Ownership.

To learn more about the 122SD and watch a profile of Casey King, visit FreightlinerTrucks.com/122SD.

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S P E CI AL R EP O R T By Lisa Cleaver

An Imperfect But Positive Step Forward The first long-term highway bill in a decade is flawed but provides a good starting point for the future.

T

he $305 billion Fixing America’s Surface Transportation Act (FAST Act) calls for spending approximately $205 billion on highways and $48 billion on transit projects over the next five years. This multiyear bill was long overdue, said U.S. Transportation Secretary Anthony Foxx after the measure was adopted. “After 36 extensions, hundreds of congressional meetings, two bus tours, visits to 43 states and so much uncertainty, it has been a long and bumpy ride to a longterm transportation bill,” he stated. “It’s not perfect, and there is still more left to do, but it reflects a bipartisan compromise I always knew was possible.”

According to the National Asphalt Pavement Association (NAPA), the FAST Act — which will grow annual federal highway investments by 15.1% from the current $40.3 billion to $46.4 billion by FY 2020 — provides five years of predictable funding for the asphalt pavement industry.

WHERE THE FUNDING COMES FROM The FAST Act uses a variety of one-time cost savings and non-transportation resources to supplement incoming Highway Trust Fund (HTF) revenue to support its investment levels over the next five years. The measure formally reauthorizes the collection of the 18.4 cents per gallon gas tax that is typically used to pay for transportation projects.

The federal government typically spends about $50 billion per year on transportation projects; the gas tax only brings in $34 billion annually. Therefore, the FAST Act also includes $70 billion in “pay-fors” to close the $16 billion deficit.

Some of the revenue offsets in the bill include $53.3 billion from capping the Federal Reserve System’s surplus account at $10 billion; $7 billion from a reduction in the Fed’s dividend to large member banks; and $6.2 billion from a sale of 66 million barrels of oil from the Strategic Petroleum Reserve.

While the legislation provides long-term funding predictability for states and fewer

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federal regulations on infrastructure projects, it doesn’t solve the HTF’s fundamental revenue problem, says Pete Ruane, president of the American Road and Transportation Builders Association (ARTBA).

“Congress and the Obama Administration again sidestepped a golden opportunity to put the federal highway and transit investment program back on solid financial footing for the long term,” he states. “They also fell short in providing the level of investment that would result in demonstrable improvement in the overall physical conditions, performance and safety of the system.”

An American Association of State Highway and Transportation Officials (AASHTO) analysis shows highway programs will see an overall funding increase of about 5% the first year and 2% annually after that. But that analysis also points to a sizable cut in funding looming for state DOTs in the fifth year.

As a longer-term budgeting provision, the law locks in a $7.6 billion rescission of unobligated contract authority on July 1, 2020, and requires the state agencies to apply their cuts proportionally across certain program categories while exempting others. Unless the provision is removed, state DOTs will face contract authority cuts midway through the summer construction 2015* of 2020, says Joung 2016 Lee, AASHTO’s policy director. This could 2017 severely impact the 2018 entire fifth year of proj2019 ect planning.

2020 “If this were to happen, at best there would be a major reduction in states’ flexibility to manage their highway programs. At worst, it could lead to cuts in federal funding for vital projects all over the country,” Lee says.

a new core freight program as part of each states’ formula allocation, and replaces the TIGER Grant program with a new freight discretionary grant program.

“Essentially, these programs create a new bucket of highway projects that are eligible for federal funding,” says Jay Hansen, executive vice president, NAPA. “Unfortunately, due to their complexity, states may not have these types of projects ready to go, so the spend-out rates will be slow.”

In addition, the FAST Act converts the Surface Transportation Program into a new Surface Transportation Block Grant Program (STBGP). Funds under this program may be used for highways, bridges, tunnels, ferries and other types of projects as listed in the bill.

The funding is divided between the state DOTs and municipalities. The STBGP is a core highway program which has the most flexibility on project eligibility.

“States tend to spend their funding on highways, while mayors and local governments tend to invest in transit and enhancement-type projects,” says Hansen.

“The FAST Act sends a clear signal that

FAST ACT FUNDING LEVELS (billions)

SOME PROMISING PROVISIONS The FAST Act calls for expanding the National Highway Freight Network to include the Critical Commerce Corridors, which uses a coordinated regional planning approach to create a seamless, multi-modal national system. The legislation also creates

40,900 (current) 42,361 43,266 44,234 45,269 46,365

Congress wants local government to have more say in how federal highway dollars are spent.”

The FAST Act cuts the Transportation Infrastructure Finance and Innovation (TIFIA) credit assistance program from the current level of $1 billion to $275 million in FY 2016 (growing to $300 million in FY 2019 and 2020). “TIFIA helps spur publicprivate partnership-type projects. However, the U.S. DOT had difficulty implementing the program, resulting in a slow spend-out

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S PECIAL REPORT

rate,” says Hansen. “The funding levels in the FAST Act are more in line with actual TIFIA spending.”

The FAST Act includes a NAPAsupported provision to expand the current exemption to the hours of service rule for drivers of construction vehicles, allowing those operating within a 75-mile radius to restart their work week after 24 hours of rest.

The Federal Highway Administration’s Every Day Counts initiative, which is designed to spark greater use of innovative technologies and processes in the transportation industry, was also made permanent.

In addition, the legislation reauthorizes the Accelerated Implementation & Deployment of Pavement Technologies Program, which provides $12 million annually to use innovative pavement technologies in the field.

THE BOTTOM LINE The FAST Act provides five years of funding predictability and less federal red tape for state transportation improvement programs.

This in turn will help maintain employment, assist the public and private sectors to plan ahead and speed up project delivery.

will take advantage and there will be a positive impact in all 50 states.

“The freight program, while it will spend more slowly, is a great opportunity for the asphalt market,” he adds. “Overall, this is a very good bill for the asphalt industry.”

WHAT CONTRACTORS THINK For road building contractors like Payne & Dolan Inc., based in Waukesha, WI, the certainty of five years of federal funding allows it to make longer term capital investments in equipment and labor. “It’s hard to develop an intelligent operational plan and business plan when you’re always guessing about tomorrow,” says John Bartoszek P.E., vice president.

Bartoszek is critical of the level of funding, however, and the unwillingness of politicians to invest in infrastructure. “I’m not convinced that the way to pay for the bill was the best,” he says. “A real increase in revenue for our country’s infrastructure is needed. It’s disappointing that the political will isn’t there to get a true revenue stream into the Highway Trust Fund.”

The federal component of funding is also just one piece of the puzzle. “We rely

“Now that states know what the federal commitment will be over the next five years, I see them taking steps to boost their own investment levels.”

— Jay Hansen, executive VP, NAPA “It puts in place a reporting process that will provide more transparency and accountability,” says Ruane. “Highway users will now be able to know how and where their federal fuels taxes are being invested in their community. And it creates the program framework to finally start modernizing our National Highway Freight Network.” All that’s missing is the money to get that job done right. “Five years goes by fast. In four years, state transportation departments will again be staring at a looming funding abyss.

At best, we will be treading water.”

According to NAPA, the FAST Act will offer an immediate and significant boost to highway spending in 2016 — $2.1 billion (5.1%) above 2015 levels. However, Congress still needs to pass a FY 2016 Transportation Appropriations Bill to confirm the funding levels specified in the FAST Act. Highway spending would then grow by 2.1% to 2.4% per year after 2016. Asphalt pavement tonnages in the future will correlate closely with the growth rates established in the conference report, and grow as states increase their own spending on highway and road projects.

“Now that states know what the federal commitment will be over the next five years, I see them taking steps to boost their own investment levels,” says Hansen. “States that have projects on the shelf and ready to go

on both the federal and state funding to be adequate,” says Bartoszek. “In Wisconsin, the need is there, but the political will to increase revenue has not happened. Our legislature wanted to significantly increase bonding in lieu of generating revenue to pay for our infrastructure. While a smaller bonding increase did happen, the program is still actually less for the next two years.

“In Michigan, they passed a $1.2 billion increase for roads and bridges that gets phased in over five years starting in 2017,” he notes. “This will have very little effect for 2016 but gives us the comfort that the workload will be increasing. We have also seen a nice uptick in the commercial side of our business and expect that to be solid through 2016.”

Kevin J. Kelly, president and CEO of Walsh & Kelly and incoming NAPA chairman, says the immediate boost in highway funding under the FAST Act will help fund projects around Indiana, a key component to the state’s future economic vitality. “The FAST Act will also allocate an additional total of $152,440,729 to Indiana for a new

freight program to fund Critical Commerce Corridor-type projects to improve the movement of freight while supporting current transportation needs,” he says. “Congress did miss a chance to address the structural problem of how we fund infrastructure construction and maintenance. That is an issue we will have to address — and the sooner the better. But for now, I am very happy to put people to work improving the performance and driveability of Indiana’s roads.”

Michael Cote, M.B.A., P.E., is executive vice president and chief development officer at The Lane Construction Corp., headquartered in Cheshire, CT. He believes the five years of predictable funding is a boon to the industry. “Projects will be advertised, bid and awarded on schedule, which allows for better all-around allocation of resources,” he says.

“Hiring decisions and capital expenditures for plants and equipment can be committed to with far less risk. This will stimulate the economy at many levels and, at the same time, provide much-needed infrastructure maintenance and capacity improvements.

The bill is a win-win for everyone.” ET

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February 2016 | EQ U I P MEN T TO D AY 21

2/9/16 8:13 AM

R OAD B U I LD I N G By Rod Dickens

STATE OF THE INDUSTRY

Road Building In Part 2 of our 2016 construction industry outlook, leading economists share their insights on the future of the transportation sector.

In this second of a two-part series on the state of the construction industry, we asked leading industry economists to comment on the market potential for the transportation sector, with a specific focus on the effects the industry may see from passage of the first long-term highway bill in nearly a decade. Following are their insights on the impacts of the 5-year funding authorization.

DO YOU FORESEE A HEALTHY HIGHWAY CONSTRUCTION MARKET IN 2016 AND HOW MIGHT IT COMPARE TO 2015?

Ken Simonson, chief economist, Associated General Contractors of America: With the enactment, at last, of a longterm federal highway funding bill that contains additional revenue, there should be a modest uptick in highway construction spending in 2016. In addition, the list of states that have increased their gas taxes or other highway funding mechanisms keeps growing. Many of these provisions will have contributed enough to state coffers to allow a further increase in contract awards in 2016.

Jeannine Cataldi, IHS: Spending on highway and bridge construction strengthened in 2015 and is on track to finish the year above 2014 levels. Growth in this market will remain healthy in 2016 as revenues at the state and local level continue to benefit from increased job and wage growth. The residential market will provide an additional

22 EQU IPM ENT T OD AY | February 2016 ET0216_22-23_Road_StateofIndustry_BC.indd 22

lift to this segment with an increasing number of housing starts creating a need for the upgrade of existing roads, as well as construction of new roads for new housing developments.

The recent passage of the Fixing America’s Surface Transportation (FAST) Act has removed a measure of uncertainty for the highway/streets construction market. The fiveyear bill will allow for long-term planning, which was difficult under the multiple short-term extensions of the last decade.

The five-year authorization is likely to lead to stronger growth of highway/street construction over the coming years.

Anirban Basu, chief economist, Associated Builders and Contractors: I see additional progress ahead. Much of this relates to healthier state and local government budgets, which have helped to increase the level of investment in roads, bridges and highways generally. The new speaker of the U.S. House of Representatives will help secure a more stable future for the federal Highway Trust Fund, which

should also induce more heads of state departments of transportation to move projects along.

Dr. Alison Premo Black, senior vice president and chief economist, American Road & Transportation Builders Association: The multi-year federal transportation bill will provide much-needed stability for the highway, bridge and transit markets after a decade of shortterm extensions. The modest increase in federal highway and bridge investment in 2016 will help the program keep pace with changes in inflation, materials and project costs. Federal funding accounts for an average of 52% of state department of transportation capital outlays for highway and bridge improvements.

The highway and bridge construction market is expected to be uneven across the country, with programs growing in 23 states and Washington, D.C., and remaining flat in nine states. A number of states have increased their own funding in the last few years, including 15 that have raised their own gas taxes for transportation investment since

2013. Overall, states approved 30 legislative measures in 2015 to increase investment, while voters approved 68% of the ballot measures for transportation funding.

Outside of construction, state and local governments are expected to spend an additional $42 billion for maintenance work, $14.8 billion for in-house and consultant planning and design services and $7.8 billion for rightof-way purchases as part of their highway and bridge programs.

Our project cost index indicated overall increases in project costs in 2015 were below historical averages, but I would expect to see increases in the range of 2% to 3% next year as work and demand for material and labor increase in transportation and general construction. Three percent is the historical average.

Ed Sullivan, group vice president and chief economist, Portland Cement Association: Highway construction improved last year in large part because of state and local funding. In 2016, the new highway bill will have a positive effect, and we project a 5% increase in highway construction.

But the bill is not a game changer. Congress won’t touch the gas tax, hence $70 billion dollars will come out of the general fund over the 5-year program, which makes it very susceptible to any economic blip.

Furthermore, it is projected that 20 years from now, there will be another 40 million drivers on our highways. The industry still needs a long-term fix. ET

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2/9/16 8:41 AM

ROAD BUILDING >> Products Multiquip AR14H Tandem Roller

Bomag BW177DH-5 and BW177PDH-5 Vibratory Rollers The smooth drum BW177DH-5 and padfoot drum BW177PDH-5 feature a dual travel pump drive system that enables up to 58% gradeability with vibration and 61% without.

• Vibration frequencies of 1,860/2,280 vpm and 25,179 lbs. of centrifugal force in high amplitude and 16,636 lbs. in low • Compact up to 18-in. lifts of granular soil and 14-in. mixed soil lifts, plus the BW177PDH-5 can compact up to 8-in.thick lifts in cohesive materials • 74-hp Kubota Tier 4 Final turbocharged diesel engine • ECOMODE provides up to 30% lower fuel consumption

Roadtec RP-195e Asphalt Paver The rubber track highway class RP-195e paver features a 230-hp Cummins QSB 6.7 Tier 4 Final-compliant diesel engine.

• Anti-segregation design encompasses the feed tunnel, feed tunnel discharge and rear augers • Fully oscillating bogies and smooth tread aide in laying a smoother mat • Operator stations hydraulically swing out, allowing the operator to see down the side of the machine • Consoles located at the operator’s fingertips with adjustable operator seat for optimal comfort • Includes the Clearview FXS fume extraction system and Guardian remote telematics and diagnostics system

The AR14H tandem roller produces 3,400 lbs. of centrifugal force from an eccentric housed within a 35.6-in. drum.

• Honda GX630 engine with 9.5-gal. fuel tank • Pressurized 35-gal. water tank standard • Compact design with high curb clearance and clear line of sight visibility for better steering • Easy to use and access throttle, vibration, water pump and water flow controls • Engine compartment places all filters, oil fills, fluid drains and hydraulic hoses within easy access • No greasing required for the articulation joint or vibratory assembly

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Midland Machinery SPF-8 Road Widener

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JCB Vibromax Double-drum Rollers The VMT380 and VMT430 both come in 51- or 55-in. drum widths, creating four distinct models with modern styling, a front-mounted engine and tapered front frame design.

• Improved drive system delivers a 20% increase in vibration frequency to 66 Hz • Gradeability improved by 42% • Three working modes with three different frequencies • Features include the Automatic Vibration Control system, a single-piece exciter shaft and maintenance-free center joint

The SPF-8 Road Widener is a foldable machine that transforms to 98.5 in. for transport without permits.

• Capable of spreading material from 1 to 8 ft. from a 3-cu.-yd. fold-up hopper by way of a movable, variable-speed, 500tph conveyor • Quickly transforms from right- to lefthand discharge of material depending on job requirements • 74-hp John Deere engine provides the power to push a fully loaded 18-wheeler

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Case DV209 and DV210 Tier 4 Interim Asphalt Compactors Carlson CP75 Paver The CP75 has a 74-hp Cummins Tier 4 Interim engine delivering more power, improved fuel economy and high torque.

• Electrically heated EZC813 screed with an 8- to 13-ft. standard paving width or optional 8- to 15-ft. EZC815 screed • Screed-mounted controls provide an intuitive platform that keeps the controls relative to the operator • One-piece forward tilting hood and forward access panel over the hopper for easy maintenance and serviceability • Built with heavy-duty replaceable floor plates, hardened steel auger flights and a rebuildable platform

The 21,030-lb. DV209 and 22,730-lb.

DV210 high-frequency, double-drum compactors have Tier 4 Interim engines with automatic idle control systems that improve fuel efficiency as much as 10%.

• Just over 66-in. standard drum width • Centrifugal force can be dialed in to match the thickness of the lift and desired depth of compaction • Feature more maneuverability in the operator compartment and a color monitor and operator interface • Optional ACEforce asphalt compaction technologies help provide precise measurement over varying conditions

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24 EQU IPM ENT T OD AY | February 2016 ET0216_24-26_RoadBuildProd_BC.indd 24

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2/9/16 8:43 AM

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2/9/16 8:43 AM

R OAD B U I LD I N G Products Bagela BA4000 Asphalt Recycler

Hyundai Series 9 Rollers The Series 9 line includes the HR70C-9, HR110C-9, HR120C-9 and HR140C-9 single-drum rollers offering dual frequencies and amplitudes, smooth drum or optional padfoot kit and Perkins or Deutz engines from 84 to 140 hp.

• Operating weights (smooth drum) range from 15,652 to 30,644 lbs., with drum widths from 67 to 83 in. and 45° to 50° gradeability without vibration • HA control delivers continuous tractive effort at the axle and drum • 5,400-lb. HR25T-9 and 6,600-lb.

HR30T-9 compact tandem-drum models have 40- and 50-in. drum widths, 30.2hp Deutz D 2011 L2 I diesel engines, hydrostatic drive, hydrostatic vibration system at both drums and maximum gradeability of 35° without vibration

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Vogele MT 3000-2i Material Transfer Vehicle The 56,000-lb. MT 3000-2i is powered by a 215-hp Deutz water-cooled, Tier 4 Interim-compliant engine, has an 18-ton storage capacity and can move 1,300 tph.

• Active remixing achieved by two 16-in.diameter conical augers in the receiving hopper, and passive remixing achieved via a 17- or 22-ton “receiving insert” in the paver hopper • Receiving hopper empties in advance of the next dump, while the rear-tilting front of the hopper moves stray material toward the conical augers • Auto feed function automatically slows or shuts down feeding when the paver hopper insert is filled • Propel system features auto distance control

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NL5000 LIGHT TOWER ROI-DRIVEN SOLUTION WITH THE DURABILITY & PERFORMANCE YOU DEMAND

The 4,400-lb. BA4000 trailer-mounted, continuous operation asphalt recycler processes broken chunk or milled (RAP) asphalt at a rate of up to 4 tph.

• Uses convection-type heating (280° to 350° F) via a 0.48-MBTU/hour diesel heating system • Flame from burner does not come in direct contact with material inside the mixing drum • Material loaded via a hydraulically operated hopper and discharged through the rear of the mixing drum • Features heavy-duty, all-steel, welded construction and measures 174 in. long by 79 in. high and 79 in. wide (including trailer) • 6.6-hp Hatz diesel engine

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Caterpillar AP600F and AP655F Asphalt Pavers The 8-ft. AP600F wheeled paver and AP655F rubber track paver with MobilTrac undercarriage come with a standard Eco-mode or an Advanced Eco-mode with automatic engine speed control.

• 173-hp C4.4 ACERT Tier 4 Final engine • Available with SE50 V and SE60 V vibratory screeds or SE50 VT screed with vibration and tamper bars • Maximum paving widths up to 26.3 ft.

• Refined heat distribution of screeds combines with the 70-kW integrated generator to bring the screed to proper temperature in approximately 15 minutes • Feature intuitive touch screen operation, single-button feeder system activation, auto fill feeder system, quick-change heating elements and front wheel assist

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90 HOUR RUNTIME

Sakai GW750-2 Pneumatic Roller The 20,370-lb. GW750-2 develops a dynamic gyratory action that combines the kneading action of a pneumatic tire roller with the high forces of a vibratory roller.

• Seven 16-in.-wide pneumatic tires include three vibrating tires positioned on the front axle and interspersed with four on the rear for a 77-in. total overlap coverage and rolling width • Five force settings ranging from 20,580 lbs. of static force to over 55,000 lbs. of total applied force are switchable from the operator’s station • Features 38% gradeability and delivers a vibration frequency of 2,400 vpm • 123-hp Isuzu 4jj1XDIA turbocharged engine and hydrostatically driven axles • Rubber-isolated operator’s station includes dual seats and instrumentation

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Atlas Copco Dynapac F800T Tracked Paver The Dynapac F800T 10-ft. tracked paver features a Carlson EZIV08-15 frontmounted electrical screed offering 8- to 19-ft. working widths and a mat as high as 1 ft.

• 173-hp Cummins six-cylinder, Tier 4 Final diesel engine • Feed control system uses four ultrasonic sensors and a 6-in.-wide center chain box auger system to ensure continuous, uniform material flow to the center of the screed • Dual swing-out operator platform with ergonomically designed control panels provides high visibility to the paving surface

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Spaulding RMV Hot Patcher The RMV Hot Patcher is designed to unload large amounts of asphalt in a short amount of time, giving a crew more time to finish their work.

• Powered by two hydraulic cylinders that lift the hopper with ease and fluidity • Includes a 105,000-BTU burner for diesel and automatic temperature controller • Heavy-duty steel construction with continuous welds • Comes with an adjustable 12-position hitch, tandem axles, surge/electric brakes and commercial-rated tires

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2/9/16 8:43 AM

By Lisa Cleaver S AFET Y & COMPL IANCE

MILLING INDUSTRY STAYS

A STEP AHEAD OF OSHA I

n 2003, the road building industry came together to find a way to control workers’ exposure to respirable crystalline silica during asphalt pavement milling in highway construction.

The Silica/Asphalt Milling Machine Partnership is made up of milling machine manufacturers, the National Asphalt Pavement Association (NAPA), labor, academia and the National Institute for Occupational Safety and Health (NIOSH). Over the past decade, it has worked to design, test and implement engineering controls for milling machines that effectively reduce potential silica exposure below OSHA’s proposed Permissible Exposure Limit (PEL).

Approximately 367,000 U.S. workers employed in highway, street and bridge construction are at risk of exposure to respirable crystalline silica. Workers use a variety of machines when removing and recycling asphalt pavement, including cold milling machines that use toothed, rotating cutters to grind and remove pavement for recycling. During operation, workers can inhale silica dust, which can cause silicosis,

a debilitating and potentially fatal lung disease. Silica exposure has also been associated with lung cancer, chronic obstructive pulmonary disease (COPD) and renal disease.

“Silicosis is a serious issue,” says Tony Bodway with Payne & Dolan, headquartered in Waukesha, WI. “As a contractor, it’s a priority that we ensure employees are working in a safe, healthy environment. Exposure to silica dust is something we can prevent on the jobsite, and we should be striving to do that.”

OSHA has proposed establishing a PEL of 50 micrograms of respirable crystalline silica per cubic meter of air to which workers may be exposed during an 8-hour work shift. This is consistent with NIOSH’s current Recommended Exposure Level (REL) and will help reduce the risk of developing adverse health effects.

WHAT MANUFACTURERS ARE DOING Although OSHA has not yet released the final silica PEL, the industry is optimistic that the engineering controls designed between manufacturers and

NIOSH will allow workers to forgo the use of respirators during roadway milling operations.

The efforts of the silica coalition have resulted in new industry cold milling guidelines, known as the Best Practice Engineering Control Guidelines to Control Worker Exposure to Respirable Crystalline Silica during Asphalt Pavement Milling.

Silica dust controls (e.g., ventilation controls) used in combination with water-spray controls on asphalt pavement milling machines can consistently reduce exposures below the NIOSH REL and the proposed OSHA PEL. Here’s how each manufacturer has designed its milling machines to help limit operator and crew exposure to silica dust.

WIRTGEN AMERICA: Introduced in 2010, the Vacuum Cutting System (VCS) can be found on all of Wirtgen’s larger cold mills — the W 250, W 210 and W 200 and the W 200i and W 210i. Its principle is simple: By creating a negative pressure in the drum housing, the mix of air and water vapor is evacuated and then fed back into the flow of the milled material transported on the conveyor via a hose system.

“Wirtgen has made the machine

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ET0216_27-28_Safety_BC.indd 27

operator and his workplace the center of its engineering and development work for many years,” says Brodie Hutchins, vice president of dealer development at Wirtgen America.

ROADTEC: Roadtec milling machines have long included a water system with dual spray bars inside the cutter housing, says Kyle Hammon, product manager – mills, stabilizers and brooms.

“The spray bars are positioned at opposite ends of the cutter housing to facilitate both dust control and heat reduction at the cutter drum,” he explains. “The flow rate of the water system is easily adjustable to meet the desired levels of the milling crew.”

The RX-600e, RX-700e and RX-900e milling machines also include a dust extraction system.

It uses a hydraulic fan to remove dust from the primary conveyor and channel the material to the dump truck alongside the secondary conveyor.

“The dust extraction system is a more recent design change, but the system is included as a standard feature for the safety and comfort of the milling crew,” says Hammon.

BOMAG AMERICA: Bomag is planning to release a complete new line of milling machines in the U.S. The BM2000/75 will come into the country fitted with a Dust Suppression System as a standard feature. The smaller BM1200/35 machines have the ability to

An historic partnership leads to innovation and an effort to comply with OSHA before enforcement of the imposed silica dust rule.

Roadtec RX-600e, RX-700e and RX-900e milling machines include a dust extraction system that uses a hydraulic fan to remove dust from the primary conveyor and channel the material to the dump truck alongside the secondary conveyor.

February 2016 | EQ U I P MEN T TO D AY 27

2/9/16 3:47 PM

S AFE T Y & C O M P LI A N C E

MAINTAIN YOUR DUST CONTROL SYSTEMS

install the dust suppression kits from the factory or in the field.

“These are quite simply a plenum sysDust control systems are designed to keep you protecttem that fits into ed. Use these tips to ensure they’re working up to speed: the cutting housLocate the equipment’s operator manual, which coning, connected with tains a maintenance schedule for the water spray or vena powerful suction tilation controls. Each operator’s manual should include fan to remove silica detailed sketches, performance criteria and troubleshootand fine dust particuing instructions for equipment owners to use in their perilates and blow them thorough a series of odic inspection of the controls. hoses or tubes into Inspect and maintain the systems according to the the bed of the dump manufacturer’s recommendations and record the dates of truck with the milled periodic inspections in the operator manual. asphalt,” says John Check the airflow indicator to verify that the ventilaHood, Bomag’s direction control is operating within the designed operating tor of sales, heavy range. The manufacturer should attach a plate to the millequipment. ing machine showing a simple diagram of the ventilation CATERPILLAR: control and a list of field maintenance procedures.

Starting in 2016, Implement a water spray and ventilation control Caterpillar will offer system daily checklist to verify that the dust controls an optional highare being operated according to the manufacturer’s powered vacuum ventilation system. recommendations.

“This system will use a vacuum fan to extract milling dust from two key areas: the foot of the primary conveyor and the transition point between the primary conveyor and the loading conveyor,” says AJ Lee, global sales consultant, Caterpillar Paving Bomag’s BM2000/75 will be fitted with a Dust Products.

Suppression System as a standard feature.

Cat cold planers also offer an advanced water spray system that provides an ample number of nozzles ideally positioned in the chamber and areas of the conveyors prone to dust.

The nozzles are controlled SHIPPING SUPPLY SPECIALISTS electronically to maintain a precise spray rate that balancHUGE SELECTION es water use with optimal dust OF DRUMS AND PAILS control.

“Some contractors choose the option of an additional chamber spray bar, but the system is designed to apply exactly the amount of water necessary,” says Lee. Manufacturers are also required to provide field retrofit kits for sale for older, larger ORDER BY 6 PM FOR half-lane milling machines.

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WHAT YOU CAN DO

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While machine innovations will help limit workers’ exposure to silica dust, there are other steps you can take to further reduce exposure.

Recognize the hazard.

Milling, cutting or otherwise disturbing asphalt pavement

can create airborne dust containing silica. Pay attention to wind direction and any visible dust emissions.

Use ventilation and water spray controls on asphalt pavement milling machines. Water spray plus ventilation controls are collectively considered to be the best practice approach to asphalt pavement milling dust control and can reduce silica exposures below the NIOSH REL. Typical ventilation controls on milling machines include a collec-

maximize the effectiveness of these systems, several alterations may need to be made to optimize the flow, pressure and nozzle locations.

TRAINING REQUIRED

Finally, the simplest way to be your own best advocate is to make sure you and your staff are properly trained.

“The No. 1 best practice is education and training,” says Bodway.

“Don’t let your employees get complacent. Not only do they need to understand the hazards of silica dust, but they also need regular training on how to properly operate and maintain the machines.”

Equipment manufacturers are great to partner with when it comes to this. Ask them for training on the operation, maintenance and repair Wirtgen’s Vacuum Cutting System works by creating a of the dust control negative pressure in the drum housing, while the mix of air systems. and water vapor is evacuated and fed back into the flow of “All milling equipment manthe milled material. ufacturers offer tion hood, fan and duct work. The training when equipment is purmachines should also be designed to chased,” says Bodway. “But take allow the operator to temporarily turn advantage of annual training sesthe ventilation control off when millsions that are offered, as well, to keep ing into the wind. However, a feature employees up to speed.” should be in place that automatically Milling machine operators should turns the ventilation control back on be trained on the control systems, when it has been off for longer than and be provided with the operating 60 minutes. specifications (water quantity, water When ventilation controls are pressure, air velocity) that must be unavailable, water spray control sysmaintained in order for the control tems that are properly designed, systems to be effective. They should operated and maintained can provide also be trained how to temporarily a significant reduction in the milling disable the ventilation control system machine’s dust generation. Always use when milling directly into the wind. water spray systems on any asphalt Equipment mechanics responsible pavement milling machine that does for maintaining the water spray and not have ventilation controls. Water ventilation control systems may also spray controls should always remain require specialized training. on regardless of wind direction.

In addition to using equipment Other best practice water spray manufacturers, Bodway says there are recommendations have been develmyriad places to get information. He oped for contractors that are not mentions equipment manuals, NAPA using ventilation controls on their and NIOSH as great sources to stay machines. The two best methods are: informed.

“If you need to know, ask ques˜˜ Spray water on the pavement being milled to suppress any dust tions,” he adds. “There is plenty of information and tools out there on ˜˜ Knock down airborne dust by spraying the dust cloud this subject. Our top priority is to Since a key component of milling ensure workers are in an environment machines is the water spray systhat keeps them healthy and safe and tem used for cooling cutter bits on allows them to go home at the end of the cutter drum, many in the industhe day.” ET try feel the same spray system To access the silica coalition’s best practices guide, visit goaspha.lt/1JvV4Lv. can be used The Center for Construction Research and Training and NAPA also for silica released the user-friendly Field Guide for Controlling Silica Dust Exposure dust control. on Asphalt Paving Machines. You can find it at goaspha.lt/1DxPbLr. However, to

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28 EQUIPM ENT T OD AY | February 2016 ET0216_27-28_Safety_BC.indd 28

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2/9/16 3:47 PM

By Curt Bennink TRU CKS & TRANS PORTATION

For obvious reasons, many aerodynamic treatments will not work on vocational trucks. Other solutions may be necessary, such as stop-start, which is not currently available in the heavy-duty market.

PUSH TO CUT EMISSIONS Is Far From Over O

n-road diesel engine emissions regulations have been around since the early 1970s, but these standards were achieved with incylinder solutions that did not require extensive technological innovations. That changed when the Environmental Protection Agency (EPA) set on a path to dramatically reduce nitrogen oxide (NOx) and particulate matter (PM) almost two decades ago.

The agency adopted new emissions standards for model year 2004 and later heavy-duty diesel truck and bus engines in October 1997. The goal was to reduce NOx emissions from highway heavy-duty engines to levels of approximately 2.0 g/ bhp-hr beginning in 2004. Since then, emissions limits have been cut to 0.01 g/bhp-hr for PM and 0.20 g/bhp-hr for NOx. The innovations that have allowed the industry to meet these emissions levels required new and often expensive technology solutions, including cooled exhaust gas recirculation, diesel particulate filters and selective catalytic reduction (SCR), just to name a few.

But just when you thought emissions restrictions had reached a technical limit, another threat to public welfare, carbon emissions, has become a target.

Medium- and heavy-duty vehicles currently account for about 20% of greenhouse gas (GHG) emissions and oil use in the U.S. transportation sector, but only account for about 5% of the vehicles on the road. Globally,

GHG emissions from heavy-duty vehicles are growing rapidly and are expected to surpass emissions from passenger vehicles by 2030.

The good news is that carbon emissions are directly linked to the amount of fuel consumed. Therefore, the targets set for GHG limits will result in increased fuel efficiency, which should help offset additional costs to meet the regulations.

IMPLEMENTING THE FIRST PHASE The EPA and National Highway Traffic Safety Administration (NHTSA) have been working together to develop regulations and address GHG emissions at the request of President Obama. The EPA is responsible for setting emissions limits, while the NHTSA, an agency within the U.S. Department of Transportation, is tasked with developing fuel economy standards.

The Phase 1 GHG emissions and fuel-efficiency standards for medium- and heavy-duty trucks were announced in 2011 and began with model year 2014.

They will be phased in through model year 2018. This impacts vehicles from semi-trucks to the largest pickups and vans, and all types and sizes of work trucks and buses in between.

For the purposes of the rule, the EPA and NHTSA define a heavy-duty fleet as all trucks with a gross vehicle weight (GVW) at or above 8,500 lbs. They estimate that Phase 1 GHG rules will save about 530 million barrels of oil over the life of vehicles built for

the 2014 to 2018 model years.

This reduced fuel use will allow vehicle owners to realize $50 billion in fuel savings.

But regulating fuel economy for heavy trucks is much different than setting Corporate Average Fuel Economy (CAFE) standards for passenger vehicles.

There is much more diversity in the application of heavy-duty trucks. Two types of standard metrics were therefore adopted: payload-dependent gram per mile (and gallon per 100 mile) standards for pickups and vans; and gram per ton-mile (and gallon per 1,000 ton-mile) standards for vocational vehicles and combination tractors. These metrics acknowledge that moving heavier loads burns more fuel and emits more carbon dioxide than moving lighter loads.

The Phase 1 GHG standards divide heavy trucks into three main categories: combination tractors, heavy-duty pickup trucks and vans and vocational vehicles. Regulation targets will be phased in with model years 2014 through 2018.

Certain combination tractors (also known as semi-trucks) will be required to achieve an approximately 20% reduction in fuel consumption and GHG emissions by model year 2018. This would save up to 4 gal. of fuel for every 100 miles traveled.

Vocational vehicles must reduce fuel consumption and GHG emissions by approximately 10% by model year 2018. This could save an average of 1 gal. of fuel for every 100 miles traveled.

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Manufacturers have indicated they are ready for the Phase 1 GHG standards 2017 certification.

“Daimler Trucks North America (DTNA) is certified to the 2017 standards,” says Sean Waters, director, product compliance and regulatory affairs, Daimler Trucks North America.

“DTNA will continue to invest in technology to improve fuel efficiency in our vehicles and to improve the overall cost of ownership for our customers.”

Mack Trucks is also ready for the 2017 deadline. “While we prefer not to comment on future product plans for competitive reasons, I can tell you that Mack engines will comply with greenhouse gas requirements

set to take effect in 2017,” says Curtis Dorwart, vocational products marketing manager, Mack Trucks.

PROPOSAL FOR PHASE 2 With Phase 1 GHG standards currently being implemented, regulators have turned their attention to Phase 2. Announced this past June, these proposed

Cutting NOx and particulate matter was only the first step.

Fortunately, the current and proposed regulations for GHG recognize that there are distinct differences in duty cycle and application between vocational models and highway trucks.

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T R U CKS & T R A N S P O R TAT I O N

NOT ALL TRUCKS AFFECTED The proposed Phase 2 GHG regulations include averaging, banking and trading provisions that would allow manufacturers to trade credits, bank credits for future years and average credits.

This allows manufacturers to certify engines or vehicles that do not perform up to the standard and offset them with engines or vehicles that perform better than the standard.

This program was established under Phase 1, and the EPA and NHTSA are proposing to continue it with some minor revisions.

Aerodynamics will play a major role in meeting Phase 2 GHG emissions regulations for Class 8 long-haul trucks such as this Freightliner Cascadia. regulations would build on the success of Phase 1 standards.

The proposed Phase 2 program, which is expected to be finalized this year, would cut GHG emissions by approximately 1 billion metric tons and conserve approximately 1.8 billion barrels of oil. The standards phase in over the long term beginning in model year 2021 and culminate in standards for model year 2027.

“The proposed regulations in Phase 2 don’t just address the engine, but also the vehicle as a whole,” says Dorwart. “The EPA is still in the process of refining vocational vehicle requirements for Phase 2. Given the varied applications and configurations of vocational trucks, including a wider range of operating conditions than highway trucks, more time is needed to fully understand the impacts Phase 2 may have.”

Truck solutions will vary by application. “Fortunately, the current as well as proposed regulations for GHG recognize that there are distinct differences in duty cycle and application when it comes to vocational models compared with highway trucks,” says Dorwart. “At the current time, I see that continuing.

“In many cases, things that make a huge difference on highway trucks — like aerodynamic fairings, ground effects packages and so forth — would do little on a dump truck or refuse truck, and may in fact hinder normal operation. In short, they just are not practical,” says Dorwart.

“When it comes to engines, engine calibrations and aftertreatment systems, there will be much similarity, as is the case today,” he continues. “However, we can expect things may get more complicated depending upon how aggressive the regulations become.”

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DTNA predicts that new technologies will be implemented to meet Phase 2. “The proposed Phase 2 regulation is very challenging and will have an impact on the line-haul and vocational market,” says Waters.

“The vocational market in particular will require development of technology, such as stop-start, that is not currently available in the heavy-duty market.

He adds, “If regulators finalize more stringent standards than their proposed “Alternative 3”, it could create divergence from the technologies that are real-world tested and show on-road fuel-saving benefits. Anything more stringent than Alternative 3 could force technologies into applications where they are not beneficial.

For example, an engine standard beyond what is currently in the proposed rule could force hybrid technology into the line-

and fuel use by 24% compared to Phase 1 standards.

The proposed new standards separate engine standards and test cycles for tractor engines, vocational diesel engines and vocational gasoline engines. For diesel engines, the proposed standards would begin in model year 2021 and phase in to model year 2027, with interim standards in model year 2024. The proposed diesel engine standards would reduce carbon dioxide emissions and fuel consumption by up to 4% compared to Phase 1. Technologies being explored include combustion optimization, improved air handling, reduced friction within the engine, improved emissions aftertreatment technologies and waste heat recovery.

Since engine technology has already squeezed out as much efficiency as possible with current technology, increased vehicle aerodynamic styling and fairings will be required for over-the-road trucks to achieve the majority of the 24% reduction. Since many vocational trucks, such as readymix trucks, cannot be made aerodynamic, alternative technologies are being considered to gain a 16% reduction in carbon

trailers being pulled. The design of the trailers can have a significant impact on the overall tractor-trailer vehicle.

As such, the Phase 2 standards also feature efficiency standards for new trailers. It has been determined that trailers pulled by combination tractors contribute significantly to carbon pollution emissions and to the vehicle’s fuel consumption. This can be significantly reduced with aerodynamic devices, low rolling resistance tires and automatic tire inflation systems.

Initial proposed standards for trailers would apply beginning January 1, 2018 in the EPA program. The NHTSA’s trailer standards would be voluntary from 2018 to 2020, becoming mandatory in model years 2021 and 2024. The most stringent requirements would not apply until model year 2027.

Compared to conventional trailers, the fully phased-in program would result in carbon dioxide and fuel consumption reductions up to 8% for 2027 model year trailers, depending on the type of trailer.

The regulations reach beyond conventional box trailers. Nonbox trailers, including platform/

dioxide emissions and fuel consumption relative to Phase 1.

The proposed vocational vehicle standards are differentiated using three vehicle weights and three driving cycles. The improvements are projected to come from improvements in the engine, transmission, driveline, lower rolling resistance tires, workday idle reduction technologies and weight reduction.

flatbed, container chassis and other specialty trailers, may be required to use lower rolling resistance tires and automatic tire inflation systems. Certain specialized trailers, such as logging, mining, livestock and trailers intended for temporary or permanent residence or office space (mobile homes and campers), would not be subject to the new requirements.

“Tires are fair game, but I don’t see any exotic proposals yet for trailers in vocational applications,” says Dorwart. “Tire pressure monitoring systems can add value to a fleet regardless of

Will this Daimler Trucks prototype be the shape of the future for Class 8 long-haul trucks? If so, we may see more differentiation between over-the-road and vocational trucks in the future. haul segment where there would be little benefit and a lot of cost.

Similar to Phase 1 regulations, the EPA’s proposed carbon dioxide emissions standards and the NHTSA’s proposed fuel consumption standards are tailored to each of four regulatory categories of heavy-duty vehicles: combination tractors, trailers pulled by combination tractors, heavy-duty pickup trucks and vans and vocational vehicles.

The biggest impact will be in combination tractors designed to haul freight. The target is to reduce carbon dioxide emissions

TRAILER REGULATIONS REACH BEYOND BOX VAN MODELS To reach its objective, proposed Phase 2 standards had to look beyond the tractors to the

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TRU CKS & TRANS PORTATION

regulation, and tire inflation systems, as well. The agencies are considering whether to give at least partial credit to tire pressure monitoring systems.

“While neither low rolling resistance tires nor tire inflation systems will actually be required by the regulation,” he adds, “they will likely be deployed by manufacturers to comply.”

FACING THE REGULATORY REALITY New emissions regulations are poised to take us beyond 2027.

But don’t expect the challenges to stop there. The California Air

Under the Phase 2 proposal, there will be much similarity between highway trucks and vocational models when it comes to engines, engine calibrations and aftertreatment systems. However, things may get more complicated depending upon how aggressive the regulations actually become.

Resources Board (CARB) has already discussed possibly cutting NOx levels in California from the already trace amounts permitted by EPA 2010 limits.

“We are aware that CARB is seeking to implement lower NOx standards in California, but no earlier than 2023,” says Dorwart. “It would be a challenge to go even lower on NOx than the trace levels the industry is at now, especially if the agencies increase the stringency of the proposed engine efficiency standards.”

“DTNA cannot speak to CARB’s plans,” says Waters.

“However, I can say that there is a trade-off between carbon dioxide and NOx that presents a huge technological challenge if new NOx regulations are passed.

DTNA has spent billions of dollars developing technology that both improved fuel economy and reduced NOx to near-zero levels, and continues to invest in that technology.

That technology is not fully deployed into the market as there are still a substantial number of vehicles in the market with pre-2010 emissions.

“It is clear that there are substantial gains to be made in terms of carbon dioxide and NOx reductions by accelerating fleet turnover,” he notes.

“Further gains can be made by improving the flow of traffic on U.S. roads. Traffic congestion has a substantial impact on the environment. DTNA would encourage policy makers to look to reduce congestion, improve traffic flow and encourage fleet turnover as alternatives to lowering the NOx standard, which is already near zero.”

“The pace of regulatory change is pretty fast,” Dorwart comments. “That in and of itself is a challenge for manufacturers as well as customers to keep up with technology and the impacts that it has on operations. How severe the real-world impacts will be is yet to be determined. I think we can all be assured that change is coming and introduction of this will occur, but the industry will continue to push forward.”

“The EPA and NHTSA have proposed very challenging regulations on an aggressive timeline that will require substantial engineering effort to meet,” says Waters. “The greatest risks are that the agencies adopt what is defined in the proposal as ‘Alternative 4’, which would ramp up standards too fast and could disrupt the market. Adoption of Alternative 4 and ultra-low NOx standards are the greatest challenges to the industry.” ET

GLIDER KITS COME UNDER GROWING SCRUTINY Glider kits are new chassis and cab assemblies produced without an engine, transmission or rear axle. Historically, they have been used as a means to salvage valuable components such as engines, transmissions and axles from vehicles that were badly damaged. A third party typically installs the used components.

But government agencies have noted nearly a tenfold increase in glider sales since 2010 emissions standards took effect, which suggests that the kits are being used as a loophole to avoid purchasing engines that meet 2010 EPA emissions standards. Most gliders manufactured today use remanufactured model year 2001 or older engines. Typically, these engines produce NOx and PM emissions that are 20 to 40 times higher than today’s clean diesel engines.

Annual glider sales now represent roughly 2% of Class 8 vehicles manufactured annually, yet they may account for as much as one half of the total NOx and PM emissions from all new Class 8 vehicles. While neither the EPA or NHTSA are proposing to ban gliders, the EPA is clarifying which existing standards already apply to gliders and is proposing new emissions requirements for certain gliders.

The NHTSA is considering similar standards for complete glider vehicles.

THESE PROPOSALS INCLUDE: a. Clarifications to the existing HD Phase 1 requirements for gliders: Because the EPA purports to regulate gliders as new vehicles under the Clean Air Act, they are subject to the EPA’s current HD Phase 1 GHG emissions standards, with some exceptions for small businesses. b. New requirements for most gliders to have engines installed that meet the same requirements as new emissions-compliant engines: This could be an earlier model engine that was originally subject to the same requirements. For example, a glider kit manufactured in 2020 may have a 2018 engine installed. c. A blanket exception for small businesses, which is proposed to end on January 1, 2018.

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RU NNING THE BU S INES S By Garry Bartecki

Plan to Get Max Benefit from Tax Extenders Sec 179 and bonus depreciation can offer tax advantages, but they need to be used properly.

I

assume all C-Level executives were aware there was a Tax Extender Bill — with specific focus on Sec 179 and bonus depreciation — that had to be passed before Congress left DC for its holiday break in order to move forward. Well, all I can say is we must have been good boys and girls. Not only did Santa deliver on Sec 179 and bonus depreciation for 2015 and 2016, but the 179 deduction was made permanent and the bonus was extended through 2019, with lower write-off percentages starting in 2018. There were numerous other extensions and changes, as well, but these two are the ones that have a direct impact on equipment manufacturers, equipment dealers with rental fleets and equipment end users.

Finding out in mid-December about the extender 179 and bonus being available for 2015 is kind of a drag. But at least dealers and end users who bought new or used equipment during the year and placed it into service in 2015 have the flexibility to use these tax breaks if they need additional deductions. On the other hand, knowing you have a five-year window to take advantage of these tax breaks makes planning the capital budget or rental fleet changes a little easier — keeping in mind that the tax tail should not be wagging the dog.

Specifically, we have the following extender benefits: Sec 179 increased to $500,000 with a $2 million phase-out threshold. As a side note, 179 also covers qualified real estate. It can be used for both new and used equipment purchases. These limits for 179 were made permanent (until someone changes them).

Bonus depreciation is extended for five years through 2019. The rate is 50% of the adjusted basis of the property in the first year it is placed in service. The rate decreases to 40% in 2018 and 30% in 2019.

Bonus depreciation applies only to new equipment placed in service.

NOTE: These are federal rates for these deductions, which may or may not be available for state tax purposes. It is not uncommon to have a zero federal tax bill and a significant state tax bill in the same year.

These rules create quite a complex tax environment that requires extensive planning on what to use and when to use it.

CAVEATS GO ALONG WITH EXTENDERS

While these appear to be significant tax benefits, they are only significant if they fit into your tax plan for that year or because you want to recoup taxes paid in previous years (if it is worth it to do so). These rules create quite a complex tax environment that requires extensive planning on what to use and when to use it. It is not easy to plan in this environment and it pays to do it right every year.

Another thing to consider about these deductions is they are mostly deferrals, meaning you are accelerating the depreciation deductions you would have anyway, but over a longer term. So you could find yourself taking advantage of these deductions in years where your tax rates are low, and then when you sell the unit find yourself paying it back at max rates.

This is especially true for contractors planning to transition out of the business in the next few years, because if they sell assets, they will be valued well in excess of their tax value and thus generate a significant tax bite out of the sales proceeds received. I guess in the end, if you take deductions at the max tax rate and then pay it back at the max rate, you may as well take advantage of these breaks if the tax gods show it works. The point here is proper planning is a must regarding both 179 and bonus depreciation.

I have seven summary pages of the Tax Extender legislation.

You can ask your CPA to get you a copy of a summary so you can see if any other provision is of use to you in the company or personally. There are a large number of energy tax incentives that may be of use if you are initiating a “green” policy.

There is no mention of like kind exchange (LKE) in the summary, so we can assume this planning procedure is still available for use in 2015 and going forward until we hear otherwise.

I will call it quits now and not get into the other complex tax issues contractors face. They have been discussed previously on numerous occasions.

Any questions, give me a call.

Have a profitable 2016! ET

Garry Bartecki is the managing member of GB Financial Services LLP and a consultant to the Associated Equipment Distributors. He can be reached at (708) 347-9109 or gbartecki@comcast.net.

To access previous Running the Business columns, as well as additional business management information, visit www.ForConstructionPros.com.

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